planet platinum limited for personal use only2012/07/12 · the indicative but unaudited revenue...

PLANET PLATINUM LIMITED ABN 93 101 217 252

P.O. BOX 252 ELSTERNWICK VIC 3185 AUSTRALIA Telephone +61 (0) 3 9528 4944 Facsimile +61 (0) 3 9523 5627 www.planetplatinum.com.au [email protected]

12 July 2012 ASX Market Announcement

Planet Platinum Limited

1 Consolidated Financial Reports – June 2011 and December 2011

Enclosed for release to the market is the June 2011 Annual Report together with the December 2011 Half-Year Financial Report under the cover of an Appendix 4D. The attached Reports are to be read in conjunction with the comments in this covering summary of results and events. The Reports show that for the year ended 30 June 2011 and the half-year ended 31 December 2011 the Company recorded:

Annual Half-Year June 2011 December 2011 $ $ Revenue - December Half 2,845,445 2,299,208 June Half 2,139,196 - 4,984,641 2,299,208

June 2011 December 2011 Profit/(Loss) - Pre-Tax Expense - December 636,962 344,349 - June (992,218) * - (355,256) * 344,349

June 2011 December 2011 Profit/(Loss) - Post- Tax Expense - December 447,841 241,157 - June (832,996) * - (385,155) * 241,157

The full year results for June 2011 are after a non-cash impairment charge of $1,050,000 raised for the June 2011 half-year (*) in relation to the valuation in February 2012 of the Company’s freehold property in Elsternwick. Whilst the impairment charge in relation to the Elsternwick property has been brought to account the appreciation in the value of the King Street, Melbourne, freehold property, per the Accounting Standards, has not been brought to account.

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Reference is made to Note 30 in the Notes to the Accounts in the June 2011 Annual Report which reconciles the Appendix 4E Preliminary Report after tax expense profit of $490,698 with the audited results recording a loss of ($385,155) – the variation being the above mentioned impairment charge, as adjusted for income tax expense, of $876,588.

Following on from the June 2011 full year after income tax expense loss of ($385,155) the Company has recorded an after tax expense profit for the half year ended 31 December 2011 of $241,157 (December 2010 half-year profit of $447,841) on revenue of $2,299,208 (December 2010 : $2,845,445). In September 2011 the Company released June 2011 Preliminary Report (Appendix 4E) noting that the results were subject to the completion of the June 2011 audit. The ensuing discussions with the external auditors, in particular in relation to the carrying values of the Company’s freehold properties, goodwill and loans receivable, lead to delays in the release of not only the June 2011 Financial/ Annual Report but also the December 2011 Half-Yearly Financial Report.

These matters were reviewed and discussed at length with the external auditors and included the undertaking in February 2012 of an independent valuation of the Company’s freehold properties. As a result of the discussions and valuation the only change to the June 2011 annual financial results as reported in the Preliminary Report, Appendix 4E, was the non-cash impairment charge of $1,050,000, before adjustment for income tax expense, in relation to the carrying value of the Elsternwick freehold property. A summary of the discussions undertaken about the freehold properties, goodwill and loans receivable are as follows:

(a) Property Carrying Values

The property valuation referred to above as conducted in February 2012 lead to the impairment charge over the carrying value of the Elsternwick property of $1,050,000.

(b) Goodwill

The discounted cash flow projections based on actual revenues since July 2011 up to current times on the revenue generation and expenses control have shown that there has been no impairment of the goodwill carrying value; and (c) Loans Receivable

As set out in detail in the June 2011 an December 2011 Financial Reports the non-related directors have reviewed the level of security provided to the Company by Metropolis City Promotions Pty Ltd, a company associated with director Mr J Trimble, and is satisfied that the loan is adequately secured. In addition, Mr Trimble, through Cameron Lane Pty Ltd, the Company’s largest shareholder, has agreed that dividend distributions are also to be used to reduce the loan. The loan is bearing interest at the higher rate per the loan agreement, of 9.05 per cent a year. The non-related directors have resolved that the term of the loan be extend to 30 June 2014.

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2 Current Activities

Since January 2012 the Company has continued to defend the licence disciplinary enquiry brought by the Victorian Police in relation to the operation of Showgirls Bar 20 in 2011. As announced on 7 June 2012 a Compulsory Conference before the Victoria Civil and Administrative Tribunal (VCAT) failed to achieve a resolution of the dispute as has a subsequent Directions Hearing. A VCAT Hearing, before a Judicial Member, is scheduled for 20 August 2012.

Pending the Hearing the Showgirls Bar 20 Club is continuing to operate at 46 King Street, Melbourne.

3 Current Trading

In the half-year to June 2012 the Company continued to operate at Showgirls Bar 20 with Mr N Pitliangas as Manager.

For this period turnover has been gradually improving from the low point of May 2011 following the issue of the VCAT Orders – as stayed by The Supreme Court of Victoria in July 2011.

The indicative but unaudited revenue for the June 2012 half-year is approximately of the order of $2,000,000.00 bringing the indicative annual revenue for FY 2012 to approximately $4,299,208 (2011: $4,984,641).

4 Annual General Meeting

With the release of the June 2011 and December 2011 Financial Reports the Board of Directors has resolved that the 2011 Annual General Meeting is to be held on Friday 31 August 2012 at 46 King Street, Melbourne, Victoria at 11.00 a.m.

Enquiries : John Trimble 0418 311 263

END ppn\asx\financials 12 07 12

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Planet Platinum Limited (ABN 83 101 217 252)

Appendix 4D

Half Year Report for the period ended on 31 December 2011

Table of Contents

Section 1 Title Page Section 2 Highlights of Results, Dividends and Analysts Information Section 3 Statutory Section 320 Accounts Financial Report for the half-year period ended 31 December 2011

inclusive of a full set of accounts per AASB 134 together with the Audit Review and Audit Independence Statement

Section 4 Audit Alert

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Planet Platinum Limited Appendix 4D, Half-Yearly Report for the period ended 31 December 2011 SECTION 2 : HIGHLIGHTS OF RESULTS, DIVIDENDS AND ANALYSTS INFORMATION

PLANET PLATINUM LIMITED ABN 83 101 217 252

Half Year Report Period Ended 31 December 2011

(Previous Corresponding Period: Half year ended 31 December 2010)

The Appendix 4D should be read in conjunction with the most recent Financial Report

Results for announcement to the market

. $A $A

6 months

31 12 2011 6 months

31 12 2010 Revenues from ordinary activities

Down 19.2% 2,299,208 2,845,445

(Loss) from ordinary activities after tax attributable to members

Down 46.2% 241,157 447,841

Net (Loss) for the period attributable to members

Down 46.2% 241,157 441,841

Dividends (distributions) Amount per

security Franked amount

per security 6 months ended 31 December 2011 It is not proposed that a dividend be declared or

paid -Nil N/A ¢

6 months ended 31 December 2010 Final dividend for FY June 2010 declared and paid 3.977 cents 3.977 cents

Record date for determining entitlements to the dividend N/A

Net Tangible Assets Per Security Net tangible assets per security (with the comparative figure for the previous corresponding period):

31 December 2011

31 December 2010

Net tangible assets per security 0.19 cents 0.20 cents For

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Brief explanation necessary to enable the figures above to be understood: Activities: The principal activities of the Company and its controlled entities for the half year period were the continued conduct of the adult entertainment club of ShowgirlsBar20 and property rental.

Performance: For the six months ended 31 December 2011, the Company returned an after tax profit of $241,157 (2010: profit $447,841) with revenue from continuing operations totalling $2,299,208 (2010: $2,845,445).

Dividends:

It is not proposed that a dividend be declared or paid in relation to the December 2011 Half-Year results.

Legal Matter:

Whilst the general economic conditions have brought an industry wide downturn in patronage the Company‘s patronage has continued to suffer from the unresolved actions of the Victorian Police and its decision to pursue alleged breaches of the Liquor Licencing Act at the Showgirls Bar20 Club.

The original Orders by VCAT in April 2011 were reversed by The Supreme Court of Victoria in July 2011 when upholding the application by the Company to have the VCAT Orders overturned. Since that time there have been a number of unsuccessful compulsory conferences and directions hearings to seek a settlement of these matters. The next Hearing before VCAT is now scheduled for 20 August 2012 before a judicial member.

Clearly the outcome of the actions by the Victorian Police is critical to the ongoing viability of Planet Platinum Limited, an entity listed on the official lists of the ASX Limited; the wealth of shareholders and the ongoing employment of staff. Accordingly, the Company is vigorously challenging the alleged breaches of the Liquor Licencing Act.

The ongoing nature of actions by the Victorian Police represents an uncertainty as to the future of Showgirls Bar 20 which is the Company’s principal revenue and profit generating business and which has caused the Company to incur significant legal costs and consumed a large part of management’s time in seeking to protect shareholders assets and employees positions.. Funding: Pending the resolution of the matters before VCAT in relation to ShowgirlsBar20 the Company is ‘rolling’ the Commercial Bills on a month by month basis. As such the Bills are being treated as a Current Liability in the Statement of Financial Position. General Commentary: Shareholders are referred to the attached Financial Report for the December 2011 Half Year for the full details of the Company’s performance together with the covering announcement to the ASX which provides further commentary on the results of the Company for FY June 2011; the December 2011 Half-Year and a brief update on the June 2012 half-year.

OTHER MATTERS: Controlled Entities – none acquired or disposed of during the December 2011 half-year period nor in the period up to the date of this Report Associates and Joint Ventures – none Audit Alert: - Refer to Section 4 of this Report

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Planet Platinum Limited Appendix 4D, Half-Yearly Report for the period ended 31 December 2011 SECTION 3 : STATUTORY SECTION 320 ACCOUNTS The Financial Report for the half-year period ended 31 December 2011, as attached, is inclusive of:

Directory 1

Directors’ Report 2

Auditor’s Independence Declaration 3

Financial Report - Contents 4

Statement of Comprehensive Income 5

Statement of Financial Position 6

Statement of Changes in Equity 7

Statement of Cash Flow 8

Notes to the Financial Statements 9

Directors’ Declaration 17

Independent Auditor’s Report 18

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Planet Platinum Limited

31 December 2011

Corporate directory

John Dennis Trimble

Level 2

John Dennis Trimble

John Francis Callanan (appointed 26 August 2011)

Nick Pitliangas ( appointed 4 April 2012)

Fax (03) 9077 9233

Ph (03) 9692 7222

Level 2 Principal place of business

Registered office

Share register

Abbotsford VIC 3067

Leydin FreyerAuditor

Level 4, 100 Albert Road

Elsternwick Vic 3185

Ph (03) 9415 4000 and 1300 787 272

452 Johnson Street

Yarra Falls

Computershare Investor Services Pty Ltd

13 Horne Street

Company secretary

www.planetplatinum.com.au

Planet Platinum Limited shares are listed on the Australian Securities

Exchange (ASX code: PPN)

Website address

Stock exchange listing

Directors

13 Horne Street

Elsternwick Vic 3185

Fax (03) 9473 2500

South Melbourne Vic 3025

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Planet Platinum Limited Appendix 4D, Half-Yearly Report for the period ended 31 December 2011 SECTION 4 : AUDIT ALERT As at 31 December 2011 and as the date of this Report the accounts were the subject to a review by the auditors and the review report is included as part of the Interim Report. The review has a Qualified Audit Opinion and includes an Emphasis of Matter regarding Going Concern:

Qualified Audit Opinion:

The statement of financial position includes a non-current receivable of $2,391,539 from Metropolis City Promotions Pty Ltd, an entity related to Mr John Trimble. Metropolis City Promotions Pty Ltd is not capable of repaying the loan, and traditionally dividends payable to another entity related to Mr John Trimble have been offset against this loan balance. Given the consolidated entity’s current cash position and the recent downturn in turnover and profit as a result of the Victorian Civil and Administrative Tribunal ruling in relation to the liquor license at Showgirls Bar 20, there is significant doubt in relation to the consolidated entity’s ability to pay dividends going forward. As a result there is significant doubt about the recoverability of the receivable from Metropolis City Promotions Pty Ltd.

Emphasis of Matter:

Without qualifying our opinion, we draw attention to the going concern section of Note 1 in the financial report, which indicates that at 31 December 2011, the consolidated entity had negative net current assets of $5,778,938. This condition, along with other matters set forth in note 1, indicate the existence of an inherent uncertainty which may cast doubt on the consolidated entity’s ability to continue as a going concern and whether they will realise their assets and extinguish their liability in the normal course of business and at the amounts stated in the financial report.

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planet platinum limited for personal use only2012/07/12 · the indicative but unaudited revenue...

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