Integrated Research : Appendix 4D - FY2022 Half Year Financial Report

Integrated Research Ltd > ABN 76 003 588 449 Level 9, 100 Pacific Highway, North Sydney NSW 2060 Australia t: [phone] e: [e-mail]

For personal use only

17 February 2022

ASX Market Announcements Office

Australian Securities Exchange Limited

Dear Sir/Madam

ASX Market Announcement

In accordance with the ASX Listing Rules, Integrated Research Limited (ASX: IRI) encloses for release to the market:

• Appendix 4D, and
• Interim Financial Report for the half-year ended 31 December 2021.

By authority of the Board

David Purdue

Company Secretary

Integrated Research Limited

ABN: 76 003 588 449

www.ir.com

For personal use only

						Integrated Research Limited
									Appendix 4D
								Half‐year Report
		Appendix 4D
Name of entity		Half‐year report
INTEGRATED RESEARCH LIMITED
ABN		Reporting period				Previous corresponding
			(half‐year ended)				period (half‐year ended)
76 003 588 449			31 December 2021				31 December 2020
For announcement to the market
Extracts from this report for announcement to the market
									A$000
Revenues from ordinary activities			Down	5%	to		32,287
Profit/(loss) before tax attributable to members	Up	146%	to		635
Net profit for the period attributable to members	Up	1286%	to		1,788
Dividends (distributions)		Amount per		Franked amount per
		security		security
Interim dividend			Nil				N/A
Previous corresponding period			Nil				N/A

Brief explanation of results

Please refer to page 2 'Review of Operations' for an explanation of the results.

This information should be read in conjunction with Integrated Research Limited 2021 Annual Report.

The information provided in this report contains all the information required by ASX Listing Rule 4.2A.

NTA backing	December 2021	December 2020
Cents	Cents
Net tangible asset backing per ordinary security	32.48	25.94
	December 2021	December 2020
Dividends	$'000	$'000
No interim dividend has been declared for the current period	Nil	Nil
Total dividends provided for or paid	Nil	Nil

For personal use only

INTEGRATED RESEARCH LIMITED AND CONTROLLED

ENTITIES

FOR THE HALF‐YEAR ENDED

31 DECEMBER 2021

ABN: 76 003 588 449

ASX CODE: IRI

For personal use only

INTEGRATED RESEARCH LIMITED

HALF‐YEAR ENDED 31 DECEMBER 2021

Table of Contents
Directors' Report	1
Consolidated Interim Financial Report
Consolidated Statement of Comprehensive Income	4
Consolidated Statement of Financial Position	5
Consolidated Statement of Changes in Equity	6
Consolidated Statement of Cash Flows	7
Notes to the Consolidated Financial Statements	8
Directors' Declaration	13
Auditor's Independence Declaration	14
Independent Auditor's Review Report	15

For personal use only

INTEGRATED RESEARCH LIMITED

HALF‐YEAR ENDED 31 DECEMBER 2021

Directors' Report

The Directors present their report together with the consolidated financial report for the half‐year ended 31 December 2021 and the review report thereon.

Directors

The Directors of Integrated Research Limited at any time during or since the end of the half‐year are:

Peter Lloyd - Independent Non‐Executive Director and Chairman

John Ruthven - Managing Director and Chief Executive Officer

Allan Brackin - Independent Non‐Executive Director

Anne Myers - Independent Non‐Executive Director

James Scott- Independent Non‐Executive Director

Garry Dinnie - Independent Non‐Executive Director (retired 31 October 2021)

Principal Activities

Integrated Research Limited's principal activities are the design, development, implementation and sale of systems and applications management computer software for business‐critical computing, Unified Communication networks and Payment networks.

Half‐Year Results

The following table summarises the key revenue, expense and profit results for the consolidated entity for the half‐year ended 31 December 2021 compared to the previous corresponding period:

In thousands of AUD		2021		2020	Change
		%
Revenue from licence fees		17,992		17,104	5%
Revenue from maintenance fees		7,828		10,287	(24%)
Revenue from subscription fees		518		125	314%
Revenue from testing solution services		2,249		2,385	(6%)
Revenue from professional services		3,700		4,210	(12%)
Total revenue		32,287		34,111	(5%)
Total expenses		(34,658)		(32,880)	5%
(Loss)/profit before finance income, other losses, and income tax		(2,371)		1,231	(293%)
Other gains/ (losses)1		2,208		(2,983)	(174%)
Finance income		798		366	118%
Profit/(loss) before tax		635		(1,386)	(146%)
Income tax benefit2		1,153		1,515	(24%)
Net profit after income tax		1,788		129	1286%

The Company reported profit after tax of $1.8 million and revenue of $32.3 million for the half year ended 31 December 2021. The result represents a thirteen‐fold increase on the prior equivalent half. Strong revenue results from Asia Pacific (up 80%) and Europe (up 19%) were offset by revenue falls in the Americas (down 24%). Total Contract Value3 ("TCV") of $31.7 million was up 8% on the previous corresponding period noting that the first half was not a strong period for renewal business with the second half expected to be stronger. Of the TCV written in the current half, 38% was attributable to either new customers or new products sold to existing customers. There were 23 new customers added during the period. The Company's cloud and hybrid solutions are gathering momentum with approximately 440,000 users on the platform, representing 424% growth since the start of the financial year.

1. Other gains/ (losses) comprise of currency revaluation gain of $0.8 million (2020: $3.0 million loss) and forgiveness of the US Paycheck Protection Program loan for $1.4 million (2020: nil) which has been recognised as grant income.
2. The effective income tax benefit rate is not 30% of pre‐tax profit due to permanent differences including estimates for the R&D tax incentives and non‐assessable grant income.
3. Total contract value means the total value of a revenue generating contract written in the period of performance less any residual value from a previous related contract. The value includes software licence and related maintenance, cloud, testing and consulting services.

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