044.ASX IAW Feb 27 2009 11.45 Half Year Report and Accounts

INTEGRATEDLEGALHOLDINGSLIMITED
ACN120394194
ASXAppendix4D
RESULTSFORANNOUNCEMENTTOTHEMARKET
Currentreportingperiod:
Previouscorrespondingperiod:
Halfyearended31December2008
Percentage
change
UP(+)/DOWN()
Amount
$A
Revenuefromordinaryactivities
Profitfromordinaryactivitiesaftertaxattributable
tomembers
68%
0.1%
7,593,136
896,703
Netprofitfortheperiodattributabletomembers
0.1%
896,703
Amount
pershare
2.2cents
Frankedamount
pershareat30%
2.2cents
31Dec2008
31Dec2007
EARNINGS
DIVIDENDS
2008FinalDividendPaid
Correspondingperiod
NETTANGIBLEASSETBACKING
Nettangibleassetbackingpersecurity
7.36
10.02
Thepreviouscorrespondingperiodrelatestotheinitial4.5monthstradingoftheCompany
under public listing. The Company acquired the foundation businesses of Talbot Olivier,
BrettDaviesLawyersandLawCentralCoPtyLtdatthetimeofpubliclisting.TheDirectors
consider this initial trading period to be an abnormal period of trading reflecting the
integrationofacquiredbusinessesandestablishmentasalistedcompany.
Consolidated operating revenues of $7,593,136 were 68% higher than the previous
corresponding halfyear which reported $4,510,136 operating revenues. Revenue from
ordinary activities increased due to a combination of organic growth and acquisitions of
newmemberfirms.
Forthehalfyearended31December2008,theconsolidatedentitygeneratedanetprofit
after tax of $896,703 (12% of operating revenues) compared to the halfyear ended 31
December2007of$895,412(20%ofoperatingrevenues).
This result was in line with expectations, the Directors having previously advised that the
Company would require an element of investment in the 2008/09 year to ensure that
memberfirmsarebestplacedtotakeadvantageoffuturegrowthopportunitiesavailable
tothem.
ACN120394194
ASXAppendix4D
RESULTSFORANNOUNCEMENTTOTHEMARKET
Inparticular,theCompanyscorporateexpenseshavenecessarilygrowninto2008/09.The
Company has made an important investment in senior management of the Company,
whomtheDirectorsbelievewillbeabletomanagetheCompanytoachievestronggrowth
intothefuture.
TheCompanynowhasafulltimeManagingDirectorbasedinSydney(effectiveMay2008)
as well as a Chief Financial Officer based in Perth (effective September 2007). Whilst we
anticipateaverysmallcorporateofficefortheCompanygoingforward,theeffectofthese
appointmentsmateriallyincreasesyearonyearcosts.
The Directors consider the current period to reflect a more normalised operating
profitabilityandmargin.
Earningspershare(weightedaverage)fortheperiodwere1.38centspershare,compared
totheyearended30June2008of2.66cents(31December2007halfyear:1.57cents).
The Company has maintained a strong balance sheet position, with cash holdings at 31
December 2008 of $2.25m ($5.63m at 30 June 2008), and a net tangible asset backing of
7.36centspershare(comparedwith11.71centspershareat30June2008).
DuringtheperiodtheCompanypaida2.2centspersharedividendwithrespecttotheyear
ended30June2008.
Further,theCompanyhasgrownstronglyandselectivelyexpandedduringtheperiod,with
theannouncementoftheacquisitionofitsfirsteastcoastlawfirm,TheArgylePartnership,
effective 1 November 2008, with annual revenue of approximately $6.5m. The business
wasacquiredthroughacombinationofcashandshares.
Duringthehalfyear,theGroupgainedcontrolofthefollowingentity:
EntityName
Datecontrolgained
TheArgylePartnershipLawyers
1November2008
Thegroupdoesnothaveanyinterestsinassociatesoutsidethegroup,nordoesithaveany
interestinjointventures.
ACN120394194
(ASX:IAW)
HalfYearFinancialReport
forthehalfyearended31December2008
FINANCIALREPORTFORTHEHALFYEARENDED
31DECEMBER2008
ACN120394194
Contents
Corporateinformation.............................................................................................................1
Directorsreport......................................................................................................................2
Consolidatedbalancesheet.....................................................................................................5
Consolidatedincomestatement..............................................................................................6
Consolidatedcashflowstatement..........................................................................................7
Consolidatedstatementofchangesinequity.........................................................................8
Notestoandformingpartofthefinancialreport...................................................................9
Directorsdeclaration............................................................................................................20
Auditorsindependencedeclaration.....................................................................................21
Independentreviewreport....................................................................................................22
31DECEMBER2008
ACN120394194
CorporateInformation
ABN20120394194
Directors
TheHonJohnDawkins,Chairman
AnneTregonning,NonexecutiveDirector
GraemeFowler,ManagingDirector
CompanySecretary
JeanMarieRudd
Registeredoffice
GroundFloor
201AdelaideTerrace
PerthWA6000
Principalplaceofbusiness
HeadOffice
Level22
1MarketStreet
SydneyNSW2000
Tel:(02)82636601
ShareRegister
ComputershareInvestorServicesPtyLimited
Level2,45StGeorgesTerrace
PerthWA6000
Tel:(08)93232000
IntegratedLegalHoldingsLimitedsharesarelistedontheAustralianStockExchange.
Solicitors
TalbotOliver
Level8,WesfarmersHouse
40TheEsplanade
PerthWA6000
Bankers
NationalAustraliaBankLimited
50StGeorgesTerrace
PerthWA6000
Auditors
Ernst&Young
11MountsBayRoad
PerthWA6000
31DECEMBER2008
ACN120394194
DirectorsReport
The directors of Integrated Legal Holdings Limited (the Company) submit the halfyear financial
reportforthehalfyearended31December2008.
DIRECTORS
ThenamesoftheCompanysdirectorsinofficeduringthehalfyearanduntilthedateofthisreport
aresetoutbelow.Directorswereinofficeforthisentireperiodunlessotherwisestated.
TheHonJohnDawkinsAO(NonexecutiveChairman)
AnneTregonning(NonexecutiveDirector)
GraemeFowler(ManagingDirector)
REVIEWANDRESULTSOFOPERATIONS
The previous corresponding period relates to the initial 4.5 months trading of the Company under
public listing. The Company acquired the foundation businesses of Talbot Olivier, Brett Davies
LawyersandLawCentralCoPtyLtdatthetimeofpubliclisting.TheDirectorsconsiderthisinitial
tradingperiodtobeanabnormalperiodoftradingreflectingtheintegrationofacquiredbusinesses
andestablishmentasalistedcompany.
Consolidated operating revenues of $7,593,136 were 68% higher than the previous corresponding
halfyearwhichreported$4,510,136operatingrevenues.Revenuefromordinaryactivitiesincreased
duetoacombinationoforganicgrowthandacquisitionsofnewmemberfirms.
Forthehalfyearended31December2008,theconsolidatedentitygeneratedanetprofitaftertax
of $896,703 (12% of operating revenues) compared to the halfyear ended 31 December 2007 of
$895,412(20%ofoperatingrevenues).
Thisresultwasinlinewithexpectations,theDirectorshavingpreviouslyadvisedthattheCompany
wouldrequireanelementofinvestmentinthe2008/09yeartoensurethatmemberfirmsarebest
placedtotakeadvantageoffuturegrowthopportunitiesavailabletothem.
In particular, the Companys corporate expenses have necessarily grown into 2008/09. The
Company has made an important investment in senior management of the Company, whom the
DirectorsbelievewillbeabletomanagetheCompanytoachievestronggrowthintothefuture.
TheCompanynowhasafulltimeManagingDirectorbasedinSydney(effectiveMay2008)aswellas
aChiefFinancialOfficerbasedinPerth(effectiveSeptember2007).Whilstweanticipateaverysmall
corporate office for the Company going forward, the effect of these appointments materially
increasesyearonyearcosts.
The Directors consider the current period to reflect a more normalised operating profitability and
margin.
Earnings per share (weighted average) for the period were 1.38 cents per share, compared to the
yearended30June2008of2.66cents(31December2007halfyear:1.57cents).
31DECEMBER2008
ACN120394194
DirectorsReport
The Company has maintained a strong balance sheet position, with cash holdings at 31 December
2008of$2.25m($5.63mat30June2008),andanettangibleassetbackingof7.36centspershare
(comparedwith11.71centspershareat30June2008).
DuringtheperiodtheCompanypaida2.2centspersharedividendwithrespecttotheyearended
30June2008.
Further, the Company has grown strongly and selectively expanded during the period, with the
announcementoftheacquisitionofitsfirsteastcoastlawfirm,TheArgylePartnership(nowtrading
asArgyleLawyers),effective1November2008,withannualrevenueofapproximately$6.5m.The
businesswasacquiredthroughacombinationofcashandshares.
ArgyleLawyersisahighlyregardedcommerciallawfirmwithofficesinSydneyandMelbourne.This
strategically important acquisition for the Company is the first of its east coast expansion having
listedinAugust2007withPerthbasedfoundationbusinesses.
TheDirectorsbelievethattheeffectofthetransactionwillbemateriallypositiveintermsofearnings
pershare,andwillenhancetheCompanysgrowthprospects.Thefullrevenueandprofitimpactof
theacquisitionwillbeachievedfromthe2009/10financialyear.
Operatingcashflowsfortheperiodwere$0.36m,comparedwith$1.12mforthefullyear2007/08
(firsthalf2007/08$0.47m).
Operatingcashflowsareadverselyaffectedbynewfirmacquisitions,asfundsfromoperationsare
investedinthebuildupofworkingcapital(debtorsandworkinprogress)postacquisitiontonormal
levels. The Company does not acquire debtors and work in progress as part of the acquisition.
Duringtheperiod,operatingcashflowswereadverselyaffectedbytheacquisitionofArgyleLawyers.
TheDirectorsarepleasedwiththeGroupsperformanceandthesignificantprogressthathasbeen
madeduringtheperiod.
TheDirectorsareoftheviewthattheCompanyiswellplacedtocontinuegrowthbothorganically
and by acquisition by capitalising on the significant opportunity afforded by prevailing industry
issues, including succession planning and availability of capital to fund growth. Longterm
competitiveadvantagecanbeachievedbytheCompanyinsupportingmemberfirmsindeveloping
scaletounderpinfuturegrowthandprofitability.
31DECEMBER2008
ACN120394194
DirectorsReport
AUDITORSINDEPENDENCEDECLARATION
A copy of the auditors independence declaration in relation to the review for the halfyear is
providedwiththisreportonpage21.
Signedinaccordancewitharesolutionofthedirectors.
GFowler
ManagingDirector
Sydney,27February2009
31DECEMBER2008
ACN120394194
BalanceSheet
ASSETS
CurrentAssets
Cashandcashequivalents
Tradeandotherreceivables
Prepayments
Workinprogress
TotalCurrentAssets
NoncurrentAssets
Availableforsalefinancialassets
Plantandequipment
Goodwill
Intangibleassets
Deferredtaxassets
Prepayments
TotalNoncurrentAssets
TOTALASSETS
LIABILITIES
CurrentLiabilities
Tradeandotherpayables
Interestbearingloansandborrowings
Incometaxpayable
Provisions
TotalCurrentLiabilities
NoncurrentLiabilities
Provisions
Otherliabilities
TotalNoncurrentLiabilities
TOTALLIABILITIES
NETASSETS
EQUITY
Contributedequity
Accumulatedlosses
Reserves
TOTALEQUITY
Note
7
8
10
Consolidated
Asat
31Dec2008
$
2,248,034
3,500,372
341,102
1,463,436
7,552,944
2,374
692,963
8,846,343
118,800
429,869
100,822
10,191,171
17,744,115
1,387,977
137,481
1,321,769
455,174
3,302,401
114,213
158,245
191,631
464,089
3,766,490
13,977,625
30,317,493
(16,338,206)
(1,662)
13,977,625
Consolidated
Asat
30June2008
$
5,626,766
2,392,625
258,893
1,084,352
9,362,636
2,524
192,836
6,330,233
136,620
410,647
7,072,860
16,435,496
1,081,009
169,764
968,272
173,111
2,392,156
18,708
119,986
138,694
2,530,850
13,904,646
29,729,975
(15,823,844)
(1,485)
13,904,646
TheaboveconsolidatedBalanceSheetshouldbereadinconjunctionwiththeaccompanyingnotes.
5
31DECEMBER2008
ACN120394194
IncomeStatement
Note
Professionalfeesrevenue
Interestrevenue
Otherrevenue
Totalrevenue
Occupancyexpenses
Salariesandemployeebenefitsexpenses
Depreciationandamortisationexpenses
Impairmentlosses
Officeexpenses
Advertisingandmarketingexpenses
Otherexpenses
Interestexpenses
Totalexpenses
Profitbeforeincometax
Incometaxexpense
Profitafterincometax
Netprofitfortheperiod
Basicanddilutedearningspershareforprofit
attributabletotheordinaryequityholderoftheparent
Consolidated
Halfyear
ended
31Dec2008
$
Consolidated
Halfyear
ended
31Dec2007
$
7,203,303
139,068
250,765
7,593,136
644,543
4,186,881
74,235

1,146,455
149,086
84,487
12,477
6,298,164
1,294,972
398,269
896,703
896,703
4,269,939
237,830
2,367
4,510,136
233,783
1,926,317
48,831
215,826
594,759
46,814
58,124
11,166
3,135,620
1,374,516
479,104
895,412
895,412
1.38
1.57
TheaboveconsolidatedIncomeStatementshouldbereadinconjunctionwiththeaccompanying
notes.
6
31DECEMBER2008
ACN120394194
CashFlowStatement
Cashflowsfromoperatingactivities
Receiptsfromcustomers
Paymentstosuppliersandemployees
Interestreceived
Rentreceived
Sundryincome
Interestandothercostsoffinancepaid
Netcashflowsfromoperatingactivities
Cashflowsfrominvestingactivities
Purchaseofplantandequipment
Proceedsfromthedisposalofplantandequipment
Paymentforavailableforsaleinvestments
Paymentforacquisitionofbusinessesnetofcash
acquired
Netcashflowsusedininvestingactivities
Cashflowsfromfinancingactivities
Proceedsfromissueofshares
Paymentsforcapitalraisingcosts
Proceedsfromborrowings
Repaymentsofborrowings
Paymentforthesettlementofliabilityassumedon
acquisitionofLawCentralCoPtyLtd
Paymentofdividends
Netcashflows(usedin)/fromfinancingactivities
Netdecreaseincashheld
Cashandcashequivalentsatthebeginningofthe
period
Cashandcashequivalentsattheendoftheperiod
Consolidated
Halfyear
ended
31Dec2008
$
Note
Consolidated
Halfyear
ended
31Dec2007
$
6,411,856
(6,397,647)
140,016
108,597
103,141
(1,277)
364,686
(117,749)
1,353

2,556,733
(2,299,115)
212,304
818
1,549
(5,220)
467,069
(2,137,552)
(2,253,948)

81,484
(159,889)
(6,652,695)
(6,665,627)

(1,411,065)
(1,489,470)
(3,378,732)
(214,665)
2,450,527
(3,748,031)
5,626,766
2,248,034
8,788,735
5,040,704
(9,950)
1,000
(3,982)
3,628,130
(944,763)
(18,175)
TheaboveconsolidatedCashFlowStatementshouldbereadinconjunctionwiththeaccompanying
notes.
7
31DECEMBER2008
ACN120394194
StatementofChangesinEquity
CONSOLIDATED
At1July2007
Netfairvaluelossesonavailablefor
saleinvestments
Totalincomeandexpenseforthe
periodrecogniseddirectlyinequity
Profitfortheperiod
period
Issued
Capital
$
17,368,352
Profitfortheperiod
period
Equitytransactions
Dividendspaid
Sharesissued
Sharebasedpayments
Balanceasat31December2008
Total
Equity
$
205
(99)
(99)
(99)
(99)
895,412
895,412
895,412
(99)
895,313
Equitytransactions
Sharesissued
13,045,708
Transactioncostsonshareissue
(1,514,575)
Incometaxonitemstakendirectlytoor
transferredfromequity
423,960
29,323,445
CONSOLIDATED
At1July2008
Netfairvaluelossesonavailablefor
saleinvestments
periodrecogniseddirectlyinequity
Accumulated
Losses
$
(17,368,147)
Net
Unrealised
Gains
Reserve
$

Issued
Capital
$
29,729,975
13,045,708
(1,514,575)
(16,472,735)

(99)
423,960
12,850,611
Accumulated
Losses
$
(15,823,844)
Net
Unrealised
Gains
Reserve
$
(1,485)
Total
Equity
$
13,904,646
(177)
(177)
(177)
(177)
896,703
580,000
7,518
30,317,493
896,703
896,703
(177)
896,526
(1,411,065)
(16,338,206)

(1,662)
(1,411,065)
580,000
7,518
13,977,625
TheaboveStatementofChangesinEquityshouldbereadinconjunctionwiththeaccompanying
notes.
8
31DECEMBER2008
ACN120394194
NotestoandformingpartoftheFinancialReport
1) CORPORATEINFORMATION
ThegeneralpurposecondensedfinancialreportofIntegratedLegalHoldingsLimited(theCompany)
forthehalfyearended31December2008wasauthorisedforissueinaccordancewitharesolution
oftheDirectorson26February2009.IntegratedLegalHoldingsLimitedisacompanyincorporated
inAustraliaandlimitedbyshares,whicharepubliclytradedontheAustralianStockExchange(ASX).
2) SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES
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
fortheyearended30June2008andconsideredtogetherwithanypublicannouncementsmadeby
IntegratedLegalHoldingsLimitedanditscontrolledentities(theGroup)duringthehalfyearended
31December2008inaccordancewiththecontinuousdisclosureobligationsundertheASXListing
Rules.
a) Basisofpreparation
This general purpose condensed financial report for the halfyear ended 31 December 2008 has
been prepared in accordance with AASB 134 Interim Financial Reporting and the Corporations Act
2001.
ThehalfyearfinancialreportispreparedinAustraliandollarsandonahistoricalcostbasis,except
foravailableforsaleinvestments,whichhavebeenmeasuredatfairvalue.
For the purposes of preparing the halfyear financial report, the halfyear has been treated as a
discretereportingperiod.
b) Significantaccountingpolicies
Apart from the adoption of new accounting policies noted in note 2(d) below, the accounting
policies adopted are consistent with those disclosed in the annual financial report for the period
ended30June2008whichareinaccordancewithaccountingstandardsinplaceatthatdate.The
adoption of new and amending standards and interpretations mandatory for annual periods
beginning on or after 1 July 2008 does not have a significant impact on the financial performance
andpositionoftheGroup.
c) Basisofconsolidation
The halfyear consolidated financial statements comprise the financial statements of Integrated
LegalHoldingsLimitedanditssubsidiariesasat31December2008.
Subsidiariesareallthoseentities(includingspecialpurposeentities)overwhichtheGrouphasthe
power to govern the financial and operating policies so as to obtain benefits from their activities.
Theexistenceandeffectofpotentialvotingrightsthatarecurrentlyexercisableorconvertibleare
consideredwhenassessingwhetheragroupcontrolsanotherentity.
31DECEMBER2008
ACN120394194
d) Sharebasedpaymenttransactions
i) Equitysettledtransactions
TheGroupprovidesbenefitstoitsemployees(includingkeymanagementpersonnel)intheformof
sharebased payments, whereby employees render services in exchange for shares or rights over
shares(equitysettledtransactions).
Therearecurrentlytwoplansinplacetoprovidethesebenefits:
TaxExemptEmployeeSharePlan(TEESP),whichprovidesbenefitstoalleligibleemployees;
and
Deferred Employee Share Plan (DESP), which provides benefits to key employees and
directorsoftheGroup.
The cost of these equitysettled transactions with employees is measured by reference to the fair
valueoftheequityinstrumentsatthedateatwhichtheyaregranted.Thefairvalueisdetermined
byreferencetothemarketpriceofthesharesonthedateofgrant.
In valuing equitysettled transactions, no account is taken of any vesting conditions, other than
conditionslinkedtothepriceofthesharesofIntegratedLegalHoldingsLimited(marketconditions)
ifapplicable.
The cost of equitysettled transactions is recognised, together with a corresponding increase in

equity,overtheperiodinwhichtheperformanceand/orserviceconditionsarefulfilled(thevesting
period), ending on the date on which the relevant employees become fully entitled to the award
(thevestingdate).
Ateachsubsequentreportingdateuntilvesting,thecumulativechargetotheincomestatementis
theproductof:
i.
Thegrantdatefairvalueoftheaward;
ii.
Thecurrentbestestimateofthenumberofawardsthatwillvest,takingintoaccountsuch
factorsasthelikelihoodofemployeeturnoverduringthevestingperiodandthelikelihood
ofnonmarketperformanceconditionsbeingmet;and
iii.
Theexpiredportionofthevestingperiod.
The charge to the income statement for the period is the cumulative amount as calculated above
lesstheamountsalreadychargedinpreviousperiods.Thereisacorrespondingentrytoequity.
EquitysettledawardsgrantedbyIntegratedLegalHoldingsLimitedtoemployeesofsubsidiariesare
recognised in the parents separate financial statements as an additional investment in the
subsidiarywithacorrespondingcredittoequity.Asaresult,theexpenserecognisedbyIntegrated
LegalHoldingsLimited inrelationtoequitysettledawardsonlyrepresentstheexpenseassociated
withgrantstoemployeesoftheparent.TheexpenserecognisedbytheGroupisthetotalexpense
associatedwithallsuchawards.
Until an award has vested, any amounts recorded are contingent and will be adjusted if more or
fewer awards vest than were originally anticipated to do so. Any award subject to a market
10
31DECEMBER2008
ACN120394194
condition is considered to vest irrespective of whether or not that market condition is fulfilled,
providedthatallotherconditionsaresatisfied.
Ifthetermsofanequitysettledawardaremodified,asaminimumanexpenseisrecognisedasif
the terms had not been modified. An additional expense is recognised for any modification that
increasesthetotalfairvalueofthesharebasedpaymentarrangement,orisotherwisebeneficialto
theemployee,asmeasuredatthedateofmodification.
Ifanequitysettledawardiscancelled,itistreatedasifithadvestedonthedateofcancellation,and
anyexpensenotyetrecognisedfortheawardisrecognisedimmediately.However,ifanewaward
issubstitutedforthecancelledawardanddesignatedasareplacementawardonthedatethatitis
granted, the cancelled and new award are treated as if they were a modification of the original
award,asdescribedinthepreviousparagraph.
3) SEGMENTINFORMATION
TheGroupsprimarysegmentreportingformatisbusinesssegmentsastheGroupsrisksandreturns
areaffectedpredominantlybydifferencesinlegalproductsandservicesperformed.
Theoperatingbusinessesareorganisedandmanagedseparatelyaccordingtothenatureofthelegal
productsandservicesprovided,witheachsegmentrepresentingastrategicbusinessunitthatoffers
differentlegalproductsandservesdifferentmarkets.
TheLegalServicesdivisionisanoperatoroflegalpracticesthroughoutAustralia.
TheInformationTechnologydivisionprovidesaninternetportaldesignedtoprovideeasyaccesstoa
rangeoflegalandotherdocumentstothelegalprofessionandpublicalikeandinformationabout
variousareasoflaw.
11
31DECEMBER2008
ACN120394194
Businesssegments
Thefollowingtablepresentsrevenueandprofitinformationforbusinesssegmentsforthehalfyears
ended31December2008and31December2007.
Legal
Information
Services
Technology
Total
$
$
$
Revenue
Professionalfees
6,827,259
376,044
7,203,303
Otherrevenue
247,597
3,108
250,705
Intersegmentrevenue
7,074,856
379,152
7,454,008
Unallocatedrevenue
139,128
Totalconsolidatedrevenue
7,593,136
Result
Segmentresult
1,715,780
104,177
1,819,957
Unallocatedexpenses
(457,006)
Profitbeforetaxandfinancecosts
1,362,951
Financecosts
(67,979)
1,294,972
Incometaxexpense
(398,269)
Netprofitafterincometax
896,703
Information
Legal
Technology
Total
Services
$
$
$
Revenue
Professionalfees
3,965,344
304,595
4,269,939
Otherrevenue
2,367

2,367
Intersegmentrevenue
3,967,711
304,595
4,272,306
Unallocatedrevenue
237,830
Totalconsolidatedrevenue
4,510,136
Result
Segmentresult
1,398,767
142,563
1,541,330
Unallocatedexpenses
(135,222)
Profitbeforetaxandfinancecosts
1,406,108
Financecosts
(31,592)
1,374,516
Incometaxexpense
(479,104)
Netprofitafterincometax
895,412
12
31DECEMBER2008
ACN120394194
4) OTHERREVENUE
Compensationreceivable
Rentalrevenue
Sundryincome
Dividendsreceived
5) CASHANDCASHEQUIVALENTS
Forthepurposesofthehalfyearcashflowstatement,cashand
cashequivalentsarecomprisedofthefollowing:
Cashatbankandinhand
Shorttermdeposits
6) PREPAYMENTS
CURRENT
UnsecuredLoanGFowler(1)
Otherprepayments
NONCURRENT
UnsecuredLoanGFowler(1)
Consolidated
Halfyear
ended
31Dec2008
$
139,000
108,597
3,108
60
250,765
Consolidated
At
31Dec2008
$
2,248,034

2,248,034
Consolidated
At
31Dec2008
$
Consolidated
Halfyear
ended
31Dec2007
$
818
1,549
2,367
Consolidated
At
30Jun2008
$
941,045
4,685,721
5,626,766
Consolidated
At
30Jun2008
$
75,712
265,390
341,102
258,893
258,893
100,822
100,822
13
31DECEMBER2008
ACN120394194
(1)
Underthetermsofhisemploymentcontract,MrFowler(ManagingDirector)wasprovided
withaninterestfreeloanof$189,036pertainingtothetaxliabilityofsharesintheCompany
issuedonhisappointment.Thetermsoftheloanareasfollows:
theloanwillbeforgivenifMrFowlerremainsemployedbytheCompanyforatleast3
yearsfromthedateofcommencementofemployment;
50%oftheloanwillbewaivedifMrFowlerterminateshisemploymentwithin23years;
and
0%oftheloanwillbewaivedifMrFowlerterminateshisemploymentwithin2years.
TheCompanywillmeetanyFBTobligationsarisingfromthistransaction.
This loan has been assessed as prepaid employee benefits in accordance with AASB 119
Employee Benefits. The amortisation of the balance has been recognised in the Income
Statementinthelineitemsalariesandemployeebenefitsexpenses.
7) GOODWILL
Openingbalance
Additions(note12)
Impairment
Closingbalance
Consolidated
At
31Dec2008
$
6,330,233
2,516,110
8,846,343
Consolidated
At
30Jun2008
$
Consolidated
At
31Dec2007
$
6,546,059
(215,826)
6,330,233
6,546,059
(215,826)
6,330,233
a) DescriptionoftheGroupsgoodwill
After initial recognition, goodwill acquired in a business combination is measured at cost less any
accumulatedimpairmentlosses.Goodwillisnotamortisedbutissubjecttoimpairmenttestingon
anannualbasisorwheneverthereisanindicationofimpairment.
8) INTANGIBLEASSETS
Consolidated
Consolidated
Consolidated
Openingbalance
Additions
AmortisationExpense
Closingbalance
At
31Dec2008
$
At
30Jun2008
$
At
31Dec2007
$
136,620
(17,820)

163,254
(26,634)
163,254
(8,814)
118,800
136,620
154,440
a) DescriptionoftheGroupsotherintangibleassets
Otherintangiblesrepresentthevalueofleasedpremisesacquiredupontheacquisitionofthelegal
practiceofPeterMarkson19September2007andiscarriedatcostlessaccumulatedamortisation.
Thisintangibleassethasbeenassessedashavingafinitelifeandisamortisedusingthestraightline
methodovertheremainingtermofthelease.Theamortistionhasbeenrecognisedintheincome
statementinthelineitemdepreciationandamortisationexpenses.
14
31DECEMBER2008
ACN120394194
9) OTHERNONCURRENTLIABILITIES
Deferredconsiderationpayable(1)
Leaseincentiveobligation(2)
(1)
(2)
Consolidated
At
31Dec2008
$
79,526
112,105
191,631
Consolidated
At
30Jun2008
$
DeferredconsiderationpayableontheacquisitionofTheArgylePartnershipLawyers(refer
note12)
Operating lease incentives are recognised as a liability when received and subsequently
reducedbyallocatingleasepaymentsbetweenrentalexpenseandreductionoftheliability
toensurerentalexpenseisrecognisedonastraightlinebasisovertheleaseterm.Nolease
paymentsweremadeforthehalfyearended31December2008.
10) ISSUEDCAPITAL
a) Ordinaryshares
Consolidated
Consolidated
Consolidated
Consolidated
31Dec2008
30Jun2008
31Dec2008
30Jun2008
Shares
Shares
$
$
Fullypaidshares
67,681,177
63,538,320
30,264,538
29,729,975
Partlypaidshares(1)
398,334
7,518
68,079,511
63,538,320
30,272,056
29,729,975
(1)
DeferredEmployeeSharePlanInformationrelatingtotheemployeeshareplan,including
detailsofsharesissuedundertheschemeissetoutinnote13.
b) Movementsinordinarysharecapital
Consolidated
Shares
$
Openingbalanceat1July2007
34,736,704
17,368,352
Issueofsharestosubscribersofinitialpublicofferingon
17August2007at50centspershare
24,833,320
12,416,660
IssueofsharestoshareholdersofLawCentralCoPtyLtd
atadeemedvalueof50centspershareaspartofthe
considerationfortheacquisitionofthecompany
1,258,096
629,048
Costsassociatedwiththecapitalraising
Incometaxbenefitonitemstakendirectlytoequity
capitalraisingcosts
(1,514,575)

60,828,120
423,960
29,323,445
15
31DECEMBER2008
ACN120394194
Consolidated
Openingbalanceasat1July2008
Issueofsharesat14centspershareon4November2008
tothevendorsofTheArgylePartnershipLawyers
IssueofsharesundertheDeferredEmployeeSharePlan
(refernote13)
Shares
63,538,320
29,729,975
4,142,857
580,000
398,334
68,079,511
7,518
30,317,493
11) CONTINGENTLIABILITIESANDCONTINGENTASSETS
Therearenocontingentliabilitiesorassetsasat31December2008.
12) BUSINESSCOMBINATIONS
AcquisitionofTheArgylePartnershipLawyers(provisionalcalculation)
On4November2008,IntegratedLegalHoldingsLimited,throughitswhollyownedsubsidiary,Argyle
LawyersPtyLtd,acquiredthelegalpracticeofTheArgylePartnershipLawyers.Thetransactionis
effective from 1 November 2008. Since acquisition, the business commenced trading under the
name,ArgyleLawyers.
Theconsiderationfortheacquisitionwasacombinationofcashplus4,142,857sharesissuedat14
cents per share (based on the quoted price of shares of Integrated Legal Holdings Limited at
completiondate)andissubjecttosignificantemploymentrestraintsandconditions.Partofthecash
component will be deferred until the end of the 2010 financial year and is subject to financial
performanceinthatyear.Thecashcomponentofthepurchaseconsiderationhasbeenfundedfrom
surpluscashreserves.
Accountingforthebusinessacquisitionremainsprovisionallydeterminedbecauseallcircumstances
andfactorsaffectingfairvaluesoftheidentifiablenetassetsacquiredhaveyettobefinalisedatthe
endoftheperiod.
16
31DECEMBER2008
ACN120394194
Thefollowingconstitutestheprovisionalcalculationoftheconsiderationgivenandthefairvalueof
netassetsacquired:
Consideration
Cash
Deferredcashconsideration
Directcostsrelatingtotheacquisition
Totalcashconsideration
Sharesissuedatfairvalue
Totalacquisitioncost
Netassetsacquired
Assets
Plantandequipment
Prepayments
Securitybond
Netdeferredtaxasset
Totalassetsacquired
Liabilities
Provisionforemployeeentitlements
Totalliabilitiesacquired
Netassetsacquired
Goodwillonacquisition
Fair
Value
$
454,741
107,350
2,720
63,993
628,804
216,836
131,000
347,836
280,968
2,516,110
2,050,000
79,526
87,552
2,217,078
580,000
2,797,078
Carrying
Amount
$
454,741
107,350
2,720
564,811
216,836
131,000
347,836
216,975
Thefactorscontributingtogoodwillrecognisedrelatetothesynergiesexistingwithintheacquired
businessanditscombinedprofessionalworkforce.
Fromthedateofacquisition,ArgyleLawyershascontributed$19,701tothenetprofitaftertaxof
theGroup.
AsthefinancialinformationofArgyleLawyerspriortoacquisitionwasnotpreparedinaccordance
withAustralianAccountingStandardsandsignificantpostacquisitionrestructuringhasoccurred,itis
impracticable for the Group to disclose the total revenue and profit for the combined entity as
thoughtheacquisitionhadtakenplaceatthebeginningoftheperiod.
$
Thecashoutflowonacquisitionisasfollows:
Netcashacquiredwiththebusiness

Cashpaid
2,137,552
Netconsolidatedcashoutflow
2,137,552
17
31DECEMBER2008
ACN120394194
13) SHAREBASEDPAYMENTS
Recognisedsharebasedpaymentexpenses
Theexpenserecognisedforemployeeservicesreceivedduringtheyearisshowninthetablebelow:
Consolidated
Consolidated
31Dec2008
31Dec2007
$
$
Expensearisingfromequitysettledsharebasedtransactions
7,518
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.
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.
18
31DECEMBER2008
ACN120394194
SharesmayeitherbeacquiredonmarketbytheGrouporissuedbytheParent.Duringthehalfyear
ended31December2008,398,334shareswereissuedbytheParentwiththecostbeingexpensed
overavestingperiodofthreeyears.Thefairvalueofthesharesissetatthemarketpriceofthe
sharesonthedateofgrant.Theimpactontheprofitandlossforthehalfyearended31December
2008is$7,518(2008:nil).
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.
SummaryofsharesgrantedunderTEESPandDESParrangements
NosharesweregrantedundertheTEESPduringthehalfyearended31December.
The following table illustrates the number of and movements in shares granted during the period
undertheDESP:
Consolidated
Consolidated
31Dec2008
30Jun2008
No.
No.
Openingbalanceat1July2008

Grantedduringtheperiod
398,334
Closingbalanceasat31December2008
398,334
Weightedaverageremainingvestingperiod
Theweightedaverageremainingvestingperiodasat31December2008forthesharesissuedduring
theperiodis2.63years(30June2008:nil).
Weightedaveragefairvalue
Theweightedaveragefairvalueofsharesgrantedduringtheperiodwas16cents(30June2008:nil).
19
31DECEMBER2008
ACN120394194
DirectorsDeclaration
InaccordancewitharesolutionoftheDirectorsofIntegratedLegalHoldingsLimited,Istatethat:
Intheopinionofthedirectors:
a. Thefinancialstatementsandnotestothefinancialstatementsoftheconsolidatedentity
areinaccordancewiththeCorporationsAct2001,including:
i. givingatrueandfairviewoftheconsolidatedentitysfinancialpositionasat31
December2008andtheperformanceforthehalfyearendedonthatdate;
ii. complying with Australian Accounting Standard AASB 134 Interim Financial
ReportingandtheCorporationsRegulations2001;and
b. Therearereasonablegroundstobelievethatthecompanywillbeabletopayitsdebts
asandwhentheybecomedueandpayable.
ThisdeclarationismadeinaccordancewitharesolutionoftheDirectors.
OnbehalfoftheBoard,
GFowler
Director
Sydney,27February2009
20
Auditors 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 2008, 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
G H Meyerowitz
Partner
Perth
27 February 2009
Liability limited by a scheme approved

under Professional Standards Legislation
GHM:NR:ILH:031
To the members of Integrated Legal Holdings Limited
Report on the Half-Year Financial Report

We have reviewed the accompanying half-year financial report of Integrated Legal Holdings Limited, which
comprises the balance sheet as at 31 December 2008, and the income statement, statement of changes in
equity and cash flow statement for the half-year ended on that date, other selected explanatory notes 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 Financial Report

The directors of the company are responsible for the preparation and fair presentation of the half-year
financial report in accordance with Australian Accounting Standards (including the Australian Accounting
Interpretations) and the Corporations Act 2001. This responsibility includes establishing and maintaining
internal controls relevant to the preparation and fair presentation of the half-year financial report that is
free from material misstatement, whether due to fraud or error; selecting and applying appropriate
accounting policies; and making accounting estimates that are reasonable in the circumstances.
Auditors Responsibility
Our responsibility is to express a conclusion on the half-year financial report based on our review. We
conducted our review in accordance with Auditing Standard on Review Engagements ASRE 2410 Review of
Interim and other Financial Reports 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 2008 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 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, a
copy of which is included in the financial report.
Liability limited by a scheme approved

under Professional Standards Legislation
GHM:NR:ILH:030
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 financial report of Integrated Legal Holdings Limited is not in accordance with the
Corporations Act 2001, including:
i
giving a true and fair view of the consolidated entitys financial position as at 31 December 2008
and of its performance for the half-year ended on that date; and
ii
complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations
Regulations 2001.
Ernst & Young
G H Meyerowitz
Partner
Perth
27 February 2009
GHM:NR:ILH:030

044.ASX IAW Feb 27 2009 11.45 Half Year Report and Accounts

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044.ASX IAW Feb 27 2009 11.45 Half Year Report and Accounts

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INTEGRATEDLEGALHOLDINGSLIMITED

The cost of equitysettled transactions is recognised, together with a corresponding increase in

Auditors Independence Declaration to the Directors of Integrated Legal

Ernst & Young

Liability limited by a scheme approved

To the members of Integrated Legal Holdings Limited

Report on the Half-Year Financial Report

Directors Responsibility for the Half-Year Financial Report

Liability limited by a scheme approved

Ernst & Young

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