PAS : Appendix 4D – H1 Fy2019 Financial Statements

The PAS Group Limited

ABN 25 169 477 463

Appendix 4D

Half Year Report

Results for announcement to the market for the half year ended

31 December 2018

Current reporting period

Half year ended 31 December 2018

Previous corresponding period

Half year ended 31 December 2017

Half year ($'000) Total revenue from ordinary activities from continuing operations EBITDA from continuing operations Net profit after tax attributable to members

31 Dec 2018 143,742 5,651 1,265

31 Dec 2017 130,291 8,359 2,977

% Change 10.3% -32.4% -57.5%

Dividends - ordinary shares	Amount per ordinary share	Franked amount per ordinary share	Record Date	Payment Date
2019 Interim dividend	-	-	n/a	n/a
2018 Final dividend	-	-	n/a	n/a
2018 Interim dividend	1.5 cents	100%	16 March 2018	6 April 2018

Brief explanation of results for the period:

Statutory net profit after tax is prepared in accordance with the Corporations Act 2001 and Australian Accounting Standards, which comply with International Financial Reporting Standards. Earnings Before Interest, Tax, Depreciation and Amortisation ('EBITDA') and Net Profit After Tax are reported in order to give information to shareholders and to provide a greater understanding of the performance of The PAS Group Limited and its controlled entities' operations. Underlying EBITDA1 is presented on the basis that the Directors believe it provides the most meaningful measure of the Company's performance.

Total revenue from ordinary activities from continuing operations for the half year ended 31 December 2018 was $143.7 million, an increase of $13.5 million on the previous corresponding period. Underlying EBITDA for the half year was $6.7 million, a decrease of $2.6 million on the previous corresponding period. Net profit for the half year attributable to members was $1.3 million, down $1.7 million on the previous corresponding period.

Additional Appendix 4D disclosure requirements and other information requiring disclosure to comply with Listing Rule 4.3A is contained in the Interim Financial Report attached and The PAS Group Limited H1FY19 Results Presentation.

This report is based on accounts that have been reviewed by Deloitte Touche Tohmatsu.

Net tangible asset backing	31 Dec 2018	31 Dec 2017
Net tangible asset backing per ordinary security	$0.29	$0.29

1 Underlying EBITDA is a non-IFRS unaudited measure defined for the purpose of this document as earnings before interest, tax, depreciation, amortisation, non-recurring income/expenditure and certain non-cash items such as share based payment expenses recognised in accordance with AASB 2 Share-based payment.

The PAS Group Limited and its controlled entities

ACN 169 477 463

Interim Financial Report

For the half year ended 31 December 2018

The PAS Group Limited
Interim financial report
For the half year ended 31 December 2018
Index
Page
Directors' report	1
Condensed consolidated statement of profit or loss and other comprehensive income	3
Condensed consolidated statement of financial position	4
Condensed consolidated statement of changes in equity	5
Condensed consolidated statement of cash flows	6
Notes to the financial statements	7-12
Directors' declaration	13
Auditor's independence declaration	14
Independent auditor's review report	15
Corporate directory	16

The PAS Group Limited Directors' report

For the half year ended 31 December 2018

Directors' report

The Directors of The PAS Group Limited ('PAS') present their report on the consolidated entity consisting of The PAS Group Limited and its subsidiaries for the half year ended 31 December 2018 (the period).

In order to comply with the Corporations Act (2001), the Directors report as follows:

Directors

The Directors of The PAS Group Limited who held office during or since the end of the half year were:

Adam Gray	Non-Executive Chairman
Eric Morris	Chief Executive Officer and Managing Director
Craig Holland	Non-Executive Director
Christopher Murphy	Non-Executive Director
Silvia Mazzucchelli	Non-Executive Director

Principal activities

The Group's principal activities include the buying, selling and usage of brands in furtherance of its endeavours as an apparel, accessories and sports equipment wholesaler and retailer.

Analysis of results from continuing operations

A comparison between the continuing result for the half years ended 31 December 2018 and 2017 is shown in the table below.

31 Dec 2018	31 Dec 2017
$'000	$'000
Revenue	142,962	130,103
Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA)	5,651	8,359
Earnings Before Interest and Tax (EBIT)	1,563	4,574
Net profit after tax (NPAT) from continuing operations	1,265	2,977
Net profit after tax (NPAT) attributable to members of the parent	1,265	2,977

Commentary on the operations and results of the consolidated entity is contained in the PAS half-year results announcement dated 26 February 2019.

As at 31 December 2018, PAS had cash on hand of $3.6m (30 June 2018: ($0.7m)) and three complementary financing facilities with a combined committed limit of $28 million of which $5m was drawn at 31 December 2018 (30 June 2018: nil). In addition to the $28 million of committed funding, the Group's facilities incorporate a further $10m uncommitted facility and the Group may by written notice to CBA request the establishment of an accordion facility up to a maximum of $60 million which may be used to support the Group's acquisitive growth strategy.

Earnings per share ('EPS')

Half Year ended 31 Dec 2018	Half Year ended 31 Dec 2017
Basic earnings per share Diluted earnings per share	0.93 cents 0.93 cents	2.18 cents 2.18 cents

Basic and diluted earnings per share are calculated as set out in Note 3 to the financial statements based on the weighted average number of ordinary shares (2018: 136,690,860, 2017: 136,690,860).

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The PAS Group Limited Directors' report

For the half year ended 31 December 2018

Dividends

An interim dividend has not been declared.

Subsequent events

There has not been any other matter or circumstance, other than that referred to in the financial statements or notes thereto, that has arisen since the end of the financial period, that has significantly affected, or may significantly affect, the operations of the consolidated entity, the results of those operations, or the state of affairs of the consolidated entity in future financial periods.

Rounding of amounts

The Company is of the kind referred to in ASIC Instrument 2016/191, and in accordance with that Class Order amounts in the Directors' report and the financial statements are rounded off to the nearest thousand dollars, unless otherwise stated.

Auditor's independence declaration

The auditor's independence declaration is on page 14.

Signed in accordance with a resolution of directors made pursuant to s.306(3) of the Corporations Act 2001.

On behalf of the Directors:

Mr Adam Gray

Chairman

Melbourne, 25 February 2019

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