HANSEN TECHNOLOGIES LIMITED — Annual Report 2011

Aug 24, 2011

HANSEN TECHNOLOGIES LTD ABN 90 090 996 455 AND CONTROLLED ENTITIES

FINANCIAL INFORMATION FOR THE YEAR ENDED 30 JUNE 2011 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 2011
Previous corresponding period is	30 June 2010
the financial year ended:

2. Results for announcement to the market

Revenues from ordinary activities Net profit after tax attributable to members	2011 $’000 2010 $’000
	57,575 57,766 13,533 11,140
	Amount per security	Franked amount per security
Final Dividend
Final dividend for the year ended 30 June 2011	3¢	3¢
Final dividend for previous corresponding period	3¢	3¢
Payment date for the final dividend for the year ended 30 June 2011	27 September 2011
Interim Dividend
Interim dividend for the 2011 fiscal year	3¢	2¢
Interim dividend for previous corresponding period	2¢	2¢
Payment dates for the interim dividend	28 March 2011

A final dividend of 3 cents per share, fully franked, has been declared, bringing the total dividend for the year to 6 cents per share, with 5 cents being fully franked and 1 cent being unfranked.

For the purpose of the Company’s Dividend reinvestment plan the allotment price for this final dividend will be subject to a 2.5% discount.

Please refer to the attached preliminary financial report for the year ended 30 June 2011 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 2010 Three cent interim dividend – year ended 30 June 2011 Three cent final dividend – year ended 30 June 2011	Date of payment	Total amount of dividend
	27 September 2010	$4,652,907
	28 March 2011	$4,665,270
	27 September 2011	$4,685,915

Amount per security

Amount per security
	Amount per security	Franked amount per security at % tax	Amount per security of foreign sourced dividend
Total dividend: Current year(interim)	2¢	30%	0¢
Current year(interim)	1¢	0%	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
	9,318	7,710
	9,318	7,710

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 9 September 2011 dividend or distribution reinvestment plan

8. Statement of retained earnings

	Consolidated Entity
	2011 2010
	$’000 $’000
Balance at the beginning of year	1,389 (2,041)
Net profit attributable to members of the
parent entity	13,533 11,140
Total available for appropriation	14,922 9,099
Dividendspaid	(9,318) (7,710)
Balance at end of year	5,604 1,389

9. Net tangible assets per security

Net tangible asset backing per ordinary security

Current period	Previous corresponding period
14.6 cents	13.8 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.

Improved operating results, 3 cents per share final dividend

Hansen Technologies Limited (ASX: HSN) announces confirmation of year on year improvement in operating performance. Hansen’s final results for the 2011 fiscal year are stronger than that forecast in the operating results upgrade announcement provided to the ASX back on 31 May 2011 with EBITDA and pre-tax profit $1 million ahead of the previously provided forecast.

Hansen’s Chief Executive, Andrew Hansen said, “I am pleased to be announcing our 5[th] year of consecutive year on year growth in operational result. The strong performance of the first half year has been virtually mirrored throughout the second half, with the Group’s operating result for the fiscal year to 30 June 2011 highlighted by;

• Operating Revenue of $57.6 million, in line with the previous year

• Earnings before interest, tax, depreciation and amortisation (EBITDA) of $20.5 million,

• up 19% year on year

• representing a return on operating revenue of 35%

• Profit before Tax of $18.2 million, up 29%

• Net Profit after Tax of $13.5 million, up 21%

The Directors are pleased to declare a final dividend for the fiscal year;

• of 3 cents per share fully franked

• based on a record date of close of business Friday 9 September 2011

• with payment on 27 September 2011

• bringing the total dividend for the year to 6 cents per share comprising;

• 5 cents per share fully franked , and

• 1 cent per share unfranked

• For the purpose of the Company’s Dividend Reinvestment Plan the share application price for this dividend will be subject to a 2.5% discount

It has been a very satisfying year for the Hansen group. The objectives we set ourselves last year have been largely delivered.

• Our proprietary software solution :

• Continued to invest in our core software products to ensure they remain relevant for the ever changing requirements of both the Telco and Energy Industries

• Improved our internal processes to deliver both short and long term efficiencies in our software development and support services

• Delivered our new projects and software developments within budgeted expectations

• Geographic expansion

• Extended our commitment to North America with the acquisition of Nirvanasoft as well as expanded our sales and marketing activities in this region

• Successfully sold our Telco software billing solution into our first mainland Europe customer

• Financial management

• Faced the challenge of rapid and unpredictable changes in the value of the $A versus the key currencies in which we trade

• Delivered an improved operating result while;

  • Retaining sufficient cash for growth, and

  • Remaining debt free

• Data centre services

• Increased the capacity of our Doncaster data centre by approximately 50%

• Enhanced and invested in our “Cloud” computing service offerings

Key Indicators: Results from Continuing Operations for the year to 30 June	2011 $A million	2010 $A million
Total revenue	57.6	57.8
EBITDA	20.5	17.2
Profit before tax	18.2	14.0
Income tax expense	(4.7)	(2.9)
Net profit after tax	13.5	11.1

Our business success continues to be based on delivering to the fundamental objective of supporting our customers, their requirements for relevant and current software solutions which keep pace with or exceed industry driven change.

In this past year our major projects have been delivered on schedule and within budget expectation. We are constantly improving and getting better at what we do. Our customers recognise these achievements as it affords them comfort with both their original selection of Hansen as well as our ability to provide them with the solutions they will require as their businesses evolve.

We are continuing the objective of growing through strategic acquisition. I am pleased that we have the strength to be selective in this endeavour to ensure our shareholders money is wisely invested. We will continue to be patient while we search for targets which will offer us the right balance between growth and financial strength.

The introduction of interval meters continues to be the potential driver of change in the Energy markets but it is still unclear how this technological initiative can be economically viable for electricity retailers. Until the economic and social implications of interval meters are resolved the roll out of new billing solutions to manage interval meters will continue to be slow. Inevitably these issues will be addressed and demand for enhanced billing solutions like HUB will expand, but in the interim we are likely to see only moderate growth in systems sales.

The introduction of a carbon tax in Australia should not have a major impact on the demand for billing solutions in Australia, however it will represent a major impost on the participants in the Electricity industry and must for a period of time distract from other initiatives.

I am excited by our sale of a new Billing solution to Tuenti in Spain. Delivering the software solution for their mobile phone initiative to their 12 million plus social network members is an exciting new project and it will represent a solid foundation project for our expansion into mainland Europe.

I am confident that we are well positioned in our areas of expertise. We have invested in our business over the past year so that I am convinced we are ready for the challenges we see forthcoming from our customers and the industries within which we operate. It will be a challenge to keep up with the rate of profit improvement we have been able to achieve in recent years, but we are committed to this objective.

NOTE : Dividend Reinvestment Plan (DRP)

Shareholders wishing to participate in the DRP need to have lodged the required DRP Notice with the Company’s Share Registry by no later than 5.00pm on the record date, Friday 9 September 2011.

12. Audit of the financial report

The financial report is in the process of being audited.

13. 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 2011 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 Profit after income tax from ongoing operations Other comprehensive income (expense) Adjustment to carrying value of overseas interests due to currency fluctuation 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
	2011	2010
	$'000	$'000
	57,575 2,499	57,766 1,020
	60,074 (27,453) (3,259) (2,377) (1,276) (255) (3,091) (1,394) (668) (777) (1,289)	58,786 (29,384) (3,913) (2,318) (1,757) (106) (2,882) (1,308) (698) (448) (1,890)
	(41,839)	(44,704)
	18,235 (4,702)	14,082 (2,942)
	13,533	11,140
	(2,267)	94
	11,266	11,234
	8.7	7.2
	8.7 8.6	7.2 7.2
	8.6	7.2

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 2011

Hansen Technologies Ltd and Controlled Entities Consolidated Statement of Financial Position As at 30 June 2011
Note Current Assets Cash and cash equivalents 5 Receivables 6 Other current assets 7 Total Current Assets Non-Current Assets Plant, equipment & leasehold improvements 8 Intangible assets 9 Deferred tax assets Total Non-Current Assets Total Assets Current Liabilities Payables 10 Current tax payable Provisions 11 Unearned income Total Current Liabilities Non-Current Liabilities Provisions 11 Total Non-Current Liabilities Total Liabilities Net Assets Equity Share capital 12 Foreign currency translation reserve 13(a) Options granted reserve 13(b) Retained earnings 13(c) Total Equity	Consolidated Entity
	2011	2010
	$'000	$'000
	21,364 7,596 2,913	23,450 8,178 2,817
	31,873	34,445
	4,857 29,103 907	3,441 27,497 1,075
	34,867	32,013
	66,740	66,458
	3,599 1,857 4,825 3,351	4,350 1,526 4,680 5,547
	13,632	16,103
	267	458
	267	458
	13,899	16,561
	52,841	49,897
	49,669 (2,674) 242 5,604	48,715 (407) 200 1,389
	52,841	49,897

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 2011

Consolidated Entity

Balance as at 1 July 2010

Profit for the year Adjustment to carrying value of overseas interests due to currency fluctuation Total comprehensive income for the year Transactions with owners in their capacity as owners: Employee share plan Options exercised Employee share options Equity issued under dividend reinvestment plan Dividends paid Total transactions with owners in their capacity as owners

Balance as at 30 June 2011

12 12 12 4 12 & 13	Consolidated Entity	Consolidated Entity	Consolidated Entity	Consolidated Entity
	Contributed Equity	Reserves	Retained Earnings	Total Equity
	$'000	$'000	$'000	$'000
	48,715 0 0	(207) 0 (2,267)	1,389 13,533 0	49,897 13,533 (2,267)
	0	(2,267)	13,533	11,266
	126 88 0 740 0	0 0 42 0 0	0 0 0 0 (9,318)	126 88 42 740 (9,318)
	954	42	(9,318)	(8,322)
	49,669	(2,432)	5,604	52,841

Consolidated Entity Balance as at 1 July 2009 Profit for the year Adjustment to carrying value of overseas interests due to currency fluctuation Total comprehensive income for the year Transactions with owners in their capacity as owners: Employee share plan 12 Options exercised 12 Employee share options Equity issued under dividend reinvestment plan 12 Share buy back 12 Dividends paid 4 Total transactions with owners in their capacity as owners Balance as at 30 June 2010 12 & 13	Consolidated Entity	Consolidated Entity	Consolidated Entity	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 2011

Hansen Technologies Ltd and Controlled Entities Consolidated Statement of Cash Flows For the Year Ended 30 June 2011
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 Proceeds from sale of plant and equipment 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 12 Payments for share buy back 12 Proceeds from options exercised 12 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 5	Consolidated Entity
	2011	2010
	$'000	$'000
	58,868 (44,601) 672 (4,503)	60,509 (44,117) 615 (4,566)
	10,436	12,441
	45 (839) (2,831) (533)	0 0 (1,212) (1,103)
	(4,158)	(2,315)
	126 0 88 (8,578)	130 (39) 117 (7,402)
	(8,364)	(7,194)
	(2,086)	2,932
	23,450	20,518
	21,364	23,450

4

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

Notes to the Financial Statements 30 June 2011

1 Statement of significant accounting policies

The following is a summary of significant 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

These preliminary financial statements have been prepared in accordance with the measurement and recognition criteria of Australian Accounting Standards.

(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 rendering of services to customers is recognised upon delivery of the service to the customer.

Interest revenue is recognised when it becomes receivable 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:
	2011	2010
Plant, equipment & leasehold improvements: Leased plant and equipment:	2.5 to 12 years 2.5 to 12 years	2.5 to 12 years 2.5 to 12 years

(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 and is included in finance costs in the statement of comprehensive income.

Leased assets are depreciated on a straight line basis over their estimated useful lives where 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.

5

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

(g) Business combinations

A business combination is a transaction or other event in which an acquirer obtains control of one or more businesses and results in the consolidation of the assets and liabilities acquired. Business combinations are accounted for by applying the acquisition method.

The consideration transferred is determined as the aggregate of fair values of assets given, equity issued and liabilities assumed in exchange for control.

Goodwill is recognised initially at the excess over the aggregate of the consideration transferred, the fair value of the non-controlling interest, less the fair value of the identifiable assets acquired and liabilities assumed.

Acquisition related costs are expensed as incurred.

(h) Intangibles

Goodwill

Goodwill is initially measured as described in Note 1(g)

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 demonstrate 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.

(i) 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.

(j) 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.

Deferred tax assets and liabilities are recognized for temporary differences at the applicable tax rates when the assets are expected to be recovered or liabilities settled. No deferred tax asset or liability is recognised in relation to temporary differences 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 balances

Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise 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 entity in the tax-consolidated group contributes to the income tax payable in proportion to their contribution to the net profit before tax of the tax consolidated group.

(k) Provisions

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.

6

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

(l) 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 at grant date. 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.

(m) 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 instruments 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.

(n) Foreign currencies translations and balances

Functional and presentation currency

The financial statements of each entity within 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.

All 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.

(o) 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.

7

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

(p) Comparatives

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

(q) 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.

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
	2011	2010
	$'000	$'000
	57,575	57,766
	57,575	57,766
	953 1,459 87	823 (259) 456
	2,499	1,020
	60,074	58,786

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 8 Total depreciation of non-current assets Amortisation of non-current assets Plant and equipment under finance lease 8 Patents, contracts & software 9 Research and development 9 Total amortisation of non-current assets Property and operating rental expenses Rental charges Total property and operating rental expenses	Consolidated Entity	Consolidated Entity
	2011	2010
	$'000	$'000
	25,427 1,984 42	27,238 2,112 34
	27,453	29,384
	1,301	1,287
	1,301	1,287
	0 374 1,584	12 333 2,281
	1,958	2,626
	2,377	2,318
	2,377	2,318

4 Dividends

2011

A 3 cent per share fully franked final dividend was declared on 25 August 2011. The amount declared has not been recognised as a liability in the accounts of Hansen Technologies Ltd as at 30 June 2011.

ividends provided for or paid during the year - 3 cent per share final dividend paid 27 September 2010 - 3 cent per share final dividend paid 2 October 2009 - 3 cent per share interim dividend paid 28 March 2011 - 2 cent per share interim dividend paid 29 March 2010 roposed dividend not recognised at the end of the year	Consolidated Entity	Consolidated Entity
	2011	2010
	$'000	$'000
	4,653 4,665	4,621 3,089
	9,318	7,710
	4,686	4,653

Dividends provided for or paid during the year

Proposed dividend not recognised at the end of the year

8

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

5 Cash and cash equivalents

Current Cash at bank and on hand Term deposits

Consolidated Entity	Consolidated Entity
2011	2010
$'000	$'000
2,360 19,004	1,514 21,936
21,364	23,450

6 Receivables

Current

Trade receivables Less: Provision for impairment Sundry debtors

Consolidated Entity	Consolidated Entity
2011	2010
$'000	$'000
7,256 0	7,683 0
7,256 340	7,683 495
7,596	8,178

7 Other current assets

Current Prepayments Accrued revenue

Consolidated Entity	Consolidated Entity
2011	2010
$'000	$'000
1,560 1,353	1,134 1,683
2,913	2,817

8 Plant, equipment & leasehold improvements

Plant, equipment & leasehold improvements, at cost Accumulated depreciation Total plant, equipment & leasehold improvements

Consolidated Entity	Consolidated Entity
2011	2010
$'000	$'000
17,068 (12,211)	14,686 (11,245)
4,857	3,441

(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 2010 Additions Disposals Depreciation expense Net foreign currency movements arising from foreign operation Carrying amount at 30 June 2011

Consolidated Entity
2011	2010
$'000	$'000
3,441 2,831 (38) (1,301) (76)	3,576 1,212 (1) (1,287) (59)
4,857	3,441

9

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

9 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 Carrying amount at 1 July 2010 Increase due to acquisition Carrying amount at 30 June 2011 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 Carrying amount at 1 July 2010 Expenditure capitalised in current period Carrying amount at 30 June 2011 Accumulated amortisation at beginning of year Current year charge Accumulated amortisation at end of year	Consolidated Entity	Consolidated Entity
	2011	2010
	$'000	$'000
	31,965 (5,629)	28,928 (5,249)
	26,336	23,679
	25,257 (22,490)	24,724 (20,906)
	2,767	3,818
	29,103	27,497
	28,928 3,037	28,928 0
	31,965	28,928
	(5,249) (374) (6)	(4,912) (333) (4)
	(5,629)	(5,249)
	24,724 533	23,621 1,103
	25,257	24,724
	(20,906) (1,584)	(18,625) (2,281)
	(22,490)	(20,906)

10 Payables

Current Trade payables Other payables

Consolidated Entity	Consolidated Entity
2011	2010
$'000	$'000
921 2,678	941 3,409
3,599	4,350

11 Provisions

Current Employee benefits Onerous lease Other Non-current Employee benefits Onerous lease Other (a) Aggregate employee benefits liability (b) Number of employees at year end	Consolidated Entity	Consolidated Entity
	2011	2010
	$'000	$'000
	4,607 150 68	4,253 378 49
	4,825	4,680
	246 0 21	273 185 0
	267	458
	4,853	4,526
	256	264

10

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

Reconciliations Movements in provisions other than employee benefits: Provisions Onerous Lease - current Carrying amount at beginning of year Provisions released during the year Carrying amount at end of year Provisions Onerous Lease - non current Carrying amount at beginning of 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 Other- non-current Carrying amount at beginning of year Provisions made during the year Carrying amount at end of year	Consolidated Entity	Consolidated Entity
	2011	2010
	$'000	$'000
	378 (228)	523 (145)
	150	378
	185 (185)	639 (454)
	0	185
	49 19	207 (158)
	68	49
	0 21	0 0
	21	0

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

12 Contributed capital

a) Issued and paid up capital Ordinary shares, fully paid

Consolidated Entity	Consolidated Entity
2011	2010
$'000	$'000
49,669	48,715

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
	2011	2011	2010	2010
	No of Shares	$'000	No of Shares	$'000
	154,836,901 885,276 139,986 335,000 0	48,715 740 126 88 0	153,575,594 477,358 216,060 645,000 (77,111)	48,199 308 130 117 (39)
	156,197,163	49,669	154,836,901	48,715

13 Reserves and retained earnings

Note Foreign currency translation reserve 13 (a) Options granted reserve 13 (b) Retained profits 13 (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 Adjustment to carrying value of overseas interests due to currency fluctuation 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 Value of options granted during the year Balance at end of year (c) Retained profits Balance at the beginning of year Dividends paid during the year Adjustment to carrying value of overseas interests due to currency fluctuation Net profit attributable to members of Hansen Technologies Ltd Balance at end of year	Consolidated Entity	Consolidated Entity
	2011	2010
	$'000	$'000
	(2,674)	(407)
	242	200
	5,604	1,389
	(407) (2,267)	(501) 94
	(2,674)	(407)
	200 42	166 34
	242	200
	1,389 (9,318) 2,267 11,266	(2,041) (7,710) (94) 11,234
	5,604	1,389

11

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

14 Business combinations

i) The company acquired 100% of the share capital of NirvanaSoft Inc., with the effective date being 1 November 2010.

Consideration Cash Paid Cash Payable Total Acquisition Cost Less Cash Acquired Payment for Acquisition of Business Net Assets Acquired Assets Cash Trade and other receivables Plant & equipment Total Assets Acquired Liabilities Trade and other payables Provisions Total Liabilities Acquired Net Assets Acquired Total Acquisition Cost Adjusted for Net Assets Acquired Tradename Customer relationships Goodwill Net Intangibles	Consolidated Entity	Consolidated Entity
	2011	2010
	$'000	$'000
	839 0 500 0
	1,339 0
	(94) 0
	1,245 0
	Fair Value	Carrying Amount on Acquisition
	2011	2011
	$'000	$'000
	94 897 12	94 897 12
	1,003 2,571 130	1,003 2,571 130
	2,701	2,701
	(1,698)	(1,698)
	3,037
	152 458 2,427
	3,037

Goodwill arose on the acquisition of NirvanaSoft Inc. due to the combination of the consideration paid for the business and the negative net assets acquired, less values attributed to other intangibles in the form of tradenames and customer relationships.

ii) Revenue and profit / (loss) of NirvanaSoft Inc. included in consolidated results of the group since acquisition

Total revenue Profit / (loss) after income tax	2011
	$'000
	1,973
	(271)

iii) Results of the combined entity for the period as though the date for the acquisition of NirvanaSoft Inc. occurred at 1 July 2010.

It is impracticable to disclose this detail as NirvanaSoft Inc. did not report in accordance with IFRS and Hansen do not have audited financials available to base a reliable projection upon.

12

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
	2011	2010
	$'000	$'000
	13,533	11,140
	13,533	11,140
	2011	2010
	no. shares	no. shares
	155,501,046	154,359,555
	157,356,374	155,947,884
	Centsper share	Centsper share
	8.7	7.2
	8.7 8.6	7.2 7.2
	8.6	7.2

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 unlisted options outstanding under the Employee Share Option Plan.

16 Parent entity information

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 Accumulated losses Share based payments reserve Total equity (b) Summarised statement of comprehensive income Profit for the year Total comprehensive income for the year	Parent Entity	Parent Entity
	2011	2010
	$	$
	202 46,016	69 44,542
	46,218	44,611
	1,424 4,181	1,487 3,821
	5,605	5,308
	40,613	39,303
	49,669 (9,298) 242	48,715 (9,612) 200
	40,613	39,303
	9,631	4,641
	9,631	4,641

(c) Parent entity guarantees

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

13

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

17 Segment Information

a) Description of segments

Inter-segment pricing is determined on an arm's length basis.

Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items mainly comprise income-earning assets and revenue, and corporate assets and expenses.

Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used for more than one period.

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 in 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: Australasia : Sales and services in Australia, Asia and New Zealand North America : Sales and services throughout North America Europe : Sales and services throughout Europe

b) Segment information

2011

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

2011 Financial Year	2011 Financial Year	2011 Financial Year	2011 Financial Year
Billing	Outsourcing	Other	Total
$'000	$'000	$'000	$'000
45,979	7,578	4,018	57,575
45,979	7,578	4,018	57,575
13,553	4,150	1,185	18,888
13,553	4,150	1,185	18,888
30,603	2,810	1,497	34,911
10,429	1,880	999	13,308

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

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

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	2011	2010
	$'000	$'000
	57,575 1,546 953	57,766 197 823
	60,074	58,786

14

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

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

Australasia North America Europe Total revenue	2011	2010
	$'000	$'000
	34,135 12,840 10,600	34,905 13,235 9,626
	57,575	57,766

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 Adjustment to carrying value of overseas interests due to currency fluctuation Other expense Total profit before income tax	2011	2010
	$'000	$'000
	18,888 953 (17) (697) 2,267 (3,159)	17,117 823 (12) (508) (94) (3,244)
	18,235	14,082

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

Segment assets Unallocated assets - Cash - Intangibles - Other Total assets	2011	2010
	$'000	$'000
	34,911	32,141
	19,472 11,000 1,357	22,043 11,000 1,274
	31,829	34,317
	66,740	66,458

Total assets attributed to individual countries is detailed as follows:

Australasia North America Europe Total assets	2011	2010
	$'000	$'000
	58,780 5,037 2,923	61,742 1,553 3,163
	66,740	66,458

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

Segment liabilities Unallocated liabilities Total liabilities	2011	2010
	$'000	$'000
	13,308 591	15,934 627
	13,899	16,561

15