Allied Brands Limited and its Controlled Entities ABN 20 108 958 274
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Appendix 4D results for the Half Year Ended 31st December 2009
For Immediate Release To The Market
28TH
February 2010
Allied Brands Limited
Lvl 3, Suite 303, 89 – 91 Surf Parade,
Broadbeach, QLD 4218
Ph 07 5501 8888
Fx 07 5501 8899
ACN 108 958 274
For Further Information please contact Shane Radbone, Chief Executive Officer, Mobile 0400 500 948
Allied Brands Limited and its Controlled Entities ABN 20 108 958 274
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APPENDIX 4D
Entity: Allied Brands Limited
ABN: 20 108 958 274
Reporting Period: 31st December 2009
Corresponding Reporting Period 31st December 2008
RESULTS FOR ANNOUNCEMENT TO THE MARKET
6 Months ended 31/12/2009
6 Months ended 31/12/2008
Up / down Movement $ Movement %
Revenue from ordinary activities
31,338,761 27,370,607 up 3,968,154
14.5%
Profit (loss) from ordinary activities after income tax attributable to members
1,890,010 1,642,509 up 247,501
18.8%
Net profit (loss) for the period attributable to members
1,890,010 1,642,509 up 247,501
18.8%
Current Period Previous corresponding period
Basic earnings per security $0.0110 $0.016
Diluted earnings per security $0.0110 $0.014
Not tangible assets per security
$0.0625 -$0.044
Refer to Note 4 of the accompanying half year report for Dividend Information.
This Appendix 4D should be read in conjunction with the attached half year report and the
most recent annual report.
.................................
Director
DATE: 28 February 2010
Allied Brands Limited and its Controlled Entities ABN 20 108 958 274
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Allied Brands Half Year Report
Allied Brands Limited and its Controlled Entities
For the Half Year Ended 31 December 2009
INDEX
Directors Report 4
Auditors Independence Declaration 6
Statement of Comprehensive Income 7
Statement of Financial Position 8
Statement of Changes of Equity 9
Statement of Cash Flows 10
Notes to the Financial Statements 11
Directors Declaration 18
Independent Review Report to the Members 19
Allied Brands Limited and its Controlled Entities ABN 20 108 958 274
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Directors Report
The Directors present their report in conjunction with the consolidated Financial Report of Allied Brands Limited and its controlled entities for the half year ended 31 December 2009 and the review report thereon. Directors The Directors of the Company at any time during or since the end of the half year are: Non- Executive
Lachlan McIntosh (Chairman) - Appointed 20 July 2006
Jury Wowk - Appointed 5 February 2010
Executive
Peter Graham - Appointed 5 May 2004
Peter Elligett - Appointed 20 March 2007
Anthony Underwood – Resigned 31 July 2009, Appointed 31 August 2007
Financial Performance Comparative for First Half
31 December 2009 31st December 2008 Change %
Revenue 31.4 27.4 14.6%
EBITDA 4.9 4.3 14.0%
NPBT 3.0 2.6 15.4%
NPAT 1.9 1.6 18.8%
Review of Operations
The Company is pleased to report an increase of 15.4 % Net Profit Before Tax for the period to the 31 December 2009.
This result overall for the group has been pleasing but there are areas of each of the subsidiary brands that we will continue to address.
The Board has decided to give further clarity that it will now report each operation’s results in its segment reporting commencing this half year, as we believe it gives a valuable insight in to the overall numbers for the group, and greater transparency to our investors.
There has been a much improved performance from Baskin Robbins, due in part to a improved exchange rate (which is now hedged), but also fuelled by increases in store on store growth of +12%.
The Cookie Man business like many other retail businesses has struggled over the first half year, and a review of operations incorporating product offering and development, marketing and store location is being undertaken. The gift business (20% of the product mix) reported a growth in gift sales of 10% over the key Christmas period.
Allied Brands Limited and its Controlled Entities ABN 20 108 958 274
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The Villa and Hut business has grown significantly since its purchase in May 2009 through both increased franchising activity and through the acquisition of stores from Steinhoff ( Bay Swiss and Freedom Home) and the Coffee Bean and Tea Leaf Chain. Overall performance has been sound although costs associated with introducing the new stores to the Villa and Hut brand have been higher than expected. The roll out of the Villa and Hut coffee blend from the manufacturing facility was delayed in the roll out to the stores and will have a positive impact in the back half or the financial year.
Kenny’s Cardiology has seen improvement in performance with the company owned stores in Australia and New Zealand both showing improved sales, and the underlying business improving against the trend of similar retailers in the first half. The investment in the customer service program is proving fruitful.
Awesome Water by comparison has had a disappointing half, the advent of the third party financier, has harmed margins further than first thought, and this combined with an increase in bad and doubtful debts as the economy has worsened has led to a first half loss.
Awesome Entertainment has seen increased price competition as the dollar climbed and plasma television prices plummeted. This saw its market share erode ,this combined with third party financing costs led to a very small first half loss.
Outlook
The company is firmly of the view that it will see further improvement in its results in the second half.
It expects that opportunities that it has been working on in its Franchise Services area will come to fruition, and expects that several of the stores that were converted to Villa and Hut will be franchised in the coming half. There are a number of stores that are due for unconditional settlement by the end of Quarter 3 of this financial year.
Several initiatives are underway in all Brands to focus on improving Brand profitability, increase market size and penetration. These initiatives include introduction of Brand extensions and the resurrection of Brand names which we hold and have been dormant. (Granny May’s)
The company will continue to work on strengthening its systems and back office to enable it to operate more efficiently and effectively.
The company also expects that its investment in its area development concept will start to have positive impact on its profitability in the coming six months.
Dividend
The Directors have not declared an Interim Dividend. A full year Dividend of 0.5 cents per share was paid on the 29
th January 2010.
The company is reviewing its Dividend policy after feedback from Shareholders.
Auditors Declaration
The lead Auditors independence declaration under Section 307C of the Corporations Act 2001 is attached to the Directors’ Report for the half year 31 December 2009.
Dated at Brisbane on the 28th February 2010
Signed in accordance with a resolution of the Directors. Lachlan McIntosh - Director
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Auditor’s Independence Declaration
to the Directors of Allied Brands Limited
In relation to the half-year independent auditor’s review for the six months to 31 December
2009, to the best of my knowledge and belief there have been:
(i) no contraventions of the auditor independence requirements of the Corporations Act 2001
in relation to the review; and (ii) no contraventions of any applicable code of professional conduct in relation to the review.
This declaration is in respect of Allied Brands Limited and the entities it controlled during this
period.
HACKETTS DFK Shaun Lindemann
Brisbane Partner
28 February 2010
Liability Limited by a scheme approved under Professional Standards Legislation
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Consolidated Statement of Comprehensive Income
For the half year ended 31/12/2009
Note 31 Dec 2009 $ 31 Dec 2008 $
Revenue 31,338,761 27,370,607
Other income 3 - 394,352
Raw materials and consumables purchased (9,375,263) (12,591,566)
Changes in inventories of finished goods 2,920,736 1,217,773
Administration expenses (5,973,542) (1,881,716)
Employee expenses (5,189,044) (3,655,246)
Bad and doubtful debts (1,083,383) (244,860)
Occupancy (4,160,516) (3,747,410)
Depreciation & amortisation (440,932) (647,101)
Store development costs (1,540,818) (2,604,897)
Other operating expenses (2,046,592) (20,411)
Operating profit before financing costs 4,449,407 3,589,525
Financial income 155,605 41,572
Financial expenses (1,603,863) (1,070,210)
Net financing income (expenses) (1,448,258) (1,028,638)
Profit before tax 3,001,149 2,560,887
Income tax expenses (1,111,139) (918,378)
Profit for the period 1,890,010 1,642,509
Other comprehensive income - - Total comprehensive income attributable to:
Members of the parent entity 1,890,010 1,642,509
Basic earnings (loss) per share attributable to ordinary equity holders 5 $0.0110 $0.0160
Diluted earnings (loss) per share attributable to ordinary equity holders 5 $0.0110 $0.0160
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Statement Of Financial Position As At 31 December 2009
31 Dec 2009 $ 30 June 2009 $
Current assets
Cash and cash equivalents 1,809,937 3,366,313
Trade and other receivables 14,687,479 14,662,965
Inventories 7,001,411 4,080,675
Other current assets 2,306,801 544,423
Assets held for sale 2,844,885 3,837,371
Total current assets 28,650,513 26,491,747
Non-current assets
Trade and other receivables 8,751,132 7,526,449
Deferred tax assets 0 0
Intangible assets 30,648,693 29,837,249
Property, plant and equipment 7,191,596 5,601,364
Total non-current assets 46,591,421 42,965,062
Total assets 75,241,934 69,456,809
Current liabilities
Trade and other payables 8,717,861 8,750,429
Interest bearing loans & borrowings 9,176,119 6,400,453
Convertible notes 5,765,000 -
Employee benefits 652,878 629,552
Current tax liabilities 1,674,001 411,645
Unearned income - 27,000
Total current liabilities 25,985,859 16,219,079
Non-current liabilities
Interest bearing loans & borrowings 6,617,860 9,254,473
Convertible notes - 7,615,000
Unearned income - 206,072
Deferred tax liabilities 718,555 845,893
Total non-current liabilities 7,336,415 17,921,438
Total liabilities 33,322,274 34,140,517
NET ASSETS 41,919,660 35,316,292
Equity
Issued capital 35,508,167 30,794,809
Reserves 76,532 76,532
Accumulated profit 6,334,961 4,444,951
TOTAL EQUITY 41,919,660 35,316,292
Allied Brands Limited and its Controlled Entities ABN 20 108 958 274
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Consolidated Statement Of Changes In Equity
For The Half Year Ended 31 December 2009
Share
capital $ Accumulated
profits $ Reserves
$ Total $
Consolidated
Balance at 1 July 2008 18,496,471
2,439,917
76,532
21,012,920
Profit attributable to members of the entity
-
1,642,509
-
1,642,509
Shares issued 356,000
-
-
356,000
Share buy-backs (141,009)
(141,009)
Transaction costs (8,917)
-
-
(8,917)
Balance at 31 December 2008 18,702,545
4,082,426
76,532
22,861,503
Balance at 1 July 2009 30,794,809
4,444,951
76,532
35,316,292
Profit attributable to members of the entity
-
1,890,010
-
1,890,010
Dividends paid or provided -
-
-
-
Shares issued 4,947,053
-
-
4,947,053
Share buy-backs -
-
-
-
Transaction costs (233,695)
-
-
(233,695)
Balance at 31 December 2009 35,508,167
6,334,961
76,532
41,919,661
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Consolidated Statement Of Cash Flows
For The Half Year Ended 31 December 2009
31 Dec 2009 $ 31 Dec 2008 $
Cash flows from operating activities
Cash receipts from customers 30,276,884 22,755,048
Cash paid to suppliers and employees (27,750,605) (22,387,574)
Cash generated from operations 2,526,279 367,474
Interest paid (1,448,257) (1,070,210)
Income taxes paid (411,641) -
Interest received 155,605 41,572
Net cash from operating activities 821,986 (661,164)
Cash flows from investing activities
Proceeds from sale of property, plant and equipment - -
Acquisition of capital work in progress and PP&E (2,031,144) (3,436,414)
Proceeds from contractual settlement - -
Net cash paid on acquisition of subsidiary - - Additional acquisition costs paid for purchase of subsidiaries - (1,062,110)
Loans to related parties/franchisees - (337,263)
Payment of development costs (262,822) (316,990)
Payments for intangible assets (548,892) (4,595)
Proceeds (payment) of other deposits - -
Net cash from investing activities (2,842,858) (5,157,372)
Cash flows from financing activities
Proceeds from the issue of share capital 1,553,991 -
Payment of finance lease liabilities (737,117) -
Proceeds from borrowings 1,013,200 4,832,875
Repayment of borrowings (723,590) (3,266,992)
Proceeds from convertible notes issue - 1,843,750
Repayment of convertible notes / share buyback -
Cost of share buy-back - (149,927)
Payment of acquisition costs - -
Dividends paid - -
Net cash from financing activities 1,106,484 3,259,706
Net increase/(decrease) in cash and cash equivalents (914,388) (2,558,830)
Cash and cash equivalents at 1 July 2009 (net of overdrafts) 2,724,329 4,156,816
Cash and cash equivalents net of overdrafts at 31 December 2009 1,809,941 1,597,986
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Notes To The Financial Statements
For The Half Year Ended 31 December 2009
1. SIGNIFICANT ACCOUNTING POLICIES
Allied Brands Limited (the "Company") is a company domiciled in Australia. The
consolidated financial report of the Company for the six months ended 31 December
2009 comprise the Company and its subsidiaries (together referred to as the
"consolidated entity"). The consolidated financial report was authorised for issue by the
directors on 28 February 2010.
Basis of Preparation - The half-year consolidated financial statements are a general
purpose financial report prepared in accordance with the requirements of the
Corporations Act 2001, Australian Accounting Standard AASB 134 Interim Financial
Reporting, Australian Accounting Interpretations and other authoritative
pronouncements of the Australian Accounting Standards Board. Compliance with
Australian Accounting Standards ensures that the financial statements and notes also
comply with International Financial Reporting Standards.
It is recommended that this financial report be read in conjunction with the annual
financial report for the year ended 30 June 2009 and any public announcements
made by Allied Brands Limited and its controlled entities during the half-year in
accordance with continuous disclosure requirements arising under the Corporations
Act 2001.
Reporting Basis and Conventions
The half-year report has been prepared on an accruals basis and is based on
historical costs modified by the revaluation of selected non-current assets, financial
assets and financial liabilities for which the fair value basis of accounting has been
applied.
Where relevant, the accounting policies applied to the comparative period have been
disclosed if they differ from the current period policy. The accounting policies have
been consistently applied throughout the consolidated entity for the purposes of this
consolidated interim financial report. The half-year report does not include full
disclosures of the type normally included in an annual financial report.
The same accounting policies and methods of computation have been followed in this
interim financial report as were applied in the most recent annual financial statements
except for the adoption of the following new and revised Accounting Standards.
Accounting Standards not previously applied
The Group has adopted the following new and revised Australian Accounting Standards issued by the AASB which are mandatory to apply to the current interim period. Disclosures required by these Standards that are deemed material have been included in this financial report on the basis that they represent a significant change in information from that previously made available. Presentation of Financial Statements
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AASB 101 prescribes the contents and structure of the financial statements. Changes reflected in this financial report include:
the replacement of income statement with statement of comprehensive income. Items of income and expense not recognised in profit or loss are now disclosed as components of ‘other comprehensive income’. In this regard, such items are no longer reflected as equity movements in the statement of changes in equity;
the adoption of the separate single statement approach to the presentation of the statement of comprehensive income; and
other financial statements are renamed in accordance with the Standard.
Operating Segments
From 1 July 2009, operating segments are identified and segment information disclosed on the basis of internal reports that are regularly provided to, or reviewed by, the Group’s chief operating decision maker which, for the Group, is the Board of Directors. In this regard, such information is provided using different measures to those used in preparing the statement of comprehensive income and statement of financial position. Reconciliations of such management information to the statutory information contained in the interim financial report have been included. As a result of the adoption of the revised AASB 8, certain cash-generating units have been redefined having regard to the requirements in AASB 136: Impairment of Assets. Business Combinations and Consolidation Procedures
Revised AASB 3 is applicable prospectively from 1 July 2009. Changes introduced by this Standard, or as a consequence of amendments to other Standards relating to business combinations which are expected to affect the Group, include the following:
All business combinations, including those involving entities under common control, are accounted for by applying the acquisition method which prohibits the recognition of contingent liabilities of the acquiree at acquisition date that do not meet the definition of a liability. Costs incurred that relate to the business combination are expensed instead of comprising part of the goodwill acquired on consolidation. Changes in the fair value of contingent consideration payable are not regarded as measurement period adjustments and are recognised through profit or loss unless the change relates to circumstances which existed at acquisition date.
Unrecognised deferred tax assets of the acquiree may be subsequently realised within 12 months of acquisition date on the basis of facts and circumstances existing at acquisition date with a consequential reduction in goodwill. All other deferred tax assets subsequently recognised are accounted for through profit or loss.
Where control of a subsidiary is lost, the balance of the remaining investment account shall be remeasured to fair value at the date that control is lost.
Revenue Recognition
Dividends received from a subsidiary, joint venture or associate shall be recognised as dividend revenue in the profit or loss irrespective of whether such dividends may have been paid out of pre-acquisition profits. Previously, such dividends were treated as a return of capital invested. Such dividends may be an indicator of impairment where the carrying amount of the investment exceeds the consolidated net assets relating to that investment or where the dividend exceeds the total comprehensive income of the respective investee in the period the dividend is declared.
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2. Segment Reporting
Segment Information Identification of reportable segments
The Group has identified its operating segments based on the internal reports that are reviewed and used by the Board of Directors (chief operating decision maker) in assessing performance and determining the allocation of resources.
The Group is managed primarily on the basis of business segments.
In prior years, segment information reported externally was analysed on the basis of food and
non-food divisions. However, information reported to the Board of Directors for the purpose of
resource allocation and assessment of performance is more specifically focussed on business
segments as recorded in the subsidiaries in the Group.
Basis of accounting for purposes of reporting by operating segments
Accounting policies adopted
Unless stated otherwise, all amounts reported to the Board of Directors as the chief decision
maker with respect to operating segments are determined in accordance with accounting
policies that are consistent to those adopted in the annual financial statements of the Group.
Inter-segment transactions
Inter-segment loans payable and receivable are initially recognised at the consideration
received net of transaction costs. If inter-segment loans receivable and payable are not on
commercial terms, these are not adjusted to fair value based on market interest rates. This
policy represents a departure from that applied to the statutory financial statements.
Segment assets
Where an asset is used across multiple segments, the asset is allocated to the segment that
receives the majority of economic value from the asset. In the majority of instances, segment
assets are clearly identifiable on the basis of their nature and physical location.
Segment liabilities
Liabilities are allocated to segments where there is direct nexus between the incurrence of the
liability and the operations of the segment. Borrowings and tax liabilities are generally
considered to relate to the Group as a whole and are not allocated. Segment liabilities include
trade and other payables and certain direct borrowings.
Unallocated items
The following items of revenue, expense, assets and liabilities are not allocated to operating segments as they are not considered part of the core operations of any segment:
derivatives;
net gains on disposal of available-for-sale investments;
impairment of assets and other non-recurring items of revenue or expense;
income tax expense;
deferred tax assets and liabilities;
current tax liabilities;
other financial liabilities; and
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intangible assets.
Comparative information
This is the first reporting period in which AASB 8: Operating Segments has been adopted. Comparative information has been restated to conform to the requirements of the Standard. Types of products and services by segments
Baskin Robbins - the sale of ice-cream to franchisees, receipt of royalties and construction of new stores. This newly defined segment represents in part what was previously disclosed as 'Food'.
Cookie Man - the sale of cookie-related products and dry goods to franchisees, receipt of royalties and construction of new stores and rental income earned on baking ovens. This newly defined segment represents in part what was previously disclosed as 'Food'.
Kenny's Cardiology - the sale dry goods to franchisees, receipt of royalties and construction of new stores and asset rental on fixtures and fittings. This newly defined segment represents in part what was previously disclosed as 'Food' and 'Non Food'.
Awesome Water - the sale of franchised areas for the sale and servicing of water coolers and filters.
Awesome Entertainment - the sale of franchised areas for the sale and servicing of televisions. Villa & Hut - the receipt of royalties and rental income in respect of furniture, fixtures and equipment from franchisees and other parties. This newly defined segment consists of the operations of subsidiaries acquired during the second half of the prior year.
6 Months Ended 31st December 2009
Baskin Cookie Kenny's Awesome Awesome Villa & Total
Robbins Man Cardiology Water Entertainment Hut
Six months ended 31.12.2009
Revenue
Segment revenue 8,050,338 4,110,881 6,761,157 6,181,109 2,199,949 4,035,327 31,338,761
Unallocated revenue
-
Total Group Revenue
31,338,761
Profit
Segment net profit before tax 2,099,657 337,781 1,116,715 (258,038) (3,734) 1,180,297 4,472,678 Unallocated expenditure
(1,471,529)
Profit before tax
3,001,149
Taxation Expense
(1,111,139)
Net profit after Tax
1,890,010
Segment assets 7,760,897 6,240,274 9,448,902 8,018,894 5,686,680 4,430,817 41,586,464
Unallocated assets
33,655,475
Total assets
75,241,939
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6 Months Ended 31st December 2008
Baskin Cookie Kenny's Awesome Awesome Villa & Total
Robbins Man Cardiology Water Entertainment Hut
Six months ended 31.12.2008
Revenue
Segment revenue 6,896,121 4,945,971 6,796,959 5,308,471 3,165,447 - 27,112,969
Unallocated revenue
257,638
Total Group Revenue
- 27,370,607
Segment net profit before tax 287,338 874,181 451,057 543,007 117,141 - 2,272,724
Unallocated profit
288,163
Profit before tax
2,560,887
Taxation Expense
(918,378)
Net profit after Tax
1,642,509
Segment assets 5,407,695 6,099,041 8,161,462 7,188,303 4,623,971 - 31,480,472
Unallocated assets
37,976,332
Total assets
69,456,804
3. PROFIT FROM ORDINARY ACTIVITIES
31 Dec 2009 $ 31 Dec 2008 $
The following revenue and expense items are relevant in explaining the financial performance for the interim period:
Other Income
Assets acquired for no consideration (i) - -
Write back of onerous contract provision - -
Profit from short term currency hedge - 247,378
Other non operating income - 146,974
- 394,352
4. DIVIDENDS
Directors declared a fully-franked dividend of 0.5 cents per share for the year ended
30 June 2009. The record date for the payment was 15 January 2010 with payment
made on 29 January 2010. The total amount of the dividend paid was $965,364
($791,074 paid in cash and $174,290 to participants in the Dividend Reinvestment
Plan).
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5. EARNINGS PER SHARE
31 Dec 2009 $ 31 Dec 2008 $
Profit (loss) attributable to ordinary shareholders 1,890,010 1,642,509
Weighted average number of ordinary shares used as the denominator in calculating basic earnings per share: 171,922,149 102,583,236
Adjustments for calculation of diluted earnings per share:
Options 19,090,090 17,087,295
Weighted average number of ordinary shares and potential ordinary shares used as the denominator in calculating diluted earnings per share: 191,012,240 119,670,531
Profit(loss) adjustments for calculation of diluted earnings per share: 212,660 268,456
Basic earnings per share (cents) 1.10 1.60
Diluted earnings per share (cents) 1.10 1.60
6. TRADE AND OTHER RECEIVABLES
31 Dec 2009 $ 30 Jun 2009 $
Current
Trade receivables 13,525,872 11,183,714
Secured Loans - 1,168,117
Accrued royalty & stores deferred payments - 32,386
Receivables from related parties and franchisees - 45,000
Prepayments 1,161,607 2,209,647
Other receivables and deposits - 24,101
14,687,479 14,662,965
Non-current
Receivables –Non Current 8,751,131 7,526,448
Other receivables and deposits - -
8,751,131 7,526,448
7. ASSETS HELD FOR RESALE
31 Dec 2009 $ 30 Jun 2009 $
Corporate stores held for sale (i) 2,639,088 3,476,776
Ovens - -
Areas held for re-sale 205,797 360,595
2,844,885 3,837,371
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8. CONTINGENT LIABILITIES
The directors are of the opinion that provisions are not required in respect of these matters, as it
is not probable that a future sacrifice of economic benefits will be required or the amount is not
capable of reliable measurement.
Contingent liabilities A contingent liability exists in relation to a supplier agreement entered into by the Company
in early 2008. This contract will expire in 2014. A contingent liability will only be triggered in
the unlikely event that the long-term supplier relationship is terminated in its entirety. Given
the confidentiality of the contract, the inclusion of further information would likely result in
unreasonable prejudice to both the Company and the Supplier.
A contingent liability of $1,019,000 exists due to current bank guarantee facilities in place
secured by the Company.
A contingent liability exists in relation to leases guaranteed by the Company on behalf of the
Villa & Hut group.
A contingent liability exists in relation to certain licenses entered into by the Company. In
the event that certain performance-based criteria are achieved by licensee’s over a 5 and /
or 10 year period, the Company may be required to repurchase qualifying licenses. The
repurchase of these licenses is a key party of the business plan going forward. The amount
of the contingent liability cannot be estimated at this time.
9. SUBSEQUENT EVENTS
On 21 January, the company announced that it had purchased the assets of Coffee
Bean & Tea Leaf for $150,000, to add new stores to its Villa & Hut franchise. The
Company also announced on 14 January that it had reached agreement for funding of
up to $4.9 million with Springtree Financial Group from the United States.
No other matters or circumstances have arisen since 31 December 2009 that have
significantly affected or may significantly affect the operations of the entity, the results of
those operations, or the state of affairs of the entity in subsequent financial years.
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DIRECTORS’ DECLARATION
In the opinion of the Directors of Allied Brands Limited (The Company)
(a) The financial statements and notes set out on pages 7 to 17,are in
accordance with the Corporations Act,2001, including:
1. Giving a true and fair view of the financial position of the
consolidated entity as at 31 December 2009 and of its
performance, for the half year ended on that date ; and
2. Complying with Australian Accounting Standard AASB 134
Interim Financial Reporting; and
(b) There are reasonable grounds to believe the company will be able to
pay its debts as and when they become due and payable
Dated at Brisbane on the 28th February 2010
Director
Signed in accordance with a resolution of the Directors.
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INDEPENDENT AUDITOR’S REVIEW REPORT TO
THE MEMBERS OF ALLIED BRANDS LIMTED
Report on the Half-Year Financial Report
We have reviewed the accompanying half-year financial report of Allied Brands Limited and its
controlled entities (the consolidated entity). The half-year financial report comprises the
statement of financial position sheet as at 31 December 2009, and the statement of comprehensive
income, statement of changes in equity and statement of cash flows for the half-year ended on that
date, together with a statement of accounting policies, other selected explanatory notes and the
directors' declaration.
Directors' Responsibility for the Half-Year Financial Report
The directors of Allied Brands Limited are responsible for the preparation and fair presentation of
the half-year financial report in accordance with Australian Accounting Standards (including the
Australian Accounting Interpretations) and the Corporations Act 2001. This responsibility
includes designing, implementing and maintaining internal control relevant to the preparation and
fair presentation of the half-year financial report that is free from material misstatement, whether
due to fraud or error; selecting and applying appropriate accounting policies; and making
accounting estimates that are reasonable in the circumstances.
Auditor’s 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 Review of an Interim Financial Report 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 2001 including: giving a true and fair view of the consolidated entity’s financial position as at
31 December 2009 and its performance for the half-year ended on that date; and complying with
Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations
2001. As the auditor of Allied Brands Limited and its controlled entities, 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.
Independence
Allied Brands Limited and its Controlled Entities ABN 20 108 958 274
20 | P a g e
In conducting our review, we have complied with the independence requirements of the
Corporations Act 2001
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 Allied Brands Limited and its controlled entities is not
in accordance with the Corporations Act 2001 including:
(a) giving a true and fair view of Allied Brands Limited and its controlled entities’ financial
position as at 31 December 2009 and of its performance for the half-year ended on that
date; and
(b) complying with Accounting Standard AASB 134 Interim Financial Reporting and
Corporations Regulations 2001.
HACKETTS DFK S J Lindemann
Brisbane Partner
Dated: 28 February 2010