Experience : 1H22 Appendix 4D and Interim Financial Report

For personal use only

ACN 167 320 470

Appendix 4D

For the half year ended 31 December 2021

(Previous corresponding period being the half year ended 31 December 2020)

Results for announcement to the market

		December		December
		2021		2020
		$000		$000
Revenue from continuing operations		19,219		20,146
Profit before impairment. interest, taxes. depreciation and amortisation (EBITDA) from		(4,507)		3,885
continuing operations
Loss before tax from continuing operations		(9,229)		(1,090)
Loss after tax from continuing operations attributable to shareholders		(4,061)		(646)
Net loss after tax from continuing and discontinued operations attributable to shareholders		(4,061)		(213)
Net tangible assets		72,756		65,756
Net tangible assets cents per share		9.7 cents		11.8 cents

Acquisition or disposals of controlled entities, businesses or assets

Refer to note 3 to the Interim Financial Report.

Dividends

No dividend has been paid or declared during the period.

Auditor's Report

This Appendix 4D is based on the Interim Financial Report for the half year ended 31 December 2021 (as attached) which has been reviewed by Experience Co Limited's auditors.

Other Information

The remainder of the information requiring disclosure to comply with the Listing Rule 4.2A is contained in the Interim Financial Report that follows.

ACN 167 320 470

For personal use only

Experience Co Limited

ACN 167 320 470

Interim Financial Report

Half year ended 31 December 2021

This Interim Financial Report is to be read in conjunction with the financial report for the period ended 30 June 2021

For personal use only

EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES

CONTENTS

Directors' Report

Consolidated Statement of Profit or Loss and Other Comprehensive Income Consolidated Statement of Financial Position

Consolidated Statement of Changes in Equity

Consolidated Statement of Cash Flows

Notes to the Financial Statements

Directors' Declaration

Auditor's Independence Declaration

Independent Auditor's Review Report

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EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES

DIRECTORS' REPORT

The directors present their report on the consolidated entity (referred to herein as the Group) consisting of Experience Co Limited (The Company) and its controlled entities for the half year ended 31 December 2021.

DIRECTORS

The following persons were directors of Experience Co Limited during or since the end of the period up to the date of this report:
only	Kerry (Bob) East	Chair, Independent Non-Executive Director
Anthony Boucaut	Non-Executive Director
John O'Sullivan	Chief Executive Officer and Executive Director
Neil Cathie	Independent Non-Executive Director
Michelle Cox	Independent Non-Executive Director

REVIEW OF OPERATIONS

Principal Activities

The principal activities of the Group during the period were the provision of adventure tourism and leisure experiences. These activities have historically included tandem skydiving in Australia and New Zealand, and tours to the Great Barrier Reef and Daintree region.

During the half year the Group completed acquisitions that will broaden the portfolio of experiences to include nature based walking and

lodge experiences (Wild Bush Luxury and Maria Island Walk) and high rope and zipline aerial adventures (Treetops Adventure).
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Group Financial Performance
			31 December		31 December	% change
			2021		2020
			$000		$000
	Revenue		19,219		20,146		(5%)
	Underlying EBITDA		(3,056)		4,375		n/a
	Net loss after tax		(4,061)		(213)		n/a
	Net cash/(debt)1		12,468		(2,602)		n/a
The Group incurred a net loss after tax from continuing operations of $4.1 million (31 December 2020: $0.2 million) and Underlying EBITDA
loss from continuing operations was $3.1 million (31 December 2020: $4.4 million profit).
The Group experienced the most challenging trading conditions of the pandemic which included protracted lockdowns and travel
restrictions for key domestic markets from July 2021. With momentum building into the summer trading period the emergence of the
Omicron strain late in the period soon followed by record case levels, along with the multiplier effect of isolation health directives and
overwhelmed testing capabilities, adversely impacted consumer participation and staffing availability in our peak period.
Pleasingly, the acquired businesses were less impacted by the Omicron wave, demonstrating the benefits of the strategy to reweight
the Group's portfolio of assets and increase exposure to domestic markets.
personal
Notwithstanding these challenges, the 'living with COVID' approach by National Cabinet in Australia including easing of border
restrictions heading into the new year have assisted in trading conditions improving into January.
BALANCE SHEET
For

The Group maintains a well capitalised balance sheet following the successful capital raise in the period for the acquisition of Treetops Adventure.

As at 31 December 2021 the Group had cash and cash equivalents of $27.5 million and net cash of $12.5 million.

1 Net cash/(debt) is calculated as corporate debt and asset finance less cash and cash equivalents. Comparative as at 30 June 2021.

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EXPERIENCE CO LIMITED AND ITS CONTROLLED ENTITIES

DIRECTORS' REPORT

ACQUISTIONS

Wild Bush Luxury and Maria Island Walk

On 19 July 2021 we completed the acquisition of Wild Bush Luxury and welcomed its founder, Charles Carlow to the Group to lead our onlynewly established premium adventure activity category. This includes luxury lodges Arkaba Homestead and Walk in South Australia's

Flinders Ranges and Bamurru Plains in the Kakadu region of the Northern Territory.

On 30 November 2021 we completed the acquisition of the Maria Island Walk in Tasmania, which will form part of the Wild Bush Luxury brand portfolio.

These acquisitions are consistent with the Group's growth strategy to diversify the adventure experience portfolio. The Wild Bush Luxury and Maria Island Walk wilderness experiences are highly complimentary and provide the Group exposure to a growth category with resilient domestic demand and strong international appetite when borders are open

Treetops Adventure

On 30 November2021 we completed the acquisition of the Treetops Adventure portfolio of high ropes course and zip line activities.

useTreetops Adventure provides an exposure to the family adventure market. This market is anticipated to be a growing category, with experiences having a connection with nature and targeted at a younger audience. With over 400,000 domestic visitors annually, Treetops Adventure improves the quality and scale of the Group's portfolio. We are excited by the growth prospects for this category as pandemic restrictions ease and international markets return.

OUTLOOK

The Group is optimistic that market conditions will continue to improve in Australia and New Zealand as the second half of FY22 progresses. The Group anticipates Q3 FY22 to continue to see recovery in domestic trading conditions, with the potential for

international activity commencing from April. In the near term, the Group is focused on integrating the recent acquisitions and personalpositioning the business to leverage its market leading positions as volumes recover.

The Group has high conviction that Australia and New Zealand will be highly desirable destinations for international markets and our diversified adventure experience portfolio will continue to attract domestic markets as international travel markets recover to pre pandemic levels through to FY25.

With a well capitalised balance sheet, we continue to evaluate complimentary acquisitions and organic growth opportunities. Due to continued uncertainty EXP is not providing earnings guidance for FY22.

DIVIDENDS

No dividend was paid or declared during the period.

ROUNDING OF AMOUNTS

The Company is an entity to which ASIC Corporations (Rounding in Financial/Director's Reports) Instrument 2016/191 issued by ASIC relating to rounding off applies and in accordance with that instrument amounts in the Financial Statements and Directors' Reports have been rounded to the nearest thousand dollars unless otherwise stated.

AUDITOR'S INDEPENDENCE DECLARATION

A copy of the auditor's independence declaration as requested under section 307C of the Corporation Act 2001 is set out on page 13.

For
Signed in accordance with a resolution of directors, pursuant to section 306(3)(a) of the Corporations Act 2001.
________________________	________________________
John O'Sullivan	Kerry Robert (Bob) East
Chief Executive Officer	Chairman

Dated: 23 February 2022

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