Appendix4C

Quarterlyreportforentities
admittedonthebasisofcommitments

ACN120394194

201AdelaideTerrace
PerthWesternAustralia6000
Phone(08)94634340
Facsimile(08)93255999
www.ilh.com.au

Rule4.7B

Appendix 4C

Quarterly report
for entities admitted
on the basis of commitments

Nameofentity

IntegratedLegalHoldingsLimited

ABN

20120394194

Quarterended(currentquarter)

31March2009

Consolidatedstatementofcashflows

Cashflowsrelatedtooperatingactivities

1.1
Receiptsfromcustomers

1.2
Paymentsfor (a)staffcosts

(b)advertisingandmarketing

(c)researchanddevelopment

(d)leasedassets

(e)otherworkingcapital
1.3
Dividendsreceived
1.4
Interest and other items of a similar nature
received
1.5
Interestandothercostsoffinancepaid
1.6
Incometaxespaid
1.7
Other(providedetailsifmaterial)
(a) Rentreceived
(b) Sundryincome

Netoperatingcashflows(referAppendixA)

Appendix4C

Current
Quarter
$A000

YeartoDate
(9months)
$A000

3,402
(2,835)
(48)

(1)
(1,140)

9,775
(6,951)
(159)

(3)
(3,308)

14
(5)
(3)

154
(6)
(3)

51
2

160
144

(563)

(197)

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Appendix4C
Quarterlyreportforentities
admittedonthebasisofcommitments

1.8

Netoperatingcashflows(carriedforward)

Cashflowsrelatedtoinvestingactivities
Paymentforacquisitionof:

(a)businesses(item5)
(b)equityinvestments
(c)intellectualproperty
(d)physicalnoncurrentassets
(e)othernoncurrentassets
Proceedsfromdisposalof:

(a)businesses(item5)
(b)equityinvestments
(c)intellectualproperty
(d)physicalnoncurrentassets
(e)othernoncurrentassets

Loanstootherentities
Loansrepaidbyotherentities
Other(providedetailsifmaterial)

Netinvestingcashflows

1.14

1.9

1.10

1.11
1.12
1.13

1.15
1.16
1.17
1.18
1.19
1.20

(563)

(197)

(1,511)

(30)

(3,649)

(148)

(1,540)

(3,795)

Totaloperatingandinvestingcashflows

(2,103)

(3,992)

Cashflowsrelatedtofinancingactivities
Proceedsfromissuesofshares,options,etc.
Proceedsfromsaleofforfeitedshares
Proceedsfromborrowings
Repaymentofborrowings
Dividendspaid
Other(item1.26)

1,025
(114)

1,106
(274)
(1,411)

911

(579)

(1,192)

(4,571)

2,248

5,627

1,056

1,056

1.21
1.22

Netfinancingcashflows

Netincrease(decrease)incashheld

Cashatbeginningofquarter/yeartodate
Exchangerateadjustmentstoitem1.20

1.23

Cashatendofquarter

YeartoDate
(9months)
$A000

Current
Quarter
$A000

Appendix4C

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Appendix4C
Quarterlyreportforentities
admittedonthebasisofcommitments

Paymentstodirectorsoftheentityandassociatesofthedirectors
Paymentstorelatedentitiesoftheentityandassociatesoftherelated
entities

Currentquarter
$A'000

1.24

Aggregateamountofpaymentstothepartiesincludedinitem1.2(a)

1.25

Aggregateamountofloanstothepartiesincludedinitem1.11

1.26

Explanationnecessaryforanunderstandingofthetransactions
Remuneration paid to executive and nonexecutive directors of
IntegratedLegalHoldingsLimitedanditssubsidiaries.

83

102

Noncashfinancingandinvestingactivities
2.1

Details of financing and investing transactions which have had a material effect on
consolidatedassetsandliabilitiesbutdidnotinvolvecashflows

Nil

2.2

Detailsofoutlaysmadebyotherentitiestoestablishorincreasetheirshareinbusinessesin
whichthereportingentityhasaninterest

Nil

Appendix4C

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Appendix4C
Quarterlyreportforentities
admittedonthebasisofcommitments

Financingfacilitiesavailable
Addnotesasnecessaryforanunderstandingoftheposition.(SeeAASB1026paragraph12.2).

Amountavailable
$A000

3.1

Loanfacilities

3.2

Creditstandbyarrangements

Amountused
$A000

2,500

1,000

610

134

Reconciliationofcash

Reconciliationofcashattheendofthequarter(as
shownintheconsolidatedstatementofcashflows)
totherelateditemsintheaccountsisasfollows.
4.1

Cashonhandandatbank

4.2

Currentquarter
$A000

Previousquarter
$A000

1,056

2,248

Depositsatcall

4.3

Bankoverdraft

4.4

Other(providedetails)

1,056

2,248

Total:cashatendofquarter(item1.23)

Acquisitionsanddisposalsofbusinessentities

5.1

Acquisitions
(Item1.9(a))
Nameofentity

MarkDouglasstradingas

Disposals
(Item1.10(a))
Nil

mdalawyers
5.2

5.3

5.4
5.5

Place
of
NewSouthWales
incorporation
or
registration
Considerationfor
$1.863m
acquisition
or
disposal
Totalnetassets
($3,088)
Natureofbusiness

Nil

Nil

Nil

Legalpractice

Nil

Appendix4C

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Appendix4C
Quarterlyreportforentities
admittedonthebasisofcommitments

Compliancestatement

This statement has been prepared under accounting policies which comply with
accounting standards as defined in the Corporations Act (except to the extent that
informationisnotrequiredbecauseofnote2)orotherstandardsacceptabletoASX.
This statement does /does not* (delete one) give a true and fair view of the matters
disclosed.

JeanMarieRudd
CompanySecretary

23April2009

Notes

1.

2.

The quarterly report provides a basis for informing the market how the entitys
activities have been financed for the past quarter and the effect on its cash position.
Anentitywantingtodiscloseadditionalinformationisencouragedtodoso,inanote
ornotesattachedtothisreport.
Thedefinitionsin,andprovisionsof,AASB1026:StatementofCashFlowsapplytothis
reportexceptfortheparagraphsoftheStandardsetoutbelow.

3.

6.2

reconciliationofcashflowsarisingfromoperatingactivitiesto
operatingprofitorloss
9.2
itemiseddisclosurerelatingtoacquisitions
9.4
itemiseddisclosurerelatingtodisposals
12.1(a) policyforclassificationofcashitems
12.3 disclosureofrestrictionsonuseofcash
13.1
comparativeinformation

Accounting Standards. ASX will accept, for example, the use of International
AccountingStandardsforforeignentities.Ifthestandardsuseddonotaddressatopic,
theAustralianstandardonthattopic(ifany)mustbecompliedwith.

Appendix4C

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Appendix4C
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admittedonthebasisofcommitments

APPENDIX A
Item2.1

Detailsoffinancingandinvestingtransactionswhichhavehadamaterialeffect
onconsolidatedassetsandliabilitiesbutdidnotinvolvecashflows
BusinessAcquisitions

Item1.9(a)

Item1.8
Netoperatingcashoutflowsforthequarter
TheIntegratedLegalHoldingsLimitedgroupincurrednetoperatingcashoutflowsof$563,000
fortheMarch2009quarter.Thesenetoutflowsarearesultofnewbusinessacquisitions.

Businessacquisitionsadverselyimpactcashresourcesasdebtorsandworkinprogressofthe
acquiredlegalpracticesarenotpurchasedonacquisition.Cashresourcesarereinvestedback
into these businesses until working capital levels are built up to their preacquisition levels,
and the acquired businesses return to a positive cash flow. In many cases this may take a
periodofupto46months.

ThematerialityoftheacquisitionsofArgyleLawyersinNovember2008andmdalawyersin
March2009(seeseparatedisclosurebelow)totheIntegratedLegalHoldingsLimitedgroupis
significant. There has been a negative impact on operating cash flows for the March 2009
quarterandthisislikelytocontinuetodosofortheJune2009quarteralso.Thereafter,the
businessesareexpectedtogeneratepositiveoperatingcashflowsforthegroup.

Item1.9(a) Acquiredlegalpracticemdalawyers(provisionalcalculation)
On 13 March 2009, Integrated Legal Holdings Limited, through its wholly owned subsidiary,
Argyle Lawyers Pty Ltd, acquired the legal practice of mda lawyers. This acquisition was
mergedintotheexistingpracticeofArgyleLawyers.

Theconsiderationfortheacquisitionwasacombinationofcashplus1,333,334IntegratedLegal
HoldingsLtdsharesissuedat15centsandtheacquisitionissubjecttosignificantemployment
restraintsandconditions.PartofthecashcomponentwillbedeferreduntiltheendofFY10
and is subject to financial performance in that year. The cash component of the purchase
considerationhasbeenfundedfromsurpluscashreserves.

Accounting for the business acquisition remains provisionally determined because all
circumstancesandfactorsaffectingfairvaluesoftheidentifiablenetassetsacquiredhaveyet
tobefinalisedattheendoftheperiod.

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Appendix4C
Quarterlyreportforentities
admittedonthebasisofcommitments

The following constitutes the provisional calculation of the consideration given and the fair
valueofnetassetsacquired:

Consideration
Cash
Deferredcashconsideration
Costsassociatedwithacquisition
Totalcashconsideration
Sharesissuedasconsideration
Totalacquisitioncost

Fair
Value
$

19,924
13,296
33,220

17,101
19,207
36,308
(3,088)
1,866,317

Netassetsacquired
Assets
Plantandequipment
Prepayments
Totalassetsacquired

Liabilities
Interestbearingloansandborrowings
Provisions
Totalliabilitiesacquired
Netliabilitiesacquired
Goodwillonacquisition

1,500,000
171,674
11,555
1,683,229
180,000
1,863,229

Carrying
Amount
$

19,924
13,296
33,220

17,101
19,207
36,308
(3,088)

As the integration of the business is still occurring there may be some movement in the
provisionalcalculation.

Appendix4C

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