HANSEN TECHNOLOGIES LIMITED — Annual Report 2016

Aug 23, 2016

HANSEN TECHNOLOGIES LTD ABN 90 090 996 455 AND CONTROLLED ENTITIES

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FINANCIAL INFORMATION FOR THE YEAR ENDED 30 JUNE 2016 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 2016 Previous corresponding period is 30 June 2015 the financial year ended:

2. Results for announcement to the market

2. Results for announcement to the market	2. Results for announcement to the market	2. Results for announcement to the market
Operating revenues from ordinary activities Profit from ordinary activities after tax attributable to members	2016 $’000 2015 $’000
	Up 40% 148,961 106,257 Up 54% 26,083 16,944
	Amount per security	Franked amount per security
Final Dividend
Final dividend for the year ended 30 June 2016	4.0¢	4.0¢
Final dividend for previous corresponding period	3.0¢	2.5¢
Payment date for the final dividend for the year ended 30 June 2016	30 September 2016
Record date for determining entitlement to the future dividend	6 September 2016
Interim Dividend
Interim dividend for the 2016 fiscal year	3.0¢	2.5¢
Interim dividend for previous corresponding period	3.0¢	2.5¢
Payment date for the interim dividend	31 March 2016
A regular dividend of 3.0 cents per share, together with a special dividend of 1.0 cent per share has been Declared. This final dividend totalling 4.0 cents per share is 100% franked. This brings the total disbursements for the year to 7.0 cents franked to 92.9%. Please refer to the attached preliminary financial report for the year ended 30 June 2016 and the accompanying press release for more detail.

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3. Statement of Comprehensive Income

Refer to the attached statement and relevant notes.

4. Statement of Financial Position

Refer to the attached statement and relevant notes.

5. Statement of Cash Flows

Refer to the attached statement and relevant notes.

6. Dividends

Three cent final dividend – year ended 30 June 2015 Three cent interim dividend – year ended 30 June 2016 Four cent final dividend – year ended 30 June 2016	Date of payment	Total amount of dividend
	30 September 2015	$5,306,560
	31 March 2016	$5,352,922
	30 September 2016	$7,196,614

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)	3.0¢	83%	0¢
Previousyear(interim)	3.0¢	83%	0¢
Currentyear(final)	4.0¢	100%	0¢
Previousyear(final)	3.0¢	83%	0¢

Total dividend paid on all securities

Ordinary securities Total	Within the current fiscal year $A'000	Previous fiscal year $A'000
	10,660	9,773
	10,660	9,773

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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/shareholderinformation

The price for shares to be applied for in accordance with the DRP plan for this dividend shall be the full undiscounted value as prescribed by the plan.

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

The last date for receipt of election notices for participation in 7 September 2016 the dividend or distribution reinvestment plan

8. Statement of retained earnings

8. Statement of retained earnings
		Consolidated Entity
		2016	2015
		$’000	$’000
Balance at the beginning of year		29,489 22,318 26,083 16,944	22,318
Net profit attributable to members of the
parent entity			16,944
Total available for appropriation		55,572	39,262
Dividendspaid		(10,660)	(9,773)
Balance at end of year		44,912	29,489

9. Net tangible assets per security

Net tangible asset backing per ordinary security

Current period	Previous corresponding period
16.1 Cents	5.6 Cents

10. Details of entities over which control has been gained during the period

There has been no entities over which Hansen Technologies Ltd has gained or lost control of during the period. Subsequent to year end Hansen Technologies Limited gained control of PPL Solutions LLC as announced to the ASX per the ASX announcement on 1 July 2016.

11. Details of associates and joint venture entities

None

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12. Significant information relating to the entity’s financial performance and financial position

Results from Operations for the full year 2016

	FY16 **$A million **	FY15 **$A million **	Variance %
Operating revenue	148.9	106.3	↑ 40.0
EBITDA	45.4	31.3	↑ 45.0
Profit before tax	36.4	24.0	↑ 51.7
Income tax expense	(10.3)	(7.1)	↑ 45.0
Net profit after tax	26.1	16.9	↑ 54.4
Earnings per share	14.7 cents	10.3 cents	↑ 42.7

Please refer to the attached statements and relevant notes.

13. 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.

14. Commentary on the results for the period

Hansen is once again pleased to announce strong performance across the 2016 year. Both revenue and earnings per share have exceeded all previous benchmarks as we have continued to expand our business operations offshore.

The businesses growth and profit performance is something that our global team has contributed to and is an achievement that the 570+ employees are very proud of. I would like to take this opportunity to thank everyone for their commitment and contribution in delivering this result.

Key Milestones

These results include for the first time the full year’s performance of the TeleBilling business purchased in May 2015. This business has now adopted Hansen methodologies and has delivered a strong contribution across its first year. TeleBilling, while focusing on customer care and billing, has extended our telecommunications and Pay TV offering into central and northern Europe. It is exciting that this business has delivered new customers to Hansen in its first year of operation.

Our strong customer relationships and the delivery of a number of new logos across the year has resulted in an unusually high period of organic growth across the period. The careful planning around the delivery of these systems and customer solutions has produced a year of strong staff utilisation allowing us to deliver an EBITDA margin of 30.5% which is at the upper end of our target range.

With the business continuing to expand internationally our investment in key staff has continued across the period. We believe it is important to ensure that the business is well supported as it continues to grow in regions outside of Australia. This investment will continue into the future.

The cash flow from operations continues to be strong across the business enabling us to retire all debt and accumulate cash into the close of the financial year.

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15. Audit of the financial report

The financial report is in the process of being audited.

16. The audit has not yet been completed

The financial report is not likely to contain an independent audit report that is subject to a modified opinion, emphasis of matter or other matter paragraph.

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Financial Report for Hansen Technologies Ltd and Controlled Entities For the year ended

30 June 2016

Hansen Technologies Ltd

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Financial Report for Hansen Technologies Ltd and Controlled Entities - For the year ended 30 June 2016

Contents	Page Number
Consolidated Statement of Comprehensive Income	8
Consolidated Statement of Financial Position	9
Consolidated Statement of Changes in Equity	10
Consolidated Statement of Cash Flows	11
Notes to the Financial Statements	12-33

Hansen Technologies Ltd

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Consolidated Statement of Comprehensive Income For the Year Ended 30 June 2016

Note	Consolidated Entity 2016 $’000 2015 $’000
Revenue Other income 3 3	148,961 236 106,257 475
Total revenue and other income	149,197106,732
Employee benefit expenses 4 Depreciation expense 4 Amortisation expense 4 Property and operating rental expenses 4 Contractor and consultant expenses Software licence expenses Hardware and software expenses Travel expenses Communication expenses Professional expenses Other expenses	(74,249) (55,295) (2,547) (1,863) (6,489) (5,213) (5,891) (4,575) (4,057) (1,582) (1,035) (1,092) (6,071) (3,251) (4,955) (3,719) (2,042) (1,768) (1,915) (1,407) (3,522) (2,964)
Total expenses	(112,773) (82,729)
Profit before income tax Income tax expense	36,424 24,003 (10,341) (7,059)
Profit after income tax from continuingoperations	26,083 16,944
Other comprehensive income Items that may be reclassified subsequently to profit and loss Exchange differences on translation of foreign entities	2,221 10,052
Other comprehensive income for theyear	2,221 10,052
Total comprehensive income for theyear attributable to members of theparent	28,304 29,996
Basic earnings(cents) per share for continuingoperations 16	14.7 10.3
Total basic earnings (cents) per share Diluted earnings(cents) per share for continuingoperations 16	14.7 10.3 14.4 10.0
Total diluted earnings(cents) per share	14.4 10.0

The consolidated statement of profit and loss and other comprehensive income is to be read in conjunction with the notes to the financial statements set out on pages 12 to 33.

Hansen Technologies Ltd

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Consolidated Statement of Financial Position As at 30 June 2016

Note	Consolidated Entity 2016 $’000 2015 $’000
Current assets Cash and cash equivalents 6 Receivables 7 Other current assets 8	30,203 21,985 21,507 19,950 6,923 5,202
Total current assets	58,633 47,137
Non-current assets Plant, equipment and leasehold improvements 9 Intangible assets 10 Deferred tax assets	6,743 7,556 106,059 104,103 4,030 3,599
Total non-current assets	116,832 115,258
Total assets	175,465 162,395
Current liabilities Payables 11 Borrowings 12 Current tax payable Provisions 13 Unearned income	12,229 8,005 95 10,087 2,187 3,813 9,497 8,862 11,171 13,570
Total current liabilities	35,179 44,337
Non-current liabilities Deferred tax liabilities Borrowings 12 Provisions 13	4,810 4,012 291 374 205 143
Total non-current liabilities	5,306 4,529
Total liabilities	40,485 48,866
Net assets	134,980 113,529
Equity 78,650 75,127 Share capital 14 Foreign currency translation reserve 15(a) 10,167 7,946 Options granted reserve 15(b) 1,251 967 Retained earnings 15(c) 44,912 29,489
Total equity	134,980 113,529

The consolidated statement of financial position is to be read in conjunction with the notes to the financial statements set out on pages 12 to 33.

Hansen Technologies Ltd

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Consolidated Statement of Changes in Equity For the Year Ended 30 June 2016

Consolidated Entity Consolidated entity Note Contributed Equity $’000 Reserves $’000 Retained Earnings $’000 Total Equity $’000	Consolidated Entity Consolidated entity Note Contributed Equity $’000 Reserves $’000 Retained Earnings $’000 Total Equity $’000
Balance as at 1 July 2015 75,127 8,913 29,489 113,529 Profit for the year - - 26,083 26,083 Movement in carrying amount of foreign entities due to currencytranslation 15(a) - 2,221 - 2,221
Total comprehensive income for theyear	- 2,221 26,083 28,304
Transactions with owners in their capacity as owners: Employee share plan 14(b) Options exercised 14(b) Employee share options 15(b) Equity issued under dividend reinvestment plan 14(b) Share purchase plan offer 14(b) Dividendspaid 5
	161 - - 161
	2,238 - - 2,238
	- 284 - 284
	1,154 - - 1,154
	(30) - - (30)
	- - (10,660) (10,660)
Total transactions with owners in their capacity as owners
	3,523 284 (10,660) (6,853)
Balance as at 30 June 2016 15, 16	78,650 11,418 44,912 134,980
Consolidated entity Note Balance as at 1 July 2014 Profit for the year Movement in carrying amount of foreign entities due to currencytranslation 15(a) Total comprehensive income for theyear Transactions with owners in their capacity as owners: Employee share plan 14(b) Options exercised 14(b) Employee share options 15(b) Equity issued under dividend reinvestment plan 14(b) Institutional placement 14(b) Share purchase plan offer 14(b) Dividendspaid 5 Total transactions with owners in their capacity as owners	Contributed Consolidated Entity Retained Total Equity $’000 Reserves $’000 Earnings $’000 Equity $’000 45,126 (1,358) 22,318 66,086 - - 16,944 16,944 - 10,052 - 10,052 - 10,052 16,944 26,996 155 155 1,257 - - 1,257 - 219 - 219 1,510 - - 1,510 14,780 - - 14,780 12,299 - - 12,299 - - (9,773) (9,773) 30,001 219 (9,773) 20,447 75,127 8,913 29,489 113,529
Balance as at 30 June 2015 15, 16

The consolidated statement of changes in equity is to be read in conjunction with the notes to the financial statements set out on pages 12 to 33.

Hansen Technologies Ltd

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Consolidated Statement of Cash Flows

For the Year Ended 30 June 2016

Note	Consolidated Entity 2016 $’000 2015 $’000
Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Finance costs Income taxpaid	154,984 108,671 (110,764) (67,479) 62 60 (59) (234) (11,600) (4,129)
Net cashprovided byoperatingactivities	32,623 36,889
Cash flows from investing activities Payment for acquisition of business net of bank overdraft assumed Payment for plant and equipment 9 Payment for capitalised development costs 10	- (29,900) (1,810) (3,037) (5,488) (4,479)
Net cash used in investingactivities	(7,298) (37,416)
Cash flows from financing activities Proceeds from share issue 14(b) Proceeds from options exercised 14(b) Proceeds from borrowings 12 Payment of borrowings 12 Dividendspaid net of dividend re-investment	161 27,436 2,238 1,257 - 24,000 (10,000) (25,748) (9,506) (8,262)
Net cashprovided by (used in)financingactivities	(17,107) 18,683
Net increase in cash and cash equivalents	8,218 18,156
Cash and cash equivalents at beginningofyear	21,985 3,829
Cash and cash equivalents at end of the year	30,203 21,985

The consolidated statement of changes in equity is to be read in conjunction with the notes to the financial statements set out on pages 12 to 33.

Hansen Technologies Ltd

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Notes to the Financial Statements 30 June 2016

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

This Financial Report is a general purpose Financial Report that has been prepared in accordance with Australian Accounting Standards, Interpretations and other applicable authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.

The 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 address of Hansen Technologies Ltd registered office and principal place of business is 2 Frederick St Doncaster. Hansen Technologies Ltd is a for-profit entity for the purpose of preparing the financial statements.

This preliminary Financial Report was authorised for issue by the Directors on 23 August 2016.

Compliance with IFRS

The consolidated financial statements of Hansen Technologies Ltd also comply with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB).

Historical cost convention

The Financial Report has been prepared under the historical cost convention, as modified by revaluations to fair value for certain classes of assets and liabilities as described in the accounting policies.

Significant accounting estimates

The preparation of the Financial Report requires the use of certain estimates and judgments in applying the entity’s accounting policies. Those estimates and judgments significant to the Financial Report are disclosed in note 2.

(b) Principles of consolidation

The consolidated financial statements are those of the consolidated entity, comprising the financial statements of the parent entity, Hansen Technologies Ltd, and of all entities, which the parent controls. The Group controls an entity when it is exposed, or has rights, to variable returns from its involvement with the entity and has the ability to affect those returns through its power over the entity.

The financial statements of subsidiaries are prepared for the same reporting period as the parent entity, using consistent accounting policies. Adjustments are made to bring into line any dissimilar accounting policies, which may exist.

All inter-company balances and transactions, including any unrealised profits or losses, have been eliminated on consolidation. Subsidiaries are consolidated from the date that control is established.

(c) Revenue

Revenue from the provision of services to customers is recognised upon delivery of the service to the customer. Maintenance and support revenue when invoiced in advance is initially recognised as a liability until the service is performed. Accrued revenue is recognised on a percentage of completion basis in order to record revenues against incurred effort and expense.

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 to have passed to the buyer at the time of delivery of the goods 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 measured net of the amount of goods and services tax (GST).

Hansen Technologies Ltd

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Notes to the Financial Statements

30 June 2016

(d) Cash and cash equivalents

Cash and cash equivalents include cash on hand and at banks, short term deposits with an original maturity of six months or less held at call with financial institutions and bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the statement of financial position.

(e) Plant, equipment and leasehold improvements

Cost and valuation

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

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:	2016	2015
Plant, equipment and leasehold improvements	2.5 to 12 years	2.5 to 12 years
Leasedplant and equipment	2.5 to12years	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 profit or loss.

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.

(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 the sum of the acquisition-date fair values of the assets transferred, equity instruments issued or liabilities incurred by the acquirer to former owners of the acquiree. Deferred consideration payable is measured at its acquisition date fair value. At each reporting date subsequent to the acquisition, contingent consideration payable is measured at its fair value with any changes in the fair value recognised in profit or loss unless the contingent consideration is classified as equity, in which case the contingent consideration is carried at the acquisition-date fair value.

Goodwill is recognised initially as the excess of:

(a) The aggregate of the consideration transferred, the fair value of the non-controlling interests and the acquisition date fair value of the acquirers previously held equity interest; over (b) the net fair value of the identifiable assets acquired and liabilities assumed.

Acquisition-related costs are expensed as incurred.

Hansen Technologies Ltd

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Notes to the Financial Statements

30 June 2016

(h) Intangibles

Goodwill

Goodwill represents the future economic benefits arising from other assets acquired in a business combination that are not individually identifiable or separately recognised. Refer to Note 1(g) for a description of how goodwill arising from a business combination is initially measured.

Technology, trademarks and customer contracts

Technology, trademarks and customer contracts are recognised at cost and are amortised over their estimated useful lives, which range from 5 to 10 years for technology and trademarks and the term of the contract for customer contracts. Technology, trademarks and customer contracts 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.

Development costs are capitalised when the entity can demonstrate all of the following: the technical feasibility of completing the asset so that it will be available for use or sale; the intention to complete the asset and use or sell it; the ability to use or sell the asset; how the asset will generate probable future economic benefits; the availability of adequate technical, financial and other resources to complete the development and to use or sell the asset; and the ability to measure reliably the expenditure attributable to the asset during its development.

Capitalised development expenditure is carried at cost less any accumulated amortization and any accumulated impairment losses. Amortisation is calculated using a straight–line method to allocate the cost of the intangible asset over its estimated useful life, which range from 5 to 10 years. Amortisation commences when the intangible asset is available for use.

Other development expenditure is recognised as an expense when incurred.

(i) Impairment of non-financial assets

Assets with an indefinite useful life are not amortised but are tested at least 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 balances

Deferred tax assets and liabilities are recognised 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 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.

Hansen Technologies Ltd

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Notes to the Financial Statements

30 June 2016

Tax consolidation

The consolidated entity is subject to income taxes in Australia and jurisdictions in which it has foreign operations. In some of these jurisdictions, namely Australia, the USA, and Denmark, the immediate parent entity and entities it controls have formed local income tax consolidated groups that are taxed as a single entity in their relevant jurisdiction. Each tax consolidated group has entered a tax funding agreement whereby each entity in the tax consolidated group recognises the assets, liabilities, expenses and revenues in relation to its own transactions, events and balances only. This means that:

• the parent entity recognises all current and deferred tax amounts relating to its own transactions, events and balances only;

• the subsidiaries recognise current or deferred tax amounts arising in respect of their own transactions, events and balances; and

• the current tax liabilities and deferred tax assets arising in respect of tax losses, are transferred from the subsidiary to the head entity as inter-company payables or receivables.

Each tax consolidated group also has a tax sharing agreement in place to limit the liability of subsidiaries in the tax consolidated group arising under the joint and several liability requirements of the tax consolidation system, in the event of default by the parent entity to meet its payment obligations. This means that under the tax sharing agreement, the subsidiaries are legally liable 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.

(l) Employee benefits

(i) Short term employee benefit obligations

Liabilities arising in respect of wages and salaries, annual leave, long service leave and any other employee benefits expected to be settled within 12 months of the reporting date are measured at the amounts based on remuneration rates that are expected to be paid when the liability is settled. The expected cost of short term employee benefits in the form of compensated absences such as annual leave and long service leave is recognised in the provision for employee benefits. All other short term employee benefit obligations are presented as payables.

(ii) Other long term employee benefit obligations

The provision for other long term employee benefits, including obligation for long service leave and annual leave, which are not expected to be settled wholly before twelve months after the end of the reporting period, are measured at the present value of the estimated future cash outflow to be made in respect of the services provided by employees up to the reporting date. Expected further payments incorporate anticipated future wage and salary levels, durations of service and employee turnover, and are discounted at rates determined by reference to market yields at the end of the reporting period on high quality corporate bonds that have maturity dates that approximate the terms of the obligations. Any remeasurements for changes in assumptions of obligations for other long term employee benefits are recognised in profit or loss in the periods in which the change occurs.

Other long-term employee benefit obligations are presented as current liabilities in the balance sheet if the entity does not have an unconditional right to defer settlement for at least twelve months after the reporting date, regardless of when the actual settlement is expected to occur. All other long-term employee benefit obligations are presented as non-current liabilities in the statement of financial position.

(iii) Retirement benefit obligations

The consolidated group makes retirement benefit contributions to the employee’s defined contribution retirement plan of choice in respect of employee services rendered during the year. These retirement contributions are recognised as an expense in the same period when the related employee services are received. The group’s obligation with respect to employee’s defined contributions entitlements is limited to its obligation for any unpaid retirement contributions at the end of the reporting period. All obligations for unpaid retirement contributions are measured at the (undiscounted) amounts expected to be paid when the obligation is settled and are presented as current liabilities in the statement of financial position.

(iv) Share-based payments

The consolidated entity operates share-based payment employee share and option schemes. 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 measured at the market bid price at grant date. In respect of share-based payments that are dependent on the satisfaction of performance conditions, the number of shares and options expected to vest is reviewed and adjusted at each reporting date. The amount recognised for services received as consideration for these equity instruments granted is adjusted to reflect the best estimate of the number of equity instruments that eventually vest.

Hansen Technologies Ltd

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Notes to the Financial Statements

30 June 2016

(v) Bonus plan

The consolidated entity recognises a provision when a bonus is payable in accordance with the employee’s contract of employment or review letter and the amount can be reliably measured.

(vi) Termination benefits

The group recognises an obligation and expense for termination benefits at the earlier of: (a) the date when the group can no longer withdraw the offer for termination benefits; and (b) when the group recognises costs for restructuring and the costs include termination benefits. In either case, the obligation and expense for termination benefits is measured on the basis of the best estimate of the number of employees expected to be affected. Termination benefits that are expected to be settled wholly before twelve months after the annual reporting period in which the benefits are recognised are measured at the (undiscounted) amounts expected to be paid. All other termination benefits are accounted for on the same basis as other long-term employee benefits.

(m) Borrowing costs

Borrowing costs can include interest expense calculated using the effective interest method and finance charges in respect of finance leases. Borrowing costs are expensed as incurred except for borrowing costs incurred as part of the construction of a qualifying asset, in which case the costs are capitalised until the asset is ready for its intended use or sale.

(n) Financial instruments

Classification

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

Initial recognition and measurement

Financial assets and financial liabilities are recognised when the entity becomes a party to the contractual provisions of the instrument. For financial assets, this is equivalent to the date that the entity commits itself to either the purchase or sale of the asset (ie trade date accounting is adopted).

Financial instruments are initially measured at fair value adjusted for transaction costs, except where the instrument is classified as fair value through profit or loss, in which case transaction costs are immediately recognised as expenses in profit or loss.

Fair value through profit or loss

Financial assets are classified at fair value through profit or loss when they are held for trading for the purpose of short-term profit taking, are derivatives not held for hedging purposes, or when they are designated as such to avoid an accounting mismatch or to enable performance evaluation by key management personnel. Investments in listed securities are carried at fair value through profit or loss. They are measured at their fair value at each reporting date and any increment or decrement in fair value from the prior period is recognised in profit or loss of the current period. Fair value of listed investments are based on closing bid prices at the reporting date.

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. Financial liabilities are classified as current liabilities unless the consolidated entity has an unconditional right to defer settlement of the liability for at least 12 months after the reporting date.

Hansen Technologies Ltd

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Notes to the Financial Statements

30 June 2016

(o) 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 or expenses for the financial year.

Foreign subsidiaries

Subsidiaries that have a functional currency different to the presentation currency of the consolidated group 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 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.

(p) Sales tax (including GST and VAT)

Revenues, expenses and assets are recognised net of the amount of sales tax, except where the amount of sales tax incurred is not recoverable from the Tax Office. In these circumstances the sales tax 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 sales tax.

Cash flows are presented in the statement of cash flows on a gross basis, except for the sales tax component of investing and financing activities, which are disclosed as operating cash flows.

(q) Comparatives

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

(r) Rounding amounts

The parent entity and the consolidated entity have applied the relief available under Corporations (Rounding in Financial/Director’s Reports) instrument 2016/191 and, accordingly the amounts in the consolidated financial statements and in the Directors’ Report have been rounded to the nearest thousand dollars, or in certain cases to the nearest dollar.

(s) Going concern

The Financial Report has been prepared on a going concern basis.

(t) Adoption of new and amended accounting standards that are first operative at 30 June 2016

There are no new or amended accounting standards effective for the financial year beginning 1 July 2015 that have affected any amounts recorded in the current or prior year.

(u) Accounting standards and interpretations issued but not operative at 30 June 2016

The following standards and interpretations have been issued at the reporting date but are not yet effective. The Directors’ assessment of the impact of these standards and interpretations is set out on the following page.

Hansen Technologies Ltd

17

Notes to the Financial Statements

30 June 2016

(i) AASB 15 Revenue from Contracts with Customers

AASB 15 introduces a five-step process for revenue recognition with the core principle being for entities to recognise revenue to depict the transfer of goods or services to customers in amounts that reflect the consideration (that is, payment) to which the entity expects to be entitled in exchange for those goods or services. The five-step approach is as follows:

• Step 1: Identify the contracts with the customer.

• Step 2: Identify the separate performance obligations.

• Step 3: Determine the transaction price.

• Step 4: Allocate the transaction price.

• Step 5: Recognise revenue when a performance obligation is satisfied.

AASB 15 will also result in enhanced disclosures about revenue, provide guidance for transactions that were not previously addressed comprehensively (for example, service revenue and contract modifications) and improve guidance for multipleelement arrangements.

The effective date is annual reporting periods beginning on or after 1 January 2018.

The changes in revenue recognition requirements in AASB 15 may cause changes to the timing and amount of revenue recorded in the financial statements as well as additional disclosures. The impact if any of AASB 15 has not yet been quantified.

(ii) AASB 9 Financial Instruments

AASB 9 makes significant revisions to the classification and measurement of financial assets, reducing the number of categories and simplifying the measurement choices, including the removal of impairment testing of assets measured at fair value. The amortised cost model is available for debt assets meeting both business model and cash flow characteristics tests. All investments in equity instruments using AASB 9 are to be measured at fair value.

AASB 9 amends measurement rules for financial liabilities that the entity elects to measure at fair value through profit and loss. Changes in fair value attributable to changes in the entity’s own credit risk are presented in other comprehensive income. Impairment of assets is now based on expected losses in AASB 9, which requires entities to measure:

• the 12-month expected credit losses (expected credit losses that result from those default events on the financial instrument that are possible within 12 months after the reporting date); or

• full lifetime expected credit losses (expected credit losses that result from all possible default events over the life of the financial instrument).

The effective date is annual reporting periods beginning on or after 1 January 2018. The impact if any of AASB 9 has yet to be quantified.

Other standards and interpretations have been issued at the reporting date but are not yet effective. When adopted, these standards and interpretations are likely to impact on the financial information presented; however, the assessment of impact has not yet been completed.

(iii) AASB 16 Leases

AASB 16 will replace AASB 117: Leases and introduces a single lessee accounting model that will require a lessee to recognise right-of-use assets and lease liabilities for all leases with a term of more than 12 months, unless the underlying asset is of low value. Right-of-use assets are initially measured at their cost and lease liabilities are initially measured on a present value basis. Subsequent to initial recognition:

right-of-use assets are accounted for on a similar basis to non-financial assets, whereby the right-of-use asset is accounted for in accordance with a cost model unless the underlying asset is accounted for on a revaluation basis, in which case if the underlying asset is:

• investment property, the lessee applies the fair value model in AASB 140: Investment Property to the right-of-use asset; or

• property, plant or equipment, the lessee can elect to apply the revaluation model in AASB 116: Property, Plant and Equipment to all of the right-of-use assets that relate to that class of property, plant and equipment; and

• lease liabilities are accounted for on a similar basis as other financial liabilities, whereby interest expense is recognised in respect of the liability and the carrying amount of the liability is reduced to reflect lease payments made.

AASB 16 substantially carries forward the lessor accounting requirements in AASB 117. Accordingly, under AASB 16 a lessor would continue to classify its leases as operating leases or finance leases subject to whether the lease transfers to the lessee substantially all of the risks and rewards incidental to ownership of the underlying asset, and would account for each type of lease in a manner consistent with the current approach under AASB 117.

Although the directors anticipate that the adoption of AASB 16 may have an impact on the Group’s accounting for its operating leases, it is impracticable at this stage to provide a reasonable estimate of such impact.

Hansen Technologies Ltd

18

Notes to the Financial Statements

30 June 2016

2. Critical accounting estimates and judgements

The Group makes certain estimates and assumptions concerning the future which, by definition, will seldom represent actual results. Estimates and assumptions based on future events have a significant inherent risk and where future events are not as anticipated, there could be a material impact on the carrying amounts of the assets and liabilities discussed on the following pages.

(a) Impairment of goodwill

The intangible asset of goodwill is subject to periodic review to assess if its carrying value has been impaired. This assessment compares the carrying book value with the recoverable amount of these assets using value in-use discounted cash flow projection calculations based on management’s determination of budgeted cash flow projections and gross margins, past performance and its expectations for the future. The valuation utilises the billing business segment of the Boardapproved budget for the subsequent fiscal year (being the business segment to which goodwill applies), and:

• provides for a constant 5% growth rate (2015: 5%) for the remainder of the forecast period; and

• utilises a 12% (2015:12%) weighted cost of capital discount rate; to

• determine the discounted value of the resultant cash flow over a five-year period, plus terminal value using a terminal growth rate of 2% (2015: 2%) at period end.

(b) Impairment of non-financial assets other than goodwill

All assets are assessed for impairment at each reporting date by evaluating whether indicators of impairment exist in relation to the continued use of the asset by the consolidated entity. Impairment triggers include declining product or manufacturing performance, technology changes, adverse changes in the economic or political environment or future product expectations. If an indicator of impairment exists the recoverable amount of the asset is determined.

(c) Income tax

Income tax benefits are based on the assumption that no adverse change will occur in the income tax legislation and the anticipation that the Group will derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions of deductibility imposed by the law.

Recognition of carried forward losses is based upon the probable future profits of the Group.

(d) Research and development

Development costs incurred are assessed for each research and development project and a percentage of the expenditure is capitalised when technical feasibility studies demonstrate that the project will deliver future economic benefits and those benefits can be measured reliably.

There has been investment in research and development expenditure incurred in relation to the HUB, Peace, ICC, Banner and NaviBilling software in the 2016 year. Returns are expected to be derived from this investment over coming years.

(e) Fair Value Measurement

Certain financial assets and liabilities are measured at fair value. Fair values have been determined in accordance with fair value measurement hierarchy.

3. Revenue and other income

3Revenue and other income
.	Consolidated Entity 2016 $’000 2015 $’000
Revenues from continuing operations Revenue from sale ofgoods and services	148,961 106,257
	148,961106,257
Other income: From operating activities Interest received Net foreign exchange gains Other income	62 60 (59) 203 233 212
Total other income	236475
Total revenue and other income from continuingoperations	149,197 106,732

Hansen Technologies Ltd

19

Notes to the Financial Statements 30 June 2016

4. Profit from continuing operations

4.Profit from continuing operations
Note	Consolidated Entity 2016 $’000 2015 $’000
Profit from continuing operations before income tax has been determined after the following specific expenses: Employee benefit expenses Wages and salaries Superannuation costs Share-basedpayments	68,585 51,142 5,378 3,934 286 219
Total employee benefit expenses	74,249 55,295
Depreciation expense Plant,equipment and leasehold improvements 9	2,547 1,863
Total depreciation expense	2,547 1,863
Amortisation of non-current assets Technology, trademarks and customer contracts 10 Research and development 10	3,572 3,082 2,917 2,131
Total amortisation of non-current assets	6,489 5,213
Property and operating rental expenses Rental charges	5,891 4,575
Totalpropertyand operatingrental expenses	5,891 4,575
Finance charges Finance costs	- 234
Total finance costs	- 234

Hansen Technologies Ltd

20

Notes to the Financial Statements 30 June 2016

5. Dividends

2016

A 4 cent per share final dividend, franked to 4 cents, was announced to the market on 24 August 2016. The amount declared has not been recognised as a liability in the accounts of Hansen Technologies Ltd as at 30 June 2016.

	Consolidated Entity	Consolidated Entity
	2016	2015
	$’000	$’000
Dividends provided for or paid during the year
3 cent per share final dividend paid 30 September 2015 – franked to 2.5 cents	5,307
3 cent per share final dividend paid 30 September 2014 – fully franked		4,874
3 cent per share interim dividend paid 31 March 2016 – franked to 2.5 cents	5,353
3 centper share interim dividendpaid 27 March 2015 – franked to 2.5 cents		4,899
	10,660	9,773
Proposed dividend not recognised at the end of theyear	7,197	5,307
Dividend franking account
30% franking credits, on a tax paid basis, are available to shareholders of Hansen
Technologies Ltd for subsequent financialyears	5,513	2,473

The above available amounts are based on the balance of the dividend franking account at year end adjusted for:

(a) franking credits that will arise from the payment of any current tax liability;

(b) franking debits that will arise from the payment of any dividends recognised as a liability at year end;

(c) franking credits that will arise from the receipt of any dividends recognised as receivables at year end; and

• (d) franking credits that the entity may be prevented from distributing in subsequent years.

The ability to utilise the franking credits is dependent upon there being sufficient available profits to declare dividends.

6. Cash and cash equivalents

6.Cash and cash equivalents
	Consolidated Entity
	2016	2015
	$’000	$’000
Current
Cash at bank and on hand	29,644	5,718
Interest bearingdeposits	559	16,267
	30,203	21,985

Hansen Technologies Ltd

21

Notes to the Financial Statements

30 June 2016

7. Receivables

7. Receivables
	Consolidated Entity 2016 $’000 2015 $’000
Current Trade receivables Less:provision for impairment	20,821 (31) 19,578 (470)
Sundryreceivables	20,790 717 19,108 842
	21,507 19,950
Trade and other receivables ageing analysis at 30 June:	Gross 2016 $’000 Impairment 2016 $’000 Gross 2015 $’000 Impairment 2015 $’000
Not past due Past due 31– 60 days Past due 61– 90 days Past due more than 91 days	14,685 - 15,708 - 1,416 - 1,350 - 803 - 1,072 - 3,917 31 1,448 470
	20,821 31 19,578 470

The entity expects to collect all debtor amounts where no provision for impairment has been recorded.

	2016 $’000 2015 $’000
Movements in the provision for impairment were: Opening balance at 1 July Movement for the year Amounts written off Foreign exchange translation	470 317 - 393 (439) (319) - 79
Closingbalance at 30 June	31 470

8. Other current assets

8.Other current assets
	Consolidated Entity 2016 $’000 2015 $’000
Current Prepayments Other receivables Accrued revenue	2,341 1,990 - 38 4,582 3,174
	6,923 5,202

Hansen Technologies Ltd

22

Notes to the Financial Statements

30 June 2016

9. Plant, equipment and leasehold improvements

9.Plant, equipment and leasehold improvements
	Consolidated Entity 2016 $’000 2015 $’000
Plant, equipment and leasehold improvements at cost Accumulated depreciation	33,504 (26,761) 32,111 (24,555)
Totalplant,equipment and leasehold improvements	6,743 7,556

Reconciliation

Reconciliation of the carrying amounts of plant, equipment and leasehold improvements at the beginning and end of the current financial year.

	Consolidated Entity 2016 $’000 2015 $’000
Plant, equipment and leasehold improvements Carrying amount at 1 July Additions Acquired Disposals Depreciation expense Net foreign currencymovements arisingfrom foreign operations	7,556 4,376 1,810 3,037 - 1,960 (117) (19) (2,547) (1,863) 41 65
Carryingamount at 30 June	6,743 7,556

10. Intangible assets

10.Intangible assets
	Consolidated Entity
	2016	2015
	$’000	$’000
Goodwill at cost	84,196	81,888
Accumulated impairment	(1,575)	(1,454)
	82,621	80,434
Technology, trademarks and customer contracts at cost	22,496	21,740
Accumulated amortisation and impairment	(11,119)	(7,487)
	11,377	14,253
Software development at cost	35,141	29,574
Accumulated amortisation and impairment	(23,080)	(20,158)
	12,061	9,416
Total intangible assets	106,059	104,103

Hansen Technologies Ltd

23

Notes to the Financial Statements

30 June 2016

10. Intangible assets continued

10. Intangible assetscontinued
Note	Consolidated Entity 2016 $’000 2015 $’000
Reconciliation of goodwill at cost Carrying amount at 1 July Increase due to acquisition Net foreign currencymovements arisingfrom foreign operations	81,888 54,944 - 20,062 2,308 6,882
Carryingamount at 30 June	84,196 81,888
Accumulated impairment at beginning of year Net foreign currencymovements arisingfrom foreign operations	(1,454) (1,433) (121) (21)
Accumulated impairment at end ofyear	~~0~~ (1,575) (1,454)
Reconciliation of technology, trademarks and customer contracts at cost Carrying amount at 1 July Increase due to acquisition Net foreign currencymovements arisingfrom foreign operations	21,740 12,377 - 7,091 756 2,272
Carryingamount at 30 June	22,496 21,740
Accumulated amortisation and impairment at beginning of year Amortisation of technology, trademarks and customer contracts Net foreign currencymovements arisingfrom foreign operations	(7,487) (3,764) (3,572) (3,082) (60) (641)
Accumulated amortisation and impairment at end ofyear	(11,119) (7,487)
Reconciliation of software development at cost Carrying amount at 1 July Expenditure capitalised in current period Fully amortised write back Net foreign currencymovements arisingfrom foreign operations	29,574 28,627 5,488 4,479 - (3,994) 79 462
Carryingamount at 30 June	35,141 29,574
Accumulated amortisation at beginning of year Current year charge Fully amortised write back Net foreign currencymovements arisingfrom foreign operations	(20,158) (21,977) (2,917) (2,131) -3,994 (5) (44)
Accumulated amortisation at end ofyear	(23,080) (20,158)

Hansen Technologies Ltd

24

Notes to the Financial Statements

30 June 2016

11. Payables

11.Payables
	Consolidated Entity
	2016	2015
	$’000	$’000
Current
Trade payables	2,061	1,885
Otherpayables	10,168	6,120
	12,229	8,005

Included in other payables is a liability for contingent consideration related to a business combination dated 1 May 2015. This liability will be met with the issue of ordinary shares in July 2016.

12. Borrowings

12. Borrowings
	Consolidated Entity 2016 $’000 2015 $’000
Current Secured Term facility Lease liability	- 95 10,000 87
	95 10,087
Non-current Secured Lease liability	291 374
	291 374

The Company has a secured A$30 million multi-currency two-year term facility with its external bankers to provide additional funding as required for acquisitions and general corporate purposes.

The facility is secured by 90% of Group assets. As at 30 June 2016 the remaining unutilised portion of the facility is A$30 million.

The Company has a lease liability relating to IT equipment due for repayment in full by January 2020.

Hansen Technologies Ltd

25

Notes to the Financial Statements

30 June 2016

13. Provisions

13. Provisions
	Consolidated Entity 2016 $’000 2015 $’000
Current Employee benefits Onerous lease Other	9,201 8,586 - - 296 276
	9,497 8,862
Non-current Employee benefits	205 143
	205 143
(a)Aggregate employee benefitsliability	9,406 8,729
(b)Number of employees atyear end	579 544
Reconciliations Movements in provisions other than employee benefits: Provisions onerous lease – current Carrying amount at beginning of year Netprovisions(payments)made duringtheyear	- 130 - (130)
Carryingamount at end ofyear	- -
Other – current Carrying amount at beginning of year Netprovisions(payments)made duringtheyear	276 95 20181
Carryingamount at end ofyear	296276

Provision for Employee Benefits

Provision for employee benefits represents amounts accrued for annual leave and long service leave. The current portion for this provision includes the total amount accrued for annual leave entitlements and the amounts accrued for long service leave entitlements that have vested due to employees having completed the required period of service. Based on past experience, the Group does not expect the full amount of annual leave or long service leave balances classified as current liabilities to be settled within the next 12 months. However, these amounts must be classified as current liabilities since the Group does not have an unconditional right to defer the settlement of these amounts in the event employees wish to use their leave entitlement.

The non-current portion for this provision includes amounts accrued for long service leave entitlements that have not yet vested in relation to those employees who have not yet completed the required period of service.

In calculating the present value of future cash flows in respect of long service leave, the probability of long service leave being taken is based on historical data. The measurement and recognition criteria relating to employee benefits have been discussed in Note 1(l).

Hansen Technologies Ltd

26

Notes to the Financial Statements

30 June 2016

14. Contributed capital

	Consolidated Entity 2016 $’000 2015 $’000 78,650 75,127 Consolidated Entity Consolidated Entity 2016 No.ofShares 2016 $’000 2015 No.ofShares 2015 $’000
(a) Issued and paid up capital Ordinaryshares,fully paid
(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 Institutional placement Sharepurchaseplan offer	176,195,333 75,127 161,209,642 45,126 377,199 1,154 931,695 1,510 46,529 161 65,720 155 2,295,000 2,238 1,345,000 1,257 - - 6,966,717 14,780 - (30) 5,676,55912,299
Balance at end of the financialyear	178,914,061 78,650 176,195,333 75,127

Hansen Technologies Ltd

27

Notes to the Financial Statements

30 June 2016

15. Reserves and retained earnings

15. Reserves and retained earnings
Note	Consolidated Entity 2016 $’000 2015 $’000
Foreign currencytranslation reserve 15(a)	10,167 7,946
Optionsgranted reserve 15(b)	1,251 967
Retained earnings 15(c)	44,912 29,489
(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	7,946 (2,106) 2,22110,052
Balance at end ofyear	10,1677,946
(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 optionsgranted duringtheyear	967 748 284 219
Balance at end ofyear	1,251 967
(c) Retained earnings Balance at beginning of year Dividends paid during the year Netprofit attributable to members of Hansen Technologies Ltd	29,489 22,318 (10,660) (9,773) 26,083 16,944
Balance at end ofyear	44,912 29,489

Hansen Technologies Ltd

28

Notes to the Financial Statements

30 June 2016

16. Earnings per share

16. Earnings per share
	Consolidated Entity 2016 $’000 2015 $’000
Reconciliation of earnings used in calculating earnings per share: Basic earnings – ordinaryshares	26,083 16,944
Diluted earnings – ordinaryshares	26,083 16,944
	2016 No. Shares 2015 No. Shares
Weighted average number of ordinary shares used in calculating basic earnings per share: Number for basic earningsper share – ordinaryshares	177,557,079 164,045,486
Number for diluted earningsper share – ordinaryshares	181,491,615 169,374,596
	2016 Cents Per Share 2015 Cents Per Share
Basic earnings(cents) per share from continuingoperations	14.7 10.3
Total basic earnings(cents) per share	14.7 10.3
Diluted earnings(cents) per share from continuingoperations	14.4 10.0
Total diluted earnings(cents) per share	14.4 10.0

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.

Hansen Technologies Ltd

29

Notes to the Financial Statements 30 June 2016

17. Parent entity information

Summarised presentation of the parent entity, Hansen Technologies Ltd’s, financial statements:

Summarised presentation of the parent entity, Hansen Technologies Ltds, financial statemen	s: 2016 $’000 Parent Entity 2015 $’000
(a) Summarised statement of financial position Assets Current assets Non-current assets	96 91,966 68 85,502
Total assets	92,062 85,570
Liabilities Current liabilities Non-current liabilities	4,161 3,773 - 13
Total liabilities	4,161 3,786
Net assets	87,901 81,784
Equity Share capital Accumulated profits Share-basedpayments reserve	78,650 75,127 8,000 5,690 1,251 967
Total equity	87,901 81,784
	2016 $’000 Parent Entity 2015 $’000
(b) Summarised statement of comprehensive income Profit for theyear	12,968 798
Total comprehensive income for theyear	12,968 798

A dividend was paid from Hansen Corporation Pty Ltd to Hansen Technologies Ltd of $12.5m during the financial year.

(c) Parent entity guarantees

Hansen Technologies Ltd, being the parent entity, has entered into a guarantee in regard to the loan facility (refer note 12), but other than that has not entered into any guarantees in relation to debts of its subsidiaries.

Hansen Technologies Ltd

30

Notes to the Financial Statements

30 June 2016

18. 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.

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 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:

APAC: Sales and services throughout Australia and Asia.

Americas: Sales and services throughout the Americas. EMEA: Sales and services throughout Europe, the Middle East and Africa.

(b) Segment information

(b)Segment information
		2016 Financial Year
	Billing	Outsourcing	Other		Total
2016	$’000	$’000	$’000		$’000
Segment revenue
Total segment revenue	139,939	6,310		2,712	148,961
Segment revenue from external source	139,939	6,310		2,712	148,961
Segment result
Total segment result	33,874	2,811		1,085	37,770
Segment result from external source	33,874	2,811		1,085	37,770
Items included within the segment result:
Depreciation expense	2,063	169		4	2,236
Amortisation expense	6,489	-		-	6,489
Total segment assets	140,716	1,669		717	143,102
Additions to non-current assets	1,035	-		-	1,035
Total segment liabilities	34,231	1,464		629	36,324

Hansen Technologies Ltd

31

Notes to the Financial Statements

30 June 2016

ne 2016
2015	2015 Financial Year Billing $’000 Outsourcing $’000 Other $’000 Total $’000
Segment revenue Total segment revenue
	97,275 6,040 2,942 106,257
Segment revenue from external source	97,275 6,040 2,942 106,257
Segment result Total segment result
	21,779 2,858 958 25,595
Segment result from external source	21,779 2,858 958 25,595
Items included within the segment result: Depreciation expense Amortisation expense Total segment assets
	1,514 84 6 1,604
	5,213 - - 5,213
	135,799 1,558 758 138,115
Additions to non-current assets
	1,285 631 - 1,916
Total segment liabilities
	32,695 1,606 782 35,083

(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	2016 $’000 2015 $’000
	148,961 106,257 174 415 62 60
	149,197 106,732
Revenue from external source attributed to individual countries is detailed as follows: APAC Americas EMEA Total revenue	2016 $’000 2015 $’000
	41,167 39,068 35,184 32,142 72,610 35,047
	148,961 106,257

Hansen Technologies Ltd

32

Notes to the Financial Statements

30 June 2016

18. Segment information continued

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

	2016 $’000 2015 $’000
Segment result from external source Interest revenue Interest expense Depreciation and amortisation Other expense	37,770 25,595 62 60 - (234) (311) (259) (1,097) (1,159)
Totalprofit before income tax	36,424 24,003

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

	2016	2015
	$’000	$’000
Segment assets	143,102	138,115
Unallocated assets
–Cash	30,203	21,985
–Other	2,160	2,295
Total unallocated assets	32,363	24,280
Total assets	175,465	162,395

Total assets attributed to individual regions is detailed as follows:

	2016 $’000 2015 $’000
APAC Americas EMEA	52,130 58,691 75,372 58,355 47,963 45,349
Total assets	175,465 162,395

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

(iv) Reconciliation of segment liabilities to the consolidated statement of financial ii
poston	2016 2015 $’000 $’000
Segment liabilities	36,324 35,083
Unallocated liabilities – Bank facility – Other	- 10,000 4,161 3,783
Total unallocated liabilities	4,161 13,783
Total liabilities	40,485 48,866

Hansen Technologies Ltd

33