2013_02_19 - Amended Half Yearly Report and Accounts

8/12/2019 2013_02_19 - Amended Half Yearly Report and Accounts

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Energy Action Limited ABN 90 137 363 636

FINANCIAL REPORT FOR THE HALF YEAR ENDED 31 DECEMBER 2012

APPENDIX 4D HALF YEAR REPORT

HALF YEAR ENDED 31 DECEMBER 2012

Energy Action Limited (ASX: EAX) ACN 137 363 636

1. Results for announcement to the market

% change 6 months to 31Dec 2012

6 months to 31Dec 2011

Revenue from ordinary activities Increase 20% to $10,346,049 $8,588,731

Profit from after tax attributable to members Increase 3% to $1,798,825^ $1,744,517

^ Includes M&A acquisition costs of $491,303

Basic earnings per share (statutory) Decrease 7% to 7.15c 7.69c

Diluted earnings per share (statutory) Decrease 7% to 7.07c 7.63c

2. Dividends

Cents pershare Franked amountcents per share Payment date Record date

2013 interim dividend 3.55 3.55 14 March 2013 28 February 2013

2012 final dividend 3.72 3.72 14 September 2012 31 August 2012

3. Dividend re-investment plan

The Distribution Re-investment Plan (DRP) is currently not activated and is not available for the 31December 2012 dividend.


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4. Net tangible assets

31 December 2012 31 December 2011

Net tangib le assets per share $0.22 $0.37

5. Status of audit

An unqualified, signed Review Opinion is included within the attached Financial Report

Al l other in fo rmation requi red to be disc losed by Energy Action Limited in the Appendix 4D iseither not applicable or has been included in the attached Financial Report .

Please also refer to the ASX results announcement and results presentation.


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ENERGY ACTION LIMITEDABN 90 137 363 636



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Financial Reportfor the Half Year Ended 31 December 2012

Contents

Corporate information ............................................................................................................................. 5

Directors Report ...................................................................................................................................... 6

Review and results of operations ........................................................................................................ 6

Events after the Reporting Period ....................................................................................................... 8

Other than the above there are no other matters or circumstances.................................................... 8

Auditors Independence Declaration ....................................................................................................... 9

Financial Statements ............................................................................................................................. 10

Consolidated Statement of Comprehensive Income ......................................................................... 10

Consolidated Statement of Financial Position ................................................................................... 11

Consolidated Statement of Changes in Equity .................................................................................. 12

Consolidated Statement of Cash Flow .............................................................................................. 13

NOTE 1: CORPORATE INFORMATION .......................................................................................... 14

NOTE 2: BASIS OF PREPARATION AND CHANGES IN ACCOUNTING POLICIES ..................... 14

NOTE 3: BUSINESS COMBINATIONS ............................................................................................ 15

NOTE 4: SEGMENT INFORMATION ............................................................................................... 17

NOTE 5: REVENUE AND OTHER INCOME .................................................................................... 18

NOTE 6: INTANGIBLE ASSETS ....................................................................................................... 18

NOTE 7: TRADE AND OTHER PAYABLES ..................................................................................... 18

NOTE 8: EARNINGS PER SHARE ................................................................................................... 19

NOTE 9: DIVIDENDS ........................................................................................................................ 19

NOTE 10: ISSUED CAPITAL AND RESERVES ............................................................................... 20

NOTE 11: EVENTS AFTER THE REPORTING PERIOD ................................................................. 21

Directors Declaration ............................................................................................................................. 22

Independent Review Opinion ................................................................................................................ 23


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Corporate informationACN: 137 363 636

Directors

Dr. Ronald Watts Non Executive Chairman

Paul Meehan Non Executive

Stephen Twaddell Non Executive

Valerie Duncan Managing Director

Edward Hanna Executive Director

Murray Bleach Non Executive (appointed 3 July 2012)

Company Secretaries

Nathan Francis

Valerie Duncan

Registered offi ce and principal place of business

Level 5, 56 Station Street

Parramatta, NSW 2150

Share register

Link Market Services Limited

Level 12

680 George Street

Sydney NSW 2000

Energy Action Limited shares (EAX) are listed on the Australian Securities Exchange (ASX)

Solicitors

Greenwich Legal

Level 11, 50 Margaret Street

Sydney NSW 2000

Bankers

Commonwealth Bank of Australia

Level 3, 101 George Street

Parramatta NSW 2150

Audi to rs

Ernst & Young

680 George Street, Sydney, NSW 2000


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Directors ReportYour directors present their report, together with the financial statements for Energy Action Limited(the Company) and its consolidated entities (the Group), for the half-year ended 31 December2012.

Directors

The names of the Companys directors in office during the half-year and until the date of this reportare as follows. Directors were in office for this entire period unless otherwise stated.

Dr. Ronald Watts - Non Executive Chairman

Valerie Duncan - Managing Director

Edward Hanna - Executive Director

Paul Meehan - Non Executive Director

Stephen Twaddell - Non Executive Director

Murray Bleach Independent Non Executive Director appointed 3 July 2012

Principal Activities

Energy Actions principal activities are providing integrated energy management services to a diversebase of commercial and industrial customers. Its core services are:

Reverse auctions for electricity: specialised electricity procurement via online reverseauctions with gas conducted via email tender;

Energy monitoring and assessment and contract management; and Energy efficiency and sustainability.

Initially founded in 2000 Energy Action has grown significantly and since 2005 the company has

procured more than $4 billion worth of electricity on behalf of its clients.

The company listed on the Australian Securities Exchange on 13 October 2011.

Dividends

Final dividends recommended:Ordinary shares

Cents per share $

Interim 2013 dividend

to be paid 14 March 20133.55 898,396

Interim 2012 dividend paid 13March 2012

3.48 872,262

Review and results of operations

Financial overview

The Group generated statutory net profit after tax of $1.8 million for the half year ending 31 December2012 compared to $1.7 million for the half year ended 31 December 2011. The statutory result wasimpacted by $0.5 million of acquisition costs (prior period: nil). Operating profit after tax (beforeacquisition costs) was $2.3 million compared to $2.1 million for the previous period (before IPOcosts), representing a 9% increase.


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Revenue and other income increased by $1.7 million (or 20%), from $8.6 million to $10.3 million,mainly as a result of higher Activ8 revenue, which increased by $0.8 million, and a $0.8 millionrevenue contribution from Ward Consulting Services which was acquired on 1 August 2012.

Whilst AEX revenue was $0.2 million higher than the previous period it was adversely impacted byshorter electricity contract periods being entered into by Energy Actions corporate customers. Thecontract shortening is due to the fact that energy retailers are generally not pricing contracts beyond30 June 2015, as a result of the uncertainty surrounding the carbon tax price beyond that point.

Energy Action is working closely with the energy retailers to implement a solution to create liquidity inelectricity markets post 30 June 2015.

On 1 August 2012, Energy Action Limited acquired 100% of the voting shares of Jasper Australia PtyLimited, an unlisted company based in Sydney, New South Wales. Trading as Ward ConsultingServices it is a long established, highly successful and profitable business, with a focus onsustainability and efficiency reporting. It is a highly complementary addition to Energy Action. Pleaserefer to Note 3 of the financial statements for further detail.

Ward Consulting Services made a strong contribution of $0.8 million to the Groups first half revenue.

A reconciliation of the Groups statutory to operating profit is shown in the table below:

$000s 31 Dec 2012 31 Dec 2011 % variance

Statutory net profit after tax 1,799 1,745 3%

Add back: One off listing costs^ - 364

Add back: Acquisition costs* 491

Operating prof it after tax 2,290 2,109 9%

^ IPO costs, net of tax.

* Costs relating to the acquisit ion of Ward Consulting Services.

The adjusted operating profit after tax amount has not been audited, the amount of the add backitems have been extracted from the accounts.

Net assets increased from $10.4 million at 30 June 2012 to $11.6 million at 31 December 2012 mainlyas a result of profit generated offset by the final FY12 dividend paid in September 2012. The Grouphad $6.2 million of cash at bank at 31 December 2012 and no bank debt.

The Group has a very solid platform with which to execute on its strategy of undertaking mergers andacquisitions that meet strategic and financial hurdles.

Strong operating cash flow of $2.4 million was generated during the period, compared to $2.3 millionin the previous period. Operating cash flow included $0.5 million of acquisition costs incurred inrelation to purchase of Ward Consulting Services.

Earnings per share were 7.15 cents for the period compared to 7.69 cents in the previous period. Thecurrent period was impacted by an 11% increase in the weighted average number of shares on issue.Operating earnings per share were 9.10 cents compared to 9.30 cents in the prior period.

In line with the Groups policy of paying 50% of net profit after tax as a dividend, an interim fullyfranked dividend of 3.55 cents per share will be paid on 14 March 2013.


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Revenue and profit is expected to be weighted to the second half of FY13 as a result of a higherforward contract book (up 13% from 30 June 2012 to $74 million at 31 December 2012), a full 6months contribution from Ward Consulting Services, and strong momentum from Activ8+.

Operating overview

Energy Actions solid half-year results were driven by a continuing trend among Australian businessesto outsource their energy procurement and management functions. The positive results were alsoachieved in a climate of uncertainty around the permanency of the Federal Governments carbon taxlegislation.

The company continued to invest in the Australian Energy Exchange, which experienced steadygrowth in traffic, with 1,426 auction scenarios run on the Exchange over the past year (compared to1,223 for the previous corresponding period).

Energy Action has also expanded its geographical footprint through the establishment during theperiod of a sales office in Western Australia - a key growth market for the Group.

Future contracted revenue increased 13% from $65 million at 30 June 2012 to $74 million at 31December 2012. This significant future revenue stream underpins the Groups growth and providesannuity style income.

Energy Action currently has more than 9,000 sites under active or future energy contracts, havingprocured over $380 million in energy contracts in the first half of FY13.

The companys Activ8 suite of services also performed strongly, with over 7,500 sites now underactive or future contracts.

Energy Action launched Activ8+ during 2012, which provides a range of energy management,efficiency and sustainability services. The complexities of the energy market, and greater awarenessof increasing energy costs, have also meant more businesses are looking to reduce their energyexpenses. Issues around sustainability and the carbon tax have led to more inquiry and take up ofEnergy Actions broader energy management and sustainability services, which present opportunities

for new revenue.

The Group has undertaken a significant review of its sale team structure, including role definition andthe commission framework.

Events after the Reporting Period

On 18 February 2013, the directors of Energy Action Limited declared an interim dividend on ordinaryshares in respect of the 6 months to 31 December 2012. The total amount of the dividend is $898,396which represents a fully franked dividend of 3.55 cents per share. The dividend has not been providedfor in the 31 December 2012 financial statements.

Other than the above there are no other matters or circumstances.


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Liability limited by a scheme approved

under Professional Standards Legislation

Auditors Independence Declaration to the Directors of Energy ActionLimited

In relation to our review of the financial report of Energy Action Limited for the half-year ended 31 December 2012,

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

Schalk Barnard

Partner

Sydney

18 February 2013


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Financial Statements

Consolidated Statement of Comprehensive Income

For the half year ended 31 December 2012

Note Consolidated Group

2012

$

2011

$

Continuing operations

Revenue 10,217,343 8,529,232

Other income 5 128,706 59,499

10,346,049 8,588,731

Employee benefits expense 4,948,509 3,998,387

Depreciation and amortisation 306,039 256,335

Cost of goods and rebates 421,053 429,491

Listing costs - 520,087

Acquisition costs 491,303 -

Rental expense 276,442 228,934

Travel expenses 111,202 88,225

Administration expenses 981,055 696,068

Profit before income tax 2,810,446 2,371,204

Income tax expense 1,011,621 626,687

Profit for the year attributable to members of the parententity 1,798,825 1,744,517

Other comprehensive income:

Other comprehensive income for the year, net of tax - -

Total comprehensive income for the year attributable tomembers of the parent entity 1,798,825 1,744,517

Earnings per share: Cents Cents

Basic earnings per share for the year attributable to ordinaryequity holders of the parent 8 7.15 7.69

Diluted earnings per share for the year attributable to ordinaryequity holders of the parent 8 7.07 7.63

The accompanying notes form part of these financial statements


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Consolidated Statement of Changes in Equity


Consolidated Group Note Issued Capital

Ordinary

Share Option

Reserve

Retained

Earnings

Total

$ $ $ $Balance at 1 July 2011 449,263 - 4,110,537 4,559,800

Total comprehensive income attributable to

members of parent entity - - 1,744,517 1,744,517

Net proceeds on increase in capital 3,564,908 - - 3,564,908

Share based payments 10b - 35,000 - 35,000

Dividends paid or provided for 9 - - (469,672) (469,672)

Balance at 31 December 2011 4,014,171 35,000 5,385,382 9,434,553

Balance at 1 July 2012 3,979,171 35,000 6,379,596 10,393,767

Total comprehensive income attributable to

members of parent entity - - 1,798,825 1,798,825

Share capital issued in the year 10b 75,500 - - 75,500

Conversion of Options 10b 275,000 (35,000) - 240,000

Dividends paid or provided for 9 - - (933,977) (933,977)

Balance at 31 December 2012 4,329,671 - 7,244,444 11,574,115



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Consolidated Statement of Cash Flow


Note Consolidated Group

2012$

2011$

CASH FLOWS FROM OPERATING ACTIVITIES

Receipts from customers (inclusive of GST) 10,875,356 9,180,621

Payments to suppliers and employees (inclusive of GST) (7,345,556) (6,150,730)

Acquisition costs (491,303) -

Interest received 101,706 59,499

Income tax paid (723,465) (792,279)

Net cash provided by operating activities 2,416,738 2,297,111

CASH FLOWS FROM INVESTING ACTIVITIES

Purchase of property, plant and equipment (121,396) (82,619)

Acquisition of Ward Consulting Services 3 (1,940,288) -

Purchase of intangible assets (213,433) (405,011)

Net cash used in investing activities (2,275,117) (487,630)

CASH FLOWS FROM FINANCING ACTIVITIES

Dividends paid by parent entity 9 (933,977) (469,676)

Proceeds from share issue 10b 240,000 3,800,000

Equity raising costs - (779,256)

Net cash provided by/ (used in) financing activities (693,977) 2,551,068

Net (decrease)/increase in cash held (552,356) 4,360,549

Cash at beginning of financial year 6,757,604 1,566,517

Cash at end of financial year 6,205,248 5,927,066



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NOTE 3: BUSINESS COMBINATIONS

Acquisition of Jasper Australia Pty Limited (now called ACN 087 790 770 Pty Limited).

On 1 August 2012, Energy Action Limited acquired 100% of the voting shares of Jasper Australia PtyLimited, an unlisted company based in Sydney, New South Wales. Trading as Ward Consulting

Services it is a long established, highly successful and profitable business, with a focus onsustainability reporting and efficiency solutions. It is a highly complementary addition to EnergyAction.

Established in 1999, Ward Consulting Services is a highly-regarded and recognised firm that providesenergy procurement and management services to a broad range of blue-chip clients in the property,food and beverage and finance sectors. Clients include some of Australias leading property ownersand commercial property firms. The business has a number of long term contracts that generatestable and predictable revenue streams.

The acquisition has been accounted for using the acquisition method. The interim condensedconsolidated financial statements include the results of Ward Consulting Services for the five monthperiod from the acquisition date.

Consideration is comprised of the following:

Tranche 1 (paid)- $2,000,000 cash payment and $75,500 paid in Energy Action Limited ordinaryshares. The issue price was $1.7986 per share, calculated based on the 20 day VWAP for the periodending on the day before the issue date.

Tranche 2 (payable)- $500,000 cash payment and contingent consideration which will be paid in theform of Energy Action Limited ordinary shares. The issue price will be calculated based on the 20 dayVWAP for the period ending on the day before the issue date. Tranche 2 is payable 30 business daysfollowing completion of the audit of Ward Consulting Services financial statements for the year ended30 June 2013 (estimated to be during September 2013).

Tranche 1 was based on 50% of a multiple of Ward Consulting Services normalised net profit aftertax for the year ended 31 December 2011. Tranche 2 will be based on 50% of a multiple of WardConsulting Services normalised audited net profit after tax for the year ended 30 June 2013.

The deferred consideration (tranche 2) has been recognised at its fair value based on WardConsulting Services budgeted net profit after tax for the year ended 30 June 2013.

Estimated total consideration:$

Cash paid 2,000,000Equity paid 75,500Deferred 2,341,339

Total 4,416,839


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NOTE 3: BUSINESS COMBINATIONS (continued)

The provisional fair value of the identifiable assets and liabilities of Ward Consulting Services as atthe date of acquisition was:

The goodwill is attributed to the expected synergies and other benefits from combining the activities ofWard Consulting Services to the Group. The goodwill is provisional as the excess of the net assetsacquired has been allocated to goodwill until other intangible assets, if any, such as customerrelationships, have been identified.

From the date of acquisition until 31 December 2012 Ward Consulting Services contributed $767,163of revenue to the Group. If the combination had taken place at the beginning of the year, theircontribution to the revenue would have been $890,051

The transaction costs of $491,303 have been expensed in the income statement and are part of

operating cash flows in the statement of cash flows.

$Fair value recognised on acquisition

Assets

Cash 59,712

Trade receivables 137,077

Prepayments 18,330

Deferred tax 3,496

Property, plant and equipment 23,143

241,758

Liabilities

Provisions 35,668

Tax payable 44,728

80,396

Total identifiable net assets at fair value 161,362

Goodwill arising on acquisition 4,255,477

Purchase consideration 4,416,839

Analysis of cash flows on acquisition:

Net cash acquired 59,712

Cash paid (2,000,000)

Net cash outflow (1,940,288)


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NOTE 4: SEGMENT INFORMATION

Identification of reportable segments

The Group has identified one reportable operating segment, which provide electricity and gas

procurement services, energy monitoring services, and sustainability services in Australia. The typesof services provided are detailed below.

Types of Services

The businesss service range is composed of the three major services: Procurement via EnergyActions Australian Energy Exchange (AEX) and also via tender process through Ward Consulting,Energy Monitoringvia Energy Actions Activ8 service and also through Ward Consultings productoffering, and Sustainability(branded as Activ8+).

The AEX is a specialised electricity procurement service which is an online, real time, reverseauctions platform.

Activ8 is an independent energy monitoring contract management service which includes energyconsumption monitoring and costing, energy emissions monitoring, contract administration, detailedtechnical reporting, desktop energy efficiency review and additional reporting and monitoring.

Activ8+ is the energy efficiency and sustainability partnering service, which includes meteringintelligence, sub metering, carbon footprint measurement and reduction advice, Australian StandardLevel 2 compliance energy audits, project feasibility studies and supporting onsite power generationprojects such as co-generation and tri-generation units from prefeasibility through to commissioning.

Ward Consulting Services provides energy procurement and monitoring services to a broad range ofblue-chip clients in the property, food and beverage and finance sectors. Clients include some ofAustralias leading property owners and commercial property firms. The business has a number oflong term contracts that generate stable and predictable revenue streams.

Whilst the revenue is analysed by service line, overall the performance of the business is monitoredas one.

Accounting Policies and inter-segment transaction

The accounting policies used by the Group in the reporting segment internally are the same as thosecontained in note 2 to the accounts.

Revenue by customer

There is no revenue with a single external customer that contributes more than 10%.


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NOTE 4: SEGMENT INFORMATION (continued)

Year ended 31 December 12 Procurement Monitoring Sustainability Total

$ $ $ $

Sales to external customers 2,758,723 6,757,047 701,573 10,217,343

Year ended 31 December 11 Procurement Monitoring Sustainability Total

$ $ $ $

Sales to external customers 2,649,894 5,307,141 572,197 8,529,232

NOTE 5: REVENUE AND OTHER INCOME

Consolidated Group

2012

$

2011

$

Interest income 101,706 59,499

Research & development grant 27,000 -

128,706 59,499

NOTE 6: INTANGIBLE ASSETS

Consolidated Group

December 12 June 2012

$ $

Software development costs 1,704,597 1,722,396

Goodwill 3 4,255,477 -

5,960,074 1,722,396

NOTE 7: TRADE AND OTHER PAYABLES

Consolidated GroupDecember 12 June 2012

$ $

Trade and other payables 1,046,966 906,984

Deferred consideration Ward Consulting Services 3 2,341,339 -

3,388,305 906,984


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NOTE 8: EARNINGS PER SHARE

Basic earnings per share amounts are calculated by dividing net profit for the year attributable toordinary equity holders of the parent by the weighted average number of ordinary shares outstandingduring the year.

Diluted earnings per share amounts are calculated by dividing the net profit attributable to ordinaryequity holders of the parent (after adjusting for interest on the convertible preference shares) by theweighted average number of ordinary shares outstanding during the year plus the weighted averagenumber of ordinary shares that would be issued on conversion of all dilutive potential ordinary sharesinto ordinary shares.

The following reflects the income and share data used in the basic diluted earnings per sharecomputations:

2012

$

2011

$

Net profit attributable to ordinary equity holders of the parent

for basic earnings

1,798,825 1,744,517

Net Profit Attributable to ordinary equity holders of the parent

adjusted for the effect of dilutions 1,798,825 1,744,517

2012

No.

2011

No.

Weighted average number of ordinary shares for basic

earnings per share 25,158,827 22,678,060

Effect of dilution:

Issue of shares Ward Consulting Services

Share options

284,870

-

-

200,000

Weighted average number of ordinary shares adjusted for the

effect of dilution

25,443,697 22,878,060

There have been no other transactions involving ordinary shares or potential ordinary shares betweenthe reporting date and the date of completion of these financial statements.

NOTE 9: DIVIDENDS

Consolidated Group

2012

$

2011

$

Dividends paid:

Final 2012 franked dividend of 3.72 cents per share 933,977 -

Final 2011 franked dividend of 4.36 cents per share - 469,674

933,977 469,674

Proposed interim 2013 franked dividend of 3.55 cents per share

(interim 2012 franked dividend of 3.48 cents per share) 898,396 872,260


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NOTE 9: DIVIDENDS (continued)

Tax ratesThe tax rate at which paid dividends have been franked is 30% (2011: 30%). Dividends proposed will

be franked at the rate of 30% (2012: 30%).

NOTE 10: ISSUED CAPITAL AND RESERVES

Consolidated Group

2012

$

2011

$

Fully paid ordinary shares 4,329,671 3,979,171

4,329,671 3,979,171

Consolidated Group

6 mth to 31

December

2012

No.

6 mth to 30

June 2012

No.

a. Ordinary Shares (number)

At the beginning of the reporting period: 25,064,945 25,064,945

Movement in the year:

- Share issue Ward Consulting acquisition

- Conversion of option exercised by Moss Capital

41,976

200,000

-

-

At the end of the reporting period 25,306,921 25,064,945

Consolidated Group

2012

$

2011

$

b. Ordinary Shares ($)

At the beginning of the reporting period: 3,979,171 3,979,171

Movement in the year

- Share issue Ward Consulting acquisition 75,500 -

- Conversion of option exercised by Moss Capital Pty Limited

- Share based payment^

240,000

35,000

-

-

At the end of the reporting period 4,329,671 3,979,171

^ - upon exercise of the option by Moss Capital Pty Limited the $35,000 share based payment transactionreserve was transferred to ordinary equity. The share based payment transaction reserve was used to recognisethe value of an equity-settled share based payment transaction provided to Moss Capital Pty Limited as part oftheir consideration for provision of IPO consultancy services.


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Ordinary shares participate in dividends and the proceeds on winding-up of the parent entity in proportion to thenumber of shares held.

NOTE 10: ISSUED CAPITAL AND RESERVES (continued)

At the shareholders meetings each ordinary share is entitled to one vote when a poll is called, otherwise eachshareholder has one vote on a show of hands.

NOTE 11: EVENTS AFTER THE REPORTING PERIOD

On 18 February 2013, the directors of Energy Action Limited declared an interim dividend on ordinaryshares in respect of the 6 months to 31 December 2012. The total amount of the dividend is $898,396which represents a fully franked dividend of 3.55 cents per share. The dividend has not been providedfor in the 31 December 2012 financial statements.

No other matters or circumstances have arisen since the end of the half - year which significantlyaffected or could significantly affect the operations of the consolidated group, the results of thoseoperations, or the state of affairs of the consolidated group in future financial years.


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Directors DeclarationIn accordance with a resolution of the Directors of Energy Action Limited, I state that:

In the opinion of the Directors:

a. The financial statements and notes of Energy Action Limited for the half - year ended31 December 2012 are in accordance with the Corporations Act 2001, including:

I. giving a true and fair view of its financial position as at 31 December2012 and performance

II. complying with Accounting Standard AASB 134 Interim FinancialReporting and the Corporations Regulations 2001

b. There are reasonable grounds to believe that the Company will be able to pay itsdebts as and when they become due and payable

On behalf of the board

Valerie DuncanDirector

18 February 2013


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Liability limited by a scheme approved under

Professional Standards Legislation

To the members of Energy Action Limited

Report on the Half-Year Financial Report

Report on the financial report

We have reviewed the accompanying half-year financial report of Energy Action Limited, which comprises

the condensed statement of financial position as at 31 December 2012, the condensed statement of

comprehensive income, condensed statement of changes in equity and condensed statement of cash flows

for the half-yearended on that date, notes comprising a summary of significant accounting policies and

other explanatory information, and the directors declaration of the consolidated entity

The consolidatedentity comprises 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 of the half-year financial report that gives

a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001.

The directors are also responsible for such internal controls that the directors determine are necessary to

enable the preparation of the half-yearfinancial report that is free from material misstatement, whether

due to fraud or error.

Auditors Responsibility

Our responsibility is to express a conclusion on the half-year 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; and complying with

Accounting Standard AASB 134 Interim Financial Reporting and the Corporations Regulations 2001. As

the auditor of Energy Action 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-yearfinancial 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 mattersthat might be identified in an audit. Accordingly, we do not express an audit opinion.

Independence

In conducting our review we have met 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 directors report.


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Conclusion

Based on our review, which is not an audit, we have not become aware of any matter that makes us believethat the half-year financial report of Energy Action Limited is not in accordance with the Corporations Act

2001, including:

a.

giving a true and fair view of the consolidated entitys financial position as at 31 December 2012

and of its performance for the half-year ended on that date; and

b.

complying with Accounting Standard AASB 134 Interim Financial Reporting and the Corporations

Regulations 2001.

Ernst & Young

Schalk Barnard

Partner

Sydney

18 February 2013

Documents

2013_02_19 - Amended Half Yearly Report and Accounts