ANNUAL
REPORT
2023
AT A
GLANCE
786
RETAIL STORES
35
WEBSITES
17
GLOBAL BRANDS
26
RETAIL BANNERS
9.8M
CONTACTABLE
CUSTOMERS
Accent Group
Limited (AX1) is
a market leading
digitally integrated
retail and distribution
business in the
performance and
lifestyle market
sectors.
CONTENTS
2
7
10
19
35
36
37
38
39
40
76
77
83
85
Our Brands
Chairman and Chief Executive Officers’ Report
Directors’ Report
Remuneration Report
Auditor’s Independence Declaration
Statement of Profit or Loss and Other
Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
Shareholder Information
Corporate Directory
1
Annual Report 2023
David Gordon
Chairman
Daniel Agostinelli
Chief Executive Officer
Dear fellow Shareholders,
We are pleased to present to you
the 2023 Annual Report for Accent
Group Limited (Accent Group,
Group or Company).
Accent Group has delivered a record
result in FY23, driving total sales
of $1.57 billion and $89 million in
net profit after tax. After a highly
disrupted and challenging FY22,
the Company experienced positive
business momentum during H1 FY23
which continued well into the second
half. Despite the softening conditions
towards the end of the financial year
(Australians having sustained 12
consecutive interest rate increases
since May 2022), Accent Group was
able to capitalise on the strength
of its brands and defensible market
position to finish the year well.
The management team maintained
its focus on driving return on
investment through meeting
customer demand and high service
expectations and offering new and
innovative products. This focus has
contributed to the record profits
and shareholder returns for FY23.
The results delivered in FY23
continue the Company’s long-term
objective of delivering profits and
growing shareholder value.
The Board commends the
drive, determination and high-
performance culture of the Accent
Group team.
OPERATING REVIEW
Accent Group remains committed
to a long-term strategy of delivering
customers a best in class integrated
digital and instore experience.
Owned sales of $1.4 billion in FY23
were up 26.3% on the prior year.
Retail & Wholesale
The Group opened 80 new stores
in FY23 and closed 21 stores where
required rent outcomes could not
be achieved. Our store development
team continues to prove that they
are best in class. Following on from
the work which commenced in FY22,
where the Group identified stores
that could generate significantly
better returns on investment
if transitioned to other banners,
15 such stores were transitioned.
The wholesale channel continues
to be bolstered with new brands,
with the Group adding UGG to its
portfolio of exclusive distributed
brands during the year.
CHAIRMAN
AND CHIEF
EXECUTIVE
OFFICERS’
REPORT
Focussed
on long term
growth in
shareholder
value
$1,57b
Total Sales
(incl. TAF)1
$1,4b
Accent Group
Sales (company
owned)
2
Accent Group Limited FINANCIAL REVIEW
The Group’s net profit after tax for FY23 was $89 million. Your Board has declared a final fully franked dividend of 5.50 cents
per share, which brings the total dividends declared during the year to 17.50 cents per share.
Financials
($ millions)
Total Sales to Customers (incl. TAF)1
Accent Group Sales (company owned)
EBITDA
EBIT
NPAT
EPS (cents per share)
Dividends (cents per share)
1
Includes The Athlete’s Foot franchise store sales (non-IFRS measure).
FY23
FY22
Growth
1,566
1,393
298.2
138.8
88.7
16.16
17.5
1,267
1,103
23.6%
26.3%
213.6
39.6%
62.3
122.8%
31.5
5.81
6.5
181.6%
178.1%
169.2%
Digital & Loyalty
The Accent Group digital channel
was a standout performer,
with online sales of $260.5m,
representing 19.1% of total retail sales,
delivering continued growth over
the last four years.
The continuing increase in the
profitability of the Group’s digital
sales is notable, achieved by a
combination of the market-leading
infrastructure developed and built by
the Company over the last few years,
together with the focus on efficiency
and profitability by the management
team. The Group will continue its
focus growing the profitability of
digital sales.
market leading, digitally integrated
consumer business, comprising 35
websites, 26 owned and distributed
brands, 821 points of distribution
and now 9.8 million contactable
customers.
Over the past year, contactable
customers grew from 9.3 million
to 9.8 million customers. We are
well placed to continue to service
the growing demand for digital
sales from customers with our
Customer loyalty programs continue
to be a focus for the Group, with a
key focus on delivering value and
increasing engagement across all
the Group’s programs.
3
Annual Report 2023 Over the last three
years, the Company has
continued to invest in
stores, digital capability,
distributed brands,
owned vertical brands
and new businesses,
increasing the scale and
customer reach of the
business.
Sustainability
Having launched its first standalone Sustainability
Report in 2022, the Company continues to make inroads
in this area, and we hope you will enjoy seeing the
many initiatives that were launched in 2023. The 2023
Sustainability Report will be released on the same date
as this Annual Report.
CONCLUSION
The FY23 year continues the long-term growth
trajectory that Accent Group shareholders have come
to expect. While we are delighted to present you with
the performance of this year, we will nonetheless
continue to maintain the level of intensity and drive in
striving for excellent performance to deliver value for
our customers, our shareholders, and our people. We
look to expanding and growing our business and reach
across Australia and New Zealand and generating
strong long-term returns for our shareholders.
David Gordon
Chairman
Daniel Agostinelli
Chief Executive Officer
4
Accent Group Limited OUR BRANDS
Skechers is a global leader in lifestyle
and performance footwear. Driven
by innovative comfort technology
and is always on trend. Skechers
offers a diverse range of footwear
and apparel for men, women and
children. We currently operate over
165 Skechers stores across Australia
and New Zealand.
Platypus is over 185 stores strong
across Australia and New Zealand.
It is now the region’s largest multi-
branded sneaker destination offering
the freshest footwear from the
biggest brands across the world.
Hype DC is the destination for the
latest exclusive footwear in Australia
and New Zealand. They specialise in
premium sneakers, short-run releases
and timeless classics. Established 20
years ago, Hype DC is the longest-
standing, Australian-owned footwear
retailer with over 80 locations.
With over 150 stores across Australia
and New Zealand, The Athlete’s Foot
is one of the region’s largest specialty
athletic and lifestyle footwear
retailers. They are well known for their
exceptional in-store customer service
experience and fitting technology.
Launched in 2012, Stylerunner offers
a highly edited set of global brands
and curated collections of women’s
activewear and sneakers. Stylerunner
opened its first store in 2020 and now
operates over 20 retail stores across
Australia and New Zealand.
The Dr Martens range of footwear
was born in 1960. It is a representation
of rebellion and free-thinking youth
culture and made like no other
shoe on earth. With an expanding
store network, we now operate
over 20 stores.
5
Annual Report 2023 OUR BRANDS
Glue Store is one of Australia’s leading
retailers for men’s and women’s
apparel. Delivering on trend clothing,
shoes and accessories from an
aspirational brand assortment that
empowers individuals to be fashion
leaders. We operate over 30 stores
in Australia and New Zealand.
The Vans brand evolution continues,
with over 35 Vans stores across
Australia and New Zealand.
From its foundation as an original
skateboarding company to its
emergence as a leading action sports
brand, to its rise to become the
world’s largest youth culture brand.
Merrell is the world’s leading brand of
performance outdoor and adventure
footwear. Constantly innovating new
technologies and products to give
you the confidence to head outdoors
and go and seek and do. We operate
over 15 Merrell stores.
The Trybe is about making kids
footwear fun. With a collection of
footwear and accessories from Nike,
Vans, adidas and more. The Trybe
is the destination for the very best
global brands in kids’ footwear. The
Trybe currently has over 15 stores.
Inspired by the company’s New
England heritage, Timberland is a
brand true to the outdoor lifestyle.
It is a fashion staple on a global scale.
We operate 9 Timberland stores.
Timberland Pro was born in 1999 and
brings premium and durable products
to professional tradespeople,
focusing on protection, performance
and comfort. The brand is committed
to delivering a greener future
by striving to create net positive
emissions by 2030.
6
Accent Group Limited OUR BRANDS
Saucony is synonymous with high
performance footwear and is a
leading global running lifestyle brand.
This focus and passion drives Saucony
to offer best in-class running shoes,
apparel and timeless retro footwear.
Born in 2010 in Sydney, Australia,
Nude Lucy provides a premium,
everyday wardrobe inspired by an
inherently Australian relaxed way
of life. Over a decade later, it is now
firmly established as a sought-after,
trustworthy and timeless destination
for casualwear, made by women, for
women with over 19 stores.
HOKA offers consumers
performance enhancing footwear
for all terrains. Established in 2009,
HOKA delivers classic and new styles
of running, walking, trail and hiking
shoes. Designed not only with eye-
catching colours but with the latest
technology-designed shoes that
provide ultimate comfort.
Founded on FEEL, UGG is dedicated
to long-lasting quality and enduring
designs that transcend trends. Bold,
provocative, and real, UGG is a
purpose-driven brand for those who
refuse to be defined by convention.
The Alpha range of footwear offers
an extensive range of back to school
footwear, designed for active kids to
wear all day long. Durability, multi-fit
and versatility are key to the success
of this brand.
Established in Dallas, Texas in 1982,
Autry is referred to as ‘the shoe with
the American flag’. They embody
the 80s vintage vibe like no other
brand. Autry Action Shoes are the
ultimate blend of court shoe and
casual sneaker.
7
Annual Report 2023 OUR BRANDS
SUBTYPE is a destination for
premium sneakers and apparel that
blurs the lines between fashion
and street. SUBTYPE’s unique,
conceptual stores are a cultural hub
and curate a full collection of apparel
and footwear from established and
upcoming labels.
CAT Footwear and apparel has been
designed and engineered to live up
to the hard-working reputation of
the Caterpillar brand. Made with
uncompromising toughness and style.
We now operate 6 CAT retail stores
in Australia.
Founded in 2012, ARTICLE ONE’s
philosophy is to provide elevated
styles for the modern-day individual
which form the core of every
wardrobe. Every ARTICLE ONE piece
aligns with the distinctively relaxed
and effortless Australian sensibility
through fit, fabric, subtle detailing
and timeless colour palettes.
Bold and edgy, Beyond Her is an
Australian fashion label known for
its strong 90’s vibe which combines
modern and vintage designs. A mix of
urban edge streetwear with elegant
and feminine fits that will take you
from casual and workwear to off-duty
and party outfits.
Made with the everyday traveller
in mind, Herschel’s collection of
bags and backpacks have been
thoughtfully designed. Combining
modern functionality with a touch of
nostalgia. Herschel is renowned for
their practical details; laptop sleeves,
hidden compartments and separated
sections for everything you need.
FIRST MSE is a brand that is bold,
confident and the new must-have
addition to the after-dark wardrobe.
With their range of clothing including
dresses and tops, FIRST MSE is
all about clean lines and sleek
silhouettes.
8
Accent Group Limited OUR BRANDS
Kappa’s heritage is an inexhaustible
source of inspiration for
contemporary lifestyle. Kappa
Authentic takes inspiration from this
iconic and valuable heritage which
enables the brand to constantly
reinvent and impose itself as a trend.
For over 100 years, Superga has been
known for their wide range of classic
sneakers and tennis shoes. Loved by
fashionistas, bloggers and trend-
setters alike, Superga, labelled as ‘the
people’s shoes of Italy’, has paved the
way for casual streetwear.
IN THE NAME OF aka, I–T–N–O is a
brand that’s constantly in the know
of the next footwear trend. Founded
in Melbourne and designed for the
ultimate trend setter, ITNO offers
a diverse range of sandals, boots,
sneakers and heels.
Lulu & Rose is a contemporary
women’s label inspired by nostalgia,
flirtation and femininity. Bringing out
the hottest trends and styles, Lulu
& Rose will keep your outfit on point
through all four seasons.
With soles made from the same
rubber as aircraft tyres, it’s no wonder
Palladium is a go-to sneaker for
modern day explorers. Palladium is
known for combining technological
innovation with their signature ‘light
as a feather’ feeling.
Sneaker LAB took its passion for
sneaker culture and matched it with
science, creating a natural cleaning
solution, that works. It is a proudly
South African brand that takes on a
fresh approach to shoe care to more
than 60 countries and counting.
9
Annual Report 2023 DIRECTORS' REPORT
FY23 DIRECTORS’ REPORT
The Directors present their report, together with the financial statements of the consolidated entity (the Consolidated
Entity or Group) consisting of Accent Group Limited (the Company or Accent Group) and its controlled entities for the
year ended 2 July 2023.
The Group has adopted a 53-week period, for financial reporting purposes, which ended on 2 July 2023. The prior
financial year was a 52-week period ended on 26 June 2022.
1. DIRECTORS
The following persons were Directors of Accent Group during the whole of the financial year and up to the date of this
report, unless otherwise stated:
– David Gordon – Chairman
– Daniel Agostinelli – Group Chief Executive Officer
– Stephen Goddard
– Michael Hapgood
– Donna Player
– Joshua Lowcock
– Brett Blundy
– Timothy Dodd – alternate Director for Brett Blundy
2. PRINCIPAL ACTIVITIES
Accent Group is a leading digitally integrated consumer business in the retail and distribution sectors of branded
performance and lifestyle footwear, apparel and accessories with over 820 stores across 26 different retail banners and
exclusive distribution rights for 17 international brands across Australia and New Zealand.
The Group’s banners and brands include The Athlete’s Foot (TAF), Platypus Shoes, Hype DC, Skechers, Merrell, CAT,
Vans, Dr. Martens, Saucony, Timberland, HOKA, Superga, Kappa, Palladium, Supra, Subtype, The Trybe, Stylerunner,
Glue Store, Autry and UGG.
3. DIVIDENDS
Dividends paid or declared by the Company during, and since the end of, the financial year are set out in Note 25 to the
Financial Statements and summarised below:
FY23 final
FY23 interim
FY22 final
FY22 interim
Cents per ordinary share
Total amount ($’000)
5.50
30,385
12.00
66,295
4.00
21,675
2.50
13,546
Payment date
28 September 2023
9 March 2023 15 September 2022
17 March 2022
The total dividend for the financial year ended 2 July 2023 of 17.50 cents per share is an increase of 169.2% on the
previous year.
4. OPERATING AND FINANCIAL REVIEW
The Operating and Financial Review of the Group for the financial year ended 2 July 2023 is provided in the Chairman
and Chief Executive Officer’s Report on page 2 and forms part of this Directors’ Report.
5. MATERIAL BUSINESS RISKS
The Group’s risk management framework enables it to continuously, systematically and actively monitor and manage
the potential risks which may adversely impact the operational and financial performance of its businesses, which in turn
may affect the outcome of an investment in the Group. There is no guarantee that the stated objectives of the Group will
be achieved. A variety of factors, both Group specific and of a general nature, may impact upon the Group’s activities
and results, including general economic and business conditions, inflation, interest and exchange rates, consumer
confidence, government policies and the trailing effects of the COVID-19 pandemic.
The Group considers the following to be business risks that are likely to have a material effect on its operational and
financial performance. An overview (and not exhaustive list) of mitigation actions taken by the Group is also set out.
10
Accent Group Limitedfor the year ended 2 July 2023 Type and description of risk
Mitigating Actions
Competition
The markets in which the Group operates remain highly
competitive, and any increased competition from new
and existing competitors may lead to price deflation and
a decline in sales and profitability, in particular:
– Entrance of new international competitors
– Aggressive discounting by local competitors
– Growth in international online sites providing shipping
to Australia and New Zealand
– DTC distribution strategies of global brands
– Global luxury brands expanding in the lifestyle
footwear category
– Competition from existing and new apparel brands and
retailers in the youth, lifestyle and athleisure segments
– Opening new stores to increase market share in Australia
and New Zealand
– Opening new and larger, or upgrading existing, stores in
locales where there is a heavy competitor presence
– Development and execution of new brand formats and
product offerings in the performance, youth and lifestyle
footwear and apparel markets
– Continuing to enhance online digital capability and sales
penetration
– Monitoring international markets to identify
opportunities for growth
– Developing a deeper understanding of our customers,
including through application of technological
developments, CRM, and face-to-face engagement
in-store
Changes in consumer behaviour
The Group is exposed to both the upside and downside of
cycles in consumer spending and demands, given that the
products offered by the Group are discretionary in nature.
Accordingly, customers' preferences, perception of
brands, and demographics are all considered risks, in
particular:
– A reduction in consumer spending and demand may
lead to a decline in the Group’s sales and profitability
– Trends in consumers shifting to online shopping drives
a prolonged decline in stores’ like-for-like sales growth
– An acceleration of the online trend drives inaccurate
stock allocations in the short-term
Health and Safety
– Managing a diverse portfolio of brands, with appeal to
broader consumer demographic
– Driving store rental reductions at renewal
– Continued investment in store fit-out with each new
store and refurbished stores including new experiential
elements
– Development of a forward-looking store performance/
profitability tool
– Continuing to optimise the incremental digital costs for
marketing and distribution
– Closely monitoring and responding quickly to changes
in the economic environment, consumer demand and
new products
The Group is committed to the health and safety of its
team members, customers and contractors and places
a strong emphasis on the implementation of work health
and safety standards. However, risks still remain possible,
in particular:
– Establishing, regularly updating and implementing
a health and safety management system including
resources, training and procedures
– Investigating every incident to mitigate against
reoccurrence
– Injury to a customer or a team member in work
– Implementing learning initiatives and improvements to
locations
– Death of a customer or a team member in work
locations
– A natural disaster event impacting on the safety of
team members or customers
create safer work locations
– Creating training modules to ensure that all team
members are inducted in safe work practises
– Developing an auditing program to train leaders to
regularly identify safety risks
– External events involving a team member or a member
of the public (e.g. self-harm, public situations) causing
trauma, distress and psychological harm
– Establishing the Safety Steering Group which meets
regularly to discuss and review incidents
– Engaging with government agencies to ensure legal
compliance
– Engaging third party providers to support team
members with issues that may impact their wellbeing
– Provide First Aid/CPR training to nominated
representatives in office locations, and Mental Health
First aid training to State and National Managers
11
Annual Report 2023for the year ended 2 July 2023DIRECTORS' REPORT Type and description of risk
Mitigating Actions
Cyber Security and Information Technology
While an increased reliance on information technology
systems maximises the efficiency of the Group’s business
operations, any sustained and unplanned downtime due to
cybersecurity attacks, system failures, network disruptions
and other malicious or non-malicious incidents could have
a material adverse impact on the Group’s reputation, and
its operating and financial performance, in particular:
– Corruption of inventory management software
– External attack on websites
– Internal/external unauthorised access to sensitive
commercial data
– Internal/external unauthorised access to customer data
– Fraudulent email phishing attacks resulting in
compromised infrastructure or systems
Distributed brands and key supplier relationships
The Group enjoys strong partnerships with all major
suppliers, and its regional exclusivity with numerous
sought-after brands is a key distinguishing feature of
its product offering. Failing to maintain good working
relationships with key suppliers may lead to the
following risks:
– Loss of a key distributed brand due to poor
management, lack of growth or brand preference
to manage the territory themselves.
– Loss of a key global third party brand due to
distribution pressure from global sneaker retailers
– Substantive change in distribution strategy of a key
supplier resulting in a substantial product ranging change
Sustainability and social responsibility
The sustainability of the Group’s business is impacted by
a number of environmental and social factors. Any actual
or perceived failure to adequately address sustainability
related issues may have an adverse effect on the Group’s
reputation, and operational and financial performance, in
particular:
– Identifying issues in its supply chain (including modern
slavery practices)
– Sourcing sustainable materials and packaging
– Implementing product compliant systems to improve
product safety
– Promoting gender equality
– Responding inadequately to increasing demand
from consumers regarding traceability of products
and clearer and more meaningful labelling may lead
to reputational damage and potentially immediate
adverse political or customer actions
– Documented disaster recovery processes (including
offsite information technology back-up infrastructure)
– Implementing improved user access and profiling
– Increasing the frequency of security assessments,
penetration and vulnerability testing using external
expert advisers
– Implementing higher level password security and
change protocols
– Implementing appropriate programs and tools to
identify and formalise the remediation of vulnerabilities
– Reviewing payment card industry compliance
– Exploring and, where appropriate, implementing
security tools based on artificial intelligence
– Increasing sophistication of enterprise password tools
and protocols
– Implementing a thorough, methodical and effective
renewal program for distributed brands
– C-suite engagement with distributed brand principals
over regular periods
– Driving the mix and growth of distributed brands
– Rolling out concept stores for distributed brands
– Opening new store formats to increase category reach,
expanding the Group’s relevance as a distributor or
brand partner.
– Establishing an Environmental, Social and Governance
(‘ESG’) framework, including the establishment of the
ESG Steering Group
– Moving the purview of ESG under the office of the
General Counsel and Company Secretary, with
individual accountability for implementation of
initiatives sitting within each business, with ultimate
oversight by the Audit and Risk Committee
– Reporting on the Group’s progress of published targets
in the Sustainability Report annually with regular
monitoring throughout the year
– Reporting annually on the Group’s Modern Slavery
Statement with regular monitoring throughout the year
– Establishing a responsible sourcing framework under
which the Ethical Sourcing Policy was created, to be
distributed to relevant parties in the Group’s vertical
products supply chain
– Reviewing the recommendations of the Financial
Stability Board’s Task Force on Climate-related Financial
Disclosures and local regulatory developments and, if
appropriate, provide an analysis of and make disclosures
aligned with, the recommendations
– Commitment for gender equality in leadership roles
as published in the Group’s Sustainability Report and
Corporate Governance Statement annually
12
Accent Group Limitedfor the year ended 2 July 2023DIRECTORS' REPORT Type and description of risk
Mitigating Actions
Legal, Regulatory and Compliance
The Group is required to maintain compliance with all
applicable laws and regulations, including those relating to
consumer protection, product quality, ethical sourcing and
corporate governance. Failure to comply with these laws
and regulations could result in high legal costs, adverse
monetary judgments, regulatory enforcement action and
other claims which could have a material adverse impact
on the Group’s reputation, and operational and financial
performance, in particular:
– Aggressive or poorly controlled tax risk management
leading to misstatements of tax payable
– Lack of focus on supply chain management, resulting
in an inability to meet Modern Slavery regulations
requirements
– Poor management of PCI compliance, resulting in
monetary fines and regulatory breaches
– Poor understanding of key pieces of legislation
impacting on the Group’s business leading to
regulatory breaches, significant monetary fines and/
or litigious action
Black Swan events
– Establishing policies, procedures and compliance
systems
– Establishing a Group-wide Code of Conduct including
periodic reviews and attestations of compliance from the
senior management team
– Establishing the Whistleblower Policy and dedicated
Whistleblower Protection Officer
– Dedicated in-house legal team
– Regular consultation with professional advisers on key
areas of compliance risk
– Actively monitoring changes to regulations and laws
– Monthly financial and disclosures obligation reporting
– Upweighted focus on tax risk compliance, including
the regular, systematic review of the effectiveness and
currency of the Group’s Tax Risk Management Policy
While the impacts of the COVID-19 pandemic have largely
subsided, the Group may face altered societal behaviour
in relation to public health concerns (for example to
emerging epidemics), including:
– Relevant health and safety protocols and policies
developed and in place to encourage personal hygiene,
physical distancing and management of mental health
– Required personal protective equipment made available
– Timing and nature of government containment
measures (which may again include lockdowns
and mandated store closures impacting profit and
cashflow)
– Unforeseeable fluctuations in consumer demand by
state, and even local suburbs impacting profit and
cashflow
– Risk of team member or customer infection resulting in
office(s) or store(s) closures
– Risk of fines for regulatory breaches of government
safe operating requirements
– Altered consumer behaviour (e.g. long-term shift
towards online shopping or significant reduction in
household spending)
in all offices and stores
– Increased effectiveness and frequency of office and
store cleaning practices
– Online/digital contingency plans developed and
implemented for potential rolling shutdowns
– Able to quickly adjust marketing plans to support online
trading
– Regular monitoring and communication to team
members of government updates and requirements
– Factoring in the potential foreseeable impact of health
epidemics into forward sales, costs, inventory and
cashflow plans
6. SUSTAINABILITY
A detailed account of our approach to business sustainability, covering people and safety, ethical sourcing, community and
the environment is contained in the Company’s 2023 Sustainability Report.
13
Annual Report 2023for the year ended 2 July 2023DIRECTORS' REPORT 7.
INFORMATION ON DIRECTORS
Name
Particulars
David Gordon
Non-Executive Chairman
Daniel Agostinelli
Chief Executive Officer
Stephen Goddard
Non-Executive Director
David has over 30 years’ experience as a director of both public and private companies
and working in corporate advisory roles to Australian and international organisations.
He brings extensive knowledge of mergers and acquisitions, as well as capital raisings,
IPOs and joint ventures.
David also has a proven track record in guiding businesses to harness their digital asset
capability to successfully explore and grow new markets.
David is the Chairman of the Board of nib Holdings Limited and its health fund subsidiary,
nib Health Funds Limited.
He is also the Chairman of Shippit Pty Limited, General Homecare Holdings Pty Ltd,
and Genesis Capital Manager 1 Pty Ltd. He is a Non-Executive Director of international
not-for-profit organisation High Resolves.
David has been a Non-Executive Director of Accent Group since October 2006 and was
appointed Non-Executive Chairman in November 2017.
David is also the Chairman of the People and Remuneration Committee and a member
of the Audit and Risk Committee and Digital Strategy Group.
Daniel oversees the day-to-day operations of Accent Group. He has over 30 years
of retail experience and was formerly the CEO of Sanity Music and part owner of the
Ghetto Shoes sneaker business. Daniel has been with Accent Group since 2006 and
CEO of Accent Group since March 2015.
Stephen is currently the Chairman of the Board and the Remuneration and
Nomination Committee of JB Hi-Fi Limited and a Non-Executive Director and
Chairman of the Audit and Risk Committee of Nick Scali Limited. Stephen was
formerly a Non-Executive Director and Chairman of the Audit and Risk Committee
of GWA Group Limited, the Finance Director and Operations Director for David
Jones Limited and the founding Managing Director of Officeworks.
Stephen was appointed as a Non-Executive Director of Accent Group in
November 2017.
Stephen is the Chairman of the Audit and Risk Committee and a member of the
People and Remuneration Committee with extensive retail, finance, and board
experience.
Michael Hapgood
Co-Founder and
Non-Executive Director
A founding Director and shareholder of Accent Group, Michael has extensive
knowledge of the processes required to effectively launch, source and manage
global brands within the Australasian market.
From Accent Group’s inception, Michael has been intimately involved in the
development of all major strategic initiatives for the business initially from 1988 as
marketing director before becoming CEO in 1998 until the sale to RCG Group in
May 2015. Michael then became Accent Group’s Chairman until August 2016 when
all ongoing executive roles were relinquished.
He continues as a Non-Executive Director and shareholder of Accent Group and is
a member of the Digital Strategy Group.
Donna has over 35 years’ experience in retail including senior executive positions
in merchandising, planning and marketing with Big W and David Jones. Donna
is currently a Non-Executive Director of Baby Bunting Group Limited and is the
Merchandise Director of Camilla Australia. Donna has a proven track record in
developing and delivering retail strategy and business transformation.
Donna was appointed as a Non-Executive Director in November 2017 and is
a member of the People and Remuneration Committee.
Donna Player
Non-Executive Director
14
Accent Group Limitedfor the year ended 2 July 2023DIRECTORS' REPORT Name
Particulars
Joshua Lowcock
Non-Executive Director
Brett Blundy
Non-Executive Director
Timothy Dodd
Alternate Director for
Brett Blundy
Joshua is a recognised expert in digital and media with a career that has spanned
Australia, the US, and China. He brings to Accent Group proven retail expertise at the
intersection of marketing, technology, data, and privacy for clients that have included
Woolworths, Walmart, CVS Health and several other Fortune 500 companies. Joshua
has an MBA from AGSM and is a Member of the Australian Institute of Company
Directors (MAICD).
Joshua is also the New York-based Global Chief Media Officer of Universal McCann,
and a Non-Executive Director of Cashrewards Pty Limited and AdVeritas Limited.
Joshua was appointed as a Non-Executive Director of Accent Group in November
2019, is the Chair of the Digital Strategy Group, and is a member of the Audit &
Risk Committee.
Brett is one of Australia’s best known and most successful retailers and entrepreneurs.
He is the Chairman and Founder of BBRC, a private investment group with diverse
global interests across retail, capital management, retail property, beef, and other
innovative ventures. BBRC’s Retail presence extends to 2,000 stores across more
than 35 countries.
Brett is the Chairman of Lovisa Holdings Limited.
Brett was re-appointed as a Non-Executive Director of Accent Group in April 2021
and is a member of the Audit and Risk Committee.
Tim joined BBRC in September 2020 and serves as the Global CFO, covering
all investments and operations worldwide. Tim has over 30 years’ experience in
financial and operational roles across the banking, funds management, real estate
and investment sectors, and has worked in both publicly listed and private enterprises
in Australia.
Tim was appointed as alternate director for Brett Blundy on 2 June 2021.
8. COMPANY SECRETARIES
The following persons were Company Secretaries of Accent Group during the whole of the financial year and up to the date of
this report:
Name
Particulars
Matthew Durbin
Alethea Lee
Matthew is Group Chief Financial and Operations Officer, having had his role
expanded during 2021 to have oversight of and responsibility for shared services of the
Group. He is also a joint Company Secretary. Matthew is a qualified accountant (FCPA)
with 30 years’ experience in retail. Prior to joining Accent Group, he was the CFO and
COO of The PAS Group and has also held executive roles with David Jones in strategy,
financial services and merchandise planning.
Matthew joined Accent Group in November 2017 and was appointed as the joint
Company Secretary in January 2018.
Alethea is Group General Counsel and joint Company Secretary with over 15 years’
experience in corporate governance, strategic corporate transactions, corporate
advisory, and commercial, consumer and competition law. Prior to joining Accent
Group, Alethea held senior legal and governance positions with Fairfax Media Limited
and David Jones Limited.
Alethea joined Accent Group and was appointed as the joint Company Secretary in
June 2021.
15
Annual Report 2023for the year ended 2 July 2023DIRECTORS' REPORT 9. BOARD COMPOSITION AND INDEPENDENCE
The Board recognises the importance of having Directors who possess the combined skills, expertise and experience to
facilitate constructive decision making and follow good governance processes and procedures.
The table below outlines the mix of skills and experience considered by the Board to be important for its Directors to
collectively possess. The Board considers that collectively it has an effective blend of these skills to enable it to discharge
its duties and effectively govern the business and add value in driving the Group’s strategy.
Skill
Description
Strategy and planning
Ability to think strategically and identify and critically assess opportunities and threats
and develop effective strategies in the context of changing market conditions.
Operations
A broad range of commercial and business experience in business systems, practices,
improvements, risk and compliance, sales, technology and human resources.
Capital markets and M&A
Expertise in considering and implementing efficient capital management including
alternative capital sources and distributions, yields and markets.
Finance and tax
Sales and marketing
Experience in all aspects of the negotiation, structuring, risk management and
assessment of both acquisitions and divestments.
The ability to analyse financial statements and reporting, critically assess the financial
performance of the Group, contribute to budget planning and efficient use of capital
and resources, and demonstrable ability to assess, understand and manage tax risks
and obligations.
Clear understanding of retail selling and marketing, developing and implementing
sales and marketing teams and strategies, recruiting, running and incentivising sales
teams, and setting sales budgets and targets.
Retail experience
(physical and digital)
Experience and broad understanding of the physical and online retail footwear
and apparel industry, including market drivers, risks and trends including policies,
competitors, end users, regulatory policy and framework.
People and performance
Appreciation for the best practices in HR planning and management with familiarity
in employment legislation and labour relations, recruitment, compensation,
performance reviews and conflict management.
Technology, data and privacy Expertise in the area of technology that the Group should be aware of and utilising,
including keeping abreast of new and emerging technology.
Governance, compliance and
risk management
Ability to identify key risks to the group in a wide range of areas including legal and
regulatory compliance and monitor risk and compliance management frameworks and
systems.
Knowledge and experience in best practice ASX and Corporations Act, governance
structures, policies and processes.
Director independence
Daniel Agostinelli is a full-time executive and therefore not considered independent.
Of the remaining six non-executive Directors, four are considered by the Board to be independent – David Gordon,
Donna Player, Stephen Goddard and Joshua Lowcock.
Notwithstanding the tenure of Mr Gordon, the Board considers him to be independent and the Company is well
served by Mr Gordon’s deep understanding of Accent Group and its business as a result of his longer tenure. Given
Mr Gordon’s tenure of over 10 years, the Board regularly assesses whether he has become too close to management
to be considered independent. The Board regularly conducts such an assessment, and has recently reconfirmed
Mr Gordon’s independence, on the basis that he is non-executive, not a substantial shareholder, and conducts himself
at arm’s length in his engagement with the Company. He brings his considerable skills and knowledge to bear on matters
before the Board. The Board considers that Mr Gordon’s approach to matters of the Board is always independent in
both appearance and in fact.
Mr Hapgood is related to two of the senior executives of the Company and is not considered independent. However,
as a non-executive director, Mr Hapgood is independent from the day-to-day operating decisions of the business and
therefore able to bring clarity and independent thought to matters before the Board. Due to his familial links with two
executives, Mr Hapgood does not participate in any Board matters relating to management remuneration other than
the CEO.
16
Accent Group Limitedfor the year ended 2 July 2023DIRECTORS' REPORT Mr Blundy is a substantial shareholder and is therefore not considered to be independent. However, as a non-executive
director, he is independent from day-to-day operating decisions of the business and therefore able to bring clarity and
independent thought to all matters before the Board. The Board considers that Mr Blundy draws on his considerable
skillset to act in the best interests of the Company and its shareholders. Similarly, Mr Blundy’s alternate director is not
considered to be independent.
10. MEETINGS OF DIRECTORS
The following table sets out the number of Directors' meetings (committee meetings) held during the year ended
2 July 2023 and the number of meetings attended by the members of the Board or the relevant committee. During the
financial year, six Board Meetings, four Audit and Risk Committee meetings, four People and Remuneration Committee
meetings, one Nominations Committee meeting, and three Digital Strategy Group meetings were held.
Directors have a standing invitation to attend meetings of Board committees of which they are not members.
All Directors receive copies of the agendas, papers and minutes of each Board committee meeting (appropriately
redacted, where necessary).
Full Board
Held Attended
Audit and Risk
Committee
Held Attended
People and
Remuneration
Committee
Held Attended
Digital Strategy
Group
Held Attended
Nominations
Committee
Held Attended
David Gordon
Daniel Agostinelli
Stephen
Goddard
Michael Hapgood
Donna Player
Joshua Lowcock
Brett Blundy
Timothy Dodd
6
6
6
6
6
6
6
6
6
6
6
6
6
6
4
2
4
–
4
–
–
4
–
4
4
–
4
–
–
4
–
4
4
–
4
–
4
–
–
–
Held: represents the number of meetings held during the time the Director held office.
4
–
4
–
4
–
–
–
3
–
–
3
–
3
–
–
0
–
–
3
–
3
–
–
1
–
1
1
1
1
1
–
1
–
1
1
1
1
1
–
11. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
In the Directors’ opinion, there have been no significant changes in the state of affairs of the Group during the year.
12. MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
Apart from the dividend declared as disclosed in Note 25 and the matters described above, no other matters or
circumstance have arisen since 2 July 2023 that have significantly affected, or may significantly affect, the Group's
operations, the results of those operations, or the Group's state of affairs in future financial years.
13. LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
All relevant future developments are outlined in the Chairman and Chief Executive Officer’s Report, Section 5 - Material
business risks of this report and Section 12 - Matters subsequent to the end of the financial year of this report.
14. ENVIRONMENTAL REGULATION
The operations of the Group are not subject to any particular and significant environmental regulation, and did not incur
any significant liabilities under any environmental legislation during the financial year. Disclosures regarding the Group’s
material sustainability-related issues can be found in its Sustainability Report.
INDEMNITY AND INSURANCE OF OFFICERS
15.
The Company has indemnified the Directors and executives of the Company for costs incurred, in their capacity as
a director or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the Directors and executives
of the Company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance
prohibits disclosure of the nature of the liability and the amount of the premium.
17
Annual Report 2023for the year ended 2 July 2023DIRECTORS' REPORT 16. PROCEEDINGS ON BEHALF OF THE COMPANY
No proceedings have been brought or intervened in on behalf of the Company with the leave of the court under
section 237 of the Corporations Act 2001. No person has applied to the court under section 237 of the Corporations
Act 2001 for leave to bring proceedings on behalf of the Company, or to intervene in any proceedings to which the
Company is a party.
17. AUDITOR
ASIC consent was received on 17 January 2023 in relation to the resignation of Deloitte Touche Tohmatsu as the auditor.
In accordance with s327C of the Corporations Act 2001, PricewaterhouseCoopers was appointed by the Board as the
new auditor and will remain in office until the Company’s 2023 Annual General Meeting, during which shareholder
approval will be sought for the appointment.
INDEMNITY AND INSURANCE OF AUDITOR
18.
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
Company or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the
Company or any related entity.
19. NON-AUDIT SERVICES
As set out in Note 29 to the financial statements, the auditor did not provide any non-audit services to the Company
during the financial year.
20.
OFFICERS OF THE COMPANY WHO ARE FORMER PARTNERS
OF PRICEWATERHOUSECOOPERS
There are no officers of the Company who are former partners of PricewaterhouseCoopers.
21. ROUNDING OF AMOUNTS
The Company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with
that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
22. AUDITOR'S INDEPENDENCE DECLARATION
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set
out on page 29.
18
Accent Group Limitedfor the year ended 2 July 2023DIRECTORS' REPORT REMUNERATION REPORT
FY23 REMUNERATION REPORT
Letter from the Chair of the People and Remuneration Committee
Dear Shareholders,
On behalf of Accent Group, I am pleased to present the FY23 Remuneration Report outlining the Group’s remuneration
strategy and framework, and decisions taken by the Board in relation to the remuneration of key management
personnel (KMP).
This report sets out how the Board has approached remuneration in the context of the significant business growth achieved
over the last five years and the record financial results achieved in FY23, which are significantly improved from FY22.
Accent Group experienced, for the first time in three financial years, relatively “normal” trading conditions, including the
normalisation of the global supply chain, and the absence of lockdowns and store closures.
Our Business Strategy
Accent Group continued to invest in the strategic priorities of the business, both for future growth and to continue the
journey as a regional leader in the retailing and distribution of performance and lifestyle footwear and apparel.
The management team continued to drive store network growth and opened 80 new stores during the financial
year. The Group operates over 820 stores across 26 different retail banners with exclusive distribution rights for
17 international brands throughout Australia and New Zealand.
Leveraging off the momentum of normalised trading conditions, and through continued focus on its customers, new
products and growth strategies, the Company has experienced strong performance across all its large core banners.
In addition, the management team’s focus on improving the efficiencies and capabilities in its digital operations has seen
an increase in the profitability of its digital sales. The decision to continue to invest in the business’ growth strategies, rather
than turning to a short-term cost cutting approach over the prior impacted periods, has delivered a record profit result
in FY23.
Our Performance
The record results achieved in FY23 were delivered due to the continued focus and consistent standards of execution of
the management team. These efforts have resulted in achieving Earnings Before Interest and Tax (EBIT) of $138.8m, up
122.8% on FY22 (FY22: $62.3m; FY21: $124.9m EBIT).
The Board considers that the overall performance of Accent Group taken over the past 10 years has been commendable,
delivering shareholders a 10-year compounding total shareholder return of more than 20% to 2 July 2023.
Continuous Improvement in Remuneration Practices
The Company continues to respond to feedback received from Shareholders and their advisors in relation to the
Company’s remuneration practices.
The Board maintains its commitment to continue to improve transparency in the Remuneration Report in relation to
remuneration outcomes. For the FY23 performance period, the primary financial metric for the Short-Term Incentive
(STI) program is reported EBIT (no underlying or other discretionary adjustments have been applied). In addition, and in
response to the feedback received last year, additional detail has been provided in relation to the performance outcomes
for the strategic objective measures in the CEO and CFOO STI outcomes.
In relation to the Company’s LTI program, the Board still considers a single metric program, using Adjusted Diluted
Earnings Per Share (ADEPS) as the measure, to be the best approach for the delivery of a scheme that is both easy to
understand and that also drives a real incentive during each year of the plan. In relation to FY23, no LTI tranche was
granted during the year due to the highly disrupted results base in FY22.
19
Annual Report 20232 July 2023REMUNERATION REPORT FY23 Remuneration Outcomes
The strong financial performance of the Company in FY23 has resulted in the following remuneration outcomes:
– With respect to FY23, the financial performance hurdles required for the payment of 80% of the FY23 short term
incentive were achieved. In addition, the majority of the strategic measures required for the payment of 20% of the
short-term incentive were also achieved. On this basis the Board determined that STI would be paid, with the CEO
and CFOO each achieving 98.25% of the maximum STI payable.
– The Board received shareholder approval in its 2022 Annual General Meeting to exercise discretion in relation
to Tranche 2 LTI grant (FY18-FY22) of the Performance Rights Plan. The approval meant that the performance
condition for 50% of the Tranche 2 rights were deemed as met, and accordingly those rights vested for participants
who were still employed at the testing date which was immediately post release of the FY22 financial results.
– For the remaining 50% of the Tranche 2 performance rights, the Board, with shareholder approval, exercised its
discretion to defer the ADEPS performance condition and the retention condition for these rights to immediately
post release of the FY23 financial results. That is, should the Company achieve 10.94 ADEPS (adjusted earnings per
share) on the testing date immediately post release of the FY23 financial results, the remaining 50% of the Tranche 2
performance rights for each participant, should they still be employed at that date, will vest. On the basis that the
ADEPS achieved in FY23 was 15.62 cents per share, the remaining 50% of the performance rights will vest on
28 August 2023.
– In respect of Tranche 4 (FY20-FY23) of the Company’s Performance Rights Plan (issued in November 2019), the
financial performance measure required at least 10% compounding growth per annum in ADEPS for the period
FY20-FY23. The resulting ADEPS required for FY23 was 13.97 cents per share or more. The actual ADEPS for FY23 is
15.62 cents per share, and on this basis the Board have approved the performance condition for the Tranche 4 rights
as having been met. The time-based condition that requires participant to be employed on 1 July 2024 is still in place
and will be tested at that time.
In conclusion, I am pleased to present the Company’s FY23 Remuneration Report which includes significant additional
disclosure compared to prior years.
Yours faithfully,
David Gordon
Chairman of the People and Remuneration Committee
24 August 2023
20
Accent Group Limited2 July 2023REMUNERATION REPORT
FY23 REMUNERATION REPORT
1. REMUNERATION OVERVIEW
1.1. Details of Management Personnel (KMP)
Key management personnel are those persons having authority and responsibility for planning, directing and controlling
the activities of the entire entity, directly or indirectly, including all Directors.
Executive Director
Daniel Agostinelli
Group Chief Executive Officer
Full year
Senior Executives
Matthew Durbin
Non-Executive Directors
Group Chief Financial and Operating Officer
Full year
David Gordon
Chairman
Michael Hapgood
Stephen Goddard
Donna Player
Joshua Lowcock
Brett Blundy
Timothy Dodd
Director
Director
Director
Director
Director
Alternate Director
Full year
Full year
Full year
Full year
Full year
Full year
Full year
1.2. People and Remuneration Committee (PARCO) and Nomination Committee
The Board has established a People and Remuneration Committee (PARCO) which operates under the delegated
authority of the Board of Directors. The following Non-Executive Directors are members of PARCO:
Mr D Gordon
Independent Non-Executive Committee Chair
Mr S Goddard
Independent Non-Executive Director
Ms D Player
Independent Non-Executive Director
PARCO is authorised by the Board to obtain external professional advice, and to secure the attendance of advisers with
relevant experience and expertise when it considers this necessary.
The Group’s remuneration strategy is designed and implemented on behalf of the Board by PARCO. PARCO then makes
recommendations to the Board on matters relating to remuneration for the entities within the Group. PARCO considers
recruitment, retention and termination policies and procedures, non-executive Directors’ remuneration, executive
Directors and KMP remuneration and incentive policy and awards, and contractual arrangements with KMP.
More detail on the Company’s remuneration policy is provided in the Corporate Governance Statement.
The Nomination Committee comprises all of the Non-Executive Directors of the Company.
The Nomination Committee is charged with overseeing, monitoring and evaluating Board performance, ensuring
appropriate induction and professional development programs for directors, and succession planning. In addition
to making recommendations to the Board on the above, it is also responsible for recommending to the Board (once
identified) the best-qualified candidates for the Board of Directors.
1.3. Use of Remuneration Consultants
Where PARCO determines it may benefit from external advice, it may engage directly with a remuneration consultant,
who reports directly to the Committee. In selecting a suitable consultant, the Committee considers potential conflicts of
interest and requires independence from the Group’s KMP as part of their terms of engagement.
21
Annual Report 20232 July 2023REMUNERATION REPORT 1.4. Board Policies for Determining Remuneration
The Board understands that the performance of the Group is driven through the quality and motivation of its people,
including the CEO and executive team and the approximately 7,500 team members of the Group across Australia
and New Zealand. The Group’s remuneration strategy is designed to attract, motivate and retain high quality and high
performing employees, while ensuring that the interests of employees are in line with the interests of shareholders. Our
strategy is guided by our vision to be the leader in the performance and lifestyle footwear and apparel markets across
Australia and New Zealand, by delivering world-class customer experiences, and harnessing the power of our people,
brands and products. The Board aims to achieve this by setting market competitive remuneration packages that consist
of a mix of fixed remuneration, short-term incentives to reward annual performance and long-term incentives that align
to long term financial performance and long-term shareholder value creation.
Our remuneration framework is guided by the key principles of alignment with:
– Delivery of long-term returns to shareholders through the delivery of sustainable sales and profit growth across the
business
– Delivery of sustainable growth in dividends flowing from the strong cash flows from its defensible and desirable
business
– Maintaining a strong, conservatively geared balance sheet
– Adherence to the Group’s Code of Conduct and Company values
– Encouraging a culture of equality and diversity
The Group’s remuneration reviews take place within three months of the end of each financial year. Prior to these
reviews, the CEO makes recommendations to PARCO regarding the remuneration of each of his direct reports and
the overall remuneration framework for all employees. PARCO meets to consider those recommendations, and also
discusses and recommends the remuneration of the CEO to the Board.
2. REMUNERATION COMPONENTS
The key features of the Executive KMP remuneration structure are outlined below:
Type of remuneration
Fixed remuneration
Short term incentive
Long term incentive
Total Executive Remuneration
Fixed
At risk
How is it set
Fixed remuneration is
set with reference to
market competitive
rates in comparable
ASX listed companies
for similar positions,
adjusted to account for
the experience, ability
and productivity of the
individual employee.
The Group’s STI plan
is tied directly to the
achievement of profit
growth in the case of
KMP, this is based on the
Group as a whole
Refer to section 2.3 for
further details.
How is it delivered
– Base salary
– Superannuation
– Other benefits
(e.g. motor vehicle)
– 100% cash
The Company
has established a
Performance Rights
Plan. There have been
a number of tranches
of performance rights
issued under the plan,
each requiring a target
achievement of 10% (or
greater) compounding
earnings per share
growth over the relevant
performance period.
Refer to section 2.4 for
further details.
– Performance rights
that vest at the end
of the performance
period if vesting
conditions are met
– Escrow periods may
also apply
22
Accent Group Limited2 July 2023REMUNERATION REPORT Type of remuneration
Fixed remuneration
Short term incentive
Long term incentive
Total Executive Remuneration
Fixed
At risk
What is the objective
– Attract and retain key
– Drive annual
talent
– Be competitive
– Support workplace
diversity and equality
profit growth and
shareholder returns
– Reward value
creation over a one-
year period whilst
supporting the long-
term strategy
– Incentivise desired
behaviours in line
with the Group’s risk
appetite
– Support delivery
of the business
strategy and growth
objectives
– Incentivise long-term
value creation
– Drive alignment
of employee and
shareholder interests
2.1. Link between financial performance, shareholder wealth and remuneration
The Group’s executive remuneration is directly related to the performance of the Group, through the linking of
incentives to certain financial measures as detailed previously and shown below.
The financial performance of the Group and shareholder value creation over the last 5 years is also summarised in the
table below.
Revenues ($'m) (inc. Franchisees
and Other Income)
EBITDA ($'m)
EBIT ($'m)
Net profit attributable to the
owners of the Company ($'m)
EPS** (cents)
Shareholder value created:
Market capitalisation ($'m)***
Enterprise value($'m)***
Movement in enterprise value
during the financial year ($'m)
Dividends paid during the
financial year ($'m)
Closing Share Price ($)
DPS**** declared (cents)
FY19
FY20
FY21
FY22*
FY23
Growth YoY
796.8
108.9
80.6
830.1
202.9
94.5
53.9
55.5
10.02
10.28
993.8
242.0
124.9
76.9
14.21
1130.6
213.6
62.3
31.5
5.81
1422.1
298.2
138.8
88.7
16.16
25.8%
39.6%
122.8%
181.6%
178.1%
CAGR
Last
5 years
15.6 %
28.7%
14.6%
13.3%
12.7%
749.6
799.1
797.0
1,496.0
828.2
1,563.0
661.1
780.4
928.1
1,047.7
40.4%
34.3%
5.5%
7.0%
(130.6)
29.1
734.8
(782.7)
267.3
44.7
1.39
8.25
48.8
1.47
9.25
65.0
2.76
11.25
31.2
1.22
6.5
88.0
1.68
17.5
182.1%
37.7%
169.2%
18.5%
4.9%
20.7%
No STI was paid in FY22
*
** Earnings Per Share
*** Based on last ASX trading day prior to financial year end (FY23: 30 June 2023; FY22: 24 June 2022)
**** Dividend Per Share
23
Annual Report 20232 July 2023REMUNERATION REPORT
KMP remuneration and EPS over the last 5 financial years
The graph below shows the relationship between total KMP remuneration and EPS over the past five years and
the relationship between KMP remuneration and Company performance, specifically, the total aggregate total
remuneration of the KMP team for each year from FY19 to FY23 as set out in the Remuneration Report each year.
)
'
m
$
(
n
o
i
t
a
r
e
n
u
m
e
R
P
M
K
6,000
5,000
4,000
3,000
2,000
1,000
0
17.00
16.00
15.00
14.00
13.00
12.00
11.00
10.00
9.00
8.00
7.00
6.00
5.00
4.00
3.00
2.00
)
s
t
n
e
c
(
S
P
E
FY19
FY20
FY21
FY22*
FY23
Fixed
STI
LTI
EPS
*
In FY22 no STIs were paid to KMPs
Company financial performance and share price
The long-term effectiveness of the Company’s performance-related remuneration strategy and the strong alignment
between financial performance and executive remuneration is demonstrated by the relative outperformance of the
Company’s share price over the last 10 years.
FY19 to FY23 Revenues ($m)
FY19 to FY23 EBIT ($m)
1,422
1,131
994
797
830
1,600
1,400
1,200
1,000
800
600
400
200
0
FY19
FY20
FY21
FY22
FY23
FY19 to FY23 EPS (Cents)
16.16
14.21
10.02
10.28
5.81
18
16
14
12
10
8
6
4
2
0
24
139
125
95
81
62
FY19
FY20
FY21
FY22
FY23
FY19 to FY23 DPS & EPS (Cents)
17.50
16.16
14.21
11.25
10.02
10.28
9.25
8.25
6.50
5.81
160
140
120
100
80
60
40
20
0
18
16
14
12
10
8
6
4
2
0
FY19
FY20
FY21
FY22
FY23
FY19
FY20
FY21
FY22
FY23
DPS
EPS
Accent Group Limited2 July 2023REMUNERATION REPORT
The following chart demonstrates the 10-year outperformance of the Company’s share price relative to the ASX200.
3.50
3.00
2.50
2.00
1.50
1.00
0.50
0
FY13
+204.5%
+52.9%
FY14
FY15
FY16
FY17
FY18
FY19
FY20
FY21
FY23
Source: FactSet. Market data as at 30 June 2023
1. ASX200 share price performance rebased to AX1 from 1 July 2013.
AX1
ASX200
Remuneration Mix
The total remuneration for the KMP comprises both fixed remuneration and at-risk components in STI and LTI. The table
shown below indicates the potential remuneration mix based on the fixed remuneration as of 2 July 2023 with STI and
LTI presented at maximum and target opportunities respectively.
Executive KMP
Daniel Agostinelli
Matthew Durbin
Fixed
Remuneration
33.3%
33.3%
STI
33.3%
33.3%
LTI
33.3%
33.3%
Total
100%
100%
33.3%
33.3%
33.3%
33.3%
Daniel
Agostinelli
Matthew
Durbin
33.3%
33.3%
Fixed
STI
LTI
Fixed
STI
LTI
25
Annual Report 20232 July 2023REMUNERATION REPORT 2.2. Fixed Remuneration
Fixed remuneration is set with reference to market competitive rates in comparable ASX listed companies for
similar positions, adjusted to account for the experience, ability and productivity of the individual employee. Fixed
remuneration includes base salary along with any fringe benefits to the employee and statutory superannuation
contributions.
To ensure appropriate and competitive remuneration for FY23, PARCO considered the remuneration levels and
structures for the CEO and CFOO with reference to:
– external listed comparable remuneration benchmarks
– the competency and skillsets of the individuals and their performance over the long term
– the scarcity of talent and the importance and value of retaining key executives
– changes in the complexity, organisational structure and geographical spread of the Company
In respect of FY23 and as advised in the FY22 Remuneration Report, given the challenging trading conditions
and resultant financial results that the Company had to navigate in the wake of COVID-19, the Board considered
it appropriate that no increase be applied to the fixed remuneration of the CEO and CFOO.
For FY24, the Company retained Morrow Sodali to provide an independent report on comparable remuneration
benchmarks and in addition to the factors outlined above, consideration was also given to:
– the growth that the management team has continued to drive over the last two years
– no increases having been applied to CEO or CFOO remuneration for FY23
– the significant increase in the Group’s net profit in FY23, which was a record profit year
In consideration of these factors for FY24, the fixed remuneration of the CEO has been increased by 13.3% and by 7.7%
for the CFOO effective from 1 July 2023. Inclusive of the 1 July 2023 increase, since FY19, base CEO remuneration has
increased by 41.7% and CFOO remuneration by 27.3%. These increases are in context of a 79% increase in revenues and a
65% increase in net profit after tax over the same period.
2.3. STI Plan
Purpose and Objectives
The Group’s STI program is designed to drive the Company’s objective of delivering profit growth and shareholder
returns, whilst also ensuring the achievement of strategic objectives that are aligned with current and future profit
growth. KMP have a significant proportion of their STI tied directly to the achievement of profit growth, either for
the Group as a whole or a relevant business unit or both (as the case may be). All STI payments are also subject to an
assessment by PARCO of individual non-financial performance measures related to strategy implementation, leadership
and behaviours consistent with the Group’s values and corporate philosophy.
The Group believes that by implementing the STI program, KMP are best positioned to effectively carry out their duties
in achieving the strategic objectives of the company. The Group also expects KMP to continue to drive the values
engrained within the Group’s culture and Code of Conduct, acting in the best interests of shareholders and other
stakeholders and in turn driving success for the Group along with long term shareholder value creation.
26
Accent Group Limited2 July 2023REMUNERATION REPORT Structure
The STI program in FY23 was structured as follows:
Performance period
12 months
FY23 STI Plan Structure
Opportunity
CEO – 100% of fixed remuneration at maximum
CFOO – 100% of fixed remuneration at maximum
How the STI is paid
Cash
Performance measures / KPIs
1. EBIT growth – 80%
2. Measurable strategic objectives – 20%
Performance conditions
Financial Condition – 80% Weighting
– Achievement of Accent Group EBIT budget
– The Group EBIT budget was set at an increase of greater than 100%
on FY22 actual Group EBIT of $52.8m (pre AASB16)
– Achievement of aged inventory of less than 2.5% of total inventory
Strategic Objectives condition – 20% Weighting
– The STI award is also subject to achieving the following quantitative strategic
objectives, with equal weighting distributed across the three objectives.
1.
New stores: Achieve sales and EBIT performance better than 95% of budget
and aggregate new store ROIC benchmarks. Weighting 5%
Vertical sales: Achieve vertical sales >$100m, Weighting 5% awarded
for performance above $100m then a sliding scale to 10% awarded for
performance at $110m or above. Gross margin and vertical mix must be an
improvement on FY22
Culture and sustainability: Achieve year-on-year improvement in the team
engagement survey scores in the areas of Communication, Learning, Culture,
Values and survey action. Weighting 5%
2.
3.
How is STI assessed?
What happens when KMP
ceases employment?
Malus and Clawback
PARCO reviews the CEO’s performance against the performance targets and
objectives set for that year. The CEO assesses the performance of the senior
executive team, with the CEO having oversight of his direct reports and the day-to-
day functions of the Company.
The performance assessment of the CEO and CFOO are reviewed by PARCO and
then recommended for Board approval.
If the employment of KMP is terminated for cause, no STI will be paid.
If the KMP resigns or is considered a good leaver prior to the completion of
the performance period, the STI may be granted on a pro rata basis in relation
to the period of service completed, subject to the discretion of the Board and
conditional upon the individual performance of the KMP.
In the event of serious misconduct or a material misstatement in the Group’s
financial statements, the Board may cancel the STI payment and may also claw
back STI payments paid in previous financial years, to the extent this can be done
in accordance with the law.
27
Annual Report 20232 July 2023REMUNERATION REPORT Is there any STI deferral?
FY23 STI Plan Structure
The STI awards are currently delivered fully in cash and vest at the end of the one-
year period, subject to the achievement of the performance conditions. The Board
periodically reviews the appropriateness of a deferral of a portion of the STI into
equity. After this year’s review, the Board determined that a deferral is currently
not appropriate for the Group in light of the size of the Group and the KMP team,
as well as the CEO’s current equity ownership in the Company consisting of
18,003,001 shares which represent 3.26% of issued capital and an interest in a
further 5,786,061 performance rights through the Performance Rights Plan (PRP).
The Board is of the view that the objectives of a deferral (i.e. retention and risk
management) are currently satisfied through the KMPs’ participation in the PRP
which vests progressively between FY23-FY25 and existing share ownership.
STI outcomes FY23
The FY23 year has been a year of record financial results. Compared to FY22, revenue was up 25.8%, EBIT was up 122.8%
and EPS was up 178.1%.
Financial Condition
80% of award based on the achievement of the Group EBIT Budget: Achieved
EBIT for FY23 exceeded budget and as a result met the requirement for the payment of this component.
Strategic Objectives
20% of the STI award for the CEO and CFO is based on measurable strategic objectives. Performance against these
objectives along with the weighting applied to each objective is outlined in the table below.
Based on the performance against these strategic objectives 18.25% of a total opportunity of 20% was awarded.
Objective
Outcomes
Achieved
New stores:
– Achieve >95% of
– Achieved
budgeted sales and EBIT
Vertical Product
Sales
Culture and
Sustainability:
– Aggregate ROIC
– Achieved
– Vertical product sales
– Partial
>$100m (5% allocation)
sliding scale to $110m
(10% allocation)
achievement
– Vertical product gross
margin % > FY22
– Achieved
– Vertical Product mix >
– Achieved
FY22
– Improvement in the
communication &
learning engagement
score
– Improvement in the
culture and values
engagement score
– Achieved
– Achieved
– Improvement in survey
– Achieved
action score
Y
Y
P
Y
Y
Y
Y
Y
Total
28
STI allocation
Weighting
STI outcome
2.5%
2.5%
2.5%
10.0%
2.5%
8.25%
3%
3%
1%
1%
1%
1%
20.0%
18.25%
Accent Group Limited2 July 2023REMUNERATION REPORT The table below sets out the performance of the CEO and CFOO in relation to the STI program:
Financial
Performance
target
Performance
outcome
Strategic
objectives
outcome
Maximum STI
available
Achievement*
FY22
FY23
CEO – Daniel
Agostinelli
Group EBIT
Budget
Achieved
80% achieved
CFOO – Matthew
Durbin
Group EBIT
Budget
Achieved
80% achieved
Partial
achievement
18.25%
Partial
achievement
18.25%
100% of fixed
remuneration
100% of fixed
remuneration
0%
98.25%
0%
98.25%
* Achievement represents the amount achieved as a percentage of the maximum available
2.4. LTI Plan
Purpose and Objectives
The Company has implemented an LTI program through the Performance Rights Plan (PRP), first approved by
shareholders at the Company’s 2016 Annual General Meeting.
The objectives of this plan are:
– to drive long term value creation for shareholders; and
– to attract, motivate and retain key employees, and for them to share in the value created for all shareholders of the
Company.
The PRP operates under the rules most recently approved by shareholders at the Company's 2019 Annual General
Meeting. As of 2 July 2023, there are 23,458,478 rights issued under the PRP which remain outstanding.
The current Tranches 2-5 of the PRP have a single financial performance measure. For Target performance, the
achievement of 10% or greater compounding earnings per share growth over the relevant performance period is
required. In respect of Tranche 6 issued in FY22, Target performance requires the achievement of 11% or greater
compounding adjusted diluted earnings per share growth over the relevant performance period. The Board
periodically evaluates the impact and relevance of this performance measure and considers it to be effective in
achieving the stated objectives since the plan has been successful in driving strong performance since its inception
in FY17.
LTI Outcomes FY23
CEO & CFOO FY22 Long Term Incentive
For FY23, the Board determined not to issue a new tranche of performance rights issued under the PRP. Given the highly
impacted FY22 year it was determined that it was inappropriate to use the FY22 results as the base for a future rights plan.
There was a partial vesting of performance rights issued under Tranche 2 FY18-FY22 PRP during FY23. Further details
are set out below.
Tranche 2 (FY18-FY22) of the PRP
The FY18-FY22 performance rights plan (Tranche 2, issued in December 2017), included the following performance and
retention conditions:
– a performance condition that at least 10% compound ADEPS growth per annum be achieved over the performance
period FY18-FY22 such that the required ADEPS in the FY22 year was 10.94 cents per share; and
– a retention condition that the participant had to be employed at the testing date immediately post release of the
FY22 financial results.
For reasons which are set out in detail in the FY22 Remuneration Report and the 2022 Notice of Meeting, the Board,
following the shareholder approval obtained at its 2022 Annual General Meeting, exercised certain discretions in
respect of Tranche 2, being:
a)
b)
in respect of up to 50% of the Performance Rights, to waive the performance-based vesting condition that applied to
those Performance Rights, with the retention condition requiring the participant to be employed on 18 August 2022
remaining in place;
in respect of the remaining 50% of the Performance Rights, to defer the testing date of the performance condition
and retention condition to immediately following the release of the Company’s FY23 financial results for FY23,
noting that the performance condition requires ADEPS for FY23 to be above 10.94 cents per share; and
c)
in respect of up to 100% of the Performance Rights, to extend the period for exercise of any vested Performance
Right by up to 18 months from the date of vesting.
29
Annual Report 20232 July 2023REMUNERATION REPORT The exercise of those discretions impacted KMP in the following ways:
KMP
Daniel Agostinelli
Matthew Durbin
Total Tranche 2
performance rights
issued (December
2017)
50% of Tranche 2
performance rights
vested immediately
post release of FY22
financial results
50% of Tranche 2
rights – testing
date deferred to
immediately post
release of the FY23
financial results
5,500,000
2,750,000
3,000,000
1,500,000
2,750,000
1,500,000
50% of the Tranche 2 rights that had the testing date deferred (Deferred Rights) to immediately post the release of the
FY23 results. Based on the FY23 results the achieved ADEPS of 15.62 cents per share is above the required performance
condition of 10.94 cents per share. Subject to the participants meeting the retention condition, the Deferred Rights are
expected to vest on 28 August 2023.
Tranche 4 (FY20-FY23) of the PRP
The FY20-FY23 PRP (Tranche 4, issued in November 2019), included the following performance and retention
conditions:
– a performance condition that at least 10% compound ADEPS growth per annum be achieved over the performance
period FY20-FY23 with the required ADEPS per share to be achieved in FY23 being at least 13.97 cents per share;
and
– an additional 1-year retention condition requiring the participant being employed as at 1 July 2024.
In respect of FY23, the ADEPS achieved was 15.62 cents per share, which is above the ADEPS hurdle of 13.97 cents per
share. On this basis, the performance condition for Tranche 4 has been deemed as met.
The retention condition still requires the participants to be employed on 1 July 2024 for the performance rights to vest.
2.5. Other Information
Key terms of executive employment contracts
The remuneration and other terms of employment of the CEO and CFOO are set out in individual employment contracts
that are not fixed-term contracts.
Name
Daniel Agostinelli
Matthew Durbin
Notice period/termination payment
12 months’ notice by either party (or payment in lieu)
6 months’ notice by either party (or payment in lieu)
2.6. Non-Executive Directors Remuneration
On an annual basis, PARCO considers the fees payable to Non-Executive Directors. When considering the level of
fees, the Committee undertakes a review of benchmark fees paid by similar organisations and may access independent
advice as well as drawing on the knowledge and experience of its members. PARCO makes recommendations on Non-
Executive Director fees to the Board. Non-Executive Directors can choose, subject to certain restrictions, the amount
of their fees allotted to superannuation.
The aggregate fee limit of $1,200,000 was approved by shareholders at the 2019 AGM. There was no increase to Non-
Executive Directors’ remuneration in FY23.
Board Chairman
Audit and Risk Committee Chairman
Non-Executive Directors
30
2023
$
297,000
127,710
118,800
Accent Group Limited2 July 2023REMUNERATION REPORT REMUNERATION OF KEY MANAGEMENT PERSONNEL
2.7. Table of remuneration to KMP (calculated in accordance with Australian Accounting Standards)
Short-term benefits
Long-term
benefits
Post
employment
benefits
Share-based
payments
Cash salary
and fees1
$
Year
Cash
bonus2
$
Other
monetary
$
Accrued
leave
benefits1
$
Super-
annuation
$
Equity-
settled1,3
$
Total
$
Non-executive
Directors
D Gordon
S Goddard
M Hapgood
D Player
J Lowcock
B Blundy
T Dodd
Executive Directors
and other KMP
D Agostinelli
M Durbin
2023
269,500
2022
2023
2022
2023
2022
2023
269,500
115,575
116,100
118,800
113,763
107,511
2022
108,000
2023
118,800
2022
2023
2022
2023
2022
118,800
118,800
118,800
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
27,500
27,500
12,135
11,610
-
-
11,289
10,800
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
297,000
297,000
127,710
127,710
118,800
113,763
118,800
118,800
118,800
118,800
118,800
118,800
-
-
2023 1,279,943
1,473,750
10,580
2022
1,381,885
-
2023
2022
584,192
638,625
588,981
-
117
-
-
131,329
188,937
58,819
53,856
27,500
874,613
3,797,715
27,500
1,177,281
2,775,720
27,500
387,700 1,696,836
27,500
561,116
1,231,453
Total
2023
2,713,121
2,112,375
10,580
190,148
105,924
1,262,313 6,394,461
2022 2,815,829
-
117
242,793
104,910
1,738,397 4,902,046
1
2
3
Cash salary and fees now relate to base salary excluding annual leave but including an accrual for annual leave not taken. Long-term benefits relate to
statutory annual leave and long service leave accruals and the FY22 reported numbers for annual leave and long service have been adjusted to reflect
these changes. Equity settled share-based payments for FY22 have been adjusted and reflect share-based payment expense recognition over the
appropriate vesting period.
Cash bonuses relate to STI bonuses issued on the basis of the achievement of relevant performance measures for the year ended 2 July 2023 and
were approved by PARCO and the Board in August 2023. The proposed payment date is 14 September 2023.
Share based payments represent performance rights. The fair value of performance rights is measured at grant date and progressively allocated to
profit and loss over the vesting period. The amount included in remuneration above may not be indicative of the benefit (if any) that key management
personnel may ultimately realise should the performance rights vest.
31
Annual Report 20232 July 2023REMUNERATION REPORT PERFORMANCE RIGHTS PLAN (PRP)
The table below sets out the details of KMP Performance Rights for unvested plans issued under the Company’s PRP:
Issue
Rights Grant Date
Number of
Exercise
Price
Vesting
Date
Vesting
condition % Achieved
Number
of rights
exercised
Number
of rights
forfeited
Current
balance
Tranche 2
8,500,000
3 Oct 17
Nil
50% vested
post release
of FY22
financial
results
50% post
release
of FY23
financial
results
ADEPS
hurdle1
To be
determined 4,250,000
0 4,250,000
Tranche 4
1,136,646
30 Nov 19
Nil
1 Jul 24
Tranche 5
1,748,408
18 Nov 20
Nil
1 Sep 24
Tranche 6
1,459,276
27 Sep 21
Nil
1 Sep 25
ADEPS
hurdle
To be
determined
ADEPS
hurdle –
sliding scale
ADEPS
hurdle –
sliding scale
To be
determined
To be
determined
0
0
0
0
1,136,646
0
1,748,408
0
1,459,276
Total
12,844,330
4,250,000
0 8,594,330
1
As noted above, having received shareholder approval, the Board exercised its discretion and determined that (i) the ADEPS performance condition
for 50% of the Tranche 2 performance rights had been deemed as met, and (ii) deferred the testing date for the remaining 50% of the Tranche 2
performance rights by one year to immediately post release of FY23 financial results.
The table below sets out the detailed conditions for each tranche of KMP performance rights for unvested plans
Issue
Current
Balance
ADEPS Hurdle – Expressed as
CAGR over the performance period
Stretch –
150% of award
Target –
100% of award
Threshold –
50% of award
Retention condition
Tranche 2
4,250,000
Tranche 4
1,136,646
Tranche 5
1,748,408
Tranche 6
Total
1,459,276
8,594,330
NA
NA
8%
9%
10%
10%
10%
11%
Must be employed on the date
immediately following release of the
FY23 financial results
Must be employed and not have
resigned at 1 July 24
Must be employed and not have
resigned at 1 September 24
Must be employed and not have
resigned at 1 September 25
NA
NA
15%
16%
32
Accent Group Limited2 July 2023REMUNERATION REPORT
PERFORMANCE RIGHTS OF THE CEO AND CFOO
The unvested Performance Rights of the CEO and CFOO under the PRP are set below:
Balance as
at 26 June
2022
Granted
Vested
Forfeited
Unvested
balance as at
2 July 2023
Value at
grant date
Minimum
value to vest
Maximum
Value to vest
CEO – Daniel
Agostinelli
Tranche 1
Tranche 2
Tranche 3
Tranche 4
Tranche 5
Tranche 6
Total
CFOO – Matthew
Durbin
-
-
-
-
-
5,500,000
- 2,750,000
- 2,750,000 $1,493,748
-
795,031
1,222,930
1,018,100
8,536,061
-
-
–
–
-
-
–
–
-
-
–
–
-
-
795,031 $1,042,724
1,222,930 $1,638,692
1,018,100 $1,759,019
- 2,750,000
- 5,786,061 $5,934,183
Tranche 1
Tranche 2
Tranche 3
Tranche 4
Tranche 5
Tranche 6
Total
-
-
-
-
-
-
3,000,000
- 1,500,000
- 1,500,000 $786,555
-
341,615
525,478
441,176
-
-
-
-
-
-
-
-
-
-
-
-
-
-
341,615 $448,046
525,478
$704,126
441,176
$762,240
4,308,269
- 1,500,000
- 2,808,269 $2,700,967
-
-
-
-
-
-
$9,655
–
$208,317
$635,458
- $1,418,471
- $2,271,901
-
-
-
-
-
-
-
-
$5,084
–
$89,511
$273,049
$614,670
$982,314
Refer to section 2.7 above for the proportion of the CEO and CFOO’s remuneration that represents the PRP allocation
for the year ended 2 July 2023.
2.8. Loans and Transactions with Key Management Personnel
Placed Pty Ltd, a company associated with Daniel Agostinelli and Brett Blundy, provided recruitment services to the
Group amounting to $54,081 (26 June 2022: $150,858).
Lyneliz Pty Ltd, a company associated with Daniel Agostinelli, provided storage services to the Group amounting to
$60,000 (26 June 2022: $60,000).
Boxed to Go (JOA5 Investments Pty Ltd), a company associated with Daniel Agostinelli, provided corporate gift boxes
to the Group amounting to $1,750 (26 June 2022: $47,855).
There were no loans outstanding and no balances receivable or owing at the reporting date between the Company,
or any of its subsidiaries, and its KMP (including their related parties).
33
Annual Report 20232 July 2023REMUNERATION REPORT SHAREHOLDINGS OF KMP
3.
The number of shares in the Company held during the financial year by each Director and other members of key
management personnel of the Group, including their related parties, is set out below:
Name
Daniel Agostinelli
Matthew Durbin
David Gordon
Stephen Goddard
Donna Player
Michael Hapgood
Joshua Lowcock
Brett Blundy
Timothy Dodd
Total
Balance at
start of year
Received on
exercise of
performance
rights
Disposals
Balance at
end of year
18,000,224
2,750,000
2,747,223
18,003,001
100,000
1,500,000
550,000
1,050,000
2,599,034
50,000
50,000
7,500,000
18,105
107,502,463
30,046
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,599,034
50,000
50,000
7,500,000
18,105
107,502,463
30,046
135,849,872 4,250,000
3,297,223 136,802,649
The Remuneration Report has been audited as required by section 308(3c) of the Corporations Act 2001.
This Directors’ Report, which includes the Remuneration Report, is made in accordance with a resolution of Directors,
pursuant to section 298(2)(a) of the Corporations Act 2001.
On behalf of the Directors
David Gordon
Chairman
24 August 2023
34
Accent Group Limited2 July 2023REMUNERATION REPORT
AUDITOR’S INDEPENDENCE DECLARATION
Auditor’s Independence Declaration
As lead auditor for the audit of Accent Group Limited for the period ended 2 July 2023, I declare that to
the best of my knowledge and belief, there have been:
(a)
no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
(b)
no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Accent Group Limited and the entities it controlled during the period.
Alison Tait Milner
Partner
PricewaterhouseCoopers
Melbourne
24 August 2023
35
Annual Report 2023
STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
Revenue
Interest revenue
Expenses
Cost of sales
Distribution
Marketing
Occupancy
Employee expenses
Other
Depreciation, amortisation and impairment
Finance costs
Profit before income tax expense
Income tax expense
Profit after income tax expense for the year
Other comprehensive income
Items that may be reclassified subsequently to profit or loss
Net change in the fair value of cash flow hedges taken to equity, net of tax
Foreign currency translation
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
Profit for the year is attributable to:
Owners of Accent Group Limited
Total comprehensive income for the year is attributable to:
Owners of Accent Group Limited
Basic earnings per share
Diluted earnings per share
Consolidated
Note
2 Jul 2023
$'000
26 Jun 2022
$'000
6
7
7
7
7
7
8
38
38
1,420,688
1,129,797
1,434
786
(624,415)
(504,992)
(61,678)
(51,266)
(50,799)
(23,930)
(51,431)
(17,581)
(294,670)
(234,516)
(66,975)
(56,446)
(159,433)
(151,289)
(20,606)
(16,470)
119,616
46,592
(30,963)
(15,128)
88,653
31,464
(3,432)
(6,507)
(9,939)
78,714
7,364
(1,803)
5,561
37,025
88,653
88,653
31,464
31,464
78,714
78,714
Cents
16.16
15.62
37,025
37,025
Cents
5.81
5.59
The above statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes
36
Accent Group Limitedfor the year ended 2 July 2023STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME STATEMENT OF FINANCIAL POSITION
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Lease receivable
Derivative financial instruments
Other current assets
Current tax receivable
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Lease receivable
Intangibles
Derivative financial instruments
Net deferred tax assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Deferred revenue
Provisions
Borrowings
Lease liabilities
Total current liabilities
Non-current liabilities
Provisions
Deferred revenue
Borrowings
Lease liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Retained earnings
Total equity
Consolidated
Note
2 Jul 2023
$'000
26 Jun 2022
$'000
9
10
11
12
13
14
15
11
16
12
17
18
19
20
21
22
20
19
21
22
23
24
29,722
34,060
239,606
9,324
3,738
6,373
32
49,734
47,303
241,631
8,349
13,569
8,592
6,011
322,855
375,189
140,527
281,393
10,231
382,191
–
17,331
139,188
299,884
12,346
374,741
1,383
13,103
831,673
840,645
1,154,528
1,215,834
110,816
143,148
14,377
23,813
9,954
132,130
291,090
840
5,190
139,350
276,846
422,226
713,316
441,212
11,089
15,595
19,884
123,406
313,122
857
4,593
149,132
307,904
462,486
775,608
440,226
390,926
390,926
36,956
13,330
36,653
12,647
441,212
440,226
The above statement of financial position should be read in conjunction with the accompanying notes
37
Annual Report 2023as at 2 July 2023 STATEMENT OF CHANGES IN EQUITY
Consolidated
Foreign
currency
translation
reserve
$'000
Hedging
reserve - cash
flow
hedges
$'000
Share-based
payments
reserve
$'000
Issued
capital
$'000
Retained
earnings
$'000
Total equity
$'000
Balance at 28 June 2021
390,616
9,512
(1,797)
18,309
12,340
428,980
–
–
(1,803)
7,364
(1,803)
7,364
–
–
–
31,464
31,464
–
5,561
31,464
37,025
–
–
–
–
–
–
5,068
–
–
–
–
(31,157)
12,647
5,068
310
(31,157)
440,226
390,926
7,709
5,567
23,377
Profit after income tax expense for
the year
Other comprehensive income for
the year, net of tax
Total comprehensive income for
the year
Transactions with owners in their
capacity as owners:
Share–based payments
Treasury share payments
Dividends paid (Note 25)
Balance at 26 June 2022
Profit after income tax expense for
the year
Other comprehensive income for
the year, net of tax
Total comprehensive income for
the year
Transactions with owners in their
capacity as owners:
Share–based payments
Dividends paid (Note 25)
Balance at 2 July 2023
–
–
–
–
310
–
–
–
–
–
–
Consolidated
Foreign
currency
translation
reserve
$'000
Hedging
reserve - cash
flow
hedges
$'000
Share-based
payments
reserve
$'000
Issued
capital
$'000
Retained
earnings
$'000
Total equity
$'000
Balance at 27 June 2022
390,926
7,709
5,567
23,377
12,647
440,226
–
–
(6,507)
(3,432)
(6,507)
(3,432)
–
–
–
88,653
88,653
–
(9,939)
88,653
78,714
390,926
1,202
2,135
33,619
–
–
–
–
10,242
–
–
(87,970)
13,330
10,242
(87,970)
441,212
The above statement of changes in equity should be read in conjunction with the accompanying notes
38
Accent Group Limitedfor the year ended 2 July 2023 STATEMENT OF CASH FLOWS
Cash flows from operating activities
Receipts from customers and franchisees (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Interest received
Interest and other finance costs paid
Interest on lease liabilities
Income taxes paid
Net cash from operating activities
Cash flows from investing activities
Payment for purchase of businesses, net of cash acquired
Payments for property, plant and equipment (1)
Payments for intangibles
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares, net of transaction costs
Proceeds from borrowings
Repayment of borrowings
Payments for debt transaction costs
Payment of lease liabilities
Dividends paid
Net cash used in financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at the end of the financial year
Consolidated
Note
2 Jul 2023
$'000
26 Jun 2022
$'000
37
34
16
1,583,248
1,247,779
(1,287,771)
(1,072,871)
631
(6,616)
(12,900)
(20,004)
–
(3,647)
(11,495)
(19,420)
256,588
140,346
(6,098)
(2,704)
(26,220)
(38,809)
(8,143)
(7,088)
(40,461)
(48,601)
–
–
310
129,875
(20,000)
(61,000)
–
(984)
(127,445)
(113,084)
25
(87,970)
(31,157)
(235,415)
(76,040)
(19,288)
49,734
(724)
29,722
15,705
34,084
(55)
49,734
(1) Payments for property, plant and equipment are net of cash fitout contributions received from landlords of $21,534,000 (2022: $33,590,000)
The above statement of cash flows should be read in conjunction with the accompanying notes
39
Annual Report 2023for the year ended 2 July 2023 NOTES TO THE FINANCIAL STATEMENTS
NOTE 1. GENERAL INFORMATION
The financial statements cover Accent Group Limited ('Company', 'parent entity' or 'Accent') as a Group consisting of
Accent Group Limited and the entities it controlled at the end of, or during, the year ('Group'). The financial statements
are presented in Australian dollars, which is Accent's functional and presentation currency.
Accent is a listed public company limited by shares, listed on the Australian Securities Exchange (‘ASX’), incorporated
and domiciled in Australia. Its registered office and principal place of business is:
2/64 Balmain Street
Richmond VIC 3121
A description of the nature of the Group's operations and its principal activities are included in the directors' report,
which is not part of the financial statements.
The financial statements were authorised for issue, in accordance with a resolution of directors, on 24 August 2023.
The directors have the power to amend and reissue the financial statements.
NOTE 2. BASIS OF PREPARATION
These general purpose financial statements have been prepared in accordance with Australian Accounting Standards
and Interpretations issued by the Australian Accounting Standards Board ('AASB') and the Corporations Act 2001,
as appropriate for for-profit oriented entities. These financial statements also comply with International Financial
Reporting Standards as issued by the International Accounting Standards Board ('IASB').
The financial statements have been prepared under the historical cost convention, except for, where applicable,
derivative financial instruments which have been fair valued at balance date and share-based payments which have been
measured at fair value at grant date.
The current reporting period, 27 June 2022 to 2 July 2023, represents 53 weeks and the comparative reporting period is
from 28 June 2021 to 26 June 2022 which represents 52 weeks. From time to time, management may change prior year
comparatives to reflect classifications applied in the current year.
Critical accounting estimates
The preparation of consolidated financial statements requires the Group to make estimates and judgements that affect
the application of policies and reported amounts. The estimates which could cause a significant risk of causing a material
adjustment to the carrying amount of assets and liabilities within the next 12 months are disclosed in the following notes:
– Note 10
– Note 14
– Note 15
– Note 16
– Note 34
Inventories
Property, plant and equipment
Right-of-use-assets
Intangibles
Business combinations
Principles of consolidation
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Accent Group Limited
as at 2 July 2023 and the results of all subsidiaries for the year then ended. A list of subsidiaries at year end is contained in
Note 35. Supplementary information about the parent entity is disclosed in Note 33.
In preparing the consolidated financial statements, all intercompany balances and transactions, income and expenses
and profits and losses resulting from intragroup transactions have been eliminated. Subsidiaries are consolidated
from the date on which control is obtained to the date on which control is disposed. The acquisition of subsidiaries
is accounted for using the acquisition method.
If the Group loses control over a subsidiary, it derecognises the assets including goodwill, liabilities and non-controlling
interest in the subsidiary together with any cumulative translation differences recognised in equity. The Group
recognises the fair value of the consideration received and the fair value of any investment retained together with any
gain or loss in profit or loss.
Foreign currency transactions
Foreign currency transactions are translated into Australian dollars using the exchange rates prevailing at the dates of
the transactions. Foreign exchange gains and losses resulting from the settlement of such transactions and from the
translation at financial year-end exchange rates of monetary assets and liabilities denominated in foreign currencies are
recognised in the income statement.
40
Accent Group Limitedfor the year ended 2 July 2023 NOTE 2. BASIS OF PREPARATION (CONTINUED)
Foreign operations
The functional currencies of overseas subsidiaries are listed in Note 35. The assets and liabilities of overseas subsidiaries
are translated into Australian dollars at the rate as at reporting date and the income statements are translated at
the average exchange rates for the year. The exchange differences arising on the retranslation are taken directly to
a separate component of equity.
Rounding of amounts
The Company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and
Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with
that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.
Comparatives have been reclassified where appropriate to ensure consistency and comparability with the current
period.
NOTE 3. ACCOUNTING POLICIES
Significant and other accounting policies adopted in the preparation of the financial statements are provided throughout
the notes. These policies have been consistently applied to all the years presented, unless otherwise stated.
NOTE 4. NEW OR AMENDED ACCOUNTING STANDARDS AND INTERPRETATIONS ADOPTED
In the current year, the Group has adopted all of the following new and revised Accounting Standards and Interpretations
issued by the Australian Accounting Standards Board ('AASB') that are relevant to its operations and mandatory for the
current annual reporting period.
Any new or amended Accounting Standards or Interpretations that are not yet mandatory have not been early adopted.
New and revised Standards and amendments thereof and Interpretations effective for the current year that are relevant
to the Group include:
– Amendments to AASB 137 Onerous Contracts – Cost of Fulfilling a Contract
– Annual Improvements to IFRS Standards 2018-2020
– Amendments to AASB 116 Property, Plant and Equipment: Proceeds Before Intended Use
– Amendments to AASB 3 Reference to the Conceptual Framework
The above standards and interpretations have not led to any changes to the Group's accounting policies or had any other
material impact on the financial position or performance of the Group.
NOTE 5. OPERATING SEGMENTS
The Group is required to determine and present its operating segments based on the way in which financial information
is organised and reported to the chief operating decision-makers (CODMs). The CODMs have been identified as the
Board of Directors on the basis they make the key operating decisions of the Group and are responsible for allocating
resources and assessing performance.
Key internal reports received by the CODMs, primarily the management accounts, focus on the performance of the
Group as a whole. The CODMs assess the performance of the Group based on a measure of EBIT (earnings before
interest and tax) prior to the impact of AASB 16 Leases and non-operating intercompany charges.
The Group has considered its internal reporting framework, management and operating structure and the directors’
conclusion is that the Group has one operating segment.
41
Annual Report 2023for the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 6. REVENUE
Sales revenue
Sales to customers
Royalties and other franchise related income
Other revenue
Marketing levies received from TAF stores
Other revenue
Revenue
The following table summarises sales to customers by geographic location of the Group:
Australia
New Zealand
Sales to customers
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
1,393,257
1,103,488
15,758
14,264
1,409,015
1,117,752
9,669
2,004
11,673
9,723
2,322
12,045
1,420,688
1,129,797
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
1,238,523
972,492
154,734
130,996
1,393,257
1,103,488
Recognition and measurement
The major sources of the Group’s revenue are from sales to customers and royalties and other franchise related income
received from TAF stores. The Group’s revenue is principally generated on a ‘point in time’ basis.
Sales to customers
Sales to customers of goods comprise the sale of branded performance and lifestyle footwear, apparel and
accessories to customers outside the Group less discounts, markdowns, loyalty scheme vouchers and an appropriate
deduction for actual and expected returns. Sales to customers is stated net of tax. Revenue is recognised when
performance obligations are satisfied, typically being where goods are delivered to the customer and the control of
goods is transferred to the buyer.
Gift cards are considered a prepayment for goods to be delivered in the future. The Group has an obligation to transfer
the goods in the future, creating a performance obligation. The Group recognises deferred revenue when the gift card
is purchased and recognises revenue when the customer redeems the gift card and the Group fulfills the performance
obligation.
Royalties and other franchise related income
Franchise royalty fee income is earned based upon a percentage of sales that has occurred and is recognised on an
accrual basis.
Franchise establishment fees are recognised as income over the term of the Franchise Agreement. Franchise
establishment fees are recognised on an ‘over time’ basis.
Marketing levies
Marketing levies are recognised in the period the sales are recorded by TAF stores. Marketing levies are collected by
the Group for specific use within the TAF Marketing Fund, which is operated on behalf of the TAF network. Expenses
in relation to the marketing of TAF stores are recorded within advertising and promotion expenses in profit or loss.
In any given year, a deficit in the marketing fund will need to be recouped in the following year and any surplus in the
marketing fund will need to be spent in the subsequent year.
42
Accent Group Limitedfor the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 7. EXPENSES
Profit before income tax includes the following specific expenses:
Depreciation
Right of use assets
Plant and equipment
Total depreciation
Amortisation
Licence fee
Distribution rights
Re-acquired rights
Software
Total amortisation
Impairment of assets
Impairment charge – right of use assets
Impairment charge – property, plant and equipment
Total impairment
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
107,893
46,604
154,497
98,654
39,311
137,965
32
–
358
4,546
4,936
–
–
–
32
1,141
434
3,967
5,574
3,476
4,274
7,750
Total depreciation, amortisation and impairment
159,433
151,289
Finance costs
Interest and finance charges paid/payable on borrowings
Interest and finance charges paid/payable on lease liabilities
Finance costs expensed
Leases
Variable lease payments
Share-based payments expense
6,904
13,702
20,606
4,199
12,271
16,470
39,877
35,313
3,137
5,068
Cost of sales
Cost of sales comprises cost of inventories sold, incoming freight and related duties.
COVID-19 Related Rental Concessions
During the year, the Group recognised $4,082,287 (2022: $5,145,261) of COVID-19 related rental concessions from
landlords. These concessions are included as a reduction in occupancy expense in the statement of profit or loss and
other comprehensive income.
Employee expenses
In the current financial year, the Group did not receive any wage subsidies and resurgence support payments.
During the prior financial year ended 26 June 2022, the Group received wage subsidies and resurgence support
payments of $1,304,279 in New Zealand as a result of COVID-19 mandated store closures. These payments, in total,
were remitted to eligible team members during the year.
43
Annual Report 2023for the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 8. INCOME TAX EXPENSE
Income tax expense
Current tax
Deferred tax
Adjustment recognised for prior periods – Deferred tax
Adjustment recognised for prior periods – Current tax
Aggregate income tax expense
Numerical reconciliation of income tax expense and tax at the statutory rate
Profit before income tax expense
Tax at the statutory tax rate of 30%
Tax effect amounts which are not deductible/(taxable) in calculating taxable income:
Entertainment expenses
Share-based payments
Sundry items
Adjustment recognised for prior periods
Difference in overseas tax rates
Income tax expense
Amounts recognised directly to other comprehensive income
Tax effect of hedges in reserves
Tax effect of share-based payments in reserves
Total tax effect recognised directly to other comprehensive income
Deferred tax assets not recognised
Deferred tax assets not recognised comprises temporary differences attributable to:
Capital losses (tax effected)
Total deferred tax assets not recognised
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
26,220
4,440
439
(136)
30,963
6,621
8,512
6,423
(6,428)
15,128
119,616
35,885
46,592
13,977
84
(5,588)
327
33
1,521
(195)
30,708
15,336
303
(48)
(5)
(203)
30,963
15,128
(1,473)
(3,775)
(5,248)
(3,156)
–
(3,156)
7,199
7,199
7,199
7,199
The above potential tax benefit, which excludes tax losses for deductible temporary differences, has not been
recognised in the statement of financial position as the recovery of this benefit is uncertain.
Recognition and measurement
Current tax
Current tax assets and liabilities are measured at the amount expected to be recovered from or paid to taxation
authorities at the tax rates and tax laws enacted or substantively enacted by the balance sheet date.
Deferred tax
Deferred tax is accounted for using the balance sheet liability method, providing for temporary differences between
the carrying amounts of assets and liabilities under financial reporting and taxation purposes. Deferred tax is measured
at the rates that are expected to apply in the period in which the liability is settled or asset realised, based on tax rates
enacted or substantively enacted at the reporting date.
Deferred tax assets and liabilities are not recognised if the temporary difference arises from the initial recognition
(other than in a business combination) of assets and liabilities in a transaction that affects neither the taxable profit nor
the accounting profit or in relation to the initial recognition of goodwill.
44
Accent Group Limitedfor the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 8. INCOME TAX EXPENSE (CONTINUED)
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against
which the deductible temporary differences or unused tax losses and tax offsets can be utilised. Deferred tax assets are
reduced to the extent that it is no longer probable that the related tax benefit will be realised.
Deferred tax assets and liabilities are offset when they relate to income taxes levied by the same taxation authority and
the Group intends to settle its current tax assets and liabilities on a net basis.
Tax consolidation
Accent Group Limited (the 'head entity') and its wholly-owned Australian subsidiaries have formed an income tax
consolidated group under the tax consolidation regime. The head entity and each subsidiary in the tax consolidated
group continue to account for their own current and deferred tax amounts. The tax consolidated group has applied the
'separate taxpayer within group' approach in determining the appropriate amount of taxes to allocate to members of
the tax consolidated group.
In addition to its own current and deferred tax amounts, the head entity also recognises the current tax liabilities
(or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from each
subsidiary in the tax consolidated group.
Assets or liabilities arising under tax funding agreements with the tax consolidated entities are recognised as amounts
receivable from or payable to other entities in the tax consolidated group. The tax funding arrangement ensures that
the intercompany charge equals the current tax liability or benefit of each tax consolidated group member, resulting in
neither a contribution by the head entity to the subsidiaries nor a distribution by the subsidiaries to the head entity.
NOTE 9. TRADE AND OTHER RECEIVABLES
Trade receivables
Less: Allowance for expected credit losses
Other receivables
Trade and other receivables
Movement in the allowance for credit losses were as follows:
Carrying value at beginning of year
Allowance for credit losses recognised
Unused amount reversed
Allowances for expected credit losses at year end
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
32,907
46,010
(996)
(1,238)
31,911
2,149
44,772
2,531
34,060
47,303
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
(1,238)
(1,291)
(59)
301
(35)
88
(996)
(1,238)
Set out below is the information about the credit risk exposure on the Group’s trade receivables.
2023
Current
Under one month
One to two months
Two to three months
Over three months
Carrying
amount
$'000
25,455
3,022
940
1,420
2,070
32,907
Expected
credit
loss rate
%
Expected
credit loss
$'000
1.0%
5.1%
14.2%
5.3%
18.3%
255
154
133
75
379
996
45
Annual Report 2023for the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 9. TRADE AND OTHER RECEIVABLES (CONTINUED)
2022
Current
Under one month
One to two months
Two to three months
Over three months
Carrying
amount
$'000
22,701
17,221
3,507
1,081
1,500
46,010
Expected
credit
loss rate
%
Expected
credit loss
$'000
1.8%
0.6%
2.5%
10.9%
34.7%
409
103
88
118
520
1,238
Recognition and measurement
Trade receivables
Trade receivables generally have terms of between 30 to 60 days. They are recognised at amortised cost less allowance
for expected credit losses (‘ECL’). Customers who wish to trade on credit terms are subject to extensive credit
verification procedures. Receivable balances are monitored on an ongoing basis and the ECL recognised is based on
management’s expectation of losses without regard to whether an impairment event exists.
Other receivables
Other receivables include rebates receivable from suppliers and fit-out contributions from landlords which are
considered fully recoverable and therefore no allowance has been made.
Impairment of trade receivables
Collectability and impairment of trade receivables is assessed on an ongoing basis at an individual customer level by
a centralised accounts receivable function. The Group has established a provision matrix that is based on average
write-offs as a proportion of average debt over a period of 12 months. The historical loss rates are adjusted for current
and forward-looking information where significant.
NOTE 10. INVENTORIES
Finished goods (at lower of cost or net realisable value)
Goods in transit
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
190,168
49,438
239,606
193,575
48,056
241,631
Recognition and measurement
Finished goods are valued at the lower of cost and net realisable value. Net realisable value is the estimated selling price
in the ordinary course of business less costs to sell. Cost comprises of the purchase price on a weighted average basis
and logistic expenses incurred in bringing the inventories to their present location and condition.
Determining the net realisable value of inventories relies on key assumptions that require the use of management
judgement. Management’s estimate of the inventory provision net realisable value is based on historical finished goods
sold below cost and inventory write-off transactional data.
The provision for write-down of inventories to net realisable value amounted to $9,908,900 (2022: $11,225,068) at 2 July
2023.
46
Accent Group Limitedfor the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 11. LEASE RECEIVABLE
Current
Lease receivable
Non-Current
Lease receivable
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
9,324
8,349
10,231
12,346
The Group sub-leases property leases to TAF franchises. The Group has classified these sub-leases as a finance lease,
because the sub-lease is substantially on the same terms as the head lease.
The following table sets out the maturity analysis of lease receivables, showing the undiscounted lease payments to be
received after the reporting date.
Less than one year
One to five years
More than five years
Total undiscounted lease payments
Discounted using the Group’s incremental borrowing rate
Total lease receivable
of which are:
Current lease receivables
Non-current lease receivables
NOTE 12. DERIVATIVE FINANCIAL INSTRUMENTS
Forward foreign exchange contracts - receivable
Interest rate swap contracts – receivable
Total derivative financial instruments receivable - current
Forward foreign exchange contracts – receivable
Interest rate swap contracts – receivable
Total derivative financial instruments receivable – non-current
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
10,427
11,323
–
21,750
(2,195)
19,555
9,157
13,080
12
22,249
(1,554)
20,695
9,324
10,231
8,349
12,346
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
3,518
220
3,738
–
–
–
13,569
–
13,569
–
1,383
1,383
Foreign exchange forward contracts are held as hedging instruments against forecast purchases in USD. The notional
amount for the contracts held at 2 July 2023 totalled $USD 99,214,457 (26 June 2022: $USD160,462,427). The average
rate of the forward contracts is 0.68 (2022: 0.74).
The net gain or loss recognised as other comprehensive income is equal to the change in fair value of the hedging
instruments. There is no ineffectiveness recognised in profit or loss.
Recognition and measurement
The Group enters into a variety of derivative financial instruments to manage its exposure to interest rate and foreign
exchange risk, including foreign exchange forward contracts and interest rate swaps. Derivatives are initially recognised
at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at each
reporting date. Derivatives are carried as financial assets when the fair value is positive and as financial liabilities when the
fair value is negative.
When a cash flow hedge is discontinued, any cumulative gain or loss on the hedging instrument recognised in other
comprehensive income is retained in equity until the forecast transaction occurs.
47
Annual Report 2023for the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS
NOTE 13. OTHER CURRENT ASSETS
Prepayments
Other current assets
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
6,242
131
6,373
8,142
450
8,592
Prepayments represent general prepaid expenses, largely insurance premiums and license fees for the Group’s
eCommerce platforms.
NOTE 14. PROPERTY, PLANT AND EQUIPMENT
Plant and equipment - at cost
Less: Accumulated depreciation and impairment
Assets under construction - at cost
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
366,885
316,747
(237,952)
(191,265)
128,933
125,482
11,594
140,527
13,706
139,188
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Plant and
equipment
$'000
Assets under
construction
$'000
Total
$'000
115,527
68,401
–
(854)
(301)
(4,274)
(39,311)
139,188
47,964
–
(108)
87
(46,604)
9,720
14,054
(9,720)
(348)
–
–
–
13,706
11,594
(13,706)
–
–
–
11,594
140,527
105,807
54,347
9,720
(506)
(301)
(4,274)
(39,311)
125,482
36,370
13,706
(108)
87
(46,604)
128,933
Consolidated
Balance at 27 June 2021
Additions
Transfer
Disposals
Exchange differences
Impairment charge
Depreciation expense
Balance at 26 June 2022
Additions
Transfer
Disposals
Exchange differences
Depreciation expense
Balance at 2 July 2023
48
Accent Group Limitedfor the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 14. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Recognition and measurement
The carrying value of property, plant and equipment is measured as the cost of the asset, less accumulated depreciation,
and impairment.
Depreciation and amortisation
Items of property, plant and equipment are depreciated on a straight-line basis over the expected useful lives. Most of
the property, plant and equipment represents leasehold improvements which are amortised over the period of the lease.
As at 2 July 2023, the average lease term is 5 years. Assets under construction are not depreciated.
Derecognition
An item of property, plant and equipment is derecognised when it is sold or otherwise disposed of, or when its use is
expected to bring no future economic benefits. Any gain or loss between the carrying amount and the disposal proceeds
are included in the income statement in the period the item is derecognised.
Impairment
Refer to Note 15 for details on impairment testing.
NOTE 15. RIGHT-OF-USE ASSETS
Buildings - right-of-use
Less: Accumulated depreciation and impairment
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
648,913
559,511
(367,520)
(259,627)
281,393
299,884
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Balance at 27 June 2021
Additions
Additions through business combinations (Note 34)
Exchange differences
Impairment of assets
Depreciation expense
Balance at 26 June 2022
Additions
Additions through business combinations (Note 34)
Exchange differences
Depreciation expense
Balance at 2 July 2023
Buildings
$'000
271,348
130,333
793
(460)
(3,476)
(98,654)
299,884
87,098
2,030
274
(107,893)
281,393
49
Annual Report 2023for the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 15. RIGHT-OF-USE ASSETS (CONTINUED)
Recognition and measurement
A right-of-use asset is recognised at the commencement date of a lease. The Group leases land and buildings for its
offices and retail stores under agreements with an average term of 5 years. The right-of-use asset is measured initially at
cost based on the value of the associated lease liability, adjusted for, as applicable, any lease payments made at or before
the commencement date net of any lease incentives received and any initial direct costs incurred.
Right-of-use assets are depreciated on a straight-line basis over the unexpired period of the lease. Right-of use assets
are subject to impairment or adjusted for any remeasurement of lease liabilities.
The Group has elected not to recognise a right-of-use asset and corresponding lease liability for short-term leases with
terms of 12 months or less and leases of low-value assets. Short term lease payments of $9,303,000 (2022: $3,505,000)
were expensed to profit or loss as incurred within occupancy expense. The remaining contractual commitment for short
term leases is $2,907,000 (2022: $2,915,000).
Impairment of property, plant and equipment and right-of-use assets
For impairment testing purposes the Group has determined that each store is a separate Cash Generating Unit (CGU).
Each CGU is tested for impairment at the balance sheet date if any indicators of impairment have been identified.
The impairment test as at 2 July 2023 was carried out based on value in use for each CGU. The recoverable amount was
determined based on the Group’s latest trading performance at the time of assessment. Cash flows beyond year one
represent the Group’s budgeted growth which was approved by the Board on 1 June 2023. Cash flows were discounted
to present value using a mid-point after-tax discount rate of 9.85% (2022: 9.1%).
Based on the assessment, a number of stores were indicative of impairment charges and other stores indicative
of impairment reversals resulting in a net $0 impairment charge as of 2 July 2023 (2022: $7,749,522).
The cash flows used within the impairment models are based on assumptions which are sources of estimation
uncertainty and movements in these assumptions could lead to further impairment. The key assumptions in the value
in use calculations are growth rates of sales, gross profit margins and the after-tax discount rate.
Management has performed sensitivity analysis using reasonably possible changes in the key assumptions across
the store portfolio. These reasonably possible changes do not lead to a significant increase in the impairment charge.
50
Accent Group Limitedfor the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 16. INTANGIBLES
Goodwill - at cost
Brands and trademarks - at cost
Less: Accumulated impairment
Licence fees - The Athlete's Foot - at cost
Less: Accumulated amortisation
Distribution rights - at cost
Less: Accumulated amortisation
Re-acquired rights
Less: Accumulated amortisation
Other intangible assets - The Athlete's Foot - at cost
Less: Accumulated amortisation
Software
Less: Accumulated amortisation
Intangibles
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
322,568
319,187
44,825
44,825
(9,714)
(9,714)
35,111
7,832
35,111
7,832
(424)
(392)
7,408
7,440
16,800
16,800
(16,800)
(16,800)
–
2,547
(1,285)
1,262
720
–
1,659
(927)
732
720
(720)
(720)
–
–
32,183
23,302
(16,341)
(11,031)
15,842
12,271
382,191
374,741
51
Annual Report 2023for the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 16. INTANGIBLES (CONTINUED)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set out
below:
Consolidated
Goodwill
$'000
Brands and
trademarks
$'000
Licence
fees
$'000
Distribution
rights
$'000
Re-acquired
rights
$'000
Software
$'000
Total
$'000
Balance at 27 June 2021
319,022
35,111
7,472
1,141
Additions
Additions through
business combinations
(Note 34)
Other1
Exchange differences
Amortisation expense
–
1,397
(1,199)
(33)
–
–
–
–
–
–
–
–
–
–
–
–
–
–
815
–
163
188
–
9,162
7,088
372,723
7,088
–
–
(12)
1,560
(1,011)
(45)
(32)
(1,141)
(434)
(3,967)
(5,574)
Balance at 26 June 2022
319,187
35,111
7,440
Additions
Additions through
business combinations
(Note 34)
Exchange differences
Amortisation expense
–
3,387
(6)
–
–
–
–
–
–
–
–
(32)
Balance at 2 July 2023
322,568
35,111
7,408
–
–
–
–
–
–
732
–
12,271
8,143
374,741
8,143
888
–
(358)
1,262
–
(26)
4,275
(32)
(4,546)
(4,936)
15,842
382,191
1
During the financial year ended 26 June 2022, the Group retrospectively adjusted the provisional amounts recognised for a business combination to
reflect new information obtained.
Recognition and measurement
Goodwill
Goodwill acquired in a business combination is initially measured at cost. Cost is measured as the cost of the business
combination minus the net fair value of the acquired and identifiable assets, liabilities and contingent liabilities. Following
initial recognition, goodwill is measured at cost less any accumulated impairment losses.
Brands and trademarks
Brands and trademarks are recognised at cost in a business combination. Brands and trademarks have indefinite useful
lives. This assessment reflects management's intention to continue to utilise these intangible assets in the foreseeable
future. Each period, the useful life of these assets is reviewed to determine whether events and circumstances continue
to support an indefinite useful life assessment for the assets.
Computer software and Software-as-a-Service (SaaS) arrangements
SaaS arrangements are arrangements in which the Group does not currently control the underlying software used in the
arrangement. Costs incurred to configure or customise SaaS arrangements that result in the creation of a resource which
is identifiable, and where the Group has the power to obtain the future economic benefits flowing from the underlying
resource and to restrict the access of others to those benefits, such costs are recognised as a separate intangible
software asset and amortised over the useful life of the software on a straight-line basis. The amortisation is reviewed at
least at the end of each reporting period and any changes are treated as changes in accounting estimates.
Software
52
Useful life
Finite (up to 4 years)
Accent Group Limitedfor the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 16. INTANGIBLES (CONTINUED)
Other intangible assets
Intangible assets with finite lives are amortised on a straight-line basis over their useful lives and tested for impairment
whenever there is an indication that they may be impaired. The amortisation period and method is reviewed at each
financial year-end. A summary of the useful lives of other intangible assets is as follows:
License fees
Distribution rights
Re-acquired rights
Useful life
Finite (up to 249 years)
Finite (up to 7 years)
Finite (up to 8 years)
Impairment testing of goodwill
Goodwill is tested annually for impairment, or more frequently if events or changes in circumstances indicate that it
might be impaired. For impairment testing purpose, the Group is determined to be one Cash Generating Unit (CGU)
and represents the operating segment.
The impairment test as at 2 July 2023 was carried out based on value in use calculations for the CGU. The recoverable
amount was determined based on the Group’s actual FY23 performance. Cash flows for year one represent the Group’s
budgeted growth which was approved by the Board on 1 June 2023. The budget assumptions are based on historical
performance and knowledge of the current market, together with the Group’s views on the future achievable growth.
The cash flows include ongoing capital expenditure required to maintain the store network but exclude any growth capital
initiatives not committed. The cash flows beyond year one have been extrapolated using a steady state 2.0% long term
growth rate (2022: 1.0%). Cash flows were discounted to present value using a mid-point after-tax discount rate of 11.8%
(2022: 11.0%).
Management has performed sensitivity analysis using reasonably possible changes in the key assumptions. These
reasonably possible changes do not lead to an impairment charge. The Group has concluded that no impairment is required
based on expected performance and current market and economic conditions.
Brand names and trademarks
The Group recognises the following brands and trademarks as indefinite life intangible assets:
Carrying amount of brand names and trademarks:
The Athlete's Foot
Platypus
Hype DC
Brands and trademarks
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
3,466
11,100
3,466
11,100
20,545
20,545
35,111
35,111
Impairment testing of brands and trademarks
Intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impairment
or more frequently if events or changes in circumstances indicate that they might be impaired.
An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its recoverable amount.
The recoverable amount was determined independently using the Relief from Royalty (‘RFR’) valuation method. The
calculations reflect actual FY23 revenue in year one. Revenue beyond year 1 represents the Group’s budgeted growth
which was approved by the Board on 1 June 2023. The calculations require the use of assumptions, including estimated
royalty rates, tax rate and estimated discount rates.
The royalty rates used in the valuation model were brand specific and based on rates observed in the market. The royalty
rates across all brands ranged between 3.5% to 5.25%. The TAF brands royalty rate was in line with current franchise
agreements.
The tax rate applied in the valuation model is based on the corporate tax rate in Australia of 30.0% and the after-tax
discount rate used is 14.8% (2022: 12.8%).
Management has performed sensitivity analysis using reasonably possible changes in the key assumptions. These
reasonably possible changes do not lead to an impairment charge. The Group has concluded that no impairment is
required based on expected performance and current market and economic conditions.
53
Annual Report 2023for the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 17. NET DEFERRED TAX
Net deferred tax comprises temporary differences attributable to:
Amounts recognised in profit or loss:
Allowance for expected credit losses
Provision for shrinkage and stock obsolescence
Share-based payments
Provision for employee entitlements
Other provisions and accrued expenses
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
273
2,851
4,608
6,985
6,888
354
3,441
–
4,678
8,466
Difference in accounting and tax depreciation
(24,653)
(17,262)
Supplier contributions
Right of use asset
Lease liability
Trademarks, brand names and distribution rights
Other
Amounts recognised directly to other comprehensive income
Tax effect of hedges in reserves
Tax effect of share-based payments
Net deferred tax asset
NOTE 18. TRADE AND OTHER PAYABLES
Trade payables
Goods and services tax payable
Accrued expenses
Other payables
954
(90,142)
115,773
(10,716)
1,648
14,469
1,004
(97,286)
121,332
(10,557)
1,319
15,489
(913)
(2,386)
3,775
2,862
17,331
–
(2,386)
13,103
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
46,623
56,244
8,677
34,780
20,736
110,816
6,810
61,415
18,679
143,148
Trade payables and accruals represent liabilities for goods and services provided to the Group prior to the end of
financial year which are unpaid. Other payables represent goods receipted that have not been invoiced as at 2 July 2023.
Trade and other payables are stated at amortised cost. The amounts are unsecured and are usually settled within 30 to
60 days of recognition.
54
Accent Group Limitedfor the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS
NOTE 19. DEFERRED REVENUE
Current
Gift cards
Other deferred revenue
Non-current
Other deferred revenue
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
5,355
9,022
14,377
4,324
6,765
11,089
5,190
19,567
4,593
15,682
Deferred revenue relates to unredeemed gift cards, loyalty program liabilities, and unused supplier contributions for
fixtures, fittings and point of purchase. Revenue is recognised when the gift cards and loyalty points are redeemed or
expire. The unused supplier contributions will be utilised for future store openings and refurbishments.
NOTE 20. PROVISIONS
Current
Employee benefits
Other provisions
Non-Current
Employee benefits
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
20,271
3,542
23,813
13,063
2,532
15,595
840
857
24,653
16,452
Recognition and measurement
Employee benefits
Liabilities for annual leave, bonuses and other employee benefits expected to be settled wholly within 12 months of the
reporting date are measured at the amounts expected to be paid when the liabilities are settled.
Employee benefits not expected to be settled within 12 months of the reporting date are measured at the present
value of expected future payments to be made in respect of services provided by employees up to the reporting date.
Consideration is given to expected future wage and salary levels, experience of employee departures and periods of
service. Expected future payments are discounted using market yields at the reporting date on high quality corporate
bonds with terms to maturity and currency that match, as closely as possible, the estimated future cash outflows.
Provisions
Provisions are recognised when the Group has a present (legal or constructive) obligation as a result of a past event, it
is probable the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the
obligation. The amount recognised as a provision is the best estimate of the consideration required to settle the present
obligation at the reporting date.
55
Annual Report 2023for the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 21. BORROWINGS
Current
Secured
Working capital facility
Capitalised debt transaction costs
Non-Current
Secured
Bank loans
Capitalised debt transaction costs
Borrowings
Movements in borrowings
Movements in current borrowings during the current financial year is set out below:
Carrying amount at start of the year
Repayments
Additional loans
Capitalised debt transaction costs
Carrying amount at end of the year
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
10,000
20,000
(46)
(116)
9,954
19,884
140,000
150,000
(650)
(868)
139,350
149,304
149,132
169,016
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
169,016
101,125
(20,000)
(61,000)
-
288
129,875
(984)
149,304
169,016
The outstanding financing facilities have a combination of three and five-year tenure, expiring between December 2024
and December 2026.The weighted average interest rate on these financing facilities is 4.71%.
The Group has an existing interest rate swap contract in place to mitigate the risk of changing interest rates on the variable
rate debt held. The interest rate swap contract matures in August 2023.
Recognition and measurement
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured
at amortised cost.
Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the
liability for at least 12 months after the reporting date and intends to do so.
The Group monitors compliance with its financial covenants on a monthly basis and reports compliance on a monthly
basis to the banks. The Group has complied with all such requirements.
Assets pledged as security
The senior bank debt is secured by cross-guarantees and all assets of Accent Group Limited and each of its
wholly-owned subsidiaries. Total secured assets amounted to $843,637,000 at 2 July 2023 (26 June 2022:
$884,574,000).
56
Accent Group Limitedfor the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 21. BORROWINGS (CONTINUED)
Financing arrangements
Unrestricted access was available at the reporting date to the following lines of credit:
Total facilities
Bank overdraft
Bank loans
Working capital facility
Bank guarantee and letters of credit
Used at the reporting date
Bank loans
Working capital facility
Bank guarantee and letters of credit
Unused at the reporting date
Bank overdraft
Working capital facility
Bank guarantee and letters of credit
NOTE 22. LEASE LIABILITIES
Current
Lease liability
Non-current
Lease liability
Total lease liabilities
Consolidated
Less than one year
One to five years
More than five years
Total undiscounted lease liabilities
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
12,000
3,800
140,000
150,000
120,240
129,350
25,660
24,750
297,900
307,900
140,000
150,000
10,000
20,000
21,341
20,524
171,341
190,524
12,000
3,800
110,240
109,350
4,319
126,559
4,226
117,376
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
132,130
123,406
276,846
307,904
408,976
431,310
134,937
279,629
5,286
135,984
309,193
15,212
419,852
460,389
57
Annual Report 2023for the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS
NOTE 22. LEASE LIABILITIES (CONTINUED)
Recognition and measurement
A lease liability is recognised at the commencement date of a lease. The lease liability is initially recognised at the present
value of the lease payments to be made over the term of the lease, discounted using the Group's incremental borrowing
rate. Leases are entered into for varying terms and rent reviews are based on CPI increases or fixed increases. Variable
lease payments are expensed in the period in which they are incurred.
The carrying amount of a lease liability is remeasured if there is a change in the lease payments arising from a change
in an index or a rate used and a change in lease term. Most of the Group’s leases do not contain renewal or extension
options. When a lease liability is remeasured, an adjustment is made to the corresponding right-of use asset, or to profit
or loss if the carrying amount of the right-of-use asset is fully written down.
NOTE 23. EQUITY - ISSUED CAPITAL
Consolidated
2 Jul 2023
Shares
26 Jun 2022
Shares
2 Jul 2023
$'000
26 Jun 2022
$'000
Ordinary shares - fully paid
552,459,958
541,866,715
390,926
390,926
Ordinary shares
Ordinary shares are classified as equity and entitle the holder to participate in dividends and the proceeds on the
winding up of the Company in proportion to the number of and amounts paid on the shares held. The fully paid ordinary
shares have no par value and the Company does not have a limited amount of authorised capital.
Share buy-back
There is no current on-market share buy-back.
Movements in ordinary share capital
Details
Balance
Date
Shares
Issue price
$'000
27 June 2021
541,666,715
Employee Share Scheme - loans repaid
24 January 2022
200,000
$1.490
Balance
Shares issued during the period(i)
Balance
26 June 2022
541,866,715
18 November 2022
10,593,243
2 July 2023
552,459,958
(i) A total of 10,593,243 ordinary shares were issued in relation to the performance rights plan.
390,616
310
390,926
–
390,926
NOTE 24. EQUITY - RESERVES
Foreign currency translation reserve
Hedging reserve - cash flow hedges
Share-based payments reserve
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
1,202
2,135
33,619
36,956
7,709
5,567
23,377
36,653
Foreign currency translation reserve
The foreign currency translation reserve is used to record exchange differences arising from the translation of the
financial statements of foreign subsidiaries.
Hedging reserve - cash flow hedges
Changes in the fair value of derivative financial instruments that are designated and effective as hedges of future cash
flows are recognised in other comprehensive income with the remaining change in fair value recognised in the hedging
reserve. Any ineffective portion is recognised immediately in the statement of profit or loss and other comprehensive
income.
Share-based payments reserve
The share-based payments reserve is used to recognise the value of equity-settled share-based payments provided to
employees, including key management personnel, as part of their remuneration.
58
Accent Group Limitedfor the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 25. EQUITY - DIVIDENDS
Dividends
Dividends paid during the financial year were as follows:
Final dividend for the year ended 26 June 2022 of 4.00 cents (2021: 3.25 cents) per
ordinary share
Interim dividend for the year ended 2 July 2023 of 12.00 cents (2022: 2.50 cents) per
ordinary share
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
21,675
17,611
66,295
87,970
13,546
31,157
In respect of the financial year ended 2 July 2023, the directors recommended the payment of a final fully franked
dividend of 5.50 cents per share to be paid on 28 September 2023 to the registered holders of fully paid ordinary shares
as at 14 September 2023.
Franking credits
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
Franking credits available for subsequent financial years based on a tax rate of 30%
17,430
39,058
New Zealand imputation credits available to New Zealand residential shareholders amount to NZ$1,557,560
(26 June 2022: NZ$7,596,743).
NOTE 26. FINANCIAL INSTRUMENTS
Financial risk management objectives
The Group's activities expose it to a variety of financial risks: market risk (including foreign currency risk, price risk
and interest rate risk), credit risk and liquidity risk. The Group's overall risk management program focuses on the
unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance
of the Group. The Group uses derivative financial instruments such as forward foreign exchange contracts to hedge
foreign currency exposures and interest rate swaps to hedge interest rate exposures. Derivatives are exclusively used for
hedging purposes, i.e. not as trading or other speculative instruments. The Group uses different methods to measure
different types of risk to which it is exposed. These methods include sensitivity analysis in the case of interest rate, foreign
exchange and other price risks and ageing analysis for credit risk.
Risk management is carried out by senior finance executives ('finance') under policies approved by the Board of
Directors ('the Board'). These policies include identification and analysis of the risk exposure of the Group and
appropriate procedures, controls and risk limits. Finance identifies, evaluates and hedges financial risks within the
Group's operating units. Finance reports to the Board on a periodic basis.
Market risk
Foreign currency risk
The Group has transactional foreign currency exposures arising from the purchase of inventory denominated in
US dollars. To minimise the impact of changes in the Australian Dollar / US Dollar exchange rate on profit and loss, the
Group enters into forward exchange contracts in accordance with its Board-approved foreign exchange hedging policy.
The Group enters into hedge relationships where the critical terms of the hedging instrument match exactly with the
terms of the hedged item. The Group therefore performs a qualitative assessment of effectiveness based on critical
terms match. In hedges of foreign currency purchases, ineffectiveness may arise if the timing of the forecast transaction
changes from what was originally estimated, or if there are changes in the credit risk of Australia or the derivative
counterparty.
59
Annual Report 2023for the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 26. FINANCIAL INSTRUMENTS (CONTINUED)
The Group's exposure to foreign currency risk as at the end of the reporting period, expressed in Australian dollars, is
shown below:
Consolidated
Forward contracts
Foreign currency trade payables
Transactional foreign exchange risk
2 Jul 2023
26 Jun 2022
US dollar
transactional
exposure
$'000
Australian
dollar
equivalent
$'000
US dollar
transactional
exposure
$'000
Australian
dollar
equivalent
$'000
99,214
19,357
118,571
145,662
29,196
174,858
160,462
16,067
176,529
217,723
23,258
240,981
The sensitivity of the Group's transactional foreign currency risk exposure is estimated by assessing the impact that a
10% increase and 10% decrease in the Australian Dollar / US Dollar exchange rate would have on profit and equity of
the Group at the reporting date.
2 Jul 2023
26 Jun 2022
Movement
in Australian
dollar US
dollar
exchange rate
%
Increase/
(decrease) in
profit or loss
$'000
Increase/
(decrease)
in other
comprehensive
income
$'000
Movement
in Australian
dollar US
dollar
exchange rate
%
Increase/
(decrease) in
profit or loss
$'000
Increase/
(decrease)
in other
comprehensive
income
$'000
Forward Contracts
Trade Payables
10%
(10%)
10%
(10%)
–
–
352
(431)
(6,735)
13,263
2,302
(2,813)
10%
(10%)
10%
(10%)
–
–
239
(292)
(4,589)
26,453
1,875
(2,292)
The maturity, settlement amounts and the average contractual exchange rates of the Group's outstanding forward
foreign exchange contracts at the reporting date were as follows:
Buy US dollars
Maturity:
0 - 3 months
3 - 6 months
6 - 12 months
> 12 months
Sell Australian dollars
Average exchange rates
2 Jul 2023
$'000
26 Jun 2022
$'000
2 Jul 2023
26 Jun 2022
95,673
49,989
–
–
79,721
64,040
73,962
–
0.6732
0.7069
–
–
0.7356
0.7263
0.7486
–
Translational Foreign Currency Risk
The Group includes certain subsidiaries whose functional currencies are different to the Group’s presentation currency
of Australian Dollars. As stated in Note 2, on consolidation the assets and liabilities of these entities are translated
into Australian dollars at exchange rates prevailing on the balance date. The income and expenses of these entities
are translated at the average exchange rates for the year. Exchange differences arising are classified as equity and
are transferred to a foreign exchange translation reserve. The main operating entities outside of Australia are based
in New Zealand. The Group’s future reported profits could therefore be impacted by changes in rates of exchange
between the Australian Dollar and the New Zealand Dollar.
New Zealand dollar net assets
8,055
7,402
22,832
20,823
2 Jul 2023
26 Jun 2022
NZ dollar
translational
exposure
$'000
Australian
dollar
equivalent
$'000
NZ dollar
translational
exposure
$'000
Australian
dollar
equivalent
$'000
60
Accent Group Limitedfor the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 26. FINANCIAL INSTRUMENTS (CONTINUED)
The sensitivity of the Group's translational foreign currency risk exposure is estimated by assessing the impact that a
10% increase and 10% decrease in the Australian Dollar / NZ Dollar exchange rate would have on profit and equity of
the Group at the reporting date.
2 Jul 2023
26 Jun 2022
Movement
in Australian
dollar NZ
dollar
exchange rate
%
Increase/
(decrease)
in other
comprehensive
income
$'000
Movement
in Australian
dollar NZ
dollar
exchange rate
%
Increase/
(decrease)
in other
comprehensive
income
$'000
10%
(10%)
(673)
822
10%
(10%)
(1,893)
2,314
New Zealand dollar net assets
Price risk
The Group is not exposed to any significant price risk.
Interest rate risk
The Group's main interest rate risk arises from long-term borrowings. Borrowings issued at variable rates expose the
Group to interest rate risk. Borrowings issued at fixed rates expose the Group to fair value interest rate risk.
The Group has entered into an interest rate swap contract to mitigate the risk of changing interest rates on the variable
rate debt held. The interest rate swap contract matures in August 2023.
As at the reporting date, the Group had the following cash and cash equivalents, variable rate borrowings and interest
rate swap contracts outstanding:
2 Jul 2023
26 Jun 2022
Consolidated
Bank loans
Interest rate swap
Weighted
average
interest rate
%
Weighted
average
interest rate
%
Balance
$'000
5.67%
(150,000)
1.84%
37,500
1.90%
1.84%
Net exposure to cash flow interest rate risk
(112,500)
Balance
$'000
(170,000)
48,750
(121,250)
Sensitivity impact of interest rate changes has not been shown as a 0.5% change in interest rates would have an
immaterial profit or loss impact based on the net exposure to cash flow interest rate risk at balance date.
Credit risk
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Group. The maximum exposure to credit risk at the reporting date to recognised financial assets is the carrying amount,
net of any provisions for impairment of those assets, as disclosed in the statement of financial position and notes to the
financial statements.
Credit risk is managed on a group basis. Risk control assesses the credit quality of wholesale customers, taking into
account its financial position, past experience and other factors. Individual risk limits are set based on internal or external
ratings in accordance with limits set by the Group policy. The compliance with credit limits by wholesale customers is
regularly monitored by line management.
Sales to retail customers are required to be settled in cash or using major credit cards, mitigating credit risk. There are
no significant concentrations of credit risk, whether through exposure to individual customers, specific industry sectors
and/or regions.
61
Annual Report 2023for the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 26. FINANCIAL INSTRUMENTS (CONTINUED)
Liquidity risk
Vigilant liquidity risk management requires the Group to maintain sufficient liquid assets (mainly cash and cash
equivalents) and available borrowing facilities to be able to pay debts as and when they become due and payable.
The Group manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by
continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and
liabilities.
Financial covenants are provided to its lenders by the Group with respect to leverage, gearing and fixed charges
coverage. The Group has complied with the financial covenants of its borrowing facilities during the 2023 and 2022
financial years.
All measurements are monitored month-to-month and reported to the banks on a semi-annual basis.
Financing arrangements
Unused borrowing facilities at the reporting date:
Bank overdraft
Working capital facility
Bank guarantee and letters of credit
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
12,000
3,800
110,240
109,350
4,319
126,559
4,226
117,376
Remaining contractual maturities
The following tables detail the Group's remaining contractual maturity for its financial instrument liabilities. The tables
have been drawn up based on the undiscounted cash flows of financial liabilities based on the earliest date on which
the financial liabilities are required to be paid, and therefore these totals may differ from their carrying amount in the
statement of financial position.
Consolidated - 2 Jul 2023
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Lease liabilities
Interest-bearing - variable
Term loans
Working capital facility
Total non-derivatives
Derivatives
Weighted
average
interest rate
%
1 year or less
$'000
Between
1 and 2 years
$'000
Between
2 and 5 years
$'000
Over 5 years
$'000
Remaining
contractual
maturities
$'000
46,623
20,736
134,937
–
–
–
–
–
–
46,623
20,736
110,774
168,855
5,286
419,852
5.67%
5.59%
7,943
10,043
7,943
151,272
–
–
–
–
167,158
10,043
220,282
118,717
320,127
5,286
664,412
Interest rate swaps net settled
1.84%
(220)
Forward foreign exchange
contracts net settled
Total derivatives
–
(3,518)
(3,738)
–
–
–
–
–
–
–
–
–
(220)
(3,518)
(3,738)
62
Accent Group Limitedfor the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 26. FINANCIAL INSTRUMENTS (CONTINUED)
161,833
20,025
717,170
(1,383)
(13,569)
(14,952)
Consolidated - 26 Jun 2022
Non-derivatives
Non-interest bearing
Trade payables
Other payables
Lease liabilities
Interest-bearing - variable
Term loans
Working capital facility
Total non-derivatives
Derivatives
Weighted
average
interest rate
%
1 year
or less
$'000
Between
1 and 2 years
$'000
Between
2 and 5 years
$'000
Over
5 years
$'000
Remaining
contractual
maturities
$'000
–
–
–
56,244
18,679
–
–
–
–
–
–
56,244
18,679
135,984
115,234
193,959
15,212
460,389
1.78%
2.79%
2,668
2,668
156,497
20,025
–
–
–
–
233,600
117,902
350,456
15,212
Interest rate swaps net settled
1.84%
–
(1,383)
Forward foreign exchange
contracts net settled
Total derivatives
–
(13,569)
(13,569)
–
(1,383)
–
–
–
–
–
–
The cash flows in the maturity analysis above are not expected to occur significantly earlier than contractually disclosed above.
Capital risk management
The Group manages its capital to ensure that all the entities within the Group are able to continue as going concerns
while maximising the return to stakeholders through the optimisation of the debt and equity balance.
The capital structure of the Group consists of cash and cash equivalents, trade and other receivables, inventories,
intangibles and net working capital. The equity attributable to equity holders of the parent entity comprises issued
capital, reserves and accumulated losses.
Management effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting the Group’s
capital structure in response to changes in these risks and in the market. These responses include the management of
debt levels, distributions to shareholders and share issues.
None of the Group entities are subject to externally-imposed capital requirements.
NOTE 27. FAIR VALUE MEASUREMENT
The only financial assets or financial liabilities carried at fair value are interest rate swaps and foreign currency forward
contracts. All these instruments are Level 2 financial instruments because, unlike Level 1 financial instruments, their
measurement is derived from inputs other than quoted prices that are observable for the assets or liabilities, either
directly or indirectly.
Valuation techniques for fair value measurements
The fair values are determined using the valuation techniques below. The fair value was obtained from third party valuations.
Forward foreign exchange contracts
The fair value was obtained from third party valuations derived from discounted cash flow forecasts of forward exchange
rates at the end of the reporting period and contract exchange rates.
Interest rate swap contracts
Future cash flows are estimated based on forward interest rates (from observable yield curves at the end of the reporting
period) and contract interest rates, discounted at a rate that reflects the credit risk of various counterparties.
There were no transfers between levels during the year.
The carrying amount of other financial assets and financial liabilities recorded in the financial statements approximate
their fair values.
63
Annual Report 2023for the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 28. KEY MANAGEMENT PERSONNEL DISCLOSURES
The aggregate compensation made to directors and other members of key management personnel of the Group is set
out below:
Short-term employee benefits
Post-employment benefits
Long-term benefits
Share-based payments
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
4,836
106
190
1,262
6,394
2,816
105
243
1,738
4,902
NOTE 29. REMUNERATION OF AUDITORS
During the financial year the following fees were paid or payable for services provided by PricewaterhouseCoopers,
the auditor of the Group:
Audit services - Deloitte Touche Tohmatsu
Audit or review of the financial statements
Other services - Deloitte Touche Tohmatsu
Other consulting services
Audit services - PricewaterhouseCoopers
Audit or review of the financial statements
Other services - PricewaterhouseCoopers
Other consulting services
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
–
653
11
650
–
–
–
14
667
661
NOTE 30. CONTINGENT LIABILITIES
The Group has bank guarantees outstanding as at 2 July 2023 of $2,739,714 (26 June 2022: $3,693,060). The Group also
has open letters of credit of $17,796,868 (26 June 2022: $16,830,874). These guarantees and letters of credit are in favour
of international stock suppliers and landlords where parent guarantees cannot be negotiated.
NOTE 31. COMMITMENTS
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
Capital commitments
Committed at the reporting date but not recognised as liabilities, payable:
Property, plant and equipment
17,909
18,156
The commitment amounts disclosed above represent the maximum amounts that the Group is obliged to pay and
exclude Landlord contributions to store fit-out costs.
64
Accent Group Limitedfor the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 32. RELATED PARTY TRANSACTIONS
Parent entity
Accent Group Limited is the parent entity.
Subsidiaries
Interests in subsidiaries are set out in Note 35.
Key management personnel
Disclosures relating to key management personnel are set out in Note 28 and the remuneration report included in
the directors' report.
Entities associated with key management personnel
Rivan Pty Limited, a shareholder, is a company associated with David Gordon.
2 Como Pty Ltd, a shareholder, is a company associated with Daniel Agostinelli.
BBRC International Pte Ltd, a shareholder, is a company associated with Brett Blundy.
Placed Pty Ltd is a company associated with Daniel Agostinelli and Brett Blundy.
Musician Pty Ltd, a shareholder, is a company associated with Matthew Durbin.
Milner York Pty Ltd ATF Milner York Family Trust, a shareholder, is a company associated with Joshua Lowcock.
Lyneliz Pty Ltd is a company associated with Daniel Agostinelli.
Retail Reality Pty Ltd is a company associated with Daniel Agostinelli.
Boxed to Go (JOA5 Investments Pty Ltd) is a company associated with Daniel Agostinelli.
HIT Group Limited ATF Hapgood Investment Trust, a shareholder, is a company associated with Michael Hapgood.
Transactions with related parties
The following transactions occurred with related parties:
Placed Pty Ltd, a company associated with Daniel Agostinelli and Brett Blundy, provided recruitment services to the
Group amounting to $54,081 (26 June 2022: $150,858).
Retail Reality Pty Ltd, a company associated with Daniel Agostinelli, provided mystery shopping services to the Group
amounting to $0 (26 June 2022: $7,968).
Lyneliz Pty Ltd, a company associated with Daniel Agostinelli, provided storage services to the Group amounting to
$60,000 (26 June 2022: $60,000).
Boxed to Go (JOA5 Investments Pty Ltd), a company associated with Daniel Agostinelli, provided corporate gift boxes
to the Group amounting to $1,750 (26 June 2022: $47,855).
Loans to/from and Outstanding balances with related parties
There were no loans to/from and no balances receivable from/owing to related parties outstanding at the reporting date.
NOTE 33. PARENT ENTITY INFORMATION
Set out below is the supplementary information about the parent entity.
Statement of profit or loss and other comprehensive income
Profit after income tax
Other comprehensive income for the year, net of tax
Total comprehensive income
Parent
2 Jul 2023
$'000
26 Jun 2022
$'000
123,592
36,142
–
–
123,592
36,142
65
Annual Report 2023for the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 33. PARENT ENTITY INFORMATION (CONTINUED)
Statement of financial position
Total current assets
Total non-current assets
Total assets
Total current liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Share-based payments reserve
Accumulated losses
Total equity
Parent
2 Jul 2023
$'000
26 Jun 2022
$'000
184,421
374,907
559,328
11,843
141,439
153,282
406,046
154,222
374,767
528,989
16,551
152,255
168,806
360,183
390,926
390,926
33,618
23,377
(18,498)
(54,120)
406,046
360,183
The financial information for the parent entity has been prepared on the same basis as the consolidated financial
statements, except as set out below.
– Investments in subsidiaries are accounted for at cost, less any impairment, in the parent entity.
– Dividends received from subsidiaries are recognised in the parent entity’s profit or loss.
NOTE 34. BUSINESS COMBINATIONS
2 July 2023
During the year to 2 July 2023, the Group completed the acquisition of 6 TAF stores. The total consideration transferred
for these acquisitions was $6,287,930. Goodwill of $3,387,273 was recognised on acquisition.
Details of the business combinations are as follows:
Cash and cash equivalents
Inventories
Right-of-use assets
Net deferred tax assets
Provisions
Lease liability
Net assets acquired
Reacquired rights
Goodwill
Acquisition-date fair value of the total consideration transferred
Representing:
Cash paid or payable to vendor
Outstanding debt
66
Provisional
fair value
$'000
2
1,533
2,030
531
(53)
(2,030)
2,013
888
3,387
6,288
6,100
188
6,288
Accent Group Limitedfor the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 34. BUSINESS COMBINATIONS (CONTINUED)
Details of the cash flow movement relating to the acquisition are as follows:
Cash used to acquire business, net of cash acquired:
Acquisition-date fair value of the total consideration transferred
Less: cash and cash equivalents
Less: outstanding debts / loans forgiven
Net cash used
Provisional
fair value
$'000
6,288
(2)
(188)
6,098
The fair value of assets acquired, liabilities and contingent liabilities assumed are initially estimated by the Group taking
into consideration all available information at the reporting date. Fair value adjustments on the finalisation of the
business combination accounting is retrospective, where applicable, to the period the combination occurred and may
have an impact on the assets and liabilities, depreciation and amortisation reported.
The 6 TAF stores contributed revenue of $8,399,000 from the acquisition dates to 2 July 2023.
26 June 2022
During the year to 26 June 2022, the Group completed the acquisition of 5 TAF stores. The total consideration
transferred for these acquisitions was $2,763,682. Goodwill of $1,396,985 was recognised on acquisition.
Details of the provisional assets and liabilities acquired are as follows:
Inventories
Other current assets
Right-of-use assets
Net deferred tax assets
Provisions
Deferred revenue
Lease liability
Net assets acquired
Reacquired rights
Goodwill
Acquisition-date fair value of the total consideration transferred
Representing:
Cash paid or payable to vendor
Outstanding debts / loans forgiven
Details of the cash flow movement relating to the acquisition are as follows:
Cash used to acquire business, net of cash acquired:
Acquisition-date fair value of the total consideration transferred
Less: outstanding debts / loans forgiven
Net cash used
Provisional
fair value
$'000
773
5
793
627
(41)
(161)
(793)
1,203
163
1,397
2,763
2,704
59
2,763
Provisional
fair value
$'000
2,763
(59)
2,704
67
Annual Report 2023for the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 35. INTERESTS IN SUBSIDIARIES
The consolidated financial statements incorporate the assets, liabilities and results of the following subsidiaries in
accordance with the accounting policy described in Note 2:
Ownership interest
2 Jul 2023
%
26 Jun 2022
%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
Name
Principal place of business / Country of incorporation
The Athlete's Foot Australia Pty Ltd
Australia
TAF Constructions Pty Ltd(a)
RCG Brands Pty Ltd
RCG Retail Pty Ltd
TAF eStore Pty Ltd(a)
TAF Partnership Stores Pty Ltd(a)
TAF Rockhampton Pty Ltd(b)
TAF Eastland Pty Ltd(b)
TAF The Glen Pty Ltd(b)
TAF Hornsby Pty Ltd(b)
TAF Hobart Pty Ltd(b)
TAF Booragoon Pty Ltd(b)
Accent Group Ltd(c)
Platypus Shoes Ltd(d)
Accent Footwear Ltd(d)
Hype DC Ltd(d)
TAF New Zealand Ltd(d)
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
New Zealand(g)
New Zealand(g)
New Zealand(g)
New Zealand(g)
New Zealand(g)
Accent Brands Pty Ltd(c)
Australia
Platypus Shoes (Australia) Pty Ltd(c)
Australia
42K Pty Ltd(e)
Australia
Accent Store Development Pty Ltd(f)
Australia
RCG Accent Group Holdings Pty Ltd
Australia
Hype DC Pty Ltd
Subtype Pty Ltd
Pivot Store Pty Ltd
Accent Lifestyle Pty Ltd
Accent Active Pty Ltd
Subtype Limited (d)
Accent Active (NZ) Limited
Accent Lifestyle (NZ) Limited
Australia
Australia
Australia
Australia
Australia
New Zealand(g)
New Zealand(g)
New Zealand(g)
(a) Indirectly held through The Athlete's Foot Australia Pty Ltd
(b) Indirectly held through TAF Partnership Stores Pty Ltd
(c) Indirectly held through RCG Accent Group Holdings Pty Ltd
(d) Indirectly held through Accent Group Ltd (New Zealand)
(e) Indirectly held through Accent Brands Pty Ltd
(f) This company was renamed during the year ended 26 June 2022 (previously RCG Grounded Pty Ltd)
(g) The functional currency of these foreign subsidiaries is NZD
68
Accent Group Limitedfor the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 36. DEED OF CROSS GUARANTEE
The following entities are party to a deed of cross guarantee under which each company guarantees the debts of
the others:
Accent Group Ltd
RCG Brands Pty Ltd
The Athlete's Foot Australia Pty Ltd
RCG Retail Pty Ltd
RCG Accent Group Holdings Pty Ltd
Hype DC Pty Limited
TAF Partnership Stores Pty Ltd
TAF eStore Pty Ltd
T.A.F Constructions Pty Ltd
Accent Group Pty Ltd
Platypus Shoes (Australia) Pty Ltd
42K Pty Ltd
Accent Store Development Pty Ltd
Subtype Pty Ltd
Pivot Store Pty Ltd
Accent Lifestyle Pty Ltd
Accent Active Pty Ltd
(ACN 108 096 251)
(ACN 125 433 972)
(ACN 001 777 582)
(ACN 144 955 117)
(ACN 613 017 422)
(ACN 081 432 313)
(ACN 164 791 048)
(ACN 158 031 040)
(ACN 097 684 430)
(ACN 001 742 552)
(ACN 122 726 907)
(ACN 169 043 145)
(ACN 611 621 482)
(ACN 628 866 419)
(ACN 634 893 691)
(ACN 636 815 284)
(ACN 637 053 028)
By entering into the deed, the wholly-owned entities have been relieved from the requirement to prepare financial
statements and directors' report under Corporations Instrument 2016/785 issued by the Australian Securities and
Investments Commission.
The above subsidiaries and Accent Group Limited, together referred to as the ‘Closed Group’, have either originally
entered the Deed on 23 February 2017 or have subsequently joined the Deed.
Set out below is a consolidated statement of profit or loss and other comprehensive income and statement of financial
position of the 'Closed Group'.
Statement of profit or loss and other comprehensive income
Revenue
Other income
Interest revenue
Cost of sales
Distribution expense
Marketing expense
Occupancy expense
Employee expenses
Other expenses
Depreciation, amortisation and impairment expense
Finance costs
Profit before income tax expense
Income tax expense
Profit after income tax expense
Other comprehensive income
Net change in the fair value of cash flow hedges taken to equity, net of tax
Foreign currency translation
Other comprehensive income for the year, net of tax
Total comprehensive income for the year
2 Jul 2023
$'000
26 Jun 2022
$'000
1,280,949
997,793
–
1,377
11,976
786
(545,538)
(444,670)
(54,826)
(48,558)
(21,740)
(268,866)
(54,326)
(45,243)
(45,066)
(16,723)
(215,719)
(44,882)
(142,196)
(135,888)
(19,086)
127,190
(28,761)
98,429
(4,058)
(5,161)
(9,219)
89,210
(14,650)
47,714
(12,364)
35,350
8,141
–
8,141
43,491
69
Annual Report 2023for the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 36. DEED OF CROSS GUARANTEE (CONTINUED)
Statement of financial position
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Lease receivable
Derivative financial instruments
Other current assets
Current tax receivable
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Lease receivable
Intangibles
Derivative financial instruments
Net deferred tax assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Deferred revenue
Provisions
Borrowings
Lease liabilities
Provision for income tax
Total current liabilities
Non-current liabilities
Provisions
Deferred revenue
Borrowings
Lease liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Retained earnings/(Accumulated losses)
Total equity
70
2 Jul 2023
$'000
26 Jun 2022
$'000
21,805
51,544
211,751
9,324
3,738
6,081
–
37,558
63,466
212,328
8,349
13,569
5,565
7,326
304,243
348,161
119,527
246,984
10,231
381,968
–
14,459
773,169
114,989
261,023
12,346
374,748
1,383
10,390
774,879
1,077,412
1,123,040
97,920
12,594
21,792
9,954
117,559
73
131,008
9,974
14,061
19,884
109,817
–
259,892
284,744
840
4,308
139,350
241,532
386,030
645,922
857
3,800
149,132
264,498
418,287
703,031
431,490
420,009
390,926
390,926
38,607
1,957
37,584
(8,501)
431,490
420,009
Accent Group Limitedfor the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 37. CASH FLOW INFORMATION
Reconciliation of profit after income tax to net cash from operating activities
Profit after income tax expense for the year
Adjustments for:
Depreciation and amortisation
Share-based payments
Provision for asset impairment
Foreign exchange differences
Net gain on lease modifications
Other non-cash items
Change in assets and liabilities, net of the effect from acquisition of businesses
Receivables
Inventories
Trade creditors and provisions
Tax assets and liabilities
Net cash from operating activities
NOTE 38. EARNINGS PER SHARE
Profit after income tax
Profit after income tax attributable to the owners of Accent Group Limited
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
88,653
31,464
159,433
143,539
3,137
–
633
(2,964)
(1,798)
5,068
7,750
301
(1,751)
(2,333)
15,462
3,558
(20,485)
10,959
(11,350)
(23,977)
(7,295)
(1,070)
256,588
140,346
Consolidated
2 Jul 2023
$'000
26 Jun 2022
$'000
88,653
88,653
31,464
31,464
Number
Number
Weighted average number of ordinary shares used as the denominator in calculating basic
earnings per share
548,623,486 541,750,781
Adjustments for calculation of diluted earnings per share:
Performance rights
18,927,830
21,186,481
Weighted average number of ordinary shares used as the denominator in calculating
diluted earnings per share
567,551,316 562,937,262
Basic earnings per share
Diluted earnings per share
Recognition and measurement
Cents
16.16
15.62
Cents
5.81
5.59
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Accent Group Limited,
excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares
outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
71
Annual Report 2023for the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 39. SHARE-BASED PAYMENTS
Option Plans
Employee Share Scheme
Shares under the Accent Group Employee Share Scheme ('ESS') are held in escrow until certain vesting conditions are
met. The shares were issued at market value at the date of the offer and the Company has provided employees with a
limited recourse loan to acquire the shares. Interest on the loan is equivalent to the value of franked dividends paid in
respect of the shares. The shares are treated as in substance options and accounted for as share-based payments.
There is no outstanding option granted during the financial year ended 2 July 2023. All shares under the ESS have vested
in the previous financial year ended 26 June 2022.
26 Jun 2022
Grant date
Expiry date
Exercise
price
Balance at
the start of
the year
Granted
Exercised
Expired/
forfeited/other
Balance at
the end of
the year
13/05/2016 28/02/2022
$1.490
200,000
-
(200,000)
-
-
The weighted average share price during the financial year was $0 (26 June 2022: $0) as all shares under the ESS have
vested as at 2 July 2023.
The weighted average remaining contractual life of options outstanding at the end of the financial year was 0 years
(2022: 0 years) as all shares under the ESS have vested as at 2 July 2023.
Performance rights
On 14 October 2016, the Board approved a performance rights plan called the RCG Performance Rights Plan ('PRP').
The PRP was introduced following a review by the Board of the existing remuneration arrangements of the Company.
The PRP replaces the ESS.
The objective of the PRP is to align the interests of employees of the Group with those of the shareholders and provide
employees of the Group who are considered to be key to the future success of the Company with an opportunity to receive
shares in order to reward and retain the services of those persons and recognise the employees of the Group for their
contribution to the future success of the Company.
Eligibility and grant of performance rights
The Board may, from time to time, grant performance rights to an employee of the Group who the Board determines to
be eligible to participate in the PRP. This may include an executive director of the Company but may not include a non-
executive director of the Company. The performance rights granted are under the terms and conditions of the PRP and
may include additional terms and conditions, including any performance conditions, as the Board determine. The Board
may only grant performance rights where an employee continues to satisfy any relevant conditions imposed by the Board.
Vesting of performance rights
Vesting of performance rights are subject to prescribed performance conditions. The number of equity instruments that
are expected to vest is based on management’s assessment of the likelihood of the vesting conditions attached to the
equity instruments being satisfied. The key vesting conditions that are assessed are earnings per share targets and required
service periods. If the performance condition is met, 100% of the performance rights vest. If the performance condition is
not met, none of the performance rights vest unless the Board determines otherwise.
Recognition and measurement
The Group recognises the fair value at the grant date of equity settled shares as an expense with a corresponding
increase in equity over the vesting period. Fair value is independently determined using the Black-Scholes option pricing
model, as appropriate, that takes into account the exercise price, the term of the option, the impact of dilution, the share
price at grant date and expected price volatility of the underlying share, the expected dividend yield and the risk-free
interest rate for the term of the option. Vesting is also subject to the recipients of the performance rights remaining in
employment with the Company.
72
Accent Group Limitedfor the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 39. SHARE-BASED PAYMENTS (CONTINUED)
Lapsing of performance rights
An unvested performance right will lapse in various prescribed circumstances, unless the Board determines otherwise.
Such circumstances include:
– the circumstances specified by the Board on or before the grant of the performance right;
– if a participant ceases to be an employee and/or director of a Group company for any reason or they cease to satisfy
any other relevant conditions imposed by the Board at the time of the grant of the performance rights;
– failure to meet the performance conditions attaching to the performance right or any performance condition no
longer, in the opinion of the Board, being capable of being satisfied in accordance with their terms; and
– if in the opinion of the Board a participant acts fraudulently or dishonestly, is in breach of their material duties or
obligations to any Group company, has committed an act of harassment or discrimination or has done any act which
has brought the Group or any Group company into disrepute.
Performance rights outcomes
In 2020 the Board exercised its discretion and determined that the performance condition for 50% of the performance
rights granted in 2017 had been met and would therefore vest on 19 August 2022. These performance rights are still subject
to the recipients remaining in employment with the Group. For the remaining 50%, on 31 May 2022, the Board exercised
its discretion and deferred the vesting period by 12 months to 19 August 2023. These Performance Rights continue to be
subject to all other relevant plan rules. Shareholder approval for the deferral has been obtained on 11 November 2022 in
accordance with ASX requirements.
More information is available in relation to the outcomes of performance rights within the Remuneration Report.
Set out below are summaries of the performance rights granted:
2 Jul 2023
Grant date
Expiry date
24/08/2023
24/08/2023
24/08/2023
24/08/2023
01/07/2024
01/09/2024
01/09/2025
03/10/2017
27/12/2017
20/06/2018
30/11/2019
30/11/2019
30/11/2020
28/06/2021
26 Jun 2022
Balance at
the start of
the year
12,800,000
6,500,000
400,000
1,486,481
3,269,882
6,076,707
5,060,662
35,593,732
Granted
Exercised
Expired/
forfeited/other
Balance at
the end of
the year
-
-
-
-
-
-
–
–
(6,400,000)
(3,250,000)
(200,000)
(743,243)
–
–
–
–
6,400,000
3,250,000
200,000
743,238
-
-
-
(324,099)
2,945,783
(687,898)
5,388,809
(530,014)
4,530,648
(10,593,243)
(1,542,011)
23,458,478
Grant date
Expiry date
Balance at the
start of the year
Granted
Exercised
Expired/
forfeited/other
Balance at the
end of the year
03/10/2017
27/12/2017
20/06/2018
30/11/2019
30/11/2019
30/11/2020
28/06/2021
30/10/2022
30/10/2022
30/10/2022
30/11/2022
30/11/2024
31/08/2024
01/09/2025
12,800,000
6,700,000
400,000
1,597,379
3,361,931
6,563,251
–
–
–
–
–
–
–
5,471,635
31,422,561
5,471,635
–
–
–
–
–
–
–
–
–
12,800,000
(200,000)
6,500,000
–
(110,898)
400,000
1,486,481
(92,049)
3,269,882
(486,544)
6,076,707
(410,973)
5,060,662
(1,300,464)
35,593,732
The weighted average remaining contractual life of performance rights outstanding at the end of the financial year was
0.88 years (2022: 1.26 years).
73
Annual Report 2023for the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 40. SUMMARY OF OTHER SIGNIFICANT ACCOUNTING POLICIES
Significant and other accounting policies adopted in the preparation of the financial statements are provided throughout
the notes. These policies have been consistently applied to all the years presented, unless otherwise stated.
Current and non-current classification
Assets and liabilities are presented in the statement of financial position based on current and non-current classification.
An asset is classified as current when: it is either expected to be realised or intended to be sold or consumed in the
Group's normal operating cycle; it is held primarily for the purpose of trading; it is expected to be realised within
12 months after the reporting period; or the asset is cash or cash equivalent unless restricted from being exchanged or
used to settle a liability for at least 12 months after the reporting period. All other assets are classified as non-current.
A liability is classified as current when: it is either expected to be settled in the Group's normal operating cycle; it is
held primarily for the purpose of trading; it is due to be settled within 12 months after the reporting period; or there is
no unconditional right to defer the settlement of the liability for at least 12 months after the reporting period. All other
liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified as non-current.
Business combinations
The acquisition method of accounting is used to account for business combinations regardless of whether equity
instruments or other assets are acquired.
The consideration transferred is the sum of the acquisition date fair values of the assets transferred, equity instruments
issued or liabilities incurred by the acquirer to former owners of the acquiree and the amount of any non-controlling
interest in the acquiree. For each business combination, the non-controlling interest in the acquiree is measured at
either fair value or at the proportionate share of the acquiree's identifiable net assets. All acquisition costs are expensed
as incurred to profit or loss.
On the acquisition of a business, the Group assesses the financial assets acquired and liabilities assumed for appropriate
classification and designation in accordance with the contractual terms, economic conditions, the Group's operating or
accounting policies and other pertinent conditions in existence at the acquisition date.
Where the business combination is achieved in stages, the Group remeasures its previously held equity interest in the
acquiree at the acquisition date fair value and the difference between the fair value and the previous carrying amount is
recognised in profit or loss.
Contingent consideration to be transferred by the acquirer is recognised at the acquisition-date fair value. Subsequent
changes in the fair value of the contingent consideration classified as an asset or liability is recognised in profit or
loss. Contingent consideration classified as equity is not remeasured and its subsequent settlement is accounted for
within equity.
The difference between the acquisition date fair value of assets acquired, liabilities assumed and any non-controlling
interest in the acquiree and the fair value of the consideration transferred and the fair value of any pre-existing
investment in the acquiree is recognised as goodwill. If the consideration transferred and the pre-existing fair value is
less than the fair value of the identifiable net assets acquired, being a bargain purchase to the acquirer, the difference
is recognised as a gain directly in profit or loss by the acquirer on the acquisition date, but only after a reassessment of
the identification and measurement of the net assets acquired, the non-controlling interest in the acquiree, if any, the
consideration transferred and the acquirer's previously held equity interest in the acquirer.
If the initial accounting for a business contribution is incomplete by the end of the reporting period in which the
combination occurs, the Group reports provisional amounts for items for which the accounting is incomplete.
Government grants
Government grants are recognised where there is reasonable assurance that the grant will be received and all attached
conditions will be complied with. When the grant relates to an expense item, it is recognised as a reduction of the expense
to which it relates.
Dividends
Dividends are recognised when declared during the financial year.
74
Accent Group Limitedfor the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS NOTE 40. SUMMARY OF OTHER SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Goods and Services Tax ('GST') and other similar taxes
Revenues, expenses and assets are recognised net of the amount of associated GST, unless the GST incurred is not
recoverable from the tax authority. In this case it is recognised as part of the cost of the acquisition of the asset or as part
of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the tax authority is included in other receivables or other payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the tax authority, are presented as operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the tax
authority.
NOTE 41. EVENTS AFTER THE REPORTING PERIOD
Apart from the dividend declared as disclosed in Note 25 and the matters described above, no other matters or
circumstances have arisen since 2 July 2023 that have significantly affected, or may significantly affect the Group's
operations, the results of those operations, or the Group's state of affairs in future financial years.
75
Annual Report 2023for the year ended 2 July 2023NOTES TO THE FINANCIAL STATEMENTS DIRECTORS' DECLARATION
In the directors' opinion:
– the attached financial statements and notes comply with the Corporations Act 2001, the Accounting Standards, the
Corporations Regulations 2001 and other mandatory professional reporting requirements;
– the attached financial statements and notes comply with International Financial Reporting Standards as issued by
the International Accounting Standards Board as disclosed in Note 2 of the financial statements;
– the attached financial statements and notes give a true and fair view of the Group's financial position as at 2 July 2023
and of its performance for the financial year ended on that date;
– there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due
and payable; and
– at the date of this declaration, there are reasonable grounds to believe that the members of the extended closed
group identified in Note 36 to the financial statements will be able to meet any obligations or liabilities to which
they are, or may become, subject by virtue of the deed of cross guarantee described in Note 36 to the financial
statements.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
David Gordon
Chairman
24 August 2023
Melbourne
76
Accent Group Limitedfor the year ended 2 July 2023
INDEPENDENT AUDITOR’S REPORT
Independent auditor’s report
To the members of Accent Group Limited
Report on the audit of the financial report
Our opinion
In our opinion:
The accompanying financial report of Accent Group Limited (the Company) and its controlled entities
(together the Group) is in accordance with the Corporations Act 2001, including:
(a)
giving a true and fair view of the Group's financial position as at 2 July 2023 and of its financial
performance for the period then ended
(b)
complying with Australian Accounting Standards and the Corporations Regulations 2001.
What we have audited
The Group financial report comprises:
•
•
•
•
•
•
the statement of financial position as at 2 July 2023
the statement of changes in equity for the period then ended
the statement of cash flows for the period then ended
the statement of profit or loss and other comprehensive income for the period then ended
the notes to the consolidated financial statements, which include significant accounting policies
and other explanatory information
the directors’ declaration.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the financial
report section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Independence
We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
PricewaterhouseCoopers, ABN 52 780 433 757
2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331, MELBOURNE VIC 3001
T: 61 3 8603 1000, F: 61 3 8603 1999
Liability limited by a scheme approved under Professional Standards Legislation.
77
Annual Report 2023
Our audit approach
An audit is designed to provide reasonable assurance about whether the financial report is free from
material misstatement. Misstatements may arise due to fraud or error. They are considered material if
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial report.
We tailored the scope of our audit to ensure that we performed enough work to be able to give an
opinion on the financial report as a whole, taking into account the geographic and management
structure of the Group, its accounting processes and controls and the industry in which it operates.
Materiality
Audit scope
•
For the purpose of our audit we used overall
Group materiality of $5.9 million, which represents
approximately 5% of the Group’s profit before tax
appropriate benchmark.
• Our audit focused on where the Group made
subjective judgements; for example, significant
accounting estimates involving assumptions and
inherently uncertain future events.
• We applied this threshold, together with qualitative
considerations, to determine the scope of our audit
and the nature, timing and extent of our audit
procedures and to evaluate the effect of
misstatements on the financial report as a whole.
• We chose Group profit before tax because, in our
view, it is the benchmark against which the
performance of the Group is most commonly
measured.
• We utilised a 5% threshold based on our
professional judgement, noting it is within the
range of commonly acceptable thresholds.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report for the current period. The key audit matters were addressed in the
context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters. Further, any commentary on the outcomes of a
particular audit procedure is made in that context. We communicated the key audit matters to the
Audit and Risk Committee.
78
Accent Group LimitedINDEPENDENT AUDITOR’S REPORT Key audit matter
How our audit addressed the key audit matter
The carrying value of goodwill
(Refer to note 16)
Our procedures included the following, amongst others:
The Group has recognised goodwill of $322.6 million.
• Obtaining the Group’s model and evaluating
The impairment assessment for goodwill is performed
at a Group level.
The Group performed an impairment assessment for
goodwill, by preparing a financial model to determine if
the carrying value of the assets is supported by
forecast future cash flows, discounted to present value
(the “model”).
We considered the carrying value of goodwill to be a
key audit matter due to the magnitude of the balances
and assumptions applied by the Group in estimating
future cash flows.
the appropriateness of the valuation
methodology used to estimate the recoverable
amount of goodwill against our understanding
of the nature of the Group’s operations.
Evaluating the Group’s cash flow forecasts
included in the model and the process by
which they were developed, with reference to
the historical performance of the business.
Assessing the historical accuracy of the
Group’s prior year forecasts to actual
performance.
Assessing the forecast cash flow growth
assumptions, for appropriateness with
reference to external market data where
possible.
Together with PwC valuation experts,
comparing the discount rate and long term
growth rate used in the model to external
market data.
Evaluating the reasonableness of disclosures
in the financial report in light of the
requirements of Australian Accounting
Standards.
•
•
•
•
•
79
Annual Report 2023INDEPENDENT AUDITOR’S REPORT Key audit matter
How our audit addressed the key audit matter
The carrying value of right of use assets and
property, plant and equipment
(Refer to note 14 and 15)
The Group has recognised property, plant and
equipment and right of use assets of $140.5 million and
$281.4 million respectively as at 2 July 2023. These
balances relate predominantly to retail stores (“store
assets”).
The Group has determined that each store is a
separate Cash Generating Unit (CGU). A store is
assessed for impairment if an indicator of impairment is
identified.
We considered the impairment assessment for store
assets to be a key audit matter due to the magnitude of
the balances and assumptions applied by the Group in
estimating future cash flows.
Our procedures included the following, amongst others:
• Obtaining the Group’s assessment of
indicators for impairment for store assets, and
evaluating the appropriateness of the basis of
store profitability used for the assessment.
For the stores where an impairment indicator
was identified:
•
Assessing the forecast cash flow
assumptions for the recoverable amount
assessment for appropriateness with
reference to historical growth rates and
external market data where possible.
•
•
Testing the mathematical accuracy of
the recoverable amount assessment and
the comparison to the carrying value for
a store.
Together with PwC valuation experts,
comparing the discount rate used in the
recoverable amount assessment to
external market data.
The valuation of inventory
(Refer to note 10)
Our procedures included the following, amongst others:
The Group has recognised a net realisable value
provision of $9.9 million at 2 July 2023.
The Group’s estimate of the inventory provision is
based on historical finished goods sold below cost and
inventory write-off transactional data.
We considered the valuation of inventory to be a key
audit matter due to the magnitude of the inventory
balance and the judgement required by the Group in
determining the net realisable value of inventory.
• Obtaining the Group’s inventory provision
assessments and evaluating the
appropriateness of the methodology used.
•
•
•
Testing the mathematical accuracy of key
data included in the calculation of the Group’s
inventory provision and comparing key inputs
to supporting evidence.
Comparing the selling price (net realisable
value) subsequent to period end to the
recorded cost, for a sample of inventory items.
Evaluating the reasonableness of disclosures
in the financial report in light of the
requirements of Australian Accounting
Standards.
80
Accent Group LimitedINDEPENDENT AUDITOR’S REPORT Other information
The directors are responsible for the other information. The other information comprises the
information included in the annual report for the period ended 2 July 2023, but does not include the
financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon through our opinion on the financial report. We
have issued a separate opinion on the remuneration report.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of
this auditor’s report, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is
free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that
an audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing
and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of our
auditor's report.
81
Annual Report 2023INDEPENDENT AUDITOR’S REPORT Report on the remuneration report
Our opinion on the remuneration report
We have audited the remuneration report included in pages 21 to 34 of the directors’ report for the
period ended 2 July 2023.
In our opinion, the remuneration report of Accent Group Limited for the period ended 2 July 2023
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the remuneration report, based on our audit conducted in accordance with
Australian Auditing Standards.
PricewaterhouseCoopers
Alison Tait Milner
Partner
Melbourne
24 August 2023
82
Accent Group LimitedINDEPENDENT AUDITOR’S REPORT SHAREHOLDER INFORMATION
The shareholder information set out below was applicable as at 8 August 2023.
DISTRIBUTION OF EQUITABLE SECURITIES
Analysis of number of equitable security holders by size of holding:
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and over
Holding less than a marketable parcel
EQUITY SECURITY HOLDERS
Twenty largest quoted equity security holders
The names of the twenty largest security holders of quoted equity securities are listed below:
Number
of holders
of ordinary
shares
4,040
5,081
2,160
3,040
262
14,583
813
BBRC INTERNATIONAL PTE LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
CITICORP NOMINEES PTY LIMITED
CRAIG JOHN THOMPSON
NETWEALTH INVESTMENTS LIMITED
BNP PARIBAS NOMS PTY LTD
JAMES WILLIAM DUELL
MRS CINDY GILBERT
MR DANIEL JOHN GILBERT
HIT GROUP LIMITED
NATIONAL NOMINEES LIMITED
BNP PARIBAS NOMINEES PTY LTD
BNP PARIBAS NOMINEES PTY LTD
RIVAN PTY LTD
PITTMANN PTY LIMITED
TOM HADLEY ENTERPRISES PTY LTD
BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV LTD
MR GEOFFREY WILLIAM WEBSTER
MR TERRY SPYRIDES
Ordinary shares
Number held
107,502,463
59,165,357
40,715,138
37,964,092
32,186,589
18,722,701
13,582,654
12,000,000
11,000,000
11,000,000
7,500,000
6,784,779
3,784,549
3,106,225
2,599,034
2,398,230
1,500,000
1,344,659
1,295,642
1,150,000
% of total
shares
issued
19.46
10.71
7.37
6.87
5.83
3.39
2.46
2.17
1.99
1.99
1.36
1.23
0.69
0.56
0.47
0.43
0.27
0.24
0.23
0.21
375,302,112
67.93
83
Annual Report 2023 SUBSTANTIAL HOLDERS
Substantial holders in the Company are set out below:
BBRC International
Craig John Thompson
VOTING RIGHTS
The voting rights attached to ordinary shares are set out below:
Ordinary shares
All ordinary shares carry one vote per share without restriction.
There are no other classes of equity securities.
Ordinary shares
Number held
107,502,463
32,186,589
% of total
shares
issued
19.46
5.83
84
Accent Group LimitedSHAREHOLDER INFORMATION CORPORATE DIRECTORY
DIRECTORS
David Gordon - Chairman
Daniel Agostinelli - Chief Executive Officer
Stephen Goddard
Michael Hapgood
Donna Player
Joshua Lowcock
Brett Blundy
Timothy Dodd – alternate Director for Brett Blundy
JOINT COMPANY SECRETARIES
Matthew Durbin
Alethea Lee
REGISTERED OFFICE AND PRINCIPAL
PLACE OF BUSINESS
SHARE REGISTER
AUDITOR
BANKERS
2/64 Balmain Street
Richmond VIC 3121
Telephone: +61 3 9427 9422
Facsimile: +61 3 9427 9622
Email: investors@accentgr.com.au
Computershare Investor Services Pty Limited
Level 4
60 Carrington Street
Sydney NSW 2000
Telephone: 1300 787 272
PricewaterhouseCoopers
2 Riverside Quay, Southbank
Melbourne VIC 3006
National Australia Bank
Hongkong and Shanghai Banking Corporation
Australia and New Zealand Banking Group
STOCK EXCHANGE LISTING
Accent Group Limited shares are listed on the
Australian Securities Exchange (ASX code: AX1)
WEBSITE
www.accentgr.com.au
CORPORATE GOVERNANCE
STATEMENT
www.accentgr.com.au/investor/investor-documents
85
Annual Report 2023 Accent Group Limited
(ABN: 85 108 096 251)
2/64 Balmain Street, Richmond VIC 3121
+61 3 9427 9422
www.accentgr.com.au