JCURVE SOLUTIONS LTD — Interim / Quarterly Report 2009

Feb 26, 2009

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Companies Announcement Office Australian Securities Exchange Limited Exchange Centre Level 4, 20 Bridge Street Sydney NSW 2000 27[th] February 2009

Stratatel Limited ABN 63 088 257 729

Level 4 22 Atchison Street St Leonards NSW 2065

[T] +61 2 9467 9200 [F] +61 2 9467 9201 [W] stratatel.com.au

STRATATEL DOUBLES PROFIT

Asset management and cost reduction specialist, Stratatel, more than doubled pre-tax profit for the half-year to 31 December 2008 on a 51% sales increase.

Results For Announcement To The Market:

Results For Announcement To The Market:
	$’s	Percentage change over previous corresponding period
Revenuefromordinary activities	4,252,210	+51
Profitfromordinary activities before taxattributable tomembers	751,243	+116
Profitfromordinary activities aftertaxattributable tomembers	820,518	+16
Net profitforthe period attributable tomembers	820,518	+16

Dividends:

The Company is pleased to announce a 0.25 cents per share interim unfranked dividend for the half-year period ended 31 December 2008 (previous corresponding period 0.25 cents per share). The record date is Tuesday 24 March 2009 with payment of the dividend expected to be made on 14 April 2009.

The Company remains committed to the payment of regular dividends and to the Company’s Dividend Reinvestment Plan which remains available to Shareholders.

Explanation of Result:

In the first six months of the 2008-9 financial period revenue increased by 51% from over the previous corresponding period ($2.8m to $4.2m) as a result of organic sales growth from the FleetManager and Softlog business units and the addition of the Phoneware business. Earnings Per Share increased to 0.9 cents (pcp 0.88 cents).

At the same time earnings before tax increased from $347k to $751k, 116%. Net profit after tax was $821k.

Operating Cash Inflow of $1.17m, an increase of $786k over the previous corresponding period, supports a significant improvement in the Company’s ongoing activities.

During the period there was a net cash inflow of $101k against a net cash outflow for the previous corresponding period of $381k, an increased inflow of $482k, due to sales growth and sound cash management. The Company remains debt free.

These results are in line with the Company’s expectations and the outlook for the second half of the fiscal year is cautiously optimistic, subject to any further deterioration in the world economy.

The solid performance in revenue and earnings reaffirms the Company’s strategy of building a base of recurrent revenues to underpin stable long term business growth.

The Company continues to actively pursue acquisitions that are earnings per share accretive.

The information contained in the attached half-year financial report should be read in conjunction with the most recent annual financial report.

Mike Fairclough Managing Director

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Stratatel Limited (ABN 63 088 257 729)

Half Year Report 31 December 2008

Stratatel Limited

Contents	Page
Directors’ Report	1
Auditor’s Independence Declaration	2
Condensed Income Statement	3
Condensed Balance Sheet	4
Condensed Statement of Changes in Equity	5
Condensed Cash Flow Statement	6
Notes to the Financial Statements	7
Directors’ Declaration	9
Independent Auditor’s Review Report	10

Stratatel Limited

• 1 -

DIRECTORS’ REPORT

Your directors submit the financial report of the consolidated entity for the half year ended 31 December 2008. In order to comply with the provisions of the Corporations Act 2001, the directors report as follows:

Directors

The names of directors who held office during or since the end of the half year and until the date of this report are as below. Directors were in office for this entire period unless otherwise stated.

Ian Alexander Macliver	Chairman
Michael James Fairclough	Managing Director
Geoffrey Ernest Lambert	Non-Executive Director
Graham Baillie	Non-Executive Director

Review of Operations

• Revenue from ordinary activities increased by 51% or $1.4m, up from $2.8m the previous corresponding period to $4.2m this period;

• Expenses increased by $1.0m (41.8%) the result of increased staffing and occupation expense.

• The solid increase in revenue resulting in profit reaffirms the quality of the Company’s Application Service Provision (ASP), or Software As A Service (SaaS) business model; that of strong long-term recurrent revenue contracts.

Auditor’s Independence Declaration

Section 307C of the Corporations Act 2001 requires our auditors, HLB Mann Judd, to provide the directors of the company with an Independence Declaration in relation to the review of the half-year financial report. This Independence Declaration is set out on page 2 and forms part of this directors’ report for the half-year ended 31 December 2008.

This report is signed in accordance with a resolution of the Board of Directors made pursuant to s.306 (3) of the Corporations Act 2001.

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Mike Fairclough Managing Director

Dated this 27th day of February 2009.

Stratatel Limited

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Auditor’s Independence Declaration

As lead auditor for the review of the financial report of Stratatel Limited for the half-year ended 31 December 2008, I declare that to the best of my knowledge and belief, there have been:

• a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and

• b) no contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Stratatel Limited.

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Perth, Western Australia

27 February 2009

W M CLARK

Partner, HLB Mann Judd

HLB Mann Judd (WA Partnership) ABN 22 193 232 714

Level 2 15 Rheola Street West Perth 6005 PO Box 263 West Perth 6872 Western Australia. Telephone +61 (08) 9481 0977. Fax +61 (08) 9481 3686. Email: hlb@hlbwa.com.au. Website: http://www.hlb.com.au Liability limited by a scheme approved under Professional Standards Legislation

HLB Mann Judd (WA Partnership) is a member of International and the HLB Mann Judd National Association of independent accounting firms

Stratatel Limited

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CONDENSED INCOME STATEMENT

FOR THE HALF YEAR ENDED 31 DECEMBER 2008

Notes Revenue Cost of goods sold Employee benefits expense Other employee related expense Communications expense Advertising & marketing Professional fees Occupation expense Listing expense Depreciation and amortisation Finance costs Other expenses Profit before income tax Income tax benefit Net Profit Basic earnings per share (cents per share) Diluted earnings per share (cents per share)	Consolidated 2008 $ 2007 $ 4,252,210 2,816,522 (285,789) (196,245) (1,862,501) (1,442,917) (348,309) (236,091) (89,011) (69,193) (22,991) - (310,677) (161,297) (271,744) (160,902) (32,999) (22,299) (130,227) (81,559) (4,139) (3,281) (142,580) (95,287)
	751,243 347,451 69,275 357,083
	820,518 704,534
	0.90 0.88 0.90 0.88

The accompanying notes form part of these financial statements

Stratatel Limited

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CONDENSED BALANCE SHEET

AS AT 31 DECEMBER 2008

Notes 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 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 2 Reserves Retained losses Total Equity	Consolidated 31 Dec 2008 $ 30 Jun 2008 $ 1,167,834 1,066,455 1,335,658 1,860,687 56,545 46,928 182,207 125,059
	2,742,244 3,099,129
	241,131 206,755 1,833,191 1,558,724 4,148,751 4,123,785 36,802 38,061 25,493 21,917 623,430 439,036
	6,908,798 6,388,278
	9,651,042 9,487,407
	2,013,640 2,612,856
	2,013,640 2,612,856
	44,107 79,501 200,000 200,000
	244,107 279,501
	2,257,747 2,892,357
	7,393,295 6,595,050
	8,471,611 8,215,208 111,164 107,769 (1,189,480) (1,727,927)
	7,393,295 6,595,050

The accompanying notes form part of these financial statements

Stratatel Limited

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CONDENSED STATEMENT OF CHANGES IN EQUITY

FOR THE HALF YEAR ENDED 31 DECEMBER 2008

Consolidated

Balance as at 1 July 07 Profit before income tax for the half-year Income tax benefit Dividend payment Recognition of equity based payment Balance as at 31 December 2007 Balance as at 1 July 08 Profit before income tax for the half-year Income tax benefit Dividend payment Recognition of equity based payment Shares issued Balance as at 31 December 2008	Issued Capital Accumulated Losses Reserves Total Equity
	$ $ $ $
	5,846,808 (2,707,005) 29,891 3,169,694 - 347,452 - 347,452 - 357,083 - 357,083 - (200,852) - (200,852) - - 29,000 29,000
	5,846,808 (2,203,322) 58,891 3,702,377
	Consolidated Issued Capital Accumulated Losses Reserves Total Equity
	$ $ $ $ 8,215,208 (1,727,927) 107,769 6,595,050 - 751,243 - 751,243 - 69,275 - 69,275 - (282,071) - (282,071) - - 3,395 3,395 256,403 - - 256,403
	8,471,611 (1,189,480) 111,164 7,393,295

The accompanying notes form part of these financial statements

Stratatel Limited

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CONDENSED CASH FLOW STATEMENT

FOR THE HALF YEAR ENDED 31 DECEMBER 2008

Cash flows from operating activities Receipts from customers Payments to suppliers and employees Interest received Finance costs Net cash provided by operating activities Cash flows from investing activities Purchase of property, plant and equipment Purchase of non-current assets Payment for subsidiary, net of cash acquired Net cash used in investing activities Cash flows from financing activities Dividends paid Net cash used in financing activities Net increase/(decrease) in cash held Cash and cash equivalents at 1 July 2008 Cash at 31 December 2008	Consolidated 2008 $ 2007 $ Inflows/(Outflows) 4,926,624 2,644,469 (3,786,374) (2,294,534) 37,259 39,899 (4,139) (3,281)
	1,173,370 386,553
	(74,603) (15,703) (389,433) (363,752) (400,000) (200,000)
	(864,036) (579,455)
	(207,955) (188,075)
	(207,955) (188,075)
	101,379 (380,977) 1,066,455 1,195,882
	1,167,834 814,905

The accompanying notes form part of these financial statements

Stratatel Limited

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2008

NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES

The half-year consolidated financial statements are a general purpose financial report prepared in accordance with the requirements of the Corporations Act 2001, applicable accounting standards including AASB 134 and AASB 136: Interim Financial Reporting, accounting Interpretations and other authoritative pronouncements of the Australian Accounting Standards Board (‘AASB’). Compliance with AASB 134 ensures compliance with IAS 34 ‘Interim Financial Reporting’.

The half-year report has been prepared on a historical cost basis, except for land and buildings, derivative financial instruments and available-for-sale financial assets which are measured at fair value. Cost is based on the fair value of the consideration given in exchange for assets. All amounts are presented in Australian dollars, unless otherwise noted.

It is recommended that this financial report be read in conjunction with the annual financial report for the year ended 30 June 2008 and any public announcements made by Stratatel Limited and its subsidiaries during the half-year in accordance with continuous disclosure requirements arising under the Corporations Act 2001.

The half-year report does not include full disclosures of the type normally included in an annual financial report. Therefore, it cannot be expected to provide as full an understanding of the financial performance, financial position and cash flows of the group as in the full financial report.

For the purpose of preparing the half-year report, the half-year has been treated as a discrete reporting period.

The accounting policies and methods of computation adopted in the preparation of the half-year financial report are consistent with those adopted and disclosed in the company’s 2008 annual financial report for the financial year ended 30 June 2008.

In the half-year ended 31 December 2008, the Group has reviewed all of the new and revised Standards and Interpretations issued by the AASB that are relevant to its operations and effective for annual reporting periods beginning on or after 1 July 2008.

It has been determined by the Group that there is no impact, material or otherwise, of the new and revised Standards and Interpretations on its business and, therefore, no change is necessary to Group accounting policies.

Stratatel Limited

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NOTES TO THE FINANCIAL STATEMENTS FOR THE HALF YEAR ENDED 31 DECEMBER 2008

NOTE 2: ISSUED CAPITAL

NOTE 2: ISSUED CAPITAL Ordinary shares Issued and fully paid Movements in ordinary shares on issue At 1 July 2008 Issued on 15 September 2008 as consideration for acquisition of business assets Issued on 17 October 2008 pursuant to the Stratatel Dividend Reinvestment Plan At 31 December 2008	Consolidated 31 Dec 2008 $ 30 Jun 2008 $ 8,471,611 8,215,208
	No. $ 110,829,380 8,215,208 2,000,000 200,000 841,836 56,403
	113,671,216 8,471,611

NOTE 3: DIVIDENDS

Dividends have been declared and paid, the amount being $282,071.

NOTE 4: NET TANGIBLE ASSETS

NOTE 4: NET TANGIBLE ASSETS
	31	Dec 2008	30 Jun 2008
		$	$
Net tangible assets per share		0.012	0.008

Net tangible assets as at 31 December 2008 of $1,411,353 consists of total net assets of $7,393,295 less intangible assets and development assets totalling $5,981,942.

NOTE 5: SEGMENT REPORTING

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

NOTE 6: CONTINGENT LIABILITIES

There has been no change in contingent liabilities since the last annual reporting date.

NOTE 7: EVENTS SUBSEQUENT TO REPORTING DATE

There have been no significant events subsequent to the reporting date.

Stratatel Limited

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DIRECTORS’ DECLARATION

The directors of the company declare that:

1. The financial statements and notes thereto, as set out on pages 3 to 8:

2. a. comply with Accounting Standard AASB 134 and AASB 136: Interim Financial Reporting and the Corporations Regulations; and

3. b. Give 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 then ended.

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

This declaration is signed in accordance with a resolution of the Board of Directors made pursuant to s.303 (5) of the Corporations Act 2001.

Mike Fairclough

Managing Director

Dated this 27th day of February 2009

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Independent Auditor’s Review Report

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INDEPENDENT AUDITOR’S REVIEW REPORT

To the members of STRATATEL LIMITED

Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report, which comprises the condensed balance sheet as at 31 December 2008, the condensed income statement, condensed statement of changes in equity, condensed cash flow statement and notes to the financial statements for the half-year ended on that date, and the directors’ declaration, of Stratatel Limited and the entities it controlled during the half-year ended 31 December 2008 (“consolidated entity”).

Directors’ Responsibility for the Half-Year Financial Report

The directors of the company 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 controls 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 AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As the auditor of Stratatel Limited, 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.

HLB Mann Judd (WA Partnership) ABN 22 193 232 714

Level 2 15 Rheola Street West Perth 6005 PO Box 263 West Perth 6872 Western Australia. Telephone +61 (08) 9481 0977. Fax +61 (08) 9481 3686. Email: hlb@hlbwa.com.au. Website: http://www.hlb.com.au Liability limited by a scheme approved under Professional Standards Legislation

HLB Mann Judd (WA Partnership) is a member of International, a world-wide organisation of accounting firms and business advisers

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Independent Auditor’s Review Report

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 Stratatel Limited 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 the Corporations Regulations 2001 .

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HLB MANN JUDD Chartered Accountants

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Perth, Western Australia 27 February 2009

W M CLARK Partner