Appendix4C

Quarterlyreportforentities
admittedonthebasisofcommitments

ACN120394194

Level22,1MarketStreet
Sydney,NewSouthWales,2000
Phone(02)82636600
Facsimile(02)82636633
www.ilh.com.au

Rule4.7B

Appendix 4C

Quarterly report
for entities admitted
on the basis of commitments

Nameofentity

IntegratedLegalHoldingsLimited

ABN

20120394194

Quarterended(currentquarter)

31March2011

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)
(a) Rentreceived
(b) Sundryincome

Netoperatingcashflows

Appendix4C

Current
Quarter
$A000
7,062
(4,563)
(86)

(24)
(2,035)

YeartoDate
(9months)
$A000
22,233
(12,789)
(246)

(54)
(7,569)

36
(21)
(146)

115
(50)
(388)

223

1,253

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Appendix4C
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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

1.14

1.9

1.10

1.11
1.12
1.13

1.15
1.16
1.17
1.18
1.19
1.20

YeartoDate
(9months)
$A000

Current
Quarter
$A000

223

1,253

(936)

(26)

(936)

(173)

(962)

(1,109)

Totaloperatingandinvestingcashflows

(739)

144

Cashflowsrelatedtofinancingactivities
Proceedsfromissuesofshares,options,etc.
Proceedsfromsaleofforfeitedshares
Proceedsfromborrowings
Repaymentofborrowings
Dividendspaid
Other(item1.26):
Shareissueexpenses

1,069
(175)

(4)

1,069
(468)
(442)

(8)

890

151

151

295

1.21
1.22

Netfinancingcashflows

Netincrease(decrease)incashheld

Cashatbeginningofquarter/yeartodate
Exchangerateadjustmentstoitem1.20

2,093

1,949

1.23

Cashatendofquarter

2,244

2,244

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Appendix4C
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admittedonthebasisofcommitments

Paymentstodirectorsoftheentityandassociatesofthedirectors
Paymentstorelatedentitiesoftheentityandassociatesoftherelated
entities

Currentquarter
$A'000

1.24

Aggregateamountofpaymentstothepartiesincludedinitem1.2(a)

1.25

Aggregateamountofloanstothepartiesincludedinitem1.11

1.26

Explanationnecessaryforanunderstandingofthetransactions
Remuneration paid to executive and nonexecutive directors of
IntegratedLegalHoldingsLimitedanditssubsidiaries.

120

120

Noncashfinancingandinvestingactivities
2.1

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

Nil

2.2

Detailsofoutlaysmadebyotherentitiestoestablishorincreasetheirshareinbusinessesin
whichthereportingentityhasaninterest

Nil

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Appendix4C
Quarterlyreportforentities
admittedonthebasisofcommitments

Financingfacilitiesavailable
Addnotesasnecessaryforanunderstandingoftheposition.(SeeAASB1026paragraph12.2).

Amountavailable
$A000

3.1

Loanfacilities

3.2

Creditstandbyarrangements

Amountused
$A000

3,150

1,950

610

130

Reconciliationofcash

Reconciliationofcashattheendofthequarter(as
shownintheconsolidatedstatementofcashflows)
totherelateditemsintheaccountsisasfollows.

Currentquarter
$A000

Previousquarter
$A000

4.1

Cashonhandandatbank

1,123

885

4.2

Depositsatcall

1,121

1,208

4.3

Bankoverdraft

4.4

Other(providedetails)

2,244

2,093

Total:cashatendofquarter(item1.23)

Acquisitionsanddisposalsofbusinessentities

5.1

Acquisitions
(Item1.9(a))
Nameofentities

1.WojtowiczKellyLegal

Disposals
(Item1.10(a))
Nil

2.TheArgylePartnership
3.mdalawyers
5.2

Placeof
incorporationor
registration

1.WesternAustralia

Nil

2.NewSouthWales
3.mdalawyers

5.3

Considerationfor
acquisitionor
disposal

1.$2,303,936

Nil

2.$11,000stampduty
3.$1,200stampduty

5.4

Totalnetassets

1.($7,229)

Nil

2.$274,227
3.$2,674

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5.5

Natureofbusiness

1.LegalPractice

Nil

2.LegalPractice
3.LegalPractice

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.

JeanMarieRudd
CompanySecretary

28April2011

Notes

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
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admittedonthebasisofcommitments

APPENDIX A

Item2.1

Detailsoffinancingandinvestingtransactionswhichhavehadamaterialeffect
onconsolidatedassetsandliabilitiesbutdidnotinvolvecashflows
BusinessAcquisitions

Item1.9(a)

i) AcquiredlegalpracticeWojtowiczKellyLegal(provisionalcalculation)
On 1 February 2011 the Company acquired the legal practice of Wojtowicz Kelly Legal
(incorporatingCivicLegal,theSimpsonKellyGroup,GibsonTovey&Associates,AllProperty
Conveyancing and Jan Simpson Settlements) under merger arrangements with the existing
memberfirmTaxLawyersAustraliaPtyLtdtradingasBrettDaviesLawyers.

ThemergedbusinesswilltradeasCivicLegal.

The consideration for the transaction is a combination of the issue of 5.7m shares and an
upfront cash payment of $924,000 (funded from surplus cash reserves). $125,000 in deferred
cashconsiderationispayableinJuly2011.

Additionally, under the merger agreement, a maximum of $600,000 and minimum of nil in
contingent cash consideration may be payable in September 2013 subject to the merged
business achieving agreed profitability (NPBT) targets in the financial years ended 2012 and
2013. The contingent consideration will be settled in cash or shares at the discretion of the
Board.

The Directors consider that the contingent consideration will support and foster a united
Principal group environment for the merged firm, by incentivising teamwork in the
realisationofmergerrevenueandcostsynergies.

ThecontingentconsiderationhasbeenformulatedusingIntegratedLegalHoldingsLimiteds
minimum expectations as a base (ie the deferred consideration is only payable on
outperformanceabovetheseminimumexpectations).

Furthermore,anycontingentconsiderationwillonlybepayablefollowingtheachievementof
minimumexpectedlockup(WIPanddebtors)performancebythefirm.

The acquisition is structured with significant employment constraints and conditions,

consistentwiththeCompanysdisciplinedacquisitionmodelandstrictcriteria.

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admittedonthebasisofcommitments

The following constitutes the provisional calculation of the consideration given and the fair
valueofnetassetsacquired:

Consideration
Cash
Deferredcashconsideration
Totalcashconsideration
Sharesissuedasconsideration
Totalacquisitioncost

Fair
Value
$

156,585
33,720
41,732
232,037

139,106
73,261
26,899
239,266
(7,229)
2,311,165

Netassetsacquired
Assets
Plantandequipment
Prepayments
Deferredtaxasset
Totalassetsacquired

Liabilities
Deferredtaxliability
Interestbearingloansandborrowings
Provisions
Totalliabilitiesacquired
Netassetsacquired
Goodwillonacquisition

924,000
635,336
1,559,336
744,600
2,303,936

Carrying
Amount
$

156,585
33,720
41,732
232,037

139,106
73,261
26,899
239,266
(7,229)

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

ii) AcquiredlegalpracticeTheArgylePartnership
On1November2008theCompany,throughitswhollyownedsubsidiary,ArgyleLawyersPty
Ltd, acquired the legal practice of The Argyle Partnership. Since completion of the
transaction,thefinancialperformanceoftheacquiredbusinessexceededexpectationsandan
amountwaspaidasdeferredconsiderationinrelationtothebusinesscombination(refer2009
and2010annualreportsforfulldetailsofthebusinesscombination).Thecashflowreportfor
the current quarter reflects an additional acquisition cost of $11,000, being the stamp duty
payableonthedeferredconsiderationpaymentthatwasmadeinOctober2010.

iii) Acquiredlegalpracticemdalawyers
On13March2009theCompany,throughitswhollyownedsubsidiary,ArgyleLawyersPtyLtd,
acquired the legal practice of mda lawyers. The acquisition was merged into the existing
practiceofArgyleLawyers.Sincecompletionofthetransaction,thefinancialperformanceof
the acquired business exceeded expectations and an amount was paid as deferred
considerationinrelationtothebusinesscombination(refer2009annualreportforfulldetails
of the business combination). The cash flow report for the current quarter reflects an
additional acquisition cost of $1,200, being the stamp duty payable on the deferred
considerationpaymentthatwasmadeinMarch2010.

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