Appendix4C

Quarterlyreportforentities
admittedonthebasisofcommitments

For personal use only

ACN120394194

201AdelaideTerrace
PerthWesternAustralia6000
Phone(08)94634340
Facsimile(08)93255999
www.ilh.com.au

Rule4.7B

Appendix 4C

Quarterly report
for entities admitted
on the basis of commitments

Nameofentity

IntegratedLegalHoldingsLimited

ABN

20120394194

Quarterended(currentquarter)

31December2007

Consolidatedstatementofcashflows

Cashflowsrelatedtooperatingactivities

1.1
Receiptsfromcustomers

1.2
Paymentsfor (a)staffcosts

(b)advertisingandmarketing

(c)researchanddevelopment

(d)leasedassets

(e)otherworkingcapital
1.3
Dividendsreceived
1.4
Interest and other items of a similar nature
received
1.5
Interestandothercostsoffinancepaid
1.6
Incometaxespaid
1.7
Other(providedetailsifmaterial)

Netoperatingcashflows

Appendix4C

Current
Quarter
$A000

YeartoDate
(6months)
$A000

1,865
(1,367)
(36)

9
(443)

2,557
(1,926)
(47)

(2)
(456)

77
(3)

212
(5)

105

336

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Appendix4C
Quarterlyreportforentities
admittedonthebasisofcommitments

For personal use only

1.8

Netoperatingcashflows(carriedforward)

Cashflowsrelatedtoinvestingactivities
Paymentforacquisitionof:

(a)businesses(item5)
(b)equityinvestments
(c)intellectualproperty
(d)physicalnoncurrentassets
(e)othernoncurrentassets
Proceedsfromdisposalof:

(a)businesses(item5)
(b)equityinvestments
(c)intellectualproperty
(d)physicalnoncurrentassets
(e)othernoncurrentassets

Loanstootherentities
Loansrepaidbyotherentities
Other(providedetailsifmaterial)

Netinvestingcashflows

1.9

1.10

1.11
1.12
1.13

YeartoDate
(6months)
$A000

Current
Quarter
$A000

105

336

137
(4)

(165)

(6,561)
(4)

(217)

(31)

(6,782)

1.14

Totaloperatingandinvestingcashflows

74

(6,446)

Cashflowsrelatedtofinancingactivities
Proceedsfromissuesofshares,options,etc.
Proceedsfromsaleofforfeitedshares
Proceedsfromborrowings
Repaymentofborrowings
Dividendspaid
Other(IPOcapitalraisingexpenses)

117
(112)

638

3,628

342
(112)
(215)
(945)

643

2,698

717

(3,748)

(639)

8,789

78

5,041

1.15
1.16
1.17
1.18
1.19
1.20

1.21
1.22

Netfinancingcashflows

Netincrease(decrease)incashheld

Cashatbeginningofquarter/yeartodate
Exchangerateadjustmentstoitem1.20

1.23

Cashatendofquarter

Appendix4C

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Appendix4C
Quarterlyreportforentities
admittedonthebasisofcommitments

For personal use only

Paymentstodirectorsoftheentityandassociatesofthedirectors
Paymentstorelatedentitiesoftheentityandassociatesoftherelated
entities

Currentquarter
$A'000

1.24

Aggregateamountofpaymentstothepartiesincludedinitem1.2(a)

1.25

Aggregateamountofloanstothepartiesincludedinitem1.11

1.26

Explanationnecessaryforanunderstandingofthetransactions
Executive and nonexecutive directors of Integrated Legal
HoldingsLimitedanditssubsidiaries.

221

221

Noncashfinancingandinvestingactivities
2.1

Details of financing and investing transactions which have had a material effect on
consolidatedassetsandliabilitiesbutdidnotinvolvecashflows

Nil

2.2

Detailsofoutlaysmadebyotherentitiestoestablishorincreasetheirshareinbusinessesin
whichthereportingentityhasaninterest

Nil

Financingfacilitiesavailable
Addnotesasnecessaryforanunderstandingoftheposition.(SeeAASB1026paragraph12.2).

3.1

Loanfacilities

743

25

3.2

Creditstandbyarrangements

250

Appendix4C

Amountavailable
$A000

Amountused
$A000

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Appendix4C
Quarterlyreportforentities
admittedonthebasisofcommitments

Reconciliationofcash

For personal use only

Reconciliationofcashattheendofthequarter(as
shownintheconsolidatedstatementofcashflows)
totherelateditemsintheaccountsisasfollows.
4.1

Cashonhandandatbank

4.2

Currentquarter
$A000

Previousquarter
$A000

640

867

Depositsatcall

4,401

4,428

4.3

Bankoverdraft

(332)

4.4

Other(providedetails)

5,041

4,963

Total:cashatendofquarter(item1.23)

Acquisitionsanddisposalsofbusinessentities

Acquisitions
(Item1.9(a))

5.1

Nameofentity

5.2

5.4

Place
of
WesternAustralia
incorporation
or
registration
Considerationfor
ReferAppendixA
acquisition
or
disposal
Totalnetassets
ReferAppendixA

5.5

Natureofbusiness

5.3

ReferAppendixA

Disposals
(Item1.10(a))
Nil
Nil

Nil

Nil

ReferAppendixA

Nil

Compliancestatement

This statement has been prepared under accounting policies which comply with
accounting standards as defined in the Corporations Act (except to the extent that
informationisnotrequiredbecauseofnote2)orotherstandardsacceptabletoASX.
This statement does /does not* (delete one) give a true and fair view of the matters
disclosed.

BrettDavies
CompanySecretary

31January2008

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Appendix4C
Quarterlyreportforentities
admittedonthebasisofcommitments

Notes

For personal use only

1.

2.

The quarterly report provides a basis for informing the market how the entitys
activities have been financed for the past quarter and the effect on its cash position.
Anentitywantingtodiscloseadditionalinformationisencouragedtodoso,inanote
ornotesattachedtothisreport.
Thedefinitionsin,andprovisionsof,AASB1026:StatementofCashFlowsapplytothis
reportexceptfortheparagraphsoftheStandardsetoutbelow.

3.

6.2

reconciliationofcashflowsarisingfromoperatingactivitiesto
operatingprofitorloss
9.2
itemiseddisclosurerelatingtoacquisitions
9.4
itemiseddisclosurerelatingtodisposals
12.1(a) policyforclassificationofcashitems
12.3 disclosureofrestrictionsonuseofcash
13.1
comparativeinformation

Accounting Standards. ASX will accept, for example, the use of International
AccountingStandardsforforeignentities.Ifthestandardsuseddonotaddressatopic,
theAustralianstandardonthattopic(ifany)mustbecompliedwith.

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Appendix4C
Quarterlyreportforentities
admittedonthebasisofcommitments

APPENDIX A

For personal use only

Item2.1

Detailsoffinancingandinvestingtransactionswhichhavehadamaterialeffect
onconsolidatedassetsandliabilitiesbutdidnotinvolvecashflows
BusinessAcquisitions

Item1.9(a)

i) Acquiredlegalfirms
TalbotOlivier
As reported previously, the acquisition of this entity took place in the last quarter, however
the integration of the business is still occurring and there has been some movement in the
provisionalcalculation.Forthepurposesofcompleteness,wehaveincludedthedetailsofthe
acquisitionwiththisquarterlyreport.

On 11 January 2006, the company (through its agent, Law Central Co Pty Ltd) and the
foundation partners of Talbot Olivier entered into an Option Agreement whereby an option
was granted to Integrated Legal Holdings Limited, exercisable through its wholly owned
subsidiary Talbot Olivier Pty Ltd, to acquire the Talbot Olivier business assets. This
agreementwassubsequentlyvariedbyanagreementdated19September2006andwasfurther
amendedbyagreementsbetweenthesamepartiesdated12March2007and15May2007.

Theoptionwasexercisedon10August2007andthepurchasepriceagreedtobepaidincash
upontheexerciseoftheoptionwas$3,194,648.

TalbotOlivierPtyLtd,tradingasTalbotOlivier,wasincorporatedon10August2007andisa
whollyownedsubsidiaryofIntegratedLegalHoldingsLimited.Thefollowingconstitutesthe
calculation of the consideration given and the fair value of net assets acquired in Talbot
Oliver:

Consideration
Cash
Deferredcashconsideration
Costsassociatedwithacquisitionpaidpost30/09/07
Totalcashconsideration
Sharesissuedasconsideration
Totalacquisitioncost

Fair
Value
$

130,866
200,000
168,516
499,382

138,573
108,243
246,816
252,566
3,109,476

Netassetsacquired
Assets
Plantandequipment
Workinprogress
Otherassets
Totalassetsacquired
Liabilities
Interestbearingloansandborrowings
Deferredtaxliability
Totalliabilitiesacquired
Netassetsacquired
Goodwillonacquisition

3,194,648

167,394
3,362,042

3,362,042

Carrying
Amount
$

130,866
200,000
168,516
499,382

138,573
108,243
246,816
252,566

As the integration of the business is still occurring there may be some movement in the
provisionalcalculation.

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Appendix4C
Quarterlyreportforentities
admittedonthebasisofcommitments

For personal use only

BrettDaviesLawyers
As reported previously, the acquisition of this entity took place in the last quarter, however
the integration of the business is still occurring and there has been some movement in the
provisionalcalculation.Forthepurposesofcompleteness,wehaveincludedthedetailsofthe
acquisitionwiththisquarterlyreport.

On30March2007,IntegratedLegalHoldingsLimited(throughitsagent,LawCentralCoPty
Ltd) and Brett Davies, owner of the Brett Davies Lawyers business assets, entered into an
Option Agreement whereby an option was granted to the company, exercisable through its
wholly owned subsidiary Tax Lawyers Australia Pty Ltd, to acquire the Brett Davies Lawyers
businessassets.

Theoptionwasexercisedon10August2007andthepurchasepriceagreedtobepaidincash
upontheexerciseoftheoptionwas$804,000.

TaxLawyersAustraliaPtyLtd,tradingasBrettDaviesLawyers,wasincorporatedon8August
2007andisawhollyownedsubsidiaryofIntegratedLegalHoldingsLimited.

Thefollowingconstitutesthecalculationoftheconsiderationgivenandthefairvalueofnet
assetsacquiredinBrettDaviesLawyers:

Consideration
Cash
Deferredcashconsideration
Costsassociatedwithacquisition
Totalcashconsideration
Sharesissuedasconsideration
Totalacquisitioncost

Fair
Value
$

17,454
17,454

5,237
12,217
828,899

Netassetsacquired
Assets
Plantandequipment
Totalassetsacquired
Liabilities
Deferredtaxliability
Netassetsacquired
Goodwillonacquisition

804,000

37,116
841,116

841,116

Carrying
Amount
$

17,454
17,454

5,237
12,217

As the integration of the business is still occurring there may be some movement in the
provisionalcalculation.

PeterMarksSuccessionLawyers
As reported previously, the acquisition of this entity took place in the last quarter, however
theinitialcashoutflowwaspaidinthecurrentquarter.Forthepurposesofcompleteness,we
haveincludedthedetailsoftheacquisitionwiththisquarterlyreport.

On 19 September 2007, Integrated Legal Holdings Limited, through its wholly owned
subsidiaryTalbotOliverPtyLtd,acquiredthelegalpracticeofthelatePeterMarkstradingas
Peter Marks Succession Lawyers. This acquisition was merged into the existing practice of
TalbotOlivier.

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Appendix4C
Quarterlyreportforentities
admittedonthebasisofcommitments

For personal use only

Thefollowingconstitutesthecalculationoftheconsiderationgivenandthefairvalueofnet
assetsacquiredinthepracticeofPeterMarksSuccessionLawyers:

Consideration
Cashpaid02/10/07
Deferredcashconsideration
Costsassociatedwithacquisition
Totalcashconsideration
Sharesissuedasconsideration
Totalacquisitioncost

Fair
Value
$

114,278
10,722
125,000
125,000

Netassetsacquired
Assets
Intangibleassetleasedpremises
Plantandequipment
Totalassetsacquired
Netassetsacquired
Goodwillonacquisition

50,000
75,000

125,000

125,000

Carrying
Amount
$

10,722
10,722
10,722

As the integration of the business is still occurring there may be some movement in the
provisionalcalculation.

ShayneLeslie
As reported previously, the acquisition of this entity took place in the last quarter, however
theinitialcashoutflowwaspaidinthecurrentquarter.Forthepurposesofcompleteness,we
haveincludedthedetailsoftheacquisitionwiththisquarterlyreport.

On 28 September 2007, Integrated Legal Holdings Limited, through its wholly owned
subsidiary, Talbot Olivier Pty Ltd, acquired the legal practice of Shayne Leslie. This
acquisitionwasmergedintotheexistingpracticeofTalbotOlivier.

Theconsiderationforthepurchaseisacombinationofcashandshares.Thecashcomponent
will be funded from group working capital. The share component is payable progressively
overthreeyears,subjecttoperformancecriteriabeingmet.

Thefollowingconstitutesthecalculationoftheconsiderationgivenandthefairvalueofnet
assetsacquiredinthepracticeofShayneLeslie:

Consideration
Cashpaid02/10/07
Deferredcashconsideration
Costsassociatedwithacquisition
Totalcashconsideration
Sharesissuedasconsideration
Totalacquisitioncost

Fair
Value
$

300,000

Netassetsacquired
Goodwillonacquisition

50,000

50,000
250,000
300,000

Carrying
Amount
$

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Appendix4C
Quarterlyreportforentities
admittedonthebasisofcommitments

For personal use only

As the integration of the business is still occurring there may be some movement in the
provisionalcalculation.

ii) AcquisitionofLawCentralCoPtyLtd
As reported previously, the acquisition of this entity took place in the last quarter, however
the integration of the business is still occurring and there has been some movement in the
provisionalcalculation.Forthepurposesofcompleteness,wehaveincludedthedetailsofthe
acquisitionwiththisquarterlyreport.

Under the terms of the Prospectus dated 16 May 2007, Integrated Legal Holdings Limited
offeredtoacquire100%ofthefullypaidordinarysharesinthecapitalofLawCentralCoPty
Ltd. The offer was conditional upon the acceptance of the offer by at least 90% of the Law
CentralCoPtyLtdshareholdersby15August2007.

This condition was satisfied in full and 100% of the Law Central Co Pty Ltd shareholders
acceptedtheoffer.

The consideration offered by Integrated Legal Holdings Limited was 0.105028 fully paid
ordinarysharesinthecompanytogetherwithacashpaymentof$0.04736011forevery1Law
Central Co Pty Ltd share. Settlement took place on 10 August 2007 and Integrated Legal
HoldingsLimitedissued1,258,096sharesinthecompanyandpaid$2,700,000incashtothe
vendors.

Thefollowingconstitutesthecalculationoftheconsiderationgivenandthefairvalueofnet
assetsacquiredinLawCentralCoPtyLtd:

Consideration
Cash
Deferredcashconsideration
Costsassociatedwithacquisition
Totalcashconsideration
Sharesissuedasconsideration
Totalacquisitioncost

Fair
Value
$

37,173
220,953
426,067
569,812
1,254,005

200,031
15,060
76,371
259,742
551,204
702,801
2,626,247

Netassetsacquired
Assets
Plantandequipment
Cash
Tradereceivables
Otherreceivables
Totalassetsacquired

Liabilities
Tradepayables
Interestbearingloansandborrowings
Incometaxpayable
Provisions
Totalliabilitiesacquired
Netassetsacquired
Goodwillonacquisition

$
2,700,000

2,700,000
629,048
3,329,048

Carrying
Amount
$

37,173
220,953
426,067
569,812
1,254,005

200,031
15,060
76,371
259,742
551,204
702,801

Appendix4C

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Appendix4C
Quarterlyreportforentities
admittedonthebasisofcommitments

For personal use only

As the integration of the business is still occurring there may be some movement in the
provisionalcalculation.

Appendix4C

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