XRF SCIENTIFIC LIMITED
ABN 80 107 908 314
ANNUAL FINANCIAL REPORT
FOR THE YEAR ENDED 30 JUNE 2024
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 1
CONTENTS
CHAIRMAN’S LETTER
3
DIRECTORS’ REPORT
4
AUDITOR’S INDEPENDENCE DECLARATION
18
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME
19
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
20
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
21
CONSOLIDATED STATEMENT OF CASH FLOWS
22
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
23
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
56
DIRECTORS’ DECLARATION
57
AUDITOR’S REPORT
58
SHAREHOLDER INFORMATION
62
CORPORATE DIRECTORY
64
FINANCIAL RESULTS SUMMARY
2 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
Sales Revenue up 8%
Net Profit After Tax up 16%
Operating Cash Flow down 4%
Earnings Per Share up 15%
31,293
40,007
55,175
59,836
FY21
FY22
FY23
FY24
Sales Revenue ($'000)
5,130
6,084
7,686
8,885
FY21
FY22
FY23
FY24
Net Profit After Tax ($'000)
4,511
3,154
8,417
8,090
FY21
FY22
FY23
FY24
Operating Cash Flow ($'000)
3.8
4.5
5.6
6.4
FY21
FY22
FY23
FY24
Earnings Per Share (Cents)
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 3
CHAIRMAN’S LETTER
Dear Fellow XRF Shareholder,
XRF’s strong operating performance has continued,
resulting in the delivery of another record financial
result. Sales grew strongly with total revenue
exceeding $60m for the first time. The increase in
sales, together with an ongoing focus on cost
control, productivity improvements and margins,
ensured that Net Profit after Tax was significantly
higher. While XRF’s core businesses all performed
well, the strong result from Orbis Mining (now 100%
owned) and initial sales of our TGA machine to high
quality reference customers is most encouraging
and positions XRF particularly well for further
growth.
Our Consumables business had an outstanding year
despite the challenges of managing the impact of a
falling lithium input price. Product sales volumes
were at record levels reflecting further new
customers and an increase in sales to existing
purchasers. An ongoing focus on product quality,
new product and production process initiatives, and
customer service ensures that this business is well
placed to continue to build on its position as a global
market leader.
While our Precious Metals fabrication business had
another strong year its results were held back by a
poor result from our German office due to weaker
local economic conditions. The ongoing work in our
Melbourne plant to enhance production technology,
broaden our range of customised products and
improve product quality is resonating with our client
base and has delivered strong growth in sales and
profits with new customer relationships continuing
to be established.
Our Capital Equipment business had a very good
year with an increase in machine sales and further
growth in operating profit driven in part by improved
margins. Now that our TGA machine is in the market
we will be focusing on driving sales through our
global distributor network. Furthermore our recent
acquisition of the remaining 50% of Orbis Mining will
increase our share of their growing profits which are
being driven by the strong reputation of their
industry leading crushers.
Once again XRF’s outstanding financial performance
has allowed us to increase fully franked dividends
paid to our shareholders while investing further in
the business and strengthening our balance sheet.
Across all of our businesses we continue to see
opportunities for ongoing growth and improved
shareholder returns. We also actively monitor
acquisition opportunities in adjacent sectors that
will be value accretive.
In closing I would like to thank all of XRF’s talented
and committed team, ably led by our Managing
Director, Vance Stazzonelli, and my fellow directors
for their significant contribution and ongoing effort
in delivering yet another outstanding financial result
in a challenging global environment.
Fred S Grimwade
Chairman
FINANCIAL RESULTS SUMMARY
4 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
DIRECTORS’ REPORT
Your directors present their report on the company XRF Scientific Limited and its controlled entities for the
financial year ended 30 June 2024.
DIRECTORS
The names of the directors in office at any time during or since the end of the financial year are:
Fred Grimwade
Vance Stazzonelli
David Brown
David Kiggins
Directors have been in office since the start of the financial year to the date of this report unless otherwise stated.
PRINCIPAL ACTIVITY
The principal activity of the economic entity during the financial year was the business of manufacturing and
marketing precious metal products, specialised chemicals and instruments for the scientific, analytical and
mining industries. No significant change in the nature of these activities occurred during the year.
DIVIDENDS – XRF SCIENTIFIC LIMITED AND CONTROLLED ENTITIES
Dividends paid to members during the financial year were as follows:
2024
2023
$
$
Final dividend for the prior financial year
4,522,643
3,397,304
Amounts paid during the current period include a final dividend of 3.3 cents per share (FY23: 2.5 cents), paid to
eligible holders of 137,049,775 shares (FY23: 135,892,049).
In addition, since the end of the financial year the directors have declared the payment of a fully franked final
dividend of 3.9 cents per share to be paid on 27 September 2024 out of retained earnings at 30 June 2024.
DIRECTORS’ REPORT
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 5
REVIEW OF OPERATIONS
A review of operations during the financial year and the results of those operations found that the economic entity
continued to engage in its principal activity. The results and financial position are disclosed in the attached
financial statements.
The consolidated entity has produced a Net Profit After Tax (NPAT) of $9,496,873 for the year ended 30 June 2024,
compared with $8,181,046 for the previous year.
Details of the results for the financial year ended 30 June 2024 are as follows:
2024
2023
Increase
over prior year
$
$
%
Total revenue and other income
60,128,265
55,301,115
9
Net profit after tax
9,496,873
8,181,046
16
Net profit attributable to members
8,885,264
7,685,827
16
Basic earnings per share – (cents per share)
6.4
5.6
15
Diluted earnings per share – (cents per share)
6.4
5.6
15
OPERATING RESULTS
XRF Scientific Ltd (“XRF” or “Company” or “Group”) is pleased to report its June 2024 full-year results to
shareholders. The Company has generated a record full-year result with revenue of $60.1m and a 16% increase in
Net Profit After Tax to $8.9m.
During the year we saw strong levels of activity across the divisions, with the mining industry being the main driver
of activity. International sales growth continued in key markets across Europe, Asia and the Americas.
The Board has declared a final fully franked dividend of 3.9 cents per share which is up by 18% on last year.
Our balance sheet remains robust with $12.0m in cash and $1.6m in debt at 30 June 2024. $1.3m of debt for our
Melbourne platinum factory is now in short-term due to the three-year loan period expiring in October 2024. We
expect this loan to be rolled over during 1H25.
The Consumables division had another strong year, generating a profit before tax of $5.7m from revenue of
$18.8m. The mining sector remained the key driver of activity, in which our products are consumed for sample
testing processes across production and exploration. Product volumes continue to grow into international
markets and new significant customers were acquired.
Lithium chemicals are a key production input and began reducing in price during the year. As a result, selling
prices and production costs are affected, with profit per unit sold remaining steady. This trend is expected to
continue into FY25, which should have a positive impact of reducing working capital requirements.
The Precious Metals division delivered revenue of $21.5m and a profit before tax of $3.6m. We experienced high
levels of reoccurring orders from mining customers, as increased sample testing requires regular recycling of
spent platinum labware products. In addition, a high level of machine orders is driving the sale of significant
amounts of new platinum labware products. Economic conditions in Germany were challenging, with the office’s
revenue and profit before tax down on FY23 by $3.2m and $0.8m. Germany’s results are expected to improve in
FY25, based on current market activity.
DIRECTORS’ REPORT
6 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
OPERATING RESULTS continued
The Capital Equipment division delivered a profit before tax of $4.6m from revenue of $21.8m. Demand for our
capital equipment products was very robust during the year. The demand is driven by a mix of mining and
industrial customers globally. International sales are growing, with certain countries in the Americas and Asia
demonstrating strong growth. Following the launch in June 2023, the first xrTGA sales were achieved during the
year to high quality reference sites. A number of new products are currently under development, which are
expected to be released through the course of FY25. New products include both next generation upgrades to
existing machines and new additions to the product range.
Included in the result, Orbis Mining generated revenue of $5.8m and total profit before tax of $1.7m (50% of PBT
allocated to non-controlling interest). International sales are gaining momentum, particularly in the Americas
where significant sales have been achieved. The year included the first sale of a crusher system into Brazil to an
iron ore mining company.
Post year-end we announced the acquisition of the remaining 50% in Orbis Mining Pty Ltd (Orbis), and subsequent
completion on 26 July 2024. The acquisition price was $3.91m for the remaining 50% shares in Orbis. The price
was based on a 5x multiple of average FY23 and FY24 EBIT of $1.6m, at a rate of 50%. The acquisition was settled
in 50% cash and 50% in XRF shares at a 10-day VWAP of $1.47. The business is fully integrated into XRF’s existing
operating structure and led by General Manager and co-founder Brad Hunting. We expect significant growth from
Orbis in the years ahead, based on the size of the potential markets, and the quality and advantages of the
products. New complementary Orbis products are planned for launch during FY25.
Our next trading update will be provided via the September quarter report in October.
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
On 9 July 2024, XRF announced that it had exercised the call option to acquire the remaining 50% of Orbis Mining,
with the acquisition completed on 25 July 2024.
A final dividend of 3.9 cents per share fully franked (FY23: 3.3 cents per share fully franked) was declared on 19
August 2024, with a record date of 13 September 2024 and payment date of 27 September 2024.
There were no other events subsequent to the reporting date which have significantly affected or may significantly
affect the XRF Scientific Limited operations, results or state of affairs in future years.
DIRECTORS’ REPORT
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 7
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
The Group will continue to pursue its objectives of increasing profitability and market capitalisation during the
next financial year. Strategies to achieve these objectives include geographic expansion initiatives and new
product development. The Group will also consider opportunities to acquire complementary manufacturing
businesses in the laboratory supply and precious metals sectors.
Likely results in the operations of the Group and the expected results of those operations in the future financial
year have not been included in this report, as the disclosure of such information may lead to commercial
prejudice to the Group.
SIGNIFICANT CHANGES IN STATE OF AFFAIRS
There have been no significant changes in the affairs of the Group.
ENVIRONMENTAL REGULATION
All companies within the Group continued to comply with all environmental requirements. Wherever possible,
carbon emissions have been limited, and new production techniques adopted to reduce energy use. The Directors
have considered compliance with the National Greenhouse and Energy Reporting Act 2007 which requires entities
to report greenhouse gas emissions and energy use. For the measurement period 1 July 2023 to 30 June 2024 the
directors have assessed that there are no current reporting requirements, but the Company may be required to do
so in the future. The economic entity is also subject to the environmental regulations under the laws of the
Commonwealth or of a State or Territory in which it operates. The Directors are not aware of any breaches of
these regulations.
CORPORATE GOVERNANCE DISCLOSURE
The Group’s Corporate Governance Statement for the year ended 30 June 2024 can be found at
www.xrfscientific.com/corporate-governance. The statement also summarises the extent to which the Group has
complied with the Corporate Governance Council’s recommendations.
DIRECTORS’ REPORT
8 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
INFORMATION ON DIRECTORS
Fred Grimwade
Chairman (Non-Executive)
Date of appointment:
1 May 2012 (12 years); Chairman since 29 October 2018 (6 years)
Qualifications:
Bachelor of Commerce and Law, Master of Business Administration, Fellow of the
Governance Institute of Australia, Fellow of the Australian Institute of Company Directors,
and Life Member of the Financial Services Institute of Australasia
Experience:
Has held general management positions at Colonial Agricultural Company, the Colonial
Group, Western Mining Corporation and Goldman, Sachs & Co. Currently a Principal and
Director of Fawkner Capital.
Other current directorships:
Non-Executive Director of Australian United Investment Company Ltd (since March 2014)
and other private companies
Former directorships in last 3 years:
Chairman of CPT Global Ltd (October 2002 to November 2023); Non-Executive Director of
Select Harvests Ltd (July 2010 to February 2023) and other private companies
Special responsibilities:
Chairman of the Remuneration Committee, member of the Audit & Governance Committee
No. of shares:
537,352 fully paid ordinary shares
David Brown
Director (Non-Executive)
Date of appointment:
7 June 2004 (20 years)
Qualifications:
Bachelor of Science, Bachelor of Economics
Experience:
Has over four decades of experience in research and development and manufacturing of
X-Ray Flux chemicals; formerly Chief Chemist for Swan Brewery Co. Ltd and Chairman of
Scientific Industries Council of WA
Other current directorships:
Private companies only
Former directorships in last 3 years:
Private companies only
Special responsibilities:
Technical consultant to XRF Chemicals Pty Ltd
No. of shares:
9,192,200 fully paid ordinary shares
David Kiggins
Director (Non-Executive)
Date of appointment:
1 May 2012 (12 years)
Qualifications:
Bachelor of Science (Hons), Fellow of the Institute of Chartered Accountants of England
and Wales, Fellow of the Institute of Chartered Secretaries and Administrators, and
member of Australian Institute of Company Directors
Experience:
Formerly at Arthur Andersen, working in audit and business consulting; GM Business
Development and Company Secretary at Automotive Holdings Group Ltd; Finance Director
and Company Secretary at Global Construction Services Ltd; Chief Financial Officer at
Heliwest and Stealth Global Holdings Ltd. Currently Chief Financial Officer of Sadleirs.
Other current directorships:
Private companies only
Former directorships in last 3 years:
Private companies only
Special responsibilities:
Chairman of the Audit & Governance Committee, member of the Remuneration Committee
No. of shares:
212,900 fully paid ordinary shares
Vance Stazzonelli
Managing Director (Executive)
Date of appointment:
22 February 2018 (6 years)
Qualifications:
Bachelor of Commerce (Professional Accounting)
Experience:
Vance joined XRF Scientific as Chief Financial Officer in October 2009. He was subsequently
appointed to Chief Operating Officer in January 2011 and then Chief Executive Officer in
August 2012. On 22 February 2018, he was appointed as Managing Director.
Other current directorships:
Private companies only
Former directorships in last 3 years:
Private companies only
Special responsibilities:
N/A
No. of shares:
800,000 fully paid ordinary shares
No. of performance rights:
617,137 performance rights
DIRECTORS’ REPORT
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 9
COMPANY SECRETARIES
Vance Stazzonelli, B.Comm, CPA – Vance has held the role of Company Secretary since June 2008.
Andrew Watson, B.Comm, CA – Andrew was appointed Joint Company Secretary in August 2013.
OTHER KEY MANAGEMENT
Andrew Watson (Chief Financial Officer – XRF Scientific Limited)
Andrew joined XRF Scientific in August 2012. He is a member of the Chartered Accountants Australia and New
Zealand and holds a Graduate Diploma of Applied Corporate Governance.
MEETINGS OF DIRECTORS
The number of meetings held by the Board of Directors including meetings of the committees of the Board and
the number of meetings attended by each of the Directors during the financial year ended 30 June 2024 were as
follows:
Full meetings of Directors
Meetings of committees -
Audit & Governance,
Remuneration
A
B
A
B
Fred Grimwade
11
11
3
3
David Brown
11
11
*
*
David Kiggins
11
11
3
3
Vance Stazzonelli
11
11
*
*
A
= Meetings held during the time the director held office or was a member of the Committee during the year.
B
= Meetings attended.
*
= Not a member of the relevant Committee.
REMUNERATION REPORT (Audited)
(a) Principles used to determine the nature and amount of remuneration.
Remuneration governance
The Remuneration Committee is a committee of the Board. Its objective is to ensure that remuneration policies and
structures are fair and competitive and aligned with the long-term interests of the Company. It is primarily
responsible for making recommendations to the Board on:
•
the over-arching executive remuneration framework
•
operation of the incentive plans which apply to the executive team, including key performance indicators and
performance hurdles
•
remuneration levels of executive directors and other key management personnel, and
•
non-executive director fees
Non-executive directors
Fees and payments to non-executive directors reflect the demands which are made on, and the responsibilities of,
the directors. Non-executive directors’ fees and payments are reviewed periodically by the Board. The Chairman’s
fees are determined independently to the fees of non-executive directors based on comparative roles in the
external market. The Chairman is not present at any discussions relating to determination of his own
remuneration. The Chairman’s remuneration is inclusive of committee fees. Non-executive directors may receive
share options.
DIRECTORS’ REPORT
10 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
REMUNERATION REPORT (Audited) continued
Managing director
No additional remuneration is paid to Mr Stazzonelli as part of his appointment as Managing Director and his
contracted terms of employment remain unchanged.
Directors’ fees
Directors’ remuneration was last reviewed in July 2024 and it was decided that fees would be increased to the
following amounts:
Chairman
$116,139
Non-Executive Directors
$70,172
Committee Chairman
$10,142
The maximum amount payable is capped at $400,000 per annum and was approved by shareholders at the Annual
General Meeting in November 2012.
Executive pay
The executive pay and reward framework has three components:
1.
Base pay and benefits, including superannuation
2.
Short-term performance incentives, and
3.
Long-term incentives.
It is Board policy to review key management annually, and adjust such compensation taking into account the
manager’s performance, the performance of the entity which they manage, and the performance of the Group of
companies.
Where appropriate, there is a direct link between financial performance (profit or growth) to key managers’
compensation by way of bonus, which is assessed under a weighted balanced scorecard method, as set out by the
Remuneration Committee at the start of each year. This method is accepted by the Board as being an appropriate
incentive for encouraging key management personnel to reach targets that are in excess of budgeted growth.
(i) Base Pay
Executives are offered a competitive base pay that forms the fixed component of pay. Base pay for executives is
reviewed annually to ensure the executive’s pay is competitive with the market. An executive’s pay is reviewed on
promotion.
(ii) Benefits
Executives may receive benefits including car and mileage allowances.
(iii) Superannuation
Effective from 1 July 2024, retirement benefits of 11.5% (2023: 11.0%) of the base pay are delivered to the
individual super fund of the executive’s choice.
(iv) Short-term performance incentives
Bonuses may be paid on the performance of the individual entity based on full year performance for the financial
year. In most instances bonus payments are based on the achievement of a percentage of that year’s budget and
targets/objectives being met. A short-term incentive (STI) pool is available for executives during the annual review,
which is subject to caps that are in place. Using a profit target ensures variable reward is only available when
value has been created for shareholders and when profit is consistent with the business plan.
(v) Long-term incentives
The Board is cognisant of general shareholder opinion that long-term equity-based rewards for executives should
be linked to the success of the Company. To achieve this, performance rights may be awarded as a percentage of
fixed remuneration. The performance rights vest upon the satisfaction of performance criteria, following which
the Company will allocate to the executive the number of shares to which they are entitled.
DIRECTORS’ REPORT
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 11
REMUNERATION REPORT (Audited) continued
(vi) Assessing performance and clawback of remuneration
The Company’s current Executive Performance Reward Policy does not currently include any clawback provisions.
(b) Details of remuneration
(i) Non-Executive
(ii) Executive
Fred Grimwade
Chairman
Vance Stazzonelli
Managing Director
David Brown
Director
Andrew Watson
Chief Financial Officer
David Kiggins
Director
Fixed Remuneration
The level of fixed remuneration is set as to provide base level of remuneration which is both appropriate to the
position and its competitive market. Fixed remuneration is reviewed annually by the Remuneration Committee
based on market rates, as well as having regard to the Company and individual performance. The fixed
remuneration of other key management personnel is contained in information that follows.
Variable Remuneration (Short-Term Incentive)
To assist in achieving the objective of retaining a high-quality executive team, the Remuneration Committee links
the nature and amount of the executive emoluments to the Company’s financial and operating performance. For
the Managing Director, variable remuneration is calculated based on an assessment of key performance
indicators using a weighted balanced scorecard method, as set out by the Remuneration Committee at the start of
each year. The maximum amount payable to the Managing Director for 2024 is $175,000. There were five
categories of STI performance measure (plus a discretionary component) for the year ended 30 June 2024. Those
measures were chosen to provide a balance between corporate, individual, operational, strategic, financial and
behavioural aspects of performance. The weighting assigned to each of the performance measures was as
follows:
• Group financial performance (30%)
• Execution of business growth strategy (27.5%)
• Leadership (10%)
• Compliance and risk management (5%)
• Stakeholder & associated business relations (7.5%)
• Discretionary (20%)
The Remuneration Committee considered the performance of the Managing Director against the performance
measures outlined above. A range of financial, strategic and operational targets were met and internal expansion
plans are on schedule. All compliance obligations were met throughout the year with no reported issues and
relationships with internal and external stakeholders were well managed. It was decided that $140,000 (including
superannuation) would be paid, which is 80% of the maximum amount payable.
Bonus payments to other key management personnel were 100% discretionary, based on a range of financial,
strategic and operational factors. These amounts were accrued at 30 June 2024 and paid in July and August 2024.
In March 2024, each employee eligible to participate in the Company’s employee share scheme (including the
Chief Financial Officer) received shares valued at $1,000. The issue of these shares was 100% at the Board’s
discretion.
DIRECTORS’ REPORT
12 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
REMUNERATION REPORT (Audited) continued
Variable Remuneration (Long-Term Incentive)
In November 2023, the Board awarded 214,634 performance rights to the Managing Director (based on 60% of his
fixed salary) and 84,143 to the Chief Financial Officer (based on 35% of his fixed salary). The performance rights
are subject to the performance condition below:
Indexed Total Shareholder Returns
Total Shareholder Return (TSR) measures the growth in the Group’s share price together with the value of
dividends during the period. When calculating the Group’s TSR, its share price at the beginning and end of the
performance period will be calculated as a one-month VWAP (i.e. July in year 1 and June in year 3). The
percentage of PRs out of this tranche that vest will be determined by reference to the relative TSR of the Group
achieved over the three-year performance period, compared to the TSR of the S&P/ASX Small Ordinaries
Accumulation Index (ASOAI), as follows:
Performance against the relevant condition(s)
Quantum of Performance Rights subject to performance
conditions that vest (%)
Less than index TSR
Below 100% of the proportionate change in the ASOAI index
over the relevant performance period
Nil
Equal to index TSR
At 100% of the proportionate change in the ASOAI index over
the relevant performance period
50%
Greater than index TSR
Between 100% and 120% of the proportionate change in the
ASOAI index over the relevant performance period
Pro-rata between 50% and 100%
Threshold vesting of this tranche of the PRs occurs where the Company’s TSR equals the S&P/ASX Small
Ordinaries Accumulation Index TSR over the performance period. For the whole tranche of PRs to vest, the
Company’s TSR must exceed the TSR of the S&P/ASX Small Ordinaries Index over the performance period by 20
per cent.
This performance condition must be satisfied in order for the performance rights to vest. The Board currently
expects that it will determine whether or not the performance conditions have been satisfied by late August 2026,
after the release of the Company’s audited financial statements.
DIRECTORS’ REPORT
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 13
REMUNERATION REPORT (Audited) continued
Amounts of remuneration
Details of the remuneration of directors and the key management personnel (as defined in AASB 124 Related
Party Disclosures) of XRF Scientific Limited are set out in the following:
Short-term
Post-
employment
Long-term
Cash
Salary
Cash
Bonuses
Share-
Based
Payments
Other
Super-
annuation
Long-
Service
Leave
Share-
Based
Payments
Total
2024
$
$
$
$
$
$
$
$
Non-executive directors
Fred Grimwade
100,605
-
-
-
11,067
-
-
111,672
David Brown
60,786
-
-
*235,112
6,686
-
-
302,584
David Kiggins
69,572
-
-
-
7,653
-
-
77,225
Total non-executive directors
230,963
-
-
235,112
25,406
-
-
491,481
Executive directors
Vance Stazzonelli
411,865
140,000
-
-
28,135
21,303
121,011
722,314
Total executive directors
411,865
140,000
-
-
28,135
21,303
121,011
722,314
Other key management personnel
Andrew Watson
266,400
60,090
1,000
**42,009
40,835
12,472
47,440
470,246
Total key management personnel
266,400
60,090
1,000
42,009
40,835
12,472
47,440
470,246
909,228
200,090
1,000
277,121
94,376
33,775
168,451
1,684,041
Short-term
Post-
employment
Long-term
Cash
Salary
Cash
Bonuses
Share-
Based
Payments
Other
Super-
annuation
Long-
Service
Leave
Share-
Based
Payments
Total
2023
$
$
$
$
$
$
$
$
Non-executive directors
Fred Grimwade
93,575
-
-
-
9,825
-
-
103,400
David Brown
56,538
-
-
*217,697
5,937
-
-
280,172
David Kiggins
64,710
-
-
-
6,795
-
-
71,505
Total non-executive directors
214,823
-
-
217,697
22,557
-
-
455,077
Executive directors
Vance Stazzonelli
362,017
120,000
-
-
23,982
18,029
250,357
774,385
Total executive directors
362,017
120,000
-
-
23,982
18,029
250,357
774,385
Other key management personnel
Andrew Watson
222,000
49,550
1,000
-
28,760
9,821
92,812
403,943
Total key management personnel
222,000
49,550
1,000
-
28,760
9,821
92,812
403,943
798,840
169,550
1,000
217,697
75,299
27,850
343,169
1,633,405
* Technical services provided by consultancy (such as technical sales and support, analytical method development).
** Cash payment of annual and long service leave accrued by the employee.
Percentage of performance related compensation of total remuneration
Certain executive personnel are paid performance bonuses and receive performance rights in addition to set
remuneration amounts. The Board of Directors have set these incentives to encourage growth and profitability
and they are paid as per the conditions set out on pages 11 and 12. The relative proportions of remuneration that
are linked to performance and those that are fixed are as follows:
Fixed Remuneration
At risk - STI
At risk - LTI
2024
2023
2024
2023
2024
2023
Vance Stazzonelli
50%
50%
20%
20%
30%
30%
Andrew Watson
62%
62%
16%
16%
22%
22%
DIRECTORS’ REPORT
14 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
REMUNERATION REPORT (Audited) continued
Options issued as part of total remuneration
No options have been issued in 2023 or 2024 as part of total remuneration.
Voting and comments made at the Company’s 2023 Annual General Meeting
A resolution to adopt the Remuneration Report for the 2023 financial year was proposed at the Company’s most
recent Annual General Meeting. The resolution was decided by poll, with 92% of eligible votes cast in favour of
adopting the report. Aside from the votes cast, the Company did not receive any specific feedback at the meeting
or throughout the year on its remuneration practices.
(c)
Shareholder Wealth
The following is a summary of key shareholder wealth statistics for the Company over the past 5 years (listed
since 2006).
EBIT
Earnings Per Share Dividends Declared
Per Share
Share Price
Market Cap
(at 30 June)
$
Cents
Cents
Cents
$
2019/20
4,602,319
2.3
1.4
24
32,118,193
2020/21
6,818,111
3.8
2.0
47.5
63,916,519
2021/22
8,259,768
4.5
2.5
57
77,458,468
2022/23
11,924,806
5.6
3.3
117
160,348,237
2023/24
13,470,188
6.4
3.9
134.5
185,757,109
(d) Bonuses
Each individual Key Management Personnel performance bonus was discussed and reviewed against the
requirements set out on page 10. It was agreed that the proposed performance bonuses met these conditions,
specifically individual performance against agreed Key Performance Indicators.
(e) Shares held by key management personnel
Details of equity instruments (other than options and rights) held directly, indirectly or beneficially by key
management personnel and their related parties are as follows:
Name
Balance at
1 July 2023
On-market
trades
Issued via
DRP
Issued via
ESS
Balance at 30
June 2024
Directors
Fred Grimwade
518,939
-
18,413
-
537,352
David Brown
10,172,200
(980,000)
-
-
9,192,200
David Kiggins
212,900
-
-
-
212,900
Vance Stazzonelli
740,000
33,033
26,967
-
800,000
Key Management Personnel
Andrew Watson
62,525
10,000
2,572
862
75,959
Securities Trading Policy
The Company has adopted a policy that imposes certain restrictions on Directors and employees trading in the
securities of the Company. The restrictions have been imposed to prevent trading in contravention of the insider
trading provisions of the Corporations Act 2001.
Option holdings
There were no options over ordinary shares in the Company held during the financial year by directors of XRF
Scientific Limited or other key management personnel of the Group.
DIRECTORS’ REPORT
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 15
REMUNERATION REPORT (Audited) continued
Dividends received by key management personnel
Details of dividends received directly, indirectly or beneficially by key management personnel and their related
parties are as follows:
2024
2023
Name
$
$
Directors
Fred Grimwade
17,125
12,500
David Brown
336,343
247,613
David Kiggins
7,026
5,323
Vance Stazzonelli
25,080
17,500
Key Management Personnel
Andrew Watson
2,393
1,198
(f)
Service Agreements
Remuneration for the Managing Director and Chief Financial Officer is set out in service agreements, which are
detailed below. No other key management personnel are currently employed under service contracts.
Vance Stazzonelli, Managing Director of XRF Scientific Limited
Terms of agreement – Ongoing employment contract effective 1 July 2012. Base salary is $457,600 per annum
(effective 1 July 2024 and ongoing), including superannuation benefits (2023: $440,000 including superannuation
benefits). Payment of a termination benefit on early termination by the Company, other than for gross misconduct,
equal to six months full pay. Notice period by the employee of six months. Payment of bonuses is based on a
range of strategic, financial, operational, personnel, and Board-related key performance indicators.
Andrew Watson, Chief Financial Officer of XRF Scientific Limited
Terms of agreement – Ongoing employment contract effective 24 July 2014. Base salary is $277,056 per annum
(effective 1 July 2024 and ongoing), plus superannuation benefits of 11.5% (2023: $266,400 plus superannuation
benefits of 11%). Payment of a termination benefit on early termination by the Company, other than for gross
misconduct, equal to three months full pay. Notice period by the employee of three months. Payment of bonuses
is based on a range of strategic, financial, operational, personnel, and Board-related key performance indicators.
(g) Share-based compensation
Details of performance rights held by key management personnel are as follows:
Name
Balance at
1 July 2023
Issued via
Performance Rights
Plan
Balance at
30 June 2024
Vance Stazzonelli
402,503
214,634
617,137
Andrew Watson
149,215
84,143
233,358
Details of active performance rights are as follows:
Grant date
Vesting conditions
Performance
period
Participating KMP
11 November 2022
•
Indexed Total Shareholder Returns
•
Earnings Per Share Compound Annual Growth Rate
1July 2022 to
30 June 2025
Vance Stazzonelli,
Andrew Watson
13 November 2023
•
Indexed Total Shareholder Returns
1July 2023 to
30 June 2026
Vance Stazzonelli,
Andrew Watson
DIRECTORS’ REPORT
16 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
REMUNERATION REPORT (Audited) continued
During the year ended 30 June 2024, shares valued at $1,000 were also issued to the Chief Financial Officer under
the XRF Scientific Exempt Employee Share Plan (2023: $1,000). There was no share-based compensation to any
other Director or Key Management Personnel for the years ended 30 June 2024 and 2023. The Company has not
adopted an employee share option scheme.
(h) Remuneration consultants
No remuneration consultants were used in the years ended 30 June 2024 and 30 June 2023.
(i)
Other transactions with key management personnel
Premises were rented from a related entity of Director David Brown during the financial year. These properties
were rented on normal commercial terms and conditions, totalling $120,172 (2023: $107,835). No amounts were
outstanding at the end of the year.
(j)
Loans to directors and executives
No loans were made to directors and executives during the financial years ended 30 June 2024 and 30 June 2023.
End of Remuneration Report (Audited).
NON-AUDIT SERVICES
Details of the non-audit services provided by the Company’s external auditor BDO Audit Pty Ltd and its related
practices during the year ended 30 June 2024 are outlined in the following table. The Directors are satisfied that
the provision of non-audit services by the auditor did not compromise the independence requirements of the
Corporations Act 2001 for the following reasons:
•
All non-audit services have been reviewed by the Audit & Governance Committee to ensure that they do
not impact the impartiality and objectivity of the auditor, and
•
None of the services undermine the general principles relating to auditor independence as set out in
APES 110 Code of Ethics for Professional Accountants (including Independence Standards).
During the year the following fees were paid or payable for services provided by the auditor of the parent entity, its
related practices and non-related audit firms:
Consolidated
2024
2023
$
$
BDO - Australia
Audit and review of financial reports
138,104
143,535
Taxation services
47,055
28,914
Other services
5,096
11,947
BDO - Belgium
Audit and review of financial reports
68,532
15,154
Taxation services
13,977
9,895
Other services
-
2,298
BDO - Canada
Taxation services
13,199
8,530
Other services
4,531
-
BDO - UK
Audit and review of financial reports
34,131
-
Total remuneration for audit and other services
324,625
220,273
The Board is satisfied that the auditors of the Company, BDO Audit Pty Ltd remain independent.
DIRECTORS’ REPORT
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 17
OPTIONS
No unissued ordinary shares of XRF Scientific Limited remain under option at the date of this report.
INSURANCE OF DIRECTORS, OFFICERS AND AUDITORS
During the financial year, the Company paid insurance premiums to insure the directors and officers of the
Company and its Australian–based controlled entities.
The liabilities insured are legal costs that may be incurred in defending civil or some criminal proceedings that
may be brought against the officers in their capacity as officers of entities in the Group, and any other payments
arising from liabilities incurred by the officers in connection with such proceedings. This does not include such
liabilities that arise from conduct involving a wilful breach of duty by the officers or the improper use by the
officers of their position or of information to gain advantage for themselves or someone else or to cause detriment
to the Company. It is not possible to apportion the premium between amounts relating to the insurance against
legal costs and those relating to other liabilities.
During the financial year, the Company has not paid premiums to insure, or agreed to indemnify the auditor of the
Company or any related entity against a liability incurred by the auditor.
PROCEEDINGS ON BEHALF OF OR INVOLVING THE ECONOMIC ENTITY
No person has applied for leave of Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Company or intervene in any proceedings to which the Company is a party for the
purpose of taking responsibility on behalf of the Company for all or any part of those proceedings. No proceedings
have been brought or intervened in on behalf of the Company with leave of the Court under section 237 of the
Corporations Act 2001.
ROUNDING IN DIRECTORS’ REPORT
All values in this report are rounded to the nearest dollar unless otherwise stated, under the option available to
the Company under ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 is
set out on page 18.
AUDITOR
BDO Audit Pty Ltd continues in office in accordance with section 327 of the Corporations Act 2001.
This report is made in accordance with a resolution of directors and signed for and on behalf of the Board by:
Fred S Grimwade
Chairman
19 August 2024
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an
Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form
part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
DECLARATION OF INDEPENDENCE BY JARRAD PRUE TO THE DIRECTORS OF XRF SCIENTIFC LIMITED
As lead auditor of XRF Scientific Limited for the year ended 30 June 2024, I declare that, to the best of
my knowledge and belief, there have been:
1.
No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2.
No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of XRF Scientific Limited and the entities it controlled during the period.
Jarrad Prue
Director
BDO Audit Pty Ltd
Perth
19 August 2024
CONSOLIDATED STATEMENT OF PROFIT OR LOSS AND OTHER
COMPREHENSIVE INCOME FOR THE YEAR ENDED 30 JUNE 2024
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 19
Note
Consolidated
2024
2023
$
$
Revenue
5
60,116,820
55,260,722
Cost of sales
6
(33,568,641)
(32,278,092)
Gross profit
26,548,179
22,982,630
Other income
11,445
40,393
Administration expenses
6
(10,858,388)
(9,168,504)
Occupancy expenses
(953,823)
(967,860)
Other expenses
(996,145)
(875,719)
Finance costs
(287,679)
(221,618)
Profit before income tax
13,463,589
11,789,322
Income tax expense
7
(3,966,716)
(3,608,276)
Profit after income tax
9,496,873
8,181,046
Profit attributable to NCI
(611,609)
(495,219)
Profit after income tax attributable to XRF Scientific Ltd equity holders
8,885,264
7,685,827
Other comprehensive income
Profit after income tax
9,496,873
8,181,046
Foreign currency translation differences
23(a)
(236,797)
441,141
Total comprehensive income
9,260,076
8,622,187
Total comprehensive income attributable to NCI
(611,609)
(495,219)
Total comprehensive income attributable to XRF Scientific Ltd equity holders
8,648,467
8,126,968
Earnings per share for the year attributable to XRF Scientific Ltd equity holders
Basic earnings per share (cents per share)
32
6.4
5.6
Diluted earnings per share (cents per share)
32
6.4
5.6
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction
with the accompanying notes.
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
AS AT 30 JUNE 2024
20 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
Note
Consolidated
2024
2023
$
$
CURRENT ASSETS
Cash and cash equivalents
8
12,048,459
10,401,407
Trade and other receivables
9
9,523,780
8,628,914
Inventories
10
17,018,679
16,879,191
Other assets
11
612,932
621,647
Total Current Assets
39,203,850
36,531,159
NON-CURRENT ASSETS
Property, plant and equipment
12
10,825,673
10,414,766
Intangible assets
13
16,619,246
16,866,428
Deferred tax asset
14
1,584,351
1,735,265
Total Non-Current Assets
29,029,270
29,016,459
Total Assets
68,233,120
65,547,618
CURRENT LIABILITIES
Trade and other payables
15
4,098,095
4,005,753
Provisions
16
2,127,968
2,459,833
Short-term borrowings
17
1,619,179
781,413
Current lease liabilities
18
615,255
603,701
Other current liabilities
19
928,538
2,403,061
Current income tax liability
1,060,674
1,364,714
Total Current Liabilities
10,449,709
11,618,475
NON-CURRENT LIABILITIES
Long-term borrowings
17
-
1,290,500
Non-current lease liabilities
18
1,145,658
1,638,531
Deferred tax liability
20
965,103
1,303,998
Provisions
21
132,442
118,447
Total Non-Current Liabilities
2,243,203
4,351,476
Total Liabilities
12,692,912
15,969,951
Net Assets
55,540,208
49,577,667
EQUITY
Issued capital
22
21,410,923
20,414,399
Non-controlling interest
655,175
323,566
Reserves
23(a)
1,698,709
2,186,165
Retained profits
23(b)
31,775,401
26,653,537
Total Equity
55,540,208
49,577,667
The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying
notes.
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2024
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 21
30 JUNE 2024 – CONSOLIDATED
Issued
Share
Capital
Non-
Controlling
Interest
Share
Option
Reserve
Share-Based
Payment
Reserve
Foreign
Currency
Translation
Reserve
Retained
Profits
Total
$
$
$
$
$
$
$
Balance at 1 July 2023
20,414,399
323,566
759,243
262,660
1,164,262
26,653,537
49,577,667
Profit for the year
-
611,609
-
-
-
8,885,264
9,496,873
Other comprehensive income
-
-
-
-
(236,797)
-
(236,797)
Total comprehensive income
-
611,609
-
-
(236,797)
8,885,264
9,260,076
Transactions with Equity Holders in
their capacity as Equity Holders
Ordinary shares issued, net of
transaction costs
996,524
-
-
-
-
-
996,524
Employee performance rights plan
-
-
-
508,584
-
-
508,584
Dividends paid / payable to members
-
-
-
-
-
(4,522,643)
(4,522,643)
Dividends paid / payable to NCI
-
(280,000)
-
-
-
-
(280,000)
Options expired in prior periods
-
-
(759,243)
-
-
759,243
-
996,524
(280,000)
(759,243)
508,584
-
(3,763,400)
(3,297,535)
Balance at 30 June 2024
21,410,923
655,175
-
771,244
927,465
31,775,401
55,540,208
30 JUNE 2023 – CONSOLIDATED
Issued
Share
Capital
Non-
Controlling
Interest
Share
Option
Reserve
Share-Based
Payment
Reserve
Foreign
Currency
Translation
Reserve
Retained
Profits
Total
$
$
$
$
$
$
Balance at 1 July 2022
19,632,304
(131,653)
759,243
-
723,121
22,365,014
43,348,029
Profit for the year
Other comprehensive income
-
-
495,219
-
-
-
-
-
-
441,141
7,685,827
-
8,181,046
441,141
Total comprehensive income
-
495,219
-
-
441,141
7,685,827
8,622,187
Transactions with Equity Holders in
their capacity as Equity Holders
Ordinary shares issued, net of
transaction costs
782,095
-
-
-
-
-
782,095
Employee performance rights plan
-
-
-
262,660
-
-
262,660
Dividends paid / payable to members
-
-
-
-
-
(3,397,304)
(3,397,304)
Dividends paid / payable to NCI
-
(40,000)
-
-
-
-
(40,000)
782,095
(40,000)
-
262,660
-
(3,397,304)
(2,392,549)
Balance at 30 June 2023
20,414,399
323,566
759,243
262,660
1,164,262
26,653,537
49,577,667
The above Consolidated Statement of Changes in Equity should be read in conjunction with the accompanying
notes.
CONSOLIDATED STATEMENT OF CASH FLOWS
AS AT 30 JUNE 2024
22 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
Note
Consolidated
2024
2023
$
$
Cash flows from operating activities
Receipts from customers (inclusive of GST)
57,264,000
54,418,414
Payments to suppliers and employees (inclusive of GST)
(44,708,742)
(42,898,964)
Finance costs
(287,679)
(221,618)
Income taxes paid
(4,458,737)
(2,967,449)
Interest received
281,080
86,135
Net cash inflow from operating activities
30
8,089,922
8,416,518
Cash flows from investing activities
Payments for property, plant and equipment
(1,612,053)
(757,684)
Payments for research and development
(30,787)
(24,748)
Net cash outflow from investing activities
(1,642,840)
(782,432)
Cash flows from financing activities
Proceeds from borrowings
17
1,868,662
2,711,497
Repayment of borrowings
17
(2,321,396)
(3,407,686)
Payment of lease liabilities
(746,750)
(507,337)
Dividends paid
(3,600,546)
(2,678,692)
Net cash outflow from financing activities
(4,800,030)
(3,882,218)
Cash and cash equivalents at the beginning of the financial year
10,401,407
6,649,539
Net increase in cash and cash equivalents
1,647,052
3,751,868
Cash and cash equivalents at the end of the financial year
8
12,048,459
10,401,407
The above Consolidated Statement of Cash Flows should be read in conjunction with the accompanying notes.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 23
NOTE 1: SUMMARY OF MATERIAL ACCOUNTING POLICIES
The principal accounting policies adopted in the preparation of the financial statements are set out below. These policies have
been consistently applied to all the years presented.
(a)
Basis of preparation
The financial report of XRF Scientific Limited for the year ended 30 June 2024 was authorised for issue in accordance with
a resolution of the directors on 19 August 2024 and covers XRF Scientific Limited as an individual entity as well as the
consolidated entity consisting of XRF Scientific Limited and its subsidiaries.
These financial statements are presented in Australian dollars and all values are rounded to the nearest dollar unless
otherwise stated, under the option available to the Company under ASIC Corporations (Rounding in Financial/Directors’
Reports) Instrument 2016/191.
XRF Scientific Limited is a company limited by shares incorporated in Australia and is a for-profit entity whose shares are
publicly traded on the Australian Stock Exchange.
These general purpose financial statements have been prepared in accordance with Australian Standards, other
authoritative pronouncements of the Australian Accounting Standards Board, Australian Accounting Interpretations and
the Corporations Act 2001.
Compliance with IFRS
The financial statements of XRF Scientific Limited also comply with International Financial Reporting Standards as issued
by the International Accounting Standards Board.
Historical cost convention
These financial statements have been prepared under the historical cost convention.
Critical accounting estimates
The preparation of financial statements requires the use of certain critical accounting estimates. It also requires
management to exercise its judgement in the process of applying the Group’s accounting policies. The areas involving a
higher degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial
statements, are disclosed in note 3.
Financial statement presentation
The following material accounting policies have been adopted in the preparation and presentation of the financial report.
(b) Principles of consolidation
(i) Subsidiaries
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of XRF Scientific Limited
(“Company” or “Parent Company”) as at 30 June 2024 and the results of all subsidiaries for the year then ended.
XRF Scientific Limited and its subsidiaries together are referred to in this report as the Group or the consolidated entity.
The Group controls an entity when the Group is exposed to, or has rights to, variable returns from its investment with the
entity and has the ability to affect those returns through its power to direct the activities of the entity.
All controlled entities have a 30 June financial year end.
The consolidated financial statements are prepared by combining the financial statements of all entities that comprise the
consolidated entity, being the Company (the Parent Company) and its subsidiaries. Consistent accounting policies are
employed in the preparation and presentation of the consolidated financial statements. On acquisition, the assets,
liabilities and contingent liabilities of a subsidiary are measured at their fair values at the date of acquisition. Any excess of
the cost of acquisition over the fair values of the identifiable net assets acquired is recognised as goodwill. If, after
reassessment, the fair values of the identifiable net assets acquired exceed the cost of acquisition, the benefit is credited
to profit or loss in the period of acquisition.
The consolidated financial statements include the information and results of each subsidiary from the date on which the
Company obtains control and until such time as the Company ceases to control such entities. All intercompany balances
and transactions between entities in the economic entity, including any unrealised profits or losses, have been eliminated
on consolidation.
Accounting policies of subsidiaries are consistent with the policies adopted by the Group.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
24 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
NOTE 1: SUMMARY OF MATERIAL ACCOUNTING POLICIES continued
(ii) Changes in ownership interests
When the Group ceases to have control, joint control or significant influence, any retained interest in the entity is re-
measured to its fair value with the change in carrying amount recognised in profit or loss. The fair value is the initial
carrying amount for the purposes of subsequently accounting for the retained interest as an associate, jointly controlled
entity or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that
entity are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that
amounts previously recognised in other comprehensive income are reclassified to profit or loss.
If the ownership interest in a jointly-controlled entity or an associate is reduced but joint control or significant influence is
retained, only a proportionate share of the amounts previously recognised in other comprehensive income are reclassified
to profit or loss where appropriate.
(c)
Segment reporting
Operating segments are reported in a manner consistent with the internal reporting provided to the chief operating
decision maker. The chief operating decision maker, who is responsible for allocating resources and assessing
performance of the operating segments, has been identified as the Managing Director.
(d)
Foreign currency translation
Functional and presentation currency
The functional currency of each Group entity is measured using the currency of the primary economic environment in
which that entity operates. The consolidated financial statements are presented in Australian dollars which is the parent
entity’s functional and presentation currency.
Transaction and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the
transaction. Foreign currency monetary items are translated at the year-end exchange rate.
Exchange differences arising on the translation of monetary items are recognised in the Statement of Profit or Loss and
Other Comprehensive Income, except where deferred in equity as a qualifying cash flow or net investment hedge. The
differences taken to equity are recognised in profit or loss on disposal of the net investment.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using the exchange
rate as at the date of the initial transaction and are recognised in the profit or loss.
Group Companies
The results and financial position of all the Group entities (none of which has the currency of a hyperinflationary currency
economy) that have a functional currency different from the presentation currency are translated into the presentation
currency as follows.
Assets and liabilities for each statement of financial position presented are translated at the closing rate at the date of that
statement of financial position. Income and expenses for each profit or loss item are translated at average exchange rates.
All resulting exchange differences are recognised in other comprehensive income.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 25
NOTE 1: SUMMARY OF MATERIAL ACCOUNTING POLICIES continued
(e)
Revenue recognition
Revenue is measured at the fair value of the consideration received or receivable. Amounts disclosed as revenue are net of
returns, trade allowances and amounts collected on behalf of third parties. Revenue is recognised as follows:
(i) Revenue from contracts with customers
Group revenue is derived from the manufacture and sale of chemicals, equipment and accessories to production mines,
construction material companies and commercial analytical laboratories, in Australia and overseas. These finished goods
are primarily used in the preparation of samples for analysis. The Group also derives service revenue from the installation,
maintenance and repair of goods sold to customers.
The Group considers whether there are other promises in the contract that are separate performance obligations to which
a portion of the transaction price should be allocated (e.g. warranties). In determining the transaction price to be used in
the recognition of revenue for the sale of goods, the Group considers the effects of variable consideration, the existence of
significant financing components, non-cash consideration and consideration payable to the customer (if any).
Sale of finished goods - Revenue is recognised at a point in time when control of the product has transferred to the
customer, being when products are delivered. Delivery occurs when the products have been shipped to the specific
location, the risks of obsolescence and loss have been transferred to the customer and the customer has accepted the
product in accordance with the agreed terms. Sales of goods are standalone transactions and do not involve ongoing
contracts, nor the supply of additional goods and services.
Service revenue - When finished goods are bundled with installation services, they are listed separately on the sales
invoice and there is a clear valuation assigned to each individual component. Installation is an optional service and could
be performed by the customer or a third party, so it is considered to be a separate performance obligation. The
performance of the service usually coincides with the delivery and installation of the goods, so both components can be
recognised on the same date. Where there is a delay between the delivery of goods and the performance of services, the
service components are allocated to the balance sheet as liabilities. This revenue will be recognised on the date that the
service has been performed.
Maintenance and repair services fall into two main categories:
•
Single services to be performed on a specified date in the future – If invoiced in advance, the revenue for these
transactions remains on the balance sheet as a liability until the service is performed.
•
Contracts to provide multiple services over a period of time – The revenue for these transactions is initially
allocated to the balance sheet and then recognised on a monthly basis over the term of the contract (either 1 or
2 years), as the customer receives the benefit of the service on a simultaneous basis.
(ii) Contract balances
Contract assets - A contract asset is the right to consideration in exchange for goods or services transferred to the
customer. If the Group performs by transferring goods or services to a customer before the customer pays consideration
or before payment is due, a contract asset is recognised for the earned consideration that is conditional.
Trade receivables - Trade receivables represent the Group’s right to an amount of consideration that is unconditional (i.e.
only the passage of time is required before payment of the consideration is due).
Contract liabilities - A contract liability is the obligation to transfer goods or services to a customer for which the Group
has received consideration (or an amount of consideration is due) from the customer. If a customer pays consideration
before the Group transfers goods or services to the customer, a contract liability is recognised when payment is made or is
due (whichever is earlier). Contract liabilities are recognised as revenue when the Group performs under the contract.
(iii) Interest income
Interest revenue is recognised on a proportional basis, considering the interest rates applicable to the financial assets.
(f)
Income tax
The income tax expense or revenue for the period is the tax payable on the current year’s taxable income based on the
national income tax rate for each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to
temporary differences between the tax bases of assets and liabilities and their carrying amounts in the financial
statements.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
26 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
NOTE 1: SUMMARY OF MATERIAL ACCOUNTING POLICIES continued
Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the
assets are recovered or liabilities are settled, based on those tax rates which are enacted or substantially enacted for each
jurisdiction. The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences
to measure the deferred tax asset or liability. An exception is made for certain temporary differences arising from the
initial recognition of an asset or a liability.
No deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a transaction,
other than a business combination, that at the time of the transaction did not affect either accounting profit or taxable
profit or loss.
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that
future taxable amounts will be available to utilise those temporary differences and losses.
Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of
investments in controlled entities where the parent is able to control the timing of the reversal of the temporary differences
and it is probable that the differences will not reverse in the foreseeable future.
Current and deferred tax balances attributable to amounts recognised directly in equity are also recognised directly in
equity.
XRF Scientific Limited and its wholly-owned Australian controlled entities have implemented the tax consolidation
legislation. The head entity, XRF Scientific Limited, and the controlled entities in the tax consolidated group account for
their own deferred tax amounts. Current tax is accounted for by each subsidiary entity, which is then consolidated up into
the tax consolidated group, as per the tax sharing agreement. In addition to its own share of current and deferred tax
amounts, XRF Scientific Limited also recognises the current tax liabilities (or assets) and the deferred tax assets arising
from unused tax losses and unused tax credits assumed from controlled entities in the tax consolidated group. Assets or
liabilities arising under tax funding agreements with the tax consolidated entities are recognised as amounts receivable
from or payable to other entities in the Group. Income tax is allocated under the separate taxpayer within group approach.
Details about the tax funding agreement are disclosed in note 7.
(g)
Leases
The Group leases various offices, warehouses and factories. Rental contracts are typically made for fixed periods of 1 to 5
years but may have extension options as described below. Lease terms are negotiated on an individual basis and contain a
wide range of different terms and conditions. The lease agreements do not impose any covenants, but leased assets may
not be used as security for borrowing purposes.
Leases are recognised as a right-of-use asset and a corresponding liability at the date at which the leased asset is
available for use by the Group. Each lease payment is allocated between the liability and finance cost. The finance cost is
charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining
balance of the liability for each period. The right-of-use asset is depreciated over the shorter of the asset's useful life and
the lease term on a straight-line basis.
Assets and liabilities arising from a lease are initially measured on a present value basis. Lease liabilities include the net
present value of the following lease payments:
•
fixed payments (including in-substance fixed payments), less any lease incentives receivable;
•
variable lease payments that are based on an index or a rate;
•
amounts expected to be payable by the lessee under residual value guarantees;
•
the exercise price of a purchase option if the lessee is reasonably certain to exercise that option; and
•
payments of penalties for terminating the lease, if the lease term reflects the lessee exercising that option.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 27
NOTE 1: SUMMARY OF MATERIAL ACCOUNTING POLICIES continued
The lease payments are discounted using the interest rate implicit in the lease. If that rate cannot be determined, the
lessee’s incremental borrowing rate is used, being the rate that the lessee would have to pay to borrow the funds
necessary to obtain an asset of similar value in a similar economic environment with similar terms and conditions.
Right-of-use assets are measured at cost comprising the following:
•
the amount of the initial measurement of lease liability;
•
any lease payments made at or before the commencement date less any lease incentives received;
•
any initial direct costs; and
•
restoration costs.
Lease payments to be made under reasonably certain extension options are also included in the measurement of the
liability,
Payments associated with short-term leases and leases of low-value assets are recognised on a straight-line basis as an
expense in profit or loss. Short-term leases are leases with a lease term of 12 months or less. Low-value assets comprise
IT equipment and small items of office furniture.
(h)
Business combinations
The acquisition method of accounting is used to account for all business combinations, including business combinations
involving entities or businesses under common control, regardless of whether equity instruments or other assets are
acquired. The consideration transferred for the acquisition of a subsidiary comprises the fair values of the assets
transferred, the liabilities incurred and the equity interests issued by the Group. The consideration transferred also
includes the fair value of any contingent consideration arrangement and the fair value of any pre-existing equity interest in
the subsidiary. Acquisition-related costs are expensed as incurred. Identifiable assets acquired and liabilities and
contingent liabilities assumed in a business combination are, with limited exceptions, measured initially at their fair values
at the acquisition date. On an acquisition-by-acquisition basis, the Group recognises any non-controlling interest in the
acquiree either at fair value or at the non-controlling interest’s proportionate share of the acquiree’s net identifiable
assets.
The excess of the consideration transferred, the amount of any non-controlling interest in the acquiree and the
acquisition-date fair value of any previous equity interest in the acquiree over the fair value of the Group’s share of the net
identifiable assets acquired is recorded as goodwill. If those amounts are less than the fair value of the net identifiable
assets of the subsidiary acquired and the measurement of all amounts has been reviewed, the difference is recognised
directly in profit or loss as a bargain purchase.
Where settlement of any part of cash consideration is deferred, the amounts payable in the future are discounted to their
present value as at the date of exchange. The discount rate used is the entity’s incremental borrowing rate, being the rate
at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions.
Contingent consideration is classified either as equity or a financial liability. Amounts classified as a financial liability are
subsequently re-measured to fair value with changes in fair value recognised in profit or loss. All purchase consideration
is recorded at fair value at the acquisition date. Contingent payments classified as debt are subsequently re-measured
through profit or loss. Acquisition-related costs are expensed as incurred.
Non-controlling interests in an acquiree are recognised either at fair value or at the non-controlling interest’s
proportionate share of the acquiree’s net identifiable assets. This decision is made on an acquisition-by-acquisition basis.
If the Group recognises previous acquired deferred tax assets after the initial acquisition accounting is completed there
will no longer be any adjustment to goodwill. As a consequence, the recognition of the deferred tax asset will increase the
Group’s net profit after tax.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
28 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
NOTE 1: SUMMARY OF MATERIAL ACCOUNTING POLICIES continued
(i)
Impairment of assets
Goodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for
impairment or more frequently if events or changes in circumstances indicate that they might be impaired.
Other assets are reviewed for impairment whenever events or changes in circumstances indicate that the carrying amount
may not be recoverable. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds
its recoverable amount. The recoverable amount is the higher of an asset’s fair value less costs to sell and value in use.
For the purposes of assessing impairment, assets are grouped at the lowest levels for which there are separately
identifiable cash inflows which are largely independent of the cash flows from other assets or groups of assets (cash-
generating units). Non-financial assets other than goodwill that suffered impairment are reviewed for possible reversal of
the impairment at each reporting date.
(j)
Cash and cash equivalents
For cash flow statement presentation purposes, cash and cash equivalents includes cash on hand, deposits held at call
with financial institutions, other short-term, highly liquid instruments with original maturities of three months or less that
are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and
bank overdrafts. Bank overdrafts are shown within borrowings in current liabilities on the Statement of Financial Position.
(k)
Trade receivables
Trade receivables are recognised initially at fair value and subsequently measured at amortised cost using the effective
interest rate method, less provision for expected credit losses.
Trade receivables are due for settlement no more than 90 days from the date of recognition. Collectability of trade
receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off to the Statement of
Profit or Loss and Other Comprehensive Income. A provision for impairment of receivables is established based on the
expected credit loss approach. For trade receivables the Group applies the simplified approach permitted by AASB 9,
which requires expected lifetime losses to be recognised from initial recognition of the receivables. Another indicator that
determines the trade receivable is impaired is if the party is deemed to be bankrupt.
The amount of the provision is the difference between the present value of cash flows due under the contract and the
present value of the future cash flows an entity expects to receive, discounted at the original effective interest rate. Cash
flows relating to short-term receivables are not discounted if the effect of discounting is immaterial. The movement in the
provision is recognised in the Statement of Profit or Loss and Other Comprehensive Income.
(l)
Inventories
Raw materials, spare parts, work in progress and finished goods
Raw materials, spare parts, work in progress and finished goods are stated at the lower of cost and net realisable value.
Cost comprises of direct materials, direct labour and an appropriate proportion of variable and fixed overhead expenditure,
the latter being allocated on the basis of normal operating capacity. Costs are assigned to individual items of inventory on
the basis of weighted average costs. Costs of purchased inventory are determined after deducting rebates and discounts.
Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs of
completion and the estimated costs necessary to make the sale.
(m) Investments and other financial assets
(i) Classification
The Group classifies its financial assets as those to be measured at amortised cost.
The classification depends on the Group's business model for managing financial assets and the contractual terms of the
cash flows. For assets measured at fair value, gains and losses will either be recorded in profit or loss or other
comprehensive income. For investments in trade and other financial assets, this will depend on the business model in
which the investment is held.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 29
NOTE 1: SUMMARY OF MATERIAL ACCOUNTING POLICIES continued
(ii) Initial measurement
At initial recognition, the Group measures a financial asset at its fair value plus, in the case of a financial asset not at fair
value through profit or loss, transaction costs that are directly attributable to the acquisition of the financial asset.
Transaction costs of financial assets carried at fair value through profit or loss are expensed in profit or loss.
Measurement of cash and cash equivalents and trade and other receivables remains at amortised cost consistent with the
comparative period.
(iii) Subsequent measurement
Subsequent measurement of financial assets depends on the Group's business model for managing the asset and the
cash flow characteristics of the asset. The Group classifies its financial assets into the following measurement category:
•
Amortised cost: Assets that are held for collection of contractual cash flows where those cash flows represent
solely payments of principal and interest are measured at amortised cost. A gain or loss on trade and other
financial assets that is subsequently measured at amortised cost is recognised in profit or loss when the asset is
derecognised or impaired. Interest income from these financial assets is included in finance income using the
effective interest rate method.
(iv) Impairment
The Group assesses, on a forward-looking basis, the expected credit losses associated with its trade and other financial
assets carried at amortised cost and fair value through other comprehensive income. The impairment methodology
applied depends on whether there has been a significant increase in credit risk.
(n)
Fair value estimation
The fair value of financial assets and financial liabilities must be estimated for recognition and measurement or for
disclosure purposes.
The carrying amount less impairment provision of trade receivables and payables are assumed to approximate their fair
values. The fair value of financial liabilities for disclosure purposes is estimated by discounting the future contractual cash
flows at the current market interest rate that is available to the Company for similar financial instruments.
(o)
Property, plant and equipment
Property, plant and equipment is stated at historical cost less depreciation. Historical cost includes expenditure that is
directly attributable to the acquisition of the items. Subsequent costs are included in the asset’s carrying amount or
recognised as a separate asset, as appropriate, only when it is probable that future economic benefits associated with the
item will flow to the Company and the cost of the item can be measured reliably. All other repairs and maintenance are
charged to profit or loss during the financial period in which they are incurred.
Depreciation is calculated using a mixture of the straight line and diminishing value methods to allocate their cost, net of
their residual values, over their estimated useful lives, as follows:
Plant and Equipment
2%-40%
Property Improvements
4%-25%
Motor Vehicles
15%-25%
Office Equipment
5%-66.67%
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each reporting date. An asset’s
carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is greater than its
estimated recoverable amount (note 1(i)).
Gains and losses on disposals are determined by comparing proceeds with carrying amount. These are included in the
profit or loss.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
30 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
NOTE 1: SUMMARY OF MATERIAL ACCOUNTING POLICIES continued
(p)
Intangible assets
(i) Goodwill
Goodwill represents the excess of the cost of an acquisition over the fair value of the Company’s share of the net
identifiable assets of the acquired subsidiary/business at the date of acquisition. Goodwill on acquisitions of subsidiaries
and businesses is included in intangible assets. Goodwill is not amortised. Instead, goodwill is tested for impairment
annually or more frequently if events or changes in circumstances indicate that it might be impaired and carried at cost
less accumulated impairment losses. Gains and losses on the disposal of an entity include the carrying amount of goodwill
relating to the entity sold.
For the purpose of impairment testing, goodwill is allocated to the consolidated entity’s cash generating units identified
according to business and geographical segments (note 13(a)).
(ii) Patents, trademarks and licences
Patents, trademarks and licences 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 of patents, trademarks
and licences over their estimated useful lives, which vary from 3 to 20 years.
(iii) Research and development
Research expenditure is recognised as an expense as incurred. Costs incurred on development projects (relating to the
design and testing of new or improved products) are recognised as intangible assets when it is probable that the project
will be a success considering its commercial and technical feasibility and its costs can be measured reliably.
The expenditure capitalised comprises all directly attributable costs, including costs of materials, services, direct labour
and an appropriate proportion of overheads. Other development expenditures that do not meet these criteria are
recognised as an expense as incurred. Development costs previously recognised as an expense are not recognised as an
asset in a subsequent period. Capitalised development costs are recorded as intangible assets and amortised from the
point at which the asset is ready for use on a straight-line basis over its useful life, which varies from 1 to 8 years.
(q)
Trade and other payables
These amounts represent liabilities for goods and services provided to the Company prior to the end of the financial year
which are unpaid. Due to their short-term nature they are measured at amortised cost and are not discounted. The
amounts are unsecured and are usually paid within 60 days of recognition.
(r)
Borrowings
Borrowings are initially recognised at fair value, net of transaction costs incurred. Borrowings are subsequently measured
at amortised cost. Any difference between the proceeds (net of transaction costs) and the redemption amount is
recognised in profit or loss over the period of the borrowings using the effective interest method. Fees paid on the
establishment of loan facilities, which are not incremental costs relating to the actual draw-down of the facility, are
recognised as prepayments and amortised on a straight-line basis over the term of the facility.
Borrowings are removed from the Statement of Financial Position when the obligation specified in the contract is
discharged, cancelled or expired. The difference between the carrying amount of a financial liability that has been
extinguished or transferred to another party and the consideration paid, including any non-cash assets transferred or
liabilities assumed, is recognised in other income or other expenses.
Borrowings are classified as current liabilities unless the Company has an unconditional right to defer settlement of the
liability for at least 12 months after the reporting date.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 31
NOTE 1: SUMMARY OF MATERIAL ACCOUNTING POLICIES continued
(s)
Borrowing costs
Borrowing costs incurred for the construction of any qualifying asset are capitalised during the period of time that is
required to complete and prepare the asset for its intended use or sale. All other borrowing costs are recognised as an
expense in profit or loss in the period in which they are incurred.
(t)
Provisions
Provisions are measured at the present value of management’s best estimate of the expenditure required to settle the
present obligation at the reporting date. The discount rate used to determine the present value reflects current market
assessments of the time value of money and the risks specific to the liability. The increase in the provision due to the
passage of time is recognised as an interest expense.
Where there are a number of similar obligations, the likelihood that an outflow will be required in settlement is determined
by considering the class of obligations as a whole. A provision is recognised even if the likelihood of an outflow with
respect to any one item included in the same class of obligations may be small.
Provisions for legal claims, service warranties and make good obligations are recognised when the Group has a present
legal or constructive obligation as a result of past events, it is probable that an outflow of resources will be required to
settle the obligation and the amount has been reliably estimated.
(u)
Employee benefits
(i) Short-term obligations
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled wholly within
12 months of the reporting date, are recognised in other payables in respect of employees’ services up to the reporting
date and are measured at the amounts expected to be paid when the liabilities are settled.
(ii) Other long-term employee benefit obligations
The liability for long service leave is recognised in the provision for employee benefits and measured as the present value
of expected future payments to be made in respect of services provided by employees up to the reporting date using the
projected unit credit method. Consideration is given to expected future wage and salary levels, experiences of employee
departures and periods of service. These amounts are not expected to be settled wholly within 12 months of the reporting
date.
Expected future payments are discounted using market yields at the reporting date on corporate bonds with terms to
maturity and currency that match, as closely as possible, the estimated future cash outflows.
(iii) Retirement benefit obligations
The amount charged to profit or loss in respect of superannuation represents the contributions made by the Group to
superannuation funds as nominated by the individual employee. Contributions made by the Company to employee
superannuation funds are charged as expenses when incurred.
(v)
Contributed equity
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction from the
proceeds. Incremental costs directly attributable to the issue of new shares or options for the acquisition of a business are
not included in the cost of acquisition as part of the purchase consideration.
If the entity reacquires its own equity instruments, e.g. as the result of a share buy-back, those instruments are deducted
from equity and the associated shares are cancelled. No gain or loss is recognised in the profit or loss and the
consideration paid including any directly attributable incremental costs (net of income taxes) is recognised directly in
equity.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
32 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
NOTE 1: SUMMARY OF MATERIAL ACCOUNTING POLICIES continued
(w)
Dividends
Provision is made for the amount of any dividend declared, being appropriately authorised and no longer at the discretion
of the entity, on or before the end of the financial year but not distributed at reporting date.
(x)
Goods and services tax
Revenues, expenses and assets are recognised net of the amount of associated goods and services tax (GST), unless the
GST incurred is not recoverable from the taxation authority. In this case it is recognised as part of the cost of acquisition of
the asset or as part of the expense.
Receivables and payables are stated inclusive of the amount of GST receivable or payable. The net amount of GST
recoverable from, or payable to, the taxation authority is included with other receivables or payables in the statement of
financial position.
Cash flows are presented on a gross basis. The GST components of cash flows arising from investing or financing activities
which are recoverable from, or payable to, the taxation authority, are presented as operating cash flows.
(y)
Earnings per share
(i) Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company, excluding any
costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding
during the financial 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 after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the
weighted average number of shares assumed to have been issued for no consideration in relation to dilutive potential
ordinary shares.
(z)
New accounting standards and interpretations
The accounting standards and interpretations relevant to the operations of the Group are consistent with those of the
previous financial year. There were some amendments and interpretations effective for the first time from 1 July 2023, but
they did not have any significant impact on the current year or any prior year and are not likely to affect future years.
A number of new standards, amendments to standards and interpretations issued by AASB which are not yet mandatorily
applicable to the Group have not been applied in preparing these consolidated financial statements and some are not
expected to be relevant to the Group. The Group does not plan to adopt these standards early.
The following new standard will be applicable to the Group from the 30 June 2028 reporting period:
AASB 18 Presentation and Disclosure in Financial Statements
AASB 18 replaces AASB 101 Presentation of Financial Statements and requires income and expenses to be classified in
profit or loss as one of five categories, being investing, financing, income taxes, discontinued operations and operating
(which is a residual category). There are also two mandatory sub-totals:
•
Operating profit or loss
•
Profit or loss before financing and income taxes, which comprises operating profit or loss and all investing
income and expenses.
When these amendments are first adopted on 1 July 2027, subtotals in the Statement of Profit or Loss and Other
Comprehensive for the year ended 30 June 2028 may differ, including restated comparatives for the year ended 30 June
2027. However, there will be no change to net profit or loss after taxation in either period.
There may also be changes in the way interest and dividend cash inflows and outflows are presented in the Statement of
Cash Flows, which may impact the subtotals for cash generated or utilised from operating activities, investing activities
and financing activities.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 33
NOTE 2: FINANCIAL RISK MANAGEMENT
The Group’s activities expose it to a variety of financial risks; market risk (including foreign exchange risk, price risk, cash flow
risk, fair value risk and interest rate risk); credit risk; and liquidity risk. The Group’s overall risk management program focuses
on the unpredictability of financial markets and seeks to minimise potential adverse effects on the financial performance of the
Group.
Risk management is carried out by management under policies approved by the Board of Directors. Management identifies,
evaluates and hedges financial risks in close co-operation with the Company’s operating units. The Board provides guidance for
overall risk management and other specific areas, such as mitigating foreign exchange, interest rate and credit risks, use of
financial instruments and investing excess liquidity.
(a)
Market risk
(i) Foreign exchange risk
The Group is exposed to foreign currency risk on sales, purchases and borrowings that are denominated in a currency
other than the Australian Dollar. The currencies giving rise to this risk are predominantly Euros, the US Dollar, and the
Canadian Dollar.
Foreign currency risk arises where settlement of a trade receivable, payable or borrowings is denominated in a currency
that is not the entity’s functional currency, which may result in a foreign currency gain or loss. The Group seeks to mitigate
this risk by engaging in a majority of commercial transactions that are generally in AUD. The Group’s exposure to foreign
currency risk at the reporting date was as follows:
30 June 2024
30 June 2023
CAD
EUR
USD
CAD
EUR
USD
Trade receivables
152,705
944,686
979,635
134,777
872,023
618,705
Trade payables
6,284
168,261
50,372
6,575
72,364
62,268
Group sensitivity
Based on the financial instruments held at 30 June 2024, had the Australian dollar strengthened / weakened by 10%
(based on historical reasonableness movements) against the exchange rates in the above tables, with all other variables
held constant, the Group’s post-tax profit for the year would have been $255,327 lower / $312,066 higher (2023: $210,601
lower / $257,401 higher), mainly as a result of foreign currency exchange gains/losses on translation of foreign currency
denominated financial instruments as detailed in the table above.
(ii) Price risk
As the Group does not have any investments in equities or commodities, its exposure to equities price risk and commodity
price risk via investing is minimal.
While the Group holds precious metals as inventory (Note 10), customer commitments to market rates purchased result in
the Group’s exposure to commodities price risk being immaterial.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
34 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
NOTE 2: FINANCIAL RISK MANAGEMENT continued
(iii) Cash flow, fair value and interest rate risk
At 30 June 2024, if interest rates had changed by -/+ 100 basis points (based upon forward treasury rates) from the year-
end rates with all other variables held constant, post-tax profit for the year would have been $462 higher / lower
(2023: $6,822 higher / lower), mainly as a result of higher/lower interest income from cash and cash equivalents. Cash and
cash equivalent balances at 30 June 2024 would have been higher/lower by the same amount.
(b)
Credit risk
Management has a credit policy in place and the exposure to credit risk is monitored on an ongoing basis. Credit risk arises from
cash and cash equivalents, trade receivables and other receivables. For banks and financial institutions, only independently rated
parties with a minimum rating of ‘A’ are accepted. The Group trades only with recognised, creditworthy third parties. In addition,
receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is not significant.
Counterparties without external credit ratings are in majority existing customers (<6months) with no history of defaults (Group 2).
With respect to credit risk arising from the other financial assets of the Group, which comprise of cash and cash
equivalents, and trade and other receivables, the Group’s exposure to credit risk arises from the default of the counter party, with
a maximum exposure equal to the carrying amount of these financial assets.
There are no significant concentrations of credit risk within the Group at the reporting date.
The following table represents the Group’s exposure to credit risk:
Consolidated
2024
2023
$
$
Cash and cash equivalents (A+ rated)
12,048,459
10,401,407
Trade receivables, net of impairment provision (note 9) (Group 2)
9,519,768
8,618,299
Other receivables (external parties)
4,012
10,615
21,572,239
19,030,321
Credit risk exposure is not significantly different for any of the segments of the Group.
Details of impaired trade receivables, and trade receivables overdue but not impaired can be found at note 9. An analysis of
the Group’s consolidated trade receivables is as follows:
Current
Over 30
days
Over 60
days
Over 90
Days
Total
2024
7,326,535
970,915
523,060
699,258
9,519,768
2023
7,483,726
611,808
220,460
302,305
8,618,299
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 35
NOTE 2: FINANCIAL RISK MANAGEMENT continued
(c)
Liquidity risk
The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank
overdrafts, bank loans, debentures, finance leases and hire purchase contracts. The below analyses the Group’s financial
liabilities into relevant maturity groupings based on the remaining period at the reporting date. The amounts disclosed in
the table are the contractual undiscounted cash flows. There have been no breaches or defaults on the repayment of debt.
Contractual maturities of
financial liabilities
Less than 6
months
6 – 12
months
Between 1
and 2 years
Between 2
and 5 years
Total
contractual
cash flows
Carrying
Amount
(assets)/
liabilities
As at 30 June 2024
$
$
$
$
$
$
Non-derivatives
Trade and other payables
3,059,668
-
-
-
3,059,668
3,059,668
Property lease liabilities
412,922
297,613
535,466
733,812
1,979,813
1,760,912
Property loan
1,332,236
-
-
-
1,332,236
1,305,000
Import loans
322,218
-
-
-
322,218
314,179
Total non-derivatives
5,127,044
297,613
535,466
733,812
6,693,935
6,439,759
As at 30 June 2023
Non-derivatives
Trade and other payables
3,177,143
-
-
-
3,177,143
3,177,143
Property lease liabilities
404,746
373,281
580,213
1,214,583
2,572,823
2,242,231
Property loan
131,286
128,560
1,316,693
-
1,576,539
1,464,500
Import loans
624,024
-
-
-
624,024
607,413
Total non-derivatives
4,337,199
501,841
1,896,906
1,214,583
7,950,529
7,491,287
The Group had access to the following undrawn borrowing facilities at the end of the reporting period:
Consolidated
2024
2023
$
$
Bank overdraft facility
500,000
500,000
Bank guarantee facility (AUD denominated)
31,222
2,015
Import facility
3,185,821
2,892,587
3,717,043
3,394,602
(d)
Fair value estimation
The fair value bases of financial assets and financial liabilities are outlined in note 1(n).
All financial assets and liabilities have carrying values that are reasonable approximates of their fair values, for the
Consolidated Entity.
The fair values of current and non-current borrowings are based on discounted cash flows using a current borrowing rate.
They are classified as level 3 fair values in the fair value hierarchy due to the use of unobservable inputs, including own
credit risk.
Carrying value
$1,619,179
Fair value
$1,654,454
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
36 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
NOTE 3: CRITICAL ACCOUNTING ESTIMATES AND SIGNIFICANT JUDGEMENTS
Estimates and judgements are continually evaluated and are based on historical experience and other factors, including
expectations of future events that may have a financial impact on the entity and that are believed to be reasonable under the
circumstances. The Group makes estimates and assumptions concerning the future. The resulting accounting estimates will, by
definition, seldom equal the related results. The estimates and assumptions that have a significant risk of causing a material
adjustment to the carrying amounts of assets and liabilities within the next financial year are discussed below.
(a)
Estimated recoverable amount of goodwill – The Group tests whether goodwill has suffered any impairment, by
comparing the carrying value to the recoverable amount, in accordance with the accounting policy stated in note 1(p).
Refer to note 13 for the details on impairment tests performed on goodwill.
(b)
Tax – The determination of the Group's provision for income tax, deferred tax assets and liabilities involves significant
judgements and estimates on certain matters and transactions, for which the ultimate outcome may be uncertain. If the
final outcome differs from the Group's estimates, such differences will impact the current and deferred income tax assets
and liabilities in the period in which such determination is made.
(c)
Determination of tax residency– Section 295 (3A) of the Corporation Acts 2001 requires that the tax residency of each
entity which is included in the Consolidated Entity Disclosure Statement (CEDS) be disclosed. “Australian resident” has the
meaning provided in the Income Tax Assessment Act 1997. The determination of tax residency involves judgment as the
determination of tax residency is highly fact dependent and there are currently several different interpretations that could
be adopted, and which could give rise to a different conclusion on residency. In determining tax residency, the Group has
applied the following interpretations:
•
Australian tax residency – The Group has applied current legislation and judicial precedent, including having regard
to the Commissioner of Taxation’s public guidance in Tax Ruling TR 2018/5.
•
Foreign tax residency – The Group has applied current legislation and where available judicial precedent in the
determination of foreign tax residency. Where necessary, the Group has used independent tax advisers in foreign
jurisdictions to assist in its determination of tax residency to ensure compliance with foreign tax legislations.
(d)
Allowance for expected credit losses – The allowance for expected credit losses assessment requires a degree of
estimation and judgement. It is based on the lifetime expected credit loss, grouped based on days overdue, and makes
assumptions to allocate an overall expected credit loss rate for each group. These assumptions include recent sales
experience and historical collection rates.
(e)
Determining lease terms – Management considers all facts and circumstances that create an economic incentive to
exercise (or not exercise) an extension option. Extension options (or periods after termination options) are only included in
the lease term if the lease is reasonably certain to be extended (or not terminated). The assessment is reviewed if a
significant event or a significant change in circumstances occurs which affects this assessment.
NOTE 4: SEGMENT INFORMATION
Operating Segments – AASB 8 requires a management approach under which segment information is presented on the same
basis as that used for internal reporting purposes. This is consistent to the approach used in previous periods. Operating
segments are reported in a uniform manner to which is internally provided to the chief operating decision maker. The chief
operating decision maker has been identified as the Managing Director.
An operating segment is a component of the Group that engages in business activities from which it may earn revenues and
incur expenses, including those that relate to transactions with any of the Group’s other components. Each operating segment’s
results are reviewed regularly by the Managing Director to make decisions about resources to be allocated to the segment and
assess its performance, and for which discrete financial information is available. The Managing Director monitors segment
performance based on profit before income tax expense. Segment results that are reported to the Managing Director include
results directly attributable to a segment as well as those allocated on a reasonable basis. Segment capital expenditure is the
total cost incurred during the period to acquire property, plant and equipment and intangible assets other than goodwill.
The consolidated entity has determined that strategic decision making is facilitated by evaluation of operations on the customer
segments of Capital Equipment, Precious Metals and Consumables. For each of the strategic operating segments, the Managing
Director reviews internal management reports on a monthly basis.
(a)
Description of segments
Capital Equipment - Manufactures automated fusion equipment, high temperature test and production furnaces,
laboratory jaw crushers and general laboratory equipment.
Precious Metals - Manufactures products for the laboratory and industrial platinum alloy markets.
Consumables - Manufactures chemicals and other supplies for analytical laboratories.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 37
NOTE 4: SEGMENT INFORMATION continued
(b) Primary reporting format – business segments
Segment information provided to the Managing Director for the full-year ended 30 June 2024 is as follows:
Capital Equipment
Precious Metals
Consumables
Total
Full-year ended 30 June 2024
$
$
$
$
Total segment revenue
21,750,639
21,500,323
18,817,203
62,068,165
Inter segment sales
(1,185,699)
(1,046,302)
-
(2,232,001)
Revenue from external customers
20,564,940
20,454,021
18,817,203
59,836,164
Profit before income tax expense
4,599,968
3,568,575
5,723,761
13,892,304
Full-year ended 30 June 2023
Total segment revenue
18,829,453
21,665,597
16,938,375
57,433,425
Inter segment sales
(1,282,491)
(976,087)
-
(2,258,578)
Revenue from external customers
17,546,962
20,689,510
16,938,375
55,174,847
Profit before income tax expense
3,415,340
3,581,576
5,244,727
12,241,643
Segment assets
At 30 June 2024
17,906,444
19,697,171
19,389,793
56,993,408
At 30 June 2023
14,981,826
21,490,073
20,040,839
56,512,738
Segment liabilities
At 30 June 2024
3,869,046
4,450,627
1,154,344
9,474,017
At 30 June 2023
4,026,625
6,379,729
1,564,374
11,970,728
Depreciation & amortisation expense
For the year ended 30 June 2024
744,688
400,745
279,494
1,424,927
For the year ended 30 June 2023
456,936
370,845
241,353
1,069,134
Capital expenditure
For the year ended 30 June 2024
860,206
607,269
135,877
1,603,352
For the year ended 30 June 2023
178,162
282,323
299,694
760,179
2024 ($)
2023 ($)
Revenue from external customers – segments
59,836,164
55,174,847
Unallocated revenue
280,656
85,875
Revenue from external customers – total
60,116,820
55,260,722
Profit before income tax expense – segments
13,892,304
12,241,643
Profit/(Loss) incurred by parent entity
(428,715)
(452,321)
Profit before income tax expense
13,463,589
11,789,322
Total segment assets
56,993,408
56,512,738
Cash and cash equivalents
9,556,094
7,203,957
Deferred tax asset
1,584,351
1,735,265
Other corporate assets & eliminations
99,267
95,658
Total assets
68,233,120
65,547,618
Segment non-current assets by geographical region
Australia
24,391,880
24,049,450
Canada
1,963,780
2,111,869
Europe
794,055
765,394
Total segment non-current assets
27,149,715
26,926,713
Total segment liabilities
9,474,017
11,970,728
Deferred tax liability
965,103
1,303,998
Income tax provision
1,060,674
1,364,714
Trade & other payables
1,402,227
1,462,890
Other corporate liabilities
(209,109)
(132,379)
Total liabilities
12,692,912
15,969,951
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
38 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
NOTE 5: REVENUE
Consolidated
2024
2023
$
$
Revenue
Revenue from external customers
Sale of goods
58,307,494
54,290,513
Service revenue (recognised at point in time)
1,179,673
590,241
Service revenue (recognised over time)
348,573
293,833
Total revenue from external customers
59,835,740
55,174,587
Interest income
281,080
86,135
Total revenue
60,116,820
55,260,722
The Group derives revenue from external customers from the transfer of goods and services at a point in time and over time in the
following major product lines and geographical regions (based on the location of the Group entity preparing the invoice):
Capital Equipment
Precious Metals
Consumables
Total
Full-year ended 30 June 2024
$
$
$
$
Australia
15,694,264
11,769,693
15,677,117
43,141,074
Canada
807,954
3,760,547
995,170
5,563,671
Europe
4,062,722
4,923,781
2,144,916
11,131,419
Revenue from external customers (note 4)
20,564,940
20,454,021
18,817,203
59,836,164
Full-year ended 30 June 2023
Australia
13,918,302
9,316,290
14,084,379
37,318,971
Canada
773,166
3,150,736
1,141,223
5,065,125
Europe
2,855,494
8,222,484
1,712,773
12,790,751
Revenue from external customers (note 4)
17,546,962
20,689,510
16,938,375
55,174,847
NOTE 6: EXPENSES
Consolidated
2024
2023
$
$
Profit/(loss) before income tax includes the following specific expenses:
Depreciation
Depreciation (included in administration expenses)
317,324
206,223
Depreciation (included in cost of goods sold)
322,263
310,586
Amortisation of right to use assets (included in occupancy expenses)
773,066
511,190
Total depreciation
1,412,653
1,027,999
Amortisation
Patents, trademarks and acquired customer lists (included in administration expenses)
83,930
82,547
Research and development (included in administration expenses)
75,750
94,096
Total amortisation
159,680
176,643
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 39
NOTE 6: EXPENSES continued
Consolidated
2024
2023
$
$
Other specific expenses
Employee benefits expenses (included in administration expenses)
8,437,932
7,104,075
Rental expense relating to operating leases (included in occupancy expenses)
49,105
118,157
NOTE 7: INCOME TAX EXPENSE
Consolidated
2024
2023
$
$
(a) Income tax expense
Current tax
4,331,810
3,634,575
Deferred tax
(187,981)
(15,593)
Adjustments for current tax of prior periods
(177,113)
(10,706)
3,966,716
3,608,276
Deferred income tax expense included in income tax expense comprises:
Decrease (increase) in deferred tax assets (note 14)
150,914
(704,367)
(Decrease) increase in deferred tax liabilities (note 20)
(338,895)
688,774
(187,981)
(15,593)
(b) Numerical reconciliation of income tax expense to prima facie tax payable
Profit/(loss) before income tax expense
13,463,589
11,789,322
13,463,589
11,789,322
Tax at the Australian rate of 30% (2023: 30%)
4,039,077
3,536,797
Tax effect of amounts which are not deductible (taxable) in calculating taxable income:
Share-based payments expense
176,273
99,499
Differences arising from tax rates applicable to foreign entities
(31,926)
(44,158)
Sundry items
(39,595)
26,845
4,143,829
3,618,983
Adjustments for current tax of prior periods
(177,113)
(10,707)
Income tax expense
3,966,716
3,608,276
(c)
Tax consolidation legislation
XRF Scientific Limited and its wholly owned Australian controlled entities elected to enter into the tax consolidation regime from
1 July 2005. The accounting policy in relation to this legislation is set out in note 1(f). The entities have entered into a tax funding
agreement under which the wholly-owned entities fully compensate XRF Scientific Limited for any current tax payable assumed
and are compensated by XRF Scientific Limited for any current tax receivable and deferred tax assets relating to unused tax
losses or unused tax credits that are transferred to XRF Scientific Limited under the tax consolidation legislation. The funding
amounts are determined by reference to the amounts recognised in the wholly owned entities’ financial statements. The
amounts receivable/payable under the tax funding agreement are due upon receipt of the funding advice from the head entity,
which is issued as soon as practicable after the end of each financial year. The head entity may also require payment of interim
funding amounts to assist with its obligations to pay tax instalments. The funding amounts are recognised as current
intercompany receivables or payables.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
40 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
NOTE 8: CURRENT ASSETS – CASH AND CASH EQUIVALENTS
Consolidated
2024
2023
$
$
Cash at bank and on hand
4,048,459
5,401,407
Deposits at call
8,000,000
5,000,000
12,048,459
10,401,407
Reconciliation to cash at the end of the year
Balances as above
12,048,459
10,401,407
Balance per statements of cash flows
12,048,459
10,401,407
(a)
Cash at bank and on hand
Cash at bank earns interest at floating rates based on daily bank deposit rates of between 0% to 0.05% pa (2023: 0% to
0.05% pa). Cash available for use is as reported above, with no restrictions applicable.
(b)
Deposits at call
Short-term deposits are made for varying periods of between no set term and 4 months, depending on the immediate cash
requirements of the Company, and earn interest at the respective short-term deposit rates.
(c)
Risk exposure
The Group’s exposure to interest rate risk is discussed in note 2. The maximum exposure to credit risk at the reporting date is
the carrying amount of each class of cash and cash equivalents mentioned above.
NOTE 9: CURRENT ASSETS – TRADE AND OTHER RECEIVABLES
Consolidated
2024
2023
$
$
Trade receivables
9,585,168
8,645,736
Allowance for impairment of receivables
(65,400)
(27,437)
Other receivables – From external parties
4,012
10,615
Total trade and other receivables
9,523,780
8,628,914
Past due but not impaired
Up to 3 months
1,493,975
832,268
Up to 6 months
699,258
302,306
2,193,233
1,134,574
Allowance for impairment of receivables
Balance at 1 July
(27,437)
(65,768)
(Increase)/Decrease in allowance during the year
(37,963)
38,331
Balance at 30 June
(65,400)
(27,437)
(a)
Impaired trade receivables
During the 2024 financial year, the allowance for impaired receivables was increased to $65,400 (2023: allowance was $27,437).
(b)
Past due but not impaired
As at 30 June 2024, trade receivables of the Group of $2,193,233 (2023: $1,134,574) were past due but not impaired. These relate
to a number of independent customers for whom there is no recent history of default. A significant portion of the overdue
receivables have been collected since 30 June 2024. The ageing analysis of these trade receivables is in note 2. The other
classes within trade and other receivables do not contain impaired assets and are not past due. Based on the credit history of
these classes, it is expected that these amounts will be received when due. The Group does not hold any collateral in relation to
these receivables.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 41
NOTE 9: CURRENT ASSETS – TRADE AND OTHER RECEIVABLES continued
(c)
Other receivables
These amounts generally arise from transactions outside the usual operating activities of the Group. All other receivables are
subject to the same terms as trade receivables. Those terms have been described in note 1(k).
(d)
Effective interest rates and credit risk
Information concerning the effective interest rate and credit risk of both current and non-current receivables is set out in note 2.
(e)
Non-current receivables
There are no non-current receivables in the current year (2023: Nil).
NOTE 10: CURRENT ASSETS – INVENTORIES
Consolidated
2024
2023
$
$
Raw materials and spare parts
7,805,148
6,447,950
Finished goods
3,738,892
3,609,800
Precious metals (general)
4,160,511
5,304,365
Platinum on loan (refer to note 16)
1,314,128
1,517,076
17,018,679
16,879,191
Stock was valued at lower of cost and net realisable value on 30 June 2024 and 30 June 2023.
Inventory expense
Inventories recognised as expense during the year ended 30 June 2024 amounted to $24,839,442 (2023: $23,904,716). A credit of
$179,221 was recognised against inventory expense during the year ended 30 June 2024 due to the reversal of prior year
inventory obsolescence provisions. The cost of writing down inventories to net realisable value during the year ended 30 June
2023 was $111,004.
NOTE 11: OTHER CURRENT ASSETS
Consolidated
2024
2023
$
$
Prepayments
566,336
508,099
Other assets
46,596
113,548
612,932
621,647
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
42 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
NOTE 12: NON-CURRENT ASSETS – PROPERTY, PLANT AND EQUIPMENT
Consolidated
Plant &
Equipment
Motor
Vehicles
Property
Improve-
ments
Office
Equip-
ment
Land &
Buildings
Right of
Use Assets:
Leased
Properties
Total
$
$
$
$
$
$
$
At 30 June 2022
Cost or fair value
7,524,448
303,409
1,420,349
348,531
1,823,217
2,076,676
13,496,630
Accumulated depreciation
(2,579,897)
(128,297)
(530,165)
(246,405)
-
(1,348,673)
(4,833,437)
Net book amount
4,944,551
175,112
890,184
102,126
1,823,217
728,003
8,663,193
Year ended 30 June 2023
Opening net book amount
4,944,551
175,112
890,184
102,126
1,823,217
728,003
8,663,193
Additions
555,336
150,692
4,915
46,740
-
1,378,435
2,136,118
Changes to lease terms
-
-
-
-
-
625,312
625,312
Foreign currency adjustment
22,410
7,484
903
5,945
-
-
36,742
Disposals
(11,051)
(7,549)
-
-
-
-
(18,600)
Depreciation charge
(340,821)
(52,714)
(78,311)
(44,963)
-
(511,190)
(1,027,999)
Closing net book amount
5,170,425
273,025
817,691
109,848
1,823,217
2,220,560
10,414,766
At 30 June 2023
Cost or fair value
7,783,580
419,084
1,414,743
347,844
1,823,217
4,080,423
15,868,891
Accumulated depreciation
(2,613,155)
(146,059)
(597,052)
(237,996)
-
(1,859,863)
(5,454,125)
Net book amount
5,170,425
273,025
817,691
109,848
1,823,217
2,220,560
10,414,766
Year ended 30 June 2024
Opening net book amount
5,170,425
273,025
817,691
109,848
1,823,217
2,220,560
10,414,766
Additions
728,030
250,681
506,781
126,561
-
-
1,612,053
Changes to lease terms
-
-
-
-
-
265,432
265,432
Foreign currency adjustment
(22,803)
(13,729)
(717)
(615)
-
-
(37,864)
Disposals
-
(16,061)
-
-
-
-
(16,061)
Depreciation charge
(357,396)
(100,569)
(112,317)
(69,305)
-
(773,066)
(1,412,653)
Closing net book amount
5,518,256
393,347
1,211,438
166,489
1,823,217
1,712,926
10,825,673
At 30 June 2024
Cost or fair value
8,704,323
576,133
1,879,580
453,527
1,823,217
4,006,394
17,443,174
Accumulated depreciation
(3,186,067)
(182,786)
(668,142)
(287,038)
-
(2,293,468)
(6,617,501)
Net book amount
5,518,256
393,347
1,211,438
166,489
1,823,217
1,712,926
10,825,673
All items of property, plant and equipment were recorded at cost as at 30 June 2024 and 30 June 2023.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 43
NOTE 13: NON-CURRENT ASSETS – INTANGIBLE ASSETS
Consolidated
Research &
Development
Goodwill
Patents,
Trademarks
& Other
Rights
Total
$
$
$
$
At 30 June 2022
Cost or fair value
1,449,263
15,463,076
979,864
17,892,203
Accumulated amortisation and impairment
(520,340)
-
(422,010)
(942,350)
Net book amount
928,923
15,463,076
557,854
16,949,853
Year ended 30 June 2023
Opening net book amount
928,923
15,463,076
557,854
16,949,853
Additions
24,748
-
-
24,748
Foreign currency adjustment
-
55,391
13,079
68,470
Amortisation charge
(94,096)
-
(82,547)
(176,643)
Closing net book amount
859,575
15,518,467
488,386
16,866,428
At 30 June 2023
Cost or fair value
1,148,505
15,518,467
983,218
17,650,190
Accumulated amortisation and impairment
(288,930)
-
(494,832)
(783,762)
Net book amount
859,575
15,518,467
488,386
16,866,428
Year ended 30 June 2024
Opening net book amount
859,575
15,518,467
488,386
16,866,428
Additions
30,787
-
-
30,787
Foreign currency adjustment
-
(98,196)
(20,093)
(118,289)
Amortisation charge
(75,750)
-
(83,930)
(159,680)
Closing net book amount
814,612
15,420,271
384,363
16,619,246
At 30 June 2024
Cost or fair value
1,179,292
15,420,271
943,401
17,542,964
Accumulated amortisation and impairment
(364,680)
-
(559,038)
(923,718)
Net book amount
814,612
15,420,271
384,363
16,619,246
All intangible assets were recorded at cost as at 30 June 2024 and 30 June 2023. Patents, trademarks and other rights are
amortised over their estimated useful lives, which vary from 3 to 20 years. Capitalised development costs are amortised over
their useful lives, which vary from 1 to 8 years.
(a)
Impairment tests for goodwill
Goodwill is allocated to the consolidated entity’s cash generating units (CGUs) identified according to specific product lines and
geographical locations.
Consolidated
2024
2023
$
$
Consumables CGU
8,643,465
8,657,596
Precious Metals CGU
3,981,172
4,055,275
Capital Equipment CGU
2,392,003
2,392,003
European Sales Office CGU
403,631
413,593
15,420,271
15,518,467
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
44 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
NOTE 13: NON-CURRENT ASSETS – INTANGIBLE ASSETS continued
(b)
Significant estimate: key assumptions used for value-in-use calculations
The recoverable amount of a CGU is determined based on value-in-use calculations which require the use of assumptions. The
forecast cash flows for 2025 are based on the Board-approved budget. These forecasts are based on projected revenues,
margins and expenses which have been determined based on past performance and management’s expectations for the future.
Expected market conditions in which each CGU operates have been considered in the approved budget. The cash flows for 2026
to 2029 have been based on extrapolating the 2025 forecast by using average growth rates of 3.2% (FY23: 3.2%). Growth rates are
based on past experience and future expectations. The Company is not aware of any significant variations from external market
data. A terminal value of 4x (FY23: 4x to 5x) was used in calculating the value-in-use for each CGU, which equates to a long-term
growth rate of the Company. The pre-tax discount rate of 14.3% (FY23: 14.06%) reflects specific risks relating to each CGU.
(c)
Sensitivity to change in assumptions
The recoverable amount of the CGUs exceeds the carrying amount based on impairment testing performed at 30 June 2024. A
decrease of 20% in the projected annual cash flows or an increase of 2% in the pre-tax discount rate of 14.3% does not result in
an impairment of the goodwill. These changes would be considered reasonably possible changes to the key assumptions.
(d) Impairment charge
No impairment charges have been deemed necessary for the current period.
NOTE 14: NON-CURRENT ASSETS – DEFERRED TAX ASSETS
Consolidated
2024
2023
$
$
Amounts recognised directly in equity:
Share issue expenses
3,401
2,607
Amounts recognised in profit or loss:
Employee benefits
806,075
717,066
Deferred tax asset recognised on prior year losses by German subsidiary
98,574
53,836
Deferred tax asset recognised on lease liabilities
528,274
672,670
Accruals
110,992
140,781
Provisions
37,035
148,305
1,580,950
1,732,658
Net deferred tax assets
1,584,351
1,735,265
Movements:
Opening balance at 1 July
1,735,265
1,030,898
(Charged)/credited to profit or loss (note 7)
(150,914)
704,367
Closing balance at 30 June
1,584,351
1,735,265
Deferred tax assets expected to be recovered within 12 months
505,256
506,034
Deferred tax assets expected to be recovered after more than 12 months
1,079,095
1,229,231
1,584,351
1,735,265
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 45
NOTE 15: CURRENT LIABILITIES – TRADE AND OTHER PAYABLES
Consolidated
2024
2023
$
$
Trade payables
1,245,666
955,007
Sundry creditors and accruals
1,814,002
2,222,136
Employee benefits – annual leave (a)
1,038,427
828,610
4,098,095
4,005,753
Terms and conditions of trade payables vary between suppliers; however, terms of trade are generally 30 days.
(a)
Amounts not expected to be settled within the next 12 months
The entire obligation is presented as current, since the Group does not have an unconditional right to defer settlement. However,
based on past experience, the Group does not expect all employees to take the full amount of accrued leave within the next 12
months. The following amounts reflect leave that is not expected to be taken within the next 12 months:
Consolidated
2024
2023
$
$
Annual leave obligations expected to be settled after 12 months
685,362
546,883
(b)
Foreign exchange risk exposure
Information about the Group’s exposure to foreign exchange risk is provided in note 2.
NOTE 16: CURRENT LIABILITIES – PROVISIONS
Consolidated
2024
2023
$
$
Provision for platinum loan (a)
1,314,128
1,517,076
Long service leave (b)
566,960
522,558
Dividends payable to ordinary shareholders
228,828
193,285
Making good of leases
15,000
217,500
Other provisions
3,052
9,414
2,127,968
2,459,833
(a)
Provision for platinum loan
XRF has borrowed (and has title to under a master contract) $1,314,128 of platinum metal, which is inventoried to facilitate
manufacturing processes and reduce lead times. This is funded by a loan facility, with a term of 6 months. Interest is calculated
at market rates and payable at maturity. At maturity, the facility will be renewed for an additional term or the platinum will be
returned. These liabilities are offset by an inventory asset of $1,314,128.
(b)
Amounts not expected to be settled within the next 12 months
The current provision for long service leave includes all unconditional entitlements where employees have completed the
required period of service and also those where employees are entitled to pro-rata payments in certain circumstances. The
entire amount is presented as current, since the Group does not have an unconditional right to defer settlement. Based on past
experience, the Group does not expect all employees to take the full amount of accrued long service leave or require payment
within the next 12 months. The following amounts reflect leave that is not expected to be paid within the next 12 months:
Consolidated
2024
2023
$
$
Long service leave obligations expected to be settled after 12 months
425,220
391,919
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
46 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
NOTE 17: CURRENT & NON-CURRENT LIABILITIES – BORROWINGS
Consolidated
2024
2023
Current
Non-Current
Current
Non-Current
$
$
$
$
Property loan 1
1,305,000
-
174,000
1,290,500
Import loan 2
314,179
-
607,413
-
1,619,179
-
781,413
1,290,500
1 Consists of a three-year, interest-bearing loan, initially used to fund the purchase of a property in Melbourne. The facility was
refinanced in 2021, extending the maturity date to November 2024. Instalments are paid monthly (including principal and
interest), at a rate of 6.44% per annum (2023: 6.27%). As security for the loan facility, the lender holds a registered first
mortgage over the acquired property, plus unlimited cross guarantees and indemnities by all subsidiaries within the XRF group
(excluding subsidiaries in Canada, Germany and Orbis Mining Pty Ltd). The fair value of the loan is estimated to be $1,332,236,
calculated using current market interest rates. The carrying value of the loan is $1,305,000. Covenants applicable to the loan
include: the loan to property value ratio must not exceed 65%; the interest cover ratio must not be less than 3.5x; the debt to
tangible net worth ratio must not exceed 55%. The Group has met all covenant requirements to date.
2 Consists of a short-term loan (less than 180 days) used to finance the importation of certain raw materials used to produce
finished goods. Interest is payable on maturity, at a rate of 6.31%.
2024
2023
$
$
Net debt reconciliation
Total borrowings at 1 July
2,071,913
2,768,102
Proceeds from borrowings
1,868,662
2,711,497
Repayment of borrowings
(2,321,396)
(3,407,686)
Total borrowings at 30 June
1,619,179
2,071,913
NOTE 18: LEASES - RIGHT OF USE ASSETS AND LIABILITIES
The following right-of-use assets have been recognised on the balance sheet at 30 June 2024:
2024
2023
$
$
Leased properties (refer to note 12)
1,712,926
2,220,560
Total right-of-use assets
1,712,926
2,220,560
The following liabilities have been recognised on the balance sheet at 30 June 2024:
2024
2023
$
$
Current lease liabilities
615,255
603,701
Non-current lease liabilities
1,145,658
1,638,531
Total lease liabilities
1,760,913
2,242,232
(a) Extension and termination options
Extension and termination options are included in a number of property leases across the Group. These terms are used to
maximise operational flexibility in terms of managing contracts. The majority of extension and termination options held are
exercisable only by the Group and not by the respective lessor. Approximately 58% of the total lease payments made during the
year relate to optional lease extension periods.
(b) Critical judgements in determining the lease term
Potential future cash outflows of $1,733,430 have not been included in the lease liability because it is not reasonably certain that
the leases will be extended (or not terminated).
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 47
NOTE 19: CURRENT LIABILITIES – OTHER CURRENT LIABILITIES
Consolidated
2024
2023
$
$
Customer deposits
597,029
2,261,368
Revenue received in advance
331,509
141,693
928,538
2,403,061
NOTE 20: NON-CURRENT LIABILITIES – DEFERRED TAX LIABILITIES
Consolidated
2024
2023
$
$
Amounts recognised in profit or loss
Research and development
244,383
257,872
Deferred tax liability recognised on lease right of use assets
513,878
666,168
Depreciation
178,388
357,675
Other
28,454
22,283
Net deferred tax liabilities
965,103
1,303,998
Movements:
Opening balance at 1 July
1,303,998
615,224
Charged/(credited) to profit or loss (note 7)
(338,895)
688,774
Closing balance 30 June
965,103
1,303,998
NOTE 21: NON-CURRENT LIABILITIES – PROVISIONS
Consolidated
2024
2023
$
$
Employee benefit – long service leave
132,442
118,447
NOTE 22: ISSUED CAPITAL
Consolidated
Consolidated
2024
2023
2024
2023
Shares
Shares
$
$
Ordinary shares fully paid
138,109,375
137,049,775
21,410,923
20,414,399
138,109,375
137,049,775
21,410,923
20,414,399
Movements in ordinary share capital:
Date
Details
Number of shares
Issue Price ($)
$
1 July 2022
Opening balance
135,892,049
19,632,304
14 October 2022
Shares issued under dividend reinvestment plan
1,088,726
0.6600
718,559
14 October 2022
Less: transaction costs
(4,214)
17 March 2023
Shares issued under employee share scheme
69,000
1.0000
69,000
17 March 2023
Less: transaction costs
(1,250)
30 June 2023
Closing balance
137,049,775
20,414,399
1 July 2023
Opening balance
137,049,775
20,414,399
13 October 2023
Shares issued under dividend reinvestment plan
991,502
0.9300
922,097
13 October 2023
Less: transaction costs
(5,296)
12 March 2024
Shares issued under employee share scheme
68,098
1.1600
78,994
12 March 2024
Less: transaction costs
(1,277)
30 June 2024
Deferred tax adjustments
2,006
30 June 2024
Closing balance
138,109,375
20,410,923
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
48 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
NOTE 22: ISSUED CAPITAL continued
(a)
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the
number of and amount paid on the shares held. In a poll, each share is entitled to one vote.
(b)
Dividend reinvestment plan
The parent entity has a dividend reinvestment plan in place and shares were issued to participants in October 2023.
(c)
Capital risk management
The Group’s objectives when managing capital are to safeguard its ability to continue as a going concern, so that it can continue
to provide returns to shareholders and benefits for other stakeholders and to maintain an optimal capital structure to reduce the
cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt. No formal targets are in place for
gearing ratios.
Consolidated
2024
2023
$
$
The gearing ratios at 30 June 2024 and 30 June 2023 were as follows:
Total borrowings
1,619,179
2,071,913
Less: cash and cash equivalents
(12,048,459)
(10,401,407)
Net debt *
(10,429,280)
(8,329,494)
Total equity
55,540,208
49,577,667
Total equity plus net debt
45,110,928
41,248,173
Gearing ratio *
-23.12%
-20.19%
* These figures are negative due to the Company’s positive net cash position.
NOTE 23: RESERVES AND RETAINED PROFITS
Consolidated
2024
2023
$
$
(a)
Reserves
Foreign currency translation reserve
927,465
1,164,262
Options reserve
-
759,243
Share-based payments reserve
771,244
262,660
Balance 30 June
1,698,709
2,186,165
(b)
Retained Profits
Movements in retained profits were as follows:
Balance 1 July
26,653,537
22,365,014
Net profit for the year
8,885,264
7,685,827
Dividends paid or provided for
(4,522,643)
(3,397,304)
Transfer options expired in prior periods to retained earnings
759,243
-
Balance 30 June
31,775,401
26,653,537
(c)
Nature and purpose of reserves
Foreign currency translation reserve
The foreign currency translation reserve is used to recognise the unrealised gains and losses arising from the consolidation of
subsidiaries denominated in currencies other than Australian dollars.
Share-based payment reserve
The share-based payments reserve is used to recognise the value of equity-settled share-based payments.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 49
NOTE 24: DIVIDENDS
Consolidated
2024
2023
$
$
Final dividend for the prior financial year, paid in the current financial year
4,522,643
3,397,304
Total dividends provided for or paid
4,522,643
3,397,304
Amounts paid during the current period include a final dividend of 3.3 cents per share (FY23: 2.5 cents), paid to eligible holders
of 137,049,775 shares (FY23: 135,892,049).
A fully franked dividend of 3.9 cents per share has been declared on ordinary shares post 30 June 2024.
Franked Dividends
Consolidated
2024
2023
$
$
Franking credits available for subsequent financial years based on a tax rate of 30% (2023:30%)
10,354,023
9,120,005
The above amounts represent the balance of the franking account as at the end of the financial year, adjusted for:
(a) franking credits that will arise from the payment of the amount of the provision for income tax;
(b) franking debits that will arise from the payment of dividends recognised as a liability at the reporting date; and
(c)
franking credits that will arise from the receipt of dividends recognised as receivables at the reporting date.
The consolidated amounts include franking credits that would be available to the parent entity if distributable profits of
subsidiaries were paid as dividends.
The franked portions of the final dividends recommended after 30 June 2024 will be franked out of existing franking credits or
out of franking credits arising from the payment of income tax in the year ended 30 June 2024. The impact on the franking
account of the dividend recommended by the directors since year end, but not recognised as a liability at year end, will be a
reduction in the franking account of $2,330,673 (2023: $1,938,275).
NOTE 25: CONTINGENCIES
At 30 June 2024, the consolidated entity had no material contingent liabilities in respect of claims, contingent considerations or
any other matters.
NOTE 26: COMMITMENTS
(a)
Lease commitments
XRF Labware Pty Ltd has lease agreements with external suppliers for the provision of 56 kg of platinum, which is used for
working capital purposes. These lease agreements are renewed either quarterly or annually and fees are paid on the current
market price of platinum. The current agreements will expire on various dates between July 2024 and June 2025 and will be
renewed accordingly.
(b)
Financing arrangements
The Group’s undrawn borrowing facilities were as follows as at 30 June 2024:
Consolidated
2024
2023
$
$
Bank overdraft facility
500,000
500,000
Bank guarantee facility (AUD denominated)
31,222
2,015
Import loan facilities
3,185,821
2,892,587
3,717,043
3,394,602
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
50 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
NOTE 27: REMUNERATION OF AUDITORS
During the year the following fees were paid or payable for services provided by the auditor of the Company, its related practices
and non-related audit firms:
Consolidated
2024
2023
$
$
BDO – Australia *
Audit and review of financial reports
138,104
143,535
Taxation services
47,055
28,914
Other services
5,096
11,947
BDO - Belgium
Audit and review of financial reports
68,532
15,154
Taxation services
13,977
9,895
Other services
-
2,298
BDO - Canada
Taxation services
13,199
8,530
Other services
4,531
-
BDO - UK
Audit and review of financial reports
34,131
-
324,625
220,273
* Due to an internal restructuring of BDO’s audit practice, BDO Audit Pty Ltd replaced BDO Audit (WA) Pty Ltd as the
company’s auditor during the year.
NOTE 28: RELATED PARTY TRANSACTIONS
(a)
Parent entity
The ultimate parent and controlling entity is XRF Scientific Limited which at 30 June 2024 owns 50% to 100% of all subsidiaries
listed in note 29.
(b)
Interests in subsidiaries
Interests in subsidiaries are set out in note 29.
(c)
Directors and key management compensation
Consolidated
2024
2023
$
$
Short-term employee benefits
1,387,439
1,187,087
Post-employment benefits
94,376
75,299
Long-term benefits
202,226
371,019
1,684,041
1,633,405
Long-term benefits include share-based payments valued at $168,451. Refer to note 31 for further details.
No other post-employment or termination benefits have been provided. Detailed remuneration disclosures are available in the
Remuneration Report from pages 9-16.
(d)
Loans to key management personnel
There were no loans to any key management personnel during either of the years ended 30 June 2024 or 30 June 2023.
(e)
Other transactions with key management personnel
Premises were rented from a related entity of Director David Brown during the financial year. These properties were rented on
normal commercial terms and conditions, totalling $120,172 (2023: $107,835). No amounts were outstanding at the end of the
year.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 51
NOTE 29: SUBSIDIARIES
The consolidated financial statements incorporate the assets, liabilities, and results of the following subsidiaries in accordance
with the accounting policy described in note 1(b):
Entity holding
Country of
Class of
2024
2023
Name of entity
Incorporation
shares
%
%
XRF Chemicals Pty Ltd
Australia
Ordinary
100
100
XRF Labware Pty Ltd
Australia
Ordinary
100
100
XRF Technology (WA) Pty Ltd
Australia
Ordinary
100
100
XRF Technology (VIC) Pty Ltd
Australia
Ordinary
100
100
XRF Scientific Americas Inc
Canada
Ordinary
100
100
XRF Scientific Europe SPRL
Belgium
Ordinary
100
100
XRF Scientific Europe GmbH
Germany
Ordinary
100
100
XRF Scientific UK Ltd
United Kingdom
Ordinary
100
100
Precious Metals Engineering (WA) Pty Ltd
Australia
Ordinary
100
100
XFlux Pty Ltd
Australia
Ordinary
100
100
Gestion Scancia Inc
Canada
Ordinary
100
100
Orbis Mining Pty Ltd
Australia
Ordinary
50
50
The proportion of ownership interest is equal to the proportion of voting power held.
NOTE 30: RECONCILIATION OF PROFIT AFTER INCOME TAX TO NET CASH FLOW PROVIDED
BY OPERATING ACTIVITIES
(a)
Reconciliation of profit after income tax to net cash flow provided by operating activities
Consolidated
2024
2023
$
$
Profit for the year
8,885,264
7,685,828
Depreciation and amortisation
1,572,333
1,204,642
Profit attributable to NCI
611,609
495,218
Share based payments
587,578
331,660
Net exchange differences
(351,575)
309,014
Net (gain) loss on sale of non-current assets
2,425
-
(Increase) decrease in trade and other debtors
(894,866)
(2,400,577)
(Increase) decrease in inventories
(139,488)
(1,357,784)
(Increase) decrease in other current assets
8,715
(106,435)
(Increase) decrease in deferred tax asset
150,914
(704,367)
(Decrease) increase in trade and other creditors
92,342
928,295
(Decrease) increase in provision for income taxes
(304,040)
656,420
(Decrease) increase in provision for deferred income tax
(338,895)
688,774
(Decrease) increase in other liabilities
(1,474,524)
1,515,088
(Decrease) increase in other provisions
(317,870)
(829,258)
Net cash inflow from operating activities
8,089,922
8,416,518
(b)
Non-cash investing and financing activities
Consolidated
2024
2023
$
$
Additions to right-of-use assets (note 12)
265,432
2,003,747
Shares issued under employee share scheme (note 31)
78,994
69,000
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
52 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
NOTE 31: SHARE-BASED PAYMENTS
Consolidated
2024
2023
$
$
Performance rights issued to employees (a)
508,584
262,660
Shares issued to employees (b)
78,994
69,000
Total share-based payments (included in administration expenses)
587,578
331,660
(a)
Performance Rights Plan
Performance rights (PRs) are granted to employees at the discretion of the Board based on the Performance Rights Plan (Plan)
approved by the Board.
The Board may invite eligible employees to participate in the Plan and acquire PRs for no consideration. The PRs vest upon the
satisfaction of any applicable vesting conditions, following which the Group will allocate one share per PR. Vesting conditions
include total shareholder return, earnings per share growth rates and service periods. Where vesting conditions are not met, the
PRs will lapse. Currently active PRs are subject to the following performance conditions:
•
Indexed Total Shareholder Returns
Total Shareholder Return (TSR) measures the growth in the Group’s share price together with the value of dividends during
the period. When calculating the Group’s TSR, its share price at the beginning and end of the performance period will be
calculated as a one-month VWAP (i.e. July in year 1 and June in year 3). The percentage of PRs out of this tranche that vest
will be determined by reference to the relative TSR of the Group achieved over the three-year performance period,
compared to the TSR of the S&P/ASX Small Ordinaries Accumulation Index (ASOAI), as follows:
Performance against the relevant condition(s)
Quantum of Performance Rights subject to
performance conditions that vest (%)
Less than index TSR
Below 100% of the proportionate change in the ASOAI index over
the relevant performance period
Nil
Equal to index TSR
At 100% of the proportionate change in the ASOAI index over the
relevant performance period
50%
Greater than index TSR
Between 100% and 120% of the proportionate change in the ASOAI
index over the relevant performance period
Pro-rata between 50% and 100%
Threshold vesting of this tranche of the PRs occurs where the Company’s TSR equals the S&P/ASX Small Ordinaries
Accumulation Index TSR over the performance period. For the whole tranche of PRs to vest, the Company’s TSR must
exceed the TSR of the S&P/ASX Small Ordinaries Index over the performance period by 20 per cent.
•
Earnings Per Share Compound Annual Growth Rate
Earnings per share (EPS) is based on the consolidated statutory net profit after tax of the Group, in proportion to the total
number of shares issued. The Board retains the sole discretion to include or exclude certain one-off items, to calculate an
adjusted profit which is a true reflection of the trading results. The percentage of PRs out of this tranche that vest will be
determined by reference to the EPS compound annual growth rate (CAGR), as follows:
EPS compound annual growth rate (EPS CAGR)
Percentage of EPS-tested rights vesting
<10%
Nil
10%
50%
Between 10% - 20%
Pro-rata between 50% and 100%
>=20%
100%
The difference in EPS between year 0 and year 3 is the basis of the EPS CAGR calculation. For example:
o
An EPS CAGR of 10% equates to a 33.1% increase in EPS between year 0 and year 3
o
An EPS CAGR of 20% equates to a 72.8% increase in EPS between year 0 and year 3
•
Service Period
The percentage of performance rights out of this tranche that vest, if any, will be determined after the employee has
remained continuously employed by the Group for the duration of the performance period.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 53
NOTE 31: SHARE-BASED PAYMENTS continued
(i) Summary of active performance rights
At 30 June 2024, a total of 2,191,663 PRs have been granted to employees. The key details of each currently active Plan are
summarised in the table below:
Plan
Grant date
Performance
period
Performance
conditions
Value
per PR
Number of
PRs issued
Percentage
vested
Vesting
Period
2022
(MD)
11/11/2022
01/07/22 to
30/06/25
TSR
$0.5240
201,251
To be
determined
August
2025
EPS
$0.7200
201,251
2022
(Executives)
11/11/2022
01/07/22 to
30/06/25
TSR
$0.5240
410,888
To be
determined
August
2025
EPS
$0.7200
287,892
Service Period
$0.7200
122,996
2022
(Key staff)
11/11/2022
01/07/22 to
30/06/25
Service Period
$0.7200
280,000
To be
determined
August
2025
2023
(MD)
13/11/2023
01/07/23 to
30/06/26
TSR
$0.5638
214,634
To be
determined
August
2026
2023
(Executives)
13/11/2023
01/07/23 to
30/06/26
TSR
$0.5638
472,751
To be
determined
August
2026
The fair value of the PRs will be expensed proportionally over the vesting period. For the year ended 30 June 2024, the Group has
recognised $508,584 of share-based payment expense in the Consolidated Statement of Profit or Loss and Other Comprehensive
Income
(ii) Performance rights issued during the current period
The fair value of the PRs granted during the year ended 30 June 2024 was determined using the Monte Carlo Simulation and
Black Scholes methods, with the following key assumptions:
Assumption
Value
Underlying security spot price
$1.02
Exercise price
Nil
Valuation date
13 November 2023
Commencement of performance period
1 July 2023
Performance measurement date
30 June 2026
Performance period (years)
3.00
Remaining performance period (years)
2.63
Volatility of XRF
40.5%
Volatility of the index
13.2%
Risk-free rate
4.3%
Dividend yield
3.2%
Valuation per PR
$0.5638
On 31 October 2023, the Group received approval from shareholders to issue 214,634 PRs to the Managing Director,
Vance Stazzonelli. On 13 November 2023, 687,385 PRs were issued to employees (including the shareholder-approved number
issued to the Managing Director).
(b)
Employee Share Plan
Consolidated
2024
2023
$
$
Shares issued to employees (included in administration expenses)
78,994
69,000
The XRF Scientific Exempt Employee Share Plan was set up to provide eligible employees with an opportunity to acquire shares
for no consideration, which will align their interests more closely with the Company's shareholders and provide greater incentive
for them to focus on the Company's longer-term goals. Under the rules of the plan, a holding lock will be placed on the shares
for a period of three years from the date of issue. On 12 March 2024, 68,098 shares were issued to employees, with a value of
$1.16 per share. This was the volume-weighted average price of XRF shares over the week up to the time of issue.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
54 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
NOTE 32: EARNINGS PER SHARE
Consolidated
2024
2023
Cents
Cents
(a)
Basic earnings per share
Profit attributable to the ordinary equity holders of the Company
6.4
5.6
(b)
Diluted earnings per share
Profit attributable to the ordinary equity holders of the Company
6.4
5.6
$
$
(c)
Reconciliations of earnings used in calculating earnings per share
Profit attributable to the ordinary equity holders of the Company
8,885,264
7,685,827
Number
Number
(d)
Weighted average number of shares used as the denominator
Weighted average number of ordinary shares used as the denominator in calculating basic
earnings per share
137,782,193
136,687,618
NOTE 33: PARENT ENTITY FINANCIAL INFORMATION
(a)
Summary financial information
The information in this note has been prepared using the same accounting policies as presented in Note 1. The individual
financial statements for the parent entity show the following aggregate amounts.
2024
2023
$
$
Statement of Financial Position
Current assets
17,973,410
14,705,482
Total assets
33,086,125
30,045,958
Current liabilities
34,424,896
28,255,110
Total liabilities
35,390,457
29,573,280
Shareholder equity
Issued capital
21,410,923
20,414,399
Reserves
1,730,927
2,094,671
Retained earnings
(25,446,182)
(22,036,392)
(2,304,332)
472,678
Total comprehensive income / (loss) for the year before tax
303,996
408,468
Tax benefit / (expense)
49,615
(80,095)
Total comprehensive income / (loss) for the year after tax
353,611
328,373
(b)
Contingent liabilities of the parent entity
The parent entity did not have any contingent liabilities as at 30 June 2024 or 30 June 2023. Letters of financial support have
been provided to certain foreign subsidiaries to ensure their business continuity. These letters are not considered to be financial
guarantees under AASB 9 Financial Instruments.
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
FOR THE YEAR ENDED 30 JUNE 2024
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 55
NOTE 34: EVENTS OCCURRING AFTER THE REPORTING DATE
On 9 July 2024, XRF announced that it had exercised the call option to acquire the remaining 50% of Orbis Mining, with the
acquisition completed on 25 July 2024.
A final dividend of 3.9 cents per share fully franked (FY23: 3.3 cents per share fully franked) was declared on 19 August 2024,
with a record date of 13 September 2024 and payment date of 27 September 2024.
There were no other events subsequent to the reporting date which have significantly affected or may significantly affect the XRF
Scientific Limited operations, results or state of affairs in future years.
CONSOLIDATED ENTITY DISCLOSURE STATEMENT
FOR THE YEAR ENDED 30 JUNE 2024
56 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
Name of entity
Type of entity
Share
capital
held
Country of
incorporation
Australian
or foreign
tax resident
Jurisdiction of
foreign tax
residents
XRF Chemicals Pty Ltd
Body corporate
100%
Australia
Australian
N/A
XRF Labware Pty Ltd
Body corporate
100%
Australia
Australian
N/A
XRF Technology (WA) Pty Ltd
Body corporate
100%
Australia
Australian
N/A
XRF Technology (VIC) Pty Ltd
Body corporate
100%
Australia
Australian
N/A
XRF Scientific Americas Inc
Body corporate
100%
Canada
Foreign
Canada
XRF Scientific Europe SPRL
Body corporate
100%
Belgium
Foreign
Belgium
XRF Scientific Europe GmbH
Body corporate
100%
Germany
Foreign
Germany
XRF Scientific UK Ltd
Body corporate
100%
UK
Australian
N/A
Precious Metals Engineering (WA) Pty Ltd
Body corporate
100%
Australia
Australian
N/A
XFlux Pty Ltd
Body corporate
100%
Australia
Australian
N/A
Gestion Scancia Inc
Body corporate
100%
Canada
Foreign
Canada
Orbis Mining Pty Ltd
Body corporate
50%
Australia
Australian
N/A
DIRECTORS’ DECLARATION
FOR THE YEAR ENDED 30 JUNE 2024
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 57
XRF Scientific Limited and its controlled entities
ACN 107 908 314
The Directors of the Company declare that:
1.
The financial statements, comprising the Consolidated Statement of Profit or Loss and Other Comprehensive
Income, Consolidated Statement of Financial Position, Consolidated Statement of Cash Flow, Consolidated
Statement of Changes in Equity and accompanying notes, are in accordance with the Corporations Act 2001
and:
(a)
Comply with Accounting Standards and the Corporations Regulations 2001 and other mandatory
professional reporting requirements after 2001; and
(b)
Give a true and fair view of the consolidated entity’s financial position as at 30 June 2024 and of
its performance for the year ended on that date.
2.
The Consolidated Entity Disclosure Statement as at 30 June 2024 set out on page 56 is true and correct.
3.
In the Directors’ opinion there are reasonable grounds to believe that the Company will be able to pay its
debts as and when they become due and payable.
4.
The Directors have been given the declarations by the Chief Executive Officer and Chief Financial Officer as
required by section 295A.
5.
The Company has included in the notes to the financial statements an explicit and unreserved statement of
compliance with International Financial Reporting Standards.
This declaration is made in accordance with a resolution of the Board of Directors and is signed for and on behalf
of the Directors by:
Fred S Grimwade
Chairman
Dated this 19th day of August 2024
BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an
Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form
part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
INDEPENDENT AUDITOR'S REPORT
To the members of XRF Scientific Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of XRF Scientific Limited (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2024, 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 report, including material accounting policy information, the consolidated entity
disclosure statement and the directors’ declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its
financial performance for the year ended on that date; and
(ii)
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 Corporations
Act 2001 and the ethical requirements of the Accounting Professional and 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 of 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.
Carrying Value of Goodwill – Impairment Assessment
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 13 of the financial report,
goodwill represents a significant asset which the
Group has recorded in the statement of financial
position. Under the Australian Accounting Standards,
goodwill is required to be tested annually for
impairment.
As set out in Note 13, the directors’ assessment of the
recoverable amount of the cash generating units
(“CGU”) for which goodwill requires significant
judgement, in particular in estimating future growth
rates, discount rates and the expected cash flows of
the CGU to which the goodwill has been allocated.
As a result, this was determined to be a key audit
matter due to the above noted judgements and the
significance of goodwill to the group’s financial
position.
Our procedures included, but were not limited to the
following:
•
Evaluating the Group’s determination of CGU’s and
the allocation of assets to the carrying value of
CGU’s;
•
Obtaining the Group’s value in use models and
agreeing the first years forecast to board approved
budgets;
•
Evaluating management’s ability to achieve cash
flows by comparing prior period forecasts against
actual results;
•
Assessing the key inputs in the value in use models
including the forecast net profit after tax, discount
rates, terminal value determination and growth
rates for each CGU;
•
Using our internal valuation specialist to assess the
reasonableness of the discount rate;
•
Performing a sensitivity analysis on the key
financial assumptions in the models. These
included budgeted net profit after tax, multipliers
used in the terminal year of cash flows, and the
discount rates applied; and
•
Evaluating the adequacy of the related disclosures
in the financial report.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2024, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of:
a) the financial report that gives a true and fair view in accordance with Australian Accounting
Standards and the Corporations Act 2001 and
b) the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and
for such internal control as the directors determine is necessary to enable the preparation of:
i)
the financial report that gives a true and fair view and is free from material misstatement,
whether due to fraud or error; and
ii)
the consolidated entity disclosure statement that is true and correct and is free of 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 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.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 9 to 16 of the directors’ report for the
year ended 30 June 2024.
In our opinion, the Remuneration Report of XRF Scientific Limited, for the year ended 30 June 2024,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit Pty Ltd
Jarrad Prue
Director
Perth, 19 August 2024
SHAREHOLDER INFORMATION
62 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
Additional information (as at 31 July 2024) required by the ASX Listing Rules and not disclosed elsewhere in this
Annual Report is set out below:
SUBSTANTIAL SHAREHOLDINGS
The number of shares held by substantial shareholders and their associates is as follows:
Shareholder
Number of Ordinary Shares 1
Michael Karl Korber
10,472,967
David Brown & Glenys Dawn Brown 2
9,192,200
1 Based on information available to the Company, including substantial holding announcements released to the market.
2 David Brown is a director of XRF Scientific Limited.
NUMBER OF OPTION HOLDERS
Class of Security
Number of Holders
Nil
-
VOTING RIGHTS
In accordance with the Constitution of the Company and the Corporations Act 2001, every member present in
person or by proxy at a general meeting of the members of the Company has:
•
On a vote taken by a show of hands, one vote; and
•
On a vote taken by a poll, one vote for every fully paid ordinary share held in the Company
A poll may be demanded at a general meeting of the members of the Company in the manner permitted by the
Corporations Act 2001.
DISTRIBUTION OF SHARE AND OPTION HOLDERS
Distribution of Shares & Options
Number of
Holders of
Ordinary Shares
Number of
Holders of
Options
1-1,000
740
–
1,000-5,000
1,296
–
5,001-10,000
539
–
10,001-100,000
941
–
100,001 and above
171
–
3,687
–
SHAREHOLDER INFORMATION
XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT 63
TOP 20 SHAREHOLDERS
No.
Holder Name
Number of
Ordinary Shares
Percentage of
Ordinary Shares
1
MICHAEL KARL KORBER
10,472,967
7.51%
2
EVELIN INVESTMENTS PTY LIMITED
7,315,216
5.25%
3
D & GD BROWN NOMINEES PTY LTD 1
5,881,837
4.22%
4
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
4,619,989
3.31%
5
CITICORP NOMINEES PTY LIMITED
4,024,532
2.89%
6
PANDORA SUPER (WA) PTY LTD 2
3,310,363
2.37%
7
BETA GAMMA PTY LTD
3,000,000
2.15%
8
GREAT WESTERN CAPITAL PTY LTD
2,939,374
2.11%
9
STEPHEN WILLIAM PROSSOR & FIONA CHRISTIAN PROSSOR
2,669,767
1.91%
10
MANDEL PTY LTD
2,364,999
1.70%
11
G & E PROPERTIES PTY LTD
2,288,275
1.64%
12
PEBADORE PTY LTD
2,014,036
1.44%
13
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
1,775,359
1.27%
14
JEFFREY DAVID BROWN & PENNY NARELLE BROWN
1,743,506
1.25%
15
FREDERIC DAVIDTS
1,672,038
1.20%
16
BNP PARIBAS NOMINEES PTY LTD
1,456,110
1.04%
17
TZELEPIS NOMINEES PTY LTD
1,337,518
0.96%
18
WILLIAM ROBERT SIMSON
1,113,500
0.80%
19
NETWEALTH INVESTMENTS LIMITED
940,308
0.67%
20
JASNA HAY
800,100
0.57%
61,739,794
44.28%
1 D & GD Brown Nominees Pty Ltd is a company owned by David Brown (director of XRF Scientific Limited) and his wife.
2 Pandora Super (WA) Pty Ltd is the private superanniation fund of David Brown (director of XRF Scientific Limited) and his wife.
RESTRICTED SECURITIES
There are currently no restricted securities.
NON-MARKETABLE PARCELS
Class of Security
Number of Securities
Number of Holders
Ordinary shares
6,019
98
UNQUOTED SECURITIES
Class of Security
Number of Securities
Number of Holders
Performance rights
2,191,663
21
ON-MARKET BUY BACK
The Company does not have a current on-market buy-back scheme.
CORPORATE DIRECTORY
64 XRF SCIENTIFIC LIMITED | 2024 ANNUAL REPORT
DIRECTORS
Fred Grimwade (Non-Executive Chairman)
David Brown (Non-Executive Director)
David Kiggins (Non-Executive Director)
Vance Stazzonelli (Managing Director)
COMPANY SECRETARIES
Vance Stazzonelli
Andrew Watson
KEY MANAGEMENT PERSONNEL
Andrew Watson (Chief Financial Officer)
REGISTERED OFFICE
86 Guthrie Street
Osborne Park WA 6017
Tel: +61 8 9244 0600
Fax: +61 8 9244 9611
COMPANY AUDITOR
BDO Audit Pty Ltd
Level 9, 5 Spring Street
Perth WA 6000
BANKERS
HSBC Bank Australia Pty Ltd
Level 33, 250 St Georges Terrace
Perth WA 6000
SOLICITORS
HWL Ebsworth Pty Ltd
Level 20, 240 St Georges Terrace
Perth WA 6000
SHARE REGISTRY
Automic Pty Ltd
Level 5, 191 St Georges Terrace
Perth WA 6000
Phone: 1300 288 664
WEBSITE
www.xrfscientific.com
ASX
Company Code: XRF