Credit Clear : APPENDIX 4D & INTERIM FINANCIAL STATEMENTS FOR THE HALF YEAR

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Appendix 4D & Interim Financial Statements

for the Half-Year ended 31 December 2021

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Appendix 4D - Half-Yearly report

Reporting Period
Reporting period:	For the half-year ended 31 December 2021
Previous period:	For the half-year ended 31 December 2020
Results for Announcement to the Market
Key Information
		Half-year Ended	Half-year Ended
		31 December 2021	31 December 2020
		$000	$000	% Change
Revenue from ordinary activities	6,651	4,885	36%
Profit / (Loss) after tax from ordinary activities	(5,872)	(3,990)	-47%
attributable to members
Net profit / (loss) attributable to members	(5,872)	(3,990)	-47%

Dividends

There were no dividends paid, proposed or declared during the current financial period.

Dividend Reinvestment Plans

Not applicable.

Net tangible assets per security

	Half-year Ended	Half-year Ended
	31 December 2021	31 December 2020
	$/Share	$/Share
Net tangible assets per security	0.06	0.05
Control Gained or Lost over Entities in the Half-year
Not applicable
Investments in Associates and Joint Ventures
Not applicable

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Audit qualification or review

Details of audit/review dispute or qualification (if any):

The financial statements were subject to a review by the auditors and the review report is attached as part of the Half Year Financial Report.

Signed

Signed_______________________

Lewis Romano

Director

24 February 2022

Credit Clear Limited ABN 48 604 797 033 and Controlled Entities

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Directors' Report

Your directors submit the financial report of the Consolidated Group for the half-year ended 31 December 2021.

Directors

The following persons were directors during all of the half-year and up to the date of this report, unless otherwise stated:

Gerd Guido Schenkel

Mark James Casey

Lewis James Romano

Marcus Colin Price

Christine Christian (resigned 21 October 2021)

Hugh Walter Robertson (appointed 22 September 2021)

Andrew Smith (appointed 9 February 2022)

Principal Activities

The principal activities of the Group during the financial period was the development and implementation of the receivables management system and the provision of receivable collection services. The Group also provides commercial legal services as part of its full end to end receivable management service.

Dividends

There were no dividends paid, proposed or declared during the current financial period.

Review of Operations

Revenue from customers for the six months ending 31 December 2021 increased 36% to $6.651 million (December 2020 $4.880 m). Despite the increase, revenues continued to be negatively affected by Covid-19 related issues which led to clients reducing their collection volumes.

Earnings/losses before interest, tax depreciation and amortisation (EBITDA) was a loss of $4.800 million (December 2020 $2.780 million). The increase in the loss is mainly attributable to due diligence expenses for the ARMA acquisition which was completed on 4 February 2022. The company also continued to invest in the digital collection system to drive digital revenue.

The Board and Executives continue to focus on developing digital collections technology to enhance the customer experience and optimise receivables management for our clients.

Significant changes in the state of affairs

The following significant changes in the state of affairs of the Group occurred during the financial period:

1. On 13 Dec'21, the company executed a legal agreement to acquire Australian Recoveries and Mercantile
   Agents Group Holdings (ARMA). The agreement was subject to specific conditions being achieved, which were completed on 4 February 2022.
2. The company raised $12,741,204 which partly funded the ARMA acquisition.

There were no other significant changes in the state of affairs of the consolidated entity during the financial period.

Matters subsequent to the end of the financial period

1. The conditions to finalise the ARMA acquisition were completed on 4 February 2022.
2. In January 2022, the company raised a further $12,758,795 as part funding of the ARMA acquisition.
3. As part of the ARMA acquisition, the vendors of ARMA provided a loan to Credit Clear for $3,000,000.
4. As a result of the acquisition, Credit Clear has made two key management appointments. ARMA CEO and co-founder Andrew Smith has been appointed as Credit Clear Limited Chief Executive Officer (CEO).

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Directors' Report

Previous CEO, David Hentschke, will take up the new role of MD International and Technology.

Rounding of Amounts

The Consolidated Group has applied the relief available to it in ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2016/191 and accordingly certain amounts in the financial report and the directors' report have been rounded off to the nearest $1,000.

Auditors Independence declaration

A copy of the auditor's independence declaration as required under section 307C of the Corporation Act 2001 is set out immediately after this directors' report.

Signed in accordance with a resolution of the Board of the Directors.

Director____________________

Lewis Romano

Date: 24 February 2022

Credit Clear Limited ABN 48 604 797 033 and Controlled Entities

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