quarterly report

31 January 2006
The Manager
Company Announcements Platform
The Australian Stock Exchange
Dear Sir,
Announcement for Immediate Release
Appendix 4C Report
The Company encloses its quarterly report of consolidated cash flows for the 3
month period ended 31 December 2005.
As reported for the 3 months to September 2005, the Company did not complete
the integration of the businesses acquired in July 2005 until the 1st October 2005.
The merged businesses are performing in line with our expectations at the time of
acquisition and the growth in sales on a month by month basis over the six month
period has been as follows:
$,000’s
(excluding GST)
July 764
August 631
September 834
October 1,302
November 1,016
December 1,491
$6,038
Further growth on a monthly basis is anticipated to the levels included in the profit
forecast in prospectus for the rights issue by the Company in 2005. There is a
time lag in collecting sales revenue in accordance with agreed trading terms and
the growth in actual receipts on a month by month basis broadly reflects the
growth in sales as follows:
$,000’s
(excluding GST)
July 387
August 362
September 664
October 1,128
November 645
December 745
$3,931
Operating expenses have been higher than anticipated, however cost savings in
excess of $450,000 annually have been implemented since the 31 December
2005 and a review has been undertaken of all overhead expenses now that the
integration process is completed and present overhead expenses are in line with
projected expense levels.
The company completed a placement of shares at 4.5 cents raising $2.3M in
December 2005 to provide funds for additional working capital and to continue
implementing the strategy of extending the existing business operations interstate
to establish a fully national business.
Yours faithfully,
Ian May
Managing Director
Appendix 4C
Quarterly report for entities
admitted on the basis of commitments
+ See chapter 19 for defined terms.
Appendix 4C Page 1
Rule 4.7B
Appendix 4C
Quarterly report
for entities admitted
on the basis of commitments
Introduced 31/3/2000.
Name of entity
Tele-IP Limited
ABN Quarter ended (“current quarter”)
39 010 568 804 31 December 2005
Consolidated statement of cash flows
Cash flows related to operating activities
Current quarter
$A’000
Year to date
( 6 months)
$A’000
1.1 Receipts from customers
2518 3931
1.2 Payments for (a) staff costs
(b) advertising and marketing
(c) research and development
(d) leased assets
(e) other working capital
(1698) (3006)
1.3 Dividends received
1.4 Interest and other items of a similar nature received 2 4
1.5 Interest and other costs of finance paid (9) (82)
1.6 Income taxes paid
1.7 Other (provide details if material)
- Operating Purchases
- Rent
- GST (Net)
- Integration Costs
- Other
(1739)
(87)
(68)
(62)
-
(3176)
(110)
(50)
(526)
-
Net operating cash flows
(1143)
(3015)
Appendix 4C
Quarterly report for entities
admitted on the basis of commitments
+ See chapter 19 for defined terms.
Appendix 4C Page 2
Current quarter
$A’000
Year to date
( 6 months)
$A’000
1.8 Net operating cash flows (carried forward) (1143) (3015)
Cash flows related to investing activities
1.9 Payment for acquisition of: (a) businesses (item 5)
(b) equity investments
(c) intellectual property
(d) physical non-current
assets
(e) other non-current
assets
0 (2253)
1.10 Proceeds from disposal of: (a) businesses (item 5)
(b) equity investments
(c) intellectual property
(d) physical non-current
assets
(e) other non-current
assets
1.11 Loans to other entities
1.12 Loans repaid by other entities
1.13 Other
Net investing cash flows
0 (2253)
1.14 Total operating and investing cash flows (1143) (5268)
Cash flows related to financing activities
1.15 Proceeds from issues of shares, options, etc. – Funds
raised via Renounceable Rights Issue
2267 3628
1.16 Proceeds from sale of forfeited shares
1.17 Proceeds from borrowings
1.18 Repayment of borrowings 0 (237)
1.19 Dividends paid
1.20 Other – Payments re Renounceable Rights Issue 0 (581)
Net financing cash flows 2267 2810
Net increase (decrease) in cash held
1124
(2458)
1.21 Cash at beginning of quarter/year to date (91) 3491
1.22 Exchange rate adjustments to item 1.20
1.23 Cash at end of quarter 1033 1033
Appendix 4C
Quarterly report for entities
admitted on the basis of commitments
+ See chapter 19 for defined terms.
Appendix 4C Page 3
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the
related entities
Current quarter
$A'000
1.24
Aggregate amount of payments to the parties included in item 1.2
54
1.25
Aggregate amount of loans to the parties included in item 1.11
NONE
1.26
Explanation necessary for an understanding of the transactions
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and
liabilities but did not involve cash flows
NIL
2.2 Details of outlays made by other entities to establish or increase their share in businesses in which the reporting
entity has an interest
NIL
Financing facilities available
Add notes as necessary for an understanding of the position. (See AASB 1026 paragraph 12.2).
Amount available
$A’000
Amount used
$A’000
3.1 Loan facilities
500 365
3.2 Credit standby arrangements
NONE NONE
Appendix 4C
Quarterly report for entities
admitted on the basis of commitments
+ See chapter 19 for defined terms.
Appendix 4C Page 4
Reconciliation of cash
Reconciliation of cash at the end of the quarter (as shown in
the consolidated statement of cash flows) to the related items
in the accounts is as follows.
Current quarter
$A’000
Previous quarter
$A’000
4.1 Cash on hand and at bank 50 41
4.2 Deposits at call
4.3 Bank overdraft (365) (142)
4.4 Other (provide details) Renounceable Rights Issue 1348 10
Total: cash at end of quarter (item 1.23) 1033 (91)
Acquisitions and disposals of business entities
Acquisitions ( Previous quarter )
(Item 1.9(a))
Disposals
(Item 1.10(a))
5.1 Name of entity PGS COMMUNICATION SYSTEMS
P/L, ABLE COMMUNICATIONS &
SERVICE P/L
5.2 Place of incorporation or
registration
MELBOURNE
5.3 Consideration for
acquisition or disposal
$2,253,000 (BEING PART PAYMENT
EQUIVALENT TO 56.25% OF TOTAL
CONSIDERATION).
5.4 Total net assets $5,100,000
5.5 Nature of business COMMUNICATIONS
Compliance statement
1 This statement has been prepared under accounting policies which comply with accounting
standards as defined in the Corporations Law (except to the extent that information is not
required because of note 2) or other standards acceptable to ASX.
2 This statement does give a true and fair view of the matters disclosed.
31 January 2006.
Appendix 4C
Quarterly report for entities
admitted on the basis of commitments
+ See chapter 19 for defined terms.
Appendix 4C Page 5
Notes
1. The quarterly report provides a basis for informing the market how the entity’s activities
have been financed for the past quarter and the effect on its cash position. An entity
wanting to disclose additional information is encouraged to do so, in a note or notes
attached to this report.
2. The definitions in, and provisions of, AASB 1026: Statement of Cash Flows apply to this
report except for the paragraphs of the Standard set out below.
• 6.2 - reconciliation of cash flows arising from operating activities to
operating profit or loss
• 9.2 - itemised disclosure relating to acquisitions
• 9.4 - itemised disclosure relating to disposals
• 12.1(a) - policy for classification of cash items
• 12.3 - disclosure of restrictions on use of cash
• 13.1 - comparative information
3. Accounting Standards. ASX will accept, for example, the use of International
Accounting Standards for foreign entities. If the standards used do not address a topic,
the Australian standard on that topic (if any) must be complied with.