More annual reports from BlackWall Property Trust:
2023 ReportPeers and competitors of BlackWall Property Trust:
DigitalBridge GroupA N N U A L R E P O R T 2 0 2 2
Manager of Australia’s First Listed Flexible Property Security
Who We Are
BlackWall is a fund manager with
investment,
capabilities across
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.
and Other Comprehensive Income
Contents
3 Directors’ Report
6 Statement of Profit or Loss
6 Balance Sheet
7 Statement of Cash Flows
8 Statement of Changes in Equity
9 Notes to the Financial Statements
21 Directors’ Report – Continued
24 Directors’ Declaration
25 Auditor’s Independence Declaration
and Audit Report
2
BlackWall Limited June 2022 Directors’ Report
BlackWall Limited (BlackWall, BWF or the Group) has seen revenue growth
of 11% in FY 22 and will pay a final dividend of 2.4 cps to bring the full
year dividend to 5.0 cps fully franked. This represents a current grossed
up dividend yield of 9.5%.*
BlackWall Limited generates annuity income from the real estate investment structures it manages, the largest
being WOTSO Property (ASX:WOT). Over the past year our assets under management have grown by 12% to
$500 million. We drive management fees off these assets which is then passed onto shareholders. We have
maintained our dividend for the full year of 5.0 cps (2021: 5.0 cps).
Review of Financial Performance
Management fee income
Transaction income
Total Revenue
Total operating expenses
Operating Profit
Government COVID assistance
Investment distributions received
Funds From Activities
Other statutory adjustments (incl. revaluations)
Profit Before Tax
2022
$’000
5,739
616
6,355
(4,435)
1,920
223
986
3,129
(1,273)
1,856
2021
$’000
5,396
325
5,721
(3,838)
1,883
504
804
3,191
708
3,899
1
2
3
Management fee income increased by 6% to $5.7 million.
This increase is driven predominately by WOT with valuation uplift of some of its properties and an increase in
its WOTSO flexspace turnover.
Operating profit increased to $1.9 million.
Despite operating profit being up, the statutory net profit before tax has decreased to $1.8 million. This was
largely driven by our investment in WOT with movement in its ASX share price to $1.39 from $1.47 in 2021.
This created a revaluation loss in FY 22. WOT’s market price is not something we can control and we are long
term holders of this investment so these movements (up or down) are not a focus for us.
Maintained Funds From Activities (FFA).
Despite the headwinds of COVID our FFA has been maintained at $3.1 million and we expect this to grow as
our assets and revenue under management grow. It is important to note that unlike many other REITs we do
not solely require assets to grow in value to get material uplifts in FFA, we have the additional fees charged on
the WOTSO revenue which has the capacity to grow.
BlackWall issued 4.3 million new shares in FY 22 under its employee option scheme, and a significant portion of
the funds raised were used to re-invest in WOTSO Property. WHY? We believe that the pricing conditions for WOT
presented a compelling and attractive purchase point with the share price trading well below Net Asset Value (NAV).
* On a share price of $0.70.
Key Numbers
$500 million
of assets under management
7 properties acquired
by WOT in last two years
5.0 cps
fully franked full year dividend
$6.4 million
total revenue
Up
11%
BlackWall Limited June 2022
3
Fund Highlights
4
WOTSO Property
Following on from the three properties acquired in the 2021 financial year, a further four properties were
purchased this year. Two adjoining properties were purchased in Cremorne NSW, WOT expanded into
Western Australia with a property in Mandurah, and finally WOT secured a property in Auckland, New
Zealand. Each property is earmarked to have a WOTSO and other service based uses. The third party
leased sites that WOTSO operates are also slated to increase with negotiations finalised for two new sites
in Sydney’s West. WOT has seen a number of strong revaluations throughout the property portfolio which
translate to increased management fees.
WOTSO’s annualised revenue now sits at $23.7 million meaning the second tranche of BWF’s management
fee is activated (5% per annum of all revenue above $20 million per annum). WOTSO has a clear strategy
to offer businesses a home close to where their people live and this has translated into strong demand for
WOTSO’s flexspace offering. The revenue growth trajectory is significant for both WOTSO itself, but also
BWF as the manager.
Net
Asset Value
8%
Wind up of Woods PIPES
The seven year term of the Woods PIPES Fund expired at the end of the 2022 financial year. We are
pleased to achieve a 45 cents per share PIPES bonus for the fund’s investors, which was on top of the
regular 8% per annum distributions, equating to a total internal rate of return (IRR) of 13% per annum.
IRR
13% p.a.
over 7 years
New Fund Launched
Pyrmont Bridge Road Mortgage Fund
We were excited to bring our first unlisted retail and wholesale fund offering since the launch of the Woods
PIPES Fund. The new Pyrmont Bridge Road Mortgage Fund was born out of the restructure of the
debt over the Pyrmont property and offers investors consistently strong distributions of 6% per annum,
combined with $68 million of capital buffer. The fund is open for new investment now and will be offered
on an ongoing basis meaning we can welcome new investors and introduce them to the Group over the
5 year term of the fund.
Fund size
$20 million
BlackWall Limited June 2022 BlackWall as a Corporate Citizen
We have continued our longstanding relationship with The Kid’s Cancer Project (TKCP) and this year our team
was excited to have raised over $60,000 and ranked first on the leader board for TKCP Better Challenge where
participants aim to run, walk or roll 90km over the month of September. Additionally, our very own Jess Glew
was appointed as a director of TKCP.
Our Vaccine for Caffeine program was a success as various parts of the country emerged from COVID
lockdowns late in 2021. The program encouraged WOTSO members to get on board with the national vaccine
rollout for a chance to win a share of $27,000 to be spent at local businesses. It was our way of supporting the
vaccine rollout and helping local businesses doing it tough.
We also formally launched our employee development program, the BlackWOT Academy. The team enjoyed the
first iteration of the program, which culminated in the three day BlackWOT personal development conference
held in Noosa, QLD.
The Year Ahead
As we gaze into our crystal ball for next year and beyond, we are conscious of the various economic factors at
play, such as rising inflation, the threat of a global downturn and the ongoing influence of COVID. However, we
believe, that with a clear and strategic outlook there will be a number of opportunities that we can embrace as
a Group. We can offer our existing and new investors even more choice via our listed and unlisted structures as
we continue to expand our reach as a proven and trusted manager.
Tim Brown and Jessie Glew
Joint Managing Directors
1
6
2
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BlackWall Limited June 2022
5
Financial Statements
Statement of Profit or Loss and Other Comprehensive
Income for the year ended 30 June 2022
Balance Sheet at 30 June 2022
Note
3
3
5
2
11
4
6
Management fees
Transaction income
Total Revenue
Operating expenses
Operating Profit
Government COVID stimulus
Depreciation - property, plant and equipment
Finance costs - interest expense
Revaluation (loss) / gain
Profit Before Income Tax From Continuing Operations
Income tax expense
Profit After Tax From Continuing Operations
Discontinued operation - WOTSO Franchise
Profit for the Year
Other comprehensive income
Total Comprehensive Income
Earnings Per Share
2022
$’000
5,739
616
6,355
(4,435)
1,920
223
(44)
(6)
(237)
1,856
(210)
1,646
-
1,646
-
1,646
2021
$’000
5,396
325
5,721
(3,838)
1,883
504
(51)
(4)
1,567
3,899
(845)
3,054
(25)
3,029
-
3,029
Profit Attributable to the Ordinary Equity Holders:
Basic earnings per share
Diluted earnings per share
19
19
2.5 cents
2.5 cents
4.8 cents
4.8 cents
Assets
Current Assets
Cash and cash equivalents
Trade and other receivables
Total Current Assets
Non-current Assets
Investments
Employee loans
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
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
2022
$’000
2021
$’000
7
8
10
9
12
11
13
16
14
17
15
16
14
1,166
1,293
2,459
23,412
1,056
40
444
122
25,074
27,533
916
137
701
273
2,027
2,592
329
25
2,946
4,973
3,133
332
3,465
22,602
-
58
579
141
23,380
26,845
482
132
493
396
1,503
2,870
464
11
3,345
4,848
22,560
21,997
16,447
73
6,040
22,560
$0.33
14,080
73
7,844
21,997
$0.35
6
BlackWall Limited June 2022 Reconciliation of Operating Cash Flows
Profit for the Year from Continuing Operations
Non-Cash Flows in Profit:
Unrealised loss / (gain)
Depreciation on right of use lease asset
Depreciation on property, plant and equipment
Interest expense on lease liability
Equity accounted (profit) / loss
Changes in Operating Assets and Liabilities:
(Increase) / decrease in trade and other receivables
(Decrease) / increase in deferred tax liabilities
Increase in trade and other payables
(Decrease) / increase in income taxes payable
Increase in provisions
2022
$’000
1,646
237
138
44
20
(253)
(961)
(278)
434
(123)
222
2021
$’000
3,054
(1,567)
118
51
21
14
807
465
-
750
73
Net Cash Flows from Operating Activities
1,126
3,786
Statement of Cash Flows
for the year ended 30 June 2022
Cash Flows From Operating Activities
Management fee receipts and recoveries
Government COVID stimulus
Payments to suppliers and employees
Income tax (paid) / refund
Net interest paid
Net Cash Flows From Operating Activities
Cash Flows From Investing Activities
Returns of capital from WOT / BWR investment
Proceeds on disposal of Gymea Bay investment
Dividend received from IndigoBlack investment
Investment in WOT
Payment for property, plant and equipment
Proceeds on disposal of WOTSO Franchise
(net of cash disposed)
Net Cash Flows Used In Investing Activities
Cash Flows Used In Financing Activities
Proceeds from issue of shares
Dividends paid to shareholders
Rental payments
Net Cash Flows Used In Financing Activities
Net (Decrease) / Increase in Cash Held
Reconciliation of Cash Balances:
Cash and cash equivalents at the beginning of the year
Net (decrease) / increase in cash held - continuing
Net increase in cash held - WOTSO Franchise
Cash and Cash Equivalents at End of the Year
All items inclusive of GST where applicable.
Note
2
8
9
9
11
18
2022
$’000
5,690
223
(4,172)
(611)
(4)
1,126
968
181
90
(2,015)
(25)
-
(801)
1,311
(3,450)
(153)
(2,292)
(1,967)
3,133
(1,967)
-
1,166
2021
$’000
7,045
504
(4,133)
370
-
3,786
804
-
-
(1,633)
(28)
428
(429)
-
(2,841)
(129)
(2,970)
387
2,724
387
22
3,133
7
BlackWall Limited June 2022 Statement of Changes in Equity for the year ended 30 June 2022
No. of Shares on Issue
Issued Capital
$’000
Retained Earnings
$’000
Reserves
$’000
Balance at 1 July 2021
Profit for the year
Other comprehensive income
Total Comprehensive Income for the Year
Transactions with Owners in Their Capacity as Owners:
Dividend paid
Issue of shares
Total Transactions with Owners
Balance at 30 June 2022
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
Share Capital and Reserves
(a) Summary Table
67,466,445 ordinary shares (June 2021: 63,141,445)
Total
(b) Movement in Shares on Issue
Number of Shares
At the beginning of reporting period
Issue of shares under options scheme
At Reporting Date
8
63,141,445
-
-
-
-
4,325,000
4,325,000
67,466,445
63,141,445
-
-
-
-
-
14,080
-
-
-
-
2,367
2,367
16,447
14,080
-
-
-
-
-
63,141,445
14,080
7,844
1,646
-
1,646
(3,450)
-
(3,450)
6,040
7,656
3,029
-
3,029
(2,841)
(2,841)
7,844
73
-
-
-
-
-
-
73
73
-
-
-
-
-
73
Total
$’000
21,997
1,646
-
1,646
(3,450)
2,367
(1,083)
22,560
21,809
3,029
-
3,029
(2,841)
(2,841)
21,997
2022
$’000
16,447
16,447
2021
$’000
14,080
14,080
2022
No.
2021
No.
63,141,445
4,325,000
63,141,445
-
No further shares have been issued since 30 June 2022. 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
Total
The following options are on issue at the date of this report:
2022
$’000
73
73
2021
$’000
73
73
67,466,445
63,141,445
Employee and Directors options
Options
Expiry Date
Exercise Price
05 October 2023
$0.55
Number
475,000
BlackWall Limited June 2022 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.
Revenue
$’000
Operating Expense
$’000
Operating Profit
$’000
COVID Stimulus
$’000
Interest
and Depn
$’000
Revaluation
(Loss) / Gain
$’000
Pre-tax
Profit
$’000
Profit or Loss 2022
BlackWall
Investments
Corporate
Total Operations 2022
Profit or Loss 2021
BlackWall
Investments
Corporate
Continuing Operations
WOTSO Franchise
Total Operations 2021
Balance Sheet 2022
BlackWall
Investments
Corporate
Consolidated
Balance Sheet 2021
BlackWall
Investments
Corporate
Consolidated
6,099
256
-
6,355
5,730
(9)
-
5,721
432
6,153
(3,071)
(607)
(757)
(4,435)
(2,749)
(578)
(511)
(3,838)
(122)
(3,960)
3,028
(351)
(757)
1,920
2,981
(587)
(511)
1,883
310
2,193
223
-
-
223
504
-
-
504
-
504
(44)
(6)
-
(50)
(51)
(4)
-
(55)
(312)
(367)
Assets
$’000
4,013
23,520
-
27,533
Assets
$’000
4,181
22,664
-
26,845
-
(237)
-
(237)
-
1,567
-
1,567
-
1,567
3,207
(594)
(757)
1,856
3,434
976
(511)
3,899
(2)
3,897
Liabilities
$’000
(2,103)
(2,597)
(273)
Net Assets
$’000
1,910
20,923
(273)
(4,973)
22,560
Liabilities
$’000
(1,473)
(2,979)
(396)
Net Assets
$’000
2,708
19,685
(396)
(4,848)
21,997
9
BlackWall Limited June 2022 2. COVID Impact
In the current year, WOTSO Property (WOT), an investee of the Group, continued to provide rent relief to
During 2022 the group disposed of its investment in Gymea Bay Unit Trust (GBUT). GBUT redeveloped 2
tenants in the form of rent waivers and deferrals, as required by the mandatory code of conduct between
landlords and tenants. WOTSO Limited, a stapled group member of WOT, also reinstated its suspension policy
residential properties in the south of Sydney. The income of $181,000 reflects BWF’s 25% share of the profit
on sale of the properties.
during the year, which was available to any members located in COVID affected lockdown areas, and allowed
these members to suspend their membership without penalty. This resulted in average revenue decreases
of approximately 65% across impacted sites during the lockdowns for WOTSO Limited. The policy ended in
The IndigoBlack income is the share of profit from BWF’s investment in this construction business. BWF also
received a cash dividend from the entity of $90,000.
November 2021 and WOTSO Limited’s revenue has since recovered with June annualised revenue reaching
See Note 9 for further information.
just shy of $24 million, close to 50% higher than pre-COVID levels.
This decrease in WOT’s revenue, as a result of the COVID related rent relief and membership suspension policy
meant a reduction in BlackWall’s management fees that could have been charged.
4. Net Unrealised (Loss) / Gain on Investments
BWF qualified for the government’s JobSaver program and other related stimulus measures since the start
of the pandemic in March 2020. The government stimulus revenue received for the current financial year was
$223,000 (2021: $504,000).
3. Revenue
Revenue is earned through management, performance and transaction fees from real estate investment
structures.
Fund management fees
Property management fees
Project management fees
Leasing fees
Expense recovery and other fees
Management Fees Total
Transaction fee - Asset acquisitions
Transaction fee - Asset disposal
Transaction fee - Capital raising
Transaction income - IndigoBlack
Transaction income - Gymea Bay
Transaction Income Total
Total Revenue
Timing of revenue recognition:
- Management fees incurred over time
- Transaction income at a point in time
10
2022
$’000
3,161
693
762
214
909
5,739
328
35
-
363
72
181
616
6,355
5,739
616
6,355
2021
$’000
3,176
633
287
505
795
5,396
189
-
150
339
(14)
-
325
5,721
5,396
325
5,721
Unrealised (loss) / gain - WOT
Total
2022
$’000
(237)
(237)
2021
$’000
1,567
1,567
The unrealised (loss) / gain is driven by the ASX price of WOT securities at 30 June. For additional information
refer to Note 8 - Investments.
5. Operating Expenses
Employee and consultant expenses
Other operating expenses
Depreciation – right of use assets
Lease interest costs
Total
6. Income Tax Expense
Current tax
Deferred tax
Total
Prima facie tax payable on profit from ordinary activities before
income tax at 25.0% (2021: 26.0%)
Add / (less) tax effect of:
Non-deductible items
Deductible items
Change in tax rate - restatement of deferred tax balances
Over provision in prior years
Total
2022
$’000
3,330
947
138
20
4,435
2022
$’000
488
(278)
210
464
(226)
-
-
(28)
210
2021
$’000
2,806
893
118
21
3,838
2021
$’000
348
497
845
1,014
5
(10)
(115)
(49)
845
BlackWall Limited June 2022 7. Trade and Other Receivables
9. Equity Accounted Investments
Trade receivables:
Related parties
Other parties
Total Trade Receivables
Other receivables
Total
2022
$’000
1,289
-
1,289
4
1,293
2021
$’000
237
82
319
13
332
Investee
IndigoBlack Construction
Gymea Bay Unit Trust
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 2022 (2021: $nil).
8. Investments
WOTSO Property is listed on the ASX under the code “WOT”. At 30 June 2022, WOT was quoted at $1.39 per
security on the ASX (2021: $1.47 per security), and the net asset value was $1.56 per security (2021: $1.44 per
security).
A reconciliation of investments is set out below:
June 2022
Balance at the beginning of the year
Return of capital
Purchases
Mark to market valuation
Balance at the End of the Year
June 2021
Balance at the beginning of the year
Return of capital
Conversion to stapled securities
Purchases
Mark to market valuation
Balance at the End of the Year
WOT
$’000
22,602
(968)
2,015
(237)
23,412
WOTSO
Limited
$’000
3,893
-
(3,893)
-
-
-
Total
$’000
22,602
(968)
2,015
(237)
23,412
Total
$’000
20,206
(804)
-
1,633
1,567
22,602
WOT
$’000
-
-
19,402
1,633
1,567
22,602
BWR
$’000
16,313
(804)
(15,509)
-
-
-
During the 2021 year, BlackWall’s investments in BWR and WOTSO Limited were replaced by a single holding
in the stapled entity, WOT.
2022
Ownership
%
25
-
2021
Ownership
%
25
25
IndigoBlack
Construction
$’000
Gymea Bay
Unit Trust
$’000
58
72
(90)
-
40
-
181
-
(181)
-
2022
$’000
40
-
40
Total
2022
$’000
58
253
(90)
(181)
40
2021
$’000
58
-
58
Total
2021
$’000
72
(14)
-
-
58
Carrying amount at beginning of year
Share of comprehensive income / (loss)
Dividend received
Disposal of investments
Carrying Amount at End of Year
10. Employee Loans
Loans have been made to Directors and employees in order for them to acquire shares under the employee
share scheme. The loans attract interest at a rate equivalent to the deemed ATO loan interest rate and are
secured against the shares. At 30 June 2022, $1.1 million in loans have been issued to employees of the Group
(2021: $nil).
11. Property, Plant and Equipment
At cost
Less accumulated depreciation
Total Written Down Value
Carrying amount at the beginning of year
Additions
Depreciation expense
Carrying Amount at the End of Year
2022
$’000
924
(802)
122
2022
$’000
141
25
(44)
122
2021
$’000
899
(758)
141
2021
$’000
164
28
(51)
141
11
BlackWall Limited June 2022 12. Right of Use Lease Asset
15. Deferred Tax Liabilities
Right of use lease asset
Less: Accumulated depreciation
Written Down Value of Right of Use Lease Assets
2022
$’000
773
(329)
444
2021
$’000
770
(191)
579
BWF leases its head office located in Neutral Bay NSW. BWF has entered into an option agreement with its
Deferred Tax Liabilities / (Assets) Balance Comprises:
Financial assets
Provision for employee benefits
Accrued expenses
Lease assets
Neutral Bay landlord that is expected to see its lease terminated as part of a sale of the asset. An option fee
of $10,000 has been received and $490,000 is receivable if the option is exercised. The option expires in
Total
Movements:
Balance at the beginning of year
Charged to the profit and loss
Balance at the End of Year
16. Lease Liabilities
Opening balance
Interest charged
Repayments
Additions
Disposals
Modifications
Total Lease Liabilities
Current
Non-current
Total
September and can be extended for another year.
13. Trade and Other Payables
Trade payables:
Other parties
Related parties
Total Trade Payables
Sundry payables and accrued expenses
Total
2022
$’000
2021
$’000
680
102
782
134
916
403
-
403
79
482
Further information relating to trade payables from related parties is set out in Note 24 - Related Party Transactions.
14. Provisions
Current – employee benefits
Non-current – employee benefits
Total Provisions
Balance at the beginning of year
Net additional provision increase
Balance at the End of Year
The number of BWF employees as at 30 June 2022 was 21 (2021: 20).
2022
$’000
701
25
726
504
222
726
2021
$’000
493
11
504
431
73
504
12
The disposal in 2021 was due to the WOTSO Franchise subsidiary leaving the group.
17. Provision for Tax Payable
Payable / (Refund) at the beginning of year
Current year tax liability
(Payments made) / Refunds received
(Over) / under provision in prior years
Payable at the End of Year
2022
$’000
396
516
(611)
(28)
273
2022
$’000
2,801
(182)
(21)
(6)
2,592
2,870
(278)
2,592
2022
$’000
596
20
(153)
-
-
3
466
137
329
466
2021
$’000
3,007
(126)
(7)
(4)
2,870
2,373
497
2,870
2021
$’000
2,323
45
(393)
301
(1,808)
128
596
132
464
596
2021
$’000
(354)
396
347
7
396
BlackWall Limited June 2022 18. Dividends
21. Contingencies
Fully franked dividends paid to shareholders during the financial year were as follows:
The Group had no contingent assets or liabilities at 30 June 2022 (2021: $nil).
2021 final dividend of 2.6 cents paid on 15 September 2021
(2020 final: 2.1 cents)
2022 interim dividend of 2.6 cents paid on 7 April 2022
(2021 interim: 2.4 cents)
Total
2022
$’000
1,696
1,754
3,450
2021
$’000
1,325
1,516
2,841
In addition, the Board has declared a final fully franked dividend of 2.4 cents per share to be paid on
8 September 2022.
22. Subsequent Events
The Board has declared a final fully franked dividend of 2.4 cents per share to be paid on 8 September 2022.
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
of affairs or the results of operations in future financial years.
Franking credits available for the subsequent periods based on a tax
rate of 25.0% (2021: 25.0%)
2022
$’000
1,437
2021
$’000
2,026
23. Controlled Entities
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.
19. Earnings Per Share
Basic earnings per share
Diluted earnings per share
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
20. Auditor’s Remuneration
Remuneration of ESV for:
Audit and assurance services
Taxation services
Other services
Total
2022
2.5 cents
2.5 cents
$1,646,000
$1,646,000
65,629,785
65,704,671
2021
4.8 cents
4.8 cents
$3,029,000
$3,054,000
63,141,445
63,141,445
2022
$
43,000
11,050
24,200
78,250
2021
$
51,000
11,000
23,000
85,000
Parent Entity:
BlackWall Limited
Subsidiaries of Parent Entity:
BlackWall Management Services Pty Ltd
BlackWall Fund Services Limited
BlackWall Management (NZ) Ltd
Bakehouse Management Pty Ltd
Bakehouse Quarter Trust
APG Asset Management Pty Ltd
Country of
Incorporation
Australia
Australia
Australia
New Zealand
Australia
Australia
Australia
Percentage Owned
2022
(%)
2021
(%)
n/a
100
100
100
100
100
-
n/a
100
100
100
99.99
-
100
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 9 - Equity Accounted Investments.
Managed Funds
The Group holds investments in a number of property funds for which it acts as either manager or responsible entity.
13
BlackWall Limited June 2022 Fees and Transactions
Management fees are charged to these entities predominantly for property and fund management services.
(b) Interests in Related Parties
As at year end the Group owned units in the following related entities:
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:
• funds management: provision of strategic investment advice, asset management and investment
portfolio services; and
• property management: property portfolio advisory services, maintenance and insurances, strategic
advice and management supervision services, administration, leasing, project management,
marketing and risk management services.
Entity
WOT
BWR
Holdings
2022
No.
2021
No.
16,843,284
-
15,375,201
-
(c) Key Management Personnel Compensation
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
Total remuneration paid
by members of the Group on behalf of the related parties, associates and managed funds. In addition, the
Distribution/Returns
of Capital/Interest
2022
$
968,307
-
968,307
2021
$
-
804,149
804,149
2022
$
2021
$
970,000
820,000
Group pays the following fees to related entities:
Detailed remuneration disclosures and relevant interests are provided in the Directors’ Report.
• rent for BWF head office. The rent paid is determined with reference to arm’s length commercial
rates; and
• director fees.
25. Parent Entity Information
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
Results:
Profit / (loss) after tax
made on arm’s length commercial terms and conditions and at market rates, and were approved by the Board
Total Comprehensive Income / (Loss) After Tax
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.
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
Employee loans
Trade and other payables - current
14
2022
$
2021
$
4,999,788
387,650
968,307
4,404,085
990,488
804,149
180,744
397,392
1,288,708
1,055,530
101,751
236,981
-
-
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
2022
$’000
368
368
298
1,096
1,394
(873)
(3,179)
(4,052)
(2,658)
16,447
(19,164)
59
(2,658)
2021
$’000
(2,217)
(2,217)
3
714
717
(495)
(2,165)
(2,660)
(1,943)
14,080
(16,082)
59
(1,943)
The parent entity had no contingencies or capital commitments at 30 June 2022 (2021: $nil). The accounting
policies of the parent entity are consistent with those of the consolidated entity, as disclosed in Note 28.
BlackWall Limited June 2022 26. Financial Risk Management
(d) Liquidity Risk
(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 instruments:
At 30 June 2022
Financial Liabilities
Trade and other payables
Lease liabilities
At 30 June 2021
Financial Liabilities
Trade and other payables
Lease liabilities
Maturing
Within 1 Year
$’000
Maturing
2-5 Years
$’000
Maturing
over 5 Years
$’000
916
137
1,053
482
132
614
-
329
329
-
464
464
-
-
-
-
-
-
Total
$’000
916
466
1,382
482
596
1,078
Financial Assets
Cash and cash equivalents
Investment in WOT
Employee loans
Financial Liabilities
Trade and other payables
Lease liabilities
2022
$’000
1,166
23,412
1,056
916
466
2021
$’000
3,133
22,602
-
482
596
(b) Sensitivity Analysis
The Group is not exposed to any material credit, foreign exchange, interest or liquidity risks.
(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:
• Level 1 – Quoted prices (unadjusted) in active markets for identical assets or liabilities;
• 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
• Level 3 – Inputs for the asset or liability that are not based on observable market data (unobservable
inputs).
The fair value of financial assets traded in active markets is subsequently based on their quoted market prices
The investment in WOT securities are subject to price risk, a 10% decrease in the ASX trading price (from the
at the end of the reporting period without any deduction for estimated future selling costs. The quoted market
price at 30 June 2022, i.e. $1.39 per security) would result in an unrealised loss after tax of $1.8 million.
price used for financial assets held by the Group is the current bid price.
(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 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 2022
Investment in WOT
At 30 June 2021
Investment in WOT
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
$’000
23,412
22,602
-
-
-
-
23,412
22,602
15
BlackWall Limited June 2022 (ii) Valuation Techniques Used To Derive Level 3 Fair Values
There are no financial assets classified as level 3 of the fair value hierarchy at 30 June 2022 (2021: $nil).
(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 2022
Balance at the beginning of the year
Movement
Balance at the End of the Year
At 30 June 2021
Balance at the beginning of the year
Reduction due to WOTSO Limited forming part of the WOT stapled security
Balance at the End of the Year
There were no transfers between Level 1, 2 and 3 financial instruments during the period.
27. Critical Accounting Estimates and Judgments
$’000
-
-
-
3,893
(3,893)
-
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:
• discount rates for financial assets and financial liabilities are determined using a capital asset pricing
model to calculate a rate that reflects the risk specific to the asset;
• 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
with consideration given to economic factors prevailing at the location and competitor prices; and
• 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.
28. Statement of Significant Accounting Policies
BWF is a publicly listed company, incorporated and domiciled in Australia. The financial 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
Australian Accounting Standards and other authoritative pronouncements of the Australian Accounting Standards
The Directors evaluate estimates and judgments incorporated into the financial statements based on historical
Board and the Corporations Act 2001. The financial statements of the Group also comply with IFRS as issued by
knowledge and best available current information. Estimates assume a reasonable expectation of future events
the International Accounting Standards Board.
and are based on current trends in economic data, obtained both externally and within the Group.
Key Estimates - COVID
The impact of the COVID pandemic is ongoing. It is not practical to estimate the potential impact, positive or
negative, 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, vaccinations, travel restrictions and any economic stimulus that may
be provided.
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.
The financial statements have been prepared on an accruals basis and are based on historical costs modified by
the revaluation of selected non-current assets, financial assets and financial liabilities for which the fair value basis
of accounting has been applied.
BWF is a group of the kind referred to in ASIC Instrument 2016/191 and, in accordance with that Instrument,
amounts in the Directors’ Report and the financial statements are rounded off to the nearest thousand dollars,
unless otherwise indicated.
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
Key Estimates - Financial Assets
All financial assets at Fair Value Through the Profit or Loss (FVTPL) have been classified as financial assets, with
business.
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.
16
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
BlackWall Limited June 2022 and internal reporting structure. Segment results, assets and liabilities include items directly attributable to a
When the Group’s share of losses in an equity accounted investment equals or exceeds its interest in the entity,
segment as well as those that can be allocated on a reasonable basis. The operating businesses are organised
including any other unsecured long-term receivables, the Group does not recognise further losses, unless it has
and managed separately according to the nature of the products and services provided, with each segment
incurred obligations or made payments on behalf of the other entity. The carrying amount of equity accounted
representing a strategic business unit that offers different products and serves different markets
investments is tested for impairment in accordance with these policies.
The Group has adopted three reporting segments: BlackWall, Investments, and Corporate.
The BlackWall segment engages in funds and asset management as well as property services that include
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
and unlisted unit trusts, loans and cash. It generates income from dividends, distributions and interest.
The Corporate segment relates to company taxation and selected corporate overheads.
Presentation of Financial Statements
Both the functional and presentation currency of BWF and its Australian subsidiaries is Australian dollars.
Non-Controlling Interests
Non-controlling interests (not held by the Group) are allocated their share of net profit and comprehensive
income after tax in the statement of profit or loss and other comprehensive income and 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
Various functional currencies including New Zealand Dollar results are translated to presentation currency.
day-to-day servicing of property, plant and equipment are recognised in profit and loss as incurred.
Principles of Consolidation
The consolidated financial statements comprise the financial statements of BWF and its subsidiaries. A list of
Depreciation
The depreciable amount of all fixed assets is depreciated on a diminishing value basis over their useful lives to
controlled entities is contained in Note 23 - Controlled Entities. All controlled entities have a June financial year
the Group commencing from the time the asset is held ready for use.
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).
The estimated useful lives used for each class of depreciable assets are:
Subsidiaries are all those entities over which the consolidated entity has control. The consolidated entity controls
an entity when the consolidated entity is exposed to, or has rights to, variable returns from its involvement
Furniture, fixtures and fittings
Office equipment
over 2 to 10 years
over 4 to 10 years
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.
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.
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
Disposal
An item of property, plant and equipment is derecognised upon disposal or when no further economic benefits
necessary to ensure consistencies with those policies applied by the parent entity.
are expected from its use or disposal.
Associates
Interests in associates are accounted for using the equity method. Under the equity method of accounting, the
investments are initially recognised at cost and adjusted thereafter to recognise the Group’s share of the post
acquisition profits or losses of the investee in profit or loss. Dividends received or receivable from associates are
recognised as a reduction in the carrying amount of the investment.
Any gain or loss arising on derecognition of the asset (calculated as the difference between the net disposal
proceeds and the carrying amount of the asset) is included in the profit or loss in the year the asset is
derecognised.
17
BlackWall Limited June 2022 Impairment of Assets
At each reporting date, the Group reviews the carrying values of its tangible and intangible assets to determine
whether there is any indication that those assets have been impaired.
(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.
If such an indication exists, the recoverable amount of the asset, being the higher of the asset’s fair value less
(ii) Loans and Receivables
costs to sell and value in use, is compared to the asset’s carrying value. In assessing value in use, either the
Loans and receivables including loans to related parties are non-derivative financial assets with fixed or
estimated future cash flows are discounted to their present value using a pre-tax discount rate that reflects
determinable payments that are not quoted in an active market and are stated at amortised cost using the
current market assessments of the time value of money and the risks specific to the asset, or the income of the
effective interest rate method. Gains and losses are recognised in profit and loss when the loans and receivables
asset is capitalised at its relevant capitalisation rate.
are derecognised or impaired, as well as through the amortisation process.
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.
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.
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
effective interest rate. An impairment loss in respect of an available-for-sale financial asset is calculated by
reference to its fair value.
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 assessed collectively in groups that share similar credit risk characteristics.
Financial assets are derecognised if the Group’s contractual rights to the cash flow from the financial assets
Impairment losses are recognised in the profit or loss. An impairment loss is reversed if the reversal can be
expire or if the Group transfers the financial assets to another party without retaining control or substantially
related objectively to an event occurring after the impairment loss was recognised. For financial instruments
all risks and rewards of the asset. Purchases and sales of financial assets are accounted for at trade date, i.e.
measured at amortised cost, the reversal is recognised in profit and loss.
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.
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.
18
BlackWall Limited June 2022 Under the equity method of accounting, investments in the associates are carried in the consolidated balance
Investment Income
Finance income comprises interest on funds invested and gains on the disposal of financial assets. Interest
sheet at cost plus post-acquisition changes in the Group’s share of net assets of the associates. The Group’s
income is recognised as interest accrues using the effective interest method. Dividend and distribution revenue
share of its associates’ post-acquisition profits or losses is recognised in the income statement, and its share of
is recognised when the right to receive income has been established.
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
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.
of further losses is discontinued except to the extent that the Group has an obligation or has made payments
All revenue is stated net of the amount of GST.
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.
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
Leases
AASB 16 was adopted by the Group on 1 July 2019, applying the modified retrospective approach. Right of
use assets and liabilities are recognised for all leases with a lease term of more than 12 months; unless the
underlying asset is of a low value. Initial recognition of both the right of use asset and corresponding lease
liability is calculated using the present value of remaining lease payments; discounted using the rate implicit in
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
for goods or services received, whether or not billed to the Group at balance date. The amounts are unsecured
balance sheet date.
and are usually paid within 30 days of recognition.
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 income. They are recognised when it becomes
legally due and payable to the Group.
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.
19
BlackWall Limited June 2022 Deferred Income Tax Assets
Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available
Dividends
The final dividend for June period is declared and authorised after the end of the reporting period, therefore
against which deductible temporary differences can be utilised. The carrying amount of deferred income tax
provision for dividend is not booked in the current year accounts.
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
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
that no adverse change will occur in income taxation legislation and the anticipation that the economic entity will
ordinary shareholders and the weighted average number of ordinary shares outstanding for the effects of all
derive sufficient future assessable income to enable the benefit to be realised and comply with the conditions
dilutive potential ordinary shares.
of deductibility imposed by the law.
Tax Consolidation
BWF has elected to form a tax consolidated group with its wholly-owned entities for income tax purposes
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
under the tax consolidation regime with effect from 1 January 2011. As a consequence, all members of 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.
tax consolidated group are taxed as a single entity from that date. The head entity within the tax consolidated
group is BWF.
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.
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.
20
BlackWall Limited June 2022 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 1 August 2022.
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
293
483
225
295
60
1,356
1. Shareholders
The Group’s top 20 largest shareholdings were:
Investor
1 Seno Management Pty Ltd
2 Vintage Capital Pty Limited
3 Lymkeesh Pty Ltd
4 Frogstorm Pty Ltd
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