Beacon Lighting Group Limited
ANNUAL
REPORT
2021
Contents
Chairman 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 authorised for issue by the Directors on 18 August 2021. The Directors have the power to amend and reissue the
financial statements.
CHAIRMAN &
Chief Executive Officer’s Report
The Beacon Lighting Group is very excited to be announcing the financial result for FY2021. Throughout
FY2021, the Board of Directors have been very proud of the Beacon Lighting team who have continued
to be adaptable and innovative in meeting the needs of customers during the COVID-19 pandemic and
lockdowns. With the continued support of our retail and trade customers, business partners and the
general community, the Beacon Lighting Group has been able to achieve a record financial result in FY2021.
GROUP OVERVIEW
(NSW), Belmont
The Beacon Lighting Group finished FY2021 with 113 Beacon
Lighting company stores and 2 franchised stores. During
FY2021, new company stores were opened in Virginia (QLD),
Camperdown
(WA) and Tweed Heads
(NSW). The Ballarat franchised store was also purchased and
converted into a company store. Beacon Lighting Commercial
continues to operate sales offices in Brisbane (QLD), Sydney
(NSW), Melbourne (VIC), Adelaide (SA) and Perth (WA). The
Australian supply chain is supported by two distribution centres
in Derrimut (VIC) and Parkinson (QLD).
As a part of the Beacon Lighting Group Emerging Businesses,
Beacon International has sales offices in Hong Kong, Germany
and the United States of America with a support office in China.
Light Source Solutions has sales teams in both Australia and
New Zealand, while Connected Light Solutions (formerly Light
Source Solutions - Roadway) supports customers across
Australia. Masson For Light has an architectural lighting
showroom in Richmond (VIC) and Custom Lighting has a
designer showroom in Malvern (VIC).
FINANCIAL RESULT
In FY2021, the Beacon Lighting Group achieved a record sales
result of $288.7 million compared to $251.7 million in FY2020
which was a 14.7% increase. Strong gross profit margins were
maintained throughout FY2021 with a final margin of 68.4%
compared to 63.7% in FY2020. In addition, significant operating
expense leverage was achieved in FY2021 with Operating
Expenses as a percentage of sales declining to 38.9% from
42.3% in FY2020. Overall, the Beacon Lighting Group was
able to achieve a Net Profit After Tax result of $37.7 million in
FY2021 compared to $22.2 million in FY2020.
The 14.7% sales increase in FY2021 was driven by a 13.3%
company stores comparative sales increase. Western Australia
continues to be the most exciting state from a Beacon Lighting
stores perspective but there were also very strong comparative
increases in Queensland, South Australia and New South
Wales. Victoria also achieved a very pleasing comparative
sales increase despite an extensive period of lockdown without
retail customers.
The Trade Customer has been the single biggest focus of the
Beacon Lighting Group throughout FY2021. Major changes to
better service our Trade Customers in FY2021 have included
opening all stores at 7:30 am, a dedicated trade marketing
program and the development of trade specific products. The
results of these changes have been very promising to date.
Trade Loyalty Club sales increased by 50.1% and total trade
sales (which also includes Commercial, Masson For Light and
Custom Lighting) increased by 27.1%.
Online sales growth has continued to be very strong throughout
the COVID-19 pandemic increasing by 60.3% in FY2021 to
$26.0 million. The Group continues to be very excited about
Beacon International where sales increased by 45.3% in
FY2021 to $12.3 million.
With a continued focus on providing outstanding customer
service involving improved procurement procedures and an
improved cost base, the Beacon Lighting Group has been
able to achieve a very strong gross profit margin of 68.4% in
FY2021. The Group has continued to be conservative from
a cost management perspective. Operating expenses have
increased by $5.7 million or 5.3% but the operating expenses
as a percentage of sales has declined from 42.3% of sales in
FY2020 to 38.9% of sales in FY2021.
With a combination of increased sales, an improved gross
profit margin and the leveraging of operating expenses,
Beacon Lighting has been able to achieve a Net Profit After Tax
increase of 69.4% to $37.7 million in FY2021. An outstanding
financial result for the Beacon Lighting Group.
In FY2021, the Beacon Lighting Group made a significant
investment of $15.2 million in the Large Format Property Fund
for a 50% interest in four large format retail properties. The
other 50% is owned by Rebeach Pty Ltd which is controlled
by the Robinson Family. Despite supply chain challenges, the
Group has been successful at increasing inventory by $4.9
million. A strong operating cash result has been achieved in
FY2021, which has been used to fund an increase in dividends,
the investment in the Large Format Property Fund and the
repayment of interest bearing debt of $13.2 million.
We would like to thank our retail and trade customers and the
team at Beacon in Australia and around the world for their
support during FY2021.
1
BEACON LIGHTING GROUP ANNUAL REPORT 2021 FY2021
Highights
The Beacon Lighting Group highlights for FY2021 include:
Record sales result of
Record online sales of
$288.7m
Net Profit After
Tax result of
$37.7m
Company store
comparative sales
increase of
13.3%
Trade Loyalty Club
sales increased by
50.1%
$26.0m
representing growth of
60.3%
International sales of
$12.3m
representing growth of
45.3%
Introduced many
TRADE
INITIATIVES
to better serve our
trade customers
RE-PLATFORMED
the WEBSITE
beaconlighting.com.au
Opened NEW stores at
VIRGINIA (QLD)
CAMPERDOWN (NSW)
BELMONT (WA)
TWEED HEADS (NSW)
Purchased the franchised
BALLARAT (VIC)
Beacon Lighting store
50% INTEREST
in a Property Fund
which purchased
4 LARGE
FORMAT RETAIL
PROPERTIES
2
STRATEGIC
pillars of growth
The Beacon Lighting Group’s Strategic Pillars of Growth remain as follows:
RETAIL
TRADE
eCOMMERCE
NEW BUSINESS
Providing our customers with a
rewarding customer experience,
the latest range of lighting and
fans, inspirational store design,
VIP member benefits and
store network expansion
and optimisation.
Having an industry
leading trade club,
trade product
extensions and
building trade
and commercial
partnerships.
Providing our customers
with engaging websites,
enabling online sales
growth and providing for
a seamless customer
experience in-store
and online.
Includes the
emerging businesses,
international sales
expansion, new
business acquisitions
and property.
DIVIDENDS
The Beacon Lighting Group is very pleased to be able to
provide for a record dividend payment to shareholders. The
Directors have declared a fully franked dividend of 4.60 cents
per share for H2 FY2021 (compared to 2.40 cents per share for
H2 FY2020). Along with the H1 FY2021 fully franked dividend
of 4.20 cents per share (compared to 2.60 cents per share for
H1 FY2020), this brings the annual Beacon Lighting Group
dividend for FY2021 to 8.80 cents per share (compared to 5.00
cents per share in FY2020).
OUTLOOK
The Beacon Lighting Group will continue to target growth both
in Australia and in International markets. The Group will do this
by continuing to be at the forefront of the changes that are
occurring in the lighting industry involving new technologies,
fashion and energy efficient lighting solutions. The growth will
also be supported by market leading customer service and
business partnering for both our retail and trade customers.
Beacon Lighting will be looking to build on its market position
as Australia’s leading lighting provider and to grow its presence
in international markets.
The Beacon Lighting Group is planning for further growth in
FY2022 and is already committed to the following activities:
• The Trade Strategy Committee will continue to focus on
improving the trade customer experience including trade
product development and a new Trade Loyalty Club program.
• The conversion of the Large Format Property Fund properties
at Auburn (NSW), Traralgon (VIC) and Southport (QLD) into
Beacon Lighting stores.
• The opening of additional Beacon Lighting stores at
Ellenbrook (WA), Melton (VIC) and Butler (WA).
• The relocation of the Beacon Lighting stores at Port
Macquarie (NSW), Burleigh (QLD), Lake Haven (NSW) and
Camberwell (VIC).
• The launch of the beaconlighting.us retail sales website in the
United States of America.
• The expansion of Beacon International sales for Australian
Designed products into the China market.
• The introduction of exciting new product ranges for Beacon
Lighting Stores, Commercial, Beacon International, Light
Source Solution, Connected Lighting Solutions, Masson For
Light and Custom Lighting.
Looking forward into FY2022, the Beacon Lighting Group is
very well placed to take advantage of the working from home
trend, increased housing churn, home office upgrades and
move to more online shopping. Despite the ongoing uncertainty
associated with the COVID-19 pandemic and lockdowns, the
Beacon Lighting Group is excited about the opportunities
moving into FY2022 and beyond.
Ian Robinson
Executive Chairman
Glen Robinson
Chief Executive Officer
BEACON LIGHTING GROUP ANNUAL REPORT 2021
3
BEACON LIGHTING GROUP ANNUAL REPORT 2021 BOARD
of Directors
Ian Robinson
Executive Chairman
Glen Robinson
Chief Executive
Officer
47 years of service
Ian Robinson purchased the first Beacon Lighting store in 1975. Over
the subsequent 46 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, Large
Format Retailers Association and Large Format Property Group.
27 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 is a Director of Large
Format Property Group. Glen holds a BBus (Management).
(James) Eric Barr
Deputy Chairman
Non-Executive
Director
Neil Osborne
Non-Executive
Director
7 years of service
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 of
America 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 and is
an independent Director of Large Format Property Group. 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.
7 years of service
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) and an independent Director of Large Format
Property Group. Neil holds a BComm, is a CPA and a FAICD.
4
BEACON LIGHTING GROUP ANNUAL REPORT 2021 MANAGEMENT
Team
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.
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).
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 is a
Director of the Large Format
Management Company Pty
Ltd. Prue holds a BBus
(Management & Marketing).
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.
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.
5
BEACON LIGHTING GROUP ANNUAL REPORT 2021 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 18 August 2021. These policies and practices are in accordance with the ASX Corporate Governance Council’s Corporate
Governance Principles and Recommendations (4th 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 be Effective and 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 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 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
is strongly
Principles and Recommendations. The Group
committed to making all selection decisions on the basis of merit.
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. The policy is periodically reviewed to
check it is operating effectively.
The Group undertakes appropriate background checks before
appointing a Director or senior executive including checks as to
the person's character, experience, education, criminal record
and bankruptcy history.
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:
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.
NAME
TERM IN OFFICE
Ian Robinson
Eric Barr
Glen Robinson
Neil Osborne
8 years
7 years
7 years
7 years
Ian Robinson is a substantial shareholder. He has been
Executive Chairman since July 2013 having previously held the
position of Chief Executive Officer.
Eric Barr and Neil Osborne are shareholders of Beacon Lighting
Group Limited. They are independent 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. The Committee is chaired by Eric Barr.
A copy of the Remuneration and Nomination Committee
Charter is available on the Group’s website.
6
BEACON LIGHTING GROUP ANNUAL REPORT 2021 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 and by reference to
the Board & Committee Evaluation Policy. 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.
• Are able to seek independent professional advice at the
Group’s expense in certain circumstances.
Recommendations 2.4 and 2.5 of
the ASX Corporate
Governance Principles and Recommendations recommends
that the Board comprise a majority of Directors who are
independent, and
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
given the Group's present circumstances.
that
PRINCIPLE 3
Instill a Culture of Acting Lawfully, Ethically and Responsibly
The Group has adopted a written Code of Conduct in
accordance with Recommendation 3.2 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.
The Code of Conduct includes the Group's statement of values
that defines the behavioural expectations of all Directors,
Officers, senior management and associates.
In summary, the Code requires associates to always act:
• In a professional, fair and ethical manner, in accordance
with the 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. All Directors and associates employed by the
Group receive appropriate training on their obligations under
the Code.
Beacon Lighting has a whistleblower policy in accordance with
Recommendation 3.3 and ensures that the Board is informed
of any material incidents reported under that policy. The policy
details the types of concerns that may be reported under the
policy, how whistleblowers will be protected and the process
for follow up and investigation.
Beacon Lighting has an anti-bribery and corruption policy in
accordance with Recommendation 3.4 and ensures that the
Board is informed of any breaches of that policy. The policy
prohibits the giving or receipt of bribes or other improper
payments, includes appropriate controls around donations
and offerings of gifts, entertainment or hospitality and provides
training to all managers on how to recognise and deal with
breaches of the policy. Beacon Lighting also has a modern
slavery policy.
PRINCIPLE 4
Safeguard the Integrity of Corporate Reporting
Recommendation 4.1 of the ASX Corporate Governance
Principles and Recommendations, recommends that the
Audit Committee consist only of Non-Executive Directors and
consists of a majority of independent Directors. The Audit
Committee as currently composed does not comply with these
7
BEACON LIGHTING GROUP ANNUAL REPORT 2021 recommendations. Beacon Lighting has an Audit Committee
comprising 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.
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.
• 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 Recommendation 4.3, the Group shall
disclose the process used to verify the integrity of periodic
reports released to the market that are not audited or
reviewed by the Group’s external auditor to ensure that the
report is materially accurate, balanced and provides investors
with appropriate information to make informed investment
decisions. The Group's external auditor attends each annual
general meeting and is available to answer shareholders
questions about an audit.
PRINCIPLE 5
Make Timely and Balanced Disclosure
and Recommendations
Recommendation 5.1 of the ASX Corporate Governance
that
Principles
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
recommends
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.
The Board receives copies of all material market announcements
promptly after they have been made to ensure that the Board
has timely visibility of the nature and quality of the information
being disclosed to the market.
Where appropriate the Group will release copies of new and
substantive investor presentation materials on the ASX Market
Announcements Platform prior to their presentation.
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.
Beacon
Lighting Corporate website
The
(www.
beaconlightinggroup.com.au) 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 Group'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. The Group
will consider the use of technology to facilitate the remote
participation of shareholders in general meetings.
Any substantive resolutions at a general meeting will be
decided by a poll rather than by a show of hands in accordance
with Recommendation 6.4 raise questions of Directors on any
matter relevant to the performance and operation of the Group.
8
BEACON LIGHTING GROUP ANNUAL REPORT 2021 PRINCIPLE 7
Recognise and Manage Risk
Recommendation 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 Group'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 Audit
Committee periodically reviews whether there is a need for a
separate internal audit function.
The Board has received written assurances from management
as to the effectiveness of the Group’s management of its
material business risks.
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.
Recommendation 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. The COVID-19 pandemic has continued to have a
significant impact upon the Beacon Lighting Group in FY2021.
Despite the impact of the COVID-19 restrictions, the Group
was very well placed to service the changing needs of retail
and trade customers as they have spent more time working
from home, home schooling and completing projects at home.
There however remains significant uncertainty associated with
the COVID-19 pandemic and lockdowns and it is uncertain as
to whether the higher level of sales will continue in the future.
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 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 continues to operate responsibly with the community
and to work with supply chain stakeholders in order to reduce
the Group’s impact upon the environment.
Social 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, at the distribution centres 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.
During the COVID-19 pandemic, the safety and well being
of our associates, customers, business partners and the
community have been the priority of the Group. The Group has
implemented social distancing standards, invested in additional
intensive cleaning, introduced hand sanitisers, introduced
QR codes and restricted the number of customers visiting
our stores.
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.
9
BEACON LIGHTING GROUP ANNUAL REPORT 2021 PRINCIPLE 8
Remunerate Fairly and Responsibly
Recommendation 8.1 of the Corporate Governance Principles
and Recommendations, recommends that the remuneration
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.
In accordance with
its Charter, the Remuneration and
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.
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 52 weeks ended 27 June 2021.
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.
4.1. Overview of Operations
Beacon Lighting is the leading retail and eCommerce lighting
and fan business servicing both retail and trade customers
in Australia. Beacon Lighting also has several other specialty
the Australian market. Beacon
lighting businesses
International is an emerging international wholesaler of fan and
lighting products. The Beacon Lighting Group also has a 50%
investment in the Large Format Property Fund which owns four
large format retail properties in Australia.
in
At the end of FY2021, the Beacon Lighting Group operated the
following trading businesses:
• 113 Beacon Lighting company stores.
• 2 Beacon Lighting franchised stores.
• 5 Beacon Lighting Commercial sales offices.
• Beacon International offices in Hong Kong, Germany, United
States of America and China.
• Light Source Solutions operating in Australia and New
Zealand.
2. PRINCIPAL ACTIVITIES
• Connected Light Solutions (formerly known as Light Source
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 predominately in the
Australian market.
3. RESULTS
The consolidated profit for the year attributable to the members
of Beacon Lighting Group Limited was:
Solutions Roadway).
• Masson For Light.
• Custom Lighting.
• Beacon Lighting Wholesale.
During FY2021, some of the operational highlights for the
Beacon Lighting Group included:
• Re-platforming the beaconlighting.com.au website.
CONSOLIDATED ENTITY
Actual
FY2021
$’000
Actual
FY2020
$’000
• Opened new stores in Virginia (QLD), Camperdown (NSW),
Belmont (WA) and Tweed Heads (NSW).
• Purchased the Ballarat (VIC) franchised Beacon Lighting
store.
Profit before Income Tax
53,758
31,887
Income Tax Expense
(16,100)
(9,662)
Net profit after tax attributable
to the members of Beacon
Lighting Group Limited
37,658
22,225
During the year The Beacon Lighting Group acquired a 50%
share in the Large Format Property Fund which owns large
format retail properties in Southport (QLD), Traralgon (VIC),
Cannington (WA) and Auburn (NSW).
12
BEACON LIGHTING GROUP ANNUAL REPORT 2021 Beacon Lighting is a vertically integrated business which
designs, develops, sources, imports, distributes, merchandises,
promotes and sells its own product range to meet the needs
of our retail and trade 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
Distribution Centres in Derrimut (VIC) and Parkinson (QLD).
More than 85% of the products sold by the Beacon Lighting
Group are exclusively branded.
4.2. COVID-19 Impact
The COVID-19 pandemic continued to have an impact on
the Beacon Lighting Group throughout FY2021. A prolonged
lockdown in Victoria, along with other lockdowns throughout
Australia, has had a significant effect upon our team members,
retail customers, trade customers, business partners and
the community. Beacon Lighting has responded with a
number of safety and wellbeing initiatives in response to the
constantly changing environment. The Group has maintained
in
social distancing rules, restricted customer numbers
stores, invested in additional extensive cleaning, provided
hand sanitisers to all customers, implemented QR codes for
all locations and even closed our stores to retail customers.
Throughout FY2021, the safety and well being of everyone has
been the number one priority of the Beacon Lighting Group.
The COVID-19 pandemic has also impacted upon consumer
shopping patterns and priorities. With the working from home
trend, increased housing churn and home office upgrades have
all increased the importance of our homes to our customers
which has been a benefit to Beacon Lighting. The re-
platformed Beacon Lighting website, along with home delivery
and the click and collect capabilities of our stores have been
enthusiastically embraced by our customers. There however
remains significant uncertainty associated with the COVID-19
pandemic, the ongoing threats of lockdowns and the impact
of the vaccine rollout. It is not possible to forsee whether the
outstanding results of FY2021 will continue into the future.
The Beacon Lighting Group did not receive any JobKeeper
support from the Federal Government.
13
BEACON LIGHTING GROUP ANNUAL REPORT 2021
4.3 FINANCIAL SUMMARY
4.3.1 Financial Performance
The Directors’ Report includes references to underlying results which exclude the impact of adjustments detailed in this report. The
Directors believe the presentation of non-IFRS measures are useful for the users of this financial report as they provide additional
insight into the financial performance of the Group. Non-IFRS financial measures contained within this report are not subject to audit
or review.
A summary of the Beacon Lighting Group FY2021 statutory result compared to the FY2020 statutory result is presented in the
following table
Consolidated Entity
Sales
Gross Profit
Other Revenue & Income
Statutory
FY2021
$’000
288,679
197,335
817
Statutory
FY2020
$’000
251,749
160,274
8,834
Operating Expenses (1)
(112,190)
(106,536)
EBITDA
EBIT
Net Profit After Tax
85,962
59,502
37,658
62,572
38,066
22,225
(1) Operating Expenses excludes interest, depreciation and amortisation
Change
Change
$’000
36,930
37,061
(8,017)
(5,654)
23,390
21,436
15,433
%
14.7%
23.12%
(90.8%)
5.3%
37.4%
56.3%
69.4%
The FY2021 statutory result Is not directly comparable to the FY2020 statutory result. While there is no adjustment necessary to the
FY2021 statutory result, the FY2020 statutory result includes the sale and leaseback of the Parkinson (QLD) Distribution Centre and
the closure of Beacon Energy Solutions. A reconciliation of the FY2020 statutory result to the FY2020 underlying result is presented
in the following table:
Consolidated Entity
Sales
Gross Profit
Other Revenue & Income
Operating Expenses (4)
EBITDA
EBIT
Net Profit After Tax
Statutory
FY2020
$’000
251,749
160,274
8,834
(106,536)
62,572
38,066
22,225
BES (1)
$’000
(1,358)
3,208
PDC Sale (2)
$’000
-
-
Underlying
FY2020 (3)
$’000
250,391
163,482
-
(7,780)
1,054
1,915
5,123
5,137
3,567
-
(104,621)
(7,780)
(7,780)
(5,423)
59,915
35,423
20,369
(1) Loss for Beacon Energy Solutions (BES) in FY2020 which closed
(2) PDC Sale relates to the profit on sale and leaseback of the Parkinson Distribution Centre in December 2019
(3) FY2020 underlying result to be used as comparison to the FY2021 statutory result
(4) Operating Expenses excludes interest, depreciation and amortisation
14
BEACON LIGHTING GROUP ANNUAL REPORT 2021
A comparison of the FY2021 statutory result with the FY2020 underlying result is presented in the following table:
$'000
Sales
Gross Profit
Other Income
Statutory
FY2021
$’000
Underlying
FY2020
$’000
288,679
250,391
197,335
163,482
817
1,054
Operating Expenses (1)
(112,190)
(104,621)
EBITDA
EBIT
Net Profit After Tax
85,962
59,502
37,658
59,915
35,423
20,369
(1) Operating Expenses excludes interest, depreciation and amortisation
Change
$’000
Change
%
38,288
33,853
(237)
(7,569)
26,047
24,079
17,289
15.3%
20.7%
(22.5%)
7.2%
43.5%
68.0%
84.9%
The financial commentary for the Beacon Lighting Group will compare the FY2021 statutory result to the FY2020 underlying result.
15
BEACON LIGHTING GROUP ANNUAL REPORT 2021 4.3.2 Sales
The Beacon Lighting Group achieved a record sales result with
a sales increase of 15.3% to $288.7 million. Underpinning this
result was a 13.3% increase in company store comparative
sales. The best performing states were Western Australia,
Queensland and New South Wales. Beacon International sales
also increased by 45.3%, Online sales increased by 60.3% and
Trade Loyalty Club sales increased by 50.1%.
4.3.3 Gross Profit Margin
The gross profit margin was 68.4% in FY2021 compared to
65.3% in FY2020. Overall, Beacon Lighting increased the gross
profit dollars in FY2021 by $33.9 million compared to FY2020.
The gross profit was improved by everyday pricing, improved
procurement negotiations and favorable foreign currency
movements.
4.3.4 Other Income & Other Revenue
Other income consists of other income and other revenue.
Other income has declined by 22.5% in FY2021 as franchised
stores continued to be purchased and converted into company
stores.
4.3.5 Operating Expenses
Operating expenses increased by 7.2% to $112.2 million.
Significant operating leverage was achieved in FY2021, with
operating expenses as a percentage of sales declining to
38.9% from 41.8% in FY2020. Expense productivity gains
have been achieved across all expense categories. The most
significant productivity improvement achieved was for selling
and distribution expenses which declined by 2.7% percent of
sales to 28.7% of sales in FY2021 from 31.4% in FY2020.
4.3.6 Earnings
In FY2021, the Beacon Lighting Group achieved a record Net
Profit After Tax result of $37.7 million representing an increase
of 84.9% or $17.3 million over FY2020. The Net Profit After Tax
result as a percentage of sales improved to 13.0% in FY2021
compared to 8.1% in FY2020.
4.3.7 Dividends
The Directors of Beacon Lighting have declared an annual fully
franked dividend of 8.80 cents per share for FY2021 (compared
to 5.00 cents per share for FY2020). For H1 FY2021, the
Directors had already declared a fully franked dividend of 4.20
cents per share and for H2 FY2021, the Directors have declared
a fully franked dividend of 4.60 cents per share. Going forward,
it is expected that the Beacon Lighting Group will continue to
have an annual NPAT dividend payout ratio of between 50%
and 60%.
4.3.8 Financial Position
The Beacon Lighting Group has generated very strong cash
flows throughout FY2021. The Group has used these cash flows
to invest $15.2 million in the Large Format Property Fund, paid
down borrowings by $13.2 million and propose to pay $19.7
million in dividends that related to FY2021. In a time when it
has been difficult to maintain inventory levels, Beacon Lighting
has increased inventory to $67.9 million as at 27 June 2021
from $63.1 million as at 28 June 2020. Despite these significant
financial activities, the Beacon Lighting Group finished FY2021
with a strong cash balance of $33.8 million.
4.4 Business Strategies
Throughout FY2021, the Beacon Lighting Group has continued
to focus on four strategic pillars of growth.
4.4.1 Retail
The Beacon Lighting store teams have continued to adapt
in delivering outstanding service to our retail customers. For
our retail customers, the store teams have changed with the
requirements of the COVID-19 pandemic with additional safety
measures, contactless click and collect and the introduction of
a 3-hour home delivery from most stores.
The Beacon Lighting Group core range of 3,000 products
has been enhanced by the introduction of 602 new products
in FY2021 that ensures our customers get access to the
largest range of lighting and fan products in Australia. Beacon
Lighting also has more than 250 Accredited Lighting Design
Consultants and 33 Premium Lighting Design Studios which
ensures that Beacon Lighting can deliver a unique experience
to all customers.
Throughout FY2021, Beacon Lighting has continued to expand
the store network to be able to service new customers in new
markets. New stores have been opened in Virginia (QLD),
Camperdown (NSW), Belmont (WA) and Tweed Heads (NSW).
The Ballarat (VIC) franchised store was purchased and turned
into a company store.
4.4.2 Trade
Throughout FY2021, the number one sales priority of the
Beacon Lighting Group has been to improve our service to our
trade customers. For our trade customers, all stores are now
opened at 7:30 am to make it more convenient for them to
shop at Beacon Lighting. The benefits of the Beacon Trade
Club are now available to 8,300 more trade customers in
FY2021 with the Club now having 44,100 trade members. The
Beacon Lighting team has also developed new trade products
which are specifically only available to trade customers. The
Group developed a specific trade marketing program to be
able to better communicate with our trade customers. With the
support of all these initiatives and the Beacon Lighting team,
Trade Loyalty Club sales increased by 50.1% in FY2021.
4.4.3 eCommerce
Following a partnership with a new Web-Agency, Beacon
Lighting was able to launch many of the Group websites on a
new eCommerce platform in FY2021. The new beaconlighting.
com.au website was re-platformed in October 2020 with an
improved customer experience. With the help of the new
website, Beacon Lighting was able to achieve record online
sales of $26.0 million in FY2021 representing an increase of
60.3% compared to FY2020. The Beacon Lighting online sales
channel continues to be aligned with the 115 Beacon Lighting
stores in order to provide retail and trade customers with
convenience and choice.
16
BEACON LIGHTING GROUP ANNUAL REPORT 2021 4.4.4 New Business
4.5.2 Product Sourcing, Quality and Supply
The Beacon Lighting Group continues to pursue growth in
Beacon International, Custom Lighting, Masson For Light,
Light Source Solutions and Connected Light Solutions as the
emerging businesses. The most promising of these emerging
businesses is Beacon International which is a wholesaler
of fan and lighting products designed for Australia but sold
to customers in international markets. In FY2021, Beacon
International sales increased to $12.3 million representing an
increase of 45.3%.
In FY2021, the Beacon Lighting Group also acquired a 50%
interest in the Large Format Property Fund that owns four
large format retail properties in Southport (QLD), Traralgon
(VIC), Cannington (WA) and Auburn (NSW). The Cannington
(WA) property already has Beacon Lighting and Forty Winks as
tenants. Southport (QLD), Traralgon (VIC) and Auburn (NSW)
are all development properties which are expected to open in
FY2022 and include Beacon Lighting stores.
4.5 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 these risks should those risks occur. The specific material
risks faced by the Beacon Lighting and how they are managed
are set out in the following sections.
4.5.1 Retail Environment and General Economic
Conditions
The Beacon Lighting Group is sensitive to the current and
future state of the retail environment and general economic
conditions. This includes, but is not limited to interest rates,
consumer confidence, business confidence, unemployment,
property prices, housing churn, dwelling approvals, renovation
spends, government policy and natural disasters.
The ongoing COVID-19 pandemic and lockdowns has exposed
the Beacon Lighting Group to additional risks. An increase
in COVID-19 infections in Australia or overseas can result
in lockdowns with consequential impacts upon customer
demand, product supply and foreign currency volatility. A
COVID-19 outbreak in a Store, Commercial Office, Distribution
Centre or the Store Support Centre may have a significant
operational impact upon the Group.
Beacon Lighting plans to manage the Group according to
the current environment. The Group will also maintain a
conservative cash position and bank facilities to support the
Group in a time of need.
Beacon Lighting is a vertically integrated business which relies
upon key agents, factory relationships and quality assurance
processes to ensure continuity of product supply. Beacon
Lighting will continue to work on the supply chain so that it
does not become critically dependant upon any one external
third party. Beacon Lighting will consider additional investment
in safety stocks, additional internal resources throughout
the supply chain and diversifying sources of supply where
appropriate.
4.5.3 Management Systems
The Beacon Lighting Group have several management systems
which are critical to the ongoing operations of the Group. It
is important that these management systems are secure
and fit for purpose. The Group needs to ensure that there
is appropriate security, backup and recovery capabilities in
place to safeguard the ongoing operation of our management
systems.
4.5.4 Foreign Currency Rates
Most goods purchased and imported by Beacon Lighting
into Australia are purchased in USD. As a result, the Group
is exposed to fluctuations in the AUD/USD exchange rate.
Beacon Lighting mitigates this risk by managing selling prices
to our customers and from a cost perspective, carrying all
domestic stock in Australia in AUD and by using FX forward
contracts to secure future FX positions.
4.5.5 Strategic Pillars of Growth
The Beacon Lighting Group has several strategic pillars of
growth. There is no guarantee that these pillars will succeed,
be subject to delays or cost over-runs. Beacon Lighting will
continue to invest in and support the strategic pillars that will
increase the Group value in the long term. If a strategic pillar
cannot add value to the Group in the long term, then resources
will be reallocated to other strategic pillars.
4.5.6 Competition
Beacon Lighting operates in a competitive retail market which
is subject to moderate barriers to entry, changing competitor
behaviour and retail and trade customer 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, grow
the trade market position in Australia and grow the wholesale
market position internationally.
4.5.7 Environment
The Group is not affected by any significant environmental
regulation in respect of its operations. However ongoing
concerns regarding global warming could have an adverse
impact on the business.
17
BEACON LIGHTING GROUP ANNUAL REPORT 2021
5. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
During FY2021, Beacon Lighting Group acquired a 50% interest in the Large Format Property Fund at a value of $15,225,500. The
Large Format Property Fund is currently 50% owned by the Beacon Lighting Group and 50% owned by Rebeach Pty Ltd which is
controlled by the Robinson Family. During FY2021 the Fund established four sub funds to acquire four properties.
During FY2021, Farrlong Pty Ltd as trustee for the Bacalla Trust which is controlled by the Robinson Family subscribed for 55% of the
shares of Large Format Management Company Pty Ltd which is the trustee, property manager and fund manager of the Large Format
Property Fund. The Beacon Lighting Group holds the remaining 45% (previously 100%).
In addition to this announcement there were no other 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 27 June 2021, 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
13
13
13
13
A
13
13
13
13
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.
H
3
-
3
3
A
3
-
3
3
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
123,890,740
123,890,740
225,000
300,000
(1) Heystead Nominees and other Robinson Family member interests
8. DIRECTORS’ INTERESTS IN CONTRACTS
Directors’ interests in contracts are disclosed in Note 33 of the financial statements.
9. DIVIDENDS
Dividends paid to members during the financial period were as follows:
Consolidated Entity
Actual FY2021
$'000
Actual FY2020
$'000
Fully franked dividends provided or paid during the period
14,696
10,110
18
BEACON LIGHTING GROUP ANNUAL REPORT 2021
10. INSURANCE OF OFFICERS
13. EVENTS SUBSEQUENT TO REPORTING
10.1. Indemnification of Directors
DATE
During July and August 2021, significant trading restrictions
have been implemented across Australia which has impacted
upon the trading results. Generally, retail and trade customers
can continue shopping online and avail themselves to home
delivery or contact free click and collect. This has had no
material effect on the financial statements for the 52 weeks
ended 27 June 2021.
Ian Bunnett, Managing Director – Sales has resigned and will
be leaving the Beacon Lighting Group in August 2021. His
responsibilities have been allocated to other Executives.
A fully franked dividend of $10,272,785 was declared on 18
August 2021.
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.
14. AUDIT SERVICES
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.
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
an Officer 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 $198,108 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.
11. INDEMNITY OF AUDITORS
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.
12. PROCEEDINGS ON BEHALF OF THE
COMPANY
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).
19
BEACON LIGHTING GROUP ANNUAL REPORT 2021 14.2 Audit and Non-Audit Services Provided by the External Auditor
During the 52 weeks ended 27 June 2021, 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
FY2021
$
FY2020
$
Audit & review of financial statements
252,700
248,600
Other Services
Tax compliance services
Other Services
Total Remuneration of PwC
In addition to their statutory audit duties, PwC provided taxation
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
PwC 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.
44,300
8,745
305,745
32,000
17,200
297,800
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 1,100
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 52 weeks
ended 27 June 2021.
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 21.
20
BEACON LIGHTING GROUP ANNUAL REPORT 2021 Remuneration Framework
Element
Purpose
Performance
Metrics
Potential Value
Changes
for FY2020
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 Net
Profit After Tax
(NPAT)
200% of the
executives on
target cash
bonus*
No change
NPAT measures as
determined by the Board
Short Term
Incentive
(Performance
Rights or
Options)
Reward for in year
performance
Budgeted Net
Profit After Tax
(NPAT)
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
*On target cash bonus is the bonus as stipulated in the executives’ service agreements
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 FY2021 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
100.00%
56.69%
69.16%
69.89%
66.65%
0.00%
31.41%
22.31%
21.78%
24.13%
0.00%
100.00%
11.90%
100.00%
8.53%
100.00%
8.33%
100.00%
9.22%
100.00%
The Remuneration and Nomination Committee is responsible for assessing performance against KPIs and determining the STIs to be
paid or issued. To assist in this assessment, the Committee receives detailed financial reports from management which are based on
independently verifiable financial statements.
In the event of serious misconduct or material misstatement in the Group’s financial statements the remuneration committee can
cancel performance based remuneration and may also claw back performance based remuneration paid in previous financial years.
21
BEACON LIGHTING GROUP ANNUAL REPORT 2021
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 $122,000 and $112,000
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 52 weeks ended 27 June 2021, the Group did not have
a 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 organisation 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 FY2021 fixed remuneration was increased for the five
executives at an average increase of 6.03%. 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.
22
The Group’s Net Profit After Tax (NPAT) 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 NPAT budget for the year. The Board considers
NPAT 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 NPAT
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
3. Short Term Incentive (Performance Rights or Options).
During the 52 weeks ended 27 June 2021 the Group continued
to maintain a short term performance rights incentive plan and a
short term incentive option plan. Executives including the Chief
Executive Officer but excluding the Executive Chairman are
eligible to participate in the plans subject to the achievement
of the Group financial performance targets. The plans provide
the opportunity to obtain shares or cash at the directors'
discretion, subject to meeting the relevant conditions including
remaining an employee at no cost to the executive. 100% of
the grants are assessed by financial measures (subject to
the right of the directors to adjust remuneration outcomes to
prevent inappropriate outcomes). The financial measure used
is the Group’s NPAT result against the Group’s NPAT budget.
This is tested annually. The Board considers NPAT 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.
BEACON LIGHTING GROUP ANNUAL REPORT 2021 Structure of Short Term Performance Rights and Options Incentive Plans
Feature
Description
Maximum Opportunity
125% of on target cash bonus value
Performance Metric
Budgeted NPAT
Delivery of STI
Board Discretion
33.34% of STI performance rights and options award vest after the financial results have been
audited and approved by the Board. 33.33% in twelve months and 33.33% in 24 months 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
17.3 FY2021 Performance and Impact on Remuneration
Beacon Lighting’s NPAT financial performance in FY2021 exceeded the FY2021 budget. For the 52 weeks ended 27 June 2021, the
Group’s financial performance targets were met when compared to budget. Senior management will be awarded with available short
term cash incentive and the short term (performance rights or options), subject to Board approval.
17.4 Statutory Performance Indicators
Beacon Lighting aims to align executive remuneration 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 five years as required by the Corporations Act
2001 (Cth). The table below shows improvement in the Group’s performance over that period generating significant benefits for
shareholders both in terms an appreciating share price and the payment of dividends.
Statutory Key Performance Indicators of the Group
FY2021
FY2020
FY2019
FY2018
FY2017
Net profit after tax ($’000)
37,658
22,225
16,044
19,590
16,644
Basic earnings per share (cents)
16.94
10.11
7.37
9.09
7.73
Dividend payments ($’000)
14,696
10,110
10,986
10,577
10,224
Share Price (Year End)
1.86
1.08
1.04
1.54
1.38
17.5. Details of Remuneration
The following executives along with the Directors are 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 52 weeks ended
27 June 2021 and the 52 weeks ended 28 June 2020 unless otherwise stated.
23
BEACON LIGHTING GROUP ANNUAL REPORT 2021 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
$
Share Based
Payments
Total
$
-
-
211,494
197,178
17,397
1,369
17,397
(12,947)
-
-
21,694
(17,317)
214,000
81,098
681,290
21,002
(8,243)
137,214
22,737
519,137
10,104
9,543
9,236
8,676
-
-
-
-
-
-
-
-
-
-
-
-
116,462
110,000
106,461
100,000
58,431
(15,948)
214,000
81,098
1,115,707
56,618
(21,190)
137,214
22,737
926,315
21,694
(1,137)
100,000
38,249
448,206
21,002
11,320
73,121
13,001
395,593
21,694
9,934
100,000
38,249
459,173
21,002
6,309
74,008
13,001
390,603
21,694
5,485
100,000
38,249
414,500
21,002
(11,283)
72,931
13,001
336,576
65,082
14,282
300,000
114,747
1,321,879
63,006
6,346
220,060
39,003
1,122,772
DIRECTORS
I Robinson (Executive Chairman)
2021
2020
192,728
192,728
G Robinson (Chief Executive Officer)
2021
2020
E Barr (Non-Executive)
2021
2020
381,815
346,427
106,358
100,457
N Osborne (Non-Executive)
2021
2020
97,225
91,324
Total Remuneration Directors
2021
2020
EXECUTIVES
778,126
730,936
I Bunnett (Managing Director – Sales)
2021
2020
289,400
277,149
D Speirs (Chief Financial Officer)
2021
2020
289,296
276,283
B Martens (Chief Operating Officer)
2021
2020
249,072
240,925
Total Remuneration Executives
2021
2020
827,768
794,357
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
24
BEACON LIGHTING GROUP ANNUAL REPORT 2021
17.6. Share Based Compensation
The number of performance rights granted to the Chief Executive are set out below:
Grant
Date
Quantity
Granted
Vest Date
Value at
Grant
Date $
Vested %
Quantity
Vested &
Exercisable
Quantity
Unvested
Quantity
Exercised
Value
Expensed
this Year $
G Robinson
24/06/2016
22,107 Refer below
43,750
100.00%
22,107
18/08/2016
23,603 Refer below
32,100
100.00%
23,603
24/08/2017
39,338 Refer below
53,500
100.00%
39,338
16/08/2018
71,333
Refer below
109,140
100.00%
71,333
-
-
-
-
22,107
23,603
26,227
-
-
-
23,783
2,235
20/08/2020
99,074
Refer below
107,000
33.33%
33,032
66,042
-
78,863
Total
255,455
345,490
189,413
66,042
95,720
81,098
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 fair value of performance rights granted on 20 August 2020 (grant date) was $1.080, with a final vesting date of 20 August 2022. All
unvested performance rights will vest on 20 August 2022 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. If shares are issued, they 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, except at the discretion of the Directors.
25
BEACON LIGHTING GROUP ANNUAL REPORT 2021
The number of options over shares in the Group granted to the Key Management Personnel are set out below.
Grant
Quantity
Date
Granted
Vest Date
Value at
Grant
Date $
Vested
%
Quantity
Vested &
Exercisable
Quantity
Quantity
Unvested
Exercised
Value
Expensed
this Year $
I Bunnett
24/06/2016
31,582
Refer below
40,740
100.00%
31,582
-
31,582
-
18/08/2016
11,029
Refer below
15,000
100.00%
11,029
-
7,720
-
24/08/2017
18,382
Refer below
25,000
100.00%
18,382
-
16/08/2018
33,333
Refer below
51,000
100.00%
33,333
-
20/08/2020
46,296
Refer below
50,000
33.33%
15,430
30,866
-
-
-
353
1,045
36,851
D Speirs
24/06/2016
31,582
Refer below
40,740
100.00%
31,582
-
31,582
-
18/08/2016
11,029
Refer below
15,000
100.00%
11,029
-
11,029
-
24/08/2017
18,382
Refer below
25,000
100.00%
18,382
16/08/2018
33,333
Refer below
51,000
100.00%
33,333
-
-
12,867
353
22,223
1,045
20/08/2020
46,296
Refer below
50,000
33.33%
15,430
30,866
-
36,851
B Martens
24/06/2016
31,582
Refer below
40,740
100.00%
31,582
-
31,582
-
18/08/2016
11,029
Refer below
15,000
100.00%
11,029
-
11,029
-
24/08/2017
18,382
Refer below
25,000
100.00%
18,382
-
12,867
353
16/08/2018
33,333
Refer below
51,000
100.00%
33,333
-
22,223
1,045
20/08/2020
46,296
Refer below
50,000
33.33%
15,430
30,866
-
36,851
Total
421,866
545,220
329,269
92,598
194,704
114,747
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. 33.34% 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 fair value of options granted on 20 August 2020 (grant date) was $1.080. 33.34% vest on 20 August 2020, 33.33% vest on 20
August 2021 and 33.33% vest on 20 August 2022, 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, except at the discretion
of the Directors.
26
BEACON LIGHTING GROUP ANNUAL REPORT 2021
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
Year (1)
Purchase
of Shares
DRP
Issue (2)
Sales of
Shares
Balance at
End of Year
DIRECTORS
I Robinson (Executive Chairman) (3)
2021
2020
122,479,786
120,928,332
G Robinson (Chief Executive Officer)
130,211
125,756
200,000
200,000
300,000
300,000
103,276
2021
2020
E Barr (Non-Executive)
2021
2020
N Osborne (Non-Executive)
2021
2020
EXECUTIVES
I Bunnett (Managing Director – Sales)
2021
2020
D Speirs (Chief Financial Officer)
2021
2020
B Martens (Chief Operating Officer)
2021
2020
Total
2021
2020
63,974
39,302
161,653
-
79,581
77,701
146,220
-
68,519
77,701
-
-
-
-
-
-
-
-
-
-
-
-
-
1,278,029
1,551,454
2,714
4,455
-
-
-
-
-
-
-
-
123,757,815
122,479,786
132,925
130,211
225,000
200,000
300,000
300,000
60,000
43,276
-
103,276
-
-
-
-
-
-
3,369
4,371
-
-
50,000
-
-
-
115,022
161,653
146,220
146,220
25,000
-
-
-
-
-
-
-
-
-
123,521,146
-
25,000
1,284,112
110,000
124,720,258
121,766,162
194,704
-
1,560,280
-
123,521,146
(1) Shares received during the year were a result of performance rights being exercised under the STI Plan.
(2) Shares received during the year as a result of participating in the Dividend Reinvestment Plan.
(3) Heystead Nominees Pty Ltd and other Robinson Family member interests, excluding Glen Robinson.
27
BEACON LIGHTING GROUP ANNUAL REPORT 2021 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.
Name
Contract Type
G Robinson
Rolling contract
I Bunnett
D Speirs
Rolling contract
Rolling contract
B Martens
Rolling contract
Notice of termination
by Group
Employee notice
12 weeks
12 weeks
12 weeks
12 weeks
12 weeks
12 weeks
12 weeks
12 weeks
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 FY2020. The Group 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,
18 August 2021
Glen Robinson
Chief Executive Officer
28
BEACON LIGHTING GROUP ANNUAL REPORT 2021 AUDITOR'S
Independence Declaration
Auditor’s Independence Declaration
As lead auditor for the audit of Beacon Lighting Group Limited for the 52 week period ended 27 June
2021, I declare that to the best of my knowledge and belief, there have been:
(a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
(b) no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Beacon Lighting Group Limited and the entities it controlled during
the period.
Jason Perry
Partner
PricewaterhouseCoopers
Melbourne
18 August 2021
PricewaterhouseCoopers, ABN 52 780 433 757
2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331, MELBOURNE VIC 3001
T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
29
BEACON LIGHTING GROUP ANNUAL REPORT 2021
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 Consolidated Financial Statements
1. Summary of Significant Accounting Policies
2. Financial Risk Management
3. Segment Information
4. Revenue from Ordinary Activities and Other Revenue
5. Other Income
6. Expenses
7.
Income Tax Expense
8. Cash and Cash Equivalents
9. Trade and Other Receivables
10. Inventories
11. Derivative Financial Instruments
12. Other Current Assets
13. Property, Plant and Equipment
14. Investments Accounted for Using the Equity Method
15. Deferred Tax Assets
16. Intangible Assets
17. Trade and Other Payables
31
32
33
34
35
43
48
49
49
50
51
52
52
54
55
57
57
58
59
60
61
18. Current Borrowings
19. Current Provisions
20. Current Tax Liabilities
21. Non Current Borrowings
22. Non Current Provisions
23. Leases
24. Contributed Equity
25. Reserves and Retained Profits
26. Dividends
27. Key Management Personnel Disclosures
28. Share Based Payments
29. Earnings Per Share
30. Remuneration of Auditors
31. Contingencies
32. Commitments
33. Related Party Transactions
34. Subsidiaries
35. Events Occurring After the Reporting Period
36. Cash Flow Information
37. Critical Accounting Estimates
38. Parent Entity Financial Information
39. Deed of Cross Guarantee
62
62
64
64
65
65
67
68
70
71
71
73
73
73
74
74
76
79
80
81
81
82
30
BEACON LIGHTING GROUP ANNUAL REPORT 2021
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.
Consolidated Entity
Notes
REVENUE FROM CONTRACTS WITH CUSTOMERS
Sale of goods
Other revenue
Total revenue from contracts with customers
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
Profit is attributable to:
Owners of Beacon Lighting Group Limited
Non-controlling interests
4
4
4
5
6
6
7
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
25(a)
25(a)
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
FY2021
$’000
288,679
635
289,314
182
FY2020
$’000
251,749
800
252,549
8,034
(91,344)
(91,475)
(13,045)
(108,345)
(17,260)
(5,744)
53,758
(16,100)
37,658
37,630
28
37,658
1,195
(200)
(298)
697
(13,535)
(102,381)
(15,126)
(6,179)
31,887
(9,662)
22,225
22,225
-
22,225
(294)
231
19
(44)
38,355
22,181
Total comprehensive income is attributable to:
Owners of Beacon Lighting Group Limited
Non-controlling interests
EARNINGS PER SHARE
Basic earnings per share
Diluted earnings per share
38,327
28
38,355
CENTS
16.94
16.92
29
29
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying Notes.
22,181
-
22,181
CENTS
10.11
10.10
31
BEACON LIGHTING GROUP ANNUAL REPORT 2021 CONSOLIDATED BALANCE SHEET
As at 27 June 2021 and as at 28 June 2020 Beacon Lighting Group and its controlled entities.
Consolidated Entity
Notes
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Inventories
Other current assets
Total current assets
NON-CURRENT ASSETS
Financial assets at fair value through profit or loss
Investments in associates
Property, plant and equipment
Right of use assets
Intangible assets
Other non-current assets
Deferred tax assets
Total non-current assets
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Borrowings
Derivative financial instruments
Provisions
Current tax liabilities
Lease liabilities
Total current liabilities
NON-CURRENT LIABILITIES
Borrowings
Lease liabilities
Provisions
Total non-current liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Other reserves
Retained earnings
TOTAL EQUITY
8
9
10
12
14
13
23
16
15
17
18
11
19
20
23
21
23
22
24
25(a)
25(b)
The above consolidated balance sheet should be read in conjunction with the accompanying Notes.
32
FY2021
$’000
33,830
7,788
67,936
1,337
110,891
213
15,241
35,252
100,746
13,738
416
13,528
179,134
290,025
23,417
18,617
18
9,413
2,666
25,079
79,210
-
97,680
939
98,619
177,829
112,196
72,312
(43,355)
83,239
112,196
FY2020
$’000
44,856
8,620
63,082
1,496
118,054
-
-
32,847
88,719
12,953
1,238
13,403
149,160
267,214
22,132
17,197
855
8,097
4,464
23,242
75,987
13,200
90,076
983
104,259
180,246
86,968
70,258
(43,567)
60,277
86,968
BEACON LIGHTING GROUP ANNUAL REPORT 2021 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.
Consolidated Entity
Notes
Contributed
Equity
$’000
Reserves
$’000
Retained
Earnings
$’000
Total
Equity
$’000
Balance as at 28 June 2020
70,258
(43,567)
60,277
86,968
Profit for the year
Other comprehensive income
25(a)
Total comprehensive income for the period
Transactions with owners in their capacity as owners:
Issue of shares via dividend reinvestment plan
Employee share scheme
Treasury share reserve
Dividends provided for or paid
Non-controlling interest in investment properties
24
25(a)
25(a)
26
-
-
-
2,054
-
-
-
-
697
697
-
(286)
(199)
37,658
37,658
-
697
37,658
38,355
-
-
-
2,054
(286)
(199)
-
(14,696)
(14,696)
Total contributions by and distributions to owners
2,054
(485)
(14,696)
(13,127)
Balance as at 27 June 2021
72,312
(43,355)
83,239
112,196
Balance as at 30 June 2019
68,229
(43,331)
58,282
83,180
Adjustment for change in accounting policy
-
-
(10,121)
(10,121)
Restated balance at prior year
68,229
(43,331)
48,163
73,061
Profit for the year
Other comprehensive (loss)/income
25(a)
Total comprehensive income for the period
Transactions with owners in their capacity as owners:
Issue of shares via dividend reinvestment plan
Employee share scheme
Treasury share reserve
Dividends provided for or paid
24
25(a)
25(a)
26
-
-
-
2,029
-
-
-
-
(44)
(44)
-
(476)
281
22,225
22,225
-
(44)
22,225
22,181
-
-
-
2,029
(476)
281
-
(10,109)
(10,109)
Total contributions by and distributions to owners
2,029
(192)
(10,109)
(8,272)
Balance as at 28 June 2020
70,258
(43,567)
60,277
86,968
The above consolidated statement of changes in equity should be read in conjunction with the accompanying Notes.
33
BEACON LIGHTING GROUP ANNUAL REPORT 2021 For the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.
CONSOLIDATED STATEMENT OF CASH FLOWS
Consolidated Entity
CASH FLOWS FROM OPERATING ACTIVITIES
Notes
FY2021
$’000
FY2020
$’000
Receipts from customers (inclusive of goods and services tax)
318,869
280,458
Payments to suppliers and employees (inclusive of goods and
services tax)
(234,302)
(211,899)
Interest received
Borrowing costs
Income taxes paid
Net cash inflow from operating activities
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant and equipment
Payments for equity interest in associate
Payments for acquisitions
Payments for financial assets
Proceeds from sale of property, plant and equipment
Net cash (outflow) / inflow from investing activities
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
(Repayment) of borrowings
36
33
(Payments) for principal portion of lease liabilities
Dividends paid to Company's shareholders
26
Net cash (outflow) from financing activities
Net (decrease) / increase 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
8
The above consolidated statement of cash flows should be read in conjunction with the accompanying Notes.
14
(5,744)
(17,615)
61,222
(7,911)
(15,240)
(1,150)
(250)
-
(24,551)
70,058
(81,839)
(23,274)
(12,642)
(47,697)
(11,026)
44,856
33,830
264
(6,179)
(7,306)
55,338
(6,315)
-
(1,314)
-
28,000
20,371
81,251
(100,852)
(21,476)
(8,081)
(49,158)
26,551
18,305
44,856
34
BEACON LIGHTING GROUP ANNUAL REPORT 2021 1. Summary of Significant Accounting
(ii) Impact of Standards Issued but Not Yet Applied by
Policies
Group
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 52 week retail period
ending on 27 June 2021 (2020: 52 week period ending 28
June 2020). 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
following standards and
the
The Group has applied
amendments for the first time for their annual reporting period
commencing 1 July 2020:
• AASB 2018-7 Amendments
to Australian Accounting
Standards – Definition of Material [AASB 101 and AASB 108]
• AASB 2018-6 Amendments
to Australian Accounting
Standards – Definition of a Business [AASB 3]
• AASB 2019-3 Amendments
to Australian Accounting
Standards – Interest Rate Benchmark Reform [AASB 9,
AASB 139 and AASB 7]
• AASB 2019-5 Amendments
to Australian Accounting
Standards – Disclosure of the Effect of New IFRS Standards
Not Yet issued in Australia [AASB 1054]
• Conceptual Framework for Financial Reporting and AASB
2019-1 Amendments to Australian Accounting Standards –
References to the Conceptual Framework
The amendments listed above did not have any impact on the
amounts recognised in prior periods and are not expected to
significantly affect the current or future periods.
Certain new accounting standards and interpretations have
been published that are not mandatory for 27 June 2021
reporting periods and have not been early adopted by the
Group. These standards are not expected to have a material
impact on the entity in the current or future reporting periods
and on foreseeable future transactions.
(iii) Compliance with IFRS
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 37
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.
(c) Principles of Consolidation and Equity
Accounting
(i) Subsidiaries
The consolidated financial report incorporates the assets and
liabilities of all subsidiaries of Beacon Lighting Group Limited
(‘Group’ or ‘parent entity’) as at 27 June 2021 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.
35
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 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.
(ii) Associates
Associates are all entities over which the Group has significant
influence but not control or joint control. This is generally the
case where the Group holds between 20% and 50% of the
voting rights. Investments in associates are accounted for
using the equity method of accounting (see (iii) below), after
initially being recognised at cost.
(iii) Equity Method
Under the equity method of accounting, the investments are
initially recognised at cost and adjusted thereafter to recognise
the Group’s share of the post-acquisition profits or losses of the
investee in profit or loss, and the Group’s share of movements
in other comprehensive income of the investee in other
comprehensive income. Dividends received or receivable from
associates and joint ventures are recognised as a reduction in
the carrying amount of the investment.
Where the Group’s share of losses in an equity-accounted
investment equals or exceeds its interest in the entity, including
any other unsecured long-term receivables, the Group does
not recognise further losses, unless it has incurred obligations
or made payments on behalf of the other entity.
Unrealised gains on transactions between the Group and its
associates and joint ventures are eliminated to the extent of
the Group’s interest in these entities. Unrealised losses are
also eliminated unless the transaction provides evidence of
an impairment of the asset transferred. Accounting policies
of equity-accounted investees have been changed where
necessary to ensure consistency with the policies adopted by
the Group.
The carrying amount of equity-accounted investments is tested
for impairment in accordance with the policy described in note
1(j).
36
(iv) Changes in Ownership Interests
The Group treats transactions with non-controlling interests
that do not result in a loss of control as transactions with equity
owners of the Group. A change in ownership interest results in
an adjustment between the carrying amounts of the controlling
and non-controlling interests to reflect their relative interests
in the subsidiary. Any difference between the amount of the
adjustment to non-controlling interests and any consideration
paid or received is recognised in a separate reserve within
equity attributable to owners of the Group.
When the Group ceases to consolidate or equity account
for an investment because of a loss of control, joint control
or significant influence, any retained interest in the entity is
remeasured to its fair value with the change in carrying amount
recognised in profit or loss. This fair value becomes the initial
carrying amount for the purposes of subsequently accounting
for the retained interest as an associate, joint venture or financial
asset. In addition, any amounts previously recognised in other
comprehensive income in respect of that entity are accounted
for as if the Group had directly disposed of the related assets or
liabilities. This may mean that amounts previously recognised
in other comprehensive income are reclassified to profit or loss.
If the ownership interest in a joint venture or an associate is
reduced but joint control or significant influence is retained, only
a proportionate share of the amounts previously recognised in
other comprehensive income are reclassified to profit or loss
where appropriate.
(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 predominately into Australia. The Group’s one reportable
segment is the selling of light fittings, fans and energy efficient
products.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 (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
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 at which point the control of products is transferred.
Payment of the transaction price is due immediately when the
customer purchases the lighting products and takes control of
the products. 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.
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 based upon a percentage of
sales.
(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.
37
BEACON LIGHTING GROUP ANNUAL REPORT 2021 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 are 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.
(h) Leases
The Group leases various offices, warehouses and retail stores.
Rental contracts are typically made for fixed periods of 7 to
14 years but may have extension options as described below.
Contracts may contain both lease and non-lease components.
The Group allocates the consideration in the contract to the
lease and non-lease components based on their relative stand-
alone prices. However, for leases of real estate for which the
Group is a lessee, it has elected not to separate lease and non-
lease components and instead accounts for these as a single
lease component. Lease terms are negotiated on an individual
basis and contain a wide range of different terms
and conditions. The lease agreements do not impose any
covenants, but leased assets may not be used as security for
borrowing purposes.
Assets and liabilities arising from a lease are initially measured
on a present value basis. Lease liabilities include the net
present value of the following lease payments:
• Fixed payments (including in-substance fixed payments), less
any lease incentives receivable.
• Variable lease payments that are based on an index or a rate.
• Amounts expected to be payable by the lessee under residual
value guarantees.
• The exercise price of a purchase option if the lessee is
reasonably certain to exercise that option, and
• Payments of penalties for terminating the lease, if the lease
term reflects the lessee exercising that option.
The lease payments are discounted using the interest rate
implicit in the lease. If that rate cannot be determined, the
lessee’s incremental borrowing rate is used, being the rate that
the lessee would have to pay to borrow the funds necessary
to obtain an asset of similar value in a similar economic
environment with similar terms and conditions.
To determine the incremental borrowing rate, the Group:
• Where possible, uses recent third-party financing received
as a starting point, adjusted to reflect changes in financing
conditions since third party financing was received.
• Uses a build-up approach that starts with a risk-free interest
rate adjusted for credit risk for leases held by the Group,
which does not have recent third party financing, and
• The Group is exposed to potential future increases in variable
lease payments based on an index or rate, which are not
included in the lease liability until they take effect. When
adjustments to lease payments based on an index or rate
take effect, the lease liability is reassessed and adjusted
against the right-of-use asset. Lease payments are allocated
between principal 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.
Right-of-use assets are measured at cost comprising the
following:
• The amount of the initial measurement of lease liability.
• Any lease payments made at or before the commencement
date less any lease incentives received.
• Any initial direct costs, and
• Restoration costs.
38
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 Right-of-use assets are generally depreciated over the shorter
of the asset's useful life and the lease term on a straight-
line basis. If the Group is reasonably certain to exercise a
purchase option, the right-of-use asset is depreciated over
the underlying asset’s useful life. While the Group revalues its
land and buildings that are presented within property, plant
and equipment, it has chosen not to do so for the right-of-use
buildings held by the Group.
Payments associated with short-term leases of equipment and
vehicles and all leases of low-value assets are recognised on
a straight-line basis as an expense in profit or loss. Short-term
leases are leases with a lease term of 12 months or less. Low-
value assets comprise IT equipment and small items of office
furniture.
Extension and termination options
Extension and termination options are included in a number
of property and equipment leases across the Group. These
terms are used to maximise operational flexibility in terms of
managing contracts. The majority of extension and termination
options held are exercisable only by the Group and not by the
respective lessor.
(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
from 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.
39
BEACON LIGHTING GROUP ANNUAL REPORT 2021 The Group holds the trade receivables with the objective to
collect the contractual cash flows and therefore measures
them subsequently at amortised cost using the effective
interest method. The Group 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).
40
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 property, plant and equipment is stated at historical cost
less depreciation. Historical cost includes expenditure that is
directly attributable to the acquisition of the items.
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.
Depreciation is calculated using the straight-line method
to allocate their cost, net of their residual values, over their
estimated useful lives or, in the case of leasehold improvements
and certain leased plant and equipment, the shorter lease term
as follows:
• Furniture, Fittings & Equipment 4 to 20 years.
• Motor vehicles 5 to 8 years.
• Buildings 40 years.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 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 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.
Goodwill is allocated to cash-generating units for the purpose
of impairment testing.
(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
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.
(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 management’s
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.
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.
41
BEACON LIGHTING GROUP ANNUAL REPORT 2021 (iii) Share Based Payments
(w) Dividends
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 28. 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.
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 and
excluding treasury shares.
(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 38 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.
42
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 2. 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.
The Group holds the following financial instruments:
Consolidated Entity
FINANCIAL ASSETS
Cash and cash equivalents
Trade and other receivables
FINANCIAL LIABILITIES
Trade and other payables
Borrowings
Derivative financial instruments
Lease Liabilities
FY2021
$’000
33,830
7,788
41,618
23,417
18,617
18
122,759
164,811
FY2020
$’000
44,856
8,620
53,476
22,132
30,397
855
113,318
166,702
43
BEACON LIGHTING GROUP ANNUAL REPORT 2021 (a) Market Risk
Foreign Exchange Risk
The Group operates internationally and is exposed to foreign exchange risk arising from various currency exposures, primarily with
respect to the USD.
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 purchases 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. Inventory purchases in
other currencies are insignificant.
At 27 June 2021 the average term of outstanding foreign exchange contracts is two months with an average forward rate for AUD/
USD of 0.7815.
Consolidated Entity
Forward exchange contracts - buy cash flow hedges (notional amount)
FY2021
$’000
11,972
FY2020
$’000
10,736
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 41% (2020: 61%) of the variable loan principal outstanding. The fixed interest
rate of the swap used to hedge is 2.47% (2020: 2.28% and 2.47%) and the variable rates of the loan 0.0575% (2020: 0.14% and 1.90%).
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 foreign currency and interest rate risk at the end of the reporting period, expressed in AUD is per below:
Consolidated Entity
Interest rate swap contracts - buy cash flow hedges (notional amount)
FY2021
$’000
7,688
FY2020
$’000
18,437
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
FY2021
$’000
837
FY2020
$’000
(206)
44
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 Group Sensitivity
At 27 June 2021, 41.3% (2020: 60.7%) 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 USD denominated financial
instruments and the impact on other components of equity arises from foreign forward exchange contracts designated as cash flow
hedges. Inventory purchases in other currencies are insignificant.
Impact on other components of equity
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
FY2021
$’000
(1,197)
1,197
5
(5)
FY2021
$’000
(328)
11,972
FY2020
$’000
(1,073)
1,073
7
(7)
FY2020
$’000
(267)
10,736
August 2021 to
December 2021
September 2020 to
December 2020
1:1
328
1:1
267
Weighted average strike rate for the year
USD$0.7601 : AUD$1
USD$0.7018 : 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
345
7,688
(587)
18,437
15 November 2023
15 September 2020
15 November 2023
1:1
(345)
2.47%
1:1
587
2.64%
45
BEACON LIGHTING GROUP ANNUAL REPORT 2021 (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, retail and trade 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 9.
(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
Trade finance facility
Interchange facility
Asset finance facility
Loan facility – multi currency
Loan facility – floating rate
FLOATING RATE – TOTAL UNDRAWN FACILITIES
Overdraft
Trade finance facility
Interchange facility
Asset finance facility
Loan facility – multi currency
Loan facility – floating rate
Maturities of Financial Liabilities
FY2021
$’000
FY2020
$’000
500
10,000
25,500
4,000
3,968
15,000
500
10,000
6,883
3,652
3,968
15,000
500
7,250
25,500
6,598
4,157
20,000
500
7,166
9,083
6,083
4,157
5,300
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) (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.
46
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 The amounts disclosed in the table are the contractual undiscounted cash flows.
Contractual maturities of financial liabilities including lease liabilities:
Total non-derivatives
42,070
25,263
Consolidated Entity
At 27 June 2021
NON-DERIVATIVES
Trade and other payables
Borrowings
Lease liabilities
DERIVATIVES
Forward exchange contracts
Interest rate swap contract
Net settled (cash flow hedges)
At 28 June 2020
NON-DERIVATIVES
Trade and other payables
Borrowings
Lease liabilities
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
23,417
18,653
-
-
-
25,263
328
-
328
22,132
15,728
-
-
-
-
-
-
97,680
97,680
-
(346)
(346)
-
-
-
-
-
-
-
-
-
-
23,417
18,653
23,417
18,617
122,759
122,746
164,829
164,780
328
(346)
(18)
328
(346)
(18)
22,132
31,598
22,132
30,397
1,500
14,370
-
23,242
67,725
22,351
113,318
113,289
Total non-derivatives
37,860
24,742
82,095
22,351
167,048
165,818
DERIVATIVES
Forward exchange contracts
Interest rate swap contract
Net settled (cash flow hedges)
(268)
(587)
(855)
-
-
-
-
-
-
-
-
-
(268)
(587)
(855)
(268)
(587)
(855)
47
BEACON LIGHTING GROUP ANNUAL REPORT 2021 (d) Fair Value Measurements
For information about the methods and assumptions used in determining the fair value of derivatives please refer to Note 11.
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 27
June 2021, on a recurring basis.
At 27 June 2021
Derivatives used for hedging - Net Position
Level 2
$’000
(18)
Total
$’000
(18)
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.
3. 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 mainly in USD for sales predominantly into Australia. The Group’s one reportable segment is
the selling of light fittings, fans and energy efficient products.
48
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 4. REVENUE FROM ORDINARY ACTIVITIES AND OTHER REVENUE
The Group 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 Fees - point in time.
Consolidated Entity
From Ordinary Activities
Sale of goods
Other Revenue
Franchise fees
Sundry revenue
5. OTHER INCOME
Consolidated Entity
Profit on sale of asset
Other
FY2021
$’000
FY2020
$’000
288,679
251,749
590
45
635
761
39
800
289,314
252,549
FY2021
$’000
-
182
182
FY2020
$’000
7,780
254
8,034
49
BEACON LIGHTING GROUP ANNUAL REPORT 2021 6. EXPENSES
Consolidated Entity
(a) PROFIT BEFORE INCOME TAX INCLUDES THE FOLLOWING SPECIFIC EXPENSES:
Depreciation
Plant and equipment
Depreciation – right of use assets
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
Employee benefits
Loss on closure of business unit
(b) NET FOREIGN EXCHANGE GAINS AND LOSSES
FY2021
$’000
FY2020
$’000
4,288
4,070
21,763
20,054
389
362
20
20
5,744
692
6,179
-
65,256
60,888
-
5,137
Net foreign exchange (gains)/losses recognised in profit before income tax for the period (as
either other income or expense)
217
12
50
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 7. 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% (2020: 30.0%)
Tax effect of amounts which are not deductible in calculating taxable
income:
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)
FY2021
$’000
FY2020
$’000
16,152
(220)
168
16,100
235
(15)
220
53,758
16,127
41
(68)
8,072
1,477
113
9,662
(1,428)
(49)
(1,477)
31,887
9,566
41
55
16,100
9,662
-
5,591
51
BEACON LIGHTING GROUP ANNUAL REPORT 2021 8. CASH AND CASH EQUIVALENTS
Consolidated Entity
Cash at bank and in hand
Deposits at call (a)
FY2021
$’000
33,830
-
33,830
FY2020
$’000
43,566
1,290
44,856
(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 2.
9. 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
52
FY2021
$’000
7,357
(294)
7,063
725
7,788
FY2021
$’000
6,052
571
124
610
7,357
FY2020
$’000
8,872
(615)
8,257
363
8,620
FY2020
$’000
6,581
829
432
1,030
8,872
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 (b) Provision for Impairment of Receivables
Trade receivables are non-interest bearing with terms that vary between 30 and 60 days end of month. The Group applies the AASB
9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. To
measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days
past due.
The expected loss rates are based on the payment profiles of sales over a period of 36 months before 27 June 2021 or 28 June
2020 respectively and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted
to reflect current and forward looking information on macroeconomic factors affecting the ability of the customers to settle the
receivables.
On that basis, the loss allowance as at 27 June 2021 and 28 June 2020 (on adoption of AASB 9) was determined as follows for both
trade receivables:
27 June 2021
Expected loss rate
Gross carrying amount - trade receivables ($’000)
Loss allowance ($’000)
Current
31-60 days
past due
61 - 90
days past
due
More than
90 days
past due
Total
0.1%
6,052
6
0.5%
5.00%
45.7%
571
3
124
6
610
279
7,357
294
28 June 2020
Expected loss rate
Gross carrying amount - trade receivables ($’000)
Loss allowance ($’000)
Current
31-60 days
past due
61 - 90
days past
due
More than
90 days
past due
Total
0.1%
6,581
7
0.5%
5.11%
56.5%
829
4
432
22
1,030
8,872
582
615
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.
53
BEACON LIGHTING GROUP ANNUAL REPORT 2021
(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 2.
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 2 for more information on the risk management policy of the Group and the credit quality of the entity’s trade
receivables.
10. INVENTORIES
Consolidated Entity
Inventory at lower of cost and net realizable value
Goods in transit - at cost
FY2021
$’000
64,554
3,382
67,936
FY2020
$’000
59,962
3,120
63,082
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 52 week period ended 27 June 2021 and included in cost of sales of goods amounted
to $91,345,099 (2020: $89,186,855).
Write-downs of inventories to net realisable value recognised as an expense during the 52 week period ended 27 June 2021 amounted
to $728,310 (2020: $1,210,639).
Included in the valuation of inventory is a provision for stock obsolescence of $1,532,088 (2020: $2,279,952).
Critical accounting judgements, estimates and assumptions:
The provision for slow moving inventory assessment requires a degree of estimation and judgement. The level of the provision
is assessed by taking into account the recent sales experience, the ageing of inventories and other factors that affect inventory
obsolescence.
54
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 11. DERIVATIVE FINANCIAL INSTRUMENTS
Consolidated Entity
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
FY2021
$’000
FY2020
$’000
328
(346)
(18)
(18)
(268)
(587)
(855)
(855)
The Group’s risk exposures are provided in Note 2.
Forward Exchange Contracts and Interest Rate Swaps– Cash Flow Hedges
The Group purchases products in USD. In order to protect against exchange rate movements, the Group has entered into forward
exchange contracts to purchase USD 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 52 weeks ended 27 June 2021 there were no gains or losses (2020: 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 FY2021 or FY2020 in relation to the interest rate swaps.
55
BEACON LIGHTING GROUP ANNUAL REPORT 2021 Hedge reserves
The Group’s hedging reserves disclosed in Note 25 relate to the following hedging instruments:
Consolidated Entity
Opening balance 30 June 2019
Add Change in fair value of hedging instrument
recognised in Other Comprehensive Income
Less Deferred Tax
Closing balance 28 June 2020
Add Change in fair value of hedging instrument
recognised in Other Comprehensive Income
Less Deferred Tax
Closing balance 27 June 2021
Currency
Forwards
$'000
Interest Rate
Swaps
$'000
Total Hedge
Reserves
$'000
(42)
(323)
(97)
(268)
851
255
328
(607)
29
9
(587)
344
103
(346)
(649)
(294)
(88)
(855)
1,195
358
(18)
56
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 12. OTHER CURRENT ASSETS
Consolidated Entity
Prepayments and other current assets
FY2021
$’000
1,337
FY2020
$’000
1,496
13. PROPERTY, PLANT AND EQUIPMENT AND INVESTMENT PROPERTIES
Consolidated Entity
Year ended 28 June 2020
Opening net book amount
Additions
Disposals
Adjustment for change in accounting policy
Depreciation charge
Closing net book amount
At 28 June 2020
Cost
Accumulated depreciation
Net book amount
Year ended 27 June 2021
Opening net book amount
Additions
Disposals
Depreciation charge
Closing net book amount
At 27 June 2021
Cost
Accumulated depreciation
Net book amount
Investment
Properties
$’000
Furniture,
Fittings and
Equipment
$’000
Vehicles
$’000
Land and
Buildings
$’000
Total
$’000
-
-
-
-
-
-
-
-
-
-
15,212
(15,212)
-
-
-
-
-
31,707
1,733
12,569
46,009
3,457
(1,098)
(497)
(4,009)
417
(15)
(136)
(362)
2,441
6,315
(13,299)
(14,412)
-
(61)
(633)
(4,432)
29,560
1,637
1,650
32,847
54,040
3,576
1,673
59,289
(24,480)
(1,940)
(22)
(26,442)
29,560
1,636
1,651
32,847
29,560
1,636
1,651
32,847
7,428
(804)
(4,255)
31,929
476
(25)
(389)
1,698
7
-
23,123
(16,041)
(33)
(4,677)
1,625
35,252
59,575
3,646
1,673
64,894
(27,646)
(1,948)
(48)
(29,642)
31,929
1,698
1,625
35,252
57
BEACON LIGHTING GROUP ANNUAL REPORT 2021 14. INVESTMENT IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD
Consolidated Entity
Shares in associates at carrying amount at start of period
Acquisitions
Carrying amount at end of period
Refer to note 34(b) for details of the Group’s associates
FY2021
$’000
-
15,241
15,241
FY2020
$’000
-
-
-
58
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 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
Lease liabilities
Other provisions/accruals
Total deferred tax assets
GROSS DEFERRED TAX LIABILITIES
The balance comprises temporary differences attributable to:
Right of use asset
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
7)
Charged/(credited) amounts recognised on acquisitions
Charged/(credited) amounts recognised directly in equity
Net deferred tax assets
FY2021
$’000
FY2020
$’000
2,408
1,103
668
88
613
501
37,153
1,614
44,148
30,619
1
30,620
13,403
(220)
345
-
13,528
2,170
1,268
808
184
524
450
33,380
1,061
39,845
26,426
16
26,442
5,834
1,477
501
5,591
13,403
59
BEACON LIGHTING GROUP ANNUAL REPORT 2021 16. INTANGIBLE ASSETS
Consolidated Entity
Year ended 28 June 2020
Opening net book amount
Additions
Amortisation charge for the year
Closing net book amount
At 28 June 2020
Cost
Accumulated amortisation
Net book amount
Year ended 27 June 2021
Opening net book amount
Additions
Amortisation charge for the year
Closing net book amount
At 27 June 2021
Cost
Accumulated amortisation
Net book amount
Goodwill
$’000
Patents,
Trademarks and
Other Rights
$’000
11,446
1,327
-
12,773
12,773
-
12,773
12,773
805
-
13,578
13,578
-
13,578
200
-
(20)
180
500
(320)
180
180
-
(20)
160
500
(340)
160
Total
$’000
11,646
1,327
(20)
12,953
13,273
(320)
12,953
12,953
805
(20)
13,738
14,078
(340)
13,738
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.
60
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 (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 3).
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
2021
%
65.0
2020
%
64.0
2021
%
3.0
2020
%
3.0
2021
%
9.1
2020
%
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
FY2021
$’000
9,167
4,375
7,218
1,670
987
FY2020
$’000
9,818
3,494
6,586
1,500
734
23,417
22,132
(a) Risk Exposure
Information about the Group’s exposure to foreign exchange risk is provided in Note 2.
(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.
61
BEACON LIGHTING GROUP ANNUAL REPORT 2021 18. CURRENT BORROWINGS
Consolidated Entity
Secured
Trade finance (a)
Loan facility floating rate (b)
Interchange facility (c)
(a) Trade Finance
FY2021
$’000
-
-
18,617
18,617
FY2020
$’000
84
1,500
15,613
17,197
The Group utilises trade finance facilities to fund inventory. The total available facility in FY2021 was $10,000,000. The interest rate is
the base rate plus a margin for the drawing term. The term of the facility is one year.
(b) Loan Facility – Floating Rate
The Group utilises floating rate loan facilities to fund business activities. The total available facility is $15,000,000. The interest rate is
BBSY plus a margin and this facility has a term of two years.
(c) Interchange Facility
The Group utilises the interchange facility to fund inventory and other activities of the Group. The total available facility is $25,500,000.
The interest rate is the base rate plus a margin for the drawing term. The term of the facility is two years and was entered into during
FY2021.
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 2.
19. CURRENT PROVISIONS
Consolidated Entity
Employee benefits (a)
Warranty provision (b)
Other provisions (c)
62
FY2021
$’000
7,121
1,570
722
9,413
FY2020
$’000
6,270
1,351
476
8,097
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 (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
FY2021
$’000
5,339
FY2020
$’000
4,229
(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.
Critical accounting judgements, estimates and assumptions:
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 differ by 10% from management’s estimates, the warranty provision would be an estimated
$157,000 (2020: $135,000) 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
FY2021
$’000
1,351
219
1,570
FY2021
$’000
476
796
(550)
722
FY2020
$’000
1,452
(101)
1,351
FY2020
$’000
136
1,426
(1,086)
476
63
BEACON LIGHTING GROUP ANNUAL REPORT 2021 20. CURRENT TAX LIABILITIES
Consolidated Entity
Provision for income tax*
*FY2020 provision for income tax includes 100% of tax payable on the profit on the sale of Parkinson Distribution Centre
21. NON CURRENT BORROWINGS
Consolidated Entity
Secured
Loan facility floating rate (a)
(a) Loan Facility Floating Rate
FY2021
$’000
2,666
FY2020
$’000
4,464
FY2021
$’000
FY2020
$’000
-
13,200
The Group utilises floating rate loan facilities to fund business acquisitions. The term of the facility is two years
Secured Liabilities and Asset Security
The Group’s liabilities are secured by general security agreements and a 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.
• The borrowing base is not more than 60%.
• The distribution does not exceed 70% of NPAT.
The Group has complied with the financial covenants of its borrowing facilities during the 52 weeks ended 27 June 2021 and the 52
weeks ended 28 June 2020.
Risk Exposures
Information about the Group’s exposure to interest rate and foreign exchange risk is provided in Note 2.
64
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 22. NON CURRENT PROVISIONS
Consolidated Entity
Employee benefits
23. LEASES
This note provides information for leases where the Group is a lessee.
Amounts recognized in the balance sheet
The balance sheet shows the following amounts relating to leases:
Consolidated Entity
Right of use assets
Buildings
Equipment
Vehicles
Lease liabilities
Current
Non current
Amounts recognized in the statement of profit or loss
Consolidated Entity
Depreciation charge right of use assets
Equipment
Vehicles
Buildings
Lease liabilities
Interest expense
FY2021
$’000
939
FY2020
$’000
983
FY2021
$’000
FY2020
$’000
100,155
88,086
471
120
497
136
100,746
88,719
25,079
97,680
122,759
FY2021
$’000
26
16
21,721
21,763
4,423
4,423
23,242
90,076
113,318
FY2020
$’000
26
16
20,012
20,054
4,078
4,078
65
BEACON LIGHTING GROUP ANNUAL REPORT 2021 Total cash outflows for leases for the period ended 27 June 2021 were $27,696,918
Additions made to the Right of use asset during the year were $35,258,678
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.
Critical judgements in determining the lease term
In determining the lease term, management considers all facts and circumstances that create an economic incentive to exercise an
extension option, or not exercise a termination option. Extension options (or periods after termination options) are only included in the
lease term if the lease is reasonably certain to be extended (or not terminated). The assessment is reviewed if a significant event or a
significant change in circumstances occurs which affects this assessment and that is within the control of the lessee.
The Group considers factors including historical lease durations and the costs and business disruption required to replace the leased
asset. As at 27 June 2021, potential future cash outflows of $95,352,000 (undiscounted) have not been included in the lease liability
because it is not reasonably certain that the leases will be extended (or not terminated).
The lease term is reassessed if an option is actually exercised (or not exercised) or the Group becomes obliged to exercise (or not
exercise) it. The assessment of reasonable certainty is only revised if a significant event or a significant change in circumstances
occurs, which affects this assessment, and that is within the control of the lessee. During the current financial year, the financial
effect of revising lease terms to reflect the effect of exercising extension and termination options was an increase in recognised lease
liabilities and right-of-use assets of $13,662,000.
66
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 24. CONTRIBUTED EQUITY
Consolidated Entity
FY2021
FY2020
Number of ordinary shares, fully paid
223,321,406
221,537,880
Consolidated Entity
Movements in ordinary share capital
Balance at the beginning of the year
Dividend reinvestment plan share issue
Balance at the end of the year
FY2021
$’000
70,258
2,054
72,312
FY2020
$’000
68,229
2,029
70,258
Consolidated Entity
FY2021
FY2020
Movements in the number of ordinary shares
Balance at the beginning of the year
Dividend reinvestment plan share issue
Balance at the end of the year
221,537,880
219,214,930
1,783,526
2,322,950
223,321,406
221,537,880
Ordinary Shares
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.
Consistent 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.
67
BEACON LIGHTING GROUP ANNUAL REPORT 2021 25. 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
Total Other Reserves
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
68
FY2021
$’000
(18)
(297)
740
(108)
(43,672)
(43,355)
(855)
837
(18)
(11)
(286)
(297)
882
(142)
740
89
(197)
(108)
FY2020
$’000
(855)
(11)
882
89
(43,672)
(43,567)
(649)
(206)
(855)
456
(467)
(11)
726
156
822
(192)
281
89
(43,672)
(43,672)
-
-
(43,672)
(43,672)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 Nature and Purpose of Other Reserves
Foreign Currency Translation Reserve
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:
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.
• The grant date fair value of rights issued to employees but
not exercised.
Common Control Reserve
• The grant date fair value of shares issued to employees.
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
Adjustment due to change in accounting policy
Opening balance re-stated
Net profit for the period
Dividends paid
FY2021
$’000
FY2020
$’000
60,277
-
60,277
37,658
(14,696)
83,239
58,282
(10,121)
48,161
22,225
(10,109)
60,277
69
BEACON LIGHTING GROUP ANNUAL REPORT 2021 26. DIVIDENDS
(a) Ordinary Shares
Consolidated Entity
Final dividend for period ended 28 June 2020 of 2.40 cents (2019: 2.00 cents) per
fully paid share
Interim dividend for period ended 27 June 2021 of 4.20 cents (2020: 2.60 cents)
per fully 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
Dividend Reinvestment Plan
The Group Dividend Reinvestment Plan was suspended in FY2021.
(b) Dividends not recognised at the End of the Reporting Period
FY2021
$’000
FY2020
$’000
5,317
4,385
9,379
14,696
12,642
2,054
14,696
5,724
10,109
8,080
2,029
10,109
Consolidated Entity
In addition to the above dividends, since year end the Directors have
recommended the payment of a final dividend of 4.60 cents per fully paid
ordinary share (2020: 2.40 cents), fully franked based on tax paid at 30%.
The proposed dividend is to be paid out of retained earnings at 27 June 2021,
but not recognised as a liability at year end.
FY2021
$’000
FY2020
$’000
10,272
5,320
70
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 c) Franked Dividends
The franked portions of the final dividends recommended after 27 June 2021 will be franked out of existing franking credits or out of
franking credits arising from the payment of income tax in the 52 week period ended 27 June 2021.
Consolidated Entity
Franking credits available for subsequent reporting periods based on a tax rate of
30.0% (2020: 30.0%)
FY2021
$’000
FY2020
$’000
50,788
41,586
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.
• 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.
27. 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
FY2021
$
FY2020
$
1,402,311
1,333,512
104,173
(1,666)
514,000
195,845
101,405
(14,845)
357,274
61,740
2,214,663
1,839,086
Detailed remuneration disclosures are provided in the Remuneration Report on pages 20 to 28.
28. SHARE BASED PAYMENTS
(a) Executive Short Term Incentive Scheme
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, except at the discretion of the Directors.
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.
71
BEACON LIGHTING GROUP ANNUAL REPORT 2021 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
FY2021
FY2020
99,074
$1.08
FY2021
138,889
$1.08
-
-
FY2020
-
-
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 52 weeks ended 27 June 2021 included:
Exercise price
Grant date
Share price at grant date
Expected dividend yield
FY2021
$0.00
20 August 2020
$1.08
4.25%
FY2020
-
-
-
-
The expected volatility of the Group'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
FY2021
$0.00
20 August 2020
$1.08
4.25%
FY2020
-
-
-
-
The expected volatility of the Group's shares and the risk free interest rate do not have a material impact on the fair value calculation
of the options granted.
72
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 (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:
FY2021
$’000
FY2020
$’000
Performance rights and options issued under employee STI plans
238
81
29. EARNINGS PER SHARE
Consolidated Entity
FY2021
FY2020
Basic earnings per share - cents
Diluted earnings per share - cents
16.94
16.92
10.11
10.10
Weighted average number of ordinary shares used as the denominator in
calculating basic earnings per share
222,319,208
219,877,368
Weighted average number of ordinary shares and potential ordinary shares used
as the denominator in calculating diluted earnings per share
222,505,374
220,033,386
30. REMUNERATION OF AUDITORS
During the period the following fees were paid or payable for services provided by PricewaterhouseCoopers, auditor of the parent
entity.
Consolidated Entity
Audit and assurance services
FY2021
$
FY2020
$
Audit and review of financial statements
252,700
248,600
Other services:
Taxation services
Other services
Total remuneration of PwC
31. CONTINGENCIES
44,300
8,745
305,745
32,000
17,200
297,800
There were no significant or material contingent liabilities including legal claims at 27 June 2021 or 28 June 2020.
73
BEACON LIGHTING GROUP ANNUAL REPORT 2021 32. COMMITMENTS
(a) 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 23)
Non-current (Note 23)
FY2021
$’000
FY2020
$’000
183
178
361
(13)
348
173
175
348
182
361
543
(28)
515
167
348
515
(b) Significant capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is $1.9m (2020:
$0.2m).
33. RELATED PARTY TRANSACTIONS
(a) Subsidiaries
Interests in subsidiaries are set out in Note 34.
(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
FY2021
$
FY2020
$
Purchases of goods and supply of services from other related parties
14,850
26,381
Other transactions
Income received from other related parties
Rent paid to other related parties
12,164
1,462
1,008,318
1,584,638
Payments for equity interest in associate
(15,240,000)
-
74
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 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 2024.
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 $253,176 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 $94,628 per annum increasing by CPI annually. The lease expired on 1 September 2019 and is being held over on month to
month arrangements.
The Robinson family had a 100% interest as the owner of the Derrimut Distribution Center leased by Beacon Lighting on arms length
terms. The rent was $1,131,484 per annum. The property was sold to a third party during FY 2021.
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. The Beacon Lighting Group provides management services to Carbonetix
which are charged at an arms length terms.
The Large Format Property Fund was established to acquire properties for the purpose of leasing them to Beacon Lighting and other
large format retailers. The Beacon Lighting Group has invested $15,225,500 in this Fund.
The Large Format Property Fund is currently 50% owned by the Beacon Lighting Group and 50% owned by Rebeach Pty Ltd which
is controlled by the Robinson Family. During FY2021 the Fund established four sub funds to acquire four properties.
During FY2021, Farrlong Pty Ltd as trustee for the Bacalla Trust which is controlled by the Robinson Family subscribed for 55% of the
shares of Large Format Management Company Pty Ltd which is the trustee, property manager and fund manager of the Large Format
Property Fund. The Beacon Lighting Group holds the remaining 45% (previously 100%).
Accordingly, the Large Format Management Company Pty Ltd and the Large Format Property Fund are recognised at 27 June 2021
in the accounts of the Beacon Lighting Group as investments in associates applying the equity method of accounting rather than on
a consolidated basis.
The Large Format Property Fund has a 100% interest as owner of the Cannington store leased by Beacon Lighting on arms length
terms. The current rent is $220,000 per annum increasing by 3% annually. The lease expires in 2027 with one further right of renewal
for a period of five years.
(d) Outstanding Balances
As at 27 June 2021 Carbonetix Pty Ltd owed the Group $27,009 (2020: $54,511).
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.
75
BEACON LIGHTING GROUP ANNUAL REPORT 2021 34. SUBSIDIARIES
(a) The consolidated financial report incorporates 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)
2021 %
2020 %
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
Beacon Lighting Europe GmbH
New Zealand
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
Light Source Solutions Limited
Beacon International Limited
Beacon Lighting International
China
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.
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
76
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 (b) Interests in Associates
Set out below are the associates of the Beacon Lighting Group which in the opinion of the Directors are material to the Group. The
entities listed below have share capital consisting of ordinary shares and units issued which are held directly by the Beacon Lighting
Group. The country of incorporation or registration is also their principal place of business and the proportion of ownership interest is
the same as the proportion of voting rights held.
Name of Entity
Place of
Incorporation
Measurement
Method
Large Format Management Company Pty Ltd
Large Format Property Fund
Large Format Property Subfund (Southport Nerang Road)
Large Format Property Subfund (Argyle Street)
Large Format Property Subfund (William Street)
Large Format Property Subfund (Parramatta Road)
Australia
Australia
Australia
Australia
Australia
Australia
Equity
Equity
Equity
Equity
Equity
Equity
The combined carrying value of the investment in associates at 27 June 2021 was $15,241,000 (FY2020 : $0)
% Ownership
Interest
2021 %
45
50
50
50
50
50
77
BEACON LIGHTING GROUP ANNUAL REPORT 2021 (i) Summarised Financial Information for Associates
The tables below provide summarized financial information for those associates that are material to the group. The information
disclosed reflects the amounts presented in the financial statements of the relevant associates and not Beacon Lighting Group Limited
share of those amounts.
Balance sheet
Current assets
Cash and cash equivalents
Trade and other receivables
Other current assets
Total current assets
Non-current assets
Property, plant and equipment
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Total current liabilities
Non-current liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Retained earnings / Undistributed profits
Total equity
Large Format Management
Company Pty Ltd
Large Format Property Fund
FY2021
$’000
FY2020
$’000
FY2021
$’000
FY2020
$’000
152
-
3
155
-
-
155
-
-
-
-
155
200
(44)
155
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,260
1,288
34
3,582
28,093
28,093
31,675
1,167
1,167
-
1,167
30,508
30,451
57
30,508
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
78
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 (ii) Summarised Statement of Comprehensive Income for Associates
Statement of comprehensive income
Revenue
Other expenses
Interest income
Depreciation and amortisation
Interest expense
Income tax expense
(Loss) / Profit from continuing
operations
(Loss) / Profit for the period
Other comprehensive income
Total comprehensive income
Large Format Management
Company Pty Ltd
Large Format Property Fund
FY2021
$’000
15
(59)
-
-
-
-
(44)
(44)
-
(44)
FY2020
$’000
-
-
-
-
-
-
-
-
-
-
FY2021
$’000
264
(206)
-
-
-
-
58
58
-
58
FY2020
$’000
-
-
-
-
-
-
-
-
-
-
35. EVENTS OCCURRING AFTER THE REPORTING PERIOD
During July and August 2021, significant trading restrictions have been implemented across Australia which has impacted upon the
results. Generally, retail and trade customers can continue shopping online and avail themselves to home delivery or contact free click
and collect. This has had no material effect on the financial statements for the 52 weeks ended 27 June 2021.
Ian Bunnett, Managing Director – Sales has resigned and will be leaving the Beacon Lighting Group in August 2021. His responsibilities
have been allocated to other executives.
A fully franked dividend of $10,272,785 was declared on 18 August 2021.
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.
79
BEACON LIGHTING GROUP ANNUAL REPORT 2021 36. 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 gain / (loss) on disposal of non-current assets
Amortisation
Impairment of fixed assets
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
FY2021
$’000
37,658
26,399
692
20
481
238
217
832
(4,855)
(124)
979
(788)
(1,798)
1,272
61,223
Consolidated Entity
Leases due
within 1 year
$’000
Leases due
after 1 year
$’000
Borrowings
due within 1
year
$’000
Borrowings
due after 1
year
$’000
FY2020
$’000
22,225
24,444
(7,836)
20
335
81
12
3,434
5,615
(1,824)
(456)
4,976
3,806
519
55,351
Total
$’000
Balance as at 30 June 2019
(426)
(515)
(31,055)
(18,944)
(50,940)
Adjustment due to change
in accounting policy*
(21,679)
(83,574)
-
-
(105,253)
(22,105)
(84,089)
(31,055)
(18,944)
(156,193)
Cash flows
(1,137)
(5,987)
13,857
5,744
12,477
Balance as at 28 June 2020
(23,242)
(90,076)
(17,198)
(13,200)
(143,716)
Balance as at 28 June 2020
(23,242)
(90,076)
(17,198)
(13,200)
(143,716)
Cash flows
(1,837)
(7,604)
(1,419)
13,200
2,340
Balance as at 27 June 2021
(25,079)
(97,680)
(18,617)
-
(141,376)
*Applicable from FY2020 due to adoption of AASB 16
80
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 37. 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.
The areas that involve a higher degree of judgement or complexity, and items which are more likely to be materially adjusted due to
estimates and assumptions turning out to be wrong are detailed in Note 10, 19 and 23. The Group has assessed the calculation of
inventory valuation, warranty provision and lease liabilities to be critical accounting estimates.
38. PARENT ENTITY FINANCIAL INFORMATION
(a) Summary Financial Information
The individual financial report for the parent entity show the following aggregate amounts:
BEACON LIGHTING GROUP LIMITED
FY2021
$’000
FY2020
$’000
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
(b) Contingent Liabilities of the Parent Entity
The parent entity did not have any contingent liabilities as at 27 June 2021 or 28 June 2020.
35,879
88,675
124,554
2,239
8
2,247
32,055
88,483
120,538
2,213
-
2,213
122,307
118,325
96,628
28
25,651
122,307
1,778
1,778
94,575
181
23,569
118,325
3,271
3,271
81
BEACON LIGHTING GROUP ANNUAL REPORT 2021 39. 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 52 weeks ended 27 June 2021 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
FY2021
$’000
55,821
(5,100)
50,721
(15,524)
35,197
-
-
-
FY2020
$’000
21,187
(3,988)
17,199
(5,420)
11,778
221
(66)
155
Total comprehensive income for the period attributable to the members of
the closed Group
35,197
11,934
82
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 CONSOLIDATED BALANCE SHEET OF THE CLOSED GROUP
Beacon Lighting Group Limited and Beacon Lighting Corporation Pty Ltd
FY2021
$’000
FY2020
$’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
2,887
685
-
-
63,065
66,637
13,433
85,874
99,307
3,071
2,131
-
-
51,588
56,790
13,168
70,634
83,802
165,944
140,592
1,586
1,146
-
-
656
2,440
4,682
3,432
3,432
8,114
-
-
652
286
2,084
3,080
3,080
5,164
157,830
135,428
72,271
28
85,531
157,830
70,217
181
65,030
135,428
83
BEACON LIGHTING GROUP ANNUAL REPORT 2021 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY OF THE CLOSED GROUP
Contributed
equity
$’000
Reserves
$’000
Retained
earnings
$’000
Total equity
$’000
Beacon Lighting Group Ltd and
Beacon Lighting Corporation
Balance as at 30 June 2019
Adjustment for change in accounting policy
Restated balance at prior year
Profit for the year
Other comprehensive income
Total comprehensive income for the period
Transactions with owners in their capacity as owners:
68,224
-
68,224
-
-
-
Issue of shares via dividend reinvestment plan
1,993
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 28 June 2020
-
-
-
-
1,993
70,217
84
-
84
-
155
155
-
-
(339)
281
-
(58)
181
73,471
141,779
(10,110)
(10,110)
63,361
131,669
11,778
11,778
-
155
11,778
11,933
-
-
-
-
1,993
-
(339)
281
(10,109)
(10,109)
(10,109)
(8,174)
65,030
135,428
Balance as at 28 June 2020
70,217
181
65,030
135,428
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 reinvestment plan
2,054
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 27 June 2021
-
-
-
-
2,054
72,271
-
-
-
-
-
39
(192)
35,197
35,197
-
-
35,197
35,197
-
-
-
-
2,054
-
39
(191)
-
(14,696)
(14,696)
(153)
(14,696)
(12,795)
28
85,532
157,830
84
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 27 June 2021 and the 52 weeks ended 28 June 2020 Beacon Lighting Group and its controlled entities.BEACON LIGHTING GROUP ANNUAL REPORT 2021 DIRECTORS'
Declaration
In the opinion of the Directors:
(a)
The Financial Statements, notes and the additional disclosures set out on pages 30 to 84 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 27 June 2021 and of its performance for the
52 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 39,
(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, 18 August 2021
Glen Robinson
Chief Executive Officer
85
BEACON LIGHTING GROUP ANNUAL REPORT 2021
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BEACON LIGHTING GROUP LIMITED
Independent auditor’s report
To the members of Beacon Lighting Group Limited
Report on the audit of the financial report
Our opinion
In our opinion:
The accompanying financial report of Beacon Lighting Group Limited (the Company) and its
controlled entities (together the Group) is in accordance with the Corporations Act 2001, including:
(a) giving a true and fair view of the Group's financial position as at 27 June 2021 and of its
financial performance for the 52 week period (the period) then ended
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
What we have audited
The Group financial report comprises:
•
•
•
•
•
•
the consolidated balance sheet as at 27 June 2021
the consolidated statement of comprehensive income for the period then ended
the consolidated statement of changes in equity for the period then ended
the consolidated statement of cash flows for the period then ended
the notes to the consolidated financial statements, which include significant accounting policies
and other explanatory information
the directors’ declaration.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the financial
report section of our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Independence
We are independent of the Group in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional & Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also
fulfilled our other ethical responsibilities in accordance with the Code.
PricewaterhouseCoopers, ABN 52 780 433 757
2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331, MELBOURNE VIC 3001
T: 61 3 8603 1000, F: 61 3 8603 1999, www.pwc.com.au
Liability limited by a scheme approved under Professional Standards Legislation.
86
BEACON LIGHTING GROUP ANNUAL REPORT 2021 Our audit approach
An audit is designed to provide reasonable assurance about whether the financial report is free from
material misstatement. Misstatements may arise due to fraud or error. They are considered material if
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial report.
We tailored the scope of our audit to ensure that we performed enough work to be able to give an
opinion on the financial report as a whole, taking into account the geographic and management
structure of the Group, its accounting processes and controls and the industry in which it operates.
Materiality
Audit scope
•
•
Our audit focused on where the Group made
subjective judgements; for example, significant
accounting estimates involving assumptions and
inherently uncertain future events.
The Group sells lighting products to customers
primarily in Australia. The products are held at
the Group’s warehouses and stores throughout
Australia and several overseas locations. The
accounting processes are structured around a
Group finance function at its corporate head
office in Melbourne.
•
For the purpose of our audit we used overall
Group materiality of $2.68 million, which
represents approximately 5% of the Group’s
profit before tax.
• We applied this threshold, together with
qualitative considerations, to determine the scope
of our audit and the nature, timing and extent of
our audit procedures and to evaluate the effect of
misstatements on the financial report as a whole.
• We chose Group profit before tax because, in our
view, it is the benchmark against which the
performance of the Group is most commonly
measured.
• We utilised a 5% threshold based on our
professional judgement, noting it is within the
range of commonly acceptable thresholds.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report for the current period. The key audit matters were addressed in the
context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do
not provide a separate opinion on these matters. Further, any commentary on the outcomes of a
particular audit procedure is made in that context. We communicated the key audit matters to the
Audit and Risk Committee.
87
BEACON LIGHTING GROUP ANNUAL REPORT 2021 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BEACON LIGHTING GROUP LIMITED
Key audit matter
How our audit addressed the key audit
matter
Existence and valuation of inventories
(Refer to note 10)
Inventory management is a key business process for
the Group. Inventory represents a significant asset on
the consolidated balance sheet at $67.9m. The
inventory is held at Group managed and third party
distribution centres in Australia and overseas, within
stores or in transit to those locations.
Inventory is valued at the lower of cost or net
realisable value. This valuation is determined net of a
provision, which is applied where the Group believes
there is risk that the costs incurred in buying and
preparing inventory for sale will not be realised
through sale. This provision is made by the Group
throughout the period based on identified slow
moving and obsolete inventory.
We considered this a key audit matter due to the:
● financial significance of the inventory balance in
the consolidated balance sheet
We developed an understanding of the controls over
inventory and assessed whether they were
appropriately designed and were operating
effectively throughout the period, to the extent
relevant to our audit.
We performed the following procedures, amongst
others:
●
●
●
●
Traced a sample of inventory items from the
Group’s inventory listing back to original
invoices and shipping documents.
Examined the appropriateness of the type of
supply chain costs included in the cost of
inventory.
For a sample of inventory items, re-performed
the system generated calculation of the weighted
average cost of the individual inventory item.
Re-performed a sample of inventory counts at
selected locations that included attendance at
the Group’s distribution centres in Melbourne
and Brisbane and selected stores.
● judgement required by the Group to determine
which costs should be included in the cost of
inventory.
● Obtained confirmations from a sample of third
parties regarding the existence of inventory held
at third party locations.
● judgement required by the Group to estimate
future selling prices to determine the net realisable
value of inventory on hand
●
●
●
Inspected the sales price of a sample of
inventory items sold during July 2021 to
determine whether items sold below cost were
included in the Group's inventory net realisable
value provision.
Examined the appropriateness of the
methodology and performed tests to evaluate
the reliability and relevance of underlying data
used to calculate the inventory obsolescence
provision and assessed whether it was
consistent with the Group’s accounting policy.
Evaluated the appropriateness of inventory
obsolescence provision by considering the gross
margins recognised by the Group and the
inventory turnover ratio and ageing, and
compared the provision to the provision
recognised in the prior period.
88
BEACON LIGHTING GROUP ANNUAL REPORT 2021 How our audit addressed the key audit
matter
We performed the following procedures, amongst
others:
•
•
•
•
•
developed an understanding of the purpose,
terms and conditions of the change of
ownership of the Management Company
by:
o
o
reading the Unitholders’
Agreement, Shareholders
Agreement, minutes of meetings
of the Board and other relevant
documents
holding discussions with
management, the Group’s
directors and legal adviser
assessed the Group’s accounting treatment
and key judgements made in the
determination of control of the Fund and
Management Company prior to and after
the change in ownership structure, in
accordance with Australian Accounting
Standards.
agreed the property acquisitions during the
year to supporting evidence and assessed
whether the acquisitions were accounted
for in accordance with the Australian
Accounting Standards.
assessed the appropriateness, completeness
and accuracy of accounting of the Group’s
loss of control of the Fund and
Management Company including the
measurement of its retained interest in the
Fund, in accordance with the requirements
of Australian Accounting Standards.
assessed the reasonableness of disclosures
in Note 33 in light of the requirements of
Australian Accounting Standards.
Key audit matter
Accounting and disclosure of the Group's
investment in related party property entities
(Refer to note 33)
During the period, the Group invested $15.2m in the
Large Format Property Fund (the Fund), with the
objective of acquiring properties for the purpose of
leasing to the Group’s stores and third party large
format retailers. The Fund is 50% owned by the
Group and 50% owned by Rebeach Pty Ltd (an entity
controlled by Ian Robinson, Executive Chairman and
majority shareholder of the Group). The Fund
acquired four properties during the year.
The Large Format Management Company Pty Ltd
(Management Company) was established as the
trustee, property manager and fund manager of the
Fund. Its responsibilities include managing and
directing the activities of the Fund.
On 24 June 2021, Farrlong Pty Ltd as trustee for the
Bacalla Trust which is controlled by the Robinson
Family subscribed for 55% of the shares of the
Management Company. The Group owns the
remaining 45%. Prior to 24 June 2021 the Group held
100% and was considered to control the Fund and
Management Company. Accordingly, the Fund and
Management Company were consolidated into the
Group’s results. Subsequent to 24 June 2021 the
Group accounted for its interest in the Fund and
Management Company as an investment in associate,
applying the equity method of accounting.
We considered this as a key audit matter due to the:
•
•
financial significance of the Group’s
investment in the Fund
disclosure of related parties involvement in
the arrangement
judgement involved in assessment of
control and determination of appropriate
accounting for the loss of control of the
Fund and Management and for the Group’s
remaining share in the Fund and
Management in accordance with Australian
Accounting Standards.
89
BEACON LIGHTING GROUP ANNUAL REPORT 2021 INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BEACON LIGHTING GROUP LIMITED
Other information
The directors are responsible for the other information. The other information comprises the
information included in the annual report for the 52 week period ended 27 June 2021, but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit, or otherwise appears to be materially misstated.
If, based on the work we have performed on the other information that we obtained prior to the date of
this auditor’s report, we conclude that there is a material misstatement of this other information, we
are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the financial report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of the financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf. This description forms part of
our auditor's report.
90
BEACON LIGHTING GROUP ANNUAL REPORT 2021 Report on the remuneration report
Our opinion on the remuneration report
We have audited the remuneration report included in pages 20 to 28 of the directors’ report for the 52
week period ended 27 June 2021.
In our opinion, the remuneration report of Beacon Lighting Group Limited for the 52 week period
ended 27 June 2021 complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the remuneration report, based on our audit conducted in accordance with
Australian Auditing Standards.
PricewaterhouseCoopers
Jason Perry
Partner
Melbourne
18 August 2021
91
BEACON LIGHTING GROUP ANNUAL REPORT 2021 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
At 16 July 2021, the distribution of shareholdings was as follows:
Size of Shareholding
Number of Shareholders
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
317
443
306
626
71
1,763
-
(b) Substantial Shareholdings
The number of shares held by the substantial shareholders listed in the Company’s register of substantial shareholders as at 16 July
2021 were:
Shareholder
Number of Shares
% Held
Heystead Nominees Pty Ltd (including
Robinson Family members)
123,890,740
55.48%
92
BEACON LIGHTING GROUP ANNUAL REPORT 2021 (c) Class of Shares and Voting Rights
At 16 July 2021, there were 1,763 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 16 July 2021:
Rank
Name
Units
% Units
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
HEYSTEAD NOMINEES PROPRIETARY LIMITED
123,262,894
55.20%
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
27,941,969
12.51%
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
CITICORP NOMINEES PTY LIMITED
NATIONAL NOMINEES LIMITED
RELIABLE BUSINESS CO LTD
KJA HOLDINGS PTY LTD
BARRIJAG PTY LIMITED
14,301,018
11,391,876
6,885,503
1,675,479
1,482,739
1,000,000
6.40%
5.10%
3.08%
0.75%
0.66%
0.45%
BANJO SUPERANNUATION FUND PTY LTD
561,000
0.25%
UBS NOMINEES PTY LTD
BNP PARIBAS NOMS PTY LTD
D & G RITCHIE SUPER PTY LTD
CARINDA PTY LTD
MR ALISTAIR CAMPBELL
BLUE BOAT HOLDINGS PTY LTD
NEWECONOMY COM AU NOMINEES PTY LIMITED <900 ACCOUNT>
MR WAYNE FRANCIS WODE
BENAN PTY LTD
PHED PTY LTD
523,781
0.23%
514,760
500,000
0.23%
0.22%
478,000
0.21%
407,075
380,000
342,981
300,000
280,000
277,500
0.18%
0.17%
0.15%
0.13%
0.13%
0.12%
0.12%
CS THIRD NOMINEES PTY LIMITED
275,086
Total 20 holders of ISSUED CAPITAL
192,781,661
86.32%
Total Remaining Holders Balance
Total Shareholders
30,539,745
13.68%
223,321,406
100.00%
93
BEACON LIGHTING GROUP ANNUAL REPORT 2021
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.beaconinternational.com
www.customlighting.com.au
www.lightsourcesolutions.com.au
www.lightsourcesolutions.co.nz
www.lucciair.com
www.fanaway.com
www.massonforlight.com.au
www.beaconlighting.us
www.beaconlighting.eu
www.connectedlightsolutions.com.au
94
BEACON LIGHTING GROUP ANNUAL REPORT 2021 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
1-49 Raglan St
Watergardens
Homemaker Centre
440 Keilor-Melton Hwy
Waurn Ponds
Homemaker Centre
235 Colac Rd
(Princes Hwy)
NSW
Albury Wodonga
Harvey Norman Centre
94 Borella Rd
Albury
Alexandria
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
Camperdown
139-143 Parramatta 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
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
Lake Haven Drv
Marsden Park
Home Hub
9 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
Penrith
Cnr Mulgoa Rd
& Wolseley St
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
Tweed Heads
29-41 Greenway Dr
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
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
96
BEACON LIGHTING GROUP ANNUAL REPORT 2021 QLD
Bundall
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
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 St
Jindalee Homemaker City
182 Sinnamon Rd
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
Noosa
Noosa Civic
Eenie Creek Rd
Northlakes
Primewest Northlakes
Cnr Lakes Dve & Mason 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
Townsville - Garbutt
Mega Centre
Cnr Dalrymple Rd
& Duckworth St
Tweed Head
29-41 Greenway Dr
Underwood
34 Compton Rd
Virginia
1860 Sandgate Road
Windsor Homemaker City
190 Lutwyche Rd
WA
Baldivis
Safety Bay Rd
Belmont
225 Great Eastern Hwy
Bunbury
Home Maker Centre
42 Strickland St
Cannington
21 William St
Claremont
201-207 Stirling Hwy
Clarkson
Ocean Keys
Homemaker Centre
61 Key Largo Drv
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
4 Clayton St
Myaree
Melville Square
248 Leach Hwy
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
NT
Darwin
Homemaker Village
356-362 Bagot Rd
Millner
TAS
Launceston
40 William St
Moonah
7-9 Derwent Park Rd
97
BEACON LIGHTING GROUP ANNUAL REPORT 2021
www.beaconlighting.com.au