Our Capability
Our Success
ANNUAL
REPORT
CAPRAL LIMITED
ABN 78 004 213 692
2023
v
Contents
3
5
Key Statistics
Chairman’s Report
9 Managing Director’s Operations and Financial Review
12 Board of Directors
15 ESG and Sustainability Report
21 Director’s Report
24 Renumeration Report (Audited)
42 Auditor's Independence Declaration
43 Consolidated Statement of Profit or Loss and Other Comprehensive Income
44 Consolidated Statement of Financial Position
45 Consolidated Statement of Cash Flows
46 Consolidated Statement Of Changes in Equity
48 Notes to the Financial Statements
92 Directors' Declaration
93
Independent Auditor’s Report
98 Member Details
101 Corporate Directory
2
Annual Report 2023 — Capral Limited
v
Key
Statistics
For the year ended 31 December
2023
2022
Variance
Sales Volume - Tonnes
71,060
71,800
(740)
Revenue
656.9
692.5
(35.6)
$m
$m
$m
Underlying EBITDA1
Profit after Tax
Operating Cash Flow
Net Cash2
1 Please refer to notes on page 7
2 Please refer to notes on page 6
62.5
31.8
75.0
59.5
62.2
40.8
7.1
24.9
0.3
(9.0)
67.9
34.6
Capral Limited — Annual Report 2023
3
4
Annual Report 2023 — Capral Limited
Chairman’s
Report
Annual Review
Capital Allocation
I am pleased to announce that Capral delivered earnings
The Capral board is committed to ensuring that capital
per share of $1.77 for the year ended 31 December 2023,
allocation priorities are balanced between investment
compared to prior year of $2.31 which included 47cents of
opportunities for growth through acquisitions, capital
income tax benefit per share. Underlying earnings per
expenditure and working capital funding; efficiency
share for 2023 of $1.83 compares to $1.96 in 2022.
improvement and maintenance through sustaining capital
Revenues of $657 million in 2023 dropped by 5% from the
$693 million recorded in 2022 on 1% lower volume than
expenditure; and distributions to investors through capital
returns via share buy-backs and cash dividends.
2022. The lower sales revenue was primarily due to a 12%
Having prioritised the return of franking credits to
reduction in average metal costs as a result of lower
shareholders, the payment of the fully franked final
global aluminium prices (LME).
dividend of 35 cents per share for the year ended 2023 will
Capral delivered Underlying EBITDA1 of $62.5 million, up
slightly on the $62.2 million in the prior year and ahead of
guidance. Underlying EBIT1 fell 3% to $39.5 million as
compared to $40.8 million in 2022. Reported Net Profit
After Tax (NPAT) of $31.8 million compares to $40.8
million in 2022 which included $8.4 million arising from
recognition of deferred tax assets brought to account.
Underpinned by the benefits from the operational
restructure completed in 2019, Capral continued to
leverage the capacity utilisation of its extrusion plants.
This high productivity and operational leverage combined
with favourable sales mix contributed to near record
profitability. Demand in our key industrial sectors,
especially transport and industrial, remain robust whilst
we continue to retain some of the share gains previously
won against imports. As previously foreshadowed
residential construction, particularly in the detached
dwelling segment, weakened in the second half and is
expected to decline further in 2024.
Also pleasing was the reduction in working capital during
the year which contributed to the increase of $35 million in
Net Cash2 to $59 million at 31 December 2023. The
company’s balance sheet is strong, allowing us to
continue to balance our utilisation of free cash between
funding both external and internal growth as well as
returning cash to our shareholders through share buy-
backs and dividends.
exhaust all remaining franking credits. As Capral has
substantial tax losses to carry forward, any dividends
which may be paid in the foreseeable future will therefore
be unfranked.
Dividend and Buy-Back
The Company has declared a fully franked final dividend of
35 cents per ordinary share (2022: 50 cents) to be paid on
22 March 2024 in respect of the financial year ended 31
December 2023. The dividend will be paid to all
shareholders on the register of members as at the Record
Date of 1 March 2024. The Dividend Reinvestment Plan
will not be active for this dividend.
Including the final dividend of 35 cents Capral will have
returned 72.5 cents relating to the 2023 year, consisting of
55 cents in cash dividends and 17.5 cents by way of share
buy-backs completed during the 2023 year.
Capral will commence another on-market share buy-back
of up to 10% of its issued shares on or about 11th March
2024. Capral’s board will continue to ensure that
distributions to shareholders remains a key component of
Capral’s capital allocation policy. It is anticipated that
share buy-backs will form a major portion of value
returned to our shareholders.
Capral Limited — Annual Report 2023
5
Chairman’s Report
Safety and Sustainability
Board Changes
Capral is committed to pursuing excellence in its delivery of
Having served as an independent non-executive director
effective safety for all employees and sustainability across
since November 2008, I will be retiring from the board at
all parts of its business. Following up on the excellent safety
the conclusion the AGM on 8 May 2024 and will therefore
results achieved in 2022, the Capral team has maintained
not be standing for re-election. The board is in the process
that performance in the year under review and continues to
of considering a potential replacement as chair of Capral
better the comparative results of our listed peers.
and an announcement will be made regarding this once the
The environment is a key priority for Capral. From an
board has agreed and formalised the appointment.
Environmental, Social and Governance perspective, we have
Capral has appointed three independent non-executive
committed to Net Zero by 2050 (Scope 1 and 2 emissions),
directors since 2020, replacing three long-serving board
by driving sustainability best practice throughout business.
members and my retirement will complete Capral’s
Capral achieved Aluminium Stewardship Initiative (ASI)
commitment to board renewal.
certification in performance standard and chain of custody.
On behalf of the board I wish to thank all of the Capral team
Emission reduction targets are on track and diversity
and our other stakeholders for their strong support during
targets have been established. New waste management
2023. Thank you to my co-directors for their contributions
system trials are underway and environmental, social and
throughout the past year.
governance plans rolled out to all major Capral facilities.
I urge stakeholders to read the Sustainability Report in the
annual report, which details the many well advanced
initiatives in progress.
Looking Ahead
Whilst we expect the detached housing sector to decline
further, the non-residential and industrial segments of our
business should remain relatively firm. Capral is facing
some headwinds and challenges in the year ahead
including ongoing cost inflation and margin maintenance in
a softer market, which we anticipate will impact on earnings
in 2024. Despite this softer market and lower earnings
outlook, Capral is committed to investing in growth and
returning capital to shareholders going forward.
Please refer to the Outlook section of the Managing
Director’s Report for details of our earnings guidance
for 2024.
Shareholders are directed to the Results Presentation
released to the market today.
6
Annual Report 2023 — Capral Limited
Rex Wood-Ward
Chairman
1 Capral believes that Underlying EBITDA, EBIT and Earnings
per Share provides a better understanding of its financial
performance and allows for a more relevant comparison of
financial performance between financial periods. The
Underlying EBITDA, EBIT and Earnings per Share are
presented with reference to the ASIC Regulatory Guide 230
“Disclosing non-IFRS financial information” issued in
December 2011.
2 Net Cash is cash and cash equivalents ($59.5 million) less
short-term borrowings (nil).
Chairman’s Report
Performance Measures
Profit After Income Tax
Income Tax Benefit
Profit Before Income Tax
Add: Finance Costs
Add: Depreciation and Amortisation
Earnings Before Income Tax, Depreciation and Amortisation (EBITDA)
Add: LME Revaluation and Unrealised FX
Underlying EBITDA
Less: Depreciation and Amortisation
Underlying EBIT
Profit After Income Tax
Add: Income Tax Benefit
Add: LME Revaluation and Unrealised FX
Net Profit After Income Tax for Underlying EPS
Weighted Average Number of Ordinary Shares on Issue (Basic)
Underlying EPS
2023
$ million
2022
$ million
31.8
-
31.8
6.7
23.0
61.5
1.1
62.5
(23.0)
39.5
31.8
-
1.1
32.9
17.9
$1.83
40.8
(8.4)
32.4
6.3
21.3
60.0
2.2
62.2
(21.3)
40.8
40.8
(8.4)
2.2
34.6
17.7
$1.96
Capral Limited — Annual Report 2023
7
8
Annual Report 2023 — Capral Limited
Managing Director’s
Operations and
Financial Review
Highlights
Financial Review
• Strong earnings result for the third consecutive
Market conditions were strong in the first half of 2023,
year, and above latest guidance
with volumes assisted by a healthy pipeline of work in the
• Sales revenue $657 million, down 5% on last year,
due to lower international aluminium prices
• Volume at 71,100 tonnes was 1% down on last year
• Market conditions softened in the second half
• Underlying EBITDA¹ $62.5 million, up $0.3m on
last year
• Underlying EBIT1 $39.5 million, down $1.3m
on last year
• Underlying Net Profit After Tax1 $32.9 million, down
$1.7m on last year, and $2.9m above guidance
• Underlying earnings per share1 at $1.83, down
$0.13 on last year
residential housing sector. Conditions softened in the
second half as the market slowed and import supply
chains normalised. Volume however remained solid
which allowed Capral’s manufacturing plants to run at
high levels of efficiency.
As interest rates lifted the residential housing market
slowed from its highs which were driven by post-COVID
government housing stimulus programmes. Housing starts
are tracking to 173,0002 starts in 2023, the lowest levels
since 2013, 5% down on last year and down around 25%
from the highs of 2021. Commercial construction activity
also slowed during the year. However, our key industrial
markets remained relatively strong, underpinned by robust
• Balance sheet strong with net cash1 of $59.5 million
levels of economic activity and infrastructure spend.
• Fully franked final dividend of 35 cps declared, total
FY22 dividend of 55 cps
• Total distributions to shareholders 72.5 cps,
included share buy-back equivalent to 17.5 cps
The international LME price of aluminium eased during the
year from the elevated highs of 2022 which were impacted
by global supply factors. Capral’s average LME cost for
2023 was 12% below last year. This flowed through to
• Exceptional safety performance maintained with
lower selling prices and working capital levels in 2023.
TRIFR at 4.4, well below our listed peers
Capral delivered another strong profit result in 2023 with
underlying EBITDA¹ of $62.5 million (2022: $62.2m) on
slightly lower volume and 5% lower sales revenue.
Underlying EBIT1 of $39.5 million (2022: $40.8m) and an
underlying net profit after tax of $31.8 million (2022:
$32.4m). An excellent result, demonstrating how far Capral
has progressed over the last five years in being able to
deliver strong sustainable earnings.
Capral ended 2023 with a Net Cash1 balance of $59.5
million. Debtor collection performance remained good,
inventory levels fell, and LME prices were lower resulting in
lower working capital levels and a $35 million higher net
cash position.
Capral Limited — Annual Report 2023
9
Managing Director’s Operations and Financial Review
Capral will pay a fully franked final dividend of 35 cents per
Fair Trade
share and, together with the interim dividend of 20 cents
per share, resulted in total FY23 dividends of 55 cents per
share (FY22: 70 cps). Capral undertook an on-market share
buy-back during the second half of the year equivalent to
17.5 cps, taking total 2023 distributions to shareholders to
72.5 cps (FY22: 70 cps). In addition, Capral will undertake
an on-market share buy-back program during 2024 under
the 12-10 rule. Capral has now exhausted its franking credit
balance and any shareholder distributions for the
foreseeable future will be unfranked dividends and/or
share buy-backs.
Key Initiatives and Strategies
Key high-level strategies remain consistent with prior years:
• Build on our strengths - product offer, scale,
capability, and our people
Capral continues to lead the local industry in the pursuit of
fair trade, recent activity includes:
• Measures on Chinese imports are in place until 2025,
and a review of duty levels in 2023 resulted in
increased floor prices
• We successfully appealed the withdrawal of measures
against Malaysian and Vietnamese imports and
measures were re-instated late in 2023
Both decisions are being challenged by overseas exporters,
in conjunction with their import partners in Australia.
Market share gains have been made against imports over
the last few years, however imports continue to represent
over 30% of the total Australian extrusion market. As supply
chains normalise, we will continue the fight to retain a fair
share for the local extrusion industry which contributes over
• Optimise what we do – continuous improvement in
2000 direct jobs to the Australian economy.
all aspects of our business
• Grow for the future - develop innovative products,
Safety
enhance our capability, expand our footprint
Safety First is the most important of Capral’s five key values.
In 2024 we will continue to focus on our Smithfield and
We continue our focus on risk assessment, training,
Penrith extrusion plants and the new paint line at our
systems, and our safety culture. Capral’s safety performance
Huntingwood distribution centre in Sydney. Smithfield will
was exceptional again this year, recording a total reportable
continue to focus on lifting productivity through
injury frequency rate (TRIFR) of 4.4 (2022: 4.3), well below
debottlenecking product flow and upgrading equipment to
the peer average for listed building products manufacturers.
improve plant reliability and up-time. During 2023 we
successfully completed the first stage of the Penrith
extrusion plant upgrade, a major undertaking replacing the
press line, hydraulics, and control systems. The second
stage involves the replacement of the billet furnace and
saw which will take place later in 2024. These assets
provide Capral an enhanced manufacturing presence in
NSW delivering freight savings and improved service to
customers.
We will continue to grow Capral’s aluminium distribution
business with the objective of increasing the volume and
profitability of Capral’s direct channel. Over the past 18
months we have added two Aluminium Centres to the
Capral distribution footprint with acquisitions of existing
businesses in North Brisbane and Wollongong, expanding
our geographical presence. We continue to seek other
opportunities to expand our footprint.
10
Annual Report 2023 — Capral Limited
Managing Director’s Operations and Financial Review
Sustainability and ESG
Outlook
Capral’s journey to net zero emissions by 2050, and a 20%
Forecasts for the residential market show detached
reduction target by 2030, is progressing well. During the
housing slowing. Total residential starts in 2024 are
2022/23 year Capral’s scope 1 & 2 emissions per tonne
forecast2 to be similar to 2023 but the pipeline of work
of aluminium produced fell by 6.1% as a result of
that sustained volumes in 2023 has fallen away. The
operational energy efficiencies, and a transition to
non-residential market is forecast to be firm in 2024 as are
renewable energy sources.
our key industrial markets.
Capral achieved Aluminium Stewardship Initiative (ASI)
LME is volatile and subject to international influences.
certification during the year making us the only extruder in
Based on external forecasts, we expect LME to moderate
the region to secure this globally recognised certification.
slightly throughout the coming year on the back of lower
This has enabled Capral to offer certified lower carbon
global demand as economies slow under the weight of
aluminium options to the Australian market through our
higher interest rates.
trademark brands, LocAl® Green and Super Green.
The overall market for Capral’s aluminium extrusion and
Capral has considered the overall impact of current ESG
rolled product is forecast to fall modestly in 2024. We
issues and has not discovered any resulting material
expect to retain a good proportion of the market share
impact on our financial statements at this point. Full details
gained from imports post COVID. Underlying EBITDA1 is
are disclosed in the Company’s Sustainability Report.
forecast, absent any unforeseen events, to be between
Key Operating Risks
Capral has a robust risk assessment process and active
$50 million and $54 million with underlying Net Profit After
Tax between $23 million and $27 million. On that basis,
Capral would be in a position to continue to return capital
to shareholders by way of unfranked dividends and/or
risk mitigation programme, key risks include:
share buy-backs.
• Significant slow-down in economic activity,
particularly the new housing market
The focus in the year ahead will be to deliver benefits from
our recent capital investments in NSW, increase
•
Increased level of imported aluminium extrusion and
productivity in our extrusion operations, and grow our
increased local competition
distribution business through both acquisition and organic
• External IT threats such as cyber attacks
• Changes in construction methodology to meet more
stringent sustainable building codes
growth. We plan to enhance our range, service, and
capability to help grow our customer base and deliver
strong ongoing profitability.
I wish to thank the Capral team for their tremendous
contribution to the outstanding 2023 result. Capral
remains in a strong position to capitalise on its extensive
capabilities, take opportunities as they present, and
develop the business for the future.
Tony Dragicevich
Managing Director
23 February 2024
1 Refer to Underlying EBITDA, EBIT, Earnings per Share (EPS)
and Net Cash explanation in footnotes to Chairman’s
Report on pages 6 and 7.
2 HIA November 2023
Capral Limited — Annual Report 2023
11
Board of Directors
Directors in office during the financial year and up to
the date of this report (unless otherwise stated):
Rex Wood-Ward
Chairman of Board (Independent)
Appointed 6 November 2008
• Chairman of the Board
• Member of the Audit & Risk Committee
• Member of the Remuneration &
Nomination Committee
Graeme Pettigrew FIPA, FAIM, FAICD
Non-executive director (Independent)
Appointed 18 June 2010
Retired 27 April 2023
• Chairman of the Remuneration &
Nomination Committee
• Member of the Audit & Risk Committee
Mr Wood-Ward has 50 years of experience in general
management, mergers and acquisitions, corporate
strategy, and structuring, including in manufacturing and
distribution. Over his career he has been a director of over
10 publicly listed companies in Australia, the United
Kingdom, and South Africa.
Mr Pettigrew has held chief executive roles at CSR
Building Products Pty Ltd and Chubb Australia Ltd and he
retired as a non-executive director of Adelaide Brighton
Ltd. He has relevant experience in the construction and
building materials industry, as well as manufacturing and
distribution businesses.
Directorships of other listed companies held in last 3 years
Directorships of other listed companies held in last 3 years
before end of the Financial Year: None
before end of the Financial Year: None
Tony Dragicevich B. Comm A.C.A
Managing Director (Non-independent)
Appointed 15 April 2013
Mr Dragicevich joined Capral in January 2013 and became
the Managing Director and Chief Executive Officer on 15
April 2013. Mr Dragicevich is an experienced CEO and
business leader who has been involved in the
improvement of several businesses, having previously
served as Managing Director of the Wattyl Group, and as
Chief Executive of GWA Bathroom and Fittings, Managing
Director of the Red Paper Group and General Manager of
Tasman Insulation.
Directorships of other listed companies held in last 3 years
before end of the Financial Year: None
12
Annual Report 2023 — Capral Limited
Board of Directors
Katherine Ostin B. Comm, GAICD, F FIN, CA
Non-executive director (Independent)
Mark White B. Comm, M. Comm, CA, GAICD
Non-executive director (Independent)
Appointed 17 June 2020
Appointed 1 September 2021
• Chairman of the Audit & Risk Committee.
• Member of the Audit & Risk
• Member of the Remuneration &
• Member of the Remuneration &
Nomination Committee
Nomination Committee.
Ms Ostin is a Chartered Accountant and an experienced
Mr White has extensive experience in the aluminium and
Company Director with significant experience in finance
building materials sectors. He is currently the General
and accounting, audit, risk, governance, strategy and
Manager of Gove Aluminium Finance Limited. He also has
business development. She is currently a non-executive
more than 12 years’ experience as an Executive Director
director of a diverse portfolio of both listed and non-listed
on the Board of Tomago aluminium smelter and has held
companies and is Chair of the respective Audit & Risk
a number of senior positions in CSR Limited’s building
Committees. She has also previously served as a
products businesses and has over 20 years of experience
non-executive director of several not-for-profit entities. Ms
across a number of manufacturing industries.
Ostin was a senior Partner in Audit Assurance & Risk
Consulting with KPMG, holding various leadership roles
over her 12 years as a Partner from 2005 to 2017. In her
24 years with KPMG she has worked across a broad
number of sectors in Australia, Asia, the US and the UK.
Directorships of other listed companies held in last 3 years
before end of the Financial Year:
• Non-executive director of Swift Media Ltd:
1 October 2019 to 19 November 2021.
• Non-executive director of Dusk Group Ltd (ASX: DSK):
16 September 2020 to date of this report.
• Non-executive director of 3P Learning Ltd (ASX: 3PL):
6 August 2021 to date of this report.
Directorships of other listed companies held in last 3 years
before end of the Financial Year: None
Bryan Tisher B. Eng, MBA
Non-executive director (Independent)
Appointed 24 February 2022
• Chairman of the Remuneration & Nomination
Committee from 27 April 2023
• Member of the Audit & Risk Committee.
Mr Tisher has extensive experience in the resources,
building materials and electrical products sectors. He is
currently the Chief Executive Officer of Legend Corporation,
• Non-executive director of Next Science Limited
an Australian leader in industrial and electrical products
(ASX: NXS): 24 October 2023 to date of this report.
and previously held senior positions at Orica, Boral,
• Non-executive director of Elanor Investor Group
Limited (ASX: ENN): 1 January 2024 to date of
this report
• Non-executive director of Elanor Commercial
Property Fund (ASX: ECF): 1 January 2024 to date
of this report
and Rio Tinto.
Mr Tisher was the Managing Director of Orica Asia
responsible for manufacturing and distribution operations
covering 14 countries, and the Divisional Managing Director
of Boral Building Products responsible for the Plasterboard
Australia, Timber, Bricks, Roofing, Masonry and Windows
business units. He has had extensive board experience as
an Executive Chairman for six joint ventures in Asia and the
Boral Carter Holt Harvey Softwood Manufacturing Joint
Venture at Oberon, and, as a Non-executive Director at
Sustainable Timber Tasmania and Cape York Enterprises
Directorships of other listed companies held in last 3 years
before end of the Financial Year: None
Capral Limited — Annual Report 2023
13
14
Annual Report 2023 — Capral Limited
ESG and Sustainability Report
Committed to ESG Excellence
Safety
With a commitment to ESG excellence, Capral enhanced its
A significant aspect of our safety strategy involves
approach over the past year to align with key industry
equipping operational leaders with comprehensive
standards; Safety Management ISO:45001, Environmental
knowledge of fitness for work management, ensuring
Management ISO:14001, Aluminium Stewardship Initiative
team members execute their duties safely and without
(ASI) Performance Standard, and Global Reporting Initiative
incident. We promote an open communication culture and
(GRI) standards. We continued to develop our Integrated
encourage active engagement. This approach has been
Management System (IMS) which has been designed to
instrumental in reducing the frequency of reportable
systematise ESG considerations and refine the accuracy of
safety incidents, diminishing the severity of injuries, and
our performance metrics. Central to this initiative is
enhancing recovery outcomes. Consequently, we have
implementing a learning and development program to
observed a marked decrease in high-potential incidents.
enhance our employee’s comprehension of risk factors and
controls to mitigate risks. Through governance and
certification reviews, the integrity of our site IMS assurance
processes are continually validated, enabling a culture of
proactive behaviour and the swift identification of any
workplace anomalies across the business.
The following graph shows a reduction in our Total
Reportable Injury Frequency Rate (TRIFR) over the past
eight years. Capral’s 2023 TRIFR 2023 at 4.4 is well below
the average of listed building product manufacturers at
7.9. Our approach continues to develop improvements in
safety, assists employee well-being, prolongs working
Capral’s approach to sustainability is comprehensive
lifespans, and supports our ESG initiatives.
and dynamic. Integration of digital technology with
our ESG initiatives is an important component.
Our actions and strategies reflect our commitment to being
at the forefront of sustainable industry practices and
corporate responsibility.
R
F
I
R
T
16
14
12
10
8
6
4
2
0
2016
2017
2018
2019
2020
2021
2022
2023
Capral Limited — Annual Report 2023
15
ESG and Sustainability Report
Sustainability
Capral's commitment to reducing our environmental
Aluminium Stewardship Initiative
(ASI) Accreditation
impact is part our corporate responsibility. Our
Capral’s achievement in securing ASI accreditation
Sustainability Roadmap is founded on the United Nations
demonstrates our commitment to sustainable aluminium
Sustainable Development Goals. As we increase our
production and stewardship.
efforts, Capral will focus on all three pillars of ESG:
Environmental, Social and Governance. This will emerge as
we align with the development of International Financial
Reporting Standards and GRI disclosure obligations.
ASI is a globally recognised, non-profit organisation that
sets comprehensive standards for responsible practices in
the aluminium industry covering environmental, social,
and governance aspects. This accreditation places Capral
In 2021 we embarked on a journey to lower greenhouse
among an elite group of companies that adhere to the
gas emissions across Capral’s operations. This plan set
highest international standards across the aluminium
targets to decrease CO2e emissions through well-
value chain.
orchestrated initiatives. Our progress in emissions
reduction is measured by detailed reporting on electricity,
and gas usage. Our systems are designed for transparency
and accountability, allowing us to accurately measure our
performance against set goals. Our achievements stem
from investments in energy-efficient technologies and a
gradual transition towards a lower carbon economy with
increasing renewable energy sources.
In November 2022, we released the first lower-carbon
aluminium offer to the Australian market under Capral’s
trademark brand, LocAl®. This tapped into industry interests
in reducing the embodied carbon content in the built
environment. This initiative, together with our attainment of
ASI accreditation, positioned Capral at the forefront of
sustainable aluminium extrusion production in Australia.
The progression of our emission reduction plan shows a
year-on-year decrease, with 2023 results indicating we are
on track to achieve our targets. Capral remains committed
to our sustainability agenda, contributing to the global
climate change goals. We are confident that our ongoing
efforts will enable us to meet our emission reduction goals,
thereby enhancing our corporate value.
Capral underwent a rigorous third-party audit to achieve
ASI accreditation. This process assessed our governance,
environmental impact, and social practices against ASI’s
stringent Performance Standard V3, addressing crucial
issues such as biodiversity, human and indigenous rights,
greenhouse gas emissions, material stewardship from
cradle to end-of-life, and material recovery and re-use.
ASI certification validates our efforts and guides our future
initiatives, ensuring sustainability is ingrained in our
decision-making, aligning with international best practices,
and reinforcing our position as an industry leader.
Capral’s ASI certification and making lower-carbon
aluminium available, supports our sustainability strategy.
This highlights our responsibility towards reducing the
environmental impact of our products and processes and
our commitment to influencing sustainable practices
across the industry.
As Capral continues its sustainability journey, introducing
our LocAl® brand represents a key milestone to reduce the
environmental impact of the aluminium industry and
contribute positively to global sustainability efforts.
16
Annual Report 2023 — Capral Limited
ESG and Sustainability Report
Carbon Emissions (CO2e) Scope 1 & 2
The following graph shows the annual greenhouse gas emissions from
Capral’s operations, segmented by Scope 1 (gas) and 2 (electricity). A decline
in emissions related to electricity, our primary contributor, can be observed in
the current year. This reflects the impact of our switch to renewable energy
sources and process efficiencies.
30,000
25,000
20,000
15,000
10,000
5,000
0
e
2
0
C
F
O
S
E
N
N
O
T
2019-20
2020-21
2021-22
2022-23
SCOPE 1
SCOPE 2
Carbon Emissions (CO2e) per
Aluminium Volume Produced
The following graph illustrates Capral’s CO2e
emissions per tonne of extruded aluminium. It
shows a downward trend in emissions intensity,
demonstrating progress in reducing our
environmental footprint. This reflects
improvements in Capral’s production efficiency
and the adoption of cleaner energy technologies.
0.76
0.72
0.68
0.64
0.60
0.56
e
2
0
C
F
O
S
E
N
N
O
T
2019-20
2020-21
2021-22
2022-23
Carbon Emissions (CO2e) Reduction Plan
This graph reflects Capral’s commitment to reducing our carbon footprint.
Capral is committed to net zero by 2050. Our intermediate goal is to reduce
emissions 20% by 2029-30.
e
2
0
C
F
O
S
E
N
N
O
T
40,000
30,000
20,000
10.000
0
2021-22
2022-23
2023-24
2024-25
2025-26
2026-27
2027-28
2028-29
PROJECTED
ACTUAL
Capral Limited — Annual Report 2023
17
ESG and Sustainability Report
Modern Slavery and
Ethical Sourcing
Freight Management and
Packaging Initiatives
Capral undertakes a due diligence process each year,
These initiatives focus on enhancing logistics sustainability
assessing suppliers for potential risks within our supply
and transforming packaging processes, with a view to
chain associated with modern slavery and ethical
reducing our ecological impact.
sourcing. This involves a consolidated risk assessment of
suppliers. 25 international suppliers were deemed
moderate risk mainly due to transparency issues, while
Australian vendors were considered low risk. Importantly,
no high-risk suppliers were identified.
We are collaborating with freight partners in logistics to
innovate and optimise operations. Key strategies include
optimising route management for reduced travel distances,
transitioning towards lower-emission transport vehicles,
and consolidating freight to enhance load efficiency. These
Capral’s proactive measures, including a Supplier Code of
initiatives aim to lower fuel consumption and emissions,
Conduct, lay-out our expectations for our suppliers ESG
enhancing sustainable supply chain practices.
We are reviewing our packaging systems with an objective
to reduce plastic and timber usage. This involves
investigating alternative sustainable packaging materials,
reducing reliance on plastics, and ensuring timber is
sourced from certified sustainable origins. These changes
will lessen our environmental impact and align with the
growing eco-consciousness of our customers.
practices aligning with our legislative, ASI certification and
ethical commitments. We have expanded our Whistle
Blower program to cover procurement, allowing for
confidential reporting of compliance-related concerns.
Capral is increasing its lifecycle and data analytics use to
enhance supply chain mapping opportunities. Our
commitment and ASI certification reinforces responsible
sourcing and continuous improvement within our supply
chain. Through periodic reviews, on-site assessments, and
alignment with our Supplier Code of Conduct we remain
vigilant in combatting modern slavery and ensuring
ethically sourcing.
Circular Economy and
Waste Management
Capral’s commitment to circularity and waste
management is important to our environmental
sustainability efforts. We have enhanced our data capture
capabilities and recognised the role of efficient waste
management in our sustainability objectives. Integral to
our strategy is providing deeper insights into our waste
streams to facilitate more informed decision-making.
Capral initiated a waste management trial in our Western
Australia operating facility. This trial involved detailed
waste data tracking and analysis, providing an
understanding of our waste stream’s types, quantities, and
post-production paths. Comprehensive data collection is
pivotal in identifying inefficiencies and potential areas for
improvement in our waste management processes.
In 2024, we aim to establish a company-wide system that
reduces waste and embraces a closed-loop, circular
economy. In this system materials will be utilised to their
fullest potential, reducing our environmental footprint.
This system will integrate the best practices from our
trial learnings to ensure they are adapted to suit the
unique requirements of each local context within our
national operations.
18
Annual Report 2023 — Capral Limited
ESG and Sustainability Report
Diversity, Employee Development
and Social Responsibility
Capral employs approximately 1,100 individuals across
Capral’s commitment to supporting societal well-being
Australia, with around half of our team engaged through
through various community organisations reflects our
Enterprise Agreements. Our commitment to diversity is
corporate social responsibility culture. Capral continues
evidence of our belief that varied perspectives enhance
initiatives to raise awareness on key issues including;
decision-making and reflect the multifaceted community
mental health, domestic violence, and men’s health.
we serve.
Our employees are guided by Capral’s comprehensive Code
These campaigns have garnered widespread support
and employee engagement.
of Conduct and Vision and Values programme. Capral’s
Capral provides support to charity and social
inclusive approach draws strength from diversity by
organisations, including:
encompassing gender, ethnicity, age, nationality, sexual
orientation, cultural backgrounds, and a breadth of
• Allison Baden-Clay – Strive to be Kind
educational and professional experiences. Our goal is to
• Beyond Blue
cultivate a workplace where equity prevails, diversity is
• Cancer Research
celebrated, inclusivity is the norm, and a sense of belonging
resonates. Together, we aspire to craft a brighter, more
sustainable future.
Capral recognises that our employees are key to our
success. We have partnered with training organisations to
provide upskilling opportunities, ensuring our team grows
with the business. This initiative enables personal and
• Children’s Hospital
• Dandelions WA
• Disability Sports Victoria
• Festival of Magic
• Fiona Wood Foundation
• Leaps and Bounds Disability Services
professional development and aligns our workforce with
• Lions Australia
the evolving demands of a sustainable business landscape.
• Movember
• Rotary Down Under
• Westmead Hospital Foundation
• Starlight Foundation
• Foodbank
• Goodna Street Life
Capral Limited — Annual Report 2023
19
20
Annual Report 2023 — Capral Limited
Director’s Report
Your directors present their report on the consolidated entity consisting of
Capral Limited (Capral) and the entities it controlled at the end of, or during,
the financial year ended 31 December 2023 (Financial Year).
Directors
The following persons were directors of Capral except as indicated below:
NAME
PERIOD OFFICE HELD
R. L. Wood-Ward
6 November 2008 - Date of this report
A. M. Dragicevich
15 April 2013 - Date of this report
K. Ostin
17 June 2020 - Date of this report
G. F. Pettigrew
18 June 2010 – 27 April 2023
M. White
B. Tisher
1 September 2021 - Date of this report
24 February 2022 – Date of this report
Details of directors, their qualifications, experience, special responsibilities (including
committee memberships) and directorships of other listed companies held in the last
three years before end of the Financial Year are set out on pages 12 and 13.
Principal activities
Dividends and Buy-Backs
During the Financial Year, the principal continuing
The Directors recommend that a final dividend of 35 cents
activities of the consolidated entity consisted of the
per ordinary share (fully franked) be declared. The record
manufacturing, marketing and distribution of fabricated
date for the final ordinary dividend will be 1 March 2024,
and semi-fabricated aluminium related products.
with payment being made on 22 March 2024. Capral’s
Dividend Reinvestment Plan (DRP) will not be active for
this dividend. A final dividend of 50 cents per ordinary
share (fully franked) was paid in March 2023 in respect of
the 2022 financial year and an interim dividend of 20 cents
per ordinary share (fully franked) was paid on 15
September 2023 in respect of the 2023 financial year, no
other dividends have been paid during the Financial Year.
During 2023, 363,713 shares were bought back on-market
at a cost of $3,145,187, and subsequently cancelled.
Capral Limited — Annual Report 2023
21
Director’s Report
Review of operations and
financial position
A review of operations and financial position of the
consolidated entity are referred to in the Managing
Company Secretary
Ms K Bradley-Ware B Comm, CPA, LLB
Joint Company Secretary
Director's Operations and Financial Review on pages 9 to 11.
Ms Bradley-Ware has over 20 years of experience as a
Significant changes in the
state of affairs
There were no significant changes in the state of affairs of
the consolidated entity during the year.
Matters subsequent to the end of the
Financial Year
Company Secretary and CFO. Ms Bradley-Ware is an
employee of Company Matters Pty Ltd, a company
secretarial service provider. Prior to joining Company
Matters, Ms Bradley-Ware was a Company Secretary and
Chief Financial Officer at ASX listed Pan Pacific Petroleum
Limited (ASX: PPP) and prior to that, held various roles in
accounting across a variety of different industries including
credit reporting, telecommunications and media.
Ms Bradley-Ware has provided support to a large number of
No matter or circumstance other than those disclosed in
ASX companies including Elixinol Global Limited (ASX: EXL),
Note 34 has arisen since the end of the Financial Year that
Energy Action Limited (ASX: EAX), People Infrastructure Ltd
has significantly affected, or may significantly affect the
(ASX: PPE), as well as various Infrastructure Joint Ventures
consolidated entity's operations, the results of those
and Private Companies.
operations or the consolidated entity’s state of affairs in
future financial years.
Likely developments, business
strategies, prospects and risks
Information on likely developments, business strategies,
Ms Bradley-Ware resigned as Company Secretary
on 19 April 2023.
Ms L Osbich BA (Hons), LLB, GradDip Legal Practice
Joint Company Secretary
prospects and risks are detailed in the Managing Director’s
Ms Osbich is an employee of Company Matters Pty Ltd, a
Operations and Financial Review on pages 9 to 11 and the
company secretarial service provider. Prior to joining
Sustainability Report on pages 15 and 19. Whilst Capral
Company Matters, Ms Osbich was employed by ASX as a
continues to meet its continuous disclosure obligations,
Listings Compliance Advisor and prior to that, worked
this report omits information where it would be likely to
predominantly in the online legal publishing space with over
result in unreasonable prejudice to Capral. This includes
15 years’ experience extending to senior roles with a
information that is commercially sensitive, is confidential or
technical legal research focus.
could provide a third party with a commercial advantage
(such as internal budgets and forecasts).
Other information for members to
make an informed assessment
Other than information set out in this report, there is no
information that members would reasonably require to
make an informed assessment of the operations, financial
position, business strategies and prospects for future
financial years of the consolidated entity.
Ms Osbich has also worked as a Legal and Compliance
Research Consultant focusing on putting together practical
content in relation to governance, risk and compliance
programs, particularly focused on the financial services and
banking sectors.
Ms Osbich was appointed as Company Secretary
on 19 April 2023.
Mr T Campbell B.Com (Hons), CA
Chief Financial Officer and Company Secretary
Mr Campbell was appointed Chief Financial Officer on 1
June 2011 and is a member of the Australia and New
Zealand Institute of Chartered Accountants.
Prior to joining Capral, Mr Campbell held various executive
positions at UXC, Macsteel and The South African Breweries.
Mr Campbell was appointed as Company Secretary
on 8 March 2019.
22
Annual Report 2023 — Capral Limited
Director’s Report
Director’s Meetings
The numbers of directors' meetings (including meetings of committees) held, and the number of meetings attended, by
each director during the Financial Year, are as follows:
BOARD
AUDIT & RISK COMMITTEE
REMUNERATION &
NOMINATION COMMITTEE
Director
Held
Attended
Held
Attended
Held
Attended
R.L. Wood-Ward
A.M. Dragicevich1
K. Ostin
G.F. Pettigrew2
M. White
B. Tisher
7
7
7
2
7
7
7
7
7
2
7
7
4
4
4
1
4
4
4
4
4
1
4
4
3
3
3
1
3
3
3
3
3
1
3
3
1 Attended meeting(s) in an ex-officio capacity
2 Meetings up to retirement on 27 April 2023
Directors’ Interests and Benefits
Ordinary Shares
Details of holdings of ordinary shares in Capral for the directors (including former directors who held office during the
Financial Year) at the beginning and end of the Financial Year and at the date of this report are as follows:
Director
Position
ORDINARY SHARES FULLY PAID IN THE COMPANY
BALANCE AT
1.1.2023
BALANCE AT
31.12.2023
BALANCE AT DATE
OF THIS REPORT
R.L .Wood-Ward
Director and Chairman of the Board
-
-
-
A.M. Dragicevich Managing Director
546,041
566,7941
566,794
K. Ostin
Director
G.F. Pettigrew
Director
M. White
B. Tisher
Director
Director
-
-
-
-
-
-
-
-
-
-
-
-
1 Acquired 3,338 as part of 2022 STI programme on 28 April 2023. Allotted 102,670 as vesting of 2020 LTI rights on 22 March
2023, sold 85,255 to cover taxation obligations.
In addition to the interests shown above, indirect interests in Capral shares held by the Managing Director, Mr. Dragicevich
are as follows:
Mr A. M. Dragicevich
Nature of other interests
Performance rights
BALANCE AT
1.1.20231
BALANCE AT
31.12.2023
BALANCE AT DATE
OF THIS REPORT
237,970
179,7002
179,700
1 Shown as post 3 November 2020 share consolidation quantity.
2 Nil performance rights lapsed on 1 March 2023; 102,670 performance rights vested on 1 March 2023 and 44,400 performance
rights were issued on 27 April 2023
Unissued shares or interests under option
At the date of this report, there are 606,000 (2022: 722,320) unissued shares or interests under option. Refer to sections 1
to 3 of the Remuneration Report and Note 37.
Capral Limited — Annual Report 2023
23
Renumeration
Report (Audited)
This report sets out Capral’s remuneration of its directors and
executives. It also details the actual remuneration of its key management
personnel (including the directors) during the Financial Year.
Section 1: The Remuneration Framework
(a) Key Principles
Capral’s remuneration framework and practices are based
(b) Role of Remuneration &
Nomination Committee
on the principles that remuneration is performance driven,
The Remuneration & Nomination Committee is
aligns with shareholder interests, provides market
responsible for reviewing and making recommendations
competitive remuneration that attracts qualified and
to the Board of Directors (the Board) on remuneration
experienced candidates, and retains and motivates
policies for Capral including, in particular, those governing
employees.
The variable components of remuneration (short and long
term) are driven by challenging targets focused on both
the directors (including the Managing Director) and
executive managers. The Committee operates in
accordance with its Charter.
external and internal measures of financial and non-
Remuneration of the Managing Director and certain
financial performance. Details of performances measures
executive managers is reviewed at least annually by the
are set out in sections 1(g) and 1(h) below. Executive
Remuneration & Nomination Committee and
remuneration is aligned with shareholder interests via an
recommendations are put to the Board for its approval.
emphasis on variable (incentive) remuneration, the award
Short- and long-term incentives are linked to performance
of which is linked to performance benchmarks that
criteria. The Board can exercise its discretion in relation to
support business strategies and future success. A
approving bonuses and incentives. Changes must be
significant proportion of executive remuneration is at-risk.
justified by reference to measurable performance criteria
Details of the link between performance and remuneration
and having regard to Capral’s overall financial performance
is set out in section 4.
and other special circumstances.
The Remuneration & Nomination Committee may seek
independent advice as appropriate in setting the structure
and levels of remuneration based on the principle that the
elements of remuneration should be set at an appropriate
level having regard to market practice for roles of similar
scope and skill. Godfrey Remuneration Group Pty Ltd
(GRG), independent remuneration consultants, was
engaged during December 2021 to provide guidance
regarding structure and level of remuneration of Non-
Executive Directors and Key Executives.
24
Annual Report 2023 — Capral Limited
Renumeration Report (Audited)
(c) Performance Planning and Review
Capral has a Performance Planning and Review (PPR)
(e) Senior Management
Remuneration
process to evaluate and discuss performance and
The remuneration policy for the Managing Director and
development plans at least annually with salaried
executives seeks to attract and retain people with the
employees. This PPR process covers:
required capabilities to lead Capral in the achievement of
• An agreement of objectives for the year ahead and
the setting of key performance measures against
business objectives and focus on delivering financial and
non-financial measures.
which the achievement of those objectives will be
Remuneration is reviewed annually, and approved changes
assessed. These are set by reference to financial
applied from 1 March.
targets and key business strategies.
• A review of performance against the previously
agreed objectives for the period under review.
• Employee comment and feedback.
The Remuneration & Nomination Committee reviews the
remuneration arrangements of the Managing Director, his
direct reports and certain other executive managers. The
Managing Director reviews the remuneration
• Short- and long-term training and development
arrangements of the other members of senior
needs and career aspirations.
management, based on the recommendations of his
The PPR process ensures that there is better
direct reports.
understanding of Capral’s objectives thereby increasing
For the Managing Director and other senior management,
the likelihood of their achievement. It also enables
remuneration consists of a fixed annual salary and
managers to evaluate and develop employee skills and
superannuation (refer to section 1(f) below) plus at-risk
performance and identify future development needs.
components comprised of a short-term incentive plan
(STIP) (refer to section 1(g) below) and a long-term
incentive plan (LTIP) (refer to section 1(h) below).
The proportions of fixed and at-risk remuneration are
established for the Managing Director and other senior
management relative to their position in Capral. As a
general guide, at-risk remuneration is 50% for the
Managing Director, 25 – 30% for executive management
and 10%-20% for other senior managers, for the
achievement of ‘target’ goals.
(d) Non-executive Directors
The structure of Capral’s non-executive director
remuneration is distinct from that applicable to the
Managing Director and other senior executives.
Remuneration of non-executive directors is established at
a level that enables Capral to attract and retain high quality
directors at a reasonable cost. Remuneration of non-
executive directors and their terms of office are governed
by Capral’s constitution and not by contract.
Remuneration of non-executive directors is allocated out
of the pool of funds, the limit of which is approved by
shareholders in general meeting; the fee pool limit is
currently $650,000 per annum. Each non-executive director
is entitled to the payment of an annual fee in cash and
superannuation contributions for their services. Additional
fees are not paid for sitting on Board committees; however,
the extra responsibility of the Chairman of the Board and
committees is recognised by the payment of a higher fee.
The fees for the non-executive directors were reviewed by
GRG as detailed above and adjusted during FY22 to be in
line to those paid at comparable listed companies.
Non-executive directors do not receive any shares, options
or other securities as part of their remuneration however
they are eligible to participate in Capral’s equity incentive
plans, although none currently participate. There are no
schemes for retirement benefits (other than statutory
superannuation payments).
Capral Limited — Annual Report 2023
25
Renumeration Report (Audited)
(f) Fixed remuneration
(g) Short Term Incentives
The level of the total employment cost (being base salary
Capral’s short-term incentive schemes are designed to
plus superannuation) (TEC) is determined having regard
encourage participants to assist Capral in achieving
to job responsibilities, skills, experience, and
continuous improvement by aligning their interests with
performance. Salaries are reviewed annually, with any
those of Capral and its stakeholders and rewarding them
changes applied from 1 March. Fixed remuneration of
when key performance measures are achieved.
executives is generally targeted at market median.
For the Financial Year, there were 3 short term
The fixed remuneration of the Managing Director is
incentive programmes:
determined by the Board having regard to other ASX
listed companies in building product related industries,
his particular skills and previous remuneration,
experience and capability to lead Capral in delivering
financial targets and executing key business strategies. It
forms part of his executive employment contract and is
subject to annual review.
The Board has reviewed generally available market
information regarding fixed remuneration of the key
management personnel with comparable revenues
and market capitalisation. The fixed remuneration of
1) Short Term Incentive Plan (STIP): The Managing
Director and senior employees have the opportunity
to earn a cash and deferred equity incentive, based
on a specified percentage of TEC dependent on each
individual’s level of responsibility. The actual
incentive earned is based on the achievement of
financial and non-financial objectives.
2) Bonus scheme: other salaried employees can earn
fixed payments, as approved by the Managing
Director, for achieving key performance measures
set by their managers and outlined in the employee’s
Capral’s key management personnel is generally in line
individual PPR.
with this group.
3) Sales incentives: Sales employees participate in
quarterly sales incentive programmes in relation to
revenue, gross margin, and debtor days targets.
STIP is weighted 70% to financial objectives and 30%
safety and other non-financial objectives. A summary of
STIP is set out in the table below:
26
Annual Report 2023 — Capral Limited
Renumeration Report (Audited)
TERM
DESCRIPTION
Frequency
Awards determined annually with payment made in the March following the end of the
performance year.
Finanial
Measures
• Trading EBITDA for Capral and (for relevant General/Divisional Managers) Business Units (30%). Key
financial threshold measure as reflects underlying earnings after excluding the impact of external
economic factors such as the volatility of global aluminium prices and the unrealised impact of
foreign exchange rate fluctuations.
• Net Profit After Tax for Capral (15%). Aligned to ability to pay dividends.
• Free Cash Flow for Capral (15%). Selected to ensure effectiveness of cash management.
• % Working Capital to Annualised Sales for Capral and (for relevant General/ Divisional Managers)
Business Units (10%). Selected to ensure effectiveness of capital management.
Safety and other
Specific individual objectives are set to reflect measurable and numeric (where possible) strategic
Non-financial
initiatives and profit and safety improvement objectives. The key individual objectives include
Measures
performance to customers, sales targets/growth, productivity and operational improvements, key
projects, and cost improvements. The weightings are generally 5% however may be higher or lower
depending on importance to company performance.
Assessment of
Performance against financial measures is assessed after the end of each financial year based on
performance
Capral’s financial results. The performance against non-financial measures is assessed as part of the
against
measures
PPR process.
The Managing Director, in consultation with senior managers, is responsible for recommending to the
Board the amount of STIP, if any, to be paid.
Payments are subject to the achievement of applicable Capral, Divisional or Regional minimum annual
Trading EBITDA targets. Stretch payments are not made where target financial metrics are not met.
Discretionary
The Board retains absolute discretion regarding payments having regard to Capral’s overall financial
override
position and other special circumstances that have arisen during the year (i.e. normalisation or
clawback). The intent however is to minimise the exercise of discretionary adjustments to the planned
outcomes set at the start of the year. Material adjustments would be disclosed.
Service
condition
The Managing Director is eligible to receive a pro-rata payment where his employment is terminated
other than for cause. Other employees who leave Capral part way through a performance period are not
eligible for a payment for that period.
Clawback of
In the event of fraud, misstatement or misrepresentation of the financials, the Board may exercise its
awards
discretion to withhold some or all of a payment before it is made or recover some or all of payments
already made.
Deferral
Any ‘Stretch’ STIP payments (after tax) to the Managing Director and Executive Team is satisfied by
Capral Shares and held in escrow for 3 years. These shares can be issued or acquired on-market (priced
at the 12-month Volume Weighted Average Price (VWAP) as at the end of the performance period) as
determined by the Board. There is no deferred cash / equity component for other STIP participants. The
Board introduced deferred equity in 2018 to further strengthen alignment of Capral’s executive
managers with shareholders.
Plan review
The STIP design is reviewed at least annually by the Remuneration & Nomination Committee and
approved by the Board. The Managing Director, in consultation with senior managers, is responsible
for recommending to the Board the STIP financial targets. The non-financial objectives are approved by
the Managing Director. The Managing Director’s non-financial targets are established and approved
by the Board.
Capral Limited — Annual Report 2023
27
Renumeration Report (Audited)
The Managing Director and key management personnel are
(h) Long Term Incentives
eligible for the following awards of STIP relative to TEC:
% OF TEC
Position
Minimum
Target
Stretch
Managing Director
Chief Financial Officer
25%
15%
50%
30%
100%
60%
Capral’s long-term incentive plan (LTIP) was designed to
strengthen the alignment of the interests of senior
managers with shareholders and support a culture of
share ownership and shareholder wealth. It also aims to
provide competitive remuneration for the retention of
specifically targeted members of senior management.
The Managing Director, Mr Dragicevich, was granted
Where objectives can be financially measured, ‘Minimum’ is
86,300 performance rights following shareholder approval
generally set around 15% below Board approved Budget.
in April 2021 and 49,000 performance rights following
‘Target’ is generally set around Board approved Budget and
shareholder approval in April 2022. During the Financial
‘Stretch’ is generally set 30% above Budget.
Year, an additional 44,400 performance rights were
The Board periodically review external independent
remuneration benchmarking reports (latest Dec 2021)
granted to Mr Dragicevich following shareholder approval
in April 2023.
regarding short term incentive schemes of the key
On the recommendation of the Managing Director to the
management personnel (including the Managing Director)
Remuneration & Nomination Committee, selected senior
for listed companies with comparable revenues and market
executives participate in LTIP.
capitalisation. The Board considers that Capral’s short-term
incentive scheme is generally in line with this group.
A summary of LTIP for the Managing Director and other
senior executives is set out below:
28
Annual Report 2023 — Capral Limited
Renumeration Report (Audited)
TERM
Frequency
DESCRIPTION
Awards determined annually.
Type of award
Performance rights subject to service requirements and vesting criteria. If the conditions
are met, shares will be issued or allocated around the vesting date.
Amount of Award
The Managing Director is eligible to receive additional annual issues of up to 50% of the
value of TEC, subject to shareholder approval.
The value of individual awards for all other participating senior executives is generally less
than 30% of TEC.
As a matter of practice, the aggregate amount of each annual award to all Executives is
about 1.5% of issued capital and the number of rights awarded is based on the 12-month
Volume Weighted Average Price (VWAP) as at the start of the performance period.
Performance period &
3 years with 31 December testing dates.
vesting dates
2021 award: vesting date of 1 March 2024.
2022 award: vesting date of 1 March 2025.
2023 award: vesting date of 1 March 2026.
Performance conditions
Performance rights granted under LTIP are subject to the participant remaining employed
by Capral at the vesting date and the achievement of the following performance
conditions:
• 50% of rights are subject to an EPS performance condition. The actual EPS
performance is measured over a 3-year period, must meet, in aggregate, the 3
annual targets combined. The EPS condition is calculated each year as follows: Net
Profit After Tax Target as specified by the Board for that year (adjusted for any
extraordinary items approved by the Board) divided by weighted average number of
securities on issue during the year. The Net Profit After Tax Target used for this
condition is set at least at minimum Budget level. The Board may adjust EPS to
normalise results and exclude the effects of material business acquisitions/
divestments and certain one-off costs; any material adjustments would be
disclosed. The number of rights that may vest is set out in Table B below.
• 50% of rights are subject to a TSR performance condition as against the entities
with ordinary shares and units (as the case may be) included in the S&P/ASX All
Ordinaries Index as at 1 January in the year of grant but excluding those companies
who are classified in the Global Industry Classification Standard sector number 40.
The number of rights which may vest is set out in Table A below.
Refer to the explanation above (LTIP) regarding the setting of the EPS condition and the
use of EPS and TSR tests.
Assessment of performance
Performance against the EPS and TSR conditions are assessed at the end of the 3-year
against measures
period (31 December testing date).
There is no re-testing of EPS or TSR conditions. Vested rights convert on the relevant
vesting date a one-for-one basis to ordinary shares. Unvested rights lapse.
Capral Limited — Annual Report 2023
29
Renumeration Report (Audited)
TERM
DESCRIPTION
Treatment of awards on
If employment ceases all unvested rights will immediately lapse. However, if the
cessation of employment
cessation relates to the redundancy or permanent disability / death of the employee or
other reason determined by the Board then the Board has absolute discretion to
determine that the rights remain in play on a pro rata basis.
Treatment of awards on
The Board has discretion to allow awards to vest on a change of control. In exercising this
change of control
discretion, the Board is not bound to award all shares.
Dividend/participation
There is no entitlement to dividends on performance rights during the vesting period or to
rights
participate in respect of issues of shares to shareholders.
Clawback of awards
In the event of fraud, misstatement or misrepresentation of the financials, the Board may
exercise its discretion to forfeit some or all of the award prior to the issue of shares or
recover some or all of the award already made.
Plan review
The LTIP design is reviewed at least annually by the Remuneration & Nomination
Committee and approved by the Board. The Managing Director makes recommendations
to the Remuneration & Nomination Committee regarding the proposed LTIP award
participants and the amount of the entitlements.
Vesting of rights subject to the TSR and EPS performance
(i) Anti-Hedging Policy
conditions at each testing date is determined in
accordance with Tables A and B respectively below:
Table A
PERCENTAGE OF TSR
% RIGHTS VESTING
< 50th
50th
None
50
> 50th and < 75th
Between 50 and 100 (pro rata)
Capral’s personnel are not permitted to enter into
transactions with securities (or any derivative thereof)
which limit the economic risk of any unvested
entitlements awarded under any Capral equity-based
remuneration scheme currently in operation or which will
be offered by Capral in the future. As part of Capral’s due
diligence undertaken at the time of the financial results,
participants in any Capral equity plan are required to
confirm that they have not entered into any such
> 75th
Table B
100
prohibited transactions.
EPS TARGET RANGE
% RIGHTS VESTING
> 5% below target
5% below target
None
50
< 5% below target to
Between 50 and 100 (pro rata)
10% above target
> 10% above target
100
The Board has reviewed the guidance provided through
the GRG remuneration benchmarking report regarding
long term incentive schemes of the key management
personnel (including the Managing Director) for listed
companies with comparable revenues and market
capitalisation. The Board considers that Capral’s long-term
incentive scheme is generally in line with this group.
30
Annual Report 2023 — Capral Limited
Renumeration Report (Audited)
Section 2: Actual Remuneration of key management personnel
During the Financial Year there were a number of remuneration outcomes. The expensed
remuneration is set out in detail in the remuneration table below however in summary the
key outcomes were as follows:
(a) Remuneration
(c) LTIP
General pay increases were implemented for executives.
44,400 performance rights were granted to the Managing
Total expensed remuneration for the management
Director in April 2023 following shareholder approval
personnel (including the directors) increased on average
(2022: 49,000) and 141,100 rights were granted under
by 3% as compared to the prior year.
the 2023 LTIP award to executives in March 2023
(b) STIP
(2022: 139,000).
Performance rights granted to the Managing Director and
STIP accruals in respect of the 2023 year are higher than
executives under LTIP awards were tested after the year
the prior year actual payout.
end with the outcomes detailed in section 3 below.
For the financial year ending 31 December 2024, Capral
intends to:
•
increase the fixed remuneration of the Managing
Director and executives by an average of 3%; and
• grant further performance rights under the LTIP to
the Managing Director (subject to shareholder
approval) and selected senior managers.
Capral Limited — Annual Report 2023
31
Renumeration Report (Audited)
(d) Remuneration Table - key management personnel
The following table sets out the remuneration of the key management personnel (including the directors)
during the Financial Year and the 2022 financial year.
The key management personnel of the consolidated entity are the non-executive directors, Managing Director
and Chief Financial Officer/Company Secretary. These people have the authority and responsibility for
planning, directing and controlling the day-to-day activities of Capral.
Name
Year
Title
Salary & Fees
Bonus1 Non-monetary Benefits
Super-annuation4
Deferred Equity1
Performance Rights3
SHORT-TERM EMPLOYEE BENEFITS
POST-EMPLOYMENT
BENEFITS
OTHER LONG-
TERMINATION
TERM BENEFITS
BENEFITS2
SHARE-BASED PAYMENTS
TOTAL
TOTAL PERFORMANCE
RELATED
DIRECTORS
A.M. Dragicevich
2023 Managing Director
702,310
373,750
2022 Managing Director
700,428
364,650
$
$
R.L. Wood-Ward
2023 Chairman
2022
Chairman
2023 Non-executive director
2022 Non-executive director
2023 Non-executive director
2022 Non-executive director
2023 Non-executive director5
2022 Non-executive director
2023 Non-executive director
2022 Non-executive director
2023 Non-executive director
2022 Non-executive director6
P.J. Jobe
K. Ostin
G.F. Pettigrew
M. White
B. Tisher
Executives
124,545
123,821
-
23,664
83,636
81,463
26,653
81,463
73,636
71,464
83,217
62,712
-
-
-
-
-
-
-
-
-
-
-
-
T. Campbell *
2023 CFO/ Co. Sec.
430,832
139,500
2022
CFO/Co. Sec.
405,218
108,375
Total 2023
Total 2022
1,524,829
513,250
1,550,233
473,025
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
27,500
27,102
13,392
12,697
-
2,858
8,993
8,358
2,799
8,358
7,917
7,332
8,950
6,458
27,482
27,482
97,033
100,645
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
88,450
53,050
351,756
323,079
$
-
-
-
-
-
-
-
-
-
-
-
-
1,543,766
1,468,309
137,937
136,518
$
-
26,522
92,629
89,821
29,452
89,821
81,553
78,796
92,167
69,170
-
-
-
-
-
-
-
-
-
-
-
-
31,900
14,625
120,350
67,675
103,626
97,966
733,340
653,666
455,382
2,710,844
421,045
2,612,623
%
53
50
-
-
-
-
-
-
-
-
-
-
-
-
38
34
32
Annual Report 2023 — Capral Limited
Renumeration Report (Audited)
Name
Year
Title
Salary & Fees
Bonus1 Non-monetary Benefits
Super-annuation4
Deferred Equity1
Performance Rights3
SHORT-TERM EMPLOYEE BENEFITS
POST-EMPLOYMENT
BENEFITS
OTHER LONG-
TERM BENEFITS
TERMINATION
BENEFITS2
SHARE-BASED PAYMENTS
TOTAL
TOTAL PERFORMANCE
RELATED
DIRECTORS
A.M. Dragicevich
2023 Managing Director
702,310
373,750
2022 Managing Director
700,428
364,650
$
$
R.L. Wood-Ward
2023 Chairman
2022
Chairman
2023 Non-executive director
2022 Non-executive director
2023 Non-executive director
2022 Non-executive director
2023 Non-executive director5
2022 Non-executive director
2023 Non-executive director
2022 Non-executive director
2023 Non-executive director
2022 Non-executive director6
P.J. Jobe
K. Ostin
M. White
B. Tisher
G.F. Pettigrew
Executives
124,545
123,821
-
23,664
83,636
81,463
26,653
81,463
73,636
71,464
83,217
62,712
-
-
-
-
-
-
-
-
-
-
-
-
T. Campbell *
2023 CFO/ Co. Sec.
430,832
139,500
2022
CFO/Co. Sec.
405,218
108,375
Total 2023
Total 2022
1,524,829
513,250
1,550,233
473,025
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
27,500
27,102
13,392
12,697
-
2,858
8,993
8,358
2,799
8,358
7,917
7,332
8,950
6,458
27,482
27,482
97,033
100,645
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
88,450
53,050
$
351,756
323,079
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
1,543,766
1,468,309
137,937
136,518
-
26,522
92,629
89,821
29,452
89,821
81,553
78,796
92,167
69,170
31,900
14,625
120,350
67,675
103,626
97,966
733,340
653,666
455,382
2,710,844
421,045
2,612,623
%
53
50
-
-
-
-
-
-
-
-
-
-
-
-
38
34
1 All salaries, fees and bonus amounts are on an accrual basis.
2 Termination benefits include leave accrued and payments made in lieu of notice at the end of employment with Capral.
3 All LTIP performance rights listed are securities that have not yet vested. In relation to the performance rights of the key
management personnel refer to Note 38 of the financial statements.
4 Superannuation guarantee percentage has been changed from 10.5% to 11% from 1 July 2023.
5 Mr Pettigrew retired as director on 27 April 2023.
6 Mr Tisher was appointed as a director on 24 February 2022.
* Capral's key management personnel (other than directors).
Capral Limited — Annual Report 2023
33
Renumeration Report (Audited)
Section 3: Performance rights, Options and Bonuses provided as Compensation
Performance rights - Managing Director
During the Financial Year and the financial year ended 31
2023. Capral achieved the EPS condition and
December 2022, performance rights were granted as
consequently 43,150 rights will vest in March 2024. The
equity compensation benefits under the LTIP, to the
TSR condition (43,150 rights) was also tested as at 31
Managing Director as disclosed as at balance date below.
December 2023. Capral’s relative TSR performance over
The performance rights were granted at no cost to him.
the period from January 2021 to December 2023 at
44,400 performance rights were granted to the Managing
Director in April 2023 following shareholder approval.
These rights have a vesting date of March 2026.
49,000 performance rights were granted to the Managing
Director in April 2022 following shareholder approval.
These rights have a vesting date of March 2025.
86,300 performance rights were granted to the Managing
Director in April 2021 following shareholder approval.
These rights have a vesting date of March 2023. The EPS
condition (43,150 rights) was tested as at 31 December
121.4% (2022: 161.4%) was in the 91st percentile (2022:
92nd) and thus 100% of the rights subject to the TSR
condition will vest in March 2024. Consequently, a total of
86,300 rights will vest and convert into Capral shares on a
1 for 1 basis as at 1 March 2024.
102,670 performance rights were granted to the Managing
Director in April 2020 following shareholder approval.
None of 102,670 rights lapsed and a total of 102,670
rights vested and converted into Capral shares on a 1 for 1
basis, as at 1 March 2023.
TRANCHE GRANT NO.
GRANT
DATE
FAIR VALUE PER RIGHT
AT GRANT DATE ($)
TEST DATE
LAPSED
NO.
VESTED
NO.
2023 Offer
A. Dragicevich
Total 2023 Offer
2022 Offer
A. Dragicevich
Total 2022 Offer
2021 Offer
A. Dragicevich
Total 2021 Offer
2020 Offer
A. Dragicevich
Total 2020 Offer
EPS 50%
TSR 50%
EPS 50%
TSR 50%
EPS 50%
TSR 50%
22,200
22,200
44,400
24,500
24,500
49,000
43,150
43,150
86,300
27/04/2023
27/04/2022
28/04/2021
29/04/2020
EPS 50%
TSR 50%
51,335
51,335
102,670
$5.94 31/12/2025
$4.25 31/12/2025
$7.77 31/12/2024
$5.82 31/12/2024
$6.43 31/12/2023
$5.17 31/12/2023
$1.56 31/12/2022
$2.04 31/12/2022
-
-
-
-
-
-
-
-
-
-
-
-
-
-
51,335
51,335
- 102,670
34
Annual Report 2023 — Capral Limited
Renumeration Report (Audited)
Performance rights - other key management personnel and executives
During the Financial Year and the financial year ended 31
rights have been forfeited. The EPS condition (79,850 rights)
December 2022, performance rights were granted as equity
was tested as at 31 December 2023. Capral achieved the
compensation benefits under the LTIP, to certain executives
EPS condition and consequently 79,850 of these rights will
including key management personnel as disclosed as at
vest in March 2024. The TSR condition (79,850 rights) was
balance date below. The performance rights were granted
also tested as at 31 December 2023. Capral’s relative TSR
at no cost to the participants.
performance over the period from January 2021 to
141,100 performance rights were granted under the 2023
LTIP award to executives in March 2023. These rights have
a vesting date of March 2026.
139,000 performance rights were granted under the 2022
LTIP award to executives in March 2022. 13,500 of these
performance rights have been forfeited. These rights have
a vesting date of March 2025.
164,700 performance rights were granted under the 2021
LTIP award to executives in March 2021. These rights have
December 2023 at 121.4% (2022: 161.4%) was in the 91st
percentile (2022: 92nd) and thus 100% of the rights subject
to the TSR condition will vest in March 2024. Consequently,
a total of 79,850 rights will vest and convert into Capral
shares on a 1 for 1 basis as at 1 March 2024.
180,650 performance rights were granted under the 2020
LTIP award to executives in March 2020. 5,000 of these
performance rights have been forfeited. None of 175,650
rights lapsed and a total of 175,650 rights vested and
converted into Capral shares on a 1 for 1 basis, as at 1
a vesting date of March 2024. 5,000 of these performance
March 2023.
TRANCHE GRANT NO.
GRANT
DATE
FAIR VALUE PER RIGHT
AT GRANT DATE ($)
TEST DATE
LAPSED
NO.
VESTED
NO.
2023 Offer
T. Campbell
Total 2023 Offer
2022 Offer
T. Campbell
Total 2022 Offer
2021 Offer
T. Campbell
Total 2021 Offer
2020 Offer
T. Campbell
Total 2020 Offer
16,600 06/03/2023
EPS 50%
TSR 50%
8,300
8,300
16,600
17,500 08/03/2022
EPS 50%
TSR 50%
8,750
8,750
17,500
25,700 03/03/2021
EPS 50%
TSR 50%
12,850
12,850
25,700
30,670 03/03/2020
EPS 50%
TSR 50%
15,335
15,335
30,670
$6.16 31/12/2025
$4.73 31/12/2025
$6.78 31/12/2024
$4.91 31/12/2024
$5.49 31/12/2023
$4.18 31/12/2023
$2.82 31/12/2022
$2.10 31/12/2022
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15,335
15,335
30,670
Capral Limited — Annual Report 2023
35
Renumeration Report (Audited)
Options
No options were issued under the LTIP during the Financial Year and the financial year ended 31 December 2022.
Equity grants during the Financial Year
Details of the performance rights granted, as well as the movement during the Financial Year in rights previously granted,
to Key Management Personnel are as follows:
HELD AT START
OF YEAR
GRANTED AS
COMPENSATION LAPSED
VESTED
OTHER
CHANGES
HELD AT END
OF YEAR
A. Dragicevich
T Campbell
237,970
73,870
311,840
44,400
16,600
61,000
-
-
-
(102,670)
(30,670)
(133,340)
-
-
-
179,700
59,800
239,500
The non-executive directors hold no performance rights.
Bonuses
During the Financial Year and the financial year ended 31 December 2022, STIP bonus payments were made to the
Managing Director and key management personnel. The Managing Director’s STIP payments for 2023 and 2022 equated to
53% and 50% (respectively) of his TEC (above the Capral Trading EBITDA2 ‘target’ level detailed in section 1 above) and the
Board considers it appropriate having regard to the achievement of certain key financial measures as well as critical
non-financial measures regarding customers, capital projects, anti-dumping activities and other strategic plans. The other
key management personnel’s STIP payments were 38% and 34% of TEC for 2023 and 2022 respectively (above the Capral
Trading EBITDA2 ‘target’ level detailed in section 1 above).
The percentages of bonus accrued and forfeited (as a result of not meeting the performance criteria at ‘target’ level) during
the Financial Year and the financial year ended 31 December 2022 are disclosed below:
% OF BONUS ACCRUED
% OF BONUS FORFEITED
% OF COMPENSATION FOR
THE YEAR CONSISTING OF
STIP BONUS1
2023
Executives
A. Dragicevich
T. Campbell
2022
Executives
A. Dragicevich
T. Campbell
Note:
124
123
115
114
-
-
-
-
39
27
36
22
1 Total compensation used for calculating % purposes excludes equity compensation benefits under the LTIP and termination
benefits.
2 Trading EBITDA (non-IFRS measure) is EBITDA adjusted for items assessed as unrelated to the underlying performance of the
business and allows for a more relevant comparison between financial periods.
3 Bonuses relating to a financial year are payable in the following financial year.
36
Annual Report 2023 — Capral Limited
Shareholdings of Key Management Personnel -
fully paid ordinary shares of the Company
Details of the holdings of Capral’s ordinary shares of key management personnel during the Financial Year are as follows:
Renumeration Report (Audited)
HELD AT START
OF YEAR
GRANTED AS
COMPENSATION
RECEIVED ON
VESTING OF
PERFORMANCE
RIGHTS/ EXERCISE OF
OPTIONS
OTHER
CHANGES
DURING THE
YEAR
HELD AT END
OF YEAR
-
546,041
-
-
-
59,970
606,011
-
3,3381
-
-
-
9201
4,258
-
-
-
102,6702
(85,255)3
566,794
-
-
-
-
-
-
-
-
-
30,6702
(20,000)3
71,560
133,340
(105,255)
638,354
Directors
R.L. Wood-Ward
A.M. Dragicevich
K. Ostin
G.F. Pettigrew
M. White
Executives
T. Campbell
1 Deferred equity acquisition as part of 2022 STIP plan.
2 Acquired on vesting of performance rights in March 2023.
3 Acquired through DRP and selling.
Capral Limited — Annual Report 2023
37
Renumeration Report (Audited)
Section 4: Relationship between remuneration and company performance
There is a link between company performance and executive reward. For the Financial Year and the previous 4 financial
years, Capral has made STIP payments based upon the achievement of performance (financial and non-financial) measures.
Whilst continuing to ensure that Capral attracts and retains qualified, experienced, and motivated employees in accordance
with the remuneration policy by remunerating employees at a competitive level, Capral has placed more emphasis on
at-risk remuneration in order to align remuneration of the employees to the performance of Capral and encourage
shareholder wealth.
During the Financial Year and the previous 4 financial years (2019-2022), Capral's financial performance objectives were as
follows, with the minimum targets (M) that were set for the 2023 STIP financial measures also shown:
YEAR ENDED 31 DEC
Trading EBITDA $’0001
Free Cash Flow $’0001
Net (Loss)/Profit $’000
2023 (A)
2023 (M)
2022 (A)
2021 (A)
2020 (A)
2019 (A)
42,299
32,700
43,305
38,157
19,668
11,021
52,431
38,200
(16,376)
17,229
20,7524
4755
31,839
25,400
32,3872
33,3133
11,4644
3,1055
% Working Capital to Annualised Sales
15.8
16.0
13.1
10.7
13.2
14.7
Underlying Earnings / (Loss) - cents per share
183.43
141.59
195.902
179.703
69.514
19.265
Note:
Any JobKeeper related benefit received in 2020 have been excluded in full
1 Trading EBITDA (non-IFRS measure as explained in footnote to Chairman’s Report on Page 6) is Statutory EBITDA adjusted for
items assessed as unrelated to the underlying performance of the business and allows for a more relevant comparison between
financial periods. Free Cash Flow is Net cash provided by operating activities reduced by net cash flows used in investing
activities and lease liability payments.
2 Net Profit and Underlying Earnings per share adjusted to exclude Deferred Tax Benefit of $8.365 million.
3 Net Profit and Underlying Earnings per share adjusted to exclude Deferred Tax Benefit of $9.430 million, property revaluation
$3.074 million.
4 Free Cash Flow, Net Profit and Basic Earnings per share adjusted to exclude Deferred Tax Benefit of $3.048 million and other
one-off items of $0.499 million.
5 Free Cash Flow, Net Profit and Basic Earnings per share adjusted to exclude Restructuring Cost and other one-off items of
$7.345 million.
In the Financial Year, Capral’s Trading EBITDA and Net Profit after tax was lower than 2022. The minimum targets were
surpassed in all instances. As a result, proportional STIP will be payable to Capral key management and other senior
personnel. Discretionary Bonuses will also be payable to other qualifying employees. At a Divisional and Regional level
minimum Trading EBITDA measures were achieved in all business units, and there were mixed results relating to Working
Capital and sales volume measures.
38
Annual Report 2023 — Capral Limited
Renumeration Report (Audited)
The following provides examples of other key measures (that are not commercially sensitive) used to assess
executive performance:
PERFORMANCE AREA
MEASURE
OUTCOME
Safety
Reduction in total reportable injury
Rate improved significantly and Group stretch targets
frequency rate
were almost met
Hours lost & return to work hours
Minimum target was not achieved.
lost from injuries
Customers
Volume retention/ growth
Sales areas met some of the specific growth and
revenue targets as well as margin measures.
Performance varied by region/ division
Production
Operational efficiency
Manufacturing plants met some of their operational
efficiency/ improvement targets. Performance varied
by plant.
Supply Chain
Supply chain and inventory reduction
Initiatives were generally achieved
programmes
People
AL & LSL excess balance reduction
Overall excess leave balance reduction initiatives were
achieved. Performance varied by region/ division
Anti-dumping
Pursue anti-dumping campaign
Overall, the outcomes were successful.
Costs
Cost reduction initiatives
Many of the specific cost and expense reduction
initiatives were achieved. Performance varied by
region/ division
STIP accruals in respect of the 2023 year are higher than the prior year actual payout, aligned to financial performance.
There is a clear link between financial performance and the level of STIP awarded.
LTIP is linked to Capral’s performance as the value of the performance rights awarded depends on Capral’s share price and
dividend payments, and whether the awards vest relate to earnings growth and Capral’s relative TSR performance. There is
a link between Capral’s performance and the vesting of rights under LTIP awards. In this regard:
In 2023:
In 2022:
• Capral’s relative TSR performance over the period from
• Capral’s relative TSR performance over the period from
January 2021 to December 2023 achieved the 91st
January 2020 to December 2022 achieved the 93rd
percentile, above the maximum 75th percentile.
percentile, above the maximum 75th percentile.
Consequently, 100% or 123,000 of the rights subject to
Consequently, 100% or 141,660 of the rights subject to
the TSR condition that were awarded in 2021 to
the TSR condition that were awarded in 2020 to
executives will vest and convert to Capral shares.
executives will vest and convert to Capral shares.
• Given earnings in, 2021, 2022 and 2023, the aggregate
• Given earnings in, 2020, 2021 and 2022, the aggregate
EPS result for the 3-year period to 2023 was 557.4 cents
EPS result for the 3-year period to 2022 was 449.5 cents
per share against an aggregate target of 362.4 cents per
per share against an aggregate target of 263.4 cents per
share and therefore the EPS condition of the 2021 award
share and therefore the EPS condition of the 2020 award
was achieved. Consequently, 100% oR 123,000 of the
was achieved. Consequently, 100% or 141,660 of the
rights subject to the EPS condition of the 2021 award
rights subject to the EPS condition of the 2020 award
will vest and convert into Capral shares.
will vest and convert into Capral shares.
Capral Limited — Annual Report 2023
39
Renumeration Report (Audited)
Section 5: Summary of Key Employment Contracts
Details of the key contract terms for the Managing Director and other key management personnel as at the end of the
Financial Year are as follows:
CONTRACT DETAILS
A. DRAGICEVICH
T. CAMPBELL
Expiry date
No fixed end date
No fixed end date
Notice of termination by Capral
6 months
Notice of termination by employee
6 months
6 months
6 months
Termination payments (in lieu of notice)
6 months salary plus accrued but
6 months salary. STIP entitlement
unpaid STIP (pro rata for
for incomplete financial years is
incomplete financial year).
subject to Board discretion.
In addition, on retirement or if
In addition, on retirement or if
employment is terminated by
employment is terminated by Capral
Capral other than for cause,
other than for cause, unvested LTIP
unvested LTIP rights may remain
rights may remain in play on a pro
in play on a pro rata basis.
rata basis.
6 weeks annual leave per annum.
Environmental regulations
Indemnities to auditors
Manufacturing licences and consents required by laws
In respect of non-audit services provided in relation to tax
and regulations are held by the consolidated entity at each
consulting and tax compliance advice during the Financial
relevant site as advised by consulting with relevant
Year, Deloitte Touche Tohmatsu, Capral's auditor, has the
environmental authorities. All applications for and
benefit of an indemnity (including in respect of legal costs)
renewals of licences have been granted and all consents
for any third party claim in connection with the use,
have been given by all relevant authorities.
distribution or reliance on their work (except to the extent
Directors' and officers' indemnities
and insurance
Under Capral's constitution, Capral is required to
indemnify, to the extent permitted by law, each director
caused by the wilful misconduct or fraud of Deloitte Touche
Tohmatsu, or where it has agreed that the third party may
rely on the work or it may be used in a public document).
Proceedings on behalf of Capral
and secretary of Capral against any liability incurred by
No person has applied to the Court under section 237 of
that person as an officer of Capral. The directors listed on
the Corporations Act for leave to bring proceedings on
pages 12 to 13 and the secretary listed on page 22 have
behalf of Capral, or to intervene in any proceedings to
the benefit of this indemnity. During the Financial Year,
which Capral is party, for the purpose of taking
Capral paid a premium for directors’ and officers’ liability
responsibility on behalf of Capral for all or part of those
insurance policies which cover current and former
proceedings. No proceedings have been brought or
directors, company secretaries and officers of the
intervened in on behalf of Capral with leave of the Court
consolidated entity. Details of the nature of the liabilities
under section 237 of the Corporations Act.
covered and the amount of the premium paid in respect of
the directors' and officers' insurance policies are not
disclosed, as such disclosure is prohibited under the terms
of the contracts.
40
Annual Report 2023 — Capral Limited
Non-audit services
Auditor's independence declaration
Capral may decide to employ the auditor on assignments
The auditors' independence declaration as required under
additional to their statutory audit services where the
section 307C of the Corporations Act is set out on page 42.
Director’s Report
auditor's expertise and experience with the consolidated
entity are important.
The Board has considered this position and in accordance
with the advice received from the Audit & Risk Committee,
it is satisfied that the provision of these services during
the Financial Year by the auditor is compatible with, and
did not compromise, the general standard of auditor
independence imposed by the Corporations Act for the
following reasons:
1) the non-audit services provided do not involve
reviewing or auditing the auditor’s own work and
have not involved partners or staff acting in a
management or decision-making capacity for Capral
or in the processing or originating of transactions;
2) all non-audit services and the related fees have been
reviewed by the Audit & Risk Committee to ensure
complete transparency and that they do not affect
the integrity and objectivity of Deloitte Touche
Tohmatsu; and
3) the declaration required by section 307C of the
Rounding of amounts
Capral is a company of the kind referred to in ASIC
Corporations Instrument 2016/191, dated 24 March 2016,
and in accordance with that ASIC Corporations Instrument
amounts in the Directors' Report and the Financial Report
are rounded off to the nearest thousand dollars, unless
otherwise indicated.
Signed in accordance with a resolution of directors made
pursuant to section 298(2) of the Corporations Act 2001.
On behalf of the directors
R. L. Wood-Ward
Chairman
Sydney
A. M. Dragicevich
Managing Director
Corporations Act 2001 confirming independence has
23 February 2024
been received from Deloitte Touche Tohmatsu.
Details of the amounts paid or payable to Capral's auditor
(Deloitte Touche Tohmatsu) for audit and non-audit
services provided during the Financial Year are set out in
Note 33 of the financial statements.
Capral Limited — Annual Report 2023
41
Auditor's Independence Declaration
Deloi�e Touche Tohmatsu
ABN 74 490 121 060
8 Parrama�a Square
10 Darcy Street
Parrama�a, NSW, 2150
Australia
Phone: +61 2 9840 7000
www.deloi�e.com.au
The Board of Directors
Capral Limited
15 Hun�ngwood Drive
Hun�ngwood NSW 2148
23 February 2024
Dear Board Members,
Auditor’s Independence Declaration to Capral Limited
In accordance with sec�on 307C of the Corpora�ons Act 2001, I am pleased to provide the following
declara�on of independence to the directors of Capral Limited.
As lead audit partner for the audit of the financial report of Capral Limited for the year ended 31 December
2023, I declare that to the best of my knowledge and belief, the only contraven�ons of:
(cid:31)
(cid:31)
The auditor independence requirements of the Corpora�ons Act 2001 in rela�on to the audit; and
Any applicable code of professional conduct in rela�on to the audit.
Yours faithfully
DELOITTE TOUCHE TOHMATSU
X Delaney
Partner
Chartered Accountants
Liability limited by a scheme approved under Professional Standards Legisla�on.
Member of Deloi�e Asia Pacific Limited and the Deloi�e organisa�on.
42
Annual Report 2023 — Capral Limited
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
for the financial year ended 31 December 2023
CONTINUING OPERATIONS
NOTE
Sales revenue
Scrap and other revenue
Revenue
Other income
Raw materials and consumables used
Employee benefits expense
Depreciation and amortisation expense
Finance costs
Freight expense
Occupancy costs
Repairs and maintenance expense
Other expenses
Profit before tax
Income tax benefit
Profit for the year
3
3
2
2
2
2
2
4
2023
$’000
614,844
42,015
656,859
4,333
(423,216)
(109,066)
(23,009)
(6,682)
(17,065)
(5,966)
(7,894)
(36,455)
31,839
-
31,839
Other comprehensive income Items that will not be reclassified subsequently to profit or loss
Gain on revaluation of properties
Other comprehensive income for the year
-
-
2022
$’000
643,284
49,222
692,506
3,446
(468,730)
(103,922)
(21,318)
(6,319)
(16,296)
(4,969)
(7,076)
(34,934)
32,388
8,365
40,753
-
-
Total comprehensive income for the year
31,839
40,753
EARNINGS PER SHARE
Basic earnings per share
Diluted earnings per share
NOTE
26
26
($ PER SHARE)
($ PER SHARE)
1.77
1.71
2.31
2.22
The above consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
Capral Limited — Annual Report 2023
43
Consolidated Statement of Financial Position
as at 31 December 2023
Assets
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other financial assets
Prepayments
Total current assets
Non-current Assets
Deferred tax assets
Property, plant and equipment
Right-of-use assets
Other intangible assets
Goodwill
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Lease liabilities
Provisions
Borrowings
Other financial liabilities
Deferred income
Total current liabilities
Non-current liabilities
Lease liabilities
Provisions
Total non-current liabilities
Total Liabilities
Net assets
Equity
Issued capital
Reserves
Accumulated losses
Total equity
NOTE
7
8
9
31 (c)
10
11
14
17
15
16
19
20
21
27 (b)
31 (c)
22
20
21
23
24
24 (b)
2023
$’000
59,457
89,313
126,150
11
2,711
277,642
23,700
57,518
62,710
560
3,070
147,558
425,200
106,973
15,558
14,920
-
2,016
162
2022
$’000
48,988
91,326
154,877
11
848
296,050
23,700
56,644
66,651
649
3,070
150,714
446,764
112,735
16,158
17,901
24,083
828
153
139,629
171,858
73,255
7,584
80,839
220,468
204,732
424,771
114,947
(334,986)
77,874
7,306
85,180
257,038
189,726
433,433
91,279
(334,986)
204,732
189,726
The above consolidated statement of financial position should be read in conjunction with the accompanying notes.
44
Annual Report 2023 — Capral Limited
Consolidated Statement of Cash Flows
as at 31 December 2023
NOTE
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Interest and other costs of finance paid
Net cash provided by operating activities
35(ii)
Cash flows from investing activities
Payments for property, plant and equipment
Payments for intangible assets
Interest received
Net cash flows used in investing activities
Cash flows from financing activities
Payments of dividends
Proceeds from dividend reinvestment plan
Payments for share purchase – employee share plan
25
24
Payments for on-market share buy-back
Proceeds in relation to employee share plan
Proceeds from borrowings (Trade loans)
Repayment of borrowings (Trade loans)
Payment of lease liabilities excluding financing component
35(iv)
Net cash flows (used in)/provided by financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effect of foreign exchange rate changes
Cash and cash equivalents at the end of the financial year
35(i)
2023
$’000
728,436
(646,970)
81,466
(6,425)
75,041
(8,684)
(86)
805
(7,965)
(12,494)
-
(2,332)
(3,145)
92
36,563
(60,646)
(15,817)
(57,779)
9,297
48,988
1,172
59,457
The above consolidated statement of cash flows should be read in conjunction with the accompanying notes.
2022
$’000
770,509
(757,098)
13,411
(6,349)
7,062
(9,790)
(170)
125
(9,835)
(12,166)
2,604
-
-
428
80,820
(56,737)
(14,548)
401
(2,372)
50,132
1,228
48,988
Capral Limited — Annual Report 2023
45
Consolidated Statement Of Changes in Equity
as at 31 December 2023
CONTINUING OPERATIONS
NOTE
FULLY PAID ORDINARY
SHARES
EQUITY-SETTLED
COMPENSATION RESERVE
EMPLOYEE SHARE
ASSET REVALUATION
RESERVE
RESERVE
DIVIDEND
RESERVE*
SHARE BUY-BACK
ACCUMULATED
RESERVE#
LOSSES
TOTAL
Balance as at 1 January 2022
Profit for the year
Total comprehensive profit for the year
Share-based payments expense
Shares issued - dividend reinvestment plan
Shares issued – employee escrow shares
Employees escrow shares utilised
Dividends paid
25
$’000
430,588
-
-
-
2,604
241
-
-
$’000
11,909
-
-
982
-
-
-
-
Balance as at 31 December 2022
433,433
12,891
(334,986)
189,726
Balance as at 1 January 2023
Profit for the year
Total comprehensive profit for the year
Share-based payments expense
Shares cancelled – on-market buy-back
23, 24
Shares issued - employee escrow shares
Employees shares on-market purchase
Employees shares off-market purchase
Dividends paid
24
24
25
433,433
-
-
-
(8,705)
43
-
-
-
12,891
-
-
1,045
-
-
-
-
-
Balance as at 31 December 2023
424,771
13,936
(2,320)
4,088
5,560
(334,986)
204,732
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
$’000
(225)
-
187
(38)
(38)
-
-
-
-
-
-
-
-
-
-
-
(1,970)
(312)
$’000
4,088
-
4,088
4,088
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$’000
54,116
32,388
32,388
(12,166)
74,338
74,338
31,839
31,839
-
-
-
-
-
-
-
-
-
(12,494)
93,683
$’000
$’000
$’000
(343,351)
157,125
8,365^
40,753
8,365^
40,753
-
-
-
-
-
-
-
-
-
-
-
-
-
-
5,560
-
(334,986)
189,726
-
-
-
-
-
-
-
-
-
-
-
-^
-^
982
2,604
241
187
(12,166)
31,839
31,839
1,045
(3,145)
43
(1,970)
(312)
(12,494)
* Dividend reserve represents undistributed profits since the financial year 2010. Current period profit has
been transferred to a dividend reserve account. Interim and final dividends are declared and sourced from
current year profits.
^ Income tax benefit (2023: $nil; 2022: $8.365 million) in relation to deferred tax assets on tax losses and
temporary differences are excluded from dividend reserve.
# Refer to Notes 23 and 24.
46
Annual Report 2023 — Capral Limited
CONTINUING OPERATIONS
FULLY PAID ORDINARY
EQUITY-SETTLED
NOTE
SHARES
COMPENSATION RESERVE
EMPLOYEE SHARE
RESERVE
ASSET REVALUATION
RESERVE
DIVIDEND
RESERVE*
SHARE BUY-BACK
RESERVE#
ACCUMULATED
LOSSES
Balance as at 1 January 2022
Profit for the year
Total comprehensive profit for the year
Share-based payments expense
Shares issued - dividend reinvestment plan
Shares issued – employee escrow shares
Employees escrow shares utilised
$’000
430,588
2,604
241
-
-
-
-
-
-
-
-
-
-
-
$’000
11,909
982
-
-
-
-
-
-
-
-
-
-
-
-
-
Dividends paid
25
Balance as at 31 December 2022
433,433
12,891
Balance as at 1 January 2023
Profit for the year
Total comprehensive profit for the year
Share-based payments expense
Shares cancelled – on-market buy-back
23, 24
Shares issued - employee escrow shares
Employees shares on-market purchase
Employees shares off-market purchase
Dividends paid
24
24
25
433,433
12,891
1,045
(8,705)
43
Balance as at 31 December 2023
424,771
13,936
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
$’000
(225)
$’000
4,088
-
-
-
-
-
187
-
(38)
(38)
-
-
-
-
-
(1,970)
(312)
-
(2,320)
-
-
-
-
-
-
-
4,088
4,088
-
-
-
-
-
-
-
-
4,088
$’000
54,116
32,388
32,388
-
-
-
-
(12,166)
74,338
74,338
31,839
31,839
-
-
-
-
-
(12,494)
93,683
$’000
$’000
TOTAL
$’000
-
-
-
-
-
-
-
-
-
-
-
5,560
-
-
-
-
(343,351)
157,125
8,365^
40,753
8,365^
40,753
-
-
-
-
-
982
2,604
241
187
(12,166)
(334,986)
189,726
(334,986)
189,726
-^
-^
-
-
-
-
-
-
31,839
31,839
1,045
(3,145)
43
(1,970)
(312)
(12,494)
5,560
(334,986)
204,732
Capral Limited — Annual Report 2023
47
Notes to the
Financial Statements
for the financial year ended 31 December 2023
1a. General Information
1c. Significant accounting policies
Capral Limited (the Company) is a public listed company
Statement of Compliance
incorporated and operating in Australia. The Company’s
shares are quoted on the Australian Securities Exchange
(ASX Code: CAA).
The financial report is a general purpose financial report
which has been prepared in accordance with the
Corporations Act 2001, Accounting Standards and
The Company’s registered office and its principal place of
Interpretations, and complies with other requirements of
business is as follows:
the law.
Registered office & principal place of business
71 Ashburn Road
Bundamba
QLD 4304
Tel: (07) 3816 7000
The principal continuing activities of the consolidated
entity consist of the manufacturing, marketing and
distribution of fabricated and semi-fabricated aluminium
related products.
1b. Adoption of new and revised
Accounting Standards
The Group has adopted all of the new and revised
Standards and Interpretations issued by the Australian
Accounting Standards Board (the AASB) that are relevant
to its operations and effective for an accounting period
that begins on or after 1 January 2023.
Accounting Standard in issue but not yet effective:
Certain Australian Accounting Standards and
amendments to standards have been published that are
not mandatory for reporting period commencing 1
January 2023 and 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.
The financial report includes the financial statements of
the Company and the financial statements of the Group.
For the purpose of preparing the consolidated financial
statements, the Company is a for-profit entity.
Accounting Standards include Australian equivalents to
International Financial Reporting Standards (‘A-IFRS’).
Compliance with A-IFRS ensures that the financial
statements and notes of the Group comply with
International Financial Reporting Standards (‘IFRS’).
The financial statements were authorised for issue by the
directors on 23 February 2024.
Basis of Preparation
The financial report has been prepared on the basis of
historical cost, except for the revaluation of certain
non-current assets and financial instruments. Cost is
based on the fair values of the consideration given in
exchange for assets. All amounts are presented in
Australian dollars, unless otherwise noted.
The Company is of a kind referred to in ASIC
Corporations Instrument 2016/191, dated 24 March
2016, issued by the Australian Securities and Investments
Commission, relating to the “rounding off” of amounts in
the financial report. Amounts in the financial report have
been rounded off in accordance with that ASIC
Corporations Instrument to the nearest thousand dollars,
or in certain cases, the nearest dollar as indicated.
The following significant accounting policies have been
adopted in the preparation and presentation of the
financial report:
48
Annual Report 2023 — Capral Limited
Notes to the Financial Statements
1c. Significant accounting policies continued
(a) Basis of Consolidation
The financial statements incorporate the financial
statements of the Company and entities (including special
purpose entities) controlled by the Company (and its
subsidiaries) (referred to as ‘the Group’ in these financial
statements).
Control is based on whether an investor has:
• power over the investee
Where applicable, the consideration for the acquisition
includes any asset or liability resulting from a contingent
consideration arrangement, measured at its acquisition-
date fair value. Subsequent changes in such fair values
are adjusted against the cost of acquisition where they
qualify as measurement period adjustments (see below).
All other subsequent changes in the fair value of
contingent consideration classified as an asset or liability
are accounted for in accordance with relevant Standards.
Changes in the fair value of contingent consideration
• exposure, or rights, to variable returns from its
classified as equity are not recognised.
involvement with the investee, and
•
the ability to use its power over the investee to affect
the amount of the returns.
The acquiree’s identifiable assets, liabilities and contingent
liabilities that meet the conditions for recognition under
AASB 3 are recognised at their fair value at the acquisition
The results of the subsidiaries acquired or disposed of
date, except that:
during the year are included in the consolidated statement
of profit or loss and other comprehensive income from the
effective date of acquisition or up to the effective date of
disposal, as appropriate.
• deferred tax assets or liabilities and liabilities or
assets related to employee benefit arrangements are
recognised and measured in accordance with AASB
112 Income Taxes and AASB 119 Employee Benefits
Where necessary, adjustments are made to the financial
respectively;
statements of subsidiaries to bring their accounting
•
liabilities or equity instruments related to the
policies into line with those used by other members of the
replacement by the Group of an acquiree’s share
Group. All intra-group transactions, balances, income and
based payment awards are measured in accordance
expenses are eliminated in full on consolidation.
with AASB 2 Share-based Payment; and
• assets (or disposal groups) that are classified as
held for sale in accordance with AASB 5 Non-Current
Assets Held for Sale and Discontinued Operations
are measured in accordance with that Standard.
(d) Cash and Cash Equivalents
Cash comprises cash on hand and demand deposits.
Cash equivalents are short-term, highly liquid investments
that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of change in
value and have a maturity of three months or less at the
date of acquisition. Bank overdrafts are shown within
borrowings in current liabilities in the statement of
financial position.
(b) Borrowing Costs
Borrowing costs directly attributable to the acquisition,
construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to
get ready for their intended use or sale, are added to the
cost of those assets, until such time as the assets are
substantially ready for their intended use or sale.
Investment income earned on the temporary investment
of specific borrowings pending their expenditure on
qualifying assets is deducted from the borrowing costs
eligible for capitalisation. All other borrowing costs are
recognised in profit or loss in the period in which they are
incurred.
(c)
Business Combinations
Acquisitions of subsidiaries and businesses are accounted
for using the acquisition method. The consideration for
each acquisition is measured at the aggregate of the fair
values (at the date of exchange) of assets given, liabilities
incurred or assumed, and equity instruments issued by the
Group in exchange for control of the acquiree. Acquisition-
related costs are recognised in profit or loss as incurred.
Capral Limited — Annual Report 2023
49
Notes to the Financial Statements
1c. Significant accounting policies continued
(e) Derivative Financial Instruments
(f) Employee Benefits
The Group enters into a variety of derivative financial
instruments to manage its exposure to interest rate and
foreign exchange rate risk, including foreign exchange
forward contracts.
(i)
Salaries, wages and leave benefits
A liability is recognised for benefits accruing to
employees in respect of wages and salaries,
including non-monetary benefits, annual leave and
Further details of derivative financial instruments are
long service leave, when it is probable that
disclosed in Note 31 to the financial statements.
settlement will be required, and they are capable of
Derivatives are initially recognised at fair value at the date
being measured reliably. Liabilities recognised in
a derivative contract is entered into and are subsequently
respect of short-term employee benefits are
remeasured to their fair value at each reporting date.
measured at their nominal values using the
The resulting gain or loss is recognised in profit or loss
immediately unless the derivative is designated and
effective as a hedging instrument, in which event the
timing of the recognition of profit or loss depends on the
nature of the hedge relationship. The fair value of hedging
derivatives is classified as a non-current asset or a
non-current liability if the remaining maturity of the hedge
relationship is more than 12 months, and as a current
asset or current liability if the remaining maturity of the
hedge relationship is less than 12 months. The Group’s
derivatives do not qualify for hedge accounting and are
not designated into an effective hedge relationship and
are classified as a current asset and current liability.
Embedded Derivatives
Derivatives embedded in hybrid contracts with hosts that
are not financial assets within the scope of AASB 9 (e.g.
financial liabilities) are treated as separate derivatives
when they meet the definition of a derivative, their risks
and characteristics are not closely related to those of the
host contracts and the host contracts are not measured
at FVTPL.
remuneration rate expected to apply at the time of
settlement. Liabilities recognised in respect of
long-term employee benefits are measured at the
present value of the estimated future cash outflows
to be made by the Group in respect of services
provided by employees up to reporting date.
(ii) Share-based payments
Equity-settled share-based payments with
employees are measured at the fair value of the
equity instrument at the grant date.
The fair value of the performance rights is estimated
at grant date using a Monte-Carlo Simulation
analysis taking into account the terms and
conditions upon which the securities are granted.
The fair value of the options is estimated at grant
date using a binomial tree model taking into account
the terms and conditions upon which the securities
are granted.
The expected life used in the model has been
adjusted, based on management’s best estimate, for
the effects of non-transferability, exercise
restrictions, and behavioural considerations.
The fair value determined at the grant date of the
equity-settled share-based payments is expensed on
a straight-line basis over the vesting period, based
on the Group’s estimate of shares that will eventually
vest.
Further details on how the fair value of equity-settled
share-based transactions have been determined can
be found in Note 37.
(iii) Defined contribution plan
Contributions to defined contribution
superannuation plans are expensed when incurred.
50
Annual Report 2023 — Capral Limited
Notes to the Financial Statements
1c. Significant accounting policies continued
(g) Financial Assets
Impairment of financial assets
Investments are recognised and derecognised on trade
date where the purchase or sale of an investment is under
a contract whose terms require delivery of the investment
within the timeframe established by the market concerned,
and are initially measured at fair value, net of transaction
costs except for those financial assets classified as at fair
value through the profit or loss which are initially measured
at fair value. Subsequent to initial recognition, investments
in subsidiaries are measured at cost in the Company’s
financial statements. Other financial assets are classified
into the following specified categories: financial assets at
amortised cost; financial assets at fair value through other
comprehensive income and financial assets at fair value
through profit or loss account. The classification depends
on the nature and purpose of the financial assets and is
determined at the time of initial recognition.
Effective interest method
The effective interest method is a method of calculating
the amortised cost of a financial asset and of allocating
interest income over the relevant period. The effective
interest rate is the rate that exactly discounts estimated
future cash receipts through the expected life of the
financial asset, or, where appropriate, a shorter period.
Income is recognised on an effective interest rate basis for
debt instruments other than financial assets ‘at fair value
through profit or loss’.
Impairment of financial assets is based on an expected
credit loss (“ECL”) model under AASB 9 rather than incurred
loss model. ECLs are a probability-weighted estimate of
credit losses. The group calculated ECLs based on
consideration of customer-specific factors and actual
credit loss experience over the past 3 years. As a
percentage of revenue, the Group’s actual credit loss
experience has not been material.
In accordance with AASB 9 paragraph 7.2.20 the group will
recognise a loss allowance at an amount equal to lifetime
expected credit losses at each reporting date. The group
calculated ECLs based on consideration of customer-
specific factors and actual credit loss experience over the
past 3 years. The credit loss includes consideration for the
COVID 19 impact.
For financial assets carried at amortised cost, the amount
of the impairment is the difference between the asset’s
carrying amount and the present value of estimated future
cash flows, discounted at the original effective interest rate.
The carrying amount of the financial asset is reduced by
the impairment loss directly for all financial assets with the
exception of trade receivables where the carrying amount
is reduced through the use of an allowance account. When
a trade receivable is uncollectible, it is written off against
the allowance account. Subsequent recoveries of amounts
previously written off are credited against the allowance
account. Changes in the carrying amount of the allowance
Financial assets at FVTPL are measured at fair value at the
account are recognised in profit or loss.
end of each reporting period, with any fair value gains or
losses recognised in profit or loss to the extent they are not
Derecognition of financial assets
part of a designated hedging relationship.
The net gain or loss recognised in profit or loss on the
financial assets is included in the other income or other
expenses. Fair value is determined in the manner described
in Note 31.
Trade and other receivables
Trade and other receivables that were measured at
amortised cost under AASB 139 continue to be measured
at amortised cost under AASB 9 as they are held within a
business model to collect contractual cash flows. Trade
and other receivables are measured at amortised cost
using the effective interest method less impairment.
Interest is recognised by applying the effective interest rate.
The Group derecognises a financial asset only when the
contractual rights to the cash flows from the asset expire,
or it transfers the financial asset and substantially all the
risks and rewards of ownership of the asset to another
entity. If the Group neither transfers nor retains
substantially all the risks and rewards of ownership and
continues to control the transferred asset, the Group
recognises its retained interest in the asset and an
associated liability for the amounts it may have to pay. If
the Group retains substantially all the risks and rewards of
ownership of a transferred financial asset, the Group
continues to recognise the financial asset and also
recognises a collateralised borrowing for the proceeds
received.
Capral Limited — Annual Report 2023
51
Notes to the Financial Statements
1c. Significant accounting policies continued
(h) Financial Instruments Issued by the Group
Other financial liabilities
Debt and equity instruments
Debt and equity instruments are classified as either
liabilities or as equity in accordance with the substance of
the contractual arrangement.
Compound instruments
The component parts of compound instruments are
classified separately as financial liabilities and equity in
accordance with the substance of the contractual
arrangement. At the date of issue, the fair value of the
liability component is estimated using the prevailing market
interest rate for a similar non-convertible instrument.
This amount is recorded as a liability on an amortised cost
basis until extinguished on conversion or upon the
instruments reaching maturity. The equity component
initially brought to account is determined by deducting the
amount of the liability component from the fair value of the
compound instrument as a whole. This is recognised and
included in equity, net of income tax effects and is not
subsequently remeasured.
Financial guarantee contract liabilities
Other financial liabilities, including borrowings, are initially
measured at fair value, net of transaction costs.
Other financial liabilities are subsequently measured at
amortised cost using the effective interest method, with
interest expense recognised on an effective yield basis.
Refer note 1c (o).
(i) Foreign Currency
In preparing the financial statements, transactions in
currencies other than the entity’s functional currency
(foreign currencies) are recorded at the rates of exchange
prevailing on the dates of the transactions. At each
balance date, monetary items denominated in foreign
currencies are retranslated at the rates prevailing at the
balance date. Non-monetary items carried at fair value
that are denominated in foreign currencies are
retranslated at the rates prevailing on the date when the
fair value was determined. Non-monetary items that are
measured in terms of historical cost in a foreign currency
are not retranslated.
Exchange differences are recognised in profit or loss in the
period in which they arise except for exchange differences
Financial guarantee contract liabilities are measured initially
which relate to assets under construction for future
at their fair values and subsequently at the higher of the
productive use, which are included in the cost of those
amount recognised as a provision and the amount initially
assets where they are regarded as an adjustment to
recognised less cumulative amortisation.
interest costs on foreign currency borrowings.
Financial liabilities
(j) Government Grant
Financial liabilities are classified as either financial liabilities
‘at fair value through profit or loss’ or other financial
liabilities.
Grants are recognised where there is a reasonable
assurance that the grant will be received and all attached
conditions will be complied with.
Financial liabilities at fair value through
profit or loss
Financial liabilities at fair value through profit or loss are
stated at fair value, with any resultant gain or loss
recognised in profit or loss. The net gain or loss recognised
in profit or loss incorporates any interest paid on the
financial liability. Fair value is determined in the manner
described in Note 31.
(k)
Impairment of Other Tangible and
Intangible Assets excluding goodwill
At each reporting date, the Group reviews the carrying
amounts of its tangible and intangible assets to determine
whether there is any indication that those assets have
suffered an impairment loss. If any such indication exists,
the recoverable amount of the asset is estimated in order
to determine the extent of the impairment loss (if any).
Where the asset does not generate cash flows that are
independent from other assets, the Group estimates the
recoverable amount of the cash-generating unit (CGU) to
which that asset belongs.
52
Annual Report 2023 — Capral Limited
Notes to the Financial Statements
1c. Significant accounting policies continued
Intangible assets with indefinite useful lives and intangible
carrying amounts in the financial statements of each
assets not yet available for use are tested for impairment at
member entity and the tax values applying under tax
least annually and whenever there is an indication that the
consolidation. Current tax liabilities and assets and
asset may be impaired. Recoverable amount is the higher of
deferred tax assets arising from unused tax losses and
fair value less costs to sell and value in use. In assessing
relevant tax credits arising from this allocation process are
value in use, the estimated future cash flows are discounted
then accounted for as immediately assumed by the head
to their present value using a post-tax discount rate that
entity, as under Australian taxation law the head entity has
reflects current market assessments of the time value of
the legal obligation (or right) to these amounts.
money and the risks specific to the asset for which the
estimates of future cash flows have not been adjusted. If the
(m) Intangible Assets
recoverable amount of an asset (or CGU) is estimated to be
less than its carrying amount, the carrying amount of the
asset (CGU) is reduced to its recoverable amount. An
impairment loss is recognised in profit or loss immediately,
unless the relevant asset is carried at fair value, in which case
the impairment loss is treated as a revaluation decrease.
Intangible assets acquired in a business combination are
identified and recognised separately from goodwill
where they satisfy the definition of an intangible asset and
their fair value can be measured reliably.
Where an impairment loss subsequently reverses, the
carrying amount of the asset (CGU) is increased to the
revised estimate of its recoverable amount, but only to the
extent that the increased carrying amount does not exceed
the carrying amount that would have been determined had
no impairment loss been recognised for the asset (CGU) in
SaaS arrangements
Configuration and customisation costs incurred in
implementing SaaS arrangements are recognised in profit
or loss as the customisation and configuration services are
performed, or, in certain circumstances, over the SaaS
contract term when access to the cloud application
prior years. A reversal of an impairment loss is recognised in
software is provided.
the profit or loss immediately, unless the relevant asset is
carried at fair value, in which case the reversal of the
Patents, trademarks and licences
impairment loss is treated as a revaluation increase.
Patents, trademarks and licences are recorded at cost less
(l)
Income Tax
The income tax expense or revenue for the period is the tax
accumulated amortisation and impairment. Amortisation is
charged on a straight-line basis over their estimated useful
lives, which vary from 5 to 16 years.
payable on the current period’s taxable income based on the
The estimated useful life and amortisation method is
national income tax rate for each jurisdiction adjusted by
reviewed at the end of each annual reporting period, with
changes in deferred tax assets and liabilities attributable to
any changes being recognised as a change in accounting
temporary differences between the tax bases of assets and
estimate.
liabilities and their carrying amounts in the financial
statements, and to unused tax losses.
Software
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.
Software assets including system development costs have
a finite useful life and are carried at cost less accumulated
amortisation and impairment losses. Amortisation is
calculated using the straight-line method to allocate the
cost over the assets estimated useful lives, which vary
The Company and its wholly owned Australian entities have
from 3 to 5 years.
implemented the tax consolidation legislation.
The current and deferred tax amounts for the tax-
consolidated group are allocated to the members of the
tax-consolidated group (including the Company as the head
entity) using the ‘separate taxpayer within group’ approach,
with deferred taxes being allocated by reference to the
Capral Limited — Annual Report 2023
53
Notes to the Financial Statements
1c. Significant accounting policies continued
1c. Significant accounting policies continued
(n)
Inventories
Inventories representing aluminium log, other supplies and
finished goods are valued at the lower of cost and net
realisable value.
Net realisable value represents the estimated selling price
less all estimated costs of completion and costs
necessary to make the sale.
The Group remeasures the lease liability (and makes a
corresponding adjustment to the related right-of-use
asset) whenever:
• The lease term has changed or there is a significant
event or change in circumstances resulting in a
change in the assessment of exercise of a purchase
option, in which case the lease liability is remeasured
by discounting the revised lease payments using a
Aluminium log is valued at moving average of direct
revised discount rate.
purchase cost. Cost of rolled product has been determined
• The lease payments change due to changes in an
principally on moving average of direct purchase costs.
Costs for finished and partly finished includes moving
average metal cost, direct labour, and appropriate
proportion of fixed and variable factory overhead.
(o) Leases
The Group assesses whether a contract is or contains a
lease, at inception of the contract. The Group recognises a
right-of-use asset and a corresponding lease liability with
respect to all lease arrangements in which it is the lessee,
except for short-term leases (defined as leases with a
lease term of 12 months or less) and leases of low value
assets (such as copiers). For these leases, the Group
recognises the lease payments as an operating expense
on a straight-line basis over the term of the lease unless
another systematic basis is more representative of the
time pattern in which economic benefits from the leased
assets are consumed.
The lease liability is initially measured at the present value
of the lease payments that are not paid at the
commencement date, discounted by using the rate implicit
in the lease. If this rate cannot be readily determined, the
Group uses its incremental borrowing rate.
Lease payments included in the measurement of the lease
liability comprise:
• Fixed lease payments (including in-substance fixed
payments), less any lease incentives receivable;
• Variable lease payments that depend on an index or
index or rate or a change in expected payment under
a guaranteed residual value, in which cases the lease
liability is remeasured by discounting the revised
lease payments using an unchanged discount rate
(unless the lease payments change is due to a
change in a floating interest rate, in which case a
revised discount rate is used).
• A lease contract is modified and the lease
modification is not accounted for as a separate
lease, in which case the lease liability is remeasured
based on the lease term of the modified lease by
discounting the revised lease payments using a
revised discount rate at the effective date of the
modification.
The right-of-use assets comprise the initial measurement
of the corresponding lease liability, lease payments made
at or before the commencement day, less any lease
incentivevess received and any initial direct costs. They
are subsequently measured at cost less accumulated
depreciation and impairment losses.
The depreciation starts at the commencement date of
the lease.
Rental income from operating leases is recognised on a
straight-line basis over the term of the relevant lease.
Initial direct costs incurred in negotiating and arranging an
operating lease are added to the carrying amount of the
leased asset and recognised on a straight-line basis over
the lease term.
rate, initially measured using the index or rate at the
Operating lease payments are recognised as an expense
commencement date; and
on a straight-line basis over the lease team, except where
• Payments of penalties for terminating the lease, if
another systematic basis is more representative of the
the lease term reflects the exercise of an option to
time pattern in which economic benefits from the leased
terminate the lease.
asset are consumed.
The lease liability is subsequently measured by increasing
In the event that lease incentives are received to enter into
the carrying amount to reflect interest on the lease liability
operating leases, such incentives are recognised as a
(using the effective interest method) and by reducing the
carrying amount to reflect the lease payments made.
liability. The aggregate benefits of incentives are
recognised as a reduction of rental expense on a
54
Annual Report 2023 — Capral Limited
Notes to the Financial Statements
1c. Significant accounting policies continued
straight-line basis, except where another systematic basis
Leasehold improvements are depreciated over the period
is more representative of the time pattern in which
of the lease or estimated useful life, whichever is shorter,
economic benefits from the leased asset are consumed.
using the straight-line method. The estimated useful lives,
(p) Property, Plant and Equipment
Land and buildings are measured at fair value less any
residual values and depreciation method are reviewed at
the end of each annual reporting period, with the effect of
any changes recognised on a prospective basis.
subsequent accumulated depreciation and subsequent
Right-of-use assets are depreciated over the shorter
accumulated impairment losses. Fair value is determined
period of lease term and useful life of the underlying asset.
on the basis of a periodic, independent valuation by
external valuation experts, based on discounted cash
flows or capitalisation of net income, as appropriate.
(q) Provisions
Provisions are recognised when the Group has a present,
Periodic reviews are conducted every three to five years.
legal or constructive obligation as a result of past events,
The fair values are recognised in the financial statements
it is probable that the Group will be required to settle the
of the Group and are reviewed at the end of each reporting
obligation, and a reliable estimate can be made of the
period to ensure that the carrying value of land and
amount of the obligation.
buildings is not materially different from their fair values.
Any revaluation increase arising on revaluation of land and
buildings are credited to the asset revaluation reserve
except to the extent that the increase reverses a
revaluation decrease for the same asset previously
recognised as an expense in profit or loss, in which case
the increase is credited to the profit and loss to the extent
of the decrease previously charged. A decrease in carrying
amount arising on the revaluation of land and buildings is
charged as an expense in profit or loss to the extent that it
exceeds the balance, if any, held in the revaluation reserve
relating to a previous revaluation of that asset.
The amount recognised as a provision is the best estimate
of the consideration required to settle the present
obligation at reporting date, taking into account the risks
and uncertainties surrounding the obligation. Where a
provision is measured using the cashflows estimated to
settle the present obligation, its carrying amount is the
present value of those cashflows. When some or all of the
economic benefits required to settle a provision are
expected to be recovered from a third party, the receivable
is recognised as an asset if it is virtually certain that the
reimbursement will be received and the amount of the
receivable can be measured reliably.
Depreciation on revalued buildings is charged to profit or
loss. On the subsequent sale or retirement of revalued
Onerous contracts
property, the attributable revaluation surplus remaining in
the revaluation reserve, net of any related taxes, is
transferred directly to retained earnings.
Plant and equipment, and leasehold improvements are
stated at cost less accumulated depreciation and
impairment. Cost includes expenditure that is directly
attributable to the acquisition of the item.
In the event that settlement of all or part of the purchase
consideration is deferred, cost is determined by
discounting the amounts payable in the future to their
present value as at the date of acquisition. Depreciation is
provided on property, plant and equipment, including
freehold buildings but excluding land. Depreciation is
calculated on a straight-line basis so as to write off the net
cost or other revalued amount of each asset over its
expected useful life to its estimated residual value.
Present obligations arising under onerous contracts are
recognised and measured as a provision. An onerous
contract is considered to exist where the Group has a
contract under which the unavoidable costs of meeting
the obligations under the contract exceed the economic
benefits expected to be received under it.
Restructuring
A restructuring provision is recognised when the Group
has developed a detailed formal plan for the restructuring
and has raised a valid expectation in those affected that it
will carry out the restructuring by starting to implement
the plan or announcing its main features to those
affected by it.
Capral Limited — Annual Report 2023
55
Notes to the Financial Statements
1c. Significant accounting policies continued
The measurement of a restructuring provision includes
Interest income
only the direct expenditures arising from the restructuring,
which are those amounts that are both necessarily
entailed by the restructuring and not associated with the
ongoing activities of the entity.
Provision for restoration and rehabilitation (provision for
make good on leased assets)
A provision for restoration and rehabilitation (provision for
make good on leased assets) is recognised when there is
a present obligation as a result of production activities
undertaken, it is probable that an outflow of economic
benefits will be required to settle the obligation, and the
amount of the provision can be measured reliably. The
estimated future obligations include the costs of removing
the facilities and restoring the affecting areas.
(r) Revenue Recognition
Revenue is recognised when (or as) a performance
obligation is satisfied, i.e. when ‘control’ of the goods or
services underlying the particular performance obligation
is transferred to the customers.
The Group recognises revenue from the sale of products
Interest income is accrued on a time basis, by reference to
the principal outstanding and at the effective interest rate
applicable, which is the rate that exactly discounts
estimated future cash receipts through the expected life of
the financial asset to that asset’s net carrying amount.
(s) Goods and Services Tax
Revenues, expenses and assets are recognised net of the
amount of goods and services tax (GST) except:
i) where the amount of GST incurred is not recoverable
from the taxation authority, it is recognised as part
of the cost of acquisition of an asset or as part of an
item of expense; or
ii) for receivables and payables which are recognised
inclusive of GST.
The net amount of GST recoverable from, or payable to,
the taxation authority is included as part of receivables or
payables. Cash flows are included in the cash flow
statement on a gross basis. The GST component of cash
flows arising from investing and financing activities which
is recoverable from, or payable to, the taxation authority, is
and the sale of scrap and when it transfers control of a
classified as operating cash flows.
product to a customer, which is the point in time that the
customer obtains control of the goods being on
(t) Earnings per share
acceptance of the goods by the customer.
(i) Basic earnings per share
Revenue is measured at the fair value of the consideration
received or receivable. Sales revenue comprises sales of
goods and services at net invoice values less returns,
trade allowances and applicable rebates.
Royalties
Royalty income is recognised on an accrual basis in
accordance with the substance of the relevant agreement.
Royalties are recognised on the subsequent sale or usage,
and the performance obligation to which the royalty has
been allocated has been satisfied.
Rental income
The Group’s policy for recognition of income from
operating leases is described in note 1c (o).
Basic earnings per share is calculated by dividing the
profit/(loss) attributable to equity holders of the
Group, excluding any costs of servicing equity other
than ordinary shares, by the weighted average
number of ordinary shares outstanding during the
year, adjusted for bonus elements in ordinary shares
issued during the year.
(ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used
in the determination of basic earnings per share to
take into account the weighted average number of
shares assumed to have been issued for no
consideration in relation to dilutive potential ordinary
shares.
56
Annual Report 2023 — Capral Limited
1d. Critical accounting judgements
and key sources of estimation
uncertainty
In the application of the Group’s accounting policies, which
are described in note 1, management is required to make
judgements, estimates and assumptions about carrying
values of assets and liabilities that are not readily apparent
from other sources. The estimates and associated
assumptions are based on historical experience and
various other factors that are believed to be reasonable
under the circumstances, the results of which form the
basis of making the judgements. Actual results may differ
from these estimates.
The estimates and underlying assumptions are reviewed
on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is
revised if the revision affects only that period, or in the
period of the revision and future periods if the revision
affects both current and future periods.
Notes to the Financial Statements
Impairment of non-current assets inclusive of
right of use assets and goodwill
Goodwill and indefinite life intangible assets are tested for
impairment at each reporting period or more frequently if
events or changes in circumstances indicate that goodwill
or other intangibles might be impaired. This is performed
through a value-in-use discounted cash flow model.
There is a degree of estimation uncertainty in the
estimates and judgements used in the preparation of
value-in-use models including in assessing whether there
is any indication that property, plant and equipment and
right of use assets may be impaired, or whether a reversal
of previous impairment losses should be recognised. The
key assumptions applied includes aluminium prices which
impact margins to the extent the price variations are
passed onto customers or not (i.e. price & margin),
volumes impacted by the cyclical nature of both
residential and commercial building activity, working
capital, capital expenditure, discount rate, economic
factors and prior period tax losses.
Critical judgements in applying the Group’s
accounting policies
Note 14 and Note 17 sets out the categories of property,
plant and equipment held and right of use assets.
The following are the critical judgements (apart from
those involving estimations which are dealt with above),
that management has made in the process of applying the
Group’s accounting policies and that have the most
significant effect on the amounts recognised in the
The key assumptions required the use of management
judgement and are reviewed biannually. If there are
indicators of impairment or reversal of impairment, a
value-in-use discounted cash flow model is prepared to
assess the extent of impairment or reversal of impairment.
financial statements.
Inventories
Employee benefits
Key assumptions used in the calculation of leave benefit
Note 9 sets out the categories of inventory carried. The
net realisable value of inventories is the estimated selling
provisions at balance date:
price in the ordinary course of business less estimated
i) future on-cost rates,
costs to sell which approximates fair value less cost to
ii) experience of employee departures and period of
sell. The key assumptions require the use of management
service, and
judgement and are reviewed annually.
iii) future increase in wages and salaries.
These key assumptions are the variables affecting the
estimated costs to sell and the expected selling price. Any
Provision for customer claims
reassessment of cost to sell or selling price in a particular
Provision for customer claims are measured at the
year will affect the cost of goods sold.
The Group also records impairment allowance on slow,
non-moving and obsolete inventories. The key
assumptions include future sales forecast, forecast LME
price and selection of specific inventory based on the past
consumption patterns vis-à-vis the inventory on hand.
present value of management’s best estimate of the
expenditure required to settle the present obligation at the
statement of the financial position date based on claims
assessors report.
Capral Limited — Annual Report 2023
57
Notes to the Financial Statements
1d. Critical accounting judgements
and key sources of estimation
uncertainty continued
1e. Comparative information
Where necessary, comparative amounts have been
reclassified and repositioned for consistency with
Useful lives of property, plant and equipment
current period disclosures. However, there are none
The Group reviews the estimated useful lives of property,
during the year.
plant and equipment at the end of each annual reporting
period. During the financial year, the directors determined
that there were no revisions to the useful lives of property,
plant and equipment.
Lease renewal
The Group reassess whether it is reasonably certain to
exercise an extension option, or not to exercise a
termination option, upon the occurrence of either a
significant event or a significant change in circumstances
that:
•
is within the control of the Group; and
• affects whether the Group is reasonably certain to
exercise an option not previously included in its
determination of the lease term, or not to exercise
an option previously included in its determination of
the lease term.
Incremental borrowing rate (AASB 16)
The rate is defined as the rate of interest that the lessee
would have to pay to borrow over a similar term and with a
similar security the funds necessary to obtain an asset of
a similar value to the right-of-use asset in a similar
economic environment.
Deferred taxation
The recognition of deferred tax assets is based upon
whether it is more likely than not that sufficient and
suitable taxable profits will be available in the future
against which the reversal of temporary differences can
be deducted and unrecognised tax losses utilised. To
determine the future taxable profits, reference is made to
the latest available profit forecasts. Relevant tax law is
considered to determine the availability of the losses to
offset against the future taxable profits. Recognition of
deferred tax assets therefore involves judgement
regarding the future financial performance of the
particular legal entity or tax group in which the deferred
tax asset has been recognised together with availability of
such losses.
58
Annual Report 2023 — Capral Limited
2 Profit for the year
NOTE
CONSOLIDATED
2023
$’000
Notes to the Financial Statements
(a) Other expenses
Profit before tax includes the following specific net expenses:
Inventory
Write-down of inventory to net realisable value
Reversal of write-down of inventory
9
Amortisation of intangibles assets
Total amortisation
Depreciation – owned assets
Buildings
Leasehold improvements
Plant and equipment
Total depreciation – owned assets
Depreciation – right of use assets
Buildings
Plant and equipment
Total depreciation – right of use assets
Total depreciation and amortisation
Occupancy Costs
Site costs
Expense relating to leases of low value assets
Other charges against assets
Increase/(decrease) in impairment of trade receivables
Employee benefit expense
Post-employment benefits:
- defined contribution plans
Equity-settled share-based payments
Termination benefits
Other employee benefits
Finance costs
Interest and finance charges paid/payable
- third party financier
Net finance costs are comprised of:
Interest and fees on bank overdrafts and loans
Interest component of lease liabilities
Impact of discounting on long-term provisions
Total interest expense
Other expenses
Other labour cost
Utilities
Insurance
Other
Total other expenses
(b) Gains and Losses
Net gain on foreign exchange
2022
$’000
2,929
(25)
2,904
212
212
311
537
6,473
7,321
12,067
1,718
13,785
21,318
4,969
4,969
80
(183)
7,687
982
59
95,194
103,922
6,350
2,000
4,350
(31)
6,319
11,087
9,441
3,104
11,302
34,934
917
(427)
490
175
175
292
610
7,230
8,132
12,345
2,357
14,702
23,009
5,966
5,966
85
74
8,505
1,045
86
99,430
109,066
6,425
1,995
4,430
257
6,682
11,516
10,520
3,464
10,955
36,455
1,122
1,349
Capral Limited — Annual Report 2023
59
Notes to the Financial Statements
3 Revenue and other income
Revenue from continuing operations
Sales revenue - sale of goods (i)
Other revenue
Scrap revenue (i)
Total other revenue
Other income
Sub-lease rental income
Other miscellaneous income
Interest income
(i) Recognised at a point in time.
4
Income Tax
Current tax
Current year
Deferred tax:
Origination and reversal of temporary differences
Carry forward tax losses
Income tax benefit
The benefit for the year can be reconciled to profit before tax as follows:
Profit before income tax benefit
Income tax calculated @ 30% (2022:30%)
Tax effect of non-assessable / non-deductible items:
Effect of expenses that are not deductible or taxable in
determining taxable profit
Tax effect of costs deductible upon purchase of shares on-market
for future issuance to employees
Tax effect of utilisation of tax losses and temporary differences
CONSOLIDATED
2023
$’000
2022
$’000
614,844
643,284
42,015
42,015
3,526
2
805
4,333
-
-
-
-
31,839
9,552
580
(685)
49,222
49,222
3,319
2
125
3,446
-
8,365
-
8,365
32,388
9,716
455
-
not previously recognised
(9,447)
(10,171)
Previously unrecognised and unused tax losses and temporary differences
now recognised as deferred tax assets
Income tax benefit recognised in profit or loss
-
-
8,365
8,365
60
Annual Report 2023 — Capral Limited
Notes to the Financial Statements
5 Changes in accounting estimates
There were no significant changes in accounting estimates.
6 Segment information
The information reported to the Managing Director, as the Group’s chief operating decision maker, for the purposes of
resource allocation and assessment of performance is focused on the type of goods supplied, being aluminium products.
As such, in 2022 and 2023, the Group operated in one reportable segment under AASB 8 Operating Segment.
Major Products and Services
The Group produces a wide range of extruded aluminium products and systems. It distributes those manufactured
products in addition to a small number of bought-in products through two distribution channels.
The Group supplies to three market segments through each of its distribution channels:
• Residential - supply of aluminium and other components for windows and doors, showers and wardrobes and
security products,
• Commercial - supply of aluminium and other components for windows and doors, internal fit outs and other
commercial building related products, and
•
Industrial - supply of aluminium extrusions and rolled products for industrial uses.
Management does not report on the revenues from external customers for each of the market segments.
Geographic Information
The Group operates in one geographical area, Australia.
Information About Major Customers
There are no individual major customers who contributed more than 10% of the Group’s revenue in either the Financial
Year or in 2022.
7 Current assets - cash and cash equivalents
CONSOLIDATED
Cash at bank and cash in hand
2023
$’000
59,457
2022
$’000
48,988
Capral Limited — Annual Report 2023
61
Notes to the Financial Statements
8 Current assets - trade and other receivables
CONSOLIDATED
Trade receivables - at amortised cost
Loss allowance (i)
Other receivables
Disclosed in the financial statements as:
Current trade and other receivables
Non-current other receivables
The average credit period on sales of goods is approximately 42 days (2022: 43 days).
No interest is charged on trade receivables.
(i) Movement in the loss allowance
Balance at beginning of the financial year
Amounts written off during the financial year
Increase in allowance recognised in profit or loss
Balance at end of the financial year
2023
$’000
83,153
(316)
82,837
6,476
89,313
89,313
-
89,313
CONSOLIDATED
2023
$’000
(242)
254
(328)
(316)
2022
$’000
90,443
(242)
90,201
1,125
91,326
91,326
-
91,326
2022
$’000
(425)
243
(60)
(242)
The Group always measures the loss allowance for trade receivables at an amount equal to lifetime ECL. The expected
credit losses on trade receivables are estimated using a provision matrix by reference to past default experience of the
debtor and an analysis of the debtor’s current financial position, adjusted for factors that are specific to the debtors, general
economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the
forecast direction of conditions at the reporting date. Allowances are made for known doubtful debts at the time of
appointment of administrators, liquidators, or other formal insolvency events.
Included in the Group’s trade receivables are debtors with balances in 61 days and over of $667,000 (2022: $594,000), refer
to note 31(h). The Group has not provided for all of these balances as the Group believes that these past due balances are
still recoverable. In relation to some of the balances the Group holds personal property securities registrations and/or
personal guarantees and/or trade indemnity insurance for 80% of the amount outstanding (after applying the deductible).
The average age of these receivables is 88 days (2022: 79 days).
62
Annual Report 2023 — Capral Limited
8 Current assets - trade and other receivables continued
Trade receivables risk profile (excluding individually impaired):
CONSOLIDATED
Notes to the Financial Statements
Current
1-30 days past due
31- 60 days past due
61+ days past due
Total
2023
$’000
62,513
18,636
1,337
413
82,899
2022
$’000
70,226
17,744
1,879
396
90,245
Included in the loss allowance is the expected credit loss for individually impaired trade receivables with a balance of
$254,000 (2022: $198,000). The impairment recognised represents the difference between the carrying amount of these
trade receivables and the present value of the expected proceeds.
Current
1-30 days past due
31- 60 days past due
61+ days past due
Total
CONSOLIDATED
2023
$’000
-
-
-
254
254
2022
$’000
-
-
-
198
198
Major concentrations of credit risk are in the construction, transport, consumer durable and electrical industries in
Australia. Furthermore, the Company has credit insurance cover which requires ongoing management of credit accounts
with monthly reports provided to the Insurer. Accordingly, there is no further credit provision required in excess of the loss
allowance. The Group writes off a trade receivable when there is information indicating that the debtor is in severe financial
difficulty and there is no realistic prospect of recovery.
9 Current assets - inventories
CONSOLIDATED
Raw materials and stores
Work in progress
Finished goods
2023
$’000
27,302
3,204
95,644
126,150
2022
$’000
25,617
3,631
125,629
154,877
All inventories are net of allowance for obsolescence and are expected to be recovered within 12 months.
Included in the inventories balance is inventories in transit of $23.483 million (2022: $29.760 million).
10 Current assets - prepayments
Prepayments
CONSOLIDATED
2023
$’000
2,711
2022
$’000
848
Capral Limited — Annual Report 2023
63
Notes to the Financial Statements
11 Deferred tax assets
The following is a reconciliation of the deferred tax assets recognised by the Group and movements during the current and
prior reporting period:
Balance at 1 January 2022
Benefit recognised in the profit
Balance at 1 January 2023
Benefit recognised in the profit
Balance at end of the financial year
TAX LOSSES AND
TEMPORARY
DIFFERENCES
$’000
15,335
8,365
23,700
-
23,700
TOTAL
$’000
15,335
8,365
23,700
-
23,700
At the reporting date, the Group has unused tax losses of $188,483,071 (2022: $208,596,113) available to offset against
future taxable profits and $72,159,745 (2022: $82,058,874) deductible temporary differences which would reverse in
the future.
The Group has recognised a deferred tax asset of $23,700,000 (2022: $23,700,000) representing both carry forward tax
losses and deductible temporary differences. These tax losses may be carried forward indefinitely, however subject to
income tax recoupment rules in subsequent years. The recognition of the deferred tax assets is dependent on the three
years to four years forecasted taxable profits. The Group has taken a view that it is probable to achieve forecasted taxable
profits in the next three to four years against which this deferred tax asset recognised would be utilised.
The group has recognised deferred taxes amounting to $9,845,000 in respect of deductible temporary differences and no
deferred tax asset is recognised on the balance temporary differences of $39,345,000 (tax impact of $11,803,391) based
on management assessment that they will not reverse in foreseeable future.
In respect of carried forward tax losses, the group has recognised taxes amounting to $13,855,000 and no deferred tax
asset recognised on balance of the available tax losses amounting to $142,298,000 (tax impact of $42,689,454).
The total unrecognised deferred taxes amount to $54,492,845 (2022: $63,496,496) as of reporting date.
64
Annual Report 2023 — Capral Limited
12 Non-current assets - investments
Details of subsidiaries
The financial statements incorporate the assets, liabilities and results of the following subsidiaries:
Notes to the Financial Statements
EQUITY HOLDING
2023
%
100
2022
%
100
Country of
incorporation
Australia
ENTITY NAME
Austex Dies Pty Limited
13 Related parties
Parent entities
The ultimate parent entity within the Group is Capral Limited.
Equity interests in controlled entities
Interests in controlled entities are set out in Note 12.
Transactions with key management personnel
Refer to Note 37 in relation to securities granted and forfeited during the Financial Year under the Long Term Incentive Plan
that include rights granted and shares issued, to Capral’s Managing Director and Chief Financial Officer (who are key
management personnel).
During the Financial Year, the Company bought back 48,255 shares off market from Capral’s Managing Director at a cost of
$361,912.50, $7.5 per share (at prior day VWAP) to facilitate his taxation payment.
Details of the compensation of, and transactions with, each Director of the Company and key management personnel of
the Group are set out in the Directors’ Report and in particular, the Remuneration Report.
Transactions with other related parties
In 2023, the parent entity has settled a non-interest-bearing loan of $500,000 (2022: $1,000,000) advanced from a
controlled entity, Austex Dies Pty Limited. The loan was payable on demand.
The Company has entered into the following transactions with controlled entities:
• Purchase of dies of $4,700,821 (2022: $4,845,482) – Austex Dies Pty Limited
These transactions were conducted on arm’s length commercial terms and conditions at market rates.
During the Financial Year, the Company received a dividend of $500,000 (2022: $1,000,000) from Austex Dies Pty Limited.
Capral Limited — Annual Report 2023
65
Notes to the Financial Statements
14 Property, plant and equipment
CONSOLIDATED
2023
$’000
1,700
-
1,700
5,654
(1,039)
4,615
14,395
(9,256)
(1,970)
3,169
9,484
238,785
(166,678)
(32,099)
40,008
8,026
48,034
57,518
2022
$’000
1,700
-
1,700
5,628
(747)
4,881
14,257
(8,646)
(1,970)
3,641
10,222
229,805
(159,515)
(32,099)
38,191
8,231
46,422
56,644
Freehold land
At valuation(i)
Accumulated depreciation
Net book amount
Buildings
At valuation(i)
Accumulated depreciation
Net book amount
Leasehold improvements
At cost
Accumulated depreciation
Accumulated impairment
Net book amount
Total land and buildings
Plant, machinery and equipment
At cost
Accumulated depreciation
Accumulated impairment
Net book amount
Capital work in progress at cost
Net plant, machinery and equipment
Total property, plant and equipment - net book value
The following useful lives are used in the calculation of depreciation:
Buildings
Leasehold improvements
Plant and equipment
20-33 Years
5-25 Years
3-25 Years
(i)
Valuations of land and building:
An independent valuation of the Group’s land and buildings was performed in December 2021 using Capitalisation and
Direct Comparison approaches to determine the fair value of the land and buildings. The valuations, which conform to
International Valuation Standards, were determined by reference to recent market transactions on arm’s length terms at
the time. The fair value of the Land and Buildings is $1,700,000 and $5,000,000 respectively.
66
Annual Report 2023 — Capral Limited
14 Property, plant and equipment continued
Reconciliations
Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the
current and prior financial year are set out below:
Notes to the Financial Statements
FREEHOLD
LAND AT
FAIR VALUE
BUILDINGS
AT FAIR
VALUE
LEASE
IMPROVEMENTS
AT COST
PLANT AND
EQUIPMENT
AT COST
CAPITAL
WORK IN
PROGRESS
AT COST
TOTAL
$’000
$’000
$’000
$’000
$’000
$’000
CONSOLIDATED
2023
Opening net book amount
1,700
4,881
Additions
Business acquisition
Disposals
Transfers
Revaluation
Depreciation charge (Note 2(a))
Net book amount at
31 December 2023
2022
Additions
Business acquisition
Disposals
Transfers
Revaluation
Depreciation charge (Note 2(a))
Net book amount at
31 December 2022
3,815
(3,856)
(292)
(610)
(7,230)
1,700
4,615
3,169
40,008
8,026
57,518
3,641
117
-
-
21
-
2,796
912
-
(17)
487
-
38,191
5,233
-
(1)
-
-
37,891
4,113
-
-
8,231
3,651
56,644
9,007
-
-
-
-
-
-
-
-
-
(1)
-
-
(8,132)
-
(17)
(55)
-
(7,321)
5,616
5,817
53,195
10,842
-
-
-
-
-
-
-
-
-
-
-
-
6
-
-
20
-
-
-
-
-
-
2,660
(3,202)
(311)
(537)
(6,473)
1,700
4,881
3,641
38,191
8,231
56,644
Opening net book amount
1,700
5,192
Impairment of non-current assets inclusive of right of use assets and goodwill
At each reporting date, the Group reviews the carrying amounts of its tangible and intangible assets to determine whether
there is any indication that those assets have suffered an impairment loss. If any such indication exists, the recoverable
amount of the asset is estimated in order to determine the extent of the impairment loss (if any). Where the asset does
not generate cash flows that are independent from other assets, the Group estimates the recoverable amount of the
cash-generating unit (CGU) to which that asset belongs. Management views the Group as representing one CGU.
If there is an indication of impairment, the recoverable amount of property, plant & equipment and intangible assets will
be determined by reference to a value in use discounted cash flow valuation of the Group, utilising financial forecasts and
projections.
Recoverable amount is the higher of fair value less costs to sell and value in use. In assessing value in use, the estimated
future cash flows are discounted to their present value using a post-tax discount rate that reflects current market
assessments of the time value of money and the risks specific to the asset for which the estimates of future cash flows
have not been adjusted. Cash flows that may result from prior period tax losses are not taken into account. If the
recoverable amount of an asset (or CGU) is estimated to be less than its carrying amount, the carrying amount of the
asset (CGU) is reduced to its recoverable amount. An impairment loss is recognised in profit or loss immediately.
Capral Limited — Annual Report 2023
67
Notes to the Financial Statements
14 Property, plant and equipment continued
The result of Impairment assessment as at 31 December 2023
As a result of the non-current assets recoverable amount assessment performed, Capral has determined that no
impairment write-down of non-current assets as at 31 December 2023 was necessary. The recoverable amount of the
CGU estimated by management exceeded the carrying amount of assets by $9,927,000. However, management view
that no reversal of impairment is required due to the uncertainty of the performance of the construction industry and its
impact on margins.
The key assumptions used in preparing the value in use cash flow valuation as at 31 December 2023
are as follows:
The table below shows key assumptions in the value in use calculation as at 31 December 2023 and value of the input
to which the key assumption must change in isolation for the estimated recoverable amount to be equal to
its carrying value.
WACC (Post-tax)
Average volumes increase 2024-25 p.a.
Average volumes increase 2026-28 p.a.
Long-term growth rate
INPUT TO THE MODEL
BREAKEVEN INPUT
10.70%
-0.8%
1.00%
1.00%
11.22%
-2.3%
0.74%
-0.37%
The valuation is based on forecast and projected cash flows for a 5-year period commencing January 2024 with a
terminal value being applied at the end of this period. The cash flow assumptions are based on management approved
budgets for the period from January 2024 to December 2024. Beyond this date cash flow projections until 31 December
2028 are based on projected volume growth and expected improvements in EBITDA per tonne (refer below). Sales
volumes are projected to grow at 1.0% per annum, from 2026 onwards. This growth rate corresponds with the average
long-term growth rate based on external economic sources.
Price and Margins
In setting price and margin assumptions, historical performance trends and the impact of previous price increases were
reviewed in assessing the timing and quantum of future price increases.
Recent history in relation to direct costs and the impact of changing volumes on manufacturing variances were
assessed in setting assumptions on absorbed conversion costs.
In forecasting the margin, Management has considered the production capacity of Capral compared to current volumes
and concluded that increase in production volumes to satisfy demand expected by independent market predictions can
be attained by predominately increasing variable cost with very limited additional fixed cost expenditure. This is
reflected in the resultant average EBITDA per tonne increase of 1.0% per annum from 2026 to 2028. A 0.05%
underperformance in forecasted margin over the 5-year forecast period, in isolation, would reduce the headroom to nil
but would not result in an impairment charge.
Volumes
In determining assumptions in relation to sales volumes into the commercial and residential/domestic market, Capral
have based these on reputable third-party long term economic forecast reports with reference to historical performance
and seasonal trends. The volume projections estimate the sales volumes at around 72,000 tonnes at the end of the
5-year period.
68
Annual Report 2023 — Capral Limited
Notes to the Financial Statements
14 Property, plant and equipment continued
Working Capital and Capital Expenditure
These assumptions were set in light of strategic initiatives and approved maintenance and safety capital
expenditure of an average around $5,500,000 per annum, with working capital flexed in relation to the assumed
production capacity for volumes throughout the forecast period and historical performance and considering
revisions to trading terms with key suppliers, customers and external market environment.
Discount rate
A discount rate of 10.7%, representing the Company’s post-tax weighted average cost of capital has been applied
to the cash flow projections.
Economic Factors
Assumptions including Gross Domestic Production (GDP), the Consumer Price Index (CPI), expected wage and
salary increases, foreign exchange and the future impact of aluminium prices have been made with reference to
third party economic forecasts and the Company’s strategic plans and budgets.
Prior Period Tax Losses
Cash flows that may result from prior period tax losses are not taken into account in determining the recoverable
amount of assets.
15 Other intangibles assets
OTHER INTELLECTUAL
PROPERTY
CONSOLIDATED
2023
Cost
Accumulated amortisation
Accumulated impairment
Net book value
2022
Cost
Accumulated amortisation
Accumulated impairment
Net book value
$’000
15,937
(8,373)
(7,560)
4
15,937
(8,368)
(7,560)
9
Impairment assessment is performed based on assumptions and estimates as disclosed in Note 14.
SOFTWARE
$’000
25,169
(22,147)
(2,466)
556
25,083
(21,977)
(2,466)
640
TOTAL
$’000
41,106
(30,520)
(10,026)
560
41,020
(30,345)
(10,026)
649
Capral Limited — Annual Report 2023
69
Notes to the Financial Statements
15 Other intangibles assets continued
Reconciliations
Reconciliations of the carrying amounts of each class of intangibles at the beginning and end of the current
Financial Year are set out below:
2023
Opening net book amount
Additions
Disposals
Transfers
Amortisation
OTHER INTELLECTUAL
PROPERTY
$’000
9
-
-
-
(5)
Net book amount at 31 December 2023
4
2022
Opening net book amount
Additions
Disposals
Transfers
Amortisation
-
10
-
-
(1)
Net book amount at 31 December 2022
9
SOFTWARE
$’000
640
86
-
-
(170)
556
700
96
-
55
(211)
640
16 Goodwill
CONSOLIDATED
Cost
At 31 December 2022
At 31 December 2023
Accumulated depreciation
At 31 December 2022
Amortisation
At 31 December 2023
Impairment assessment is performed based on assumptions and estimates as disclosed in Note 14.
2023
$’000
3,070
3,070
-
-
-
TOTAL
$’000
649
86
-
-
(175)
560
700
106
-
55
(212)
649
2022
$’000
3,070
3,070
-
-
-
70
Annual Report 2023 — Capral Limited
17 Right-of-use assets
CONSOLIDATED
Cost
At 31 December 2022
Additions
Modifications
Terminations
At 31 December 2023
Accumulated depreciation
At 31 December 2022
Terminations
Depreciation charge
At 31 December 2023
Net Book Value
At 31 December 2023
At 31 December 2022
Notes to the Financial Statements
BUILDINGS
PLANT &
EQUIPMENT
$’000
$’000
105,043
194
6,436
(440)
111,233
(42,339)
276
(12,345)
(54,408)
56,825
62,704
10,923
1,727
2,568
-
15,218
(6,976)
-
(2,357)
(9,333)
5,885
3,947
TOTAL
$’000
115,966
1,921
9,004
(440)
126,451
(49,315)
276
(14,702)
(63,741)
62,710
66,651
Impairment assessment is performed based on assumptions and estimates as disclosed in Note 14.
The Group leases several assets including buildings and plant and equipment, with average lease term of 4.5 years (2022:
4.5 years) and 4.3 years (2022: 3.9 years) respectively.
The Group has options to purchase certain equipment for a nominal amount at the end of the lease term. The Group’s
obligations are secured by the lessor’s title to the leased assets for such leases.
The Group has renewed some of leases for buildings and equipment in the current financial year. The expired contracts
were replaced by new leases for identical underlying assets. This resulted in additions to right-of-use assets of $1.921
million and in modifications of $9.004 million in the current financial year (2022: $5.804 million).
18 Assets pledged as security
In accordance with the security arrangements of liabilities disclosed in Note 27, all assets of the Group have been pledged
as security. The holder of the security does not have the right to sell or repledge the assets other than in the event of
default under the principal finance agreement where the security is enforced.
19 Current liabilities – trade and other payables
CONSOLIDATED
Trade payables (i)
Goods and services tax payable
Other payables
2023
$’000
89,388
2,168
15,418
2022
$’000
92,819
1,728
18,188
106,974
112,735
(i) The average credit period on purchases is 82 days from the end of the month (2022: 85 days). No interest is charged on the trade payables.
The Group has financial risk management policies in place to ensure that all payables are paid within the credit timeframe.
Capral Limited — Annual Report 2023
71
Notes to the Financial Statements
20 Lease liabilities
Current
Non-current
Maturity analysis
Within one year
Later than one year but not later than five years
Later than five years
CONSOLIDATED
2023
$’000
15,558
73,255
88,813
15,558
59,353
13,902
88,813
21 Provisions
CONSOLIDATED
Current
Employee benefits
Make good on leased assets1
Other2
Non-current
Employee benefits
Make good on leased assets1
Other
2023
$’000
13,841
254
825
14,920
2,365
5,219
-
7,584
2022
$’000
16,158
77,874
94,032
16,158
53,837
24,037
94,032
2022
$’000
13,776
169
3,956
17,901
2,332
4,974
-
7,306
1 Provision for make good on leased assets comprises obligations relating to site closure and other costs associated with
lease rental properties.
2 Other current provisions include provisions for insurance claims, provisions for customer claims including metal returns net of
scrap and pricing adjustments, and $2,705,912 was released from the provisions to the profit or loss during the year.
CONSOLIDATED
Movements in carrying amounts
EMPLOYEE
BENEFITS
$’000
Carrying value at the beginning of the financial year
16,108
Provision utilised/released in the year
Additional amounts provided
(6,405)
6,503
MAKE GOOD
ON LEASED
ASSETS
$’000
5,143
-
330
OTHER
$’000
3,956
(4,808)
1,677
TOTAL
$’000
25,207
(11,213)
8,510
Carrying value at the end of the financial year
16,206
5,473
825
22,504
72
Annual Report 2023 — Capral Limited
22 Deferred income - current
CONSOLIDATED
Notes to the Financial Statements
Deferred income – other
23 Issued Capital
(a) Share capital
Ordinary shares: fully paid
2023
$’000
162
162
2023
2022
No. 000
No. 000
2023
$’000
2022
$’000
153
153
2022
$’000
17,687
17,767
424,771
433,433
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
(b) Movement in ordinary share capital
DATE
DETAILS
January 2022
Balance at the beginning of the financial year
March 2022
Shares issued - deferred STIP
March 2022
Shares issued pursuant to a dividend reinvestment plan
March 2022
Shares issued against performance rights
32,369
321,654
219,990
December 2022 Balance at the end of the financial year
17,767,272
NUMBER OF
SHARES
17,193,259
ISSUE
PRICE
$'000
-
430,588
$7.44
$8.1
-
-
241
2,604
-
433,433
43
-
March 2023
Shares issued - deferred STIP
5,131
$8.423
March 2023
Shares issued against performance rights
278,320
-
September 2023 Shares cancelled – on-market buy-back1
(106,074)
$23.932
(2,539)
October 2023
Shares cancelled – on-market buy-back1
(60,020)
$23.932
(1,436)
November 2023
Shares cancelled – on-market buy-back1
(76,087)
$23.932
(1,821)
December 2023
Shares cancelled – on-market buy-back1
(121,532)
$23.932
(2,909)
December 2023 Balance at the end of the financial year
17,687,010
-
424,771
1 The Board approved the on-market buy-back and cancellation of up to 370,000 shares in line with ASIC/ASX regulations starting
from 1 September 2023. 363,713 shares were bought back by an independent third-party broker at an average of $8.647 per
share and cancelled at an average price of $23.932 per share ($431,995,567 / 18,050,723 shares, right before September 2023)
during September to December 2023. A resultant gain of $5,559,306 has been presented under a separate reserve account,
called Share Buy-Back Reserve.
Capral Limited — Annual Report 2023
73
Notes to the Financial Statements
24 Reserves and accumulated losses
CONSOLIDATED
Asset revaluation reserve
Equity-settled compensation reserve
Employee share reserve
Share buy-back reserve
Dividend reserve
Accumulated losses
24 (a) Movements in reserves were:
Equity-settled compensation reserve
Balance at the beginning of the financial year
Expense recognised
Shares acquired on conversion of vested rights
Balance at the end of the financial year
Asset revaluation reserve
Balance at the beginning of the financial year
Revaluation increase
Balance at the end of the financial year
Employee share reserve
Balance at the beginning of the financial year
Employees shares on-market purchasea
Employees shares off-market purchaseb
Employees escrow shares utilisedb
Balance at the end of the financial year
Share buy-back reserve
Balance at the beginning of the financial year
Net gain on cancelled shares – on-market purchasec
Balance at the end of the financial year
Dividend reserve
Balance at the beginning of the financial year
Net profit attributable to members of Capral
Dividends paid
Balance at the end of the financial year
24 (b) Accumulated losses:
Balance at the beginning of the financial year
Net profit for the year (Income tax benefit)
Balance at the end of the financial year
2023
$’000
4,088
13,936
(2,320)
5,560
93,683
114,947
(334,986)
(220,039)
12,891
1,045
-
13,936
4,088
-
4,088
(38)
(1,970)
(361)
49
(2,320)
-
5,560
5,560
74,338
31,839
(12,494)
93,683
(334,986)
-
(334,986)
2022
$’000
4,088
12,891
(38)
-
74,338
91,279
(334,986)
(243,707)
11,909
982
-
12,891
4,088
-
4,088
(225)
-
-
187
(38)
-
-
-
54,116
32,388
(12,166)
74,338
(343,351)
8,365
(334,986)
a 240,000 shares were purchased at an average price of $8.2064 per share by the Capral Employee Share Trustee on-market to
allow for full allotment of 2021 LTIP shares as well as 2023 Escrow allotment in March 2024.
b 48,255 shares were purchased at $7.5 per share by the Capral Employee Share Trustee off-market from Capral’s Managing
Director to allow for full allotment of 2021 LTIP shares as well as 2023 Escrow allotment in March 2024.
During the year 5,843 shares were utilised for 2022 Escrow allotment.
c Refer to Note 23
74
Annual Report 2023 — Capral Limited
25 Dividends
Ordinary shares:
Franking credits
Franking credits available for subsequent financial years
based on a tax rate of 30% (2022:30%)
26 Earnings per share
Basic earnings per share
Diluted earnings per share
Notes to the Financial Statements
CONSOLIDATED
2023
$’000
12,494
2022
$’000
12,166
2,724
8,079
CONSOLIDATED
2023
$
1.77
1.71
2022
$
2.31
2.22
Net profit after tax used in the calculation of basic and diluted profit per share for 2023 was $31,839,000 (2022:
$40,753,000). The weighted average numbers of ordinary shares on issue used in the calculation of basic and diluted
earnings per share were 17,939,575 and 18,574,885 (2022: 17,649,632 and 18,366,893) respectively.
Capral Limited — Annual Report 2023
75
Notes to the Financial Statements
27 Stand by arrangement and credit facilities
CONSOLIDATED
27 (a) Secured facilities
Total secured facilities
Facilities used:
Trade loan
Cash loan
Bank guarantees
Trade finance – drawn letters of credits
Trade finance – open letters of credits
Total facilities utilised
Total available facilities
27 (b) Borrowings
Current:
Trade loan
2023
$’000
80,000
80,000
-
-
4,941
21,642
5,947
32,530
47,470
2022
$’000
90,000
90,000
24,083
-
4,371
18,743
6,814
54,011
35,989
-
24,083
Each trade instrument is approved individually and may result in temporary facility over utilisation due to timing of release of
instruments already expired.
The Multi-option Facility was reduced to $70 million on 1 January 2023. To align with Capral’s ongoing requirements, this
Multi-option Facility was reduced to $60 million from 1 January 2024 to closely align with Capral’s working capital
requirement with an expiry date of 30 April 2025.
The existing ANZ facilities consist of:
Secured:
• $70 million Multi-option Facility which includes a Trade Finance Loan Facility, Trade Instruments
and Trade Finance;
• $5 million Cash Loan Facility – Floating Rate; and
• $5 million Standby Letter of Credit or Guarantee Facility.
Unsecured:
• $2.5 million Electronic Payaway Facility; and
• $0.5 million Commercial Card Facility.
• $1.272 million Asset Finance Facility
The trade loan facility has a maximum drawdown term of 90 days and with an ANZ defined variable base rate plus a margin.
28 Commitments for expenditure - capital
CONSOLIDATED
2023
$’000
2022
$’000
Commitments for the acquisition of plant and equipment contracted
for at the reporting date but not recognised as liabilities payable:
Within one year
3,000
1,880
76
Annual Report 2023 — Capral Limited
29 Commitments for expenditure - leases
The recognition of a right-of-use asset and a lease liability at commencement for all leases, except for short-term leases
and leases of low value assets. Refer to note 20 for maturity analysis of lease liabilities at 31 December 2023.
At 31 December 2023, the Group is committed to $200,827 (2022: $287,088) for low value leases and has no short- term
Notes to the Financial Statements
lease commitments.
Commitments for income - leases
Lease Receivable
Non-cancellable lease receivable
Within one year
Later than one year but not later than five years
Later than five years
CONSOLIDATED
2023
$’000
3,067
13,214
1,580
17,861
2022
$’000
2,977
12,829
5,822
21,628
Lease receivables relate to the sublease of office and plant premises with a lease term of 10 years, with an option to extend
for a further term of 5 years.
30 Fair value measurement
Some of the Group’s assets and liabilities are measured at fair value at the end of each reporting period. The following table
gives information about how the fair values of these assets and liabilities are determined (in particular, valuation
technique(s) and input(s) used).
ASSETS /
LIABILITIES
Foreign
currency
forward
contracts
(see note 31(f))
FAIR VALUE AS AT
31/12/23 ($)
31/12/22 ($)
FAIR VALUE
HIERARCHY
VALUATION TECHNIQUE(S)
AND KEY INPUT(S)
SIGNIFICANT
UNOBSERVABLE
INPUT(S)
RELATIONSHIP OF
UNOBSERVABLE
INPUT(S)
Assets – nil
Assets – nil
Level 2
Discounted cash flow.
n/a
n/a
Liabilities –
Liabilities –
2,015,841
828,359
Future cash flows are
estimated based on
forward exchange rate
(from observable forward
exchange rates at the end
of the reporting period) and
contract forward rates,
discounted at a rate that
reflects the credit risks of
various counterparties.
Land and
buildings
Land –
Land –
Level 3
Capitalisation and Direct
Comparable to
The higher/(lower)
1,700,000
1,700,000
Comparison approaches.
recent market
the comparable
Buildings –
Buildings –
(Last assessed 2021)
4,615,000
4,881,000
transactions
market net rental
on arm’s
amount and the
length terms at
higher/(lower)
the time.
the comparable
market sales
transactions, the
higher the fair value.
Capral Limited — Annual Report 2023
77
Notes to the Financial Statements
31 Financial instruments
(a) Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as going concerns while
maximising the return to shareholders through the optimisation of the debt and equity balance.
The Group's overall strategy remains unchanged from 2022.
The capital structure of the Group consists of debt, as disclosed in Note 27, cash and cash equivalents, and equity holders
of the parent, comprising issued capital, reserves and accumulated losses, as disclosed in Notes 7, 23 and 24 respectively.
The Directors review the capital structure on a regular basis, and at least annually. As a part of this review the Directors
consider the cost of capital and the risks associated with each class of capital. Based on the determinations of the
Directors, the Group will balance its overall capital structure through the payment of dividends, new share issues and share
buy-backs as well as the issue of new debt or the redemption of existing debt.
The Group prepares monthly management accounts, comprising Balance Sheet, Profit and Loss Statement and Cash Flow
Statement updates for the current financial year and the current year forecast. The forecast is used to monitor the Group's
capital structure and future capital requirements, taking into account future capital requirements and market conditions.
The Group complied with its borrowing financial covenants under its current facility detailed in Note 27 as at 31 December
2023 and 31 December 2022 as follows:
FINANCIAL COVENANT DESCRIPTION
REQUIRED VALUE
2023
ACTUAL VALUE
2022
ACTUAL VALUE
EBITDA Interest Cover Ratio
(A ratio of EBITDA to Interest Expense)
> 3.00:1
22.08:1
23.75:1
Minimum Tangible Net Worth
> AUD 100.0m
AUD 205.9m
AUD 191.5m
(Tangible Net Worth – Total Tangible Assets Less Total
Liabilities)
Borrowing Base Ratio
< 0.80:1
0.34:1
0.54:1
(A ratio of Aggregate Facility Amount Owing to Eligible
Debtors owing up to 90)
Distributions
Variable*
AUD 15.64m
AUD 12.17m
(Any payment or distribution of money or other assets
to shareholders)
Inventory Cover Ratio
>0.8:1
0.87:1
0.88:1
* lower than the profit of prior year
(b) Significant accounting policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of
measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset,
financial liability and equity instrument are disclosed in Note 1(c).
78
Annual Report 2023 — Capral Limited
31 Financial instruments continued
(c) Categories of financial instruments
CONSOLIDATED
Notes to the Financial Statements
Financial Assets
Trade and other receivables
Cash and cash equivalents
Other financial assets1
Financial Liabilities
Trade and other payables
Borrowings
Lease liabilities
Other financial liabilities2
2023
$’000
89,313
59,457
11
106,974
-
88,813
2,016
2022
$’000
91,326
48,988
11
112,735
24,083
94,032
828
1 Security deposit for a site energy supply.
2 Foreign exchange contract mark-to-market $2,016,000 (2022: foreign exchange contract mark-to-market $828,000).
(d) Financial risk management objectives
The Group’s treasury function monitors and manages the financial risks relating to the operations of the Group through
internal risk reports. These risks include market risk (including currency risk, interest rate risk and equity price risk), credit
risk and liquidity risk. These risks are analysed below.
(e) Market risk
The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates (refer note
31(f)) and interest rates (refer note 31(g)). From time to time, the Group enters into a variety of derivative financial
instruments to manage its exposure to interest rate and foreign currency risk, including foreign exchange forward
contracts to hedge the exchange rate risk arising on the purchase of aluminium log and rolled product from overseas in
US dollars.
At a Group and Company level, market risk exposures are measured using a sensitivity analysis. There has been no
material change to the Group’s exposure to market risks or the manner in which it manages and measures the risk
during the Financial Year.
Capral Limited — Annual Report 2023
79
Notes to the Financial Statements
31 Financial instruments continued
(f) Foreign currency risk management
The Group undertakes certain transactions in foreign currencies, resulting in exposures to exchange rate fluctuations.
Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts. It
is the policy of the Group to enter into forward foreign exchange contracts from time to time to manage any material risk
associated with anticipated foreign currency sales and purchase transactions.
The carrying amount of the Group’s and Company’s foreign currency denominated monetary assets and monetary
liabilities at the reporting date is as follows:
USD (cash)
EURO (cash)
USD (trade payables)
EURO (other receivables)
JPY trade receivables/(other payables)
USD (other payables)/trade receivables
Foreign currency sensitivity
CONSOLIDATED
2023
$’000
5,094
797
(12,941)
1,087
24
(3)
2022
$’000
12,753
767
(11,923)
113
(22)
1,017
The Group is exposed to EUR, JPY and USD (2022: EUR, JPY and USD).
To mitigate foreign currency risk at reporting date, the Group entered into foreign exchange forward contracts. The Group’s
exposure to foreign exchange rate fluctuations was primarily limited to cash, trade payables and trade receivables
outstanding at reporting date denominated in currencies other than Australian dollar (AUD). The total value of trade
payables denominated in currencies other than the AUD at reporting date was $11,830,000 (2022: $11,831,000). The total
value of trade receivables denominated in currencies other than the AUD at reporting date was -$3,000 (2022: $1,017,000).
The following table details the Group’s sensitivity to a 10% increase and decrease in the AUD against the relevant unhedged
foreign currency. 10% represents management’s assessment of the possible change in foreign exchange rates. The
sensitivity analysis includes only foreign currency denominated monetary items outstanding at 31 December 2023 and 31
December 2022 and adjusts their translation at the period end for a 10% change in foreign currency rates. A positive
number indicates an increase in profit.
CONSOLIDATED
2023
$’000
1,177
(1,438)
(99)
121
(2)
3
2022
$’000
991
(1,212)
(10)
12
2
(2)
Profit or loss (after tax)
- AUD strengthens by 10% against USD
- AUD weakens by 10% against USD
- AUD strengthens by 10% against EUR
- AUD weakens by 10% against EUR
- AUD strengthens by 10% against JPY
- AUD weakens by 10% against JPY
80
Annual Report 2023 — Capral Limited
Notes to the Financial Statements
31 Financial instruments continued
Forward foreign exchange contracts
It is the policy of the Group to enter into forward foreign exchange contracts to cover specific material foreign currency
payments and receipts.
The following table details the forward foreign currency (FC) contracts outstanding at the end of the reporting period:
Foriegn currency
Fair value
2023
31/12/23
FC$’000
2022
31/12/22
FC$’000
2023
2022
31/12/23
$’000
Gain/(Loss)
31/12/22
$’000
Gain/(Loss)
816
5
2,475
320
26,074
420
-
4,620
240
22,336
(25)
-1
(1)
(2)
5
-
-1
-1
(1,988)
(833)
Buy EUR
Buy GBP
Buy JPY
Buy CNH
Buy USD
1 Fair value of the gain/(loss) was less than $1,000, hence, rounded down to nil.
(g) Interest rate risk management
The Group interest rate risk arises from borrowings, cash and derivatives.
The Group is exposed to interest rate risk as the Group borrows funds at floating interest rates. Hedging activities are
evaluated regularly to align with interest rate views and defined risk appetite, ensuring optimal hedging strategies are
applied, by either positioning the balance sheet or protecting interest expense through different interest rate cycles. The
Group’s exposure to interest rate risk at the reporting date was considered insignificant and as a result the Group did not
enter into interest rate options.
The Group’s exposures to interest rates on financial assets and financial liabilities are detailed below.
Interest rate sensitivity
The sensitivity analysis below shows the effect on profit or loss after tax for the Financial Year if there is a change in
interest rates with all other variables held constant. This is determined by applying the change in interest rates to both
derivative and non-derivative instruments at the reporting date that have an exposure to interest rate changes. A 20-basis
point (0.2%) increase and a 20-basis point (0.2%) decrease represents Management’s assessment of the possible change in
interest rates (2022: 110bp or 1.1% increase and 110bp or 1.1% decrease). A positive number indicates an increase in profit.
CONSOLIDATED
2023
$’000
2022
$’000
Profit or loss (after tax)
Impact of a 20bp (2022: 110bp) increase in AUD interest rates
Cash and cash equivalents
83
377
Impact of a 20bp (2022: 110bp) decrease in AUD interest rates
Cash and cash equivalents
(83)
(377)
Capral Limited — Annual Report 2023
81
Notes to the Financial Statements
31 Financial instruments continued
(h) Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the
Group. The Group has exposures to credit risk on cash and cash equivalents, receivables and derivative financial assets.
The credit risk on financial assets of the Group which have been recognised on the statement of financial position, other
than investments in shares, is generally the carrying amount, net of any allowances for doubtful debts.
The Group does not have any significant exposure to any individual customer or counterparty. Major concentrations of
credit risk are in the construction, transport, consumer durable and electrical industries in Australia. The Company has
credit insurance cover which requires ongoing management of credit accounts with monthly reports provided to the
Insurer. Experienced credit management and associated internal policies ensure constant monitoring of the credit risk for
the Company.
There is no concentration of credit risk with respect to receivables as the Group has a large number of customers.
The aging of gross trade receivables is detailed below:
Current
1-30 days
31-60 days
60+ days
CONSOLIDATED
2023
$’000
62,513
18,636
1,337
667
83,153
2022
$’000
70,226
17,744
1,879
594
90,443
82
Annual Report 2023 — Capral Limited
Notes to the Financial Statements
31 Financial instruments continued
(i) Liquidity risk management
Ultimate responsibility for liquidity risk management rests with the Board of Directors, who ensure there is an appropriate
liquidity risk management framework for the management of the Group’s short, medium and long-term funding and
liquidity management requirements. The Group manages liquidity risk by maintaining adequate banking facilities and
reserve borrowing facilities, complying with covenants, monitoring forecast and actual cash flows, and matching the
maturity profiles of financial assets and liabilities. Included in Note 27 is a list of additional undrawn facilities that the Group
has at its disposal to further reduce liquidity risk.
Liquidity and interest risk tables
Financial assets are made up of cash of $59,457,000 (2022: $48,988,000) and trade and other receivables of $89,313,000
(2022: $91,326,000). Cash is liquid and trade and other receivables are expected to be realised on average within 42 days
(2022: 43 days). Cash balances earn 2.76% interest per annum (2022: 2.4%). Trade and other receivables are interest-free.
The following table details the Group’s remaining contractual maturity for its non-derivative financial liabilities. The table
has been prepared based on the undiscounted cash flows of financial liabilities based on the earliest date on which the
Group can be required to pay. The table includes both interest and principal cash flows. The contractual maturity is a fair
representation of management’s expectations of actual repayments.
WEIGHTED
AVERAGE
EFFECTIVE
INTEREST RATE
LESS THAN 1
YEAR
%
$’000
1 - 5
YEARS
$’000
GREATER
THAN
5 YEARS
$’000
CONSOLIDATED
2023
Trade and other payables
Lease liabilities
Other financial liabilities
Borrowings
2022
Trade and other payables
Lease liabilities
Other financial liabilities
Borrowings
-
-
-
-
-
-
-
3.94
106,974
15,558
2,016
-
108,990
112,735
16,158
828
24,083
137,646
-
-
59,353
13,902
-
-
-
-
-
-
53,837
24,037
-
-
-
-
(j) Fair value of financial instruments
The fair values of financial assets, financial liabilities and derivative instruments are determined as follows:
i) the fair value of financial assets and financial liabilities (excluding derivative instruments) are determined in accordance
with generally accepted pricing models based on the discounted cash flow analysis using prices from observable
market data; and
ii) the fair value of derivative instruments are calculated using quoted prices. Where such prices are not available, the
discounted cash flow analysis is employed using observable market data for non-option derivatives. For option
derivatives, option pricing models are used with key inputs sourced from observable market data.
The Directors consider that the carrying amounts of financial assets and financial liabilities recorded at amortised cost in
the financial statements approximate their fair values.
Capral Limited — Annual Report 2023
83
Notes to the Financial Statements
32 Contingent liabilities
Capral’s contingent liabilities in relation to customer claims relating to the supply of non-conforming marine grade plate as
disclosed in the 31 December 2022 Annual Report, has been settled and no further contingent liabilities exist in this regard.
Claims and possible claims, arise in the ordinary course of business against Capral entities. Capral has fully provided for all
known and determinable material claims.
The Company’s bankers have granted guarantees in respect of rental obligations on lease commitments, use of utilities
infrastructure and international trade facilities. At 31 December 2023, these guarantees totalled $4,941,002 (2022:
$4,370,502).
Capral’s bankers have issued letters of credit in respect of Capral’s purchases internationally. At 31 December 2023, these
open letters of credit totalled $5,946,935 (31 December 2022: $6,814,372).
33 Remuneration of auditors
During the year the auditor of the Group and parent entity
and its related practices earned the following remuneration:
Auditor of the Group and parent entity
Audit or review of financial reports of the entity or any entity in the
consolidated entity
Other services:
- tax compliance
- tax consulting
Total remuneration
CONSOLIDATED
2023
$
2022
$
377,600
340,400
39,454
-
417,054
37,250
56,250
433,900
It is the Group’s policy to employ the Company’s auditors, Deloitte Touche Tohmatsu, on assignments additional to their
statutory duties where their expertise and experience is considered invaluable to the assignment.
34 Events after reporting date
No matter or circumstance has arisen since the end of the Financial Year that has significantly affected, or may significantly
affect the Group’s operations, the results of those operations or the Group’s state of affairs in future financial years.
84
Annual Report 2023 — Capral Limited
35 Notes to the cash flow statement
(i) Reconciliation of cash and cash equivalents
Reconciliation of cash and cash equivalents
For the purposes of the Statement of Cash Flows, cash and cash
equivalents includes cash on hand and at bank and short term deposits at
call net of bank overdrafts. Cash as at the end of the financial year as shown
in the Statement of Cash Flows is reconciled to the related items in the
Statement of Financial Position as follows:
Cash at bank and on hand
Notes to the Financial Statements
CONSOLIDATED
2023
$’000
2022
$’000
59,457
59,457
48,988
48,988
(ii) Reconciliation of profit for the year to net cash flows from operating activities
CONSOLIDATED
Profit for the year
Non-cash items:
Depreciation and amortisation - owned assets
Depreciation and amortisation – right of use assets
Loss on sale of property, plant and equipment
Income tax benefit
Share-based payments expense
Interest income reclassified to investing activities
Change in assets and liabilities:
Decrease in current receivables
Increase in financial assets
(Decrease)/increase in inventories
Increase in prepayments
Decrease in trade and other payables
Increase in employee benefit provisions
Decrease in other provisions
Increase/(decrease) in deferred income
Increase in other financial liabilities
Net cash provided by operating activities
2023
$’000
31,839
8,307
14,702
1
-
1,045
(805)
2,012
-
28,524
(1,863)
(7,096)
98
(2,920)
9
1,188
75,041
2022
$’000
40,753
7,533
13,785
-
(8,365)
982
(125)
4,964
(11)
(24,489)
(125)
(27,594)
2,578
(3,525)
(60)
761
7,062
(iii) Details of finance facilities are included in note 27 to the financial statements.
Capral Limited — Annual Report 2023
85
Notes to the Financial Statements
35 Notes to the cash flow statement continued
(iv) Movement in financial activities
The following table details changes in the Group’s liabilities arising from financial activities, including both cash and
non-cash changes. Liabilities arising from financing activities are those for which cash flows were, or future cash flows will
be, classified in the Group’s statement of cash flows as cash flows from financing activities.
Movements in financing activities
Lease liabilities
Opening balance
Financing cash flows
New leases
Retired or changes to leases
Closing balance
CONSOLIDATED
2023
$’000
94,032
(15,817)
1,921
8,677
88,813
2022
$’000
103,540
(14,548)
5,804
(764)
94,032
(v) Non-cash financing activities
There were no non-cash financing activities other than above during the Financial Year or the 2022 year.
86
Annual Report 2023 — Capral Limited
36 Parent entity disclosures
Financial Position
Assets
Current assets - third parties
Total assets
Liabilities
Current liabilities - third parties
Total liabilities
Equity
Issued capital
Accumulated losses
Equity-settled compensation reserve
Asset revaluation reserve
Employee share reserve
Share buy-back reserve
Dividend reserve
Total Equity
Financial performance
Profit for the year
Other comprehensive income
Total comprehensive profit for the year
Contingent liabilities of the parent entity
Refer note 32
Notes to the Financial Statements
COMPANY
2023
$’000
277,783
423,677
139,521
220,223
424,771
(335,250)
13,936
3,074
(2,320)
5,560
93,683
203,454
31,808
-
31,808
2022
$’000
296,060
445,137
171,615
256,658
433,433
(335,219)
12,891
3,074
(38)
-
74,338
188,479
40,818
-
40,818
Commitments for the acquisition of property, plant and equipment by the parent entity
Commitments for the acquisition of property, plant and equipment
by the parent entity:
Within one year
3,000
1,880
Capral Limited — Annual Report 2023
87
Notes to the Financial Statements
37 Share-based payments
Performance Share Rights
Executive and Senior Management
Refer to section 2 of the Remuneration Report for details of rights issued under the Long Term Incentive Plan.
The following share-based payment arrangements were in existence during the current reporting period:
PERFORMANCE RIGHT
SERIES (LTIP)
NUMBER
AS AT 31 DEC 23
GRANT
DATE
LAST
TESTING
DATE
EXERCISE
PRICE
$
FAIR VALUE AT
GRANT DATE
$4
Issued 3 March 20211
Issued 3 March 20211
Issued 8 March 20222
Issued 8 March 20222
Issued 6 March 20233
Issued 6 March 20233
79,850
79,850
62,750
62,750
47,750
47,750
3/03/2021
31/12/2023
3/03/2021
31/12/2023
8/03/2022
31/12/2024
8/03/2022
31/12/2024
6/03/2023
31/12/2025
6/03/2023
31/12/2025
Issued 24 March 20233
18,300
24/03/2023
31/12/2025
Issued 24 March 20233
18,300
24/03/2023
31/12/2025
Issued 22 May 20233
Issued 22 May 20233
4,500
4,500
22/05/2023
31/12/2025
22/05/2023
31/12/2025
-
-
-
-
-
-
-
-
-
-
4.180
5.490
4.910
6.780
5.090
6.500
4.730
6.160
4.010
5.850
1 In accordance with the terms of the LTIP arrangement, performance rights issued during the financial year ended 31 December
2021 have an average vesting date of 1 March 2024.
2 In accordance with the terms of the LTIP arrangement, performance rights issued during the financial year ended 31 December
2022 have an average vesting date of 1 March 2025.
3 In accordance with the terms of the LTIP arrangement, performance rights issued during the financial year ended 31 December
2023 have an average vesting date of 1 March 2026.
The following share-based payment arrangements were in existence during the comparative reporting period:
PERFORMANCE RIGHT
SERIES (LTIP)
NUMBER
AS AT 31 DEC 23
GRANT
DATE
LAST
TESTING
DATE
EXERCISE
PRICE
$
FAIR VALUE AT
GRANT DATE
$4
Issued 3 March 20201
Issued 3 March 20201
Issued 3 March 20212
Issued 3 March 20212
Issued 8 March 20223
Issued 8 March 20223
90,325
90,325
82,350
82,350
69,500
69,500
3/03/2020
31/12/2022
3/03/2020
31/12/2022
3/03/2021
31/12/2023
3/03/2021
31/12/2023
8/03/2022
31/12/2024
8/03/2022
31/12/2024
-
-
-
-
-
-
2.100
2.820
4.180
5.490
4.910
6.780
1 In accordance with the terms of the LTIP arrangement, performance rights issued during the financial year ended 31 December
2020 have an average vesting date of 1 March 2023.
2 In accordance with the terms of the LTIP arrangement, performance rights issued during the financial year ended 31 December
2021 have an average vesting date of 1 March 2024.
3 In accordance with the terms of the LTIP arrangement, performance rights issued during the financial year ended 31 December
2022 have an average vesting date of 1 March 2025..
4 Shown as post 3 November 2020 share consolidation equivalent fair value.
88
Annual Report 2023 — Capral Limited
Notes to the Financial Statements
37 Share-based payments continued
PERFORMANCE RIGHTS (LTIP)
Inputs into the model
22 MAY
2023
24 MARCH
2023
06 MARCH
2023
08 MARCH
2022
03 MARCH
2021
03 MARCH
2020
Grant date
Dividend yield
Risk free yield
Expected volatility
22/05/2023
24/03/2023
6/03/2023
8/03/2022
3/03/2021
3/03/2020
6.9%
3.3%
34%
7.0%
2.9%
35%
7.0%
3.5%
36%
7.9%
1.6%
45%
6.5%
0.3%
55%
9.5%
0.5%
47.5%
Last testing date
31/12/2025
31/12/2025
31/12/2025
31/12/2024
31/12/2023
31/12/2022
Exercise price
n.a
n.a
n.a
n.a
n.a
n.a
Share price at grant date^
Performance right life
$7.040
3 years
$7.500
3 years
$7.950
3 years
$8.570
3 years
$6.670
3 years
$3.750
3 years
^ Shown as post 3 November 2020 share consolidation equivalent share price.
Managing Director
During the Financial Year, 44,400 rights were issued to Mr A. Dragicevich.
During the comparative financial year, 49,000 rights were issued to Mr A. Dragicevich.
The following rights were in existence during the current reporting period, subject to the achievement of performance
conditions and have been independently valued as follows:
PERFORMANCE RIGHT
SERIES (LTIP)
NUMBER AS AT
31 DEC 23
GRANT
DATE
LAST
TESTING
DATE
EXERCISE
PRICE
$
FAIR VALUE AT
GRANT DATE
$4
Issued 28 April 20211
Issued 28 April 20211
Issued 27 April 20222
Issued 27 April 20222
Issued 27 April 20233
Issued 27 April 20233
43,150
28/04/2021
31/12/2023
43,150
28/04/2021
31/12/2023
24,500
27/04/2022
31/12/2024
24,500
27/04/2022
31/12/2024
22,200
27/04/2023
31/12/2025
22,200
27/04/2023
31/12/2025
-
-
-
-
-
-
$5.170
$6.430
$5.820
$7.770
$4.250
$5.940
1 In accordance with the terms of the LTIP arrangement, performance rights issued during the Financial Year ended 31 December
2020 have an average vesting date of 1 March 2024.
2 In accordance with the terms of the LTIP arrangement, performance rights issued during the Financial Year ended 31 December
2021 have an average vesting date of 1 March 2025.
3 In accordance with the terms of the LTIP arrangement, performance rights issued during the Financial Year ended 31 December
2022 have an average vesting date of 1 March 2026.
4 Shown as post 3 November 2020 share consolidation equivalent fair value.
Capral Limited — Annual Report 2023
89
Notes to the Financial Statements
37 Share-based payments continued
The following rights were in existence during the comparative reporting period, subject to the achievement of performance
conditions and have been independently valued as follows:
PERFORMANCE RIGHT
SERIES (LTIP)
NUMBER
AS AT 31 DEC 22
GRANT
DATE
LAST
TESTING
DATE
EXERCISE
PRICE
$
FAIR VALUE AT
GRANT DATE
$4
Issued 29 April 20201
Issued 29 April 20201
Issued 28 April 20212
Issued 28 April 20212
Issued 27 April 20223
Issued 27 April 20223
51,335
29/04/2020
31/12/2022
51,335
29/04/2020
31/12/2022
43,150
28/04/2021
31/12/2023
43,150
28/04/2021
31/12/2023
24,500
27/04/2022
31/12/2024
24,500
27/04/2022
31/12/2024
-
-
-
-
-
-
$1.560
$2.040
$5.170
$6.430
$5.820
$7.770
1 In accordance with the terms of the LTIP arrangement, performance rights issued during the Financial Year ended 31 December
2020 have an average vesting date of 1 March 2023.
2 In accordance with the terms of the LTIP arrangement, performance rights issued during the Financial Year ended 31 December
2021 have an average vesting date of 1 March 2024.
3 In accordance with the terms of the LTIP arrangement, performance rights issued during the Financial Year ended 31 December
2022 have an average vesting date of 1 March 2025.
4 Shown as post 3 November 2020 share consolidation equivalent fair value
Inputs into the model
Grant date
Dividend yield
Risk free yield
Expected volatility
Last testing date
Share price at grant date^
Performance right life
27 APRIL
2023
27 APRIL
2022
28 APRIL
2021
29 APRIL
2020
27/4/2023
27/4/2022
28/4/2021
29/4/2020
6.9%
3.0%
34%
7.1%
2.6%
45%
5.8%
0.3%
55%
12.2%
0.2%
47.5%
31/12/2025
31/12/2024
31/12/2023
31/12/2022
$7.190
3 years
$9.510
3 years
$7.580
3 years
$2.880
3 years
^ Shown as post 3 November 2020 share consolidation equivalent share price.
The following table reconciles the outstanding securities granted to the Managing Director and senior management at the
beginning and end of the Financial Year:
Performance rights
Number of share performance rights:
Balance at the beginning of the financial year
Granted during the financial year
Forfeited during the financial year
Vested during the financial year
Lapsed during the financial year
Balance at the end of the financial year
2023
2022
722,320
185,500
(23,500)
754,310
188,000
-
(278,320)
(219,990)
-
-
606,000
722,320
The performance rights outstanding at the end of the Financial Year were 606,000 (2022: 722,320), with a weighted
average remaining contractual life of 0.9 years.
90
Annual Report 2023 — Capral Limited
38 Key management personnel compensation
The aggregate compensation made to directors and other members of key management personnel of the Company and
the Group is set out below:
Notes to the Financial Statements
Short-term benefits
Post-employment benefits
Other long-term benefits
Termination benefits
Share-based payments
CONSOLIDATED
2023
$
2,038,079
97,033
-
-
2022
$
2,023,258
100,645
-
-
575,732
488,720
2,710,844
2,612,623
Capral Limited — Annual Report 2023
91
Directors' Declaration
The directors declare that:
a)
in the directors' opinion, there are reasonable grounds to believe that Capral will be able to pay its debts as and
when they become due and payable;
b)
in the directors' opinion, the attached financial statements and notes thereto are in accordance with the
Corporations Act 2001, including compliance with accounting standards and giving a true and fair view of the
financial position and performance of Capral and the consolidated entity;
c)
in the directors’ opinion, the financial statements and notes thereto are in accordance with International Financial
Reporting Standards issued by the International Accounting Standards Board; and
d)
the directors have been given declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of the directors made pursuant to section 295(5) of the Corporations Act 2001.
On behalf of the directors
R. L. Wood-Ward
A. M. Dragicevich
Chairman
Managing Director
Sydney
23 February 2024
92
Annual Report 2023 — Capral Limited
Independent Auditor’s Report
to the Members of Capral Limited
69
Deloitte Touche Tohmatsu
ABN 74 490 121 060
8 Parramatta Square
10 Darcy Street
Parramatta, NSW, 2150
Australia
Phone: +61 2 9840 7000
www.deloitte.com.au
Independent Auditor’s Report to the Members of
Capral Limited
RReeppoorrtt oonn tthhee AAuuddiitt ooff tthhee FFiinnaanncciiaall RReeppoorrtt
Opinion
We have audited the financial report of Capral Limited (the “Company”) and its subsidiaries (the “Group”) which
comprises the consolidated statement of financial position as at 31 December 2023, the consolidated
statement of profit or loss, the consolidated statement of profit or loss and other comprehensive income, the
consolidated statement of changes in equity and the consolidated statement of cash flows for the year then ended,
and notes to the financial statements, including material accounting policy information and other explanatory
information, and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001,
including:
Giving a true and fair view of the Group’s financial position as at 31 December 2023 and of its financial
performance for the year then ended; and
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
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 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.
We confirm that the independence declaration required by the Corporations Act 2001, which has been given to
the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s
report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
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. These matters were addressed in the context of our audit of the
financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on
these matters.
Liability limited by a scheme approved under Professional Standards Legislation.
Member of Deloitte Asia Pacific Limited and the Deloitte organisation.
Capral Limited — Annual Report 2023
93
Independent Auditor’s Report
Key Audit Matter
IImmppaaiirrmmeenntt oorr rreevveerrssaall ooff ttaannggiibbllee aanndd
iinnttaannggiibbllee aasssseettss
As at 31 December 2023, the Group had
goodwill of $3.070m, other intangible assets of
$0.560m, property, plant and equipment of
$57.518m
(net of previously recognised
impairment losses of $34.069m) and right-of-
use assets of $62.710m.
Goodwill and indefinite life intangible assets
are required to be tested for impairment
annually and whenever an
impairment
indicator exists. As a result, management
completed impairment testing at 31 December
2023 to assess the recoverability of the
carrying value of tangible and intangible assets,
including goodwill and other intangible assets,
property, plant and equipment and right-of-
use assets. This is performed through a value-
flow model
in-use
(“impairment model”).
discounted
cash
Note 1d outlines management’s critical
judgements and estimates
in relation to
impairment of goodwill as well as the carrying
value of the property, plant and equipment and
right of use assets which requires significant
judgement by management in assessing for
any indicators of impairment and preparing a
value-in-use discounted cash flow model,
including;
estimating future growth rates,
discount rates, and
the expected cash flows and capital
expenditure.
RReeccooggnniittiioonn aanndd rreeccoovveerraabbiilliittyy ooff ddeeffeerrrreedd ttaaxx
aasssseett
As disclosed in Note 11, at 31 December 2023,
the Group has recognised deferred tax assets
of $23.70m and unrecognised and unused tax
losses and temporary differences of $42.69m
and $11.80m respectively.
Deferred tax assets in respect of tax losses and
temporary differences are recognised when it
is probable that the Group will have future
70
How the scope of our audit responded to the Key Audit
Matter
Our procedures included, but were not limited to:
Assessing the process undertaken and conclusions
reached by management in determining indicators
of impairment or reversal of impairment;
Reviewing the FY24 budget, the basis on which it has
been prepared, and assessing the historical accuracy
of forecasting by management;
Assessing reasonableness of assumptions in the
impairment model including:
o discount rate;
o forecasted
expenditure;
capital
flows
cash
and
o lease payments and sustaining capital
expenditures on leases;
o growth rates, in particular with reference
to historic growth rates and forecast
macro-economic
impacting
demand in the industry; and
conditions
o terminal growth rate.
Engaging our valuation specialists to assist with
evaluating the appropriateness of the discount rate
adopted;
Recalculating the mathematical accuracy and
integrity of the impairment model;
Performing sensitivity analysis on the relevant
assumptions and inputs in the impairment model, to
assess the extent of change in those assumptions
that either individually or collectively would result in
impairment or reversal of impairment; and
Assessing the headroom in the impairment model
and whether it is indicative of a requirement to
reverse previously recorded impairment losses.
We also assessed the appropriateness of the disclosures in
Notes 1c(k), 1d, 14, 15, 16 and 17 to the financial statements.
Our procedures included, but were not limited to:
Engaging our tax specialists to assist us in assessing
losses and temporary
the availability of tax
differences to the Group;
Reviewing management’s forecasts in respect of the
Group’s taxable income;
Assessing the key assumptions in management’s
calculations including:
o Comparing
the
the
assumptions used to the
inputs and
assumptions in management’s impairment
model;
consistency of
o Assessing whether the period used to
forecast taxable profits is appropriate;
94
Annual Report 2023 — Capral Limited
Independent Auditor’s Report
71
likelihood of the Group
o Assessing the
achieving these forecasts.
We also assessed the appropriateness of the Group’s
disclosure in respect of the deferred tax assets including tax
losses and temporary deductible differences in the notes to
the financial statements.
taxable profits against which such losses and
temporary differences will be utilised.
judgement
The Group’s ability to recognise deferred tax
assets in relation to tax losses and temporary
differences is assessed by management at each
reporting period. Significant
is
required by management in their assessment
of the quantum of available tax losses and
deductible
and
whether it is probable that some or all of these
tax losses and temporary differences can be
future. This
utilised
assessment includes estimating the Group’s
future shorter term taxable income and the
probability of those forecasts being met.
foreseeable
differences,
temporary
the
in
Other Information
The directors are responsible for the other information. The other information comprises the Chairman’s Report,
Managing Director’s Operations and Financial Review, ESG and Sustainability Report and Directors’ Report, which
we obtained prior to the date of this auditor’s report, and also includes the following information which will be
included in the Group’s annual report (but does not include the financial report and our auditor’s report thereon):
Members Details and Corporate Directory, which is expected to be made available to us after that date.
Our opinion on the financial report does not cover the other information and we do not and will not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information identified
above 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.
When we read the Members Details and Corporate Directory, if we conclude that there is a material misstatement
therein, we are required to communicate the matter to the directors and use our professional judgement to
determine the appropriate action.
Responsibilities of the Directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the directors determine is necessary to enable the preparation of the financial report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the Group to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic
alternative but to do so.
Auditor’s Responsibilities for the Audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
Capral Limited — Annual Report 2023
95
Independent Auditor’s Report
72
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 this financial report.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional judgement and
maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial report, whether due to fraud or error,
design and perform audit procedures responsive to those risks, and obtain audit evidence that is sufficient and
appropriate to provide a basis for our opinion. The risk of not detecting a material misstatement resulting from
fraud is higher than for one resulting from error, as fraud may involve collusion, forgery, intentional omissions,
misrepresentations, or the override of internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit procedures that are
appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the
Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting estimates and
related disclosures made by the directors.
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and, based on
the audit evidence obtained, whether a material uncertainty exists related to events or conditions that may
cast significant doubt on the Group’s ability to continue as a going concern. If we conclude that a material
uncertainty exists, we are required to draw attention in our auditor’s report to the related disclosures in the
financial report or, if such disclosures are inadequate, to modify our opinion. Our conclusions are based on the
audit evidence obtained up to the date of our auditor’s report. However, future events or conditions may cause
the Group to cease to continue as a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the disclosures, and
whether the financial report represents the underlying transactions and events in a manner that achieves fair
presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or business
activities within the Group to express an opinion on the financial report. We are responsible for the direction,
supervision and performance of the Group’s audit. We remain solely responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the audit
and significant audit findings, including any significant deficiencies in internal control that we identify during our
audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may reasonably
be thought to bear on our independence, and where applicable, actions taken to eliminate threats or safeguards
applied.
From the matters communicated with the directors, we determine those matters that were of most significance
in the audit of the financial report of the current period and are therefore the key audit matters. We describe
these matters in our auditor’s report unless law or regulation precludes public disclosure about the matter or
when, in extremely rare circumstances, we determine that a matter should not be communicated in our report
because the adverse consequences of doing so would reasonably be expected to outweigh the public interest
benefits of such communication.
RReeppoorrtt oonn tthhee RReemmuunneerraattiioonn RReeppoorrtt
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 14 to 25 of the Directors’ Report for the year ended
31 December 2023.
In our opinion, the Remuneration Report of Capral Limited for the year ended 31 December 2023, complies with
section 300A of the Corporations Act 2001.
96
Annual Report 2023 — Capral Limited
Independent Auditor’s Report
73
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.
DELOITTE TOUCHE TOHMATSU
X Delaney
Partner
Chartered Accountants
Parramatta, 23 February 2024
Capral Limited — Annual Report 2023
97
Member Details
Top holders (grouped) as of 29/02/24
1 Twenty Largest Holders
Details of Capral’s twenty largest shareholders were as follows:
RANK NAME
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
CITICORP NOMINEES PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
PRUDENTIAL NOMINEES PTY LTD
NATIONAL EXCHANGE PTY LTD
MR ANTHONY MATTHEW DRAGICEVICH
NATIONAL NOMINEES LIMITED
CAPRAL LIMITED
BNP PARIBAS NOMINEES PTY LTD
MR ANDREW ROY NEWBERY SISSON
MERRILL LYNCH (AUSTRALIA) NOMINEES PTY LIMITED
AGO PTY LTD
BNP PARIBAS NOMINEES PTY LTD
MR JOHN GEORGE WHITING + MRS DIANA PATRICIA WHITING
RAVENSCOURT PROPRIETARY LIMITED
MR ANTHONY MATTHEW DRAGICEVICH
SOUTHERN STEEL INVESTMENTS PTY LIMITED
MORGAN STANLEY AUSTRALIA SECURITIES (NOMINEE) PTY LIMITED
MRS ANTONIA CAROLINE COLLOPY
MRS GLENDA CLAIRE ORGILL
UNITS
UNIT%
3,546,238
20.05
1,983,379
11.21
1,547,199
1,420,000
700,000
379,232
316,166
287,526
196,424
155,000
153,865
145,950
136,550
133,334
122,571
120,895
114,820
110,706
102,847
97,292
8.75
8.03
3.96
2.14
1.79
1.63
1.11
0.88
0.87
0.83
0.77
0.75
0.69
0.68
0.65
0.63
0.58
0.55
Totals: Top 20 holders of ORDINARY FULLY PAID SHARES (Total)
Total Remaining Holders Balance
11,769,994
66.55
5,917,016
33.45
98
Annual Report 2023 — Capral Limited
Member Details
2 Substantial Shareholders
Substantial shareholders as notified to Capral in accordance
with the Corporations Act 2001:
NAME
NUMBER OF SHARES % OF SHARES HELD AS NOTIFIED ON
Allan Gray Australia PTY LTD
National Exchange Pty Ltd
Perpetual Limited
First Sentier Investors Holdings Pty Limited / Mitsubishi
UFC Financial Group Inc
Total
3,871,621
2,100,000
1,206,954
984,502
8,163,077
21.79
11.86
6.69
25/03/2022
20/12/2023
03/04/2023
5.50
24/10/2023
45.84
3 Number of holders
a) Quoted equity securities: There were 2,426 holders of ordinary shares.
b) Unquoted equity securities – options: There were Nil unquoted options.
c) Unquoted equity securities – performance rights: There were 606,000 unquoted performance rights issued to 25
holders under the Capral Long Term Incentive Plan. There is 1 holder who holds 20% or more performance rights
under this plan.
4 Voting Rights
a) Voting rights attaching to the fully paid ordinary shares are, on a show of hands, one vote per person present as a
member proxy, attorney, or representative thereof and on a poll, one vote per share for every member present in
person or by proxy or by attorney or by representative.
b) Holders of options and performance rights do not have any voting rights on the equity securities held by them.
Ordinary shares issued on exercise of options or vesting of performance rights will carry the same voting rights
as all other fully paid ordinary shares of Capral.
Capral Limited — Annual Report 2023
99
Member Details
5 Distribution of Equity Securities
(a) Quoted ordinary shares
RANGE OF SHARES
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
(b) Unquoted performance rights
RANGE OF SHARES
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
Total
NUMBER OF HOLDERS
1,545
617
133
112
19
2,426
NUMBER OF HOLDERS
0
5
3
16
1
25
6 Marketable parcels
The number of shareholders holding less than a marketable parcel* of shares is 359 holders.
* Minimum parcel size of shares: 50
7 On-market buy back
There is no current on-market buy back. On-market buy back announced for up to 10% of issued shares to
commence on or after 11 March 2024.
100
Annual Report 2023 — Capral Limited
Corporate Directory
Capral's Registered Office
Auditor
71 Ashburn Road
Bundamba QLD 4304
Telephone +61 (07) 3816 7000
Fax +61 (07) 3816 7111
Capral's Principal Administration
Office/Investor Enquiries
15 Huntingwood Drive
Huntingwood NSW 2148
Telephone +61 (02) 9682 0710
Email InvestorRelations@capral.com.au
Share Registry
Computershare Investor Services Pty Limited
ABN 48 078 279 277
Level 3, 60 Carrington Street
Sydney NSW 2000
Telephone 1300 855 080
Deloitte Touche Tohmatsu
ABN 74 490 121 060
8 Parramatta Square
10 Darcy Street
Parramatta NSW 2150
Securities Exchange Listing
Capral’s shares are quoted on the Australian
Securities Exchange (Code: CAA).
Company Secretary
Mr T Campbell (Joint)
Ms L Osbich (Joint)
Corporate Governance Statement
capral.com.au/investor-centre/
Capral Limited — Annual Report 2023
101
CAPRAL LIMITED
CAPRAL LIMITED
CAPRAL LIMITED
ABN 78 004 213 692
ABN 78 004 213 692
ABN 78 004 213 692
71 ASHBURN RD,
71 ASHBURN RD,
71 ASHBURN RD,
BUNDAMBA QLD 4304
BUNDAMBA QLD 4304
BUNDAMBA QLD 4304
TEL 07 3816 7000
TEL 07 3816 7000
TEL 07 3816 7000
FAX 07 3816 7111
FAX 07 3816 7111
FAX 07 3816 7111
CAPRAL.COM.AU
CAPRAL.COM.AU
CAPRAL.COM.AU