RENT.COM.AU LIMITED — Annual Report 2003

Mar 13, 2003

Appendix 4B

Preliminary Final Report

Introduced 30/6/2002

Name of entity
SELECT-TEL LIMITED
Half yearly Preliminary ABN or equivalent company reference final $(\text{tick})$ (iick)				Half year/financial year ended ('current period')
25 062 063 692		31 December 2002
For announcement to the market Extracts from this report for announcement to the market (see note 1).				\$A
Revenues from ordinary activities (item 1.1)	down	78.3%	tο	135,362
Profit (loss) from ordinary activities after tax attributable to members (item 1.22)	down	90%	tο	(626, 621)
Profit (loss) from extraordinary items after tax attributable to members ( item 2.5(d) )	gain (loss) of	Nil		Nil
Net profit (loss) for the period attributable to members (item 1.11)	down	90%	tο	(626, 621)
Dividends (distributions)	Amount per security			Franked amount per security
Final dividend (Preliminary final report only - item 15.4) Interim dividend (Half yearly report only - item 15.6)		- ¢		- C
Previous corresponding period (Preliminary final report- item 15.5; half yearly report - item 15.7)		- ¢		- ∉
+ Record date for determining entitlements to the dividend, (in the case of a trust, distribution) (see item $15.2$ )	N/A
Brief explanation of any of the figures reported above (see Note 1) and short details of any bonus or cash issue or other item(s) of importance not previously released to the market:

If this is a half yearly report it is to be read in conjunction with the most recent annual financial report.

Condensed consolidated statement of financial performance

		Current period	Previous corresponding
		\$Α	period
			\$A
1.1	Revenues from ordinary activities (see items 1.23
	$-1.25$	135,362	623,970
1.2	Expenses from ordinary activities (see items 1.26
	& 1.27)	(761,983)	(6,880,525)
1.3	Borrowing costs
1.4	Share of net profits (losses) of associates and joint venture entities (see item 16.7)
1.5	Profit (loss) from ordinary activities before tax	(626, 621)	(6, 256, 555)
1.6	Income tax on ordinary activities (see note 4)
1.7	Profit (loss) from ordinary activities after tax	(626, 621)	(6, 256, 555)
1.8	Profit (loss) from extraordinary items after tax
	(see item $2.5$ )
1.9	Net profit (loss)	(626, 621)	(6, 256, 555)
1.10	Net profit (loss) attributable to outside $+$ equity interests
1.11	Net profit (loss) for the period attributable to members	(626, 621)	(6, 256, 555)
	Non-owner transaction changes in equity
1.12	Increase (decrease) in revaluation reserves
1.13	Net exchange differences recognised in equity
1.14	Other revenue, expense and initial adjustments
	recognised directly in equity (attach details)
1.15	UIG transitional Initial adjustments from provisions
1.16	Total transactions and adjustments recognised
1.17	directly in equity (items 1.12 to 1.15) Total changes in equity not resulting from
	transactions with owners as owners	(626, 621)	(6, 256, 555)
	Earnings per security (EPS)	Current period	Previous corresponding Period
1.18	Basic EPS	$(1.8 \text{ cents})$	$(7.4 \text{ cents})$
1.19	Diluted EPS	$(1.8 \text{ cents})$	$(7.4 \text{ cents})$

Notes to the condensed consolidated statement of financial performance

Profit (loss) from ordinary activities attributable to members

		Current period	Previous
		SΑ	corresponding period
			SА
1.20	Profit (loss) from ordinary activities after tax (item 1.7)	(626, 621)	(6,256,555)
1.21	Less (plus) outside $+$ equity interests
1.22	Profit (loss) from ordinary activities after
	tax, attributable to members	(626, 621)	(6,256,555)

Revenue and expenses from ordinary activities

(see note $15$ )

		Current period \$A	Previous corresponding period SA.
1.23	Revenue from sales or services	99,355	623,970
1.24	Interest revenue	36,007
1.25	Other relevant revenue
	Total Revenue	135,362	623,970
1.26	Details of relevant expenses
	Raw Materials & consumables Payroll - Employee expenses & benefits		442,697 636,147
	Accountancy Fees & Professional Services	223,543
	Auditor Remuneration	57,622
	Directors Fees	162,500
	Rent.	114,782
	Diminution of Investment	111,610
	Amortisation of Intangibles (see item 2.3)		4,753,727
	Other	91,926	647,492
	Total Expenses	761,983	6,480,063
1.27	Depreciation amortisation and excluding amortisation of intangibles (see item 2.3)		400,462
	Total	761,983	6,880,525
	Capitalised outlays
1.28 1.29	Interest costs capitalised in asset values Outlays capitalised in intangibles (unless
	arising from an $^+$ acquisition of a business)

Consolidated retained profits

		Current period SA.	Previous corresponding period \$Α
1.30	Retained profits (accumulated losses) at the beginning of the financial period	(19,152,359)	(12,895,804)
1.31	Net profit (loss) attributable to members (item 1.HD	(626, 621)	(6,256,555)
1.32	Net transfers from (to) reserves (details if material)
1.33	Net effect of changes in accounting policies

1.34	Dividends and other equity distributions paid or pavable
1.35	Retained profits (accumulated losses) at end of financial period	(19,778,980)	(19, 152, 359)

Intangible and extraordinary items

		Consolidated - current period
		Before tax	Related tax	Related	Amount (after
		\$Α (a)	SA. (b)	outside $\pm$ equity interests SA	$\text{tax}$ ) attributable to members \$A. (d)
				(c)
2.1	Amortisation of goodwill
2.2	Amortisation of other intangibles
2.3	Total amortisation of intangibles
2.4	Extraordinary items (details)
2.5	Total extraordinary items

Comparison of half year profits
(Preliminary final report only)

• $3.1$ Consolidated profit (loss) from ordinary activities after tax attributable to members reported for the $1st$ half year (item 1.22 in the half yearly report)
• $3.2$ Consolidated profit (loss) from ordinary activities after tax attributable to members for the 2nd half year

Total (Item 1.31)

Current year \$A	Previous year \$Α
(254, 265)	(1,308,000)
(372, 356)	(4,948,555)
(626, 621)	(6,256,555)

	Condensed consolidated statement of	At end of	As shown in last	As in last half
	financial position	current period	annual report \$A	yearly report \$A
		\$Α
	Current assets
		536,784	717,265	1,151,133
4.1	Cash	143,490	333,976	21,790
4.2	Receivables
4.3	Investments	685,033		824,468
4.4	Inventories
4.5	Tax assets
4.6	Other (provide details if material)	59,000	2,218	48,774
4.7	Total current assets	1,424,307	1,053,459	2,046,165
	Non-current assets
4.8	Receivables
4.9	Investments (equity accounted)
4.10	Other investments	290,000
4.11	Inventories
4.12	Exploration and evaluation expenditure capitalised
4.13	Development properties $($ + mining)
4.14	Other property, plant and equipment
	(nct)
4.15 4.16	Intangibles (net) Tax assets
4.17	Other (provide details if material)
4.18	Total non-current assets	290,000
4.19	Total assets	1,714,307	1,053,459	2,046,165
	Current liabilities
4.20	Payables	173,552	88,845	133,055
4.21	Interest bearing liabilities
4.22	Tax liabilities
4.23	Provisions exc. tax liabilities
4.24	Other (provide details if material)
4.25	Total current liabilities	173,552	88,845	133,055
	Non-current liabilities
4.26	Payables
4.27	Interest bearing liabilities
4.28	Tax liabilities
4.29	Provisions exc. tax liabilities
4.30	Other (provide details if material)
4.31	Total non-current liabilities

Condensed consolidated statement of financial position continued

4.32	Total liabilities	173,552	88,845	133,055
4.33	Net assets	1,540,755	964,614	1,913,110
	Equity
4.34	Capital/contributed equity	21,319,735	20,116,973	21,319,735
4.35	Reserves
4.36	Retained profits (accumulated losses)	(19, 778, 980)	(19, 152, 359)	(19,406,625)
4.37	Equity attributable to members of the
	parent entity	1,540,755	964,614	1,913,110
4.38	Outside + equity interests in controlled
	entities
4.39	Total equity	1,540,755	964,614	1,913,110
4.40	Preference capital included as part of
	4.37

Notes to the condensed consolidated statement of financial position

Exploration and evaluation expenditure capitalised

$n/a$

(To be completed only by entities with mining interests if amounts are material. Include all expenditure incurred.)

		Current period	Previous
		SА	corresponding period
			\$Α
5.1	Opening balance	n/a	n/a
5.2	Expenditure incurred during current period
5.3	Expenditure written off during current period
5.4	Acquisitions, disposals, revaluation
	increments, etc.
5.5	Expenditure transferred to Development
	Properties
5.6	Closing balance as shown in the
	consolidated balance sheet (item 4.12)	n/a	n/a

Development properties

(To be completed only by entities with mining interests if amounts are material)

$n/a$

Opening balance

• $6.2$ Expenditure incurred during current period
• Expenditure transferred from exploration and 6.3 evaluation
• $6.4$ Expenditure written off during current period
• 6.5 Acquisitions, disposals, revaluation increments, etc.
• $6.6\,$ Expenditure transferred to mine properties
• $6.7$ Closing balance as shown in the consolidated balance sheet (item 4.13)

Current period \$A	Previous corresponding period \$Α
n/a	n/a
n/a	$\mathbf{n}/\mathbf{a}$

Condensed consolidated statement of cash flows

		Current period SA	Previous corresponding period \$Α
	Cash flows related to operating activities
7.1	Receipts from customers	28,061	663,123
7.2	Payments to suppliers and employees	(555, 971)	(1,895,758)
7.3	Dividends received from associates
7.4	Other dividends received
7.5	Interest and other items of similar nature received	36,007	31,305
7.6	Interest and other costs of finance paid	(47)
7.7	Income taxes paid
7.8	Other (provide details if material)
7.9	Net operating cash flows	(491, 950)	(1,201,330)
	Cash flows related to investing activities
7.10	Payment for purchases of property, plant and
7.11	equipment		(34, 282)
	Proceeds from sale of property, plant and equipment		14,278
7.12	Payment for purchases of equity investments	(796, 642)
7.13	Proceeds from sale of equity investments
7.14 7.15	Loans to other entities Loans repaid by other entities	(94, 651)
7.16	Other (provide details if material)
7.17	Net investing cash flows	(891, 293)	(20,004)
	Cash flows related to financing activities
7.18	Proceeds from issues of $+$ securities (shares, options, etc.)	1,202,762	925,416
7.19	Proceeds from borrowings
7.20 7.21	Repayment of borrowings Dividends paid
7.22	Other (provide details if material)
7.23	Net financing cash flows	1,202,762	925,416
7.24	Net increase (decrease) in cash held	(180, 481)	(295, 918)
7.25	Cash at beginning of period
7.26	(see Reconciliation of cash) Exchange rate adjustments to item 7.25.	717,265	1,013,183
7.27	Cash at end of period
	(see Reconciliation of cash)	536,784	717,265

Non-cash financing and investing activities

Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows are as follows. (If an amount is quantified, show comparative amount.)

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 accounts is as follows.		Current period SA.	Previous corresponding period SA
8.1	Cash on hand and at bank	205,640	60,469
8.2	Deposits at call	331.144	656,796
8.3	Bank overdraft
8.4	Other (provide details)
85	Total cash at end of period (item 7.27)	536,784	717,265

Other notes to the condensed financial statements

Ratios		Current period	Previous corresponding Period
9.1	Profit before tax / revenue Consolidated profit (loss) from ordinary activities before tax ( item 1.5 ) as a percentage of revenue (item 1.1)	$(462.92\%)$	$(1002.70\%)$
9.2	Profit after tax $/$ + equity interests Consolidated net profit (loss) from ordinary activities after tax attributable to members ( item 1.11 ) as a percentage of equity (similarly attributable) at the end of the period ( item (4.37)	(40.67%)	(648.61%

Earnings per security (EPS)

1. Details of basic and diluted EPS reported separately in accordance with paragraph 9 and 18 of AASB 1027: Earnings Per Share are as follows.

Basic Earnings per share		Current Period $(1.8)$ cents: 2002	Previous Period $(7.4)$ cents:2001
Net Loss for period (Item $1.1\mathrm{f}$ ) Weighted Average Number of ordinary Shares	$=$	\$(626,621) 34,905,024	\$(6,256,555) 84,683,886
Diluted Earnings per share

Diluted Earnings per Share is the same as Basic earnings per share as the dilutive options have not increased the loss per share.

NTA backing (see note 7)	Current period	Previous corresponding Period
11.1 Net tangible asset backing per + ordinary security	4.18 cents	$0.86$ cents

Discontinuing Operations

(Entities must report a description of any significant activities or events relating to discontinuing operations in accordance with paragraph 7.5 $(g)$ of AASB 1029: Interim Financial Reporting, or, the details of discontinuing operations they have disclosed in their accounts in accordance with AASB 1042: Discontinuing Operations (see note 17).)

12.1	Discontinuing Operations
1 I I

Control gained over entities having material effect

Nil

• 13.1 Name of entity (or group of entities)
• 13.2 Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) since the date in the current period on which control was ⁺acquired
• 13.3 Date from which such profit has been calculated
• 13.4 Profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) for the whole of the previous corresponding period

\$
\$

Loss of control of entities having material effect

$14.1$ Name of entity (or group of entities)

$14.2$ Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) for the current period to the date of loss of control

• $14.3$ Date to which the profit (loss) in item 14.2 has been calculated
• $14.4$ Consolidated profit (loss) from ordinary activities and extraordinary items after tax of the controlled entity (or group of entities) while controlled during the whole of the previous corresponding period
• $14.5$ Contribution to consolidated profit (loss) from ordinary activities and extraordinary items from sale of interest leading to loss of control

Nil

Dividends (in the case of a trust, distributions)

• $15.1$ Date the dividend (distribution) is payable
• $15.2$ *Record date to determine entitlements to the dividend (distribution) (ie, on the basis of proper instruments of transfer received by 5.00 pm if $\pm$ securities are not $\pm$ CHESS approved, or security holding balances established by 5.00 pm or such later time permitted by SCH Business Rules if $\dot{\tau}$ securities are ⁺CHESS approved)
• $15.3$ If it $(\Pr$

(Preliminary final report only)

Interim dividend: Current year

is a final dividend, has it been declared?
eliminary final report only)
t per security
	Amount per security	Franked amount per security at % tax (see note	Amount per security of foreign source dividend

Amoun

15.4

15.5

15.6

15.7

Total dividend (distribution) per security (interim plus final)

Current vear

(Half yearly and preliminary final reports)

Previous year

Previous year

(Preliminary final report only)

Final dividend:

		Current year	Previous year
15.8	$\overrightarrow{ }$ Ordinary securities	$N/A \notin$	$N/A \notin$
-15.9	Preference + securities	$N/A \notin$	$N/A \notin I$

Half vearly report - interim dividend (distribution) on all securities or Preliminary final report - final dividend (distribution) on all securities

• 15.10 $\overrightarrow{ }$ Ordinary securities (each class separately)
• 15.11 Preference ⁺securities (each class separately)
• 15.12 Other equity instruments (each class separately)
• 15.13 Total

Current period \$A	Previous corresponding period - \$A

The $\dot{\tau}$ dividend or distribution plans shown below are in operation.

None

The last date(s) for receipt of election notices for the

⁺dividend or distribution plans

Any other disclosures in relation to dividends (distributions). (For half yearly reports, provide details in accordance with paragraph 7.5(d) of AASB 1029 Interim Financial Reporting)

$N/A$

$\overline{4}$

$N/A$ $\epsilon$

$-\phi$

• ¢

$-\phi$

$N/A$ $\acute{e}$

$N/A$ $d$

• $\mathfrak{C}$

• $\mathfrak{C}$

$N/A \notin$

• 6

• ¢

• 6

Details of aggregate share of profits (losses) of associates and joint venture entities

Group's share of associates' and joint venture entities':

• 16.1 Profit (loss) from ordinary activities before ta:
• $16.2$ Income tax on ordinary activities
• $16.3$ Profit (loss) from ordinary activities after tax
• 16.4 Extraordinary items net of tax
• $16.5$ Net profit (loss)
• 16.6 Adjustments
• $16.7$ Share of net profit (loss) of associates and joint venture entities

é	Current period \$Α	Previous corresponding period \$Α
X

Material interests in entities which are not controlled entities

The economic entity has an interest (that is material to it) in the following entities. (If the interest was acquired or disposed of during either the current or previous corresponding period, indicate date of acquisition ("from dd/mm/yy") or disposal ("to dd/mm/yy").)

Name of entity			Percentage of ownership interest held at end of period or date of disposal	Contribution to net profit (loss) (item (1, 9)
Equity accounted 17.1 associates and joint venture entities		Current period	Previous corresponding period	Current period SA	Previous corresponding period - \$A
17.2	Total
17.3	Other material interests
17.4	Total

Issued and quoted securities at end of current period
(Description must include rate of interest and any redemption or conversion rights together with prices and dates)

Category of + securities		Total number	Number quoted	Issue price per security (see note $14)$ (cents)	Amount paid up per security (see note 14) (cents)
18.1	Preference + securities (description)			n/a	n/a
18.2	Changes during current period (a) Increases through issues (b) Decreases through returns of capital, buybacks, redemptions
18.3	+ Ordinary securities	36,828,101	36,828,101	n/a	n/a
18.4	Changes during current period (a) Increases through issues (b) Decreases through returns	8,750,000	8,750,000	n/a	n/a
	of capital, buybacks (c) Decreases through consolidation	(84, 235, 473)	(84, 235, 473)
18.5	$+$ Convertible debt securities (description and conversion factor)			n/a	n/a
18.6	Changes during current period (a) Increases through issues (b) Decreases through securities matured, converted
18.7	Options (description and conversion factor)			Exercise price	Expiry date (if any)
		30,552,518 5,042,173	30,552,518 5,042,173	$0.20$ cents $0.70$ cents	01/02/07 30/4/03
18.8	Issued during current period	24,552,518 6,000,000		$0.20$ cents $0.20$ cents	1/2/07 1/2/07
18.9	Exercised during current period
18.10	Expired during current period
18.11	Debentures (description)
18.12	Changes during current period (a) Increases through issues
	(b) Decreases through securities matured, converted
18.13	Unsecured notes (description)
18.14	Changes during current period (a) Increases through issues (b) Decreases through securities matured, converted

Segment reporting

The Company operates from one geographical location within Australia and within one business segment.

Comments by directors

(Comments on the following matters are required by ASX or, in relation to the half yearly report, by AASB 1029: Interim Financial Reporting. The comments do not take the place of the directors' report and statement (as required by the Corporations Act) and may be incorporated into the directors' report and statement. For both half yearly and preliminary final reports, if there are no comments in a section, state NIL. If there is insufficient space to comment, attach notes to this report.)

Basis of financial report preparation

The financial report is a general purpose financial report that has been prepared in accordance with $10L$ Accounting Standards, Corporation Act 2001, Urgent Issues Group Consensus Views and other authoritative pronouncements of the Australian Accounting Standards Board.

The financial report covers the economic entity of Select-Tel Limited and controlled entities. Select-Tel Limited is a listed public company, incorporated and domiciled in Australia.

The financial report has been prepared on an accruals basis and is based on historical costs and does not taken into account the changing money values or, except where stated, current valuations of non-current assets. Cost is based on the fair value of the consideration given in exchange for assets.

19.2 Material factors affecting the revenues and expenses of the economic entity for the current period. In a half yearly report, provide explanatory comments about any seasonal or irregular factors affecting operations.

$N/A$

A description of each event since the end of the current period which has had a material effect and which $19.3$ is not already reported elsewhere in this Appendix or in attachments, with financial effect quantified (if possible).

Nil

$19.4 -$ Franking credits available and prospects for paying fully or partly franked dividends for at least the next year.

Nil

$19.5 -$ Unless disclosed below, the accounting policies, estimation methods and measurement bases used in this report are the same as those used in the last annual report. Any changes in accounting policies, estimation methods and measurement bases since the last annual report are disclosed as follows. (Disclose changes and differences in the half yearly report in accordance with AASB 1029: Interim Financial Reporting. Disclose changes in accounting policies in the preliminary final report in accordance with AASB 1001: Accounting Policies-Disclosure).

Nil

19.6 Revisions in estimates of amounts reported in previous interim periods. For half yearly reports the nature and amount of revisions in estimates of amounts reported in previous +annual reports if those revisions have a material effect in this half year.

Nil

$19.7$ Changes in contingent liabilities or assets. For half yearly reports, changes in contingent liabilities and contingent assets since the last⁺ annual report.

Nil

Additional disclosure for trusts

• $20.1$ Number of units held by the management company or responsible entity or their related parties.
• 20.2 A statement of the fees and commissions payable to the management company or responsible entity.

Identify:

• $\gamma$ initial service charges
• $\gamma$ management fees
• $\gamma$ other fees

Statement of Operations by Segments

	Total Revenue		Operating Profit (Loss) After Income Tax		Total Assets
	2002 S	2001 S	2002 \$	2001	2002 S	2001 Ъ
(a) Industrial Segments			(626.621)	(6.256.555)	1,714,307	1.053,459
Telecommunications
-External Customers	99.355	623.970
Investments
-Interest Revenue	36.007

(b) Geographical Segments

The economic entity operates only in Australia

(c) The economic entity derived income from the provision of telecommunications communications management solutions and from the investments

Annual meeting

(Preliminary final report only)

The annual meeting will be held as follows:

Place

Date

Time

Approximate date the "annual report will be available

Compliance statement

$\mathbf{1}$ This report has been prepared in accordance with AASB Standards, other AASB authoritative pronouncements and Urgent Issues Group Consensus Views or other standards acceptable to ASX (see note 12).

Identify other standards used

• $\overline{2}$ This report, and the "accounts upon which the report is based (if separate), use the same accounting policies.
• 3 This report does give a true and fair view of the matters disclosed (see note 2).
• $\overline{4}$ This report is based on "accounts to which one of the following applies. $(Tick one)$ $\sim$ $\mathcal{L}_{\rm eff}$ $\overline{1}$ $\ddot{\phantom{a}}$ .
  Carlos

The "accounts have been	The "accounts have been
audited.	subject to review.
The * accounts are in the process of being audited or subject to review.	The * accounts have not yet been audited or reviewed.

• 5 If the audit report or review by the auditor is not attached, details of any qualifications are attached.
• 6 The entity has a formally constituted audit committee.

Sign here:

Company Secretary

Date: 14 March 2003

PHILLIP HAINS Print name:

$\overline{X}$