HANSEN TECHNOLOGIES LIMITED — Annual Report 2012

Aug 23, 2012

HANSEN TECHNOLOGIES LTD ABN 90 090 996 455 AND CONTROLLED ENTITIES

FINANCIAL INFORMATION FOR THE YEAR ENDED 30 JUNE 2012 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 2012
Previous corresponding period is	30 June 2011
the financial year ended:

2. Results for announcement to the market

Revenues from ordinary activities Net profit after tax attributable to members	2012 $’000 2011 $’000
	56,554 57,575 12,859 13,533
	Amount per security	Franked amount per security
Final Dividend
Final dividend for the year ended 30 June 2012	3¢	3¢
Final dividend for previous corresponding period	3¢	3¢
Payment date for the final dividend for the year ended 30 June 2012	28 September 2012
Interim Dividend
Interim dividend for the 2012 fiscal year	3¢	1¢
Interim dividend for previous corresponding period	3¢	2¢
Payment dates for the interim dividend	28 March 2012

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 4 cents being fully franked and 2 cents being unfranked.

Please refer to the attached preliminary financial report for the year ended 30 June 2012 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 2011 Three cent interim dividend – year ended 30 June 2012 Three cent final dividend – year ended 30 June 2012	Date of payment	Total amount of dividend
	27 September 2011	$4,700,915
	28 March 2012	$4,721,275
	28 September 2012	$4,743,364

Amount per security

	Amount per security	Franked amount per security at % tax	Amount per security of foreign sourced dividend
Total dividend: Current year(interim)	1¢	30%	0¢
Current year(interim)	2¢	0%	0¢
Current year(final)	3¢	30%	0¢
Previous year(final)	3¢	30%	0¢

Total dividend paid on all securities

Total dividend paid on all securities
Ordinary securities Total	Within the current fiscal year $A'000	Previous fiscal year $A'000
	9,423	9,318
	9,423	9,318

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. Detail of Hansen’s Dividend Reinvestment Plan including the share pricing methodology is available on line at www.hsntech.com/investors/shareholder-information.aspx.

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.

The conduit foreign income component of this final dividend is nil.

The last date for receipt of election notices for participation in the 7 September 2012 dividend or distribution reinvestment plan

8. Statement of retained earnings

	Consolidated Entity
	2012 2011
	$’000 $’000
Balance at the beginning of year	5,604 1,389
Net profit attributable to members of the
parent entity	12,859 13,533
Total available for appropriation	18,463 14,922
Capital reduction	8,500 -
Dividendspaid	(9,423) (9,318)
Balance at end of year	17,540 5,604

9. Net tangible assets per security

Net tangible asset backing per ordinary security

Current period	Previous corresponding period
17.3 cents	14.6 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.

Refer to the accompanying ASX announcement

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 2012

Hansen Technologies Ltd and Controlled Entities Consolidated Statement of Comprehensive Income For the Year Ended 30 June 2012
Note Revenue from continuing operations 2 Other revenues 2 Total revenues Employee expenses 3 Depreciation expense 3 Amortisation expense 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 expense Movement in carrying value of foreign entities due to currency translation Other comprehensive expense for the year Total comprehensive income for the year attributable to members of the parent Basic earnings (cents) per share for ongoing operations 14 Total basic earnings (cents) per share Diluted earnings (cents) per share for ongoing operations 14 Total diluted earnings (cents) per share	Consolidated Entity
	2012	2011
	$'000	$'000
	56,554 1,444	57,575 2,499
	57,998 (27,088) (1,527) (1,651) (2,578) (950) (389) (2,450) (1,443) (653) (758) (1,517)	60,074 (27,080) (1,301) (1,958) (2,377) (1,276) (255) (3,091) (1,394) (668) (777) (1,662)
	(41,004)	(41,839)
	16,994 (4,135)	18,235 (4,702)
	12,859	13,533
	(364)	(2,267)
	(364)	(2,267)
	12,495	11,266
	8.2	8.7
	8.2 8.1	8.7 8.6
	8.1	8.6

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 2012

Hansen Technologies Ltd and Controlled Entities Consolidated Statement of Financial Position As at 30 June 2012
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
	2012	2011
	$'000	$'000
	23,967 9,208 2,662	21,364 7,596 2,913
	35,837	31,873
	4,554 29,593 535	4,857 29,103 907
	34,682	34,867
	70,519	66,740
	2,397 1,819 5,235 3,397	3,599 1,857 4,825 3,351
	12,848	13,632
	244	267
	244	267
	13,092	13,899
	57,427	52,841
	42,579 (3,038) 346 17,540	49,669 (2,674) 242 5,604
	57,427	52,841

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 2012

Hansen Technologies Ltd and Controlled Entities Consolidated Statement of Changes in Equity For the Year Ended 30 June 2012
Consolidated Entity Note Balance as at 1 July 2011 Profit for the year Movement in carrying value of foreign entities due to currency translation Total comprehensive income for the year Transactions with owners in their capacity as owners: Capital reduction 12 Employee share plan 12 Options exercised 12 Employee share options Equity issued under dividend reinvestment plan 12 Dividends paid 4 Total transactions with owners in their capacity as owners Balance as at 30 June 2012 12 & 13	Consolidated Entity
	Contributed Equity	Reserves	Retained Earnings	Total Equity
	$'000	$'000	$'000	$'000
	49,669 0 0	(2,432) 0 (364)	5,604 12,859 0	52,841 12,859 (364)
	0	(364)	12,859	12,495
	(8,500) 141 194 0 1,075 0	0 0 0 104 0 0	8,500 0 0 0 0 (9,423)	0 141 194 104 1,075 (9,423)
	(7,090)	104	(923)	(7,910)
	42,579	(2,692)	17,540	57,427

In a Draft Fact Sheet dated 21 June 2011, the Australian Taxation Office created uncertainty with regard to the application of franking credits for a dividend paid out of current year profits where the company also held prior year retained losses. To remove any uncertainty on this issue the parent entity of the Hansen group undertook in August 2011 a Section 258F Capital reduction, offsetting $8.5 million of Share Capital against historical retained losses. This capital reduction does not change the number of shares nor affect the shareholding in Hansen of any shareholder.

Consolidated Entity Balance as at 1 July 2010 Profit for the year Movement in carrying value of foreign entities due to currency translation 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 Dividends paid 4 Total transactions with owners in their capacity as owners Balance as at 30 June 2011 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

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 2012

Hansen Technologies Ltd and Controlled Entities Consolidated Statement of Cash Flows For the Year Ended 30 June 2012
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 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
	2012	2011
	$'000	$'000
	60,719 (43,958) 1,011 (3,801)	58,868 (44,566) 672 (4,538)
	13,972	10,436
	4 0 (1,215) (2,145)	45 (839) (2,831) (533)
	(3,356)	(4,158)
	141 194 (8,347)	126 88 (8,578)
	(8,012)	(8,364)
	2,603	(2,086)
	21,364	23,450
	23,967	21,364

4

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

Notes to the Financial Statements 30 June 2012

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 lives for each class of assets are:

The useful livesforeachclass ofassets are:
	2012	2011
Plant, equipment & leasehold improvements: Leasedplant and equipment:	2.5 to 12 years 2.5 to 12years	2.5 to 12 years 2.5 to 12years

(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 a five year period (or earlier if the development project is abandoned), 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.

Exchange differences arising on the reduction of a foreign subsidiary's equity, continues to be recognised in the group's foreign currency translation reserve until such time that the foreign subsidiary is disposed of.

(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
	2012	2011
	$'000	$'000
	56,554	57,575
	56,554	57,575
	1,043 246 155	953 1,459 87
	1,444	2,499
	57,998	60,074

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 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
	2012	2011
	$'000	$'000
	24,874 2,110 104	25,054 1,984 42
	27,088	27,080
	1,527	1,301
	1,527	1,301
	394 1,257	374 1,584
	1,651	1,958
	2,578	2,377
	2,578	2,377

4 Dividends

2012

A 3 cent per share fully franked final dividend was declared on 24 August 2012. The amount declared has not been recognised as a liability in the accounts of Hansen Technologies Ltd as at 30 June 2012.

ividends provided for or paid during the year - 3 cent per share final dividend paid 27 September 2011 - 3 cent per share final dividend paid 27 September 2010 - 3 cent per share interim dividend paid 28 March 2012 - 3 cent per share interim dividend paid 28 March 2011 roposed dividend not recognised at the end of the year.	Consolidated Entity	Consolidated Entity
	2012	2011
	$'000	$'000
	4,701 4,722	4,653 4,665
	9,423	9,318
	4,743	4,701

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 Interest bearing deposits

Consolidated Entity	Consolidated Entity
2012	2011
$'000	$'000
4,709 19,258	2,360 19,004
23,967	21,364

6 Receivables

Current Trade receivables Less: provision for impairment Sundry debtors

Consolidated Entity	Consolidated Entity
2012	2011
$'000	$'000
9,077 (6)	7,256 0
9,071 137	7,256 340
9,208	7,596

7 Other current assets

Current Prepayments Accrued revenue

Consolidated Entity	Consolidated Entity
2012	2011
$'000	$'000
1,125 1,537	1,560 1,353
2,662	2,913

8 Plant, equipment & leasehold improvements

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

Reconciliation

Reconciliation 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 Additions Disposals Depreciation expense Net foreign currency movements arising from foreign operations Carrying amount at 30 June

Consolidated Entity	Consolidated Entity
2012	2011
$'000	$'000
21,924 (17,370)	17,068 (12,211)
4,554	4,857
4,857 1,215 (3) (1,527) 12	3,441 2,831 (38) (1,301) (76)
4,554	4,857

9 Intangibles

Intangibles
Goodwill, patents & contracts at cost Accumulated amortisation & impairment Software development at cost Accumulated amortisation Total intangible assets Reconciliation of goodwill, patents & contracts at cost Carrying amount at 1 July Increase due to acquisition Carrying amount at 30 June Accumulated amortisation & impairment at beginning of year Amortisation of patents & contracts Amortisation adjustment Accumulated amortisation & impairment at end of year	Consolidated Entity
	2012	2011
	$'000	$'000
	31,965 (6,027)	31,965 (5,629)
	25,938	26,336
	27,402 (23,747)	25,257 (22,490)
	3,655	2,767
	29,593	29,103
	31,965 0	28,928 3,037
	31,965	31,965
	(5,629) (394) (4)	(5,249) (374) (6)
	(6,027)	(5,629)

9

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

Reconciliation of software development at cost

Carrying amount at 1 July Expenditure capitalised in current period Carrying amount at 30 June Accumulated amortisation at beginning of year Current year charge Accumulated amortisation at end of year

Consolidated Entity	Consolidated Entity
2012	2011
$'000	$'000
25,257 2,145	24,724 533
27,402	25,257
(22,490) (1,257)	(20,906) (1,584)
(23,747)	(22,490)

10 Payables

Current Trade payables Other payables

Consolidated Entity	Consolidated Entity
2012	2011
$'000	$'000
613 1,784	921 2,678
2,397	3,599

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 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 Foreign exchange adjustment Carrying amount at end of year	Consolidated Entity	Consolidated Entity
	2012	2011
	$'000	$'000
	5,106 0 129	4,607 150 68
	5,235	4,825
	222 0 22	246 0 21
	244	267
	5,328	4,853
	267	256
	150 (150)	378 (228)
	0	150
	0 0	185 (185)
	0	0
	68 61	49 19
	129	68
	21 0 1	0 21 0
	22	21

10

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

12 Contributed capital

a) Issued and paid up capital

Ordinary shares, fully paid

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Consolidated Entity
2012 2011
$'000 $'000
42,579 49,669
----- End of picture text -----

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 Capital reduction Balance at end of the financial year

Consolidated Entity	Consolidated Entity	Consolidated Entity	Consolidated Entity
2012	2012	2011	2011
No of Shares	$'000	No of Shares	$'000
156,197,163 1,192,677 152,280 530,000 0	49,669 1,075 141 194 (8,500)	154,836,901 885,276 139,986 335,000 0	48,715 740 126 88 0
158,072,120	42,579	156,197,163	49,669

13 Reserves and retained earnings

Note Foreign currency translation reserve 13 (a) Options granted reserve 13 (b) Retained earnings 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 earnings Balance at the beginning of year Dividends paid during the year Capital reduction Net profit attributable to members of Hansen Technologies Ltd Balance at end of year	Consolidated Entity	Consolidated Entity
	2012	2011
	$'000	$'000
	(3,038)	(2,674)
	346	242
	17,540	5,604
	(2,674) (364)	(407) (2,267)
	(3,038)	(2,674)
	242 104	200 42
	346	242
	5,604 (9,423) 8,500 12,859	1,389 (9,318) 0 13,533
	17,540	5,604

14 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
	2012	2011
	$'000	$'000
	12,859	13,533
	12,859	13,533
	2012	2011
	no. shares	no. shares
	157,250,861	155,501,046
	159,837,337	157,356,374
	Centsper share	Centsper share
	8.2	8.7
	8.2 8.1	8.7 8.6
	8.1	8.6

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

15 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
	2012	2011
	$	$
	124 64,766	202 46,016
	64,890	46,218
	2,999 4,181	1,424 4,181
	7,180	5,605
	57,710	40,613
	42,579 14,786 345	49,669 (9,298) 242
	57,710	40,613
	25,007	9,631
	25,007	9,631

(c) Parent entity guarantees

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

16 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

2012 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	2012 Financial Year	2012 Financial Year	2012 Financial Year	2012 Financial Year
	Billing	Outsourcing	Other	Total
	$'000	$'000	$'000	$'000
	46,317	6,908	3,329	56,554
	46,317	6,908	3,329	56,554
	14,329	2,883	871	18,083
	14,329	2,883	871	18,083
	31,205	2,662	1,283	35,150
	7,635	1,860	896	10,391

12

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

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	3,461	1,185	18,199
	13,553	3,461	1,185	18,199
	30,603	2,810	1,497	34,910
	10,429	1,880	999	13,308

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	2012	2011
	$'000	$'000
	56,554 401 1,043	57,575 1,546 953
	57,998	60,074

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

Australasia North America Europe Total revenue	2012	2011
	$'000	$'000
	32,046 11,618 12,890	34,135 12,840 10,600
	56,554	57,575

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	2012	2011
	$'000	$'000
	18,083 1,043 (32) (712) 364 (1,752)	18,199 953 (17) (697) 2,267 (2,470)
	16,994	18,235

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

Segment assets Unallocated assets - Cash - Intangibles - Other Total unallocated assets Total assets	2012	2011
	$'000	$'000
	35,150	34,910
	22,664 11,000 1,705	19,472 11,000 1,358
	35,369	31,830
	70,519	66,740

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

Australasia North America Europe Total assets	2012	2011
	$'000	$'000
	60,680 5,237 4,602	58,780 5,037 2,923
	70,519	66,740

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

Segment liabilities Unallocated liabilities Total liabilities	2012	2011
	$'000	$'000
	10,391 2,701	13,308 591
	13,092	13,899

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