Beacon Lighting Group Limited
ANNUAL
REPORT
2019
Contents
Chairman’s and Chief Executive Officer’s Report
Board of Directors
Management Team
Corporate Governance Statement
Directors’ Report
Auditor’s Independence Declaration
Index to the Financial Statements
Consolidated Statement of Comprehensive Income
Consolidated Balance Sheet
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to Consolidated Financial Statements
Directors’ Declaration
Independent Auditor’s Report to the Members
of Beacon Lighting Group Limited
Shareholders’ Information
Corporate Directory
Store Locations
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Important Notice
This financial report is the consolidated financial report of the consolidated entity consisting Beacon Lighting Group Limited, ACN 164 122 785 and its subsidiaries. Beacon
Lighting Group Limited is a Company limited by shares, incorporated and domiciled in Australia. Its registered office and principal place of business is 5 Bastow Place
Mulgrave Victoria 3170. A description of the nature of the consolidated entity’s operations and its principal activities is included in the Directors’ report on page 12, which
is not part of the financial report. The financial report was authorized for issue by the Directors on 19 August 2019. The Directors have the power to amend and re-issue
the financial statements.
Chairman’s & Chief Executive Officer’s Report
The Beacon Lighting Group is pleased to announce the sales and profit result for
FY2019. The Board of Directors would like to thank our Customers, Associates,
Suppliers and Shareholders for their support and contribution to our results in FY2019.
FY2019 HIGHLIGHTS
FINANCIAL RESULT
The key highlights which contributed to the 53 weeks ended 30
June 2019 include:
Record sales result of $246.3 million.
EBITDA result of $29.6 million and NPAT result of
$16.0 million.
The opening of five new company stores and the
purchase of two franchised stores.
The purchase of the ex-Masters store in Parkinson (QLD)
and transforming it into a new Distribution Centre to
service the QLD and NSW markets.
Record sales for Beacon Lighting Company stores,
Online Sales Channels, Beacon International, Beacon
Energy Solutions, Light Source Solutions Roadway and
Masson For Light.
GROUP OVERVIEW
The Beacon Lighting Group finished FY2019 with 109 company
stores and 4 franchised stores. During the year, the Group
opened new company stores at Warrnambool (VIC), Mackay
(QLD), Moore Park (NSW), Modbury (SA) and Craigieburn (VIC).
The Beacon Lighting Group also purchased the franchised
stores at Underwood (QLD) and Albury (NSW) and converted
them to company stores. The Subiaco (WA) store was also
closed during FY2019.
The Beacon Lighting Commercial team continues to operate
sales offices in Brisbane (QLD), Sydney (NSW), Melbourne
(VIC), Adelaide (SA) and Perth (WA). Beacon International has
sales offices in Hong Kong, Germany and the United States and
a support office in China. Light Source Solutions Globes has
sales teams in Australia and New Zealand while Light Source
Solutions Roadway services customers across Australia.
Beacon Energy Solutions has a sales office in Melbourne (VIC)
and Masson For Light has one store in Richmond (VIC).
The Beacon Lighting Group sales and profit performance
was challenging during H2 FY2019. As reported in the trading
update to the ASX on 30 April 2019, trading was subdued as
a result of a number of factors including a decline in housing
prices and churn rates, weak consumer confidence, the federal
election and tighter credit availability within the housing sector.
All of these factors impacted upon the Beacon Lighting Group
result for FY2019.
The Beacon Lighting Group achieved a sales result of $246.3
million. The sales result was also reflected in the company
comparative sales which declined by 2.3%, on a 52 week
comparable basis in FY2019. QLD was the better performing
state, whilst sales in NSW, VIC and WA were all disappointing.
The sales increases achieved by Beacon International, Beacon
Energy Solutions, Light Source Solutions Roadway and
Masson For Light were pleasing.
Despite the change in the sales mix and the decline in the
AUD/USD exchange rate, the Beacon Lighting Group was still
able to produce a strong gross profit margin result in FY2019.
The gross profit margin result of 64.0% in FY2019 was a good
outcome despite it declining from the record gross profit
margin result of 65.7% in FY2018.
Although having a strong focus on cost control throughout
FY2019, Beacon Lighting continued to invest in new stores,
Commercial and the emerging businesses. This saw an
increase in the Selling and Distribution expenses as a
percentage of sales whilst the Marketing and Administration
expenses declined as a percentage of sales. As a percentage
of sales, operating expenses (which exclude finance costs,
depreciation and amortisation) were 52.7% in FY2019.
In line with the trading update, the Beacon Lighting Group was
able to achieve an EBITDA result of $29.6 million in FY2019.
The Beacon Lighting Group also achieved a NPAT result of
$16.0 million in FY2019.
CHAIRMAN’S AND CHIEF EXECUTIVE OFFICER’S REPORT
1
KEY GROWTH STRATEGIES
OUTLOOK
The key growth strategies in FY2020 will be:
• Continue to enhance the brand and the customer experience
in order to increase differentiation and drive incremental
sales.
• Target the growth of sales and profit through the optimisation
of the existing store network.
• Target the opening of new company operated stores in
Australia.
• Offer an extensive range of the latest fashion, on trend, energy
efficient and home automation lighting and fan products at
great prices to our customers.
• Continue to enhance our online presence in order to drive
incremental sales.
The Beacon Lighting Group remains committed to being at
the forefront of the changes that are occurring in the lighting
industry and around the world. The Group will continue to
focus on new technologies, fashion and energy efficient lighting
solutions supported by market leading customer service.
Beacon Lighting Group continues to maintain it’s strong market
position as Australia’s leading lighting retailer and combined
with its emerging businesses the Group remains very well
positioned to take advantage of the changes that are occurring
in the lighting industry.
The Beacon Lighting Group is planning for further growth in
FY2020 and has already committed to the following activities:
• The opening of new company stores at Virginia (QLD) and
Belmont (WA).
• The purchase of the Myaree (WA) franchised store and
conversion to a company store will occur in September 2019.
• Target the growth of sales and profits in the emerging
businesses.
• The relocation of the Midland (WA) store.
• Investigate and pursue local and international business
opportunities that complement the core activities of the
Group.
• Target efficiency gains and productivity improvements as the
store network matures.
DIVIDENDS
The Beacon Lighting Group Directors have declared a fully
franked dividend of 2.00 cents per share for H2 FY2019
(compared to 2.50 cents per share for H2 FY2018). Along with
the H1 FY2019 fully franked dividend of 2.55 cents per share
(compared to 2.50 cents per share for H1 FY2018), this brings
the annual Beacon Lighting Group dividend for FY2019 to 4.55
cents per share (compared to 5.00 cents per share in FY2018).
The Directors will continue to target a dividend payout ratio of
between 50% and 60% of the annual Net Profit After Tax result.
• Re-platforming of the beaconlighting.com.au website and
online sales channel.
• The expansion of Beacon International into new markets in
Canada and China.
• The introduction of exciting new product ranges for the
Beacon Lighting Stores, Beacon International, Light Source
Solution Globes, Light Source Solutions Roadway and
Masson For Light businesses.
The Beacon Lighting Group is encouraged that following the
federal election result, interest rate cuts, tax rebates and tax
cuts have provided more optimism within the housing industry
and market confidence going forward into FY2020.
Ian Robinson
Executive Chairman
Glen Robinson
Chief Executive Officer
2
BEACON LIGHTING GROUP ANNUAL REPORT 2019 3
Board of Directors
Ian Robinson
Executive Chairman
Glen Robinson
Chief Executive
Officer
45 years of service
Ian Robinson purchased the first Beacon Lighting store in 1975. Over
the subsequent 44 years, his role has grown from store management,
to CEO and in July 2013 to his current role as Executive Chairman.
Ian remains actively involved in the operations of the Group. Ian is a
Director of Lighting Council of Australia, Carbonetix Pty Ltd and the
Large Format Retailers Association.
24 years of service
Glen Robinson assumed his current role of Chief Executive Officer
in July 2013 after joining the Group in 1994. Glen has a strong
understanding of the business having started with the Group on the
sales floor, progressing to trainee buyer, merchandising manager
and then taking responsibility for Beacon Lighting’s product range
from development to in-store presentation. Glen holds a Bachelor of
Business (Management).
(James) Eric Barr
Deputy Chairman
Non-Executive
Director
Neil Osborne
Non-Executive
Director
Eric Barr is Deputy Chairman and Chairman of the Remuneration and
Nomination Committee of the Group. Eric retired in 2000 as a Partner
with PricewaterhouseCoopers after 20 years of service. Since then
Eric has been a Director of public companies in the United States and
Australia, including 10 years as lead director of Reading International
Inc. Eric is a Non-Executive director of Generation Life Limited (formerly
known as Austock Group Limited) where he holds the positions of
Chairman of the Audit Committee, Chairman of Risk Committee and
Chairman of the Remuneration Committee. Eric was previously a Non-
Executive director of the Sydney Stock Exchange Limited, holding the
positions of Chairman of Directors and Chairman of the Audit Committee.
Eric is a Chartered Accountant.
Neil Osborne is a Non-Executive Director and is also Chairman of the
Group’s Audit Committee. Neil has over 35 years experience in the retail
industry. Neil was formerly an Accenture Partner, leading large strategic
projects in Australia and Asia. Neil also spent 18 years with Coles Myer
Ltd in senior positions including finance (including CFO Myer), operations
and strategic planning. Neil is a Non-Executive Director of Vita Group
(ASX Listed) and Chairman of their Audit and Risk Committee. Neil is
also Chairman of Australian United Retailers (trading as Foodworks). Neil
holds a Bachelor of Commerce, is a CPA and a FAICD.
4
BEACON LIGHTING GROUP ANNUAL REPORT 2019 Management Team
Prue Robinson
Marketing Director
Joined Beacon Lighting in
2006 following a variety of
roles in Sydney and London
and four years in marketing
with Spotlight. Prue holds
a BBus (Management and
Marketing).
Lenore Harris
Group Human
Resources Manager
Joined Beacon Lighting in 2017 having
had extensive retail management,
human resources and communications
experience predominantly at Myer and
Monash University’s Australian
Centre for Retail Studies.
Lenore holds a BA (Psych
/Sociology) and a Diploma
in Investor Relations.
Tracey Hutchinson
Financial Controller &
Company Secretary
Joined Beacon Lighting in 2011
having had senior financial
management roles with various
ASX businesses, including
Eyecare Partners. Tracey holds
a BBus (Accounting), a MBus
(Administration), a Graduate
Diploma of Corporate
Governance and is a CPA.
Rodney Brown
General Manager –
Supply Chain
Joined Beacon Lighting in
2012 with extensive supply
chain experience including
management roles with
Cadbury Schweppes and
Fosters Brewing.
Ian Bunnett
Managing Director
- Sales
Joined Beacon Lighting in
2004 having had extensive
retail experience including
the GM of Store Operations
with Payless Shoes.
David Speirs
Chief Financial Officer
Joined Beacon Lighting in 2003
after six years of business
consulting and a career working
with various Coles Myer businesses.
David holds a BBus (Accounting),
MBus (Accounting), Post Grad
Dip (Finance) and is a FCPA.
Barry Martens
Chief Operating Officer
Joined Beacon Lighting
in 1996 following a retail
advertising career with
Clemenger Harvey
and retail marketing
experience with
Klein’s Jewellery.
Michael (Mick) Tan
Chief Information Officer
Joined Beacon Lighting in 2000
and has had more than 30 years
information technology experience
including a career with Fujitsu
Systems. Mick holds a Dip
(Management).
MANAGEMENT TEAM
5
Corporate Governance Statement
The Board of Directors of Beacon Lighting Group Limited is responsible for the corporate governance of the Group. This statement
outlines the corporate governance policies and practices formally approved by the Board of Beacon Lighting. This statement is current
as at 19 August 2019. These policies and practices are in accordance with the ASX Corporate Governance Council’s Corporate
Governance Principles and Recommendations (3rd Edition) unless otherwise stated. The Board considers that the Group’s corporate
governance practices and procedures substantially reflect the principles. The full content of the Group’s Corporate Governance
policies and charters can be found on the Group’s website (www.beaconlightinggroup.com.au).
PRINCIPLE 1
PRINCIPLE 2
Lay Solid Foundations for Management and Oversight
Structure the Board to Add Value
The Board’s responsibilities are defined in the Board Charter
and there is a clear delineation between the matters expressly
reserved to the Board and those delegated to the Chief
Executive Officer and senior management.
The Board Charter outlines:
The experience and expertise relevant to the position of
Director held by each Director in office at the date of the annual
report is included in the Directors’ Report.
The term in office held by each Director in office at the date of
this report is as follows:
• The guidelines
for Board composition,
including
the
processes around Director appointments and resignations.
• The operation of the Board and the Board Committees.
• The roles of the Board, the Chairperson, CEO and senior
management.
• Specifically includes risk management responsibilities (rather
than these being delegated to a separate Risk Committee).
A copy of the Group’s Board Charter is available on the Group’s
website.
The Board and Committee Charters sets out the processes for
the annual review of the performance of the Board as a whole,
each Director and the Board Committees.
The Board has established a Remuneration and Nomination
Committee which is responsible for reviewing executive
remuneration and incentive policies and practices.
The Group has a written agreement with each Director and
senior executive setting out the terms of their appointment.
The Group has adopted a Diversity Policy. The Group does
not propose to establish measurable objectives for achieving
gender diversity in the foreseeable future as recommended
by Recommendation 1.5 of the ASX Corporate Governance
Principles and Recommendations. The Group is strongly
committed to making all selection decisions on the basis of
merit and the setting of specific targets for the proportion
of men and women at any level would potentially influence
decision making to the detriment of the business.
The Diversity Policy affirms the commitment of the Group
to embrace diversity and sets out the principles and work
practices to ensure that all Associates have the opportunity to
achieve their full potential.
NAME
TERM IN OFFICE
Ian Robinson
Eric Barr
Glen Robinson
Neil Osborne
6 years
5 years
5 years
5 years
Note: these terms of office relate to the listed entity Beacon
Lighting Group Limited only and do not relate to the subsidiary
or operating entities.
Ian Robinson is a substantial shareholder. He has been
Executive Chairman since July 2013 having previously held the
position of Executive Chairman and Chief Executive Officer.
Eric Barr and Neil Osborne are shareholders of Beacon Lighting
Group Limited. They are Non-Executive Directors and bring
objective judgment to bear on Board decisions commensurate
with their commercial knowledge, experience and expertise.
Glen Robinson is a senior executive of Beacon Lighting and
has been Chief Executive Officer since July 2013.
Recommendation 2.1 of the ASX Corporate Governance
Principles and Recommendations recommends that the
Board establishes a nomination committee and that the
committee have at least three members, a majority of whom
are independent and be chaired by an independent Director.
The Remuneration and Nominations Committee has four
members. Three are independent: Eric Barr and Neil Osborne,
as independent Directors and Andrew Hanson as an external
consultant. Ian Robinson, Executive Chairman, is the other
member.
6
BEACON LIGHTING GROUP ANNUAL REPORT 2019 The Committee is chaired by Eric Barr.
given the Group's present circumstances.
A copy of the Remuneration and Nomination Committee
Charter is available on the Group’s website.
PRINCIPLE 3
In relation to nominations, the Remuneration and Nomination
Committee is responsible for:
• Assessing current and future Director skills and experiences
and identifying suitable candidates for succession.
• Annually enquiring of the Executive Chairman and the Chief
Executive Officer their processes for evaluating their direct
reports.
An internal process of evaluation is undertaken annually on
the performance, skills and knowledge of the Board and its
committees, utilising a board skills matrix. The review provides
comfort to the Board that its structure and performance is
effective and appropriate to Beacon Lighting and that the
Board has the range of skills, knowledge and experience to
direct the Group.
The Board skills matrix sets out the requisite skills, expertise,
experience and other desirable attributes for the Board. The
following attributes have been identified which Beacon seeks to
achieve across its Board membership: other Board experience,
retail industry experience, financial management experience
and governance experience.
The Directors have been selected for their relevant expertise
and experience. They bring to the Board a variety of skills
and experience, including industry and business knowledge,
financial management, accounting, operational and corporate
governance experience. The annual report includes details of
the Directors, including their specific experience, expertise and
term of office.
To enable performance of their duties, all Directors:
• Are provided with appropriate information in a timely manner
and can request additional information at any time;
• Have access to the Company Secretary;
• Have access
to appropriate continuing professional
development opportunities; and
• Are able to seek independent professional advice at the
Group’s expense in certain circumstances.
the ASX Corporate
Recommendations 2.4 and 2.5 of
Governance Principles and Recommendations recommends
that the Board comprise a majority of Directors who are
independent, and that the Chairperson should be an
independent Director. The Board, as currently composed,
does not comply with these recommendations. The Board
considers that the composition of the Board is appropriate
Act Ethically and Responsibly
The Group has adopted a written Code of Conduct which
applies to the Directors and all associates employed by
the Group, including senior management. The objective of
this Code is to ensure that high standards of corporate and
individual behavior are observed by all associates in the context
of their employment.
In summary, the Code requires associates to always act:
• In a professional, fair and ethical manner, in accordance with
Group values.
• In accordance with applicable legislation and regulations,
and internal policies and procedures.
• In a manner that protects the Group interests, reputation,
property and resources.
The Code also reminds associates of their responsibility to
raise any concerns in relation to suspected or actual breaches
of the Code.
Beacon Lighting has in place a policy concerning trading in
Beacon Lighting Group securities. The Securities Trading
policy includes detailed requirements for Directors, Officers
and senior management regarding when they can trade
Beacon Lighting securities.
PRINCIPLE 4
Safeguard Integrity in Corporate Reporting
Principle 4.1 of the ASX Corporate Governance Principals and
Recommendations, recommends that the Audit Committee
consist only of Non-Executive Directors and consists of a
majority of independent Directors. The Audit Committee
these
as currently composed does not comply with
recommendations. Beacon Lighting has an Audit Committee
comprising of four members, three of whom are considered
independent. The Audit Committee presently comprises Neil
Osborne (Chairman), Eric Barr, Glen Robinson (Directors) and
Andrew Hanson (external consultant). Two of the four members
of the committee are Non-Executive Directors and have
experience in, and knowledge of, the industry in which Beacon
Lighting operates. Neil Osborne, Eric Barr and Andrew Hanson
each have accounting qualifications.
The details of the number of Audit Committee meetings held
and attended are included in the Directors’ Report. Minutes
are taken at each Audit Committee meeting, with the minutes
tabled in the following full Board meeting.
CORPORATE GOVERNANCE STATEMENT
7
The Audit Committee has adopted a formal charter which
outlines its role in assisting the Board in the Group’s governance
and exercising of due care, diligence and skill in relation to:
• Reporting of financial information;
• The application of accounting policies;
• Financial risk management;
• The Group’s internal control system; and
• Its relationship with the external auditor.
In accordance with Recommendation 4.2 the Board, before
it approves the Group's statements for a financial period,
ensures that it receives from its Chief Executive Officer and
Chief Financial Officer a declaration that, in their opinion, the
financial records of the Group have been properly maintained
and that the financial statements comply with the appropriate
accounting standards and give a true and fair view of the
financial position and performance of the entity and that the
opinion has been formed on the basis of a sound system of risk
management and internal control which is operating effectively.
In accordance with Principle 4.3, the Group’s external auditor
attends each annual general meeting and is available to answer
shareholder questions about the audit.
PRINCIPLE 5
Make Timely and Balanced Disclosure
Principle 5.1 of the ASX Corporate Governance Principles
and Recommendations recommends that companies should
establish a written policy designed to ensure compliance
with ASX Listing Rule disclosure requirements and to ensure
accountability at a senior management level for that compliance
and disclose that policy or a summary of it. The Group has
adopted a Continuous Disclosure Policy. This Policy sets out the
standards, protocols and the detailed requirements expected
of all Directors, Officers, senior management and associates
of the Group for ensuring the Group immediately discloses all
price-sensitive information in compliance with the Listing Rules
and Corporations Act relating to continuous disclosure.
PRINCIPLE 6
Respect the Rights of Security Holders
The Group has adopted a Communications Policy governing
its approach to communicating with its shareholders, market
participants, customers, associates and other stakeholders.
This policy specifically includes:
• The approach to briefing institutional investors, brokers and
analysts.
• The approach to communications with investors whether by
meetings, via the Group’s websites, electronically or by any
other means.
Beacon Lighting provides a printed copy of its annual report
to all requesting shareholders. The annual report contains
relevant information about the Group’s operations during the
year, changes in the state of affairs and, other disclosures
required by the Corporations Act and Accounting Standards.
The half year report contains summarised financial information
and a review of Beacon Lighting operations during the period.
The Beacon Lighting Corporate website provides all
shareholders and the public access to our announcements to
the ASX, and general information about Beacon Lighting and
its business. It also includes a section specifically dedicated
to governance, which includes links to the Company's
Constitution, Code of Conduct and its various corporate
governance charters and policies.
The format of general meetings aims to encourage shareholders
to actively participate in the meeting through being invited to
comment, or raise questions of Directors on any matter relevant
to the performance and operation of the Group.
PRINCIPLE 7
Recognise and Manage Risk
Principle 7.1 of the ASX Corporate Governance Principles and
Recommendations recommends that a listed company either
have a committee to oversee risk or otherwise disclose the
processes it employs to for overseeing the Company's risk
management framework.
The Board does not currently have a committee to oversee
risk. Instead, the Board Charter specifically includes risk
management responsibilities (rather than these being delegated
to a separate Risk Committee).
The Board evaluates all risks to the Group on an annual basis.
The risk matrix is then reviewed at regular intervals throughout
the year to ensure that the Group is not being exposed to any
new risks and that all existing risks are being monitored and
managed effectively.
The Board retains oversight responsibility for assessing the
effectiveness of the Group’s systems for the management of
material business risks. The Board reviews the Group's risk
management on an annual basis to ensure it continues to be
sound.
The Board does not consider a separate internal audit function
is necessary at this stage. One of the Audit Committee
responsibilities is to evaluate compliance with the Group’s risk
management and internal control processes.
The Board has received written assurances from management
as to the effectiveness of the Group’s management of its
material business risks.
8
BEACON LIGHTING GROUP ANNUAL REPORT 2019 The Chief Executive Officer and Chief Financial Officer provide
a written assurance in the form of a declaration in respect
of each relevant financial period that, in their opinion, the
declaration is founded on a sound system of risk management
and internal control and that the system is operating effectively
in all material respects in relation to financial reporting risks.
Principle 7.4 of the ASX Corporate Governance Principles
and Recommendations requires the Group to disclose details
about whether it has any material exposure to economic,
environmental and social sustainability risks (if any). The Group
has considered the following risks and has risk mitigation
strategies in place.
Economic Risks include impacts to consumers’ willingness to
spend on discretionary retail and lighting products in particular.
The Group mitigates the risk through the constant monitoring
of the macro-economic environment and adjusting capital
expenditure, new projects and operating expenses accordingly.
Consumer sentiment was lower in 2019 which affected general
retail demand, housing activity was also subdued which
resulted in lower consumer sentiment towards discretionary
expenditure for the Group.
Exchange Rate Volatility can impact upon the Group’s
ability to grow margins. The Group can also lock in a forward
position for this foreign exchange exposure for a period of up
to 12 months. The Board believes this mitigates the Group’s
exchange rate volatility risk to an acceptable level.
Environmental Sustainability Risks include impacts on
the Group’s supply chain from suppliers through to stores.
These risks can be reputational, regulatory and financial. The
Boards assesses its primary exposure to be in the production
of its products. The Group through its supply chain operates
responsibly within the community and expects the same from
its suppliers.
Social Sustainability Risks include workplace health and
safety as well as personnel management and corporate
conduct. The Group has an extensive workplace health and
safety policy incorporating the early identification and correction
of potential risks, both in store and at the support offices. The
Board is informed of all incidents and material potential risks at
each Board meeting and the appropriate action taken.
impact
Corporate Conduct Risks could
regulatory,
reputational and financial performance. It includes stock loss
and theft. The Group has a dedicated store operations team
to regularly monitor and assess store related risks. The Group
undertakes regular inventory counts and analysis of store
performance to reduce the risk of material loss.
PRINCIPLE 8
Remunerate Fairly and Responsibly
the
that
recommends
Principle 8.1 of the Corporate Governance Principles and
remuneration
Recommendations,
committee should comprise a majority of independent Directors.
The Remuneration and Nomination Committee as currently
composed does not comply with this recommendation. The
Remuneration and Nomination Committee has four members.
Three are independent: Eric Barr and Neil Osborne, as
independent Directors, and Andrew Hanson as an external
consultant. Ian Robinson, Executive Chairman, is the other
member. The Committee is chaired by Eric Barr.
In relation to remuneration, the Remuneration and Nomination
Committee is responsible for:
• Ensuring the Group has remuneration policies and practices
appropriate to attracting and retaining key talent.
• Reviewing and making recommendations in relation to the
remuneration of Directors and senior management.
• Reviewing and recommending the design of any executive
incentive plans and approving the proposed awards to each
executive under those plans.
its Charter, the Remuneration and
In accordance with
Nomination Committee clearly distinguishes the structure of
Non-Executive Directors’ remuneration from that of Executive
Directors and senior executives.
Details of Directors’ and executives’ remuneration, including
the principles used to determine the nature and amount of
remuneration, are disclosed in the remuneration report section
of the annual report.
The Group's Securities Trading Policy expressly prohibits
relevant participants from entering into arrangements that
limit the economic risk of participating in the Group's incentive
schemes prior to the relevant securities becoming fully vested.
9
10
Directors' Report
The Directors of Beacon Lighting Group Limited (the ‘Group’) present their
report together with the Consolidated Financial Statements of the Group and
its controlled entities (the ‘Consolidated Entity’) for the 53 weeks ended 30
June 2019.
1. DIRECTORS
4. OPERATING AND FINANCIAL REVIEW
The Directors of the Group during the whole financial period
and up to the date of the report were:
Ian Robinson
Executive Chairman
Chairman of the Board, Member of the Remuneration and
Nomination Committee.
Glen Robinson
Chief Executive Officer
Member of the Audit Committee.
Eric Barr
Non-Executive Director
Deputy Chairman of the Board, Chairman of the Remuneration
and Nomination Committee and Member of the Audit
Committee.
Neil Osborne
Non-Executive Director
Chairman of the Audit Committee and Member of the
Remuneration and Nomination Committee.
Details of the expertise and experience of the Directors are
outlined on page 4 of this annual report.
2. PRINCIPAL ACTIVITIES
4.1. Overview of Operations
Beacon Lighting is Australia’s leading lighting retailer and also
an emerging supplier of lighting and energy efficient products
to the commercial industry throughout Australia and other
international markets. As a vertically integrated business,
Beacon Lighting designs, develops, sources,
imports,
distributes, merchandises, promotes and sells its own product
range to meet the demands of its retail and commercial
customers. More than 95% of the lighting and fan products
sold by the Beacon Lighting Group are supplied through the
Beacon Lighting supply chain with approximately 85% of the
products are exclusively branded.
At the end of FY2019, Beacon Lighting operated the following
trading businesses:
• 109 Beacon Lighting company stores
• 4 Beacon Lighting franchised stores
• 5 Commercial sales offices
• Beacon International Hong Kong, Germany, USA and China
• Light Source Solutions Globes Australia and New Zealand
During the financial period the principal continuing activities
of the Group consisted of the selling of light fittings, globes,
ceiling fans and energy efficient products in the Australian
market.
• Light Source Solutions Roadway
• Masson For Light
• Beacon Lighting Wholesale
3. RESULTS
The consolidated profit for the year attributable to the members
of Beacon Lighting Group Limited was:
CONSOLIDATED ENTITY
Actual
FY2019
$’000
Actual
FY2018
$’000
Profit before Income Tax
23,118
27,705
Income Tax Expense
7,074
8,115
Operating profit after tax
attributable to the members of
Beacon Lighting Group Limited
16,044
19,590
During FY2019, Beacon Lighting continued to invest in the
growth of the Group. These investments included:
• The opening of five new company stores at Warrnambool
(VIC), Mackay (QLD), Moore Park (NSW), Modbury (SA) and
Craigieburn (VIC).
• The Underwood (QLD) and Albury (NSW) franchised stores
were purchased and converted to company stores.
• The purchase of the ex-Masters site in Parkinson (QLD) and
then transformed it into a Distribution Centre to service the
QLD and NSW markets.
• Designed, developed and released 600 new products for
Beacon Lighting stores.
12
BEACON LIGHTING GROUP ANNUAL REPORT 2019 4.2. Financial Summary
4.2.1. Financial Performance
A summary of the Beacon Lighting Group FY2019 statutory result compared to the FY2018 statutory result is presented in the
following table:
Consolidated Entity
Sales
Gross Profit
Other Income
Operating Expenses (1)
EBITDA
EBIT
Net Profit After Tax
Statutory
FY2018
$’000
235,964
155,065
1,819
(123,712)
33,172
29,308
19,590
Statutory
FY2019
$’000
246,304
157,711
1,655
(129,768)
29,598
25,088
16,044
Change
Change
10,340
2,646
(164)
(6,056)
(3,574)
(4,220)
(3,546)
4.4%
1.7%
(9.0%)
4.9%
(10.8%)
(14.4%)
(18.1%)
(1) Operating Expenses excludes interest, depreciation and amortisation
It is difficult to compare the FY2019 statutory result to the FY2018 statutory result because the FY2019 statutory result had 53 weeks
and the FY2018 statutory result had 52 weeks. Additionally, there were also one-off set up costs associated with the establishment of
the Parkinson (QLD) Distribution Centre. A reconciliation of the FY2019 statutory result to the FY2019 underlying result is presented
in the following table:
Consolidated Entity
Sales
Gross Profit
Other Income
Operating Expenses (4)
EBITDA
EBIT
Net Profit After Tax
Statutory
FY2019
$’000
246,304
157,711
1,655
(129,768)
29,598
25,088
16,044
Less
53rd week(1)
$’000
Less
Parkinson DC (2)
$’000
Underlying
FY2019 (3)
$’000
4,520
2,966
25
(2,522)
469
375
241
-
-
-
(605)
(605)
(605)
(424)
241,784
154,745
1,630
(126,641)
29,734
25,318
16,227
(1) Eliminating 53rd week in FY2019 based on the alignment to the retail marketing program to FY2018
(2) Eliminating one off non recurring costs associated with the establishment of the new Parkinson (QLD) Distribution Centre
(3) FY2019 52 Week Proforma result to be used as comparison to the FY2018 Statutory Result
(4) Operating Expenses excludes interest, depreciation and amortisation
DIRECTORS’ REPORT
13
4.2.2. Sales
Beacon Lighting achieved a sales result of $246.3 million in
FY2019. The best sales increases were achieved by the
Online Sales Channels, Beacon International, Beacon Energy
Solutions, Light Source Solutions Roadway and Masson
For Light. Company Store sales and Commercial sales were
disappointing with Company comparative sales declining by
2.3% in FY2019 on a 52 week comparable basis.
4.2.3. Gross Profit Margin
The gross profit margin was 64.0% for FY2019 compared to
the gross profit margin of 65.7% for FY2018. The decline in
the margin was a result of the change in the margin mix of
the Beacon Lighting Group and the decline in the AUD/USD
exchange rate.
4.2.4. Other Income & Other Revenue
Other income was $1.6 million in FY2019. Other income
received from franchised stores continues to decline as
franchised stores are purchased and converted to company
operated stores.
4.2.5. Operating Expenses
Operating Expenses were $129.8 million in FY2019. As a
percentage of sales, Operating Expenses were 52.7% for
FY2019. With the continued investment in new stores and the
emerging businesses, the Selling and Distribution Expenses
increased as a percentage of sales in FY2019. Expense
productivity
for Marketing
Expenses and General and Administration Expenses.
improvements were achieved
4.2.6. Earnings
The Beacon Lighting Group Earnings Before Interest, Tax,
Depreciation and Amortisation (EBITDA) was $29.6 million
in FY2019. As a percentage of sales, the EBITDA margin of
12.0% in FY2019 decreased from the EBITDA margin of 14.1%
in FY2018. The Net Profit After Tax (NPAT) result decreased
to $16.0 million or 6.5% of sales from a NPAT result of $19.6
million or 8.3% of sales in FY2018.
4.2.7. Dividends
The Directors of Beacon Lighting have declared an annual fully
franked divided of 4.55 cents per share for FY2019. For H1
FY2019, the Directors declared a fully franked dividend of 2.55
cents per share and for H2 FY2019, the Directors declared a
fully franked dividend of 2.50 cents per share. Going forward,
it is expected that the Beacon Lighting Group will target an
annual NPAT dividend payout ratio of between 50% and 60%.
4.2.8. Financial Position
In FY2019, the Beacon Lighting Group made the first property
acquisition for the Group with the purchase of the ex-Masters
site in Parkinson (QLD). This facility has been converted into
a distribution centre to service the QLD and NSW markets.
The purchase price of the property was $11.8 million plus
purchasing on costs and was funded by additional finance
from the ANZ Bank.
In FY2019, the Beacon Lighting Group has increased the
investment in inventory by $6.3 million, particularly to support
the growth opportunities of the emerging businesses. Trade
receivables have increased by $2.2 million, also reflecting
the growth in sales of the emerging businesses. Excluding
the land and building investment associated with Parkinson
(QLD) Distribution Centre, the Group has increased capital
expenditure by $5.0 million in FY2019.
Beyond the new finance associated with the Parkinson (QLD)
Distribution Centre and additional inventory finance, the
additional investments in FY2019 have been funded by retained
earnings which has been supported by the Beacon Lighting
Group dividend reinvestment program. In FY2019, the Beacon
Lighting Group continued to operate comfortably within all of
its bank covenants.
4.3. Business Strategies
Beacon Lighting continues to strengthen its market position
as Australia’s leading specialist retailer of light fittings, ceiling
fans and light globes. The Group has also continued to expand
in the wholesale / commercial lighting industry with growth in
the Beacon Lighting Commercial, Beacon International, Light
Source Solutions (Globes and Roadway), Beacon Energy
Solutions and the Masson For Light businesses.
Beacon Lighting intends to drive sales and profit growth
through a number of different business strategies.
4.3.1. Brand and Customer
Beacon Lighting will continue to enhance the brand and the
customer experience in order to increase differentiation and
drive incremental sales. Beacon Lighting continues to design,
develop and release uniquely branded products with a core
range of more than 3,000 products. With over 300 Accredited
Lighting Design Consultants across the store network and 28
Premium Lighting Design Studios, Beacon Lighting are able
to offer a unique customer service experience. Our VIP and
Trade Club customers also enjoy additional offers and benefits.
A fan installation service is also available to our customers.
The 113 retail stores and online web presence provides an
omni-channel offering making it easy for customers to shop at
Beacon Lighting any time.
4.3.2. Store Optimisation
Beacon Lighting will target the growth of sales and profits
through the optimisation of the existing store network. Since
FY2014, Beacon Lighting has opened 31 new company stores
which are yet to reach full maturity and consequently increased
sales growth from these stores. The Group closed the Subiaco
(WA) store and expects to maintain the majority of those sales
through other stores within the state. Ongoing operational
refinements including the marketing plans, roster management,
merchandise changes and refurbishments all provide the store
network with further optimisation opportunities.
4.3.3. New Store Rollout
Beacon Lighting plans to open new company stores in
Australia each year. In FY2019, Beacon Lighting opened five
new company stores and closed one store. Currently with
113 Beacon Lighting stores and with the Store Network Plan
from August 2018 identifying 175 store opportunities, Beacon
Lighting still has the opportunity for the planned store roll out
for a number of years to come.
14
BEACON LIGHTING GROUP ANNUAL REPORT 2019 4.3.4. New Product Ranges
and how they are managed are set out below.
Beacon Lighting will offer an extensive range of the latest
fashion, on trend, technologically advanced and energy efficient
products to our customers. With the introduction of more than
600 new products in FY2019, Beacon Lighting aims to refresh
its core product range in all stores each year, complemented by
the online range extension. The continuing demand for greater
energy efficiency, along with the growth of internet enabled
smart lighting, continues to represent additional opportunities
for the Beacon Lighting Group.
4.3.5. Online and Social Media Presence
Beacon Lighting will continue to enhance our online and
social media presence in order to drive incremental sales. The
introduction of store stock on hand balances on the website
plus the splitting of online orders based on stock availability has
enhanced our customer online experience. A variety of online
and social media channels continue to offer significant growth
opportunities for the Group which are closely aligned to the 113
Beacon Lighting stores. Beacon Lighting continues to nurture
strong relationships with social influencers who engage and
endorse Beacon Lighting.
4.3.6. Emerging Businesses
Beacon Lighting will continue to target the growth of sales
and profits of the emerging businesses. Beacon International,
Light Source Solutions (Globes and Roadway), Beacon Energy
Solutions and Masson For Lights continue to offer significant
growth opportunities for the Group, including synergies with the
retail businesses and to strengthen the market opportunities for
the Beacon Lighting brand within Australia and internationally.
4.3.7. New Business Opportunities
investigate and pursue
Beacon Lighting will
local and
international business opportunities that complement the core
business activities of the Group. During FY2019, the Beacon
Lighting Group purchased the Underwood (QLD) and Albury
(NSW) franchised stores and converted them into company
stores. New business opportunities may include other lighting
stores, franchised stores, wholesaling and other opportunities.
4.3.8. Efficiency Gains
Beacon Lighting will continue to target expense efficiency gains
and manage the growth of expenses. However, the Group still
plans to invest in the opening of new stores and emerging
businesses. The Beacon Lighting Group has installed solar
systems on 50 Beacon Lighting locations and continue with a
cost-conscious approach to operating expenses.
4.4 Business Risks
Beacon Lighting is subject to both specific risks to the Group
and risks of a general nature which may threaten both the
current and future operating and financial performance of the
Group and the outcome of an investment in Beacon Lighting. A
number of the Group risks are beyond the control and influence
of the Directors and management of Beacon Lighting, but the
Group has in place mitigation strategies to manage the impact
of the risks should those risks occur.
The specific material business risks faced by Beacon Lighting
4.4.1. Retail Environment and General Economic
Conditions
The Beacon Lighting Group is sensitive to the current state and
future changes in the retail environment and general economic
conditions. This includes but is not limited to interest rates,
consumer confidence, business confidence, property prices,
housing churn, dwelling approvals, government policy and
natural disasters. Beacon Lighting plans to manage the Group
according to the current environment and maintain a capital
structure capable of supporting the Group in any anticipated
operating environment.
4.4.2. Foreign Currency Rates
The majority of goods purchased and imported by Beacon
Lighting into Australia are purchased in US dollars. As a result,
the Group is exposed to fluctuations in the AUD/USD exchange
rate. Beacon Lighting mitigates this risk by adjusting prices,
releasing new products, negotiating with manufactures and
carrying all domestic stock in Australia in AUD and by using FX
forward contracts to secure future FX positions.
4.4.3. Growth Strategies
Beacon Lighting has a number of different growth strategies
to generate future growth and earnings. There is no guarantee
that the planned benefits of these strategies will be realised.
Beacon Lighting will continue to invest in and support growth
strategies that can continue to increase Group value in the long
term. If these opportunities do not have this capability, then
resources will be reallocated to other strategies.
4.4.4. Operating Expenses
As the Beacon Lighting Group continues to grow, the Group’s
operating expenses continue to increase. The Group’s ability to
maintain and improve profitability is based on the economies of
scale of the operation, reasonable stock turns and maintaining
a suitable cost structure.
4.4.5. Competition
Beacon Lighting operates in a competitive retail market which
is subject to moderate barriers to entry, changing competitor
tactics and consumer preferences. Beacon Lighting believes
that with its vertically integrated business model and its business
strategies, the Group remains well positioned to maintain
its leading retail market position and emerging commercial
position in Australia and other international markets.
4.4.6. Management Systems
The Beacon Lighting Group has a number of management
systems which are critical to the ongoing operations of
the Group. It is critical that these management systems
are secure and fit for purpose. The Group needs to ensure
that there are appropriate security and disaster recovery
capabilities are in place to ensure the ongoing operations of
our management systems.
DIRECTORS’ REPORT
15
5. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
During the financial year there were no significant changes in the state of the affairs of the Group.
6. DIRECTORS’ MEETINGS
The numbers of meetings of the Group’s Board of Directors held during the financial period ended 30 June 2019, and the numbers of
meetings attended by each Director were:
DIRECTOR’S
MEETINGS
COMMITTEE MEETINGS
AUDIT
REMUNERATION
& NOMINATION
DIRECTOR
I Robinson
G Robinson
E Barr
N Osborne
H
11
11
11
11
A
11
11
11
11
H
-
4
4
4
A
-
4
4
4
H
4
-
4
4
A
4
-
4
4
H = Number of meetings held during the time the Director held office or was a member of the committee during the period.
A = Number of meetings attended.
7. DIRECTORS’ INTERESTS IN SHARES
The relevant interest of each Director in the Company, as notified by the Directors to the ASX in accordance with section 205G(l) of the
Corporations Act 2001 (Cth), at the date of the report is as follows:
Director
I Robinson (1)
G Robinson (1)
E Barr
N Osborne
Ordinary Shares in the Company
121,054,088
121,054,088
200,000
300,000
(1) Heystead Nominees and other Robinson Family member interests
8. DIRECTORS’ INTERESTS IN CONTRACTS
Directors’ interests in contracts are disclosed in Note 32 of the financial statements.
9. DIVIDENDS
Dividends paid to members during the financial period were as follows:
Consolidated Entity
Actual FY2019
$'000
Actual FY2018
$'000
Fully franked dividends provided or paid during the period
10,986
10,577
16
BEACON LIGHTING GROUP ANNUAL REPORT 2019 10. INSURANCE OF OFFICERS
12. PROCEEDINGS ON BEHALF OF THE
10.1. Indemnification of Directors
COMPANY
The Group has indemnified each Director and external
consultant referred to in this Report, the Company Secretary
and previous Directors and Officers against all liabilities or
loss (other than to the Group or a related body corporate) that
may arise from their position as Officers of the Group and
its controlled entities, except where the liability arises out of
conduct involving a lack of good faith or where indemnification
is otherwise not permitted under the Corporations Act. The
indemnity stipulates that the Group will meet the full amount
of any such liabilities, including costs and expenses, and
covers a period of seven years after ceasing to be an Officer
of the Group. The indemnity is contained in a Deed of Access,
Insurance and Indemnity, which also gives each officer access
to the Group’s books and records.
The Group has also indemnified the current and previous
Directors of its controlled entities and certain members of the
Company’s senior management for all liabilities or loss (other
than to the Group or a related body corporate) that may arise
from their position, except where the liability arises out of
conduct involving a lack of good faith or where indemnification
is otherwise not permitted under the Corporations Act.
10.2. Insurance Premiums
During the financial period, Beacon Lighting Group Limited
paid a premium of $139,500 to insure the Directors and Officers
of the Group against any loss which he/she becomes legally
obligated to pay on account of any claim first made against
him/her during the policy period.
No person has applied to the Court under section 237 of the
Corporations Act 2001 for leave to bring proceedings on behalf
of the company, or to intervene in any proceedings to which the
Company is a party, for the purpose of taking responsibility on
behalf of the Group for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf
of the Group with leave of the Court under section 237 of the
Corporations Act 2001 (Cth).
13. EVENTS SUBSEQUENT TO REPORTING
DATE
In July 2019 the Group entered into an agreement to purchase a
property for the value of $1,580,000 located in Epping, Victoria
for Masson Manufacturing.
In July 2019 both the Sunshine (Vic) and Mandurah (WA) stores
were closed.
In September 2019 the Group will be purchasing the Myaree
(WA) franchisee store.
A fully franked dividend of $4,384,299 was declared on 19
August, 2019.
Other than the above, there has been no other matter or
circumstance that has occurred subsequent to period end
that has significantly affected, or may significantly affect, the
operations of the Group, the results of those operations or the
state of affairs of the Group or economic entity in subsequent
financial periods.
11. INDEMNITY OF AUDITORS
14. AUDIT SERVICES
Beacon Lighting Group Limited has agreed to indemnify
their auditors, PricewaterhouseCoopers (PwC), to the extent
permitted by law, against any claim by a third party arising from
Beacon Lighting Group Limited’s breach of their agreement.
The indemnity stipulates that Beacon Lighting Group Limited
will meet the full amount of any such liabilities including a
reasonable amount of legal costs.
14.1. Auditor’s Independence Declaration
The auditor’s independence declaration to the Directors of
the Consolidated Entity in relation to the auditor’s compliance
with the independence requirements of the Corporations Act
2001 (Cth) and the professional code of conduct for external
auditors, forms part of the Directors’ Report.
No person who was an officer of the Consolidated Entity during
the financial year was a Director or Partner of the Consolidated
Entity’s external auditor.
DIRECTORS’ REPORT
17
14.2. Audit and Non-Audit Services Provided by the External Auditor
During the 53 weeks ended 30 June 2019, the following fees were paid or were due and payable for services provided by the external
auditor, PwC, of the Consolidated Entity:
Consolidated Entity
Audit & Assurance Services
Audit & review of financial statements
Other assurance services
Other Services
Tax compliance services
Other Services
Total Remuneration of PwC
FY2019
$
236,900
-
22,390
10,000
269,290
FY2018
$
222,100
69,580
28,235
49,489
369,404
In addition to their statutory audit duties, PwC provided taxation
and other assurance related services to the Group.
The Board has a review process in relation to non-audit services
provided by the external auditor. The Board considered the
non-audit services provided by PwC and, in accordance with
written advice provided, and endorsed, by a resolution of the
Audit Committee, is satisfied that the provision of these non-
audit services by the auditor is compatible with, and does not
compromise, the auditor independence requirements of the
Corporations Act 2001 (Cth) for the following reasons:
• All non-audit services are subject to the corporate governance
procedures adopted by the Group and are reviewed by the
Audit Committee to ensure they do not impact the integrity
and objectivity of the auditor.
• Non-audit services provided do not undermine the general
principles relating to auditor independence as set out in
APES 110 Code of Ethics for Professional Accountants, as
they do not involve reviewing or auditing the auditor’s own
work, aiding in a management or decision making capacity
for the Group, acting as an advocate for the Company or
jointly sharing risks and rewards with the Group.
15. AUDITOR
PricewaterhouseCoopers continues in office in accordance
with section 327 of the Corporations Act 2001 (Cth).
16. ROUNDING OF AMOUNTS
The Group has relied on the relief provided by ASIC Corporations
Instrument 2016/191, and in accordance with that Instrument,
amounts in the financial statements have been rounded off
to the nearest thousand dollars, or in certain cases, to the
nearest dollar.
17. REMUNERATION REPORT
17.1. Remuneration Policy and Link to Performance
The Board recognises that the performance of the Group
depends on the quality and motivation of our Associates,
including the senior management and our more than 1,000
Associates employed by the Group across Australia and
Internationally. The Group remuneration strategy therefore
seeks to appropriately attract, reward and retain Associates at
all levels in the business, but in particular for management and
key executives. The Board aims to achieve this by establishing
executive remuneration packages that include a mix of fixed
remuneration and short term incentives.
The Board has appointed the Remuneration and Nomination
Committee whose objective is to assist the Board in relation
to the Group remuneration strategy, policies and actions.
In performing this responsibility, the Committee must give
appropriate consideration to the Group’s performance and
objectives, employment conditions and external remuneration
relativities. The Committee reviews and determines our
remuneration policy and structure annually to ensure it remains
aligned to business needs and meets the Group’s remuneration
principles. No specific advice or recommendations were
sought from remuneration consultants during the 53 weeks
ended 30 June 2019.
The remuneration framework for senior executives comprises
a mix of both fixed and variable remuneration components.
Variable remuneration may be delivered in the form of cash and
performance rights or options, subject to the achievement of
short term performance targets. An outline of the remuneration
framework is set out on page 19.
18
BEACON LIGHTING GROUP ANNUAL REPORT 2019 Remuneration Framework
Element
Purpose
Performance
Metrics
Potential Value
Changes
for FY2019
Link to Performance
Fixed
Remuneration
Nil
Provide competitive
market salary
including
superannuation
and non-monetary
benefits
Positioned at
competitive
market rates
No change
Consolidated Group as well
as individual performance
are considered during
the annual review of fixed
remuneration
Short Term
Incentive (Cash
Bonus)
Reward for in year
performance
Budgeted
Earnings
before Interest
& Tax (EBIT)
200% of the
executives on
target cash
bonus
No change
EBIT measures as
determined by the Board
Short Term
Incentive
(Performance
Rights or Options)
Reward for in year
performance
Budgeted
Earnings
before Interest
& Tax (EBIT)
125% of the
executives on
target cash
bonus
No change
Grants are subject to
achieving budgeted
performance and vesting
is subject to the executive
remaining employed by the
Group at the vesting date
Remuneration Approach
The proportion of fixed and variable remuneration is established for Key Management Personnel (KMP) by the Board following
recommendations from the Remuneration and Nomination Committee which are subject to Board approval. For FY2019 these are:
Fixed
Remuneration
%
Short Term
Incentive (Cash
Bonus) %
Short Term Incentive
(Performance Rights or
Options) %
Total %
Executive Chairman
Chief Executive Officer
Managing Director – Sales
Chief Financial Officer
Chief Operating Officer
100.0%
80.2%
86.8%
86.2%
85.2%
0.0%
0.0%
0.0%
0.0%
0.0%
0.0%
100.0%
19.8%
100.0%
13.2%
100.0%
13.8%
100.0%
14.8%
100.0%
19
DIRECTORS’ REPORT
The Group’s Earnings Before Interest and Tax (EBIT) result has
been determined as the appropriate financial performance
target to trigger the payment of cash incentives for each period.
The amount of any short term cash incentive paid in a year is
dependent upon the level of performance achieved against the
Group’s EBIT budget for the year. The Board considers EBIT
to be an appropriate performance measure as it aligns the
Group’s remuneration philosophy with creating value, and is
within the scope of influence of participants.
Structure of Short Term Cash Incentive Plan
Feature
Description
Maximum
Opportunity
200% of on target cash bonus
value
Performance Metric
Budgeted EBIT
Delivery of STI
Board Discretion
100% of STI award is paid
in cash after the financial
results have been audited and
approved by the Board
The Board has discretion to
adjust remuneration outcomes
up or down to prevent any
inappropriate reward outcomes,
including reducing down to zero
if appropriate
17.2 Principles Used to Determine the Nature and
Amount of Remuneration
(a) Directors’ Fees
The Executive Chairman and the Chief Executive Officer do
not receive Directors’ fees but are remunerated as executives
within the business.
The Deputy Chairman and the Non-Executive Director are
entitled to receive annual fees of $110,000 and $100,000
their relevant
respectively. These
responsibilities on the various Group Committees, and are also
inclusive of superannuation. These fees exclude any additional
fees for special services which may be determined from time to
time. No additional retirement benefits are payable.
inclusive of
fees are
The Non-Executive Director
fees are reviewed annually
to ensure that the fees reflect market rates. There are no
guaranteed annual increases in any Directors’ fees. The
Executive Chairman and Non-Executive Directors do not
participate in the short or long term incentive schemes.
(b) Executive Remuneration
The current executive salary and reward framework has three
components:
1. Fixed Remuneration.
2. Short Term Incentive (Cash Bonus).
3. Short Term Incentive (Performance Rights or Options).
The combination of
executives’ total remuneration.
these components comprises
the
For the 53 weeks ended 30 June 2019, the Group did not a
have long term incentive program in place.
1. Fixed Remuneration
Executive base salaries are structured as a part of the total
employment remuneration package which comprises the
fixed component of pay and other financial benefits being
car allowances. Fixed remuneration includes superannuation
which is paid in accordance with legislated amounts.
Fixed remuneration for executives is reviewed annually to
provide competitiveness with the market, whilst also taking into
account capability, experience, value to the organization and
performance of the individual. There are no guaranteed base
salary increases included in executive contracts. An executive’s
remuneration is also reviewed on promotion.
In FY2019 fixed remuneration was increased for the five
executives at an average of increase of 3.81%. This was done
to align remuneration with comparative roles.
2. Short Term Incentive (Cash Bonus)
Executives including the Chief Executive Officer but not the
Executive Chairman are eligible to participate in an annual short
term cash incentive which delivers rewards by way of cash
bonuses, subject to the achievement of the Group financial
performance targets.
20
BEACON LIGHTING GROUP ANNUAL REPORT 2019 3. Short Term Incentive (Performance Rights or Options).
17.3 FY2019 Performance and Impact on Remuneration
During the 53 weeks ended 30 June 2019 the Group continued
with the short term performance rights incentive plan and
the short term incentive option plan for selected senior
management. The Executive Chairman does not participate in
either plan. The Chief Executive Officer (subject to shareholder
approval) and one executive are eligible to participate in the
annual short term performance rights incentive plan, subject
to the achievement of the Group financial performance targets.
Other executives are eligible to participate in the annual short
term options incentive plan, subject to the achievement of the
Group financial performance targets. Performance rights and
options provide selected senior executives the opportunity
to acquire shares or potentially be cash settled, subject to
meeting the relevant conditions for vesting including remaining
an employee of the Group at that time, at no cost to the
senior executive. 100% of the grants are assessed by financial
measures. The financial measure used is the Group’s EBIT
result against the Group’s EBIT budget. This is tested annually.
The Board considers EBIT to be an appropriate performance
measure as it aligns the Group’s remuneration philosophy
with creating value, and is within the scope of influence of
participants.
The Board will review the nature of potential issues of
performance incentives moving forward to reflect market
practice and to reflect the principles underlying the Group's
remuneration policy.
Structure of Short Term Performance Rights and Options Incentive Plans
Feature
Description
Beacon Lighting's financial performance in FY2019 was below
that of the FY2019 budget. For the 53 weeks ended 30 June
2019, the Group's financial performance targets were not
met. The annual short term cash incentive and the short term
incentive (performance rights or options) targets were not
achieved for the financial year.
17.4 Statutory Performance Indicators
to align executive
remuneration
Beacon Lighting aims
to strategic and business objectives and the creation of
shareholder wealth. The table below shows measures of
the Group’s financial performance over the last two years as
required by the Corporations Act 2001 (Cth). However these
measures are not necessarily consistent with measures used
in determining the variable amounts of remuneration awarded
to executives. As a consequence there may not always be a
direct correlation between the statutory key performance
measures and the variable remuneration awarded.
Statutory Key Performance Indicators of the Group
Profit for the year
attributable to owners of
Beacon Lighting Group
Limited ($’000)
Basic earnings per share
(cents)
FY2019
FY2018
16,044
19,590
7.37
9.09
Maximum
Opportunity
Performance
Metric
Delivery of STI
Board
Discretion
125% of on target cash bonus value
Dividend payments ($’000)
10,986
10,577
Share Price (Year End)
1.04
1.54
Budgeted EBIT
17.5. Details of Remuneration
100% of STI performance rights and
options award vests after the financial
results have been audited and
approved by the Board if the executive
remains an employee of the Group at
that time
The Board has discretion to adjust
remuneration outcomes up or down
to prevent any inappropriate reward
outcomes, including reducing down
to zero if appropriate, subject to the
terms of the plan
following executives along with
the Directors are
The
identified as key management personnel with the authority
and responsibility for planning, directing and controlling
the activities of the Group, directly and indirectly, during the
financial year.
Ian Robinson
Executive Chairman
Glen Robinson
Chief Executive Officer
Ian Bunnett
Managing Director – Sales
David Speirs
Chief Financial Officer
Barry Martens
Chief Operating Officer
All of the above executives were employed by Beacon Lighting
and were key management personnel for the entire 53 weeks
ended 30 June 2019 and the 52 weeks ended 24 June 2018
unless otherwise stated.
21
DIRECTORS’ REPORT The details of the remuneration of the Directors and other key management personnel for the Beacon Lighting Group Limited and the
consolidated entity for the current and prior financial periods are set out in the following table:
Fixed Remuneration
Variable Remuneration
Cash Salary
& Fees
Non-
Monetary
Benefits
$
$
Post
Employment
Super
Contributions
$
Annual &
Long
Service
Leave
$
Cash
Performance
Based
Payment
$
(8,522)
109,140
46,557
519,501
Share Based
Payments
Total
$
-
-
202,539
181,959
93,939
473,871
-
-
-
-
-
-
-
-
-
-
-
110,000
110,000
100,000
100,000
93,939
886,410
17,397
(7,586)
17,397
(28,166)
20,531
20,048
9,543
9,543
-
-
2,444
-
-
-
-
47,471
(5,142)
46,988
(36,688)
109,140
46,557
911,460
20,531
25,345
-
48,207
365,711
20,049
(3,556)
51,000
24,068
353,567
20,531
20,049
9,169
3,015
-
48,207
350,132
51,000
24,068
360,488
20,531
18,602
-
48,207
324,711
20,049
(9,069)
51,000
24,068
314,222
61,593
53,116
-
144,621
1,040,554
60,147
(9,610)
153,000
72,204
1,028,277
DIRECTORS
I Robinson (Executive Chairman)
2019
2018
192,728
192,728
G Robinson (Chief Executive Officer)
2019
2018
E Barr (Non-Executive)
2019
2018
N Osborne (Non-Executive)
2019
2018
356,957
352,278
100,457
100,457
100,000
100,000
Total Remuneration Directors
2019
2018
EXECUTIVES
750,142
745,463
I Bunnett (Managing Director – Sales)
2019
2018
271,628
262,006
D Speirs (Chief Financial Officer)
2019
2018
272,225
262,356
B Martens (Chief Operating Officer)
2019
2018
237,371
228,174
Total Remuneration Executives
2019
2018
781,224
752,536
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
22
BEACON LIGHTING GROUP ANNUAL REPORT 2019
17.6. Share Based Compensation
The number of performance rights over shares in the Group granted to the Chief Executive Officer during the current financial period,
together with prior period grants which vested during the period are set out below:
Grant
Date
Quantity
Granted
Vest Date
Value at
Grant
Date $
Vest %
Quantity
Vested
Quantity
Unvested
Value
Expensed
this Year $
G Robinson
24/06/2016
22,107
28-Aug-17
43,750
100.00%
22,107
G Robinson
18/08/2016
23,603
28-Aug-17
32,100
100.00%
23,603
0
0
-
753
G Robinson
24/08/2017
39,338
13-Oct-17
53,500
66.67% 26,227
13,111
11,332
G Robinson
16/08/2018
71,333
09-Oct-18
109,140
33.34%
23,783
47,550
81,854
Total
156,381
238,490
93,939
The fair value of performance rights granted on 24 June 2016 (grant date) was $1.979, with a final vesting date of 28 August 2017.
The fair value of performance rights granted on 18 August 2016 (grant date) was $1.360, with a final vesting date of 25 August 2018. All
unvested performance rights will vest on 25 August 2018 provided the executive remains employed by the Group at the vesting date.
The fair value of performance rights granted on 24 August 2017 (grant date) was $1.360, with a final vesting date of 25 August 2020. All
unvested performance rights will vest on 25 August 2020 provided the executive remains employed by the Group at the vesting date.
The fair value of performance rights granted on 16 August 2018 (grant date) was $1.530, with a final vesting date of 16 August 2020. All
unvested performance rights will vest on 16 August 2020 provided the executive remains employed by the Group at the vesting date.
The performance rights have a zero exercise price. Subject to meeting the relevant vesting conditions, shares will be issued at no
cost to the executive. In the event an executive leaves the Group prior to the vesting date the performance rights will generally lapse.
DIRECTORS’ REPORT
23
The number of options over shares in the Group granted to the Key Management Personnel during the current financial period,
together with prior period grants which vested during the period are set out below.
Grant
Date
Quantity
Granted
Vest Date
Value at
Grant
Date $
Vest %
Quantity
Vested &
Exercisable
Quantity
Unvested
Value
Expensed
this Year $
I Bunnett
24/06/2016
31,582 Refer below
40,740
100.00%
31,582
-
797
18/08/2016
11,029 Refer below
15,000
70.00%
7,720
3,309
1,696
24/08/2017
18,382 Refer below
25,000
40.00%
7,353
11,029
7,465
16/08/2018
33,333 Refer below
51,000
33.33%
11,110
22,223
38,249
D Speirs
24/06/2016
31,582 Refer below
40,740
100.00%
31,582
-
797
18/08/2016
11,029 Refer below
15,000
70.00%
7,720
3,309
1,696
24/08/2017
18,382 Refer below
25,000
40.00%
7,353
11,029
7,465
16/08/2018
33,333 Refer below
51,000
33.33%
11,110
22,223
38,249
B Martens
24/06/2016
31,582 Refer below
40,740
100.00%
31,582
-
797
18/08/2016
11,029 Refer below
15,000
70.00%
7,720
3,309
1,696
24/08/2017
18,382 Refer below
25,000
40.00%
7,353
11,029
7,465
16/08/2018
33,333 Refer below
51,000
33.33%
11,110
22,223
38,249
Total
282,978
395,220
144,621
The fair value of options granted on 24 June 2016 (grant date) was $1.290. 40% vested on 26 June 2017, 30% vested on 25 August
2017 and 30% vest on 25 August 2018, in each case provided that the executive remains employed by the Group at the vesting date.
The options expire on 24 June 2031.
The fair value of options granted on 18 August 2016 (grant date) was $1.360. 40% vested on 18 August 2017, 30% vest on 18 August
2018 and 30% vest on 18 August 2019, in each case provided that the executive remains employed by the Group at the vesting date.
The options expire on 24 June 2031.
The fair value of options granted on 24 August 2017 (grant date) was $1.360. 40% vest on 24 August 2018, 30% vest on 24 August
2019 and 30% vest on 24 August 2020, in each case provided that the executive remains employed by the Group at the vesting date.
The options expire on 24 June 2031.
The fair value of options granted on 16 August 2018 (grant date) was $1.530. 33.33% vest on 16 August 2018, 33.33% vest on 16
August 2019 and 33.33% vest on 16 August 2020, in each case provided that the executive remains employed by the Group at the
vesting date. The options expire on 24 June 2031.
The options have a zero exercise price. Subject to meeting the relevant vesting conditions, shares will be issued at no cost to the
executive. In the event an executive leaves the Group prior to the vesting date the options will generally lapse.
24
BEACON LIGHTING GROUP ANNUAL REPORT 2018
BEACON LIGHTING GROUP ANNUAL REPORT 2019
17.7 Share Holdings
The numbers of ordinary voting shares in the Company held during the financial year by each director of Beacon Lighting Group and
other key management personnel of Beacon Lighting Group, including their personally related parties, are set out below.
Balance
at Start
of Year
Received
During
the Year(1)
Purchase
of Shares
DRP
Issue(2)
Sales of
Shares
Balance at
End of the
Year
DIRECTORS
I Robinson (Executive Chairman)(3)
2019
2018
119,584,748
-
-
1,343,584
118,659,353
10,779
41,500
873,116
G Robinson (Chief Executive Officer)
124,264
-
93,386
28,352
2019
2018
E Barr (Non-Executive)
2019
2018
N Osborne (Non-Executive)
2019
2018
EXECUTIVES
I Bunnett (Managing Director – Sales)
2019
2018
D Speirs (Chief Financial Officer)
2019
2018
B Martens (Chief Operating Officer)
200,000
150,000
300,000
300,000
63,974
63,974
76,473
73,974
68,519
68,519
2019
2018
Total
2019
2018
-
-
-
50,000
-
-
-
-
-
-
-
-
1,492
2,526
-
-
-
-
-
-
3,108
2,499
-
-
-
1,348,184
-
-
-
-
-
-
-
-
-
-
-
120,417,978
119,409,206
39,131
91,500
878,141
(1) Shares received during the year were a result of performance rights vesting under the STI plan.
(2) Shares received during the year as a result of participating in the Dividend re-investment plan.
(3) Heystead Nominees Pty Ltd and other Robinson Family member interests, excluding Glen Robinson.
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
120,928,332
119,584,748
125,756
124,264
200,000
200,000
300,000
300,000
63,974
63,974
79,581
76,473
68,519
68,519
121,766,162
120,417,978
25
DIRECTORS’ REPORT 17.8 Service Agreements
All executives are employed on terms consistent with the remuneration framework outlined in this report. Each of the relevant
executive agreements is for a continuing term but may be terminated by either party with a required notice period of 12 weeks. These
agreements do not provide for any termination payments other than payment in lieu of notice.
17.9 Voting of Shareholders at Last Year’s Annual General Meeting
Beacon Lighting Group received more than 90% of yes votes on its remuneration report for the 2018 financial year. The Company did
not receive any specific feedback at the Annual General Meeting or throughout the year on its remuneration practices.
Signed in accordance with a resolution of Directors
Ian Robinson
Executive Chairman
Melbourne,
19 August 2019
Glen Robinson
Chief Executive Officer
26
BEACON LIGHTING GROUP ANNUAL REPORT 2019 Auditor’s Independence Declaration
Index to the Financial Statements
Page
Page
Consolidated Statement of Comprehensive Income
Consolidated Balance Sheet
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
1. Summary of Significant Accounting Policies
2. Changes in Accounting Policies
3. Financial Risk Management
4. Segment Information
5. Revenue from Ordinary Activities and Other Revenue
6. Other Income
7. Expenses
8.
Income Tax Expense
9. Cash and Cash Equivalents
10. Trade and Other Receivables
11. Inventories
12. Derivative Financial Instruments
13. Other Current Assets
14. Property, Plant and Equipment
15. Deferred Tax Assets
16. Intangible Assets
17. Trade and Other Payables
29
30
31
32
33
39
40
46
47
47
48
49
50
50
52
53
54
55
56
57
58
18. Current Borrowings
19. Current Provisions
20. Current Tax Liabilities
21. Non Current Borrowings
22. Non Current Provisions
23. Contributed Equity
24. Reserves and Retained Profits
25. Dividends
26. Key Management Personnel Disclosures
27. Share Based Payments
28. Earnings Per Share
29. Remuneration of Auditors
30. Contingencies
31. Commitments
32. Related Party Transactions
33. Subsidiaries
34. Events Occurring After the Reporting Period
35. Cash Flow Information
36. Critical Accounting Estimates
37. Parent Entity Financial Information
38. Deed of Cross Guarantee
59
59
61
61
62
63
64
66
67
68
71
71
71
72
73
74
74
75
76
76
77
28
BEACON LIGHTING GROUP ANNUAL REPORT 2019
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.
Consolidated Entity
Notes
REVENUE FROM ORDINARY ACTIVITIES
Sale of goods
Other revenue
Total revenue from ordinary activities and other revenue
Other income
EXPENSES
Cost of sales of goods
Other expenses from ordinary activities
Marketing
Selling and distribution
General and administration
Finance costs
PROFIT BEFORE INCOME TAX
Income tax expense
PROFIT FOR THE PERIOD ATTRIBUTABLE TO THE MEMBERS
OF THE PARENT ENTITY
Other comprehensive income
Items that may be reclassified to profit or loss
Changes in the fair value of derivatives
Exchange differences on translation of foreign operations
Income tax relating to these items
Other comprehensive income for the period, net of tax
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
ATTRIBUTABLE TO THE MEMBERS OF THE PARENT ENTITY
EARNINGS PER SHARE
Basic earnings per share
Diluted earnings per share
5
5
5
6
7
7
8
24(a)
24(a)
28
28
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying Notes.
FY2019
$’000
246,304
1,375
247,679
280
FY2018
$’000
235,964
1,716
237,680
103
(88,592)
(80,899)
(13,738)
(104,211)
(16,329)
(1,971)
23,118
(7,074)
16,044
(1,499)
239
377
(883)
(13,722)
(97,243)
(16,611)
(1,603)
27,705
(8,115)
19,590
483
176
(198)
461
15,161
20,051
CENTS
CENTS
7.37
7.37
9.09
9.09
29
FINANCIAL STATEMENTS CONSOLIDATED BALANCE SHEET
As at 30 June 2019 and as at 24 June 2018. Beacon Lighting Group and its controlled entities.
Consolidated Entity
Notes
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Inventories
Derivative financial instruments
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Deferred tax assets
Intangible assets
Total non-current assets
Total assets
CURRENT LIABILITIES
Trade and other payables
Borrowings
Derivative financial instruments
Provisions
Current tax liabilities
Total current liabilities
Non-current liabilities
Borrowings
Provisions
Total non-current liabilities
Total liabilities
Net assets
EQUITY
Contributed equity
Other reserves
Retained earnings
Total equity
9
10
11
12
13
14
15
16
17
18
12
19
20
21
22
23
24(a)
24(b)
The above consolidated balance sheet should be read in conjunction with the accompanying Notes.
30
FY2019
$’000
18,305
12,053
68,698
-
2,277
101,333
46,009
5,834
11,646
63,489
164,822
17,848
31,480
649
7,667
658
58,302
19,459
3,881
23,340
81,642
83,180
68,229
(43,333)
58,282
83,180
FY2018
$’000
10,671
10,091
62,446
401
2,324
85,933
29,862
5,941
10,870
46,673
132,606
18,166
19,965
-
6,978
1,436
46,545
6,365
3,367
9,732
56,277
76,329
65,690
(42,587)
53,226
76,329
BEACON LIGHTING GROUP ANNUAL REPORT 2019 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.
Consolidated Entity
Notes
Contributed
Equity
$’000
Reserves
$’000
Retained
Earnings
$’000
Total
Equity
$’000
Balance as at 24 June 2018
65,690
(42,587)
53,226
76,329
Profit for the year
Other comprehensive income
24(a)
Total comprehensive income for the period
Transactions with owners in their capacity as owners:
Issue of shares to employees
Issue of shares via dividend re-investment plan
Employee share scheme
Treasury share reserve
Dividends provided for or paid
23
23
24(a)
24(a)
25
-
-
-
2,539
-
-
-
-
16,044
16,044
(883)
(883)
-
-
329
(192)
-
(883)
16,044
15,161
-
-
-
-
-
2,539
329
(192)
-
(10,986)
(10,986)
Total contributions by and distributions to owners
2,539
136
(10,986)
(8,312)
Balance as at 30 June 2019
68,229
(43,333)
58,284
83,180
Balance as at 25 June 2017
62,870
(42,965)
44,213
64,118
Profit for the year
Other comprehensive income
24(a)
Total comprehensive income for the period
Transactions with owners in their capacity as owners:
Issue of shares to employees
Issue of shares via dividend re-investment plan
Employee share scheme
Treasury share reserve
Dividends provided for or paid
23
23
24(a)
24(a)
25
-
-
-
251
2,569
-
-
-
-
461
461
-
-
(83)
-
-
19,590
19,590
-
461
19,590
20,051
-
-
-
-
251
2,569
(83)
-
(10,577)
(10,577)
Total contributions by and distributions to owners
2,820
(83)
(10,577)
(7,840)
Balance as at 24 June 2018
65,690
(42,587)
53,226
76,329
The above consolidated statement of changes in equity should be read in conjunction with the accompanying Notes.
31
FINANCIAL STATEMENTS For the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.
CONSOLIDATED STATEMENT OF CASH FLOWS
Consolidated Entity
CASH FLOWS FROM OPERATING ACTIVITIES
Notes
FY2019
$’000
FY2018
$’000
Receipts from customers (inclusive of goods and services tax)
269,876
259,833
Payments to suppliers and employees (inclusive of goods
and services tax)
(247,766)
(236,360)
Interest received
Borrowing costs
Income taxes paid
Net cash inflow from operating activities
35
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for acquisitions
Payments for property, plant and equipment
Proceeds from sale of property, plant and equipment
Net cash (outflow) from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
(Repayment)/Proceeds from borrowings (net)
Dividends paid to Company's shareholders
25
Net cash inflow / (outflow) from financing activities
Net increase / (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Cash and cash equivalents at the end of the financial year
9
The above consolidated statement of cash flows should be read in conjunction with the accompanying Notes.
45
(2,014)
(7,393)
12,748
(1,138)
(20,146)
8
(21,276)
24,609
(8,447)
16,162
7,634
10,671
18,305
43
(1,603)
(6,370)
15,543
(782)
(5,075)
6
(5,851)
(3,938)
(8,008)
(11,946)
(2,254)
12,925
10,671
32
BEACON LIGHTING GROUP ANNUAL REPORT 2019 1. Summary of Significant Accounting
Policies
The principal accounting policies adopted in the preparation
of this consolidated financial report is set out below. These
policies have been consistently applied to all the periods
presented, unless otherwise stated. The financial report is for
the consolidated entity consisting of Beacon Lighting Group
Limited and its subsidiaries.
(a) Basis of Preparation
This general purpose financial report has been prepared
in accordance with Australian Accounting Standards and
interpretations issued by the Australian Accounting Standards
Board and the Corporations Act 2001 (Cth). Beacon Lighting
Group Limited is a for-profit entity for the purpose of preparing
the financial report.
Beacon Lighting Group Limited operates within a retail financial
period. The current financial period was a 53 week retail period
ending on the 30 June 2019 (2018: 52 week period ending 24
June 2018). This treatment is consistent with section 323D of
Corporations Act 2001 (Cth).
(i) New, revised or amended accounting standards and
interpretations adopted by the group
The company has applied the following standards and
amendments for first time in their annual reporting period
commencing 25 June 2018.
• AASB 9 Financial Instruments
centres, retail stores and support office facilities. The nature
of expenses related to those leases will now change because
the Group will recognise a depreciation charge for right-of-use
assets and interest expense on lease liabilities. Previously, the
Group recognised operating lease expense on a straight-line
basis over the term of the lease, and recognised assets and
liabilities only to the extent that there was a timing difference
between actual lease payments and the expense recognised.
Based on the information currently available, the Group
estimates that it will recognise right-of-use assets within
a range of approximately $83.0 million to $85.0 million on 1
July 2019, lease liabilities within a range of $101.0 million to
$103.0 million and lease receivables within a range of $2.5
million to $3.5 million. The estimated impact was calculated
using a discount rate derived from the incremental borrowing
rate when the interest rate implicit in the lease was not readily
available. The Group does not expect the adoption of AASB
16 to impact its ability to comply with its financial covenants.
The Group plans to apply AASB 16 on 1 July 2019, using the
modified retrospective approach. Therefore, the cumulative
effect of adopting AASB 16 will be recognised as a reduction to
the opening balance of retained earnings at 1 July 2019 within
a range of $14.5 million to $16.5 million, with no restatement of
comparative information.
There are no other standards that are not yet effective and
that would be expected to have a material impact on the entity
in the current or future reporting periods and on foreseeable
future transactions.
• AASB 15 Revenue from Contracts with Customers
(iii) Compliance with IFRS
The company had to change its accounting policies following the
adoption of AASB 9 & 15, refer to Note 2 for further information.
The adoption of the new Standards and amendments did not
have any impact on the amounts recognised in prior years, did
not impact the current year and is not expected to significantly
affect future years.
(ii) Impact of Standards Issued but Not Yet Applied
by Group
The Group is required to adopt AASB 16 Leases from 1 July
2019. AASB 16 replaces existing leases guidance, including
AASB 117 Leases and related Interpretations. The Group
has assessed the estimated impact that initial application of
AASB 16 will have on its consolidated financial statements, as
described below.
introduces a single, on-balance sheet
AASB 16
lease
accounting model for lessees. A lessee recognises a right of-
use asset representing its right to use the underlying asset
and a lease liability representing its obligation to make lease
payments. There are recognition exemptions for short-term
leases and leases of low-value items. The Group will recognise
new assets and liabilities for its operating leases of distribution
The consolidated financial report of the Group also complies
with International Financial Reporting Standards as issued by
the International Accounting Standards Board.
(iv) Historical Cost Convention
This financial report has been prepared in accordance with the
historical cost convention.
(v) Critical Accounting Estimates
The preparation of financial statements requires the use
of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of
applying the Group’s accounting policies. Refer to Note 36
Critical Accounting Estimates for detailed explanation of items
requiring assumptions and estimates.
(b) Comparative Financial Information
Unless otherwise stated, the accounting policies adopted
are consistent with those of the previous year. Comparative
information is reclassified where appropriate to enhance
comparability and provide more appropriate information to
users.
33
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.NOTES TO THE FINANCIAL STATEMENTS (c) Principles of Consolidation
The consolidated financial report incorporates the assets and
liabilities of all subsidiaries of Beacon Lighting Group Limited
(‘Group’ or ‘parent entity’) as at 30 June 2019 and the results
of all subsidiaries for the period then ended. Beacon Lighting
Group Limited and its subsidiaries together are referred to in
this financial report as the Group or the consolidated entity.
Subsidiaries are all entities over which the Group has control.
The Group controls an entity when the Group 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 Group. They are deconsolidated from the date that control
ceases.
The acquisition method of accounting is used to account for
business combinations by the Group (refer to Note 1(i)).
Intercompany transactions, balances and unrealised gains
on transactions between Group companies are eliminated.
Unrealised losses are also eliminated unless the transaction
provides evidence of an impairment of the transferred asset.
Accounting policies of subsidiaries have been changed where
necessary to ensure consistency with the policies adopted by
the Group.
Where control of an entity is obtained during a financial
period, its results are included in the consolidated statement
of comprehensive income from the date on which control
commences. Where control of an entity ceases during a
financial period its results are included for that part of the
period during which control existed.
Investments in subsidiaries are accounted for at cost in
accounting records of Beacon Lighting Group Limited.
(d) Segment Reporting
Operating segments are reported in a manner consistent with
the internal reporting provided to the chief operating decision
maker. The chief operating decision maker for Beacon
Lighting Group Limited and its controlled entities (the Group),
is the Chief Executive Officer (CEO). The Group determines
operating segments based on information provided to the
CEO in assessing performance and determining the allocation
of resources within the Group. Consideration is given to the
manner in which products are sold, nature of the products
supplied, the organisational structure and the nature of
customers.
Reportable segments are based on the aggregated operating
segments determined by the manner in which products are
sold, similarity of products, nature of the products supplied,
the nature of customers, the methods used to distribute the
product and materiality. The Group purchases goods in USD
for sales into Australia. The Group’s one reportable segment is
the selling of light fittings, fans and energy efficient products.
(e) Foreign Currency Translation
(i) Functional and Presentation Currency
Items included in the financial report of each of the Group’s
entities are measured using the currency of the primary
economic environment in which the entity operates (‘the
functional currency’). The consolidated financial report is
presented in Australian dollars, which is Beacon Lighting Group
Limited’s functional and presentation currency.
(ii) Transactions and Balances
Foreign currency transactions are translated into the functional
currency using the exchange rates prevailing at the dates of the
transactions. Foreign exchange gains and losses resulting from
the settlement of such transactions and from the translation
at year end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in profit or
loss, except when they are deferred in equity as qualifying cash
flow hedges.
(iii) Specific Commitments
Hedging is undertaken in order to avoid or minimise possible
adverse financial effects of movements in exchange rates.
Gains or costs arising upon entry into a hedging transaction
intended to hedge the purchase or sale of goods and services,
together with subsequent exchange gains or losses resulting
from those transactions are deferred in the consolidated
statement of comprehensive income from the inception of the
hedging transaction up to the date of the purchase or sale
and included in the measurement of the purchase or sale. Any
gains or losses arising on the hedging transaction after the
recognition of the hedge purchase or sale are included in the
consolidated statement of comprehensive income.
In the case of hedges of monetary items, exchange gains or
losses are brought to account in the financial period in which
the exchange rates change.
(iv) Group Companies
The results and financial position of foreign operations (none
of which has the currency of a hyper inflationary economy)
that have a functional currency different from the presentation
currency are translated into the presentation currency as
follows:
• Assets and liabilities for each balance sheet presented are
translated at the closing rate at the date of that balance sheet.
• Income and expenses for each income statement and
statement of comprehensive income are translated at
average exchange rates (unless this is not a reasonable
approximation of the cumulative effect of the rates prevailing
34
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2019 on the transaction dates, in which case income and expenses
are translated at the dates of the transactions).
• All resulting exchange differences are recognised in other
comprehensive income.
On consolidation, exchange differences arising from the
translation of any net investment in foreign entities, and
of borrowings and other financial instruments designated
as hedges of such investments, are recognised in other
comprehensive income. When a foreign operation is sold or
any borrowings forming part of the net investment are repaid,
the associated exchange differences are reclassified to profit or
loss, as part of the gain or loss on sale.
Goodwill and fair value adjustments arising on the acquisition
of a foreign operation are treated as assets and liabilities of the
foreign operation and translated at the closing rate.
(f) Revenue Recognition
Revenue
The Group operates a chain of retail stores and sells a range of
lighting products direct to customers. Revenue from the sale of
goods is recognised when a group entity sells a product to the
customer. Payment of the transaction price is due immediately
when the customer purchases the lighting products and takes
delivery in store. It is the group’s policy to sell its products to the
end customer with a right of return within 30 days. The refund
liability and a right to the returned goods is not material for the
products expected to be returned.
The group’s obligation to repair or replace faulty products under
the standard warranty terms is recognised as a provision, see
note 19.
The revenue relating to the sale of solar systems is recognised
upon practical completion or based on milestone progress
payments under the building contract.
Interest Income
Interest income is recognised using the effective interest
method. When a receivable is impaired, the Group reduces
the carrying amount to its recoverable amount, being the
estimated future cash flow discounted at the original effective
interest rate of the instrument, and continues unwinding the
discount as interest income. Interest income on impaired loans
is recognised using the original effective interest rate.
Franchise Royalty Fee Income
Franchise royalty fee income includes advertising contributions
and management fee, which is generally earned based upon a
percentage of sales, is recognised on an accrual basis.
(g) Income Tax
The income tax expense or revenue for the period is the tax
payable on the current period’s taxable income based on the
applicable income tax rate for each jurisdiction adjusted by
changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.
Deferred tax assets and liabilities are recognised for temporary
differences at the tax rates expected to apply when the assets
are recovered or liabilities are settled, based on those tax rates
which are enacted or substantively enacted for each jurisdiction.
The relevant tax rates are applied to the cumulative amounts
of deductible and taxable temporary differences to measure
the deferred tax asset or liability. An exception is made for
certain temporary differences arising from the initial recognition
of an asset or a liability. No deferred tax asset or liability is
recognised in relation to these temporary differences if they
arose in a transaction, other than a business combination, that
at the time of the transaction did not affect either accounting
profit or taxable profit or loss.
Deferred tax assets are recognised for deductible temporary
differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those
temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a
legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances related to the
same taxation authority. Current tax assets and tax liabilities
are offset where the entity has a legally enforceable right to
offset and intends either to settle on a net basis, or to realise
the asset and settle the liability simultaneously.
Deferred tax liabilities and assets are not recognised for
temporary differences between the carrying amount and tax
bases of investments in foreign operations where the Group
is able to control the timing of the reversal of the temporary
differences and it is probable that the differences will not
reverse in the foreseeable future.
Current and deferred tax is recognised in profit or loss,
except to the extent that it relates to items recognised in other
comprehensive income or directly in equity. In this case, the tax
is also recognised in other comprehensive income or directly in
equity, respectively.
Beacon Lighting Group Limited and its wholly-owned Australian
controlled entities have not implemented the tax consolidation
legislation.
35
FINANCIAL STATEMENTS (h) Leases
Leases of property, plant and equipment where the Group, as
lessee, has substantially all the risks and rewards of ownership
are classified as non current assets (Note 14). Finance leases
and hire purchase arrangements are capitalised at the lease’s
inception at the fair value of the leased property or, if lower,
the present value of the minimum lease payments. The
corresponding rental obligations, net of finance charges, are
included in other short-term and long-term payables. Each
lease payment is allocated between the liability and finance
cost. The finance cost is charged to profit or loss over the lease
period so as to produce a constant periodic rate of interest
on the remaining balance of the liability for each period. The
property, plant and equipment acquired under finance leases
is depreciated over the asset’s useful life or over the shorter of
the asset’s useful life.
Leases in which a significant portion of the risks and rewards
of ownership are not transferred to the Group as lessee are
classified as operating leases (Note 31). Payments made under
operating leases (net of any incentives received from the lessor)
are charged to profit or loss on a straight-line basis over the
period of the lease.
(i) Business Combinations
The acquisition method of accounting is used to account
for all business combinations, regardless of whether equity
instruments or other assets are acquired. The consideration
transferred for the acquisition of a subsidiary comprises the
fair values of the assets transferred, the liabilities incurred and
the equity interests issued by the Group. The consideration
transferred also includes the fair value of any asset or liability
resulting from a contingent consideration arrangement and the
fair value of any pre-existing equity interest in the subsidiary.
Acquisition-related costs are expensed as incurred. Identifiable
assets acquired and liabilities and contingent liabilities assumed
in a business combination are, with limited exceptions,
measured initially at their fair values at the acquisition-date.
On an acquisition-by-acquisition basis, the Group recognises
any non-controlling interest in the acquiree either at fair value
or at the non-controlling interest’s proportionate share of the
acquiree’s net identifiable assets.
The excess of the consideration transferred and the amount of
any non-controlling interest in the acquiree over the fair value of
the net identifiable assets acquired is recorded as goodwill. If
those amounts are less than the fair value of the net identifiable
assets of the subsidiary acquired and the measurement of
all amounts has been reviewed, the difference is recognised
directly in profit or loss as a bargain purchase.
Where settlement of any part of cash consideration is deferred,
the amounts payable in the future are discounted to their
present value as at the date of exchange. The discount rate
used is the entity’s incremental borrowing rate, being the
rate at which a similar borrowing could be obtained from an
independent financier under comparable terms and conditions.
Contingent consideration is classified either as equity or a
financial liability. Amounts classified as a financial liability are
subsequently remeasured to fair value with changes in fair
value recognised in profit or loss.
If the business combination is achieved in stages, the
acquisition date carrying value of the acquirer's previously
held equity interest in the acquire is remeasured to fair value
at the acquisition date. Any gains or losses arising from such
remeasurement are recognised in profit or loss.
(j) Impairment of Assets
Goodwill and intangible assets that have an indefinite useful
life are not subject to amortisation and are tested annually
for impairment, or more frequently if events or changes in
circumstances indicate that they might be impaired. Other
assets are tested for impairment whenever events or changes
in circumstances indicate that the carrying amount may not be
recoverable. An impairment loss is recognised for the amount
by which the asset’s carrying amount exceeds its recoverable
amount. The recoverable amount is the higher of an asset’s fair
value less cost of disposal and value-in-use. For the purposes
of assessing impairment, assets are grouped at the lowest
levels for which there are separately identifiable cash inflows
which are largely independent of the cash inflows from other
assets or Groups of assets (cash-generating units). Non-
financial assets other than goodwill that suffered an impairment
are reviewed for possible reversal of the impairment at the end
of each reporting period.
(k) Cash and Cash Equivalents
For the purpose of presentation in the consolidated statement
of cash flows, cash and cash equivalents includes cash on
hand, deposits held at call with financial institutions, other
short-term, highly liquid investments with original maturities
of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk
of changes in value, and bank overdrafts. Bank overdrafts are
shown within borrowings in current liabilities in the consolidated
balance sheet.
(l) Trade Receivables
Trade receivables are amounts due from customers for
goods sold or services performed in the ordinary course of
business. They are generally due for settlement between 30
and 60 days end of month and therefore are all classified as
current. Trade receivables are recognised initially at the amount
of consideration that is unconditional unless they contain
significant financing components, when they are recognised
at fair value. The company holds the trade receivables with the
36
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2019 objective to collect the contractual cash flows and therefore
measures them subsequently at amortised cost using the
effective interest method. The company applies the AASB 9
simplified approach to measuring expected credit losses which
uses a lifetime expected loss allowance for all trade receivables.
To measure the expected credit losses, trade receivables have
been grouped based on shared credit risk characteristics and
the days past due.
(m) Inventories
Finished goods are stated at the lower of cost and net realisable
value.
Cost comprises direct materials, and an appropriate proportion
of variable and fixed overhead expenditure.
Costs are assigned to individual items of inventory on the
basis of weighted average costs. Net realisable value is the
estimated selling price in the ordinary course of business less
the estimated costs necessary to make the sale.
(n) Derivatives and Hedging Activities
Derivatives are initially recognised at fair value on the date
a derivative contract is entered into and are subsequently
remeasured to their fair value at each reporting date. The
accounting for subsequent changes in fair value depends on
whether the derivative is designated as a hedging instrument,
and if so, the nature of the item being hedged. At inception
of the hedge relationship, the group documents the economic
relationship between hedging instruments and hedged items
including whether changes in the cash flows of the hedging
instruments are expected to offset changes in the cash flows
of hedged items. The group documents its risk management
objective and strategy for undertaking its hedge transactions.
Fair value is determined with reference to quoted market
prices. The full fair value of a hedging derivative is classified
as a non-current asset or liability when the remaining maturity
of the hedged item is more than 12 months; it is classified as
a current asset or liability when the remaining maturity of the
hedged item is less than 12 months. The method of recognising
the resulting gain or loss depends on whether the derivative is
designated and effective as a hedging instrument, and if so, the
nature of the item being hedged.
Cash Flow Hedge
The effective portion of changes in the fair value of derivatives
that are designated and qualify as cash flow hedges is
recognised in other comprehensive income and accumulated
in the hedging reserve in equity. The gain or loss relating to
the ineffective portion is recognised in the income statement in
other income or other expenses.
Amounts accumulated in equity are reclassified to profit or
loss in the periods when the hedged item affects profit or loss
(for instance, when the forecast purchase of inventory that is
hedged takes place).
The gain or loss relating to the effective portion of interest rate
swaps hedging variable rate borrowings is recognised in the
income statement within finance costs. The gain or loss relating
to the effective portion of forward foreign exchange contracts
which hedge imported inventory purchases are ultimately
recognised in the profit or loss as cost of goods sold.
to hedge
forward contracts are used
When
forecast
transactions, the group generally designates only the change in
fair value of the forward contract related to the spot component
as the hedging instrument. Gains or losses relating to the
effective portion of the change in the spot component of the
forward contracts are recognised in the cash flow hedge
reserve within equity. The change in the forward element of
the contract that relates to the hedged item (‘aligned forward
element’) is recognised within Other Comprehensive Income
(OCI) within the cash flow hedge reserve. In some cases, the
entity may designate the full change in fair value of the forward
contract (including forward points) as the hedging instrument.
In such cases, the gains or losses relating to the effective
portion of the change in fair value of the entire forward contract
are recognised in the cash flow hedge reserve within equity.
When a hedging instrument expires or is sold or terminated,
or when a hedge no longer meets the criteria for hedge
accounting, any cumulative gain or loss existing in equity at
that time remains in equity and is recognised when the forecast
transaction is ultimately recognised in the income statement.
When a forecast transaction is no longer expected to occur,
the cumulative gain or loss that was reported in equity is
immediately transferred to the income statement.
(o) Property, Plant and Equipment
All plant and equipment is stated at historical cost less
depreciation. Historical cost includes expenditure that is
directly attributable to the acquisition of the items. Cost may
also include transfers from equity of any gains/losses on
qualifying cash flow hedges of foreign currency purchases of
property, plant and equipment.
Subsequent costs are included in the asset’s carrying amount
or recognised as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with
the item will flow to the Group and the cost of the item can
be measured reliably. The carrying amount of any component
accounted for as a separate asset is derecognised when
replaced. All other repairs and maintenance are charged to
profit or loss during the reporting period in which they are
incurred.
37
FINANCIAL STATEMENTS Depreciation is calculated using the straight-line method to
allocate their cost or revalued amounts, net of their residual
values, over their estimated useful lives or, in the case of
leasehold
leased plant and
equipment, the shorter lease term as follows:
improvements and certain
the consolidated statement of comprehensive income over the
period of the borrowings using the effective interest method.
Borrowings are classified as current liabilities unless the Group
has an unconditional right to defer settlement of the liability for
at least 12 months after the reporting period.
• Furniture, Fittings & Equipment 4 to 20 years
• Motor vehicles 5 to 8 years
The assets’ residual values and useful lives are reviewed, and
adjusted if appropriate, at the end of each reporting period.
An asset’s carrying amount is written down immediately to its
recoverable amount if the asset’s carrying amount is greater
than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing
proceeds with carrying amount. These are included in profit
or loss.
(p) Intangible Assets
(i) Goodwill
Goodwill represents the excess of the cost of an acquisition
over the fair value of the Group’s share of the net identifiable
assets of the acquired subsidiary/associate at the date of
acquisition. Goodwill on acquisitions of subsidiaries is included
in intangible assets. Goodwill is not amortised. Instead,
goodwill is tested for impairment annually, or more frequently
if events or changes in circumstances indicate that it might be
impaired, and is carried at cost less accumulated impairment
losses. Gains and losses on the disposal of an entity include
the carrying amount of goodwill relating to the entity sold.
(ii) Patents, Trademarks and Other Rights
Patents, Trademarks and Other Rights have a finite useful
life and are carried at cost less accumulated amortisation.
Amortisation is calculated using the straight-line method to
allocate the cost of the patents, trademarks and other rights
over their useful life of 25 years.
(q) Trade and Other Payables
These amounts represent liabilities for goods and services
provided to the Group prior to the end of financial year which
are unpaid. The amounts are unsecured and are usually paid
within 30 days of recognition.
Trade and other payables are presented as current liabilities
unless payment is not due within 12 months after the reporting
period. They are recognised initially at their fair value and
subsequently measured at amortised cost using the effective
interest method.
(r) Borrowings
Borrowings are initially recognised at fair value, net of transaction
costs incurred. Borrowings are subsequently measured at
amortised cost. Any difference between the proceeds (net of
transaction costs) and the redemption amount is recognised in
(s) Provisions
for
Provisions
legal claims and product warranties are
recognised when the Group has a present legal or constructive
obligation as a result of past events, it is probable that an
outflow of resources will be required to settle the obligation
and the amount can be reliably estimated. Provisions are not
recognised for future operating losses.
Where there are a number of similar obligations, the likelihood
that an outflow will be required in settlement is determined by
considering the class of obligations as a whole. A provision is
recognised even if the likelihood of an outflow with respect to
any one item included in the same class of obligations may be
small.
Provisions are measured at the present value of managements
best estimate of the expenditure required to settle the present
obligation at the end of the reporting period.
(t) Employee Benefits
(i) Short-Term Obligations
Liabilities for wages and salaries, including non-monetary
benefits that are expected to be settled wholly within 12
months after the end of the period in which the employees
render the related service are recognised in respect of
employees’ services up to the end of the reporting period and
are measured at the amounts expected to be paid when the
liabilities are settled. The liabilities are presented as current
employee benefit obligations in the balance sheet.
(ii) Other Long-Term Employee Benefit Obligations
The liabilities for long service leave and annual leave are not
expected to be settled wholly within 12 months after the
end of the period in which the employees render the related
service. They are therefore recognised in the provision for
employee benefits and measured as the present value of
expected future payments to be made in respect of services
provided by employees up to the end of the reporting period
using the projected unit credit method. Consideration is
given to expected future wage and salary levels, experience
of employee departures and periods of service. Expected
future payments are discounted using market yields at the end
of the reporting period of government bonds with terms and
currencies that match, as closely as possible, the estimated
future cash outflows.
Re-measurements as a result of experience adjustments and
changes in actuarial assumptions are recognised in profit or
loss.
38
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2019 The obligations are presented as current liabilities in the balance
sheet if the entity does not have an unconditional right to defer
settlement for at least twelve months after the reporting period,
regardless of when the actual settlement is expected to occur.
(iii) Share Based Payments
Share based compensation benefits are provided to employees
via the Beacon Lighting Short Term Incentive Plan. Information
relating to this scheme is set out in the Remuneration Report
and Note 27. The fair value of performance rights and options
granted under the plan are recognised as an employee benefit
expense over the period during which the employees become
unconditionally entitled to the rights with a corresponding
increase in equity. The total amount to be expensed is
determined by reference to the fair value of the rights granted,
which includes any market performance conditions and the
impact of any non-vesting conditions but excludes the impact
of any service and non-market performance vesting conditions.
Non-market vesting conditions are included in assumptions
about the number of rights that are expected to vest which
are revised at the end of each reporting period. The impact
of the revision to original estimates, if any; is recognised in
the consolidated statement of comprehensive income, with a
corresponding adjustment to equity.
The fair value is measured at grant date and the expense
recognised over the life of the plan. The fair value is determined
using a Black-Scholes pricing model that takes into account
the exercise price, the term of the right, the impact of dilution,
the share price at grant date and expected price volatility of the
underlying share, the expected dividend yield and the risk-free
interest rate for the term of the rights.
(u) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the
amount of associated GST, unless the GST incurred is not
recoverable from the taxation authority. In this case it is
recognised as part of the cost of acquisition of the asset or as
part of the expense.
Receivables and payables are stated inclusive of the amount of
GST receivable or payable. The net amount of GST recoverable
from, or payable to, the taxation authority is included with other
receivables or payables in the consolidated balance sheet.
Cash flows are presented on a gross basis. The GST
components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the taxation
authority, are presented as operating cash flows.
(v) Store Opening Costs
Non-capital costs associated with the setup of a new store are
expensed in the period in which they are incurred.
(w) Dividends
Provision is made for the amount of any dividends declared,
determined or publicly recommended by the Directors on or
before the end of the financial period but not distributed at
balance date.
(x) Contributed 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.
(y) Earnings Per Share
(i) Basic Earnings Per Share
Basic earnings per share is determined by dividing net profit
after income tax attributable to members of the Group,
excluding any costs of servicing equity other than ordinary
shares, by the weighted average number of ordinary shares
outstanding during the financial period, adjusted for bonus
elements in ordinary shares issued during the period.
(ii) Diluted Earnings Per Share
Diluted earnings per share adjusts the figure used in the
determination of basic earnings per share to take into account
the after income tax effect of interest and other financing costs
associated with dilutive potential ordinary shares (including
performance rights) and the weighted average number of
shares assumed to have been issued for no consideration in
relation to dilutive potential ordinary shares.
(z) Rounding Amounts
The Group has relied on the relief provided by ASIC Corporations
Instrument 2016/191, and in accordance with that Instrument,
amounts in the financial statements have been rounded off to
the nearest thousand dollars, or in certain cases, to the nearest
dollar.
(aa) Parent Entity Financial Information
The financial information for the parent entity, Beacon Lighting
Group Limited, disclosed in Note 37 has been prepared on the
same basis as the consolidated financial report, except as set
out below.
Investments in Subsidiaries
Investments in subsidiaries are accounted for at cost in the
financial report of Beacon Lighting Group Limited.
39
FINANCIAL STATEMENTS The core of AASB 15 is that revenue is recognised when control
of the goods or services passes to customers at an amount
that reflects the consideration to which an entity expects to be
entitled in exchange for those goods or services. At the time of
AASB 15 adoption, the Group has reviewed its arrangements
with customers to identify potential changes in: timing of
revenue recognition, measurement of the amount of revenue
and note disclosure between the previously applied standard
AASB 118 and newly adopted standard AASB 15. The Group
is providing goods to its customers based on contracts that
reflect a performance obligation. Revenue is recognised at a
point in time when the customer obtains control over the goods,
which is not materially different from revenue recognition under
AASB 118. Management has assessed the effects of applying
the new standard on the Group’s financial statements and has
concluded that its application did not result in any material
changes to the Group’s financial performance, financial position
or material adjustment to the comparative financial information.
3. FINANCIAL RISK MANAGEMENT
The consolidated entity is exposed to a variety of financial risks
comprising:
a) Market risk;
b) Credit risk; and
c) Liquidity risk
Risk management is carried out under policies approved by the
Chief Executive Officer.
The Group’s activities expose it to a variety of financial risks:
market risk (including foreign currency risk), credit risk and
liquidity risk. The Group’s overall risk management program
focuses on the unpredictability of financial markets and seeks to
minimise potential adverse effects on the financial performance
of the Group. The Group uses derivative financial instruments
such as foreign exchange contracts and interest rate swaps to
hedge certain risk exposures. Derivatives are exclusively used
for hedging purposes, i.e. not as trading or other speculative
instruments. The Group uses different methods to measure
different types of risk to which it is exposed. These methods
include sensitivity analysis in the case of foreign exchange risks
and aging analysis for credit risk.
2. CHANGES IN ACCOUNTING POLICIES
(a) AASB 9 Financial Instruments
AASB 9 replaces the provisions of AASB 139 that relate to the
recognition, classification and measurement of financial assets
and financial liabilities derecognition of financial instruments,
impairment of financial assets and hedge accounting.
While the adoption of AASB 9 Financial Instruments from
25 June 2018 resulted in changes in accounting policies the
application of the new standard did not have a material impact
on the classification, recognition and measurement of the
Group’s financial instruments, accounts receivable or hedge
accounting. The new accounting policies are set out in Note 1.
Derivatives and hedging activities
The foreign currency forwards and interest rate swaps in
place as at 24 June 2018 qualified as cash flow hedges under
AASB 9. The group’s risk management strategies and hedge
documentation are aligned with the requirements of AASB 9
and these relationships are therefore treated as continuing
hedges. Where the hedge relationship has ended before the
date of initial application, but the inventory is still held at that
date, the group has decided not to restate this inventory.
Impairment of financial assets
The company has the following type of financial assets that are
subject to AASB 9’s new expected credit loss model:
• Receivables - Trade receivables
• Receivables - Receivables from related parties
• Cash and cash equivalents
to
its
revise
required
The company was
impairment
methodology under AASB 9 for each of these assets. There
was no material impact as a result of the change in impairment
methodology. While cash and cash equivalents are also subject
to the impairment requirements of AASB 9, an impairment loss
was not required.
The company applies the AASB 9 simplified approach to
measuring expected credit losses which uses a lifetime
expected loss allowance for all trade receivables. There was no
material impact noted.
(b) AASB 15 Revenue from Contracts with Customers
AASB 15 Revenue from Contracts with Customers establishes
a comprehensive framework for determining the quantum
and timing of revenue recognition. The AASB equivalent of
IFRS 15 Revenue from Contract with Customers replaced
IAS 18 Revenue, IAS 11 Construction Contracts and related
interpretations.
40
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2019 The Group holds the following financial instruments:
Consolidated Entity
FINANCIAL ASSETS
Cash and cash equivalents
Trade and other receivables
Derivative financial instruments
FINANCIAL LIABILITIES
Trade and other payables
Borrowings
Derivative financial instruments
(a) Market Risk
Foreign Exchange Risk
FY2019
$’000
FY2018
$’000
18,305
13,188
-
31,493
17,853
50,939
649
69,441
10,671
10,945
401
22,017
18,166
26,330
-
44,496
The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with
respect to the US dollar.
Foreign exchange risk arises when future commercial transactions and recognised financial assets and financial liabilities are
denominated in a currency that is not the entity’s functional currency. The risk is measured using sensitivity analysis and cash flow
forecasting.
The Group hedges its foreign exchange risk exposure arising from future commercial transactions and recognised assets and liabilities
using forward contracts. The Group has a policy of hedging 100% of the Group’s inventory which is purchased in USD and sold in
AUD. The Group can also lock in a forward position for this foreign exchange exposure for a period of up to 12 months.
At 30 June 2019 the average term of outstanding foreign exchange contracts is two months with an average forward rate for AUD/
USD of 0.6986.
The Group holds the following foreign exchange derivatives:
Consolidated Entity
Forward exchange contracts - buy cash flow hedges (notional amount)
FY2019
$’000
8,446
FY2018
$’000
13,894
41
FINANCIAL STATEMENTS Interest Rate Risk
The Group’s main interest rate risk arises from short term borrowings with variable rates, which expose the Group to cash flow interest
rate risk. The Group manages its cash flow interest rate risk by using floating-to-fixed interest rate swaps.
Interest rate swaps currently in place cover approximately 38% (2018: 39%) of the variable loan principal outstanding. The fixed interest
rate of the swaps used to hedge are 2.28% and 2.47% (2018: 2.28%) and the variable rates of the loans are between 1.17% and 1.90%
(2018: 2.47% and 2.62%).
The swap contracts require settlement of net interest receivable or payable every 30 days. The settlement dates coincide with the
dates on which interest is payable on the underlying debt.
The Group’s exposure to interest rate risk at the end of the reporting period, expressed in Australian dollar is per below:
Consolidated Entity
Interest rate swap contracts - buy cash flow hedges (notional amount)
FY2019
$’000
482
FY2018
$’000
451
Amounts recognised in profit or loss and other comprehensive income
During the year, the following gains / (losses) were recognised in profit or loss and other comprehensive income in relation to forward
exchange contracts and interest rate swaps.
Consolidated Entity
Gain / (Loss) recognised in other comprehensive income
FY2019
$’000
(1,050)
FY2018
$’000
338
42
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2019 Group Sensitivity
At 30 June 2019 55.3% (2018: 100%) of Beacon Lighting Group’s short term borrowings are hedged using forward exchange contracts
and interest rate swaps. The sensitivity of profit or loss to changes in the exchange rates arises mainly from US-dollar denominated
financial instruments and the impact on other components of equity arises from foreign forward exchange contracts designated as
cash flow hedges.
Consolidated Entity
Forward exchange contracts
USD / AUD exchange rate – increase 10%
USD / AUD exchange rate – decrease 10%
Interest rate swap contracts
Floating interest rate – increase 10%
Floating interest rate – decrease 10%
Effects of hedge accounting on the financial position and performance
Consolidated Entity
Forward exchange contracts
Carrying amount - asset / (liability)
Notional amount
Maturity Date
Hedge Ratio
Change in intrinsic value of outstanding hedging instruments
Impact on other components of equity
FY2019
$’000
(844)
844
48
(48)
FY2019
$’000
(43)
8,446
July 2019
1:1
43
FY2018
$’000
(1,389)
1,389
51
(51)
FY2018
$’000
454
13,894
April 2018 to
June 2018
1:1
(454)
Weighted average strike rate for the year
USD$0.7021 : AUD$1
USD$0.7404 : AUD$1
Interest rate swap contracts
Carrying amount - asset / (liability)
Notional amount
Maturity Date
Hedge Ratio
Change in intrinsic value of outstanding hedging instruments
Weighted average strike rate for the year
(606)
482
(53)
451
15 September 2020
15 November 2023
15 September 2020
1:1
552
2.64%
1:1
34
2.80%
43
FINANCIAL STATEMENTS (b) Credit Risk
Credit risk is managed on a Group basis. Credit risk arises from cash and cash equivalents, favorable derivative financial instruments
and deposits with banks as well as credit exposures to wholesale and retail customers, including outstanding receivables and
committed transactions. Individual credit limits are set based on internal or external ratings in accordance with limits set by the
Board. The compliance with credit limits by wholesale and retail customers is regularly monitored by line management. Sales to retail
customers are required to be settled in cash or using major credit cards, mitigating credit risk. There are no significant concentrations
of credit risk, whether through exposure to individual customers, specific industry sectors and/or regions.
An analysis of trade receivables is disclosed in Note 10.
(c) Liquidity Risk
Financing Arrangements
The Group had access to the following financing facilities at the end of each reporting period:
Consolidated Entity
FLOATING RATE – TOTAL FACILITIES
Overdraft
Inventory finance facility
Asset finance facility
Loan facility – multi currency
Loan facility – floating rate
FLOATING RATE – TOTAL UNDRAWN FACILITIES
Overdraft
Inventory finance facility
Asset finance facility
Loan facility – multi currency
Loan facility – floating rate
Maturities of Financial Liabilities
FY2019
$’000
FY2018
$’000
500
37,414
7,385
3,046
27,500
500
6,659
6,444
3,046
8,256
500
37,202
7,385
2,924
15,000
500
17,512
6,845
2,924
8,900
The tables below analyse the Group’s financial liabilities into relevant maturity groupings as follows:
(a) based on their contractual maturities:
(i) all non-derivative financial liabilities, and
(ii) net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of
the timing of the cash flows.
(b) based on the remaining period to the expected settlement date:
(i) derivative financial liabilities for which the contractual maturities are not essential for an understanding of the timing of the cash
flows.
44
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2019 The amounts disclosed in the table are the contractual undiscounted cash flows.
Contractual maturities of financial liabilities:
Consolidated Entity
Less Than
6 months
$’000
6 - 12
Months
$’000
Between
1 and 5
Years
$’000
Over
5 Years
$’000
Total
Contractual
Cash Flows
$’000
Carrying
Amount
(Assets)
Liabilities
$’000
At 30 June 2019
NON-DERIVATIVES
Trade and other payables
Borrowings
Finance lease liabilities
Total non-derivatives
DERIVATIVES
Forward exchange contracts
Interest rate swap contract
Net settled (cash flow hedges)
At 24 June 2018
NON-DERIVATIVES
Trade and other payables
Borrowings
Finance lease liabilities
Total non-derivatives
DERIVATIVES
Forward exchange contracts
Interest rate swap contract
Net settled (cash flow hedges)
17,853
31,058
-
48,911
(43)
(606)
(649)
18,166
19,944
-
38,110
454
(53)
(401)
-
-
453
453
-
-
-
-
-
296
296
-
-
-
-
21,087
543
21,630
-
-
-
-
6,483
271
6,754
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
17,853
52,145
996
17,853
49,998
941
70,994
68,792
(43)
(606)
(649)
(43)
(606)
(649)
18,166
26,427
567
18,166
25,790
540
45,160
44,496
454
(53)
(401)
454
(53)
(401)
45
FINANCIAL STATEMENTS (d) Fair Value Measurements
For information about the methods and assumptions used in determining the fair value of derivatives please refer to Note 12.
Fair value hierarchy
AASB 13 requires disclosure of fair value measurements by level of the following fair value measurement hierarchy:
a) quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1);
b) inputs other than quoted prices included within level 1 that are observable for the asset or liability, either directly or indirectly (level 2); and
c) inputs for the asset or liability that are not based on observable market data (unobservable inputs) (level 3).
The following table presents the Group’s financial assets and financial liabilities measured and recognised at fair value at 30 June 2019, on a recurring basis.
At 30 June 2019
Derivatives used for hedging - Net Position
Level 2
$’000
(649)
Total
$’000
(649)
The fair value of financial instruments that are not traded in an active market (for example, over–the–counter derivatives) is determined
using valuation techniques. These valuation techniques maximise the use of observable market data where it is available and rely as
little as possible on entity specific estimates. If all significant inputs required to fair value an instrument are observable, the instrument
is included in level 2.
All of the resulting fair value adjustments are included in level 2 and the adjustments are all based on valuations provided by third party
banking institutions. There has been no change in valuation techniques during the period.
There are no financial assets and liabilities in Level 1 and Level 3, and there are no transfers between the levels.
4. SEGMENT INFORMATION
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.
The chief operating decision maker for Beacon Lighting Group Limited and its controlled entities (the Group), is the Chief Executive
Officer (CEO). The Group determines operating segments based on information provided to the CEO in assessing performance and
determining the allocation of resources within the Group. Consideration is given to the manner in which products are sold, nature of
the products supplied, the organisational structure and the nature of customers.
Reportable segments are based on the aggregated operating segments determined by the manner in which products are sold,
similarity of products, nature of the products supplied, the nature of customers, the methods used to distribute the product and
materiality. The Group purchases goods in USD for sales into Australia. The Group’s one reportable segment is the selling of light
fittings, fans and energy efficient products.
46
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2019
5. REVENUE FROM ORDINARY ACTIVITIES AND OTHER REVENUE
The company derives revenue from the transfer of goods and services over time and at a point in time as follows:
• Sale of goods - point in time
• Interest Income - point in time
• Franchise Royalty Fee Income - point in time
• Solar system revenue - the revenue relating to the sale of solar systems is recognised upon practical completion or based on
milestone progress payments under the building contract.
Consolidated Entity
From Ordinary Activities
Sale of goods
Other Revenue
Franchise fees
Sundry revenue
6. OTHER INCOME
Consolidated Entity
Interest
Other
FY2019
$’000
FY2018
$’000
246,304
235,964
1,295
80
1,375
1,627
89
1,716
247,679
237,680
FY2019
$’000
-
280
280
FY2018
$’000
43
60
103
47
FINANCIAL STATEMENTS 7. EXPENSES
Consolidated Entity
(a) PROFIT BEFORE INCOME TAX INCLUDES THE FOLLOWING SPECIFIC EXPENSES:
Depreciation
Plant and equipment
Motor vehicles
Amortisation
Patents, trademarks and other rights
Finance costs
Interest and finance charges paid/payable
Net loss on disposal of property, plant and equipment
Rental expense relating to operating leases
Minimum lease payments
Employee benefits
(b) NET FOREIGN EXCHANGE GAINS AND LOSSES
FY2019
$’000
FY2018
$’000
4,133
355
3,518
326
20
20
1,971
234
1,603
36
25,016
22,703
59,394
56,010
Net foreign exchange (gains)/losses recognised in profit before income tax for the period (as
either other income or expense)
(257)
(222)
48
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2019 8. INCOME TAX EXPENSE
Consolidated Entity
(a) INCOME TAX EXPENSE
Current tax
Deferred tax
Adjustments for current tax of prior periods
Deferred income tax (revenue) included in income tax expense comprises
(Note 15):
Decrease (increase) in deferred tax assets
(Decrease) increase in deferred tax liabilities
(b) NUMERICAL RECONCILIATION OF INCOME TAX EXPENSE
TO PRIMA FACIE TAX PAYABLE
Profit from continuing operations before income tax expense
Tax at the Australian tax rate of 30.0% (2018: 30.0%)
Tax effect of amounts which are not deductible (taxable) in calculating
taxable income:
Previously unrecognised tax losses now recouped
Entertainment
Sundry items
Income tax expense
(c) Aggregate amounts of deferred tax arising in the reporting period not
recognised in net profit or other comprehensive income but directly credited
to equity (Note 15)
FY2019
$’000
FY2018
$’000
7,314
(448)
208
7,074
393
55
448
23,118
6,935
-
30
109
7,074
-
8,257
(181)
39
8,115
(191)
10
(181)
27,705
8,312
(285)
27
61
8,115
(3)
49
FINANCIAL STATEMENTS 9. CASH AND CASH EQUIVALENTS
Consolidated Entity
Cash at bank and in hand
Deposits at call (a)
FY2019
$’000
17,034
1,271
18,305
FY2018
$’000
9,391
1,280
10,671
(a) Classification as Cash Equivalents
Term deposits are presented as cash equivalents if they have a maturity of three months or less from the date of acquisition and are
repayable with 24 hours notice with no loss of interest.
Risk Exposure
The Group’s and the parent entity’s exposure to interest rate risk is discussed in Note 3.
10. TRADE AND OTHER RECEIVABLES
Consolidated Entity
Trade receivables (a)
Provision for impairment of receivables (b)
Net amounts receivable from customers
Other debtors (c)
(a) Aging of Trade Receivables
Trade receivables ageing analysis at period end is:
Consolidated Entity
Not past due
Past due 31-60 days
Past due 61-90 days
Past due more than 91 days
50
FY2019
$’000
12,106
(377)
11,729
324
12,053
FY2019
$’000
7,899
619
518
3,070
12,106
FY2018
$’000
9,906
(312)
9,594
497
10,091
FY2018
$’000
6,892
1,203
512
1,299
9,906
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2019 (b) Provision for Impairment of Receivables
Trade receivables are non-interest bearing with terms that vary between 30 and 60 days end of month terms. The company applies
the AASB 9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade
receivables. To measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics
and the days past due.
The expected loss rates are based on the payment profiles of sales over a period of 36 month before 30 June 2018 or 24 June 2018
respectively and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted
to reflect current and forward looking information on macroeconomic factors affecting the ability of the customers to settle the
receivables.
On that basis, the loss allowance as at 30 June 2019 and 24 June 2018 (on adoption of AASB 9) was determined as follows for both
trade receivables:
30 June 2019
Expected loss rate
Gross carrying amount - trade receivables ($’000)
Loss allowance ($’000)
Current
31-60 days
past due
61 - 90
days past
due
More than
90 days
past due
Total
0.1%
7,899
8
0.5%
5.11%
11.06%
619
3
518
26
3,070
12,106
340
377
25 June 2018
Expected loss rate
Gross carrying amount - trade receivables ($’000)
Loss allowance ($’000)
Current
31-60 days
past due
61 - 90
days past
due
More than
90 days
past due
Total
1.0%
6,892
69
1.0%
1,203
12
10.0%
13.81%
512
51
1,299
9,906
180
312
Trade receivables are written off when there is no reasonable expectation of recovery. Indicators that there is no reasonable expectation
of recovery include, amongst others, the failure of a debtor to engage in a repayment plan with the group, and a failure to make
contractual payments for a period of greater than 120 days past due. Impairment losses on trade receivables are presented as net
impairment losses within operating profit. Subsequent recoveries of amounts previously written off are credited against the same
line item.
51
FINANCIAL STATEMENTS (c) Other Debtors
These amounts generally arise from transactions outside the usual operating activities of the Group. Interest may be charged at
commercial rates where the terms of repayment exceed six months. Collateral is not normally obtained.
Foreign Exchange and Interest Rate Risk
Information about the Group’s exposure to foreign currency risk and interest rate risk in relation to trade and other receivables is
provided in Note 3.
Fair Value and Credit Risk
Due to the short-term nature of these receivables, their carrying amount is assumed to approximate their fair value.
The maximum exposure to credit risk at the end of the reporting period is the carrying amount of each class of receivables mentioned
above. Refer to Note 3 for more information on the risk management policy of the Group and the credit quality of the entity’s trade
receivables.
11. INVENTORIES
Consolidated Entity
Inventory at lower of cost and net realizable value
Goods in transit - at cost
FY2019
$’000
67,259
1,439
68,698
FY2018
$’000
60,814
1,632
62,446
Inventory Finance
The Group utilises inventory finance facilities to fund inventory. The term of the facility is two years.
Inventory Expense
Inventories recognised as expense during the 53 week period ended 30 June 2019 and included in cost of sales of goods amounted
to $86,249,607 (2018: $79,402,493).
Write-downs of inventories to net realisable value recognised as an expense during the 53 week period ended 30 June 2019 amounted
to $28,234 (2018: $94,537).
Included in the valuation of inventory is a provision for stock obsolescence of $1,033,297 (2018: $1,291,000).
52
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2019 12. DERIVATIVE FINANCIAL INSTRUMENTS
Consolidated Entity
Current assets
Forward foreign exchange contracts – cash flow hedges
Total current derivative financial instrument assets
Current liabilities
Forward foreign exchange contracts – cash flow hedges
Interest rate swap contracts – cash flow hedges
Total current derivative financial instrument liabilities
Net current derivative financial instrument assets
FY2019
$’000
FY2018
$’000
-
-
(43)
(606)
(649)
(649)
454
454
-
(53)
(53)
401
The Group’s risk exposures are provided in Note 3.
Forward Exchange Contracts and Interest Rate Swaps– Cash Flow Hedges
The Group purchases products in US currency. In order to protect against exchange rate movements, the Group has entered into
forward exchange contracts to purchase US dollars and an interest rate swap to hedge against interest rate fluctuations.
These contracts are hedging highly probable forecasted purchases for the ensuing financial year. The contracts are timed to mature
when payments for major purchases of inventory are scheduled to be made.
The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognised in other
comprehensive income. When the cash flows occur, the Group adjusts the initial measurement of the component recognised in the
balance sheet by removing the related amount from other comprehensive income.
During the 53 weeks ended 30 June 2019 there were no gains or losses (2018: nil) recognised in profit or loss for the ineffective portion
of these hedging contracts.
Hedge ineffectiveness
Hedge effectiveness is determined at the inception of the hedge relationship and through periodic prospective effectiveness
assessments to ensure that an economic relationship exists between the hedged item and hedging instrument. For hedges of foreign
currency purchases, the group enters into hedge relationships where the critical terms of the hedging instrument match exactly with
the terms of the hedged item. The group therefore performs a qualitative assessment of effectiveness. If changes in circumstances
affect the terms of the hedged item such that the critical terms no longer match exactly with the critical terms of the hedging instrument,
the group uses the hypothetical derivative method to assess effectiveness. In hedges of foreign currency purchases, ineffectiveness
may arise if the timing of the forecast transaction changes from what was originally estimated, or if there are changes in the credit risk
of Australia or the derivative counterparty.
The group enters into interest rate swaps that have similar critical terms as the hedged item, such as reference rate, reset dates,
payment dates, maturities and notional amount. Hedge ineffectiveness for interest rate swaps is assessed using the same principles
as for hedges of foreign currency purchases. It may occur due to:
• the credit value/debit value adjustment on the interest rate swaps which is not matched by the loan, and
• differences in critical terms between the interest rate swaps and loans.
There was no ineffectiveness during 2019 or 2018 in relation to the interest rate swaps.
53
FINANCIAL STATEMENTS Hedge reserves
The group’s hedging reserves disclosed in note 24 relate to the following hedging instruments:
Consolidated Entity
Opening balance 26 June 2017
Add Change in fair value of hedging instrument
recognised in Other Comprehensive Income
Less Deferred Tax
Closing balance 24 June 2018
Add Change in fair value of hedging instrument
recognised in Other Comprehensive Income
Less Deferred Tax
Closing balance 30 June 2019
13. OTHER CURRENT ASSETS
Consolidated Entity
Prepayments and other current assets
Currency
Forwards
$'000
Interest Rate
Swaps
$'000
Total Hedge
Reserves
$'000
83
531
160
454
(708)
(212)
(42)
(20)
(47)
(14)
(53)
(791)
(237)
(607)
63
484
146
401
(1,499)
(449)
(649)
FY2019
$’000
2,277
FY2018
$’000
2,324
54
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2019 14. PROPERTY, PLANT AND EQUIPMENT
Consolidated Entity
Year ended 24 June 2018
Opening net book amount
Additions
Disposals
Depreciation charge
Closing net book amount
At 24 June 2018
Cost
Accumulated depreciation
Net book amount
Year ended 30 June 2019
Opening net book amount
Additions
Disposals
Depreciation charge
Closing net book amount
At 30 June 2019
Cost
Accumulated depreciation
Net book amount
Furniture, Fittings and
Equipment
$’000
Vehicles
$’000
Land and
Buildings
$’000
27,229
1,636
4,820
(231)
(3,518)
28,300
45,504
(17,204)
28,300
255
(3)
(326)
1,562
3,175
(1,613)
1,562
28,300
1,562
-
-
-
-
-
-
-
-
-
Total
$'000
28,865
5,075
(234)
(3,844)
29,862
48,679
(18,817)
29,862
29,862
7,762
(241)
(4,114)
31,707
52,820
(21,113)
31,707
530
(4)
(355)
1,733
3,530
(1,797)
1,733
12,588
20,880
-
(19)
(245)
(4,488)
12,569
46,009
12,588
68,938
(19)
(22,929)
12,569
46,009
55
FINANCIAL STATEMENTS 15. DEFERRED TAX ASSETS
Consolidated Entity
GROSS DEFERRED TAX ASSETS
The balance comprises temporary differences attributable to:
Employee benefits
Inventory
Franchise agreement termination fees
Debtor provision
Fixed assets
Marketing fund
Other provisions/accruals
Total deferred tax assets
GROSS DEFERRED TAX LIABILITIES
The balance comprises temporary differences attributable to:
Other accruals and provisions
Total deferred tax liabilities
MOVEMENTS IN NET DEFERRED TAX ASSETS
Opening balance
Charged/(credited) to the consolidated statement of comprehensive income
(Note 8)
Charged/(credited) amounts recognised on acquisitions
Charged/(credited) amounts recognised directly in equity
Net deferred tax assets
FY2019
$’000
FY2018
$’000
2,092
1,065
961
113
413
326
929
1,987
1,075
1,145
94
314
563
773
5,899
5,951
65
65
5,941
(448)
341
-
5,834
10
10
5,890
(181)
235
(3)
5,941
56
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2019 16. INTANGIBLE ASSETS
Consolidated Entity
Year ended 24 June 2018
Opening net book amount
Additions
Amortisation charge for the year
Closing net book amount
At 24 June 2018
Cost
Accumulated amortisation
Net book amount
Year ended 30 June 2019
Opening net book amount
Additions
Amortisation charge for the year
Closing net book amount
At 30 June 2019
Cost
Accumulated amortisation
Net book amount
Goodwill
$’000
Patents,
Trademarks and
Other Rights
$’000
10,102
548
-
10,650
10,650
-
10,650
10,650
796
-
11,446
11,446
-
11,446
240
-
(20)
220
500
(280)
220
220
-
(20)
200
500
(300)
200
Total
$’000
10,342
548
(20)
10,870
11,150
(280)
10,870
10,870
796
(20)
11,646
11,946
(300)
11,646
The current year acquisition is not material hence, has not been disclosed separately as a business combination. Also the prior year acquisition
accounting has been finalised in the current year and there were no changes to the amounts previously reported.
57
FINANCIAL STATEMENTS (a) Impairment Tests for Goodwill
Goodwill is allocated to the Group’s one cash generating unit being the selling of light fittings, fans and energy efficient products (refer
Note 4).
The recoverable amount is determined based on value-in-use calculations. These calculations use cash flow projections based on
financial budgets approved by management covering a five-year period.
(b) Key Assumptions Used For Value-In-Use Calculations
Gross Margin
Growth Rate
Discount Rate
2019
%
64.0
2018
%
64.0
2019
%
3.0
2018
%
3.0
2019
%
11.0
2018
%
11.0
Management determined gross margin based on past performance and its expectations for the future. The weighted average growth
rates used are consistent with forecasts included in industry reports. Management has considered reasonably possible changes in
the key assumptions used in the value- in-use calculations, and has not identified any reasonably possible change that would cause
a material impact in the carrying amount of the Group’s cash generating unit.
17. TRADE AND OTHER PAYABLES
Consolidated Entity
Trade payables
Customer deposits
Sundry creditors
Marketing fund
Other payables
FY2019
$’000
6,568
3,300
6,168
1,087
725
FY2018
$’000
6,007
2,767
6,699
2,058
635
17,848
18,166
(a) Risk Exposure
Information about the Group’s exposure to foreign exchange risk is provided in Note 3.
(b) Fair Value
Trade payables are unsecured and are usually paid within 30 days of recognition.
The carrying amounts of trade and other payables are assumed to be the same as their fair values, due to their short-term nature.
58
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2019 18. CURRENT BORROWINGS
Consolidated Entity
Secured
Inventory finance (a)
Loan facility floating rate (b)
Hire purchase liability (c)
FY2019
$’000
FY2018
$’000
30,754
19,689
300
426
-
276
31,480
19,965
(a) Inventory Finance
The Group utilises inventory finance facilities to fund inventory. The term of the facility is two years.
(b) Loan Facility – Floating Rate
The Group utilises floating rate loan facilities to fund business acquisitions. The term of the facility is two years.
(c) Hire Purchase Liability
The Group utilises hire-purchase plans to acquire assets (i.e. fixtures and fittings and motor vehicles).
The terms range from one to four years. Details on the accounting for these hire-purchase plans is disclosed in Note 1(h) of this report.
Security and Fair Value Disclosures
Information about the security relating to each of the secured liabilities and the fair value of each of the borrowings is provided in Note
21.
Risk Exposures
Details of the Group’s exposure to risks arising from current and non-current borrowings are set out in Note 3.
19. CURRENT PROVISIONS
Consolidated Entity
Employee benefits (a)
Warranty provision (b)
Other provisions (c)
FY2019
$’000
6,079
1,452
136
7,667
FY2018
$’000
5,379
1,468
131
6,978
59
FINANCIAL STATEMENTS (a) Employee Benefits
The current provision for employee benefits includes accrued annual leave and long service leave. For long service leave it covers
all unconditional entitlements where employees have completed the required period of service and also those where employees are
entitled to pro-rata payments in certain circumstances. The entire amount of the provision is presented as current, since the Group
does not have an unconditional right to defer settlement for any of these obligations. However, based on past experience, the Group
does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months. The following
amounts reflect leave that is not expected to be taken or paid within the next 12 months.
Consolidated Entity
Leave obligations not expected to be settled within 12 months
FY2019
$’000
4,325
FY2018
$’000
3,813
(b) Warranty Provision
The Group generally offers 12 months warranty on its products. Provision is made for estimated warranty claims in respect of products
sold which are still under warranty at the end of the reporting period. These claims are expected to be settled in the next financial year.
Management estimates the provision based on historical warranty claim information and any recent trends that may suggest claims
could differ from historical amounts.
Factors that could impact the estimated claim information include the success of the Group’s product and quality initiatives, as well
as parts and labor costs. If claim costs to differ by 10% from management’s estimates, the warranty provision would be an estimated
$145,000 (2018: $147,000) higher or lower.
Movement in Warranty Provision
Consolidated Entity
Carrying amount at the start of the year
Charged/(credited) to profit or loss - amount incurred and charged
Carrying amount at end of period
(c) Other Provisions
Provision is made for the fringe benefit tax payable at the end of the reporting period.
Movements in Other Provisions
Consolidated Entity
Carrying amount at the start of the year
Charged to profit or loss - amount incurred and charged
Amounts used during the year
Carrying amount at end of period
FY2019
$’000
1,468
(16)
1,452
FY2019
$’000
131
571
(566)
136
FY2018
$’000
1,300
168
1,468
FY2018
$’000
135
689
(693)
131
60
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2019 20. CURRENT TAX LIABILITIES
Consolidated Entity
Provision for income tax
21. NON CURRENT BORROWINGS
Consolidated Entity
Secured
Loan facility floating rate (a)
Hire purchase plan (b)
FY2019
$’000
658
FY2018
$’000
1,436
FY2019
$’000
FY2018
$’000
18,944
515
19,459
6,100
265
6,365
(a) Loan Facility Floating Rate
The Group utilises floating rate loan facilities to fund business acquisitions. The term of the facility is two years.
(b) Hire Purchase Plan
The Group utilises hire purchase plans to acquire assets (i.e. furniture and fittings and motor vehicles), with one to four year terms.
Details on the accounting for these hire-purchase plans is disclosed in Note 1(h) of this report.
Secured Liabilities and Asset Security
The Group’s liabilities are secured by general security agreements and deed of cross guarantee and indemnity over certain entities
within the Group. Under the letter of offer the security arrangements cover entities that generate a minimum 85% EBITDA and hold a
minimum 85% total assets.
Compliance with Covenants
Under the terms of the major borrowing facilities the Group is required to comply with the following financial covenants:
• the interest cover ratio is not less than 3.5:1;
• the debt to EBITDA ratio is not more than 2.25:1;
• the fixed charge cover ratio is not less than 1.5:1 and
• the borrowing base is not more than 60% and
• the distribution does not exceed 70% of NPAT.
The Group has complied with the financial covenants of its borrowing facilities during the 53 weeks ended 30 June 2019 and the 52
weeks ended 24 June 2018.
Risk Exposures
Information about the Group’s exposure to interest rate and foreign exchange risk is provided in Note 3.
61
FINANCIAL STATEMENTS 22. NON CURRENT PROVISIONS
Consolidated Entity
Lease liabilities
Employee benefits
FY2019
$’000
2,987
894
3,881
FY2018
$’000
2,389
978
3,367
62
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2019 23. CONTRIBUTED EQUITY
Consolidated Entity
Number of ordinary shares, fully paid
Consolidated Entity
Movements in ordinary share capital
Balance at the beginning of the year
Performance rights vesting into shares
Dividend reinvestment plan share issue
Balance at the end of the year
FY2019
FY2018
219,214,930
217,162,678
FY2019
$’000
65,690
-
2,539
68,229
FY2018
$’000
62,870
251
2,569
65,690
Consolidated Entity
FY2019
FY2018
Movements in the number of ordinary shares
Balance at the beginning of the year
Performance rights vesting into shares
Dividend reinvestment plan share issue
Balance at the end of the year
Ordinary Shares
217,162,678
215,262,753
-
144,680
2,052,252
1,755,245
219,214,930
217,162,678
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Group in proportion to the number
of and amounts paid on the shares held.
All shares carry one vote per share.
Ordinary shares have no par value and the Group does not have a limited amount of authorised capital.
Capital Risk 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 to maintain an optimal capital structure to reduce the cost
of capital.
Consistently with others in the industry, the Group monitors capital on the basis of the gearing ratio. This ratio is calculated as net debt
(borrowings less cash) divided by total equity.
63
FINANCIAL STATEMENTS 24. RESERVES AND RETAINED PROFITS
Consolidated Entity
(a) Other reserves
Cash flow hedges reserve
Share based payment reserve
Foreign currency translation reserve
Treasury shares reserve
Common control reserve
Movement in cash flow hedges reserve
Opening balance
Revaluation (net of tax effect)
Closing balance
Movement in share based payments reserve
Opening balance
Transactions arising from share based payments
Closing balance
Movement in foreign currency translation reserve
Opening balance
Revaluation (net of tax effect)
Closing balance
Movement in treasury shares reserve
Opening balance
Transactions arising from share based payments
Closing balance
Movement in common control reserve
Opening balance
Transactions arising from share capital restructure
Closing balance
64
FY2019
$’000
FY2018
$’000
(649)
456
724
(192)
(43,672)
(43,333)
401
(1,050)
(649)
127
329
456
557
167
724
-
(192)
(192)
401
127
557
-
(43,672)
(42,587)
63
338
401
210
(83)
127
434
123
557
-
-
-
(43,672)
(43,672)
-
-
(43,672)
(43,672)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2019 Nature and Purpose of Other Reserves
Cash Flow Hedges Reserve
The hedging reserve is used to record gains or losses on a hedging instrument in a cash flow hedge that are recognised in other
comprehensive income, as described in Note 1(n). Amounts are reclassified to profit or loss when the associated hedged transaction
affects profit or loss.
Share Based Payments Reserve
The share based payments reserve is used to recognise:
• the grant date fair value of rights issued to employees but not exercised
• the grant date fair value of shares issued to employees
Foreign Currency Translation Reserve
Exchange differences arising on translation of the foreign controlled entity are recognised in other comprehensive income and
accumulated in a separate reserve within equity. The cumulative amount is reclassified to profit or loss when the net investment is
disposed of.
Treasury Shares Reserve
This reserve is used to record the elimination of shares in Beacon Lighting Group held by the incentive plan trust entity on behalf of
the participants of the Groups incentive plan.
Common Control Reserve
This reserve is used to record the differences which may arise as a result of transactions with non-controlling interests that do not
result in a loss of control.
Consolidated Entity
(b) Retained earnings
Movements in retained earnings were as follows:
Opening balance
Net profit for the period
Dividends paid
FY2019
$’000
FY2018
$’000
53,226
16,044
(10,986)
58,284
44,213
19,590
(10,577)
53,226
65
FINANCIAL STATEMENTS 25. DIVIDENDS
a) Ordinary Shares
Consolidated Entity
Final dividend for period ended 24 June 2018 of 2.50 cents (2017: 2.40 cents)
per fully paid share
Interim dividend for period ended 30 June 2019 of 2.55 cents (2018: 2.50 cents)
per full paid share
Total dividends paid
Dividends paid in cash or satisfied by the issue of shares under the dividend
reinvestment plan
Dividends paid in cash
Dividends satisfied by the issue of shares under the dividend reinvestment plan
FY2019
$’000
FY2018
$’000
5,429
5,169
5,557
10,986
8,447
2,539
10,986
5,408
10,577
8,008
2,569
10,577
Dividend reinvestment plan
The Group has established a dividend reinvestment plan under which eligible shareholders may elect to have all or part of their
dividend entitlements satisfied by the issue of new ordinary shares rather than by being paid in cash. Shares are issued under the plan
at a 5% discount to the market price.
b) Dividends not Recognised at the End of the Reporting Period
Consolidated Entity
In addition to the above dividends, since year end the directors have
recommended the payment of a final dividend of 2.00 cents per fully paid
ordinary share (2018: 2.50 cents), fully franked based on tax paid at 30%. The
proposed dividend is to be paid out of retained earnings at 30 June 2019, but not
recognised as at liability at year end.
FY2019
$’000
FY2018
$’000
4,384
5,169
66
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2019 c) Franked Dividends
The franked portions of the final dividends recommended after 30 June 2019 will be franked out of existing franking credits or out of
franking credits arising from the payment of income tax in the 53 week period ended 30 June 2019.
Consolidated Entity
Franking credits available for subsequent reporting periods based on a tax rate of
30.0% (2018: 30.0%)
FY2019
$’000
FY2018
$’000
35,043
33,362
The above amounts represent the balance of the franking account as at the end of the reporting period, adjusted for:
• franking credits that will arise from the payment of the amount of the provision for income tax,
• franking debits that will arise from the payment of dividends recognised as a liability at the reporting date, and
• franking credits that will arise from the receipt of dividends recognised as receivables at the reporting date.
The consolidated amounts include franking credits that would be available to the parent entity if distributable profits of subsidiaries
were paid as dividends.
26. KEY MANAGEMENT PERSONNEL DISCLOSURES
Consolidated Entity
Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Long-term benefits – movements in leave provisions
Performance based cash benefits
Performance based share benefits
FY2019
$
FY2018
$
1,330,909
1,297,542
99,521
47,974
-
238,560
97,592
(46,298)
262,140
118,761
1,716,964
1,729,737
Detailed remuneration disclosures are provided in the remuneration report on pages 18 to 26.
67
FINANCIAL STATEMENTS 27. SHARE BASED PAYMENTS
(a) Executive Short Term Incentive Scheme
Under the Group’s short-term incentive (STI) plan, executives received 0% of the annual STI in cash and 100% in the form of performance
rights and options to ordinary shares of Beacon Lighting Group Limited which vested during the 53 weeks ended 30 June 2019.
Performance rights were granted on 16 August 2018, which in part vested immediately, one year after the grant date and two years
after the grant date. Under the plan, participants are granted performance rights which only vest if certain requirements are met.
Grant
Date
Quantity
Granted
Vest Date
Value at
Grant
Date $
Vested
%
Quantity
Vested
Quantity
Unvested
Value
Expensed
this Year $
G Robinson
24/06/2016
22,107
28-Aug-17
43,750
100.00%
22,107
G Robinson
18/08/2016
23,603
28-Aug-17
32,100
100.00%
23,603
-
-
-
753
G Robinson
24/08/2017
39,338
13-Oct-17
53,500
66.67% 26,227
13,111
11,332
G Robinson
16/08/2018
71,333
09-Oct-18
109,140
33.34%
23,783
47,550
81,854
Total
156,381
238,490
93,939
The fair value of performance rights granted on 24 June 2016 (grant date) was $1.979, with a final vesting date of 28 August 2017.
The fair value of performance rights granted on 18 August 2016 (grant date) was $1.360, with a final vesting date of 25 August 2018. All
unvested performance rights will vest on 25 August 2018 provided the executive remains employed by the Group at the vesting date.
The fair value of performance rights granted on 24 August 2017 (grant date) was $1.360, with a final vesting date of 25 August 2020. All
unvested performance rights will vest on 25 August 2020 provided the executive remains employed by the Group at the vesting date.
The fair value of performance rights granted on 16 August 2018 (grant date) was $1.530, with a final vesting date of 16 August 2020. All
unvested performance rights will vest on 16 August 2020 provided the executive remains employed by the Group at the vesting date.
The performance rights have a zero exercise price. Subject to meeting the relevant vesting conditions, shares will be issued at no
cost to the executive. In the event an executive leaves the Group prior to the vesting date the performance rights will generally lapse.
68
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2019
The number of options over shares in the Group granted to the Key Management Personnel during the current financial period,
together with prior period grants which vested during the period are set out below.
Grant
Date
Quantity
Granted
Vest Date
Value at
Grant
Date $
Vest %
Quantity
Vested &
Exercisable
Quantity
Unvested
Value
Expensed
this Year $
I Bunnett
24/06/2016
31,582 Refer below
40,740
100.00%
31,582
-
797
18/08/2016
11,029 Refer below
15,000
70.00%
7,720
3,309
1,696
24/08/2017
18,382 Refer below
25,000
40.00%
7,353
11,029
7,465
16/08/2018
33,333 Refer below
51,000
33.33%
11,110
22,223
38,249
D Speirs
24/06/2016
31,582 Refer below
40,740
100.00%
31,582
-
797
18/08/2016
11,029 Refer below
15,000
70.00%
7,720
3,309
1,696
24/08/2017
18,382 Refer below
25,000
40.00%
7,353
11,029
7,465
16/08/2018
33,333 Refer below
51,000
33.33%
11,110
22,223
38,249
B Martens
24/06/2016
31,582 Refer below
40,740
100.00%
31,582
-
797
18/08/2016
11,029 Refer below
15,000
70.00%
7,720
3,309
1,696
24/08/2017
18,382 Refer below
25,000
40.00%
7,353
11,029
7,465
16/08/2018
33,333 Refer below
51,000
33.33%
11,110
22,223
38,249
Total
282,978
395,220
144,621
Options were granted on 24 June 2016. 40% vested on 26 June 2017, 30% vested on 25 August 2017 and 30% vest on 25 August
2018, in each case provided that the executive remains employed by the Group at the vesting date. The options expire on 24 June
2031. The options have a zero exercise price.
Options were granted on 18 August 2016. 40% vested on 18 August 2017, 30% vest on 18 August 2018 and 30% vest on 18 August
2019, in each case provided that the executive remains employed by the Group at the vesting date. The options expire on 24 June
2031. The options have a zero exercise price.
Options were granted on 24 August 2017. 40% vest on 24 August 2018, 30% vest on 24 August 2019 and 30% vest on 24 August
2020, in each case provided that the executive remains employed by the Group at the vesting date. The options expire on 24 June
2031. The options have a zero exercise price.
Options were granted on 16 August 2018. 33.33% vest immediately, 33.33% vest on 16 August 2019 and 33.33% vest on 16 August
2020, in each case provided that the executive remains employed by the Group at the vesting date. The options expire on 24 June
2031. The options have a zero exercise price.
Subject to meeting the relevant vesting conditions, shares will be issued at no cost to the executive. In the event an executive leaves
the Group prior to the vesting date the options will generally lapse.
Participation in the plan is at the discretion of the Board and no individual has a contractual right to participate in the plan or to receive
any guaranteed benefits.
69
FINANCIAL STATEMENTS
The number of rights and options to be granted is determined based on the average share price at 30 June (averaged over + / - 30
days).
Number of performance rights granted
Fair Value of performance rights at grant date
Number of options granted
Fair Value of options at grant date
(b) Fair Value of Performance Rights Granted
FY2019
71,333
$1.53
FY2018
39,338
$1.36
FY2019
FY2018
99,999
$1.53
55,146
$1.36
The fair value of the rights at the grant date was estimated using the Black Scholes Model which takes into account the share price
at grant date, the impact of dilution (where material), expected price volatility of the underlying share, the expected dividend yield and
the risk free interest rate.
The model inputs for the performance rights granted during the 53 weeks ended 30 June 2019 included:
Exercise price
Grant date
Share Price at grant date
Expected dividend yield
FY2019
$0.00
FY2018
$0.00
16 August 2018
1 August 2017
$1.53
3.27%
$1.35
3.52%
The expected volatility of the Company's shares and the risk free interest rate do not have a material impact on the fair value calculation
of the performance rights granted.
(c) Fair Value of Options Granted
The fair value of the options at the grant date was estimated using the Black Scholes Model which takes into account the share price
at grant date, the impact of dilution (where material), expected price volatility of the underlying share, the expected dividend yield and
the risk free interest rate.
The model inputs for the options granted:
Exercise price
Grant date
Share Price at grant date
Expected dividend yield
FY2019
$0.00
FY2018
$0.00
16 August 2018
24 August 2017
$1.53
3.27%
$1.35
3.52%
The expected volatility of the Company's shares and the risk free interest rate do not have a material impact on the fair value calculation
of the options granted.
70
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2019 (d) Expenses Arising from Share Based Payment Transactions
Total expenses arising from share based payment transactions recognised during the period as part of employee benefits expense
were as follows:
FY2019
$’000
FY2018
$’000
Performance rights and options issued under employee STI plans
312
156
28. EARNINGS PER SHARE
Consolidated Entity
FY2019
FY2018
Basic earnings per share - cents
Diluted earnings per share - cents
7.37
7.37
9.09
9.09
Weighted average number of ordinary shares used as the denominator in
calculating basic earnings per share
217,720,179
215,436,971
Weighted average number of ordinary shares and potential ordinary shares used
as the denominator in calculating diluted earnings per share
217,773,536
215,617,458
29. REMUNERATION OF AUDITORS
Consolidated Entity
Audit and assurance services
Audit and review of financial statements
Other assurance services
Other services:
Taxation services
Other services
FY2019
$
FY2018
$
236,900
-
22,390
10,000
222,100
69,580
28,235
49,489
Total remuneration of PwC
269,290
369,404
30. CONTINGENCIES
There were no significant or material contingent liabilities including legal claims at 30 June 2019 or 24 June 2018.
71
FINANCIAL STATEMENTS 31. COMMITMENTS
(a) Non-Cancellable Operating Leases: Lessee
Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:
Consolidated Entity
Within one year
Later than one year but not later than five years
Later than five years
FY2019
$’000
24,338
63,869
14,985
FY2018
$’000
22,768
64,391
16,176
103,192
103,335
The Group leases various offices, warehouses and retail stores under non-cancellable operating leases expiring within one to seven
years. The leases have varying terms, with rent payable monthly in advance. Various options exist to renew the leases at expiry for an
additional term. On renewal, the terms of the leases are renegotiated.
(b) Hire Purchase Commitments
Commitments in relation to finance leases are payable as follows:
Consolidated Entity
Within one year
Later than one year but not later than five years
Minimum lease payments
Future finance charges
Total lease liabilities
Representing lease liabilities:
Current (Note 18)
Non-current (Note 21)
FY2019
$’000
FY2018
$’000
453
543
996
(55)
941
426
515
941
296
271
567
(27)
540
275
265
540
(c) Significant capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is $0.7m (2018:
$0.5m)
72
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2019 32. RELATED PARTY TRANSACTIONS
(a) Subsidiaries
Interests in subsidiaries are set out in Note 33.
(b) Key Management Personnel
Disclosures relating to key management personnel are set out in Note 27.
(c) Transactions With Other Related Parties
Consolidated Entity
The following transactions occurred with related parties:
Purchases of goods
FY2019
$
FY2018
$
Purchases of goods and supply of services from other related parties
54,169
28,307
Other transactions
Income received from other related parties
Rent paid to other related parties
14,488
50,515
1,602,456
1,676,951
The Robinson family has a 100% interest as the owner of the Derrimut distribution centre leased by Beacon Lighting on arms length
commercial terms. The current rent is $1,035,468 per annum increasing by 3% annually. The lease expires in March 2021 with two
further rights of renewal for periods of seven years each.
The Robinson family has a 100% interest as owner of the Heidelberg store leased by Beacon Lighting on arms length terms. The
current rent is $188,510 per annum increasing by 3% annually. The lease expires in 2021 with one further right of renewal for a period
of seven years.
The Robinson family has a 100% interest as owner of the Fyshwick store leased by Beacon Lighting on arms length terms. The current
rent is $231,692 per annum increasing by 3% annually. The lease expires in 2024 with one further right of renewal for a period of seven
years.
The Robinson family has a 100% interest as owner of the Bendigo store leased by Beacon Lighting on arms length terms. The current
rent is $90,200 per annum increasing by CPI annually. The lease expires in 2019 with one further right of renewal for a period of seven
years.
These disclosures are made due to Beacon Lighting having obtained, at the time of listing, a waiver from Listing Rule 10.1 permitting
the lease arrangements described above continuing without shareholder approval conditional on disclosure being made in the Annual
Report as set out here.
Ian Robinson has a 100% interest in Carbonetix Pty Ltd. Carbonetix Pty Ltd and Beacon Energy Solutions have an arms length
working alliance whereby business opportunities are jointly explored.
(d) Outstanding Balances
As at 30 June 2019 Carbonetix Pty Ltd owed the Group $64,916 (2018: $150,861).
No provisions for doubtful debts have been raised in relation to any outstanding balances, and no expense has been recognised in
respect of bad or doubtful debts due from related parties.
73
DIRECTORS’ DECLARATION 33. SUBSIDIARIES
The consolidated financial report incorporate the assets, liabilities and results of the following principal subsidiaries in accordance with
the accounting policy described in Note 1(c):
Name of Entity
Incorporation
Shares
Equity Holding(1)
2019 %
2018 %
Beacon Lighting Corporation Pty Ltd
Beacon Lighting Group Incentive Plan Pty Ltd
Brightlite Unit Trust
Beacon Lighting Wholesalers Unit Trust
Beacon Lighting Franchising Unit Trust
Tanex Unit Trust
Enviro Renew Pty Ltd
Manrob Investments Pty Ltd
Masson Manufacturing Pty Ltd
Beacon Property Company Pty Ltd
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Light Source Solutions New Zealand Limited
New Zealand
Beacon Lighting Europe GmbH
Germany
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Beacon Lighting Corporation USA Inc.
United States of America
Ordinary
Beacon Lighting America Inc.
United States of America
Ordinary
Beacon Lighting Solutions (Zhongshan) Co. Ltd
China
Light Source Solutions Limited
Beacon International Limited
Beacon Lighting International
Hong Kong
Hong Kong
Hong Kong
Ordinary
Ordinary
Ordinary
Ordinary
(1) The proportion of ownership interest is equal to the proportion of voting power held.
34. EVENTS OCCURRING AFTER THE REPORTING PERIOD
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
-
100
100
100
100
-
100
100
100
In July 2019 the Group entered into an agreement to purchase a property for the value of $1,580,000 located in Epping, Victoria for
Masson Manufacturing. In July 2019 both the Sunshine (Vic) and Mandurah (WA) stores were closed. In July 2019, the Group entered
into an agreement to purchase the Myaree (WA) franchised store and convert it into a company store in September 2019.
A fully franked dividend of $4,384,299 was declared on 19 August 2019.
Other than the above, there has been no other matter or circumstance that has occurred subsequent to period end that has significantly
affected, or may significantly affect, the operations of the Group, the results of those operations or the state of affairs of the Group or
economic entity in subsequent financial periods.
74
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2019 35. CASH FLOW INFORMATION
(a) Reconciliation of Profit After Income Tax to Net Cash Inflow from Operating Activities
Consolidated Entity
Profit for the period
Depreciation
Net loss on disposal of non-current assets
Amortisation
Share based payments
Net exchange differences
Change in operating assets and liabilities:
(Increase) decrease in receivables
(Increase) decrease in inventories
(Increase) decrease in deferred tax assets
(Increase) decrease in other operating assets
(Decrease) increase in payables
(Decrease) increase in provision for income taxes payable
(Decrease) increase in other provisions
Net cash inflow from operating activities
(b) Reconciliation of Liabilities Arising from Financing Activities
FY2019
$’000
16,044
4,489
234
20
312
(257)
(1,962)
(6,252)
1
46
(354)
(778)
1,205
12,748
FY2018
$’000
19,590
3,844
36
20
156
(222)
(1,229)
(7,178)
869
(571)
(2,251)
1,544
935
15,543
Total
$’000
Consolidated Entity
Balance as at 25 June 2017
Cash flows
Balance as at 24 June 2018
Balance as at 24 June 2018
Cash flows
Balance as at 30 June 2019
Finance
Leases due
within 1 year
$’000
Finance
Leases due
after 1 year
$’000
Borrowings
due within 1
year
$’000
Borrowings
due after 1
year
$’000
(681)
405
(276)
(276)
(150)
(426)
(540)
275
(265)
(265)
(250)
(515)
(23,247)
(5,800)
(30,268)
3,558
(300)
3,938
(19,689)
(6,100)
(26,330)
(19,689)
(6,100)
(26,330)
(10,285)
(13,144)
(23,831)
(29,976)
(19,244)
(50,160)
75
DIRECTORS’ DECLARATION 36. CRITICAL ACCOUNTING ESTIMATES
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires management to
exercise its judgement in the process of applying the Group’s accounting policies.
There are no areas involving a higher degree of judgement or complexity, or areas where assumptions and estimates are significant
to the financial statements.
37. PARENT ENTITY FINANCIAL INFORMATION
(a) Summary Financial Information
The individual financial report for the parent entity show the following aggregate amounts:
Consolidated Entity
Balance sheet
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Reserves
Retained profits
Total equity
Profit / (Loss) for the period
Total comprehensive income
FY2019
$’000
FY2018
$’000
26,371
88,464
114,835
1,797
-
1,797
17,152
88,452
105,604
2,037
26
2,063
113,038
103,541
92,546
85
20,407
113,038
2,933
2,933
90,007
74
13,460
103,541
2,283
2,283
(b) Contingent Liabilities of the Parent Entity
The parent entity did not have any contingent liabilities as at 30 June 2019 or 24 June 2018.
76
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2019 38. DEED OF CROSS GUARANTEE
Beacon Lighting Group Limited and Beacon Lighting Corporation are parties to a deed of cross guarantee under which each Group
guarantees the debts of the others. By entering into the deed, the wholly owned entities have been relieved from the requirement to
prepare a financial report and directors’ report under ASIC Corporations Instrument 2016/914 issued by the Australian Securities and
Investment Commission.
The above companies represent a closed Group for the purposes of the Class Order, and as there are no other parties to the deed of
cross guarantee that are controlled by Beacon Lighting Group Limited, they also represent the extended closed Group.
Set out below is a consolidated income statement, a consolidated statement of comprehensive income and a summary of movements
in consolidated retained earnings for the 53 weeks ended 30 June 2019 of the closed Group consisting of Beacon Lighting Group
Limited and Beacon Lighting Corporation.
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME OF THE CLOSED GROUP
Beacon Lighting Group Limited and Beacon Lighting Corporation Pty Ltd
Distribution income
Expenses
General and administration
Profit before income tax
Income tax expense
Profit for the period attributable to the members of the closed Group
Other comprehensive income
Items that may be reclassified to profit or loss
Changes in the fair value of derivatives
Income tax relating to these items
Other comprehensive income for the period, net of tax
FY2019
$’000
24,295
(3,541)
20,754
(6,595)
14,159
(144)
43
(101)
FY2018
$’000
29,584
(3,709)
25,875
(7,886)
17,989
(49)
15
(34)
Total comprehensive income for the period attributable to the members of
the closed Group
14,058
17,955
77
DIRECTORS’ DECLARATION CONSOLIDATED BALANCE SHEET OF THE CLOSED GROUP
Beacon Lighting Group Limited and Beacon Lighting Corporation Pty Ltd
FY2019
$’000
FY2018
$’000
Current assets
Cash and cash equivalents
Trade and other receivables
Current tax asset
Other current assets
Related party receivables
Total current assets
Non-current assets
Deferred tax assets
Investment in subsidiaries
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Borrowings
Derivative financial instruments
Provisions
Current tax liabilities
Total current liabilities
Non-current liabilities
Provisions
Non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Other reserves
Retained earnings
Total equity
78
451
1,926
-
13
67,356
69,746
5,699
70,633
76,332
146,078
581
-
155
656
328
1,720
2,578
2,578
4,298
102
885
-
19
63,640
64,646
5,831
70,633
76,464
141,110
829
-
54
588
1,320
2,791
2,263
2,263
5,054
141,780
136,056
68,224
85
73,471
141,780
65,684
74
70,298
136,056
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 53 weeks ended 30 June 2019 and the 52 weeks ended 24 June 2018. Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2019 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY OF THE CLOSED GROUP
Beacon Lighting Group Ltd and
Beacon Lighting Corporation
Balance as at 25 June 2017
Profit for the year
Other comprehensive income
Total comprehensive income for the period
Transactions with owners in their capacity as owners:
Issue of shares via dividend re-investment plan
Issue of shares to employees
Employee share scheme
Treasury shares
Dividends provided for or paid
Total contributions by and distributions to owners
Balance as at 24 June 2018
Balance as at 24 June 2018
Profit for the year
Other comprehensive income
Total comprehensive income for the period
Transactions with owners in their capacity as owners:
Contributed
equity
$’000
62,864
-
-
-
2,569
251
-
-
-
2,820
65,684
65,684
-
-
-
Issue of shares via dividend re-investment plan
2,540
Issue of shares to employees
Employee share scheme
Treasury shares
Dividends provided for or paid
Total contributions by and distributions to owners
Balance as at 30 June 2019
-
-
-
-
2,540
68,224
Reserves
$’000
Retained
earnings
$’000
Total equity
$’000
191
-
(34)
(34)
-
-
(83)
-
-
(83)
74
74
-
(101)
(101)
-
-
312
(200)
62,886
125,941
17,989
17,989
-
(34)
17,989
17,955
-
-
-
-
2,569
251
(83)
-
(10,577)
(10,577)
(10,577)
(7,840)
70,298
136,056
70,298
136,056
14,159
14,159
-
(101)
14,159
14,057
-
-
-
-
2,540
-
312
(200)
-
(10,986)
(10,986)
(112)
(10,986)
(8,335)
85
73,471
141,780
79
DIRECTORS’ DECLARATION Directors’ Declaration
In the opinion of the Directors:
(a)
the Financial Statements, notes and the additional disclosures set out on pages 29 to 79 are in accordance with the Corporations
Act 2001 (Cth), including:
(i)
(ii)
complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting
requirements, and
giving a true and fair view of the consolidated entity’s financial position as at 30 June 2019 and of its performance for the 53 weeks
ended on that date.
(b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and
payable,
(c)
at the date of this declaration, there are reasonable grounds to believe that the members of the extended closed Group identified
in Note 38 will be able to meet any obligations or liabilities to which they are, or may become, subject by virtue of the deed of cross
guarantee described in Note 38,
(d) Note 1(a) confirms that the financial statements also comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board and
(e)
the Directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer required by the section
295A of the Corporations Act 2001 (Cth).
This declaration is made in accordance with a resolution of the Directors.
Ian Robinson
Executive Chairman
Melbourne, 19 August 2019
Glen Robinson
Chief Executive Officer
80
BEACON LIGHTING GROUP ANNUAL REPORT 2019
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BEACON LIGHTING GROUP LIMITED
82
BEACON LIGHTING GROUP ANNUAL REPORT 2019 83
INDEPENDENT AUDITOR’S REPORT INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BEACON LIGHTING GROUP LIMITED
84
BEACON LIGHTING GROUP ANNUAL REPORT 2019 85
INDEPENDENT AUDITOR’S REPORT INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BEACON LIGHTING GROUP LIMITED
86
BEACON LIGHTING GROUP ANNUAL REPORT 2019 Shareholders’ Information
In accordance with Section 4.10 of the Australian Stock Exchange Limited Listing Rules, the Directors provide the following information.
SHAREHOLDING ANALYSIS
(a) Distribution of Shareholders
(b) Substantial Shareholdings
At 24 July 2019, the distribution of shareholdings was as
follows:
The number of shares held by the substantial shareholders
listed in the Company’s register of substantial shareholders as
at 24 July 2019 were:
Size of Shareholding
Number of Shareholders
Shareholder
Number of
Shares
% Held
Heystead
Nominees Pty
Ltd (including
Robinson
Family
members)
121,054,088
55.22%
1 - 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
Over 100,000
Total number of
shareholders
Holdings of less than a
marketable parcel
189
331
252
563
52
1,387
-
88
BEACON LIGHTING GROUP ANNUAL REPORT 2019 (c) Class of Shares and Voting Rights
At 24 July 2019, there were 1,387 holders of ordinary shares of the Company. All of the issued shares in the capital of the parent
entity are ordinary shares and each shareholder is entitled to one vote per share.
Twenty Largest Shareholders as at 24 July 2019:
Rank
Name
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
HEYSTEAD NOMINEES PROPRIETARY LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CITICORP NOMINEES PTY LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
NATIONAL NOMINEES LIMITED
MIRRABOOKA INVESTMENTS LIMITED
KJA HOLDINGS PTY LTD
RELIABLE BUSINESS CO LTD
ANACACIA PTY LTD + WATTLE FUND A/C
BNP PARIBAS NOMS PTY LTD
BARRIJAG PTY LIMITED
BANJO SUPERANNUATION FUND PTY LTD
MR ROBERT BRYAN
DR DAVID JOHN RITCHIE + DR GILLIAN JOAN RITCHIE
NEWECONOMY COM AU NOMINEES PTY LIMITED
<900 ACCOUNT>
MR NEIL OSBORNE
ADRIAN HUGH KELLY + PHILIPPA JUNE KELLY
TRUEBELL CAPITAL PTY LTD
MR ALISTAIR CAMPBELL
INVIA CUSTODIAN PTY LIMITED
Top 20 holders of issued capital
Total remaining holders balance
Total shareholders
Number
of Shares
120,453,057
41,079,374
10,585,335
7,772,299
4,357,047
1,608,476
1,482,739
1,429,479
1,066,973
985,041
887,150
479,000
400,000
400,000
376,888
300,000
283,057
277,418
276,700
268,379
%
Holding
54.95%
18.74%
4.83%
3.55%
1.99%
0.73%
0.68%
0.65%
0.49%
0.45%
0.40%
0.22%
0.18%
0.18%
0.17%
0.14%
0.13%
0.13%
0.13%
0.12%
194,768,412
24,446,518
88.85%
11.15%
219,214,930
100.00%
89
SHAREHOLDERS’ INFORMATION
Corporate Directory
LEGAL ADVISORS
Baker & McKenzie
Level 19
181 William Street
Melbourne
Victoria
AUDITORS
PricewaterhouseCoopers
2 Riverside Quay
Southbank
Victoria
SHARE REGISTRY
Computershare Investor Services Pty Limited
Yarra Falls
452 Johnston Street
Abbotsford
Victoria
STOCK EXCHANGE LISTING
Beacon Lighting Group Limited (BLX)
shares are listed on the ASX
DIRECTORS
Ian Robinson
Executive Chairman
Glen Robinson
Chief Executive Officer
(James) Eric Barr Deputy Chairman
Neil Osborne
Non-Executive Director
COMPANY SECRETARY
Tracey Hutchinson
REGISTERED OFFICE
5 Bastow Place
Mulgrave
Victoria
WEBSITE
Corporate site
www.beaconlightinggroup.com.au
Retail site
www.beaconlighting.com.au
Other business websites
www.beaconlightingtradeclub.com.au
www.beaconsolar.com.au
www.beaconlightingcommercial.com.au
www.beaconinternational.com
www.lightsourcesolutions.com.au
www.lightsourcesolutions.co.nz
www.fanaway.com
www.lucciair.com
www.massonforlight.com.au
www.beaconlighting.us
www.beaconlighting.eu
90
BEACON LIGHTING GROUP ANNUAL REPORT 2019 91
Store Locations
Hoppers Crossing
283 Old Geelong Rd
Maribyrnong
Harvey Norman Centre
169 Rosamond Rd
Mentone
27-29 Nepean Hwy
Moorabbin
867 Nepean Hwy
Nunawading
262 Whitehorse Rd
Oakleigh
1402-1404 Dandenong Rd
Pakenham
Lifestyle Centre
825 Princes Hwy
Preston
23 Bell St
Scoresby
1391 Ferntree Gully Rd
South Melbourne
50-56 York St
South Morang
825 Plenty Rd
Springvale
IKEA Homemaker Centre
917 Princes Hwy
St Kilda
366 St Kilda Rd
Thomastown
Homemaker Centre
Cnr Dalton and
Settlement Rds
Warrnambool
14, 1-49 Raglan St
Watergardens
Homemaker Centre
440 Keilor-Melton Hwy
Taylors Lakes
Waurn Ponds
Homemaker Centre
235 Colac Rd
(Princes Hwy)
NSW
Albury Wodonga
Harvey Norman Centre
94 Borella Rd
Albury
Alexandria
Style Homemaker Centre
Cnr O’Riordan
& Doody Sts
Artarmon
Home HQ North Shore
Cnr Reserve Rd
& Frederick St
Bankstown
Home Central
9 - 67 Chapel Rd South
Belrose
Supa Centa Belrose
4-6 Niangala Cl
Brookvale
577-579 Pittwater Rd
Carlton
367 Princes Hwy
Campbelltown
Homebase
24 Blaxland Rd
Castle Hill
Home Hub Hills
Cnr Victoria & Hudson Ave
Crossroads
Homemaker Centre
Parkers Farm Place
Casula
Crows Nest
118 Falcon St
Gladesville
Wharf Sqaure
8 Wharf Rd
Gosford West
Hometown
356 Manns Rd
Hornsby
Cnr Pacific Hwy
& Yardley Ave
Waitara
Killara
694 Pacific Hwy
Kotara
Kotara Home
108 Park Ave
Lake Haven
Home Mega Centre
Cnr Pacific Hwy
& Lake Haven Drv
Marsden Park
Home Hub
Hollinsworth Rd
McGraths Hill
Home Central
264-272 Windsor Rd
Mittagong
Highlands
Homemaker Centre
205 Old Hume Hwy
Moore Park
Supa Centa Moore Park
Cnr Sth Dowling St
& Todman Ave
Parramatta
Cnr Church and
Daking Sts
Penrith
Homemaker Centre
2 Patty’s Place
Port Macquarie
180 Lake Rd
Prospect
Homebase
19 Stoddart Rd
Rutherford
Harvey Norman Centre
366 New England Hwy
Shellharbour
146 New Lake
Entrance Rd
Taren Point
105 Parraweena Rd
Warners Bay
Warners Bay Home
240 Hillsborough Rd
ACT
Fyshwick
175 Gladstone St
Gungahlin
14/5 Hibberson St
VIC
Abbotsford
250 Hoddle St
Ballarat
Wendouree
Homemaker Centre
333 Gillies St
Balwyn North
304 Doncaster Rd
Bayswater
216 Canterbury Rd
Bayswater Nth
Bendigo
285 High St
Kangaroo Flat
Burwood
110 Burwood Hwy
Camberwell
347 Camberwell Rd
Chirnside Park
Showroom Centre
286 Maroondah Hwy
Coburg
Lincoln Mills
Homemaker Centre
64-74 Gaffney St
Craigieburn
440 Craigieburn Rd
Cranbourne
Cranbourne Home
Cnr Sth Gippsland Hwy
& Thompsons Rd
Essendon DFO
Homemaker Hub
120 Bulla Rd
Strathmore
Fountain Gate
Casey Lifestyle Centre
430 Princes Hwy
Frankston
22 McMahons Rd
Geelong
354 Melbourne Rd
Heidelberg
2-4 Dora St
92
NT
Darwin
Homemaker Village
356-362 Bagot Rd
Millner
TAS
Launceston
40 William St
Moonah
7-9 Derwent Park Rd
QLD
Bundal
61 Upton St
Burleigh Stockland Centre
177-207 Reedy
Creek Rd
Cairns
331 Mulgrave Rd
Cannon Hill Homemaker
Centre
1881 Creek Rd
Capalaba Freedom Home
Centre
67 Redland Bay Rd
Carseldine Homemaker
Centre
1925 Gympie Rd
Bald Hills
Fortitude Valley
Homemaker City North
111 McLachlan St
Helensvale
Homeworld
502 Hope Island Rd
Hervey Bay
140 Boat Harbour Drv
Ipswich
Ipswich Riverlink
Shopping Centre
Cnr The Terrace
& Downs Sts
Noosa
Noosa Civic
Eenie Creek Rd
Northlakes
Primewest Northlakes
Cnr Northlakes Drv
Mason St
& Stapylton St
Rockhampton
Red Hill
Homemaker Centre
Cnr Yaamba &
Richardson Rds
Southport
Bunnings Complex
542 Olsen Ave
Toowoomba
Harvey Norman Centre
910 Ruthven St
Townsville - Fairfield
Homemaker Centre
1 D’Arcy Dr
Idalia
Townsville - Garbutt
Mega Centre
Cnr Dalrymple Rd
& Duckworth St
Underwood Homemaker
HQ
1-21 Kingston Rd
Windsor Homemaker City
190 Lutwyche Rd
Jindalee Homemaker City
182 Sinnamon Rd
WA
Kawana
2 Eden St
Minyama
Macgregor
550 Kessels Rd
Mackay
2/2 Heaths Rd
Maroochydore
Sunshine Homemaker
Centre
72 Maroochydore Rd
Morayfield
Supa Centre
344 Morayfield Rd
Baldivis
Safety Bay Rd
Bunbury
Homemaker Centre
42 Strickland St
Cannington
21 William St
Clarkson
Ocean Keys
Homemaker Centre
61 Key Largo Drv
Claremont
201-207 Stirling Hwy
Jandakot
South Central
Cockburn
87 Armadale Rd
Joondalup
3 Sundew Rise
Malaga
Home Centre
655 Marshall Rd
Mandurah Home City
430 Pinjarra Rd
Midland
Midland Central
Cnr Clayton & Lloyd Sts
Myaree
Melville Square
Cnr Leach Hwy
& Norma Rd
Osborne Park
Hometown
381 Scarborough Beach Rd
SA
Churchill
Churchill Centre South
252 Churchill Rd
Kilburn
Gepps Cross
Home HQ
750 Main North Rd
Melrose Park
Melrose Plaza
1039 South Rd
Mile End
Mile End Home
121 Railway Tce
Modbury
985 North East Rd
Munno Para
Harvey Norman Centre
600 Main North Rd
Smithfield
Noarlunga
Harvey Norman Centre
2 Seaman Dr
93
www.beaconlighting.com.au