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RSM IFRS Listed Practical Interim LimitedCompany Number 01234567

Interim Report - 31 December 2018

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RSM IFRS Listed Practical Interim LimitedContents31 December 2018

Statement of profit or loss and other comprehensive income 2Statement of financial position 4Statement of changes in equity 6Statement of cash flows 7Notes to the financial statements 8Independent auditor's review report to the members of RSM IFRS Listed Practical Interim Limited 22

General information

The financial statements cover RSM IFRS Listed Practical Interim Limited as a consolidated entity consisting of RSM IFRS Listed Practical Interim Limited and the entities it controlled at the end of, or during, the half-year. The financial statements are presented in Internationaland currency units, which is RSM IFRS Listed Practical Interim Limited's functional and presentation currency.

RSM IFRS Listed Practical Interim Limited is a listed public company limited by shares, incorporated and domiciled in Internationaland. Its registered office and principal place of business are:

Registered office Principal place of business

10th Floor 5th FloorUniversal Administration Building RSM Business Centre12 Highland Street 247 Edward StreetCityville Cityville

The financial statements were authorised for issue, in accordance with a resolution of directors, on 22 February 2019.

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RSM IFRS Listed Practical Interim LimitedStatement of profit or loss and other comprehensive incomeFor the half-year ended 31 December 2018

ConsolidatedNote 31 Dec 2018 31 Dec 2017

CU'000 CU'000

Revenue 3 233,357 218,571

Share of profits of associates accounted for using the equity method 4 1,616 1,437Other income 5 692 192Interest revenue calculated using the effective interest method 543 272Net gain on derecognition of financial assets at amortised cost 50 -

ExpensesChanges in inventories (660) (782)Raw materials and consumables used (68,486) (65,559)Employee benefits expense (112,431) (110,862)Depreciation and amortisation expense (10,570) (10,181)Impairment of receivables (256) (98)Other expenses (17,612) (16,088)Finance costs 6 (1,119) (1,726)

Profit before income tax expense 25,124 15,176

Income tax expense (7,159) (4,169)

Profit after income tax expense for the half-year 17,965 11,007

Other comprehensive income

Items that will not be reclassified subsequently to profit or lossGain on the revaluation of equity instruments at fair value through other comprehensive income, net of tax 35 -

Items that may be reclassified subsequently to profit or lossCash flow hedges transferred to profit or loss, net of tax - (2)Cash flow hedges transferred to inventory in the statement of financial position, net of tax (1) (5)Net change in the fair value of cash flow hedges taken to equity, net of tax (3) (12)Foreign currency translation (157) (98)

Other comprehensive income for the half-year, net of tax (126) (117)

Total comprehensive income for the half-year 17,839 10,890

Profit for the half-year is attributable to:Non-controlling interest 71 114Owners of RSM IFRS Listed Practical Interim Limited 17,894 10,893

17,965 11,007

Total comprehensive income for the half-year is attributable to:Non-controlling interest 71 114Owners of RSM IFRS Listed Practical Interim Limited 17,768 10,776

17,839 10,890

The above statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes

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CU'000 CU'000

Cents Cents

Basic earnings per share 12.18 7.73Diluted earnings per share 12.18 7.73


3



CU'000 CU'000

Assets

Current assetsCash and cash equivalents 26,136 22,258Trade and other receivables 7 13,420 13,782Contract assets 8 2,458 -Inventories 39,525 40,185Financial assets at fair value through profit or loss 360 -Other 9 3,935 3,152

85,834 79,377Non-current assets classified as held for sale 10 6,000 -Total current assets 91,834 79,377

Non-current assetsReceivables 145 135Investments accounted for using the equity method 34,192 32,576Financial assets at fair value through other comprehensive income 170 -Investment properties 46,900 46,900Property, plant and equipment 121,253 129,690Intangibles 12,170 12,357Deferred tax 9,860 8,877Other 11 2,308 1,260Total non-current assets 226,998 231,795

Total assets 318,832 311,172

Liabilities

Current liabilitiesTrade and other payables 20,004 19,468Contract liabilities 12 2,269 -Borrowings 6,114 4,475Derivative financial instruments 122 116Income tax 6,701 4,497Employee benefits 8,352 8,270Provisions 3,494 3,362Other 13 2,130 3,352

49,186 43,540Liabilities directly associated with assets classified as held for sale 4,000 -Total current liabilities 53,186 43,540

Non-current liabilitiesBorrowings 20,823 21,630Deferred tax 4,617 3,318Employee benefits 11,149 10,975Provisions 1,475 1,325Total non-current liabilities 38,064 37,248

Total liabilities 91,250 80,788

Net assets 227,582 230,384


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CU'000 CU'000

EquityIssued capital 182,953 182,953Reserves 3,276 3,402Retained profits 23,990 26,737Equity attributable to the owners of RSM IFRS Listed Practical Interim Limited 210,219 213,092Non-controlling interest 17,363 17,292

Total equity 227,582 230,384


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CU'000 CU'000

Issued RetainedNon-

controllingTotal equitycapital Reserves profits interest

Consolidated CU'000 CU'000 CU'000 CU'000 CU'000

Balance at 1 July 2017 182,678 3,625 15,310 17,107 218,720

Profit after income tax expense for the half-year - - 10,893 114 11,007Other comprehensive income for the half-year, net of tax - (117) - - (117)

Total comprehensive income for the half-year - (117) 10,893 114 10,890

Transactions with owners in their capacity as owners:Dividends paid (note 14) - - (11,744) - (11,744)

Balance at 31 December 2017 182,678 3,508 14,459 17,221 217,866

Issued RetainedNon-

controllingTotal equitycapital Reserves profits interest

Consolidated CU'000 CU'000 CU'000 CU'000 CU'000

Balance at 1 July 2018 182,953 3,402 26,737 17,292 230,384

Adjustment for change in accounting policy (note 1) - - 1,396 - 1,396

Balance at 1 July 2018 - restated 182,953 3,402 28,133 17,292 231,780

Profit after income tax expense for the half-year - - 17,894 71 17,965Other comprehensive income for the half-year, net of tax - (126) - - (126)

Total comprehensive income for the half-year - (126) 17,894 71 17,839

Transactions with owners in their capacity as owners:Dividends paid (note 14) - - (22,037) - (22,037)

Balance at 31 December 2018 182,953 3,276 23,990 17,363 227,582


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CU'000 CU'000

Cash flows from operating activitiesReceipts from customers 254,020 237,416Payments to suppliers and employees (222,236) (214,235)

31,784 23,181Interest received 543 272Other revenue 2,123 1,691Interest and other finance costs paid (1,119) (1,726)Income taxes paid (5,266) (4,231)

Net cash from operating activities 28,065 19,187

Cash flows from investing activitiesPayments for investments (510) -Payments for property, plant and equipment (8,072) (1,524)Proceeds from disposal of investments 80 -Proceeds from disposal of property, plant and equipment 1,511 250

Net cash used in investing activities (6,991) (1,274)

Cash flows from financing activitiesProceeds from borrowings 10,000 -Dividends paid 14 (22,037) (11,744)Repayment of borrowings (5,168) (12,294)

Net cash used in financing activities (17,205) (24,038)

Net increase/(decrease) in cash and cash equivalents 3,869 (6,125)Cash and cash equivalents at the beginning of the financial half-year 22,258 10,371Effects of exchange rate changes on cash and cash equivalents 9 5

Cash and cash equivalents at the end of the financial half-year 26,136 4,251


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RSM IFRS Listed Practical Interim LimitedNotes to the financial statements31 December 2018

Note 1. Significant accounting policies

These general purpose financial statements for the interim half-year reporting period ended 31 December 2018 have been prepared in accordance with International Financial Reporting Standard IAS 34 'Interim Financial Reporting', as appropriate for for-profit oriented entities.

These general purpose financial statements do not include all the notes of the type normally included in annual financial statements. Accordingly, these financial statements are to be read in conjunction with the annual report for the year ended 30 June 2018.

The principal accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period, except for the policies stated below.

New or amended Accounting Standards and Interpretations adoptedThe consolidated entity has adopted all of the new or amended Accounting Standards and Interpretations issued by the International Accounting Standards Board ('IASB') that are mandatory for the current reporting period.

Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.

The following Accounting Standards and Interpretations are most relevant to the consolidated entity:

IFRS 9 Financial InstrumentsThe consolidated entity has adopted IFRS 9 from 1 July 2018. The standard introduced new classification and measurement models for financial assets. A financial asset shall be measured at amortised cost if it is held within a business model whose objective is to hold assets in order to collect contractual cash flows which arise on specified dates and that are solely principal and interest. A debt investment shall be measured at fair value through other comprehensive income if it is held within a business model whose objective is to both hold assets in order to collect contractual cash flows which arise on specified dates that are solely principal and interest as well as selling the asset on the basis of its fair value. All other financial assets are classified and measured at fair value through profit or loss unless the entity makes an irrevocable election on initial recognition to present gains and losses on equity instruments (that are not held-for-trading or contingent consideration recognised in a business combination) in other comprehensive income ('OCI'). Despite these requirements, a financial asset may be irrevocably designated as measured at fair value through profit or loss to reduce the effect of, or eliminate, an accounting mismatch. For financial liabilities designated at fair value through profit or loss, the standard requires the portion of the change in fair value that relates to the entity's own credit risk to be presented in OCI (unless it would create an accounting mismatch). New simpler hedge accounting requirements are intended to more closely align the accounting treatment with the risk management activities of the entity. New impairment requirements use an 'expected credit loss' ('ECL') model to recognise an allowance. Impairment is measured using a 12-month ECL method unless the credit risk on a financial instrument has increased significantly since initial recognition in which case the lifetime ECL method is adopted. For receivables, a simplified approach to measuring expected credit losses using a lifetime expected loss allowance is available.

IFRS 15 Revenue from Contracts with CustomersThe consolidated entity has adopted IFRS 15 from 1 July 2018. The standard provides a single comprehensive model for revenue recognition. The core principle of the standard is that an entity shall recognise revenue to depict the transfer of promised goods or services to customers at an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard introduced a new contract-based revenue recognition model with a measurement approach that is based on an allocation of the transaction price. This is described further in the accounting policies below. Credit risk is presented separately as an expense rather than adjusted against revenue. Contracts with customers are presented in an entity's statement of financial position as a contract liability, a contract asset, or a receivable, depending on the relationship between the entity's performance and the customer's payment. Customer acquisition costs and costs to fulfil a contract can, subject to certain criteria, be capitalised as an asset and amortised over the contract period.

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Note 1. Significant accounting policies (continued)

Impact of adoptionIFRS 9 and IFRS 15 were adopted using the modified retrospective approach and as such comparatives have not been restated. The impact of adoption on opening retained profits as at 1 July 2018 was as follows:

1 July 2018CU'000

Allowance for expected credit losses (IFRS 9) (824)Contract assets (IFRS 15) 294Customer acquisition and fulfilment costs (IFRS 15) 2,848Right of return assets and refund liabilities (IFRS 15) (324)Tax effect on the above adjustments (598)

Impact on opening retained profits as at 1 July 2018 1,396

The impact of the new Accounting Standards compared with the previous Accounting Standards on the current reporting period is as follows:

New Previous DifferenceCU'000 CU'000 CU'000

Revenue 233,357 233,786 (429)Interest revenue calculated using the effective interest method 543 - 543Raw materials and consumables used (68,486) (68,539) 53Employee benefits expense (112,431) (113,585) 1,154Depreciation and amortisation expense (10,570) (9,550) (1,020)Impairment of receivables (256) (164) (92)Other expenses (17,612) (17,767) 155

Profit before income tax expense 25,124 24,760 364Income tax expense (7,159) (7,050) (109)

Profit after income tax expense 17,965 17,710 255

Trade and other receivables 13,420 14,336 (916)Contract assets 2,458 - 2,458Other current assets 3,935 3,180 755Deferred tax assets 9,860 9,289 571Other non-current assets 2,308 1,260 1,048Contract liabilities 2,269 - 2,269Other current liabilities 2,130 3,412 (1,282)Deferred tax liabilities 4,617 3,339 1,278

Net assets 227,582 225,931 1,651

Revenue recognitionThe consolidated entity recognises revenue as follows:

Revenue from contracts with customersRevenue is recognised at an amount that reflects the consideration to which the consolidated entity is expected to be entitled in exchange for transferring goods or services to a customer. For each contract with a customer, the consolidated entity: identifies the contract with a customer; identifies the performance obligations in the contract; determines the transaction price which takes into account estimates of variable consideration and the time value of money; allocates the transaction price to the separate performance obligations on the basis of the relative stand-alone selling price of each distinct good or service to be delivered; and recognises revenue when or as each performance obligation is satisfied in a manner that depicts the transfer to the customer of the goods or services promised.

9



Variable consideration within the transaction price, if any, reflects concessions provided to the customer such as discounts, rebates and refunds, any potential bonuses receivable from the customer and any other contingent events. Such estimates are determined using either the 'expected value' or 'most likely amount' method. The measurement of variable consideration is subject to a constraining principle whereby revenue will only be recognised to the extent that it is highly probable that a significant reversal in the amount of cumulative revenue recognised will not occur. The measurement constraint continues until the uncertainty associated with the variable consideration is subsequently resolved. Amounts received that are subject to the constraining principle are initially recognised as deferred revenue in the form of a separate refund liability.

Sale of goodsRevenue from the sale of goods is recognised at the point in time when the customer obtains control of the goods, which is generally at the time of delivery.

Rendering of servicesRevenue from a contract to provide services is recognised over time as the services are rendered based on either a fixed price or an hourly rate.

InterestInterest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the financial asset to the net carrying amount of the financial asset.

Other revenueOther revenue is recognised when it is received or when the right to receive payment is established.

Trade and other receivablesTrade receivables are initially recognised at fair value and subsequently measured at amortised cost using the effective interest method, less any allowance for expected credit losses. Trade receivables are generally due for settlement within 30 days.

The consolidated entity has applied the simplified approach to measuring expected credit losses, which uses a lifetime expected loss allowance. To measure the expected credit losses, trade receivables have been grouped based on days overdue.

Other receivables are recognised at amortised cost, less any allowance for expected credit losses.

Contract assetsContract assets are recognised when the consolidated entity has transferred goods or services to the customer but where the consolidated entity is yet to establish an unconditional right to consideration. Contract assets are treated as financial assets for impairment purposes.

Customer acquisition costsCustomer acquisition costs are capitalised as an asset where such costs are incremental to obtaining a contract with a customer and are expected to be recovered. Customer acquisition costs are amortised on a straight-line basis over the term of the contract.

Costs to obtain a contract that would have been incurred regardless of whether the contract was obtained or which are not otherwise recoverable from a customer are expensed as incurred to profit or loss. Incremental costs of obtaining a contract where the contract term is less than one year is immediately expensed to profit or loss.

Customer fulfilment costsCustomer fulfilment costs are capitalised as an asset when all the following are met: (i) the costs relate directly to the contract or specifically identifiable proposed contract; (ii) the costs generate or enhance resources of the consolidated entity that will be used to satisfy future performance obligations; and (iii) the costs are expected to be recovered. Customer fulfilment costs are amortised on a straight-line basis over the term of the contract.

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Right of return assetsRight of return assets represents the right to recover inventory sold to customers and is based on an estimate of customers who may exercise their right to return the goods and claim a refund. Such rights are measured at the value at which the inventory was previously carried prior to sale, less expected recovery costs and any impairment.

Investments and other financial assetsInvestments and other financial assets are initially measured at fair value. Transaction costs are included as part of the initial measurement, except for financial assets at fair value through profit or loss. Such assets are subsequently measured at either amortised cost or fair value depending on their classification. Classification is determined based on both the business model within which such assets are held and the contractual cash flow characteristics of the financial asset unless, an accounting mismatch is being avoided.

Financial assets are derecognised when the rights to receive cash flows have expired or have been transferred and the consolidated entity has transferred substantially all the risks and rewards of ownership. When there is no reasonable expectation of recovering part or all of a financial asset, it's carrying value is written off.

Financial assets at fair value through profit or lossFinancial assets not measured at amortised cost or at fair value through other comprehensive income are classified as financial assets at fair value through profit or loss. Typically, such financial assets will be either: (i) held for trading, where they are acquired for the purpose of selling in the short-term with an intention of making a profit, or a derivative; or (ii) designated as such upon initial recognition where permitted. Fair value movements are recognised in profit or loss.

Financial assets at fair value through other comprehensive incomeFinancial assets at fair value through other comprehensive income include equity investments which the consolidated entity intends to hold for the foreseeable future and has irrevocably elected to classify them as such upon initial recognition.

Impairment of financial assetsThe consolidated entity recognises a loss allowance for expected credit losses on financial assets which are either measured at amortised cost or fair value through other comprehensive income. The measurement of the loss allowance depends upon the consolidated entity's assessment at the end of each reporting period as to whether the financial instrument's credit risk has increased significantly since initial recognition, based on reasonable and supportable information that is available, without undue cost or effort to obtain.

Where there has not been a significant increase in exposure to credit risk since initial recognition, a 12-month expected credit loss allowance is estimated. This represents a portion of the asset's lifetime expected credit losses that is attributable to a default event that is possible within the next 12 months. Where a financial asset has become credit impaired or where it is determined that credit risk has increased significantly, the loss allowance is based on the asset's lifetime expected credit losses. The amount of expected credit loss recognised is measured on the basis of the probability weighted present value of anticipated cash shortfalls over the life of the instrument discounted at the original effective interest rate.

For financial assets measured at fair value through other comprehensive income, the loss allowance is recognised within other comprehensive income. In all other cases, the loss allowance is recognised in profit or loss.

Contract liabilitiesContract liabilities represent the consolidated entity's obligation to transfer goods or services to a customer and are recognised when a customer pays consideration, or when the consolidated entity recognises a receivable to reflect its unconditional right to consideration (whichever is earlier) before the consolidated entity has transferred the goods or services to the customer.

Refund liabilitiesRefund liabilities are recognised where the consolidated entity receives consideration from a customer and expects to refund some, or all, of that consideration to the customer. A refund liability is measured at the amount of consideration received or receivable for which the consolidated entity does not expect to be entitled and is updated at the end of each reporting period for changes in circumstances. Historical data is used across product lines to estimate such returns at the time of sale based on an expected value methodology.

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Note 2. Operating segments

Identification of reportable operating segmentsThe consolidated entity is organised into three operating segments based on differences in products and services provided: computer manufacturing, computer retailing and computer distribution. These operating segments are based on the internal reports that are reviewed and used by the Board of Directors (who are identified as the Chief Operating Decision Makers ('CODM')) in assessing performance and in determining the allocation of resources. There is no aggregation of operating segments.

Other segments represent the investment property holdings and rental income of the consolidated entity.

The CODM reviews EBITDA (earnings before interest, tax, depreciation and amortisation). The accounting policies adopted for internal reporting to the CODM are consistent with those adopted in the financial statements.

The information reported to the CODM is on a monthly basis.

Types of products and servicesThe principal products and services of each of these operating segments are as follows:Computer manufacturing the manufacture and wholesaling of computers and components in InternationalandComputer retailing the retailing of computers and components predominately in InternationalandComputer distribution the freight and cartage of computers and components to customers in Internationaland

Intersegment transactionsIntersegment transactions were made at market rates. The computer retailing operating segment purchases finished goods from the computer manufacturing operating segment and pays for freight costs to the computer distribution operating segment. Intersegment transactions are eliminated on consolidation.

Intersegment receivables, payables and loansIntersegment loans are initially recognised at the consideration received. Intersegment loans receivable and loans payable that earn or incur non-market interest are not adjusted to fair value based on market interest rates. Intersegment loans are eliminated on consolidation.

12



Operating segment information

Computer Computer Computer Othermanufacturing retailing distribution segments Total

Consolidated - 31 Dec 2018 CU'000 CU'000 CU'000 CU'000 CU'000

RevenueSales to external customers 13,233 216,423 1,848 - 231,504Intersegment sales 101,008 - 4,453 - 105,461Total sales revenue 114,241 216,423 6,301 - 336,965Other revenue - - - 1,853 1,853Total segment revenue 114,241 216,423 6,301 1,853 338,818Intersegment eliminations (105,461)Unallocated revenue:Interest revenue 543Total revenue 233,900

EBITDA 8,393 26,011 1,804 62 36,270Depreciation and amortisation (10,570)Interest revenue 543Finance costs (1,119)Profit before income tax expense 25,124Income tax expense (7,159)Profit after income tax expense 17,965

AssetsSegment assets 155,823 119,731 21,405 - 296,959Intersegment eliminations (15,568)Unallocated assets:Cash and cash equivalents 18,551Ordinary shares 530Land and buildings 8,500Deferred tax asset 9,860Total assets 318,832

LiabilitiesSegment liabilities 41,390 38,249 6,861 - 86,500Intersegment eliminations (15,568)Unallocated liabilities:Provision for income tax 6,701Bank loans 9,000Deferred tax liability 4,617Total liabilities 91,250

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Computer Computer Computer Othermanufacturing retailing distribution segments Total

Consolidated - 31 Dec 2017 CU'000 CU'000 CU'000 CU'000 CU'000

RevenueSales to external customers 12,169 202,924 1,787 - 216,880Intersegment sales 95,711 - 1,404 - 97,115Total sales revenue 107,880 202,924 3,191 - 313,995Other revenue - - - 1,691 1,691Total segment revenue 107,880 202,924 3,191 1,691 315,686Intersegment eliminations (97,115)Unallocated revenue:Interest revenue 272Total revenue 218,843

EBITDA 5,991 19,337 469 1,014 26,811Depreciation and amortisation (10,181)Interest revenue 272Finance costs (1,726)Profit before income tax expense 15,176Income tax expense (4,169)Profit after income tax expense 11,007

Note 3. Revenue

Consolidated31 Dec 2018 31 Dec 2017

CU'000 CU'000

Revenue from contracts with customersSale of goods 229,656 215,093Rendering of services 1,848 1,787

231,504 216,880

Other revenueRent from investment properties 1,812 1,655Other revenue 41 36

1,853 1,691

Revenue 233,357 218,571

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Disaggregation of revenueThe disaggregation of revenue from contracts with customers is as follows:

Computer Computer Computermanufacturing retailing distribution Total

Consolidated - 31 Dec 2018 CU'000 CU'000 CU'000 CU'000

Major product linesLaptops 6,699 179,980 1,646 188,325Desktops 2,106 23,614 202 25,922Components 4,428 12,829 - 17,257

13,233 216,423 1,848 231,504

Geographical regionsInternationaland 11,478 191,632 1,848 204,958Neighbourland 1,147 18,364 - 19,511Rest of the World 608 6,427 - 7,035

13,233 216,423 1,848 231,504

Timing of revenue recognitionGoods transferred at a point in time 13,233 216,423 - 229,656Services transferred over time - - 1,848 1,848

13,233 216,423 1,848 231,504

IFRS 15 was adopted using the modified retrospective approach and as such comparatives have not been provided for disaggregation of revenue.

Note 4. Share of profits of associates accounted for using the equity method


CU'000 CU'000

Share of profit - associates 1,616 1,437

Note 5. Other income


CU'000 CU'000

Net gain on disposal of property, plant and equipment 422 192Insurance recoveries 270 -

Other income 692 192

15



Note 6. Expenses


CU'000 CU'000

Profit before income tax includes the following specific expenses:

Cost of salesCost of sales 142,226 138,991

Finance costsInterest and finance charges paid/payable 1,119 1,726

Net foreign exchange lossNet foreign exchange loss 9 4

Rental expense relating to operating leasesMinimum lease payments 18,399 17,437

Write off of assetsInventories 269 56

Note 7. Current assets - trade and other receivables

Consolidated31 Dec 2018 30 Jun 2018

CU'000 CU'000

Trade receivables 14,344 13,785Less: Allowance for expected credit losses (30 Jun 2018: Provision for impairment of receivables) (991) (50)

13,353 13,735

Other receivables 60 43Interest receivable 7 4

13,420 13,782

Allowance for expected credit lossesThe consolidated entity has recognised a loss of CU256,000 in profit or loss in respect of the expected credit losses for the half-year ended 31 December 2018.

16



The ageing of the receivables and allowance for expected credit losses provided for above are as follows:

Expected credit loss

rateCarrying amount

Allowance for expected credit losses

31 Dec 2018 31 Dec 2018 31 Dec 2018Consolidated % CU'000 CU'000

Not overdue 1% 7,719 770 to 3 months overdue 5% 4,129 2063 to 6 months overdue 10% 1,607 161Over 6 months overdue 50% 1,094 547

14,549 991

Note 8. Current assets - contract assets


CU'000 CU'000

Contract assets 2,458 -

ReconciliationReconciliation of the written down values at the beginning and end of the current and previous financial half-year are set out below:

Opening balance - -Additions 7,672 -Cumulative catch-up adjustments 1,531 -Transfer to trade receivables (6,745) -

Closing balance 2,458 -

Note 9. Current assets - other


CU'000 CU'000

Accrued revenue - 2,214Prepayments 1,110 873Security deposits 65 65Customer acquisition costs 1,417 -Customer fulfilment costs 672 -Right of return assets 671 -

3,935 3,152

17



Note 10. Current assets - non-current assets classified as held for sale


CU'000 CU'000

Land 6,000 -

The vacant land situated at 22 Smith Street, Cityville is currently for sale and is expected to be sold within five months from the reporting date through an auction process. The proposed development of a head office building on the site has been abandoned and the land is now surplus to requirements. The land is not allocated to an operating segment.

Note 11. Non-current assets - other


CU'000 CU'000

Security deposits 1,260 1,260Customer acquisition costs 564 -Customer fulfilment costs 484 -

2,308 1,260

Note 12. Current liabilities - contract liabilities


CU'000 CU'000

Contract liabilities 2,269 -

ReconciliationReconciliation of the written down values at the beginning and end of the current and previous financial half-year are set out below:

Opening balance - -Payments received in advance 2,435 -Cumulative catch-up adjustments 174 -Transfer to revenue - performance obligations satisfied in previous periods (208) -Transfer to revenue - other balances (132) -

Closing balance 2,269 -

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Unsatisfied performance obligationsThe aggregate amount of the transaction price allocated to the performance obligations that are unsatisfied at the end of the reporting period was CU3,891,000 as at 31 December 2018 (CUnil as at 30 June 2018) and is expected to be recognised as revenue in future periods as follows:


CU'000 CU'000

Within 6 months 1,482 -6 to 12 months 1,128 -12 to 18 months 874 -18 to 24 months 407 -

3,891 -

Note 13. Current liabilities - other


CU'000 CU'000

Accrued expenses 1,143 2,261Revenue received in advance - 1,091Refund liabilities 987 -

2,130 3,352

Note 14. Equity - dividends

Dividends paid during the financial half-year were as follows:


CU'000 CU'000

Final dividend for the year ended 30 June 2018 (31 Dec 2017: 30 June 2017) of 15 cents (31 Dec 2017: 8 cents) per ordinary share 22,037 11,744

On [date] the directors declared an interim dividend for the year ending 30 June 2019 of 5 cents per ordinary share to be paid on [date], a total estimated distribution of CU7,346,000 based on the number of ordinary shares on issue as at [date].

19



Note 15. Fair value measurement

Fair value hierarchyThe following tables detail the consolidated entity's assets and liabilities, measured or disclosed at fair value, using a three level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being:Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access at the measurement dateLevel 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly or indirectlyLevel 3: Unobservable inputs for the asset or liability

Level 1 Level 2 Level 3 TotalConsolidated - 31 Dec 2018 CU'000 CU'000 CU'000 CU'000

AssetsOrdinary shares at fair value through profit or loss 360 - - 360Ordinary shares at fair value through other comprehensive income - - 170 170Investment properties - - 46,900 46,900Land and buildings - - 58,500 58,500Total assets 360 - 105,570 105,930

LiabilitiesForward foreign exchange contracts - 122 - 122Total liabilities - 122 - 122

Level 1 Level 2 Level 3 TotalConsolidated - 30 Jun 2018 CU'000 CU'000 CU'000 CU'000

AssetsInvestment properties - - 46,900 46,900Land and buildings - - 58,500 58,500Total assets - - 105,400 105,400

LiabilitiesForward foreign exchange contracts - 116 - 116Total liabilities - 116 - 116

Assets and liabilities held for sale are measured at fair value on a non-recurring basis.

There were no transfers between levels during the financial half-year.

The carrying amounts of trade and other receivables and trade and other payables are assumed to approximate their fair values due to their short-term nature.

The fair value of financial liabilities is estimated by discounting the remaining contractual maturities at the current market interest rate that is available for similar financial liabilities.

Valuation techniques for fair value measurements categorised within level 2 and level 3Unquoted investments have been valued using a discounted cash flow model.

The basis of the valuation of investment properties is fair value. The investment properties are revalued annually based on independent assessments by a member of the [NAME] having recent experience in the location and category of investment property being valued. Valuations are based on current prices in an active market for similar properties of the same location and condition, subject to similar leases and takes into consideration occupancy rates and returns on investment.

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The basis of the valuation of land and buildings is fair value. The land and buildings were last revalued on 30 June 2017 based on independent assessments by a member of the Internationaland Property Institute having recent experience in the location and category of land and buildings being valued. The directors do not believe that there has been a material movement in fair value since the revaluation date. Valuations are based on current prices for similar properties in the same location and condition.

Derivative financial instruments have been valued using quoted market rates. This valuation technique maximises the use of observable market data where it is available and relies as little as possible on entity specific estimates.

Level 3 assets and liabilitiesMovements in level 3 assets and liabilities during the current financial half-year are set out below:

Ordinary shares at fair

value Investment Land andthrough OCI properties buildings Total

Consolidated CU'000 CU'000 CU'000 CU'000

Balance at 1 July 2018 - 46,900 58,500 105,400Gains recognised in other comprehensive income 50 - - 50Additions 200 - - 200Disposals (80) - - (80)

Balance at 31 December 2018 170 46,900 58,500 105,570

The level 3 assets and liabilities unobservable inputs and sensitivity are as follows:

RangeDescription Unobservable inputs (weighted average) Sensitivity

Ordinary shares at fair value through other comprehensive income

Growth rate 2.5% to 3.5% (3.0%) 0.25% change would increase/decrease fair value by CU5,000

Discount rate 8.0% to 11.0% (9.5%) 1.00% change would increase/decrease fair value by CU14,000

Investment properties Rental yield 7.5% to 9.0% (8.5%) 0.75% change would increase/decrease fair value by CU352,000

Rental growth 1.25% to 2.0% (1.75%) 0.25% change would increase/decrease fair value by CU117,000

Long-term vacancy rate 5.0% to 9.0% (7.5%) 0.75% change would increase/decrease fair value by CU276,000


Land and buildings Rental yield 6.0% to 8.0% (7.5%) 0.75% change would increase/decrease fair value by CU440,000


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Note 16. Contingent liabilities

During the financial half-year there was a work related accident involving a member of staff. Although the investigation is still in progress, the directors are of the opinion, based on independent legal advice, that the consolidated entity will not be found to be at fault and any potential compensation will be adequately covered by the consolidated entity's insurance policy. Accordingly, no provision has been provided within these financial statements.

The consolidated entity has given bank guarantees as at 31 December 2018 of CU3,105,000 (30 Jun 2018: CU2,844,000) to various landlords.

Note 17. Events after the reporting period

Apart from the dividend declared as disclosed in note 14, no other matter or circumstance has arisen since 31 December 2018 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the consolidated entity's state of affairs in future financial years.

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RSM IFRS Listed Practical Interim LimitedIndependent auditor's review report to the members of RSM IFRS Listed Practical Interim Limited

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RSM IFRS Listed Practical Interim LimitedIndependent auditor's review report to the members of RSM IFRS Listed Practical Interim Limited

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