Fremantle Community Financial Services : Half-Yearly Financial Report for period ending 31 December 2021

FREMANTLE COMMUNITY FINANCIAL SERVICES LIMITED

ABN 41 114 925 174

Interim Financial Report

For the half-year ended 31 December 2021

C O N T E N T S

Directors' Report

Auditor's Independence Declaration

Statement of Comprehensive Income

Statement of Financial Position

Statement of Changes in Equity

Statement of Cash Flows

Notes to the Financial Statements

Directors' Declaration

Independent Auditor's Review Report

This is annexure A of 11 pages referred to in Form 7051: Notification of half-yearly reports

John Bird - Director	Debra Rule - Director
Dated this 4th day of March 2022
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FREMANTLE COMMUNITY FINANCIAL SERVICES LIMITED

ABN 41 114 925 174

Interim Financial Report

DIRECTORS' REPORT

Your Directors submit the financial report of the Company for the half-year ended 31 December 2021.

Directors

The names of Directors who held office during or since the end of the half-year are:

Debra Anne Rule

Arnold Bart Houwen

John Alexander Bird

Luke Hall

Sharon Rudderham

Hannah Sutton

David Stone

Principle Activities

Fremantle Community Financial Services Ltd (the Company) operates the Fremantle Community Bank Branch of Bendigo Bank Limited, pursuant to a franchise agreement.

Review of Operations

The loss of the Company after providing for income tax amounted to $59,419 (2020: loss $26,852).

The Company's income is derived from a margin profit share based on the Company's overall book value. Operational costs of the Fremantle branch of Bendigo Bank are subsequently paid from this margin profit share. At the end of each year the Company's board resolves how much of the profits from that year are available to support local community groups and activities in the next succeeding year.

The Company provides funds to support the Fremantle region's community. The Company and its stakeholders look forward to achieving further growth in Fremantle as the city's population rises, as marketing initiatives have effect, and as Fremantle's economic fortunes improve. Much of the community support payment occurs during the first half of each year, which diminishes first half profits.

The company has experienced significant costs in relation to keeping good staff, and delays and related costs in relation to moving to new stable premises. These have hit the "bottom line" hard, and the board is focusing on staffing and striving to achieve a move to new stable premises as soon as possible. In addition, during the half year to 31st December 2021, the banking market in the Fremantle area has remained very difficult. Interest rates have remained subdued, resulting in continued low margins. The board and the branch continue to focus on the above issues while retaining, and thereafter increasing, profitable funds under management.

The half year to 31st December 2021 shows a small decrease in profit share income from the previous year. Overall profitability will improve as the community contribution commitments dry up in the second half of the year. Additionally, lending book value is starting to climb again. Company running costs also continue to be a focus, as the business seeks to streamline operations. The Board's focus is currently particularly on premises costs.

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FREMANTLE COMMUNITY FINANCIAL SERVICES LIMITED

ABN 41 114 925 174

Interim Financial Report

Auditor's Declaration

The auditor's independence declaration under s 307C of the Corporations Act 2001 for the half-year ended 31 December 2021 is attached to the financial report.

This report is signed in accordance with a resolution of the Board of Directors.

John Bird - Director	Debra Rule - Director
Dated this	4 March 2022

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RSM Australia Partners

Level 32 Exchange Tower, 2 The Esplanade Perth WA 6000

GPO Box R1253 Perth WA 6844

T [phone]

F [phone]

www.rsm.com.au

AUDITOR'S INDEPENDENCE DECLARATION

As lead auditor for the review of the financial report of Fremantle Community Financial Services Limited for the half-year ended 31 December 2021, I declare that, to the best of my knowledge and belief, there have been no contraventions of:

1. the auditor independence requirements of the Corporations Act 2001 in relation to the review; and
2. any applicable code of professional conduct in relation to the review.

RSM AUSTRALIA PARTNERS

Perth, WA	ALASDAIR WHYTE
Dated: 4 March 2022	Partner

THE POWER OF BEING UNDERSTOOD

AUDIT | TAX | CONSULTING

RSM Australia Partners is a member of the RSM network and trades as RSM. RSM is the trading name used by the members of the RSM network. Each member of the RSM network is an independent accounting and consulting firm which practices in its own right. The RSM network is not itself a separate legal entity in any jurisdiction.

RSM Australia Partners ABN 36 965 185 036

Liability limited by a scheme approved under Professional Standards Legislation

FREMANTLE COMMUNITY FINANCIAL SERVICES LIMITED

ABN 41 114 925 174

Interim Financial Report

STATEMENT OF COMPREHENSIVE INCOME

FOR THE HALF-YEAR ENDED 31 DECEMBER 2021

	31 December		31 December
	2021	2020
	$	$
Revenue	360,945	421,437
Employee benefits expense	(170,656)	(181,388)
Depreciation and amortisation expense	(11,238)	(70,892)
Other expenses	(236,402)	(193,029)
Loss before income tax	(57,351)	(23,872)
Income tax expense	(2,068)	(2,980)
Loss for the period	(59,419)	(26,852)
Other comprehensive income
Other comprehensive income for the period, net of tax	-	-
Total comprehensive loss for the period attributable to members	(59,419)	(26,852)

Earnings per share
Basic loss per share (cents)	(8.06)	(3.64)
Diluted loss per share (cents)	(8.06)	(3.64)

The accompanying notes form part of these financial statements

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