Annual Report for the 18 months ended 30 June 2021
ASX Announcement, 14 September 2021
Attached is the Webcentral Group Limited Annual Report for the 18 months ended 30 June 2021, including the audited Annual Financial Report.
A copy of the Annual Report will be sent to those shareholders who have elected to receive a printed copy. The Annual Report will also be available on the Company's website a https://www.webcentral.com. au/corporate/annual-reports/.
The changes to statutory financial measures previously reported in the Appendix 4E and Preliminary Financial Report a required by ASX Listing Rules are due to finalisation of income tax expense, deferred tax assets and liabilities and are presented below:
2021 | 2021 | |
Appendix 4E | ||
Audited | ||
preliminary | ||
Results | ||
results | ||
$'000 | ||
$'000 | ||
Loss after tax from continuing | (61,922) | (61,446) |
operations | ||
Loss after tax attributable to | (63,080) | (62,604) |
members of the parent | ||
cents | cents | |
Loss per share from continuing | (45.95) | (45.60) |
operations | ||
Loss per share attributable to | (46.81) | (46.46) |
members of the parent | ||
There were no other changes to the reported financial results for the 18 months ended 30 June 2021.
This announcement has been approved for released by the Webcentral Board of Directors.
About Webcentral
Webcentral is an Australian owned digital services company who empower more than 330,000 customers to grow and thrive in the online world. Our portfolio of digital services is extensive, with market leading offers across domain management, website development and hosting, office and productivity applications and online marketing.
Our customer focussed heritage has been built on expertise, innovation and personalised service; critical attributes delivered through our culture and embraced by our people. This is demonstrated through more than 25 years of online industry leadership across Australia's digital foundation brands such as Melbourne IT, Netregistry and WME.
The Webcentral mission is dedicated to leading online success for our customers. We achieve this by building trusted and valued client relationships which convert successful business outcomes at each milestone across the customers' digital journey.
Investor Enquiries
Joe Demase Managing Director jd@webcentral.com.au 1300 10 11 12
Glen Dymond
Chief Financial Officer gd@webcentral.com.au 0408 199 712
7/505 Little Collins Street, Melbourne VIC 3000
Investors@webcentral.com.au
webcentral.com.au
1300 10 11 12
2021 ANNUAL REPORT
Webcentral Group Limited and its controlled entities | 1 | |
FOR THE 18 MONTHS ENDED 30 JUNE 2021 ABN: 21 073 716 793 | ||
Corporate Directory
Directors
Joseph Gangi (Non-Executive Chairman)
Natalie Mactier (Non-Executive Director)
Joseph Demase (Managing Director)
Company Secretaries
Glen Dymond
Michael Wilton
Registered Office and
Principal Place of Business
Level 7, 505 Little Collins Street
Melbourne, VIC, 3000
Tel: 1300 638 734
Company Number
ACN 073 716 793
Country of Incorporation
Australia
ASX Code: WCG
Company Domicile and Legal Form Webcentral Group Limited is the parent entity and an Australian Company limited by shares
Legal Advisors
Cornwalls
Level 10, 114 William Street
Melbourne, VIC, 3000
Share Register
Link Market Services Limited
Tower 4, 727 Collins Street
Melbourne, VIC, 3000
Auditors
Grant Thornton Audit Pty Ltd
Tower 5, 727 Collins Street
Melbourne, VIC, 3000
Internet addresswww.webcentral.com.au
Contents
Corporate Directory | 2 | |
Chairman's Address | 4 | |
Managing Director's Operational Report | 6 | |
Our Brand & People | 8 | |
Directors' Report | 21 | |
Remuneration Report | 31 | |
Corporate Governance Statement | 38 | |
Auditors' Independence Declaration | 43 | |
Financial Statements | ||
∙ | Consolidated Statement of Comprehensive Income | 46 |
∙ | Consolidated Statement of Financial Position | 48 |
∙ | Consolidated Statement of Changes in Equity | 50 |
∙ | Consolidated Statement of Cash Flows | 51 |
∙ | Notes to Consolidated Financial Statements | 52 |
Directors Declaration | 93 | |
Independent Auditors' Report | 94 | |
Shareholder Information | 98 |
2 | 3 |
Chairman's Address
As Chairman of Webcentral Group (ASX:WCG),
I am proud to present to you the Annual Report for Financial Year 2021. Since 5GN acquired a controlling interest in Webcentral in October 2020, the Company has experienced significant transformation of its' business, including restructuring several business units, streamlining service delivery, simplification of business processes and migration to modern technology platforms.
Critically, several operational programs have now been implemented to ensure that the ongoing business transformation could deliver a more positive experience for customers in addition to an improved financial performance to grow shareholder value. I am very pleased to highlight that the successful delivery of these programs has been instrumental in Webcentral achieving significant business improvements in the second half of FY21.
Accordingly, the Company has reported outstanding EBITDA performance with growth of 391% for the six-months ended 30 June 2021 compared to the prior comparative period and has stabilised revenue, achieving $78.3M for the group in the FY21 period. The active strategy to improve customer care
has been delivered through the investment in our Australian based customer support teams, who have dramatically improved customer engagement and retention. Our customer Net Promoter Score (NPS) provides evidence of this improvement with end of year results of +12- the highest NPS in the company's history.
The significant changes and improved organisational effectiveness have been driven by a dedicated
and experienced executive team, strongly led by Managing Director, Joe Demase. The organisation is now operating within a cohesive, collaborative customer driven culture, which has been nurtured and reinforced through the ongoing communication of a clear strategic vision and purpose.
Importantly, the Australian market conditions during FY21 have been severely impacted by the ongoing COVID pandemic. This has caused some purchase delays for Australian businesses as a result of fluctuating levels of confidence when considering investment in their online services.
However, despite COVID impacts, we expect organic growth to resume in FY22 as customers respond favorably to the improvements in Webcentral service and support, in addition to the simplified offers which are now well supported by modernised e-commerce and technology platforms.
Webcentral is now focused on achieving the strategic goals for the approaching financial year. Our Company will remain dedicated to improving and simplifying the service experience for our customers with sales and marketing resources continuing to target growth opportunities across the small and medium business segments.
With operational stability now achieved in FY21, combined with modernised and simplified technology platforms and improved customer care, the outlook for Webcentral is exciting and positive. The Board very much looks forward to the talented staff continuing the transformation journey and guiding this Company to a stronger performance in FY22.
On behalf of the Board, I am extremely grateful for the support of Webcentral and 5GN shareholders, customers, suppliers and business partners and would also like to thank our Managing Director, staff and executives for their commitment to achieving ongoing operational and financial improvements during a challenging FY21.
Yours sincerely,
Joe Gangi
Chairman
"With operational stability now achieved in FY21, combined with modernized and simplified technology platforms and improved customer care, the outlook for Webcentral is exciting and positive"
4 | 5 |
"As an Australian business we are continuing to invest in Australian resources
Managing Director's Report
and technology and
to support Australian
organisations."
6
In the first year as Managing Director of Webcentral Limited (ASX:WCG), I am proud to present our Annual Report on the business operations for Financial Year 2021.
This has been an incredibly important year for Webcentral. A year where the business has embraced the acquisition and majority shareholding by 5G Networks (ASX:5GN) in a period heavily impacted by the effects of COVID-19. The change in ownership has reset the strategic direction
of Webcentral and enabled the implementation of several business transformation programs to improve the financial and operational performance of the business.
The strategic programs are critical to our ongoing success and will underpin the sustained achievement of profitable revenue growth. They have also been instrumental in reinforcing and redefining our strategic purpose, whilst strengthening the organisational commitment to our core values. As a result, we have quickly progressed to become a very different organisation. Our business is much simpler. We have improved the support and sales experience for our customers, invested in the growth of our Australian based customer care teams and overall have become more customer focused.
Accordingly, the financial performance throughout the second half of FY21 demonstrated sustained improvement. Since December 2020, we have lifted profitability performance to achieve underlying EBITDA growth of 391% for the six-months ended 30 June 2021. The significant improvement of EBITDA was attained though diligent and tight cost management, and our refocus on more effective service delivery. Operating cash flow was strong in the six-months ended 30 June 2021, with underlying operating cash flows of $7.3M. Additionally, the organisation has worked tirelessly to arrest and stabilise the average monthly revenue decline to record $78.3M for the reporting period.
Through our operational improvement programs, I am excited to highlight that our customer satisfaction ratings have dramatically improved
throughout the year. We are now achieving the highest recorded scores for the company since being established in 1996.
The customers contacting our Care team have recorded the most significant improvement.
In June 2021, 93% of customers contacting our care teams were satisfied with their level of service. This improvement was enabled by the rapid growth of our onshore support teams, where Webcentral committed significant investment. Since December 2020, we have now introduced over 50 new support staff to our customer care teams across Melbourne, Sydney and Brisbane.
By simplifying and bundling our products to meet market requirements, our customers are more comfortable in selecting products through our sales channels. Importantly, 92% of customers are now satisfied after making their first purchase through our online shopping cart, and 95% report being satisfied after speaking to a member of the offline sales team.
In conclusion, I am very excited about the future for Webcentral and the future merging with
5G Networks. Our Board, executive team, and people are committed to delivering and executing our strategy to drive continued growth and deliver improvements for customers, in addition to creating improved shareholder value in the years to come.
I would like to thank our employees for all their hard work in difficult circumstances, and our shareholders who continue to back our strategy and enjoy the exciting ride we are on.
Yours sincerely,
Joe Demase
Managing Director
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Disclaimer
WebCentral Group Limited published this content on 14 September 2021 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 14 September 2021 07:21:06 UTC.