Beacon Lighting Group Limited
ANNUAL
REPORT
2024
Chairman and Chief Executive Officer’s Report
1
Board of Directors
4
Management Team
6
Corporate Governance Statement
8
Directors’ Report
14
Auditor’s Independence Declaration
35
Index to the Financial Statements
36
Consolidated Statement of Comprehensive Income
37
Consolidated Balance Sheet
38
Consolidated Statement of Changes in Equity
39
Consolidated Statement of Cash Flows
40
Notes to Consolidated Financial Statements
41
Consolidated Entity Discloure Statement 90
Directors’ Declaration
91
Independent Auditor’s Report to the Members
of Beacon Lighting Group Limited
92
Shareholders’ Information
96
Corporate Directory 98
Store Locations 100
Contents
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 14, which is not part of the financial report. The
financial report was authorised for issue by the Directors on 21 August 2024. The Directors have the power to amend and reissue the financial statements.
Chief Executive Officer’s Report
The Beacon Lighting Group is pleased to announce the financial results for FY2024. Beacon Lighting
achieved a sales result of $323.1 million and a Net Profit After Tax result of $30.1 million. In achieving this
financial result, the Board of Directors would like to thank the hard work of the Beacon Lighting team and
our retail, trade, and wholesale customers for their continued support.
GROUP OVERVIEW
The Beacon Lighting Group finished FY2024 with 126 stores
serving retail and trade customers: 124 company stores and 2
franchised stores. Beacon Commercial has sales offices in five
Australian capital cities, and its supply chain includes Group
operated distribution centres in Brisbane (QLD) and Melbourne
(VIC) and a 3PL warehouse in Perth (WA). The Beacon Group
Support Centre in Nunawading (VIC) supports all Beacon
Lighting businesses.
The summary of the Beacon Lighting Group's new businesses
is as follows:
• Beacon International has sales offices in Hong Kong,
Germany, and the United States of America, and a support
office based in China.
• Connected Light Solutions has a sales and support team
based in Australia.
• Light Source Solutions has a sales and support team based
in New Zealand.
• Custom Lighting has a designer showroom in Malvern (VIC).
• Masson For Light has an architectural lighting showroom in
Richmond (VIC).
• The Large Format Property Fund is managed by the property
team based at the Beacon Group Support Centre.
FY2024 IN REVIEW
In FY2024, the Beacon Lighting Group achieved sales of
$323.1 million (for 53 weeks) compared to $312.0 million
(for 52 weeks) last year. With an innovative product range
supported by outstanding customer service, Beacon Lighting
achieved a gross profit margin of 69.0% this year compared
to 67.7% last year. Some of the Group’s operating expenses
have been difficult to manage in the current inflationary
environment. Operating expenses have increased to 42.9% of
sales compared to 40.7% last year. Overall, Beacon Lighting
achieved a Net Profit After Tax result of $30.1 million (for 53
weeks) compared to $33.6 million (for 52 weeks) last year.
Beacon Lighting opened new stores in Mount Baker (SA),
Mildura (VIC), Devonport (TAS), Warrawong (NSW), Melton
(VIC), Gregory Hills (NSW) and Busselton (WA) and relocated
Cranbourne (VIC) to a new store. Company store comparative
sales in FY2024 were in line with last year on a 52 week
comparable basis. Western Australia, New South Wales and
Queensland achieved the best comparative sales results in
FY2024.
The momentum that Beacon Lighting has achieved in recent
years regarding Beacon Trade, has continued into FY2024.
Comparatively, trade sales in stores increased by 26.8%, and
total trade sales exceeded $100.0 million for the first time.
Referral sales from our trade customers exceeded $15.7
million, and our trade customers were rewarded with record
Beacon Cash rebates for all these sales. Our trade customers
have continued to appreciate the security and convenience of
the Beacon Trade website with an increase in sales of 47.0% on
a comparable basis.
Beacon Lighting has strengthened our mutually beneficial
relationships with our trade customers throughout FY2024.
Our trade customers have responded very well to many of our
trade initiatives, which included Beacon Cash rebates, new
trade-specific products, the referral program, trade perks, and
surprise and delight gifts. Beacon Trade has been rewarded by
an increase in the number of total trade customers, an increase
in active customers, and an increase in trade sales in both
stores and online. The success of Beacon Trade has helped to
offset a softening in sales to retail customers who have been
impacted by consumer confidence, interest rate uncertainty,
and cost of living pressures.
Beacon Commercial had a record sales and profit year by
winning market share in the volume residential builder’s
market. It was encouraging to see Beacon International's
strong sales performance in H2 FY2024, leading into the
Northern Hemisphere summer. Sales for Custom Lighting
and Masson For Light have been restricted by the number
of premium lighting projects and Light Source Solutions has
found trading conditions in New Zealand challenging. FY2024
has been a year of responding to tenders for Connected Light
Solutions which it is hoped will provide a foundation for future
sales success. Our retail website had good growth in sales,
while our trade customers are embracing our Beacon Trade
online sales channel in increasing numbers.
The Beacon Lighting supply chain operated smoothly
throughout FY2024 compared to the disruptions experienced
in previous years. Beacon Lighting was able to maintain a good
in stock position and provide a high level of service to our retail
and trade customers. Beacon Lighting finished the year with a
stock balance of $95.7 million which is comparable to last year.
The Beacon Lighting Group has a 50% investment in the Large
Format Property Fund. The Fund purchased an additional block
of land in Bathurst (NSW) adjacent to land already owned by
the Fund. Beacon Lighting has continued to support the Fund’s
development projects at Southport (QLD), Auburn (NSW) and
Bathurst (NSW). The other four Fund properties which include
Beacon Lighting stores were fully tenanted throughout FY2024.
CHAIRMAN &
1
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Highights
FY2024
Continued to REWARD our
TRADE CUSTOMERS with
+ NEW PRODUCT RANGES
+ MERCHANDISING DISPLAYS
+ WEBSITE ENHANCEMENTS
+ NEW TRADE PERKS and
+ RECORD BEACON
CASH REBATES
Sales result of
$323.1m
NPAT result of
$30.1m
EBITDA result of
$86.5m
Opened NEW stores in
• MOUNT BAKER (SA)
• MILDURA (VIC)
• DEVONPORT (TAS)
• WARRAWONG (NSW)
• MELTON (VIC)
• GREGORY HILLS (NSW)
• BUSSELTON (WA)
Relocated to
a new store at
CRANBOURNE (VIC)
BEACON COMMERCIAL
had record sales and profit results
INTERNATIONAL
sales increased by
18.8%
in H2 FY2024
ONLINE TRADE SALES
increased by
47.0%
TRADES SALES
through stores increased by
26.8%
TOTAL TRADE
SALES exceeded
$100m
for the first time
2
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 FY2024, the annually fully franked dividend was 7.9
cents per share while the H2 FY2024 fully franked dividend was
3.8 cents per share.
OUTLOOK
Beacon Lighting achieved a trade sales percentage of all
relevant sales of 36.5% in FY2024. The goal remains for
Beacon Lighting to have trade sales of 50% of all relevant sales
by FY2028. This continues to be the number one goal for the
Beacon Lighting team going into FY2025.
In FY2025, the Beacon Lighting Group is committed to the
following:
• Positively impacting upon the lives and businesses of our trade
customers through the introduction of new trade-specific
products, new trade merchandise, new trade marketing
initiatives, enhancing rewards for our trade customers, and
making it easier for our Trade Customers to shop in store
and online.
• Conduct “Trade Sales Immersion” training throughout the
Group.
• Implement the Beacon Lighting Enterprise Agreement 2024
and the new Beacon Team Share Plan.
• Bringing the latest fashion, innovative and energy efficient
lighting, fans, and electrical accessory products to market to
continue to excite and inspire our retail and trade customers.
• The planned opening of new company stores at Auburn
(NSW), Port Stephens (NSW), Shepparton (VIC), Chatswood
(NSW) and Ballina (NSW).
• Relocate the NSW Commercial and NSW Support Office to
the Auburn (NSW) property and relocate Bendigo (VIC) to a
new store.
• Realise some of the new international sales opportunities
by introducing more Australian-designed fan and lighting
products into the North American, Asian, and European
markets.
Ian Robinson
Executive Chairman
Glen Robinson
Chief Executive Officer
pillars of growth
STRATEGIC
The Beacon Lighting Group’s Strategic Pillars of Growth remain as follows:
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.
Includes the
emerging businesses,
international sales
expansion, new
business acquisitions
and property.
STORES
Partnering with
Electricians, Builders,
Architects, and Interior
Designers with lighting,
fans and electrical
accessories for the
Australian home.
TRADE
Providing our customers
with engaging websites,
enabling online sales
growth and providing for
a seamless customer
experience in-store and
online.
eCOMMERCE
NEW BUSINESS
3
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Glen Robinson
Chief Executive Officer
30 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 Fund Group. Glen holds a BBus (Management).
Ian Robinson
Executive Chairman
50 years of service
Ian Robinson purchased the first Beacon Lighting store in 1975. Over
the subsequent 49 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 Fund Group.
of Directors
BOARD
(James) Eric Barr
Deputy Chairman / Non-Executive Director
10 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 Fund Group. Eric is a Chartered Accountant.
4
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Daniel Palumbo
Non-Executive Director
2 years of service
Daniel Palumbo joined Beacon Lighting as an adviser to the Board
of Directors in 2022. Prior to joining Beacon Lighting, Daniel had a
career with the Reece Group including being a member of the Senior
Leadership Team demonstrating capability in improving financial
performance, operational excellence, customer growth and leadership.
Daniel was previously the Reece Chief Operations Officer. Daniel holds
a BBus (International Business).
Prue Robinson
Executive Director
18 years of service
Prue assumed her current role as Chief Marketing Officer and
Executive Director in January 2024. Prue joined Beacon Lighting in
2006 following a variety of roles in Sydney and London and four years
in marketing with Spotlight. Prue is a Director of the Large Format
Management Company Pty Ltd. Prue holds a BBus (Management &
Marketing).
Neil Osborne
Non-Executive Director
10 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 in 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 Fund 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.
5
BEACON LIGHTING GROUP ANNUAL REPORT 2024
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.
Team
MANAGEMENT
Damien Cummins
Executive General Manager - Trade
Joined Beacon Lighting in 2021 with over
25 years in management roles within the
building products industry including CEO
Clipsal and EGM of Gerard Lighting. Damien
holds a Graduate Diploma Marketing and
various executive certificates from Harvard
Business School and INSEAD Business School.
(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).
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
Eva Zelos joined the Beacon team in 2020
with nearly 20 years of experience in HR
operations and organisational planning across
various businesses. Eva holds a Diploma of
Management and various executive certificates
through the Melbourne Business School.
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.
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.
Tracey Hutchinson
Financial Controller
& Company Secretary
Joined Beacon Lighting in 2011 having had senior
financial management roles with
various ASX businesses, including Eyecare
Partners. Tracey holds a BBus (Accounting),
a MBus (Administration), a Graduate Diploma
of Corporate Governance and is a CPA.
Rodney Brown
General Manager – Supply Chain
Joined Beacon Lighting in 2012 with
extensive supply chain experience including
management roles with Cadbury
Schweppes and Fosters Brewing.
Lisa Kraps
General Manager - Product & Merchandising
Joined Beacon Lighting in 2011 and brings almost
20 years of experience in product development
and working with international suppliers across the
apparel and lighting industries. Lisa holds a BBus
degree and a Certificate IV in Design.
6
BEACON LIGHTING GROUP ANNUAL REPORT 2024
7
BEACON LIGHTING GROUP ANNUAL REPORT 2024
PRINCIPLE 1
Lay Solid Foundations for Management and Oversight
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.
PRINCIPLE 2
Structure the Board to be Effective and Add Value
The experience and expertise relevant to the position of
Director held by each Director in office at the date of the annual
report is included in the Directors’ Report.
The term in office held by each Director in office at the date of
this report is as follows:
Note: These terms of office relate to the listed entity Beacon
Lighting Group Limited only and do not relate to the subsidiary
or operating entities.
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.
Prue Robinson is a senior executive of Beacon Lighting and
has been Chief Marketing Officer since January 2024.
Daniel Palumbo is an independent Non-Executive Director
and brings objective judgment to bear on Board decisions
commensurate with his commercial knowledge, experience
and expertise.
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 21 August 2024. 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).
NAME
TERM IN OFFICE
Ian Robinson
11 years
Eric Barr
10 years
Glen Robinson
10 years
Neil Osborne
10 years
Prue Robinson
6 months
Daniel Palumbo
6 months
Governance Statement
CORPORATE
8
BEACON LIGHTING GROUP ANNUAL REPORT 2024
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, Neil Osborne and
Daniel Palumbo, as independent Non-Executive Directors.
Ian Robinson, Executive Chairman, is the other member. The
Committee is chaired by Eric Barr.
A copy of the Remuneration and Nomination Committee
Charter is available on the Group’s website.
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 that the Chairperson should be an
independent Director. The Board, as currently composed,
does not comply with these recommendations. The Board
considers that the composition of the Board is appropriate
given the Group's present circumstances.
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 and a Supplier Code of Conduct.
9
BEACON LIGHTING GROUP ANNUAL REPORT 2024
PRINCIPLE 4
Safeguard the Integrity of Corporate Reporting
Recommendation 4.1 of the ASX Corporate Governance
Principles and Recommendations, recommends that the
Audit Committee consist only of Non-Executive Directors and
consists of a majority of independent Directors. Beacon Lighting
has an Audit Committee comprising three members, each
of whom are considered independent. The Audit Committee
presently comprises Neil Osborne (Chairman), Eric Barr and
Daniel Palumbo. The three members of the committee are Non-
Executive Directors and two of the directors 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.
• Its relationship with the external auditor.
In accordance with Recommendation 4.2 the Board, before
it approves the Group's statements for a financial period,
ensures that it receives from its Chief Executive Officer and
Chief Financial Officer a declaration that, in their opinion, the
financial records of the Group have been properly maintained
and that the financial statements comply with the appropriate
accounting standards and give a true and fair view of the
financial position and performance of the entity and that the
opinion has been formed on the basis of a sound system of risk
management and internal control which is operating effectively.
In accordance with Recommendation 4.3, the Group shall
disclose the process used to verify the integrity of periodic
reports released to the market that are not audited or
reviewed by the Group’s external auditor to ensure that the
report is materially accurate, balanced and provides investors
with appropriate information to make informed investment
decisions. The Group's external auditor attends each annual
general meeting and are available to answer shareholders
questions about the audit.
PRINCIPLE 5
Make Timely and Balanced Disclosure
Recommendation 5.1 of the ASX Corporate Governance
Principles
and
Recommendations
recommends
that
companies should establish a written policy designed to ensure
compliance with ASX Listing Rule disclosure requirements and
to ensure accountability at a senior management level for that
compliance and disclose that policy or a summary of it. The
Group has adopted a Continuous Disclosure Policy. This Policy
sets out the standards, protocols and the detailed requirements
expected of all Directors, Officers, senior management and
associates of the Group for ensuring the Group immediately
discloses all price-sensitive information in compliance with
the Listing Rules and Corporations Act relating to continuous
disclosure.
The Board receives copies of all material market announcements
promptly after they have been made to ensure that the Board
has timely visibility of the nature and quality of the information
being disclosed to the market.
Where appropriate the Group will release copies of new and
substantive investor presentation materials on the ASX Market
Announcements Platform prior to their presentation.
PRINCIPLE 6
Respect the Rights of Security Holders
The Group has adopted a Communications Policy governing
its approach to communicating with its shareholders, market
participants, customers, associates and other stakeholders.
This policy specifically includes:
• The approach to briefing institutional investors, brokers and
analysts.
• The approach to communications with investors whether by
meetings, via the Group’s websites, electronically or by any
other means.
Beacon Lighting provides a printed copy of its annual report
to all requesting shareholders. The annual report contains
relevant information about the Group’s operations during the
year, changes in the state of affairs and other disclosures
required by the Corporations Act and Accounting Standards.
The half year report contains summarised financial information
and a review of Beacon Lighting operations during the period.
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.
10
BEACON LIGHTING GROUP ANNUAL REPORT 2024
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 FY2024, the safety and well being of our associates,
customers, business partners and the community continued to
be a priority of the Group.
Corporate
Conduct
Risks
could
impact
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.
11
BEACON LIGHTING GROUP ANNUAL REPORT 2024
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, Neil Osborne and Daniel
Palumbo as independent Directors. 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.
12
1. DIRECTORS
The Directors of the Group during the whole financial period
and up to the date of the report were:
Ian Robinson (1)
Executive Chairman
Chairman of the Board, Member of the Remuneration and
Nomination Committee.
Glen Robinson (1)
Chief Executive Officer
Eric Barr (1)
Non-Executive Director
Deputy Chairman of the Board, Chairman of the Remuneration
and Nomination Committee and Member of the Audit
Committee.
Neil Osborne (1)
Non-Executive Director
Chairman of the Audit Committee and Member of the
Remuneration and Nomination Committee.
Prue Robinson (2)
Chief Marketing Officer
Daniel Palumbo (2)
Non-Executive Director
Member of the Remuneration and Nomination Committee and
Member of the Audit Committee
Details of the expertise and experience of the Directors are
outlined on pages 4 and 5 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.
CONSOLIDATED ENTITY
Actual
FY2024
$’000
Actual
FY2023
$’000
Profit before Income Tax
43,303
48,182
Income Tax Expense
(13,201)
(14,539)
Net profit after tax attributable
to the members of Beacon
Lighting Group Limited
30,102
33,643
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 53 weeks ended 30 June 2024.
4. OPERATING AND FINANCIAL REVIEW
4.1 Overview of Operations
The Beacon Lighting Group is Australia’s leading retailer,
eCommerce, and trade supplier of lighting, ceiling fans, and
electrical accessories. In addition to its core operations, Beacon
Lighting oversees several specialised lighting businesses under
different brand names across Australia. Internationally, Beacon
International extends the Group’s reach through wholesale
operations in various countries. Additionally, Beacon Lighting
holds a 50% stake in the Large Format Property Fund, which
owns seven large format retail properties.
At the end of FY2024, Beacon Lighting operated in Australia
(unless otherwise stated) the following trading businesses:
• 124 Beacon Lighting company stores.
• 2 Beacon Lighting franchised stores.
• 5 Beacon Commercial sales offices.
• Beacon International sales offices in Hong Kong, Germany,
the United States of America, and a support office in China.
• Light Source Solutions sales office in New Zealand.
• Connected Light Solutions.
• Masson For Light.
• Custom Lighting.
• Beacon Lighting Wholesale.
3. RESULTS
The consolidated profit for the year attributable to the members
of Beacon Lighting Group Limited was:
Report
DIRECTORS'
(1) Director for the whole financial period ended 30 June 2024
(2) Director for the period 1 January 2024 to 30 June 2024
14
BEACON LIGHTING GROUP ANNUAL REPORT 2024
The trading businesses are supported by a supply chain, which
includes Beacon Lighting operated warehouses in Brisbane
(QLD) and Melbourne (VIC) and a 3PL warehouse in Perth (WA).
A Beacon Group Support Centre based in Nunawading (VIC)
supports all businesses.
Beacon Lighting is a vertically integrated business that designs,
develops,
sources,
imports,
distributes,
merchandises,
markets, and sells our product range to meet the needs of
our retail, eCommerce and trade customers. More than 95%
of the lighting, fan, and electrical accessory products sold by
Beacon Lighting are supplied through the Beacon Lighting
supply chain. More than 85% of the products sold by Beacon
Lighting are designed in-house in Melbourne (VIC), Australia
and exclusively branded for the Beacon Lighting Group.
Beacon Lighting has a 50% interest in the Large Format
Property Fund, which owns seven retail properties. Four of
these properties were fully tenanted throughout FY2024,
and three properties were development projects. In FY2024,
the Fund acquired additional land in Bathurst for future
development adjacent to land already owned by the Fund.
15
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Consolidated Entity
FY2024
$’000
FY2023
$’000
Change
$’000
Change
%
Sales
323,063
311,955
11,108
3.6%
Gross Profit
222,816
211,333
11,483
5.4%
Other Income (1)
2,270
1,461
809
55.4%
Operating Expenses (2)
(138,601)
(127,121)
(11,480)
9.0%
EBITDA (3)
86,485
85,673
812
0.9%
EBIT (3)
51,765
54,830
(3,065)
(5.6%)
Net Profit After Tax
30,102
33,643
(3,541)
(10.5%)
(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
4.2 Financial Summary
4.2.1 Financial Result
In presenting the financial results for FY2024, the Directors of Beacon Lighting believe that the presentation of non-IFRS measures
is useful for the users of these financial reports as they provide additional insight into the Group’s financial performance. Non-IFRS
financial measures contained within this report are not subject to audit or review.
A summary of the FY2024 statutory result compared to the FY2023 statutory result is presented in the following table:
16
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Consolidated Entity
Statutory
FY2024
$'000(1)
Less
53rd Week
$'000(2)
Underlying
FY2024
$'000 (3)
Sales
323,063
6,004
317,059
Gross Profit
222,816
4,290
218,526
Other Income (4)
2,270
14
2,256
Operating Expenses (5)
(138,601)
(2,805)
(135,796)
EBITDA (6)
86,485
1,500
84,985
EBIT (6)
51,765
880
50,885
Net Profit After Tax
30,102
533
29,569
(1) Statutory FY2024 result was for a 53 week year based on the retail accounting calendar
(2) Eliminating the 53rd week in FY2024 based on the alignment to the retail marketing program in FY2023
(3) FY2024 52 week underlying result to be used as a comparison to the FY2023 statutory result
(4) Other Income includes other revenue, other income and a share of net profit of associates
(5) Operating Expenses excludes interest, depreciation and amortisation
(6) Non-IFRS financial measures
Consolidated Entity
Underlying
FY2024
$’000(1)
Statutory
FY2023
$’000
Change
$’000
Change
%
Sales
317,059
311,955
5,104
1.6%
Gross Profit
218,526
211,333
7,193
3.4%
Other Income (2)
2,256
1,461
795
54.4%
Operating Expenses (3)
(135,796)
(127,121)
(8,675)
6.8%
EBITDA (4)
84,985
85,673
(688)
(0.8%)
EBIT (4)
50,885
54,830
(3,945)
(7.2%)
Net Profit After Tax
29,569
33,643
(4,074)
(12.1%)
(1) FY2024 52 week underlying result
(2) Other Income includes other revenue, other income and a share of net profit of associates
(3) Operating Expenses excludes interest, depreciation and amortisation
(4) Non-IFRS financial measures
It is difficult to compare the Statutory FY2024 result to the Statutory FY2023 result. The Statutory FY2024 result was for 53 weeks,
while the Statutory FY2023 result was for 52 weeks. To make the results comparable, it is necessary to adjust the Statutory FY2024
result by one week to produce an Underlying FY2024 result. A reconciliation of the Statutory FY2024 result to the Underlying FY2024
result is presented in the following table:
A comparable result of the Underlying FY2024 result to the Statutory FY2023 result is presented in the following table:
17
BEACON LIGHTING GROUP ANNUAL REPORT 2024
4.2.2 Sales
In FY2024, Beacon Lighting achieved sales of $323.1 million (for
53 weeks) compared to $312.0 million (for 52 weeks) last year.
Company store comparative sales were in line with last year
on 52 week comparable basis. The best comparative sales
results were achieved in Western Australia, New South Wales,
and Queensland. Beacon Lighting Commercial continued on
the momentum of recent years with another record sales result
in FY2024. Beacon International sales increased in FY2024,
primarily due to the positive sales momentum achieved in H2
FY2024. Sales declined for Connected Light Solutions, Light
Source Solutions, Custom Lighting, and Masson For Light.
4.2.3 Gross Profit
Beacon Lighting has increased the gross profit margins to
69.0% in FY2024 from 67.7% last year. The Group margins have
been maintained or improved while still offering outstanding
value to our retail and trade customers. There has been an
increase in the average sale price along with an increase in the
average items per transaction. From a cost base perspective,
there has been a slight decline in the AUD/USD exchange rate
on purchases which has been partially offset by a decline in the
freight rates comparing FY2024 to FY2023.
4.2.4 Other Income
Other income includes other income, other revenue, and a
share of the income from the Larger Format Property Fund.
Other income has increased to $2.3 million (for 53 weeks) in
FY2024 from $1.5 million (for 52 weeks) last year, primarily the
result of improved returns from the Large Format Property
Fund and interest income earned from cash and other financial
assets.
4.2.5 Operating Expenses
Operating Expenses have increased to $138.6 million (for 53
weeks) in FY2024 compared to $127.1 million (for 52 weeks)
last year. As a percentage of sales, operating expenses have
increased to 42.9% in FY2024 from 40.7% last year. Beacon
Lighting expenses have been impacted by inflation, with some
of these expense increases not being able to be managed by
the Beacon Lighting team. The opening of seven new company
stores has increased the selling and distribution expenses,
while marketing expenses have increased with the continued
investment in trade. General and Administration expenses have
increased due to inflation.
4.2.6 Earnings
Beacon Lighting achieved an EBITDA (Earnings Before Interest,
Tax, Depreciation and Amortisation) result of $86.6 million (for
53 weeks) in FY2024 compared to $85.7 million (for 52 weeks)
last year. The NPAT (Net Profit After Tax) result of $30.1 million
(for 53 weeks) in FY2024 compared to $33.6 million (52 weeks)
last year.
4.2.7 Dividends
The Directors of the Beacon Lighting Group have declared
a fully franked dividend of 7.9 cents per share for FY2024,
compared to 8.3 cents per share in FY2023. For H2 FY2024,
the Directors have declared a fully franked dividend of 3.8 cent
per share, compared to 4.0 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%.
4.2.8 Financial Position
Beacon Lighting has maintained a strong cash (or cash
equivalent) position throughout FY2024 and closed with
a balance of $46.2 million, including a term deposit. The
inventory balance has closed at $95.7 million, which has
enabled Beacon Lighting to maintain a good in stock position
throughout FY2024. The Receivable balances have increased
to $14.3 million, reflecting the success of the trade strategy.
Payables and (current) borrowings have increased providing
some additional funding to the Group. At the end of FY2024, the
Beacon Lighting Group maintained a strong net cash position.
Through a capital expenditure investment of $9.0 million,
Beacon Lighting has opened seven new stores, relocated
one new store, and made other infrastructure investments for
the future. An additional $1.1 million was loaned to the Large
Format Property Fund to acquire land adjacent to existing land
owned by the Fund.
4.3 Strategic Pillars of Growth
4.3.1 Stores
Beacon Lighting finished FY2024 with 124 company stores
and two franchised stores trading in all Australian states and
territories. During the year, Beacon Lighting opened seven new
stores at Mount Barker (SA), Mildura (VIC), Devonport (TAS),
Warrawong (NSW), Melton (VIC), Gregory Hills (NSW), and
Busselton (WA). Beacon Lighting also relocated Cranbourne
(VIC) to a new store. The latest Store Benchmarking and
Network Plan from March 2023 identified a potential store
network of 195 stores in Australia.
Beacon Lighting has continued to enjoy considerable trade
success through our stores. This success helped offset the
softening of sales to our retail customers. In FY2024, company
store comparative sales were in line with last year. The stores
in Western Australia, New South Wales, and Queensland
achieved the best comparative sales results.
Beacon Lighting has a core range of 3,500 products, with
approximately 560 products being identified as “core trade”
products, which are always priced competitively and offer
outstanding value to our trade customers. Beacon Lighting
continued to innovate with the introduction of 500 new products
to ensure that our retail and trade customers have the latest,
innovative, and fashion-orientated range of lighting, fan, energy
efficient, and electrical accessories products that are available
to the market.
With 124 Beacon Lighting company stores, there are now 860
team members who continue to provide outstanding service
to our retail and trade customers. There are also 296 team
members who have received Accredited Lighting Design
training, while some of our specialist Lighting Designers are
attending a certification program created in collaboration
18
BEACON LIGHTING GROUP ANNUAL REPORT 2024
with Bond University and Illuminating Engineering Society of
Australia and New Zealand. In FY2024, Beacon Lighting had
44 Design Studios who completed 2,600 Lighting Design
consultations. The Beacon Lighting store teams ensure that our
retail and trade customers receive a unique and outstanding
customer service experience.
4.3.2 Trade
Partnering with Electricians, Builders, Architects, and Interior
Designers with lighting, fans, and electrical accessories for
the Australian home has remained Beacon Lighting’s number
one objective throughout FY2024. Our trade customers have
responded very well to many trade initiatives, including special
prices, Beacon Cash rebates, new trade products, new trade
merchandise displays, the referral program, trade perks, new
trade branded workwear and surprise and delight gifts. Beacon
Trade was rewarded by an increase in the number of total trade
customers, an increase in active customers, and an increase in
total trade sales both in stores and online.
Trade rooms are now standard in all new Beacon Lighting
stores. Trade rooms are also being retrofitted into some existing
Beacon Lighting stores. Beacon Trade has continued with
internal weekly trade seminars and a trade training program
to maintain a high level of service to our trade customers. The
value added service 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 workload
and still providing them with the benefits of the Beacon Cash
rebate.
With many successful trade initiatives, Beacon Trade was
rewarded with a very successful year in FY2024. Beacon
Trade members increased by 8,600 new members to 59,300
members. Total trade sales exceeded $100.0 million for the
first time, and the trade sales percentage of relevant sales
was 36.5%. Comparable trade (both direct and referral) sales
through stores increased by 26.8%.
4.3.3 eCommerce
Beacon Lighting has 16 different business websites, the primary
websites being beaconlighting.com.au and beacontrade.
com.au. Throughout FY2024, the websites were enhanced to
improve the customer experience, including a Magento/Abode
upgrade.
Retail customers have enjoyed the convenience, security, and
flexibility of beaconlighting.com.au and returned to the online
sales channel this year. Total online sales increased by 11.2%
in FY2024, with an improved conversion rate and an increase
in the average sales value. Online sales have now increased
to 11.8% of total retail sales. Two-thirds of online customers
elect to have their products delivered, while one-third of online
customers elect to pick the product up in store.
The exclusive beacontrade.com.au website continues to be very
well supported by Beacon Trade members. It enables them to
shop 24/7 while still enjoying the special pricing, rewards, and
Beacon Cash rebates. Online trade sales increased by 47.0%,
while online trade visitation increased by 42.0%. Beacon Trade
members can make their online purchases with debit cards,
credit cards, Afterpay, Zip Pay, and charge accounts.
4.3.4 New Business
Beacon Lighting continues to pursue growth through the
new businesses. Beacon International, the largest of all the
new businesses, enjoyed a sales recovery in H2 FY2024
leading into the Northern Hemisphere summer. Total Beacon
International sales for FY2024 increased by 7.7% on a 52 week
comparable basis, primarily driven by sales through Hong
Kong. Europe achieved a small sales increase in FY2024, while
sales in the USA declined. The number of premium lighting
projects restricted sales for Custom Lighting and Masson For
Light, Connected Light Solutions had a year of responding to
tenders, and Light Source Solutions found trading conditions in
New Zealand challenging.
Beacon Lighting has a 50% investment in the Large Format
Property Fund which owns seven large format retail properties
in Australia. The Fund made one small acquisition in FY2024,
which was the purchase of land adjacent to land already owned
by the Fund. Four of the Fund properties were fully tenanted
throughout FY2024, with another three development projects in
the Fund. Instead of investing new capital, Beacon Lighting has
loaned money to the Fund to support development projects at
Southport (QLD), Auburn (NSW), and Bathurst (NSW).
4.4 Sustainability
Beacon Lighting has established a leadership team to support
its sustainability journey. The team has established the
Beacon Lighting sustainability goals and focuses on continual
improvement toward achieving those goals. The current
Beacon Lighting sustainability goals concentrate on the three
focus areas: People, Product, and Planet. These focus areas
are aligned with the UN Sustainability Development Goals.
4.4.1 People
Goal 1: Promote the health and well-being of our team
members by promoting a safe and supportive work
environment.
Implementing workplace safety measures and training
programs are at the core of our commitment to team members'
well-being. Our Safety Leagues Program promotes a safety
culture through regular engagement, while the Drake Wellbeing
Hub, available as a portal and phone app, provides resources
for physical and mental health. Our Employee Assistance
Program (EAP) offers confidential support services, further
enhancing our support system.
Beacon Lighting tracks our progress through key metrics such
as absenteeism, Lost Time Injury Frequency Rate (LTIFR), and
a goal to continue reducing workplace accidents. Some of
the key well-being results for FY2024 are presented as follows:
• The total number of reported incidents has decreased by
22.0% compared to last year.
• Lost time hours have decreased by 66.0% compared to last
year.
• The number of workers' compensation claims accepted this
year has decreased by 60.0% compared to last year.
Early intervention on injuries and helping those workers back
to work as soon as possible after their injury is a priority for
Beacon Lighting.
19
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Beacon Lighting offers injury management training for all
managers and team leaders, along with our comprehensive
Safety Management System and Wellbeing Calendar, to
ensure continuous improvement. Quarterly Safety Walks and
focused initiatives like our emphasis on psychosocial hazards
underscore our commitment to monitoring and mitigating
mental health risks. Hub training covers essential safety topics,
ensuring our team is well-prepared to maintain a safe working
environment.
Goal 2: Foster an equitable, diverse, inclusive workplace
that celebrates different backgrounds, perspectives, and
experiences.
Fostering a diverse and inclusive workplace is a key pillar of
our sustainability goals. To ensure equal opportunity and fair
treatment for all team members, we have implemented several
impactful policies and programs, including:
• The new Enterprise Agreement (EA) which will promote
pay equity through junior pay initiatives, ensuring fair
compensation for younger team members,
• Beacon Lighting has developed learning modules on
preventing sexual harassment and bullying, reinforcing our
commitment to a safe and respectful workplace.
• Additionally, we have introduced more favourable parental
leave policies, especially for secondary carers who previously
could only access unpaid leave.
We measure our progress through various metrics including:
• A gender diverse Executive Management Team consisting of
ten males and six females.
• Increasing the gender and age diversity of the Board of
Directors by appointing two new Directors in January 2024.
• Undertaken a complete overhaul of our policies and
procedures to ensure they are modern, fair, clear, and
inclusive, reflecting our dedication to fostering an environment
that celebrates different backgrounds, perspectives, and
experiences.
Goal 3: Invest in team member development, training and
growth opportunities to enhance their skills and career
prospects.
Investing in team member development, training, and growth
opportunities is central to our mission of enhancing skills and
career prospects. Through our career pathways and suite
of training products, we continue to offer qualifications in
Certificate III and Certificate IV in retail and retail management.
Beacon Lighting is building a foundational induction and
onboarding program for all parts of the business. Additionally,
it is collaborating with Bond University and the Illuminated
Engineering Society, on certification and career pathways for
our lighting designers.
Our development success is measured through internal
promotions
(138
for
FY2024)
and
engagement/pulse
surveys, ensuring alignment with team member needs. Our
expanding suite of training includes products knowledge and
microlearning modules for trade products. Feedback from
post-training surveys help us improve our offerings. The Hub,
our training portal, is regularly updated to meet business needs
and increase engagement. We are also rebuilding a leadership
program for our store leaders, underscoring our commitment
to fostering growth and leadership withing the business.
4.4.2 Product
Goal 1: Dedicated to designing and developing products
that reduce energy consumption and extend product life
cycles.
For over a decade, Beacon Lighting’s dedication to energy
efficiency has driven substantial enhancements in our product
portfolio. A testament to this commitment is our LED globe
range, up to 80% more efficient than traditional light sources
such as fluorescent and incandescent globes. In addition,
the extended lifespan of our LED lights, lasting up to six times
longer than conventional lighting, significantly reduces carbon
emissions, replacement frequency, and the number of products
needing to be recycled or going to waste.
Goal 2: Reduce packaging waste, increase recycling, and
implement sustainable packaging solutions.
At Beacon Lighting, we are committed to reducing our
environmental
impact
through
sustainable
packaging
initiatives. As a signatory to the Australian Packaging Covenant
Organisation, Beacon Lighting always strives for responsible
packaging practices. Some of the key initiatives include:
• Sustainable Packaging: Polystyrene has been eliminated,
and plastic usage has been reduced by 30%.
• Packaging Style Guide: Introduced in 2022, the Style Guide
ensures that all new product packaging is easily recyclable.
Nearly 50% of our products feature packaging free from
coloured and toxic inks, with the Australasian Recycling
Label (ARL) included.
• Bring it Back to Beacon Program: Provides all Trade Club
members with a nationwide solution for recycling cardboard
and paper packaging across all 126 stores.
• Consumer Bags: Transitioned from plastic to 100% recycled
paper bags featuring water-soluble ink.
• Cardboard Box Recycler: A machine converts scrap
cardboard into high-quality packaging material at our
distribution centres, reducing the need for other packing
materials and reducing waste.
Goal 3: We are committed to sourcing and developing
all products ethically and socially responsibly through
strategic partnering.
Beacon Lighting is committed to sourcing products and
services in an ethically and socially responsible way. In doing
so, Beacon Lighting continues to work towards ensuring that
minimum standards concerning labour, health and safety,
environmental management, and ethics are maintained across
the supply chain. Beacon Lighting has a Supplier Code of
Conduct, which outlines the Group’s minimum requirements
and expectations of all suppliers concerning managing social
and environmental risks in their organisations and supply
chains.
The Supplier Code of Conduct reflects Beacon Lighting’s
20
BEACON LIGHTING GROUP ANNUAL REPORT 2024
commitment to removing modern slavery from our organisation
and supply chain. Beacon Lighting has continued to conduct
modern slavery training, mapped out our risk adjusted supply
chain, conducted modern slavery risk assessments, and
conducted independent social audits of some of our most
important factories. By the end of FY2024, approximately
93% of our volume based risk-adjusted suppliers have been
accessed by Beacon Lighting. Beacon Lighting has published
Modern Slavery Statements since FY2020 and remains
committed to partnering with our suppliers to remove modern
slavery from our supply chains.
4.4.3 Planet
Goal 1: Reduce the amount of grid-sourced electricity
required for normal business operations.
Beacon Lighting aims to reduce its overall carbon emissions
by reducing its reliance on grid-sourced power. It is doing
this through several energy efficiency initiatives, which reduce
our overall energy consumption on a per squared metres of
occupied space basis.
Several initiatives have already been implemented to date which
continue to drive down energy consumption. These initiatives
include increased use of sensored lighting displays, improved
LED lighting technology, continued trialling of HVAC and BMS
control systems, and proactive monitoring and management of
energy consumption throughout the entire business.
These and other new energy-efficient technologies, together
with an increasing supply of renewable energy, will continue to
reduce our carbon footprint while ensuring optimal comfort for
our customers and team members.
Goal 2. Increase the supply of renewable energy through
greater solar capacity.
Beacon Lighting maintains a commitment to sustainability
through the ongoing deployment of photovoltaic (PV) solar
throughout the property network (stores, commercial offices,
distribution centres, and office locations). To date, 64, or
approximately 44% of the Group’s operating locations, have
PV solar systems, driving down the demand for grid-sourced
electricity.
We are committed to increasing the total capacity of our PV
solar systems by extending deployment to as many new and
existing sites as possible. Our objective is to continue to grow
the total production capacity of power from PV solar while also
increasing our percentage of self-supplied power.
21
BEACON LIGHTING GROUP ANNUAL REPORT 2024
4.5 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. Some of these risks are beyond the control and
influence of the Directors and management of Beacon Lighting.
Beacon Lighting does have some mitigation strategies to try to
manage the impact of these risks should they occur. The most
material risks and how they are proposed to be managed are
presented in the following sections.
4.5.1 Retail Environment and General Economic
Conditions
Beacon Lighting is sensitive to the current and future state
of the retail environment and general economic conditions.
These conditions include, but are not limited to, interest rates,
consumer confidence, business confidence, unemployment,
property prices, housing churn, dwelling approvals, renovations,
government policy, pandemics, and natural disasters. If any
one of these conditions were to change or deteriorate, this
could adversely impact sales, margins, and costs and, in turn,
impact the financial performance of the Group and the Beacon
Lighting Group share price.
Beacon Lighting plans to manage the Group according to
the current retail and general economic environment. Beacon
Lighting plans to maintain an appropriate capital structure,
conservative cash position, and bank facilities to support the
Group if required.
4.5.2 Product Sourcing, Quality and Supply
Beacon Lighting is a vertically integrated business that
relies upon key agents, key factories, and quality assurance
processes to ensure the continuity of product supply. It will
continue to work on diversity in the supply chain so that it does
not become critically dependent upon any one external third
party. If necessary, Beacon Lighting will consider additional
investment in safety stocks, additional internal supply chain
resources, and diversifying the sources of supply.
4.5.3 Cybersecurity and IT Systems
Beacon Lighting has several IT systems critical to the business’s
ongoing operations. The Group also operates in a world of
heightened cybersecurity risks, which have the potential to
bring operations to a halt and have significant associated
commercial risks.
Beacon Lighting’s IT systems must be capable of supporting
and improving our business operations. The IT systems have a
disaster recovery plan, are backed up, can be restarted, and
there are deterrents to help protect Beacon Lighting from cyber
attacks.
4.5.4 Foreign Currency Exposure
Beacon Lighting is a vertically integrated business. Most of
the products 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 using FX forward contracts to secure future FX positions.
Beacon Lighting can also manage sell prices with our retail and
trade customers should foreign currency changes occur.
4.5.5 Growth Strategies
Beacon Lighting's growth strategies are based on the strategic
pillars of growth. However, there is no guarantee that any one
or all of these pillars will succeed or be subject to delays or
cost overruns. Beacon Lighting will continue to invest in and
support the strategic pillars that can potentially increase value
in the long term. If a strategic pillar cannot add value to Beacon
Lighting long-term, resources will be reallocated to other
strategic pillars.
4.5.6 Operating Costs
Beacon Lighting's ability to maintain and improve profit is based
upon realising economies of scale in operations, achieving
reasonable stock turns, and maintaining an appropriate cost
base. An inability to maintain an appropriate cost structure may
adversely impact the Group's current and future profitability.
Some costs are beyond the control and influence of the Beacon
Lighting team. Other costs are within the team's control and
influence, and the team needs to ensure that these costs are
appropriately managed and controlled to maintain a high level
of customer service and achieve the financial objectives of the
Beacon Lighting Group.
4.5.7 Ability to Attract and Retail Key Team Members
Beacon Lighting’s success depends on attracting and retaining
key team members. 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 continuity and
succession plans are in place for the key associates within
Beacon Lighting.
4.5.8 Environment, Social and Governance (ESG)
Processes
Beacon Lighting operates in a complex environment involving
various environmental, social, and governance requirements.
Any changes to this environment could adversely impact its
current and future financial position. To manage the risks
associated with this complex operating environment, Beacon
Lighting aims to maintain effective environmental, social, and
governance processes.
4.5.9 Legal and Regulatory Environment
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 that could harm Beacon Lighting’s
reputation, financial performance, and profitability. Beacon
Lighting has management and product quality assurance
processes to manage compliance with applicable laws and
regulations.
4.5.10 Other Risks
Beacon Lighting is exposed to many other risks, including,
but not limited to, competition, fraud, working capital, health
and safety, changes in employment conditions, the Beacon
Lighting brand, and commercial property investments. Each of
these risks has been assessed, and risk mitigation strategies
have been put in place to help manage an adverse situation
should it occur.
22
BEACON LIGHTING GROUP ANNUAL REPORT 2024
23
BEACON LIGHTING GROUP ANNUAL REPORT 2024
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:
8. DIRECTORS’ INTERESTS IN CONTRACTS
Directors’ interests in contracts are disclosed in Note 34 of the financial statements.
9. DIVIDENDS
Dividends paid to members during the financial period were as follows:
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.
(1) Heystead Nominees and other Robinson Family member interests
DIRECTOR’S MEETINGS
COMMITTEE MEETINGS
AUDIT
REMUNERATION & NOMINATION
DIRECTOR
H
A
H
A
H
A
I Robinson
8
8
-
-
3
3
G Robinson
8
8
-
-
-
-
E Barr
8
8
4
4
3
3
N Osborne
8
8
4
4
3
3
P Robinson
4
4
-
-
-
-
D Palumbo
4
4
2
2
2
2
Director
Ordinary Shares in the Company
I Robinson (1)
125,573,804
G Robinson (1)
125,573,804
P Robinson (1)
125,573,804
E Barr
286,046
N Osborne
300,000
D Palumbo
-
Consolidated Entity
Actual FY2024
$'000
Actual FY2023
$'000
Fully franked dividends paid during the period
18,249
20,769
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 30 June 2024, and the numbers of
meetings attended by each Director were:
24
BEACON LIGHTING GROUP ANNUAL REPORT 2024
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 during the financial year.
10. INSURANCE OF OFFICERS
10.1. Indemnification of Directors
The Group has entered into a Deed of Access, Indemnity and
Insurance with each Director and the Company Secretary in
the customary and usual form. This provides them with an
indemnity to the maximum extent permitted by law against
liabilities that may arise from their positions within the Group,
as well as providing them with ongoing access to the Group’s
books and records.
10.2. Insurance Premiums
During the financial period, the Group insured its Directors and
Officers in customary and usual form against loss which they
may become liable for on account of claims made against them
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).
13. EVENTS SUBSEQUENT TO REPORTING
DATE
A fully franked dividend of $8,566,401 was declared on
21 August 2024 (3.8 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.
25
BEACON LIGHTING GROUP ANNUAL REPORT 2024
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 1,130
associates employed by the Group across Australia and
Internationally. The Group remuneration strategy therefore
seeks to appropriately attract, reward and retain associates at
all levels in the business, but in particular for management and
key executives. The Board aims to achieve this by establishing
executive remuneration packages that include a mix of fixed
remuneration and short term incentives.
The Board has appointed the Remuneration and Nomination
Committee whose objective is to assist the Board in relation
to the Group remuneration strategy, policies and actions.
In performing this responsibility, the Committee must give
appropriate consideration to the Group’s performance and
objectives, employment conditions and external remuneration
relativities. The Committee reviews and determines our
remuneration policy and structure annually to ensure it remains
aligned to business needs and meets the Group’s remuneration
principles. No specific advice or recommendations were
sought from remuneration consultants during the 53 weeks
ended 30 June 2024.
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 27.
Consolidated Entity
FY2024
$
FY2023
$
Audit & Assurance Services
Audit & review of financial statements
330,300
308,400
Other Services
Tax compliance services
31,500
10,000
Total Remuneration of PwC
361,800
318,400
14.2 Audit and Non-Audit Services Provided by the External Auditor
During the 53 weeks ended 30 June 2024, the following fees were paid or were due and payable for services provided by the external
auditor, PwC, of the Consolidated Entity:
26
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Remuneration Framework
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 FY2024 the actual
fixed and variable remuneration was:
Element
Purpose
Performance
Metrics
Potential Value
Changes for
FY2024
Link to Performance
Fixed
Remuneration
Provide competitive
market salary
including
superannuation
and non-monetary
benefits
Nil
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* (1)
Performance
metric changed
to actual prior
year NPAT
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 (1)
Performance
metric changed
to actual prior
year NPAT
Grants are subject
to achieving targeted
performance and
vesting is subject to the
executive remaining
employed by the Group
at the vesting date
(1) On target cash bonus is the bonus as stipulated in the executives’ service agreements
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.
Fixed
Remuneration
%
Short Term
Incentive
(Cash Bonus) %
Short Term Incentive
(Performance Rights) %
Total %
Executive Chairman
100.00%
0.00%
0.00%
100.00%
Chief Executive Officer
85.23%
11.14%
3.63%
100.00%
Chief Marketing Officer
93.31%
3.44%
3.25%
100.00%
Chief Financial Officer
92.20%
5.30%
2.50%
100.00%
Chief Operating Officer
88.98%
7.49%
3.53%
100.00%
27
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Structure of Short Term Cash Incentive Plan
17.2 Principles Used to Determine the Nature
and Amount of Remuneration
(a) Directors’ Fees
The Executive Chairman, the Chief Executive Officer and the
Chief Marketing Officer do not receive Directors’ fees but are
remunerated as executives within the business.
The Deputy Chairman and the two Non-Executive Directors
are entitled to receive annual fees of $123,600 and $113,600
respectively. These fees are inclusive of their relevant
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.
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 incentive schemes.
(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 these components comprises the
executives’ total remuneration.
For the 53 weeks ended 30 June 2024, 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 FY2024 fixed remuneration was increased for the five
executives at an average increase of 21.42%.
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.
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 actual prior year NPAT result. 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.
Feature
Description
Maximum
Opportunity
200% of on target cash bonus
value
Performance Metric
Targeted NPAT
Delivery of STI
100% of STI award is paid
in cash after the financial
results have been audited and
approved by the Board
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
3. Short Term Incentive (Performance Rights)
During the 53 weeks ended 30 June 2024 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 to prevent inappropriate outcomes). The financial
measure used is the Group’s NPAT result against the Group’s
actual prior year NPAT result. 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.
28
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Feature
Description
Maximum Opportunity
125% of on target cash bonus value
Performance Metric
Targeted 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
Structure of Short Term Performance Rights
Statutory Key Performance Indicators of the Group
17.3 FY2024 Performance and Impact on Remuneration
Beacon Lighting’s NPAT financial performance in FY2024 was below the FY2023 actual result. For the 53 weeks ended 30 June 2024,
the Group’s financial performance targets at the lower end of the target range were achieved. Senior management will be awarded
50% of the short term incentive cash bonus and the short term incentive performance rights in FY2024.
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.
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
Prue Robinson
Chief Marketing Officer
David Speirs
Chief Financial Officer
Barry Martens
Chief Operating Officer
FY2024
FY2023
FY2022
FY2021
FY2020
Net profit after tax ($’000)
30,102
33,643
40,726
37,658
22,225
Basic earnings per share (cents)
13.35
15.05
18.24
16.94
10.11
Dividend payments ($’000)
18,249
20,769
19,876
14,696
10,110
Share Price (Period End)
2.50
1.49
1.76
1.86
1.08
Other than Prue Robinson, all of the of the above executives were employed by Beacon Lighting and were key management personnel
for the entire 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023. Prue Robinson was appointed as a Director on
1 January 2024.
29
BEACON LIGHTING GROUP ANNUAL REPORT 2024
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
$
Post
Employment
Super
Contributions
$
Annual &
Long
Service
Leave
$
Cash
Performance
Based
Payment
$
Share Based
Payments
$
Total
DIRECTORS
I Robinson (Chairman)
2024
196,419
20,547
(12,072)
-
-
204,894
2023
192,728
19,229
(7,049)
-
-
204,908
G Robinson (Chief Executive Officer)
2024
524,798
28,563
66,306
81,000
26,395
727,062
2023
393,504
25,292
25,293
-
118,549
562,638
E Barr (Non-Executive)
2024
113,483
12,494
-
-
-
125,977
2023
111,312
11,687
-
-
-
122,999
N Osborne (Non-Executive)
2024
104,302
11,484
-
-
-
115,786
2023
102,262
10,737
-
-
-
112,999
P Robinson (Chief Marketing Officer)
2024
161,595
15,044
26,571
7,500
7,070
217,780
2023
-
-
-
-
-
-
D Palumbo (Non-Executive)
2024
37,333
-
-
-
-
37,333
2023
-
-
-
-
-
-
Total Remuneration Directors
2024
1,137,930
88,132
80,805
88,500
33,465
1,428,832
2023
799,806
66,945
18,244
-
118,549
1,003,544
EXECUTIVES
D Speirs (Chief Financial Officer)
2024
375,662
28,253
30,586
25,000
11,783
471,284
2023
306,465
25,292
(6,366)
-
52,975
378,366
B Martens (Chief Operating Officer)
2024
271,469
28,209
(2,584)
25,000
11,783
333,877
2023
260,532
25,292
6,390
-
52,975
345,189
Total Remuneration Executives
2024
647,131
56,462
28,002
50,000
23,566
805,161
2023
566,997
50,584
24
-
105,950
723,555
30
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Grant
Date
Quantity
Granted
Vest Date
Value at
Grant
Date $
Vested %
Quantity
Vested &
Exercisable
Quantity
Unvested
Quantity
Exercised
Value
Expensed
this Year $
G Robinson
19/08/2021
76,087
Refer below
140,000
100.00%
76,087
-
-
3,267
18/08/2022
57,436
Refer below
112,000
66.67%
38,293
19,143
-
23,128
P Robinson
19/08/2021
20,380
Refer below
37,500
100.00%
20,380
-
-
875
18/08/2022
15,385
Refer below
30,000
66.67%
10,257
5,128
-
6,195
17.6 Share Based Compensation
The number of performance rights granted to the Chief Executive and Chief Marketing Officer are set out below:
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.
31
BEACON LIGHTING GROUP ANNUAL REPORT 2024
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.
Grant
Date
Quantity
Granted
Vest Date
Value at
Grant
Date $
Vested
%
Quantity
Vested &
Exercisable
Quantity
Unvested
Quantity
Exercised
Value
Expensed
this Year $
D Speirs
19/08/2021
33,967
Refer below
62,500
100.00%
33,967
-
-
1,458
18/08/2022
25,641
Refer below
50,000
66.66%
17,095
8,546
-
10,325
B Martens
19/08/2021
33,967
Refer below
62,500
100.00%
33,967
-
-
1,458
18/08/2022
25,641
Refer below
50,000
66.66%
17,095
8,546
-
10,325
The number of options and performance rights over shares in the Group granted to the Key Management Personnel are set out below.
32
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Balance
at Start
of Year
Purchase
of Shares
DRP
Issue(1)
Sales of
Shares
Balance at
End of Year
DIRECTORS
I Robinson (Executive Chairman)(2)
2024
124,342,779
-
1,003,670
-
125,346,449
2023 (3)
123,791,815
-
636,096
-
124,427,911
G Robinson (Chief Executive Officer)
2024
136,305
-
5,284
-
141,589
2023
132,925
-
3,380
-
136,305
E Barr (Non-Executive)
2024
276,489
-
9,557
-
286,046
2023
250,000
20,762
5,727
-
276,489
N Osborne (Non-Executive)
2024
300,000
-
-
-
300,000
2023
300,000
-
-
-
300,000
P Robinson (Chief Marketing Officer)
2024
85,132
-
634
-
85,766
2023
-
-
-
-
-
D Palumbo (Non-Executive)
2024
-
-
-
-
-
2023
-
-
-
-
-
EXECUTIVES
D Speirs (Chief Financial Officer)
2024
115,022
-
-
-
115,022
2023
115,022
-
-
-
115,022
B Martens (Chief Operating Officer)
2024
146,220
-
-
(20,000)
126,220
2023
146,220
-
-
-
146,220
Total
2024
125,401,947
-
1,019,145
(20,000)
126,401,092
2023
124,735,982
20,762
645,203
-
125,401,947
(1) Shares received during the year as a result of participating in the Dividend Reinvestment Plan.
(2) Heystead Nominees Pty Ltd and other Robinson Family member interests, excluding Glen Robinson and Prue Robinson.
(3) Heystead Nominees Pty Ltd and other Robinson Family member interests previously included Prue Robinson.
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.
33
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Ian Robinson
Executive Chairman
Melbourne,
21 August 2024
Glen Robinson
Chief Executive Officer
Signed in accordance with a resolution of Directors
17.8 Service Agreements
All executives are employed on terms consistent with the remuneration framework outlined in this report. Each of the relevant
executive agreements is for a continuing term but may be terminated by either party with a required notice period of 12 weeks. These
agreements do not provide for any termination payments other than payment in lieu of notice.
17.9 Voting of Shareholders at Last Year’s Annual General Meeting
Beacon Lighting Group received more than 90% of yes votes on its remuneration report for FY2023. The Group did not receive any
specific feedback at the Annual General Meeting or throughout the year on its remuneration practices.
Name
Contract Type
Notice of termination
by Group
Employee notice
G Robinson
Rolling contract
12 weeks
12 weeks
P Robinson
Rolling contract
12 weeks
12 weeks
D Speirs
Rolling contract
12 weeks
12 weeks
B Martens
Rolling contract
12 weeks
12 weeks
34
BEACON LIGHTING GROUP ANNUAL REPORT 2024
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.
Auditor’s Independence Declaration
As lead auditor for the audit of Beacon Lighting Group Limited for the 53 week period ended 30 June
2024, 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
Melbourne
Partner
PricewaterhouseCoopers
21 August 2024
Independence Declaration
AUDITOR'S
35
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Page
Consolidated Statement of Comprehensive Income
37
Consolidated Balance Sheet
38
Consolidated Statement of Changes in Equity
39
Consolidated Statement of Cash Flows
40
Notes to the Consolidated Financial Statements
1. Summary of Material Accounting Policies
41
2. Financial Risk Management
49
3. Segment Information
54
4. Revenue from Contracts with Customers
and Other Revenue
55
5. Other Income
55
6. Expenses
56
7. Income Tax Expense
57
8. Cash and Cash Equivalents
58
9. Trade and Other Receivables
58
10. Inventories
60
11. Derivative Financial Instruments
61
12. Other Financial Assets
62
13. Other Current Assets
62
14. Property, Plant and Equipment
63
15. Investments In Associates Accounted for
Using the Equity Method
64
16. Deferred Tax Assets
65
17. Intangible Assets
66
18. Trade and Other Payables
67
Page
19. Current Borrowings
68
20. Current Provisions
68
21. Current Tax Liabilities
70
22. Non Current Borrowings
70
23. Non Current Provisions
71
24. Leases
71
25. Contributed Equity
73
26. Reserves and Retained Profits
74
27. Dividends
76
28. Key Management Personnel Disclosures
77
29. Share Based Payments
77
30. Earnings Per Share
79
31. Remuneration of Auditors
79
32. Contingencies
79
33. Commitments
80
34. Related Party Transactions
80
35. Subsidiaries
82
36. Events Occurring After the Reporting Period
85
37. Cash Flow Information
86
38. Critical Accounting Estimates
87
39. Parent Entity Financial Information
87
40. Deed of Cross Guarantee
88
to the Financial Statements
INDEX
36
BEACON LIGHTING GROUP ANNUAL REPORT 2024
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
The above consolidated statement of comprehensive income should be read in conjunction with the accompanying Notes.
Consolidated Entity
Notes
FY2024
$’000
FY2023
$’000
REVENUE FROM CONTRACTS WITH CUSTOMERS
Sale of goods
4
323,063
311,955
Other revenue
4
481
489
Total revenue from contracts with customers
4
323,544
312,444
Other income
5
1,268
676
EXPENSES
6
Cost of sales of goods
(100,247)
(100,622)
Other expenses from ordinary activities
Marketing
(17,427)
(15,558)
Selling and distribution
(135,664)
(124,356)
General and administration
(20,230)
(18,050)
Finance costs
6
(8,462)
(6,648)
Share of net profits of associates accounted for using the equity method
35(b)(ii)
521
296
PROFIT BEFORE INCOME TAX
43,303
48,182
Income tax expense
7
(13,201)
(14,539)
PROFIT FOR THE PERIOD ATTRIBUTABLE TO THE OWNERS OF
THE PARENT ENTITY
30,102
33,643
Profit is attributable to:
Owners of Beacon Lighting Group Limited
30,102
33,643
30,102
33,643
Other comprehensive income - Items that may be reclassified to
profit or loss:
Changes in the fair value of derivatives
26(a)
(134)
(298)
Exchange differences on translation of foreign operations
26(a)
196
153
Income tax relating to these items
(18)
45
Other comprehensive income for the period, net of tax
44
(100)
TOTAL COMPREHENSIVE INCOME FOR THE PERIOD
ATTRIBUTABLE TO THE OWNERS OF THE PARENT ENTITY
30,146
33,543
Total comprehensive income is attributable to:
Owners of Beacon Lighting Group Limited
30,146
33,543
30,146
33,543
EARNINGS PER SHARE
CENTS
CENTS
Basic earnings per share
30
13.35
15.05
Diluted earnings per share
30
13.35
15.05
37
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Consolidated Entity
Notes
FY2024
$’000
FY2023
$’000
CURRENT ASSETS
Cash and cash equivalents
8
36,181
20,682
Trade and other receivables
9
14,315
13,200
Inventories
10
95,677
96,936
Derivative financial instruments
11
27
121
Other financial assets
12
10,025
-
Other current assets
13
2,724
2,177
Total current assets
158,949
133,116
NON-CURRENT ASSETS
Financial assets at fair value through profit or loss
9
30
Investments in associates
15
20,059
19,963
Property, plant and equipment
14
46,557
44,744
Right of use assets
24
114,183
108,017
Intangible assets
17
13,928
13,748
Other non-current assets
409
564
Deferred tax assets
16
12,980
12,737
Total non-current assets
208,125
199,803
TOTAL ASSETS
367,074
332,919
CURRENT LIABILITIES
Trade and other payables
18
28,127
19,164
Borrowings
19
24,160
19,405
Provisions
20
12,313
11,332
Current tax liabilities
21
1,860
2,208
Lease liabilities
24
27,947
26,771
Total current liabilities
94,407
78,880
NON-CURRENT LIABILITIES
Borrowings
22
-
3,000
Lease liabilities
24
105,118
100,206
Provisions
23
1,759
1,737
Total non-current liabilities
106,877
104,943
TOTAL LIABILITIES
201,284
183,823
NET ASSETS
165,790
149,096
EQUITY
Contributed equity
25
79,170
74,468
Other reserves
26(a)
(42,197)
(42,336)
Retained earnings
26(b)
128,817
116,964
TOTAL EQUITY
165,790
149,096
CONSOLIDATED BALANCE SHEET
As at 30 June 2024 and as at 25 June 2023 Beacon Lighting Group and its controlled entities
The above consolidated balance sheet should be read in conjunction with the accompanying Notes.
38
BEACON LIGHTING GROUP ANNUAL REPORT 2024
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
Consolidated Entity
Notes
Contributed
Equity
$’000
Other
Reserves
$’000
Retained
Earnings
$’000
Total
Equity
$’000
Balance as at 25 June 2023
74,468
(42,336)
116,964
149,096
Profit for the year
-
-
30,102
30,102
Other comprehensive income
26(a)
-
44
-
44
Total comprehensive income for the period
-
44
30,102
30,146
Transactions with owners in their capacity as owners:
Issue of shares via dividend reinvestment plan
25
4,702
-
-
4,702
Employee share scheme
26(a)
-
95
-
95
Treasury share reserve
26(a)
-
-
-
-
Dividends provided for or paid
27
-
-
(18,249)
(18,249)
Total contributions by and distributions to owners
4,702
95
(18,249)
(13,452)
Balance as at 30 June 2024
79,170
(42,197)
128,817
165,790
Balance as at 26 June 2022
72,312
(42,267)
104,090
134,135
Profit for the year
-
-
33,643
33,643
Other comprehensive income
26(a)
-
(100)
-
(100)
Total comprehensive income for the period
-
(100)
33,643
33,543
Transactions with owners in their capacity as owners:
Issue of shares via dividend reinvestment plan
25
2,156
-
-
2,156
Employee share scheme
26(a)
-
123
-
123
Treasury share reserve
26(a)
-
(92)
-
(92)
Dividends provided for or paid
27
-
-
(20,769)
(20,769)
Total contributions by and distributions to owners
2,156
31
(20,769)
(18,582)
Balance as at 25 June 2023
74,468
(42,336)
116,964
149,096
The above consolidated statement of changes in equity should be read in conjunction with the accompanying Notes.
39
BEACON LIGHTING GROUP ANNUAL REPORT 2024
CONSOLIDATED STATEMENT OF CASH FLOWS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
Consolidated Entity
Notes
FY2024
$’000
FY2023
$’000
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers (inclusive of goods and services tax)
354,733
340,727
Payments to suppliers and employees (inclusive of goods and services tax)
(258,694)
(271,582)
Interest received
1,268
676
Borrowing costs
(8,462)
(6,648)
Income taxes paid
(13,793)
(14,148)
Net cash inflow from operating activities
37
75,052
49,025
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant and equipment
(9,002)
(11,644)
Payments for interest in associates
34
-
(125)
Loan to associates
34
(1,133)
(2,618)
Payments for acquisitions
(200)
(50)
Payments for financial assets at amortised cost
(10,025)
-
Proceeds from interest in associates
34
425
429
Proceeds from sale of property, plant and equipment
9
224
Net cash (outflow) from investing activities
(19,926)
(13,784)
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from borrowings
64,920
92,760
(Repayment) of borrowings
(63,165)
(89,916)
(Payments) for principal portion of lease liabilities
(27,835)
(26,786)
Dividends paid to Company's shareholders
27
(13,547)
(18,613)
Net cash (outflow) from financing activities
(39,627)
(42,555)
Net (decrease) in cash and cash equivalents
15,499
(7,314)
Cash and cash equivalents at the beginning of the financial year
20,682
27,996
Cash and cash equivalents at the end of the financial year
8
36,181
20,682
The above consolidated statement of cash flows should be read in conjunction with the accompanying Notes.
40
BEACON LIGHTING GROUP ANNUAL REPORT 2024
1. Summary of Material Accounting
Policies
The principal accounting policies adopted in the preparation
of this consolidated financial report is set out below. These
policies have been consistently applied to all the periods
presented, unless otherwise stated. The financial report is for
the consolidated entity consisting of Beacon Lighting Group
Limited (the ‘Company’ or ‘Beacon Lighting Group’) and its
controlled entities (the ‘Consolidated Entity’ or ‘Group’).
(a) Basis of Preparation
This general purpose financial report has been prepared
in accordance with Australian Accounting Standards and
interpretations issued by the Australian Accounting Standards
Board and the Corporations Act 2001 (Cth). Beacon Lighting
Group Limited is a for-profit entity for the purpose of preparing
the financial report.
Beacon Lighting Group Limited operates within a retail financial
period. The current financial period was a 53 week retail period
ending on 30 June 2024 (2023: 52 week period ending 25
June 2023). 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 30 June 2024
reporting periods and have not been early adopted by the
Group. These standards are not expected to have a material
impact on the entity in the current or future reporting periods
and on foreseeable future transactions.
(iii) Compliance with IFRS
The consolidated financial report of the Group also complies
with International Financial Reporting Standards as issued by
the International Accounting Standards Board.
(iv) Historical Cost Convention
This financial report has been prepared in accordance with the
historical cost convention, except for certain financial assets
and liabilities (including derivative instruments) measured at fair
value.
(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 38
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 30 June 2024 and the results
of all subsidiaries for the period then ended. Beacon Lighting
Group Limited and its subsidiaries together are referred to in
this financial report as the Group or the consolidated entity.
Subsidiaries are all entities over which the Group has control.
The Group controls an entity when the Group is exposed to,
or has rights to, variable returns from its involvement with the
entity and has the ability to affect those returns through its
power to direct the activities of the entity. Subsidiaries are fully
consolidated from the date on which control is transferred to
the Group. They are deconsolidated from the date that control
ceases.
The acquisition method of accounting is used to account for
business combinations by the Group (refer to Note 1(i)).
Intercompany transactions, balances and unrealised gains
on transactions between Group companies are eliminated.
Unrealised losses are also eliminated unless the transaction
provides evidence of an impairment of the transferred asset.
Accounting policies of subsidiaries have been changed where
necessary to ensure consistency with the policies adopted by
the Group.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
41
BEACON LIGHTING GROUP ANNUAL REPORT 2024
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).
(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, electrical
accessories and energy efficient products.
(e) Foreign Currency Translation
(i) Functional and Presentation Currency
Items included in the financial report of each of the Group’s
entities are measured using the currency of the primary
economic environment in which the entity operates (‘the
functional currency’). The consolidated financial report is
presented in Australian dollars, which is Beacon Lighting Group
Limited’s functional and presentation currency.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
42
BEACON LIGHTING GROUP ANNUAL REPORT 2024
(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 20.
(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.
(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
43
BEACON LIGHTING GROUP ANNUAL REPORT 2024
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 10 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.
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
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
44
BEACON LIGHTING GROUP ANNUAL REPORT 2024
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
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.
45
BEACON LIGHTING GROUP ANNUAL REPORT 2024
(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
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.
When forward contracts are used to hedge forecast
transactions, the Group generally designates only the change
in fair value of the forward contract related to the spot
component as the hedging instrument. Gains or losses relating
to the effective portion of the change in the spot component of
the forward contracts are recognised in the cash flow hedge
reserve within equity. The change in the forward element of
the contract that relates to the hedged item (‘aligned forward
element’) is recognised within Other Comprehensive Income
(OCI) within the cash flow hedge reserve. In some cases, the
entity may designate the full change in fair value of the forward
contract (including forward points) as the hedging instrument.
In such cases, the gains or losses relating to the effective
portion of the change in fair value of the entire forward contract
are recognised in the cash flow hedge reserve within equity.
When a hedging instrument expires or is sold or terminated,
or when a hedge no longer meets the criteria for hedge
accounting, any cumulative gain or loss existing in equity at
that time remains in equity and is recognised when the forecast
transaction is ultimately recognised in the income statement.
When a forecast transaction is no longer expected to occur,
the cumulative gain or loss that was reported in equity is
immediately transferred to the income statement.
(o) Property, Plant and Equipment
All property, plant and equipment is stated at historical cost
less depreciation. Historical cost includes expenditure that is
directly attributable to the acquisition of the items.
Subsequent costs are included in the asset’s carrying amount
or recognised as a separate asset, as appropriate, only when
it is probable that future economic benefits associated with
the item will flow to the Group and the cost of the item can
be measured reliably. The carrying amount of any component
accounted for as a separate asset is derecognised when
replaced.
All other repairs and maintenance are charged to profit or loss
during the reporting period in which they are incurred.
Depreciation is calculated using the straight-line method
to allocate their cost, net of their residual values, over their
estimated useful lives or, in the case of leasehold improvements
and certain leased plant and equipment, the shorter lease term
as follows:
• Furniture, Fittings & Equipment 4 to 20 years.
• Motor vehicles 5 to 8 years.
• Buildings 40 years.
The assets’ residual values and useful lives are reviewed, and
adjusted if appropriate, at the end of each reporting period.
An asset’s carrying amount is written down immediately to its
recoverable amount if the asset’s carrying amount is greater
than its estimated recoverable amount.
Gains and losses on disposals are determined by comparing
proceeds with carrying amount. These are included in profit
or loss.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
46
BEACON LIGHTING GROUP ANNUAL REPORT 2024
(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.
(s) Provisions
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
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
47
BEACON LIGHTING GROUP ANNUAL REPORT 2024
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 28. The fair value of performance rights and options
granted under the plan are recognised as an employee benefit
expense over the period during which the employees become
unconditionally entitled to the rights with a corresponding
increase in equity. The total amount to be expensed is
determined by reference to the fair value of the rights granted,
which includes any market performance conditions and the
impact of any non-vesting conditions but excludes the impact
of any service and non-market performance vesting conditions.
Non-market vesting conditions are included in assumptions
about the number of rights that are expected to vest which
are revised at the end of each reporting period. The impact
of the revision to original estimates, if any; is recognised in
the consolidated statement of comprehensive income, with a
corresponding adjustment to equity.
The fair value is measured at grant date and the expense
recognised over the life of the plan. The fair value is determined
using a Black-Scholes pricing model that takes into account
the exercise price, the term of the right, the impact of dilution,
the share price at grant date and expected price volatility of the
underlying share, the expected dividend yield and the risk-free
interest rate for the term of the rights.
(u) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the
amount of associated GST, unless the GST incurred is not
recoverable from the taxation authority. In this case it is
recognised as part of the cost of acquisition of the asset or as
part of the expense.
Receivables and payables are stated inclusive of the amount of
GST receivable or payable. The net amount of GST recoverable
from, or payable to, the taxation authority is included with other
receivables or payables in the consolidated balance sheet.
Cash flows are presented on a gross basis. The GST
components of cash flows arising from investing or financing
activities which are recoverable from, or payable to the taxation
authority, are presented as operating cash flows.
(v) Store Opening Costs
Non-capital costs associated with the setup of a new store are
expensed in the period in which they are incurred.
(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 39 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 STATEMENTS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
48
BEACON LIGHTING GROUP ANNUAL REPORT 2024
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
FY2024
$’000
FY2023
$’000
FINANCIAL ASSETS
Cash and cash equivalents
36,181
20,682
Trade and other receivables
14,315
13,200
Other financial assets at amortised cost
10,025
-
Derivative financial instruments
27
121
60,548
34,003
FINANCIAL LIABILITIES
Trade and other payables
28,127
19,164
Borrowings
24,160
22,405
Lease Liabilities
133,065
126,977
185,352
168,546
49
BEACON LIGHTING GROUP ANNUAL REPORT 2024
(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 30 June 2024 the average term of outstanding foreign exchange contracts is three months with an average forward rate for AUD/
USD of 0.6662.
The Group holds the following foreign exchange derivatives:
Consolidated Entity
FY2024
$’000
FY2023
$’000
Forward exchange contracts - buy cash flow hedges (notional amount)
8,321
11,048
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
FY2024
$’000
FY2023
$’000
Interest rate swap contracts - buy cash flow hedges (notional amount)
-
6,188
Consolidated Entity
FY2024
$’000
FY2023
$’000
Gain recognised in other comprehensive income (net of tax)
(94)
(209)
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 may manage its cash flow interest rate risk by using floating-to-fixed interest rate swaps.
In 2024 there are no interest rate swaps currently in place cover short term borrowings. In 2023 the interest rate swap in place covered
approximately 27.9% of the variable loan principal outstanding. The fixed interest rate of the swap used to hedge during 2023 was
2.5% and the variable rate of the loan in 2023 was 4.2%.
The swap contracts require settlement of net interest receivable or payable every 30 days. The settlement dates coincide with the
dates on which interest is payable on the underlying debt.
The Group’s exposure to interest rate risk at the end of the reporting period, expressed in AUD is per below:
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
50
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Group Sensitivity
At 30 June 2024, 34.3% (2023: 27.9%) 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.
Effects of hedge accounting on the financial position and performance
Impact on other components of equity
Consolidated Entity
FY2024
$’000
FY2023
$’000
Forward exchange contracts
USD / AUD exchange rate – increase 10%
(832)
(1,105)
USD / AUD exchange rate – decrease 10%
832
1,105
Interest rate swap contracts
Floating interest rate – increase 10%
-
11
Floating interest rate – decrease 10%
-
(11)
Consolidated Entity
FY2024
$’000
FY2023
$’000
Forward exchange contracts
Carrying amount - asset / (liability)
27
73
Notional amount
8,321
11,048
Maturity Date
August 2024
September 2023
Hedge Ratio
1:1
1:1
Intrinsic value of outstanding hedging instruments
(27)
(73)
Weighted average strike rate for the year
USD$0.6662 : AUD$1
USD$0.6758 : AUD$1
Interest rate swap contracts
Carrying amount - asset / (liability)
-
48
Notional amount
-
6,188
Maturity Date
-
15 November 2023
Hedge Ratio
-
1:1
Intrinsic value of outstanding hedging instruments
-
(48)
Weighted average strike rate for the year
-
2.47%
51
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Maturities of Financial Liabilities
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.
(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
FY2024
$’000
FY2023
$’000
FLOATING RATE – TOTAL FACILITIES
Overdraft
500
500
Trade finance facility
10,000
10,000
Interchange facility
25,500
25,500
Asset finance facility
4,000
4,000
Loan facility – multi currency
4,072
4,041
Loan facility – floating rate
15,000
15,000
FLOATING RATE – TOTAL UNDRAWN FACILITIES
Overdraft
500
500
Trade finance facility
10,000
10,000
Interchange facility
1,340
6,347
Asset finance facility
4,000
4,000
Loan facility – multi currency
4,072
1,202
Loan facility – floating rate
15,000
12,000
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
52
BEACON LIGHTING GROUP ANNUAL REPORT 2024
The amounts disclosed in the table are the contractual undiscounted cash flows.
Contractual maturities of financial liabilities including lease liabilities:
Consolidated Entity
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
At 30 June 2024
NON-DERIVATIVES
Trade and other payables
28,127
-
-
28,127
28,127
Borrowings
24,361
-
-
24,361
24,160
Lease liabilities
34,269
97,029
31,902
163,200
133,065
Total non-derivatives
86,757
97,029
31,902
215,688
185,352
DERIVATIVES
Forward exchange contracts
27
-
-
27
27
Interest rate swap contract
-
-
-
-
-
Net settled (cash flow hedges)
27
-
-
27
27
At 25 June 2023
NON-DERIVATIVES
Trade and other payables
19,164
-
-
19,164
19,164
Borrowings
19,526
3,000
-
22,526
22,405
Lease liabilities
31,427
92,359
24,905
148,691
126,977
Total non-derivatives
70,117
95,359
24,905
190,381
168,546
DERIVATIVES
Forward exchange contracts
73
-
-
73
73
Interest rate swap contract
48
-
-
48
48
Net settled (cash flow hedges)
121
-
-
121
121
53
BEACON LIGHTING GROUP ANNUAL REPORT 2024
(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 30
June 2024, on a recurring basis.
At 30 June 2024
Level 2
$’000
Total
$’000
Derivatives used for hedging - Net Position
27
27
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, electrical accessories and energy efficient products.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
54
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Consolidated Entity
FY2024
$’000
FY2023
$’000
From Ordinary Activities
Sale of goods
323,063
311,955
Other Revenue
Franchise fees
481
489
323,544
312,444
Consolidated Entity
FY2024
$’000
FY2023
$’000
Interest Income
1,268
676
1,268
676
5. OTHER INCOME
4. REVENUE FROM CONTRACTS WITH CUSTOMERS 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.
55
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Consolidated Entity
FY2024
$’000
FY2023
$’000
(a) PROFIT BEFORE INCOME TAX INCLUDES THE FOLLOWING SPECIFIC EXPENSES:
Depreciation
Furniture, fittings and equipment and buildings
6,653
5,248
Depreciation – right of use assets
27,579
25,132
Motor vehicles
468
443
Amortisation
Patents, trademarks and other rights
20
20
Finance costs
Interest and finance charges paid/payable
8,462
6,648
Net (profit)/loss on disposal of property, plant and equipment
(2)
(36)
Employee benefits
79,282
72,459
(b) NET FOREIGN EXCHANGE GAINS AND LOSSES
Net foreign exchange (gains)/losses recognised in profit before income tax for the period (as
either other income or expense)
155
(177)
6. EXPENSES
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
56
BEACON LIGHTING GROUP ANNUAL REPORT 2024
7. INCOME TAX EXPENSE
Consolidated Entity
FY2024
$’000
FY2023
$’000
(a) INCOME TAX EXPENSE
Current tax
13,208
14,411
Deferred tax
243
84
Adjustments for current tax of prior periods
(250)
44
13,201
14,539
Deferred income tax (revenue) included in income tax expense comprises
(Note 16):
Decrease / (Increase) in deferred tax assets
257
39
(Decrease) / increase in deferred tax liabilities
(14)
-
243
39
(b) NUMERICAL RECONCILIATION OF INCOME TAX EXPENSE TO PRIMA
FACIE TAX PAYABLE
Profit from continuing operations before income tax expense
43,303
48,182
Tax at the Australian tax rate of 30% (2023: 30%)
12,991
14,455
Tax effect of amounts which are not deductible in calculating taxable
income:
Entertainment
40
45
Sundry items
170
39
Income tax expense
13,201
14,539
57
BEACON LIGHTING GROUP ANNUAL REPORT 2024
8. CASH AND CASH EQUIVALENTS
9. TRADE AND OTHER RECEIVABLES
(a) Aging of Trade Receivables
Trade receivables ageing analysis at period end is:
Consolidated Entity
FY2024
$’000
FY2023
$’000
Cash at bank and in hand
36,181
20,682
Consolidated Entity
FY2024
$’000
FY2023
$’000
Trade receivables (a)
9,106
9,842
Provision for impairment of receivables (b)
(354)
(398)
Net amounts receivable from customers
8,752
9,444
Amount receivable from associate
4,051
2,918
Other debtors (c)
1,512
838
14,315
13,200
Consolidated Entity
FY2024
$’000
FY2023
$’000
Not past due
7,939
9,014
Past due 31-60 days
211
309
Past due 61-90 days
256
393
Past due more than 91 days
700
126
9,106
9,842
(a) Classification as Cash Equivalents
Term deposits are presented as cash equivalents if they have a maturity of three months or less from the date of acquisition and are
repayable with 24 hours notice with no loss of interest.
Risk Exposure
The Group’s and the parent entity’s exposure to interest rate risk is discussed in Note 2.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
58
BEACON LIGHTING GROUP ANNUAL REPORT 2024
(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 30 June 2024 or 25 June
2023 respectively and the corresponding historical credit losses experienced within this period. The historical loss rates are adjusted
to reflect current and forward looking information on macroeconomic factors affecting the ability of the customers to settle the
receivables.
On that basis, the loss allowance as at 30 June 2024 and 25 June 2023 was determined as follows for both trade receivables:
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.
30 June 2024
Current
31-60 days
past due
61 - 90
days past
due
More than
90 days
past due
Total
Expected loss rate
-
-
5.0%
48.7%
Gross carrying amount - trade receivables ($’000)
7,939
211
256
700
9,106
Loss allowance ($’000)
-
-
13
341
354
25 June 2023
Current
31-60 days
past due
61 - 90
days past
due
More than
90 days
past due
Total
Expected loss rate
-
-
69.2%
100.00%
Gross carrying amount - trade receivables ($’000)
9,014
309
393
126
9,842
Loss allowance ($’000)
-
-
272
126
398
59
BEACON LIGHTING GROUP ANNUAL REPORT 2024
(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 30 June 2024, 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 34 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.
Inventory Finance
The Group utilises inventory finance facilities to fund inventory. The term of the facility is two years.
Inventory Expense
Inventories recognised as expense during the 53 week period ended 30 June 2024 and included in cost of sales of goods amounted
to $100,245,016 (2023: $100,622,312).
Write-downs of inventories to net realisable value recognised as an expense during the 53 week period ended 30 June 2024 amounted
to $116,819 (2023: $823,366).
Included in the valuation of inventory is a provision for stock obsolescence of $2,489,823 (2023: $2,373,004).
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.
10. INVENTORIES
Consolidated Entity
FY2024
$’000
FY2023
$’000
Inventory at lower of cost and net realizable value
90,503
96,294
Goods in transit - at cost
5,174
642
95,677
96,936
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
60
BEACON LIGHTING GROUP ANNUAL REPORT 2024
11. DERIVATIVE FINANCIAL INSTRUMENTS
Consolidated Entity
FY2024
$’000
FY2023
$’000
Current liabilities
Forward foreign exchange contracts – cash flow hedges
27
73
Interest rate swap contracts – cash flow hedges
-
48
Total current derivative financial instrument liabilities
27
121
Net current derivative financial instrument assets
27
121
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 in the past an interest rate swap to hedge against interest rate fluctuations.
These contracts are hedging highly probable forecasted purchases for the ensuing financial year. The contracts are timed to mature
when payments for major purchases of inventory are scheduled to be made.
The portion of the gain or loss on the hedging instrument that is determined to be an effective hedge is recognised in other
comprehensive income. When the cash flows occur, the Group adjusts the initial measurement of the component recognised in the
balance sheet by removing the related amount from other comprehensive income.
During the 53 weeks ended 30 June 2024 there were no gains or losses (2023: 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 FY2024 or FY2023 in relation to the interest rate swaps.
61
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Hedge Reserves
The Group’s hedging reserves disclosed in Note 26 relate to the following hedging instruments:
Consolidated Entity
Currency
Forwards
$'000
Interest Rate
Swaps
$'000
Total Hedge
Reserves
$'000
Opening balance 25 June 2023
271
59
330
Add Change in fair value of hedging instrument
recognised in Other Comprehensive Income
(283)
(16)
(299)
Less Deferred Tax
(85)
(5)
(90)
Closing balance 25 June 2023
73
48
121
Add Change in fair value of hedging instrument
recognised in Other Comprehensive Income
(66)
(69)
(135)
Less Deferred Tax
(20)
(21)
(41)
Closing balance 30 June 2024
27
-
27
12. OTHER FINANCIAL ASSETS
Consolidated Entity
FY2024
$’000
FY2023
$’000
Term Deposit
10,025
-
13. OTHER CURRENT ASSETS
Consolidated Entity
FY2024
$’000
FY2023
$’000
Prepayments and other current assets
2,724
2,177
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
62
BEACON LIGHTING GROUP ANNUAL REPORT 2024
14. PROPERTY, PLANT AND EQUIPMENT
Consolidated Entity
Furniture,
Fittings and
Equipment
$’000
Vehicles
$’000
Land and
Buildings
$’000
Total
$’000
Year ended 25 June 2023
Opening net book amount
35,535
1,824
1,599
38,957
Additions
11,135
509
-
11,644
Disposals
(158)
(30)
-
(188)
Depreciation charge
(5,201)
(443)
(26)
(5,670)
Closing net book amount
41,311
1,860
1,573
44,744
At 25 June 2023
Cost
78,015
4,040
1,673
83,727
Accumulated depreciation
(36,704)
(2,180)
(100)
(38,984)
Net book amount
41,311
1,860
1,573
44,744
Year ended 30 June 2024
Opening net book amount
41,311
1,860
1,573
44,744
Additions
8,773
229
-
9,002
Disposals
(48)
(20)
-
(68)
Depreciation charge
(6,624)
(468)
(29)
(7,121)
Closing net book amount
43,412
1,601
1,544
46,557
At 30 June 2024
Cost
86,642
4,178
1,673
92,493
Accumulated depreciation
(43,230)
(2,577)
(129)
(45,936)
Net book amount
43,412
1,601
1,544
46,557
63
BEACON LIGHTING GROUP ANNUAL REPORT 2024
15. INVESTMENT IN ASSOCIATES ACCOUNTED FOR USING THE EQUITY METHOD
Consolidated Entity
FY2024
$’000
FY2023
$’000
Shares in associates at carrying amount at start of period
19,963
19,971
Acquisitions
-
125
Cash distributions received
(425)
(429)
Net Share of associates profit / (Losses)
521
296
Carrying amount at end of period
20,059
19,963
Refer to note 35(b) for details of the Group’s associates
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
64
BEACON LIGHTING GROUP ANNUAL REPORT 2024
16. DEFERRED TAX ASSETS
Consolidated Entity
FY2024
$’000
FY2023
$’000
GROSS DEFERRED TAX ASSETS
The balance comprises temporary differences attributable to:
Employee benefits
2,603
2,372
Inventory
1,799
1,971
Franchise agreement termination fees
69
208
Debtor provision
89
105
Fixed assets
997
904
Marketing fund
138
147
Lease liabilities
40,095
38,299
Other provisions/accruals
1,697
1,136
Total deferred tax assets
47,487
45,142
GROSS DEFERRED TAX LIABILITIES
The balance comprises temporary differences attributable to:
Right of use asset
34,507
32,763
Total deferred tax liabilities
34,507
32,763
MOVEMENTS IN NET DEFERRED TAX ASSETS
Opening balance
12,737
12,653
Charged/(credited) to the consolidated statement of comprehensive income
(Note 7)
243
39
Charged/(credited) amounts recognised directly in equity
-
45
Net deferred tax assets
12,980
12,737
65
BEACON LIGHTING GROUP ANNUAL REPORT 2024
17. INTANGIBLE ASSETS
Consolidated Entity
Goodwill
$’000
Patents,
Trademarks and
Other Rights
$’000
Total
$’000
Year ended 25 June 2023
Opening net book amount
13,578
140
13,718
Additions
50
-
50
Amortisation charge for the year
-
(20)
(20)
Closing net book amount
13,628
120
13,748
At 25 June 2023
Cost
13,628
500
14,128
Accumulated amortisation
-
(380)
(380)
Net book amount
13,628
120
13,748
Year ended 30 June 2024
Opening net book amount
13,628
120
13,748
Additions
200
-
200
Amortisation charge for the year
-
(20)
(20)
Closing net book amount
13,828
100
13,928
At 30 June 2024
Cost
13,828
500
14,328
Accumulated amortisation
-
(400)
(400)
Net book amount
13,828
100
13,928
The prior year acquisition accounting has been finalised in the current year and there were no changes to the amounts previously
reported.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
66
BEACON LIGHTING GROUP ANNUAL REPORT 2024
(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.
18. TRADE AND OTHER PAYABLES
Consolidated Entity
FY2024
$’000
FY2023
$’000
Trade payables
13,063
7,004
Customer deposits
4,036
4,071
Sundry creditors
10,249
7,233
Marketing fund
422
491
Other payables
357
365
28,127
19,164
(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
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.
Gross Margin
Growth Rate
Discount Rate
2024
2023
2024
2023
2024
2023
%
%
%
%
%
%
67.7
65.0
3.0
3.0
11.1
11.1
67
BEACON LIGHTING GROUP ANNUAL REPORT 2024
(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.
19. CURRENT BORROWINGS
Consolidated Entity
FY2024
$’000
FY2023
$’000
Secured
Trade finance (a)
-
-
Interchange facility (b)
24,160
19,405
24,160
19,405
20. CURRENT PROVISIONS
Consolidated Entity
FY2024
$’000
FY2023
$’000
Employee benefits (a)
8,047
7,271
Warranty provision (b)
2,148
1,655
Trade Loyalty Provision (c)
1,962
1,988
Make good provision (d)
26
26
Other provisions (d)
130
392
12,313
11,332
(a) Trade Finance
The Group utilises trade finance facilities to fund inventory. The total available facility in FY2024 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
FY2024.
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 22.
Risk Exposures
Details of the Group’s exposure to risks arising from current and non-current borrowings are set out in Note 2.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
68
BEACON LIGHTING GROUP ANNUAL REPORT 2024
(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
$215,000 (2023: $165,000) higher or lower.
Movement in Warranty Provision
(c) Trade Loyalty Provision
Provision is made for trade loyalty expense. The trade loyalty provision relates to the accumulation of award points for purchases which
entitle the Trade Club members to discounts on future purchases.
Consolidated Entity
FY2024
$’000
FY2023
$’000
Leave obligations not expected to be settled within 12 months
5,312
4,514
Consolidated Entity
FY2024
$’000
FY2023
$’000
Carrying amount at the start of the year
1,655
2,030
Charged/(credited) to profit or loss - amount incurred and charged
493
(375)
Carrying amount at end of period
2,148
1,655
Consolidated Entity
FY2024
$’000
FY2023
$’000
Carrying amount at the start of the year
1,988
845
Charged/(credited) to profit or loss - amount incurred and charged
(26)
1,143
Carrying amount at end of period
1,962
1,988
69
BEACON LIGHTING GROUP ANNUAL REPORT 2024
21. CURRENT TAX LIABILITIES
22. NON CURRENT BORROWINGS
Consolidated Entity
FY2024
$’000
FY2023
$’000
Provision for income tax
1,860
2,208
Consolidated Entity
FY2024
$’000
FY2023
$’000
Secured
Loan facility floating rate (a)
-
3,000
(a) Loan Facility Floating Rate
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 FY2024.
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 53 weeks ended 30 June 2024 and the 52
weeks ended 25 June 2023.
Risk Exposures
Information about the Group’s exposure to interest rate and foreign exchange risk is provided in Note 2.
(d) Other Provisions
Provision is made for make good expense and fringe benefit tax payable at the end of the reporting period.
Movements in Other Provisions
Consolidated Entity
FY2024
$’000
FY2023
$’000
Carrying amount at the start of the year
418
866
Charged/(credited) to profit or loss - amount incurred and charged
(262)
(448)
Carrying amount at end of period
156
418
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
70
BEACON LIGHTING GROUP ANNUAL REPORT 2024
23. NON CURRENT PROVISIONS
Consolidated Entity
FY2024
$’000
FY2023
$’000
Employee benefits
693
671
Make Good
1,066
1,066
1,759
1,737
24. LEASES
Consolidated Entity
FY2024
$’000
FY2023
$’000
Right of use assets
Buildings
114,183
108,017
114,183
108,017
Lease liabilities
Current
27,947
26,771
Non current
105,118
100,206
133,065
126,977
Consolidated Entity
FY2024
$’000
FY2023
$’000
Depreciation charge right of use assets
Buildings
27,579
25,132
27,579
25,132
Lease liabilities
Interest expense
6,121
4,919
6,121
4,919
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:
Amounts Recognized in the Statement of Profit or Loss
71
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Total cash outflows for leases for the period ended 30 June 2024 were $32,830,159 (2023 : $31,644,510)
Additions made to the right of use asset during the year were $21,222,666 (2023 : $28,647,630)
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 $12,518,388.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
72
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Consolidated Entity
FY2024
FY2023
Number of ordinary shares, fully paid
226,836,751
224,596,289
Movements in ordinary share capital
Balance at the beginning of the year
224,596,289
223,321,406
Dividend reinvestment plan share issue
2,240,462
1,274,883
226,836,751
224,596,289
Consolidated Entity
FY2024
$’000
FY2023
$’000
Movements in ordinary share capital
Balance at the beginning of the year
74,468
72,312
Dividend reinvestment plan share issue
4,702
2,156
Balance at the end of the year
79,170
74,468
25. CONTRIBUTED EQUITY
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 FY2024 was -13.3% (FY2023: 1.2%).
73
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Consolidated Entity
FY2024
$’000
FY2023
$’000
(a) Other reserves
Cash flow hedges reserve
27
121
Share based payment reserve
250
155
Foreign currency translation reserve
1,551
1,414
Treasury shares reserve
(353)
(354)
Common control reserve
(43,672)
(43,672)
Total Other Reserves
(42,197)
(42,336)
Movement in cash flow hedges reserve
Opening balance
121
330
Revaluation (net of tax effect)
(94)
(209)
Closing balance
27
121
Movement in share based payments reserve
Opening balance
155
30
Transactions arising from share based payments
95
125
Closing balance
250
155
Movement in foreign currency translation reserve
Opening balance
1,414
1,307
Revaluation (net of tax effect)
137
107
Closing balance
1,551
1,414
Movement in treasury shares reserve
Opening balance
(354)
(262)
Transactions arising from share based payments
1
(92)
Closing balance
(353)
(354)
Movement in common control reserve
Opening balance
(43,672)
(43,672)
Closing balance
(43,672)
(43,672)
26. RESERVES AND RETAINED PROFITS
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
74
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Nature and Purpose of Other Reserves
Cash Flow Hedges Reserve
The hedging reserve is used to record gains or losses on a
hedging instrument in a cash flow hedge that are recognised
in other comprehensive income, as described in Note 1(n).
Amounts are reclassified to profit or loss when the associated
hedged transaction affects profit or loss.
Share Based Payments Reserve
The share based payments reserve is used to recognise:
• The grant date fair value of rights issued to employees but
not exercised.
• The grant date fair value of shares issued to employees.
Foreign Currency Translation Reserve
Exchange differences arising on translation of the foreign
controlled entity are recognised in other comprehensive
income and accumulated in a separate reserve within equity.
The cumulative amount is reclassified to profit or loss when the
net investment is disposed of.
Treasury Shares Reserve
This reserve is used to record the elimination of shares in
Beacon Lighting Group held by the incentive plan trust entity
on behalf of the participants of the Groups incentive plan.
Common Control Reserve
This reserve is used to record the differences which may arise
as a result of transactions with non-controlling interests that do
not result in a loss of control.
Consolidated Entity
FY2024
$’000
FY2023
$’000
(b) Retained earnings
Movements in retained earnings were as follows:
Opening balance
116,964
104,090
Net profit for the period
30,102
33,643
Dividends paid
(18,249)
(20,769)
Closing Balance
128,817
116,964
75
BEACON LIGHTING GROUP ANNUAL REPORT 2024
27. DIVIDENDS
(a) Ordinary Shares
Consolidated Entity
FY2024
$’000
FY2023
$’000
Final dividend for period ended 25 June 2023 of 4.0 cents (2022: 5.0 cents) per
fully paid share
8,984
11,166
Interim dividend for period ended 30 June 2024 of 4.10 cents (2023: 4.30 cents)
per fully paid share
9,265
9,603
Total dividends paid
18,249
20,769
Dividends paid in cash or satisfied by the issue of shares under the dividend reinvestment plan
Dividends paid in cash
13,547
18,613
Dividends satisfied by the issue of shares under the dividend reinvestment plan
4,702
2,156
18,249
20,769
Dividend Reinvestment Plan
The Group Dividend Reinvestment Plan was re-instated in FY2023.
(b) Dividends not recognised at the End of the Reporting Period
Consolidated Entity
FY2024
$’000
FY2023
$’000
In addition to the above dividends, since year end the Directors have
recommended the payment of a final dividend of 3.8 cents per fully paid
ordinary share (2023: 4.0 cents), fully franked based on tax paid at 30%.
The proposed dividend is to be paid out of retained earnings at 30 June
2024, but not recognised as a liability at year end.
8,566
8,984
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
76
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Consolidated Entity
FY2024
$
FY2023
$
Key management personnel compensation
Short-term employee benefits
1,785,061
1,366,803
Post-employment benefits
144,594
117,529
Long-term benefits – movements in leave provisions
108,807
18,268
Performance based cash benefits
138,500
-
Performance based share benefits
57,031
224,499
2,233,993
1,727,099
28. KEY MANAGEMENT PERSONNEL DISCLOSURES
Detailed remuneration disclosures are provided in the Remuneration Report on pages 26 to 32.
29. 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 and performance rights 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.
Consolidated Entity
FY2024
$’000
FY2023
$’000
Franking credits available for subsequent reporting periods based on a tax rate of
30% (2023: 30%)
70,872
65,599
c) Franked Dividends
The franked portions of the final dividends recommended after 30 June 2024 will be franked out of existing franking credits or out of
franking credits arising from the payment of income tax in the 53 week period ended 30 June 2024.
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.
77
BEACON LIGHTING GROUP ANNUAL REPORT 2024
(c) 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:
FY2024
$’000
FY2023
$’000
Performance rights and options issued under employee STI plans
69
307
The number of rights and options to be granted is determined based on the average share price at 30 June (averaged over + / - 30 days).
FY2024
FY2023
Number of performance rights granted
-
108,718
Fair value of performance rights at grant date
-
$1.95
FY2024
FY2023
Exercise price
-
$0.00
Grant date
-
18 August 2022
Share price at grant date
-
$1.95
Expected dividend yield
-
4.25%
(b) Fair Value of Performance Rights Granted
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 30 June 2024 included:
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.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
78
BEACON LIGHTING GROUP ANNUAL REPORT 2024
30. EARNINGS PER SHARE
31. REMUNERATION OF AUDITORS
During the period the following fees were paid or payable for services provided by PricewaterhouseCoopers, auditor of the parent
entity.
32. CONTINGENCIES
There were no significant or material contingent liabilities including legal claims as at 30 June 2024 or 25 June 2023.
Consolidated Entity
FY2024
FY2023
Basic earnings per share - cents
13.35
15.05
Diluted earnings per share - cents
13.35
15.05
Weighted average number of ordinary shares used as the denominator in
calculating basic earnings per share
225,431,615
223,598,913
Weighted average number of ordinary shares and potential ordinary shares used
as the denominator in calculating diluted earnings per share
225,431,615
223,598,913
Consolidated Entity
FY2024
$
FY2023
$
Audit and assurance services
Audit and review of financial statements
330,300
308,400
Other services:
Taxation services
31,500
10,000
Total remuneration of PwC
361,800
318,400
79
BEACON LIGHTING GROUP ANNUAL REPORT 2024
33. COMMITMENTS
Significant capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is $2.45m
(2023: $2.76m).
34. RELATED PARTY TRANSACTIONS
(a) Subsidiaries
Interests in subsidiaries are set out in Note 35.
(b) Key Management Personnel
Disclosures relating to key management personnel are set out in Note 28.
(c) Transactions With Other Related Parties
Consolidated Entity
FY2024
$
FY2023
$
The following transactions occurred with related parties:
Purchases of goods
Purchases of goods and supply of services from other related parties
-
1,488
Other transactions
Income received from other related parties
66,000
75,000
Rent and outgoings paid to other related parties
(1,377,558)
(1,417,405)
Payments for equity interest in associate
-
(125,000)
Loan to associate
(1,132,785)
(2,618,000)
Cash Distribution from interest in associate
521,085
429,474
Income from equity interest in associate
425,227
296,307
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
80
BEACON LIGHTING GROUP ANNUAL REPORT 2024
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 $205,990 per annum increasing by 3% annually. The lease expired in 2024 and is being held over on month to month
arrangements.
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 $268,594 per annum increasing by 3% annually. The lease expires in 2031.
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 $106,505 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 (2023 : $19,267,000).
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 30 June 2024, 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 30 June 2024
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 $240,400 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 $215,414 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 $183,763 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 $377,598 per annum increasing by 3% annually. The lease expires in 2030 with two further rights of renewal
for a period of seven years.
81
BEACON LIGHTING GROUP ANNUAL REPORT 2024
(1) The proportion of ownership interest is equal to the proportion of voting power held.
35. SUBSIDIARIES
Name of Entity
Incorporation
Shares
Equity Holding(1)
2024 %
2023 %
Beacon Lighting Corporation Pty Ltd
Australia
Ordinary
100
100
Beacon Lighting Group Incentive Plan Pty Ltd
Australia
Ordinary
100
100
Brightlite Unit Trust
Australia
Ordinary
100
100
Beacon Lighting Wholesalers Unit Trust
Australia
Ordinary
100
100
Beacon Lighting Franchising Unit Trust
Australia
Ordinary
100
100
Tanex Unit Trust
Australia
Ordinary
100
100
Enviro Renew Pty Ltd
Australia
Ordinary
100
100
Manrob Investments Pty Ltd
Australia
Ordinary
100
100
Masson Manufacturing Pty Ltd
Australia
Ordinary
100
100
Beacon Property Company Pty Ltd
Australia
Ordinary
100
100
Light Source Solutions New Zealand Limited
New Zealand
Ordinary
100
100
Beacon Lighting Europe GmbH
Germany
Ordinary
100
100
Beacon Lighting Corporation USA Inc.
United States of America
Ordinary
100
100
Beacon Lighting America Inc.
United States of America
Ordinary
100
100
Beacon Lighting Solutions (Zhongshan) Co. Ltd
China
Ordinary
100
100
Beacon International Limited
Hong Kong
Ordinary
100
100
Beacon Lighting International
Hong Kong
Ordinary
100
100
(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):
Consolidated Entity
FY2024
$
FY2023
$
Movement in loan to associate
Opening balance
2,918,000
300,000
Loans advanced
1,132,785
2,618,000
Closing balance
4,050,786
2,918,000
(d) Outstanding Balances
As at 30 June 2024 The Large Format Property Fund owed The Group $4,050,786 (FY2023 : $2,918,000). Interest is payable on the
loan at a rate of BBSW plus 1.7% and repayment of the loan is at the discretion of the lender with at least 40 business days notice.
Interest accrued $150,637 (FY2023 : $67,823).
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. Interest incurred $150,637 (FY2023 : $67,823).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
82
BEACON LIGHTING GROUP ANNUAL REPORT 2024
(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
2024 %
2023 %
Large Format Management Company Pty Ltd
Australia
Equity
45
45
Large Format Property Fund Pty Ltd
Australia
Equity
45
45
Large Format Property Fund
Australia
Equity
50
50
Large Format Property Subfund (Southport Nerang Road)
Australia
Equity
50
50
Large Format Property Subfund (Argyle Street)
Australia
Equity
50
50
Large Format Property Subfund (William Street)
Australia
Equity
50
50
Large Format Property Subfund (Parramatta Road)
Australia
Equity
50
50
Large Format Property Subfund (Bathurst)
Australia
Equity
50
50
Large Format Property Subfund (Modbury)
Australia
Equity
50
50
Large Format Property Subfund (Mildura)
Australia
Equity
50
50
The combined carrying value of the investment in associates at 30 June 2024 was $20,059,000 (FY2023 : $19,963,000).
83
BEACON LIGHTING GROUP ANNUAL REPORT 2024
(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.
Large Format Management
Company Pty Ltd and subsidiaries
Large Format Property Fund
and Sub Funds
Balance sheet
FY2024
$’000
FY2023
$’000
FY2024
$’000
FY2023
$’000
Current assets
Cash and cash equivalents
164
83
1,460
1,554
Trade and other receivables
29
23
-
-
Other current assets
8
9
2
-
Total current assets
201
115
1,462
1,554
Non-current assets
Property, plant and equipment
-
-
53,585
50,668
Total non-current assets
-
-
53,585
50,668
Total assets
201
115
55,047
52,222
Current liabilities
Trade and other payables
7
1
421
283
Loan
-
-
14,626
12,058
Total current liabilities
7
1
15,047
12,341
Non-current liabilities
Total non-current liabilities
-
-
-
-
Total liabilities
7
1
15,047
12,341
Net assets
194
114
40,000
39,881
Equity
Contributed equity
200
200
40,181
40,181
Retained earnings / Undistributed profits
(6)
(86)
(181)
(300)
Total equity
194
114
40,000
39,881
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
84
BEACON LIGHTING GROUP ANNUAL REPORT 2024
(ii) Summarised Statement of Comprehensive Income for Associates
Large Format Management Company
Pty Ltd and subsidiaries
Large Format Property Fund
and Sub Funds
Statement of comprehensive income
FY2024
$’000
FY2023
$’000
FY2024
$’000
FY2023
$’000
Revenue
142
96
2,063
1,607
Other expenses
(67)
(66)
(473)
(695)
Interest income
5
2
55
38
Depreciation and amortisation
-
-
-
-
Interest expense
-
-
(675)
(387)
Income tax expense
-
-
-
-
(Loss) / Profit from continuing
operations
80
32
970
563
(Loss) / Profit for the period
80
32
970
563
Other comprehensive income
-
-
-
-
Total comprehensive income
80
32
970
563
36. EVENTS OCCURRING AFTER THE REPORTING PERIOD
A fully franked dividend of $8,566,401 was declared on 21 August 2024.
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.
85
BEACON LIGHTING GROUP ANNUAL REPORT 2024
37. CASH FLOW INFORMATION
(a) Reconciliation of Profit After Income Tax to Net Cash Inflow from Operating Activities
Consolidated Entity
FY2024
$’000
FY2023
$’000
Profit for the period
30,102
33,643
Depreciation
34,700
30,823
Net gain / (loss) on disposal of non-current assets
(2)
(36)
Amortisation
20
20
Other expenses
(116)
(210)
Share based payments
69
307
Net exchange differences
155
(177)
Change in operating assets and liabilities:
(Increase) decrease in receivables
18
(1,991)
(Increase) decrease in inventories
1,259
(3,842)
(Increase) decrease in deferred tax assets
(243)
(84)
(Increase) decrease in other operating assets
(393)
(758)
(Decrease) increase in payables
8,829
(10,351)
(Decrease) increase in provision for income taxes payable
(348)
424
(Decrease) increase in other provisions
1,002
1,157
Net cash inflow from operating activities
75,052
48,925
(b) Reconciliation of Liabilities Arising from Financing Activities
Consolidated Entity
Leases due
within 1 year
$’000
Leases due
after 1 year
$’000
Borrowings
due within 1
year
$’000
Borrowings
due after 1
year
$’000
Total
$’000
Balance as at 26 June 2022
(26,718)
(97,742)
(19,561)
-
(144,021)
Additions / (Cash Inflows)
(26,839)
(2,464)
(89,760)
(3,000)
(122,063)
Cash Outflows
26,786
-
89,916
-
116,702
Balance as at 25 June 2023
(26,771)
(100,206)
(19,405)
(3,000)
(149,382)
Balance as at 26 June 2023
(26,771)
(100,206)
(19,405)
(3,000)
(149,382)
Additions / (Cash Inflows)
(29,011)
(4,912)
(67,920)
-
(101,843)
Cash Outflows
27,835
-
63,165
3,000
94,000
Balance as at 30 June 2024
(27,947)
(105,118)
(24,160)
-
(157,225)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
86
BEACON LIGHTING GROUP ANNUAL REPORT 2024
38. 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, 20 and 24. The Group has assessed the calculation of
inventory valuation provisions, warranty provision, make good provision and lease liabilities to be critical accounting estimates.
39. PARENT ENTITY FINANCIAL INFORMATION
(a) Summary Financial Information
The individual financial report for the parent entity shows the following aggregate amounts:
(b) Contingent Liabilities of the Parent Entity
The parent entity did not have any contingent liabilities as at 30 June 2024 or 25 June 2023.
BEACON LIGHTING GROUP LIMITED
FY2024
$’000
FY2023
$’000
Balance sheet
Assets
Current assets
38,904
19,474
Non-current assets
88,747
88,614
Total assets
127,651
108,088
Liabilities
Current liabilities
1,980
1,100
Total liabilities
1,980
1,100
Net assets
125,671
106,988
Equity
Contributed equity
103,487
98,785
Reserves
280
211
Retained profits
21,904
7,992
Total equity
125,671
106,988
Profit / (Loss) for the period
2,162
1,162
Total comprehensive income
2,162
1,162
87
BEACON LIGHTING GROUP ANNUAL REPORT 2024
40. DEED OF CROSS GUARANTEE
Beacon Lighting Group Limited and Beacon Lighting Corporation are parties to a deed of cross guarantee under which each Group
guarantees the debts of the others. By entering into the deed, the wholly owned entities have been relieved from the requirement to
prepare a financial report and directors’ report under ASIC Corporations Instrument 2016/914 issued by the Australian Securities and
Investment Commission.
The above companies represent a closed Group for the purposes of the Class Order, and as there are no other parties to the deed of
cross guarantee that are controlled by Beacon Lighting Group Limited, they also represent the extended closed Group.
Set out below is a consolidated income statement, a consolidated statement of comprehensive income and a summary of movements
in consolidated retained earnings for the 53 weeks ended 30 June 2024 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
FY2024
$’000
FY2023
$’000
Distribution income
47,830
50,532
General and administration expenses
(5,270)
(3,546)
Profit before income tax
42,560
46,986
Income tax expense
(12,923)
(14,174)
Profit for the period attributable to the members of the closed Group
29,637
32,812
Total comprehensive income for the period attributable to the members of
the closed Group
29,637
32,812
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
For the 53 weeks ended 30 June 2024 and the 52 weeks ended 25 June 2023 Beacon Lighting Group and its controlled entities
88
BEACON LIGHTING GROUP ANNUAL REPORT 2024
CONSOLIDATED BALANCE SHEET OF THE CLOSED GROUP
Beacon Lighting Group Limited and Beacon Lighting Corporation Pty Ltd
FY2024
$’000
FY2023
$’000
Current assets
Cash and cash equivalents
4,353
3,351
Trade and other receivables
4,318
3,747
Other current assets
-
11
Related party receivables
94,298
82,674
Total current assets
102,969
89,783
Non-current assets
Deferred tax assets
12,850
12,649
Investment in subsidiaries
90,692
90,583
Total non-current assets
103,542
103,232
Total assets
206,511
193,015
Current liabilities
Borrowings
-
2,838
Provisions
1,002
711
Current tax liabilities
1,619
1,733
Total current liabilities
2,621
5,282
Non-current liabilities
Provisions
3,425
3,425
Non-current liabilities
3,425
3,425
Total liabilities
6,046
8,707
Net assets
200,465
184,308
Equity
Contributed equity
79,129
74,427
Other reserves
(7,186)
(7,255)
Retained earnings
128,522
117,136
Total equity
200,465
184,308
89
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Name of Entity
Type of Entity
% of
Share
Capital
Place of
Business /
Country of
Incorporation
Australian
Resident
or Foreign
Resident
Foreign
Jurisdiction
of Foreign
Residents
Beacon Lighting Group Limited
Body Corporate
n/a
Australia
Australian
n/a
Beacon Lighting Corporation Pty Ltd
Body Corporate
100
Australia
Australian
n/a
Beacon Lighting Group Incentive Plan Trust
Trust
n/a
Australia
Australian
n/a
Beacon Lighting Group Incentive Plan Pty Ltd
Body Corporate
100
Australia
Australian
n/a
Brightlite Unit Trust
Trust
n/a
Australia
Australian
n/a
Brightlite Nominees Pty Ltd
Body Corporate
100
Australia
Australian
n/a
Beacon Lighting Wholesalers Unit Trust
Trust
n/a
Australia
Australian
n/a
Beacon Lighting Wholesale Pty Ltd
Body Corporate
100
Australia
Australian
n/a
Beacon Lighting Franchising Unit Trust
Trust
n/a
Australia
Australian
n/a
Beacon Lighting Franchising Pty Ltd
Body Corporate
100
Australia
Australian
n/a
Tanex Unit Trust
Trust
n/a
Australia
Australian
n/a
Tanex Pty Ltd
Body Corporate
100
Australia
Australian
n/a
Enviro Renew Pty Ltd
Body Corporate
100
Australia
Australian
n/a
Manrob Investments Pty Ltd
Body Corporate
100
Australia
Australian
n/a
Masson Manufacturing Pty Ltd
Body Corporate
100
Australia
Australian
n/a
Beacon Property Company Pty Ltd
Body Corporate
100
Australia
Australian
n/a
Light Source Solutions New Zealand Limited
Body Corporate
100
New Zealand
Foreign
New Zealand
Beacon Lighting Europe GmbH
Body Corporate
100
Germany
Foreign
Germany
Beacon Lighting Corporation USA Inc.
Body Corporate
100
USA
Foreign
USA
Beacon Lighting America Inc.
Body Corporate
100
USA
Foreign
USA
Beacon Lighting Solutions (Zhongshan) Co. Ltd
Body Corporate
100
China
Foreign
China
Beacon International Limited
Body Corporate
100
Hong Kong
Foreign
Hong Kong
Beacon Lighting International Limited
Body Corporate
100
Hong Kong
Australian
n/a
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
90
BEACON LIGHTING GROUP ANNUAL REPORT 2024
In the opinion of the Directors:
(a) The Financial Statements and notes set out on pages 37 to 89 are in accordance with the Corporations Act 2001, including:
(i) Complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory professional reporting
requirements, and
(ii) Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2024 and of its performance for the 53
weeks ended on that date.
(b) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and
payable,
(c) The consolidated entity disclosure statement on page 90 is true and correct,
(d) At the date of this declaration, there are reasonable grounds to believe that the members of the extended closed Group identified
in Note 40 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 40,
(e) Note 1(a) confirms that the financial statements also comply with International Financial Reporting Standards as issued by the
International Accounting Standards Board and
(f)
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, 21 August 2024
Glen Robinson
Chief Executive Officer
Declaration
DIRECTORS'
91
BEACON LIGHTING GROUP ANNUAL REPORT 2024
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BEACON LIGHTING GROUP LIMITED
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.
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 30 June 2024 and of its financial
performance for the 53 week period (the period) then ended
(b) complying with Australian Accounting Standards and the Corporations Regulations 2001.
What we have audited
The financial report comprises:
●
the consolidated balance sheet as at 30 June 2024
●
the consolidated statement of comprehensive income for the 53 week period then ended
●
the consolidated statement of changes in equity for the 53 week period then ended
●
the consolidated statement of cash flows for the 53 week period then ended
●
the notes to the consolidated financial statements, including material accounting policy
information and other explanatory information
●
the consolidated entity disclosure statement as at 30 June 2024
●
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.
92
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Our audit approach
An audit is designed to provide reasonable assurance about whether the financial report is free from
material misstatement. Misstatements may arise due to fraud or error. They are considered material if
individually or in aggregate, they could reasonably be expected to influence the economic decisions of
users taken on the basis of the financial report.
We tailored the scope of our audit to ensure that we performed enough work to be able to give an
opinion on the financial report as a whole, taking into account the geographic and management
structure of the Group, its accounting processes and controls and the industry in which it operates.
Audit scope
Key audit matters
●
Our audit focused on where the Group made
subjective judgements; for example, significant
accounting estimates involving assumptions and
inherently uncertain future events.
●
The Group sells lighting products to customers
primarily in Australia. The products are held at the
Group’s warehouses and stores throughout
Australia and several overseas locations. The
accounting processes are structured around a
Group finance function at its corporate head office
in Melbourne.
●
Amongst other relevant topics, we communicated
the following key audit matter to the Audit and Risk
Committee:
-
Existence and Valuation of inventory
●
This is further described in the Key audit matters
section of our report.
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 matter was 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 this matter. Further, any commentary on the outcomes of a
particular audit procedure is made in that context.
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 $95.7m. 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
We developed an understanding of the relevant
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.
● Performed a manual recalculation of the system
weighted average cost calculation on a sample of
inventory.
93
BEACON LIGHTING GROUP ANNUAL REPORT 2024
INDEPENDENT AUDITOR’S REPORT TO THE MEMBERS OF BEACON LIGHTING GROUP LIMITED
Key audit matter
How our audit addressed the key audit matter
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.
● Re-performed a sample of inventory counts at
selected locations that included attendance at the
Group’s distribution centres and stores.
● Inspected a sample of inventory items selling price
during July 2024 to determine whether items sold
below cost were included in the Group's inventory net
realisable value provision at balance sheet date.
● Re-performed tests on a sample basis to evaluate
the reliability and relevance of underlying data used to
calculate the inventory obsolescence provision.
● Evaluating the reasonableness of the Group's
disclosures in the financial report considering the
requirements of the Australian Accounting Standards.
Other information
The directors are responsible for the other information. The other information comprises the
information included in the annual report for the 53 week period ended 30 June 2024, 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 through our opinion on the financial report. We
have issued a separate opinion on the remuneration report.
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 in accordance
with Australian Accounting Standards and the Corporations Act 2001, including giving a true and fair
view, and for such internal control as the directors determine is necessary to enable the preparation of
the financial report that 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.
94
BEACON LIGHTING GROUP ANNUAL REPORT 2024
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 the directors’ report for the 53 week period
ended 30 June 2024.
In our opinion, the remuneration report of Beacon Lighting Group Limited for the 53 week ended 30
June 2024 complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
remuneration report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the remuneration report, based on our audit conducted in accordance with
Australian Auditing Standards.
PricewaterhouseCoopers
Matthew Probert
Melbourne
Partner
21 August 2024
95
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Information
In accordance with Section 4.10 of the Australian Stock Exchange Limited Listing Rules, the Directors provide the following
information.
Size of Shareholding
Number of Shareholders
1 - 1,000
598
1,001 – 5,000
703
5,001 – 10,000
398
10,001 – 100,000
641
Over 100,000
80
Total number of shareholders
2,420
Holdings of less than a marketable parcel
-
Shareholder
Number of Shares
% Held
Heystead Nominees Pty Ltd (plus Robinson Family members)
125,573,044
55.36%
(a) Distribution of Shareholders
At 10 July 2024, the distribution of shareholdings was as follows:
SHAREHOLDING ANALYSIS
(b) Substantial Shareholdings
The number of shares held by the substantial shareholders listed in the Company’s register of substantial shareholders as at 10 July
2024 were:
SHAREHOLDERS'
96
BEACON LIGHTING GROUP ANNUAL REPORT 2024
(c) Class of Shares and Voting Rights
At 10 July 2024, there were 2,420 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 10 July 2024:
Rank
Name
Units
% Units
1
Heystead Nominees Proprietary Limited
124,877,755
55.05%
2
Hsbc Custody Nominees (Australia) Limited
20,956,836
9.24%
3
Citicorp Nominees Pty Limited
19,584,489
8.63%
4
J P Morgan Nominees Australia Pty Limited
14,221,638
6.27%
5
National Nominees Limited
3,751,185
1.65%
6
Reliable Business Co Ltd
1,865,268
0.82%
7
Mr Spencer Ritchey Kulp + Mr Brian Walter Kulp
1,004,000
0.44%
8
Bnp Paribas Nominees Pty Ltd
823,484
0.36%
9
Kja Holdings Pty Ltd
782,739
0.35%
10
Banjo Superannuation Fund Pty Ltd
623,000
0.27%
11
D & G Ritchie Super Pty Ltd
500,000
0.22%
12
Mr Alistair Campbell
463,475
0.20%
13
Neweconomy Com Au Nominees Pty Limited
433,270
0.19%
14
Certane Ct Pty Ltd
426,518
0.19%
15
Bretton Pty Ltd
425,000
0.19%
16
Bentleys (Qld) Advisory Pty Ltd
400,000
0.18%
17
Netwealth Investments Limited
397,134
0.18%
18
Mr Wayne Francis Wode + Mrs Julie Marie Wode
360,816
0.16%
19
Warren Super Nominees Pty Ltd
350,000
0.15%
20
Jigway Pty Ltd
305,000
0.13%
Total 20 holders of ISSUED CAPITAL
192,551,607
84.89%
Total Remaining Holders Balance
34,285,144
15.11%
Total Shareholders
226,836,751
100.00%
97
BEACON LIGHTING GROUP ANNUAL REPORT 2024
DIRECTORS
Ian Robinson
Executive Chairman
Glen Robinson
Chief Executive Officer
(James) Eric Barr Deputy Chairman
Neil Osborne
Non-Executive Director
Prue Robinson Chief Marketing Officer
Daniel Palumbo Non-Executive Director
LEGAL ADVISORS
Baker & McKenzie
Level 19
181 William Street
Melbourne
Victoria
AUDITORS
PricewaterhouseCoopers
2 Riverside Quay
Southbank
Victoria
COMPANY SECRETARY
Tracey Hutchinson
REGISTERED OFFICE
Level 1
295 Whitehorse Road
Nunawading
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
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
Directory
CORPORATE
98
BEACON LIGHTING GROUP ANNUAL REPORT 2024
Locations
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
1280 Thompson 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
Heidelberg
2-4 Dora St
Hoppers Crossing
283 Old Geelong Rd
Maribyrnong
Harvey Norman Centre
169 Rosamond Rd
Melton
2269 Melton Hwy
Mentone
27-29 Nepean Hwy
Mildura
671 Fifteenth St
Moorabbin
867 Nepean Hwy
Nunawading
295 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
Auburn
126 Parramatta Rd
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
Crows Nest
118 Falcon St
Gladesville
Wharf Sqaure
8 Wharf Rd
Gosford West
Hometown
356 Manns Rd
Gregory Hills
Home Co
Steer 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
Warrawong
1/30 Northcliffe Dr
STORE
100
BEACON LIGHTING GROUP ANNUAL REPORT 2024
ACT
Fyshwick
175 Gladstone St
Gungahlin
14/5 Hibberson St
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 Heads
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
Busselton
115 Strelly 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
Mt Barker
4/4 Dutton 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
Devonport
6/4 Friend St
Launceston
40 William St
Moonah
7-9 Derwent Park Rd
101
BEACON LIGHTING GROUP ANNUAL REPORT 2024
102
BEACON LIGHTING GROUP ANNUAL REPORT 2024
www.beaconlighting.com.au