UPDATE TO SHAREHOLDERS

UPDATE TO SHAREHOLDERS

Re: SurfStitch Group Limited ACN 602 288 004

SurfStitch Holdings Pty Limited ACN 601 114 603 (A wholly owned subsidiary of SGL) (each Subject to Deed of Company Arrangement) (Collectively “the Companies”)

On 18 April 2018, SurfStitch Group Limited (“SGL”) and SurfStitch Holdings Pty Limited (“SHPL”) both executed separate Deeds of Company Arrangements (“SGL DOCA” and “SHPL DOCA” respectively, together “DOCAs”) and John Park, Quentin Olde and myself, Joseph Hansell, were appointed Deed Administrators.

INFORMATION REQUIRED BY FORM 5602 ANNUAL ADMINISTRATION RETURN

Further to our ASX announcement on 18 March 2019, we attach the financial information that ASIC requires us to disclose as a condition of extending the time to hold the 2018 AGM.

The disclosed information is for the period 18 April 2018 to 25 February 2019 inclusive. Should you have any queries, please contact this office on (07) 3225 4900 or

surfstitch_enquiries@fticonsulting.com.

Yours faithfully

The Companies

Joseph Hansell

Deed Administrator

Enc.

Annual administration return

Liquidator details

Registered liquidator number

479192

Registered liquidator name

JOSEPH RONALD HANSELL

Company details

Company name

Surfstitch Group Limited

ACN/ABN

602 288 004

1 Details of appointment

Date you first began to be an external administrator of the company

18-04-2018

Period covered by the annual return

18-04-2018 to 25-02-2019

Type of appointment

Deed administrator

Details of the appointee(s)

Date of appointment

18-04-2018

Name

PARK JOHN RICHARD

Address

‘FTI CONSULTING’ LEVEL 20 345

QUEEN STREET BRISBANE QLD 4000

AUSTRALIA

Liquidator number

196558

Date of appointment

18-04-2018

Name

OLDE QUENTIN JAMES

Address

LEVEL 15 50 PITT STREET SYDNEY NSW

2000 AUSTRALIA

Liquidator number

277099

Date of appointment

18-04-2018

Name

HANSELL JOSEPH RONALD

Address

LEVEL 15 50 PITT STREET SYDNEY NSW

2000 AUSTRALIA

Liquidator number

479192

2 Details of assets

State your estimate of the future gross value of the company’s assets realisations?

Low High
Gross realisations to date $3,265,972.00 $3,265,972.00
Future realisations $1,688,053.00 $2,058,053.00
Estimated total realisations $4,954,025.00 $5,324,025.00

3 Details of remuneration

Type of appointment Amount of

Remuneration paid to Disbursements paid to

remuneration determined/fixed by creditors, committee or court (inc. GST)

date (inc. GST)

date (inc. GST)

Administrator $1,304,608.00 $1,281,279.00 $55,301.00

Deed administrator $547,800.00 $291,506.00 $2,436.00

4 Details of liabilities

Your estimate of creditors in this administration at the date of this return

Category

Priority – Wages & Super incl SGC

Estimated number of creditors

3

Estimated value

$17,867.26

Priority – Leave of absence 0 $0.00
Priority – Retrenchment 0 $0.00
Secured 0 $0.00
Unsecured 19 $1,007,580.15
Deferred 3000 $85,000,000.00

Note: Claims exclude the impact of dividends paid to date.

5 Summary receipts and payments

Receipts:

Total amounts you received before the period of this return $0.00

Total amounts you received during the period of this return $6,635,072.56

——————————- Total receipts $6,635,072.56

Payments:

Total amounts you paid before the period of this return $0.00

Total amounts you paid during the period of this return $4,209,591.68

——————————- Total payments $4,209,591.68

Cash at bank at the period end for this return $2,425,480.88

6 Payments under Fair entitlement guarantee scheme

What is the amount paid during the period to employees under the Fair entitlement guarantee scheme or GEERS?

Wages $0.00
Leave of absence $0.00
Retrenchment $0.00

7 Details of dividends

Estimate of dividends to be paid and actual since your appointment and to the date of this account

Category Current estimate of total rate of dividend

Cumulative rate of dividend paid

Total paid

Priority – Wages & Super incl SGC 100.00100.00$17,867.26

Unsecured 100.0098.83$995,885.28

8 Completion

Estimated completion date

06/2021

Details of causes which may delay the termination of your appointment

Future asset realisations

Receive dividend from the DOCA of Surfstitch Holdings Pty Ltd (Subject to

Deed of Company Arrangement)

Litigation

Settlement Approval of Class Actions

Payment of dividend

Adjudication of Subordinated Creditor claims and payment of dividend to

Subordinated Creditors (if available).

Authentication

This form has been authenticated by

Name JOSEPH RONALD HANSELL

This form has been submitted by

Name

Date

For more help or information

Web www.asic.gov.au

Ask a question? www.asic.gov.au/question

Telephone 1300 300 630

Annexure A – Summary of receipts and payments

Summary account of receipts & payments for 12 month period from 18-04-2018 to 25-02-2019

Total receipts for prior periods brought forward $0.00

Receipts Amount

Bank Charges $40.00

Cash at Bank (Coupon Select) $852,906.16

Cash at Bank (Westpac – Prem) $192,477.42

Cash at Bank (Westpac) $293,534.84

Fixed Rate Term Deposit #1 $350,539.45

Fixed Rate Term Deposit #2 $50,000.00

Group Trapped Cash $1,249,737.27

GST Control: GST Paid (Received) $267,808.00

Insurance Claims $148,952.21

Intercompany Loan Accounts $1,500,000.00

Intercompany Loan Accounts: MTC $85,930.93

Interest Income $8,461.29

PAYG Control (Non-Trading): PAYG Paid (Received) -$6,164.00

Statutory Fees $3,408.00

Statutory Interest Repaid $854.04

Suspense $110,251.02

Working Capital Adjustment $1,526,335.93

——————————- Total receipts for the current period $6,635,072.56

——————————- Total receipts from commencement to the end of the report $6,635,072.56

Total payments for prior periods brought forward $0.00

Payments Amount

Appointee Disbursements $10,079.33

Bank Charges $100.00

Fees: Appointee Fees $548,066.09

Group Trapped Cash $1,253,445.61

IT Expense $2,247.52

Legal Fees $893,716.89

Motor Vehicle Expenses $552.25

PAYG Control (Non-Trading): PAYG Withheld (Priority Dividend) -$6,164.00

Payroll Processing $591.64

Priority Creditors (Employees and SGC): Wages $17,867.26

Registry Services $120,852.47

Statutory Fees $32,256.93

Statutory Interest $1,241.41

Statutory Interest $69,193.56

Subcontractor $153,698.42

Superannuation Control (Non-Trading): Superannuation Paid (Received) $3,207.72

Suspense $110,251.02

Unsecured Creditors $981,582.52

Unsecured Creditors: Employees $14,302.76

Virtual Data Room Fees $2,502.28

——————————- Total payments for the current period $4,209,591.68

——————————- Total payments from commencement to the end of the report $4,209,591.68

Balance in hand

Bank Accounts $2,425,480.88

Annexure B – Detailed receipts and payments

Account of receipts and payments for the period – 18-04-2018 to 25-02-2019

Surfstitch Group Limited

Receipts
Date Receipts from Amount
Bank Charges
01-05-2018 Westpac Banking Corporation $10.00
01-06-2018 Westpac Banking Corporation $10.00
02-07-2018 Westpac Banking Corporation $10.00
03-09-2018 Westpac Banking Corporation $10.00
——————————-

Total Bank Charges : $40.00

Cash at Bank (Coupon Select)

18-04-2018 Transfer from Administrator $852,906.16

——————————-

Total Cash at Bank (Coupon Select) : $852,906.16

Cash at Bank (Westpac – Prem)

18-04-2018 Transfer from Administrator $192,477.42

——————————-

Total Cash at Bank (Westpac – Prem) : $192,477.42

Cash at Bank (Westpac)

18-04-2018 Transfer from Administrator $293,534.84

——————————-

Total Cash at Bank (Westpac) : $293,534.84

Fixed Rate Term Deposit #1

18-04-2018 Transfer from Administrator $350,539.45

——————————-

Total Fixed Rate Term Deposit #1 : $350,539.45

Fixed Rate Term Deposit #2

18-04-2018 Transfer from Administrator $50,000.00

——————————-

Total Fixed Rate Term Deposit #2 : $50,000.00

Group Trapped Cash

24-05-2018 Surfstitch Pty Ltd $1,249,737.27

——————————-

Total Group Trapped Cash : $1,249,737.27

GST Control: GST Paid (Received)

10-05-2018 Australian Taxation Office $37,956.00

06-12-2018 Australian Taxation Office $86,868.00

06-12-2018 Australian Taxation Office $44,602.00

06-12-2018 Australian Taxation Office $98,382.00

——————————-

Total GST Control: GST Paid (Received) : $267,808.00

Insurance Claims

22-06-2018 Chubb Insurance Company of Australia $148,952.21

——————————-

Total Insurance Claims : $148,952.21

Intercompany Loan Accounts

04-07-2018 Surfstitch Holdings Pty Limited $1,500,000.00

——————————-

Total Intercompany Loan Accounts : $1,500,000.00

Intercompany Loan Accounts: MTC

14-05-2018 MetCentral Limited $85,930.93

——————————-

Total Intercompany Loan Accounts: MTC : $85,930.93

Interest Income
30-04-2018 Westpac Banking Corporation $465.95
23-05-2018 Westpac Banking Corporation $1.21
11-07-2018 Westpac Banking Corporation $6,534.45
06-12-2018 Australian Taxation Office $571.98
06-12-2018 Australian Taxation Office $887.70
——————————-

Total Interest Income : $8,461.29

PAYG Control (Non-Trading): PAYG Paid (Received)

06-12-2018 Australian Taxation Office -$6,164.00

——————————-

Total PAYG Control (Non-Trading): PAYG Paid (Received) : -$6,164.00

Statutory Fees

23-01-2019 ASIC $3,408.00

——————————-

Total Statutory Fees : $3,408.00

Statutory Interest Repaid

20-12-2018 Australian Taxation Office $854.04

——————————-

Total Statutory Interest Repaid : $854.04

Suspense

27-04-2018 FTI Consulting (Strategic Communications) $1,217.92

27-04-2018 FTI Consulting (Strategic Communications) $109,033.10

——————————-

Total Suspense : $110,251.02

Working Capital Adjustment

30-05-2018 Surfstitch Pty Ltd $631,199.62

30-05-2018 Surfstitch Pty Ltd $849,699.80

30-05-2018 Surfstitch Pty Ltd $45,436.51

——————————-

Total Working Capital Adjustment : $1,526,335.93

——————————-

Total Receipts $6,635,072.56

Payments

Date Payments to Amount

Appointee Disbursements

22-05-2018 FTI Consulting $4,178.46

24-05-2018 FTI Consulting $3,465.30

24-07-2018 FTI Consulting $330.03

21-08-2018 FTI Consulting $1,317.79

22-10-2018 FTI Consulting $474.15

31-01-2019 FTI Consulting $313.60

——————————-

Total Appointee Disbursements : $10,079.33

Bank Charges
01-05-2018 Westpac Banking Corporation $20.00
01-06-2018 Westpac Banking Corporation $10.00
02-07-2018 Westpac Banking Corporation $10.00
03-09-2018 Westpac Banking Corporation $10.00
01-10-2018 Westpac Banking Corporation $10.00
01-11-2018 Westpac Banking Corporation $10.00
03-12-2018 Westpac Banking Corporation $10.00
02-01-2019 Westpac Banking Corporation $10.00
01-02-2019 Westpac Banking Corporation $10.00
——————————-

Total Bank Charges : $100.00

Fees: Appointee Fees

22-05-2018 FTI Consulting $191,660.58

24-05-2018 FTI Consulting $64,900.00

24-07-2018 FTI Consulting $75,353.85

21-08-2018 FTI Consulting $105,743.55

22-10-2018 FTI Consulting $58,795.56

26-10-2018 FTI Consulting $962.50

31-01-2019 FTI Consulting $50,650.05

——————————-

Total Fees: Appointee Fees : $548,066.09

Group Trapped Cash

24-05-2018 Surfstitch Pty Ltd $350,539.45

24-05-2018 Surfstitch Pty Ltd $50,000.00

24-05-2018 Surfstitch Pty Ltd $852,906.16

——————————-

Total Group Trapped Cash : $1,253,445.61

IT Expense
19-04-2018 Rush Hour Creative Solutions $935.85
31-07-2018 Rush Hour Creative Solutions $327.92
31-07-2018 Rush Hour Creative Solutions $983.75
——————————-

Total IT Expense : $2,247.52

Legal Fees
24-05-2018 King & Wood Mallesons $202,764.10
24-05-2018 King & Wood Mallesons $55.15
24-05-2018 King & Wood Mallesons $161,839.48
24-05-2018 King & Wood Mallesons $4,452.04
24-05-2018 King & Wood Mallesons $30.00
13-06-2018 King & Wood Mallesons $131,420.85
13-06-2018 King & Wood Mallesons $3,715.15
13-06-2018 King & Wood Mallesons $850.00
06-07-2018 King & Wood Mallesons $32,324.05

06-07-2018 Bridges Lawyers $6,379.45

06-07-2018 King & Wood Mallesons $61.95

08-08-2018 King & Wood Mallesons $113,428.15

08-08-2018 King & Wood Mallesons $15,733.18

08-08-2018 King & Wood Mallesons $510.24

09-08-2018 King & Wood Mallesons $35,567.40

09-08-2018 King & Wood Mallesons $1,057.43

09-08-2018 King & Wood Mallesons $155.00

11-09-2018 King & Wood Mallesons $32,733.25

11-09-2018 King & Wood Mallesons $4,182.96

11-09-2018 King & Wood Mallesons $531.72

11-10-2018 King & Wood Mallesons $45,676.95

11-10-2018 King & Wood Mallesons $16,796.14

08-11-2018 King & Wood Mallesons $35,695.55

08-11-2018 King & Wood Mallesons $27.91

19-12-2018 King & Wood Mallesons $26,360.95

19-12-2018 King & Wood Mallesons $21,367.84

——————————-

Total Legal Fees : $893,716.89

Motor Vehicle Expenses

31-07-2018 Northern Beaches Council $552.25

——————————-

Total Motor Vehicle Expenses : $552.25

PAYG Control (Non-Trading): PAYG Withheld (Priority Dividend)

06-07-2018 Suppressed -$2,534.00

06-07-2018 Suppressed -$1,612.00

06-07-2018 Suppressed -$2,018.00

——————————-

Total PAYG Control (Non-Trading): PAYG Withheld (Priority Dividend) : -$6,164.00

Payroll Processing

07-05-2018 Aussiepay Australian Payroll Professionals $136.24

13-08-2018 Aussiepay Australian Payroll Professionals $455.40

——————————-

Total Payroll Processing : $591.64

Priority Creditors (Employees and SGC): Wages

06-07-2018 Suppressed $7,346.00

06-07-2018 Suppressed $4,673.00

06-07-2018 Suppressed $5,848.26

——————————-

Total Priority Creditors (Employees and SGC): Wages : $17,867.26

Registry Services

09-05-2018 Link Market Services Ltd $68,963.90

24-05-2018 Link Market Services Ltd $5,495.58

06-07-2018 Link Market Services Ltd $1,034.00

31-07-2018 Link Market Services Ltd $19,341.63

08-08-2018 Link Market Services Ltd $6,984.45

11-09-2018 Link Market Services Ltd $1,501.50

11-09-2018 Link Market Services Ltd $9,049.66

11-10-2018 Link Market Services Ltd $6,917.00

07-01-2019 Link Market Services Ltd $1,564.75

——————————-

Total Registry Services : $120,852.47

Statutory Fees
09-05-2018 ASX Operations Pty Ltd $6.93
07-06-2018 ASIC $39.00
08-08-2018 ASX Operations Pty Ltd $27,500.00
07-01-2019 ASIC $3,487.00
07-01-2019 ASIC $1,224.00
——————————-

Total Statutory Fees : $32,256.93

Statutory Interest

06-07-2018 Suppressed $510.40

06-07-2018 Suppressed $324.68

06-07-2018 Suppressed $406.33

——————————-

Total Statutory Interest : $1,241.41

Statutory Interest

06-07-2018 ASX Operations Pty Ltd $214.47

06-07-2018 BDO East Coast Partnership $76.43

06-07-2018 Citadel Magnus Pty Ltd $82.16

06-07-2018 Cols Property Maintenance $47.38

06-07-2018 Deputy Commissioner of Taxation $854.04

06-07-2018 Energy Australia $50.94

06-07-2018 Herbert Smith Freehills $34,870.15

06-07-2018 KPMG $9,671.12

06-07-2018 Link Administration Services Pty Limited $609.50

06-07-2018 Office of State Revenue QLD $122.02

06-07-2018 Pack & Send Bondi Junction $156.33

06-07-2018 Stephen Goddard $2,819.02

06-07-2018 Ms Abigail CHEADLE $813.44

06-07-2018 King & Wood Mallesons $16,895.85

06-07-2018 Lex PEDERSEN $106.88

06-07-2018 Russells Solicitors Law Practice Trust Account $1,623.53

06-07-2018 Mr Samuel WEISS $180.30

——————————-

Total Statutory Interest : $69,193.56

Subcontractor
26-04-2018 333 Capital Pty Ltd $110,000.00
07-06-2018 Veivers Consulting Pty Ltd $4,280.00
06-07-2018 Veivers Consulting Pty Ltd $6,648.75
06-07-2018 Veivers Consulting Pty Ltd $4,556.25
31-07-2018 Veivers Consulting Pty Ltd $5,332.50
08-08-2018 Veivers Consulting Pty Ltd $821.20
08-08-2018 Veivers Consulting Pty Ltd $132.34
21-08-2018 Veivers Consulting Pty Ltd $8,032.50
13-09-2018 Veivers Consulting Pty Ltd $2,126.25
11-10-2018 Veivers Consulting Pty Ltd $4,195.13
08-11-2018 Veivers Consulting Pty Ltd $1,410.75
19-12-2018 Veivers Consulting Pty Ltd $4,974.75
07-01-2019 Veivers Consulting Pty Ltd $1,188.00
——————————-

Total Subcontractor : $153,698.42

Superannuation Control (Non-Trading): Superannuation Paid (Received)

10-05-2018 ClickSuper Pty Limited $3,207.72

——————————-

Total Superannuation Control (Non-Trading): Superannuation Paid (Received) : $3,207.72

Suspense

01-06-2018 FTI Consulting $1,217.92

01-06-2018 FTI Consulting $109,033.10

——————————-

Total Suspense : $110,251.02

Unsecured Creditors

06-07-2018 ASX Operations Pty Ltd $3,086.77

06-07-2018 BDO East Coast Partnership $1,100.00

06-07-2018 Citadel Magnus Pty Ltd $1,182.50

06-07-2018 Cols Property Maintenance $682.00

06-07-2018 Deputy Commissioner of Taxation $12,292.00

06-07-2018 Energy Australia $733.14

06-07-2018 Herbert Smith Freehills $501,877.20

06-07-2018 KPMG $139,193.95

06-07-2018 Link Administration Services Pty Limited $8,772.36

06-07-2018 Office of State Revenue QLD $1,756.22

06-07-2018 Pack & Send Bondi Junction $2,250.00

06-07-2018 Stephen Goddard $40,573.43

06-07-2018 King & Wood Mallesons $243,177.64

06-07-2018 Lex PEDERSEN $1,538.27

06-07-2018 Russells Solicitors Law Practice Trust Account $23,367.04

——————————-

Total Unsecured Creditors : $981,582.52

Unsecured Creditors: Employees

06-07-2018 Ms Abigail CHEADLE $11,707.69

06-07-2018 Mr Samuel WEISS $2,595.07

——————————-

Total Unsecured Creditors: Employees : $14,302.76

Virtual Data Room Fees

09-05-2018 Ansarada Pty Ltd $1,272.72

09-05-2018 Ansarada Pty Ltd $1,229.56

——————————-

Total Virtual Data Room Fees : $2,502.28

——————————-

Total Payments $4,209,591.68

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