8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
1/31
INTEGRATEDLEGALHOLDINGSLIMITED
ACN120394194
ASXAppendix4D
RESULTSFORANNOUNCEMENTTOTHEMARKET
Currentreportingperiod: Halfyearended31December2010
Previouscorrespondingperiod: Halfyearended31December2009
EARNINGS
Percentage
change
UP(+)/DOWN()
Amount
$A
Revenuefromordinaryactivities +18% 13,616,834
Profitfromordinaryactivitiesaftertaxattributable
tomembers+96% 755,906
Netprofitfortheperiodattributabletomembers +96% 755,906
DIVIDENDS
Amount
pershare
Frankedamount
pershareat30%
2011Interimdividend 0.30cents 0.30cents
Correspondingperiod 0.25cents 0.25cents
Recorddatefordeterminingentitlementstothe
2011interimdividend 11April2011
Paymentdate
for
the
2011
interim
dividend
2May
2011
TheCompanyoperatesadividendreinvestmentplan(DRP). Furtherdetailsaredisclosedin
theinterimdividenddetailssectionofthisreport.
DRPdiscountrate 5%
LastdateforreceiptofDRPelectionnoticesforthe
2011interimdividend 18April2011
EARNINGS
PER
SHARE
Percentage
change
UP(+)/DOWN(
)
31Dec2010
31Dec2009
Basicanddilutedearningspershare +54% 0.86 0.56
NETTANGIBLEASSETBACKING
Percentage
change
UP(+)/DOWN()
31Dec2010
31Dec2009
Nettangibleassetbackingper
security+19% 6.98 5.87
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
2/31
INTEGRATEDLEGALHOLDINGSLIMITED
ACN120394194
ASXAppendix4D
RESULTSFORANNOUNCEMENTTOTHEMARKET
Consolidated operating revenues of $13,616,834 were 18% higher than the previous
correspondinghalfyearperiodof$11,588,400operatingrevenues. Revenuefromordinary
activitiesincreasedduetoorganicgrowthwithinexistingmemberfirms.
Thefollowingtablesummarisesresultsfortheperiod,theFullYear2010,andeachofthe
halfyearsof2010.
RESULTSSUMMARY
FirstHalf
2011
$m
FullYear
2010
$m
SecondHalf
2010
$m
FirstHalf
2010
$m
Operatingrevenue 13.62 23.87 12.28 11.59
Netprofitaftertax 0.76 0.85 0.47 0.38
Earningspershare 0.86cents 1.18cents 0.62cents 0.56cents
Dividendpershare 0.30cents 0.75cents 0.50cents 0.25cents
Operatingcashinflows 1.03 1.45 1.26 0.19
Nettangibleassetbackingpershare 6.98cents 6.54cents 6.54cents 5.87cents
Debt/equityratio 8% 11% 11% 18%
Forthe
half
year
ended
31
December
2010,
the
consolidated
entity
generated
anet
profit
after tax of $755,906 compared to a full year 2010 net profit after tax of $853,494,
$467,731 forthehalfyearended30 June2010andahalfyearended31December2009
netprofitaftertaxof$385,763.
Earningspersharefortheperiodwere0.86centspershare,comparedtotheyearended
30 June 2010 of 1.18 cents (30 June 2010 halfyear: 0.62 cents; 31 December 2009 half
year:0.56cents).
TheGrouphasdeclaredafully franked interimdividendof0.30centswithrespecttothe
financialyearended30 June2011 (2010 interimdividend:0.25cents). Thedividendwill
have
a
record
date
of
11
April
2011
and
a
payment
date
of
2
May
2011.
The
Group
operatesadividendreinvestmentplan.
Thegroupdoesnothaveanyinterestsinassociatesoutsidethegroup,nordoesithaveany
interestinjointventures.
Further information is included in the Directors Report within the HalfYear Financial
Report.
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
3/31
INTEGRATEDLEGALHOLDINGSLIMITED
ACN120
394
194
(ASX:IAW)
HalfYearFinancialReport
forthehalfyearended31December2010
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
4/31
INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALF-YEARENDED
31DECEMBER2010
ACN120394194
Contents
Corporateinformation.............................................................................................................1
Directorsreport......................................................................................................................2
Consolidatedstatementoffinancialposition..........................................................................6
Consolidatedstatementofcomprehensiveincome................................................................7
Consolidatedstatementofcashflows.....................................................................................8
Consolidatedstatementofchangesinequity.........................................................................9
Notesto
the
consolidated
financial
statements
....................................................................
10
Directorsdeclaration............................................................................................................24
Auditorsindependencedeclaration.....................................................................................25
Independentauditorsreviewreport....................................................................................26
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
5/31
INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALF-YEARENDED
31DECEMBER2010
ACN120394194
CorporateInformation
1
ABN20
120
394
194
Directors
TheHonJohnDawkins,Chairman
AnneTregonning,NonexecutiveDirector
GraemeFowler,ManagingDirector/ChiefExecutive
CompanySecretary
JeanMarieRudd
Registeredoffice
Level8,
Wesfarmers
House
40TheEsplanade
Perth WA 6000
Principalplaceofbusiness
HeadOffice
Level22
1MarketStreet
Sydney NSW 2000
Tel: (02)82636600
Share
Register
ComputershareInvestorServicesPtyLimited
Level2
45StGeorgesTerrace
Perth WA 6000
Tel: (08)93232000
IntegratedLegalHoldingsLimitedsharesarelistedontheAustralianStockExchange.
Solicitors
TalbotOlivier ArgyleLawyers
Level
8,
Wesfarmers
House
Level
22
40TheEsplanade 1MarketStreet
Perth WA 6000 Sydney NSW 2000
Bankers
NationalAustraliaBankLimited
50StGeorgesTerrace
Perth WA 6000
Auditor
Ernst&Young
11
Mounts
Bay
Road
Perth WA 6000
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
6/31
INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALF-YEARENDED
31DECEMBER2010
ACN120394194
DirectorsReport
2
The
directors
of
Integrated
Legal
Holdings
Limited
(the
Company)
submit
the
halfyear
financial
reportforthehalfyearended31December2010.
DIRECTORS
ThenamesoftheCompanysdirectorsinofficeduringthehalfyearanduntilthedateofthisreport
aresetoutbelow. Directorswereinofficeforthisentireperiodunlessotherwisestated.
TheHonJohnDawkinsAO(NonexecutiveChairman)
AnneTregonning(NonexecutiveDirector)
GraemeFowler(ManagingDirector)
REVIEWAND
RESULTS
OF
OPERATIONS
Consolidatedoperatingrevenuesof$13,616,834were18%higherthanthepreviouscorresponding
halfyearperiodof$11,588,400operatingrevenues. Revenuefromordinaryactivitiesincreaseddue
toorganicgrowthwithinexistingmemberfirms.
Thefollowingtablesummarisesresultsfortheperiod,theFullYear2010,andeachofthehalfyears
of2010.
RESULTSSUMMARY
FirstHalf
2011$m
FullYear
2010$m
SecondHalf
2010$m
FirstHalf
2010$m
Operatingrevenue 13.62 23.87 12.28 11.59
Netprofitaftertax 0.76 0.85 0.47 0.38
Earningspershare 0.86cents 1.18cents 0.62cents 0.56cents
Dividendpershare 0.30cents 0.75cents 0.50cents 0.25cents
Operatingcashinflows 1.03 1.45 1.26 0.19
Nettangibleassetbackingpershare 6.98cents 6.54cents 6.54cents 5.87cents
Debt/equityratio 8% 11% 11% 18%
Forthehalfyearended31December2010,theconsolidatedentitygeneratedanetprofitaftertax
of$755,906
compared
to
afull
year
2010
net
profit
after
tax
of
$853,494,
$467,731
for
the
half
yearended30June2010andahalfyearended31December2009netprofitaftertaxof$385,763.
Earningspershare fortheperiodwere0.86centspershare,comparedtotheyearended30 June
2010of1.18cents(30June2010halfyear:0.62cents;31December2009halfyear:0.56cents).
Operating cash flows for the period were positive at $1,029,230, compared with operating cash
inflowsof$1,448,173forthefullyear2010and$190,150forthe31December2009halfyear.
The Company has maintained a strong balance sheet with bank loans of $0.95m at 31 December
2010(30June2010:$0.95m;31December2009:$1.85m). Thisrepresentsadebttoequityratioof
8%
(30
June
2010:
11%;
31December
2009:
18%).
The
Companys
existing
working
capital
bank
facilityhasalimitofupto$3.15m.
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
7/31
INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALF-YEARENDED
31DECEMBER2010
ACN120394194
DirectorsReport
3
TheGroup
has
declared
afully
franked
interim
dividend
of
0.30
cents
with
respect
to
the
financial
yearended30June2011(2010interimdividend:0.25cents). Thedividendwillhavearecorddateof
11April2011andapaymentdateof2May2011. TheGroupoperatesadividendreinvestmentplan.
The dividend policy of the Company is that dividends will be declared after consideration of the
performanceoftheCompanyincludingcashflowsandfutureinvestmentopportunities.
TheDirectorsarepleasedwiththefirsthalfresultsandwiththecontinuedstrategicandoperational
progressthathasbeenmade.
Theperiodwashighlightedbycontinuedstrongorganicgrowthgeneratedbythememberfirms.
ACQUISITIONOFWOJTOWICZKELLYLEGAL
InDecember2010theCompanyannouncedtheacquisitionofWojtowiczKellyLegal (WK)under
merger arrangements with the existing member firm Brett Davies Lawyers (incorporating Law
Central)(BDL).
WKisanestablishedandwellregardedPerthCBDbasedcommerciallawfirmdeliveringservicesto
commercial enterprises and private individuals predominantly in Western Australia, but also to
enterprisesbasedinSoutheastAsiawithAustralianinterests.
WK was established in 1994 and has developed a range of legal services including corporate and
commercial,
property,
litigation,
family,
migration
advice,
local
government
law
and
settlements
(conveyancing).
WKalsohasanofficeinRockinghamsouthofPerth,andarepresentativeofficeinSingapore.
ThefirmconsistsofthreePartners,GavanKelly,AnthonyQuaheandJohnWojtowicz,with40staff,
andannualfeeincomeofapproximately$5.3m.
WK will merge with existing member firm BDL, with the merged firm having four Principals,
approximately54staffandannualfeeincomeofmorethan$7.5m.
The
Directors
expect
the
transaction
to
be
materially
EPS
positive
in
the
2012
financial
year
and
will
enhancetheCompanysgrowthprospects.
InaccordancewiththeCompanysacquisitionmodel,debtorsandworkinprogressarenotacquired
aspartoftheacquisition.Consequently,theDirectorsnotethattheCompanywillinvestfundsfrom
operations in the build up of working capital (including debtors and work in progress) to normal
levelspostacquisition.
OUTLOOK
TheDirectorsconsidertheCompanytobewellplacedforthefuture,inparticularnoting:
The
Company
has
good
businesses
with
strong
market
positions
and
growth
prospects.
The Company is successfully building a strong culture of likeminded people with common
aspirationsforabovemarketgrowth,businessimprovementandworkingtogether.
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
8/31
INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALF-YEARENDED
31DECEMBER2010
ACN120394194
DirectorsReport
4
TheCompanyhasdemonstratedanabilitytoachievestrongandconsistentrevenuegrowth.
IntegratedLegalHoldingsLimitedwasnominatedthefastestgrowinglegalfirmbyfeeincomein
Australia in2009andthesecond fastestgrowing legal firm in2010 (source:AustralasianLegal
Business). Additionally,theGroupwasrankedfifthinBRWsThe2010FastStartersList.
OrganicandacquisitiongrowthopportunitiesfortheGroupandformemberfirms.
TheCompanyhasastrongbalancesheetandavailablefundingforfurtheracquisitions.
Scopefor
business
performance
improvement
in
all
member
firms,
providing
an
opportunity
for
theCompanytoincreaseprofitabilityovertime.
Inparticular,anopportunityexiststoincreaseprofitabilitybyachievingincreasedscaleatbotha
Groupandmemberfirmlevel.
Atagrouplevelthismeanssecuringmorememberfirmstosharethefixedoverheadburdenof
Corporate. And,atamemberfirmlevel,thismeansachievingorganicandacquisitiongrowthto
utiliseexistingpremises,andtosharethemanagementandinfrastructurecoststhatthesefirms
nowhaveinplace.
TheDirectors
consider
that
long
term
competitive
advantage
can
be
achieved
by
the
Company
in
supportingmemberfirmsindevelopingscaletounderpinfuturegrowthandprofitability.
TheeffectivedeliveryoftheCompanysstatedstrategyofdevelopinganationalnetworkofleading
medium sized law firms will take time. The Company remains focused on incrementally and
selectivelybuyinggoodbusinesseswithlikemindedpeopleandworkingwiththemtowardsquality
andsustainablegrowthandimprovement.
Consistent with this position, the outlook for the Group is positive and the Directors expect the
Companytoachieveearningspersharegrowth for2011,providingreasonablebusinessconditions
continueforthesecondhalf.
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
9/31
INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALF-YEARENDED
31DECEMBER2010
ACN120394194
DirectorsReport
5
AUDITORSINDEPENDENCEDECLARATION
A copy of the auditors independence declaration in relation to the review for the halfyear is
providedonpage25andformspartofthisreport.
Signedinaccordancewitharesolutionofthedirectors.
GFowler
ManagingDirector
Perth,24February2011
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
10/31
INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALF-YEARENDED
31DECEMBER2010
ACN120394194
ConsolidatedStatementofFinancialPosition
TheaboveConsolidatedStatementofFinancialPositionshouldbereadinconjunctionwiththe
accompanyingnotes.
6
Consolidated Consolidated
Note
Asat
31Dec2010
Asat
30June2010
ASSETS $ $
Currentassets
Cashandcashequivalents 5 2,118,898 2,151,449
Tradeandotherreceivables 6 6,888,519 7,538,870
Workinprogress 1,669,072 1,353,354
Totalcurrentassets 10,676,489 11,043,673
Noncurrent
assets
Plantandequipment 1,152,899 1,181,314
Prepayments 29,230 29,230
Goodwill 7 10,470,600 10,470,600
Intangibleassets 8 47,520 65,340
Deferredtaxassets 149,420 101,089
Availableforsalefinancialassets 3,274 2,642
Totalnoncurrentassets 11,852,943 11,850,215
TOTALASSETS 22,529,432 22,893,888
LIABILITIES
Currentliabilities
Tradeandotherpayables 2,903,394 3,317,157
Interestbearingloansandborrowings 9 1,212,205 1,573,325
Incometaxpayable 341,864 177,524
Provisions 727,217 687,057
Otherliabilities 10 82,489 279,933
Totalcurrentliabilities 5,267,169 6,034,996
Noncurrentliabilities
Tradeandotherpayables 37,554 75,107
Interestbearingloansandborrowings 9 176,082 260,913
Provisions
240,198
197,350Otherliabilities 10 86,364 127,608
Totalnoncurrentliabilities 540,198 660,978
TOTALLIABILITIES 5,807,367 6,695,974
NETASSETS 16,722,065 16,197,914
EQUITY
Issuedcapital 11 32,369,596 32,160,426
Accumulatedlosses (16,612,239) (16,688,184)
Reserves 12 964,708 725,672
TOTALEQUITY 16,722,065 16,197,914
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
11/31
INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALF-YEARENDED
31DECEMBER2010
ACN120394194
ConsolidatedStatementofComprehensiveIncome
TheaboveConsolidatedStatementofComprehensiveIncomeshouldbereadinconjunctionwith
theaccompanyingnotes.
7
Consolidated Consolidated
Note
Halfyear
ended
31Dec2010
Halfyear
ended
31Dec2009
$ $
Professionalfeesrevenue 13,537,017 11,566,053
Interestrevenue 78,756 11,996
Dividendsreceived 72 50
Otherrevenue 4 989 10,301
Totalrevenue 13,616,834 11,588,400
Occupancyexpenses (1,091,440) (1,054,668)
Salariesandemployeebenefitsexpenses (8,716,908) (7,788,993)
Depreciationandamortisationexpenses (193,400) (151,887)
Officeexpenses (1,492,467) (1,769,227)
Advertisingandmarketingexpenses (160,364) (118,382)
Otherexpenses (774,690) (36,192)
Interestexpenses (55,198) (87,360)
Sharebasedpaymentsexpense 16 (17,844) (9,702)
Totalexpenses (12,502,311) (11,016,411)
Profitbeforeincometax 1,114,523 571,989
Incometax
expense
(358,617)
(186,226)
Profitafterincometax 755,906 385,763
Netprofitfortheperiod 755,906 385,763
Othercomprehensiveincome
Netgains/(losses)onavailableforsalefinancialassets 631 102
Othercomprehensiveincomefortheperiod,netoftax 756,537 385,865
Totalcomprehensiveincomefortheperiod 756,537 385,865
Basicearningspershare(cents) 0.86 0.56
Dilutedearnings
per
share
(cents)
0.86
0.56
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
12/31
INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALF-YEARENDED
31DECEMBER2010
ACN120394194
ConsolidatedStatementofCashFlows
TheaboveConsolidatedStatementofCashFlowsshouldbereadinconjunctionwiththe
accompanyingnotes.
8
Consolidated Consolidated
Note
Halfyear
ended
31Dec2010
Halfyear
ended
31Dec2009
$ $
Cashflowsfromoperatingactivities
Receiptsfromcustomers 15,171,446 11,408,374
Paymentstosuppliersandemployees (13,950,215) (11,371,200)
Interestreceived 78,756 11,996
Sundryincome 1,061 10,337
Interestand
other
costs
of
finance
paid
(29,210)
(58,718)
Incometax(paid)/refund (242,608) 189,361
Netcashflowsfromoperatingactivities 1,029,230 190,150
Cashflowsfrominvestingactivities
Purchaseofplantandequipment (147,166) (743,040)
Proceedsfromthedisposalofplantandequipment - 3,150
Netcashflowsusedininvestingactivities (147,166) (739,890)
Cashflowsfromfinancingactivities
Paymentforshareissueexpenses (3,674) (1,694)
Proceedsfrom
borrowings
-674,664
Repaymentsofborrowings (293,065) (410,767)
Paymentofdividends (441,556)
Netcashflows(usedin)/fromfinancingactivities (738,295) 262,203
Netincrease/(decrease)incashheld 143,769 (287,537)
Cashandcashequivalentsatthebeginningofthe
period 1,948,949 465,875
Cashandcashequivalentsattheendoftheperiod 5 2,092,718 178,338
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
13/31
INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALF-YEARENDED
31DECEMBER2010
ACN120394194
ConsolidatedStatementofChangesinEquity
TheaboveConsolidatedStatementofChangesinEquityshouldbereadinconjunctionwiththe
accompanyingnotes.
9
CONSOLIDATED
Issued
Capital
Accumulated
Losses
Net
Unrealised
GainsReserve
General
Reserve
Total
Equity
$ $ $ $ $
At1July2009 30,504,813 (16,641,034) (1,373) 13,862,406
Profitfortheperiod 385,763 385,763
Othercomprehensive
income 102 102
Totalcomprehensive
incomefor
the
period
385,763 102
385,865
Transactionswithowners
intheircapacityasowners
Transfertogeneralreserve (727,113) 727,113
Transactioncostsonshare
issue (1,694) (1,694)
Sharebasedpayments 9,702 9,702
Balanceasat31December
2009 30,512,821 (16,982,282) (1,271) 727,113 14,256,279
CONSOLIDATED
Issued
Capital
Accumulated
Losses
Net
Unrealised
GainsReserve
General
Reserve
Total
Equity
$ $ $ $ $
At1July2010 32,160,426 (16,688,184) (1,441) 727,113 16,197,914
Profitfortheperiod 755,906 755,906
Othercomprehensive
income 631 631
Totalcomprehensive
incomefortheperiod 755,906 631 756,537
Transactions
with
owners
intheircapacityasowners
Dividendspaid (441,556) (441,556)
Transfertogeneralreserve (238,405) 238,405
Sharesissued 195,000 195,000
Transactioncostsonshare
issue (3,674) (3,674)
Sharebasedpayments 17,844 17,844
Balanceasat31December
2010 32,369,596 (16,612,239) (810) 965,518 16,722,065
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
14/31
INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALF-YEARENDED
31DECEMBER2010
ACN120394194
NotestotheConsolidatedFinancialStatements
10
1)
CORPORATEINFORMATION
ThegeneralpurposecondensedfinancialreportofIntegratedLegalHoldingsLimited(theCompany)
forthehalfyearended31December2010wasauthorisedforissueinaccordancewitharesolution
oftheDirectorson24February2011. IntegratedLegalHoldingsLimitedisacompanyincorporated
inAustraliaandlimitedbyshares,whicharepubliclytradedontheAustralianStockExchange(ASX).
2)
BASISOFPREPARATIONANDACCOUNTINGPOLICIES
Basisofpreparation
This general purpose condensed financial report for the halfyear ended 31 December 2010 has
beenprepared
in
accordance
with
AASB
134
Interim
Financial
Reporting
and
the
Corporations
Act
2001.
The halfyear financial report does not include all notes of the type normally included within the
annualfinancialreportandthereforecannotbeexpectedtoprovideasfullanunderstandingofthe
financial performance, financial position and financing and investing activities of the consolidated
entityasthefullfinancialreport.
Itisrecommendedthatthehalfyearfinancialreportbereadinconjunctionwiththeannualreport
fortheyearended30June2010andconsideredtogetherwithanypublicannouncementsmadeby
IntegratedLegalHoldingsLimitedanditscontrolledentities(theGroup)duringthehalfyearended
31December
2010
in
accordance
with
the
continuous
disclosure
obligations
under
the
ASX
Listing
Rules.
Thehalfyearfinancialreport isprepared inAustraliandollarsandonahistoricalcostbasis,except
foravailableforsaleinvestments,whichhavebeenmeasuredatfairvalue.
For the purposes of preparing the halfyear financial report, the halfyear has been treated as a
discretereportingperiod.
Significantaccountingpolicies
Apart fromthechanges inaccountingpolicynotedbelow,theaccountingpoliciesandmethodsof
computationare
the
same
as
those
adopted
in
the
most
recent
annual
financial
statements.
Changesinaccountingpolicy
From1 July2010, theGrouphasadoptedallAustralianAccountingStandardsand Interpretations,
mandatoryforannualperiodsbeginningonorafter1July2010. Adoptionofthesestandardsand
interpretationsdidnothaveaneffectonthefinancialpositionorperformanceoftheGroup.
TheGrouphaselectednottoearlyadoptanynewstandardsoramendmentsthatareissuedbutnot
yeteffective.
Basisofconsolidation
The halfyear consolidated financial statements comprise the financial statements of IntegratedLegalHoldingsLimitedanditssubsidiariesasat31December2010.
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
15/31
INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALF-YEARENDED
31DECEMBER2010
ACN120394194
NotestotheConsolidatedFinancialStatements
11
Subsidiariesare
all
those
entities
(including
special
purpose
entities)
over
which
the
Group
has
the
power togovern the financialandoperating policiessoas toobtainbenefits from theiractivities.
Theexistenceandeffectofpotentialvotingrightsthatarecurrentlyexercisableorconvertibleare
consideredwhenassessingwhetheragroupcontrolsanotherentity.
3)
SEGMENTINFORMATION
Identificationofreportablesegments
TheGrouphasidentifieditsoperatingsegmentsbasedontheinternalreportsthatarereviewedand
used by the executive management team (the chief operating decision maker) in assessing
performanceand
in
determining
the
allocation
of
resources.
The operating segments are identified by management based on how the financial and operating
resultsoftheGrouparemonitoredandpresentedinternallytotheexecutivemanagementteam.
Thereportablesegmentsareidentifiedbymanagementbasedonthenatureofthebusinessandthe
similarities of services provided, method of delivery and type of clients as the Groups risks and
returnsareaffectedpredominantlybydifferencesinlegalproductsandservicesperformed.
Theoperatingbusinessesareorganisedandmanagedseparatelyaccordingtothenatureofthelegal
productsandservicesprovided,witheachsegmentrepresentingastrategicbusinessunitthatoffers
differentlegal
products
and
serves
different
markets.
Thefollowingreportablesegmentshavebeenidentifiedbymanagement:
LegalServicesDivision
OperatoroflegalpracticesthroughoutAustralia
InformationTechnologyDivision
Provides an internet portal designed to provide easy access to a range of legal and other
documentstothe legalprofessionandpublicalikeand informationaboutvariousareasof
law.
Accountingpoliciesandintersegmenttransactions
TheaccountingpoliciesusedbytheGroup inreportingsegments internallyarethesameasthose
containedinnote1totheaccountsandinthepriorperiodexceptasdetailedbelow:
Intersegmentsales
Intersegmentsalesarerecognisedatcostwithnomarginbuiltintotheintersegmenttransactions,
andaimstoencourageintersegmentworkreferrals.
Unallocatedrevenueandassets
Corporateitemsarenotallocatedtooperatingsegmentsastheyarenotconsideredpartofthecore
operationsof
any
segments.
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
16/31
INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALF-YEARENDED
31DECEMBER2010
ACN120394194
NotestotheConsolidatedFinancialStatements
3)SEGMENT
INFORMATION
(continued)
12
Reportablesegments
The following table presents revenue and profit information for reportablesegments for the half
yearsended31December2010and31December2009.
Halfyearended31December2010
Legal
Services
$
Information
Technology
$
Total
$
Revenue
Professionalfees 13,116,222 420,795 13,537,017
Interestrevenue
40,501
40,501
Otherrevenue:
Advertisingrevenue 989 989
Intersegmentrevenue
Totalsegmentrevenue 13,156,723 421,784 13,578,507
Unallocatedrevenue:
Interestreceived 38,255
Dividendsreceived 72
Totalunallocatedrevenue 38,327
Intersegmentelimination
Totalrevenueperstatementof
comprehensiveincome
13,616,834
Result
Segmentresult 1,804,293 133,203 1,937,496
Reconciliationofsegmentnetprofitbeforetax
tonetprofitaftertax
Incometaxexpenseat30%(2009:30%) (358,617)
Unallocateditems:
Interestrevenue 38,255
Salariesandemployeebenefits
expenses (465,639)
Administrativeexpenses
(304,109)
Otherunallocateditems (36,282)
Financecosts (55,198)
Netprofitaftertaxperthestatementof
comprehensiveincome 755,906
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
17/31
INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALF-YEARENDED
31DECEMBER2010
ACN120394194
NotestotheConsolidatedFinancialStatements
3)SEGMENT
INFORMATION
(continued)
13
Totalassetshavedecreasedby3% since the last annual report. Segment assets for thehalfyear
ended31December2010areasfollows:
Asat31December2010
Legal
Services
$
Information
Technology
$
Total
$
Segmentassets
Segmentoperatingassets 19,008,828 2,144,635 21,153,463
Unallocatedassets:
Cashand
cash
equivalents
2,066,246
Deferredtaxassets 131,863
Prepayments 40,558
Investmentinassociates 4
Availableforsalefinancialassets 3,274
Plantandequipment 3,901
Totalunallocatedassets 2,245,846
Intersegmenteliminations (869,877)
Totalassetsperstatementoffinancialposition 22,529,432
Totalassetsforthehalfyearended31December2010hadnotmateriallychangedfromthe30June
2010annual
report
and
therefore
comparatives
for
segment
assets
have
not
been
provided.
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
18/31
INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALF-YEARENDED
31DECEMBER2010
ACN120394194
NotestotheConsolidatedFinancialStatements
3)SEGMENT
INFORMATION
(continued)
14
Halfyearended31December2009
Legal
Services
$
Information
Technology
$
Total
$
Revenue
Professionalfees 11,176,517 389,536 11,566,053
Interestrevenue 526 526
Otherrevenue:
Advertisingrevenue 7,372 7,372
Sundryrevenue 954 1,975 2,929
Intersegment
revenue
5,765
5,765
Totalsegmentrevenue 11,183,762 398,883 11,582,645
Unallocatedrevenue:
Interestreceived 11,470
Dividendsreceived 50
Totalunallocatedrevenue 11,520
Intersegmentelimination (5,765)
Totalrevenueperstatementof
comprehensiveincome 11,588,400
Result
Segmentresult
1,191,118 110,045
1,301,163
Reconciliationofsegmentnetprofitbeforetax
tonetprofitaftertax
Incometaxexpenseat30%(2008:30%) (186,226)
Unallocateditems:
Salariesandemployeebenefits
expenses (406,361)
Officeexpenses (238,379)
Otherunallocateditems 2,926
Financecosts (87,360)
Netprofitaftertaxperthestatementof
comprehensiveincome
385,763
Segmentassets
Segmentoperatingassets 17,843,553 2,155,205 19,998,758
Unallocatedassets:
Cashandcashequivalents 176,256
Deferredtaxassets 245,740
Prepayments 118,723
Investmentinassociates 712,888
Availableforsalefinancialassets 2,794
Plantandequipment 4,161
Totalunallocated
assets
1,260,562
Intersegmenteliminations (717,537)
Totalassetsperstatementoffinancialposition 20,541,783
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
19/31
INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALF-YEARENDED
31DECEMBER2010
ACN120394194
NotestotheConsolidatedFinancialStatements
15
4)
OTHERREVENUE
Consolidated Consolidated
Halfyear
ended
31Dec2010
Halfyear
ended
31Dec2009
$ $
Sundryincome 989 10,301
5) CASHANDCASHEQUIVALENTS
Consolidated Consolidated
At31Dec2010
At
30Jun2010
$ $
Cashatbankandinhand 2,118,898 2,151,449
Consolidated Consolidated
Halfyear
ended
31Dec2010
Halfyear
ended
31Dec2009
$ $
Reconciliation
to
statement
of
cash
flows
Forthepurposesofthestatementofcashflows,cashandcash
equivalentscomprisethefollowingat31December:
Cashatbankandinhand 2,118,898 249,796
Bankoverdrafts (26,180) (71,458)
2,092,718 178,338
6)
TRADEANDOTHERRECEIVABLES
Consolidated Consolidated
At
31Dec
2010
At
30Jun
2010
CURRENT $ $
Tradereceivables 6,573,069 6,854,442
Allowanceforimpairmentloss(a) (512,018) (133,006)
6,061,051 6,721,436
Unbilledclientdisbursements 257,942 190,847
Prepayments 548,150 589,361
Otherreceivables 21,376 37,226
6,888,519 7,538,870
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
20/31
INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALF-YEARENDED
31DECEMBER2010
ACN120394194
NotestotheConsolidatedFinancialStatements
16
a)
Allowanceforimpairmentloss
Trade receivables are generally noninterest bearing and are generally on 3060 day terms. An
allowance for impairment loss is recognised when there is objective evidence that an individual
trade receivable is impaired. An impairment loss of $551,497 (30 June 2010: $274,365 and 31
December2009:$159,851)hasbeenrecognisedbytheGroupinthecurrentperiodwhich includes
bad debts expense recognised of $172,485 (30 June 2010: $246,197 and 31 December 2009:
$47,241). Theseamountshavebeenrecognised inthestatementofcomprehensive income inthe
lineitemotherexpenses.
Movementsintheallowanceforimpairmentlosswereasfollows:
Consolidated
ConsolidatedAt
31Dec2010
At
30Jun2010
$ $
Openingbalanceatthebeginningoftheperiod 133,006 104,839
Chargefortheperiod 379,012 28,167
Closingbalanceattheendoftheperiod 512,018 133,006
7) GOODWILL
Consolidated Consolidated Consolidated
At31Dec2010 At30Jun2010 At31Dec2009
$ $ $
Openingbalance 10,470,600 10,372,263 10,372,263
Acquisitionofsubsidiary 48,976
Deferredconsideration 98,337
Closingbalance 10,470,600 10,470,600 10,421,239
a)
DescriptionoftheGroupsgoodwill
After initial recognition,goodwillacquired ina businesscombination is measured atcost less any
accumulated impairment losses. Goodwill isnotamortisedbut issubjectto impairmenttestingon
anannualbasisorwheneverthereisanindicationofimpairment.
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
21/31
INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALF-YEARENDED
31DECEMBER2010
ACN120394194
NotestotheConsolidatedFinancialStatements
17
8)
INTANGIBLEASSETS
a) Reconciliationofcarryingamountsatthebeginningandendoftheperiod
Consolidated Consolidated Consolidated
At
31Dec2010
At
30Jun2010
At
31Dec2009
$ $ $
Openingbalance
(netofaccumulatedamortisation) 65,340 100,980 136,620
Amortisation
(17,820)
(35,640)
(53,460)Closingbalance
(netofaccumulatedamortisation) 47,520 65,340 83,160
Consolidated Consolidated Consolidated
At
31Dec2010
At
30Jun2010
At
31Dec2009
$ $ $
Cost(grosscarryingamount) 163,254 163,254 163,254
Accumulatedamortisation (115,734) (97,914) (80,094)
Netcarrying
amount
at
the
end
of
the
period
47,520
65,340
83,160
b) DescriptionoftheGroupsidentifiedintangibleassets
Intangibleassetsrepresentthevalueof leasedpremisesacquiredupontheacquisitionofthe legal
practiceofPeterMarks in the30 June2008 financial yearand iscarriedatcost lessaccumulated
amortisation. This intangibleassethasbeenassessedashavingafinite lifeand isamortisedusing
the straight line method over the remaining term of the lease. The amortisation has been
recognised in the statement of comprehensive income in the line item depreciation and
amortisationexpenses.
9)
INTERESTBEARING
LOANS
AND
BORROWINGS
Consolidated Consolidated
At
31Dec2010
At
30Jun2010
$ $
CURRENT
Bankoverdraft 26,180 202,500
Obligationsunderfinanceleasesandhirepurchasecontracts 167,649 176,811
Insurancepremiumfunding(unsecured) 68,376 244,014
Bankloan(secured) 950,000 950,000
1,212,205
1,573,325
NONCURRENT
Obligationsunderfinanceleasesandhirepurchasecontracts 176,082 260,913
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
22/31
INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALF-YEARENDED
31DECEMBER2010
ACN120394194
NotestotheConsolidatedFinancialStatements
18
10)
OTHERLIABILITIES
Consolidated Consolidated
At
31Dec2010
At
30Jun2010
$ $
CURRENT
Deferredconsiderationpayable 197,444
Leaseincentiveobligation(1) 82,489 82,489
82,489 279,933
NONCURRENT
Leaseincentiveobligation(1) 86,364 127,608
(1) Operating lease incentives are recognised as a liability when received and subsequently reduced by allocating lease
paymentsbetweenrentalexpenseandreductionofthe liabilitytoensurerentalexpense isrecognisedonastraight
linebasisovertheleaseterm.
11)
ISSUEDCAPITAL
a) Ordinaryshares
Consolidated Consolidated Consolidated Consolidated
31Dec2010 30Jun2010 31Dec2010 30Jun2010
Shares Shares $ $
Fullypaidshares 88,037,999 86,139,666 32,317,671 32,126,345
Partlypaidshares(1) 856,217 371,667 51,925 34,081
Forfeitedsharesheldintrust(2) (26,667)
88,894,216 86,484,666 32,369,596 32,160,426
(1)SharesissuedundertheDeferredEmployeeSharePlanthatvestoverthreeyears(note16).
(2)SharesissuedbutforfeitedundertheDeferredEmployeeSharePlan,heldintrust(note16).
b)
Movementsinordinarysharecapital
Consolidated Shares $
Openingbalanceasat1July2010 86,484,666 32,160,426
IssueofsharesundertheDeferredEmployeeSharePlan
(refernote16) 484,550 17,844
Issue of shares at 10 cents per share to vendors of The
Argyle Partnership Lawyers in final satisfaction of
deferredconsiderationpayableon22September2010 1,800,000 180,000
Issueofsharesat12centspershare inpartsatisfaction
of2010
Principal
profit
share
entitlement
125,000
15,000
Costsassociatedwithissuingshares (3,674)
Balanceasat31December2010 88,894,216 32,369,596
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
23/31
INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALF-YEARENDED
31DECEMBER2010
ACN120394194
NotestotheConsolidatedFinancialStatements
19
Consolidated Shares $
Openingbalanceasat1July2009 69,346,178 30,504,813
Costsassociatedwithissuingshares (1,694)
IssueofsharesundertheDeferredEmployeeSharePlan
(refernote16) 66,667 9,702
Balanceasat31December2009 69,412,845 30,512,821
12)RESERVES
Consolidated Consolidated
At
31Dec2010
At
30Jun2010
$ $
Netgains/(losses)onavailableforsalefinancialassets(a) (810) (1,441)
Generalreserve(b) 965,518 727,113
964,708 725,672
a)
Netunrealisedgainsreserve
Thisreserverecordsmovementsinthefairvalueofavailableforsalefinancialassets.
b)
Generalreserve
Due to accumulated losses incurred prior to the listing of the company on 17 August 2007, the
Directors resolved to isolate profits derived from trading activities since listing through the
establishmentofaGeneralReserve.
During the period, $238,405, representing trading profits for the year ended 30 June 2010 less
dividendspaid,wastransferredtotheGeneralReservefromAccumulatedLosses.
AccumulatedlossesincurredpriortolistingoftheCompanyandcommencementoftradingactivities
arosefrom
the
following
transactions:
(a)
impairment losses incurredonshares issuedtovendorsofTalbotOlivierBusinessAssets,Brett
DaviesLawyersBusinessAssetsandLawCentralCoPtyLtdshareholderson29August2006;and
(b)
Sharebasedpaymentsexpenses forshares issuedatadeemedvalueof50centspershareto
directorsandsupporterson29August2006and28February2007.
13)
CONTINGENTLIABILITIESANDCONTINGENTASSETS
Therearenocontingentliabilitiesorassetsasat31December2010.
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
24/31
INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALF-YEARENDED
31DECEMBER2010
ACN120394194
NotestotheConsolidatedFinancialStatements
20
14)
SUBSEQUENTEVENTS
a) AcquisitionoflegalpracticeofWojtowiczKellyLegal
On1February2011theCompanyacquiredthelegalpracticeofWojtowiczKellyLegal(incorporating
CivicLegal,theSimpsonKellyGroup,GibsonTovey&Associates,AllPropertyConveyancingandJan
Simpson Settlements) under merger arrangements with the existing member firm Tax Lawyers
AustraliaPtyLtdtradingasBrettDaviesLawyers.
The merged business will trade as Civic Legal. The four Principals (Anthony Quahe, Brett Davies,
Gavan Kelly, and John Wojtowicz), all of whom are committed to growing the merged business
withinthe
Integrated
Group,
will
act
as
the
senior
management
team
for
the
business.
Underthemergerplans,theCompanysexistingBDLbusinesswillberelocatedandintegratedinto
thenearbyofficesofWojtowiczKellyLegal.
TheDirectorsexpectthetransactiontobemateriallyEPSpositiveinthe2012financialyearandwill
enhancetheCompanysgrowthprospects.
The consideration for the transaction is a combination of the issue of 5.7m shares on 1 February
2011 and an upfrontcash paymentof$924,000 (funded from surpluscash reserves). $125,000 in
deferredcashconsiderationispayableinJuly2011.
Additionally, under the merger agreement, a maximum of $600,000 and minimum of nil in
contingentcashconsiderationmaybepayable inSeptember2013subject tothemergedbusiness
achieving agreed profitability (NPBT) targets in the financial years ended 2012 and 2013. The
contingentconsiderationwillbesettledincashorsharesatthediscretionoftheBoard.
TheDirectorsconsiderthatthecontingentconsiderationwillsupportandfosteraunitedPrincipal
group environment for the merged firm, by incentivising teamwork in the realisation of merger
revenueandcostsynergies.
The contingent consideration has been formulated using Integrated Legal Holdings Limiteds
minimum
expectations
as
a
base
(ie
the
deferred
consideration
is
only
payable
on
outperformance
abovetheseminimumexpectations).
Furthermore, any contingent consideration will only be payable following the achievement of
minimumexpectedlockup(WIPanddebtors)performancebythefirm.
Theacquisitionisstructuredwithsignificantemploymentconstraintsandconditions,consistentwith
theCompanysdisciplinedacquisitionmodelandstrictcriteria.
Atthedateofthisreport,initialaccountingforthebusinessacquisitionhasnotyetbeendetermined
withthefairvalueassessmentoftheidentifiedassetsandliabilitiesacquiredatacquisitionandthe
estimateofthefairvalueofthecontingentconsiderationtobefinalised.Asaresult,itisnotpossible
todisclosethefairvalueoftheidentifiedassetsandliabilitiesthatwillberecognisedat1February
2011, the acquisition date, fair value of consideration transferred or to calculate the value of
goodwill.
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
25/31
INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALF-YEARENDED
31DECEMBER2010
ACN120394194
NotestotheConsolidatedFinancialStatements
21
b)
Interimdividend
The directors have declared an interim dividend in respect of the year ended 30 June 2011, as
discussedinnote15.
15)
INTERIMDIVIDENDDETAILS
Amountpershare 0.30cents
Amountfranked Fullyfrankedata30%taxrate
Recorddatetodetermineentitlementstothedividend 11April2011
Datethe
interim
dividend
is
payable
2May
2011
DividendReinvestmentPlan
The Company operates a dividend reinvestment plan (DRP) which offers eligible shareholders the
opportunitytoreinvestallorpartoftheirdividends inadditionalshares intheGroup. TheShares
areissuedata5%discounttotheweightedaveragemarketpriceofsharessoldontheASXduringa
period of10 tradingdays (rounded to the nearesthalf cent),with theperiodcommencingon the
secondtradingdayafterthedividendrecorddate.
ThelastdateforreceiptofanelectionnoticeforparticipationintheDRPwithrespecttotheabove
interimdividendis18April2011.
16)
SHAREBASEDPAYMENTS
a) Recognisedsharebasedpaymentsexpense
Theexpense recognised foremployeeservices receivedduring thehalfyear isshown in the table
below:
Consolidated Consolidated
31Dec2010 31Dec2009
$ $
Expensearising
from
equity
settled
share
based
transactions
17,844
9,702
b) Typesofsharebasedpaymentplans
Taxexemptemployeeshareplan(TEESP)
AllemployeesareeligibletoparticipateintheTEESPiftheymeetthefollowingcriteria:
i. TheyareapermanentfulltimeorpermanentparttimeemployeeoftheGroup;
ii.
Theyhavemettheprobationperiodunderthetermsoftheiremploymentcontract;
iii.
Theyareatleast18yearsofage;and
iv.
TheyareanAustralianresidentfortaxpurposes.
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
26/31
INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALF-YEARENDED
31DECEMBER2010
ACN120394194
NotestotheConsolidatedFinancialStatements
22
Employeeswho
participate
in
the
TEESP
can
nominate
to
contribute
up
to
$1,000
per
annum
from
their pretax wages or salary by way of an effective salary sacrifice towards acquiring fully paid
ordinarysharesintheCompany.
InaccordancewiththerulesoftheTEESP,sharesacquiredundertheplanmustnotbewithdrawnor
otherwise dealt with, commencing from the date the employee acquires a beneficial interest in
thosesharesuntiltheearliestofthedatethat:
i. Isthreeyearsaftertheacquisitiondate;or
ii. TheemployeeceasestobeanemployeeoftheGroup.
The
rules
of
the
TEESP
do
not
contain
any
provisions
that
could
result
in
an
employee
forfeitingownershipofsharesundertheplan.
Deferredemployeeshareplan(DESP)
Shares are granted to key employees and directors of the Group. The DESP is designed to align
participantsinterestswiththoseofshareholdersbyincreasingthevalueoftheCompanysshares.
EmployeesareeligibletoparticipateintheDESPiftheymeetthefollowingcriteria:
i.
TheyareapermanentfulltimeorpermanentparttimeemployeeoftheGroup;
ii. Theyhavemettheprobationperiodunderthetermsoftheiremploymentcontract;
iii.
They
are
at
least
18
years
of
age;
and
iv.
TheyareanAustralianresidentfortaxpurposes.
UndertheDESP,senioremployeesare invitedtoreceivefullypaidordinaryshares intheCompany
subject to the achievement of a number of key performance indicators such as contribution to
earningspersharefortheGroup.
SharesmayeitherbeacquiredonmarketbytheGrouporissuedbytheParent. Duringthehalfyear
ended31December2010,484,550shares(30June2010:40,000shares)weregrantedbytheParent
withthecostbeingexpensedoveravestingperiodofthreeyears. Thefairvalueofthesharesisset
atthemarketpriceofthesharesonthedateofgrant. Theimpactontheprofitandlossforthehalf
year
ended
31
December
2010
is
$17,844
(31
December
2009:
$9,702).
Whenaparticipantceasesemploymentpriortothevestingoftheirshares,thesharesareforfeited
in full unless otherwise determined by the Board. In the event of a change of control, the
performance period end date will be brought forward to the date of the change of control and
awardswillvestsubjecttoperformanceoverthisshortenedperiod.
Therearenocashsettlementalternatives.
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
27/31
INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALF-YEARENDED
31DECEMBER2010
ACN120394194
NotestotheConsolidatedFinancialStatements
23
c)
Summaryof
shares
granted
under
TEESP
and
DESP
arrangements
NosharesweregrantedundertheTEESPduringthehalfyearended31December2010.
The following table illustrates the number ofandmovements in sharesgranted during theperiod
undertheTEESPandtheDESP:
Consolidated Consolidated
31Dec2010 31Dec2009
No. No.
TEESP:
Openingbalanceat1July 252,672 255,842
Transferred
to
departed
employees
during
the
period
(1)
Closingbalanceasat31December 252,672 255,842
DESP:
Openingbalanceat1July 371,667 331,667
Grantedduringtheperiod 484,550 40,000
Closingbalanceasat31December 856,217 371,667
(1) Sharesare transferredout ofanemployee trust into theemployeesnameon terminationof
employment.
d)
Weightedaverageremainingvestingperiod
Theweightedaverageremainingvestingperiodasat31December2010forthesharesissuedis1.73
years(30June2010:1.23years).
e)
Weightedaveragefairvalue
Theweightedaveragefairvalueofsharesgrantedduringtheperiodwas12.4cents(30June2010:
15.5cents).
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
28/31
INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALF-YEARENDED
31DECEMBER2010
ACN120394194
DirectorsDeclaration
24
InaccordancewitharesolutionoftheDirectorsofIntegratedLegalHoldingsLimited,Istatethat:
Intheopinionofthedirectors:
a.
Thefinancialstatementsandnotesoftheconsolidatedentityareinaccordancewiththe
CorporationsAct2001,including:
i. Givingatrueandfairviewoftheconsolidatedentitysfinancialpositionasat31
December2010andtheperformanceforthehalfyearendedonthatdateofthe
consolidatedentity
ii. ComplyingwithAccountingStandardAASB134 InterimFinancialReportingand
theCorporationsRegulations2001
b.
Therearereasonablegroundstobelievethatthecompanywillbeabletopayitsdebts
asandwhentheybecomedueandpayable.
OnbehalfoftheBoard
GFowler
Director
Perth,24February2011
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
29/31
Liability limited by a scheme approved
under Professional Standards LegislationGHM:NR:ILH057
Auditor's Independence Declaration to the Directors of Integrated Legal
Holdings Limited
In relation to our review of the financial report of Integrated Legal Holdings Limited for the half-year ended
31 December 2010, to the best of my knowledge and belief, there have been no contraventions of the
auditor independence requirements of the Corporations Act 2001or any applicable code of professional
conduct.
Ernst & Young
G H Meyerowitz
Partner
Perth
24 February 2011
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
30/31
Liability limited by a scheme approved
under Professional Standards LegislationGHM:NR:ILH056
To the members of Integrated Legal Holdings Limited
Report on the Half-Year Financial Report
We have reviewed the accompanying half-year financial report of Integrated Legal Holdings Limited (the
company), which comprises the consolidated statement of financial position as at 31 December 2010,
and the consolidated statement of comprehensive income, consolidated statement of changes in equity
and consolidated statement of cash flows for the half-yearended on that date, other selected explanatory
notes and the directors declaration of the consolidated entity comprising the company and the entities it
controlled at the half-year end or from time to time during the half-year.
Directors Responsibility for the Half-Year Financial Report
The directors of the company are responsible for the preparation of the half-year financial report that givesa true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001.
The directors are also responsible for such internal controls that the directors determine are necessary to
enable the preparation of the half-year financial report that is free from material misstatement, whether
due to fraud or error.
Auditors Responsibility
Our responsibility is to express a conclusion on the half-year financial report based on our review. We
conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 R eview of
Interim and other Financial Reports Performed by the Independent Auditor of the Entity, in order to state
whether, on the basis of the procedures described, we have become aware of any matter that makes us
believe that the financial report is not in accordance with the Corporations Act 2001including: giving a
true and fair view of the consolidated entitys financial position as at 31 December 2010 and itsperformance for the half-year ended on that date; and complying with Accounting Standard AASB 134
Interim Financial Reportingand the Corporations Regulations 2001. As the auditor of Integrated Legal
Holdings Limited and the entities it controlled during the half-year, ASRE 2410 requires that we comply
with the ethical requirements relevant to the audit of the annual financial report.
A review of a half-year financial report consists of making enquiries, primarily of persons responsible for
financial and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with Australian Auditing Standards and
consequently does not enable us to obtain assurance that we would become aware of all significant matters
that might be identified in an audit. Accordingly, we do not express an audit opinion.
IndependenceIn conducting our review, we have complied with the independence requirements of the Corporations Act
2001. We have given to the directors of the company a written Auditors Independence Declaration a copy
of which is included in the Directors Report.
8/9/2019 116.ASX IAW Feb 25 2011 08.20 Half Yearly Report and Accounts
31/31
Conclusion
Based on our review, which is not an audit, we have not become aware of any matter that makes us believe
that the half-year financial report of Integrated Legal Holdings Limited is not in accordance with:
a. the Corporations Act 2001, including:
i) giving a true and fair view of the consolidated entitys financial position as at 31 December
2010 and of its performance for the half-year ended on that date; and
ii) complying with Accounting Standard AASB 134 Interim Financial Reportingand the
Corporations Regulations 2001.
Ernst & Young
G H Meyerowitz
Partner
Perth
24 February 2011