Enprise : 30 June 2020 Annual Report Filed (Final, Signed) - 25 November 2020

Enprise Group Limited

Annual Report and Financial Statements

for the 15 months ended 30 June 2020

Enprise Group Limited

Annual Report and Financial Statements for the 15 months ended 30 June 2020

Contents
Directors Report	2
Consolidated Statement of Comprehensive Income	6
Consolidated Statement of Financial Position	7
Consolidated Statement of Changes in Equity	9
Consolidated Statement of Cash Flows	10
Notes to the Consolidated Financial Statements
Basis of preparation	11
Segment information	14
Revenue	15
Other income	16
Operating expenses	17
Taxation	19
Earnings per share	21
Trade and other receivables	21
Contract assets	22
Other assets	22
Trade and other payables	22
Provisions	23
Contract liabilities	23
Business combinations	24
Investments in joint ventures and associates	27
Investments in other entities	31
Property plant and equipment	32
Intangible assets	33
Right-of-use assets	35
Borrowings	36
Lease liabilities	37
Equity	38
Related party transactions	38
Cash flow reconciliation	40
Contingent liabilities	40
Subsequent events after balance date	40
Financial risk management, objectives and policies	41
New accounting standards	43
Restatement of comparatives	44
Corporate Information	46
Auditor's Report	47

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Enprise Group Limited

Directors' Report

The Directors are pleased to submit to shareholders their report and financial statements for the 15 month period ended 30 June 2020.

Principal activities

Enprise Group Limited (Enprise) has two operating divisions;

• Enterprise Solutions, a solution provider for MYOB Enterprise software in Australia and New Zealand.
• iSell Pty Limited (iSell), sell a cloud-based quoting systems (IT Quoter) on a Software-as-a-Service (SaaS) model used by the IT reseller market in Australia, New Zealand, UK and South Africa.

Enprise is invested in a joint venture, Datagate Innovation Limited (Datagate) that provides online reporting and billing portals under a Software-as-a- Service (SaaS) model for resellers of Telco/Utility services and hosted service providers in New Zealand, Australia, Canada, USA and Europe. Enprise holds 33.5% of Datagate.

Significant changes in the state of affairs

Kilimanjaro Consulting Pty Limited (Kilimanjaro) shareholders exercised their put option effective on 1 January 2020 resulting in Enprise issuing 2,854,649 new shares. Kilimanjaro became a wholly owned subsidiary from that date.

Enprise invested further into iSell. Enprise subscribed for 1,087,500 shares at AUD $0.40 per share on 27th May 2020 which took Enprise to 50.8% and therefore iSell has been consolidated from 27th May 2020. During the period, Enprise acquired iSell shares from other iSell shareholders for a combination of cash and new Enprise shares.

Enprise subscribed for $176,001 in a heavily oversubscribed rights issue undertaken by Datagate to capitalise on the progress made in international markets, particularly the USA. Enprise's stake was diluted by the raise, causing Enprise to recognise a gain on dilution.

Directors

Mr Lindsay Phillips (appointed 1 December 2013) - Chairman

Mr George Cooper (appointed 10 April 2012) - CEO

Mr Nicholas Paul (appointed 1 December 2015) - Independent Non-Executive Director

Mr Ronald Baskind (appointed 31 January 2018) - Executive Director

Ms Marisa Fong (appointed 1 February 2019) - Independent Non-Executive Director

Ms Marisa Fong, Mr Nicholas Paul and Mr Lindsay Phillips comprise the members of the Audit, Finance and Risk Committee.

Ms Fong is considered to be an independent director as she has a small holding in Enprise and has no other remuneration or influence which would affect her decision making in a material way. Mr Paul is considered to be an independent director as he has a small holding in Enprise and although he has gained remuneration for his role as acting CEO of iSell, this has been done to enable the founder of iSell, Richard Beresford to complete the product development.

	30 June 2020	31 March 2019
Male Directors	4	4
Female Directors	1	1
Male Officers	-	-
Female Officers	1	1

Corporate governance

The directors have complied with the corporate governance code which can be found on the following link. https://enprise.com/media/1824/201125-eg-corporate-governance-statement.pdf

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Enprise Group Limited

Directors' Report

Remuneration of directors

The remuneration of the Directors for the period ended 30 June 2020 is set out below:

30 June 2020	31 March 2019
15 mths	$'000	12 mths	$'000
Salaries, bonuses and commissions	387		201
Consultancy fees	135		3
Directors' fees	112		69
Total compensation	634		273
George Cooper	276		201
Lindsay Phillips	50		40
Nicholas Paul	166		28
Ronnie Baskind	295		279
Marisa Fong	31		4
	818		552
	30 June 2020
	$'000		$'000
Base per annum		Incentive
George Cooper	205		20
Ronnie Baskind	249		25

Incentives are discretionary and assessed by the Board based on the profitability of the company.

Employee remuneration over $100,000

The number of employees or former employees, not being directors of the Group, that received remuneration and other benefits that exceeded $100,000 per annum is as follows:

		30 June 2020	31 March 2019
		Number of employees
100,001	- 110,000	10	4
110,001	- 120,000	8	4
120,001	- 130,000	11	1
130,001	- 140,000	3	1
140,001	- 150,000	4	1
150,001	- 160,000	2	-
160,001	- 170,000	-	1
170,001	- 180,000	2	-
190,001	- 200,000	1	-
200,001	- 210,000	2	-
210,001	- 220,000	1	-
260,001	- 270,000	-	1

Rounding of amounts

Amounts in the directors' report and financial statements have been rounded off to the nearest thousand dollars.

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