JCURVE SOLUTIONS LTD — Annual Report 2008

Aug 28, 2008

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Companies Announcement Office Australian Securities Exchange Exchange Centre Level 4, 20 Bridge Street Sydney NSW 2000

Stratatel Limited ABN 63 088 257 729

Level 1, 1254 Hay Street West Perth WA 6005 PO Box 1673 West Perth WA 6872 [T] +61 8 9212 4000 [F] +61 8 9212 4001 [W] stratatel.com.au

29[th] August 2008

STRATATEL INCREASES PROFIT BEFORE TAX BY 160% - DECLARES FURTHER DIVIDEND!

Dear Sir/Madam,

Preliminary Final Report

In accordance with ASX Listing Rule 4.3A and the requirements of the Corporations Act 2001 we hereby present Stratatel Limited‟s Preliminary Final Report for the period ended 30 June 2008.

Reporting Period

The operating results for the year to 30 June 2008 are shown with comparisons to the previous corresponding period, being the twelve months to 30 June 2007.

Results For Announcement To The Market

	2008 $‟000s	2007 $‟000s	Percentage change over previous corresponding period
Revenue from ordinary activities	6,225	3,291	89.2
Profit for theperiod before tax	1,035	398	160.1
Netprofit after tax	1,381	689	100.4

Dividends

On 8[th] April 2008 the company‟s maiden unfranked interim dividend of 0.25 cents per share was paid to shareholders.

As a result of the company‟s continued improvement in performance the Board of Directors is pleased to announce a final unfranked dividend for the 2007-08 financial year of 0.25 cents per share. The record date for the Dividend is Wednesday 1[st] October 2008, with payment expected to be made on Friday 17[th] October 2008.

Net Tangible Assets / Earnings Per Share

Net Tangible Assets / Earnings Per Share
	Current period	Previous corresponding period
Net tangible assets per ordinary share	$0.007	$0.014
Basic earnings per ordinary share	$0.0162	$0.0087

Independent Audit Report

This Preliminary Final Report is based on accounts which are being audited and which are not the subject of qualification or dispute.

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Stratatel Limited Appendix 4E Preliminary Final Report

Accounting Policies, Estimation Methods and Measurements

The accounting policies, estimation methods and measurement bases used in the Appendix 4E are the same as those used in the previous annual report and half-year report.

Explanation of Result

Total revenue generated by the Company for the twelve months to 30 June 08 increased 89% to $6.2m over the previous corresponding period (2007: $3.3m) reflecting continuing sales momentum from the Company‟s software solutions.

Diagram 1: Graph showing growth in revenue since 2003 by product suite

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Important Dates:

1 May 07 – acquisition of the assets of Softlog Systems Pty Ltd, including the Softlog.Enterprise[TM] software suite

1 May 08 – acquisition of the assets of Phoneware Communications Systems Pty Ltd including the CADS suite

Please refer to the Directors‟ Report in the Annual Accounts and Review of Operations below for additional explanation of the financial results.

Review of Operations

Overview

The 2007-08 year resulted in the Company meeting profit expectations and generate over $1m in profit before tax, a 160% increase over the previous financial year (2007: $389k).

This result was achieved through broadly based sales growth and was assisted late in the financial year through the acquisition of the assets of Phoneware Communications Systems Pty Ltd in May 2008, including the CADS suite, a market leading suite of call accounting and telecommunications management applications.

Softlog Systems Pty Ltd, acquired in May 2007, added $2.3m in revenue in the 2007-08 financial year and made a contribution to earnings.

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Stratatel Limited Appendix 4E Preliminary Final Report

The Softlog.Enterprise[TM] product suite is focused on cost recovery for the legal and accounting markets whilst further research and development has been conducted to provide a disbursement expense management solution for the corporate market.

The FleetManager[®] product suite manages all asset and expense management solutions developed or acquired including MobileFleet[®] , Infratel[®] , AutoManager, Pool Car Manager, OnTrac and importantly the modular application FleetManager, which provides users with a single web-based application to manage a range of assets and the related expenditure.

Significant research and development effort has been conducted in identifying new and innovative software solutions to maintain Stratatel‟s market leading position, a number of which will be announced to the market in the coming months.

The Company’s Software Solutions

FleetManager[®]

The FleetManager product suite incorporates the FleetManager[®] system, the company‟s „best of breed‟ web-based asset and expenditure management solution, harnessing the functionality from the existing MobileFleet[®] system and integrating these with a more powerful and flexible database structure allowing for the addition of new asset classes such as credit cards, fuel cards, taxi card expenses etc.

Whilst the complete FleetManager[®] solution remains in development the mobiles, fixed line and taxi card management modules were completed and deployed in the 2007-08 financial year, earning nearly $1.17m revenue (2007: $850k)

The FleetManager[®] Value Proposition

FleetManager[®] is designed and built with a ‘One System, One Password, For Life’ ™ approach, enabling an organisation or government agency to seamlessly manage all of their assets and related expenditure in one easy to access system, dramatically reducing administrative and processing costs and providing corporate governance visibility on how these assets are used.

Phoneware

On the 1[st] May 2008 the acquisition of the business and assets of Phoneware Communication Systems Pty Ltd, a company specialising in the provision of Call Accounting and Directory Services (CADS) software, was completed.

Phoneware‟s CADS[® ] suite of call accounting software solutions have been successfully used in the Australian market for over 15 years, has solid recurrent revenue, including revenue derived from major Channel Partners, and compliments Stratatel‟s objective in the marketing and provision of asset and expense management solutions. Stratatel took full control of Phoneware on completion and will provide a strong platform for future growth through the continued support of existing solutions and the development of additional features and functionality, adding to the Stratatel product range.

In the two months since acquisition to 30 June 2008 Phoneware provided revenue of $553k.

Softlog.Enterprise[TM]

The acquired Softlog business is one of Australia‟s most experienced software developers of cost recovery solutions for the legal and accounting markets.

Since 1986, Softlog has been designing and building their extensive suite of integrated expense management and cost recovery solutions. This commitment to being a market leader is best demonstrated in the current Softlog.Enterprise[TM] suite of fully integrated industry-standard modules that eliminate the need for “proprietary” or “dedicated” systems. Instead, the multi-modular Softlog.Enterprise[TM] allows firms to take charge of their own activities and apply the power of the very latest industry-standard workstation technology for seamless, automated cost recovery.

There has been a continued development of the softlog.onboard[®] application, an embedded software solution that resides directly on the Multi-Function Device (MFD) (photocopier / fax / scanner) used in many professional firms.

It is this kind of innovation that has enabled Softlog to achieve international success, with new customers in several countries around the world also enjoying the benefits of Softlog‟s expense management and cost recovery solution.

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Stratatel Limited Appendix 4E Preliminary Final Report

The Softlog Value Proposition

Softlog.Enterprise[TM] and the innovative and unique softlog.onboard[®] solutions provide Softlog clients with the tools to recover up to 80% of their disbursement expenses, providing a rapid return on investment.

Softlog.Enterprise[TM] , like FleetManager[®] is a modular software application that can be tailored to accurately and simply assist clients recover disbursements using one or more of the following modules: Copy, Fax, Phone, Print, Email, Scan, Network and Sundries.

Business Structure

To efficiently and effectively support the FleetManager, Softlog and Phoneware businesses the company has divided the business into divisions to better support current and future requirements, also providing for future growth. An outline of the Stratatel structure can be seen in the diagram below.

The benefit of this structure is that new businesses that are acquired can be integrated into the organisation quickly and with a minimum of fuss. Economies of scale become simpler to identify and action and resource requirements become more identifiable and can be more rapidly deployed.

Diagram 2: The new structure of Stratatel showing the main business divisions

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Outlook for the Company

In the 2008-09 financial year the company expects sales of its fleet management and cost recovery software solutions to continue to grow and underlying recurrent revenue to rise. Stratatel continues to investigate further acquisitions opportunities.

Mike Fairclough Managing Director Stratatel Limited	29 August 2008
	Date

About Stratatel

Stratatel Limited is a public company listed on the Australian Securities Exchange (ASX: STE). The business of Stratatel is to provide specialist independent asset and expense management and cost recovery software solutions to the corporate and government sectors.

To this end Stratatel has developed unique and proprietary management systems that are designed to effectively and efficiently manage the cost and administration of assets and related expenditure.

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Stratatel Limited Appendix 4E Preliminary Final Report

CONSOLIDATED INCOME STATEMENT FOR THE YEAR ENDED 30 JUNE 2008

		Consolidated	Consolidated	Parent	Parent
	Notes	2008	2007	2008	2007
		$	$	$	$
Revenue	1	6,224,656	3,291,304	2,857,116	2,753,023
Cost of goods sold		(457,299)	(171,003)	(168,391)	(136,796)
Employee benefits expense		(2,881,159)	(1,816,603)	(1,107,688)	(1,448,327)
Other employee related expense		(570,728)	(261,956)	(292,772)	(220,694)
Communications expense		(128,507)	(75,812)	(69,603)	(62,670)
Advertising and marketing		(8,324)	(3,320)	(6,249)	(3,320)
Professional fees		(389,858)	(240,750)	(248,388)	(228,005)
Occupation expense		(382,915)	(194,270)	(206,637)	(162,316)
Listing expense		(37,492)	(22,048)	(32,023)	(21,453)
Depreciation and amortisation expense		(162,397)	(51,222)	(135,192)	(43,128)
Finance costs		(3,606)	(4,168)	(3,069)	(3,982)
Other expenses		(167,519)	(52,597)	(104,686)	(49,522)
Profit before income tax		1,034,852	397,555	482,418	372,810
Income tax benefit		345,933	291,747	346,744	291,747
Profit after tax		1,380,785	689,302	829,162	664,557

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Stratatel Limited Appendix 4E Preliminary Final Report

CONSOLIDATED BALANCE SHEET AS AT 30 JUNE 2008

Assets Current Assets Cash and cash equivalents Trade and other receivables Inventory Other financial assets Total Current Assets Non-Current Assets Property, plant and equipment Development Intangible assets Investments in subsidiaries Other receivables Investments Deferred tax asset Total Non-Current Assets Total Assets Liabilities Current Liabilities Trade and other payables Total Current Liabilities Non-Current Liabilities Provisions Other payables Total Non-Current Liabilities Total Liabilities Net Assets Equity Issued capital Reserves Accumulated losses Total Equity	Consolidated Consolidated Parent Parent 2008 2007 2008 2007 $ $ $ $
	1,066,455 1,195,882 896,487 1,112,714 1,860,687 689,546 574,852 505,269 46,928 41,746 - - 125,059 62,862 52,954 20,104
	3,099,129 1,990,036 1,524,293 1,638,087
	206,755 230,695 100,822 106,579 1,558,724 1,055,218 1,260,419 1,012,297 4,123,785 997,799 54,171 54,171 - - 170,204 170,204 38,061 48,320 2,731,796 390,776 21,917 21,917 21,917 21,917 439,036 138,196 357,857 138,196
	6,388,278 2,492,145 4,697,186 1,894,140
	9,487,407 4,482,181 6,221,479 3,532,227
	2,912,658 683,919 496,609 379,429
	2,912,658 683,919 496,609 379,429
	79,501 28,568 5,990 7,849 200,000 600,000 - -
	479,501 628,568 5,990 7,849
	3,192,159 1,312,487 502,599 387,278
	6,295,248 3,169,694 5,718,880 3,144,949
	7,918,832 5,846,808 7,918,832 5,846,808 104,343 29,891 104,343 29,891 (1,727,927) (2,707,005) (2,304,295) (2,731,750)
	6,295,248 3,169,694 5,718,880 3,144,949

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Stratatel Limited Appendix 4E Preliminary Final Report

CONSOLIDATED CASH FLOW STATEMENT FOR THE YEAR ENDED 30 JUNE 2008

Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Interest paid Income tax received Net cash provided by/(used in) operating activities Cash flows from investing activities Purchase of businesses, net of cash acquired Investment in subsidiaries Loans to subsidiaries Purchase of non-current assets Payment for other investments Net cash used in investing activities Cash flows from financing activities Proceeds from issue of shares Dividends paid Share issue costs paid Net cash provided by financing activities Net decrease in cash and cash equivalents Cash and cash equivalents at 1 July 2007 Cash and cash equivalents at 30 June 2008	Consolidated Consolidated Parent Parent 2008 2007 2008 2007 Inflows/ (Outflows) $ Inflows/ (Outflows) $ Inflows / (Outflows) $ Inflows / (Outflows) $
	4,925,226 3,268,655 2,661,985 2,758,883 (3,762,260) (2,914,869) (2,020,864) (2,561,299) 71,628 72,729 69,102 72,157 (3,606) (4,168) (3,069) (3,982) 45,093 153,551 127,083 153,551
	1,276,081 575,898 834,237 419,310
	(1,763,381) (467,147) - - - - - (170,204) - - (2,314,183) (342,456) (78,433) (54,210) (39,771) (52,374) (1,205,746) (407,949) (338,552) (290,852)
	(3,047,560) (929,306) (2,692,506) (855,886)
	2,165,000 - 2,165,000 - (389,708) - (389,708) - (133,250) - (133,250) -
	1,642,042 - 1,642,042 -
	(129,437) (353,408) (216,227) (436,574) 1,195,882 1,549,290 1,112,714 1,549,290
	1,066,445 1,195,882 896,487 1,112,714

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Stratatel Limited Appendix 4E Preliminary Final Report

CONSOLIDATED STATEMENT OF CHANGES IN EQUITY FOR THE YEAR ENDED 30 JUNE 2008

Consolidated As at 1 July 2006 Profit/ (loss) for the period Income tax benefit Shares issued Balance at 30 June 2007 As at 1 July 2007 Profit/ (loss) for the period Income tax benefit Dividends declared Share issue costs Shares issued Balance at 30 June 2008 Parent As at 1 July 2006 Profit/ (loss) for the period Income tax benefit Shares issued Balance at 30 June 2007 As at 1 July 2007 Profit/ (loss) for the period Income tax benefit Dividends declared Share issue costs Shares issued Balance at 30 June 2008	Ordinary Shares Accumulated Losses Equity Benefits Reserve Total $ $ $ $
	5,758,488 (3,396,307) - 2,362,181 - 397,555 29,891 427,446 - 291,747 - 291,747
	5,758,488 (2,707,008) 29,891 3,081,374 88,320 - - 88,320
	5,846,808 (2,707,005) 29,891 3,169,694
	5,846,808 (2,707,008) 29,891 3,169,691 - 1,034,852 74,452 1,109,304 - 345,933 - 345,933 - (401,704) - (401,704)
	5,846,808 (1,727,927) 104,343 4,223,224 (129,824) - - (129,824) 2,201,848 - - 2,201,848
	7,918,832 (1,727,927) 104,343 6,295,248
	Ordinary Shares Accumulated Losses Equity Benefits Reserve Total $ $ $ $
	5,758,488 (3,396,307) - 2,362,181 - 372,810 29,891 402,701 - 291,747 - 291,747
	5,846,808 (2,731,750) 29,891 3,056,629 88,320 - - 88,320
	5,846,808 (2,731,750) 29,891 3,144,949
	5,846,808 (2,731,753) 29,891 3,144,946 - 482,418 74,452 556,870 - 346,744 - 346,744 - (401,704) - (401,704)
	5,846,808 (2,304,295) 104,343 3,646,856 (129,824) - - (129,824) 2,201,848 - - 2,201,848
	7,918,832 (2,304,295) 104,343 5,718,880

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Stratatel Limited Appendix 4E Preliminary Final Report

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2008

NOTE 1: REVENUES AND EXPENSES

(a) Revenue Operating activities Consultancy income MobileFleet®income FleetManager®– mobiles FleetManager®– other modules Infratel income PoolCarManager income Development income OnTrac income Softlog sales income Softlog maintenance income Phoneware installation income Phoneware CADS income Phoneware vendor provided income Phoneware Octel income Interest income Non-Operating activities Other income Rebates & refunds (b) Expenses Interest expense Depreciation of non-current assets Operating lease rental expense: minimum lease payments	Consolidated Consolidated Parent Parent 2008 2007 2008 2007 $ $ $ $
	13,007 44,048 5,726 44,048 1,438,573 1,492,523 1,438,573 1,492,523 1,171,707 825,523 1,139,022 825,523 - 23,456 - 23,456 76,033 97,474 76,033 97,474 52,915 97,936 52,915 97,936 90,680 91,830 75,745 91,830 446,538 293,667 - - 1,459,116 205,022 - - 858,190 35,031 - - 20,390 - - - 427,523 - - - 88,679 - - - 9,477 - - - 71,628 72,729 69,102 72,157 200 12,065 - 8,076 - - - -
	6,224,656 3,291,304 2,857,116 2,753,023
	3,606 4,168 3,069 3,982 71,967 51,222 44,762 43,128 287,040 149,285 155,179 124,410

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Stratatel Limited Appendix 4E Preliminary Final Report

NOTES TO THE FINANCIAL STATEMENTS FOR THE YEAR ENDED 30 JUNE 2008

NOTE 2: DIVIDENDS

OTE 2: DIVIDENDS
Dividends per security
		Date dividend	Amount per
		is payable	security
Final dividend	current year	21/10/08	0.25
	previous year	15/10/08	0.25
Interim dividend	current year	08/04/08	0.25
	previous year	n/a	n/a

NOTE 3: DIVIDEND REINVESTMENT PLAN

In March 2008 the company announced a Dividend Reinvestment Plan (DRP).

Shares issued to participants under the Stratatel DRP will be allotted at a price which is equal to 95% of the volume weighted average market price per share of all Stratatel shares traded on the ASX during the 10 day period following the record date (subject to extension if there is a trading halt or suspension of quotation), or if no shares are traded in that period the price will be determined by the Directors in their absolute discretion as representing the fair market value of the shares. The last date for receipt of election notices for the dividend is 1[st] October 2008.

NOTE 4: SEGMENT REPORTING

Segment Information

The Group operates predominantly in one business and geographical segment being the software development industry throughout Australia.

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Stratatel Limited Appendix 4E Preliminary Final Report

NOTE 5: CONTROL GAINED OVER ENTITIES

Effective 1st May 2008, a wholly owned subsidiary of Stratatel Ltd, Airchoice.com Pty Ltd, acquired the business and assets of Phoneware Communication Systems Pty Ltd, a software development and support company specialising in the provision of Call Accounting and Directory Services (CADS) software.

	Consolidated	Consolidated	Parent		Parent
	2008	2007	2008		2007
Details of the acquisition are as follows:	$	$	$		$
Consideration
Cash and cash equivalents	1,800,000	-		-		-
Equity (deferred script)	300,000	-		-		-
Deferred consideration	400,000	-		-		-
Acquisition adjustments	(436,619)	-		-		-
Amount paid	2,063,381	-		-		-
Fair value of net assets acquired
Current assets
Cash and cash equivalents	-	-		-		-
Receivables	79,534	-		-		-
Prepayments	41,956	-		-		-
Current liabilities
Loans	(46,754)	-		-		-
Unearned Income	(558,109)	-		-		-
Non-current liabilities
Provisions	(71,463)	-		-		-
Net assets acquired	(554,836)	-		-		-
Goodwill arising on acquisition	2,618,217	-		-		-
	2,063,381	-		-		-
Net cash outflow on acquisition
Cash and cash equivalents consideration	1,363,381	-		-		-
Net cash outflow	1,363,381	-		-		-

The assets and liabilities arising from the acquisition are recognised at fair value, which are equal to their carrying value at acquisition date.

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