ASX Appendix 4E Results For Announcement To The Market: Earnings Percentage Change UP (+) /DOWN ( ) Amount $A

INTEGRATEDLEGALHOLDINGSLIMITED
ACN120394194
ASXAppendix4E
RESULTSFORANNOUNCEMENTTOTHEMARKET
Currentreportingperiod:
Previouscorrespondingperiod:
EARNINGS
Yearended30June2011
Yearended30June2010
Percentagechange
UP(+)/DOWN()
Amount
$A
Revenuefromordinaryactivities
+19%
28,475,476
Profitfromordinaryactivitiesaftertaxattributableto
members
+51%
1,286,670
+51%
1,286,670
Percentagechange
UP(+)/DOWN()
30Jun2011
/share
+19%
+19%
1.41
1.41
Netprofitfortheperiodattributabletomembers
EARNINGSPERSHARE
Basicearningspershare
Dilutedearningspershare
DIVIDENDS
Percentagechange
UP(+)/DOWN()
Amount
pershare
Franked
amountper
shareat30%
Australian
taxrate
Finaldividend(fullyentitledshares)
+20%
0.6cents
0.6cents
Previouscorrespondingperiod
0.5cents
0.5cents
Recorddatefordeterminingentitlementstothe2011finaldividend
14October2011
Paymentdatefor2011finaldividend
4November2011
TheCompanyoperatesadividendreinvestmentplan(DRP).Furtherdetailsaredisclosedinthe
finaldividenddetailssectionofthisreport.
DRPdiscountrate
5%
DateforreceiptofDRPelectionnoticesforthe2011finaldividend
21October2011
ACN120394194
ASXAppendix4E
Followingisabriefexplanationofdirectionalandpercentagechangestorevenueandprofit:
Consolidatedoperatingrevenuesof$28,475,476were19%higherthanthepreviousyearwhich
reported $23,874,988 operating revenues. Revenue from ordinary activities increased due to a
combinationoforganicgrowthandtheacquisitionofWojtowiczKellyLegalinFebruary2011.
For the year ended 30 June 2011, the consolidated entity generated a net profit after tax of
$1,286,670comparedtotheyearended30June2010of$853,494,anincreaseof51%.
Earningspersharefortheyearwere1.41centspershare,comparedto1.18centspersharefor
theyearended30June2010,anincreaseof19%.
FullYearResultsSummary
FullYear
FullYear
%
2010/11
2009/10
Growth
$m
$m
OperatingRevenue
28.48
23.87
19%
NetProfitafterTax
1.29
0.85
51%
EarningsperShare
1.41cents
1.18cents
19%
Final0.60cents
Final0.50cents
Interim0.25cents
20%
DividendperShare
Interim0.30cents
FullYear0.90cents
FullYear0.75cents
BalanceSheet
TheCompanyhasmaintainedastrongbalancesheetandiswellplacedtocontinueorganicand
acquisitiongrowth.Thefollowingpointsarehighlighted:
Cashposition(includingoverdrafts)at30June2011of$2.44m.
Bankloansof$1.95mat30June2011comparedwith$0.95mat31December2010(debtto
equityratio15%).
TheCompanysbankfacilityat30June2011hasalimitof$3.05m(drawndownto$1.95mat
30June2011).
TheCompanyachievedrobustoperatingcashinflowsfortheyearof$1.23m(2010:$1.45m).
DividendAnnouncement
TheDirectorshavedeclaredafullyfrankedfinaldividendof0.60cents.
The dividend will have a record date of 14 October 2011 and a payment date of 4 November
2011.Therewillbeadividendreinvestmentplanavailable.
Intotal,theCompanyhasdeclaredfullyfrankeddividendsof0.90centspershareforthe2010/11
financialyear,havingpaidaninterimdividendof0.30centsfullyfrankedinMay2011.
2
ACN120394194
ASXAppendix4E
TheDirectorsconsiderthatthedividendannouncementsof2011haveestablishedapatternfor
dividendsfortheCompanygoingforward,subjecttothepreviouslystateddividendpolicyofthe
Companythatdividendswillbedeclaredafterconsiderationoftheperformanceofthecompany
andfutureinvestmentopportunities.
Outlook
TheDirectorsconsiderthattheCompanyiswellplacedforthefuture,inparticularnoting:
TheCompanyhasgoodbusinesseswithstrongmarketpositionsandgrowthprospects.
The Company is successfully building a strong culture of likeminded people, with common
aspirationsforabovemarketgrowthandbusinessimprovement.
TheCompanyhasdemonstratedanabilitytoachievestrongandconsistentrevenuegrowth.
OrganicandacquisitiongrowthopportunitiesfortheGroupandformemberfirms.
TheCompanyhasastrongbalancesheetandavailablefundingforfurthergrowth.
Scopeforbusinessperformanceimprovementinallmemberfirms,providinganopportunity
fortheincreasedprofitabilityovertime.
Inparticular,anopportunityexiststoincreaseprofitabilitybyachievingincreasedscaleatbotha
Groupandmemberfirmlevel.
AtaGrouplevelthismeanssecuringmorememberfirmstosharethefixedoverheadburdenof
theCorporateoffice.
Andatamemberfirmlevel,thismeansachievingorganicandacquisitiongrowthtooptimisethe
useofexistingpremises,andtosharetheprofessionalmanagementandinfrastructurecoststhat
thesefirmsnowhaveinplace.
The Directors believe that longterm competitive advantage can be achieved by the Company
supportingmemberfirmsindevelopingscaletounderpinfuturegrowthandprofitability.
AfullercommentaryontheresultsforthereportingperiodiscontainedintheASXreleasedated
18August2011.
AUDITREPORT
Thepreliminaryfinalreportisbasedonaccountswhichareintheprocessofbeingaudited.
APPENDIX4EPRELIMINARYFINALREPORT
FORTHEYEARENDED30JUNE2011
ACN120394194
StatementofFinancialPosition
Note
ASSETS
CurrentAssets
Cashandcashequivalents
Tradeandotherreceivables
Workinprogress
Incometaxreceivable
TotalCurrentAssets
NonCurrentAssets
Plantandequipment
Goodwill
Intangibleassets
Deferredtaxassets
Prepayments
Otherassets
TotalNonCurrentAssets
TOTALASSETS
LIABILITIES
CurrentLiabilities
Tradeandotherpayables
Interestbearingloansandborrowings
Incometaxpayable
Provisions
Otherliabilities
TotalCurrentLiabilities
NonCurrentLiabilities
Tradeandotherpayables
Provisions
Deferredtaxliabilities
Otherliabilities
TotalNonCurrentLiabilities
TOTALLIABILITIES
NETASSETS
EQUITY
IssuedCapital
AccumulatedLosses
Reserves
TOTALEQUITY
6
7
8
CONSOLIDATED
30June
30June
2011
2010
$
$
2,460,760
2,151,449
7,826,873
7,538,870
2,499,220
1,353,354
12,782
12,799,635
11,043,673
1,170,294
1,181,314
12,900,557
10,470,600
29,700
65,340

101,089
14,614
29,230
3,435
2,642
14,118,600
11,850,215
26,918,235
22,893,888
3,813,598
3,317,157
2,536,259
1,573,325

177,524
986,593
687,057
255,769
279,933
7,592,219
6,034,996
37,554
143,325
306,092
137,038
689,344
1,313,353
8,905,572
18,012,663
33,397,152
(16,349,358)
964,869
18,012,663
75,107
260,913
197,350
127,608
660,978
6,695,974
16,197,914
32,160,426
(16,688,184)
725,672
16,197,914
TheaboveStatementofFinancialPositionshouldbereadinconjunctionwiththeaccompanyingnotes
ACN120394194
StatementofComprehensiveIncome
Professionalfees
Interestrevenue
Otherrevenue
Totalrevenue
Occupancyexpenses
Salariesandemployeebenefitsexpenses
Depreciationandamortisationexpenses
Advertisingandmarketingexpenses
Administrativeexpenses
Otherexpenses
Financecosts
Sharebasedpaymentsexpense
Totalexpenses
Profitbeforeincometax
Incometaxexpense
Profitafterincometax
Netprofitfortheyear
Othercomprehensiveincome
Netgains/(losses)onavailableforsalefinancialassets
Othercomprehensiveincome/(losses)fortheyear,
netoftax
Totalcomprehensiveincomefortheyear
Basicearningspershare(cents)
Dilutedearningspershare(cents)
Note
3(a)
3(b)
3(c)
3(d)
CONSOLIDATED
2011
2010
$
$
28,313,125
23,822,676
153,015
39,175
9,336
13,137
28,475,476
23,874,988
(2,338,627)
(2,114,280)
(18,579,646)
(16,149,830)
(412,841)
(343,759)
(359,123)
(222,928)
(3,335,793)
(2,889,908)
(1,351,267)
(742,175)
(143,193)
(160,597)
(41,415)
(19,243)
(26,561,905)
(22,642,720)
1,913,571
1,232,268
(626,901)
(378,774)
1,286,670
853,494
1,286,670
853,494
792
(68)
792
1,287,462
1.41
1.41
(68)
853,426
1.18
1.18
TheaboveStatementofComprehensiveIncomeshouldbereadinconjunctionwiththeaccompanyingnotes
ACN120394194
StatementofCashFlows
Cashflowsfromoperatingactivities
Receiptsfromcustomers
Interestreceived
Otherrevenue
Paymentstosuppliersandemployees
Interestandothercostsoffinancepaid
Incometaxreceived/(paid)
Netcashflowsfromoperatingactivities
Cashflowsfrominvestingactivities
Purchaseofplantandequipment
Proceedsfromthedisposalofplantandequipment
Paymentfortheacquisitionofbusinessesnetof
cashacquired
Netcashflowsusedininvestingactivities
Cashflowsfromfinancingactivities
Proceedsfromloans
Repaymentofborrowings
Dividendspaid
Proceedsfromissueofshares
Paymentsforshareissueexpenses
Netcashflowsfromfinancingactivities
Netincreaseincashheld
Cashandcashequivalentsatthebeginningofthe
financialyear
Cashandcashequivalentsattheendofthefinancial
year
Note
CONSOLIDATED
2011
2010
$
$
30,069,018
24,249,661
153,015
39,175
9,336
13,103
(28,365,293)
(22,800,109)
(81,891)
(92,984)
(552,446)
39,315
1,231,739
1,448,161
(209,596)
(807,264)

5,135
(979,148)
(1,188,744)
1,546,545
(643,929)
(441,556)

(17,389)
443,671
486,666
(802,129)
1,948,949
465,875
2,435,615
1,948,949
993,027
(1,584,315)
(131,122)
1,674,510
(115,058)
837,042
1,483,074
TheaboveStatementofCashFlowsshouldbereadinconjunctionwiththeaccompanyingnotes
ACN120394194
StatementofChangesinEquity
CONSOLIDATED
Balanceasat1July2009
Issued
Capital
$
30,504,813
Accumulated
Losses
$
Net
Unrealised
Gains/(Losses)
Reserve
$
(16,641,034)
(1,373)
13,862,406
853,494
(68)
(68)
(68)
853,426
727,113
Othercomprehensivelosses
Totalcomprehensiveincome/(loss)forthe
year
853,494
Transactionswithownersintheir
capacityasowners
Total
Equity
$
Profitfortheyear
853,494
General
Reserve
$
Transfertogeneralreserve
(727,113)
Dividendspaid
(173,531)
(173,531)
19,243
19,243
Issueofshares
1,716,910
1,716,910
Transactioncostsonissueofshares
(115,058)
(115,058)
34,518
34,518
727,113
16,197,914
Sharebasedpayments
Incometaxonitemstakendirectlytoor
transferredfromequity
Balanceasat30June2010
CONSOLIDATED
Balanceasat1July2010
32,160,426
Issued
Capital
$
32,160,426
(16,688,184)
Accumulated
Losses
$
(1,441)
Net
Unrealised
Gains/(Losses)
Reserve
$
(16,688,184)
(1,441)
Profitfortheyear
1,286,670
Othercomprehensiveincome
Totalcomprehensiveincomefortheyear
1,286,670
(238,405)
Transactionswithownersintheir
capacityasowners
Transfertogeneralreserve
Dividendspaid
Sharebasedpayments
Issueofshares
Transactioncostsonissueofshares
Incometaxonitemstakendirectlytoor
transferredfromequity
General
Reserve
$
Total
Equity
$
727,113
16,197,914
1,286,670
792
792
1,287,462
238,405
792
(709,439)
(709,439)
41,415
41,415
1,207,483
1,207,483
(17,389)
(17,389)
5,217
5,217
965,518
18,012,663
33,397,152
(16,349,358)
(649)
TheaboveStatementofChangesinEquityshouldbereadinconjunctionwiththeaccompanyingnotes
ACN120394194
NotestotheFinancialStatements
1) SUMMARYOFSIGNIFICANTACCOUNTINGPOLICIES
ThesepreliminaryconsolidatedfinancialstatementsrelatetoIntegratedLegalHoldingsLimitedand
theentitiesitcontrolledduringtheyearended30June2011.Theaccountingpoliciesadoptedare
consistentwiththosedisclosedinitsmostcurrentfinancialstatements.
2) SEGMENTINFORMATION
TheGrouphasidentifieditsoperatingsegmentsbasedontheinternalmanagementreportingthatis
used by the executive management team (the chief operating decision maker) in assessing
performanceandallocatingresources.IntegratedLegalHoldingsLimitedsoperatingsegmentshave
been identified based on how the financial and operating results of the Group are monitored and
presentedinternallytotheexecutivemanagementteam.
TheGroupsreportablesegmentsareidentifiedbymanagementbasedonthenatureofthebusiness
andthesimilaritiesofservicesprovided,methodofdeliveryandtypeofclientsastheGroupsrisks
andreturnsareaffectedpredominantlybydifferencesinlegalproductsandservicesperformed.
Theoperatingbusinessesareorganisedandmanagedseparatelyaccordingtothenatureofthelegal
productsandservicesprovided,witheachsegmentrepresentingastrategicbusinessunitthatoffers
differentlegalproductsandservesdifferentmarkets.
Thefollowingreportablesegmentshavebeenidentifiedbymanagement:
LegalServicesDivision
OperatoroflegalpracticesthroughoutAustralia.
InformationTechnologyDivision
Provides an internet portal designed to provide easy access to a range of legal and other
documents tothelegalprofessionandpublicalikeandinformationaboutvariousareasof
law.
Theaccountingpoliciesusedbythe Groupinreportingsegmentsinternallyarethesame asthose

containedinthefinancialreportfortheyearended30June2010.
ACN120394194
Businesssegments
The following tables present revenue and profit information for business segments for the years
ended30June2011and30June2010.
Information
Legal
Technology
Total
Services
$
$
$
Yearended30June2011
Revenue
Professionalfees
27,448,512
864,613
28,313,125
Interestrevenue
79,112
2
79,114
Otherrevenue:
Advertisingrevenue
1,250
1,250
Sundryrevenue
7,960
7,960
Totalsegmentrevenue
27,535,584
865,865
28,401,449
Unallocatedrevenue:
Interestreceived
73,901
Dividendsreceived
126
Totalunallocatedrevenue
74,027
Intersegmentelimination
Totalrevenueperstatementof
comprehensiveincome
28,475,476
Result
Segmentresult
3,471,878
345,444
3,817,322
Unallocateditems:
Interestrevenue
73,901
Salariesandemployeebenefits
expenses
(1,044,323)
(662,617)
Otherunallocateditems
(127,519)
Totalunallocateditems
(1,717,610)
Profitbeforetaxandfinancecosts
2,056,764
Financecosts
(143,193)
1,913,571
Incometaxexpense
(626,901)
Netprofitafterincometax
1,286,670
ACN120394194
Yearended30June2010
Revenue
Professionalfees
Interestrevenue
Otherrevenue:
Advertisingrevenue
Sundryrevenue
Totalsegmentrevenue
Unallocatedrevenue:
Interestreceived
Dividendsreceived
Totalunallocatedrevenue
Intersegmentelimination
Totalrevenueperstatementof
comprehensiveincome
Result
Segmentresult
Unallocateditems:
Interestrevenue
Salariesandemployeebenefits
expenses
Otherunallocateditems
Totalunallocateditems
Profitbeforetaxandfinancecosts
Financecosts
Incometaxexpense
Netprofitafterincometax
Legal
Services
$
22,980,838
11,890
3,699
22,996,427
Information
Technology
$
Total
$
841,838

7,372
1,975
851,185
23,822,676
11,890
7,372
5,674
23,847,612
27,285
91
27,376
23,874,988
2,427,771
290,200
2,717,971
27,285
(860,664)
(407,209)
(84,518)
(1,325,106)
1,392,865
(160,597)
1,232,268
(378,774)
853,494
10
ACN120394194
Totalassetshaveincreasedby11%sincethelastannualreport.Segmentassetsfortheyearsended
30June2011and30June2010areasfollows:
Legal
Information
Total
Services
Technology
Asat30June2011
$
$
$
Segmentassets
Segmentoperatingassets
23,247,332
2,149,281
23,247,332
Unallocatedassets:
2,218,461
Deferredtaxassets
118,855
Prepayments
11,173
Availableforsalefinancialassets
3,435
Plantandequipment
4,003
Incometaxreceivable
12,782
Totalunallocatedassets
2,368,709
Intersegmenteliminations
1,302,194
Totalassetsfromcontinuingoperations
perstatementoffinancialposition
26,918,235
Information
Legal
Technology
Total
Services
$
$
$
Asat30June2010
Segmentassets
Segmentoperatingassets
18,476,679
2,157,378
20,634,057
Unallocatedassets:
2,134,217
Deferredtaxassets
214,582
Prepayments
42,523
Availableforsalefinancialassets
2,642
Plantandequipment
3,735
Totalunallocatedassets
2,397,699
Intersegmenteliminations
(137,868)
Totalassetsfromcontinuingoperations
perstatementoffinancialposition
22,893,888
11
ACN120394194
3) REVENUEANDEXPENSES
Revenueandexpensesfromcontinuingoperations
a) Otherrevenue
Dividendsreceived
Sundryincome
b) Depreciationandamortisationexpenses
Depreciationofplantandequipment
Amortisationof:
o Equipmentunderfinancelease
o Identifiedintangibleassets
c) Otherexpenses
Authorroyaltyfees
Consultingfees
Badanddoubtfuldebts
Bankfees
Otherexpenses
d) Financecosts
Interestotherentities
Interestaccretion
Consolidated
2011
2010
$
$
126
91
9,210
13,046
9,336
13,137
371,633
305,209
5,568
35,640
412,841
2,910
35,640
343,759
84,032
119,503
930,772
202,143
14,817
1,351,267
81,773
242,591
274,365
137,687
5,759
742,175
128,718
14,475
143,193
146,458
14,139
160,597
12
ACN120394194
4) DIVIDENDSDECLARED
2011
Cents
pershare
2010
Total
$
Cents
pershare
Total
$
a) Dividendsdeclared,recognised
andpaid
Interimdividend(fullyfranked)
0.30
267,883
0.25
173,531
b) Dividendsdeclaredandnot
recognised
Finaldividend(fullyfranked)(c)
0.60
582,986
0.50
441,457
c) FinalDividendDetails
Amountpershare
0.6cents
Amountfranked
Fullyfrankedata30%taxrate
Recorddatetodetermineentitlementstothedividend
14October2011
Datethefinaldividendispayable
4November2011
d) Recogniseddividends
The2011interimdividendof$267,883waspaidon2May2011andwasfullysatisfiedbyanissueof
sharesundertheGroupsdividendreinvestmentplan(DRP)viaanunderwritingarrangement.
UndertheGroupsDRPeligibleshareholderswereofferedtheopportunitytoreinvestallorpartof
the interim dividend in additional shares in the Group. The Shares were issued at 12.5 cents per
share,beinga5%discounttotheweightedaveragemarketpriceofsharessoldontheASXduringa
period of 10 trading days (rounded to the nearest half cent), with the period commencing on the
secondtradingdayafterthedividendrecorddate,11April2011.
e) Unrecogniseddividends
A2011finaldividendof0.6centsperordinaryfullypaidshare,fullyfrankedat30%wasannounced
on 18 August 2011 and ispayable on 4 November 2011 to shareholders registered on 14 October
2011. The 2011 final dividend has not been recognised in the financial report because it was
determined,declaredandpubliclyannouncedsubsequenttoyearend.
The final dividend amount of $582,986 has been determined based on the number of eligible
ordinarysharesonissueatthedateofthisfinancialreport.Nofurthersharesareexpectedtobe
issuedwhichwillbeentitledtoparticipateinthedividend.
TheGroupsDRPwillapplytothe2011finaldividend.
13
ACN120394194
f) DividendReinvestmentPlan
The Company operates a dividend reinvestment plan (DRP) which offers eligible shareholders the
opportunitytoreinvestallorpartoftheirdividendsinadditionalsharesintheGroup.TheShares
areissuedata5%discounttotheweightedaveragemarketpriceofsharessoldontheASXduringa
period of 10 trading days (rounded to the nearest half cent), with the period commencing on the
secondtradingdayafterthedividendrecorddate.
ThelastdateforreceiptofanelectionnoticeforparticipationintheDRPwithrespecttotheabove
interimdividendis21October2011.
5) CASHANDCASHEQUIVALENTS
CONSOLIDATED
2011
2010
$
$
Cashatbankandinhand
2,460,760
2,151,449
Cashatbankearnsinterestatfloatingratesbasedondailybankdepositrates.Thecarryingamounts
ofcashandcashequivalentsapproximatesfairvalue.
CONSOLIDATED
2011
2010
$
$
Reconciliationtostatementofcashflows
Forthepurposesofthestatementofcashflows,cashandcash
equivalentscomprisethefollowingat30June:
Cashatbankandinhand
2,460,760
2,151,449
Bankoverdrafts
(25,145)
(202,500)
2,435,615
1,948,949
14
ACN120394194
6) ISSUEDCAPITAL
a) Ordinaryshares
Fullypaidshares
Partlypaidshares(1)
Forfeitedsharesheldintrust(1)
Consolidated
2011
Shares
Consolidated
2010
Shares
95,908,111
1,256,217
97,164,328
86,112,999
371,667
26,667
86,511,333
Consolidated
2011
$
Consolidated
2010
$
33,321,656
75,496

33,397,152
32,126,345
34,081

32,160,426
Shares
69,346,178
$
30,504,813
7,000,000
700,000
353,488
42,410
IssuesofsharesunderSharePlacement(Tranche2)on12May2010
4,100,000
410,000
IssuesofsharesunderSharePurchasePlanon26May2010
5,645,000
564,500
(1) DeferredEmployeeSharePlan
b) Movementsinordinarysharecapital
Openingbalanceasat1July2009
IssueofsharesunderSharePlacement(Tranche1)on8April2010
IssuesofsharesunderDividendReinvestmentPlanon9April2010
Costsassociatedwiththecapitalraising,netoftax
(80,540)
66,667
19,243
86,511,333
32,160,426
Shares
86,511,333
$
32,160,426
Issue of shares to The Argyle Partnership in final satisfaction of

deferredconsiderationpayableon22September2010
1,800,000
180,000
Issue of shares in part satisfaction of 2010 Principal profit share

entitlementon16December2010
125,000
15,000
Issue of shares to vendors of Wojtowicz Kelly Legal on 1 February

2011
5,727,000
744,600
2,143,112
267,883
IssueofsharesundertheDeferredEmployeeSharePlan
Openingbalanceasat1July2010
IssueofsharesunderDividendReinvestmentPlanon2May2011
CostsassociatedwithsharesissuedontheacquisitionofWojtowicz
KellyLegal,netoftax
IssueofsharesundertheDeferredEmployeeSharePlan
(12,172)
857,883
41,415
97,164,328
33,397,152
15
ACN120394194
7) ACCUMULATEDLOSSES
Accumulatedlosses
Balanceatbeginningofyear
Netprofitfortheyear
Dividendspaid
Transfertogeneralreserve(refernote8)
Balanceatendoftheyear
8) RESERVES
Consolidated
2011
2010
$
$
(16,354,909)
(16,688,184)
1,286,670
(709,439)
(238,405)
(16,349,358)
(16,688,184)
(16,641,034)
853,494
(173,531)
(727,113)
(16,688,184)
Consolidated
2011
2010
$
$
(649)
(1,441)
965,518
727,113
964,869
725,672
Netlossesonavailableforsalefinancialassets
Generalreserve(1)
Balanceatendoftheyear
(1)
Duetoaccumulatedlossesincurredpriortothelistingofthecompanyon17August2007,
theDirectorsresolvedtoisolateprofitsderivedfromtradingactivitiessincelistingthrough
theestablishmentofaGeneralReserve.
During the period, $238,405, representing trading profits to 30 June 2010 less dividends
paid,wastransferredtotheGeneralReservefromAccumulatedLosses.
16
ACN120394194
9) BUSINESSESCOMBINATIONS
AcquiredlegalpracticeWojtowiczKellyLegal
On1February2011theCompanyacquiredthelegalpracticeofWojtowiczKellyLegal(incorporating
CivicLegal,theSimpsonKellyGroup,GibsonTovey&Associates,AllPropertyConveyancingandJan
SimpsonSettlements)undermergerarrangementswiththeexistingmemberfirmCivicLegalPtyLtd
(formerlyTaxLawyersAustraliaPtyLtd)tradingasBrettDaviesLawyers.
ThemergedbusinesswilltradeasCivicLegal.
The consideration for the transaction is a combination of the issue of 5.7m shares and an upfront
cash payment of $924,000 (funded from surplus cash reserves). A deferred cash consideration of
$125,000waspaidinJuly2011.
Additionally, under the merger agreement, a maximum of $600,000 and minimum of nil in
contingent cash consideration may be payable in September 2013 subject to the merged business
achieving agreed profitability (Net Profit Before Tax) targets in the financial years ended 30 June
2012 and 30 June 2013. The contingent consideration will be settled in cash or shares at the
discretionoftheBoard.
TheDirectorsconsiderthatthecontingentconsiderationwillsupportandfosteraunitedprincipal
group environment for the merged firm, by incentivising teamwork in the realisation of merger
revenueandcostsynergies.
The contingent consideration has been formulated using Integrated Legal Holdings Limiteds
minimum expectations as a base (i.e. the contingent consideration is only payable on
outperformanceabovetheseminimumexpectations).
Furthermore, any contingent consideration will only be payable following the achievement of
minimumexpectedlockup(Workinprogressanddebtors)performancebythefirm.
Theacquisitionisstructuredwithsignificantemploymentconstraintsandconditions,consistentwith
theCompanysdisciplinedacquisitionmodelandstrictcriteria.
17
ACN120394194
Thefollowingconstitutestheprovisionalcalculationoftheconsiderationgivenandthefairvalueof
netassetsacquired:
Consideration
Cash
Deferredcashconsideration
Contingentcashconsideration
Totalcashconsideration
Sharesissuedasconsideration
Totalacquisitioncost
Netassetsacquired
Assets
Plantandequipment
Prepayments
Deferredtaxasset
Totalassetsacquired
Liabilities
Deferredtaxliability
Provisions
Totalliabilitiesacquired
Netliabilitiesacquired
Goodwillonacquisition
ProvisionalFair
Value
$
156,585
33,720
48,316
238,621
26,899
73,261
161,054
261,214
(22,593)
2,417,757
924,000
125,000
601,564
1,650,564
744,600
2,395,164
Carrying
Amount
$
156,585
33,720
48,316
238,621
26,899
73,261
161,054
261,214
(22,593)
Astheintegrationofthebusinessisstilloccurringtheremaybesomemovementintheprovisional
calculation.
TheacquireescontributiontothenetprofitoftheGroupcannotbedeterminedasthisbusinesshas
beenincorporatedintoBrettDaviesLawyersbusiness,anditisimpracticabletodisclosethetotal
revenue and profit for the combined entity as though the acquisition had taken place at the
beginningoftheperiod.
18
ACN120394194
10) SUBSEQUENTEVENTS
AcquisitionoflegalpracticeofPLNLawyers
On 1 August 2011 the Company acquired the legal practice of PLN Lawyers under tuckin
arrangementswiththeexistingmemberfirmArgyleLawyers.
Theconsiderationforthetransactionisacombinationoftheissueof3.04mILHsharesat11.5cents
pershareandcash,andincludesadeferredcashcomponentpayableinSeptember2012subjectto
thePLNbusinessachievingrevenueandprofitabilitytargetsfortheperiodto30June2012.
Theacquisitionisstructuredwithsignificantemploymentconstraintsandconditions,consistentwith
theCompanysdisciplinedacquisitionmodelandstrictcriteria.
Thetransactioniseffective1August2011andhasbeenfundedthroughsurpluscashreserves.
Atthedateofthisreport,initialaccountingforthebusinessacquisitionhasnotyetbeendetermined
withthefairvalueassessmentoftheidentifiedassetsandliabilitiesacquiredatacquisitionandthe
estimate of the fair value of the contingent consideration to be finalised. As a result, it is not
possibletodisclosethefairvalueoftheidentifiedassetsandliabilitiesthatwillberecognisedat1
August2011,theacquisitiondate,fairvalueofconsiderationtransferredortocalculatethevalueof
goodwill.
DeclarationofFinalDividend
TheDirectorshavedeclaredafullyfrankedfinaldividendof0.60cents.
Thedividendwillhavearecorddateof14October2011andapaymentdateof4November2011.
Therewillbeadividendreinvestmentplanavailable.
RenewalofBankFundingFacilities
After balance date the Company renegotiated bank funding facilities. As at 30 June 2011, the
followingbankfundingfacilitieswereinplace:
Drawndownas UndrawnFacility
Facility
FacilityLimit
at30/06/2011
Available
Expiry
$m
$m
$m
1
2.50
1.95
0.55
September2011
2
0.55
0.55
September2011
TOTAL
3.05
1.95
1.10
Afterbalancedate,thefacilitieswererenewedasfollows:
UndrawnFacility
Facility
FacilityLimit
Drawndown
Available
Expiry
$m
$m
$m
1
2.50
1.95
0.55
September2013
2
1.00
1.00
September2012
TOTAL
3.50
1.95
1.55
19

ASX Appendix 4E Results For Announcement To The Market: Earnings Percentage Change UP (+) /DOWN ( ) Amount $A

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ASX Appendix 4E Results For Announcement To The Market: Earnings Percentage Change UP (+) /DOWN ( ) Amount $A

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INTEGRATEDLEGALHOLDINGSLIMITED

Theaccountingpoliciesusedbythe Groupinreportingsegmentsinternallyarethesame asthose

Issue of shares to The Argyle Partnership in final satisfaction of

Issue of shares in part satisfaction of 2010 Principal profit share

Issue of shares to vendors of Wojtowicz Kelly Legal on 1 February

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