APM Human Services International : Appendix 4D and Half Yearly Financial Statements

For personal use only

APM Human Services International Limited

Appendix 4D

For the half-year ended 31 December 2021

Details of the reporting period and the previous corresponding period

Current period: 1 July 2021 to 31 December 2021

Previous corresponding period: 1 July 2020 to 31 December 2020

Results for announcement to the market

	Half-year	Half-year
	ended	ended
	31 December	31 December
	2021	2020
Key information	$'000	$'000	Change %
Revenue from contracts with customers	613,343	473,160	29.6%
Total comprehensive loss from ordinary activities for the period
attributable to members	(42,653)	(601)	6,997.0%
Total comprehensive loss for the period attributable to members	(42,653)	(601)	6,997.0%
Pro forma net profit after tax before amortisation expense
relating to acquired service agreement contract intangibles
(Pro forma NPATA)(i)	76,960	55,962	37.5%

(i) Reconciliation of total comprehensive loss for the period to underlying NPATA.

APM Human Services International Limited ("APM" or "the Company") utilises the non-IFRS measure of NPATA to assess the performance of its operations as it excludes the non-cash amortisation of service agreement contract intangibles over their useful lives. Service agreement contract intangibles arise when APM acquires businesses.

During the half-year ended 31 December 2021, APM converted from a private company to a publicly listed company. As part of this process, APM completed an initial public offering ("IPO") that raised $339.0 million. The proceeds of the IPO were used to pay for the costs of the IPO and the repayment of $160.0 million on the US Dollar denominated debt.

Included in the IPO process was a capital restructure that resulted in shareholder loans being converted into equity and the acceleration of vesting conditions of the Management Equity Plan and wind up of this plan.

APM Human Services International Limited Interim Report

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APM Human Services International Limited

Appendix 4D (continued)

For personal use only

For the half-year ended 31 December 2021

Results for announcement to the market (continued)

The following table adjusts the total comprehensive loss for the period for the expenses associated with the IPO and capital restructure to calculate the Pro forma NPATA results for H1 FY22.

	Half-year	Half-year
	ended	ended
	31 December	31 December
	2021	2020
	$'000	$'000	Change %
Total comprehensive loss for the period	(42,653)	(601)	6,997.0%
Amortisation expense (relating to acquired service agreement contracts)	26,059	25,483	2.3%
NPATA	(16,594)	24,882	(166.7%)
Pro forma adjustments:
ASX listing transaction costs	27,897	-	N/A
Extinguish existing MEP plan	10,491	-	N/A
Foreign exchange impact on US debt	12,938	(13,297)	(197.3%)
Employee IPO gift	5,053	-	N/A
Non-cash loss on debt modification	24,663	-	N/A
Reverse pre-IPO bank interest	3,375	13,632	(75.2%)
Shareholder interest expense	28,300	35,890	(21.1%)
Tax effect of adjustments*	(19,163)	(5,145)	272.5%
Pro forma NPATA	76,960	55,962	37.5%

• To recognise the tax effect of the underlying adjustments included above. Shareholder loan interest expense and share-based payments expense are non-deductible for Australian tax purposes.

Refer to the December 2021 Half-year results presentation announced to the Australian Securities Exchange ("ASX") on 25 February 2022.

Dividends

There have been no dividends declared or paid for H1 FY22. There is no dividend reinvestment plan in place.

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For personal use only

APM Human Services International Limited

Appendix 4D (continued)

For the half-year ended 31 December 2021

Net tangible assets

	As at	As at
	31 December	30 June
	2021	2021
	$'000	$'000
Net assets	1,405,218	43,573
Less: intangible assets	(1,876,316)	(1,729,611)
Net tangible assets of the company*	(471,098)	(1,686,038)
Fully paid ordinary shares on issue at balance date**	917,181,946	469,886,820
Net tangible asset backing per issued ordinary share as at balance date	(0.51)	(3.59)

• The net tangible assets includes the right-of-use assets as per AASB 16.
• On 12 November 2021, as part of the IPO, the group effected a 1 for 10 share split to all ordinary shareholders. All share information has been retrospectively adjusted.

Entities over which control has been gained during the period

The following entities joined the group during the financial period:

			Profit after
		Revenue	tax
Name of entity	Date of control	$'000	$'000
Generation Health Pty Ltd (100%, Australia)	31/07/2021	15,691	788
The Interact Group Pty Ltd (100%, Australia)	31/07/2021	-	-
The Kaiser Group (DE), LLC (100%, USA)	31/08/2021	12,824	333
Dynamic Workforce Solutions, LLC (100%, USA)	31/08/2021	-	-
Dynamic Workforce Solutions - Texas, LLC (100%, USA)	31/08/2021	-	-
APM Mobility Holdings Pty Ltd (100%, Australia)	05/10/2021	-	-
Mobility Holdings Pty Ltd (60%, Australia)	29/12/2021	-	-
Mobility Australia Pty Ltd (60%, Australia)	29/12/2021	-	-
APM ESA Holdings Pty Ltd (100%, Australia)	05/10/2021	-	-
Early Start Australia Pty Ltd (100%, Australia)	29/12/2021	-	-
Boost Therapy Pty Ltd (100%, Australia)	29/12/2021	-	-
Beststart Clinic Pty Ltd (100%, Australia)	29/12/2021	-	-
OT for Kids NT Pty Ltd (100%, Australia)	29/12/2021	-	-
Gateway Therapies Pty Ltd (100%, Australia)	29/12/2021	-	-
APM MyIntegra Holdings Pty Ltd (100%, Australia)	05/10/2021	-	-
Integrated Care Pty Ltd (100%, Australia)	29/12/2021	-	-
Integra Plan Management Pty Ltd (100%, Australia)	29/12/2021	-	-
Integra Choice and Control Pty Ltd (100%, Australia)	29/12/2021	-	-
Integra Supported Accommodation Pty Ltd (100%, Australia)	29/12/2021	-	-

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APM Human Services International Limited

Appendix 4D (continued)

For personal use only

For the half-year ended 31 December 2021

Additional information

This information should be read in conjunction with the 2021 Annual Report. Additional supporting information supporting Appendix 4D disclosure requirements can be found in the Director's report and the consolidated financial statements for the half-year ended 31 December 2021. This report is based on the consolidated financial statements for the 6 months ended 31 December 2021 on which PricewaterhouseCoopers has provided an unqualified review report.

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APM Human Services International Limited

ABN 38 639 621 766

For personal use only

Interim Report

For the half-year ended 31 December 2021