Beacon Lighting Group Limited
ANNUAL
REPORT
2023
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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4
5
6
12
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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 Level 1, 295 Whitehorse Road,
Nunawading, Victoria 3131. 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 16
August 2023. The Directors have the power to amend and reissue the financial statements.
CHAIRMAN &
Chief Executive Officer’s Report
The Beacon Lighting Group is pleased to release the financial result for FY2023. Throughout FY2023,
Beacon Lighting has been able to achieve a sales result of $312.0 million and a Net Profit After Tax result
of $33.6 million. In achieving this financial result, the Board of Directors would like to thank the hard work
of the Beacon Lighting team and the continued support of our retail customers, trade customers, business
partners and the general community.
GROUP OVERVIEW
The Beacon Lighting Group finished FY2023 with 119 Beacon
Lighting stores serving both our retail and trade customers.
There were 117 company stores and two franchised stores.
Beacon Commercial has sales offices in Brisbane (QLD),
Sydney (NSW), Melbourne (VIC), Adelaide (SA), and Perth
(WA). The supply chain in Australia includes Group operated
warehouses in Brisbane (QLD), Melbourne (VIC), and a 3PL
warehouse in Perth (WA). At the end of FY2023 and the start of
FY2024, Beacon Lighting relocated the Beacon Group Support
Office from Mulgrave (VIC) to be above the new Nunawading
(VIC) store.
Beacon International has sales offices in Hong Kong, Germany,
and the United States of America, with a support office in
China. Connected Light Solutions has a team based on the
eastern seaboard supporting customers throughout Australia.
Light Source Solutions has a sales office in New Zealand,
Custom Lighting has a designer showroom in Malvern (VIC),
and Masson For Light has an architectural lighting showroom
in Richmond (VIC).
FY2023 IN REVIEW
Building lasting relationships with our trade customers has
remained Beacon Lighting's number one objective throughout
FY2023. Our trade customers have responded very well to our
many trade initiatives, which have continued to underpin the
Beacon Lighting Group sales result at a time when consumer
confidence continued to be pessimistic. Beacon Lighting
Commercial and Custom Lighting had record sales results
demonstrating the potential for these businesses. Some sales
channels for Beacon International remain exciting. Still, overall
sales growth for Beacon International was slightly down last
year because some customers were overstocked at the end of
FY2022, and the less elevated sales through the eCommerce
sales channel in the USA.
Rising interest rates, inflation, and economic uncertainty have
impacted the retail consumer in Australia. Despite operating
in this environment, Beacon Lighting has achieved a sales
result of $312.0 million compared to $304.3 million last year.
With an exciting product range and outstanding customer
service, Beacon Lighting has achieved a gross profit margin of
67.7% despite experiencing product inflation at various stages
throughout FY2023 and a relatively subdued AUD/USD FX rate.
Inflation is making it challenging to manage the growth of
some expenses, with operating expenses increasing by 6.9%.
Overall, Beacon Lighting achieved a Net Profit After Tax result
of $33.6 million compared to $40.7 million last year.
Beacon Lighting Group’s sales growth was constrained by
new store openings in FY2023 caused by the delay in property
projects across Australia. Beacon Lighting opened new stores
at Pimpama (QLD) and Armadale (WA), relocated to new stores
at Southport (QLD) and Nunawading (VIC), and closed two
stores at Clarkson (WA) and Crossroads (NSW). These property
constraints in FY2023 provide Beacon Lighting with a very
significant store opening program in FY2024. Company store
comparative sales increased by 0.4% in FY2023, with positive
comparative growth in H1 FY2023 followed by a decline in
H2 FY2023. South Australia, Victoria, and Western Australia
achieved the best comparative sales results in FY2023.
Supported by many new trade initiatives, Beacon Lighting has
strengthened our relationships with our trade customers. The
re-launch of the Beacon Trade Club in December 2022 was
a critical enabler of the Beacon Lighting trade strategy. Total
trade sales increased by 21.6%, trade sales through stores
increased by 22.5%, and online trade sales increased by
36.0%.
There were numerous supply chain disruptions and risks
throughout the COVID years and into early FY2023. Given
this uncertainty, Beacon Lighting responded with orders for
increased safety stock. Combined with an increased factory
manufacturing capacity in FY2023, factories shipped stock
early, resulting in a record stock investment in December 2022.
Throughout H2 FY2023, the Group managed a gradual decline
in the stock investment to $96.9 million at the end of June 2023.
The Beacon Lighting Group has a 50% investment in the
Large Format Property Fund. The Fund made no new property
acquisitions in FY2023. Despite the lack of recent acquisitions,
Beacon Lighting has continued to invest in supporting property
development projects in Southport (QLD), Auburn (NSW), and
Bathurst (NSW). The Large Format Property Fund project at
Southport (NSW) opened as a Beacon Lighting store in June
2023.
1
BEACON LIGHTING GROUP ANNUAL REPORT 2023 FY2023
Highights
Sales result of
$312.0m
Net Profit After
Tax result of
$33.6m
To better service
the needs of our
TRADE
CUSTOMERS
we continued to roll out
+ NEW PRODUCT RANGES
+ MERCHANDISING
DISPLAYS and
+ WEBSITE
ENHANCEMENTS
RE-LAUNCHED THE
BEACON TRADE CLUB
onto an industry leading
technology platform
ONLINE
TRADE SALES
increased by
36.0%
TOTAL TRADE
SALES increased by
21.6%
Record sales for
STORES, BEACON
LIGHTING
COMMERCIAL and
CUSTOM LIGHTING
Number of USA
showroom customers
INCREASED BY
32.8%
Opened NEW stores at
• PIMPAMA (QLD)
• ARMADALE (WA)
TRADES SALES
through stores increased by
22.5%
Relocated to new stores at
• SOUTHPORT (QLD)
• NUNAWADING (VIC)
2
STRATEGIC
pillars of growth
The Beacon Lighting Group’s Strategic Pillars of Growth remain as follows:
STORES
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 loyalty
program. Beacon Trade,
key partner for lighting,
ceiling fans and electrical
accessories for the
Australian home.
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 Directors of Beacon Lighting are delighted to be able to
offer our shareholders the flexibility to take their dividends as a
cash payment or to reinvest into new Beacon Lighting Group
shares. For FY2023, the annually fully franked dividend was 8.3
cents per share while the H2 FY2023 fully franked dividend was
4.0 cents per share.
OUTLOOK
Going into FY2024, improving the lives and businesses of our
trade and retail customers continues to be the number one
goal for the Beacon Lighting Group. Given the property project
delays in FY2023, Beacon Lighting will have an extensive
company store opening program in FY2024. Expanding the
product range and selling these products to new and existing
customers continues to be the growth strategy for the Beacon
Lighting Group.
In FY2024, the Beacon Lighting Group has already committed
to the following:
• Service to our trade customers will continue to be enhanced by
the rollout of trade-specific products, further enhancements
to the Beacon Trade system, new trade merchandising
and marketing initiatives, and making it easy for our Trade
Customers to shop online.
• The planned opening of eight new company stores:
Mt Barker (SA), Mildura (VIC), Auburn (NSW), Warrawong
(NSW), Busselton (WA), Devonport (TAS), Gregory Hills
(NSW), and Ballina (NSW).
• Relocation of the Cranbourne store.
• Complete the Large Format Property Fund development
project in Auburn (NSW) featuring a new Beacon Lighting
company store.
• Continue expanding the Australian designed fan and lighting
products into the North American, Asian, and European
markets.
Ian Robinson
Executive Chairman
Glen Robinson
Chief Executive Officer
3
BEACON LIGHTING GROUP ANNUAL REPORT 2023 BOARD
of Directors
Ian Robinson
Executive Chairman
49 years of service
Ian Robinson purchased the first Beacon Lighting store in 1975. Over
the subsequent 48 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, Large Format Retailers
Association and Large Format Property Group.
Glen Robinson
Chief Executive Officer
29 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
9 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.
Neil Osborne
Non-Executive Director
9 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 Chairman of
Australian United Retailers (trading as Foodworks) and an independent
Director of Large Format Property Group. Neil was previously a Non-
Executive Director of Vita Group (ASX Listed) holding the position of
Chairman of the Audit and Risk Committee. Neil holds a BComm, is a
CPA and a FAICD.
4
BEACON LIGHTING GROUP ANNUAL REPORT 2023 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
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
Group. Prue holds a BBus (Management &
Marketing).
Monique Cook
General Manager - eCommerce
Joined Beacon Lighting in 2007 and has
had 15 years marketing and ecommerce
experience across various B2B and B2C
businesses within the home and lighting
categories. Monique holds a BBus (Marketing
and Human Resource Management).
Eva Zelos
Group Human Resources Manager
team
joined
operations
the Beacon
Eva Zelos
in
2020 with nearly 20 years of experience
organisational
in HR
planning across various businesses. Eva
holds a Diploma of Management and
various executive certificates through the
Melbourne Business School.
and
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
financial management
Joined Beacon Lighting in 2011 having had
roles with
senior
various ASX businesses,
including Eyecare
Partners. Tracey holds a BBus (Accounting),
a MBus (Administration), a Graduate Diploma
of Corporate Governance and is a CPA.
Peter Morgan
General Manager - Retail
Peter joined Beacon Lighting in 2005 after
working for Big W, Coles Myer and Shell
Australia. Peter has spent over 35 years
in Retail. Peter holds a Diploma in Retail.
Damien Cummins
Executive General Manager - Trade
industry
Joined Beacon Lighting in 2021 with over
25 years in management roles within the
including CEO
building products
Clipsal and EGM of Gerard Lighting. Damien
holds a Graduate Diploma Marketing and
various executive certificates from Harvard
Business School and INSEAD Business School.
Rodney Brown
General Manager – Supply Chain
Joined Beacon Lighting in 2012 with
experience
extensive
including management roles with Cadbury
Schweppes and Fosters Brewing.
supply
chain
5
BEACON LIGHTING GROUP ANNUAL REPORT 2023 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 16 August 2023. 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.beaconlighting.com.au/investor).
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
Principles and Recommendations. The Group is strongly
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.
6
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:
NAME
TERM IN OFFICE
Ian Robinson
Eric Barr
Glen Robinson
Neil Osborne
10 years
9 years
9 years
9 years
Note: These terms of office relate to the listed entity Beacon
Lighting Group Limited only and do not relate to the subsidiary
or operating entities.
Ian Robinson is a substantial shareholder. He has been
Executive Chairman since July 2013 having previously held the
position of 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,
independent external
as
consultant. Ian Robinson, Executive Chairman, is the other
member. The Committee is chaired by Eric Barr.
independent Directors and an
BEACON LIGHTING GROUP ANNUAL REPORT 2023 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 behavioral 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.
A copy of the Remuneration and Nomination Committee
Charter is available on the Group’s website.
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 and 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
7
BEACON LIGHTING GROUP ANNUAL REPORT 2023 PRINCIPLE 4
PRINCIPLE 5
Safeguard the Integrity of Corporate Reporting
Make Timely and Balanced Disclosure
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
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 an independent 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 and Eric Barr 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.
recommends
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
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.
• Its relationship with the external auditor.
This policy specifically includes:
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 are available to answer shareholders
questions about the audit.
• The approach to briefing institutional investors, brokers and
analysts.
• The approach to communications with investors whether by
meetings, via the Group’s websites, electronically or by any
other means.
Beacon Lighting provides a printed copy of its annual report
to all requesting shareholders. The annual report contains
relevant information about the Group’s operations during the
year, changes in the state of affairs and other disclosures
required by the Corporations Act and Accounting Standards.
The half year report contains summarised financial information
and a review of Beacon Lighting operations during the period.
The Beacon Lighting Group corporate website
(www.
beaconlighting.com.au/investor) 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.
8
BEACON LIGHTING GROUP ANNUAL REPORT 2023 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.
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 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.
Exchange Rate Volatility can impact upon the Group’s ability
to achieve 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 Board 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 material incidents and material potential
risks at each Board meeting and the appropriate action taken.
During FY2023, the safety and well being of our associates,
customers, business partners and the community continued to
be a priority of the Group.
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 2023 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 complies with this recommendation.
The Remuneration and Nomination Committee has four
members. Three are independent: Eric Barr and Neil Osborne,
as independent Directors, and an independent 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 ‘Company’) present their report
together with the Consolidated Financial Statements of the Company and its controlled
entities (the ‘Consolidated Entity’ or ‘Group’) for the 52 weeks ended 25 June 2023.
1. DIRECTORS
4. OPERATING AND FINANCIAL REVIEW
The Directors of the Group during the whole financial period
and up to the date of the report were:
Ian Robinson
Executive Chairman
Chairman of the Board, Member of the Remuneration and
Nomination Committee.
Glen Robinson
Chief Executive Officer
Member of the Audit Committee.
Eric Barr
Non-Executive Director
Deputy Chairman of the Board, Chairman of the Remuneration
and Nomination Committee and Member of the Audit
Committee.
Neil Osborne
Non-Executive Director
Chairman of the Audit Committee and Member of the
Remuneration and Nomination Committee.
Details of the expertise and experience of the Directors are
outlined on page 4 of this annual report.
2. PRINCIPAL ACTIVITIES
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:
CONSOLIDATED ENTITY
Actual
FY2023
$’000
Actual
FY2022
$’000
Profit before Income Tax
48,182
58,029
4.1 Overview of Operations
Beacon Lighting is the leading retail, trade and eCommerce
lighting, ceiling fan and electrical accessories business in
Australia. Beacon Lighting also has several other specialist
lighting businesses in Australia operating under several different
brands. Beacon International is also an emerging international
fan wholesale business operating in various countries around
the world. Beacon Lighting also has a 50% share in the Large
Format Property Fund which owns seven retail properties in
Australia.
At the end of FY2023, Beacon Lighting operated the following
trading businesses:
• 117 Beacon Lighting company stores
• 2 Beacon Lighting franchised stores
• 5 Beacon Commercial sales offices
• Beacon International offices in Hong Kong, Germany, United
States of America and China
• Light Source Solutions sales office in New Zealand
• Connected Light Solutions
• Masson For Light store
• Custom Lighting store
• Beacon Lighting Wholesale
The trading businesses are supported by a supply chain with
Beacon Lighting operated warehouses in Brisbane (QLD),
Melbourne (VIC) and a 3PL warehouse in Perth (WA). Beacon
Lighting also has a Beacon Group Support Centre in Melbourne
(VIC).
It is pleasing that throughout FY2023, Beacon Lighting was able
to operate without the impact of COVID or COVID lockdowns.
FY2023 was a period of relative high inflation and rising interest
rates which had a negative impact upon consumer confidence.
During FY2023, some of the operating highlights included:
• Re-launch of the Beacon Trade Club onto an industry leading
Income Tax Expense
(14,539)
(17,303)
technology platform
Net profit after tax attributable
to the members of Beacon
Lighting Group Limited
33,643
40,726
• Continued roll out of new trade products, merchandising
displays and website enhancements to better service the
needs of our Beacon Trade Customers
• Opened new stores at Pimpama (QLD) and Armadale (WA)
• Relocated to new stores at Southport (QLD) and Nunawading
(VIC)
12
BEACON LIGHTING GROUP ANNUAL REPORT 2023 Throughout FY2023, the Beacon Lighting Group had a 50%
interest in the Large Format Property Fund which owns seven
retail properties. Four of these properties are fully tenanted,
one property is a recently completed development project and
is partially tenanted and two properties remain development
projects. The Large Format Property Fund did not make any
new property acquisitions in FY2023.
Beacon Lighting continues to be a vertically integrated business
which designs, develops, sources,
imports, distributes,
merchandises, markets and sells our own product range to
meet the needs of our retail, trade and eCommerce customers.
More than 95% of the lighting and fan products sold by Beacon
Lighting are supplied through the Beacon Lighting supply
chain. More than 85% of the products sold by Beacon Lighting
are exclusively branded.
13
BEACON LIGHTING GROUP ANNUAL REPORT 2023 4.2 FINANCIAL SUMMARY
4.2.1 Financial Result
In presenting the financial results for FY2023, the Directors of Beacon Lighting believe the presentation of non-IFRS measures are
useful for the users of these financial reports as they provide additional insights 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 FY2023 result compared to the FY2022 result is presented in the following table:
Consolidated Entity
FY2023 $’000
FY2022 $’000
Change $’000
Sales
Gross Profit
Other Income (1)
Operating Expenses (2)
EBITDA (3)
EBIT (3)
Net Profit After Tax
311,955
211,333
1,062
(126,756)
85,639
54,830
33,643
304,299
210,368
991
(118,628)
92,731
63,793
40,726
7,656
965
71
(8,128)
(7,092)
(8,963)
(7,083)
(1) Other Income includes other revenue, other income and a share of net profit of associates
(2) Operating Expenses excludes interest, depreciation and amortization
(3) Non-IFRS financial measures
Change
%
2.5%
0.5%
7.2%
6.9%
(7.6%)
(14.1%)
(17.4%)
14
BEACON LIGHTING GROUP ANNUAL REPORT 2023 4.2.2 Sales
4.2.8 Financial Position
In FY2023, Beacon Lighting achieved a sales result of $312.0
million compared to $304.3 million last year. Company store
comparative sales were 0.4% ahead of last year with a strong
comparative increase in H1 FY2023 and with a decline in H2
FY2023. The best comparative sales results were achieved in
South Australia, Victoria and Western Australia. Record sales
results were achieved for Beacon Lighting Commercial and
Custom Lighting. Some sales channels for Beacon International
remain very exciting but overall growth for Beacon International
was slightly down on last year which was the result of some
customers being overstocked at the end of FY2022 and the
less elevated eCommerce sales channel in the USA.
4.2.3 Gross Profit
Product costs have been a challenge with a subdued AUD/USD
exchange rate and product inflation impacting the cost base at
various stages throughout FY2023. In addition, the margin mix
has been changing with stronger sales growth being achieved
with our trade customers and Beacon Lighting Commercial,
compared to our traditional retail customers. Given these
changes, Beacon Lighting has been able to achieve a gross
profit margin of 67.7% in FY2023 compared to 69.1% last year.
4.2.4 Other Income
Other income includes other income, other revenue and a
share in the income from the investment in the Large Format
Property Fund and increased by 7.2% in FY2023.
4.2.5 Operating Expenses
Total operating expenses have increased by 6.8% to $126.8
million. Inflation impacted some of our selling and distribution
expenses resulting in a 7.5% increase in FY2023. There has
continued to be a deliberate investment in marketing to support
the growth of the retail, trade and international strategies.
General and administration expenses increased modestly in
FY2023. Overall, operating expenses % to sales in FY2023 was
40.6% compared to 39.0% in FY2022.
4.2.6 Earnings
In FY2023, Beacon Lighting achieved a Net Profit After Tax
result of $33.6 million compared to $40.7 million in FY2022.
4.2.7 Dividends
The Directors of Beacon Lighting have declared an annual
fully franked dividend of 8.3 cents per share for FY2023,
compared to 9.3 cents per share for FY2022. For H2 FY2023,
the Directors have declared a fully franked dividend of 4.0 cents
per share compared to 5.0 cents per share last year. Beacon
Lighting continues to offer a dividend reinvestment plan for our
shareholders. In the future, it is expected that Beacon Lighting
will continue to have an annual Net Profit After Tax dividend
payout ratio between 50% and 60%.
Beacon Lighting has continued to invest for the future with the
opening of two new stores, the relocation of two stores and the
significant investment in our technical infrastructure including
the new Beacon Trade Club. Overall, Beacon Lighting made
a capital expenditure investment of $11.6 million in FY2023.
There were no further capital investments made to the Large
Format Property Fund in FY2023, instead, interest bearing
loans were made to support the three property development
projects of the Fund.
Beacon Lighting investment in inventory peaked in December
2022. Throughout H2 FY2023 with the reliability of stock supply
improving and the need for safety stock reducing, stock has
been managed down to $96.9 million. Beacon Lighting also
finished FY2023 with a cash balance of $20.7 million.
4.3 Strategic Pillars of Growth
Throughout FY2023, Beacon Lighting has remained focused
on the four strategic pillars of growth.
4.3.1 Stores
At the end of FY2023, Beacon Lighting had 117 company stores
and two franchised stores strategically located throughout
Australia. During the year, Beacon Lighting opened two new
company stores at Pimpama (QLD) and Armadale (WA).
Beacon Lighting also relocated to new stores at Southport
(QLD) and Nunawading (VIC) and closed the Clarkson (WA)
and Crossroads (NSW) stores. The Store Benchmarking and
Network Plan was updated in March 2023 and identified a
potential store network in Australia of 195 stores.
Beacon Lighting has a core range of 3,500 products with more
than 600 products being identified as “trade essentials”. In
FY2023, Beacon Lighting continued to innovate and introduced
636 new products, including 200 new trade products to ensure
that our customers have the latest, innovative range of lighting,
fan and energy efficient products that are available in the
market.
In the 119 Beacon Lighting stores, there are more than 850
sales associates throughout Australia who continue to provide
outstanding service to our retail and trade customers. Beacon
Lighting also has 225 Accredited Lighting Design Consultants,
119 Trade Consultants and 40 Lighting Design Studios which
conducted nearly 2,700 premium lighting design consultations
in FY2023. The Beacon Lighting team ensures that our retail
and trade customers always receive a unique and outstanding
customer service experience.
15
BEACON LIGHTING GROUP ANNUAL REPORT 2023 4.3.2 Trade
4.3.4 New Business
Building lasting relationships with our trade customers has
remained Beacon Lighting’s number one objective throughout
FY2023. A key investment in this relationship was the re-launch
of Beacon Trade onto an industry leading loyalty technology
platform. The key benefits of the re-launched Beacon Trade
has made it easier and more rewarding for our trade customers
and their customers to do business with Beacon Lighting. The
rewards for our trade customers include receiving Beacon
Cash and special prices for all trade and referral purchases.
Beacon Lighting has continued to roll out trade rooms and
trade walls to specific stores. New trade switch displays
have been rolled out to all stores along with other new trade
merchandise displays. Beacon Lighting has continued with the
weekly trade seminars and a trade training program to ensure
that the capabilities of the Beacon Lighting team to service our
trade customers continues to be enhanced. The value added
services of the Beacon Design Studio has been able to offer
outstanding value to our trade customers and their customers,
while at the same time reducing their workloads. The dedicated
marketing program has continued to build the Beacon Trade
brand and enhance the benefits associated with being a
Beacon Trade member.
Many of the trade initiatives associated with the Beacon Trade
strategy have been very well received by our trade customers.
Since the relaunch of the Beacon Trade Club in December
2022, nearly 4,000 new members have since joined the Club
for a total membership base of 50,700 Beacon Trade members.
In FY2023, total trade sales have increased by 21.6% and trade
sales through stores have increased by 22.5%. Online trade
sales continue to be a very exciting sales channel with an
increase of 36.0% in FY2023.
4.3.3 eCommerce
Beacon Lighting now has 16 dedicated business websites with
the primary websites being www.beaconlighting.com.au and
www.beacontrade.com.au. Two new branded websites were
launched in FY2023 being “GE Imagine Smart Lighting” and
“Made by Mayfair”.
The exclusive Beacon Trade website continues to be very well
supported by our Beacon Trade members and enables them
to shop 24/7 with Beacon Trade while still enjoying the rewards
and special pricing of the Beacon Trade Club. In FY2023,
Beacon Trade online visitation increase by 47.0% and online
trade sales increased by 36.0%. Beacon Trade members are
now able to make online purchases with Afterpay, ZipPay and
the Beacon Trade charge accounts.
During FY2023, as Beacon Lighting customers were able to
shop in store without any COVID restrictions, the store sales mix
moved away from the online sale channel. Despite this change
in customer behaviour, the online sales channel remains very
important for Beacon Lighting with online sales being 10.0% of
all Beacon Lighting store sales.
Beacon Lighting continues to pursue growth in the new
businesses, specifically being Beacon International, Custom
Lighting, Masson For Light, Connected Light Solutions and
Light Source Solutions. These businesses enjoyed sales
success throughout FY2023, with a sales increase of 32.5% for
Custom Lighting, 29.3% for Connected Light Solutions, 16.4%
for Masson For Light and 6.7% for Light Source Solutions (in
New Zealand).
Beacon International is the most significant of these new
businesses. The sales highlight in FY2023 was Beacon Lighting
Europe with a sales increase of 53.0%. Sales did decline for
Beacon Lighting USA in FY2023, as a result of some customers
being overstocked at the end of FY2022 and the less elevated
eCommerce sales in the USA. The USA showroom sales
channel did achieve some exciting growth with an increase of
32.8% in customer numbers. Despite the USA sales decline in
FY2023, USA sales in FY2023 are still 22.6% ahead of the sales
from FY2021.
Beacon Lighting did not invest any significant capital into
the Large Format Property Fund in FY2023. Instead, Beacon
Lighting has continued to loan money to the property fund
to support development projects at Southport (QLD), Auburn
(NSW) and Bathurst (NSW). Pleasingly, the Large Format
Property Fund project at Southport (QLD) opened as a Beacon
Lighting store in June 2023.
4.4 BUSINESS RISKS
Beacon Lighting is subject to risks that are specific to the Group
and risks of a general nature. All these risks may threaten both
the current and future operating and financial performance of
Beacon Lighting and the outcome of an investment in Beacon
Lighting. A number of these risks are beyond the control and
influence of the Directors and management of Beacon Lighting,
but Beacon Lighting does have some mitigation strategies to
manage the impact of these risks should they occur. The most
material risks and how they are managed are presented in the
following sections.
4.4.1 Product Sourcing, Quality and Supply
Beacon Lighting is a vertically integrated business which
relies upon key agents, key factories 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 dependent upon any one external
third party. Beacon Lighting will consider additional investment
in safety stocks, additional internal supply chain resources and
diversifying the sources of supply should it be necessary.
4.4.2 Retail Environment and General Economic
Conditions
Beacon Lighting 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,
renovations,
government policy, pandemics and natural disasters.
16
BEACON LIGHTING GROUP ANNUAL REPORT 2023 Beacon Lighting plans to manage the Group according to
the current retail and general economic environment. Beacon
Lighting will also maintain a conservative cash position and
bank facilities to support the Beacon Lighting Group if required.
4.4.3 Foreign Currency Exposures
Beacon Lighting is a vertically integrated business where
most of the products that are sold by the Group are imported
into Australia and purchased in USD. As a result, the Group
is exposed to fluctuations in the AUD/USD exchange rate.
Beacon Lighting mitigates this risk by carrying all stock in
Australia in AUD and by using FX forward contracts to secure
future FX positions. Beacon Lighting also has the ability to
manage selling prices with our retail and trade customers.
4.4.4 Growth Strategies
Beacon Lighting growth strategies are based on the strategic
pillars of growth. There is however no guarantee that any
one or all these pillars will succeed or be subject to delays or
cost over-runs. Beacon Lighting will continue to invest in and
support the strategic pillars that will increase value in the long
term. If a strategic pillar cannot add value to Beacon Lighting
in the long term, then resources will be reallocated to other
strategic pillars.
4.4.5 Ability to Attract and Retain Key Associates
The success of Beacon Lighting is dependent upon the ability
to attract and retain key associates. The loss of key team
members and the inability to find suitable replacements may
adversely affect Beacon Lighting’s future financial performance.
Beacon Lighting will aim to offer competitive remuneration
packages for all associates and work to ensure that there are
continuity and succession plans in place for the key associates
within Beacon Lighting.
4.4.6 Management Systems
Beacon Lighting has 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.
Beacon Lighting needs to ensure that there is appropriate
security, backup and recovery capabilities in place to safeguard
the ongoing operation of these management systems and the
Beacon Lighting Group.
4.4.7 Environment
Beacon Lighting operates in a complex environment involving a
variety of environmental, social and governance requirements.
Any changes to this environment could adversely impact upon
Beacon Lighting’s current and future financial position. Beacon
Lighting aims to maintain effective environmental, social and
governance processes to manage the risks associated with
this complex operating environment.
4.4.8 Legal and Regulatory Compliance
Beacon Lighting is required to maintain compliance with all
applicable laws and regulations. These include requirements
related to consumer protection and product quality. Failure
to comply with such laws and regulations could result in
regulatory action or other claims could have an adverse impact
upon Beacon Lighting’s reputation, financial performance and
profitability. Beacon Lighting has management processes and
product quality assurance processes to manage compliance
with applicable laws and regulations.
17
BEACON LIGHTING GROUP ANNUAL REPORT 2023 5. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There were no significant changes in the state of the affairs of the Group.
6. DIRECTORS’ MEETINGS
The numbers of meetings of the Group’s Board of Directors held during the financial period ended 25 June 2023, 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
10
10
10
10
A
10
10
10
10
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
124,564,216
124,564,216
276,489
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 FY2023
$'000
Actual FY2022
$'000
Fully franked dividends paid during the period
20,769
19,876
18
BEACON LIGHTING GROUP ANNUAL REPORT 2023
10. INSURANCE OF OFFICERS
13. EVENTS SUBSEQUENT TO REPORTING
10.1. Indemnification of Directors
DATE
A fully franked dividend of $8,983,852 was declared on 16
August 2023 (4.0 cents per share).
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 $245,000 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. No liability has arisen under
this indemnity as at the date of this report.
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 2023 14.2 Audit and Non-Audit Services Provided by the External Auditor
During the 52 weeks ended 25 June 2023, 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
FY2023
$
FY2022
$
Audit & review of financial statements
308,400
270,350
Other Services
Tax compliance services
Total Remuneration of PwC
10,000
318,400
19,510
289,860
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.
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 senior management and the 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 25 June 2023.
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, 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 2023 Remuneration Framework
Element
Purpose
Performance
Metrics
Potential Value
Changes
for FY2023
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)
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 FY2023 the actual
fixed and variable remuneration was:
Fixed
Remuneration
%
Short Term
Incentive
(Cash Bonus) %
Short Term Incentive
(Performance Rights) %
Total %
Executive Chairman
Chief Executive Officer
Chief Financial Officer
Chief Operating Officer
100.00%
78.93%
86.00%
84.65%
0.00%
0.00%
0.00%
0.00%
0.00%
100.00%
21.07%
100.00%
14.00%
100.00%
15.35%
100.00%
The Remuneration and Nomination Committee is responsible for assessing performance against KPIs and determining the short term
incentives 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 2023
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) (b)
Executive Remuneration
The current executive salary and reward framework has three
components:
1. Fixed Remuneration.
2. Short Term Incentive (STI) (Cash Bonus).
3. Short Term Incentive (Performance Rights).
The combination of
executives’ total remuneration.
these components comprises
the
For the 52 weeks ended 25 June 2023, 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 FY2023 fixed remuneration was increased for the three
executives at an average increase of 4.45%.
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
financial
results have been audited and
approved by the Board
the
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)
During the 52 weeks ended 25 June 2023 the Group continued
to maintain a short term performance rights incentive plan.
Executives including the Chief Executive Officer but excluding
the Chairman are eligible to participate in the plan subject to the
achievement of the Group financial performance targets. The
plan provides the opportunity to obtain shares or potentially
be cash settled 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 2023 Structure of Short Term Performance Rights
Feature
Description
Maximum Opportunity
125% of on target cash bonus value
Performance Metric
Budgeted NPAT
Delivery of STI
33.34% of STI performance rights awarded 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
Board Discretion
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 FY2023 Performance and Impact on Remuneration
Beacon Lighting’s NPAT financial performance in FY2023 was below the FY2023 budget. For the 52 weeks ended 25 June 2023, the
Group’s financial performance targets were not met when compared to budget. Senior management will not be awarded the short
term incentive cash bonus and the short term incentive performance rights.
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 the Net Profit After Tax, earnings per share, dividend payments and share price over that period of time.
Statutory Key Performance Indicators of the Group
FY2023
FY2022
FY2021
FY2020
FY2019
Net profit after tax ($’000)
33,643
40,726
37,658
22,225
16,044
Basic earnings per share (cents)
15.05
18.24
16.94
10.11
7.37
Dividend payments ($’000)
20,769
19,876
14,696
10,110
10,986
Share Price (Period End)
1.49
1.76
1.86
1.08
1.04
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
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
25 June 2023 and the 52 weeks ended 26 June 2022 unless otherwise stated
23
BEACON LIGHTING GROUP ANNUAL REPORT 2023 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
$
DIRECTORS
I Robinson (Chairman)
2023
2022
192,728
192,728
G Robinson (Chief Executive Officer)
2023
2022
E Barr (Non-Executive)
2023
2022
393,504
383,681
111,312
110,946
N Osborne (Non-Executive)
2023
2022
102,262
101,853
Total Remuneration Directors
2023
2022
EXECUTIVES
799,806
789,208
D Speirs (Chief Financial Officer)
2023
2022
306,465
301,044
B Martens (Chief Operating Officer)
2023
2022
260,532
258,171
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Share Based
Payments
Total
$
-
-
204,908
209,768
118,549
562,638
19,229
19,017
(7,049)
(1,977)
25,292
25,293
-
-
-
23,568
10,408
112,000
124,994
654,741
11,687
11,521
10,737
10,577
-
-
-
-
66,945
18,244
-
-
-
-
-
-
-
-
-
122,999
122,467
112,999
112,430
118,549
1,003,544
64,683
8,431
112,000
124,994
1,099,406
25,292
(6,366)
-
52,975
378,366
23,568
20,073
50,000
56,246
450,931
25,292
6,390
-
52,975
345,189
23,568
33,620
50,000
56,246
421,605
I Bunnett (Managing Director – Sales) (resigned August 2021)
2023
2022
-
172,815
Total Remuneration Executives
2023
2022
566,997
732,030
-
-
-
-
-
-
19,307
(132,080)
50,584
24
-
-
-
-
-
73,642
133,684
105,950
723,555
66,443
(78,387)
100,000
186,134
1,006,220
24
BEACON LIGHTING GROUP ANNUAL REPORT 2023
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
24/08/2017
39,338 Refer below
53,500
100.00%
39,338
16/08/2018
71,333
Refer below
109,140
100.00%
71,333
20/08/2020
99,074
Refer below
107,000
100.00%
99,074
-
-
-
39,338
71,333
-
-
33,032
2,463
19/08/2021
76,087
Refer below
140,000
66.67%
50,727
25,360
18/08/2022
57,436
Refer below
112,000
33.34%
19,149
38,287
-
-
28,302
87,784
Total
343,268
521,640
279,621
63,647
143,703
118,549
The fair value of performance rights granted on 24 August 2017 (grant date) was $1.36, with a final vesting date of 25 August 2020.
The fair value of performance rights granted on 16 August 2018 (grant date) was $1.53, with a final vesting date of 16 August 2020.
The fair value of performance rights granted on 20 August 2020 (grant date) was $1.08, with a final vesting date of 20 August 2022. All
unvested performance rights will vest by 20 August 2022 provided the executive remains employed by the Group at the vesting date.
The fair value of performance rights granted on 19 August 2021 (grant date) was $1.84, with a final vesting date of 19 August 2023. All
unvested performance rights will vest by 19 August 2023 provided the executive remains employed by the Group at the vesting date.
The fair value of performance rights granted on 18 August 2022 (grant date) was $1.95, with a final vesting date of 18 August 2024. All
unvested performance rights will vest by 18 August 2024 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 2023
The number of options and performance rights 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 $
D Speirs
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
100.00%
46,296
-
-
-
21/08/2021
33,967
Refer below
62,500
66.67%
22,646
11,321
18/08/2022
25,641
Refer below
50,000
33.34%
8,549
17,092
B Martens
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
100.00%
46,296
-
-
-
21/08/2021
33,967
Refer below
62,500
66.67%
22,646
11,321
18/08/2022
25,641
Refer below
50,000
33.34%
8,549
17,092
12,867
22,223
-
-
-
12,867
22,223
-
-
-
-
-
1,151
12,635
39,189
-
-
1,151
12,635
39,189
Total
315,238
477,000
258,412
56,826
70,180
105,950
The fair value of options granted on 24 August 2017 (grant date) was $1.36. 40% vested on 24 August 2018, 30% vested on 24 August
2019 and 30% vested on 24 August 2020.
The fair value of options granted on 16 August 2018 (grant date) was $1.53. 33.34% vested on 16 August 2018, 33.33% vested on 16
August 2019 and 33.33% vested on 16 August 2020.
The fair value of options granted on 20 August 2020 (grant date) was $1.08. 33.34% vested on 20 August 2020, 33.33% vested on 20
August 2021 and 33.33% will vest on 20 August 2022.
The fair value of performance rights granted on 19 August 2021 (grant date) was $1.84, with a final vesting date of 19 August 2023. All
unvested performance rights will vest by 19 August 2023 provided the executive remains employed by the Group at the vesting date.
The fair value of performance rights granted on 18 August 2022 (grant date) was $1.95, with a final vesting date of 18 August 2024. All
unvested performance rights will vest by 18 August 2024 provided the executive remains employed by the Group at the vesting date.
The options and performance rights have a zero exercise price. Subject to meeting the relevant vesting conditions, shares or cash 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 2023
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)
2023
2022
123,791,815
123,757,815
G Robinson (Chief Executive Officer)
2023
2022
E Barr (Non-Executive)
2023
2022
N Osborne (Non-Executive)
2023
2022
EXECUTIVES
D Speirs (Chief Financial Officer)
2023
2022
B Martens (Chief Operating Officer)
2023
2022
132,925
132,925
250,000
225,000
300,000
300,000
115,022
115,022
146,220
146,220
I Bunnett (Managing Director – Sales)(4)
2023
2022
Total
2023
2022
-
43,276
101,320
-
-
-
-
-
-
-
-
-
-
-
-
-
-
636,096
34,000
-
-
-
20,762
25,000
-
-
-
-
-
-
-
-
3,380
-
5,727
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
144,596
124,427,911
123,791,815
136,305
132,925
276,489
250,000
300,000
300,000
115,022
115,022
146,220
146,220
-
-
124,735,982
-
20,762
645,203
-
125,401,947
124,720,258
101,320
59,000
-
144,596
124,735,982
(1) There were shares received during the year as a result of options 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.
(4) I Bunnett (Managing Director – Sales) resigned August 2021
27
BEACON LIGHTING GROUP ANNUAL REPORT 2023 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
G Robinson
D Speirs
B Martens
Contract Type
Rolling contract
Rolling contract
Rolling contract
Notice of termination
by Group
Employee notice
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 FY2022. 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,
16 August 2023
Glen Robinson
Chief Executive Officer
28
BEACON LIGHTING GROUP ANNUAL REPORT 2023 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 25 June
2023, I declare that to the best of my knowledge and belief, there have been:
(a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
(b) no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Beacon Lighting Group Limited and the entities it controlled during the
period.
Matthew Probert
Partner
PricewaterhouseCoopers
Melbourne
16 August 2023
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 2023
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
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 2023
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the 52 weeks ended 25 June 2023 and the 52 weeks ended 26 June 2022 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
4
4
4
5
6
6
Share of net profits of associates accounted for using the equity method
34(b)(ii)
PROFIT BEFORE INCOME TAX
Income tax expense
PROFIT FOR THE PERIOD ATTRIBUTABLE TO THE OWNERS OF
THE PARENT ENTITY
Profit is attributable to:
Owners of Beacon Lighting Group Limited
Other comprehensive income - Items that may be reclassified to
profit or loss:
Changes in the fair value of derivatives
Exchange differences on translation of foreign operations
Income tax relating to these items
Other comprehensive income for the period, net of tax
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
ATTRIBUTABLE TO THE OWNERS OF THE PARENT ENTITY
Total comprehensive income is attributable to:
Owners of Beacon Lighting Group Limited
EARNINGS PER SHARE
Basic earnings per share
Diluted earnings per share
7
25(a)
25(a)
29
29
FY2023
$’000
311,955
489
312,444
277
FY2022
$’000
304,299
494
304,793
280
(100,622)
(93,931)
(15,558)
(123,686)
(18,321)
(6,648)
296
48,182
(14,539)
33,643
33,643
33,643
(298)
153
45
(100)
(14,459)
(115,341)
(17,766)
(5,764)
217
58,029
(17,303)
40,726
40,726
40,726
497
807
(390)
914
33,543
41,640
33,543
33,543
CENTS
15.05
15.05
41,640
41,640
CENTS
18.24
18.24
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying Notes.
31
BEACON LIGHTING GROUP ANNUAL REPORT 2023 CONSOLIDATED BALANCE SHEET
As at 25 June 2023 and as at 26 June 2022 Beacon Lighting Group and its controlled entities
Consolidated Entity
Notes
CURRENT ASSETS
Cash and cash equivalents
Trade and other receivables
Inventories
Derivative financial instruments
Other current assets
Total current assets
NON-CURRENT ASSETS
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
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
11
12
14
13
23
16
15
17
18
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
FY2023
$’000
20,682
13,200
96,936
121
2,177
133,116
30
19,963
44,744
108,017
13,748
564
12,737
199,803
332,919
19,164
19,405
11,332
2,208
26,771
78,880
3,000
100,206
1,737
104,943
183,823
149,096
74,468
(42,336)
116,964
149,096
FY2022
$’000
27,996
8,591
93,094
330
1,751
131,762
67
19,971
38,957
105,186
13,718
232
12,653
190,784
322,546
29,096
20,315
10,956
1,783
26,718
88,868
-
97,742
1,801
99,543
188,411
134,135
72,312
(42,267)
104,090
134,135
BEACON LIGHTING GROUP ANNUAL REPORT 2023 CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the 52 weeks ended 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entities
Consolidated Entity
Notes
Contributed
Equity
$’000
Reserves
$’000
Retained
Earnings
$’000
Total
Equity
$’000
Balance as at 26 June 2022
72,312
(42,267)
104,090
134,135
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
24
25(a)
25(a)
26
-
-
-
2,156
-
-
-
Total contributions by and distributions to owners
2,156
-
33,643
33,643
(100)
(100)
-
123
(92)
-
31
-
(100)
33,643
33,543
-
-
-
2,156
123
(92)
(20,769)
(20,769)
(20,769)
(18,582)
Balance as at 25 June 2023
74,468
(42,336)
116,964
149,096
Balance as at 27 June 2021
72,312
(43,356)
83,240
112,197
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
Total contributions by and distributions to owners
24
25(a)
25(a)
26
-
-
-
-
-
-
-
-
-
914
914
-
327
(153)
-
175
40,726
40,726
-
914
40,726
41,640
-
-
-
-
327
(153)
(19,876)
(19,876)
(19,876)
(19,701)
Balance as at 26 June 2022
72,312
(42,267)
104,090
134,135
The above consolidated statement of changes in equity should be read in conjunction with the accompanying Notes.
33
BEACON LIGHTING GROUP ANNUAL REPORT 2023 For the 52 weeks ended 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entities
CONSOLIDATED STATEMENT OF CASH FLOWS
Consolidated Entity
CASH FLOWS FROM OPERATING ACTIVITIES
Notes
FY2023
$’000
FY2022
$’000
Receipts from customers (inclusive of goods and services tax)
340,817
333,410
Payments to suppliers and employees (inclusive of goods and services tax)
(271,283)
(258,815)
Interest received
Borrowing costs
Income taxes paid
187
171
(6,648)
(5,764)
(14,148)
(17,348)
Net cash inflow from operating activities
36
48,925
51,654
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant and equipment
Payments for interest in associates
Loan to associates
Payments for acquisitions
Proceeds from interest in associates
Proceeds from sale of property, plant and equipment
33
33
33
(11,644)
(125)
(2,518)
(50)
429
224
(9,604)
(4,840)
-
-
286
31
Net cash (outflow) from investing activities
(13,684)
(14,127)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
(Repayment) of borrowings
(Payments) for principal portion of lease liabilities
92,760
78,762
(89,916)
(77,064)
(26,786)
(25,183)
Dividends paid to Company's shareholders
26
(18,613)
(19,876)
Net cash (outflow) from financing activities
(42,555)
(43,361)
Net (decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Cash and cash equivalents at the end of the financial year
8
The above consolidated statement of cash flows should be read in conjunction with the accompanying Notes.
(7,314)
27,996
20,682
(5,834)
33,830
27,996
34
BEACON LIGHTING GROUP ANNUAL REPORT 2023 1. Summary of Significant Accounting
(iii) Compliance with IFRS
Policies
The principal accounting policies adopted in the preparation
of this consolidated financial report is set out below. These
policies have been consistently applied to all the periods
presented, unless otherwise stated. The financial report is for
the consolidated entity consisting of Beacon Lighting Group
Limited (the ‘Company’ or ‘Beacon Lighting Group’) and its
controlled entities (the ‘Consolidated Entity’ or ‘Group’).
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, except for certain financial assets
and liabilities (including derivative instruments) measured at fair
value.
(a) Basis of Preparation
(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 25 June 2023 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.
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 25 June 2023 (2022: 52 week period ending 26
June 2022). 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
A number of new or amended standards became applicable for
the current reporting period. The Group did not have to change
its accounting policies or make retrospective adjustments as a
result of adopting these standards.
IFRS Interpretations Committee - Costs Necessary to Sell
Inventories (IAS 2 Inventories)
Beacon Lighting Group is continuing to monitor developing
practice in relation to the recently released IFRIC agenda item
“Costs Necessary to Sell Inventories”. There is judgement
required in the assessment of the costs necessary to make the
sale when determining the net realisable value of inventories.
Beacon Lighting Group considers the costs are the direct
selling costs associated with the sale of certain product lines.
These direct costs include, but not limited to, costs such as
commissions, direct advertising and marketing campaigns to
sell the inventory. Beacon Lighting Group considers the impact
of the IFRIC agenda decision as not resulting in a material
adjustment to the assessment of the net realisable value of
inventory.
(ii) Impact of Standards Issued but Not Yet Applied by
Group
Certain new accounting standards and interpretations have
been published that are not mandatory for 25 June 2023
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.
35
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entitiesBEACON LIGHTING GROUP ANNUAL REPORT 2023 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 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entitiesBEACON LIGHTING GROUP ANNUAL REPORT 2023 (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
(i) 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 operates a loyalty program where trade customers
accumulate award points for purchases made which entitle
them to discounts on future purchases. The award points are
recognised as a separately identifiable component of the initial
sale transaction, by allocating the fair value of the consideration
received between the award points and the other components
of the sale such that the award points are recognised at their
fair value. Revenue from the award points is recognised when
the points are redeemed. The amount of revenue recognised
is based on the number of points redeemed relative to the total
number expected to be redeemed.
The Group’s obligation to repair or replace faulty products
under the standard warranty terms is recognised as a provision,
see Note 19.
(ii) 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.
(iii) Franchise Royalty Fee Income
Franchise royalty fee income includes advertising contributions
and management fee, which is based upon a percentage of
sales.
37
BEACON LIGHTING GROUP ANNUAL REPORT 2023 (g) Income Tax
The income tax expense or revenue for the period is the tax
payable on the current period’s taxable income based on the
applicable income tax rate for each jurisdiction adjusted by
changes in deferred tax assets and liabilities attributable to
temporary differences and to unused tax losses.
Deferred tax assets and liabilities are recognised for temporary
differences at the tax rates expected to apply when the assets
are recovered or liabilities are settled, based on those tax rates
which are enacted or substantively enacted for each jurisdiction.
The relevant tax rates are applied to the cumulative amounts
of deductible and taxable temporary differences to measure
the deferred tax asset or liability. An exception is made for
certain temporary differences arising from the initial recognition
of an asset or a liability. No deferred tax asset or liability is
recognised in relation to these temporary differences if they
arose in a transaction, other than a business combination, that
at the time of the transaction did not affect either accounting
profit or taxable profit or loss.
Deferred tax assets are recognised for deductible temporary
differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those
temporary differences and losses.
Deferred tax assets and liabilities are offset when there is a
legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances 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, distribution centers 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 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entitiesBEACON LIGHTING GROUP ANNUAL REPORT 2023 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. 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
39
BEACON LIGHTING GROUP ANNUAL REPORT 2023 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 Accounting
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.
(i) Cash Flow Hedge
The effective portion of changes in the fair value of derivatives
that are designated and qualify as cash flow hedges is
recognised in other comprehensive income and accumulated
in the hedging reserve in equity. The gain or loss relating to
the ineffective portion is recognised in the income statement
in other income or other expenses. Amounts accumulated
in equity are reclassified to profit or loss in the periods when
the hedged item affects profit or loss (for instance, when the
forecast purchase of inventory that is hedged takes place).
The gain or loss relating to the effective portion of interest rate
swaps hedging variable rate borrowings is recognised in the
40
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
forecast
When
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.
The assets’ residual values and useful lives are reviewed, and
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entitiesBEACON LIGHTING GROUP ANNUAL REPORT 2023 adjusted if appropriate, at the end of each reporting period.
(s) Provisions
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 business at the date of acquisition.
Goodwill on acquisitions of businesses 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.
Provisions for legal claims, product warranties and make
good 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.
The Group recognises the present value of the estimated costs
that may be incurred in restoring leased premises to their
original condition at the end of the respective lease terms as
a provision for make good. The costs are recognised as the
obligation is incurred either at commencement of the lease or
as a consequence of using the asset and are included in the
cost of the right of use assets. This estimate is reviewed at each
reporting date after assessing factors such as lease status,
commercial terms, probability of incurring make good costs;
and adjusted for any known changes in the initial cost estimate.
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. The discount rate
used to determine the present value is a pre-tax rate that reflects
current market assessments of the time value of money and the
risks specific to the liability. The increase in the provision due to
the passage of time is recognised as interest expense.
(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.
(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
41
BEACON LIGHTING GROUP ANNUAL REPORT 2023 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.
(iii) Share Based Payments
Share based compensation benefits are provided to employees
via the Beacon Lighting Short Term Incentive Plan. Information
relating to this scheme is set out in the Remuneration Report
and Note 27. The fair value of performance rights and options
granted under the plan are recognised as an employee benefit
expense over the period during which the employees become
unconditionally entitled to the rights with a corresponding
increase in equity. The total amount to be expensed is
determined by reference to the fair value of the rights granted,
which includes any market performance conditions and the
impact of any non-vesting conditions but excludes the impact
of any service and non-market performance vesting conditions.
Non-market vesting conditions are included in assumptions
about the number of rights that are expected to vest which
are revised at the end of each reporting period. The impact
of the revision to original estimates, if any; is recognised in
the consolidated statement of comprehensive income, with a
corresponding adjustment to equity.
The fair value is measured at grant date and the expense
recognised over the life of the plan. The fair value is determined
using a Black-Scholes pricing model that takes into account
the exercise price, the term of the right, the impact of dilution,
the share price at grant date and expected price volatility of the
underlying share, the expected dividend yield and the risk-free
interest rate for the term of the rights.
(u) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the
amount of associated GST, unless the GST incurred is not
recoverable from the taxation authority. In this case it is
recognised as part of the cost of acquisition of the asset or as
part of the expense.
Receivables and payables are stated inclusive of the amount of
GST receivable or payable. The net amount of GST recoverable
from, or payable to, the taxation authority is included with other
receivables or payables in the consolidated balance sheet.
Cash flows are presented on a gross basis. The GST
components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the taxation
authority, are presented as operating cash flows.
42
(v) Store Opening Costs
Non-capital costs associated with the setup of a new store are
expensed in the period in which they are incurred.
(w) Dividends
Provision is made for the amount of any dividends declared,
determined or publicly recommended by the Directors on or
before the end of the financial period but not distributed at
balance date.
(x) Contributed Equity
Ordinary Shares are classified as equity. Incremental costs
directly attributable to the issue of new shares or options are
shown in equity as a deduction, net of tax, from the proceeds.
(y) Earnings Per Share
(i) Basic Earnings Per Share
Basic earnings per share is determined by dividing net profit
after income tax attributable to members of the Group,
excluding any costs of servicing equity other than ordinary
shares, by the weighted average number of ordinary shares
outstanding during the financial period, adjusted for bonus
elements in ordinary shares issued during the period 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.
(i) Investments in Subsidiaries
Investments in subsidiaries are accounted for at cost in the
financial report of Beacon Lighting Group Limited.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entitiesBEACON LIGHTING GROUP ANNUAL REPORT 2023 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
Derivative financial instruments
FINANCIAL LIABILITIES
Trade and other payables
Borrowings
Lease Liabilities
FY2023
$’000
20,682
13,200
121
34,003
19,164
22,405
126,977
168,546
FY2022
$’000
27,996
8,591
330
36,917
30,694
19,561
124,460
173,871
43
BEACON LIGHTING GROUP ANNUAL REPORT 2023 (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 25 June 2023 the average term of outstanding foreign exchange contracts is three months with an average forward rate for AUD/
USD of 0.6758.
The Group holds the following foreign exchange derivatives:
Consolidated Entity
Forward exchange contracts - buy cash flow hedges (notional amount)
FY2023
$’000
11,048
FY2022
$’000
2,967
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 27.93% (2022: 35.47%) of the variable loan principal outstanding. The fixed
interest rate of the swap used to hedge is 2.47% (2022: 2.47%) and the variable rate of the loan 4.15% (2022: 0.42%).
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)
FY2023
$’000
6,188
FY2022
$’000
6,188
Amounts recognised in profit or loss and other comprehensive income
During the year, the following gains were recognised in profit or loss and other comprehensive income in relation to forward exchange
contracts and interest rate swaps.
Consolidated Entity
Gain recognised in other comprehensive income (net of tax)
FY2023
$’000
(209)
FY2022
$’000
348
44
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entitiesBEACON LIGHTING GROUP ANNUAL REPORT 2023 Group Sensitivity
At 25 June 2023, 27.93% (2022: 35.47%) 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
Intrinsic value of outstanding hedging instruments
FY2023
$’000
(1,105)
1,105
11
(11)
FY2023
$’000
73
11,048
FY2022
$’000
(296)
296
27
(27)
FY2022
$’000
(271)
2,967
September 2023
September 2022 to
October 2022
1:1
(73)
1:1
271
Weighted average strike rate for the year
USD$0.6758 : AUD$1
USD$0.7606 : AUD$1
Interest rate swap contracts
Carrying amount - asset / (liability)
Notional amount
Maturity Date
Hedge Ratio
Intrinsic value of outstanding hedging instruments
Weighted average strike rate for the year
48
6,188
329
6,937
15 November 2023
15 November 2023
1:1
(48)
2.47%
1:1
(329)
2.47%
45
BEACON LIGHTING GROUP ANNUAL REPORT 2023 (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
FY2023
$’000
FY2022
$’000
500
10,000
25,500
4,000
4,041
15,000
500
10,000
6,347
4,000
1,202
12,000
500
10,000
25,500
4,000
4,023
15,000
500
10,000
5,939
3,825
3,268
15,000
The tables below analyse the Group’s financial liabilities into relevant maturity groupings as follows:
(a) Based on their contractual maturities:
(i) All non-derivative financial liabilities, and
(ii) Net and gross settled derivative financial instruments for which the contractual maturities are essential for an understanding of
the timing of the cash flows.
(b) Based on the remaining period to the expected settlement date:
(i) Derivative financial liabilities for which the contractual maturities are not essential for an understanding of the timing of the cash
flows.
46
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entitiesBEACON LIGHTING GROUP ANNUAL REPORT 2023 The amounts disclosed in the table are the contractual undiscounted cash flows.
Contractual maturities of financial liabilities including lease liabilities:
Consolidated Entity
At 25 June 2023
NON-DERIVATIVES
Trade and other payables
Borrowings
Lease liabilities
Total non-derivatives
DERIVATIVES
Forward exchange contracts
Interest rate swap contract
Net settled (cash flow hedges)
At 26 June 2022
NON-DERIVATIVES
Trade and other payables
Borrowings
Lease liabilities
Total non-derivatives
DERIVATIVES
Forward exchange contracts
Interest rate swap contract
Net settled (cash flow hedges)
Less Than
12 months
$’000
Between
1 and 5 Years
$’000
Over
5 Years
$’000
Total
Contractual
Cash Flows
$’000
Carrying
Amount (Assets)
Liabilities
$’000
19,164
19,526
26,771
65,461
73
48
121
29,096
20,438
26,718
76,252
271
-
271
-
3,000
80,090
83,090
-
-
20,116
20,116
-
-
-
-
-
-
-
-
-
-
79,428
79,428
18,314
18,314
-
59
59
-
59
59
19,164
22,526
126,977
168,667
73
48
121
29,096
20,438
124,460
173,994
271
59
330
19,164
22,405
126,977
168,546
73
48
121
29,096
20,315
124,460
173,868
271
59
330
47
BEACON LIGHTING GROUP ANNUAL REPORT 2023 (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 25
June 2023, on a recurring basis.
At 25 June 2023
Derivatives used for hedging - Net Position
Level 2
$’000
121
Total
$’000
121
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 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entitiesBEACON LIGHTING GROUP ANNUAL REPORT 2023 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
Other
Interest Income
FY2023
$’000
FY2022
$’000
311,955
304,299
489
-
489
484
10
494
312,444
304,793
FY2023
$’000
90
187
277
FY2022
$’000
109
171
280
49
BEACON LIGHTING GROUP ANNUAL REPORT 2023 6. EXPENSES
Consolidated Entity
(a) PROFIT BEFORE INCOME TAX INCLUDES THE FOLLOWING SPECIFIC EXPENSES:
Depreciation
Furniture, fittings and equipment and buildings
Depreciation – right of use assets
Motor vehicles
Amortisation
Patents, trademarks and other rights
Finance costs
Interest and finance charges paid/payable
Net (profit)/loss on disposal of property, plant and equipment
Employee benefits
(b) NET FOREIGN EXCHANGE GAINS AND LOSSES
FY2023
$’000
FY2022
$’000
5,227
4,792
25,119
23,707
443
419
20
20
6,648
(36)
5,764
(23)
72,459
69,141
Net foreign exchange (gains)/losses recognised in profit before income tax for the period (as
either other income or expense)
(177)
(357)
50
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entitiesBEACON LIGHTING GROUP ANNUAL REPORT 2023 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% (2022: 30%)
Tax effect of amounts which are not deductible in calculating taxable
income:
Entertainment
Sundry items
Income tax expense
FY2023
$’000
14,411
84
44
14,539
39
-
39
48,182
14,455
45
39
14,539
FY2022
$’000
17,548
(245)
-
17,303
145
-
145
58,029
17,409
29
(135)
17,303
51
BEACON LIGHTING GROUP ANNUAL REPORT 2023 8. CASH AND CASH EQUIVALENTS
Consolidated Entity
Cash at bank and in hand
(a) Classification as Cash Equivalents
FY2023
$’000
20,682
FY2022
$’000
27,996
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
FY2023
$’000
9,842
(398)
9,444
3,756
13,200
FY2023
$’000
9,014
309
393
126
FY2022
$’000
8,331
(426)
7,905
686
8,591
FY2022
$’000
7,833
281
(24)
241
9,842
8,331
Consolidated Entity
Trade receivables (a)
Provision for impairment of receivables (b)
Net amounts receivable from customers
Other debtors (c)
(a) Aging of Trade Receivables
Trade receivables ageing analysis at period end is:
Consolidated Entity
Not past due
Past due 31-60 days
Past due 61-90 days
Past due more than 91 days
52
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entitiesBEACON LIGHTING GROUP ANNUAL REPORT 2023 (b) Provision for Impairment of Receivables
Trade receivables are non-interest bearing with terms that vary between 30 and 60 days end of month. The Group applies the AASB
9 simplified approach to measuring expected credit losses which uses a lifetime expected loss allowance for all trade receivables. To
measure the expected credit losses, trade receivables have been grouped based on shared credit risk characteristics and the days
past due.
The expected loss rates are based on the payment profiles of sales over a period of 36 months before 25 June 2023 or 26 June
2022 respectively and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted
to reflect current and forward looking information on macroeconomic factors affecting the ability of the customers to settle the
receivables.
On that basis, the loss allowance as at 25 June 2023 and 26 June 2022 was determined as follows for both trade receivables:
25 June 2023
Expected loss rate
Gross carrying amount - trade receivables ($’000)
Loss allowance ($’000)
Current
31-60 days
past due
61 - 90
days past
due
More than
90 days
past due
Total
-
9,014
-
-
309
-
69.2%
100.00%
393
272
126
126
9,842
398
26 June 2022
Current
31-60 days
past due
61 - 90
days past
due
More than
90 days
past due
Total
Expected loss rate
1.65%
20.00%
-
100.00%
Gross carrying amount - trade receivables ($’000)
Loss allowance ($’000)
7,833
129
281
56
(24)
-
241
241
8,331
426
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 2023
(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. As at 25 June 2023, other
debtors substantially related to loans to the related party the Large Format Property Fund. Details regarding the interest rate and
repayment terms of the loan are outlined in Note 33 Related Party Transactions.
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
FY2023
$’000
96,294
642
96,936
FY2022
$’000
87,800
5,294
93,094
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 25 June 2023 and included in cost of sales of goods amounted
to $100,622,312 (2022: $93,930,976).
Write-downs of inventories to net realisable value recognised as an expense during the 52 week period ended 25 June 2023 amounted
to $823,366 (2022: $17,629).
Included in the valuation of inventory is a provision for stock obsolescence of $2,373,004 (2022: $1,549,637).
Critical Accounting Judgements, Estimates and Assumptions:
The provision for stock obsolescence 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 stock obsolescence.
54
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entitiesBEACON LIGHTING GROUP ANNUAL REPORT 2023 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
FY2023
$’000
FY2022
$’000
73
48
121
121
271
59
330
330
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 25 June 2023 there were no gains or losses (2022: 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 FY2023 or FY2022 in relation to the interest rate swaps.
55
BEACON LIGHTING GROUP ANNUAL REPORT 2023 Hedge Reserves
The Group’s hedging reserves disclosed in Note 25 relate to the following hedging instruments:
Consolidated Entity
Opening balance 26 June 2022
Add Change in fair value of hedging instrument
recognised in Other Comprehensive Income
Less Deferred Tax
Closing balance 26 June 2022
Add Change in fair value of hedging instrument
recognised in Other Comprehensive Income
Less Deferred Tax
Closing balance 25 June 2023
Currency
Forwards
$'000
328
(81)
(24)
271
(283)
(85)
73
Interest Rate
Swaps
$'000
(346)
578
173
59
(16)
(5)
48
Total Hedge
Reserves
$'000
(18)
497
149
330
(299)
(90)
121
56
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entitiesBEACON LIGHTING GROUP ANNUAL REPORT 2023 12. OTHER CURRENT ASSETS
Consolidated Entity
Prepayments and other current assets
13. PROPERTY, PLANT AND EQUIPMENT
FY2023
$’000
2,177
FY2022
$’000
1,751
Consolidated Entity
Year ended 26 June 2022
Opening net book amount
Additions
Disposals
Depreciation charge
Closing net book amount
At 26 June 2022
Cost
Accumulated depreciation
Net book amount
Year ended 25 June 2023
Opening net book amount
Additions
Disposals
Depreciation charge
Closing net book amount
At 25 June 2023
Cost
Accumulated depreciation
Net book amount
Furniture,
Fittings and
Equipment
$’000
Vehicles
$’000
Land and
Buildings
$’000
Total
$’000
31,929
9,043
(672)
(4,766)
35,534
67,218
(31,684)
35,534
35,534
11,135
(158)
(5,201)
41,310
78,015
(36,704)
41,311
1,698
561
(16)
(419)
1,824
3,762
(1,938)
1,824
1,824
509
(30)
(443)
1,860
4,040
(2,180)
1,860
1,625
35,252
-
-
(26)
1,599
1,673
(74)
1,599
1,599
-
-
(26)
1,573
1,673
(100)
1,573
9,604
(688)
(5,211)
38,957
72,653
(33,696)
38,957
38,957
11,644
(188)
(5,670)
44,743
83,727
(38,984)
44,744
57
BEACON LIGHTING GROUP ANNUAL REPORT 2023 14. INVESTMENT IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD
Consolidated Entity
Shares in associates at carrying amount at start of period
Acquisitions
Cash distributions received
Net Share of associates profit / (Losses)
Carrying amount at end of period
Refer to note 34(b) for details of the Group’s associates
FY2023
$’000
19,971
125
(429)
296
FY2022
$’000
15,241
4,730
-
-
19,963
19,971
58
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entitiesBEACON LIGHTING GROUP ANNUAL REPORT 2023 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
Total deferred tax liabilities
MOVEMENTS IN NET DEFERRED TAX ASSETS
FY2023
$’000
FY2022
$’000
2,372
1,971
208
105
904
147
38,299
1,136
45,142
2,441
1,235
207
124
295
442
37,286
2,001
44,031
32,763
32,763
31,378
31,378
Opening balance
12,653
13,528
Charged/(credited) to the consolidated statement of comprehensive income
(Note 7)
Charged/(credited) amounts recognised on acquisitions
Charged/(credited) amounts recognised directly in equity
39
-
45
145
(630)
(390)
Net deferred tax assets
12,737
12,653
59
BEACON LIGHTING GROUP ANNUAL REPORT 2023 16. INTANGIBLE ASSETS
Consolidated Entity
Year ended 26 June 2022
Opening net book amount
Additions
Amortisation charge for the year
Closing net book amount
At 26 June 2022
Cost
Accumulated amortisation
Net book amount
Year ended 25 June 2023
Opening net book amount
Additions
Amortisation charge for the year
Closing net book amount
At 25 June 2023
Cost
Accumulated amortisation
Net book amount
Goodwill
$’000
Patents,
Trademarks and
Other Rights
$’000
13,578
-
-
13,578
13,578
-
13,578
13,578
50
-
13,628
13,628
-
13,628
160
-
(20)
140
500
(360)
140
140
-
(20)
120
500
(380)
120
Total
$’000
13,738
-
(20)
13,718
14,078
(360)
13,718
13,718
50
(20)
13,748
14,128
(380)
13,748
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 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entitiesBEACON LIGHTING GROUP ANNUAL REPORT 2023 (a) Impairment Tests for Goodwill
Goodwill is allocated to the Group’s one operating segment 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
2023
%
67.7
2022
%
65.0
2023
%
3.0
2022
%
3.0
2023
%
11.1
2022
%
11.1
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 units or operating segment.
17. TRADE AND OTHER PAYABLES
Consolidated Entity
Trade payables
Customer deposits
Sundry creditors
Marketing fund
Other payables
FY2023
$’000
7,004
4,071
7,233
491
365
FY2022
$’000
12,457
5,977
8,004
1,474
1,184
19,164
29,096
(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 2023 18. CURRENT BORROWINGS
Consolidated Entity
Secured
Trade finance (a)
Interchange facility (b)
FY2023
$’000
-
19,405
19,405
FY2022
$’000
-
20,315
20,315
(a) Trade Finance
The Group utilises trade finance facilities to fund inventory. The total available facility in FY2023 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) 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
FY2023.
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)
Make good provision (c)
Trade Loyalty Provision (c)
Other provisions (c)
62
FY2023
$’000
7,271
1,655
26
1,988
392
FY2022
$’000
7,215
2,030
26
845
840
11,332
10,956
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entitiesBEACON LIGHTING GROUP ANNUAL REPORT 2023 (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
FY2023
$’000
4,514
FY2022
$’000
4,887
(b) Warranty Provision
The Group generally offers different warranties on different 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
$165,000 (2022: $203,000) 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
FY2023
$’000
2,030
(375)
1,655
FY2022
$’000
1,570
460
2,030
Provision is made for trade loyalty expense, make good expense and fringe benefit tax payable at the end of the reporting period. The
trade loyalty provision relates to the accumulation of award points for purchases which entitle the Trade Club members to discounts
on future purchases. The Trade Club was relaunched during FY2023.
Movements in Other Provisions
Consolidated Entity
Carrying amount at the start of the year
Charged to profit or loss - amount incurred and charged
Carrying amount at end of period
FY2023
$’000
1,711
695
2,406
FY2022
$’000
1,359
352
1,711
63
BEACON LIGHTING GROUP ANNUAL REPORT 2023 20. CURRENT TAX LIABILITIES
Consolidated Entity
Provision for income tax
21. NON CURRENT BORROWINGS
Consolidated Entity
Secured
Loan facility floating rate (a)
(a) Loan Facility Floating Rate
FY2023
$’000
2,208
FY2022
$’000
1,783
FY2023
$’000
FY2022
$’000
3,000
-
The Group utilises floating rate loan facilities to fund business acquisitions. The total available facility is $15,000,000. The term of the
facility is two years and was entered into during FY2023.
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 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 25 June 2023 and the 52
weeks ended 26 June 2022.
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 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entitiesBEACON LIGHTING GROUP ANNUAL REPORT 2023 22. NON CURRENT PROVISIONS
Consolidated Entity
Employee benefits
Make Good
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
FY2023
$’000
672
1,065
1,737
FY2022
$’000
736
1,065
1,801
FY2023
$’000
FY2022
$’000
108,017
104,046
-
-
444
104
108,017
105,186
26,771
100,206
126,977
FY2023
$’000
-
-
25,251
25,251
4,919
4,919
26,718
97,742
124,460
FY2022
$’000
26
16
23,763
23,805
4,572
4,572
65
BEACON LIGHTING GROUP ANNUAL REPORT 2023 Total cash outflows for leases for the period ended 25 June 2023 were $31,644,510 (2022 : $29,754,868)
Additions made to the right of use asset during the year were $28,647,630 (2022 : $27,005,554)
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 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 $14,344,386.
66
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entitiesBEACON LIGHTING GROUP ANNUAL REPORT 2023 24. CONTRIBUTED EQUITY
Consolidated Entity
FY2023
FY2022
Number of ordinary shares, fully paid
224,596,289
223,321,406
Movements in ordinary share capital
Balance at the beginning of the year
Dividend reinvestment plan share issue
Balance at the end of the year
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
223,321,406
223,321,406
1,274,883
-
224,596,289
223,321,406
FY2023
$’000
72,312
2,156
74,468
FY2022
$’000
72,312
-
72,312
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. The gearing ratio for FY2023 was 1.16% (FY2022: (5.73%))
67
BEACON LIGHTING GROUP ANNUAL REPORT 2023 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
FY2023
$’000
121
155
1,414
(354)
(43,672)
(42,336)
330
(209)
121
30
125
155
1,307
107
1,414
(262)
(92)
(354)
FY2022
$’000
330
30
1,307
(262)
(43,672)
(42,267)
(18)
348
330
(297)
327
30
740
567
1,307
(108)
(154)
(262)
(43,672)
(43,672)
-
-
(43,672)
(43,672)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entitiesBEACON LIGHTING GROUP ANNUAL REPORT 2023 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
Net profit for the period
Dividends paid
FY2023
$’000
FY2022
$’000
104,090
33,643
(20,769)
116,964
83,240
40,726
(19,876)
104,090
69
BEACON LIGHTING GROUP ANNUAL REPORT 2023 26. DIVIDENDS
(a) Ordinary Shares
Consolidated Entity
Final dividend for period ended 26 June 2022 of 5.0 cents (2021: 4.6 cents) per
fully paid share
Interim dividend for period ended 25 June 2023 of 4.30 cents (2022: 4.30 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 re-instated in FY2023.
(b) Dividends not recognised at the End of the Reporting Period
FY2023
$’000
FY2022
$’000
11,166
10,273
9,603
20,769
18,613
2,156
20,769
9,603
19,876
19,876
-
19,876
Consolidated Entity
In addition to the above dividends, since year end the Directors have
recommended the payment of a final dividend of 4.0 cents per fully paid
ordinary share (2022: 5.0 cents), fully franked based on tax paid at 30%. The
proposed dividend is to be paid out of retained earnings at 25 June 2023, but not
recognised as a liability at year end.
FY2023
$’000
FY2022
$’000
8,984
11,166
70
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entitiesBEACON LIGHTING GROUP ANNUAL REPORT 2023 c) Franked Dividends
The franked portions of the final dividends recommended after 25 June 2023 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 25 June 2023.
Consolidated Entity
Franking credits available for subsequent reporting periods based on a tax rate of
30% (2022: 30%)
FY2023
$’000
FY2022
$’000
65,599
60,159
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
FY2023
$
FY2022
$
1,153,229
1,308,440
95,105
18,268
-
224,499
109,028
(69,956)
212,000
311,128
1,491,101
1,870,640
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.
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 2023 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
FY2023
108,718
$1.95
FY2023
-
-
FY2022
144,021
$1.84
FY2022
33,967
$1.84
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 25 June 2023 included:
Exercise price
Grant date
Share price at grant date
Expected dividend yield
FY2023
$0.00
FY2022
$0.00
18 August 2022
19 August 2021
$1.95
4.25%
$1.84
4.25%
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
FY2023
-
-
-
-
FY2022
$0.00
19 August 2021
$1.84
4.25%
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 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entitiesBEACON LIGHTING GROUP ANNUAL REPORT 2023 (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:
FY2023
$’000
FY2022
$’000
Performance rights and options issued under employee STI plans
307
288
29. EARNINGS PER SHARE
Consolidated Entity
FY2023
FY2022
Basic earnings per share - cents
Diluted earnings per share - cents
15.05
15.05
18.24
18.24
Weighted average number of ordinary shares used as the denominator in
calculating basic earnings per share
223,598,913
223,321,406
Weighted average number of ordinary shares and potential ordinary shares used
as the denominator in calculating diluted earnings per share
223,598,913
223,321,406
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
FY2023
$
FY2022
$
Audit and review of financial statements
308,400
270,350
Other services:
Taxation services
Total remuneration of PwC
31. CONTINGENCIES
10,000
318,400
19,510
289,860
There were no significant or material contingent liabilities including legal claims as at 25 June 2023 or 26 June 2022.
73
BEACON LIGHTING GROUP ANNUAL REPORT 2023 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)
FY2023
$’000
FY2022
$’000
-
-
-
-
-
-
-
-
178
-
178
(3)
175
175
-
175
(b) Significant capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is $2.76m (2022:
$2.2m).
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
FY2023
$
FY2022
$
Purchases of goods and supply of services from other related parties
1,488
16,827
Other transactions
Income received from other related parties
Rent and outgoings paid to other related parties
Payments for equity interest in associate
Loan to associate
Cash Distribution from interest in associate
Income from equity interest in associate
74
75,000
109,500
(1,417,405)
(1,007,942)
(125,000)
(4,840,000)
(2,518,000)
(100,000)
429,474
296,307
286,366
216,532
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entitiesBEACON LIGHTING GROUP ANNUAL REPORT 2023 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 $199,900 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 $255,000 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 $102,900 per annum increasing by CPI annually. The lease expired on 1 September 2019 and is being held over on month to
month arrangements.
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.
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 $19,267,000 in this Fund (2022 : $19,971,000).
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. At 25 June 2023, the Fund controls seven sub funds and had acquired seven properties.
Farrlong Pty Ltd as trustee for the Bacalla Trust which is controlled by the Robinson Family owns 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%.
Accordingly, the Large Format Management Company Pty Ltd and the Large Format Property Fund are recognised at 25 June 2023
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 $233,398 per annum increasing by 3% annually. The lease expires in 2027 with one further right of renewal
for a period of five years.
The Large Format Property Fund has a 100% interest as owner of the Modbury store leased by Beacon Lighting on arms length terms.
The current rent is $209,140 per annum increasing by 3% annually. The lease expires in 2029 with one further right of renewal for a
period of eight years.
The Large Format Property Fund has a 100% interest as owner of the Traralgon store leased by Beacon Lighting on arms length terms.
The current rent is $178,410 per annum increasing by 3% annually. The lease expires in 2029 with two further rights of renewal for a
period of seven years.
The Large Format Property Fund has a 100% interest as owner of the Southport store leased by Beacon Lighting on arms length
terms. The current rent is $366,600 per annum increasing by 3% annually. The lease expires in 2030 with two further rights of renewal
for a period of seven years.
(d) Outstanding Balances
As at 25 June 2023 The Large Format Property Fund owed The Group $2,518,000 (FY2022 : $100,000). Interest is payable on the
loan at a rate of BBSW plus 1.7% and repayment of the loan is a the discretion of the lender with at least 40 business days notice.
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 2023 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)
2023 %
2022 %
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 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entitiesBEACON LIGHTING GROUP ANNUAL REPORT 2023 (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
% Ownership Interest
2023 %
2022 %
Large Format Management Company Pty Ltd
Large Format Property Fund Pty Ltd
Large Format Property Fund
Australia
Australia
Australia
Large Format Property Subfund (Southport Nerang Road)
Australia
Large Format Property Subfund (Argyle Street)
Large Format Property Subfund (William Street)
Large Format Property Subfund (Parramatta Road)
Large Format Property Subfund (Bathurst)
Large Format Property Subfund (Modbury)
Large Format Property Subfund (Mildura)
Australia
Australia
Australia
Australia
Australia
Australia
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
Equity
45
45
50
50
50
50
50
50
50
50
45
45
50
50
50
50
50
50
50
50
The combined carrying value of the investment in associates at 25 June 2023 was $19,267,000 (FY2022 : $19,971,000)
77
BEACON LIGHTING GROUP ANNUAL REPORT 2023 (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
Loan
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 and subsidiaries
Large Format Property Fund
and Sub Funds
FY2023
$’000
FY2022
$’000
FY2023
$’000
FY2022
$’000
83
23
9
115
-
-
115
1
-
1
-
1
114
200
(86)
114
50
23
10
83
-
-
83
1
-
1
-
1
82
200
(118)
82
1,554
1,320
-
-
1
6
1,554
1,327
50,668
50,668
52,222
5,538
6,520
12,058
-
12,058
40,164
39,032
1,132
40,164
45,706
45,706
47,033
73
6,520
6,593
-
6,593
40,440
39,873
567
40,440
78
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entitiesBEACON LIGHTING GROUP ANNUAL REPORT 2023 (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 and subsidiaries
Large Format Property Fund
and Sub Funds
FY2023
$’000
96
(66)
FY2022
$’000
61
(134)
FY2023
$’000
1,607
(1,083)
FY2022
$’000
1,038
(528)
2
-
-
-
32
32
-
32
-
-
-
-
(73)
(73)
-
(73)
38
-
-
-
564
564
-
564
-
-
-
-
510
510
-
510
35. EVENTS OCCURRING AFTER THE REPORTING PERIOD
A fully franked dividend of $8,983,852 was declared on 16 August 2023.
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 2023 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
Other expenses
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
FY2023
$’000
33,643
30,823
(36)
20
(210)
307
(177)
(1,991)
(3,842)
(84)
(758)
(10,351)
424
1,157
48,925
Consolidated Entity
Balance as at 27 June 2021
Additions / (Cash Inflows)
Cash Outflows
Balance as at 26 June 2022
Balance as at 26 June 2022
Additions / (Cash Inflows)
Cash flows
Leases due
within 1 year
$’000
Leases due
after 1 year
$’000
Borrowings
due within 1
year
$’000
Borrowings
due after 1
year
$’000
(25,079)
(26,822)
25,183
(26,718)
(26,718)
(26,839)
26,786
(97,680)
(62)
-
(97,742)
(97,742)
(2,464)
-
(18,617)
(78,008)
77,064
(19,561)
(19,561)
(89,760)
89,916
-
-
-
-
(3,000)
(122,063)
-
116,702
Balance as at 25 June 2023
(26,771)
(100,206)
(19,405)
(3,000)
(149,382)
80
FY2022
$’000
40,726
28,877
(23)
20
564
288
(357)
(803)
(25,157)
875
(228)
5,351
(883)
2,404
51,654
Total
$’000
(141,376)
(104,892)
102,247
(144,021)
(144,021)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entitiesBEACON LIGHTING GROUP ANNUAL REPORT 2023 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 provisions, warranty provision, make good 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 shows the following aggregate amounts:
BEACON LIGHTING GROUP LIMITED
FY2023
$’000
FY2022
$’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 25 June 2023 or 26 June 2022.
19,474
88,614
108,088
1,100
-
1,100
17,293
88,596
105,889
1,498
1
1,499
106,988
104,390
98,785
211
7,992
96,628
164
7,598
106,988
104,390
1,162
1,162
1,795
1,795
81
BEACON LIGHTING GROUP ANNUAL REPORT 2023 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 25 June 2023 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
General and administration expenses
Profit before income tax
Income tax expense
Profit for the period attributable to the members of the closed Group
FY2023
$’000
50,532
(3,546)
46,986
(14,174)
32,812
FY2022
$’000
59,837
(3,602)
56,235
(16,798)
39,437
Total comprehensive income for the period attributable to the members of
the closed Group
32,812
39,437
82
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSFor the 52 weeks ended 25 June 2023 and the 52 weeks ended 26 June 2022 Beacon Lighting Group and its controlled entitiesBEACON LIGHTING GROUP ANNUAL REPORT 2023 CONSOLIDATED BALANCE SHEET OF THE CLOSED GROUP
Beacon Lighting Group Limited and Beacon Lighting Corporation Pty Ltd
Current assets
Cash and cash equivalents
Trade and other receivables
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
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
FY2023
$’000
3,351
3,747
11
82,674
89,783
12,649
90,583
103,232
193,015
-
2,838
711
1,733
5,282
3,425
3,425
8,707
FY2022
$’000
5,187
593
9
75,271
81,060
12,581
90,604
103,185
184,245
935
755
642
960
3,292
3,425
3,425
6,717
184,308
177,528
74,427
(7,255)
117,136
184,308
72,271
164
105,093
177,528
83
BEACON LIGHTING GROUP ANNUAL REPORT 2023 DIRECTORS'
Declaration
In the opinion of the Directors:
(a)
The Financial Statements and notes set out on pages 30 to 84 are in accordance with the Corporations Act 2001, 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 25 June 2023 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 39 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, 16 August 2023
Glen Robinson
Chief Executive Officer
84
BEACON LIGHTING GROUP ANNUAL REPORT 2023
85
BEACON LIGHTING GROUP ANNUAL REPORT 2023 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 25 June 2023 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 25 June 2023
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.
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.
PricewaterhouseCoopers, ABN 52 780 433 757
2 Riverside Quay, SOUTHBANK VIC 3006, GPO Box 1331, MELBOURNE VIC 3001
T: 61 3 8603 1000, F: 61 3 8603 1999
Liability limited by a scheme approved under Professional Standards Legislation.
86
BEACON LIGHTING GROUP ANNUAL REPORT 2023
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
Key audit matters
● Our audit focused on where the
● Amongst other relevant
Group made subjective judgements;
for example, significant accounting
estimates involving assumptions and
inherently uncertain future events.
topics, we communicated
the following key audit
matters to the Audit and
Risk Committee:
● 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.
− Existence and
valuation of
inventory
● These are further
described in the Key
audit matters section of
our report.
● For the purpose of our audit
we used overall Group
materiality of $2.4 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.
87
BEACON LIGHTING GROUP ANNUAL REPORT 2023
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 inventory (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 $96.9m. 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.
Judgement required by the Group to
determine which costs should be
included in the cost of inventory.
●
●
Judgement required by the Group to
estimate future selling prices to
determine the net realisable value of
inventory on hand.
We developed an understanding of the controls over
inventory.
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 a sample of the Group’s distribution
centres and stores.
Inspected the sales price of a sample of
inventory items sold during July 2023 to
determine whether items sold below cost
were included in the Group's inventory net
realisable value provision.
● Examined the appropriateness of the
provisioning 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 the
inventory obsolescence provision by
considering the gross margins recognised by
the Group, the inventory turnover ratio,
ageing and compared the provision to the
provision recognised in the prior period.
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 25 June 2023, but does not
include the financial report and our auditor’s report thereon.
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon.
88
BEACON LIGHTING GROUP ANNUAL REPORT 2023
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.
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 25 June 2023.
In our opinion, the remuneration report of Beacon Lighting Group Limited for the 52 week period
ended 25 June 2023 complies with section 300A of the Corporations Act 2001.
89
BEACON LIGHTING GROUP ANNUAL REPORT 2023
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BEACON LIGHTING GROUP LIMITED
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
Matthew Probert
Partner
Melbourne
16 August 2023
90
BEACON LIGHTING GROUP ANNUAL REPORT 2023
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 14 July 2023, 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
630
753
412
696
82
2,573
-
(b) Substantial Shareholdings
The number of shares held by the substantial shareholders listed in the Company’s register of substantial shareholders as at 14 July
2023 were:
Shareholder
Number of Shares
% Held
Heystead Nominees Pty Ltd (plus Robinson Family members)
124,564,216
55.46%
92
BEACON LIGHTING GROUP ANNUAL REPORT 2023 (c) Class of Shares and Voting Rights
At 14 July 2023, there were 2,573 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 14 July 2023:
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
123,889,741
55.16%
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
29,702,271
13.22%
CITICORP NOMINEES PTY LIMITED
NATIONAL NOMINEES LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
RELIABLE BUSINESS CO LTD
MR SPENCER RITCHEY KULP + MR BRIAN WALTER KULP
KJA HOLDINGS PTY LTD
10,183,010
8,002,508
7,278,361
1,865,268
1,004,000
782,739
4.53%
3.56%
3.24%
0.83%
0.45%
0.35%
BANJO SUPERANNUATION FUND PTY LTD
648,000
0.29%
BLUE BOAT HOLDINGS PTY LTD
CERTANE CT PTY LTD
BNP PARIBAS NOMINEES PTY LTD HUB24 CUSTODIAL SERV LTD
D & G RITCHIE SUPER PTY LTD
CARINDA PTY LTD
MR ALISTAIR CAMPBELL
NEWECONOMY COM AU NOMINEES PTY LIMITED
WARREN SUPER NOMINEES PTY LTD
BRETTON PTY LTD
MR WAYNE FRANCIS WODE + MRS JULIE MARIE WODE
JIGWAY PTY LTD
640,000
0.28%
611,442
605,112
0.27%
0.27%
500,000
0.22%
478,000
0.21%
453,775
0.20%
432,934
382,526
375,000
352,526
305,000
0.19%
0.17%
0.17%
0.16%
0.14%
Total 20 holders of ISSUED CAPITAL
188,492,213
83.92%
Total Remaining Holders Balance
Total Shareholders
36,104,076
16.08%
224,596,289
100.00%
93
BEACON LIGHTING GROUP ANNUAL REPORT 2023
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
Level 1
295 Whitehorse Road
Nunawading
Victoria
WEBSITE
Corporate site
www.beaconlightinggroup.com.au
Retail site
www.beaconlighting.com.au
Other business websites
www.beaconlightingtradeclub.com.au
www.beaconlightingcommercial.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.imaginesmartlighting.com
www.madebymayfair.com
www.beacontrade.com.au
94
BEACON LIGHTING GROUP ANNUAL REPORT 2023 STORE
Locations
Heidelberg
2-4 Dora St
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 &
Settlement Rds
Traralgon
73 Argyle St
Warrnambool
1-49 Raglan St
Watergardens
Homemaker Centre
440 Keilor-Melton Hwy
Waurn Ponds
Homemaker Centre
235 Colac Rd
(Princes Hwy)
NSW
Albury
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 West
Hometown
356 Manns Rd
Hornsby
Cnr Pacific Hwy
& Yardley Ave
Waitara
Killara
694 Pacific Hwy
Kotara
Kotara Home
108 Park Ave
Lake Haven
Home Mega Centre
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
Homemaker Centre
2 Patty’s Place
Port Macquarie
18 John Oxley Drive
Prospect
Homebase
19 Stoddart Rd
Rutherford
Harvey Norman Centre
366 New England Hwy
Shellharbour
146 New Lake
Entrance Rd
Taren Point
105 Parraweena Rd
Tuggerah
Super Centre
Cnr Bryant Ave &
Wynong 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
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
Hawthorn
291 Burwood Rd
96
BEACON LIGHTING GROUP ANNUAL REPORT 2023 QLD
Bundaberg
21 Johanna Bvd
Bundall
61 Upton St
Burleigh Heads
Reedy Creek Road
Cairns
331 Mulgrave Rd
Cannon Hill
Homemaker Centre
1881 Creek Rd
Capalaba
Freedom Home Centre
67 Redland Bay Rd
Carseldine
Homemaker Centre
1925 Gympie Rd
Bald Hills
Fortitude Valley
Homemaker City North
111 McLachlan St
Helensvale
Homeworld
502 Hope Island Rd
Hervey Bay
140 Boat Harbour Drv
Ipswich
Ipswich Riverlink
Shopping Centre
Cnr The Terrace
& Downs 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
Prime Northlakes
Cnr Lakes Dve & Mason St
Rockhampton
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
Butler
220 Camborne Parkway
Cannington
21 William St
Claremont
201-207 Stirling Hwy
Clarkson
Ocean Keys
Homemaker Centre
61 Key Largo Drv
Ellenbrook
180 The Promenade
Jandakot
South Central
Cockburn
87 Armadale Rd
Joondalup
3 Sundew Rise
Malaga
Home Centre
655 Marshall Rd
Mandurah
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
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 2023
www.beaconlighting.com.au