MACQUARIE TECHNOLOGY GROUP LIMITED — Interim / Quarterly Report 2012

Aug 22, 2012

Macquarie Telecom Group Limited

Appendix 4E

Preliminary final report Financial year ended 30 June 2012

1. Results for announcement to the market

	$A’000	$A’000	$A’000
Revenue and other income Profit after tax attributable to members Net profit for the period attributable to members	down 4.0% to 221,266 up 10.6% to 19,567 up 10.6% to 19,567
Dividends (distributions)		Amount per security	Franked amount per security
Final dividend		12 ¢	12 ¢
Previous corresponding period		12 ¢	12 ¢
Record date for determining entitlements to the dividend Payment date	13 September 2012 11October 2012

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Macquarie Telecom Group Limited Appendix 4E Preliminary final report Financial year ended 30 June 2012

2. Statement of Comprehensive Income

Notes	CONSOLIDATED
	2012 2011
	$’000 $’000
Revenue and other income 6.1 Expenses 6.1	221,266 230,605 (194,493) (205,678)
Profit before income tax and finance costs	26,773 24,927 (236) (18)
Finance costs
Profit before income tax	26,537 24,909
Income tax expense	(6,970) (7,217)
Profit after income tax for the year attributable to owners of the parent	19,567 17,692
Total comprehensive income for the year attributable to owners of the parent	19,567 17,692

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3. Statement of Financial Position

3. Statement of Financial Position
	CONSOLIDATED
	2012 2011
	$’000 $’000
CURRENT ASSETS
Cash and cash equivalents	30,808 53,463
Receivables	6,213 6,327
Accrued income	5,600 7,876
Other	2,378 2,072
TOTAL CURRENT ASSETS	44,999 69,738
NON-CURRENT ASSETS
Property, plant and equipment	69,275 33,632
Intangibles	8,387 8,023
Deferred tax assets	4,389 5,654
Other	959 1,262
TOTAL NON-CURRENT ASSETS	83,010 48,571
TOTAL ASSETS	128,009 118,309
CURRENT LIABILITIES
Payables	29,826 34,318
Current tax liabilities	3,631 4,072
Provisions	1,239 1,499
Other	187 66
TOTAL CURRENT LIABILITIES	34,883 39,955
NON-CURRENT LIABILITIES
Deferred tax liabilities	- -
Provisions	1,124 898
Other	677 863
TOTAL NON-CURRENT LIABILITIES	1,801 1,761
TOTAL LIABILITIES	36,684 41,716
NET ASSETS	91,325 76,593
EQUITY
Contributed equity	42,991 42,811
Reserves	194 182
Retainedprofit	48,140 33,600
TOTAL EQUITY	91,325 76,593

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4. Statement of Changes in Equity

	Contributed Equity Reserves Retained Profit/(Loss) Total
	$’000 $’000 $’000 $’000
At 1 July 2010	42,723 148 26,324 69,195
Total comprehensive income for the year	- - 17,692 17,692
Transactions with owners in their capacity as owners:
Share-based payments expense	- 34 - 34
Exercise of options	88 - - 88
Dividends provided for or paid	- - (10,416) (10,416)
	88 34 (10,416) (10,294)
At 30 June 2011	42,811 182 33,600 76,593
	Contributed Equity Reserves Retained Profit/(Loss) Total
	$’000 $’000 $’000 $’000
At 1 July 2011	42,811 182 33,600 76,593
Total comprehensive income for the year	- - 19,567 19,567
Transactions with owners in their capacity as owners:
Share-based payments expense	- 12 - 12
Exercise of options	180 - - 180
Dividends provided for or paid	- - (5,027) (5,027)
	180 12 (5,027) (4,835)
At 30 June 2012	42,991 194 48,140 91,325

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5. Statement of Cash Flows

Statement of Cash Flows
Notes	CONSOLIDATED
	2012 2011
	$’000 $’000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers (inclusive of goods and services tax)	242,387 253,476
Payments to suppliers and employees (inclusive of goods and services tax)	(204,546) (211,483)
Interest received	2,564 3,183
Interest paid	(236) (18)
Income tax paid	(6,236) (7,076)
Other receipts	46 821
NET CASH FLOWS FROM OPERATING ACTIVITIES 6.2	33,979 38,903
CASH FLOWS FROM INVESTING ACTIVITIES
Acquisition of non-current assets	(51,872) (30,602)
Proceeds from sale of non-current assets	- 4
NET CASH FLOWS (USED IN) INVESTING ACTIVITIES	(51,872) (30,598)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from issue of shares	180 88
Repayment of finance lease principal	- (342)
Dividends paid on ordinary shares	(5,027) (10,416)
NET CASH FLOWS (USED IN) FINANCING ACTIVITIES	(4,847) (10,670)
NET (DECREASE) IN CASH AND CASH EQUIVALENTS	(22,740) (2,365)
Opening cash and cash equivalents brought forward	53,463 56,304
Effects of exchange rate changes on cash and cash equivalents	85 (476)
CASH AND CASH EQUIVALENTS AT THE END OF YEAR 6.2	30,808 53,463

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6. Notes to the financial statements

6.1 Revenue and expenses

Revenue and other income Revenue Revenue from services Other income Interest Net profit on disposal of plant and equipment Net foreign exchange gains Other income Expenses Bad and doubtful debts* Operating lease rental Employment costs Carrier costs Net loss on disposal of plant and equipment Net foreign exchange losses Depreciation and amortisation Other expenses	Current period - $'000 Previous corresponding period - $'000 218,863 226,710 2,338 3,067 - 7 19 - 46 821
	221,266 230,605
	41 5,727 61,721 92,123 1 - 16,167 18,713 (1,044) 6,124 62,081 103,010 - 456 15,419 19,632
	194,493 205,678

• Includes recoveries of debts previously provided of nil (2011: $1.5 million).

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6.2 Reconciliation of cash

Reconciliation of cash at the end of the period (as shown in the consolidated statement of cash flows) to the related items in the financial statements is as follows. Cash on hand and at bank Short term deposits Restricted cash Total cash at end of period*	2012 $’000 2011 $’000 12,704 21,960 17,600 28,984 504 2,519
	30,808 53,463
Reconciliation of the profit after income tax to the net cash flows from operations
Profit after income tax	19,567 17,692
Amortisation of non-current assets	4,462 3,642
Depreciation of non-current assets	11,705 11,777
Loss/(profit) on sale of plant and equipment	1 (7)
Share based payments expense	12 34
Net foreign currency (gains)/losses	(85) 476
Changes in assets and liabilities
Trade receivables	410 2,553
Other receivables	(296) 1,392
Accrued income	2,276 1,198
Prepayments	(306) 19
Deferred tax assets	1,265 503
Trade and other creditors	(4,492) 260
Other liabilities	(65) (503)
Current tax liabilities	(441) (289)
Deferred tax liabilities	- -
Provisions	(34) 156
Net cash inflow from operating activities	33,979 38,903

• Bank deposits held by financial institutions as security against letters of credit.

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7. NTA backing

Current period Previous corresponding Period Net tangible asset backing per ordinary $3.96 $3.28 security

8 Review of operations

8.1 Significant information on financial performance and position

Further commentary on significant information is contained in the press release dated 22 August 2012 accompanying this statement.

8.2 Events occurring after the reporting period

On 22 August 2012, the directors declared a fully franked final dividend of 12 cents per share to the holders of fully paid ordinary shares in respect of the financial year ended 30 June 2012, to be paid to the shareholders on 11 October 2012. This dividend has not been included as a liability in these financial statements. The total estimated dividend to be paid is $2.52 million.

The impact on the franking account of the dividend recommended by the directors since the end of the reporting period, but not recognised as a liability at the reporting date, will be a reduction in the franking account of $1.08 million.

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9. Commentary on the results for the period

9.1 Earnings per share (EPS)

Details of basic and diluted EPS are as follows:

Details of basic and diluted EPS are as follows:
	Current period	Previous
		corresponding period
	cents	cents
Basic earnings per share
Basic earnings per share attributable to the	93.4	84.8
ordinary equity holders of the company
Diluted earnings per share
Diluted earnings per share attributable to the	93.4	84.5
ordinary equity holders of the company
	Number	Number
Weighted average number of ordinary shares	20,941,162	20,869,710
used in calculating basic profit per share
Weighted average number of ordinary shares	20,955,543	20,940,436
and potential ordinary shares used in
calculating diluted profit per share
	$’000	$’000
Profit used in calculating basic and diluted profit per share	19,567	17,692

9.2 Segment reporting

Refer attachment 1.

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9.3 Trends in performance

Ratios Profit before tax from continuing operations / revenue from continuing operations Consolidated profit from continuing operations before tax as a percentage of revenuefromcontinuing operations	Current period	Previous corresponding period
	12.0%	10.8%
Profit after tax from continuing operations / equity interests Consolidated net profit after tax from continuing operations attributable to members as a percentage of total equity (similarly attributable) at the end of the period	21.4%	23.1%

9.4 Additional commentary

Further commentary on the results for the period is contained in the press release dated 22 August 2012 accompanying this statement.

10. Annual meeting

The annual meeting will be held as follows:

Place Date Time Approximate date the annual report will be available	Museum of Sydney
	23 November 2012
	9.00am
	26 October 2012

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Macquarie Telecom Group Limited Appendix 4E Preliminary final report Financial year ended 30 June 2012

Compliance statement

1. Basis of preparation of the Preliminary Final Report

2. The preliminary final report has been prepared in accordance with ASX Listing Rule 4.3A, the disclosure requirements of ASX Appendix 4E and Australian Accounting Standards. The accounting policies have been consistently applied by each entity in the consolidated entity and, except where there is a change in accounting policy, are consistent with the prior year.

3. Changes in accounting policies Nil.

4. This report, and the financial statements upon which the report is based, use the same accounting policies.

6. This report does give a true and fair view of the matters disclosed.

7. This report is based on accounts which have been audited.

8. 6 The entity has a formally constituted audit committee.

Signed:

==> picture [82 x 47] intentionally omitted <==

David Tudehope Director

Date: 22 August 2012

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ATTACHMENT 1

Segment Description

The consolidated entity operates in four primary operating segments providing services to Australian corporate and Australian government customers. The Voice segment relates to the provision of voice telecommunications services. The Data segment relates to the provision of services utilising the Macquarie data network. The Hosting segment relates to the provision of services utilising the Macquarie data hosting facility. The Mobile segment relates to the provision of mobile telecommunications services.

Geographically, the consolidated entity operated in one location being Australia.

Segment Accounting Policies

Segment accounting policies are the same as the consolidated entity’s policies described in Note 2 to the Financial Statements.

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Operating segments

Operating segments
Revenue Sales to customers outside the consolidated entity Other income Inter-segment revenue Total segment revenue Inter-segment elimination Unallocated revenue Total consolidated revenue Results Segment result before income tax Unallocated revenue and expenses Profit before income tax and finance costs Finance costs Consolidated entity profit before income tax Income tax expense Consolidated entity profit after income tax	Voice Data Hosting Mobiles 2012 $’000 2011 $’000 2012 $’000 2011 $’000 2012 $’000 2011 $’000 2012 $’000 2011 $’000 76,199 85,903 62,428 58,879 58,530 53,715 21,706 28,213 - 450 16 307 49 69 - - - - - - - - - - 76,199 86,353 62,444 59,186 58,579 53,784 21,706 28,213	Consolidated 2012 $’000 2011 $’000 218,863 226,710 65 826 - - 218,928 227,536
	17,243 15,922 5,231 3,695 7,819 7,462 3,156 3,417	- - 2,338 3,069 221,266 230,605
		33,449 30,496 (6,676) (5,569) 26,773 24,927 (236) (18) 26,537 24,909 (6,970) (7,217) 19,567 17,692

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