Cellmid 2017 Annual Report
NOTES TO THE
The Group has a number of customers to whom it provides both products and services. The Group supplies a single external
customer in the consumer health segment who accounts for 19.78% of external revenue (2016:39.94%). The next most
signiﬁcant client accounts for 3.4% (2016: 12.22%) of external revenue.
Operating lease commitments includes contracted amounts for ofﬁce space under non cancellable operating lease expiring
within ﬁve years with no option to extend and the business telephone system.
28. CONTINGENT LIABILITIES AND CONTINGENT ASSETS
On 22 July 2016, Ikon Communications Pty Ltd (Ikon), a subsidiary of the WPP AUNZ (ASX:WPP) group of advertising agencies,
ﬁled legal action against Advangen International Pty Limited (Advangen), Cellmid’s wholly owned subsidiary operating the
Australian consumer health business.
Ikon’s claim is for the amount of $939,055.65 pursuant to the Services Agreement entered into by the parties on 15 June 2015. In the
claim Ikon alleges that Advangen has failed to pay certain invoices for services rendered in relation to an advertising campaign.
Advangen strongly disputes that Ikon is entitled to be paid for the work the subject of the invoices. It is Advangen’s position
that Ikon has breached the Services Agreement, failed to provide certain services at all or adequately and engaged in
misleading and dishonest conduct that has caused Advangen loss and damage.
Advangen intends to vigorously defend its position and cross claim for payments already made for services not provided or
properly provided by Ikon, as well as for any further damages. It will also ensure that there is adequate security for its costs,
and if necessary, apply for an order that security for costs be provided by Ikon.
The Group has given bank guarantees as at 30 June 2017 of $65,829 (30 June 2016: $65,829) relating to the lease of
commercial ofﬁce space.
For information about guarantees given by entities within the group, including the parent entity, please refer to note 2.
Other than the matter noted above, the Group had no contingent liabilities or contingent assets at 30 June 2017. (30 June 2016: Nil)
Lease commitments - operating
Committed at the reporting date but not recognised as liabilities, payable:
Within one year 131,541 140,844
One to ﬁve years 2,919 135,037
Minimum lease payments 134,460 275,881