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CLPS IncorporationANNUAL
REPORT
2015
Background
Dicker Data is an Australian
owned and operated, ASX listed
distributor of computer hardware,
software and related products
with over 37 years’ experience.
Incorporated in 1978, Dicker Data’s mission
is to inspire, educate and enable ICT resellers
to achieve their full potential through the
delivery of unparalleled service, technology
and logistics. Dicker Data is Australia’s largest
locally owned and operated ICT distributor.
Serving in excess of 5,000 registered reseller
partners annually, Dicker Data boasted
revenues in excess of $1B in FY15. Since
listing on the ASX in January 2011, Dicker Data
has delivered consistently profitable results
for shareholders whilst maintaining a 100%
dividend policy.
In April 2014 Dicker Data acquired fellow
IT distributor, Express Data, significantly
increasing the size and scale of the
organisation. Purchased for its complementary
vendor line-up and strength in the enterprise
market, the Express Data operation was fully
integrated into the Dicker Data organisation and
all acquisition debt was retired within 18 months
of the purchase date. The acquisition
significantly boosted both the revenue and
profitability metrics of the organisation resulting
in Dicker Data being positioned as one of the
top three largest distributors in the Australian
landscape.
Contents
1 Our Brands
2
Board of Directors and Senior
Management
3 Chairman’s Letter
4 Results Highlights
6 Directors’ Report
19 Statement of Profit or Loss
and other Comprehensive Income
20 Statement of Financial Position
21 Statement of Changes in Equity
22 Statement of Cash Flows
23 Notes to the Financial Statements
58 Directors’ Declaration
59 Auditor Declaration of Independence
60 Independent Auditors Report
62 Shareholder Information
Registered Office
The registered office of the company is:
230 Captain Cook Drive
KURNELL NSW 2231
•
Dicker Data LimitedBackground
Our Brands
S E R V I C E S
Annual Report 2015 1
Board of Directors
and Senior Management
2
4
6
1
3
5
2
Board of Directors
1. David Dicker
Chairman and Chief Executive Officer
2. Mary Stojcevski
Executive Director
3. Michael Demetre
Executive Director
4. Vladimir Mitnovetski
Executive Director
5. Ian Welch
Executive Director
6. Fiona Brown
Non-executive Director
Senior Management
Senior management team serving
at year end
1. David Dicker
Chairman and Chief Executive Officer
2. Mary Stojcevski
Chief Financial Officer
3. Michael Demetre
Logistics Director
4. Vladimir Mitnovetski
Chief Operating Officer
5. Ian Welch
Chief Information Officer
Dicker Data LimitedChairman’s Letter
Welcome to our full year report for 2015.
Financial Year 2015 was the most successful in our 37 year history.
We exceeded $1 billion dollars in sales and more importantly we made
$31.6m of Net Profit.
We had set a goal for 2015 of over $30m and initially projected $30.9m.
We were able to comfortably exceed that. A very satisfying outcome.
The integration of Express Data was completed in 2015 and the
resulting company has performed exceptionally.
While we still have some capacity at our facility in Kurnell, we have
purchased a 17ha site right next door and we will be building an entirely
new place on this site. We have come close to outgrowing our current
site much more quickly than I had anticipated. A good sign for long
term growth.
Our current building is 15,000 sqm. The new site will allow us to build
a facility of up to approximately 68,000 sqm. That should take us well
into the future.
I’d like to thank all our people for doing an outstanding job and I hope
they are as proud and happy as I am with the result.
Best regards
David Dicker
CEO and Chairman
Sydney, 29 February 2016
Revenue up 15.1% to
$1,077.6million
Annual Report 2015 3
Results Highlights
Results Summary
Comparative 12 month period Jan – Dec
Key Financial Data
Total revenue
Gross Profit
Earnings before interest, tax, depreciation [EBITDA]
(before one-off integration and share acquisition costs)
Operating profit before tax
(before one-off integration and share acquisition costs)
Net profit before tax
Net profit after tax [NPAT]
Normalised Earnings per share (cents)
Dividends paid
Dividends per share (cents)
Results Summary
Comparative 6 month period Jul – Dec
Key Financial Data
Total revenue
Gross Profit
Earnings before interest, tax, depreciation [EBITDA]
(before one-off integration and share acquisition costs)
Operating profit before tax
(before one-off integration and share acquisition costs)
Net profit before tax
Net profit after tax [NPAT]
Normalised Earnings per share (cents)
Dividends paid
Dividends per share (cents)
4
2015
$’000
[12 Months]
2014
$’000
[12 Months]
1,077,556
103,533
936,492
82,086
42,640
25,374
31,628
29,379
20,499
15.54
18,127
12.20
15,374
4,881
3,057
2.36
6,505
5.01
2015
$’000
[6 Months]
2014
$’000
[6 Months]
546,043
52,472
498,307
45,491
20,562
12,302
15,443
14,724
10,438
7.33
11,938
7.50
6,306
2,334
1,560
3.40
5,611
4.35
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015
Results Highlights
Revenue ($M)
FY15
Jan–Dec14
FY14
FY13
FY12
FY11
662.8
451.6
455.9
384.0
1,077.6
936.5
$0
$200
$400
$600
$800 $1000 $1200
Gross Profit ($M)
FY15
Jan–Dec14
FY14
FY13
FY12
FY11
$0
37.4
34.0
27.4
$20
103.5
82.1
54.2
$40
$60
$80
$100
$120
In February 2015 the
Company changed
its financial year end
to December from a
June year end. For the
period July 2014 to
December 2014 financial
statements were
prepared for a 6 month
transitional financial
year. In the adjacent
graphic the information
is reflected for a June
year end for the years
from FY11 to FY14. The
last two years reflect a
January to December
12 month period.
EBITDA ($M)
FY15
Jan–Dec14
FY14
FY13
FY12
FY11
25.4*
20.6
17.4
16.1
13.1
$0
$10
Operating Profit before Tax ($M)
$20
$30
FY15
Jan–Dec14
FY14
FY13
FY12
FY11
15.4*
14.3
13.3
12.3
8.8
42.6*
$40
$50
31.6*
$0
$5
$10
$15
$20
$25
$30
$35
* Before tax and one-off integration and share acquisition costs
Annual Report 2015 5
Directors’ Report
The directors present their report, together with the financial statements, on the consolidated entity (referred to
hereafter as the ‘consolidated entity’) consisting of Dicker Data Limited (referred to hereafter as the ‘company’ or
‘parent entity’) and the entities it controlled at the end of, or during, the year ended 31 December 2015.
Directors
The following persons were directors of Dicker Data Limited during the financial year end up to the date of this report.
Directors were in office for this entire period unless otherwise stated.
David J Dicker
Fiona T Brown
Mary Stojcevski
Michael Demetre
Vladimir Mitnovetski
Ian Welch (appointed 06.08.15)
Principal Activities
The principal activities of the consolidated entity during the year were wholesale distribution of computer hardware,
software and related products. There were no significant changes in the nature of the activities carried out during the
year.
Dividends
Dividends paid during the financial year were as follows:
Record Date:
Payment Date:
Dividend
(in Dollars)
Amount
($’000)
25-Mar-15
17-Jun-15
01-Sep-15
09-Dec-15
Total
02-Apr-15
26-Jun-15
11-Sep-15
16-Dec-15
0.020
0.027
0.040
0.035
0.122
$2,623
$3,566
$6,363
$5,575
$18,127
Type
Final
Interim
Interim
Interim
FY
2014
2015
2015
2015
Amount
Franked
100%
100%
100%
100%
The total dividends paid during the financial year were 12.20 cents per share or a total of $18.1 million, fully franked.
Total dividends paid for the 12 month period in the year ended 31 December 2014 were 6.05 cents per share.
Our dividend policy provides for fully franked dividends to be paid on a quarterly basis, with the aim to pay out 100%
of the underlying after tax profits from operations after taking into account projected capital expenditure and cash
requirements. The Dividend Reinvestment Plan introduced in March 2014 has been retained for the 2015 year. Of the
$18.1m dividends paid, $14.0m was paid as cash dividends and $4.1m participated in the DRP.
Change of Financial Year
On February 2, 2015 it was decided by the Board of Dicker Data Limited to change the Company’s financial year
end date from 30 June to 31 December. Previously, the Company’s financial year commenced on 1 July and ended
on 30 June. The change was made in order to more closely align the financial year with the Company’s trading year.
The current year is the first full 12 months on this reporting basis. The comparative period was for a transitional
financial year for the 6 month period July 2014 to December 2014.
6
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015Operating and Financial Review
A snapshot of the operations of the consolidated entity for the full year and the results of those operations are as
follows:
The comparatives in the table below are based on a comparable 6 months period from July to December and
provide a like for like comparative for the transitional financial year ending 31 December 2014.
Dec-15
(in 000’s)
Dec-14
(in 000’s)
Change $
(in 000’s)
Change %
Revenues from ordinary activities
$546,043
$498,307
$47,736
Gross Profit
Net operating profit before tax
Net profit before tax
Net profit after tax attributable to members
$52,472
$15,443
$14,724
$10,438
$45,491
$6,306
$2,334
$1,560
$6,981
$9,137
$12,391
$8,878
9.6%
15.3%
144.9%
530.9%
569.1%
The comparatives in the table below are based on a comparable 12 month period from January to December and
the basis for which the Appendix 4E has been prepared and lodged, as it was considered to be most appropriate.
All comparatives noted in the review of operations below are also based on a 12 month comparative for period from
January 2014 to December 2014 as it was considered most appropriate even though the statutory comparative is for
the 6 month period from July 2014 to December 2014. The comparative period has been referred to as the ‘previous
corresponding period’ (pcp).
Dec-15
(in 000’s)
Dec-14
(in 000’s)
Change $
(in 000’s)
Change %
Revenues from ordinary activities
$1,077,556
$936,492
$141,064
Gross Profit
Net operating profit before tax
Net profit before tax
Net profit after tax attributable to members
$103,533
$82,086
$31,628
$29,379
$20,499
$15,374
$4,881
$3,057
$21,447
$16,254
$24,498
$17,442
15.1%
26.1%
105.7%
501.9%
570.6%
Revenue
The revenue for the consolidated entity for the 12 months to 31 December 2015 was $1,077.6m (pcp: $936.5m), up
by $141m (+15.1%) on the previous corresponding period. A company milestone was achieved this year with revenue
for the consolidated entity, for the full financial year finalising in excess of $1 billion and in line with our expectations.
Sources of Revenue Growth 2015
$114.1m
($27.1m)
$16.9m
$1.8m
$12.5m
160
140
120
100
80
60
40
20
0
$22.9m
Existing (Pre-EDH)
Vendors
EDH Vendors
EDH Divestments
Other 2014
Vendor Additions
2015 Vendor
Additions
Other revenues
Annual Report 2015 7
2015 Vendor
Additions
Following the acquisition, headcount increased to 460
staff across Australia and New Zealand, and during the
ensuing 9 months there was a progressive reduction
in headcount, with gradual redundancies associated
with a duplication of functions. The headcount at the
end of the previous corresponding period was 367.
Whilst duplicated roles were further rationalised during
2015, there was also a continued investment in new
headcount for targeted growth areas of the business.
Depreciation, Amortisation and Interest
Depreciation and Amortisation for the reporting period
was $4.0m, up from the prior period of $3.1m due to
the full year impact of an increase in capital expenditure
in office and equipment fit out (to cater for the inclusion
of the Express Data staff at our Kurnell facility), and
amortisation of customer contracts to the value of
$2.0m.
Interest in the reporting period was $7.5m (pcp: $7.1m)
as a result of the increased working capital
requirement, but offset by the impact of the share
capital raising in August 2015.
Integration and Restructuring
During the reporting period and separate to the
operating costs outlined above, there were integration
and restructuring costs incurred totalling $2.2m,
made up largely of redundancy costs. In the previous
corresponding period, there were $10.5m in share
acquisition, integration and restructuring costs relating
to the Express Data acquisition.
Profit
Excluding one-off integration and restructuring costs
operating profit before tax finalised at $31.6m (pcp:
$15.4m) up by 105.7%.
Net Profit after tax increased to $20.4m (pcp: $3.1m),
up by 570.6%.
Earnings per share increased to 14.39 cents per share
(pcp: 2.36 cents), up by 509.7%.
Directors’ Report
A portion of the revenue increase from the previous
corresponding period was due to the acquisition of
Express Data Holdings Pty Ltd (EDH) on April 1, 2014
– the previous corresponding period only contains
9 months of the EDH trading. There were a handful
of vendors that were part of the EDH acquisition that
were not aligned with our core vendor strategy, and
were subsequently divested and discontinued during
2014 and early 2015. These divestments represented
a reduction in revenue of $27.1m from the previous
corresponding period.
Of the vendors that were retained as part of the EDH
acquisition, 2015 saw growth of 33% over the previous
corresponding period.
Of the existing (or pre-acquisition) vendors, we saw
growth of 6.4% over the previous corresponding
period, and new vendors (other than the EDH
acquisition) added during 2014 contributed $12.5m
over the previous corresponding period after their first
full year of trade.
A total of 11 new vendors were on-boarded during
2015 and contributed an incremental $16.9m.
At a country level, Australia grew $116m (+15%),
New Zealand grew $21m (+20%), and our Services
division grew $2m (81%).
At a sector level, we saw strong growth in Hardware
($99m, +13%), Software ($38m, +22%) and Services
($2m, +81%).
Gross Profit
Gross profit for the reporting period was $103.5m
(pcp: $81.0m) an increase of 27.8%. Dicker Data
was able to increase gross profit margins to 9.6%
(pcp: 8.7%) on the back of our enhanced value add
proposition, and strong revenue growth resulting
increased vendor rebate target achievement.
Operating Expenses
Operating Expenses Excluding Integration and
Restructuring Costs
Operating costs for the reporting period were $63.2m
(pcp: $56.7m), an increase of $6.5m (11.5%). As a
proportion of sales, operating costs fell to 5.9% (from
6.1%), with salary related expenses remaining stable
at 4.6% of sales, and other operating expenses falling
to 1.3% of sales (pcp: 1.5%). Headcount across the
group finished FY15 at 360. The prior period included
the business combination of the Express Data Holding
acquisition on 1 April, 2014.
8
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015continuedStatement of Financial Position
Total assets as at 31 December 2015 increased to
$358.3m (pcp: $301.5m).
The company balance sheet reflected an increased
investment in working capital over the previous period.
Cash finalised at $15.8m up by $12.1m (pcp: $3.7m).
Trade receivables were also up from the previous
period to $$164.0m (pcp: $146.2m). Inventories at
period end were $116.3m, up from $84.6m in the
prior period. Trade and other payables were down
to $142.6m (pcp: $145.4m). Working capital days
increased by 15 days. The increase in working
capital days was as a result of selected working
capital investments to take advantage of enhanced
margin opportunities.
Property, plant and equipment was marginally down
at $26.1m from $26.8m in the prior period. With the
completion of the warehouse and office expansion we
don’t anticipate any major capital expenditure for the
FY16 year for the current trading operations. We do
expect however to incur planning and design costs
for the design and DA application for a new warehouse
facility following the purchase of the adjacent land for
this purpose.
Total liabilities as at 31 December 2015 $286.4m up
from the prior period (pcp: $279.8m).
Current Borrowings comprising a receivables purchase
facility with Westpac finished $32.7m lower, at
$90.0m versus the prior period $122.7m. Part of the
current debt reduction was funded by the proceeds
from the share issue in August 2015 and part was
converted to non-current debt with a 5 year corporate
bond issued in March 2015 for a net $38.8m. The
balance of proceeds from both the capital raising and
corporate bond were invested into working capital.
Equity has increased to $71.8m during the period, an
increase from the prior period of $50.1m. This increase
is represented by:
Equity Movement
Equity 31 Dec 2014
Comprehensive Income for FY2015
Dividends Paid
Share Issue (DRP)
Share Issue (Capital Raising)
Equity 31 Dec 2015
$’000
21,701
20,146
(18,127)
4,123
43,989
71,832
The increase in equity has significantly improved both
the Balance Sheet leverage (FY15 - 1.8x v FY14 - 5.65x)
and Net Tangible Assets position (FY15 - $39.7m v
FY14 - $12.2m).
Significant Changes in the State of Affairs
Corporate Bond Offering
On 16th March 2015, the Company engaged FIIG
Securities Limited to arrange the issue of a 5 year
unsecured corporate bond. The offering was
fully subscribed on the 26th March 2015, raising
$38.8 million net of transaction costs at a floating
coupon rate over the 90 day bank bill swap rate.
The bond offering increased the tenure of our debt
maturity profile and diversified our debt funding
sources. The net proceeds of the offering were used
to reduce existing bank debt and to fund working
capital investment.
The bond offering is part of our active approach to
capital management. This bond issue is an important
initiative for the Company which reflects our strategy
to ensure that we have multiple sources of funding
and the security of longer term debt.
Capital Raising
During August 2015, the Company completed an
institutional share capital raising, issuing 23 million
shares plus a further 3 million shares to existing
shareholders under a Share Purchase Plan, both at
$1.75 per share. These issues were fully subscribed
and raised $43.9m net of transactional costs. This
capital raising was used to reduce external debt and to
aid further investment in working capital going forward.
During 2015, the Company also raised a further $4.1m
through the Company’s Dividend Reinvestment Plan
(DRP) for existing shareholders.
Renegotiated Banking Facilities
In November 2015, the Company finalised the renewal
of the Receivable Purchase Facility with Westpac
Banking Corporation. The negotiation resulted in an
increase of the facility limit to $120m for a further 2 year
tenure, improved pricing and more favourable covenant
requirements.
There were no other significant changes in the state
of affairs of the company during the year.
Annual Report 2015 9
Directors’ Report
Matters Subsequent to the end of the
Financial Year
Financial Instruments
On 27 January 2016, the Company entered into
a Derivative Financial Instrument transaction with
Westpac Banking Corporation. The transaction is
an Interest Rate Swap Transaction for $40million
with an effective date of 29 March 2016 and a tenure
of 2 years, maturing on 26th March 2018.
The Company entered the transaction as an interest
rate hedge against the partial tenure of the floating
rate Corporate Bond issued during 2015 and reflects
the Company’s active capital management, providing
some pricing certainty over the next 2 budget cycles
for working capital planning.
Land Acquisition
On 30 October, 2015 the Company exchanged
conditional contracts on the purchase of a 17.2 hectare
parcel of land adjacent to the Company’s current
warehouse facility in Kurnell NSW. The purchase
price was $18m excluding GST (subject to any agreed
adjustments). Of the total new property purchased
there is 10.0 hectares of useable land. This represents
a land size four times the size of our current location.
The purchase will be funded by the recently increased
Westpac Receivables Purchase Facility and available
cash. It is the intention for the existing property
to be sold and leased back for the duration of the
new construction.
We are yet to determine what our requirements will
be and planning will commence for this during the
2016 financial year. Following the Company’s intended
expansion onto this property, any excess land may be
subdivided and sold. Whilst our business continues to
grow this purchase places us in a very good position to
expand our operations and provides the capacity that
will be required to support future growth.
Settlement was scheduled for 26 February 2015 but not
all conditions for settlement were satisfied by the vendor.
Settlement has been postponed and as at the date of
the report this settlement date was yet to be confirmed.
There were no other significant matters subsequent
to the end of the financial year.
Likely Developments and Expected Results
of Operations
We will continue strengthening our enterprise
capabilities in Australia and New Zealand with existing
vendors, as well as onboarding new vendors that
will provide strong technology differentiation and
innovation. Our customer partners will benefit from
the expansion of our value add offering as we further
enhance our cross-vendor enterprise expertise and
resources beyond single vendor architecture.
10
There will also be particular focus on emerging
technologies such as Hyper-convergence
Infrastructures, Software Define Storage and Internet
of Things.
We will continue to invest in our Cloud strategy,
onboarding traditional and non-traditional IT vendors
with strong Cloud product offering. We are also
investing in internal resourcing and structures to
ensure we offer best channel Cloud enablement
programs to our partners.
We have identified an opportunity to expand our
customer base beyond traditional IT by investing
in vendors that cross over the IT, Security and
Surveillance, Electrical and Audio Digital markets, and
see an opportunity to integrate into this parallel market.
Further information on likely developments in the
operations of the company and the expected results
of operations has not been included in this report
because the directors believe it would be likely to result
in unreasonable prejudice to the company.
Environmental Regulation
The consolidated entity is subject to the requirements
of the Product Stewardship (Televisions and
Computers) Regulations 2011. There have been no
instances of non-compliance throughout the year.
Information on Directors
David Dicker – Chief Executive Officer (CEO)
and Chairman
David is the co-founder of the company and has been
a director of the company since its inception. David’s
role as CEO requires focus on Dicker Data’s business
strategy and decision making and under David’s
strategic guidance the company has enjoyed material
growth, establishing Dicker Data as one of the leading
Australia-based distributors of IT products.
Interest in Equities:
60,553,495 Ordinary shares in Dicker Data Limited
Interest in Contracts:
Nil
Special Responsibilities:
Chairman and responsible for the overall business
management and strategy as Chief Executive Officer.
Member of the Audit Committee
Other Current Listed Company Directorships:
None
Other Current Listed Company Directorships Held
in Previous 3 Years:
None
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015continuedFiona Brown – Non-Executive Director
Fiona Brown is the co-founder of Dicker Data and
currently serves as Non-Executive Director of the
company. Fiona has been involved with the business
since it started in 1978 and has been a director of the
company since 1983. As a Non-Executive Director,
Fiona brings her knowledge of the business and 26
years of experience in the IT distribution industry.
Interest in Equities:
52,726,570 Ordinary shares in Dicker Data Limited
56,470 Ordinary shares held by South Coast
Developments Pty Ltd as trustee for the Brown Family
Superfund
Interest in Contracts:
Nil
Special Responsibilities:
Member of the Work Health and Safety Committee
Chairperson of the Audit Committee
Other Current Listed Company Directorships:
None
Other Current Listed Company Directorships
Held in Previous 3 Years:
None
Vladimir Mitnovetski – Chief Operating Officer
Vlad joined the company in 2010 in his role as Category
Manager. In this role he was fully responsible for the
establishment and growth of key volume vendors and
was instrumental in the introduction of new vendors to
Dicker Data’s portfolio. Vlad is a business technology
professional with over 15 years of distribution industry
experience. Vlad started his career at Tech Pacific and
then Ingram Micro where he worked in various roles
before progressing to business unit manager roles
in enterprise and personal systems, working closely
with many leading vendors. Vlad holds a bachelor of
business degree from University of Technology and a
master degree in advance marketing and management
from the University of New South Wales. Vlad was
appointed to the position of Chief Operating Officer on
8th September 2014.
Interest in Equities:
63,010 shares in Dicker Data Limited
Interest in Contracts:
Nil
Special Responsibilities:
Responsible for the sales, vendor alliances and
operations of the consolidated entity.
Member of the Audit Committee.
Other Current Listed Company Directorships:
None
Other Current Listed Company Directorships
Held in Previous 3 Years:
None
Mary Stojcevski – Chief Financial Officer
Mary joined Dicker Data as Financial Controller in
1999. Her responsibilities include all of the financial
management, administration and compliance
functions of the company. Prior to joining Dicker Data
Mary had over 15 years’ experience in accounting
and taxation. Mary holds a Bachelor of Commerce
Degree with a major in Accounting from the University
of New South Wales. Mary is also an Executive
Director of the company and has been a director since
31 August 2010.
Interest in Equities:
19,937 Ordinary shares in Dicker Data Limited
100,225 Ordinary Shares held by Stojinvest Pty Ltd as
trustee for Stojinvest Superannuation Fund
Interest in Contracts:
Nil
Special Responsibilities:
Responsible for the overall financial management of the
consolidated entity
Other Current Listed Company Directorships:
None
Other Current Listed Company Directorships
Held in Previous 3 Years:
None
Michael Demetre – Logistics Director
Michael joined Dicker Data in 2001, where he later
took up the position of Warehouse Storeman which
he held for about 5 years. Michael’s experience in the
operations of the warehouse, general knowledge of
the company and established relationships with other
employees allowed him to undertake the position
of Logistics Director. He has successfully held this
position since 2007. Michael is also an Executive
Director of the company and has been a director since
21st September 2010.
Interest in Equities:
18,571 shares in Dicker Data Limited
Interest in Contracts:
Nil
Annual Report 2015 11
Directors’ Report
continued
Special Responsibilities:
Responsible for the warehouse and logistics
operations.
Other Current Listed Company Directorships:
None
Other Current Listed Company Directorships
Held in Previous 3 Years:
None
Ian Welch – Chief Information Officer
Ian joined Dicker Data in March 2013 as General
Manager – IT before he was appointed Chief
Information Officer on 06 August 2015. Prior to officially
joining Dicker Data Ian spent more than 15 years
consulting to Dicker Data in various roles. During this
period Ian had been instrumental in establishing and
maintaining the IT Systems for Dicker Data and as a
result has a deep understanding of the business and
all related processes. Ian started his career as an IT
Professional working as consultant to businesses in
various sectors. A large proportion of these were in
the logistics space which have allowed Ian to develop
a fundamental understanding of such operations. Ian
is also an Executive Director of the company and was
appointed 06 August 2015.
Interest in Equities:
30,000 shares in Dicker Data Limited
Interest in Contracts:
Nil
Special Responsibilities:
Responsible for IT operations, systems and processes
Other Current Listed Company Directorships:
None
Other Current Listed Company Directorships
Held in Previous 3 Years:
None
Company Secretary
Mrs Leanne Ralph B.Bus, ACIS, AAICD was appointed
to the position of Company Secretary on the 8th of
February 2011. Leanne has over 24 years’ experience
as a Chief Financial Officer and Company Secretarial
roles for various publicly listed and unlisted entities.
Leanne is a qualified Chartered Secretary and Director
of Boardworx Australia Pty Ltd which provides bespoke
outsourced company secretarial services to companies.
12
Director Meetings
The numbers of meetings of the company’s Board of
directors and of each Board committee held during the
year and the number of meetings attended by each
director were:
Board Meetings
Directors
David Dicker (Chairperson)
Fiona Brown
Mary Stojcevski
Vladimir Mitnovetski
Michael Demetre
Ian Welch
Audit Committee Meetings
Number
Eligible to
Attend
Number
Attended
6
6
6
6
6
3
6
6
6
6
6
3
Directors
Fiona Brown (Chairperson)
David Dicker
Vladimir Mitnovetski
Number
Eligible to
Attend
Number
Attended
2
2
2
2
2
2
Remuneration Report (Audited)
All information in this remuneration report has
been audited as required by section 308(3C) of the
Corporations Act 2001. The remuneration report is set
out under the following main headings:
a. Principles used to determine the nature and amount
of remuneration
b. Details of remuneration
c. Service agreements
d. Share-based compensation
e. Additional information
f.
Additional disclosures relating to key management
personnel
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015Non-Executive Directors
Fees and payments to non-executive directors
reflect the demands which are made on, and the
responsibilities of, the directors. The Board determines
remuneration of non-executive directors within the
maximum amount approved by the shareholders
from time to time. This maximum currently stands at
$250,000 per annum in total for salary and fees, to be
divided among the non-executive directors in such a
proportion and manner as they agree. The Board does
not currently have any independent directors. The only
current non-executive director is Fiona Brown, who
represents a major shareholder. No director fees have
been received by Fiona Brown.
(b) Details of Remuneration
Compensation paid to key management personnel
is set out below. Key management personnel include
all directors of the company and executives who, in
the opinion of the board and CEO, have authority and
responsibility for planning, directing and controlling the
activities of the group directly or indirectly.
It was agreed that for executive directors who report to
the CEO, for the purpose of satisfying the performance
condition, that the one-off non-recurring costs would
be excluded. Performance measure was based on the
operating profit before tax excluding share acquisition,
borrowing, restructure and integration costs. This was
considered the appropriate measure as these one-
off costs were incurred to facilitate the acquisition,
which was undertaken for the long term benefit of
the company and its shareholders.
(a) Principles used to Determine the Nature
and Amount of Remuneration
The board addresses remuneration policies and
practices generally, and determines remuneration
packages and other terms of employment for senior
executives. Executive remuneration and other terms
of employment are reviewed annually by the board
having regard to performance against goals set at the
start of the year and relevant comparative information.
Remuneration packages are set at levels that are
intended to attract and retain executives capable
of managing the company’s operations, achieving
the company’s strategic objectives, and increasing
shareholder wealth.
Executives
The executive pay and reward framework includes the
following components:
– Base pay and benefits
– Performance-related bonuses
– Other remuneration such as superannuation.
The combination of these comprises the executive’s
remuneration.
Base Pay
Base pay is structured as a total employment cost
package which may be delivered as a combination
of cash and prescribed non-financial benefits at the
executive’s discretion. There are no guaranteed base
pay increases included in any senior executives’
contracts.
Performance-Related Bonuses
Performance-related cash bonus entitlements are
linked to the achievement of financial and non-financial
objectives which are relevant to meeting the company’s
business objectives. A major part of the bonus
entitlement is determined by the actual performance
against net profit margin targets. 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.
The executives’ cash bonus entitlements are assessed
and paid either monthly or quarterly based on the
actual performance against the relevant monthly profit
with reconciliation at the end of the financial year
against full-year actual profit. The chairman and CEO
is responsible for assessing whether an individual’s
targets have been met.
Annual Report 2015 13
Directors’ Report
Details of Remuneration for Directors and Key Management Personnel
Short-Term
Cash
Salary &
Fees
FY
Short-
Term
Long-
Term
Share Based
Payments
Short term
Incentive
Cash Bonus
Super-
annuation Non-Cash
Annual
Leave
Long
Service Shares Options
Total
FBT
Reportable
Leave
Leave
Proportion of
remuneration
that is
performance
based
% of Value of
remuneration
that consists
of share
Based
Payments
$
$
$
$
$
$
$
$
$
$
%
Executive Directors
David Dicker – Chief Executive Officer
December
2015
December
2014
–
–
–
–
Chris Price – Commercial Director
December
2015
December
2014
–
–
312,246
150,000
43,913
–
–
–
–
–
–
–
–
–
[Resigned 30 November 2014]
–
–
–
–
–
–
Vladimir Mitnovetski – Chief Operating Officer
December
2015
December
2014
– 1,581,402 150,233
– 34,383
7,960
–
340,940
32,389
–
6,402
5,003
Mary Stojcevski – Chief Financial Officer
December
2015
December
2014
200,000
474,421
64,070
100,000
31,987
12,539
–
–
8,220
3,453
917
1,698
Michael Demetre – Logistics Director
December
2015
December
2014
225,000
316,280
51,422
– 11,867
3,884
112,500
21,324
12,713
–
8,820
1,910
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
0.00%
0.00%
–
100.00%
0.00%
506,159
32.45%
0.00%
– 1,773,979
100.00%
0.00%
–
384,734
100.00%
0.00%
–
–
–
–
750,164
69.25%
0.00%
147,140
21.74%
0.00%
608,453
56.92%
0.00%
157,268
13.56%
0.00%
Ian Welch – Chief Information Officer*
[New Director appointed 6 August 2015 ]
105,769
114,456
20,921
– 26,475
–
–
–
–
–
–
–
–
–
–
–
267,621
46.83%
0.00%
–
–
0.00%
December
2015
December
2014
14
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015continuedShort-Term
Cash
Salary &
Fees
FY
Short-
Term
Long-
Term
Share Based
Payments
Short term
Incentive
Cash Bonus
Super-
annuation Non-Cash
Annual
Leave
Long
Service Shares Options
Total
FBT
Reportable
Leave
Leave
Proportion of
remuneration
that is
performance
based
% of Value of
remuneration
that consists
of share
Based
Payments
$
$
$
$
$
$
$
$
$
$
%
Non-Executive Directors
Fiona Brown
December
2015
December
2014
Total
December
2015
December
2014
–
–
–
–
–
–
–
–
–
–
–
–
530,769 2,486,559 286,646
– 80,945 15,298
524,746
544,251 101,555
– 16,139
8,611
–
–
–
–
–
–
–
–
– 3,400,217
– 1,195,302
–
–
–
–
0.00%
0.00%
–
–
*Earnings since appointment as director
(c) Service Agreements
Terms of employment for the executive directors and other key management personnel are by way of Consultancy
Agreement or an Executive Service Agreement (ESA). The contract details the base salary and performance-related
bonuses.
Consultancy Agreement for David Dicker
The company has engaged Rodin FZC (a company incorporated in Dubai) to provide the services of David Dicker to
act as the Chief Executive Officer and Executive Director of the company on an as-needed basis. The Consultancy
Agreement is dated 26 October 2010. The engagement is for an indefinite term. Either party may terminate the
agreement on the provision of 6 months’ notice. No fee is payable by the company to Rodin FZC for the provision of
the services. The agreement contains a number of post-termination restraints.
Deed of Adherence for David Dicker
The company and David Dicker have entered into a Deed of Adherence whereby Mr Dicker has agreed to adhere
and comply with all covenants and obligations of Rodin FZC (a company incorporated in Dubai) set out in the
Consultancy Agreement (between the company and Rodin FZC) to the maximum allowable extent permitted by law
as if Mr Dicker was named as Rodin FZC therein. The Deed is dated 26 October 2010.
Executive Service Agreement for Vladimir Mitnovetski
The Company has appointed Vladimir Mitnovetski as Chief Operating Officer and Director of the Board of the
company by way of an Executive Service Agreement (ESA). The ESA is dated 1 September 2014. The appointment
of Mr Mitnovetski is for an unspecified time. Either the company or Mr Mitnovetski may terminate the ESA with
3 months’ notice. The remuneration payable to Mr Mitnovetski will be paid a performance based salary of the higher
amount of either: (i) $50,000; or (ii) 5% of Net Profit in the month subject to the Company achieving a monthly Net
Profit Margin of 2.5% in a calendar quarter plus superannuation. Superannuation is uncapped and payable at 9.5%
on total of base and performance payments at 9.5%. The ESA also contains a number of post-termination restraints.
Annual Report 2015 15
Directors’ Report
continued
Executive Service Agreement for Mary Stojcevski
The company has appointed Mary Stojcevski as Chief
Financial Officer and Director of the Board of the
company by way of an Executive Service Agreement
(ESA). The ESA is dated 25 October 2010. The ESA
confirms Ms Stojcevski’s continuous service with
the company for all purposes commenced from
31 August 2010. The appointment of Ms Stojcevski
is for an unspecified time. Either the company or
Ms Stojcevski may terminate the ESA with 3 months’
notice. The remuneration payable to Ms Stojcevski
comprises of a base remuneration of $200,000 per
annum. Ms Stojcevski is also entitled to a performance
bonus equal to 1.5% of the company’s net profit before
tax. This is subject to net profit margin before tax
not being less than 2.5%, unless otherwise agreed.
Superannuation is uncapped and payable at 9.5% on
total of base and performance payments. The ESA also
contains a number of post-termination restraints.
Executive Service Agreement for Michael Demetre
The Company has appointed Michael Demetre as
Logistics Director and Director of the Board of the
company by way of an Executive Service Agreement
(ESA). The ESA is dated 25 October 2010. The ESA
confirms Mr Demetre’s continuous service with
the company for all purposes commenced from
21 September 2010. The appointment of Mr Demetre
is for an unspecified time. Either the company or
Mr Demetre may terminate the ESA with 3 months’
notice. The remuneration payable to Mr Demetre
comprises a base remuneration of $225,000 per
annum. Mr Demetre is also entitled to a performance
bonus equal to 1% of the Company’s net profit before
tax. This is subject to net profit margin before tax
not being less than 2.5%, unless otherwise agreed.
Superannuation is uncapped and payable at 9.5% on
total of base and performance payments. The ESA also
contains a number of post-termination restraints.
16
Executive Service Agreement for Ian Welch
The Company has appointed Ian Welch as Chief
Information Officer and Director of the Board of the
company by way of an Executive Service Agreement
(ESA). The ESA is dated 1 September 2016. The
ESA confirms Mr Welch’s continuous service with
the company for all purposes commenced from
30 March 2013. The appointment of Mr Welch is for
an unspecified time. Either the company or Mr Welch
may terminate the ESA with 3 months’ notice. The
remuneration payable to Mr Welch comprises a base
remuneration of $250,000 per annum. Mr Welch is
also entitled to a performance bonus equal to 1% of
the Company’s net profit before tax. This is subject to
net profit margin before tax not being less than 2.5%,
unless otherwise agreed. Superannuation is uncapped
and payable at 9.5% on total of base and performance
payments. The ESA also contains a number of post-
termination restraints.
(d) Share-based Compensation
No shares, rights, or options were granted to directors
or key management personnel during the year ended
31 December 2015, no rights or options vested or
lapsed during the year, and no rights or options were
exercised during the year by directors.
(e) Additional Information
Relationship between Remuneration and Company
Performance
The overall level of executive reward takes into account
the performance over the financial year with greater
emphasis given to improving performance over
the prior year. Operating profit for the consolidated
entity grew by 105.7%, excluding one off integration
and restructure costs. As a large proportion of the
executives remuneration package is based on net
operating profit outcomes the average executive
remuneration also increased. Since 2012, the net profit
before tax has grown at an average rate of 38.7% per
annum, whilst the average executive remuneration
has increased by an average of 38.3% per annum.
Shareholder wealth has increased at an average rate of
33.5% per annum over this period.
Voting and Comments made at the Company’s 2014
Annual General Meeting (AGM)
At the 2014 AGM, 97.82% of the votes received
supported the adoption of the remuneration report for
the 6 month transitional year ended 31 December 2014.
The company did not receive any specific feedback at
the AGM regarding its remuneration practices.
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015(f) Additional Disclosures Relating to Key Personnel Shareholding
The number of shares in the company held during the financial year by each director and other members of key
management personnel of the consolidated entity, including their related parties, is set out below:
December 2015
Ordinary Shares
David Dicker
Fiona Brown
Vlad Mitnovetski
Mary Stojcevski
Michael Demetre
Ian Welch*
Chris Price
December 2014
Ordinary Shares
David Dicker
Fiona Brown
Vlad Mitnovetski
Mary Stojcevski
Michael Demetre
Chris Price
Balance at the
start of the year
Additions
Disposals
Balance at the
end of the year
62,549,354
54,909,399
24,439
72,340
10,000
10,000
15,500
1,004,141
873,641
38,571
47,822
8,571
20,000
3,000,000
3,000,000
60,553,495
52,783,040
63,010
120,162
18,571
30,000
–
15,500
117,591,032
1,992,746
6,015,500
113,568,278
Balance at the
start of the year
Additions
Disposals
Balance at the
end of the year
61,140,719
53,674,091
1,408,635
1,235,308
24,439
51,044
10,000
15,500
21,296
62,549,354
54,909,399
24,439
72,340
10,000
15,500
114,915,793
2,665,239
–
117,581,032
*appointed on 6 August 2015
Transactions with Related Parties
During the year there were short term loans made by David Dicker and Fiona Brown to the company. The loans
were unsecured and repayable on-call, and were fully repaid. Interest on the loan is at 5.5% paid semi-annually
or when repaid.
This concludes the remuneration report which has been audited.
Share Options
There were no outstanding options at the end of this financial year.
Indemnification and Insurance of Directors and Officers
The company has indemnified the directors and executives of the company for costs incurred, in their capacity as a
director or executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the company paid a premium in respect of a contract to insure the directors and executives
of the company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance
prohibits disclosure of the nature of liability and the amount of the premium.
Annual Report 2015 17
Officers of the Company Who are Former
Audit Partners of Bdo
There are no officers of the company who are former
audit partners of BDO East Coast Partnership.
Rounding of Amounts
The company is of a kind referred to in Class Order
98/100, issued by the Australian Securities and
Investments Commission, relating to ‘rounding-off’.
Amounts in this report have been rounded off in
accordance with that Class Order to the nearest
thousand dollars, or in certain cases, the nearest dollar.
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 64.
Auditor
Accounting Firm BDO East Coast Partnership
continues in office in accordance with section 327
of the Corporations Act 2001.
This report is made in accordance with a resolution
of directors, pursuant to section 298(2)(a) of the
Corporations Act 2001.
On behalf of the directors
David Dicker
CEO and Chairman
Sydney, 29 February 2016
Directors’ Report
continued
Indemnity and Insurance of Auditor
The company has not, during or since the financial year,
indemnified or agreed to indemnify the auditor of the
company or any related entity against a liability incurred
by the auditor.
During the financial year, the company has not paid a
premium in respect of a contract to insure the auditor of
the company or any related entity.
Proceedings on Behalf of the Company
No person has applied to the Court under section
237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the company, or to intervene
in any proceedings to which the company is a party
for the purpose of taking responsibility on behalf of the
company for all or part of those proceedings.
Non-Audit Services
Details of the amounts paid or payable to the auditor
for non-audit services provided during the financial year
by the auditor are outlined in note 24 to the financial
statements.
The directors are satisfied that the provision of non-
audit services during the financial year, by the auditor
(or by another person or firm on the auditor’s behalf), is
compatible with the general standard of independence
for auditors imposed by the Corporations Act 2001.
The directors are of the opinion that the services as
disclosed in note 24 to the financial statements do
not compromise the external auditor’s independence
requirements of the Corporations Act 2001 for the
following reasons:
– all non-audit services have been reviewed and
approved to ensure that they do not impact the
integrity 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 issued by the Accounting Professional
and Ethical Standards Board, including reviewing
or auditing the auditor’s own work, acting in a
management or decision-making capacity for the
company, acting as advocate for the company or
jointly sharing economic risks and rewards.
18
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015FOR THE YEAR ENDED 31 DECEMBER 2015
Statement of Profit or Loss
and other Comprehensive Income
REVENUE
Sales revenue
Other revenue:
Interest received
Recoveries
Other revenue
EXPENSES
Changes in inventories
Purchases of inventories
Employee benefits expense
Depreciation and amortisation
Finance costs
Borrowing Costs
Integration and restructure costs
Other expenses
Profit before income tax expense
Income tax expense
Profit after income tax expense for the year
Profit attributable to members of the company
Other comprehensive income, net of tax
Items that may be reclassified subsequently to profit or loss
Foreign Currency Translation
Total comprehensive income for the period
Total comprehensive income attributable to members of the company
Earnings per share
Basic earnings per share
Diluted earnings per share
Consolidated
31-Dec-15
[12 Months]
$’000
31-Dec-14
[6 Months]
$’000
Note
4
4
4
5
5
5
5
6
32
32
1,074,660
497,810
560
224
2,112
207
3
287
1,077,556
498,307
31,714
(446)
(1,002,842)
(452,370)
(49,098)
(24,541)
(4,029)
(7,543)
(341)
(2,249)
(13,789)
(1,986)
(4,009)
(29)
(3,944)
(8,648)
(1,048,177)
(495,973)
29,379
(8,880)
20,499
20,499
(353)
20,146
20,146
Cents
14.39
14.39
2,334
(774)
1,560
1,560
439
1,999
1,999
Cents
1.20
1.20
The statement of profit or loss and other comprehensive income is to be read in conjunction with the attached notes.
Annual Report 2015 19
AS AT 31 DECEMBER 2015
Statement of Financial Position
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventories
Current Tax asset
Total Current Assets
Non-Current Assets
Property, plant and equipment
Intangible assets
Deferred tax assets
Total Non-Current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Trade and other payables
Borrowings
Current tax liabilities
Short-term provisions
Total Current Liabilities
Non-Current Liabilities
Borrowings
Deferred tax liabilities
Long-term provisions
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Equity attributable to Equity Holders
Issued capital
Reserves
Retained profits
TOTAL EQUITY
The statement of financial position is to be read in conjunction with the attached notes.
20
Consolidated
Note
31-Dec-15
$’000
31-Dec-14
$’000
10
11
12
7
13
14
8
15
16
7
17
16
9
17
18
15,835
163,978
116,329
–
296,142
26,073
31,902
4,153
62,128
358,270
3,703
146,150
84,614
1,757
236,224
26,806
33,963
4,541
65,310
301,534
142,607
90,000
3,500
5,288
145,393
122,658
–
4,584
241,395
272,635
38,829
5,183
1,031
45,043
286,438
–
6,290
908
7,198
279,833
71,832
21,701
55,003
372
16,457
71,832
6,891
725
14,085
21,701
Dicker Data Limited
FOR THE YEAR ENDED 31 DECEMBER 2015
Statement of Changes in Equity
Consolidated
Balance at 1 July 2014 [6 months]
Profit after income tax for the year
Other comprehensive income for year net of tax
Total comprehensive income for the year
Transactions with the owners in their capacity as owners:
Issued
Capital
$’000
1,997
–
–
–
Retained
Profits
$’000
Reserves
$’000
18,136
1,560
–
1,560
Total
Equity
$’000
20,419
1,560
439
1,999
4,894
(5,611)
286
–
439
439
–
–
Share Issue (DRP)
Dividends Paid
4,894
–
–
(5,611)
Balance at 31 December 2014
6,891
14,085
725
21,701
Balance at 1 January 2015 [12 months]
Profit after income tax for the year
Other comprehensive income for the year net of tax
Total comprehensive income for the year
Transactions with the owners in their capacity as owners:
Share Issue (DRP)
Share Issue (Capital Raising)
Dividends Paid
Balance at 31 December 2015
6,891
–
–
–
4,123
43,989
–
55,003
14,085
20,499
–
20,499
–
–
(18,127)
16,457
725
–
(353)
(353)
–
–
–
372
21,701
20,499
(353)
20,146
4,123
43,989
(18,127)
71,832
The statement of changes in equity is to be read in conjunction with the attached notes.
Annual Report 2015 21
Statement of Cash Flows
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers (inclusive of GST)
Payments to suppliers and employees (inclusive of GST)
Interest received
Interest and other finance costs paid
Income tax paid
31-Dec-15
[12 Months]
$’000
31-Dec-14
[6 Months]
$’000
Note
1,165,771
565,881
(1,177,009)
(570,737)
560
(7,543)
(4,342)
207
(4,009)
(4,180)
NET CASH (USED IN) OPERATING ACTIVITIES
30
(22,563)
(12,838)
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant and equipment
Payments for intangibles
Other
NET CASH (USED IN) INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from share issue
Proceeds from borrowings
Net proceeds from bond issue
Repayment of borrowings
Payment of dividends
NET CASH FROM FINANCING ACTIVITIES
NET CASH FLOWS
Cash and cash equivalents at the beginning of the period
CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD
10
The statement of cash flows is to be read in conjunction with the attached notes.
(1,176)
(5,005)
(74)
–
(4)
95
(1,250)
(4,914)
43,988
–
–
3,926
38,618
(32,658)
(14,003)
35,945
12,132
3,703
15,835
–
–
(702)
3,224
(14,528)
18,231
3,703
22
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015
FOR THE YEAR ENDED 31 DECEMBER 2015
Notes to the Financial Statements
1. Significant Accounting Policies
The principal accounting policies adopted in the
preparation of the financial statements are set out
below and in the following notes. These policies have
been consistently applied to all the years presented,
unless otherwise stated.
New, Revised or Amending Accounting
Standards and Interpretations Adopted
The consolidated entity has adopted all of the new,
revised or amending Accounting Standards and
Interpretations issued by the Australian Accounting
Standards Board (‘AASB’) that are mandatory for the
current reporting period.
The consolidated entity has also early adopted
AASB 2015-2 Amendments to Australian Accounting
Standards – Disclosure Initiative: Amendments to AASB
101. The principal accounting policies adopted are
described against each relevant note to provide clarity
and relevance.
Any other new, revised or amending Accounting
Standards or Interpretations that are not yet mandatory
have not been early adopted. The adoption of these
Accounting Standards and Interpretations did not have
any significant impact on the financial performance or
position of the consolidated entity.
Basis of Preparation
These general purpose financial statements have
been prepared in accordance with Australian
Accounting Standards and Interpretations issued by
the Australian Accounting Standards Board (‘AASB’)
and the Corporations Act 2001, as appropriate for
for-profit oriented entities. These financial statements
also comply with International Financial Reporting
Standards as issued by the International Accounting
Standards Board (‘IASB’).
Historical Cost Convention
The financial statements have been prepared under the
historical cost convention, except for, where applicable,
the revaluation of available-for-sale financial assets,
financial assets and liabilities at fair value through
profit or loss, certain classes of property, plant and
equipment and derivative financial instruments.
Critical Accounting Estimates
The preparation of the financial statements requires
the use of certain critical accounting estimates. It
also requires management to exercise its judgement
in the process of applying the consolidated entity’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 the notes.
Parent Entity Information
In accordance with the Corporations Act 2001,
these financial statements present the results of the
consolidated entity only. Supplementary information
about the parent entity is disclosed in note 27.
Principles of Consolidation
The consolidated financial statements incorporate
the assets and liabilities of all subsidiaries of Dicker
Data Limited (‘company’ or ‘parent entity’) as at
31 December 2015 and the results of all subsidiaries
for the year then ended. Dicker Data Limited and its
subsidiaries together are referred to in these financial
statements as the ‘consolidated entity’.
Subsidiaries are all those entities over which the
consolidated entity has control. The consolidated
entity controls an entity when the consolidated entity
is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect
those returns through its power to direct the activities
of the entity. Subsidiaries are fully consolidated from the
date on which control is transferred to the consolidated
entity. They are de-consolidated from the date that
control ceases.
Intercompany transactions, balances and unrealised
gains on transactions between entities in the
consolidated entity are eliminated. Unrealised losses
are also eliminated unless the transaction provides
evidence of the impairment of the asset transferred.
Accounting policies of subsidiaries have been changed
where necessary to ensure consistency with the
policies adopted by the consolidated entity.
The acquisition of subsidiaries is accounted for using
the acquisition method of accounting. A change in
ownership interest, without the loss of control, is
accounted for as an equity transaction, where the
difference between the consideration transferred and
the book value of the share of the non-controlling
interest acquired is recognised directly in equity
attributable to the parent.
Annual Report 2015 23
Notes to the Financial Statements
1. Significant Accounting Policies (continued)
Non-controlling interest in the results and equity of
subsidiaries are shown separately in the statement
of profit or loss and other comprehensive income,
statement of financial position and statement of
changes in equity of the consolidated entity. Losses
incurred by the consolidated entity are attributed to
the non-controlling interest in full, even if that results
in a deficit balance.
Where the consolidated entity loses control over
a subsidiary, it derecognises the assets including
goodwill, liabilities and non-controlling interest in the
subsidiary together with any cumulative translation
differences recognised in equity. The consolidated
entity recognises the fair value of the consideration
received and the fair value of any investment retained
together with any gain or loss in profit or loss.
Foreign Currency Translation
The financial statements are presented in Australian
dollars, which is Dicker Data Limited’s functional and
presentation currency.
Foreign Currency Transactions
Foreign currency transactions are translated into
Australian dollars using the exchange rates prevailing
at the dates of the transactions. Foreign exchange
gains and losses resulting from the settlement of such
transactions and from the translation at financial year-
end exchange rates of monetary assets and liabilities
denominated in foreign currencies are recognised in
profit or loss.
Foreign Operations
The assets and liabilities of foreign operations are
translated into Australian dollars using the exchange
rates at the reporting date. The revenues and expenses
of foreign operations are translated into Australian
dollars using the average exchange rates, which
approximate the rate at the date of the transaction, for
the period. All resulting foreign exchange differences
are recognised in other comprehensive income through
the foreign currency reserve in equity.
The foreign currency reserve is recognised in profit or
loss when the foreign operation or net investment is
disposed of.
Current and Non-Current Classification
Assets and liabilities are presented in the statement
of financial position based on current and non-current
classification.
An asset is current when: it is expected to be realised
or intended to be sold or consumed in normal
operating cycle; it is held primarily for the purpose
of trading; it is expected to be realised within twelve
months after the reporting period; or the asset is
cash or cash equivalent unless restricted from being
exchanged or used to settle a liability for at least twelve
months after the reporting period. All other assets are
classified as non-current.
A liability is current when: it is expected to be settled
in normal operating cycle; it is held primarily for the
purpose of trading; it is due to be settled within twelve
months after the reporting period; or there is no
unconditional right to defer the settlement of the liability
for at least twelve months after the reporting period.
All other liabilities are classified as non-current.
Deferred tax assets and liabilities are always classified
as non-current.
Goods and Services Tax (‘GST’) and Other Similar
Taxes
Revenues, expenses and assets are recognised net of
the amount of associated GST, unless the GST incurred
is not recoverable from the tax authority. In this case it
is recognised as part of the cost of the 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
tax authority is included in other receivables or other
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 tax authority, are presented as operating
cash flows.
Commitments and contingencies are disclosed net of
the amount of GST recoverable from, or payable to,
the tax authority.
24
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015continued1. Significant Accounting Policies (continued)
Rounding of Amounts
The company is of a kind referred to in Class Order
98/100, issued by the Australian Securities and
Investments Commission, relating to ‘rounding-off’.
Amounts in this report have been rounded off in
accordance with that Class Order to the nearest
thousand dollars, or in certain cases, the nearest dollar.
New Accounting Standards and Interpretations
not yet Mandatory or early Adopted
Australian Accounting Standards and Interpretations
that have recently been issued or amended but are
not yet mandatory, have not been early adopted by
the consolidated entity for the annual reporting period
ended 31 December 2015, unless otherwise stated.
The consolidated entity’s assessment of the impact
of these new or amended Accounting Standards and
Interpretations, most relevant to the consolidated entity,
are set out below.
AASB 9 Financial Instruments and its Consequential
Amendments
This standard and its consequential amendments are
applicable to annual reporting periods beginning on
or after 1 January 2017 and completes phases I and
III of the IASB’s project to replace IAS 39 (AASB 139)
‘Financial Instruments: Recognition and Measurement’.
This standard introduces new classification and
measurement models for financial assets, using a
single approach to determine whether a financial
asset is measured at amortised cost or fair value.
The accounting for financial liabilities continues to be
classified and measured in accordance with AASB 139,
with one exception, being that the portion of a change
of fair value relating to the entity’s own credit risk is to
be presented in other comprehensive income unless
it would create an accounting mismatch. Chapter 6
‘Hedge Accounting’ supersedes the general hedge
accounting requirements in AASB 139 and provides
a new simpler approach to hedge accounting that is
intended to more closely align with risk management
activities undertaken by entities when hedging financial
and non-financial risks. The consolidated entity
will adopt this standard and the amendments from
1 July 2017 but the impact of its adoption is yet to be
assessed by the consolidated entity.
AASB 2014-4 Amendments to Australian Accounting
Standards - Clarification of Acceptable Methods of
Depreciation and Amortisation
These amendments are applicable to annual reporting
periods beginning on or after 1 January 2016. AASB
2014-4 amends AASB 116 and AASB 138 to clarify
that depreciation and amortisation should be based
on the expected pattern of consumption of an asset,
that the use of revenue based methods to calculate
depreciation is not appropriate, and that there is a
rebuttable presumption that revenue is an inappropriate
basis for measuring the consumption of the economic
benefit embodied in an intangible asset. The adoption
of these amendments from 1 January 2016 will not
have a material impact on the consolidated entity.
IFRS 15 Revenue from Contracts with Customers
This standard is expected to be applicable to annual
reporting periods beginning on or after 1 January 2018.
The standard provides a single standard for revenue
recognition. The core principle of the standard is that
an entity will recognise revenue to depict the transfer of
promised goods or services to customers in an amount
that reflects the consideration to which the entity
expects to be entitled in exchange for those goods or
services. The standard will require: contracts (either
written, verbal or implied) to be identified, together
with the separate performance obligations within the
contract; determine the transaction price, adjusted for
the time value of money excluding credit risk; allocation
of the transaction price to the separate performance
obligations on a basis of relative stand-alone selling
price of each distinct good or service, or estimation
approach if no distinct observable prices exist; and
recognition of revenue when each performance
obligation is satisfied. Credit risk will be presented
separately as an expense rather than adjusted to
revenue. For goods, the performance obligation would
be satisfied when the customer obtains control of the
goods. For services, the performance obligation is
satisfied when the service has been provided, typically
for promises to transfer services to customers. For
performance obligations satisfied over time, an entity
would select an appropriate measure of progress to
determine how much revenue should be recognised
as the performance obligation is satisfied.
Annual Report 2015 25
Notes to the Financial Statements
1. Significant Accounting Policies (continued)
Contracts with customers will be presented in an
entity’s statement of financial position as a contract
liability, a contract asset, or a receivable, depending
on the relationship between the entity’s performance
and the customer’s payment. Sufficient quantitative
and qualitative disclosure is required to enable users
to understand the contracts with customers; the
significant judgments made in applying the guidance
to those contracts; and any assets recognised from
the costs to obtain or fulfil a contract with a customer.
The consolidated entity will adopt this standard from
1 January 2018 but the impact of its adoption is yet
to be assessed by the consolidated entity.
2. Critical Accounting Judgements, Estimates
and Assumptions
The preparation of the financial statements requires
management to make judgements, estimates and
assumptions that affect the reported amounts in
the financial statements. Management continually
evaluates its judgements and estimates in relation
to assets, liabilities, contingent liabilities, revenue
and expenses. Management bases its judgements,
estimates and assumptions on historical experience
and on other various factors, including expectations of
future events, management believes to be reasonable
under the circumstances. The resulting accounting
judgements and estimates will seldom equal the
related actual results. The judgements, estimates and
assumptions that have a significant risk of causing a
material adjustment to the carrying amounts of assets
and liabilities (refer to the respective notes) within the
next financial year are discussed at each note.
3. Operating Segments
Operating segments are presented using the
‘management approach’, where the information
presented is on the same basis as the internal reports
provided to the Chief Operating Decision Makers
(‘CODM’). The CODM is responsible for the allocation
of resources to operating segments and assessing
their performance.
Identification of Reportable Operating Segments
The consolidated entity is organised into two operating
segments: Australian and New Zealand operations.
These operating segments are based on the internal
reports that are reviewed and used by the Board of
Directors (who are identified as the Chief Operating
Decision Makers (‘CODM’)) in assessing performance
and in determining the allocation of resources. There is
no aggregation of operating segments.
The CODM reviews EBITDA (earnings before interest,
tax, depreciation and amortisation). Reportable revenue
is for only the one product being sale of IT goods. The
accounting policies adopted for internal reporting to
the CODM are consistent with those adopted in the
financial statements.
The information reported to the CODM is on at least
a monthly basis.
Intersegment Transactions
During the year there was a dividend paid from Dicker
Data NZ Ltd to Express Data Holdings Pty Ltd for
$5,135,100.
Intersegment Receivables, Payables and Loans
Intersegment loans are initially recognised at the
consideration received. Intersegment loans receivable
and loans payable that earn or incur non-market
interest are not adjusted to fair value based on market
interest rates. Intersegment loans are eliminated on
consolidation.
26
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015continued3. Operating Segments (continued)
Operating Segment Information
Consolidated – December 2015
Revenue
Sale of goods
Other revenue:
Interest received
Recoveries
Other revenue
Total Revenue
EBITDA
Depreciation & Amortisation
Interest revenue
Finance costs
Integration and restructure costs
Profit before income tax
Income tax expense
Profit after income tax expense
Segment Current Assets
Segment Non Current Assets
Segment Assets
Segment Current Liabilities
Segment Non Current Liabilities
Segment Liabilities
Australia
$’000
New Zealand
$’000
Eliminations/
Unallocated
$’000
TOTAL
$’000
950,968
123,692
–
1,074,660
454
224
6,787
259
–
460
(153)
–
(5,135)
560
224
2,112
958,433
124,411
(5,288)
1,077,556
5,032
(5,135)
42,743
(3,660)
454
(7,696)
(2,233)
29,608
(7,472)
22,136
274,918
61,065
335,983
220,386
45,043
265,429
(369)
259
–
(16)
4,906
(1,408)
3,498
29,674
1,063
30,738
21,009
–
21,009
–
(153)
153
–
(5,135)
–
(5,135)
42,640
(4,029)
560
(7,543)
(2,249)
29,379
(8,880)
20,499
(8,450)
296,142
–
62,128
(8,450)
358,270
–
–
–
241,395
45,043
286,438
Annual Report 2015 27
Notes to the Financial Statements
3. Operating Segments (continued)
Consolidated – December 2014
Revenue
Sale of goods
Other revenue:
Interest received
Recoveries
Other revenue
Total Revenue
EBITDA
Depreciation & Amortisation
Interest revenue
Finance costs
Integration and restructure costs
Profit before income tax
Income tax expense
Profit after income tax expense
Segment Current Assets
Segment Non Current Assets
Segment Assets
Segment Current Liabilities
Segment Non Current Liabilities
Segment Liabilities
Australia
$’000
New Zealand
$’000
Eliminations/
Unallocated
$’000
TOTAL
$’000
430,063
67,747
–
497,810
157
3
3,154
433,377
9,597
(1,790)
157
(4,142)
(3,944)
(122)
(65)
(186)
210,836
63,905
274,741
246,763
7,099
253,862
183
–
–
67,930
2,469
(196)
183
–
–
2,456
(709)
1,746
30,836
1,405
32,241
20,424
99
20,523
(133)
–
(2,868)
(3,000)
–
–
(133)
133
–
–
–
–
207
3
287
498,307
12,066
(1,986)
207
(4,009)
(3,944)
2,334
(774)
1,560
(5,448)
236,224
–
65,310
(5,448)
301,534
5,448
272,635
–
7,198
5,448
279,833
4. Revenue
Revenue is recognised when it is probable that the economic benefit will flow to the consolidated entity and the
revenue can be reliably measured. Revenue is measured at the fair value of the consideration received or receivable.
Sale of Goods
Sale of goods revenue is recognised at the point of sale, which is where the customer has taken delivery of the
goods, the risks and rewards are transferred to the customer and there is a valid sales contract. Amounts disclosed
as revenue are net of sales returns and trade discounts.
Interest
Interest revenue is recognised as interest accrues using the effective interest method. This is a method of calculating
the amortised cost of a financial asset and allocating the interest income over the relevant period using the effective
interest rate, which is the rate that exactly discounts estimated future cash receipts through the expected life of the
financial asset to the net carrying amount of the financial asset.
28
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015continued4. Revenue (continued)
Other Revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Sales revenue:
Sale of goods
Other revenue:
Interest
Recoveries
Other revenue
Total Revenue
5. Expenses
Consolidated
Dec-15
[12 Months]
$’000
Dec-14
[6 Months]
$’000
1,074,660
497,810
560
224
2,112
207
3
287
1,077,556
498,307
Cost of Sales
Cost of goods are represented net of supplier rebates and settlement discounts. Supplier rebates can be paid
monthly, quarterly or half yearly. At the end of the financial year an estimate of rebates due, relating to the financial
year is accounted for based on best available information at the time of the rebate being paid.
Depreciation and Amortisation
Depreciation is calculated on a diminishing value basis to write off the net cost of each item of property, plant and
equipment (excluding land) over their expected useful lives. Amortisation of intangibles is calculated on a straight-line
basis over their expected useful lives, as either determined by management or by an independent valuation.
Finance Costs
Finance costs attributable to qualifying assets are capitalised as part of the asset. All other finance costs are
expensed in the period in which they are incurred, including:
– interest on any bank overdraft
– interest on short-term and long-term borrowings
– interest on finance leases
Defined Contribution Superannuation Expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
Annual Report 2015 29
Notes to the Financial Statements
5. Expenses (continued)
Operating leases
Operating lease payments, net of any incentives received from the lessor, are charged to profit or loss on a straight-
line basis over the term of the lease.
Cost of sales
Depreciation
Building
Plant and equipment
Total depreciation
Amortisation
Website Development
Software
Customer Contracts
Total amortisation
Total depreciation and amortisation
Finance costs
Interest and finance charges
Superannuation expense
Defined contribution superannuation expense
Operating Leases
Property rental expense
Equipment rental expense
Consolidated
Dec-15
[12 Months]
$’000
Dec-14
[6 Months]
$’000
971,128
452,816
497
1,399
1,896
41
60
2,032
2,133
4,029
195
619
814
20
30
1,122
1,172
1,986
7,543
4,009
3,538
1,912
1,257
20
1,277
1,628
12
1,640
6. Income Tax
The income tax expense or benefit for the period is the tax payable on that period’s taxable income based on the
applicable income tax rate for each jurisdiction, adjusted by changes in deferred tax assets and liabilities attributable
to temporary differences, unused tax losses and the adjustment recognised for prior periods, where applicable.
With the change in financial year, the Company has applied and has been approved for a substituted accounting
period for the lodgement of its tax return based on the calendar year January to December.
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 that are enacted or substantively enacted,
except for:
– When the deferred income tax asset or liability arises from the initial recognition of goodwill or an asset or liability
in a transaction that is not a business combination and that, at the time of the transaction, affects neither the
accounting nor taxable profits; or
– When the taxable temporary difference is associated with interests in subsidiaries, associates or joint ventures, and
the timing of the reversal can be controlled and it is probable that the temporary difference will not reverse in the
foreseeable future.
30
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015continued6. Income Tax (continued)
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.
The carrying amount of recognised and unrecognised deferred tax assets are reviewed each reporting date.
Deferred tax assets recognised are reduced to the extent that it is no longer probable that future taxable profits will
be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are recognised to
the extent that it is probable that there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax assets
against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to the same
taxable authority on either the same taxable entity or different taxable entity’s which intend to settle simultaneously.
Dicker Data Limited (the ‘head entity’) and its wholly-owned Australian subsidiaries have formed an income tax
consolidated group from 01 April 2014, under the tax consolidation regime. The head entity and each subsidiary
in the tax consolidated group continue to account for their own current and deferred tax amounts. The tax
consolidated group has applied the ‘separate taxpayer within group’ approach in determining the appropriate
amount of taxes to allocate to members of the tax consolidated group.
In addition to its own current and deferred tax amounts, the head entity also recognises the current tax liabilities
(or assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from each
subsidiary 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 tax consolidated group. The tax funding arrangement
ensures that the intercompany charge equals the current tax liability or benefit of each tax consolidated group
member, resulting in neither a contribution by the head entity to the subsidiaries nor a distribution by the subsidiaries
to the head entity.
Income Tax Critical Judgements
The consolidated entity is subject to income taxes in the jurisdictions in which it operates. Significant judgement
is required in determining the provision for income tax. There are many transactions and calculations undertaken
during the ordinary course of business for which the ultimate tax determination is uncertain. The consolidated entity
recognises liabilities for anticipated tax audit issues based on the consolidated entity’s current understanding of the
tax law. Where the final tax outcome of these matters is different from the carrying amounts, such differences will
impact the current and deferred tax provisions in the period in which such determination is made.
(a) The components of tax expense comprise:
Current tax
Adjustment in respect of prior years
Deferred tax
Over/(Under) provision in respect of prior years
Deferred tax included in income tax expense comprises:
(Increase) Decrease in deferred tax assets [note 8]
Increase (Decrease) in deferred tax liabilities [note 9]
Consolidated
Dec-15
[12 Months]
$’000
Dec-14
[6 Months]
$’000
9,250
(170)
9,080
(200)
–
(200)
8,880
907
(1,107)
(200)
950
(48)
902
92
(220)
(128)
774
360
(488)
(128)
Annual Report 2015 31
Notes to the Financial Statements
6. Income Tax Expense (continued)
(b) The prima facie tax payable on profit before income tax is reconciled to the income
tax as follows:
Prima facie tax payable on profit before income tax at 30%
8,814
700
Consolidated
Dec-15
[12 Months]
$’000
Dec-14
[6 Months]
$’000
Add tax effect of:
Non-deductible expenses
Less tax effect of:
Under Provision of deferred tax
Differences in overseas tax rates
Income tax expense attributable to entity
The applicable weighted average effective tax rates are as follows:
7. Current Tax
Current tax liability
Current tax asset
8. Deferred Tax Asset
Deferred tax asset comprises temporary differences attributable to:
Amounts recognised in profit or loss:
Provision for receivables impairment
Provision for employee entitlements
Accrued expenses
Inventory
Capitalised expenditure
Property Plant and Equipment
Future benefit of income tax losses
Amounts recognised in equity:
Share Issue Costs
Deferred tax asset
32
329
9,143
(170)
(93)
(263)
8,880
30.2%
391
1,091
(268)
(49)
(317)
774
33.2%
3,500
–
–
1,757
68
1,777
803
643
321
23
–
518
4,153
158
1,078
1,014
708
471
171
941
–
4,541
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015continued8. Deferred Tax Asset (continued)
Movements in Deferred Tax Asset
Opening Balance
Credited/(charged) to profit or loss
Credited/(charged) to equity
Closing Balance
9. Deferred Tax Liability
The balance comprises temporary differences attributable to:
Amounts recognised in profit or loss:
Land and Buildings
Prepayments
Accrued income
Intangible assets
Deferred tax liability
Movements in Deferred Tax Liability
Opening Balance
Credited/(charged) to profit or loss
Credited/(charged) to equity
Additions through business combinations
Closing Balance
Consolidated
Dec-15
[12 Months]
$’000
Dec-14
[6 Months]
$’000
4,541
(907)
519
4,153
192
14
795
4,182
5,183
6,290
(1,107)
–
–
5,183
4,901
(360)
–
4,541
198
8
1,292
4,792
6,290
6,778
(488)
–
4,792
6,290
10. Cash and Cash Equivalents
Cash and cash equivalents includes cash on hand, deposits held at call with financial institutions, other short-
term, highly liquid investments with original maturities of three months or less that are readily convertible to known
amounts of cash and which are subject to an insignificant risk of changes in value. For the statement of cash flows
presentation purposes, cash and cash equivalents also includes bank overdrafts, which are shown within borrowings
in current liabilities on the statement of financial position.
Cash at bank
15,835
3,703
Annual Report 2015 33
Notes to the Financial Statements
11. Trade and Other Receivables
Trade receivables are initially recognised at fair value and subsequently measured at amortised cost using the
effective interest method, less any provision for impairment. Trade receivables are generally due for settlement within
30 days from end of month.
Collectability of trade receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable are
written off by reducing the carrying amount directly. A provision for impairment of trade receivables is raised when
there is objective evidence that the consolidated entity will not be able to collect all amounts due according to the
original terms of the receivables. Significant financial difficulties of the debtor, probability that the debtor will enter
bankruptcy or financial reorganisation and default or delinquency in payments (more than 90 days overdue) are
considered indicators that the trade receivable may be impaired. The amount of the impairment allowance is the
difference between the asset’s carrying amount and the present value of estimated future cash flows, discounted
at the original effective interest rate. Cash flows relating to short-term receivables are not discounted if the effect of
discounting is immaterial.
Other receivables are recognised at amortised cost, less any provision for impairment. Other receivables include
cash deposits that are held with maturity periods longer than 3 months.
Trade receivables
Less: Provision for impairment of receivables
Other receivables
Consolidated
Dec-15
[12 Months]
$’000
Dec-14
[6 Months]
$’000
144,744
125,234
(312)
(534)
144,432
124,700
19,546
21,450
163,978
146,150
Impairment of Receivables
The provision for impairment of receivables assessment requires a degree of estimation and judgement. The level
of provision is assessed by taking into account the recent sales experience, the ageing of receivables, historical
collection rates and specific knowledge of the individual debtors’ financial position.
The consolidated entity has recognised a decrease in the provision of $221,116 (December 2014: $791 Decrease) in
profit or loss in respect of impairment of receivables for the year ended 31 December 2015.
The ageing of the impaired receivables provided for above are as follows:
0 – 3 Months overdue
3 – 6 Months overdue
Over 6 Months overdue
Movements in the provision for impairment of receivables are as follows:
Opening balance
Charge for the year
Closing balance
34
–
312
–
312
533
(221)
312
90
308
136
534
534
–
534
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015continued11. Trade and Other Receivables (continued)
Past Due but not Impaired
Customers with balances past due but without provision for impairment of receivables amount to $10,168,559 as at
31 December 2015 (2014: $11,575,064). The consolidated entity did not consider a credit risk on these balances after
reviewing credit terms of customers and trading history.
Past due but not impaired:
0 to 3 Months overdue
3 to 6+ Months overdue
Consolidated
Dec-15
[12 Months]
$’000
Dec-14
[6 Months]
$’000
9,598
571
10,169
10,029
1,546
11,575
12. Inventories
Finished goods are stated at the lower of cost and net realisable value. 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 received or receivable.
Stock in transit is stated at the lower of cost and net realisable value. Cost comprises purchase and delivery costs,
net of rebates and discounts received or receivable.
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.
Provision for Impairment of Inventories
The provision for impairment of inventories assessment requires a degree of estimation and judgement. The level
of the provision is assessed by taking into account the recent sales experience, the ageing of inventories and other
factors that affect inventory obsolescence.
Finished Goods
Less: Provision for Impairment
118,349
(2,020)
116,329
86,787
(2,173)
84,614
13. Property, Plant and Equipment
Land and buildings are carried at cost less subsequent depreciation for buildings and accumulated impairment
for land and buildings.
Each class of property improvements, plant and equipment is carried at cost less, where applicable, any
accumulated depreciation and impairment losses.
Depreciation is calculated on a diminishing value basis to write off the net cost of each item of property, plant
and equipment (excluding land) over their expected useful lives as follows:
Buildings
Property improvements
Leasehold improvements
Plant and equipment
– 40 Years
– 10–20 Years
– 10–20 Years
– 2–10 Years
Plant and equipment under lease
– 2–10 Years
Motor vehicles
– 8 years
Annual Report 2015 35
Notes to the Financial Statements
13. Property, Plant and Equipment (continued)
The residual values, useful lives and depreciation methods are reviewed, and adjusted if appropriate, at each
reporting date.
Leasehold improvements and plant and equipment under lease are depreciated over the unexpired period of the
lease or the estimated useful life of the assets, whichever is shorter.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic benefit
to the consolidated entity. Gains and losses between the carrying amount and the disposal proceeds are taken to
profit or loss. Any revaluation surplus reserve relating to the item disposed of is transferred directly to retained profits.
Estimation of Useful Lives of Assets
The consolidated entity determines the estimated useful lives and related depreciation and amortisation charges
for its property, plant and equipment and finite life intangible assets. The useful lives could change significantly as a
result of technical innovations or some other event. The depreciation and amortisation charge will increase where the
useful lives are less than previously estimated lives, or technically obsolete or non-strategic assets that have been
abandoned or sold will be written off or written down.
Consolidated
Dec-15
[12 Months]
$’000
Dec-14
[6 Months]
$’000
6,904
18,418
(1,571)
16,847
23,751
2,887
(1,283)
1,604
2,761
(2,078)
683
252
(217)
35
2,322
26,073
–
6,904
17,727
(1,093)
16,634
23,538
2,647
(749)
1,898
2,495
(1,172)
1,323
393
(346)
47
3,268
26,806
247
Freehold land
Building – at cost
Less accumulated depreciation
Total land and buildings
Fitout & Leasehold improvements – at cost
Less accumulated depreciation
Plant and equipment – at cost
Less accumulated depreciation
Motor vehicles
Less accumulated depreciation
Total plant and equipment
Total property, plant and equipment
Carrying amount of assets under finance lease
36
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015continued
13. Property, Plant and Equipment (continued)
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set
out below:
Freehold
land
$’000
Buildings
$’000
Fitout
Costs
$’000
Plant and
equipment
$’000
Motor
vehicles
$’000
Total
$’000
Balance at 1 July 2014
6,904
13,238
Additions
Additions through business
combinations
Disposals
Depreciation expense
Effect of movements in exchange rate
–
–
–
–
–
3,591
–
–
(195)
–
Balance at 31 December 2014
6,904
16,634
Additions
Additions through business
combinations
Disposals
Depreciation expense
Effect of movements in exchange rate
–
–
–
–
–
716
–
–
(497)
(6)
1,529
661
–
(60)
(243)
11
1,898
263
–
–
(551)
(6)
Balance at 31 December 2015
6,904
16,847
1,604
1,093
712
–
(116)
(368)
2
1,323
197
–
–
(836)
(1)
683
257
23,021
–
–
(202)
(8)
–
47
–
–
–
(12)
–
35
4,964
–
(378)
(814)
13
26,806
1,176
–
–
(1,896)
(13)
26,073
14. Intangibles
Intangible assets acquired as part of a business combination, other than goodwill, are initially measured at their fair
value at the date of the acquisition. Intangible assets acquired separately are initially recognised at cost. Indefinite life
intangible assets are not amortised and are subsequently measured at cost less any impairment. Finite life intangible
assets are subsequently measured at cost less amortisation and any impairment. The gains or losses recognised
in profit or loss arising from the de-recognition of intangible assets are measured as the difference between net
disposal proceeds and the carrying amount of the intangible asset. The method and useful lives of finite life intangible
assets are reviewed annually. Changes in the expected pattern of consumption or useful life are accounted for
prospectively by changing the amortisation method or period.
Goodwill
Goodwill arises on the acquisition of a business. Goodwill is not amortised. Instead, goodwill is tested annually
for impairment, or more frequently if events or changes in circumstances indicate that it might be impaired, and is
carried at cost less accumulated impairment losses. Impairment losses on goodwill are taken to profit or loss and are
not subsequently reversed.
Customer Contracts
Customer contracts acquired in a business combination are amortised on a straight-line basis over the period of their
expected benefit, being their finite life which varies between 18 months and 12 years.
Software
Significant costs associated with software are deferred and amortised on a straight-line basis over the period of their
expected benefit, being their finite life of 4 years.
Annual Report 2015 37
Notes to the Financial Statements
14. Intangibles (continued)
Impairment of Intangibles
Goodwill and other 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. An impairment loss is recognised for the amount by which the asset’s carrying amount exceeds its
recoverable amount.
Recoverable amount is the higher of an asset’s fair value less costs of disposal and value-in-use. The value-in-use
is the present value of the estimated future cash flows relating to the asset using a pre-tax discount rate specific to
the asset or cash-generating unit to which the asset belongs. Assets that do not have independent cash flows are
grouped together to form a cash-generating unit.
Goodwill
Customer Contracts
Less: Accumulated amortisation
Software – at cost
Less: Accumulated amortisation
Website – at cost
Less: Accumulated amortisation
Consolidated
Dec-15
$’000
17,799
17,657
(3,715)
137
(103)
258
(131)
Dec-14
$’000
17,799
17,657
(1,683)
92
(43)
231
(90)
31,902
33,963
Reconciliations of the written down values at the beginning and end of the current and previous financial year are set
out below:
Goodwill
$’000
Customer
Contracts
$’000
Software
$’000
Development
(Website)
$’000
Balance at 1 July 2014
17,799
17,096
Additions
Amortisation expense
Balance at 31 December 2014
17,799
Additions
Amortisation expense
Balance at 31 December 2015
17,799
(1,122)
15,974
(2,032)
13,942
38
41
(30)
49
45
(60)
34
158
3
(20)
141
27
(41)
127
Total
$’000
35,091
44
(1,172)
33,963
72
(2,133)
31,902
38
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015continued
14. Intangibles (continued)
Goodwill and other Indefinite Life Intangible Assets Estimates
The recoverable amounts of cash-generating units have been determined based on value-in-use calculations.
These calculations require the use of assumptions, including estimated discount rates based on the current cost
of capital and growth rates of the estimated future cash flows.
The recoverable amount of the consolidated entity’s goodwill has been determined by a value-in-use calculation
using a discounted cash flow model, based on a 1 year EBITDA projection period approved by management and
extrapolated for a further 4 years using a steady rate, together with a terminal value.
Management considers the cash generating units (CGU) of the group to be Australia and New Zealand. Goodwill
has been allocated $10.5m and $7.3m, respectively.
The following key assumptions were used in the discounted cash flow model for each cash generating unit:
a. 11.2% (December 2014: 10.9%) post-tax discount rate;
b. 6% in year 1 and 2.5% thereafter (December 2014: 2.5%) per annum EBITDA growth rate;
The discount rate of 11.2% post-tax reflects management’s estimate of the time value of money and the
consolidated entity’s weighted average cost of capital, the risk free rate and the volatility of the share price relative
to market movements. Management believes the projected 2.5% EBITDA growth rate is reasonable based on
general market growth.
Based on the above, the recoverable amount of each cash generating unit exceeded the carrying amount and
therefore no impairment of goodwill.
Sensitivity Analysis
As disclosed in note 2, the directors have made judgements and estimates in respect of impairment testing of
goodwill. Management believes that any reasonable changes in the key assumptions on which the recoverable
amount of division goodwill is based would not cause the cash-generating unit’s carrying amount to exceed its
recoverable amount. The sensitivities are as follows: (a) EBITDA would need to decrease by more than 57% to
trigger impairment for the Australian CGU, and 31% for the New Zealand CGU, with all other assumptions remaining
constant; (b) The discount rate would be required to increase to 24.5% to trigger impairment for the Australian CGU,
and 29.5% for the New Zealand CGU, with all other assumptions remaining constant.
15. Trade and Other Payables
These amounts represent liabilities for goods and services provided to the consolidated entity prior to the end of the
financial year and 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 30 - 60 days of recognition.
Trade payables
Other payables
Dec-15
$’000
Dec-14
$’000
132,822
9,785
132,113
13,280
142,607
145,393
The consolidated entity has entered into a bailment facility with GE Capital for the purchase of Cisco products
up to a limit of $80 million. Included in trade payables is an amount of $54,926,577 (2014: 30,944,381) payable to
GE Capital under this arrangement, whereby GE capital has legal title and first priority over its bailed goods and
proceeds in respect thereof and cash on deposit of $9.5 million. The nature of the bailment facility is such that
the arrangement is treated as a trade payable.
Annual Report 2015 39
Notes to the Financial Statements
16. Borrowings
Loans and borrowings are initially recognised at the fair value of the consideration received, net of transaction costs.
They are subsequently measured at amortised cost using the effective interest method.
Where there is an unconditional right to defer settlement of the liability for at least 12 months after the reporting date,
the loans or borrowings are classified as non-current.
Current
Receivables facility
Cash Advance facility
Purchase finance facility
Lease liability
Loan from Director
Non-Current
Corporate Bond
Total current and non-current borrowings
(a) Total current and non-current secured liabilities:
Receivables facility
Purchase finance facility
Lease liability
Dec-15
$’000
Dec-14
$’000
90,000
104,600
–
–
–
–
7,250
8,060
248
2,500
90,000
122,658
38,829
–
128,829
122,658
90,000
111,850
–
–
8,060
248
90,000
120,158
(b) The receivables purchase facility is secured by a registered fixed and floating charge over all assets and
undertakings of the company and fixed charge over all debtors. The corporate bond is an unsecured facility.
(c) Facility Limits for each of the facilities are as follows:
Receivables facility
Cash advance facility
Purchase finance facility
Lease liability
120,000
122,750
–
–
–
7,250
25,000
250
The drawn amount of these facilities as at the report date is as per Note 16 above.
Corporate Bond
On 16th March 2015, the Company engaged FIIG Securities Limited to arrange the issue of a 5 year unsecured
corporate bond. The offering was fully subscribed on the 26th March 2015, raising $38.7 million net of transaction
costs at a floating coupon rate over the 90 day bank bill swap rate. The bond offering increased the tenure of our
debt maturity profile and diversified our debt funding sources. The net proceeds of the offering were used to reduce
existing bank debt and to fund working capital investment.
The bond offering is part of our active approach to capital management. This bond issue is an important initiative
for the Company which reflects our strategy to ensure that we have multiple sources of funding and the security
of longer term debt.
40
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015continued17. Provisions
Provisions are recognised when the consolidated entity has a present (legal or constructive) obligation as a result
of a past event, it is probable the consolidated entity will be required to settle the obligation, and a reliable estimate
can be made of the amount of the obligation. The amount recognised as a provision is the best estimate of the
consideration required to settle the present obligation at the reporting date, taking into account the risks and
uncertainties surrounding the obligation. If the time value of money is material, provisions are discounted using
a current pre-tax rate specific to the liability. The increase in the provision resulting from the passage of time is
recognised as a finance cost.
Current
Employee Benefits
Lease make–good provision
Non-Current
Employee Benefits
Dec-15
$’000
Dec-14
$’000
5,066
222
5,288
4,225
359
4,584
1,031
908
Employee Benefits
Short-Term Employee Benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave expected
to be settled within 12 months of the reporting date are recognised in current liabilities 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.
Other Long-Term Employee Benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the reporting date
are recognised in non-current liabilities, provided there is an unconditional right to defer settlement of the liability. The
liability is 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, experience of employee departures and periods of service. Expected future payments
are discounted using market yields at the reporting date on national government bonds with terms to maturity and
currency that match, as closely as possible, the estimated future cash outflows.
Defined Contribution Superannuation Expense
Contributions to defined contribution superannuation plans are expensed in the period in which they are incurred.
Current
Movements in the provision for employee benefits
Opening balance
Charge for the year
Closing balance
4,225
841
5,066
2,558
1,667
4,225
Annual Report 2015 41
Notes to the Financial Statements
17. Provisions (continued)
Amounts not expected to be settled within the next 12 months
The current provision for employee benefits 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 consolidated entity does not have an
unconditional right to defer settlement. However, based on past experience, the consolidated entity does not expect
all employees to take the full amount of accrued leave or require payment within the next 12 months.
The following amounts reflect leave that is not expected to be taken within the next 12 months:
Employee benefits obligation expected to be settled after 12 months
Dec-15
$’000
2,703
Dec-14
$’000
1,724
Lease Make Good Provision
A provision has been made for the present value of anticipated costs for future restoration of leased premises. The
provision includes future cost estimates associated with closure of the premises. The calculation of this provision
requires assumptions such as application of closure dates and cost estimates. The provision recognised for each
site is periodically reviewed and updated based on the facts and circumstances available at the time. Changes to
the estimated future costs for sites are recognised in the statement of financial position by adjusting the asset and
the provision. Reductions in the provision that exceed the carrying amount of the asset will be recognised in profit
or loss.
Movements in the provision for lease make-good
Opening balance
Charge for the year
Closing balance
18. Issued Capital
Ordinary shares are classified as equity.
359
(137)
222
959
(600)
359
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net
of tax, from the proceeds.
Ordinary shares - fully paid
159,443,267
131,140,033
55,003
6,891
Dec 2015
Shares
Dec 2014
Shares
Dec 2015
$’000
Dec 2014
$’000
42
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015continued18. Issued Capital (continued)
Movements in Ordinary Share Capital
Details
Opening Balance
Date
No of Share
Issue Price
1-Jul-14
128,238,661
Issue of shares on dividend re-investment plan (DRP)
12-Aug-14
210,004
Issue of shares on dividend re-investment plan (DRP)
7-Oct-14
1,250,497
Issue of shares on dividend re-investment plan (DRP)
31-Dec-14
1,440,871
Balance
31-Dec-14
131,140,033
Issue of shares on dividend re-investment plan (DRP)
2-Apr-15
921,551
Issue of shares on dividend re-investment plan (DRP)
26-Jun-15
1,010,734
Shares issued – capital raising
Shares issued – SPP
Share issue costs (net of tax)
10-Aug-15
23,000,000
31-Aug-15
3,000,000
31-Aug-15
Issue of shares on dividend re-investment plan (DRP)
11-Sep-15
Issue of shares on dividend re-investment plan (DRP)
16-Dec-15
218,609
152,340
Balance
31-Dec-15
159,443,267
$1.77
$1.73
$1.64
$1.59
$1.95
$1.75
$1.75
$1.91
$1.77
$'000
1,997
371
2,161
2,362
6,891
1,465
1,971
40,250
5,250
(1,512)
418
270
55,003
Ordinary Shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on the winding up of the company in
proportion to the number of and amounts paid on the shares held. The fully paid ordinary shares have no par value
and the company does not have a limited amount of authorised capital. On a show of hands every member present
at a meeting in person or by proxy shall have one vote and upon a poll each share shall have one vote.
Share Buy-Back
There is no current on-market share buy-back.
Capital Risk Management
The consolidated entity’s objectives when managing capital is to safeguard its ability to continue as a going concern,
so that it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital
structure to reduce the cost of capital. In order to maintain or adjust the capital structure, the consolidated entity may
adjust the amount of dividends paid to shareholders, return capital to shareholders, issue new shares or sell assets
to reduce debt.
During August 2015, the Company completed an institutional share capital raising, issuing 23 million shares plus a
further 3 million shares to existing shareholders under a Share Purchase Plan, both at $1.75 per share. These issues
were fully subscribed and raised $43.3m net of transactional costs. This capital raising was used to reduce external
debt and to aid further investment in working capital going forward.
During 2015, the Company also raised a further $4.1m through the Company’s Dividend Reinvestment Policy (DRP)
for existing shareholders.
In the future the consolidated entity would look to raise capital when an opportunity to invest in a business or
company was seen as value adding relative to the current company’s share price at the time of the investment. In
light of the recent capital raising the consolidated entity is not actively pursuing additional investments in the short
term as it continues to deploy the proceeds to reduce costs and maximise opportunities.
The consolidated entity is subject to certain financing arrangements and covenants and meeting these is given
priority in all capital risk management decisions. There have been no events of default on the financing arrangements
during the financial year.
The capital risk management policy remains unchanged from the 31 December 2014 Annual Report.
Annual Report 2015 43
Notes to the Financial Statements
19. Reserves
Capital Profits Reserve (Pre-CGT)
Foreign currency reserve
Dec-15
$’000
Dec-14
$’000
369
3
372
369
356
725
Capital Profits Reserve (Pre-CGT)
The capital profits reserve records non-taxable profits on sale of investments.
Foreign Currency Reserve
The reserve is used to recognise exchange differences arising from translation of the financial statements of foreign
operations to Australian dollars. It is also used to recognise gains and losses on hedges of the net investments in
foreign operations.
Movements in reserves
Opening Balance
Foreign currency translation
Closing Balance
725
(353)
372
286
439
725
20. Dividends
Dividends are recognised when declared during the financial year and no longer at the discretion of the company.
Dividends declared or paid during the financial year were as follows:
Final Dividend – 31 December 2014. Fully franked at $0.020 per ordinary share paid
02.04.15 (Prior Period: Final Jun 2014: $0.005 paid 12.08.14)
Interim dividend – 31 December 2015. Fully franked at $0.0270 per ordinary share paid
26.06.15 (Prior Period: Interim Dec 2014: $0.185 paid 07.10.14)
Interim dividend – 31 December 2015. Fully franked at $0.040 per ordinary share paid
11.09.15 (Prior Period: Interim Dec 2014: $0.020 paid 31.12.14)
Interim dividend – 31 December 2015. Fully franked at $0.035 per ordinary share paid
16.12.15
2,623
641
3,566
2,376
6,363
2,594
5,575
18,127
–
5,611
The tax rate that dividends have been franked is 30% (2014: 30%)
Franking credit balance:
Franking credits available for subsequent financial years based on a tax rate of 30%
(2014: 30%)
7,341
7,676
The above amounts represent the balance of the franking account as at the end of the financial year adjusted for
franking credits arising from:
– franking credits from dividends recognised as receivables at year end
– franking credits that will arise from payment of the current tax liability
– franking debits arising from payment of proposed dividends recognised as a liability
44
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015continued21. Fair Value Disclosures
When an asset or liability, financial or non-financial,
is measured at fair value for recognition or disclosure
purposes, the fair value is based on the price that
would be received to sell an asset or paid to transfer
a liability in an orderly transaction between market
participants at the measurement date; and assumes
that the transaction will take place either: in the
principle market; or in the absence of a principal
market, in the most advantageous market.
Fair value is measured using the assumptions that
market participants would use when pricing the
asset or liability, assuming they act in their economic
best interest. For non-financial assets, the fair value
measurement is based on its highest and best use.
Valuation techniques that are appropriate in the
circumstances and for which sufficient data are
available to measure fair value, are used, maximising
the use of relevant observable inputs and minimising
the use of unobservable inputs.
Assets and liabilities measured at fair value are
classified, into three levels, using a fair value hierarchy
that reflects the significance of the inputs used
in making the measurements. Classifications are
reviewed each reporting date and transfers between
levels are determined based on a reassessment of
the lowest level input that is significant to the fair value
measurement.
For recurring and non-recurring fair value
measurements, external valuers may be used when
internal expertise is either not available or when
the valuation is deemed to be significant. External
valuers are selected based on market knowledge and
reputation. Where there is a significant change in fair
value of an asset or liability from one period to another,
an analysis is undertaken, which includes a verification
of the major inputs applied in the latest valuation and a
comparison, where applicable, with external sources of
data.
Fair Value Measurement Hierarchy
The consolidated entity is required to classify all assets
and liabilities, measured at fair value, using a three level
hierarchy, based on the lowest level of input that is
significant to the entire fair value measurement, being:
Level 1: Quoted prices (unadjusted) in active markets
for identical assets or liabilities that the entity can
access at the measurement date;
Level 2: Inputs other than quoted prices included within
Level 1 that are observable for the asset or liability,
either directly or indirectly;
Level 3: Unobservable inputs for the asset or liability.
Considerable judgement is required to determine what
is significant to fair value and therefore which category
the asset or liability is placed in can be subjective.
The fair value of assets and liabilities classified as level
3 is determined by the use of valuation models. These
include discounted cash flow analysis or the use of
observable inputs that require significant adjustments
based on unobservable inputs.
The company has a number of financial instruments
which are not measured at fair value in the statement of
financial position, including cash, receivables, payables
and borrowings. The fair value of these financial assets
and financial liabilities approximates their carrying
amount.
The fair value of Borrowings in Note 16, is estimated
by discounting the future contractual cash flows at the
current market interest rates for loans with similar risk
profiles and has been measured under Level 2 of the
hierarchy.
Annual Report 2015 45
Notes to the Financial Statements
Financial assets are derecognised when the rights
to receive cash flows from the financial assets have
expired or have been transferred and the consolidated
entity has transferred substantially all the risks and
rewards of ownership.
Financial Assets at Fair Value through Profit or Loss
Financial assets at fair value through profit or loss
are either: i) held for trading, where they are acquired
for the purpose of selling in the short-term with an
intention of making a profit; or ii) designated as such
upon initial recognition, where they are managed on
a fair value basis or to eliminate or significantly reduce
an accounting mismatch. Except for effective hedging
instruments, derivatives are also categorised as fair
value through profit or loss. Fair value movements
are recognised in profit or loss.
Impairment of Financial Assets
The consolidated entity assesses at the end of
each reporting period whether there is any objective
evidence that a financial asset or group of financial
assets is impaired. Objective evidence includes
significant financial difficulty of the issuer or obligor;
a breach of contract such as default or delinquency
in payments; the lender granting to a borrower
concessions due to economic or legal reasons that the
lender would not otherwise do; it becomes probable
that the borrower will enter bankruptcy or other financial
reorganisation; the disappearance of an active market
for the financial asset; or observable data indicating
that there is a measurable decrease in estimated
future cash flows.
The amount of the impairment allowance for financial
assets carried at cost is the difference between the
asset’s carrying amount and the present value of
estimated future cash flows, discounted at the current
market rate of return for similar financial assets.
22. Financial Instruments
Derivative Financial Instruments
Derivatives are initially recognised at fair value on
the date a derivative contract is entered into and
are subsequently remeasured to their fair value at
each reporting date. The accounting for subsequent
changes in fair value depends on whether the derivative
is designated as a hedging instrument, and if so,
the nature of the item being hedged. Derivatives are
classified as current or non-current depending on
the expected period of realisation.
Cash Flow Hedges
Cash flow hedges are used to cover the consolidated
entity’s exposure to variability in cash flows that
is attributable to particular risk associated with a
recognised asset or liability or a firm commitment which
could affect profit or loss. The effective portion of the
gain or loss on the hedging instrument is recognised
directly in equity, whilst the ineffective portion is
recognised in profit or loss. Amounts taken to equity
are transferred out of equity and included in the
measurement of the hedged transaction when the
forecast transaction occurs.
Cash flow hedges are tested for effectiveness on a
regular basis both retrospectively and prospectively
to ensure that each hedge is highly effective and
continues to be designated as a cash flow hedge.
If the forecast transaction
is no longer expected to occur, amounts recognised
in equity are transferred to profit or loss.
If the hedging instrument is sold, terminated, expires,
exercised without replacement or rollover, or if
the hedge becomes ineffective and is no longer a
designated hedge, amounts previously recognised
in equity remain in equity until the forecast transaction
occurs.
Investments and Other Financial Assets
Investments and other financial assets are initially
measured at fair value. Transaction costs are included
as part of the initial measurement, except for financial
assets at fair value through profit or loss. They are
subsequently measured at either amortised cost or fair
value depending on their classification. Classification
is determined based on the purpose of the acquisition
and subsequent reclassification to other categories
is restricted.
46
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015continued22. Financial Instruments (continued)
Financial Risk Management
Financial Assets and Liabilities
Financial Assets
Cash and cash equivalents
Loans and receivables
Total Financial Assets
Financial Liabilities
Trade and other payables
Borrowings
Total Financial Liabilities
Dec-15
$’000
Dec-14
$’000
15,835
163,978
179,813
3,703
146,150
149,853
142,607
128,829
145,393
122,658
271,436
268,051
Financial Risk Management Policies
The directors’ overall risk management strategy seeks to assist the company in meeting its financial targets,
whilst minimising potential adverse effects on financial performance. Although the company does not have any
documented policies and procedures, the key management personnel manage the different types of risks to which
the company is exposed by considering risk and monitoring levels of exposure to interest rate and credit risk and by
being aware of market forecasts for interest rates. Ageing analyses and monitoring of specific credit allowances are
undertaken to manage credit risk. Liquidity risk is managed through general business budgets and forecasts. The
main purpose of derivative financial instruments is to manage foreign currency risk. The company had open forward
contracts as at the end of the financial year to mitigate this risk. The directors and key management personnel meet
on a regular basis to analyse financial risk exposure and to evaluate treasury management strategies in the context
of the most recent economic conditions and forecasts.
Specific Financial Risk Exposures and Management
The main risks the company is exposed to through its financial instruments are:
– credit risk
– liquidity risk
– interest rate risk
– foreign exchange risk
Credit Risk
Exposure to credit risk relating to financial assets arises from the potential non-performance by counterparties
of contract obligations that could lead to a financial loss to the company.
Credit risk is reviewed regularly by the directors and key management personnel. It predominantly arises from
exposures to customers. The company’s exposure to credit risk is limited due to debtor insurance which is held over
its trade receivables. The insurance policy limits the exposure of the company to 10% of the individual customer’s
balance plus the excess as specified in the policy after an aggregate first loss of $100,000. Receivables balances are
monitored on an ongoing basis and as a result the company’s exposure to bad debts has not been significant.
It is the company’s policy that all customers who wish to trade on credit terms are subject to credit verification
procedures including an assessment of their credit rating, financial position, past experience and industry reputation.
Credit limits are set for each individual customer in accordance with parameters set by the directors. These credit
limits are regularly monitored. Customers that do not meet the company’s strict credit policies may only purchase
in cash or using recognised credit cards.
Annual Report 2015 47
Notes to the Financial Statements
22. Financial Instruments (continued)
Credit Risk Exposures
The maximum exposure to credit risk by class of recognised financial assets at reporting date, excluding the value
of any collateral or other security held, is equivalent to the carrying value and classification of those financial assets
(net of any provisions) as presented in the statement of financial position.
The company has no significant concentration of credit risk with any single counterparty or group of counterparties.
Trade and other receivables that are neither past due or impaired are considered to be of high credit quality.
Liquidity Risk
Liquidity risk arises from the possibility that the company might encounter difficulty in settling its debts or otherwise
meeting its obligations related to financial liabilities. The company manages this risk through the following
mechanisms:
– preparing forward-looking cash flow analyses in relation to its operational, investing and financing activities;
– monitoring undrawn credit facilities;
– obtaining funding from a variety of sources;
– maintaining a reputable credit profile;
– managing credit risk related to financial assets.
The tables below reflect an undiscounted contractual maturity analysis for financial liabilities. Financial guarantee
liabilities are treated as payable on demand since the company has no control over the timing of any potential
settlement of the liability.
Cash flows realised from financial instruments reflect management’s expectation as to the timing of realisation.
Actual timing may therefore differ from that disclosed. The timing of cash flows presented in the table to settle
financial liabilities reflect the earliest contractual settlement dates and do not reflect management’s expectations
that banking facilities will roll forward.
Financial liability maturity analysis
Financial liabilities due for payment
Trade and other payables
Borrowings
Total contractual outflows
Financial liabilities due for payment
Borrowings
Total contractual outflows
Financial Liabilities
Trade and other payables
Borrowings
Total expected outflows
Dec-15
$’000
Dec-14
$’000
Within 1 Year Within 1 Year
142,607
90,000
145,393
122,658
232,607
268,051
1 to 5 Years 1 to 5 Years
51,740
51,740
–
–
142,607
141,740
145,393
122,658
284,347
268,051
Financial Assets Pledged as Collateral
Certain financial assets have been pledged as security for the debt and their realisation into cash may be restricted
subject to terms and conditions attached to the relevant debt contracts. Refer to Note 16(c).
48
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015continued22. Financial Instruments (continued)
Interest Rate Risk
The company’s main interest rate risk arises from borrowings. All borrowings are at variable interest rates and expose
the company to interest rate risk which will impact future cash flows and interest charges and is indicated by the
following floating interest rate financial liabilities:
Floating rate instruments
Receivable finance facility
Purchase finance facility
Corporate Bond
Dec-15
$’000
Dec-14
$’000
90,000
111,850
–
8,060
38,829
–
128,829
119,910
With a view to mitigate some of this risk on 27 January 2016, the Company entered into a Derivative Financial
Instrument transaction with the Westpac Banking Corporation. The transaction is an Interest Rate Swap Transaction
for $40million with an effective date of 29 March 2016 and a tenure of 2 years, maturing on 26th March 2018. The
Company entered that transaction as an interest rate hedge against the partial tenure of the floating rate Corporate
Bond issued during 2015 and reflects the Company’s active capital management, providing some pricing certainty
over the next 2 budget cycles.
Sensitivity Analysis
The company has performed a sensitivity analysis relating to its exposure to interest rate risk at reporting date.
If interest rates changed by -/+ 1% from the year end rates with all other variables held constant, post-tax profit
would have been $901,803 lower/higher (December 2014: $839,370 lower/higher) as a result of higher/lower interest
payments. The company constantly analyses its interest rate exposure. Within this analysis consideration is given to
alternative financing and the mix of fixed and variable interest rates.
Foreign Exchange Risk
The consolidated entity undertakes certain transactions denominated in foreign currency and is exposed to foreign
currency risk through foreign exchange rate fluctuations. Foreign exchange risk arises from future commercial
transactions and recognised financial assets and financial liabilities denominated in a currency that is not the entity’s
functional currency. The risk is measured using sensitivity analysis and cash flow forecasting.
In order to protect against exchange rate movements, the consolidated entity has entered into forward foreign
exchange contracts. These contracts are hedging highly probable forecasted cash flows for the ensuing financial
year. Management has a risk management policy to hedge between 30% and 80% of anticipated foreign currency
transactions for the subsequent 4 months.
Annual Report 2015 49
Notes to the Financial Statements
22. Financial Instruments (continued)
The maturity, settlement amounts and the average contractual exchange rates of the consolidated entity’s
outstanding forward foreign exchange contracts at the reporting date was as follows:
Sell Australian dollars Average exchange rates
Sell New Zealand
dollars
Average exchange rates
31-Dec-15
$’000
31-Dec-14
$’000
31-Dec-15
31-Dec-14
31-Dec-15
$’000
31-Dec-14
$’000
31-Dec-15
31-Dec-14
Buy US dollars
Maturity:
0 – 3 months
3 – 6 months
Buy Australian
dollars
Maturity:
0 – 3 months
3 – 6 months
4,287
2,603
0.7167
0.8252
–
–
–
–
6,532
3,600
9,730
0.6497
0.7683
6,399
0.6714
0.7656
973
400
883
0.9099
0.8953
–
0.9365
–
The carrying amount of the consolidated entity’s foreign currency denominated financial assets and financial liabilities
at the reporting date was as follows:
Consolidated
Cash at bank
Trade receivables
Trade payables
Net statement of financial position exposure
Dec-15
US $’000
NZ $’000
173
1,648
(21,328)
(19,507)
5,122
13,498
(6,709)
11,911
Based on the financial instruments held at 31 December 2015, a strengthening/weakening of AUD against US$ and
NZD$ would have resulted in the following changes to the Groups reported profit and Loss and/or equity.
Sensitivity Analysis
(Effects in Thousands)
US$ (5% movement)
NZD$ (5% movement)
Equity
Profit or Loss
Strengthening
Weakening
Strengthening
Weakening
–
(463)
–
512
929
(170)
(1,027)
188
50
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015continued23. Key Management Personnel Compensation
Compensation
The aggregate compensation made to directors and other members of key management personnel of the
consolidated entity is set out below:
Short-term benefits
Long-term benefits
Post-employment benefits
Total compensation
Dec-15
$
Dec-14
$
3,098,273
1,085,136
15,298
8,611
286,646
101,555
3,400,217
1,195,302
24. Remuneration of Auditors
During the financial year the following fees were paid or payable for services provided by BDO, the auditor of the
company, its network firms and unrelated firms:
Audit services – BDO East Coast Partnership
Auditing or reviewing the financial report
Audit services – Other BDO Network Firms
Auditing or reviewing the financial report
Other services – BDO East Coast Partnership
Indirect Tax Services
Tax & Corporate Services
Other Services – Other BDO Network Firms
Indirect Tax Services
Tax & Corporate Services
Other Services - Other Firms
Dec-15
$
Dec-14
$
188,000
140,000
21,985
17,061
133,700
270,189
287,250
137,146
410,846
17,286
35,308
52,594
–
–
–
–
8,153
25. Contingent Liabilities
On 30 October, 2015 the Company exchanged conditional contracts for the purchase of a 17.2 hectare parcel of land
adjacent to the Company’s current warehouse facility in Kurnell NSW. The purchase price was $18m excluding GST
(subject to any agreed adjustments). Of the total new property purchased there is 10.0 hectares of useable land. This
represents a land size four times the size of our current location. We are yet to determine what our requirements will
be and planning will commence for this during the 2016 financial year. Following the Company’s intended expansion
onto this property, any excess land may be subdivided and sold.
A deposit of $1.8m has already been paid and is reflected as an asset under Other Receivables. If all conditions for
settlement are satisfied the balance that will be required to be paid is $18m which is represented by purchase price,
plus GST less deposit already paid.
Annual Report 2015 51
Notes to the Financial Statements
26. Commitments
Capital Commitments
Capital expenditure commitments contracted for at reporting date but not recognised as liabilities:
Property, plant and equipment
Dec-15
$ ‘000
Dec-14
$ ‘000
122
500
This contracted commitment is for the remaining roadworks required by the local council under our approved
building development application.
Lease Commitments
The determination of whether an arrangement is or contains a lease is based on the substance of the arrangement
and requires an assessment of whether the fulfilment of the arrangement is dependent on the use of a specific asset
or assets and the arrangement conveys a right to use the asset.
A distinction is made between finance leases, which effectively transfer from the lessor to the lessee substantially
all the risks and benefits incidental to ownership of leased assets, and operating leases, under which the lessor
effectively retains substantially all such risks and benefits.
Finance leases are capitalised. A lease asset and liability are established at the fair value of the leased assets,
or if lower, the present value of minimum lease payments. Lease payments are allocated between the principal
component of the lease liability and the finance costs, so as to achieve a constant rate of interest on the remaining
balance of the liability.
Leased assets acquired under a finance lease are depreciated over the asset’s useful life or over the shorter of
the asset’s useful life and the lease term if there is no reasonable certainty that the consolidated entity will obtain
ownership at the end of the lease term.
Operating lease payments, net of any incentives received from the lessor, are charged to profit or loss on a straight-
line basis over the term of the lease.
Lease Commitments – Operating
Committed at the reporting date but not recognised as liabilities, payable:
Within one year
One to five years
938
804
1,742
956
1,077
2,033
52
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015continued27. Parent Entity Information
Set out below is the supplementary information about the parent entity:
Statement of profit or loss and other comprehensive income
Profit after income tax
Total comprehensive income
Statement of financial position
Total current assets
Total assets
Total current liabilities
Total liabilities
Equity
Issued capital
Reserves
Retained profits
Total Equity
Dec-15
$ ‘000
14,957
14,957
Dec-14
$ ‘000
(1,650)
(1,650)
243,135
320,993
217,733
259,764
55,003
369
5,857
182,515
261,909
242,968
245,622
6,891
369
9,026
61,229
16,286
Guarantees Entered into by the Parent Entity in Relation to the Debts of its Subsidiaries
The parent entity and some of its subsidiaries are party to a deed of cross guarantee under which each company
guarantees the debts of the others. No deficiencies of assets exist in any of these subsidiaries.
Contingent Liabilities
The parent entity had the contingent liabilities as disclosed at Note 25 as at 31 December 2015.
Capital Commitments – Property, Plant and Equipment
The parent entity had the capital commitments for property, plant and equipment as detailed in Note 26.
Significant Accounting Policies
The accounting policies of the parent entity are consistent with those of the consolidated entity, as disclosed in
Note 1 and throughout the notes.
28. Interests in Subsidiaries
The consolidated financial statements incorporate the assets, liabilities and results of the following wholly-owned
subsidiaries in accordance with the accounting policy described in notes:
Name
Principal place of
business/country of
incorporation
Ownership Interest
2015
%
2014
%
Express Data Holdings Pty Limited
Australia
100%
100%
Dicker Data New Zealand Ltd
(formerly Express Data New Zealand Ltd)
Sims International Pty Ltd
New Zealand
Australia
Sims International Ltd (deregistered in December 2014)
New Zealand
100%
100%
100%
100%
100%
100%
Annual Report 2015 53
Notes to the Financial Statements
29. Deed of Cross Guarantee
The following entity is party to a deed of cross guarantee under which each company guarantees the debts of the
others:
Express Data Holdings Pty Limited
By entering into the deed, the wholly-owned entity has been relieved from the requirement to prepare financial
statements and directors’ report under Class Order 98/1418 (as amended) issued by the Australian Securities and
Investments Commission (‘ASIC’).
The above company represent a ‘Closed Group’ for the purposes of the Class Order, and as there are no other
parties to the Deed of Cross Guarantee that are controlled by Dicker Data Limited, they also represent the ‘Extended
Closed Group’.
Set out below is a consolidated statement of profit or loss and other comprehensive income and statement of
financial position of the ‘Closed Group’.
Statement of profit or loss and other comprehensive income
Revenue
Other income
Changes in inventories
Purchases of inventories
Employee benefits expense
Depreciation and amortisation
Finance costs
Other expenses
Profit before income tax expense
Income tax expense
Profit after income tax expense
Other comprehensive income, net of tax
Total comprehensive income for the year
Retained Profits
Retained profits at the beginning of the financial year
Profit after income tax expense
Dividends Paid
Retained profits at the end of the financial year
Dec-15
$’000
Dec-14
$’000
950,968
430,064
7,010
290
29,254
(364,942)
(889,463)
(43,072)
(3,660)
(7,543)
(26,843)
(21,312)
(1,791)
(3,985)
(13,886)
(11,603)
29,608
(7,472)
22,136
–
22,136
11,173
22,136
(18,127)
15,182
(122)
(65)
(187)
–
(187)
14,103
(187)
(2,744)
11,173
54
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015continued29. Deed of Cross Guarantee (continued)
Statement of financial Position
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventories
Current Tax asset
Total Current Assets
Non-Current Assets
Property, plant and equipment
Intangible assets
Deferred tax assets
Total Non-Current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Trade and other payables
Borrowings
Current tax liabilities
Short-term provisions
Total Current Liabilities
Non-Current Liabilities
Borrowings
Deferred tax liabilities
Long-term provisions
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Issued capital
Reserves
Retained profits
TOTAL EQUITY
Dec-15
$’000
Dec-14
$’000
10,583
158,508
105,827
–
676
134,250
76,572
1,757
274,918
213,255
25,780
31,868
3,416
61,064
335,982
26,259
33,913
3,734
63,906
277,161
122,420
90,000
3,226
4,740
125,466
122,658
(220)
4,210
220,386
252,114
38,829
5,183
1,031
45,043
–
6,290
908
7,198
265,429
259,312
70,553
17,849
55,002
369
15,182
70,553
6,890
(214)
11,173
17,849
Annual Report 2015 55
Notes to the Financial Statements
30. Reconciliaton of Profit After Income Tax to Net Cash
Profit after income tax
Adjustments for:
Depreciation
Amortisation of intangibles
Changes in Assets & Liabilities:
Decrease (increase) in current inventories
Decrease (increase) in current receivables
Decrease (increase) in deferred tax assets
(Decrease) increase in deferred tax liabilities
(Decrease) increase in payables & Other
(Decrease) increase in provisions
(Decrease) increase in non-current assets
(Decrease) increase in current tax liabilities
Dec-15
$’000
Dec-14
$’000
20,499
1,560
1,896
2,133
814
1,173
(31,714)
(17,607)
388
(1,107)
(2,782)
473
–
5,258
446
17,570
(787)
(487)
(32,589)
1,381
188
(2,107)
Net cash from operating activities
(22,563)
(12,838)
31. Non-Cash Investing and Financing Activities
Shares issued under dividend reinvestment plan
4,123
4,123
4,894
4,894
56
Dicker Data LimitedFOR THE YEAR ENDED 31 DECEMBER 2015continued
32. Earnings Per Share
Basic Earnings Per Share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Dicker Data Limited,
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
financial year.
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.
Profit after income tax
Profit after income tax attributable to the owners of Dicker Data Limited
Weighted average number of shares used as denominator
Weighted average number of ordinary shares used as the denominator in calculating
basic earnings per share
Weighted average number of ordinary shares and options used as the denominator in
calculating diluted earnings per share
Basic earnings per share (cents)
Diluted earnings per share (cents)
33. Related Party Transactions
Parent Entity:
Dicker Data Limited is the parent entity.
Subsidiaries:
Interests in subsidiaries are set out in note 28.
Dec-15
$’000
20,499
Dec-14
$’000
1,560
Number
Number
142,436
129,682
142,436
129,682
Cents
Cents
14.39
14.39
1.20
1.20
Key Management Personnel:
Disclosures relating to key management personnel are set out in note 23 and the remuneration report in the
directors’ report.
Transactions with Related Parties
During the year there were short term loans made by David Dicker and Fiona Brown to the company. The loans were
unsecured and repayable on-call, and were fully repaid. Interest on the loan is at 5.5% paid semi-annually or when
repaid. Total interest paid was $97,287.
Annual Report 2015 57
Directors’ Declaration
In the directors' opinion:
– the attached financial statements and notes thereto comply with the Corporations Act 2001, the Accounting
Standards, the Corporations Regulations 2001 and other mandatory professional reporting requirements;
– the attached financial statements and notes thereto comply with International Financial Reporting Standards as
issued by the International Accounting Standards Board as described in note 1 to the financial statements;
– the attached financial statements and notes thereto give a true and fair view of the consolidated entity's financial
position as at 31st December 2015 and of its performance for the financial year ended on that date;
– there are reasonable grounds to believe that the company will be able to pay its debts as and when they become
due and payable; and
– at the date of this declaration, there are reasonable grounds to believe that the members of the Extended Closed
Group will be able to meet any obligations or liabilities to which they are, or may become, subject by virtue of the
deed of cross guarantee described in note 31 to the financial statements.
The directors have been given the declarations required by section 295A of the Corporations Act 2001.
Signed in accordance with a resolution of directors made pursuant to section 295(5)(a) of the Corporations Act 2001.
On behalf of the directors
David Dicker
CEO & Chairman
Sydney, 29 February 2016
58
Dicker Data Limited
Auditor Declaration of Independence
Tel: +61 2 9251 4100
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
Fax: +61 2 9240 9821
www.bdo.com.au
www.bdo.com.au
Level 11, 1 Margaret St
Level 11, 1 Margaret St
Sydney NSW 2000
Sydney NSW 2000
Australia
Australia
INDEPENDENT AUDITOR’S REPORT
To the members of Dicker Data Limited
Report on the Financial Report
We have audited the accompanying financial report of Dicker Data Limited, which comprises the
DECLARATION OF INDEPENDENCE BY KIERAN GOULD TO THE DIRECTORS OF DICKER DATA LIMITED
consolidated statement of financial position as at 31 December 2015, 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, notes comprising a summary of
As lead auditor of Dicker Data Limited for the year ended 31 December 2015, I declare that, to the
significant accounting policies and other explanatory information, and the directors’ declaration of the
consolidated entity comprising the company and the entities it controlled at the year’s end or from
best of my knowledge and belief, there have been:
time to time during the financial year.
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
Directors’ Responsibility for the Financial Report
2. No contraventions of any applicable code of professional conduct in relation to the audit.
The directors of the company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
This declaration is in respect of Dicker Data Limited and the entities it controlled during the period.
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error. In Note 1, the directors also state, in accordance with Accounting Standard AASB 101
Presentation of Financial Statements, that the financial statements comply with International
Financial Reporting Standards.
Auditor’s Responsibility
Kieran Gould
Partner
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our
audit in accordance with Australian Auditing Standards. Those standards require that we comply with
BDO East Coast Partnership
relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain
reasonable assurance about whether the financial report is free from material misstatement.
Sydney, 29 February 2016
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial report. The procedures selected depend on the auditor’s judgement, including the
assessment of the risks of material misstatement of the financial report, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the company’s
preparation of the financial report that gives a true and fair view in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of accounting estimates made by the directors, as
well as evaluating the overall presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations
Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which
has been given to the directors of Dicker Data Limited, would be in the same terms if given to the
directors as at the time of this auditor’s report.
BDO East Coast Partnership ABN 83 236 985 726 is a member of a national association of independent entities which are all members of BDO Australia Ltd
BDO East Coast Partnership ABN 83 236 985 726 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 East Coast Partnership and BDO Australia Ltd are members of BDO International Ltd,
ABN 77 050 110 275, an Australian company limited by guarantee. BDO East Coast Partnership 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
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, other than for the acts or omissions of financial services licensees.
under Professional Standards Legislation, other than for the acts or omissions of financial services licensees.
Annual Report 2015 59
Independent Auditors Report
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
Level 11, 1 Margaret St
Sydney NSW 2000
Australia
INDEPENDENT AUDITOR’S REPORT
To the members of Dicker Data Limited
Report on the Financial Report
We have audited the accompanying financial report of Dicker Data Limited, which comprises the
consolidated statement of financial position as at 31 December 2015, 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, notes comprising a summary of
significant accounting policies and other explanatory information, and the directors’ declaration of the
consolidated entity comprising the company and the entities it controlled at the year’s end or from
time to time during the financial year.
Directors’ Responsibility for the Financial Report
The directors of the company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error. In Note 1, the directors also state, in accordance with Accounting Standard AASB 101
Presentation of Financial Statements, that the financial statements comply with International
Financial Reporting Standards.
Auditor’s Responsibility
Our responsibility is to express an opinion on the financial report based on our audit. We conducted our
audit in accordance with Australian Auditing Standards. Those standards require that we comply with
relevant ethical requirements relating to audit engagements and plan and perform the audit to obtain
reasonable assurance about whether the financial report is free from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in
the financial report. The procedures selected depend on the auditor’s judgement, including the
assessment of the risks of material misstatement of the financial report, whether due to fraud or error.
In making those risk assessments, the auditor considers internal control relevant to the company’s
preparation of the financial report that gives a true and fair view in order to design audit procedures
that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the
effectiveness of the company’s internal control. An audit also includes evaluating the appropriateness
of accounting policies used and the reasonableness of accounting estimates made by the directors, as
well as evaluating the overall presentation of the financial report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our audit opinion.
Independence
In conducting our audit, we have complied with the independence requirements of the Corporations
Act 2001. We confirm that the independence declaration required by the Corporations Act 2001, which
has been given to the directors of Dicker Data Limited, would be in the same terms if given to the
directors as at the time of this auditor’s report.
BDO East Coast Partnership ABN 83 236 985 726 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 East Coast Partnership 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, other than for the acts or omissions of financial services licensees.
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Dicker Data Limited
Opinion
In our opinion:
(a)
the financial report of Dicker Data Limited is in accordance with the Corporations Act 2001,
including:
(i)
giving a true and fair view of the consolidated entity’s financial position as at 31 December
2015 and of its performance for the year ended on that date; and
(ii) complying with Australian Accounting Standards and the Corporations Regulations 2001; and
(b)
the financial report also complies with International Financial Reporting Standards as disclosed in
Note 1.
Report on the Remuneration Report
We have audited the Remuneration Report included in pages 12 to 17 of the directors’ report for the
year ended 31 December 2015. 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.
Opinion
In our opinion, the Remuneration Report of Dicker Data Limited for the year ended 31 December 2015
complies with section 300A of the Corporations Act 2001.
BDO East Coast Partnership
Kieran Gould
Partner
Sydney, 29 February 2016
2
Annual Report 2015 61
Shareholder Information
The shareholder information set out below was applicable as at 18 February 2016.
Ordinary Share Capital
As at 18 February 2016, the issued capital of the Company was 159,443,267 ordinary fully paid shares.
Distribution of Equity Securities
Analysis of numbers of equity security holders by size of holding:
Holding
1 to1,000
1,001 to 5000
5,001 to 10,000
10,001 to 100,000
100,000 and over
Ordinary shares
Number of
Holders
Number of
Shares
112
184
194
297
46
833
55,471
532,660
1,692,940
7,188,920
149,973,276
159,443,267
Unquoted Options
The Company had no unquoted options on issue as at 31 December 2015 or as at 18 February 2016.
Less than Marketable Parcels of Ordinary Shares
There were 50 holders of less than a marketable parcel of ordinary shares. The number of shares in aggregate
of these unmarketable parcels is 9,069.
Corporate Governance Statement
The corporate governance statement can be found on the Company’s website at the following link:
https://www.dickerdata.com.au/Investor
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Dicker Data LimitedTwenty five largest holders of quoted equity securities
Shareholder
MR DAVID JOHN DICKER
MS FIONA TUDOR BROWN
Number of
fully paid
Ordinary
Shares
% of Issued
Capital
60,553,495
52,726,570
38.0%
33.1%
J P MORGAN NOMINEES AUSTRALIA LIMITED
NATIONAL NOMINEES LIMITED
BNP PARIBAS NOMINEES PTY LTD
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