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)

30September2011

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)
Sundryincome

Netoperatingcashflows(referAppendixA)

Appendix4C

Current
Quarter
$A000
7,786
(6,030)
(118)

(18)
(1,836)

YeartoDate
(3months)
$A000
7,786
(6,030)
(118)

(18)
(1,836)

38
(46)
3

38
(46)
3

28

28

(193)

(193)

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Appendix4C
Quarterlyreportforentities
admittedonthebasisofcommitments

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

Totaloperatingandinvestingcashflows

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

Shareissueexpenses

1.9

1.10

1.11
1.12
1.13

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

YeartoDate
(3months)
$A000

Current
Quarter
$A000

(193)

(193)

(1,253)

(143)

(1,253)

(143)

(1,396)

(1,396)

(1,589)

(1,589)

1,097
(222)

1,097
(222)

(5)

(5)

870

870

(719)

(719)

2,436

2,436

1,717

1,717

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Appendix4C
Quarterlyreportforentities
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.

117

117

Noncashfinancingandinvestingactivities
2.1

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

Nil

2.2

Detailsofoutlaysmadebyotherentitiestoestablishorincreasetheirshareinbusinessesin
whichthereportingentityhasaninterest

Nil

Appendix4C

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Appendix4C
Quarterlyreportforentities
admittedonthebasisofcommitments

Financingfacilitiesavailable
Addnotesasnecessaryforanunderstandingoftheposition.(SeeAASB1026paragraph12.2).

3.1

Loanfacilities

3.2

Creditstandbyarrangements

Amountused
$A000

Amountavailable
$A000
3,500

3,050

638

156

Reconciliationofcash

Reconciliationofcashattheendofthequarter(as
shownintheconsolidatedstatementofcashflows)
totherelateditemsintheaccountsisasfollows.
4.1

Cashonhandandatbank

4.2

Previousquarter
$A000

Currentquarter
$A000
1,004

1,512

Depositsatcall

713

924

4.3

Bankoverdraft

4.4

Other(providedetails)

1,717

2,436

Total:cashatendofquarter(item1.23)

Acquisitionsanddisposalsofbusinessentities

5.1

Disposals
(Item1.10(a))

Acquisitions
(Item1.9(a))
Nameofentity

1.WojtowiczKellyLegal

Nil

2.PLNLawyers
5.2

5.3

5.4

Placeof
incorporationor
registration
Considerationfor
acquisitionor
disposal
Totalnetassets

1.WesternAustralia

Nil

2.NewSouthWales
1.$153,464

Nil

2.$1,100,000
1.($22,593)

Nil

2.($10,538)
5.5

Natureofbusiness

1.LegalPractice

Nil

2.LegalPractice

Appendix4C

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Appendix4C
Quarterlyreportforentities
admittedonthebasisofcommitments

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

27October2011

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.

Appendix4C

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Appendix4C
Quarterlyreportforentities
admittedonthebasisofcommitments

APPENDIX A

Item1.8
Netoperatingcashoutflowsforthequarter

TheIntegratedLegalHoldingsLimitedgroupincurrednetoperatingcashoutflowsof$193,000
fortheSeptember2011quarter.Thesenetoutflowsarearesultofnewbusinessacquisitions.

Businessacquisitionsadverselyimpactcashresourcesasdebtorsandworkinprogressofthe
acquiredlegalpracticesarenotpurchasedonacquisition.Cashresourcesarereinvestedback
into these businesses until working capital levels are built up to their preacquisition levels,
and the acquired businesses return to a positive cash flow. In many cases this may take a
periodofuptosixmonths.

ThematerialityoftheacquisitionsofWojtowiczKellyLegalinFebruary2011andPLNLawyers
inAugust2011(seeseparatedisclosurebelow)totheIntegratedLegalHoldingsLimitedgroup
is significant. There has been a negative impact on operating cash flows for the September
2011 quarter and this may continue for the December 2011 quarter also. Thereafter, the
businessesareexpectedtogeneratepositiveoperatingcashflowsforthegroup.

Item2.1
Details of financing and investing transactions which have had a
materialeffectonconsolidatedassetsandliabilitiesbutdidnotinvolvecashflows

None.

Item1.9(a) BusinessAcquisitions

i) AcquiredlegalpracticeWojtowiczKellyLegal
On 1 February 2011 the Company, through its wholly owned subsidiary, Civic Legal Pty Ltd,
acquiredthelegalpracticeofWojtowiczKellyLegal.Sincecompletionofthetransaction,the
financial performance of the acquired business exceeded expectations and an amounts were
paidasdeferredandcontingentconsiderationinrelationtothebusinesscombination(refer
2011annualreportsforfulldetailsofthebusinesscombination).Thecashflowreportforthe
currentquarterreflectsanadditionalacquisitioncostof$153,464.

ii) AcquiredlegalpracticePLNLawyers(provisionalcalculation)
On 1 August 2011 the Company acquired the legal practice of PLN Lawyers under merger
arrangementswiththeexistingmemberfirmArgyleLawyers.

Theconsiderationforthetransactionisacombinationoftheissueof3.04msharesand$1.1m
in cash (funded through surplus cash reserves), and a $0.25m contingent cash component
payable in September 2012 subject to the PLN Lawyers business achieving revenue and
profitabilitytargetsfortheperiodto30June2012.

Appendix4C

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Appendix4C
Quarterlyreportforentities
admittedonthebasisofcommitments

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

Consideration
Cash
Deferredcashconsideration
Totalcashconsideration
Sharesissuedasconsideration
Totalacquisitioncost

Fair
Value
$

12,398
6,005
18,403

8,924
20,017
28,941
(10,538)
1,693,191

Netassetsacquired
Assets
Plantandequipment
Deferredtaxasset
Totalassetsacquired

Liabilities
Deferredtaxliability
Provisions
Totalliabilitiesacquired
Netassetsacquired
Goodwillonacquisition

1,100,000
232,653
1,332,653
350,000
1,682,653

Carrying
Amount
$

12,398
6,005
18,403

8,924
20,017
28,941
(10,538)

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

Appendix4C

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