LiveHire Limited financial report for the year ended 30 June 2024

LiveHire Limited (ASX: $LVH) has released its preliminary financial report for the year ended 30 June 2024. The report indicates that LiveHire is in the process of being acquired by Humanforce, with the recent release of the Second Supplementary Target's Statement as an update. The financial report, currently being audited by Ernst & Young, highlights material uncertainty related to the Going Concern paragraph in the Independent Auditor's Report.

Executive Commentary on Going Concern and Acquisition

The Directors believe the going concern basis of accounting is appropriate, considering the Group's cash flow forecasts, expected growth in operating revenues, and reduction in the Group's cost base. The ongoing viability of LiveHire is closely tied to the recommended all-cash takeover offer from Humanforce Holdings Pty Ltd, an Accel KKR portfolio company. The Directors expect Humanforce to successfully execute on this recommended transaction by the end of September 2024, which is critical for the business' capital structure plans and ongoing viability.

Summary of LiveHire's Financial Report and Outlook

LiveHire's financial report for the year ended 30 June 2024 indicates material uncertainty related to the Going Concern paragraph, with a net loss after tax of $8,702,096. The report emphasizes the importance of the ongoing acquisition process by Humanforce for the company's capital structure plans and ongoing viability. The Directors expect Humanforce to successfully execute on this recommended transaction by the end of September 2024. The report also highlights the recognition of revenue from contracts with customers and other income, as well as the company's borrowings, share-based payments, and controlled entities. LiveHire continues to assess its assets' recoverable amount and is optimistic about the potential recovery of the business based on the on-market takeover bid by Humanforce.