JCurve Solutions Limited
ABN 63 088 257 729
Level 8, 9 Help Street
Chatswood NSW 2067
[T] +61 2 9467 9200
ContentsCORPORATE INFORMATION 3
CHAIRMAN'S LETTER 4
DIRECTORS' REPORT INCLUDING REMUNERATION REPORT 6
AUDITOR'S INDEPENDENCE DECLARATION 23
STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME 24
STATEMENT OF FINANCIAL POSITION 25
STATEMENT OF CASH FLOWS 26
STATEMENT OF CHANGES IN EQUITY 27
CONTENTS TO THE NOTES TO THE FINANCIAL STATEMENTS 28
NOTES TO THE FINANCIAL STATEMENTS 29
DIRECTORS' DECLARATION 58
INDEPENDENT AUDITOR'S REPORT 59
SHAREHOLDER INFORMATION 63
CORPORATE INFORMATION ABN 63 088 257 729 DirectorsMr Bruce Hatchman Mr Mark Jobling Mr David Franks
Company SecretaryMr David Franks
Registered office Level 8, 9 Help Street ChatswoodNew South Wales 2067 Ph. (02) 9467 9200
Principal place of business Level 8, 9 Help Street ChatswoodNew South Wales 2067 Ph. (02) 9467 9200
Share RegisterComputershare Investor Services Pty Ltd Level 11, 172 St Georges Terrace
Perth WA 6000
Ph. (08) 9323 2000
AuditorsBDO East Coast Partnership Level 11, 1 Margaret Street
Sydney NSW 2000 Australia
Securities Exchange Listings Australian Securities Exchange ASX Code: JCS Websitewww.jcurvesolutions.com
CHAIRMAN'S LETTERJCurve Solutions Limited is embarking on a sustained period of ambitious business growth. We are aiming to increase revenues, diversify market offerings, expand geographical territory and invest in our people to increase the value provided to customers which we expect will, in the longer-term, increase shareholder value. After two years of change and consolidation, the 2017 financial year was the year JCurve Solutions made substantial inroads into the achievement of its strategic priorities.
The Management team and Board have been busy focusing on our three stated strategic objectives. I am pleased to report substantial progress has been made through the financial year on each strategic objective:
Maximising value from the TEMS business
Over the past twelve months the Telecommunications Expense Management (TEMS) product division has consolidated and stabilised in line with our expectations for the sector. Customer churn has slowed to the anticipated level at this stage of our products' lifecycle, and, our management team continue to build strong customer relationships. Our proprietary TEMS products continue to add substantial value to over 100 customers across Australia.
During the year ending 30 June 2017 we were able to recognise $3.1 million of revenue from TEMS solutions. While this was a 28% decrease from the $4.3 million generated in FY2016 it remained in line with forecast levels. Further internal restructures which reduced costs ensured the TEMS division was able to generate a $1.8m profit before tax and before R&D expenditure for FY2017.
The industry is changing and has been consolidating for a number of years whereby product relevance remains for a lesser number of specific users, so reduced revenue was expected. Over the past 6-12 months we have reinvested the profits generated by the TEMS product division into research and development (R&D) activities which are intended to not only minimise TEMS churn but capitalise on related expense management opportunities. JCurve Solutions remains committed to the ongoing maximisation of value from the TEMS business which, while it has been declining year on year, remains a profitable part of the Group.
Investing to grow the JCurve ERP business
This strategic initiative was expanded during FY2017 to include not only growth in JCurveERP customers and revenue but overall ERP growth following significant developments with market leading product vendors NetSuite and MYOB.
During the year ended 30 June 2017, the ERP division grew by 36% after recognising $7.3m of revenue, a substantial increase on the $5.3m recognised in FY2016. We are forecasting stronger growth in FY2017. The $7.3m in revenue generated helped the ERP Division to generate a profit before tax of $1m for the year.
In August 2016, the Group signed a new Solution Provider ("SP") Partner agreement with NetSuite allowing JCurve Solutions to sell the NetSuite software to businesses of all sizes across Australia and New Zealand. This new agreement better enables the Group to capitalise on the fast-growing demand for cloud ERP software. Where previously JCurve Solutions was restricted to selling and servicing the SME market, as a five star NetSuite SP Partner, we have the ability to migrate customers from the JCurveERP edition onto NetSuite mid-market and enterprise editions as well as selling customers the NetSuite mid-market and enterprise editions directly.
In February 2017, we announced our new partnership with MYOB, the fastest growing cloud ERP provider in Australia and New Zealand, further expanding the portfolio of solutions offered by JCurve Solutions. Partnering with MYOB Advanced allows our customers a choice of their preferred cloud ERP platform to achieve more targeted product functionality for their specific needs.
On becoming a NetSuite SP Partner and MYOB Advanced Partner, the management team focused on the recruitment and training of the sales and professional services team members to capitalise on the increasing opportunities the significantly larger target market allowed. We now have a team of Business Development Managers and a marketing team who have generated a record pipeline of opportunities. Closing the opportunities into sales is a priority for FY2018.
Diversification by leveraging our core strengths and capabilities
The Management Team and Board have investigated a number of potential targets throughout both the Asian and Australian markets. We have incorporated a Singapore domiciled subsidiary and continue dialogue with multiple parties. While we are disappointed not to have made an acquisition, it hasn't been through a lack of trying. We will continue to look for the right opportunities.
From a diversification perspective progress was made in establishing six new partnerships which extended our cloud ERP offering while the partnership with MYOB further expanded our portfolio of products available to our target market. Effective and increasing research and development in expense management ensures we are well positioned to take advantage of opportunities which may arise.
Revenue recognition
Shareholders will notice through the Annual Report that JCurve Solutions has changed its revenue recognition accounting policy by early adopting AASB 15 - Revenue from Contracts with Customers ("AASB 15"). The numbers are reflective of this change and comparatives have been restated where applicable throughout the Annual Financial Report. The Directors believe that the early adoption of AASB 15 will allow the Group to change its revenue recognition accounting policy to more accurately disclose the underlying business performance and financial position of JCurve Solutions. The revised accounting policy more closely aligns with the personnel exertion and costs incurred by JCurve Solutions and is in line with the contractual obligations of customer contracts which are non-refundable and in the majority of contracts invoiced annually in advance.
JCurve Solutions Ltd. published this content on 22 August 2017 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 22 August 2017 23:27:03 UTC.
Original documenthttp://clients3.weblink.com.au/clients/jcurve/headline.aspx?headlineid=21030963
Public permalinkhttp://www.publicnow.com/view/A92C3DA2D4A599BE6545DEBA023C485CDD1964EB