More annual reports from BlackWall Property Trust:
2023 ReportPeers and competitors of BlackWall Property Trust:
CyrusOne IncA N N U A L
R E P O R T
J U N E 2 0 2 1
Manager of Australia’s First
Listed Flexible Property Security
Who We Are
BlackWall is a fund manager with
capabilities across
investment,
asset, development and property
management. This
integrated
offering means we see opportunities
where others don’t.
We put our money where our mouth
is, and hold strategic positions in the
funds that we manage – the largest
being Australia’s first listed flexible
property security, WOTSO Property
(ASX:WOT). We have a close-knit
and diverse team of individuals who
take an entrepreneurial approach
to growing the BlackWall business
and brand.
2
2
BlackWall Limited June 2021
Other Comprehensive Income
Contents
3 Directors’ Report
6 Statement of Profit or Loss and
6 Balance Sheet
7 Statement of Cash Flows
8 Statement of Changes in Equity
9 Notes to the Financial Statements
22 Directors’ Report – Continued
25 Directors’ Declaration
26 Auditors Independence Declaration
and Audit Report
BlackWall Limited June 2021 Directors’ Report
Key Numbers
BlackWall Limited will pay a final dividend of 2.6 cents per share
bringing the full year dividend to 5.0 cents per share.
BlackWall Limited (BlackWall, BWF or the Group) is now a simple business. We generate annuity
income from the real estate investment structures that we manage. This income comes in the forms
of management, transactional and performance fees as well as distribution income from the strategic
investments we hold in our funds. We aim to grow our assets under management and therefore our fee
income which results in dividend growth for our shareholders.
Our dividends over the past 5 years are shown below. Over this period our total shareholder return has
averaged 18% p.a. The final dividend declared of 2.6 cps brings our full year dividend to 5.0 cps. This
reflects a yield of 10% on a share price of $0.52, rising to 12% when franking is included.
Dividends
Interim
Final
Total
2021
$0.024
$0.026*
$0.050
2020
$0.020
$0.021
$0.041
2019
$0.020
$0.021
$0.041
2018
$0.019
$0.021
$0.040
2017
$0.018
$0.018
$0.036
*To be paid on 15 September 2021.
Review of Financial Performance
Operating Income
Investment Income
Revenue
Expenses
Net Profit from Continuing Operations
Tax Expense
Net Profit after Tax from Continuing Operations
2021
$’000
6,234
1,558
7,792
(3,893)
3,899
(845)
3,054
2020
$’000
6,285
4,395
10,680
(4,798)
5,882
(1,590)
4,292
Net profit after tax from continuing operations was $3.1 million in 2021, a decrease of $1.2 million from
2020. However, this was largely driven by the decrease in non-cash investment income as a result of a
one-off gain on the WOTSO demerger in 2020 ($2.7 million). This aside, BWF’s profitability has improved
with operating revenue staying flat and expenses decreasing by $0.9 million. Expenses have decreased
due to a reduction in headcount as a result of the WOTSO demerger and a reduction in associated
overheads. This has been a major driver in operating cash flows rising 42% to $3.8 million.
Financial
10%
dividend yield on
price of 52 cps
5 cps
fully franked dividend
for the year, up 22%
18% p.a.
5 year total shareholder return
$3.8 million
operating cash flow
Operational
3
new properties
acquired
130,000 sqm
of managed space
Corporate Social Responsibility
7
disability employment
service employees
$160,000
in contributions to not for profits
since 2019 from the managed group
3
BlackWall Limited June 2021 The Year that Was
The year started and ended in lockdown for much of Australia,
yet BlackWall and its funds took some significant steps forward
and are well positioned for the future.
Seph Glew, Chairman
Growth in management portfolio
We have grown our area under management to
130,000 sqm following the acquisition of 3 new properties in
the last 6 months, 1 in Brookvale, NSW and 2 in Newcastle,
NSW. We have also overseen the development of existing
assets, namely the properties at North Strathfield, NSW
and Fortitude Valley, QLD, which has seen an
increase of approximately 1,600 sqm in net
lettable area (NLA) and improvement
of the assets.
Penrith Fund Completion
The PIPES Mortgage fund, secured against the
property at 120 Mulgoa Rd, Penrith, came to the end of
its 7 year period in December 2020. The fund paid annual
distributions of 9% through its life and a final bonus of 16%
bringing its total internal rate of return to 11%. The property
also joined WOT as part of the stapling. BlackWall received
performance fees of $1,031,000. We think the PIPES
structure will be applicable to future opportunities
and remains attractive to investors as it allows
participation in the capital growth of an asset
whilst receiving fixed distributions.
Formation of WOTSO Property
The stapling of BlackWall Property Trust (BWR) to WOTSO Limited to form Australia’s
first listed flexible property vehicle, WOTSO Property, was successfully completed in
February 2021. Following the acquisition of 3 new assets in the last 6 months, WOT owns
over 87,000 sqm of property and operates nearly 37,000 sqm of flexible workspaces under
the WOTSO brand. Property valuations grew by $8.4 million, whilst net debt is at a modest
25%. We continue to look for acquisition opportunities focusing on suburban and regional
assets that would suit the WOTSO flexi property offering.
The WOTSO WorkSpace business experienced healthy growth in its turnover as it recovered
from the initial COVID restrictions. Its annualised turnover reached $21 million in June 2021,
some 30% above its pre-COVID levels. WOTSO’s suburban focus has benefitted from the
shift to flexible work practices and its near to home solution is helping businesses of all
sizes adapt to these new workforce trends. The most recent lockdowns in Australia are
having an effect on turnover as WOTSO again provides support to its members
via a ‘penalty-free’ suspension policy. However, this is somewhat mitigated
by government assistance being granted through payroll support
and rent relief packages. Once restrictions ease, we expect
to see WOTSO’s revenue numbers quickly bounce back
as they did last year. Further information on WOT
can be found in its Annual Report.
4
BlackWall Limited June 2021 What Being a Good Corporate Citizen Means to Us
It has become standard practice to comment on Corporate Social Responsibility (CSR) in Annual Reports. To us,
CSR is about “doing the right thing” and this is what guides our corporate behaviour. Our COVID relief packages
to our tenants and members reflected this and have resulted in the provision of $4.8 million in rent relief since
the start of the pandemic. We prefer to put into place smaller, more tangible programmes and practices rather
than set grandiose goals such as “carbon neutrality”. Some examples of what we mean are below.
Sustainable Fit Outs
Walk into any WOTSO site and you will immediately know you are in one. Why? Our reuse of materials. We’ve
been known to turn go-kart tyres into lights, computer floor tiling into walls or server racks into tables. We
upcycle, reuse and as a result reduce waste in all of our buildings. It has also helped set the “vibe” for WOTSO’s
flexible spaces and communities. The workspaces are homely and the community created tends to be a
supportive one as a result.
Charity and Not for Profit Support
There are thousands of worthy not for profits deserving of resources, which makes the decision of who and
how to support them a difficult one. We commit to a small group of organisations that have a personal affiliation
with our leaders and staff. We have long lasting relationships with local sporting groups and charities such as
The Kid’s Cancer Project (TKCP). We like engaging with groups that our staff can be involved in as well. In
September all of our staff and WOTSO sites are participating in the TKCP Better Challenge (betterchallenge.
org.au) to run walk or roll 90km.
Employee Development
Across our businesses we have a young workforce. The newly established BlackWOT Academy gives our
employees access to personal development courses that are not related to their employment. The goal is for
our employees to grow personally as well as professionally. Sometimes this may even lead to a career change,
something that we would support as we recognise the long-term benefits for our business and that individual.
We are particularly proud of our Disability Employment Service initiative in which many of our WOTSO sites now
participate. We have 7 employees (and growing) who each have a real impact on the WOTSO communities
they work within.
COVID and The Year Ahead
As we all continue to suffer from pandemic fatigue, we are firmly of the view that wide-spread vaccination is the only path out of COVID. WOTSO’s Vaccine for Caffeine incentive programme is our way of encouraging and supporting
Australia’s vaccination efforts. WOTSO members who have received at least one vaccine dose will have the chance to win a share of $27,000 worth of vouchers to spend at their favourite local cafe, restaurant or business. Hopefully,
by the time we are writing our half year report, life will be somewhat returning to normal. As a business, we are well placed across the board for what comes next and are confident that our flexible property strategy will allow us to
capitalise on opportunities in a unique market.
Tim Brown and Jessie Glew (Joint Managing Directors)
5
BlackWall Limited June 2021 Financial Statements
Statement of Profit or Loss and other Comprehensive
Income for the year ended 30 June 2021
Balance Sheet at 30 June 2021
Note
3
3
3
2
4
22
5
9
6
16
REVENUE
BlackWall
Management fees
Performance and transaction fees
Staff payroll recovery
Government COVID stimulus
Total BlackWall
Investments
Unrealised gain
Share of net (loss) / profit of equity accounted investment
Other investment income
Total Investments
Total Revenue
EXPENSES
Operating expenses
Depreciation - right of use asset
Depreciation - property, plant and equipment
Finance costs - lease liability interest
Finance costs - interest expense
Total Expenses
Profit Before Income Tax From Continuing Operations
Income tax expense
Profit After Tax From Continuing Operations
Discontinued operation - WOTSO Franchise
Discontinued operation - WOTSO Limited
Discontinued operation - Kirela
Profit for the Year
Other comprehensive income
Profit and Other Comprehensive Income
Profit and Other Comprehensive Income Attributable to:
Owners of the Company
Non-controlling Interests
2021
$’000
5,107
339
284
504
6,234
1,567
(14)
5
1,558
7,792
(3,699)
(118)
(51)
(21)
(4)
(3,893)
3,899
(845)
3,054
(25)
-
-
3,029
-
3,029
3,029
-
3,029
Restated*
2020
$’000
4,725
598
737
225
6,285
4,308
72
15
4,395
10,680
(4,594)
(73)
(107)
(16)
(8)
(4,798)
5,882
(1,590)
4,292
(75)
1,195
(876)
4,536
-
4,536
4,536
-
4,536
Earnings Per Share
Profit Attributable to the Ordinary Equity Holders:
Basic and diluted earnings per share
Basic and diluted earnings per share (continuing operations)
*2020 restated for WOTSO Franchise discontinued operation.
6
18
18
4.8 cents
4.8 cents
7.2 cents
6.8 cents
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Performance fee receivable
Provision for tax receivable
Total Current Assets
Non-current Assets
Investments
Investment using equity method
Right of use lease asset
Property, plant and equipment
Total Non-current Assets
Total Assets
LIABILITIES
Current Liabilities
Trade and other payables
Right of use lease liability
Provision for employee benefits
Provision for tax payable
Deferred rent payable
Tenant deposits
Total Current Liabilities
Non-current Liabilities
Deferred tax liabilities
Right of use lease liability
Provision for employee benefits
Total Non-current Liabilities
Total Liabilities
Net Assets
EQUITY
Share capital
Reserves
Retained earnings
Total Equity
Statutory net assets per share
Note
2021
$’000
7
3
15
8
22
10
9
11
14
12
15
13
14
12
3,133
332
-
-
3,465
22,602
58
579
141
23,380
26,845
482
132
390
396
-
-
1,400
2,870
464
114
3,448
4,848
2020
$’000
2,724
548
598
354
4,224
20,206
72
2,308
725
23,311
27,535
517
624
335
-
62
20
1,558
2,373
1,699
96
4,168
5,726
21,997
21,809
14,080
73
7,844
21,997
$0.35
14,080
73
7,656
21,809
$0.35
BlackWall Limited June 2021 Reconciliation of Operating Cash Flows
Profit for the Year (continuing)
Non-Cash Flows in Profit:
Unrealised gains
Depreciation on right of use lease asset
Depreciation on property, plant and equipment
Interest expense on lease liability
Equity accounted profit - IndigoBlack
Changes in Operating Assets and Liabilities:
Decrease / (increase) in trade and other receivables
Increase / (decrease) in deferred tax liabilities
Increase / (decrease) in trade and other payables
Increase / (decrease) in income taxes payable
Increase / (decrease) in provisions
Net Cash Flows from Operating Activities (continuing)
2021
$’000
3,054
(1,567)
118
51
21
14
807
465
-
750
73
3,786
2020
$’000
4,292
(4,308)
73
107
16
(72)
2,438
1,643
(358)
(1,132)
(39)
2,660
Note
2
16
9
17
Statement of Cash Flows
for the year ended 30 June 2021
Cash Flows From Operating Activities (continuing)
Management fee receipts
Government COVID stimulus
Income tax refund / (paid)
Payroll recovery receipts
Bank interest received
Payments to suppliers and employees
Interest paid
Net Cash Flows From Operating Activities (continuing)
Cash Flows From Investing Activities (continuing)
Returns of capital from BWR investment
Proceeds on disposal of WOTSO Franchise (net of cash disposed)
Investment in WOTSO Property
Payment for property, plant and equipment
Loans paid
Investment in WOTSO Limited
Cash leaving group on disposal of Kirela
Net Cash Flows From Investing Activities (continuing)
Cash Flows From Financing Activities (continuing)
Dividends paid to shareholders
Repayment of right of use leases
Net Cash Flows From Financing Activities (continuing)
Net Increase in Cash Held (continuing)
Reconciliation of Cash Balances:
Cash and cash equivalents at the beginning of the year
Less WOTSO Limited cash balance reclassified as held for sale
Net increase / (decrease) in cash held - continuing
Net increase / (decrease) in cash held - WOTSO Franchise
Net increase / (decrease) in cash held - Kirela
Cash at End of the Year
All items inclusive of GST where applicable.
*Refer to Note 27 for further information.
2021
$’000
6,761
504
370
284
4
(4,133)
(4)
3,786
804
428
(1,633)
(28)
-
-
-
(429)
(2,841)
(129)
(2,970)
387
2,724
-
387
22
-
3,133
Restated*
2020
$’000
8,303
165
(1,079)
737
8
(5,466)
(8)
2,660
804
-
-
(25)
(858)
(6,852)
(13)
(6,944)
(2,588)
(81)
(2,669)
(6,953)
11,493
(50)
(6,953)
50
(1,816)
2,724
7
BlackWall Limited June 2021 Statement of Changes in Equity for the year ended 30 June 2021
No. of Shares on Issue
Issued Capital
$’000
Retained Earnings
$’000
Reserves
$’000
Balance at 1 July 2020
Profit for the year
Other comprehensive income
Total Comprehensive Income for the Year
Transactions with Owners in Their Capacity as Owners:
Dividend paid
Total Transactions with Owners
Balance at 30 June 2021
Balance at 1 July 2019
Profit for the year
Other comprehensive income
Total Comprehensive Income for the Year
Transactions with Owners in Their Capacity as Owners:
Dividend paid
Demerger of WOTSO Limited
Issue of shares
Total Transactions with Owners
Balance at 30 June 2020
Share Capital and Reserves
(a) Summary Table
63,141,445 ordinary shares (June 2020: 63,141,445)
Total
(b) Movement in Shares on Issue
Number of Shares
At the beginning of reporting period
Issue of shares to employees
At reporting date
8
63,141,445
-
-
-
-
-
63,141,445
63,115,445
-
-
-
-
-
26,000
26,000
63,141,445
14,080
-
-
-
-
-
14,080
17,555
-
-
-
-
(3,498)
23
(3,475)
14,080
7,656
3,029
-
3,029
(2,841)
(2,841)
7,844
13,880
4,536
-
4,536
(2,588)
(8,172)
-
(10,760)
7,656
73
-
-
-
-
-
73
73
-
-
-
-
-
-
73
Total
$’000
21,809
3,029
-
3,029
(2,841)
(2,841)
21,997
31,508
4,536
-
4,536
(2,588)
(11,670)
23
(14,235)
21,809
2021
$’000
14,080
14,080
2020
$’000
14,080
14,080
No further shares have been issued since 30 June 2021. No amounts are unpaid on any of the shares. Ordinary
shares participate in dividends. All ordinary shares carry one vote per share without restriction. All shares are
fully paid.
(c) Reserves
Share options reserve
2020
$’000
Total
2021
$’000
73
73
2020
$’000
73
73
63,115,445
26,000
The following options are on issue at the date of this report:
Options
Expiry Date
Exercise Price
Number
Employee and Directors options
05 October 2023
$0.55
4,800,000
2021
$’000
63,141,445
-
63,141,445
63,141,445
BlackWall Limited June 2021 Notes to the Financial Statements
1. Segment Information
The segment information for the Group is as follows. For information on segment reporting, refer to the Statement of Significant Accounting Policies for more details.
Profit or Loss 2021
BlackWall
Investments
Corporate
Continuing Operations
WOTSO Franchise
TOTAL Operations
Profit or Loss 2020
BlackWall
Investments
Corporate
Continuing Operations
WOTSO Limited
WOTSO Franchise
Kirela
TOTAL Operations
Balance Sheet
BlackWall
Investments
Corporate
WOTSO Franchise
Consolidated
Income
$’000
Gains / (Losses)
$’000
Total
Revenue
$’000
Expenses
$’000
EBITDA
$’000
Interest
and Depn
$’000
Pre-tax
$’000
6,234
5
-
6,239
432
6,671
6,285
87
-
6,372
4,070
1,434
1,973
13,849
-
1,553
-
1,553
-
1,553
-
4,308
-
4,308
-
-
1,065
5,373
Assets
$’000
4,181
22,664
-
26,845
-
26,845
6,234
1,558
-
7,792
432
8,224
6,285
4,395
-
10,680
4,070
1,434
3,038
19,222
(2,610)
(578)
(511)
(3,699)
(122)
(3,821)
(3,143)
(527)
(924)
(4,594)
(2,626)
(626)
(2,170)
(10,016)
2021
Liabilities
$’000
(1,473)
(2,979)
(396)
(4,848)
-
(4,848)
Net Assets
$’000
2,708
19,685
(396)
21,997
-
21,997
3,624
980
(511)
4,093
310
4,403
3,142
3,868
(924)
6,086
1,444
808
868
9,206
Assets
$’000
1,140
23,487
354
24,981
2,554
27,535
(190)
(4)
-
(194)
(312)
(506)
(196)
(8)
-
(204)
(5,157)
(938)
(1,451)
(7,750)
3,434
976
(511)
3,899
(2)
3,897
2,946
3,860
(924)
5,882
(3,713)
(130)
(583)
1,456
2020
Liabilities
$’000
(814)
(2,958)
-
(3,772)
(1,954)
(5,726)
Net Assets
$’000
326
20,529
354
21,209
600
21,809
9
BlackWall Limited June 2021 2. COVID Impact
4. Net Unrealised Gains on Investments
Property management fees are charged by BWF on a percentage of gross property income. In the current
financial year WOTSO Property has continued to provide rent relief to tenants in the form of rent waivers and
deferrals as required by the mandatory code of conduct between landlords and tenants, and this has resulted
in a reduction of property management fee income.
Unrealised gain - WOTSO Property
Unrealised gain - BWR
Unrealised gain - WOTSO Limited
BWF qualified for the government’s JobKeeper program until the program ceased at the end of March 2021.
Total
The government stimulus revenue received for the current financial year was $504,000 (2020: $225,000).
For additional information refer to Note 8 - Investments.
3. Revenue
Revenue is earned through management, performance and transaction fees from real estate investment
structures.
5. Operating Expenses
Revenue from Contracts with Customers
Fund management fees
Property management fees
Project management fees
Leasing fees
Expense recovery and other fees
Management Fees Total
Performance fee - Penrith (details below)
Transaction fee - Asset acquisitions (Newcastle and Brookvale)
Transaction fee - Capital raising
Performance and Transaction Fees Total
Staff Payroll Recovery
Total Revenue from Contracts with Customers
Timing of revenue recognition:
- recognition over time
- recognition at a point in time
Other
Government stimulus
Total BlackWall Revenue
2021
$’000
3,176
633
287
505
506
5,107
-
189
150
339
284
5,730
5,391
339
5,730
504
6,234
2020
$’000
BWF employee and consultant expenses
BWF operating expense
BWF Expenses
6. Income Tax Expense
Current tax
Deferred tax
Total
Prima facie tax payable on profit from ordinary activities before
income tax at 26.0% (2020: 27.5%)
Add / (less) tax effect of:
Non-deductible items
Deductible items
Change in tax rate - restatement of deferred tax balances
Under / (over) provision in prior years
Total
3,096
747
226
310
346
4,725
598
-
-
598
737
6,060
5,462
598
6,060
225
6,285
BWF (as manager of BlackWall Penrith Fund No.3) was entitled to a fee equating to 30% of the property value
in excess of $16.5 million (the property value when the fund was established) plus any capex expenditure. The
performance fee of $598,000 was taken up in full in the June 2020 financial year, and the 7 year fund came to
an end in December 2020 with all fees paid out at that date.
2021
$’000
1,567
-
-
1,567
2021
$’000
2,806
893
3,699
2021
$’000
348
497
845
1,014
5
(10)
(115)
(49)
845
2020
$’000
-
1,608
2,700
4,308
2020
$’000
3,369
1,225
4,594
2020
$’000
568
1,022
1,590
1,618
14
(17)
(137)
112
1,590
10
BlackWall Limited June 2021 7. Current Assets – Trade and Other Receivables
9. Non-current Assets – Property, Plant and Equipment
Trade receivables:
Related parties
Other parties
Total Trade Receivables
Other receivables
Total
2021
$’000
2020
$’000
237
82
319
13
332
447
91
538
10
548
Further information relating to trade and other receivables to related parties is set out in Note 24 - Related Party
Transactions. None of the receivables were impaired as at 30 June 2021 (2020: $nil).
8. Investments
The two separate investments in BWR and WOTSO Limited previously held by BlackWall have been replaced
by a single holding in a new stapled entity called “WOTSO Property”. The new stapled security was listed
on the ASX under the code “WOT” and began trading on 18 February 2021. A reconciliation of investments
is set out below:
WOT
Securities
WOT
$’000
BWR
Units
BWR
$’000
WOTSO
Limited
Shares
WOTSO
Limited
$’000
June 2021
Balance at the beginning of the year
Return of capital
Conversion to stapled securities
Purchases
Mark to market valuation
-
-
14,172,027
1,203,174
-
-
-
11,487,838
-
19,402 (11,487,838)
-
-
1,633
1,567
16,313
(804)
(15,509)
-
-
10,519,241
-
(10,519,241)
-
-
3,893
-
(3,893)
-
-
Balance at the End of the Year
15,375,201
22,602
-
-
-
-
June 2020
Balance at the beginning of the year
Return of capital
Demerger of WOTSO Limited
Mark to market valuation
Balance at the End of the Year
-
-
-
-
-
-
-
-
-
-
11,487,838
-
-
-
15,509
(804)
-
1,608
-
-
10,519,241
-
11,487,838
16,313
10,519,241
-
-
1,193
2,700
3,893
Continuing Operations:
At cost
Less accumulated depreciation
Written Down Value
Discontinued Operations:
At cost
Less accumulated depreciation
Written Down Value
Total
2021
$’000
899
(758)
141
-
-
-
141
2021
Carrying amount at the beginning of year
Additions
Depreciation expense
Disposal due to sale of subsidiary
Carrying Amount at the End of Year
2020
Carrying amount at the beginning of year
Additions
Depreciation expense
Disposal due to demerger and sale of subsidiary
Carrying Amount at the End of Year
Continuing
Operations
$’000
Discontinued
Operations
$’000
164
28
(51)
-
141
246
25
(107)
-
164
561
52
(38)
(575)
-
5,232
703
(142)
(5,232)
561
10. Non-current Assets – Right of Use Lease Asset
Right of use lease asset
Less: Accumulated depreciation
Written down value of Right of Use Lease Assets
2021
$’000
770
(191)
579
2020
$’000
871
(707)
164
1,267
(706)
561
725
Total
$’000
725
80
(89)
(575)
141
5,478
728
(249)
(5,232)
725
2020
$’000
3,090
(782)
2,308
BWF leases its head office located in Neutral Bay NSW. The term of the lease is five years with the option to
extend, and contains a market related escalation clause. On renewal, the terms of the lease are renegotiated.
The reduction in the balance is due to the WOTSO Franchise subsidiary leaving the group - refer to the Disposal
of Subsidiary Note 16 for further details.
11
BlackWall Limited June 2021 11. Current Liabilities – Trade and Other Payables
14. Lease Liabilities
Trade payables:
Related parties
Other parties
Total Trade Payables
Sundry payables and accrued expenses
Total
2021
$’000
2020
$’000
-
403
403
79
482
Opening balance
Interest charged
Repayments
Additions
Disposals
Modifications
1
439
440
77
517
Further information relating to trade payables from related parties is set out in Note 24 - Related Party
Transactions.
Total Lease Liabilities
Current
Non-current
Total
2021
$’000
2,323
45
(393)
301
(1,808)
128
596
132
464
596
2020
$’000
-
103
(870)
3,090
-
-
2,323
624
1,699
2,323
12. Current and Non-current Liabilities – Provisions
The reduction in the balance is due to the WOTSO Franchise subsidiary leaving the group - refer to the Disposal
of Subsidiary Note 16 for further details.
15. Provision for Tax Payable
(Refund) / payable at the beginning of year
Current year tax liability
Refunds received / (Payments made)
Under / (over) provision in prior years
Payable / (Refund) at the End of Year
2021
$’000
(354)
396
347
7
396
2020
$’000
778
-
(1,235)
103
(354)
Current – employee benefits
Non-current – employee benefits
Total Provisions
Balance at the beginning of year
Net additional provision increase / (decrease)
Balance at the End of Year
2021
$’000
390
114
504
431
73
504
The number of BWF employees as at 30 June 2021 was 20 (2020: 23).
13. Non-current Liabilities – Deferred Tax Liabilities
Deferred Tax Liabilities / (Assets) Balance Comprises:
Financial assets
Provision for employee benefits
Accrued expenses
Total
Movements:
Balance at the beginning of year
Charged to the profit and loss
Balance at the End of Year
2021
$’000
3,003
(126)
(7)
2,870
2,373
497
2,870
2020
$’000
335
96
431
553
(122)
431
2020
$’000
2,537
(112)
(52)
2,373
1,351
1,022
2,373
12
BlackWall Limited June 2021 16. Disposal of Subsidiary
WOTSO Franchise
On 31 October 2020 the Group disposed of its entire holding in BWF Franchise Pty Ltd to WOTSO Limited for
In addition, the Board has declared a final fully franked dividend of 2.6 cents per share to be paid on
cash proceeds of $500,000. The operations to date of disposal in the current year are shown as discontinued,
15 September 2021.
and the prior year comparative information has also been restated where relevant to show that information as
discontinued. BWF Franchise Pty Ltd was the Franchisee for the WOTSO site at Neutral Bay.
Assets and liabilities sold were as follows:
Franking credits available for the subsequent periods based on a tax
rate of 25.0% (2020: 26.0%)
2021
$’000
2,026
2020
$’000
3,032
Cash and cash equivalents
Receivables and other assets
Lease right of use asset
Property, plant and equipment
Deferred tax asset
Payables and other liabilities
Lease right of use liability
Net Identifiable Assets Sold
Add: profit on disposal
Net Cash Proceeds Received
31 Oct 2020
$’000
72
7
1,791
575
32
(173)
(1,808)
496
4
500
The above amounts represent the balance of the franking account as at the end of the reporting period,
adjusted for:
(a) franking credits that will arise from the payment of the amount of the provision for income tax;
(b) franking debits that will arise from the payment of dividends recognised as a liability at the reporting
date; and
(c) franking credits that will arise from the receipt of dividends recognised as receivables at the reporting
date.
18. Earnings Per Share
The following were the results of BWF Franchise operations to the date of disposal:
To 31 Oct 2020
$’000
Basic and diluted earnings per share
Basic and diluted earnings per share (continuing)
Revenue
Operating expenses
(Loss) Before Tax
Taxation
Loss After Tax
17. Dividends
Fully franked dividends paid to shareholders during the financial year were as follows:
2020 final dividend of 2.1 cents paid on 25 September 2020
(2019 final: 2.1 cents)
2021 interim dividend of 2.4 cents paid on 16 March 2021
(2020 interim: 2.0 cents)
Total
2021
$’000
1,325
1,516
2,841
432
(434)
(2)
(23)
(25)
2020
$’000
1,325
1,263
2,588
Calculated as follows:
Profit attributable to the owners of the Group
Profit attributable to the owners of the Group (continuing)
Weighted average number of shares for basic EPS
Weighted average number of shares for diluted EPS
19. Auditor’s Remuneration
Remuneration of ESV for:
Audit and assurance services
Taxation services
Other services
Total
20. Contingencies
2021
4.8 cents
4.8 cents
$3,029,000
$3,054,000
63,141,445
63,141,445
2020
7.2 cents
6.8 cents
$4,536,000
$4,292,000
63,129,692
63,129,692
2021
2020
51,000
11,000
23,000
85,000
67,000
44,000
26,000
137,000
The Group had no contingent assets or liabilities at 30 June 2021 (2020: $nil).
13
BlackWall Limited June 2021 21. Subsequent Events
The impact of the COVID pandemic is ongoing. It is not practical to estimate the potential impact, positive
or negative, after the reporting date on the various revenue streams and the performance of the Group. The
situation is dependent on measures imposed by the federal and state governments, and other countries, such
as maintaining social distancing requirements, quarantine, travel restrictions and any economic stimulus that
may be provided.
The Board has declared a final fully franked dividend of 2.6 cents per share to be paid on 15 September 2021.
To the best of the Directors’ knowledge, since the end of the financial year there have been no other matters or
circumstances that have materially affected the Group’s operations or may materially affect its operations, state
Managed Funds
The Group holds investments in a number of property funds for which it acts as either manager or responsible
entity.
Fees and Transactions
Management fees are charged to these entities predominantly for property and fund management services.
The management fees are paid under a management agreement and the fees charged are determined with
reference to arm’s length commercial rates.
These services principally relate to:
of affairs or the results of operations in future financial years.
• funds management: provision of strategic investment advice, asset management and investment
portfolio services; and
22. Equity Accounted Investments
IndigoBlack Constructions Pty Ltd is a start up construction company in which BWF owns a 25% stake. The
investment has resulted in a $14,000 share of associates loss being taken up in the current year.
• property management: property portfolio advisory services, maintenance and insurances, strategic
advice and management supervision services, administration, leasing, project management,
marketing and risk management services.
23. Controlled Entities
Parent entity:
BlackWall Limited
Subsidiaries of parent entity:
BlackWall Management Services Pty Ltd
BlackWall Fund Services Limited
APG Asset Management Pty Ltd
BlackWall Management (NZ) Ltd
Bakehouse Management Pty Ltd
BWF Franchise Pty Ltd
Country of
Incorporation
Percentage Owned
2021
(%)
2020
(%)
Australia
n/a
n/a
Australia
Australia
Australia
New Zealand
Australia
Australia
100
100
100
100
99.99
-
100
100
100
100
99.99
100
The Group recharges its related parties, associates and managed funds, for administration services which
include accounting and bookkeeping fees, corporate secretarial services and those expenses that are incurred
by members of the Group on behalf of the related parties, associates and managed funds. In addition, the
Group pays the following fees to related entities:
• rent for BWF head office. The rent paid is determined with reference to arm’s length commercial
rates; and
• director fees.
Other transactions and outstanding balances with related parties, associates and managed funds relate to
loans payable and receivable and distributions from managed funds. All transactions with related parties were
made on arm’s length commercial terms and conditions and at market rates, and were approved by the Board
where applicable.
The following table discloses the revenue and expenses between related parties as well as the balances
outstanding at year end between BWF and its related parties.
24. Related Party Transactions
(a) Related Parties, Associates, Managed Funds
In these financial statements, related parties are parties as defined by AASB 124 Related Party Disclosures
rather than the definition of related parties under the Corporations Act 2001 and ASX Listing Rules.
Associates
Interests held in associates by the Group are set out in Note 22 - Equity Accounted Investments.
Revenue:
Management fees
Transaction and performance fees
Distribution / returns of capital from funds
Expenses:
Rent and outgoings paid
Outstanding Balances:
Trade and other receivables – current
Trade and other payables - current
2021
2020
4,404,085
990,488
804,149
4,102,019
457,857
804,149
397,392
457,854
236,981
-
447,038
1,329
14
BlackWall Limited June 2021 (b) Interests in Related Parties
As at year end the Group owned units in the following related entities:
26. Financial Risk Management
Entity
WOTSO Property
BWR
WOTSO Limited
Holdings
2021
No.
2020
No.
15,375,201
-
-
-
11,487,838
10,519,241
Distribution/Returns
of Capital/Interest
2021
$
-
804,149
-
804,149
2020
$
-
804,149
-
804,149
(a) Financial Risk Management
The main risks the Group is exposed to through its financial instruments are market risk (including foreign
exchange risk, interest rate risk and price risk), credit risk and liquidity risk. The Group’s principal financial
instruments are cash, financial assets and borrowings. Additionally, the Group has various other financial
instruments such as trade debtors and trade creditors, which arise directly from its operations.
This note presents information about the Group’s exposure to each of the above risks, their objectives, policies
and processes for measuring and managing risk, and the management of capital. The Board has overall
responsibility for the establishment and overseeing of the risk management framework. It monitors the Group’s
risk exposure by regularly reviewing finance and property markets. The Group holds the following major financial
(c) Key Management Personnel Compensation
instruments:
Total remuneration paid
2021
820,000
2020
1,111,261
Detailed remuneration disclosures and relevant interests are provided in the Directors’ Report.
25. Parent Entity Information
Results:
(Loss) / Profit after tax
Total Comprehensive Income After Tax
Financial Position:
Current assets
Non-current assets
Total Assets
Current liabilities
Non-current liabilities
Total Liabilities
Net Assets
Share capital
Accumulated losses
Reserves
Total Equity
Cash and cash equivalents
Investment in WOTSO Property
Investment in BWR
Investment in WOTSO Limited
2021
$’000
3,133
22,602
-
-
2020
$’000
2,724
-
16,313
3,893
2021
$’000
(2,217)
(2,217)
3
714
717
(495)
(2,165)
(2,660)
(1,943)
14,080
(16,082)
59
(1,943)
2020
$’000
6,328
6,328
603
2,737
3,340
(225)
-
(225)
3,115
14,080
(11,024)
59
3,115
(b) Sensitivity Analysis
The Group is not exposed to any material credit, interest or liquidity risks. There are no subsidiaries in the group
subject to material foreign exchange risk.
Investment in WOT securities are subject to price risk, a 10% decrease in the ASX trading price (from the price
at 30 June 2021, i.e. $1.47 per security) would result in an unrealised loss after tax of $1,639,000.
(c) Capital Management
The Group’s objectives when managing capital are to:
• safeguard their ability to continue as a going concern, so that they can continue to provide returns for
shareholders and benefits for other stakeholders; and
• maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to
shareholders, issue new shares, buy-back shares, purchase or sell assets.
The parent entity had no contingencies or capital commitments at 30 June 2021 (2020: Nil). The accounting
policies of the parent entity are consistent with those of the consolidated entity, as disclosed in Note 29.
15
BlackWall Limited June 2021 (d) Liquidity Risk
At 30 June 2021
Financial Liabilities
Trade and other payables
Lease liabilities
At 30 June 2020
Financial Liabilities
Trade and other payables
Lease liabilities
Maturing
Within 1 Year
$’000
Maturing
2-5 Years
$’000
Maturing
over 5 Years
$’000
482
132
614
517
624
1,141
-
464
464
-
1,699
1,699
-
-
-
-
-
-
Total
$’000
482
596
1,078
517
2,323
2,840
(e) Fair Value Measurements
(i) Fair Value Hierarchy
The Group classifies fair value measurements using a fair value hierarchy that reflects the subjectivity of the
inputs used in making measurements. The fair value hierarchy has the following levels:
(ii) Valuation Techniques Used To Derive Level 3 Fair Values
The fair value of the unlisted securities is determined using a discounted cash flow model.
(iii) Fair Value Measurements Using Significant Observable Inputs (Level 3)
The following table is a reconciliation of the movements in financial assets classified as Level 3 for the year
ended 30 June:
At 30 June 2021
Balance at the beginning of the year
Reduction due to WOTSO Limited forming part of the WOTSO Property stapled security
Balance at the End of the Year
At 30 June 2020
Balance at the beginning of the year
Repayment of loans due to demerger of WOTSO Limited
Initial investment in WOTSO Limited
Fair value movement of investment in WOTSO Limited
Balance at the End of the Year
$’000
3,893
(3,893)
-
802
(802)
1,193
2,700
3,893
There were no transfers between Level 1, 2 and 3 in the prior year. In the current year the investment in WOTSO
Limited (Level 3) was converted into Level 1 as a result of forming part of the listed stapled security WOTSO
• Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities;
Property.
• Level 2 – Inputs other than quoted prices included within Level 1 that are observable for the asset or
liability, either directly (as prices) or indirectly (derived from prices); and
27. Reclassification of Cash Flow Comparatives
• Level 3 – Inputs for the asset or liability that are not based on observable market data (unobservable
The 2020 comparative numbers in the Statement of Cash Flows have been reclassified to report the cash flows
inputs).
from each entity that was discontinued. A reconciliation is provided below:
The fair value of financial assets traded in active markets is subsequently based on their quoted market prices
at the end of the reporting period without any deduction for estimated future selling costs. The quoted market
price used for financial assets held by the Group is the current bid price.
The following table presents the Group’s financial assets measured at fair value as at 30 June. Refer to the
Critical Accounting Estimates and Judgment note for further details of assumptions used and how fair values
are measured.
At 30 June 2021
Financial assets
At 30 June 2020
Financial assets
16
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
$’000
22,602
16,313
-
-
-
22,602
3,893
20,206
Original
classification
$’000
Updated
Kirela
$’000
Updated
WOTSO
Franchise
$’000
Updated
classification
$’000
June 2020
Net cash flows from operating activities (continuing)
Net cash flows from investing activities (continuing)
Net cash flows from financing activities (continuing)
Net Increase in Cash Held (continuing)
Reconciliation of Cash Balances:
Cash and cash equivalents at the beginning of the year
Less WOTSO Limited cash balance reclassified as held
for sale
Net increase / (decrease) in cash held - continuing
Net increase / (decrease) in cash held - WOTSO Franchise
Net increase / (decrease) in cash held - Kirela
Cash at End of the Year
1,668
(6,991)
(3,396)
(8,719)
11,493
(50)
(8,719)
-
-
2,724
1,816
-
-
1,816
-
-
1,816
-
(1,816)
-
(824)
47
727
(50)
-
-
(50)
50
-
-
2,660
(6,944)
(2,669)
(6,953)
11,493
(50)
(6,953)
50
(1,816)
2,724
BlackWall Limited June 2021 28. Critical Accounting Estimates and Judgments
The Directors evaluate estimates and judgments incorporated into the financial statements based on historical
BWF is a group of the kind referred to in ASIC Instrument 2016/191 and, in accordance with that Instrument,
knowledge and best available current information. Estimates assume a reasonable expectation of future events
and are based on current trends in economic data, obtained both externally and within the Group.
amounts in the Directors’ Report and the financial statements are rounded off to the nearest thousand dollars,
unless otherwise indicated.
Key Estimates - Impairment
The Group assesses impairment at each reporting date by evaluating conditions specific to the Group that may
lead to impairment of assets.
Key Estimates - Financial Assets
All financial assets at Fair Value Through the Profit or Loss (FVTPL) have been classified as financial assets, with
gains and losses recognised as profit or loss.
The fair value of the listed securities is based on the closing price from the Australian Securities Exchange as
at the reporting date.
The fair value of financial instruments not traded in an active market is determined using valuation techniques
including a discounted cash flow model. The main inputs used include:
The following is a summary of the material accounting policies adopted by the Group in the preparation of the
financial statements. The accounting policies have been consistently applied, unless otherwise stated.
Going Concern
The financial statements have been prepared on a going concern basis, which contemplates continuity of
normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of
business.
Segment Reporting
AASB 8 Operating Segments requires operating segments to be identified on the basis of internal reports about
components of the Group that are regularly reviewed by the chief operating decision maker in order to allocate
resources to the segment and to assess its performance. The Group’s primary format for segment reporting
is based on business segments. The business segments are determined based on the Group management
• discount rates for financial assets and financial liabilities are determined using a capital asset pricing
and internal reporting structure. Segment results, assets and liabilities include items directly attributable to a
model to calculate a rate that reflects the risk specific to the asset;
segment as well as those that can be allocated on a reasonable basis. The operating businesses are organised
• revenue growth rates for locations currently below capacity is based on growth rates achieved in the
past or at similar locations where there is no past evidence;
• sales prices for products are related to the product being offered and are adapted for each location
and managed separately according to the nature of the products and services provided, with each segment
representing a strategic business unit that offers different products and serves different markets
The Group has adopted three reporting segments: BlackWall, Investments, and Corporate.
with consideration given to economic factors prevailing at the location and competitor prices; and
The BlackWall segment engages in funds and asset management as well as property services that include
• current economic environment operates within a range similar to the past. The impact of COVID or
similar economic event is not possible to quantify reliably.
29. Statement of Significant Accounting Policies
property management, leasing and general property consultancy. Income earned by the segment includes
recurring income from fund and asset management mandates and transaction-based income typically related
to those mandates. Management treats these operations as one fee earning operating segment. The assets
assigned to the segment are those it is required to hold to comply with its AFSL capital adequacy requirements.
The Investments segment includes interests in property related investments such as units in related party listed
BlackWall Limited (“BWF”) is a publicly listed company, incorporated and domiciled in Australia. The financial
and unlisted unit trusts, loans and cash. It generates income from dividends, distributions and interest.
statements for the Group were authorised for issue in accordance with a resolution of the Directors on the date
they were issued.
These financial statements are general purpose financial statements that have been prepared in accordance with
Presentation of Financial Statements
Both the functional and presentation currency of BWF and its Australian subsidiaries is Australian dollars.
Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards
Various functional currencies including New Zealand Dollar results are translated to presentation currency.
Board and the Corporations Act 2001. The financial statements of the Company also comply with IFRS as issued
by the International Accounting Standards Board.
The financial statements have been prepared on an accruals basis and are based on historical costs modified by
Principles of Consolidation
The consolidated financial statements comprise the financial statements of BWF and its subsidiaries. A list of
the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis
controlled entities is contained in Note 23 - Controlled Entities. All controlled entities have a June financial year
of accounting has been applied.
end and use consistent accounting policies. Investments in subsidiaries held by the Group are accounted for at
cost, less any impairment charges (refer to Note 25 - Parent Entity Information).
17
BlackWall Limited June 2021 Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls
The estimated useful lives used for each class of depreciable assets are:
an entity when the consolidated entity is exposed to, or has rights to, variable returns from its involvement
with the entity and has the ability to affect those returns through its power to direct the activities of the entity.
Subsidiaries are fully consolidated from the date on which control is transferred to the consolidated entity. They
are de-consolidated from the date that control ceases.
Intercompany Balances
All intercompany balances and transactions between entities in the Group, including any unrealised profits or
losses, have been eliminated on consolidation. Accounting policies of subsidiaries have been changed where
necessary to ensure consistencies with those policies applied by the parent entity.
Associates
Interests in associates are accounted for using the equity method. Under the equity method of accounting, the
Furniture, fixtures and fittings
Office equipment
over 2 to 10 years
over 4 to 10 years
Right of use assets are depreciated on a straight-line basis, with reference to the remaining lease term, including
options to extend if reasonably certain to extend the lease term.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
Disposal
An item of property, plant and equipment is derecognised upon disposal or when no further economic benefits
are expected from its use or disposal.
Any gain or loss arising on de-recognition of the asset (calculated as the difference between the net disposal
investments are initially recognised at cost and adjusted thereafter to recognise the group’s share of the post
proceeds and the carrying amount of the asset) is included in the profit or loss in the year the asset is
acquisition profits or losses of the investee in profit or loss. Dividends received or receivable from associates are
derecognised.
recognised as a reduction in the carrying amount of the investment.
When the group’s share of losses in an equity accounted investment equals or exceeds its interest in the entity,
including any other unsecured long-term receivables, the group does not recognise further losses, unless it has
Impairment of Assets
At each reporting date, the Group reviews the carrying values of its tangible and intangible assets to determine
incurred obligations or made payments on behalf of the other entity. The carrying amount of equity accounted
whether there is any indication that those assets have been impaired.
investments is tested for impairment in accordance with these policies.
Non-Controlling Interests
Non-controlling interests (not held by the Group) are allocated their share of net profit and comprehensive
If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less
costs to sell and value in use, is compared to the asset’s carrying value. In assessing value in use, either the
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
current market assessments of the time value of money and the risks specific to the asset, or the income of the
income after tax in the statement of profit or loss and other comprehensive income and are presented within
asset is capitalised at its relevant capitalisation rate.
equity in the consolidated balance sheet, separately from parent shareholders’ equity. Comprehensive income
after tax in the statement of profit or loss and other comprehensive income are presented within equity in the
consolidated balance sheet, separately from parent shareholders’ equity.
Property, Plant and Equipment
Each class of property, plant and equipment is carried at cost or fair value less, where applicable, any
accumulated depreciation and impairment losses.
Plant and equipment are measured on the cost basis less accumulated depreciation and impairment losses.
The cost of replacing part of an item of property, plant and equipment is recognised in the carrying amount of
an item if it is probable that the future economic benefits embodied within the part will flow to the Group and
its cost can be measured reliably. The carrying amount of the replaced part is derecognised. The costs of the
day-to-day servicing of property, plant and equipment are recognised in profit and loss as incurred.
Depreciation
The depreciable amount of all fixed assets is depreciated on a diminishing value basis over their useful lives to
the Group commencing from the time the asset is held ready for use.
An impairment loss is recognised if the carrying value of an asset exceeds its recoverable amount. Impairment
losses are expensed to the profit and loss.
Impairment losses recognised in prior periods are assessed at each reporting date for any indication that
the loss has decreased or no longer exists. An impairment loss is reversed if there has been a change in the
estimates used to determine the recoverable amount. An impairment loss is reversed only to the extent that
the asset’s carrying amount does not exceed the carrying amount that would have been determined, net of
depreciation or amortisation, if no impairment loss has been recognised.
Financial Instruments
Non-derivative Financial Instruments
Non-derivative financial instruments comprise investments in equity and debt securities, trade and other
receivables, cash and cash equivalents, loans and borrowings, and trade and other payables.
Non-derivative financial instruments are recognised at fair value plus, for instruments not at fair value through
profit or loss, any directly attributable transaction costs. Subsequent to initial recognition non- derivative financial
instruments are measured as described below.
18
BlackWall Limited June 2021 Recognition
A financial instrument is recognised if the Group becomes a party to the contractual provisions of the instrument.
Individually significant financial instruments are tested for impairment on an individual basis. The remaining
Financial assets are derecognised if the Group’s contractual rights to the cash flow from the financial assets
financial assets are assessed collectively in groups that share similar credit risk characteristics.
expire or if the Group transfers the financial assets to another party without retaining control or substantially
all risks and rewards of the asset. Purchases and sales of financial assets are accounted for at trade date, i.e.
the date that the Group commits itself to purchase or sell the asset. Financial liabilities are derecognised if the
Group’s obligations specified in the contract expire or are discharged or cancelled.
Financial Assets
All financial assets at FVTPL have been classified as financial assets, with gains and losses recognised in profit
or loss. The Group classifies its financial assets in the following measurement categories: those to be measured
subsequently at fair value and those to be measured at amortised cost. The classification depends on the
Group’s business model for managing the financial assets and the contractual terms of the cash flows.
(i) Equity Investments
All equity investments are measured at fair value. Equity investments that are held for trading are measured at
fair value through profit or loss.
(ii) Loans and Receivables
Loans and receivables including loans to related parties are non-derivative financial assets with fixed or
determinable payments that are not quoted in an active market and are stated at amortised cost using the
effective interest rate method. Gains and losses are recognised in profit and loss when the loans and receivables
are derecognised or impaired, as well as through the amortisation process.
Fair Value
The fair values of investments that are actively traded in organised financial markets are determined by reference
to quoted market bid prices at the close of business on the balance date. For investments in related party
unlisted unit trusts, fair values are determined by reference to published unit prices of these investments which
are based on the net tangible assets of each of the investments.
Impairment
At each reporting date, the Group assesses whether there is objective evidence that a financial instrument has
been impaired. A financial instrument is considered to be impaired if objective evidence indicates that one or
more events have had a negative effect on the estimated future cash flows of that asset. In the case of available-
for-sale financial instruments, a prolonged decline in the value of the instrument is considered to determine
whether an impairment has arisen.
Impairment losses are recognised in the profit or loss. An impairment loss is reversed if the reversal can be
related objectively to an event occurring after the impairment loss was recognised. For financial instruments
measured at amortised cost, the reversal is recognised in profit and loss.
Financial Liabilities
Non-derivative financial liabilities are recognised at amortised cost, comprising original debt less principal
payments and amortisation.
Investments in Associates
Investments in associate companies are recognised in the financial statements by applying the equity method
of accounting where significant influence is exercised over an investee. Significant influence exists where the
investor has the power to participate in the financial and operating policy decisions of the investee but does not
have control or joint control over those policies.
Under the equity method of accounting, investments in the associates are carried in the consolidated balance
sheet at cost plus post-acquisition changes in the Group’s share of net assets of the associates. The Group’s
share of its associates’ post-acquisition profits or losses is recognised in the income statement, and its share of
post-acquisition movements in reserves is recognised in reserves. The cumulative post acquisition movements
are adjusted against the carrying amount of the investment. When the Group’s share of losses exceeds its
interest in an equity accounted investee, the carrying amount of the interest is reduced to nil and the recognition
of further losses is discontinued except to the extent that the Group has an obligation or has made payments
on behalf of the investee.
Cash and Cash Equivalents
Cash and cash equivalents include cash on hand, deposits held at call with banks, other short-term highly liquid
investments with original maturities of three months or less, and bank overdrafts.
Trade and Other Receivables
Trade receivables are recognised and carried at original invoice amount less a provision for any uncollectable
debts. An estimate for credit loss impairment is made when there is objective evidence that the Group will not be
able to collect the receivable. Financial difficulties of the debtor and default payments are considered objective
evidence of impairment. Bad debts are written off when identified as uncollectable.
An impairment loss in respect of a financial instrument measured at amortised cost is calculated as the difference
between its carrying amount, and the present value of the estimated future cash flows discounted at the original
Trade and Other Payables
Liabilities for trade creditors are carried at cost which is the fair value of the consideration to be paid in the future
effective interest rate. An impairment loss in respect of an available-for-sale financial asset is calculated by
for goods or services received, whether or not billed to the Group at balance date. The amounts are unsecured
reference to its fair value.
and are usually paid within 30 days of recognition.
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BlackWall Limited June 2021 Employee Benefits
Other Long Term Employee Benefits
The Group’s net obligation in respect of long term employee benefits is the amount of future benefit that
employees have earned in return for their service in the current and prior periods plus related on-costs. These
employee benefits have not been discounted to the present value of the estimated future cash outflows to be
made for those benefits.
Short Term Benefits
Liabilities for employee benefits for wages, salaries and annual leave represent present obligations resulting
from employees’ services provided to the reporting date and are calculated at undiscounted amounts based
on remuneration wage and salary rates that the Group expects to pay as at reporting date including related
on-costs.
Revenue
BWF Property Fees include management fees and transaction fees. They are recognised when it becomes
legally due and payable to the Group.
Investment Income
Finance income comprises interest on funds invested and gains on the disposal of financial assets. Interest
income is recognised as interest accrues using the effective interest method. Dividend and distribution revenue
is recognised when the right to receive income has been established.
In-specie distributions and returns of capital are brought on to the balance sheet by an adjustment in the
carrying value of the relevant investment and then reflected in the profit and loss as an unrealised gain.
Accounting for Deferred Tax
Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences
arising between the tax bases of assets and liabilities and their carrying amounts in the financial statements. No
deferred income tax will be recognised from the initial recognition of an asset or liability, excluding a business
combination, where there is no effect on accounting or taxable profit or loss.
Deferred Tax Calculation
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or
liability is settled. Deferred tax is credited in the income statement except where it relates to items that may be
credited directly to equity, in which case the deferred tax is adjusted directly against equity.
Deferred tax assets and liabilities are offset if there is a legally enforceable right to offset current tax liabilities
and assets, and they relate to income taxes levied by the same tax authority on the same taxable entity, or on
different tax entities, but they intend to settle current tax liabilities and assets on a net basis or their tax assets
and liabilities will be realised simultaneously.
Deferred Income Tax Assets
Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available
against which deductible temporary differences can be utilised. The carrying amount of deferred income tax
assets is reviewed at each balance sheet date and reduced to the extent that it is no longer probable that
sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.
Benefit Brought to Account
The amount of benefits brought to account or which may be realised in the future is based on the assumption
that no adverse change will occur in income taxation legislation and the anticipation that the economic entity will
derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions
All revenue is stated net of the amount of GST.
of deductibility imposed by the law.
Leases
AASB 16 was adopted by the Group on 1 July 2019, applying the modified retrospective approach. Right of
Tax Consolidation
BWF has elected to form a tax consolidated group with its wholly-owned entities for income tax purposes
use assets and liabilities are recognised for all leases with a lease term of more than 12 months; unless the
under the tax consolidation regime with effect from 1 January 2011. As a consequence, all members of the
underlying asset is of a low value. Initial recognition of both the right of use asset and corresponding lease
tax consolidated group are taxed as a single entity from that date. The head entity within the tax consolidated
liability is calculated using the present value of remaining lease payments; discounted using the rate implicit in
group is BWF.
the lease or, if not easily determinable, the lessee’s incremental borrowing rate. The right of use asset is adjusted
for any prepaid or accrued lease payments or onerous lease contracts.
Income Tax
Current Income Tax Expense
The charge for current income tax expense is based on the profit year adjusted for any non-assessable or
disallowed items. It is calculated using the tax rates that have been enacted or are substantially enacted by the
balance sheet date.
20
In addition to its own current and deferred tax amounts, BWF also recognises the current tax liabilities (or assets)
and the deferred tax assets arising from unused tax losses and unused tax credits assumed from controlled
entities in the tax consolidated group in conjunction with any tax funding arrangement amounts.
The Group recognises deferred tax assets arising from unused tax losses of the tax consolidated group to the
extent that it is probable that future taxable profits of the tax consolidated group will be available against which
the asset can be utilised.
Any subsequent period adjustments to deferred tax assets arising from unused tax losses as a result of revised
assessments of the probability of recoverability is recognised by the head entity only.
BlackWall Limited June 2021 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 Group.
GST
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST
incurred is not recoverable from the Australian Taxation Office. In these circumstances the GST is recognised
as part of the cost of acquisition of the asset or as part of an item of the expense. Receivables and payables in
the balance sheet are shown inclusive of GST.
Cash flows are presented in the cash flow statement on a gross basis, except for the GST component of
investing and financing activities, which are disclosed as operating cash flows.
Equity
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or
options are shown in equity as a deduction, net of tax, from the proceeds.
Dividends
The final dividend for June period is declared and authorised after the end of the reporting period, therefore
provision for dividend is not booked in the current year accounts.
EPS
The Group presents basic and diluted EPS data for its ordinary shares. Basic EPS is calculated by dividing the
profit or loss attributable to ordinary shareholders of the Company by the weighted average number of ordinary
shares outstanding during the year. Diluted EPS is determined by adjusting the profit or loss attributable to
ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all
dilutive potential ordinary shares.
Comparative Figures
When required by Accounting Standards, comparative figures have been adjusted to conform to changes in
presentation for the current financial year. Any change of presentation has been made in order to make the
financial statements more relevant and useful to the user.
New Accounting Standards and Interpretations
BWF has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian
Accounting Standards Board (AASB) that are mandatory for the current reporting period. The accounting policies
adopted in the preparation of the consolidated financial statements are consistent with those of the previous
financial year. Several amendments apply for the first time in the current year. However, they do not impact
the annual consolidated financial statements of the Group. Any new or amended Accounting Standards or
Interpretations that are not yet mandatory have not been early adopted. Based on our preliminary assessment,
we do not expect them to have a material impact on the Group.
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BlackWall Limited June 2021
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Directors’ Report
Continued
ASX Additional Information
Additional information required by the Australian Securities Exchange and not shown elsewhere in this report is
as follows. The shareholder information set out below was current as at 5 August 2021.
2. Distribution of Shareholders
The distribution of shareholders by size of holding was:
Category
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total Number of Shareholders
No. of Shareholders
255
453
213
253
58
1,232
1. Shareholders
The Group’s top 20 largest shareholdings were:
Investor
1 Vintage Capital Pty Limited
2 Seno Management Pty Ltd
3 Lymkeesh Pty Ltd
4 National Nominees Limited
5 Frogstorm Pty Ltd
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