Professional Documents
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KEY DEVELOPMENTS
Law Central
- New branding and website
- Product and functionality enhancements
- Significant new client engagements (cornerstone national groups)
The Directors of ILH Group Limited (ILH) report that the net contribution from member firms increased by
11% to $1,930,987 for the half year ending 31 December 2012.
Operating revenues of $16,265,542 were on par with the prior corresponding period.
Profit from ordinary activities after tax (before fair value adjustment at 31 December 2011)* was down 1%
to $414,362 over the corresponding prior period. The fair value adjustment represented a non-cash and
one-off accounting adjustment arising from an acquisition transaction in 2011, being a deferred
consideration liability which ultimately was not payable. Including this fair value adjustment, net profit
after tax was down 57% over the corresponding prior period.
Operating cash flows of $900,475 were generated for the period.
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1.
2.
2012/13
$000s
2011/12
$000s
%
Change
16,266
94
1,931
(1,060)
(244)
(213)
16,276
0
1,734
(916)
(167)
(231)
11%
16%
46%
(8%)
414
420
(1%)
0
414
550
970
(57%)
1,392
11,106
284
336
2,444
243
15,805
1,414
11,499
240
237
2,167
167
15,724
(2%)
(3%)
18%
42%
13%
46%
1%
0%
The ILH investment in Rockwell Bates has been equity accounted and included as share of profit from
an associate.
As the Melbourne member firm of Legal Services, the earnings from Rockwell Bates have been
included in contribution from member firms.
The investment in Rockwell Bates increased from 25% to 49% on 1 November 2012.
Movement in fair value of liabilities (included in corresponding prior period)
The movement in fair value of financial liabilities represents a non-cash and one-off accounting
adjustment arising from an acquisition transaction in 2011, being a deferred consideration liability
which ultimately was not payable.
Interest Expenses
Interest expense increased for the period as a result of increased bank debt used in funding the cash
component of acquisitions.
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2.
Law Central
IT Development
The Company has continued to invest in Law Central IT during the period.
The IT development includes the website, new product functionality, document
development, and a new IT platform.
The new IT platform is now in testing and on track for completion in May 2013, and will
significantly improve time to market for new documents, document changes and product
features generally, as well as enable enhanced online marketing.
Business Development
Law Central has appointed a business development professional, specifically experienced in
the accountant and financial planner segment.
A program has been developed to target and develop relationships with key current and
potential clients.
We see this appointment as a critical investment in realising the significant opportunity for
Law Central in the Australian market.
Product endorsement
Law Central has engaged former Australia cricket captain Steve Waugh in a promotional
capacity in Australia, and potentially as part of further international expansion.
b)
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2.
3.
4.
OUTLOOK
The Company remains focused on acquiring good businesses with like-minded people, and working
with them to achieve growth, business improvement and revenue synergies through collaboration
across the Group.
In this regard, IHL continues to have a strong pipeline of potential acquisition opportunities.
The Directors anticipate strong earnings momentum into 2013/14 from:
Revenue synergies arising from the national Rockwell Olivier branding for Legal Services
Continued expansion and development of the Pacific/South East Asia legal services business
The Directors remain confident in the outlook for the Company given the strength and underlying
quality of its member firms and network, the opportunity for organic growth and improved
performance, particularly from cross Group collaboration, and the significant potential to grow by
selective acquisition, affiliation and strategic relationship.
For further information contact:
Graeme Fowler Managing Director
Mobile: 0419 746 618
Office:
(02) 8263 6601
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