Preliminary Final Report

Results

A$ '000

Loss after tax

Down

33 %

to

(13,185)

Loss after tax attributable to members

Down

33 %

to

(13,185)

Dividends (distributions)

Amount per security

Franked amount per security

Current period

Interim dividend

Final dividend

Nil ¢

Nil ¢

0%

0%

Previous corresponding period

Interim dividend

Final dividend

Nil ¢

Nil ¢

0%

0%

Record date for determining entitlements to the dividend.

N/A

Brief explanation of the figures above

The net result of the consolidated entity for the year to 31 December 2019 was a loss after tax and minority interest for the year of $13.2 million, which comprised a loss from continued operations amounting to $10.6 million and a loss from discontinued operations amounting to $2.6 million (2018 year: loss after tax and minority interest of $19.7 million). The discontinued operations represent the Group's core business, eServGlobal SAS and its controlled entities which was disposed on 25 July 2019.

Total cash flow for the year was a net outflow of $16.5 million (2018 year: net inflow of $16.0 million). Cash at 31 December 2019 was $11.6 million.

Subsequent Events

There has not been any matter or circumstance that has arisen since the end of the financial year that has significantly affected, or may significantly affect, the operations of the Group, the results of those operations, or the of the Group in future financial years.

Year Ended31 Dec 2019

Year Ended31 Dec 2018

Note

 $`000

$`000

Continuing operations

Interest income

70

-

Foreign exchange gain/(loss)

157

Administration expenses

(2,784)

(3,361)

Restructure and transaction related costs

(1,412)

-

Share of profit / (loss) of associate

(6,596)

(6,232)

Loss before tax

(10,565)

(9,593)

Income tax expense

-

-

Loss for the year from continuing operations

(10,565)

(9,593)

Discontinued operations

Loss for the year from discontinued operations

7

(2,620)

(10,154)

Loss for the year

(13,185)

(19,747)

Other comprehensive income (loss), net of tax

Items that may be reclassified subsequently to profit or loss:

Exchange differences arising on the translation of foreign operations (nil tax impact)

(139)

6,308

Items that have been reclassified to profit or loss:

Transfer from foreign exchange reserve on disposal of subsidiary

(891)

-

Total comprehensive income/(loss) for the year

(14,215)

(13,439)

Equity holders of the parent

(13,185)

(19,863)

Non-controlling interest

-

116

(13,185)

(19,747)

Total comprehensive loss attributable to:

Equity holders of the parent

(14,215)

(13,555)

Non-controlling interest

-

116

(14,215)

(13,439)

Loss per share:

From continuing and discontinued operations

Basic (cents per share)

(1.09)

(0.06)

Diluted (cents per share)

(1.09)

(0.06)

From continuing operations

Basic (cents per share)

(0.87)

(0.06)

Diluted (cents per share)

(0.87)

(0.06)

Note

As at31 Dec 2019

As at31 Dec 2018

$`000

$`000

Current Assets

Cash and cash equivalents

11,636

27,451

Trade receivables and contract assets

-

4,159

Inventories

-

28

Current tax assets

-

37

Other current assets

-

973

Other financial assets

9

4,239

-

Total Current Assets

15,876

32,648

Non-Current Assets

Investment in associate

8

25,462

25,791

Property, plant and equipment

-

257

Deferred tax assets

-

673

Intangible assets

-

3,294

Total Non-Current Assets

25,462

30,015

Total Assets

41,337

62,663

Current Liabilities

Trade and other payables

271

4,085

Current tax payables

-

1,046

Provisions

-

1,112

Contract liabilities

-

595

Total Current Liabilities

271

6,838

Non-Current Liabilities

Provisions

-

717

Total Non-Current Liabilities

-

717

Total Liabilities

271

7,555

Net Assets

41,067

55,108

Equity

Issued capital

212,326

212,326

Reserves

4,922

5,653

Accumulated losses

(176,181)

(162,991)

Equity attributable to owners of the parent

41,067

54,988

Non-controlling interest

-

120

Total Equity

41,067

55,108

Issued Capital

Foreign Currency Translation Reserve

Equity-settled benefits Reserve

Accumulated Losses

Attributable to owners of the parent

Non controlling Interest

Total

$`000

$`000

$`000

$`000

$`000

$`000

$`000

Balance at 1 January 2019

212,326

1,905

3,752

(162,995)

54,988

120

55,108

Loss for the year

-

-

-

(13,185)

(13,185)

-

(13,185)

Exchange differences arising on translation of foreign operations

-

(139)

-

-

(139)

-

(139)

Transfer from foreign exchange reserve on disposal of subsidiary

-

(891)

-

-

(891)

-

(891)

Total comprehensive loss for the year (net of tax)

-

(1,030)

-

(13,185)

(14,215)

-

(14,215)

Derecognition of Non-Controlling Interest on disposal

-

-

-

-

-

(120)

(120)

Equity settled payments

-

-

295

-

295

-

-

Balance at 31 December 2019

212,326

875

4,047

(176,181)

41,067

-

41,067

Issued Capital

Foreign Currency Translation Reserve

Equity-settled benefits Reserve

Accumulated Losses

Attributable to owners of the parent

Non controlling Interest

Total

$`000

$`000

$`000

$`000

$`000

$`000

$`000

Balance at 1 January 2018

180,352

(4,403)

3,337

(143,128)

36,158

127

36,285

Loss for the period

-

-

-

(19,863)

(19,863)

116

(19,747)

Exchange differences arising on translationof foreign operations

-

6,308

-

-

6,308

-

6,308

Total comprehensive income/(loss) for the period

-

6,308

-

(19,867)

(13,355)

116

(13,439)

Issue of new shares, net of share issue costs

31,974

-

-

-

31,974

-

31,974

Payment of dividends

-

-

-

-

-

(123)

(123)

Equity settled payments

-

-

415

-

411

-

411

Balance at 31 December 2018

212,326

1,905

3,752

(162,995)

54,988

120

55,108

Year ended31 Dec 2019

Year ended31 Dec 2018

$`000

$`000

Cash Flows from Operating Activities

Cash receipts from customers

7,198

13,046

Cash payments to suppliers and employees

(11,659)

(23,567)

Refund of research & development tax credits

-

764

Interest and other costs of finance paid

-

(277)

Income tax (paid) / refund

(1,316)

96

Net cash used in operating activities

(5,777)

(9,938)

Cash Flows from Investing Activities

Investment in HomeSend joint venture Company

(6,479)

(3,506)

Proceeds from disposal of PPE

(78)

-

Payment for property, plant and equipment

-

(247)

Cash flow from disposal of subsidiaries, net of cash disposed

1,485

-

Advances to Homesend joint venture company

(4,239)

-

Software development costs

(1,369)

(2,180)

Net cash used in investing activities

(10,680)

(5,933)

Cash Flows from Financing Activities

Payment of dividends to minority shareholder in subsidiary

-

(124)

Proceeds from issues of shares

-

33,440

Payment for share issue costs

-

(1,466)

Net cash from financing activities

-

31,850

Net (decrease)/increase in Cash and Cash Equivalents

(16,459)

15,979

Cash at The Beginning of the Year

27,451

10,801

Effects of rate changes on the balance of cash held in foreign currencies

644

671

Cash and Cash Equivalents at The End of the Year

11,636

27,451

Name of associate

Principal activity

Place of incorporation and principal place of business

Proportion of ownership interest and voting rights held by the Group

31 December 2019

31 December 2018

HomeSend SCRL(i)

Provision of international mobile money services

Brussels, Belgium

35.68%

35.68%

31 Dec 2019

31 Dec 2018

$`000

$`000

Opening balance

25,791

26,319

Investment in associate

6,479

3,506

Share of current period loss of the associate

(6,596)

(6,232)

Effects of foreign currency exchange movements

(212)

2,198

Closing balance

25,462

25,791

31 December 2019

31 December 2018

Net tangible assets per security

3.4 cents

4.3 cents

Amount

Amount per security

Franked amount per security at 30% tax

Amount per security of foreign source dividend

Date paid/ payable

Interim dividend: Current year

Nil

N/A

N/A

N/A

N/A

Previous year

Nil

N/A

N/A

N/A

N/A

Final dividend: Current year

Nil

N/A

N/A

N/A

N/A

Previous year

Nil

N/A

N/A

N/A

N/A