LogiCamms Limited ABN: Interim Financial Report

Transcription

1 ABN: Interim Financial Report

2 Contents Page Directors report 2 Auditor s Independence Declaration 4 Condensed consolidated statement of profit or loss and other comprehensive income 5 Condensed consolidated statement of financial position 6 Condensed consolidated statement of changes in equity 7 Condensed consolidated statement of cash flows 8 Notes to the condensed consolidated financial statements 9 Directors declaration 15 Independent Auditor s report 16 This consolidated interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report is to be read in conjunction with the annual report for the year ended 30 June and any public announcements made by LogiCamms Limited during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act These consolidated interim financial statements are the consolidated interim financial statements of the consolidated entity consisting of LogiCamms Limited and its subsidiaries. The consolidated interim financial statements are presented in the Australian currency. LogiCamms Limited is a company limited by shares, incorporated and domiciled in Australia. Its registered office is: LogiCamms Limited Level Mary Street Brisbane QLD 4000 The consolidated interim financial statements were authorised for issue by the Directors on 27 February The Directors have the power to amend and reissue the Interim Financial Report. Page 1 - LogiCamms Limited Consolidated Interim Financial Report for the Half-Year ended

3 Directors Report Your Directors present their interim financial report on LogiCamms Limited ( the Company ) and its controlled entities ( the Group ) for the half-year year ended. THE DIRECTORS The persons who have been Directors of the Company at any time during or since the end of the half-year and up to the date of this report are: Non-Executive Directors Mr Peter Watson (Chairman) Mr Richard Robinson Mr Peter Wall (retired 25 October ) Mr Charles Rottier (appointed 5 September ) Executive Directors None The person who has been the Company Secretary of the Company at all times during the half-year and up to the date of this report is Mr David Shaw. REVIEW AND RESULTS OF OPERATIONS The interim financial results for the half-year ended compare to the prior corresponding period ("pcp") as follows: 2016 Improvement to PCP ($ 000) ($ 000) ($ 000) Revenue 42,505 41,499 1,006 Profit / (Loss) before tax 862 (3,939) 4,801 Profit / (Loss) after tax 895 (4,775) 5,670 EBITDA 1,909 (2,467) 4,376 EBITDA as a % of revenue 4.5% (5.9%) 10.4% Basic earnings per share 1.1 (6.5) cents 7.6 The Directors believe that the presentation of certain non-ifrs financial measures is useful for the users of this document as they reflect the underlying operational performance of the Group. The non-ifrs financial profit measures are used by the CEO to review the operations of the Group. The main non-ifrs measure used is EBITDA - Earnings Before Interest, Tax, Depreciation and Amortisation, including any impairment charge. The Group reported revenue of $42.5m and an EBITDA profit of $1.9m for the half year compared to a loss of $2.5m for the half year ended This represents a significant turnaround from the prior half year loss and reflects the savings resulting from the restructure undertaken in July. Revenue was $1.0m or 2.4% higher than the prior comparative period. Several projects that were previously delayed in the second half of the financial year were executed in the first half of this financial year. The Group recorded an operating profit after tax of $0.9 million (31 Dec 2016: Loss of $4.8m) and net operating cash outflows of $1.2 million (31 Dec 2016: outflow of $3.2m) during the half year ended. The negative operating cash flow followed the payment of $1.1m of restructuring costs recognised as a provision in the accounts at 30 June. An additional $1.3m was drawn under the working capital facility to fund these restructuring costs. Page 2 - LogiCamms Limited Consolidated Interim Financial Report for the Half-Year ended

4 Directors Report (continued) In the Mining & Metals industry sector the Group has experienced success with its EPC and Maintenance offerings in both South Australia and Western Australia. The bulk of the Group s revenue continued to be generated in the Hydrocarbons industry sector. The Group continues to maintain its focus on working closely and collaboratively with its major clients across a range of services including engineering, personnel secondments, and training services. Work also continues in the Technology and Innovation space and further progress has been made, including the successful deployment of new modules of the Automated Infrastructure Design Engine (AIDE) to a Tier 1 CSG client during the period. The opportunities which can be realised by utilising AIDE were demonstrated to a number of other potential CSG clients. Despite the successful turnaround, the Company remains cautious on the outlook for the remainder of the 2018 financial year. Work in hand at the end of 31 January was $23.2 million. The mix of project types and continued price competition of in the market for engineering services requires a continuous focus on overhead efficiency and matching the level of resources available in the business with the pipeline of future work. AUDITOR S INDEPENDENCE DECLARATION The auditor s independence declaration as required under s.307c of the Corporations Act 2001 is set out on page 16. ROUNDING OF AMOUNTS The Company is of the kind referred to in Australian Securities and Investments Commission (ASIC) Corporations Instruments 2016/191 dated 24 March 2016 pursuant to s.341(1) of the Corporations Act 2001, relating to the rounding off of amounts in the Directors Report and Consolidated Interim Financial Report. In accordance with that legislative instrument, amounts in the Consolidated Interim Financial Report have been rounded to the nearest thousand dollars, or in certain cases, to the nearest dollar. This Report is made with the resolution of the Directors: Peter Watson, Chairman Dated at Brisbane, Australia this 27 th day of February Page 3 - LogiCamms Limited Consolidated Interim Financial Report for the Half-Year ended

5 Auditor s Independence Declaration As lead auditor for the review of LogiCamms Limited for the half-year ended, I declare that to the best of my knowledge and belief, there have been: (a) (b) no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and no contraventions of any applicable code of professional conduct in relation to the review. This declaration is in respect of LogiCamms Limited and the entities it controlled during the period. Michael Shewan Partner PricewaterhouseCoopers Brisbane 27 February 2018 PricewaterhouseCoopers, ABN Queen Street, BRISBANE QLD 4000, GPO Box 150, BRISBANE QLD 4001 T: , F: , Liability limited by a scheme approved under Professional Standards Legislation.

6 Condensed consolidated statement of profit or loss and other comprehensive income For the six months ended Note 2016 ($ 000) ($ 000) Revenue 42,505 41,499 Cost of sales (27,683) (26,519) Gross profit 14,822 14,980 Other income Business development expenses (1,327) (4,067) Other expenses (13,020) (15,606) 766 (4,315) Onerous lease benefits Results from operating activities 998 (3,869) Interest received 2 3 Interest paid (138) (58) Net finance expense (136) (55) Share of (loss) from equity accounted investee - (15) Profit /(loss) before income tax 862 (3,939) Income tax benefit/(expense) (836) Profit/(loss) for the period 895 (4,775) Profit/(loss) attributable to: Owners of LogiCamms Limited 895 (4,775) Other comprehensive income Exchange differences on translation of foreign operations (688) 599 Total comprehensive income for the period attributable to the owners of LogiCamms Limited 207 (4,176) Earnings per share Basic earnings per share (cents per share AUD) 1.1 (6.5) Diluted earnings per share (cents per share AUD) 1.1 (6.5) The above condensed consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes. Page 5 - LogiCamms Limited Consolidated Interim Financial Report for the Half-Year ended

7 Condensed consolidated statement of financial position For the six months ended Assets Notes 30 June ($ 000) ($ 000) Cash and cash equivalents 4,655 4,983 Trade and other receivables 18,513 18,245 Current tax assets 88 - Total current assets 23,256 23,228 Property, plant and equipment 2,733 2,877 Deferred tax assets 3,422 3,328 Intangible assets 12 20,863 21,537 Total non-current assets 27,018 27,742 Total assets 50,274 50,970 Liabilities Trade and other payables 7,078 7,576 Borrowings 5,443 4,000 Current tax liability Employee benefits 3,936 3,591 Provisions 13 2,522 3,839 Deferred income 2,828 2,242 Total current liabilities 21,807 21,370 Trade and other payables 976 1,210 Borrowings 64 - Employee benefits Provisions 13 1,990 2,779 Total non-current liabilities 3,455 4,828 Total liabilities 25,262 26,198 Net assets 25,012 24,772 Equity Share capital 57,619 57,619 Reserves 2,072 2,760 Accumulated losses (34,679) (35,607) Total equity 25,012 24,772 The above condensed consolidated statement of financial position should be read in conjunction with the accompanying notes. Page 6 - LogiCamms Limited Consolidated Interim Financial Report for the Half-Year ended

8 Condensed consolidated statement of changes in equity For the six months ended For the six months ended 2016 Share Capital Reserves Accumulated losses Total Equity ($ 000) ($ 000) ($ 000) ($ 000) Balance at 1 July ,163 2,435 (11,973) 43,625 Loss for the period - - (4,775) (4,775) Other comprehensive income Total comprehensive income for the period (4,775) (4,176) Net contributions of equity 4, ,258 Employee share schemes Total transactions with owners in their capacity as owners 4, ,479 Balance at ,421 3,034 (16,527) 43,928 For the six months ended Share Capital Reserves Accumulated losses Total Equity ($ 000) ($ 000) ($ 000) ($ 000) Balance at 1 July 57,619 2,760 (35,607) 24,772 Profit for the period Other comprehensive income - (688) - (688) Total comprehensive income for the period - (688) Employee share schemes Total transactions with owners in their capacity as owners Balance at 57,619 2,072 (34,679) 25,012 The above condensed consolidated statement of changes in equity should be read in conjunction with the accompanying notes. Page 7 - LogiCamms Limited Consolidated Interim Financial Report for the Half-Year ended

9 Condensed consolidated statement of cash flows For the six months ended Note 2016 $'000 $'000 Cash flows from operating activities Receipts from customers 44,453 50,820 Payments to suppliers and employees (45,310) (54,054) (857) (3,234) Interest paid (138) (15) Income taxes paid (213) - Net cash outflow from operating activities (1,208) (3,249) Cash flows from investing activities Payments for acquisition of subsidiary - (100) Payments for intangible asset development 12 (332) (269) Acquisition of property, plant & equipment (271) (2,030) Proceeds from disposal of property, plant & equipment 15 - Interest received 2 3 Net cash outflow from investing activities (586) (2,396) Cash flows from financing activities Proceeds from equity raise - 4,678 Proceeds from borrowings 1,507 - Net cash inflow from financing activities 1,507 4,678 Net decrease in cash and cash equivalents (287) (967) Cash and cash equivalents at the beginning of the financial period 4,955 6,637 Effects of exchange rate changes on cash and cash equivalents (13) (66) Cash and cash equivalents at the end of the financial period 4,655 5,604 The above condensed consolidated statement of cash flows should be read in conjunction with the accompanying notes. Page 8 - LogiCamms Limited Consolidated Interim Financial Report for the Half-Year ended

10 Notes to the Condensed Consolidated Financial Statements For the six-months ended 1. REPORTING ENTITY LogiCamms Limited (the Company ) is a for-profit company incorporated and domiciled in Australia. The Consolidated Half-Year Financial Report for the six-months ended comprises the Company and its subsidiaries (together referred to as the Group ) and the Group s interest in associates and jointly controlled entities. The consolidated Annual Financial Report as at and for the year ended 30 June is available from the Company s registered office at Level 14/200 Mary Street, Brisbane, Queensland 4000, or at the Company s website: 2. BASIS OF PREPARATION The financial statements have been prepared on a going concern basis, which contemplates that the Group will continue to meet its commitments, realise its assets and settle its liabilities in the normal course of business. The Group recorded an operating profit after tax of $0.9 million (31 Dec 2016: Loss of $4.8m) and net operating cash outflows of $1.2 million (31 Dec 2016: outflow of $3.2m) during the half year ended. The negative operating cash flow followed the payment of $1.1m of restructuring costs recognised as a provision in the accounts at 30 June. The Group drew down an additional $1.3m under its working capital facility to fund these restructuring costs. The Group operates its business through management of its cash reserves, operating cash flows and a working capital facility provided by NAB. As at cash on hand was $4.7 million (30 June : $5.0 million) and borrowings under the working capital facility totalled $5.5 million (30 June : $4.0 million). The Group has prepared detailed cash flow forecasts for the next twelve months which show an improvement in operating cash flows. The Group continues to have a strong cash collection and billing cycle over its debtors and work in progress (WIP) with minimal debts being written off during the half year and the aging profile of WIP and debtors improved compared to the prior period. The nature of the Group's work requires that bank guarantees or bonds are issued in relation to certain projects. At 31 December, the Group had on issue $3.1 million in bank guarantees and bonds. These commitments are met out of existing multi option bank guarantee and working capital facilities with NAB and AssetInsure. During the half year, the approved limit on the NAB multi-option facility was increased by $4.0m to $11.0m and extended to 31 August 2018 to support the working capital needs of the business. Subsequent to the end of the half year period, the facility has been extended by a further 6 months to 28 February The Directors are confident that the NAB will continue to support the Company for the foreseeable future as needs arise. The Group s forecasts and projections, taking into account reasonably possible changes in trading performance, show that the Director's expect the group to operate within the limit of its current facilities. The Group believes that the $3.0 million headroom remaining under the multi option facility with NAB continues to be sufficient to meet the foreseeable future working capital and bond requirements of the business. However, should forecasts indicate that additional working capital is required in the future, the Directors are confident that the Group will be able to raise additional funds through an equity raising, further increasing the limit of its existing debt facilities, by obtaining alternative longer-term debt facilities or through the sale of assets. Based on the current cash position, facilities in place, cost savings achieved in the restructure, as well as the Group's work in hand and proposal pipeline, the Directors have prepared the Consolidated Interim Financial Report on a going concern basis. Page 9 - LogiCamms Limited Consolidated Interim Financial Report for the Half-Year ended

11 Notes to the Condensed Consolidated Financial Statements For the six months ended 3. STATEMENT OF COMPLIANCE The Consolidated Interim Financial Report is a general purpose financial report which has been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act The consolidated interim financial report does not include all of the information required for a full annual financial report, and should be read in conjunction with the consolidated annual financial report of the Group as at and for the year ended 30 June and any public announcements made by the Company during the interim reporting period in accordance with the continuous disclosure requirements of the Corporations Act Comparative information has been reclassified where appropriate to enhance comparability. This consolidated interim financial report was approved by the Board of Directors on 27 February The Company is of a kind referred to in ASIC Corporations (Rounding in Financial/Directors Reports) Instrument 2016/191 dated 24 March 2016 and in accordance with that Instrument, amounts in the consolidated interim financial report and directors report have been rounded off to the nearest thousand dollars, unless otherwise stated. 4. ESTIMATES The preparation of financial statements requires management to make judgements, estimates and assumptions that affect the application of accounting policies and the reported amounts of assets, liabilities, income and expenses. Actual results may differ from these estimates. In preparing this Consolidated Interim Financial Report, the significant judgements made by management in applying the Group s accounting policies, and the key sources of estimation uncertainty, were the same as those that applied to the consolidated financial report as at and for the year ended 30 June. 5. SUMMARY OF SIGNFICIANT ACCOUNTING POLICIES The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period. a) New and amended standards not yet adopted by the Group At the date of authorisation of the financial statements, the Standards and Interpretations listed below were in issue but not yet effective: Title of standard Nature of change Impact AASB 9 Financial Instruments AASB 9 addresses the classification, measurement and derecognition of financial assets and financial liabilities, introduces new rules for hedge accounting and a new impairment model for financial assets. The majority of the Group's financial assets are in the form of cash and cash equivalents and trade and other receivables. Accordingly, the Group does not expect the new guidance to have a significant impact on the classification and measurement of its financial assets. The new impairment model requires the recognition of impairment provisions based on expected credit losses rather than only incurred credit losses as is the case under AASB 139. It applies to financial assets classified at amortised cost, debt instruments measured at FVOCI, contract assets under AASB 15 Revenue from Contracts with Customers, lease receivables, loan commitments and certain financial guarantee contracts. While the Group has not yet undertaken a detailed assessment of how its impairment provisions would be affected by the new model, it may result in an earlier recognition of credit losses. The new standard also introduces expanded disclosure requirements and changes in presentation. These are expected to change the nature and extent of the Group s disclosures about its financial instruments particularly in the year of the adoption of the new standard. Date of adoption by the Group The Group has chosen not to adopt AASB 9 until it becomes mandatory on 1 January The Group will apply the new rules retrospectively from 1 July 2018, with practical expedients permitted under the standard. Comparatives for 30 June 2018 will not be restated. Page 10 - LogiCamms Limited Consolidated Interim Financial Report for the Half-Year ended

12 Notes to the Condensed Consolidated Financial Statements For the six months ended 5. SUMMARY OF SIGNFICIANT ACCOUNTING POLICIES (CONTINUED) Title of standard Nature of change Impact Date of adoption by the Group AASB 15 Revenue from Contracts with Customers The AASB has issued a new standard for the recognition of revenue. This will replace AASB 118 which covers revenue arising from the sale of goods and the rendering of services and AASB 111 which covers construction contracts. The new standard is based on the principle that revenue is recognised when control of a good or service transfers to a customer. The standard permits either a full retrospective or a modified retrospective approach for the adoption. Management does not expect the effects of applying the new standard on the Group s financial statements to have a material impact. The Group will continue to make more detailed assessments of the effect over the coming months. The application of AASB15 may further result in the identification of separate performance obligations in relation to some contracts which could affect the timing of the recognition of revenue going forward. The Group has chosen not to adopt AASB 9 until it becomes mandatory on 1 January The Group will apply the new rules retrospectively from 1 July 2018, with practical expedients permitted under the standard. Comparatives for 30 June 2018 will not be restated. Title of standard Nature of change Impact Date of adoption by the Group AASB 16 Leases Under the new standard, an asset (the right to use the leased item) and a financial liability to pay rentals are recognised. The Group has not yet determined to what extent lease commitments will result in the recognition of an asset and a liability for future payments and how this will affect the Group s profit and classification of cash flows. Some of the commitments may be covered by an exception for short-term and low-value leases and some commitments may relate to arrangements that will not qualify as leases under AASB16. The impact of this new standard will result in lower operating expenses and higher depreciation and finance charges, as premises leases are brought onto the balance sheet. Debt to equity ratios will increase. Mandatory for financial years commencing on or after 1 January At this stage, the Group does not intend to adopt the standard before its effective date. The Group intends to apply the simplified transitions approach and will not restate comparative amounts for the year prior to first adoption. There are no other standards that are not yet effective and that are expected to have a material impact on the entity in the current or future reporting periods and on foreseeable future transactions. 6. FINANCIAL RISK MANAGEMENT The Group s financial risk management objectives and policies are consistent with that disclosed in the consolidated financial report as at, and for the year ended 30 June. 7. SUBSEQUENT EVENTS The increased NAB banking facility limit of $11.0m was extended by six months from 31 August 2018 to 28 February Management are not aware of any other material events subsequent to balance date that require disclosure. Page 11 - LogiCamms Limited Consolidated Interim Financial Report for the Half-Year ended

13 Notes to the Condensed Consolidated Financial Statements For the six months ended 8. SEGMENT INFORMATION The Group has a single reportable segment in which it operates, being engineering services. This is based on information that is internally provided to the executive group for assessing performance and making operating decisions. Therefore no additional disclosures in relation to the revenues, profit or loss, assets and liabilities or other management items have been made. The Company is domiciled in Australia, with operations across Australia and in New Zealand. Revenue and non-current assets are attributed to the above regions based on the revenue and non-current assets owned by the subsidiaries domiciled in each region and are as follows: 2016 Revenue ($ 000) ($ 000) Australia 36,881 35,418 New Zealand 5,624 6,081 42,505 41, June Non-current assets excluding deferred tax assets ($ 000) ($ 000) Australia 23,252 24,096 New Zealand ,596 24,414 Revenue from any one customer did not exceed 10% of the Group s total revenues for the six months ended (2016: 10% from a single customer in the hydrocarbons sector $4.2m). 9. OTHER INCOME 2016 ($ 000) ($ 000) Reduction in deferred consideration payable Net foreign exchange gains Other items DIVIDENDS No Dividends were declared or paid during the six months ended. 11. INCOME TAX EXPENSE Income tax expense is recognised based on management s best estimate of the weighted average annual income tax rate expected for the full financial year applied to the pre-tax income of the interim period. Page 12 - LogiCamms Limited Consolidated Interim Financial Report for the Half-Year ended

14 Notes to the Condensed Consolidated Financial Statements For the six months ended 11. INCOME TAX EXPENSE (CONTINUED) Numerical reconciliation of income tax expense to prima facie tax payable 2016 ($ 000) ($ 000) Profit/(Loss) for the year 895 (4,775) Income tax (benefit) / expense (33) 836 Profit/(Loss) excluding income tax 862 (3,939) Income tax using the Company s domestic tax rate of 30% 259 (1,182) Effect of tax rates in foreign jurisdictions (2) 2 Withholding taxes paid 64 - Non-deductible expenses 1 18 Non-assessable income - (204) Sundry items - 4 Effect of unrealised foreign exchange (74) (94) Tax losses and incentives not recognised - 2,292 Utilisation of tax losses (281) - Total income tax (benefit) / expense (33) INTANGIBLE ASSETS Goodwill System and software Customer Contracts As at 1 July ($ 000) ($ 000) ($ 000) ($ 000) Cost 58,609 7, ,428 Accumulated amortisation and impairment (39,100) (5,491) (300) (44,891) Net book amount 19,509 2,028-21,537 Total Movement for the six months ended Opening net book amount 19,509 2,028-21,537 Additions - internal development Amortisation charge - (568) - (568) Effect of foreign exchange (438) - - (438) Balance at 19,071 1,792-20,863 As at 1 July Cost 58,171 7, ,289 Accumulated amortisation and impairment (39,100) (6,026) (300) (45,426) Net book amount 19,071 1,792-20,863 Page 13 - LogiCamms Limited Consolidated Interim Financial Report for the Half-Year ended

15 Notes to the Condensed Consolidated Financial Statements For the six months ended 13. PROVISIONS 30 June Current Non-current Total Current Non-current Total ($ 000) ($ 000) ($ 000) ($ 000) ($ 000) ($ 000) Onerous lease provision 1,262 1,022 2,284 1,375 1,788 3,163 Superannuation provision ,011-1,011 Make good provision Service warranties Restructuring costs ,099-1,099 2,522 1,990 4,512 3,839 2,779 6,618 Warranty provision Projects are subsequently reviewed periodically to ensure warranty provisions recognised at commencement remain sufficient. A full reassessment has been performed resulting in the above movement. Onerous lease provision The reduction in the onerous lease provision is due to both the unwind of the provision overtime as well an amount of $0.2m being derecognised following successful negotiations to sub-lease part of the Perth office lease. Superannuation provision The Group has recognised a provision for superannuation amounts potentially owing to certain contractors falling in the SGA Act s expanded definition of employees. The provision is measured at the expected cost of settling the liability. Make good provision The make good provisions are calculated on a $/sqm basis and are reviewed for appropriateness periodically. There have been no changes to the premises leased by the group in the six months ended, however the time cost of this provision has been assessed and adjusted. Restructure provision The restructure provision as at was $nil following the completion of the Group restructure in July. The provision taken up at 30 June was fully paid during the six months ended. No further commitments in this area were made prior to the reporting date. Page 14 - LogiCamms Limited Consolidated Interim Financial Report for the Half-Year ended

16 Directors Declaration For the six months ended In the Directors' opinion: (a) the interim financial statements and notes set out on pages 5 to 14 are in accordance with the Corporations Act 2001, including: (i) (ii) complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements, and giving a true and fair view of the consolidated entity's financial position as at and of its performance for the half-year on that date, and (b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and payable. This declaration is made in accordance with a resolution of Directors. Peter Watson, Chairman Dated at Brisbane, Australia this 27 th day of February Page 15 - LogiCamms Limited Consolidated Interim Financial Report for the Half-Year ended

17 Independent auditor's review report to the members of LogiCamms Limited Report on the Half-Year Financial Report We have reviewed the accompanying half-year financial report of LogiCamms Limited (the Company), which comprises the consolidated statement of financial position as at, the consolidated statement of profit or loss, consolidated statement of changes in equity and consolidated statement of cash flows for the half-year ended on that date, selected explanatory notes and the directors' declaration for LogiCamms Limited. The consolidated entity comprises the Company and the entities it controlled during that 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 gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the half-year financial report that is free from material misstatement whether due to fraud or error. 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 Australian Auditing Standard on Review Engagements ASRE 2410 Review of a 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 half-year 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 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 As the auditor of LogiCamms Limited, 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 In conducting our review, we have complied with the independence requirements of the Corporations Act PricewaterhouseCoopers, ABN Queen Street, BRISBANE QLD 4000, GPO Box 150, BRISBANE QLD 4001 T: , F: , Liability limited by a scheme approved under Professional Standards Legislation.

18 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 LogiCamms Limited is not in accordance with the Corporations Act 2001 including: 1. giving a true and fair view of the consolidated entity s financial position as at and of its performance for the half-year ended on that date; 2. complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations PricewaterhouseCoopers Michael Shewan Partner PricewaterhouseCoopers Brisbane 27 February 2018