HANSEN TECHNOLOGIES LIMITED — Interim / Quarterly Report 2009

Feb 26, 2009

Hansen Technologies Limited and its 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 2008

This half-year financial report is to be read in conjunction with the financial report for the year ended 30 June 2008.

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

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

31 DECEMBER 2008

TABLE OF CONTENTS
	Page
Directors' Report	3
Auditor’s Independence Declaration	5
Financial Report for the half year ended 31 December 2008
Condensed Consolidated Income Statement	6
Condensed Consolidated Balance Sheet	7
Condensed Consolidated Statement of Changes in Equity	8
Condensed Consolidated Statement of Cash Flows	9
Notes to the Financial Statements	10-13
Directors' Declaration	14
Independent Auditor's Review Report	15

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Hansen Technologies Limited and its 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 2008 and independent review report thereon. This financial report has been prepared in accordance with Australian equivalents of International Financial Reporting Standards.

Directors Names

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

Name

Mr Kenneth Hansen Mr Andrew Hansen Mr Bruce Adams Mr David Osborne Mr Phillip James

Period of Directorship

Chairman since 2000 Managing Director since 2000 Director since 2000 Director since 2006 Director since October 2008

The directors have been in office since the start of the financial period to the date of this report unless otherwise stated.

Review of Operations

The consolidated profit of the group for the half-year after providing for income tax amounted to $3,459,494

We are pleased to report a record half year operating performance for the 2008/9 fiscal year with the financial highlights including:

• Revenue of $23.946 million, a 23% increase over the previous corresponding period (pcp),

• EBITDA increased to $6.423 million, a 5% increase on the pcp,

• Net Profit (from continuing operations) increased 7% over the pcp to $3.459 million,

• Total liquid assets of $27 million, and

• No third party debt.

In the current uncertain economic climate it is pleasing to report the continuation of a strong performance for our business.

Remaining debt free and cashed up in these difficult times positions Hansen extremely well to not only manage and readily fund our business growth, but to also prudently explore acquisition opportunities as they arise.

With the purchase of the Peace Software business in October 2008 we have delivered on our objective of growth through acquisition. The integration of the Peace Software business has so far proceeded according to plan. Since acquisition the business has been profitable.

We have substantially increased our Group’s presence on the world stage. Our combined Group is now positioned as the largest independent utility “meter to cash” software solution provider.

In the current uncertain global market it is prudent to anticipate a slow down in consumer spending. We are cautiously optimistic we will maintain momentum into the second half.

We have declared a fully franked interim dividend of 2 cents per share to be paid on 26 March 2009 with a Record Date of 12 March 2009.

Significant Changes in the State of Affairs

As notified to the Australian Securities Exchange (ASX), Hansen Technologies Ltd acquired 100% of the Peace Software business on 17 October 2008.

The Peace Software utility customer information system business is complimentary to Hansen's existing utility billing business. The acquisition of the Peace Software business should

o increase Hansen's revenues by approximately 50%,

o increase Hansen's installed utilities billing customer base in Australia, o represent a strong foundation market presence in the USA, o add an additional utility billing customer in the UK,

o offer an extended product development capability in NZ,

o expand Hansen's proprietary utility billing solution suite of products for the benefit of the broad customer base, and

o represents a combined 300 staff specifically committed to providing solutions to the utilities industries.

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

Auditor's Declaration

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

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 27th day of February 2009.

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Hansen Technologies Limited and its 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 review for the six months to 31 December 2008, to the best of my knowledge and belief there have been:

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

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(ii) No contraventions of any applicable code of professional conduct
PITCHER PARTNERS
Melbourne
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S SCHONBERG 27 February 2009

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

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Income Statement For the Half Year Ended 31 December 2008

Revenue from ongoing operations 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 costs Other expenses Total expenses Profit before income tax Income tax expense Profit after income tax from ongoing operations Profit from discontinued operations 6(b) Profit on sale of business Profit after income tax from discontinued operations Profit for the half-year attributable to members of the parent Basic earnings (cents) per share for ongoing operations Basic earnings (cents) per share for discontinued operations Total basic earnings (cents) per share Diluted earnings (cents) per share for ongoing operations Diluted earnings (cents) per share for discontinued operations Total diluted earnings (cents) per share	Half-year to Dec	Half-year to Dec
	2008	2007
	$'000	$'000
	23,946 1,776	19,427 899
	25,722	20,326
	(12,736) (2,024) 0 (0) (1,127) (606) (68) (1,696) (61) (645) (64) (86) (1,583)	(8,964) (1,882) (38) (12) (855) (805) (100) (1,067) (41) (397) (134) (108) (1,354)
	(20,696)	(15,757)
	5,026 (1,567)	4,569 (1,332)
	3,459	3,237
	0 0	164 8,766
	0	8,930
	3,459	12,167
	2.3 0.0	2.2 5.9
	2.3 2.3 0.0	8.1 2.2 5.9
	2.3	8.1

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

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Balance Sheet As at 31 December 2008

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Balance Sheet As at 31 December 2008
Current Assets Cash and cash equivalents Trade receivables Other current assets Total Current Assets Non-Current Assets Receivables Plant and equipment Intangible assets Total Non-Current Assets Total Assets Current Liabilities Trade and other payables Current tax payable Short-term provisions Unearned income Total Current Liabilities Non-Current Liabilities 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	Dec-08	Jun-08
	$'000	$'000
	15,675 11,684 1,667	21,871 5,576 967
	29,026	28,414
	32 3,823 29,961	145 3,325 19,823
	33,816	23,293
	62,842	51,707
	3,037 3,480 4,580 5,510	3,403 2,244 3,218 453
	16,607	9,318
	249 1,828	233 170
	2,077	403
	18,684	9,721
	44,158	41,986
	47,980 (318) 152 (3,656)	47,916 (479) 137 (5,588)
	44,158	41,986

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Hansen Technologies Limited and its 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 2008

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Statement of Changes in Equity For the Half Year Ended 31 December 2008
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
	2008	2007
	$'000	$'000
	41,986	36,226
	161	(14)
	161 3,459	(14) 12,167
	3,620	12,153
	0 15 64 (1,527)	130 10 327 (6,028)
	(1,448)	(5,561)
	44,158	42,818
	44,158	42,818

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Hansen Technologies Limited and its 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 2008

Hansen Technologies Ltd and Controlled Entities Condensed Consolidated Statement of Cash Flows For the Half Year Ended 31 December 2008
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 Net proceeds from sale of subsidiary Payment for acquisition of business 6 (a) 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
	2008	2007
	$'000	$'000
	25,126 (20,375) 627 (0) (314)	22,035 (16,302) 668 (12) 0
	5,064	6,389
	0 (8,734) (564) (500)	9,942 0 (1,212) (944)
	(9,798)	7,786
	0 (1,462) 0	132 (5,700) (382)
	(1,462)	(5,950)
	(6,196) 21,871	8,225 11,958
	15,675	20,183

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

Hansen Technologies Ltd and Controlled Entities Notes to the Half-Year Financial Statements 31 December 2008

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 2008 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.

This half-year report was authorised for issue by the directors as at the date of the directors' report.

(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 .

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

(b) Summary of significant accounting policies

The half-year consolidated financial statements have been prepared using the same accounting policies as used in the annual financial statements for the year ended 30 June 2008.

(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 (bar one recently acquired subsidiary with a calendar year reporting period) 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) Acquisition of subsidiary

As notified to the Australian Securities Exchange (ASX), Hansen Technologies Ltd acquired 100% of the Peace Software business on 17 October 2008. Refer to Note 6 for further information.

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

2 Subsequent Events

The Directors have declared a fully franked interim dividend for the current fiscal year of 2 cents per share, to be paid 26 March 2009.

There were no other material events subsequent to the period ending 31 December 2008 that have significantly affected or may significantly affect the consolidated entity.

3 Significant Items

Profit for the period has been determined after the following significant items: Revenue: Profit on sale of business

Total significant items

Half-year to Dec	Half-year to Dec
2008	2007
$'000	$'000
0	8,786
0	8,786

4 Dividends

Dividends provided for or paid during the half-year

• 1 cent final dividend paid 17 October 2008 (8 October 2007) - 3 cent interim dividend paid 17 December 2007

Proposed dividend not recognised at the end of the half-year

Half-year to Dec	Half-year to Dec
2008	2007
$'000	$'000
1,527 0	1,505 4,524
1,527	6,029
3,057	1,513

Number of ordinary shares on issue Movement in ordinary shares on issue Beginning balance Dividend re-investment plan Employee share plan Options exercised Ending balance	2008	2007
	No.	No.
	152,823,541	151,300,826
	151,300,826 1,066,705 361,010 95,000	149,421,445 849,371 350,010 680,000
	152,823,541	151,300,826

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

5 Segment Information

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 and superannuation administration.

Discontinued Operations : Represents the fact that effective 31 August 2007 the Company sold its Sydney 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
	2008	2007
	$'000	$'000
	17,983 3,404 2,559 0	14,345 2,751 2,179 2,809
	23,946 0 1,776	22,084 9,140 677
	25,722	31,901
	4,258 1,502 1,098 0 0 (1,832)	4,222 1,201 898 235 8,766 (1,752)
	5,026	13,570

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

6 Changes in the Composition of the Entity

(a) Business Combination Disclosure

i) The company acquired 100% of the share capital of Peace Software, with the effective date being 17 October 2008.

Consideration Cash Paid Professional Fees Total Cash Paid Shares Issued as Consideration Total Acquisition Cost Net Assets Acquired Assets Cash Trade and other receivables Plant & equipment Total Assets Acquired Liabilities Trade and other payables Borrowings Provisions Total Liabilities Acquired Net Assets Acquired Tradename Customer relationships & patented technology Goodwill Net Intangibles	Half-year to Dec	Half-year to Dec
	2008	2007
	$'000	$'000
	8,317 417	0 0
	8,734 0	0 0
	8,734	0
	Fair Value	Carrying Amount on Acquisition
	$'000	$'000
	1,269 5,401 610	1,269 5,401 937
	7,280 5,633 0 3,906	7,607 5,633 0 2,577
	9,539	8,210
	(2,259)	(603)
	10,993
	717 1,794 8,482
	10,993

ii) Profit of Peace Software included in consolidated profit of the group since the acquisition date of 17 October 2008.

Profit after income tax

Half-year to Dec	Half-year to Dec
2008	2007
$'000	$'000
172	0

iii) Results of combined entity for the period as though the acquisition date for the acquisition of Peace Software occurred at 1 July 2008.

It is impracticable to disclose this fact as Peace Software operated on a calendar year basis and as such we do not have audited figures available to base a reliable projection on.

(b) Discontinued Operation Disclosure

On 31 August 2007 the Company sold its subsidiary Hansen Professional Services Pty Ltd which is reported in this financial report as a discontinued operation.

Financial information relating to the discontinued operation for the period to the date of the disposal is set out below.

Financial Performance Revenue Expenses Profit before income tax Income tax expense Profit after income tax of discontinued operations	Half-year to Dec	Half-year to Dec
	2008	2007
	$'000	$'000
	0 0	2,809 2,574
	0 0	235 (71)
	0	164

7 Contingent Liabilities

There have been no changes in the contingent liability position since 30 June 2008.

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Hansen Technologies Limited and its 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 6 to 13 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 2008 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 27th day of February 2009.

Signed in accordance with a resolution of the Directors:

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Kenneth Hansen Director

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Andrew Hansen Director

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Hansen Technologies Limited and its 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 and the entities it controlled at the half-year or from time to time during the period, which comprises the condensed consolidated balance sheet as at 31 December 2008, 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, 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 establishing 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 Interim and Other Financial Reports 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 2008 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 2008 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.

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PITCHER PARTNERS Melbourne

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S SCHONBERG 27 February 2009

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