Interim Report. F o r s i x m o n t h s e n d e d 3 0 S e p t e m b e r

Transcription

1 Interim Report F o r s i x m o n t h s e n d e d 3 0 S e p t e m b e r

2 Commentary Jasons Travel Media Limited is pleased to announce its half year results for the six months to 30 September As previously signaled, the results are significantly better than the prior year interim results. However, the two periods are not directly comparable, due to a change of timing in regards to our print publications which will account for much of the variance. Hence the seasonality of the company s results has changed from a strong second half to a strong first half. However, notwithstanding that change, there has been good growth. Key financial results were: operating revenue $7.195M (last half-year $4.033M); EBITDA $2.505M (last half-year $181,000); Net Surplus after Tax $1.204M (last half-year $195,000 loss). Although the EBITDA result is ahead of the $2.3M recently forecasted, the full year EBITDA forecast remains $2.6M, due to the timing of some expenditure. This forecast is 46% ahead of last year s full year EBITDA result of $1.774M. This reporting period is the Group s first under the requirements of NZ equivalents to International Financial Reporting Standards. Accordingly, the prior year numbers have been revised to account for the requirements of NZ IFRS. In particular, goodwill amortisation of $59,000 was added back to reduce the Net Loss after Tax to $195,000, stated above. The Directors are pleased with what we have achieved in the first half of the current year. Our financial results are significantly improving, and we have taken a number of positive steps in preparing the company for future growth. The highlights of the first half of the year included the completion of a number of acquisitions. In June the company announced the purchase of the on-line accommodation booking businesses of Strait Solutions Limited, which includes the websites, and At the same time it announced the purchase of the Whytewaters Group Brochure Distribution Business in Queenstown and two print publications, the Queenstown Visitor Guide and the Queenstown Dining Guide. These acquisitions were followed in late August by the purchase of the Today/Tonight Visitor Guide publications in Christchurch and Queenstown. The new acquisitions are bedding down well. They are meeting our objectives, which were to strengthen our position in tourism activities in general and in core South Island markets in particular. The Holiday Guide suite of web products have given us a strong position in commission-free online bookings, which we are now seeking to take advantage of. The other major initiative has been the launch of the new Jasons website, the ALL-NEW Jasons.com. The new site has considerably improved search usability, and it also provides enhanced mapping and listing displays including streaming video. The investment in the new website is already showing considerably improved performance in terms of site visits, page views and enquiries to our customers. New innovations continue to be developed and released, including the launch this week of the My Jasons user system, which includes the ability for site users to generate their own lists and maps of their favourite travel destinations using My Places. Jasons has also conducted a pro rata one for six rights issue to raise capital for debt repayment and future acquisition needs, as they arise. The rights issue closed last Thursday and was oversubscribed. A fully-imputed interim dividend of 2.24 cents (net 1.50 cents) will be paid on or about 31 January Geoff Burns Chairman 27 November

3 Interim Report CONSOLIDATED INCOME STATEMENT (Unaudited) FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2007 Note Group Group Group 6 months ended 12 months ended 6 months ended 30 September 31 March 30 September $ 000 $ 000 $ 000 Revenue 7,819 12,298 4,033 Earnings before Interest, Tax and Depreciation 2,505 1, Depreciation Earnings before Interest and Tax 2,214 1,268 (60) Interest Operating Surplus before Taxation 1,978 1,012 (195) Income Tax Expense Net Surplus after Taxation 1, (195) Earnings per Share: 2 Basic Earnings per Share (cents) (1.1) Diluted Earnings per Share (cents) (1.1)]] STATEMENT OF CHANGES IN EQUITY (Unaudited) FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2007 Note Group Group Group 6 months ended 12 months ended 6 months ended 30 September 31 March 30 September $ 000 $ 000 $ 000 EQUITY AT THE BEGINNING OF THE PERIOD Net Profit/(Loss) after Tax 1, (195) Translation difference 37 (292) - Total recognised revenues 1, (195) and expenses for the period Distributions to Owners: Interim dividend paid - (255) - Final dividend provided for - (255) - Total distributions to owners - (510) - EQUITY AT THE END OF THE PERIOD 1,

4 Jasons Travel Media Limited CONSOLIDATED BALANCE SHEET (Unaudited) FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2007 S H A R E H O L D E R S E Q U I T Y Note Group Group Group as at as at as at 30 September 31 March 30 September $ 000 $ 000 $ ,000,000 Ordinary Shares 6,541 6,541 6,541 Retained Profits/(Losses) (4,379) (5,583) (5,994) Translation Reserve (254) (292) - TOTAL SHAREHOLDERS EQUITY 1, R E P R E S E N T E D BY : NON CURRENT ASSETS Property, Plant and Equipment Other Intangible Assets Deferred Tax Asset Goodwill 4,515 1,922 1,906 TOTAL NON CURRENT ASSETS 5,943 3,217 3,333 CURRENT ASSETS Trade and Other Receivables 4,511 1,668 1,562 Cash and Cash Equivalents (incl Advances) Work in Progress ,690 TOTAL CURRENT ASSETS 5,220 2,332 3,417 TOTAL ASSETS 11,163 5,549 6,750 NON CURRENT LIABILITIES Financial Liabilities 6 5,585 2,600 2,771 TOTAL NON CURRENT LIABILTIES 5,585 2,600 2,771 CURRENT LIABILITIES Borrowings Trade & Other Payables 1,789 1, Provisions Dividend Payable GST & FBT Payable Provision for Tax (2) 157 Deposits Received In Advance ,946 TOTAL CURRENT LIABILTIES 3,671 2,283 3,432 TOTAL LIABILITIES 9,256 4,883 6,203 NET ASSETS 1,

5 Interim Report CONSOLIDATED STATEMENT OF CASHFLOWS (Unaudited) FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2007 C A S H F LO W S F R O M O P E R AT I N G A C T I V I T I E S : Note Group Group Group 6 months ended 12 months ended 6 months ended 30 September 31 March 30 September $ 000 $ 000 $ 000 Cash was provided from: Receipts from customers 5,284 12,188 5,552 Interest received ,286 12,195 5,557 Cash was applied to: Payments to suppliers & employees (4,546) (11,042) (5,450) Interest paid (236) (256) (135) Income tax (102) (451) - (4,884) (11,749) (5,585) Net cash inflow (outflow) from operating activities (28) CASH FLOWS FROM INVESTING ACTIVITIES Cash was provided from: Sale of property, plant & equipment, intangibles Sale of other long term assets Cash was applied to: Purchase of property, plant & equipment, intangibles and other long term assets (3,168) (439) (306) (3,168) (439) (306) Net cash inflow (outflow) from investing activities (3,147) (255) (141) CASH FLOWS FROM FINANCING ACTIVITIES Cash was provided from: Loans 2, , Cash was applied to: Payment of Dividends (255) (510) (255) (255) (510) (255) Net cash inflow (outflow) from financing activities 2,713 (136) 312 NET INCREASE (DECREASE) IN CASH BALANCES (32) Add cash at beginning of year Less Foreign exchange movement Balance at end of year Comprised of: Cash balances Bank overdraft (64) - (17)

6 Jasons Travel Media Limited NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) FOR THE SIX MONTHS ENDED 30 SEPTEMBER S TAT E M E N T O F S I G N I F I C A N T A C C O U N T I N G P O L I C I E S 1.1 R e p o r t i n g E n t i t y : J a s o n s Tr a v e l M e d i a L i m i t e d ( J T M ) is a public company, registered under the Companies Act It is listed with the New Zealand Stock Exchange on the NZAX board. J T M is a reporting entity for the purposes of the Financial Reporting Act These Financial Statements have been prepared in accordance with the Financial Reporting Act 1993 and the Companies Act The Group comprises the operating entities J T M and its wholly owned subsidiary, J a s o n s Tr a v e l M e d i a P t y L i m i t e d ( J T M P t y ), ACN , registered and operating in Australia. J T M P t y was acquired in April J T M also owns 100% of non-operating entities V i s i t o r p o i n t L t d (acquired in 2006), S o u t h e r n B r o c h u r e D i s t r i b u t i o n L t d (acquired in 2007) and To d a y & To n i g h t L t d (acquired in 2007). S o u t h e r n B r o c h u r e D i s t r i b u t i o n L t d in turn owns 50% of a joint venture business, S o u t h e r n B r o c h u r e S e r v i c e s L t d M e a s u r e m e n t B a s e a n d B a s i s o f P r e p a r a t i o n : These interim financial statements have been prepared in accordance with the New Zealand Institute of Chartered Accountants reporting standard NZ IAS 34: Interim Financial Reporting. They are also subject to the provisions of NZ IFRS 1: First Time Adoption of NZ Equivalents to IFRS, because they form part of the period to 31 March 2008, for which the group must adopt NZ IFRS for its annual report. For this reason, some accounting policies are not consistent with those applied for the preparation of the previous interim and annual period. For those prior periods New Zealand Financial Reporting Standards (NZ FRS) were applied. An explanation of how the transition to NZ IFRS has affected these financial reports is provided under Note 3 below. In preparing these financial statements in accordance with NZ IFRS 1 the mandatory exemptions have been applied, as well as the optional Business Combinations exemption. Accordingly, business combinations prior to the date of transition to NZ IFRSs, 1 April 2006, have not been restated. The measurement base adopted is historical cost, unless otherwise stated S p e c i f i c A c c o u n t i n g P o l i c i e s : The following specific accounting policies which materially affect the measurement of financial performance and financial position have been applied. Unless otherwise stated, these policies are consistent with those applied in the last annual report dated 31 March 2007: P r o p e r t y, P l a n t a n d E q u i p m e n t Property, Plant and Equipment (P, P & E) are stated at the lower of cost less aggregate depreciation or their recoverable amount. Depreciation has been calculated using rates permitted by the Income Tax Act Furniture & Fittings 11.4% % DV Computer Software 40.0% % DV Computer Hardware 20.0% % DV Computer Development 48.0% DV Leasehold Alterations 20.0% % DV Motor Vehicles 20.0% % DV Plant & Equipment 11.4% % DV Salary costs associated with development of the website have been capitalised. If the recoverable amount of an item of P, P & E is less than its carrying amount, the item is written down to its recoverable amount. The write-down of an item recorded at historical cost is recognised as an expense in the income statement. When a revalued item is written down to recoverable amount, the write-down is recognised as a downward revaluation to the extent of the corresponding revaluation reserve and any balance recognised in the income statement. The carrying amount of an item of P, P & E that has previously been written down to recoverable amount is increased to its current recoverable amount if there has been a change in the estimates used to determine the amount of the write-down. The increased carrying amount of the item will not exceed the carrying amount that would have been determined if the write-down to recoverable amount had not occurred. Reversals of impairment write-downs are accounted for as follows: On P, P & E that are not revalued, the reversal is recognised in the income statement; and On revalued P, P & E, the reversal is recognised as an upward revaluation. 6

7 Interim Report The Directors have reviewed the fixed asset register and are of the opinion that there has been no permanent impairment of fixed assets in the year under review A c c o u n t s R e c e i v a b l e Accounts Receivable are stated at expected realisable values, being the historical value less an allowance for doubtful debts. The allowance for doubtful debts is based upon historical trends of non-recovery and specific at-risk accounts, based upon current collection activity W o r k i n P r o g r e s s Work in Progress includes costs incurred in bringing a publication into print or onto the website, at which point income is recognised and costs are expensed against the income. These costs include the costs of direct labour and relevant overheads associated with production, including a proportion of selling costs relating to these future publications, as is the industry norm I n t e r e s t o n H i r e P u r c h a s e Interest on Hire Purchase is provided in accordance with the lessor s schedule of charges G o o d s a n d S e r v i c e s Ta x These Financial Statements have been prepared on a GST exclusive basis L e a s e s The business leases certain land and buildings. Operating lease payments, where the lessor retains substantially all the risks and benefits of ownership of the leased items, are expensed in equal instalments over the lease term. Leases under which the company assumes substantially all the risks and rewards incidental to ownership are treated as finance leases and capitalised I n c o m e R e c o g n i t i o n Deposits are received from customers upon placement of advertising orders. Deposits are credited to a Deposits in Advance account. Contracts are irrevocable once signed. Upon completion and invoicing of the relevant publication and/or updating to the website, deposits are recognised as income and transferred to sales. Web income that is not linked to a publication is recognised in the period it is published on the website I n c o m e Ta x The income tax expense charged to the statement of financial performance includes both the current year s provision and the income tax effects of timing differences calculated using the liability method. The expense includes the effect of adjustments to the operating surplus for permanent differences between taxation and accounting rules. Tax effect accounting has been applied on a comprehensive basis to all timing differences. A debit balance in the deferred tax account, arising from timing differences or taxation benefits from taxation losses, is recognised where it is probable that future taxable profits will be available against which the asset can be utilised. Deferred tax assets and liabilities are not offset if they arise in different tax jurisdictions. Any unrecognised deferred tax assets are re-assessed annually B u s i n e s s C o m b i n a t i o n s a n d G o o d w i l l All business combinations are accounted for by applying the purchase method. Under the purchase method, goodwill is recognised as the difference between the cost of the acquisition and the fair value of identifiable assets at the date of acquisition. Goodwill is tested for impairment annually and reviewed at each reporting date, or at any time there are indications of impairment. For the purposes of impairment testing, goodwill is allocated to cash generating units. Cash-generating units are the primary reporting segments of each country of operation, i.e. New Zealand and Australia O t h e r I n t a n g i b l e A s s e t s Intangible assets (other than goodwill) are recognised where a future economic benefit attributable to the asset will flow to the business and the cost can be reliably measured. Intangible assets are recorded at cost and amortised on a straight-line basis over their estimated useful lives, or reviewed periodically for impairment (annually, or whenever there is evidence of impairment) if their life is indefinite. Development costs of systems and the website are recorded as intangible assets, as is other computer software and licences, other than where they form an integral part of related computer hardware F o r e i g n C u r r e n c i e s The consolidated financial statements are presented in New Zealand dollars, being the currency of the economic environment in which the parent entity primarily operates 7

8 Jasons Travel Media Limited NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2007 (continued) (its functional currency). The functional currency of J T M P t y is Australian dollars. Transactions in foreign currencies are converted at the New Zealand rate of exchange ruling at the date of the transaction. At balance date foreign monetary assets and liabilities are translated at the closing rate. Exchange variations arising from these translations are included in the Statement of Financial Performance B a s i s o f C o n s o l i d a t i o n The Group Financial Statements have been prepared using the purchase method of consolidation. All significant intercompany transactions and balances were eliminated on consolidation. The assets and liabilities of J T M P t y were translated at the exchange rate ruling at balance date. Revenues and expenses were translated at an estimated average rate throughout the period. Exchange differences arising on the translation of J T M P t y are recognised in the profit and loss account S t a t e m e n t o f C a s h F l o w s For the purposes of the Statement of Cash Flows, cash includes cash balances (net of bank overdrafts) and overnight deposits. Cash excludes short term bank bills that are not part of daily cash management. Operating activities comprise all activities and events that are not investing or financing activities. Investing activities comprise activities relating to the holding or disposal of fixed assets, and investment in or advances to subsidiaries. Financing activities are those activities relating to changes in the equity or borrowings of the business P r o v i s i o n f o r D i v i d e n d s Dividends are recognised in the period they are authorised and declared S h o r t - t e r m E m p l o y e e B e n e f i t s Employee entitlements to wages & salaries, bonuses, holiday leave and sick leave are provided for if payable within 12 months of the year end. These represent present obligations for services provided up to the reporting date P r o v i s i o n s Provisions are liabilities of uncertain timing or amount, recognised when the Group has a present obligation based on past events and it is probable that economic resources will be required to meet the obligation, which can be reliably measured. The amount recognised as a provision is management s best estimate of the present value of the expenditure required to settle the obligation, at balance date J u d g e m e n t a n d E s t i m a t i o n U n c e r t a i n t y The preparation of financial statements of necessity involves judgement and estimation. In particular, judgement and estimation are required in calculating the balance of work in progress carried forward, for unpublished work. Wherever possible, estimates are made on the basis of prior actuals. 2. E A R N I N G S P E R S H A R E 2.1 B a s i c E a r n i n g s p e r S h a r e Basic EPS is the profit or loss attributable to ordinary shareholders of the company divided by the weighted average number of shares outstanding during the period D i l u t e d E a r n i n g s p e r S h a r e Diluted EPS is basic EPS adjusted for the effects of conversion of convertible instruments, exercise of options or warrants, or the issue of ordinary shares upon the satisfaction of specific conditions. There were no adjustments for dilution of EPS in the current period or comparative periods. 3. R E C O N C I L I AT I O N B E T W E E N P R E V I O U S N Z G A A P A N D N Z I F R S This note includes reconciliations between previous reporting under NZ GAAP and new reporting under NZ equivalents to IFRSs. G r o u p 3.1 R e c o n c i l i a t i o n s o f E q u i t y : $ E q u i t y a t t h e D a t e o f Tr a n s i t i o n t o N Z I F R S Equity at the date of transition to NZ IFRS, 1 April 2006, under previous NZ GAAP: 742 Equity at the date of transition to NZ IFRS, 1 April 2006, under NZ IFRS: 742 E f f e c t o f t r a n s i t i o n t o N Z I F R S a t t h e d a t e o f t r a n s i t i o n : - 8

9 Interim Report E q u i t y a t t h e L a s t A n n u a l R e p o r t i n g d a t e Equity at the last annual reporting date, 31 March 2007, under previous NZ GAAP: 548 Equity at the last annual reporting date, 31 March 2007, under NZ IFRS: 666 Equity effect of transition to NZ IFRS at the last annual reporting date: 118 This variance of $118k arises upon the reversal of goodwill amortisation previously expensed under NZ GAAP. Under NZ IFRS goodwill is reviewed for impairment annually, or whenever evidence of impairment exists E q u i t y a t t h e L a s t I n t e r i m R e p o r t i n g d a t e Equity at the last interim reporting date, 30 September 2006, under previous NZ GAAP: 488 Equity at the last interim reporting date, 30 September 2006, under NZ IFRS: 547 Equity effect of transition to NZ IFRS at the last interim reporting date: 5 9 This variance of $59k also arises upon the reversal of goodwill amortisation previously expensed under NZ GAAP R e c o n c i l i a t i o n s o f P r o f i t o r L o s s : Group Reconciliation of Profit or Loss for the last annual reporting period: $ Net Surplus After Taxation for the year ended 31 March 2007, under previous NZ GAAP: 608 Net Surplus After Taxation for the year ended 31 March 2007, under NZ IFRS: 726 Profit & Loss effect of transition to NZ IFRS for the year ended 31 March 2007: 118 This variance is the P&L effect of the reversal of goodwill amortisation, as per note above. There is no cashflow or taxation impact as a result of this adjustment Reconciliation of Profit or Loss for the last interim reporting period: Net Surplus After Taxation for the 6 months ended 30 September 2007, under previous NZ GAAP: (254) Net Surplus After Taxation for the 6 months ended 30 September 2007, under NZ IFRS: (195) Profit & Loss effect of transition to NZ IFRS for the 6 months ended 30 September 2007: 59 This variance is the P&L effect of the reversal of goodwill amortisation, as per note above. There is no cashflow or taxation impact as a result of this adjustment E x p l a n a t i o n o f E f f e c t s o n C a s h F l o w s The adjustments identified under notes 3.1 and 3.2 above will have the following effects: S t a t e m e n t o f C a s h F l o w s There is no effect Reconciliation of Surplus After Tax to Cash Flow from Operating Activities The surplus after tax will be increased by the items above, offset by a reduction to Amortisation of Goodwill under the heading Non-Cash Items. Accordingly the Cash Flow From Operating Activities balance does not change from that reported under previous NZ GAAP E x p l a n a t i o n o f E f f e c t s o n t h e B a l a n c e S h e e t The adjustments identified under notes 3.1 and 3.2 above will increase Equity by the amounts stated, offset by an increase in the carried value of the asset Goodwill. Any other differences, between Balance Sheet values under previous NZ GAAP and NZ equivalents to IFRSs, relate to classification only, between categories of assets and liabilities, without any effect on the totals of assets and liabilities, overall. 4. E F F E C T S O F S E A S O N A L I T Y O N T H E I N T E R I M R E S U LT S Seasonality effects the Group s interim results, compared to annual results, because of the timing of annual publications. This year a major annual print publication that has previously published just after the interim period was published just before the interim period concluded. Accordingly, despite the variance in interim results year on year, annual results will not vary to this extent. 9

10 Jasons Travel Media Limited NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) FOR THE SIX MONTHS ENDED 30 SEPTEMBER 2007 (continued) 5. B U S I N E S S C O M B I N AT I O N S JTM has acquired the following four complementary businesses, involving print and web publication and brochure distribution, during the six months ended 30 September The significant movement in Goodwill and Borrowings in the period is attributable to these acquisitions. 5.1 A c q u i s i t i o n o f B u s i n e s s A s s e t s f r o m S t r a i t S o l u t i o n s L t d On 29 June 2007 JTM purchased the on-line accommodation booking businesses of Strait Solutions Limited, which includes the websites: and G r o u p Det ail s of the net as sets acquired and goodwill are as follows: $ Goodwill 500 Other assets at fair value - To t a l C a s h C o n s i d e r a t i o n The goodwill price is based upon the potential of the websites to enhance the Group s future revenues by offering a commission-free booking option to customers, upon integration into Group s existing products and services. Accordingly no value has been attached to the intangible assets acquired, as their current state pre-acquisition has no bearing on their potential value to the Group after integration. Of the $500k purchase price, $100k has been retained pending completion of the integration project referred to above. Completion is expected before 31 December Acquisition costs were $4k A c q u i s i t i o n o f B u s i n e s s A s s e t s f r o m W h y t e W a t e r s G r o u p On 29 June 2007 JTM acquired the brochure distribution business of Whyte Waters Group, based in Queenstown, and two of their print publications, the Queenstown Visitor Guide and the Queenstown Dining Guide. G r o u p Details of the net assets acquired and goodwill are as follows: $ Property, Plant & Equipment at fair value 17 Goodwill 948 To t a l C a s h C o n s i d e r a t i o n The goodwill price is based upon the historical profitability of the purchased publications and the brochure distribution business. Acquisition costs were $11k A c q u i s i t i o n o f B u s i n e s s A s s e t s f r o m To d a y & To n i g h t P a r t n e r s h i p On 31 August 2007 JTM acquired the operations of the Today & Tonight Partnership in Christchurch and Queenstown. This comprised principally of their Christchurch Visitor Guide and Queenstown Visitor Guide publications and associated websites including www. todaytonight.co.nz. G r o u p Details of the net assets acquired and goodwill are as follows: $ Property, Plant & Equipment at fair value 37 Goodwill 1,063 To t a l C a s h C o n s i d e r a t i o n 1,10 0 The goodwill price is based upon the historical profitability of the purchased publications. Acquisition costs were $10k. 6. BANK ADVANCES In June 2005 J T M obtained a flexible credit facility (FCF) and overdraft facility from the ANZ National Bank Limited. The borrowing limit under the FCF is $2.4m. This has been temporarily entended to $3.0m to cover seasonal funding requirements, expiring on 30 November In June 2007 J T M obtained a term loan of $1.5m, increased to $1.61m in July 2007, from the ANZ National Bank Limited, for the purpose of funding pending acquisitions. The term loan is repayable at the rate of $125k quarterly, commencing on 30 September In August 2007 J T M obtained bridging finance of $1.1m from the ANZ National Bank Limited for the purpose of funding acquisitions, to be repaid from the proceeds of J T M s then proposed rights issue on 30 November 2007 (refer note 7 below). 10

11 Interim Report Bank advances from the ANZ National Bank Limited are secured under a General Security Agreement over all assests and undertakings of J T M, together with cross guarantees and indemnities between JTM and JTM P t y Ltd. 7. S U B S E Q U E N T E V E N T S Subsequent to the period under review J T M announced a capital raising by way of Rights Issue. Existing shareholders as at the record date of 26 October 2007 were entitled to purchase one new ordinary share for every six ordinary shares they hold, at a cost of $0.70 per share. The offer closed on November 22nd, fully subscribed, raising $1.983m. The proceeds will be used to reduce borrowings and assist to fund future acquisition opportunities. The cost of undertaking this rights issue is estimated to be around $35k. 8. C O N T I N G E N T L I A B I L I T I E S The Group and Parent have no material contingent liabilities as at 30 September 2007 (2006: $nil). 9. N E T C A S H F L O W F R O M O P E R AT I N G A C T I V I T I E S Group Group Group 6 months ended 12 months ended 6 months ended 30 September 31 March 30 September $ 000 $ 000 $ 000 S u r p l u s a f t e r t a x a t i o n 1, (19 5 ) Add non-cash items: Depreciation Deferred taxation Net loss / (gain) on foreign currency - (256) - Amortisation of Goodwill M o v e m e n t s i n w o r k i n g capit al: Accounts receivable (2,830) Accounts payable (1,723) (453) (246) (1, ) ( ) 4 6 A d d ( l e s s) i t e m s c l a s s i f i e d as investing activit y Sale of fixed assets 5 (125) (119) 5 (125) (119) N e t c a s h i n f l o w (o u t f l o w ) from operating activities (402) 4 46 ( 28 ) 11

12 D i r e c t o r s R e g i s t e r e d O f f i c e P o s t a l A d d r e s s S h a r e R e g i s t r y A c c o u n t a n t s B anker s S o l i c i t o r s A u d i t o r s I n v e s t o r R e l a t i o n s Geoff Burns B.Com CA (Chairman) Mike Simm BCA, ACA (Deputy Chairman) Steven Joyce BSc John Sandford 1st Floor, 2 Ngaire Avenue Newmarket, Auckland 1051 New Zealand Telephone Facsimile admin@jasons.com Head Office PO Box 9390 Newmarket, Auckland 1149 New Zealand Computershare Investor Services Limited Private Bag Auckland 1020 New Zealand Telephone Hayes Knight NZ Ltd Auckland ANZ National Bank Greig Bourke Auckland Langton Hudson Auckland Hayes Knight Audit Auckland Shareholder enquiries related to shareholding should be directed to Computershare Investor Services Limited. Jasons Travel Media Limited welcomes communication with current and prospective investors. Telephone (general) or Steven Joyce (direct).