INTEGRATEDLEGALHOLDINGSLIMITED

ACN120394194

ASXAppendix4D
RESULTSFORANNOUNCEMENTTOTHEMARKET

Currentreportingperiod:
Previouscorrespondingperiod:

Halfyearended31December2011
Halfyearended31December2010

Percentage
change
Amount
EARNINGS
UP(+)/DOWN()
$A
Revenuefromordinaryactivities
+20%
16,275,847

Revenueandotherincomefromordinaryactivities
+24%
16,924,541

Profitfromordinaryactivitiesaftertaxattributabletomembers
+28%
970,123

Netprofitfortheperiodattributabletomembers
+28%
970,123

DIVIDENDS
2012Interimdividend
Correspondingperiod

EARNINGSPERSHARE
Basicanddilutedearningspershare

Percentagechange
UP(+)/DOWN()
+12%

Amount
pershare

0.30cents

31Dec2011

0.96

31Dec2011

4.21

Frankedamount
pershare
at30%

0.30cents

31Dec2010

0.86

31Dec2010

6.98

Percentagechange
NETTANGIBLEASSETBACKING
UP(+)/DOWN()
Nettangibleassetbackingpersecurity
40%

Itisrecommended thattheAppendix 4Dbereadinconjunctionwiththeannualreport fortheyear

ended 30 June 2011 and considered together with any public announcements made by Integrated
LegalHoldingsLimitedanditscontrolledentities(theGroup)duringthehalfyearended31December
2011inaccordancewiththecontinuousdisclosureobligationsundertheASXlistingrules.

Consolidated revenues and other income of $16,924,541 were 24% higher than the previous
corresponding halfyear period of $13,616,834 operating revenues. Revenue increased due to a
combinationoforganicandacquisitiongrowthduringtheperiod.

Thefollowingtablesummarisesresultsfortheperiod,thefullyear2011,andeachofthehalfyearsof
2011.

FirstHalf
SecondHalf
FullYear
FirstHalf

2011
2011
2011
2012

$m
$m
$m
$m
Revenueandotherincome
16.92
28.48
14.86
13.62
Netprofitaftertax
0.97
1.29
0.53
0.76
Earningspershare
0.96cents
1.41cents
0.55cents
0.86cents

INTEGRATEDLEGALHOLDINGSLIMITED
ACN120394194

ASXAppendix4D
RESULTSFORANNOUNCEMENTTOTHEMARKET

AfullercommentaryontheresultsforthereportingperiodiscontainedintheASXrelease2012First
HalfResultsAnnouncement,dated28February2012.

TheGrouphasnotdeclaredaninterimdividendwithrespecttothefinancialyearended30June2012
(2011interimdividend:0.30cents).Giventheacquisitionactivityduringthefirsthalf,thepotentialfor
furtheracquisitionannouncementsinthe2ndhalf,andrecentlydeterioratedclientpaymentterms,the
Directorshaveresolvednottodeclareaninterimdividend.

Thegroupdoesnothaveanyinterestsinassociatesoutsidethegroup,nordoesithaveanyinterestin
jointventures.

Duringtheperiod,theGroup,throughitswhollyownedsubsidiaries,gainedcontrolofthefollowing
business:

EntityName
Datecontrolgained
PLNLawyersPtyLtd
1August2011
(incorporatingPLNAdvisoryVanuatuandPLNAdvisoryFiji)

INTEGRATEDLEGALHOLDINGSLIMITED
ACN120394194
(ASX:IAW)

HalfYearFinancialReport
forthehalfyearended31December2011

INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALFYEARENDED
31DECEMBER2011
ACN120394194

Contents

Corporateinformation........................................................................................................................1
Directorsreport.................................................................................................................................2
Consolidatedstatementoffinancialposition.....................................................................................5
Consolidatedstatementofcomprehensiveincome...........................................................................6
Consolidatedstatementofcashflows................................................................................................7
Consolidatedstatementofchangesinequity....................................................................................8
Notestotheconsolidatedfinancialstatements.................................................................................9
Directorsdeclaration.......................................................................................................................22
Auditorsindependencedeclaration................................................................................................23
Independentauditorsreviewreport...............................................................................................24

INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALFYEARENDED
31DECEMBER2011
ACN120394194

CorporateInformation

ABN20120394194

Directors
TheHonJohnDawkins,Chairman
AnneTregonning,NonexecutiveDirector
GraemeFowler,ManagingDirector/ChiefExecutive

CompanySecretary
JeanMarieRudd

Registeredoffice
Level2
11MountsBayRoad
PerthWA6000

Principalplaceofbusiness
HeadOffice
Level22
1MarketStreet
SydneyNSW2000
Tel:(02)82636600

ShareRegister
ComputershareInvestorServicesPtyLimited
Level2
45StGeorgesTerrace
PerthWA6000
Tel:(08)93232000

IntegratedLegalHoldingsLimitedsharesarelistedontheAustralianStockExchange.

Solicitors
TalbotOlivier

Level8,WesfarmersHouse
40TheEsplanade

PerthWA6000

Bankers
StGeorgeBank

Level2,WestraliaPlaza
167StGeorgesTerrace
PerthWA6000

Auditor
Ernst&Young
11MountsBayRoad
PerthWA6000

ArgyleLawyers
Level22
1MarketStreet
SydneyNSW2000

NationalAustraliaBankLimited
100StGeorgesTerrace
PERTHWA6000

INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALFYEARENDED
31DECEMBER2011
ACN120394194

DirectorsReport

The directors of Integrated Legal Holdings Limited (the Company) submit the halfyear financial
reportforthehalfyearended31December2011.

DIRECTORS

ThenamesoftheCompanysdirectorsinofficeduringthehalfyearanduntilthedateofthisreport
aresetoutbelow.Directorswereinofficeforthisentireperiodunlessotherwisestated.

TheHonJohnDawkinsAO(NonexecutiveChairman)
AnneTregonning(NonexecutiveDirector)
GraemeFowler(ManagingDirector)

REVIEWANDRESULTSOFOPERATIONS

Consolidated revenues and other income of $16,924,541 were 24% higher than the previous
corresponding halfyear period of $13,616,834 operating revenues. Revenue increased due to a
combinationoforganicandacquisitiongrowthduringtheperiod.

Thefollowingtablesummarisesresultsfortheperiod,thefullyear2011,andeachofthehalfyears
of2011.

FirstHalf
SecondHalf
FullYear
FirstHalf

2011
2011
2011
2012

$m
$m
$m
$m
Revenueandotherincome
16.92
28.48
14.86
13.62
Netprofitaftertax
0.97
1.29
0.53
0.76
Earningspershare
0.96cents
1.41cents
0.55cents
0.86cents

A fuller commentary on the results for the reporting period is contained in the ASX release 2012
FirstHalfResultsAnnouncement,dated28February2012.

The Group has not declared an interim dividend with respect to the financial year ended 30 June
2012 (2011 interim dividend: 0.30 cents). Given the acquisition activity during the first half, the
potential for further acquisition announcements in the 2nd half, and recently deteriorated client
paymentterms,theDirectorshaveresolvednottodeclareaninterimdividend.

ACQUISITIONOFPLNLAWYERSPTYLTD

InAugust2011theCompanyannouncedtheacquisitionofPLNLawyersPtyLtd(PLN)undertuckin
arrangementswiththeexistingmemberfirmArgyleLawyersPtyLtd(Argyle).

PLNisanestablishedandhighlyregardedSydneybasedcommerciallawfirm.PLNsmissionistobe
the leading provider of legal and business advisory services to corporations and international
institutions operating in the Pacific Region. PLNs clients include Australian, Asian, American and
European based companies and financial institutions with business interests in the AsiaPacific
region.

INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALFYEARENDED
31DECEMBER2011
ACN120394194

DirectorsReport

PLN provides a wide range of legal services including Corporate and Financial Services, Travel and
Tourism,AviationIndustryservices,InfrastructureandDevelopment,Insurance,Insolvency,Mergers,
AcquisitionsandIPOs,MiningandPetroleum,TelecommunicationsandInformationTechnology.

PLNisthecentreofmanagementforthePacificLegalNetworkwhichwasestablishedin2002and
hasdevelopedkeyaffiliaterelationshipsinVanuatu,Fiji,PapuaNewGuinea,Samoa,NewZealand,
AmericanSamoa,Tonga,CookIslands,NewCaledonia,FrenchPolynesia,SolomonIslands,Hawaii,
theMarshallIslands,NorthernMarianaIslands,Palau,mainlandUSA,andacrossAsia.PacificLegal
Networkremainstheonlycoordinatedlegalandbusinessadvisoryserviceintheregion.

The firm consists of founder and Principal John Ridgway, Senior Associate Nitij Pal, and 4 lawyers,
withatotalof8staff,andannualfeeincomeofapproximately$2m.

PLNisanawardwinninglawfirmhavingwonthe2009NewSouthWalesExporteroftheYearAward
in a recognised services industry, and in August 2010 was named joint winner of the e.law Asia
PacificBoxBreakeroftheYearAward,whichrecognisesthosethinkingoutsidethesquaretomeet
legalbusinesschallenges.

PLN was tuckedin with existing member firm Argyle, with the combined firm having 6 Principals,
approximately40staffandannualfeeincomeofmorethan$10m.

PLNhasretaineditsbrand,butwilloperategoingforwardundertheArgylebusinessumbrella.The
tuckinarrangementspromiseasoundbaseforthegrowthandexpansionofthePLNbrandacross
AsiaPacificandviatheILHmemberfirmsinAustralia.

The Directors believe that PLN is a high quality business with strong growth prospects and will
provide both Argyle and ILH with a platform for future growth, in particular strengthening the
organisations commercial law service offerings, and providing new access to the Pacific and Asian
markets.

The Company expects to generate earnings improvements through cross referrals of client matter
opportunitiesaswellascostsynergiessuchaspremises.

TheDirectorsexpectthetransactiontobeEPSaccretiveinthe2012financialyearandwillenhance
theCompanysgrowthprospects.

INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALFYEARENDED
31DECEMBER2011
ACN120394194

DirectorsReport

AUDITORSINDEPENDENCEDECLARATION

A copy of the auditors independence declaration in relation to the review for the halfyear is
providedonpage24andformspartofthisreport.

Signedinaccordancewitharesolutionofthedirectors.

GFowler
ManagingDirector

Perth,28February2012

INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALFYEARENDED
31DECEMBER2011
ACN120394194

ConsolidatedStatementofFinancialPosition

ASSETS
Currentassets
Cashandcashequivalents
Tradeandotherreceivables
Workinprogress
Incometaxreceivable
Totalcurrentassets

Note

Consolidated
Asat
31Dec2011
$

Consolidated
Asat
30June2011
$

5
6

1,091,733
9,343,167
2,867,589

13,302,489

2,460,760
7,826,873
2,499,220
12,782
12,799,635

Noncurrentassets
Plantandequipment
Prepayments
Goodwill
Intangibleassets
Availableforsalefinancialassets
Totalnoncurrentassets
TOTALASSETS

7
8

1,387,202
14,614
14,590,139
11,880
2,781
16,006,616
29,309,105

1,170,294
14,614
12,900,557
29,700
3,435
14,118,600
26,918,235

2,844,954
484,828
54,725
1,052,337
365,327
4,802,171

3,813,598
2,536,259

986,593
255,769
7,592,219

LIABILITIES
Currentliabilities
Tradeandotherpayables
Interestbearingloansandborrowings
Incometaxpayable
Provisions
Otherliabilities
Totalcurrentliabilities

Noncurrentliabilities
Tradeandotherpayables
Interestbearingloansandborrowings
Provisions
Deferredtaxliabilities
Otherliabilities
Totalnoncurrentliabilities
TOTALLIABILITIES
NETASSETS

EQUITY
Issuedcapital
Accumulatedlosses
Reserves
TOTALEQUITY

10

10

11

12

4,791,832
386,841
185,159
244,729
5,608,561
10,410,732
18,898,373

37,554
143,325
306,092
137,038
689,344
1,313,353
8,905,572
18,012,663

33,899,828
(16,926,589)
1,925,134
18,898,373

33,397,152
(16,926,589)
1,542,100
18,012,663

TheaboveConsolidatedStatementofFinancialPositionshouldbereadinconjunctionwiththe
accompanyingnotes
5

INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALFYEARENDED
31DECEMBER2011
ACN120394194

ConsolidatedStatementofComprehensiveIncome

Note

Professionalfeesrevenue
Totalrevenue

Movementinfairvalueoffinancialliabilities
Interestincome
Dividendsreceived
Otherrevenue
Otherincome

Occupancyexpenses
Salariesandemployeebenefitsexpenses
Depreciationandamortisationexpenses
Officeexpenses
Advertisingandmarketingexpenses
Otherexpenses
Interestexpenses
Sharebasedpaymentsexpense
Totalexpenses
Profitbeforeincometax
Incometaxexpense
Profitafterincometax
Netprofitfortheperiod

Othercomprehensiveincome
Netgains/(losses)onavailableforsalefinancialassets
Othercomprehensiveincomefortheperiod,netoftax
Totalcomprehensiveincomefortheperiod

Basicearningspershare(cents)
Dilutedearningspershare(cents)

10

15

Consolidated
Halfyear
ended
31Dec2011
$

Consolidated
Halfyear
ended
31Dec2010
$

16,275,847 13,537,017
16,275,847 13,537,017

550,437

69,577
78,756
76
72
28,604
989
648,694
79,817

(1,414,077) (1,091,440)
(11,498,763) (8,716,908)
(240,224)
(193,400)
(1,810,991) (1,492,467)
(237,133)
(160,364)
(327,926)
(774,690)
(166,939)
(55,198)
(27,956)
(17,844)
(15,724,009) (12,502,311)
1,200,532
1,114,523
(230,409)
(358,617)
970,123
755,906
970,123
755,906

(654)
631
(654)
631
969,469
756,537

0.96
0.96

0.86
0.86

TheaboveConsolidatedStatementofComprehensiveIncomeshouldbereadinconjunctionwith
theaccompanyingnotes.
6

INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALFYEARENDED
31DECEMBER2011
ACN120394194

ConsolidatedStatementofCashFlows

Cashflowsfromoperatingactivities
Receiptsfromcustomers
Paymentstosuppliersandemployees
Interestreceived
Dividendsreceived
Sundryincome
Interestandothercostsoffinancepaid
Incometaxpaid
Netcashflows(usedin)/fromoperatingactivities

Cashflowsfrominvestingactivities
Purchaseofplantandequipment
Paymentfortheacquisitionofbusinesses
Proceedsfromthedisposalofplantandequipment
Netcashflowsusedininvestingactivities

Cashflowsfromfinancingactivities
Paymentforshareissueexpenses
Proceedsfromborrowings
Repaymentsofborrowings
Paymentofdividends
Netcashflows(usedin)/fromfinancingactivities

Netincrease/(decrease)incashheld
Cashandcashequivalentsatthebeginningofthe
period
Cashandcashequivalentsattheendoftheperiod

Consolidated
Halfyear
ended
31Dec2011
$

Note

14

Consolidated
Halfyear
ended
31Dec2010
$

15,753,614
(17,431,140)
69,577
76
28,604
(101,824)
(113,980)
(1,795,073)

(427,024)
(1,253,614)
-
(1,680,638)

(12,979)
2,940,337
(489,304)
(448,735)
1,989,319

(1,486,392)

15,171,446
(13,950,215)
78,756
72
989
(29,210)
(242,608)
1,029,230

2,435,615
949,223

1,948,949
2,092,718

(147,166)
(147,166)

(3,674)
(293,065)
(441,556)
(738,295)
143,769

TheaboveConsolidatedStatementofCashFlowsshouldbereadinconjunctionwiththe
accompanyingnotes.
7

INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALFYEARENDED
31DECEMBER2011
ACN120394194

ConsolidatedStatementofChangesinEquity

CONSOLIDATED

At1July2010
Profitfortheperiod
Othercomprehensive
income
Totalcomprehensive
incomefortheperiod
Transactionswithowners
intheircapacityasowners
Dividendspaid
Transfertogeneralreserve
Sharesissued
Transactioncostsonshare
issue
Sharebasedpayments
Balanceasat31December
2010

CONSOLIDATED

At1July2011
Profitfortheperiod
Othercomprehensiveloss
Totalcomprehensive
incomefortheperiod
Transactionswithowners
intheircapacityasowners
Dividendspaid
Sharesissued
Transactioncostsonshare
issue
Sharebasedpayments
Balanceasat31December
2011

Issued
Capital
$
32,160,426

Net
Unrealised
Accumulated
GainsReserve
Losses
$
$
(16,688,184)
(1,441)

755,906

195,000
(3,674)
17,844
32,369,596

Issued
Capital
$
33,397,152

General
Reserve
$
727,113

Total
Equity
$
16,197,914

755,906

631

631

755,906

631

756,537

238,405

(441,556)

195,000

(441,556)
(238,405)

(3,674)
17,844

(810)

965,518

16,722,065

Net
Unrealised
Accumulated
GainsReserve
Losses
$
$
(16,926,589)
(649)

General
Reserve
$
1,542,749

Total
Equity
$
18,012,663

(16,612,239)

(654)

970,123

970,123
(654)

(654)

970,123

969,469

(586,435)

(586,435)
487,700

487,700

(12,980)
27,956

33,899,828

(16,926,589)

(1,303)

(12,980)
27,956

1,926,437

18,898,373

TheaboveConsolidatedStatementofChangesinEquityshouldbereadinconjunctionwiththe
accompanyingnotes.
8

INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALFYEARENDED
31DECEMBER2011
ACN120394194

NotestotheConsolidatedFinancialStatements

1) CORPORATEINFORMATION
ThegeneralpurposecondensedfinancialreportofIntegratedLegalHoldingsLimited(theCompany)
forthehalfyearended31December2011wasauthorisedforissueinaccordancewitharesolution
oftheDirectorson28February2012.IntegratedLegalHoldingsLimitedisacompanyincorporated
inAustraliaandlimitedbyshares,whicharepubliclytradedontheAustralianStockExchange(ASX).

2) BASISOFPREPARATIONANDACCOUNTINGPOLICIES

Basisofpreparation
This general purpose condensed financial report for the halfyear ended 31 December 2011 has
been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act
2001.

The halfyear financial report does not include all notes of the type normally included within the
annualfinancialreportandthereforecannotbeexpectedtoprovideasfullanunderstandingofthe
financial performance, financial position and financing and investing activities of the consolidated
entityasthefullfinancialreport.

Itisrecommendedthatthehalfyearfinancialreportbereadinconjunctionwiththeannualreport
fortheyearended30June2011andconsideredtogetherwithanypublicannouncementsmadeby
IntegratedLegalHoldingsLimitedanditscontrolledentities(theGroup)duringthehalfyearended
31December2011inaccordancewiththecontinuousdisclosureobligationsundertheASXListing
Rules.

ThehalfyearfinancialreportispreparedinAustraliandollarsandonahistoricalcostbasis,except
foravailableforsaleinvestments,whichhavebeenmeasuredatfairvalue.

For the purposes of preparing the halfyear financial report, the halfyear has been treated as a
discretereportingperiod.

Significantaccountingpolicies
Apartfromthechangesinaccountingpolicynotedbelow,theaccountingpoliciesand methodsof
computationarethesameasthoseadoptedinthemostrecentannualfinancialstatements.

Changesinaccountingpolicy
From 1 July 2011, the Group has adopted all Australian Accounting Standards and Interpretations,
mandatoryforannualperiodsbeginningonorafter1July2011.Adoptionofthesestandardsand
interpretationsdidnothaveaneffectonthefinancialpositionorperformanceoftheGroup.

Basisofconsolidation
The halfyear consolidated financial statements comprise the financial statements of Integrated
LegalHoldingsLimitedanditssubsidiariesasat31December2011.

Subsidiariesareallthoseentities(includingspecialpurposeentities)overwhichtheGrouphasthe
power to govern the financial and operating policies so as to obtain benefits from their activities.
9

INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALFYEARENDED
31DECEMBER2011
ACN120394194

NotestotheConsolidatedFinancialStatements

Theexistenceandeffectofpotentialvotingrightsthatarecurrentlyexercisableorconvertibleare
consideredwhenassessingwhetheragroupcontrolsanotherentity.

The financial statements of the subsidiaries are prepared for the same reporting period as the
parentcompany,usingconsistentaccountingpolicies.

In preparing the consolidated financial statements, all intercompany balances and transactions,
income and expenses and profit and losses resulting from intragroup transactions have been
eliminatedinfull.

Subsidiaries are fully consolidated from the date on which control is obtained by the Group and
ceasetobeconsolidatedfromthedateonwhichcontrolistransferredoutoftheGroup.

3) SEGMENTINFORMATION

Operatingsegments
Theaccountingpoliciesusedbythe Groupinreportingsegmentsinternallyarethesame asthose
containedinnote2totheaccounts.TheIntegratedLegalHoldingsGrouphasidentifieditsoperating
segmentsbasedontheinternalmanagementreportingthatisusedbytheexecutivemanagement
team(thechiefoperatingdecisionmaker)inassessingperformanceandallocatingresources.

IntegratedLegalHoldingsoperatingsegmentshavebeenidentifiedbasedonhowthefinancialand
operatingresultsoftheGrouparemonitoredandpresentedinternallytotheexecutivemanagement
team. The reportable segments are based on aggregated operating segments determined by the
similarity of the products sold and the services provided, as these are the sources of the Groups
majorrisksandhavethemosteffectontheratesofreturn.

Fortheyearended30June2011,managementidentifiedaLegalServicesDivisionandInformation
TechnologyDivisionasoperatingsegments.Changestohowthefinancialandoperatingresultsof
theGrouparemonitoredandpresentedinternallyduringthehalfyearended31December2011
haveresultedintheseDivisionsbeingdissolvedandtheGroupisnowsegmentedintoone
reportablesegment.

ArgyleLawyers,CivicLegal,SignetLawyers,TalbotOlivierandIntegratedLegalHoldingsHeadOffice
DivisionareoperatingsegmentswithinthelegalservicessectorintheAustralianmarketandhave
beenaggregatedtoonereportablesegmentgiventhesimilarityoftheservicesprovided,methodin
whichservicesaredelivered,typesofcustomersandregulatoryenvironment.

AstheGroupisaggregatedintoonereportablesegment,therearenointersegmenttransactions.

10

INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALFYEARENDED
31DECEMBER2011
ACN120394194

NotestotheConsolidatedFinancialStatements

4) OTHERREVENUE

Consolidated
Halfyear
ended
31Dec2011
$

Sundryincome

Consolidated
Halfyear
ended
31Dec2010
$

28,604

5) CASHANDCASHEQUIVALENTS

Cashatbankandinhand

Consolidated
At
31Dec2011
$

989

Consolidated
At
30Jun2011
$

1,091,733

2,460,760

Reconciliationtostatementofcashflows
Forthepurposesofthestatementofcashflows,cashandcash
equivalentscomprisethefollowingat31December:
Cashatbankandinhand
Shorttermdeposits
Bankoverdrafts

6) TRADEANDOTHERRECEIVABLES

CURRENT
Tradereceivables
Allowanceforimpairmentloss(a)

Unbilledclientdisbursements
Prepayments
Otherreceivables

Consolidated
Halfyear
ended
31Dec2011
$

Consolidated
Halfyear
ended
31Dec2010
$

1,087,538
4,195
(142,510)
949,223

Consolidated
At
31Dec2011
$

9,078,502
(318,942)
8,759,560
(138,757)
692,758
29,606
9,343,167

2,118,898

(26,180)
2,092,718

Consolidated
At
30Jun2011
$

7,042,390
(419,696)
6,622,694
235,537
942,059
26,583
7,826,873

11

INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALFYEARENDED
31DECEMBER2011
ACN120394194

NotestotheConsolidatedFinancialStatements

a) Allowanceforimpairmentloss
Trade receivables are generally noninterest bearing and are generally on 3060 day terms. An
allowance for impairment loss is recognised when there is objective evidence that an individual
trade receivable is impaired. An impairment loss of $49,032 (30 June 2011: $930,772 and 31
December2010:$551,497)hasbeenrecognisedbytheGroupinthecurrentperiodwhichincludes
bad debts expense recognised of $149,786 (30 June 2011: $644,082 and 31 December 2010:
$172,485)andadoubtfuldebtexpense/(writeback)of($100,754)(30June2011:$286,690and31
December 2010: $379,012). These amounts have been recognised in the statement of
comprehensiveincomeinthelineitemotherexpenses.

Movementsintheallowanceforimpairmentlosswereasfollows:

Consolidated
Consolidated
At
31Dec2011

$
419,696
(100,754)
318,942

Openingbalanceatthebeginningoftheperiod
Chargefortheperiod
Closingbalanceattheendoftheperiod

7) GOODWILL

Openingbalance
Acquisitionofsubsidiary(note14)
Other(1)
Closingbalance

Consolidated
At
31Dec2011
$

12,900,557
1,689,582

14,590,139

Consolidated
At
30Jun2011
$

10,470,600
2,417,757
12,200
12,900,557

At
30Jun2011

$
133,006
286,690
419,696

Consolidated
At
31Dec2010
$

10,470,600

10,470,600

i)

RelatestotheacquisitionofTheArgylePartnership.

b) DescriptionoftheGroupsgoodwill
After initial recognition, goodwill acquired in a business combination is measured at cost less any
accumulatedimpairmentlosses.Goodwillisnotamortisedbutissubjecttoimpairmenttestingon
anannualbasisorwheneverthereisanindicationofimpairment.

12

INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALFYEARENDED
31DECEMBER2011
ACN120394194

NotestotheConsolidatedFinancialStatements

8) INTANGIBLEASSETS

a) Reconciliationofcarryingamountsatthebeginningandendoftheperiod

Consolidated
Consolidated

Openingbalance
(netofaccumulatedamortisation)
Amortisation
Closingbalance
(netofaccumulatedamortisation)

At
31Dec2011
$

At
30Jun2011
$

Consolidated
At
31Dec2010
$

29,700
(17,820)

65,340
(35,640)

65,340
(17,820)

11,880

29,700

47,520

Cost(grosscarryingamount)
Accumulatedamortisation
Netcarryingamountattheendoftheperiod

Consolidated
At
31Dec2011
$

Consolidated
At
30Jun2011
$

Consolidated
At
31Dec2010
$

163,254
(151,374)

163,254
(133,554)

163,254
(115,734)

11,880

29,700

47,520

b) DescriptionoftheGroupsidentifiedintangibleassets
Intangibleassetsrepresentthevalueofleasedpremisesacquiredupontheacquisitionofthelegal
practice of Peter Marks in the 30 June 2008 financial year and is carried at cost less accumulated
amortisation.Thisintangibleassethasbeenassessedashavingafinitelifeandisamortisedusing
the straight line method over the remaining term of the lease. The amortisation has been
recognised in the statement of comprehensive income in the line item depreciation and
amortisationexpenses.

13

INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALFYEARENDED
31DECEMBER2011
ACN120394194

NotestotheConsolidatedFinancialStatements

9) INTERESTBEARINGLOANSANDBORROWINGS

CURRENT
Bankoverdraft
Obligationsunderfinanceleasesandhirepurchasecontracts
Insurancepremiumfunding(unsecured)
Bankloan(secured)

NONCURRENT
Obligationsunderfinanceleasesandhirepurchasecontracts
Bankloan(secured)

Consolidated
At
31Dec2011
$

Consolidated
At
30Jun2011
$

142,510
208,044
134,274

484,828

25,145
174,869
386,245
1,950,000
2,536,259

243,095
4,548,737
4,791,832

143,325

143,325

ThebankloanissecuredovertheassetsofIntegratedLegalHoldingsanditscontrolledentities.The
newfacilityisaCommercialBillAcceptancewithafacilitylimitof$7.0mexpiringinDecember2014.
Thishasbeendrawndownby$4.5mat31December2011.

14

INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALFYEARENDED
31DECEMBER2011
ACN120394194

NotestotheConsolidatedFinancialStatements

10) OTHERLIABILITIES

Consolidated
At
31Dec2011
$

CURRENT
Deferredconsiderationpayable(1)
Contingentconsiderationobligation(2)
Leaseincentiveobligation(3)

NONCURRENT
Contingentconsiderationobligation(2)
Leaseincentiveobligation(3)

Consolidated
At
30Jun2011
$

240,908
19,666
104,753
365,327

125,000
48,280
82,489
255,769

244,729
244,729

522,255
167,089
689,344

(1)DeferredconsiderationpayableontheacquisitionofPLNLawyers(seenote14)(2011:deferredconsiderationpayable
ontheacquisitionofWojtowiczKellyLegal)
(2)ContingentconsiderationpayableontheacquisitionofWojtowiczKellyLegal.

FinancialLiabilityforthecontingentconsiderationasof30June2011

522,255

Interestaccretionforthehalfyearto31December2011

28,182

Fairvalueadjustmentat31December2011

(550,437)

Closingbalanceat31December2011

(3) Operating lease incentives are recognised as a liability when received and subsequently reduced by allocating lease
paymentsbetweenrentalexpenseandreductionoftheliabilitytoensurerentalexpenseisrecognisedonastraight
linebasisovertheleaseterm.

11) ISSUEDCAPITAL

a) Ordinaryshares

Fullypaidshares
Partlypaidshares(1)
Forfeitedsharesheldintrust(2)

Consolidated
31Dec2011
Shares

100,203,515
1,831,000

102,034,515

Consolidated
30Jun2011
Shares

95,908,111
1,256,217

97,164,328

Consolidated
31Dec2011
$

33,796,377
103,451

33,899,828

Consolidated
30Jun2011
$

33,321,656
75,496

33,397,152

(1)SharesissuedundertheDeferredEmployeeSharePlanthatvestoverthreeyears(note15).
(2)SharesissuedbutforfeitedundertheDeferredEmployeeSharePlan,heldintrust(note15).

15

INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALFYEARENDED
31DECEMBER2011
ACN120394194

NotestotheConsolidatedFinancialStatements

Movementsinordinarysharecapital

Consolidated
Openingbalanceasat1July2011

Shares

97,164,328

33,397,152

IssueofsharesundertheDeferredEmployeeSharePlan(refer
note15)

574,783

27,956

Issue of shares at 11.5 cents per share to vendors of PLN

Lawyers in part satisfaction of consideration payable on 1
August2011

3,043,478

350,000

IssueofsharesundertheDividendReinvestmentPlan

1,251,926

137,700

Costsassociatedwithissuingshares
Balanceasat31December2011

(12,980)

102,034,515

33,899,828

Consolidated
Openingbalanceasat1July2010

86,484,666

32,160,426

IssueofsharesundertheDeferredEmployeeSharePlan(refer
note15)

484,550

17,844

Issueofsharesat10centspersharetovendorsofTheArgyle
Partnership Lawyers in final satisfaction of deferred
considerationpayableon22September2010

1,800,000

180,000

Issue of shares at 12 cents per share in part satisfaction of

2010Principalprofitshareentitlement

125,000

15,000

(3,674)

88,894,216

32,369,596

Costsassociatedwithissuingshares
Balanceasat31December2010

Shares

16

INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALFYEARENDED
31DECEMBER2011
ACN120394194

NotestotheConsolidatedFinancialStatements

12) RESERVES

Netlossesonavailableforsalefinancialassets(a)
Generalreserve(b)

Consolidated
At
31Dec2011
$

(1,303)
1,926,437
1,925,134

Consolidated
At
30Jun2011
$

(649)
1,542,749
1,542,100

a) Netunrealisedgainsreserve
Thisreserverecordsmovementsinthefairvalueofavailableforsalefinancialassets.

b) Generalreserve
Due to accumulated losses incurred prior to the listing of the company on 17 August 2007, the
Directors resolved to isolate profits derived from trading activities since listing through the
establishmentofaGeneralReserve.

Duringtheperiod,$Nil,representingtradingprofitsfortheyearended30June2011lessdividends
paid, was transferred to the General Reserve from Accumulated Losses (31 December 2010:
$238,405).

13) CONTINGENTLIABILITIESANDCONTINGENTASSETS
Therearenocontingentliabilitiesorassetsasat31December2011.

17

INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALFYEARENDED
31DECEMBER2011
ACN120394194

NotestotheConsolidatedFinancialStatements

14) BUSINESSCOMBINATIONS

AcquisitionofPLNLawyersPtyLtd

Effective 1 August 2011, Integrated Legal Holdings Limited acquired the legal business of PLN
LawyersPtyLtdundertuckinarrangementswiththeexistingmemberfirmArgyleLawyersPtyLtd.

TheacquisitionsupportstheCompanysbusinessstrategytoidentifyqualitylegalbusinessestojoin
theGroupthroughacquisition,andsupportthesebusinessesaspartofanetworktowardsabove
marketgrowth,improvedbusinessperformanceandGroupsynergies.

Theconsiderationfortheacquisitionwasacombinationofcashplus3,043,478sharesat11.5cents
pershare,andincludesadeferredcashcomponentpayableinSeptember2012subjecttothePLN
businessachievingrevenueandprofitabilitytargetsfortheperiodto30June2012.Theacquisition
is structured with significant employment restraints and conditions. The cash component of the
purchaseconsiderationhasbeenfundedfromsurpluscashreserves.

Thefollowingconstitutestheprovisionalcalculationoftheconsiderationgivenandthefairvalueof
netassetsacquired:

$
Consideration
Cash
1,100,000
Deferredcashconsideration
232,653
Totalcashconsideration
1,332,653
Sharesissuedatfairvalue
350,000
Totalacquisitioncost
1,682,653
Carrying
Fair
Amount
Value
$
$

Netassetsacquired
Assets
Plantandequipment
34,860
34,860
Accumulateddepreciation
(22,573)
(22,573)
Netdeferredtaxasset
6,005

Totalassetsacquired
18,292
12,287

Liabilities
Provisionforemployeeentitlements
20,017
20,017
Netdeferredtaxliability
5,204

Totalliabilitiesacquired
25,221
20,017
Netliabilitiesacquired
(6,969)
(7,730)
Goodwillonacquisition
1,689,582

As the integration of the business is still occurring, the fair value of net assets acquired remains
provisionallydetermined.

18

INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALFYEARENDED
31DECEMBER2011
ACN120394194

NotestotheConsolidatedFinancialStatements

TheacquireescontributiontothenetprofitoftheGroupcannotbedeterminedasthisbusinesshas
been incorporated into Argyles business, and it is impracticable to disclose the total revenue and
profit for the combined entity as though the acquisition had taken place at the beginning of the
period.

$
Cash outflows during the period ended 31 December 2011 relate to acquisitions

wereasfollows:
PLNLawyersPtyLtd(1August2011)

Cashconsideration
1,100,000
WojtowiczKellyLegal(1February2011)

Deferredcashconsideration
153,614
Netconsolidatedcashoutflow
1,253,614

15) SHAREBASEDPAYMENTS

a) Recognisedsharebasedpaymentsexpense
The expense recognised for employee services received during the halfyear is shown in the table
below:

Consolidated
Consolidated

31Dec2011
31Dec2010

$
$
Expensearisingfromequitysettledsharebasedtransactions
27,956
17,844

b) Typesofsharebasedpaymentplans

Taxexemptemployeeshareplan(TEESP)
AllemployeesareeligibletoparticipateintheTEESPiftheymeetthefollowingcriteria:

i.
TheyareapermanentfulltimeorpermanentparttimeemployeeoftheGroup;
ii.
Theyhavemettheprobationperiodunderthetermsoftheiremploymentcontract;
iii.
Theyareatleast18yearsofage;and
iv.
TheyareanAustralianresidentfortaxpurposes.

EmployeeswhoparticipateintheTEESPcannominatetocontributeupto$1,000perannumfrom
their pretax wages or salary by way of an effective salary sacrifice towards acquiring fully paid
ordinarysharesintheCompany.

19

INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALFYEARENDED
31DECEMBER2011
ACN120394194

NotestotheConsolidatedFinancialStatements

InaccordancewiththerulesoftheTEESP,sharesacquiredundertheplanmustnotbewithdrawnor
otherwise dealt with, commencing from the date the employee acquires a beneficial interest in
thosesharesuntiltheearliestofthedatethat:

i.
Isthreeyearsaftertheacquisitiondate;or
ii.
TheemployeeceasestobeanemployeeoftheGroup.

The rules of the TEESP do not contain any provisions that could result in an employee forfeiting
ownershipofsharesundertheplan.

Deferredemployeeshareplan(DESP)
Shares are granted to key employees and directors of the Group. The DESP is designed to align
participantsinterestswiththoseofshareholdersbyincreasingthevalueoftheCompanysshares.

EmployeesareeligibletoparticipateintheDESPiftheymeetthefollowingcriteria:

i.
TheyareapermanentfulltimeorpermanentparttimeemployeeoftheGroup;
ii.
Theyhavemettheprobationperiodunderthetermsoftheiremploymentcontract;
iii.
Theyareatleast18yearsofage;and
iv.
TheyareanAustralianresidentfortaxpurposes.

UndertheDESP,senioremployeesareinvitedtoreceivefullypaidordinarysharesintheCompany
subject to the achievement of a number of key performance indicators such as contribution to
earningspersharefortheGroup.

SharesmayeitherbeacquiredonmarketbytheGrouporissuedbytheParent.Duringthehalfyear
ended 31 December 2011, 574,783 shares (30 June 2011: 484,550 shares) were granted by the
Parent with the cost being expensed over a vesting period of three years. The fair value of the
sharesissetatthemarketpriceofthesharesonthedateofgrant.Theimpactontheprofitandloss
forthehalfyearended31December2011is$27,956(31December2010:$17,844).

Whenaparticipantceasesemploymentpriortothevestingoftheirshares,thesharesareforfeited
in full unless otherwise determined by the Board. In the event of a change of control, the
performance period end date will be brought forward to the date of the change of control and
awardswillvestsubjecttoperformanceoverthisshortenedperiod.

Therearenocashsettlementalternatives.

20

INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALFYEARENDED
31DECEMBER2011
ACN120394194

NotestotheConsolidatedFinancialStatements

c) SummaryofsharesgrantedunderTEESPandDESParrangements
NosharesweregrantedundertheTEESPduringthehalfyearended31December2011.

The following table illustrates the number of and movements in shares granted during the period
undertheTEESPandtheDESP:

Consolidated
Consolidated

31Dec2011
31Dec2010

No.
No.
TEESP:

Openingbalanceat1July
252,672
252,672
(1)

Transferredtodepartedemployeesduringtheperiod
Closingbalanceasat31December
252,672
252,672

DESP:
Openingbalanceat1July
Grantedduringtheperiod
Closingbalanceasat31December

1,256,217
574,783
1,831,000

371,667
484,550
856,217

(1) Shares are transferred out of an employee trust into the employees name on termination of
employment.

d) Weightedaverageremainingvestingperiod
Theweightedaverageremainingvestingperiodasat31December2011forthesharesissuedunder
theDESPis1.68years(30June2011:1.66years).

e) Weightedaveragefairvalue
Asat31December2011,theweightedaveragefairvalueofsharesgrantedundertheDESPwas10.9
cents(30June2011:11.7cents).

21

INTEGRATEDLEGALHOLDINGSLIMITED
FINANCIALREPORTFORTHEHALFYEARENDED
31DECEMBER2011
ACN120394194

DirectorsDeclaration

InaccordancewitharesolutionoftheDirectorsofIntegratedLegalHoldingsLimited,Istatethat:

Intheopinionofthedirectors:

a. Thefinancialstatementsandnotesoftheconsolidatedentityareinaccordancewiththe
CorporationsAct2001,including:

i. Givingatrueandfairviewoftheconsolidatedentitysfinancialpositionasat31
December2011andtheperformanceforthehalfyearendedonthatdateofthe
consolidatedentity

ii. ComplyingwithAccountingStandardAASB134InterimFinancialReportingand
theCorporationsRegulations2001

b. Therearereasonablegroundstobelievethatthecompanywillbeabletopayitsdebts
asandwhentheybecomedueandpayable.

OnbehalfoftheBoard

GFowler
Director

Perth,28February2012

22

Auditor's Independence Declaration to the Directors of Integrated Legal

Holdings Limited
In relation to our review of the financial report of Integrated Legal Holdings Limited for the half-year
ended 31 December 2011, to the best of my knowledge and belief, there have been no contraventions of
the auditor independence requirements of the Corporations Act 2001 or any applicable code of
professional conduct.

Ernst & Young

T G Dachs
Partner
Perth
28 February 2012

Liability limited by a scheme approved

under Professional Standards Legislation
TD:SS:ILH:004

To the members of Integrated Legal Holdings Limited

Report on the Half-Year Condensed Financial Report

We have reviewed the accompanying half-year condensed financial report of Integrated Legal Holdings
Limited, which comprises the statement of financial position as at 31 December 2011, the condensed
statement of comprehensive income, condensed statement of changes in equity and statement of cash
flows for the half-year ended on that date, notes comprising a statement of significant accounting policies
and other explanatory information, and the directors declaration of the consolidated entity comprising
the company and the entities it controlled at the half-year end or from time to time during the half-year.

Directors Responsibility for the Half-Year Condensed Financial Report

The directors of the company are responsible for the preparation of the half-year condensed financial
report that gives a true and fair view in accordance with Australian Accounting Standards and the
Corporations Act 2001 and for such internal controls as the directors determine are necessary to enable
the preparation of the half-year condensed financial report that is free from material misstatement,
whether due to fraud or error.

Auditors Responsibility
Our responsibility is to express a conclusion on the half-year condensed financial report based on our
review. We conducted our review in accordance with Auditing Standard on Review Engagements ASRE
2410 Review of a Financial Report Performed by the Independent Auditor of the Entity, in order to state
whether, on the basis of the procedures described, we have become aware of any matter that makes us
believe that the financial report is not in accordance with the Corporations Act 2001 including: giving a
true and fair view of the consolidated entitys financial position as at 31 December 2011 and its
performance for the half-year ended on that date; and complying with Accounting Standard AASB 134
Interim Financial Reporting and the Corporations Regulations 2001 . As the auditor of Integrated Legal
Holdings Limited and the entities it controlled during the half-year, ASRE 2410 requires that we comply
with the ethical requirements relevant to the audit of the annual financial report.
A review of a half-year condensed financial report consists of making enquiries, primarily of persons
responsible for financial and accounting matters, and applying analytical and other review procedures. A
review is substantially less in scope than an audit conducted in accordance with Australian Auditing
Standards and consequently does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence
In conducting our review, we have complied with the independence requirements of the Corporations Act
2001. We have given to the directors of the company a written Auditors Independence Declaration.

Liability limited by a scheme approved

under Professional Standards Legislation
TD;SS:ILH:005

Conclusion
Based on our review, which is not an audit, we have not become aware of any matter that makes us
believe that the half-year condensed financial report of Integrated Legal Holdings Limited is not in
accordance with the Corporations Act 2001, including:
a) giving a true and fair view of the consolidated entitys financial position as at 31 December 2011 and
of its performance for the half-year ended on that date; and
b) complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations
Regulations 2001.

Ernst & Young

T G Dachs
Partner
Perth
28 February 2012

TD;SS:ILH:005