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HANSEN TECHNOLOGIES LIMITED Interim / Quarterly Report 2008

Feb 21, 2008

65073_rns_2008-02-21_93344dd6-8737-4323-a4c4-35be2e1afe04.pdf

Interim / Quarterly Report

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22 February 2008

ASX GPO Box 1784 MELBOURNE 3001

RE: Amended - Half Yearly Report (Appendix 4D), 31 December 2007

Further to the half-yearly report which was released to market today, 22 February 2008, a number of amendments have been issued. They are as follows;

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Note 2 - page 2

  • $A ‘000 added to denote thousands of dollars

  • Note 2 – page 2

  • Record date for determining entitlements to the additional 1 cent dividend yet to be paid has been changed to 4 March 2008

    • Included in the description at the end of Note 2

The Record Date for the additional 1 cent per share interim dividend will be 4 March 2008 and payment will be despatched to shareholders on 19 March 2008

  • Note 5 – page 4

  • Payment date has been changed to 19 March 2008

  • Note 6 – page 4

  • The last date(s) for receipt of election notices for participation in the dividend or distribution reinvestment plan has been changed to 4 March 2008

  • Page 8 – Review of Operations

  • Record date for the additional 1 cent per share interim dividend has been changed to 4 March 2008 and the payment date is now 19 March 2008

Regards

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Mr Grant Lister Company Secretary Hansen Technologies Limited

HANSEN TECHNOLOGIES LTD ABN 90 090 996 455 AND CONTROLLED ENTITIES

HALF-YEAR INFORMATION FOR THE SIX MONTHS ENDED 31 DECEMBER 2007 PROVIDED TO THE ASX UNDER LISTING RULE 4.2A

This half-year financial report is to be read in conjunction with the financial report for the year ended 30 June 2007.

-1-

Rule 4.2A.3

Appendix 4D Half Year Report for the six months to 31 December 2007

Name of entity

Hansen Technologies Ltd and its Controlled Entities

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

1. Reporting period

Report for the half year ended[ 31 December 2007 ] The previous corresponding periods are the financial year ended 30 June 2007 and the half year ended 31 December 2006.

2. Results for announcement to the market

Revenues from ordinary activities
Net profit after tax for the period attributable to
members
$A‘000 $A‘000
Down
9%
to
22,084
Up
1436%
to
12,167
Dividends Amount per security Franked amount per
security
Final dividend for the year ended 30 June 2007
Previous corresponding period – Final Dividend
Payment date for the final dividend for the year ended
30 June 2007
8 October 2007
Interim dividend for the current fiscal year
Previous corresponding period – Interim Dividend
Payment date of the first3cents of the interim dividend 18December 2007
Record date for determining entitlements to the
additional 1 cent dividendyet to bepaid
4 March 2008

-2-

Highlights of the financial results for the 6 months to December 2007 include:

  • Revenue from operations of $22.1 million

  • Earnings before interest, tax, depreciation and amortisation (EBITDA) of $14.9 million, being;

  • $6.1 million from operations, representing a 117% increase on the previous year, plus

  • $8.8 million profit on sale of the NSW based outsourcing business after allowing for all costs associated with the sale and related sale adjustments. (Note: this is a reduction from the $9.4 million profit previously projected)

  • After tax profit of $12.2 million or 8.1 cents per share, being a $11.4 million increase on the $0.8 million in the previous year,

  • Considerable strengthening of the companies financial position since June 2007;

  • Net equity increased to $42.8 million, or 28 cents per share

  • Net tangible assets increased to 15.2 cents per share

  • Cash on hand $20.2 million (after payment in December 2007 of the initial interim dividend of 3 cents per share or $4.5 million approximately)

  • Zero third party debt

The Directors of Hansen have declared an unfranked interim dividend of 4 cents per share for the first half of this fiscal year. Three cents was paid to shareholders in December 2007, leaving an additional 1 cent per share or $1.5 million approximately to be distributed in March 2008. The Record Date for the additional 1 cent per share interim dividend will be 4 March 2008 and payment will be despatched to shareholders on 19 March 2008.

3. Net tangible assets per security

.
Net tangible assets per security
Net tangible asset backing per ordinary
security
Current period Previous corresponding
period
15.2 cents 6.0 cents

4. Details of entities over which control has been gained or lost during the period:

Effective 31 August 2007 the company sold its wholly owned subsidiary, Hansen Professional Services Pty Ltd (HPS), incorporating the Hansen Group’s NSW based IT outsourcing business, for a cash consideration of $10.5 million. After allowing for previously unrecognised capital tax losses, all costs associated with the sale and related sale adjustments plus the tax cost base of HPS within Hansen’s consolidated tax group, the sale of HPS generated an after tax profit for the Hansen Group of $8.8 million. (Note: this is a reduction from the $9.4 million profit previously projected) The sale of HPS completed the rationalisation of the Group’s business structure started in the previous year.

-3-

5. Dividends

Final dividend – year ended 30 June
2007
Initial 3 cent Interim dividend – half-
year ended 31 Dec 2007
Additional 1 cent interim dividend -
half-year ended 31 Dec 2007
Date of payment Total amount of dividend
8 October 2007 $1,504,515
18 December 2007 $4,523,695
19 March 2008 $1,513,008

Amount per security

Amount per
security
Franked
amount per
security at
% tax
Amount per
security of
foreign
sourced
dividend
Total dividend:
Current year
Previous year

Total dividend on all securities

Ordinary securities_(each class separately)
Preference securities
(each class separately)
Other equity instruments
(each class separately)_
Total
December 2007
$A'000
December 2006
$A'000
6,037
-
-
-
-
-
6,037 -

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

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

The last date(s) for receipt of election notices for participation in the dividend or distribution reinvestment plan 4 March 2008

-4-

7. The financial information provided in the Appendix 4D is based on the half year condensed financial report (attached), which has been prepared in accordance with Australian equivalent to International Financial Reporting Standards (AIFRS).

8. Independent review of the financial report

The financial report has been independently reviewed. The financial report is not subject to a qualified independent review statement.

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Hansen Technologies Ltd and Controlled Entities ABN 90 090 996 455

HANSEN TECHNOLOGIES LTD

ABN 90 090 996 455 AND CONTROLLED ENTITIES FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2007

This half-year financial report is to be read in conjunction with the financial report for the year ended 30 June 2007.

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Hansen Technologies Ltd and Controlled Entities ABN 90 090 996 455

HANSEN TECHNOLOGIES LTD AND CONTROLLED ENTITIES FINANCIAL REPORT FOR THE HALF-YEAR ENDED 31 DECEMBER 2007

Table of Contents

TABLE OF CONTENTS

Page 8 Directors' Report 10 Auditor’s Independence Declaration Financial Report for the half year ended 31 December 2007 11 Condensed Consolidated Income Statement 12 Condensed Consolidated Balance Sheet 13 Condensed Consolidated Statement of Changes in Equity 14 Condensed Consolidated Statement of Cash Flows 15 Notes to the Financial Statements 18 Directors' Declaration 19 Independent Auditor's Review Report

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Hansen Technologies Ltd and Controlled Entities ABN 90 090 996 455

Directors Report

The directors present their report together with the condensed financial report of the consolidated entity consisting of Hansen Technologies Ltd and the entities it controlled, for the half-year ended 31 December 2007 and independent review report thereon.

Directors Names

The names of the directors in office at any time during or since the end of the half-year are:

Name
Period of Directorship

Mr Kenneth Hansen
Chairman since 2000
Mr Andrew Hansen
Managing Director since 2000
Mr Bruce Adams
Director since 2000
Mr David Osborne
Director since 2006

Review of Operations

The consolidated profit of the group for the half-year after providing for income tax amounted to $12,166,663

Highlights of the financial results for the 6 months to December 2007 include:

  • Revenue from operations of $22.1 million

  • Earnings before interest, tax, depreciation and amortisation (EBITDA) of $14.9 million, being;

  • $6.1 million from operations, representing a 117% increase on the previous year, plus

  • $8.8 million profit on sale of the NSW based outsourcing business.

  • After tax profit of $12.2 million or 8.1 cents per share, being a $11.4 million increase on the $0.8 million in the

  • previous year,

  • Considerable strengthening of the company's financial position since June 2007;

  • Net equity increased to $42.8 million, or 28 cents per share

  • Net tangible assets increased to 15.2 cents per share

  • Cash on hand $20.2 million (after payment in December 2007 of the initial interim dividend of 3 cents per

  • share or $4.5 million approximately)

  • Zero third party debt

We have declared an unfranked interim dividend of 4 cents per share for the first half of this fiscal year. Three cents was paid to shareholders in December 2007, leaving an additional 1 cent per share or $1.5 million approximately to be distributed in March 2008. The Record Date for the additional 1 cent per share interim dividend will be 4 March 2008 and payment will be despatched to shareholders on 19 March 2008.

The first 6 months of this fiscal year has been a very satisfying period for our Company. We have continued to build upon the strong progress achieved last year.

Effective 31 August 2007 the company sold its wholly owned subsidiary, Hansen Professional Services Pty Ltd (HPS), incorporating the Hansen Group’s NSW based IT outsourcing business, for a cash consideration of $10.5 million. After allowing for previously unrecognised capital tax losses, all costs associated with the sale and related sale adjustments plus the tax cost base of HPS within Hansen’s consolidated tax group, the sale of HPS generated an after tax profit for the Hansen Group of $8.8 million. (Note: this is a reduction from the $9.4 million profit previously projected).The sale of HPS completes the rationalisation of the Group’s business structure started in the previous year.

It is extremely pleasing to note that in spite of the sale of our NSW outsourcing business, and the natural reduction in revenue as a result, we have been able to deliver an absolute year on year increase in all other operating results.

Last year's second half performance was very strong and it will be a challenge to match that result in the second half of this fiscal year. Our performance in the second half will, as usual, depend upon the timing of key projects. Never the less we are confident of a full year result which will continue to be an absolute increase on last year, even taking into account the full year impact of the sale of our NSW outsourcing subsidiary. A conservative outlook for this fiscal year would project an EBITDA exceeding $17.5 million.

Auditor's Independence Declaration

A copy of the auditor’s independence declaration in relation to the review for the half-year is provided with this report.

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Hansen Technologies Ltd and Controlled Entities ABN 90 090 996 455

Rounding of amounts to the nearest thousand dollars

The amounts contained in the report and in the financial report have been rounded to the nearest thousand dollars (where rounding is applicable) under the option available to the company under ASIC Class Order 98/0100. The company is an entity to which the Class Order applies.

Signed in accordance with a resolution of the directors:

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Kenneth Hansen

Director

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Andrew Hansen Director

Dated at Melbourne this 22[nd] day of February 2008.

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Hansen Technologies Ltd and Controlled Entities ABN 90 090 996 455

Auditor's Independence Declaration

To the Directors of Hansen Technologies Ltd.

In relation to the half-year independent auditor's review for the six months to 31 December 2007, to the best of my knowledge and belief there have been:

  • (i) No contraventions of the auditor independence requirements of the Corporations Act 2001

  • (ii) No contraventions of any applicable code of professional conduct

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D B RANKIN 22 February 2008 PITCHER PARTNERS Melbourne

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Hansen Technologies Ltd and Controlled Entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities

Condensed Consolidated Income Statement

For the Half Year Ended 31 December 2007

Note
Revenue from rendering of services
Other revenues
Total revenue
Employee expenses
Depreciation and amortisation expenses
Impairment of non-current assets
Finance costs
Operating lease rental expenses
Contractor and consultant expenses
Software licence expenses
Hardware and software expenses
Transportation expenses
Travel expenses
Data communication expenses
Legal, settlement and liquidation costs
Other expenses
Profit before income tax
Income tax (expense) benefit
Profit after income tax
Comprising:
Profit from continuing operations
Profit from discontinued operations
3
Profit for the half-year attributable to members of the
parent
Basic earnings - cents per share
Diluted earnings - cents per share
Half-year to Dec Half-year to Dec
**2007 ** 2006
$'000 $'000
22,084
9,817
24,361
825
**31,901 ** 25,186
(10,229)
(2,034)
(38)
(12)
(1,207)
(863)
(100)
(1,374)
(55)
(411)
(441)
(109)
(1,458)
(13,080)
(2,645)
-
255
(1,663)
(657)
(131)
(2,440)
(87)
(728)
(1,611)
(112)
(1,669)
(18,331) (24,568)
13,570
(1,403)
618
174
12,167 792
12,003
164
550
242
12,167 792
8.1 0.5
8.1 0.5

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Hansen Technologies Ltd and Controlled Entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities

Condensed Consolidated Balance Sheet As at 31 December 2007

Current Assets
Cash and cash equivalents
Trade receivables
Other current assets
Total Current Assets
Non-Current Assets
Receivables
Plant and equipment
Intangible assets
Deferred tax assets
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Short-term borrowings
Current tax payable
Short-term provisions
Other current liabilities
Total Current Liabilities
Non-Current Liabilities
Long-term borrowings
Deferred tax liabilities
Long-term provisions
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Share capital
Foreign currency translation reserve
Options granted reserve
Retained earnings (accumulated losses)
Total Equity
Consolidated as at Consolidated as at
**Dec-07 ** **Jun-07 **
$'000 $'000
20,183
6,621
1,492
11,958
8,422
1,441
28,296 21,821
91
2,795
20,405
-
153
4,182
21,224
1,597
**23,291 ** 27,156
**51,587 ** 48,977
2,862
-
993
3,022
1,077
4,866
320
6
3,879
3,115
**7,954 ** 12,186
-
627
188
61
-
504
815 565
8,769 **12,751 **
42,818 36,226
50,507
(462)
127
(7,354)
50,048
(448)
117
(13,491)
42,818 36,226

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Hansen Technologies Ltd and Controlled Entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities

Condensed Consolidated Statement of Changes in Equity For the Half Year Ended 31 December 2007

Total Equity at the Beginning of the Half-Year
Exchange differences on translation of foreign operations
Net income (loss) recognised directly in equity
Profit for the half-year
Total recognised income and expense for the period
Transactions with equity holders in their capacity as equity
holders:
Options exercised
Options granted
Capital issued under dividend reinvestment plan
Dividends paid
Total Equity at the End of the Half-Year
Attributable to:
Members of the parent
Half-year to Dec Half-year to Dec
**2007 ** 2006
$'000 $'000
36,226 32,826
(14) 11
(14)
**12,167 **
11
**792 **
12,153 803
130
10
327
(6,028)
-
22
-
-
(5,561) 22
42,818 33,651
42,818 33,651

-13-

Hansen Technologies Ltd and Controlled Entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Statement of Cash Flows

For the Half Year Ended 31 December 2007

Note
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Interest received
Borrowing costs
Income tax paid
Net cash provided by operating activities
Cash flows from investing activities
Proceeds from sale of plant and equipment
Proceeds from sale of intellectual property
Net proceeds from sale of subsidiary
1 (e)
Payment for plant and equipment
Payment for capitalised research and development
Net cash provided by (used in) investing activities
Cash flows from financing activities
Proceeds from options exercised
Dividends paid net of dividend re-investment
Finance and hire purchase lease payments
Net cash used in financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of half-year
Cash and cash equivalents at end of the half-year
Half-year to Dec Half-year to Dec
**2007 ** 2006
$'000 $'000
22,035
(16,302)
668
(12)
-
25,006
(24,943)
176
256
-
6,389 495
-
-
9,942
(1,212)
(944)
3
1,333
-
(862)
(1,009)
7,786 (535)
132
(5,700)
(382)
-
-
(437)
(5,950) (437)
8,225
11,958
(477)
6,895
20,183 6,418

-14-

Hansen Technologies Ltd and Controlled Entities ABN 90 090 996 455

Hansen Technologies Ltd and Controlled Entities Notes to the Half-Year Financial Statements 31 December 2007

1 Basis of Preparation of the Half-Year Financial Report

This half-year financial report does not include all the notes of the type usually included in an annual financial report.

It is recommended that this financial report be read in conjunction with the financial report for the year ended 30 June 2007 and any public announcements made by Hansen Technologies Limited during the half-year in accordance with any continuous disclosure obligations arising under the Corporations Act 2001.

(a) Basis of preparation of the half-year financial report

This general purpose half year financial report has been prepared in accordance with Accounting Standard AASB 134 ‘Interim Financial Reporting’ and the Corporations Act 2001 .

(b) Summary of significant accounting policies

The half-year consolidated financial report has been prepared using the same accounting policies as used in the annual financial report for the year ended 30 June 2007.

(c) 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 Hansen Technologies Ltd controlled from time to time during the year and at balance date.

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.

(d) Rounding amounts

The company is of a kind referred to in ASIC Class Order CO 98/0100 and in accordance with that Class Order, amounts in the financial statements have been rounded off to the nearest thousand dollars, or in certain cases, to the nearest dollar.

(e) Discontinued operations

On 31 August 2007 the Company sold its NSW facilities management subsidiary Hansen Professional Services Pty Ltd (HPS). The income statement for the current period reflects this sale by disclosing the 2 months trading results of HPS as a separate line under the description profit/(loss) from discontinued operations. Note 3 details the breakdown of HPS's trading results and its impact on cash flows for the current period.

2 Subsequent Events

The Directors have declared an unfranked interim dividend for the current fiscal year of 4 cents per share, 3 cents of which was paid in December 2007. The remaining 1 cent per share will be paid in March 2008.

There were no other material events subsequent to the period ending 31 December 2007 that have significantly affected or may significantly affect the consolidated entity.

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Hansen Technologies Ltd and Controlled Entities ABN 90 090 996 455

3 Changes in the Composition of the Entity

On 30 August 2007 the Company announced the sale of its NSW facilities management subsidiary Hansen Professional Services Pty Ltd. The subsidiary was sold effective 31 August 2007 and is reported in this financial report as a discontinued operation. Accordingly the results to 31 December 2007 only include 2 months of trading for HPS. Also note the sale of HPS has utilised capital tax losses not previously taken to account.

Financial information relating to the discontinued operation for the period to the date of the disposal is set out below. Further information is set out in Note 6 - Segment Reporting.

Financial Performance and Cash Flow Information
Revenue
Expenses
Profit before income tax
Income tax expense
Profit after income tax of discontinued operations
Half-year to Dec Half-year to Dec
**2007 ** 2006
$'000 $'000
2,809
2,574
9,501
9,152
235
(71)
349
(107)
164 242
-
8,786
1,333
-
4
Significant Items
Profit for the period has been determined after the following
significant items:
Profit on sale of intellectual property
Profit on sale of business
Total significant items
8,786 1,333
1,505
4,524
-
-
5
Dividends
Dividends provided for or paid during the half-year
- 1 cent final dividend paid 8 October 2007
- 3 cent interim dividend paid 17 December 2007
Number of ordinary shares on issue
6,028 -
151,300,826 149,421,445

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Hansen Technologies Ltd and Controlled Entities ABN 90 090 996 455

6 Segment Reporting

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, interest-bearing loans, borrowings and expenses, and corporate assets and expenses.

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, call centre services, telehousing and business continuity support.

Other : Represents software and service provision in the areas of call centre productivity software, superannuation administration and asset management.

Discontinued Operations : Represents the fact that effective 31 August 2007 the Company sold its NSW facilities management subsidiary Hansen Professional Services Pty Ltd.

Segment revenue
Billing
IT Outsourcing
Other
Discontinued operations
Net revenue on sale of subsidiary
Unallocated revenue
Total revenue
Segment results
Billing
IT Outsourcing
Other
Discontinued operations
Net profit on sale of subsidiary
Unallocated revenue less unallocated expenses
Profit before income tax
Half-year to Dec Half-year to Dec
**2007 ** 2006
$'000 $'000
14,345
2,751
2,179
2,809
10,378
1,362
3,120
9,501
22,084
9,140
677
24,361
-
825
31,901 25,186
4,222
1,201
898
235
8,786
(1,772)
(363)
388
1,420
349
-
(1,176)
13,570 618

7 Contingent Liabilities

There have been no changes in the contingent liability position since 30 June 2007.

-17-

Hansen Technologies Ltd and Controlled Entities ABN 90 090 996 455

Hansen Technologies Ltd Directors Declaration

The directors declare that the financial statements and notes set out on pages 5 to 11 in accordance with the Corporations Act 2001 :

(a) Comply with Accounting Standard AASB 134 “Interim Financial Reporting” and the Corporations Regulations 2001 , and

(b) Give a true and fair view of the financial position of the consolidated entity as at 31 December 2007 and of its performance as represented by the results of its operations and its cash flows, for the half-year ended on that date.

In the directors’ opinion there are reasonable grounds to believe that Hansen Technologies Ltd will be able to pay its debts as and when they become due and payable.

This declaration is made in accordance with a resolution of the directors.

Dated at Melbourne this 22[nd] day of February 2008.

Signed in accordance with a resolution of the Directors:

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==> picture [122 x 71] intentionally omitted <==

Kenneth Hansen Director

Andrew Hansen Director

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Hansen Technologies Ltd and Controlled Entities ABN 90 090 996 455

INDEPENDENT AUDITOR'S REVIEW REPORT

TO THE MEMBERS OF HANSEN TECHNOLOGIES LTD

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Hansen Technologies Ltd. The half-year financial report comprises the condensed consolidated balance sheet as at 31 December 2007, and the condensed consolidated income statement, condensed consolidated statement of changes in equity and condensed consolidated cash flow statement for the half-year ended on that date, for the company and the entities it controlled at the half-year or from time to time during the period, together with a statement of accounting policies, other selected explanatory notes and the directors' declaration.

Directors’ Responsibility for the Half-Year Financial Report

The directors of Hansen Technologies Ltd are responsible for the preparation and fair presentation of the half-year financial report in accordance with Australian Accounting Standards (including the Australian Accounting Interpretations) and the Corporations Act 2001 . This responsibility includes designing, implementing and maintaining internal control relevant to the preparation and fair presentation of the half-year financial report that is free from material misstatement, whether due to fraud or error; selecting and applying appropriate accounting policies; and making accounting estimates that are reasonable in the circumstances.

Auditor’s Responsibility

Our responsibility is to express a conclusion on the half-year financial report based on our review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of an Interim Financial Report Performed by the Independent Auditor of the Entity , in order to state whether, on the basis of the procedures described, we have become aware of any matter that makes us believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a true and fair view of the consolidated entity's financial position as at 31 December 2007 and its performance for the half-year ended on that date; and complying with Accounting Standard 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Hansen Technologies Ltd, ASRE 2410 requires that we comply with the ethical requirements relevant to the audit of the annual financial report.

A review of a half-year financial report consists of making enquiries, primarily of persons responsible for financial and accounting matters, and applying analytical and other review procedures. A review is substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and consequently does not enable us to obtain assurance that we would become aware of all significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review, we have complied with the independence requirements of the Corporations Act 2001 .

Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believe that the half-year financial report of Hansen Technologies Ltd is not in accordance with the Corporations Act 2001 including:

  • (a) giving a true and fair view of the consolidated entity's financial position as at 31 December 2007

  • and of its performance for the half-year ended on that date; and

  • (b) complying with Accounting Standard AASB 134 Interim Financial Reporting and Corporations

  • Regulations 2001.

==> picture [114 x 52] intentionally omitted <==

D B RANKIN 22 February 2008 PITCHER PARTNERS Melbourne

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