ANNUAL REPORT
2018
d
Dicker Data is an Australian owned
and operated, ASX listed distributor
of computer hardware, software
and related products with over
40 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 finished the FY18 year with revenues
just short of $1.5bn. Since listing on the ASX
in January 2011, Dicker Data has delivered
consistently profitable results for shareholders
whilst maintaining a 100% dividend policy.
1 Our Brands
2 CEO Commentary
3 Board of Directors and Senior Management
4 Results Highlights
7 Directors’ Report
18 Statement of Profit or Loss and Other Comprehensive Income
19 Statement of Financial Position
20 Statement of Changes in Equity
21 Statement of Cash Flows
22 Notes to the Financial Statements
51 Directors Declaration
52 Auditor’s Declaration of Independence
53 Independent Auditor’s Report
56 Shareholder Information
Dicker Data Limited 1
Our Brands
OUR VENDOR PORTFOLIO INCLUDES:
Annual Report 2018 2
CEO Commentary
Welcome to our full year
report for 2018.
David Dicker
Chairman and CEO
Yet again, Financial Year 2018
was a record for the company.
Record Sales of just under $1.5b
and Record Profits of $46.2m.
An exceptional result that is a
particularly satisfying outcome.
Please see our attached report
for all the details.
Once again, I’d like to thank our
staff for an incredible level of
performance.
Since we listed the company
in 2011 our share price has
risen from 20 cents to $3.20.
A 16 times increase in capital
value with company currently
valued at over $500m.
We have maintained our
dividend policy and generated
a consistent, outstanding return
for the Shareholders.
David Dicker
Chairman and CEO
Sydney, 28 February 2019
Dicker Data Limited Board of Directors
and Senior Management
3
David Dicker
Chairman and
Chief Executive Officer
Mary Stojcevski
Executive Director and
Chief Financial Officer
Michael Demetre
Executive Director
and Logistics Director
Vladimir Mitnovetski
Executive Director and
Chief Operating Officer
Ian Welch
Executive Director and
Chief Information Officer
Fiona Brown
Non-executive Director
Board of Directors Senior Management
Annual Report 2018 4
RESULTS SUMMARY
Results Highlights
UP
20.2%
UP
20.5%
UP
13.9%
UP
14.4%
UP
16.0%
EBITDA
REVENUE
NET PROFIT
BEFORE TAX*
EARNINGS
PER SHARE
NET PROFIT
AFTER TAX
Key Financial Data
Total revenue
Gross profit
Earnings before interest, tax, depreciation [EBITDA]
Operating profit before tax*
Net profit before tax
Net profit after tax [NPAT]
Earnings per share (cents)
Dividends paid
Dividends per share (cents)
* net operating profit before tax excluding one off cost for Employee Share Scheme
2018
$’000
2017
$’000
1,493,561
1,305,972
132,375
117,799
54,358
48,055
46,607
40,170
46,215
40,170
32,467
26,942
20.22
16.82
28,894
26,265
18.00
16.40
Dicker Data Limited
5
Results Highlights
Continued
REVENUE ($M)
GROSS PROFIT ($M)
.
6
3
9
4
,
1
.
0
6
0
3
,
1
.
5
5
8
1
,
1
.
6
7
7
0
,
1
1500
1200
900
600
300
0
150
120
90
60
30
0
.
4
2
3
1
.
8
7
1
1
.
7
9
0
1
.
5
3
0
1
FY15
FY16
FY17
FY18
FY15
FY16
FY17
FY18
EBITDA ($M)
OPERATING PROFIT BEFORE TAX ($M)
.
4
4
5
1
.
8
4
.
4
5
4
.
*
6
2
4
60
50
40
30
20
10
0
.
6
6
4
.
2
0
4
.
6
6
3
*
6
.
1
3
50
40
30
20
10
0
FY15
FY16
FY17
FY18
FY15
FY16
FY17
FY18
* before tax and one-off integration and share acquisition costs
Annual Report 2018 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 2018.
7
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 2018.
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
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/Share
(in Cents)
Amount
(in 000’s)
Type
19-Feb-18
18-May-18
20-Aug-18
20-Nov-18
Total
02-Mar-18
01-Jun-18
03-Sep-18
03-Dec-18
0.0480
0.0440
0.0440
0.0440
0.1800
$7,696
Final
$7,064
Interim
$7,066
Interim
$7,068
Interim
$28,894
FY
2017
2018
2018
2018
Amount
Franked
100%
100%
100%
100%
The total dividends declared and paid during the financial year were 18.0 cents per share or a total of $28.9m,
fully franked. (2017: 16.40 cents per share, $26.3m)
Our dividend policy provides for fully franked dividends to be paid on a quarterly basis, with the intent 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 (DRP) introduced in March 2014 has been retained for the 2018 year.
Of the $28.9m dividends paid, $28.2m were paid as cash dividends and $0.7m participated in the DRP.
A final dividend for FY18 of 7.0 cents per share was declared on 11 February 2019 with a record date of 15 February 2019
and a payment date of 1 March 2019. This brings total dividends to be paid for the FY18 financial year to 20.20 cents per
share, an increase of 3.4 cents per share or 20.2% from FY17.
Type
Interim
Interim
Interim
Final
Payment Date
01-Jun-18
03-Sep-18
03-Dec-18
01-Mar-19
Dividend
per share
(cents)
0.0440
0.0440
0.0440
0.0700
0.2020
FY
Payment
Date
2018
09-Jun-17
2018
01-Sep-17
2018
01-Dec-17
2018
02-Mar-18
Dividend
per share
(cents)
0.0400
0.0400
0.0400
0.0480
0.1680
FY
2017
2017
2017
2017
Annual Report 2018
8
Directors’ Report
Continued
OPERATING 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:
Dec-18
$ ‘000
Dec-17
$ ‘000
Change $
$ ‘000
Change %
Total revenue
Gross profit
$1,493,561
$1,305,972
$187,589
$132,375
$117,799
$14,577
Net operating profit before tax*
$46,606
$40,170
$6,436
Net profit before tax
$46,215
$40,170
$6,045
14.4%
12.4%
16.0%
15.0%
Net profit after tax attributable to members
$32,467
$26,942
$5,525
20.5%
* net operating profit before tax excluding one off cost for Employee Share Scheme
REVENUE
The revenue for the consolidated entity for the 12 months to 31 December 2018 was $1,493.6m (2017: $1,306m), up by
$187.6m (+14.4%).
Dicker Data has continued to add new vendors and increased the breadth of products offered by existing vendors
whilst still driving growth.
In 2018 Dicker Data added a total of 6 new vendors, contributing an incremental $12.3m. Of the existing vendors we saw
growth of $174.3m (+13.4%). Other revenue also increased by $1.0m
At a country level, Australia grew $233.7m (+20.0%) and New Zealand contracted $47.1m (-36.0%) due to the full year
effect of the loss of the Cisco business.
At a sector level, we maintained strong growth across all business units, with Hardware (+$129.2m, +12.6%), Software
(+$56.8m, +20.9%), and Services (+$0.6m, +8%).
GROSS PROFIT
Despite a decrease in gross profit margin, gross profit for the reporting period was up 12.4% at $132.4m (2017: $117.8m).
As expected, gross profit margins have abated slightly at 8.9% (2017: 9.0%) due to product mix and market
competition.
OPERATING EXPENSES
Operating Expenses
Operating costs for the reporting period were $80.8m (2017: $71.4m), an increase of $9.4m (13.1%), falling slightly as a
proportion to sales at 5.4% (2017: 5.5%).
The increase in costs is attributed to an increase in salary related expenses. Excluding value of Employee Share Scheme
costs, salary costs were $66.6m (2017: $59.0m) an increase of $7.6m, remaining flat as a proportion of sales at 4.5%
(2017: 4.5%). The increase in salary costs is attributed to investment in additional headcount as a result of new vendor
signings. Headcount across the group finished at 442 (2017: 410).
Depreciation, Amortisation and Interest
Depreciation and Amortisation for the reporting period was $2.6m, flat to the prior period of $2.6m.
Finance costs in the reporting period were $5.7m, up $0.2m from the prior year (2017: $5.5m). The company continues to
improve its working capital efficiencies, with net average debt increasing by just 1.6% over the course of the year.
PROFIT
Profit before tax finalised at $46.2m (2017: $40.2m) up by 15.0%. Excluding one off costs relating to share issue for
Employee Share Scheme, operating profit before tax finalised at $46.6m, up by 16.0%.
Net Profit after tax increased to $32.5m (2017: $26.9m), up by 20.5%. Tax expense in 2018 includes a credit for remission of
a franking deficit tax which was provisioned for in the FY17 financial statements.
Weighted average earnings per share increased to 20.22 cents per share (2017: 16.82 cents), up by 20.2%.
Dicker Data Limited 9
Directors’ Report
Continued
STATEMENT OF FINANCIAL POSITION
Total assets as at 31 December 2018 increased to $429.0m
(2017: $384.3m).
The statement of financial position reflected an increase
in working capital investment with working capital
finishing higher than the previous period. Total investment
in net working capital was $121.2m, up by $24.5m from
previous year (2017: $96.7m). Cash finalised at $6.6m,
down by $2.8m (2017: $9.4m). Trade and other receivables
were up from the from the previous period to $238.7m
(2017: $207.0m). The company showed a slight increase
in inventory days with inventories finishing at $105.5m
(27.6 days), up from $88.6m (26.5 days) in 2017. Trade and
other payables were up to $223.0m (2017: $198.9m).
Property, plant and equipment increased to $46.8m
during the period (2017: $45.9m) an increase of $0.9m
mainly related to preliminary capital expenditure in
relation the property purchased for construction of the
new distribution centre. We are still awaiting approval for
our Development Application that was lodged with NSW
Department of Planning and Environment this time last
year. After much correspondence with the Department
we expect this to be approved in the next few weeks and
expect to commence construction shortly after that.
Total liabilities as at 31 December 2018 were $349.0m,
up from the prior period (2017: $309.4m).
Current borrowings comprising a receivables purchase
facility with Westpac was at $70.0m as at 31 December
2018, $15.0m higher than prior year (2017: $55.0m)
reflecting our increased working capital investment.
Equity has increased to $80.0m during the period
(2017: $74.9m).
Equity Movement
Equity 31 Dec 2017
Comprehensive Income for FY18
Dividends Paid
Share Issue (DRP)
Share Issue (ESS)
Equity 31 Dec 2018
$’000
74,883
32,859
(28,894)
722
392
79,962
With the increase in our investment in working capital and
resulting increased debt, the debt to equity ratio increased
to 1.37x (2017: 1.26x). However the net tangible assets position
continued to improve finalising at $52.3m (2017: $45.7m).
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Building Update
On 13 May 2016 the Company purchased a 17.2 hectare
parcel of land adjacent to the Company’s current
warehouse facility in Kurnell NSW. This property was
purchased with a view to build a new distribution centre
to expand our current operations and provide the
capacity that will be required to support future growth.
The development application for the new distribution
centre was lodged 27 February 2018 with the NSW
Department of Planning and Environment. At the time
of this report the development application was yet
to be formally approved, although based on all our
correspondence with the Department to date we have
received indication that the formal approval should
be completed in a couple of weeks. As soon as the
development application has been approved we expect
to start with construction.
In the meantime we are in the process of preparing
tender documentation with a view to appointing a
builder on the project in the coming weeks. We expect
the capital expenditure to be incurred during FY19 to be in
the vicinity of $40m with the balance of the project to be
completed in FY20 with an additional capital expenditure
of approximately $15m. The initial cost of construction is
expected to be funded through our existing receivables
facility with Westpac, and we are currently reviewing our
options for funding the balance of the construction.
Employee Share Scheme
In celebration of the Company’s 40 year anniversary
and in recognition of all the work and contribution by
our employees, in March 2018 the company announced
an issue of free shares to all eligible employees. Under
the share plan staff were offered $1,000 worth of new
fully paid ordinary shares for nil monetary consideration.
The issue price for the shares was $3.01 and all eligible
staff received 333 shares each. Total number of new
shares issued to staff under the Employee Share Scheme
was 130,476 shares at a value of $392k.
MATTERS SUBSEQUENT TO THE END OF THE
FINANCIAL YEAR
There were no other significant matters subsequent to the
end of the financial year.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF
OPERATIONS
Dicker Data is perfectly positioned to assist all its
customers through the journey of digital transformation.
With clear mission, strategy and execution power we
are aiming to be the best in class distributor assisting
partners and their customers with their Predictable
Business Continuity via Performing - running strong
business today, and Transforming - developing new
capabilities for the future. Predictable Business Continuity
is when you continually adapt to new tech environment,
developing new capabilities and investing in the future to
ensure continuity.
Annual Report 2018 10
Directors’ Report
Continued
Edge computing, hybrid cloud, flash storage, managed
security, wireless, IoT and Artificial Intelligence (AI) are
the growth engines of our industry. 5G Networking and
acceleration in AI capabilities will drive exponential
growth in data generation which needs to be managed
securely within growing hybrid cloud environment. We
have been in a Client-Server Distributed environment,
then moved into Mobile-Cloud Centralised environment
and now we are seeing Distributed Intelligent Edge and
AI computing.
Dicker Data is well placed to support and help our
partners and their customers with their digitalisation
journey. We have further solidified our digital strategies
which allow our customers to take pre-packaged
solutions to the vertical industries they are servicing.
Our ability to develop our digital strategies in house
allows us to stay ahead of the curve.
Further information on likely developments in the
operations of the company and the expected results
of operations have 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
10,000 Ordinary shares held by his wife
Interest in Contracts and Related Party Transactions:
Interest in contracts: Nil
Related party transactions: $434,773
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
Fiona 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
and experience in the IT distribution industry for over 40
years, of which the first 26 years was in the role of General
Manager of the business.
Interest in Equities:
52,732,386 Ordinary shares in Dicker Data Limited
1,217,095 Ordinary shares held by Fi Brown Trust N01
95,822 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 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 18 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 Advanced 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:
547,834 Ordinary shares in Dicker Data Limited
18,571 Ordinary shares held by his wife
Interest in Contracts:
Nil
Special Responsibilities:
Responsible for the sales, vendor alliances and operations
of the consolidated entity.
Member of the Audit Committee.
Dicker Data Limited 11
Directors’ Report
Continued
Other Current Listed Company Directorships:
None
Special Responsibilities:
Responsible for the warehouse and logistics operations.
Other Current Listed Company Directorships held
in Previous 3 Years:
None
Other Current Listed Company Directorships:
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:
29,534 Ordinary shares in Dicker Data Limited
161,029 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 and since taking on this role has overseen and
been responsible for expansion of the company’s logistic
capabilities. 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 Ordinary shares in Dicker Data Limited
Interest in Contracts:
Nil
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 6th 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 6th August 2015.
Interest in Equities:
30,000 Ordinary 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
Erin McMullen was appointed to the position of Company
Secretary on 6th November 2018. Erin has over 8 years’
experience in company secretarial roles for various
publicly listed and unlisted entities. Prior to this Erin worked
in Executive Support and Managerial roles across a
number of sectors.
Annual Report 2018 12
Directors’ Report
Continued
DIRECTOR MEETINGS
The number 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
Number
Eligible to
Attend
Number
Attended
8
8
8
8
8
8
8
8
8
8
8
8
No audit committee meetings were held during the year.
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
(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. Refer to individual
service agreements for a detailed explanation of
the performance conditions. There are no long term
incentive plans in place.
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.
Non-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 is also a major shareholder.
(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.
Dicker Data Limited 13
Directors’ Report
Continued
Details of Remuneration for Directors and Key Management Personnel
Short-
Term
Cash
Salary &
Fees
Short-term
Incentive
Cash
Bonus*
FY
Short-
Term
Long-
Term
Share Based
Payments
Super-
annuation
Non-
Cash
Annual
Leave
Long
Service Shares Options
Total
FBT
Reportable
Leave
Leave
% of
Value of
remuner-
ation that
consists
of share
Based
Payments
Proportion of
remuneration
that is
performance
based
$
$
$
$
$
$
$
$
$
$
%
Executive Directors
David Dicker - Chief Executive Officer
December
2018
December
2017
–
–
–
–
–
–
–
–
–
–
–
–
Vladimir Mitnovetski - Chief Operating Officer
December
2018
December
2017
–
1,864,201
177,099
–
-2,308
9,155
–
1,606,816
152,648
–
43,855 10,000
Mary Stojcevski - Chief Financial Officer
December
2018
December
2017
200,000
699,075
85,412
200,000
602,556
76,243
Michael Demetre - Logistics Director
December
2018
December
2017
225,000
466,049
65,650
225,000
401,704
59,537
Ian Welch - Chief Information Officer
December
2018
December
2017
250,000
466,049
68,025
250,000
401,704
61,912
–
–
–
–
–
–
7,091
6,370
8,462
333
5,382
3,791
4,760
3,749
10,787 23,538
11,058
–
* 100% of short-term incentive cash bonuses have vested
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
0.00%
0.00%
– 2,048,147
100.00%
0.00%
–
1,813,318
100.00%
0.00%
–
–
–
–
–
–
997,949
76.71%
0.00%
887,593
74.34%
0.00%
765,872
66.63%
0.00%
694,750
63.31%
0.00%
818,399
62.36%
0.00%
724,674
60.70%
0.00%
Annual Report 2018 14
Directors’ Report
Continued
Short-
Term
Cash
Salary &
Fees
Short-term
Incentive
Cash
Bonus*
FY
Short-
Term
Long-
Term
Share Based
Payments
Super-
annuation
Non-
Cash
Annual
Leave
Long
Service Shares Options
Total
FBT
Reportable
Leave
Leave
% of
Value of
remuner-
ation that
consists
of share
Based
Payments
Proportion of
remuneration
that is
performance
based
$
$
$
$
$
$
$
$
$
$
%
Non-Executive Directors
Fiona Brown
December
2018
December
2017
50,228
33,486
Wendy O’Keeffe
–
22,414
December
2018
December
2017
TOTAL
December
2018
December
2017
–
–
–
–
4,772
3,181
–
2,129
–
–
–
–
–
–
–
–
[Commenced 26.4.17, Resigned 12.10.17]
–
–
–
–
–
–
–
–
–
–
55,000
36,667
–
24,543
– 4,685,369
– 4,181,544
–
–
–
–
–
–
0.00%
0.00%
–
0.00%
–
–
–
–
–
–
725,228 3,495,376 400,957
–
20,952 42,855
730,899 3,012,780 355,650
–
68,133 14,082
(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 a performance based salary of the higher amount of either: (i) $50,000
per month; or (ii) 4% of Net Profit in the quarter. Profit bonus is subject to the company achieving a net profit margin of
2.5% in a calendar quarter. Superannuation is uncapped and payable on total of base and performance payments at
9.5%. The ESA also contains a number of post-termination restraints.
Dicker Data Limited 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.
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.
As the net profit margin percentage was achieved each
director received 100% of the performance bonus they
were entitled to.
(d) Share-based compensation
No shares, rights, or options were granted to directors
or key management personnel during the year ended
31 December 2018, no rights or options vested or lapsed
during the year, and no rights or options were exercised
during the year by directors.
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.
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 2015. 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
(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 15% during the year and excluding one off costs
grew 47.8% on average over the last 4 years. As a large
proportion of the executive’s remuneration package is
based on net operating profit outcomes the average
executive remuneration also increased. Since 2014, the net
profit before tax has grown at an average rate of 47.8%
per annum, whilst the average executive remuneration
has increased by an average of 9.9% per annum.
Shareholder wealth has increased at an average rate
of 11.3% per annum over this period. For the financial year
earning per share increased by 20.2% whilst dividends
paid to shareholders increased by 10.0%.
Voting and comments made at the company’s 2017
Annual General Meeting (AGM)
At the 2018 AGM, 99.01% of the votes received supported
the adoption of the remuneration report for the financial
year ended 31 December 2017. The company did not
receive any specific feedback at the AGM regarding its
remuneration practices.
Annual Report 2018 16
Directors’ Report
Continued
(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 2018
Ordinary Shares
David Dicker
Fiona Brown
Vladimir Mitnovetski
Mary Stojcevski
Michael Demetre
Ian Welch
December 2017
Ordinary Shares
David Dicker
Fiona Brown
Vladimir Mitnovetski
Mary Stojcevski
Michael Demetre
Ian Welch
Balance at the
start of the year
Additions
Disposals
Balance at the
end of the year
60,563,495
54,022,076
171,118
169,779
18,571
30,000
–
23,227
395,287
20,784
–
–
114,975,039
439,298
–
–
–
–
–
–
–
60,563,495
54,045,303
566,405
190,563
18,571
30,000
115,414,337
Balance at the
start of the year
Additions
Disposals
Balance at the
end of the year
60,553,495
54,002,278
99,451
151,808
18,571
30,000
10,000
19,798
71,667
17,971
–
–
–
–
–
–
–
–
–
60,563,495
54,022,076
171,118
169,779
18,571
30,000
114,975,039
This concludes the remuneration report which has been audited.
114,855,603
119,436
Dicker Data Limited 17
Directors’ Report
Continued
TRANSACTIONS WITH RELATED PARTIES
There are no transactions with related parties made
during the year.
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.
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.
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.
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.
ROUNDING OF AMOUNTS
The company is of a kind referred to in ASIC Corporations
(Rounding in Financial / Directors’ Report) Instrument
2016/191, 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.
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.
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 52.
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, 28 February 2019
Annual Report 2018 18
Statement of Profit or Loss and
Other Comprehensive Income
For the year ended 31 December 2018
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
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 year
Total comprehensive income attributable to members of the company
Earnings per share
Basic earnings per share
Diluted earnings per share
Consolidated
Note
31-Dec-18
$’000
31-Dec-17
$’000
1,490,691
1,304,153
96
491
131
–
2,283
1,688
4
1,493,561
1,305,972
5
5
16,924
(18,460)
(1,375,240)
(1,167,894)
(66,956)
(58,958)
(2,591)
(2,564)
(5,648)
(5,452)
(1,158)
(606)
(12,677)
(11,868)
(1,447,346)
(1,265,802)
46,215
40,170
6
(13,748)
(13,228)
32,467
26,942
32,467
26,942
392
(574)
32,859
26,368
32,859
26,368
Cents
Cents
20.22
20.22
16.82
16.82
31
31
The statement of profit or loss and other comprehensive income is to be read in conjunction with the attached notes.
Dicker Data Limited
19
Statement of Financial Position
As at 31 December 2018
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventories
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
Consolidated
Note
31-Dec-18
$’000
31-Dec-17
$’000
10
11
12
13
14
8
15
16
7
17
16
9
17
18
19
6,613
9,394
238,741
206,993
105,489
88,565
350,843
304,952
46,765
45,895
27,709
3,682
78,156
29,129
4,320
79,344
428,999
384,296
222,983
198,887
70,000
55,000
1,685
8,448
2,138
7,881
303,116
263,906
39,645
39,360
4,407
1,869
4,846
1,301
45,921
45,507
349,037
309,413
79,962
74,883
57,982
56,868
527
21,453
79,962
135
17,880
74,883
The statement of financial position is to be read in conjunction with the attached notes.
Annual Report 2018
20
Statement of Changes in Equity
For the year ended 31 December 2018
Consolidated
Note
Balance at 1 January 2017
Profit after income tax for the year
Other comprehensive income for year net of tax
Transfer between reserves
Total comprehensive income for the year
Transactions with the owners in their capacity
as owners:
Issued
Capital
$’000
56,046
–
–
–
–
Retained
Profits
$’000
17,248
26,942
–
(45)
Reserves
$’000
664
–
(574)
45
Total
Equity
$’000
73,958
26,942
(574)
–
26,897
(529)
26,368
Share issue (DRP)
Dividends paid
18
20
822
–
–
(26,265)
–
–
822
(26,265)
Balance at 31 December 2017
56,868
17,880
135
74,883
Balance at 1 January 2018
56,868
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 - Employee Share Scheme (ESS)
Dividends paid
18
18
20
–
–
–
722
392
–
17,880
32,467
–
32,467
–
–
(28,894)
135
–
392
392
–
–
–
74,883
32,467
392
32,859
722
392
(28,894)
Balance at 31 December 2018
57,982
21,453
527
79,962
The statement of changes in equity is to be read in conjunction with the attached notes.
Dicker Data Limited
21
Statement of Cash Flows
For the year ended 31 December 2018
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
Note
31-Dec-18
$’000
31-Dec-17
$’000
1,613,383
1,392,768
(1,581,801)
(1,325,173)
96
131
(5,648)
(5,452)
(14,002)
(21,539)
NET CASH FROM OPERATING ACTIVITIES
29
12,028
40,735
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant and equipment
Payments for intangibles
NET CASH USED IN INVESTING ACTIVITIES
CASH FLOWS FROM FINANCING ACTIVITIES
Drawdown / (Repayments of borrowings)
Payment of dividends
NET CASH USED IN FINANCING ACTIVITIES
NET CASH FLOWS
Cash and cash equivalents at the beginning of the period
CASH AND CASH EQUIVALENTS AT THE END OF PERIOD
10
The statement of cash flows is to be read in conjunction with the attached notes.
(2,019)
(3,260)
(10)
(97)
(2,029)
(3,357)
15,000
(20,000)
(27,780)
(25,443)
(12,780)
(45,443)
(2,781)
(8,065)
9,394
6,613
17,459
9,394
Annual Report 2018
22
Notes to the Financial Statements
For the year ended 31 December 2018
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.
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.
New Accounting Standards and Interpretations
adopted
AASB15 Revenue from contracts with customers
AASB15 has been adopted in the preparation of these
financial statements. 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.
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.
The company sells hardware, software (including
software licensing) and services. The performance
promise that is the responsibility of the company is to
procure and supply or provide access to the products
and services. The company bears the inventory and
credit risk and has pricing control for the products and
services supplied. A detailed quantitative and qualitative
analysis was undertaken to identify the contracts with
customers and all the categories of revenue from the
company’s various revenue streams. In some limited
contractual agreements the company acts as an agent.
In such circumstances the revenue is recognised on a
net basis, which is consistent with the recognition from
previous financial years. Based on this analysis it was
determined that there was no change to the basis of
how revenue is to be recognised from previous years.
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 2018 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 has
adopted this standard and the amendments from
1 January 2018 but the impact of its adoption is not
significant and there was no material change.
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 2018, 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.
Dicker Data Limited 23
Notes to the Financial Statements
Continued
1.
SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
AASB 16: Leases (applicable to annual reporting
periods beginning on or after 1 January 2019).
When effective, this Standard will replace the current
accounting requirements applicable to leases in AASB
117: Leases and related Interpretations. AASB 16 introduces
a single lessee accounting model that eliminates the
requirement for leases to be classified as operating or
finance leases.
The main changes introduced by the new Standard
include:
– recognition of a right-to-use asset and liability for all
leases (excluding short-term leases with less than
12 months of tenure and leases relating to low-value
assets);
– depreciation of right-to-use assets in line with AASB
116: Property, Plant and Equipment in profit or loss
and unwinding of the liability in principal and interest
components;
– variable lease payments that depend on an index
or a rate are included in the initial measurement
of the lease liability using the index or rate at the
commencement date;
– by applying a practical expedient, a lessee is
permitted to elect not to separate non-lease
components and instead account for all components
as a lease; and
– additional disclosure requirements.
The transitional provisions of AASB 16 allow a lessee
to either retrospectively apply the Standard to
comparatives in line with AASB 108 or recognise the
cumulative effect of retrospective application as an
adjustment to opening equity on the date of initial
application.
Although the directors anticipate the adoption of AASB16
will impact the financial statements, the group has not
quantified the effect of this as yet.
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
2018 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.
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.
Annual Report 2018 24
Notes to the Financial Statements
Continued
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, or payable to, 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.
Rounding of Amounts
The company is of a kind referred to in ASIC Corporations
(Rounding in Financial / Directors’ Reports) Instrument
2016/191, 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.
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.
1.
SIGNIFICANT ACCOUNTING POLICIES
(CONTINUED)
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.
Dicker Data Limited 25
Notes to the Financial Statements
Continued
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 range being sale of IT goods and services. 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 Locations
The group has operations in both Australia and New Zealand which represent the two geographic locations it operates from.
Intersegment Transactions
During the year there was no dividend paid from Dicker Data NZ Ltd to Express Data Holdings Pty Ltd (2017: $3,228,688).
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. No single customer represents more than 10% of the revenue.
Operating Segment Information
Consolidated - December 2018
Revenue
Australia
$’000
New Zealand
$’000
Eliminations/
Unallocated
$’000
TOTAL
$’000
Sale of goods and services*
1,407,098
83,593
Other revenue:
Recoveries
Other revenue
Interest revenue
Total revenue
EBITDA
Depreciation & amortisation
Interest revenue
Finance 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
491
2,176
51
–
107
45
1,409,816
83,745
53,660
(2,472)
51
(5,648)
45,591
(13,632)
31,960
331,849
77,338
409,187
292,741
45,921
698
(119)
45
–
624
(116)
507
19,205
818
20,023
10,581
–
–
–
–
–
–
–
–
–
–
–
–
–
1,490,691
491
2,283
96
1,493,561
54,358
(2,591)
96
(5,648)
46,215
(13,748)
32,467
(211)
–
350,843
78,156
(211)
428,999
(207)
303,116
–
45,921
* Revenue by product type and geographic location is disclosed in Note 4
338,662
10,581
(207)
349,037
Annual Report 2018 26
Notes to the Financial Statements
Continued
3. OPERATING SEGMENTS (CONTINUED)
Operating Segment Information
Consolidated - December 2017
Revenue
Australia
$’000
New Zealand
$’000
Eliminations/
Unallocated
$’000
TOTAL
$’000
Sale of goods and services*
1,173,481
130,672
–
1,304,153
Other revenue:
Other revenue
Interest revenue
Total revenue
EBITDA
Depreciation & Amortisation
Interest revenue
Finance 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
4,077
53
840
78
(3,229)
–
1,688
131
1,177,611
131,590
(3,229)
1,305,972
47,721
3,563
(3,229)
48,055
(2,445)
53
(5,452)
39,877
(12,134)
27,743
(118)
78
–
3,522
(1,094)
2,428
–
–
–
(2,564)
131
(5,452)
(3,229)
40,170
–
(13,228)
(3,229)
26,942
285,480
19,500
(28)
304,952
78,612
732
364,091
20,233
252,240
45,507
297,747
11,694
–
11,694
–
(28)
(28)
–
(28)
79,344
384,296
263,906
45,507
309,413
* Revenue by product type and geographic location is disclosed in Note 4
Dicker Data Limited 27
Notes to the Financial Statements
Continued
4. REVENUE
Sales from contracts with customers
The company sells hardware, software (including software licensing), warranties, logistics and configuration services.
The performance promise that is the responsibility of the company is to procure and supply or provide access to
these products and services and revenue is recognised at the point of sale. Whilst each revenue stream represents a
performance obligation, the performance obligation that is created is to deliver these goods and services hence the
entity has determined point of sale as the most relevant way to recognise revenue per performance obligation. The
company bears the inventory and credit risk and has pricing control for the products and services supplied. Amounts
disclosed as revenue are net of sales returns and any customer rebates. Returns and customer rebates represent a
variable consideration but do not represent a judgement by management, therefore there is no constraint on the
amount of revenue recognised. In some limited contractual agreements, the company acts as an agent. In such
circumstances the revenue is recognised on a net basis.
Disaggregation of revenue
The group has disaggregated the revenue from customer contracts into various categories in the following table which
is intended to:
– depict how the nature, amount, timing and uncertainty of revenue and cash flows are affected by economic data;
and
– enable users to understand the relationship with revenue segment information provided in Note 3
For hardware products the performance obligation is satisfied when the products are delivered. For software,
subscription and virtual products the performance obligation is satisfied when access is facilitated. For 3rd party
warranties the performance obligations is satisfied when the hardware is allocated to a warranty. Services revenue
is recognised when the service is performed.
Year to 31 December 2018
Product Type
Description
Infrastructure
Hardware
products
Virtual Services
Software
Dicker Data Services
Partner Services
Sales of 3rd party
warranties and
services
Perpetual and
subscription
licensing
including cloud
products
3rd party
logistics and
configuration
services
Agent
commission
Revenue
recognition
(PIT/OT)
Agent/
Principal
AU
$’000
NZ
$’000
Consolidated
Point in time
Principal
1,040,884
28,703
1,069,587
Point in time
Principal
101,878
1,710
103,588
Point in time
Principal
256,672
53,167
309,839
Point in time
Principal
4,300
13
4,313
Point in time
Agent
3,364
–
3,364
1,407,098
83,593
1,490,691
Annual Report 2018 28
Notes to the Financial Statements
Continued
4. REVENUE (CONTINUED)
Year to 31 December 2017
Product Type
Description
Infrastructure
Hardware
products
Sales of 3rd party
warranties and
services
Perpetual and
subscription
licensing
including cloud
products
3rd party
logistics and
configuration
services
Agent
commission
Virtual Services
Software
Dicker Data Services
Partner Services
Other Revenue
Revenue
recognition
(PIT/OT)
Agent/
Principal
AU
$’000
NZ
$’000
Consolidated
Point in time
Principal
884,764
59,469
944,233
Point in time
Principal
83,749
9,168
92,917
Point in time
Principal
199,325
61,938
261,263
Point in time
Principal
2,799
97
2,896
Point in time
Agent
2,844
–
2,844
1,173,481
130,672
1,304,153
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.
Other Revenue
Other revenue is recognised when it is received or when the right to receive payment is established.
Sales from contracts with customers:
Sale of goods and services
Other revenue:
Interest
Recoveries
Other revenue
Total Revenue
Consolidated
Note
Dec-18
$’000
Dec-17
$’000
1,490,691
1,304,153
96
491
131
0
2,283
1,688
1,493,561
1,305,972
Dicker Data Limited 29
Notes to the Financial Statements
Continued
5. EXPENSES
Cost of Sales
Cost of goods sold 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. Estimate of rebates is
based on information provided by our suppliers on our tracking to targets and on management’s judgement based on
historical achievements.
Depreciation and Amortisation
Depreciation is calculated on a straight line 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.
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.
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 paid / payable
Superannuation Expense
Defined contribution superannuation expense
Operating Leases
Property rental expense
Equipment rental expense
Consolidated
Dec-18
$’000
Dec-17
$’000
465
693
1,158
22
33
1,378
1,433
2,591
466
641
1,107
26
52
1,379
1,457
2,564
5,648
5,452
4,623
4,303
804
16
820
806
16
822
Annual Report 2018 30
Notes to the Financial Statements
Continued
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.
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.
Dicker Data Limited 31
Notes to the Financial Statements
Continued
6. INCOME TAX (CONTINUED)
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
Over/(Under) provision 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
Increase (Decrease) in deferred tax liabilities
Deferred tax included in statement of changes in equity
Consolidated
Dec-18
$’000
Dec-17
$’000
14,610
13,719
(1,092)
31
13,518
13,750
199
31
230
(485)
(37)
(522)
13,748
13,228
509
(439)
129
199
(187)
(298)
–
(485)
(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%
13,864
12,051
Add tax effect of:
Over provision for income tax in prior year
Non-deductible expenses
Franking deficit tax
Deferred tax on intangibles
Less tax effect of:
Differences in overseas tax rates
Income tax expense attributable to entity
694
190
(1,008)
–
(6)
245
1,008
–
13,740
13,298
8
8
(70)
(70)
13,748
13,228
The applicable weighted average effective tax rates are as follows:
29.5%
32.9%
Tax expense includes a refund for franking deficit amount, which was provisioned and paid for in 2017 but following an
objection being successfully lodged with the Australian Taxation Office was fully remitted.
Annual Report 2018 32
Notes to the Financial Statements
Continued
7. CURRENT TAX
Current tax liability
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
Amounts recognised in equity:
Share issue costs
Deferred tax asset
Movements in Deferred Tax Asset
Opening Balance
Credited / (charged) to profit or loss
Credited / (charged) to equity
Closing Balance
9. DEFERRED TAX LIABILITIES
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
Closing Balance
Consolidated
Dec-18
$’000
Dec-17
$’000
1,685
2,138
79
2,247
91
842
141
152
130
3,682
307
2,678
29
684
185
178
259
4,320
4,320
4,135
(509)
(129)
354
(169)
3,682
4,320
176
17
1,273
2,941
4,407
4,846
(439)
–
181
15
1,296
3,354
4,846
5,144
(298)
–
4,407
4,846
Dicker Data Limited 33
Notes to the Financial Statements
Continued
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. Cash at bank
Consolidated
Dec-18
$’000
Dec-17
$’000
6,613
9,394
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. 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 mainly
includes vendor rebates receivable and are due to be paid within 3 months.
Trade receivables
Less: Provision for impairment of receivables
Other receivables
222,045
194,877
(266)
(285)
221,779
194,592
16,962
12,401
238,741
206,993
Impairment of Receivables
The incurred loss model under AASB 139 is replaced by the expected credit loss model under AASB 9. The group has
adopted a simplified approach for trade receivables with an amount equal to the full expected credit losses to be
recognized.
The expected loss rates are based on the Group’s movement of balances from one ageing category to the next to
indicate increase in collection time which is an indicator of the probability of default. The value of debtors insurance is
then applied to these balances to indicate the exposure at default. These loss rates are then applied to the individual
ageing categories to calculate an expected credit loss.
The entity has used their ability to apply the effects of debtor’s insurance as a suitable collateral to reduce the
exposure of default. This has resulted in a immaterial change to the provision currently recorded by the entity.
As at 31 December 2018 the consolidated entity has recognised a decrease in the provision of $18,388 (2017: $47,870
increase) in profit or loss in respect of impairment of receivables for the year ended 31 December 2018.
Annual Report 2018 34
Notes to the Financial Statements
Continued
12. INVENTORIES
Finished goods are stated at the lower of cost or 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 (plus any applicable supplier claims as per revenue recognition
policy) in the ordinary course of business less the estimated costs of completion and the estimated costs necessary
to make the sale.
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
Consolidated
Dec-18
$’000
Dec-17
$’000
107,000
90,034
(1,511)
(1,469)
105,489
88,565
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 plant and equipment and property improvements is carried at cost less, where
applicable, any accumulated depreciation and impairment losses.
Depreciation is calculated on a straight-line 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
Plant and equipment under lease
Motor vehicles
–
–
–
–
–
–
40 Years
10 - 20 Years
10 - 20 Years
2 - 10 Years
2 - 10 Years
8 years
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.
Dicker Data Limited 35
Notes to the Financial Statements
Continued
13. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
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.
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
Consolidated
Dec-18
$’000
25,339
22,030
(2,956)
19,074
44,413
3,515
(2,341)
1,174
3,227
(2,064)
1,163
252
(237)
15
Dec-17
$’000
25,339
21,192
(2,491)
18,701
44,040
3,046
(1,948)
1,098
2,606
(1,869)
737
252
(232)
20
2,352
46,765
1,856
45,895
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
Balance at 1 January 2017
25,338
Additions
Depreciation expense
Disposals
Effect of movements in exchange
rate
1
–
–
–
16,673
2,599
(466)
(105)
–
1,270
112
(281)
–
(2)
Balance at 31 December 2017
25,339
18,701
1,098
Additions
Depreciation expense
Disposals
Effect of movements in exchange
rate
–
–
–
–
838
(465)
–
–
345
(271)
–
2
Balance at 31 December 2018
25,339
19,074
1,174
565
548
(353)
(18)
(5)
737
836
(417)
(6)
13
1,163
27
–
(7)
–
–
20
–
(5)
–
–
15
Total
$’000
43,872
3,260
(1,107)
(123)
(7)
45,895
2,019
(1,158)
(6)
15
46,765
Annual Report 2018 36
Notes to the Financial Statements
Continued
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.
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-18
$’000
Dec-17
$’000
17,799
17,657
17,799
17,657
(7,854)
(6,477)
149
(88)
258
(212)
134
(53)
258
(191)
27,709
29,129
Dicker Data Limited Notes to the Financial Statements
Continued
14. INTANGIBLES (CONTINUED)
Goodwill
$’000
Customer
Contracts
$’000
Software
$’000
Development
(Website)
$’000
Balance at 1 January 2017
17,799
12,560
Additions
Amortisation expense
Effect of movements in exchange rate
–
–
–
Balance at 31 December 2017
17,799
Additions
Amortisation expense
Effect of movements in exchange rate
–
–
–
–
(1,379)
–
11,181
–
(1,378)
–
Balance at 31 December 2018
17,799
9,803
40
97
(52)
(4)
81
10
(33)
3
61
37
Total
$’000
30,493
97
(1,457)
(4)
29,129
10
94
–
(26)
–
68
–
(22)
(1,433)
–
46
3
27,709
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. 10.89% (2017: 11.0%) post-tax discount rate;
b. 6.5% for the Australian CGU and 415% for the New Zealand CGU (in 2018 the New Zealand CGU had a low base and new
exclusive rights mean that revenue lost from prior years will be replaced) in year 1 and 2.5% thereafter (2017: 2.5%) per
annum EBITDA growth rate
The discount rate of 10.89% 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 EBITDA growth rate is reasonable based on forecasted organic and
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 key assumptions, other than a major downturn in the EBITDA
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 64% to trigger impairment for the Australian CGU, and 53% for the New Zealand CGU, with all other assumptions,
other than a major downturn in EBITDA, remaining constant; (b) The discount rate would be required to increase to
32.2% to trigger impairment for the Australian CGU, and 21.1% for the New Zealand CGU, with all other assumptions
remaining constant.
Annual Report 2018 38
Notes to the Financial Statements
Continued
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
Consolidated
Dec-18
$’000
Dec-17
$’000
212,333
188,002
10,650
10,885
222,983
198,887
The consolidated entity had entered into a bailment facility with Wells Fargo (previously GE Capital) for the purchase of
Dell and APC products up to a limit of $53.6m. Included in trade payables is an amount of $28.9m (2017: $16.2m) payable
to Wells Fargo under this arrangement. Under this arrangement Wells Fargo had legal title and first priority over its
bailed goods and proceeds. The bailment facility was supported by a Westpac Bank Guarantee of $3m in favour of
Wells Fargo. This facility was terminated at the end of the financial year and the Bank Guarantee released in January
2019. The nature of the bailment facility was such that the arrangement is treated as a trade payable.
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
Non-Current
Corporate Bond
Total current and non-current borrowings
(a) Total current and non-current secured liabilities:
Receivables Facility
(b) The receivables facility is secured by a fixed charge over all debtors.
The corporate bond is an unsecured facility.
70,000
55,000
39,645
109,645
39,360
94,360
70,000
55,000
(c) Receivables Facility limit
130,000
120,000
The drawn amount of these facilities as at the report date is as per Note 16 above.
Receivables Facility
The Westpac receivables facility was renewed on 12 March 2018 for a period of 3 years with an increased limit of
$130,000 million. The receivables facility also supports a Standby Letter of Credit for $10m issued to Cisco and $3m bank
guarantee issued in favour of Wells Fargo. The $3m bank guarantee to Wells Fargo was released in January 2019.
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 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.
Dicker Data Limited 39
Notes to the Financial Statements
Continued
16. BORROWINGS (CONTINUED)
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. Management is currently considering refinance options for the corporate bond which is due to be repaid in
March 2020.
17. 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.
Current
Employee benefits
Lease make-good provision
Non Current
Employee benefits
Employee Benefits
Consolidated
Dec-18
$’000
Dec-17
$’000
8,249
199
8,448
7,705
176
7,881
1,869
1,301
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.
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.
Annual Report 2018 40
Notes to the Financial Statements
Continued
17. PROVISIONS (CONTINUED)
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
Consolidated
Dec-18
$’000
Dec-17
$’000
2,230
2,595
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.
18. ISSUED CAPITAL
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of
tax, from the proceeds.
Dec 2018
Shares
Dec 2018
$’000
Dec 2017
Shares
Dec 2017
$’000
Ordinary shares - fully paid
160,714,369
57,982
160,337,241
56,868
Movements in Ordinary Share Capital
Details
Opening Balance
Issue of shares DRP
Issue of shares DRP
Issue of shares DRP
Issue of shares DRP
Balance
Issue of shares DRP
Issue of shares DRP
Issue of shares DRP
Issue of shares DRP
Balance
Date
Issue Price
No of Share
$’000
1-Jan-17
–
160,005,955
56,046
20-Mar-17
$2.40
105,153
9-Jun-17
$2.41
114,499
1-Sep-17
$2.57
58,311
01-Dec-17
31-Dec-17
$2.70
53,323
–
160,337,241
56,868
2-Mar-18
$2.85
63,926
1-Jun-18
$2.92
56,780
3-Sep-18
$3.07
56,344
3-Dec-18
$2.86
69,602
31-Dec-18
–
160,714,369
57,982
252
276
150
144
183
392
167
173
199
Issue of shares - Employee Share Scheme (ESS)
28-Mar-18
$3.01
130,476
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.
Dicker Data Limited 41
Notes to the Financial Statements
Continued
18. ISSUED CAPITAL (CONTINUED)
Employee Share Scheme
In celebration of the Company’s 40 year anniversary and in recognition of all the work and contribution by our
employees, in March 2018 the company announced an issue of free shares to all eligible employees. Under the share
plan staff were offered $1,000 worth of new fully paid ordinary shares for nil monetary consideration. The issue price for
the shares was $3.01 and all eligible staff received 333 shares each. Total number of new shares issued to staff under
the Employee Share Scheme was 130,476 shares at a value of $392k.
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 2018, the Company raised $720,826 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 other
investments were seen as value adding relative to the current company’s share price at the time of the investment.
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 2017 Annual Report.
19. RESERVES
Capital profits reserve (Pre-CGT)
Foreign currency reserve
Consolidated
Dec-18
$’000
Dec-17
$’000
369
157
526
369
(234)
135
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
135
392
527
664
(529)
135
Annual Report 2018 42
Notes to the Financial Statements
Continued
20. DIVIDENDS
Dividends declared or paid during the financial year
Dec-18
$’000
Dec-17
$’000
28,894
26,265
Type
Final
Interim
Interim
Interim
FY
2017
2018
2-Mar-18
1-Jun-18
2018
3-Sep-18
2018
3-Dec-18
Payment
Date
Dividend
per share
(cents)
Amount
(in 000's)
FY
Payment
Date
Dividend
per share
(cents)
Amount
(in 000's)
0.048
0.044
0.044
0.044
7,696
7,064
7,066
7,068
0.180
28,894
2016
20-Mar-17
2017
9-Jun-17
2017
1-Sep-17
2017
1-Dec-17
0.044
0.040
0.040
0.040
0.164
7,040
6,404
6,409
6,412
26,265
The tax rate that dividends have been franked is 30% (2017: 30%)
Franking credit balance:
Franking credits available for subsequent financial years based on a tax rate of 30%
(2017: 30%)
9,534
8,348
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
21. 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;
Dicker Data Limited 43
Notes to the Financial Statements
Continued
21. FAIR VALUE DISCLOSURES (CONTINUED)
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.
The carrying value of borrowings classified as financial liabilities measured at amortised cost approximates fair value.
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.
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.
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.
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.
Financial Assets and Liabilities
Financial Assets
Cash and cash equivalents
Trade and other receivables
Total Financial Assets
Financial Liabilities
Trade and other payables
Borrowings
Total Financial Liabilities
Consolidated
Dec-18
$’000
Dec-17
$’000
6,613
9,394
238,741
206,993
245,354
216,387
222,983
198,887
109,645
94,360
332,628
293,247
Annual Report 2018 44
Notes to the Financial Statements
Continued
22. FINANCIAL INSTRUMENTS (CONTINUED)
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 non-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 $200,000. 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 and criteria may only
purchase in cash or using recognised credit cards.
The company has no significant concentration of credit risk with any single counterparty or group of counterparties.
The profile of all counterparties is largely the same being reseller partners and have been grouped together in
assessing expected credit loss. Trade and other receivables that are neither past due or impaired are considered to be
of high credit quality.
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.
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.
Dicker Data Limited 45
Notes to the Financial Statements
Continued
22. FINANCIAL INSTRUMENTS (CONTINUED)
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
Within 6 Months
6 Months - 1 Year
1 - 2 Years
2 - 5 Years
Borrowings
Within 6 Months
6 Months - 1 Year
1 - 2 Years
2 - 5 Years
Total contractual outflows
Consolidated
Dec-18
$’000
Dec-17
$’000
222,983
198,887
–
–
–
–
–
–
222,983
198,887
71,367
1,367
40,282
–
113,017
336,000
56,309
1,309
41,978
610
100,206
299,093
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).
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:
Interest Rate Risk
Floating rate instruments
Receivables Facility
Corporate Bond
Dec-18
$’000
Dec-17
$’000
70,000
39,645
109,645
55,000
39,360
94,360
With a view to mitigating some of this risk, on 27 January 2016, the Company entered into a Derivative Financial
Instrument transaction with the Westpac Banking Corporation. The transaction was an Interest Rate Swap Transaction
for AUD $40million with an effective date of 29 March 2016 and a tenure of 2 years, maturing during the year 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. Due to the
current interest rate environment the Company has not entered into any new interest rate swap at the expiry of the
current facility or any other time during the year. Management will continue to monitor the interest rate environment
to determine whether entering into a new swap agreement will be prudent to do so in the future.
Annual Report 2018 46
Notes to the Financial Statements
Continued
22. FINANCIAL INSTRUMENTS (CONTINUED)
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 $767,515 lower/higher (2017: $$660,520 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.
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-18
$’000
31-Dec-17
$’000
31-Dec-18
31-Dec-17 31-Dec-18
$’000
31-Dec-17
$’000
31-Dec-18
31-Dec-17
Buy US Dollars
Maturity:
0 - 3 months
3 - 6 months
Buy Australian Dollars
Maturity:
0 - 3 months
3 - 6 months
20,582
23,090
0.7208
0.7625
1,585
1,233
0.6781
0.7073
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
240
–
437
0.9377
0.9028
–
–
–
The carrying amount of the consolidated entity’s foreign currency denominated financial assets and financial liabilities
at the reporting date was as follows:
Consolidated
Cash at bank
Trade receivables
Trade payables
Net statement of financial position exposure
Dec-18
US$’000
NZ$’000
34
3,811
(28,084)
(24,239)
1,690
11,827
(8,789)
4,728
Based on the financial instruments held at 31 December 2018, a strengthening/weakening of AU$ against US$ and NZ$
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)
NZ$ (5% movement)
Equity
Profit or Loss
Strengthening
Weakening Strengthening
Weakening
–
(450)
–
959
1,154
(25)
(1,276)
27
Dicker Data Limited
47
Notes to the Financial Statements
Continued
23. 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
Consolidated
Dec-18
$
Dec-17
$
4,241,557
3,811,812
42,855
14,082
400,957
355,650
4,685,369
4,181,544
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
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 and Corporate Services
Other services - Other BDO Network Firms
Indirect Tax Services
Tax and Corporate Services
215,000
175,000
16,000
35,000
55,000
–
308,000
245,180
363,000
245,180
323
15,775
16,098
–
29,780
29,780
25. CONTINGENT LIABILITIES
The directors are not aware of any contingent liabilities related to the Consolidated entity as at the report date.
26. COMMITMENTS
Capital Commitments
Capital expenditure commitments contracted for at reporting date but not recognised as liabilities:
Property, plant and equipment
Consolidated
Dec-18
$’000
Dec-17
$’000
–
1,681
There were no new capital commitment expenditures contracted in the current year. Contracted commitment from last
year was for the balance of the design and development application process for the building of the new distribution
centre.
Annual Report 2018 48
Notes to the Financial Statements
Continued
26. COMMITMENTS (CONTINUED)
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.
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
27. 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
Consolidated
Dec-18
$’000
Dec-17
$’000
898
2,121
3,019
989
2,564
3,553
Dec-18
$’000
Dec-17
$’000
32,869
32,869
23,558
23,558
304,729
398,497
262,789
357,067
292,360
256,648
335,536
298,801
57,982
56,868
369
4,610
369
1,028
62,961
58,266
Dicker Data Limited
49
Notes to the Financial Statements
Continued
27. PARENT ENTITY INFORMATION (CONTINUED)
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.
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 Note 1:
Name
Dicker Data New Zealand Ltd
Express Data Holdings Pty Ltd
Dicker Data Financial Services Pty Ltd
29. RECONCILIATION OF PROFIT AFTER INCOME TAX TO NET CASH
Principal place
of business/
country of
incorporation
New Zealand
Australia
Australia
Profit after income tax
Adjustments for:
Depreciation
Amortisation on intangibles
Amortisation of borrowing costs
Profit/(Loss) on the Disposals of PPE
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
Net cash from operating activities
Ownership Interest
2018
%
100%
100%
100%
2017
%
100%
100%
100%
Dec-18
$’000
Dec-17
$’000
32,467
26,942
1,158
1,430
285
(9)
(16,924)
(31,730)
638
(439)
24,097
1,508
–
(453)
12,028
1,107
1,457
288
130
18,460
(44,323)
(185)
(297)
43,737
1,248
–
(7,829)
40,735
Annual Report 2018 50
Notes to the Financial Statements
Continued
30. NON-CASH INVESTING AND FINANCING ACTIVITIES
Shares issued under dividend reinvestments plan (DRP)
31. EARNINGS PER SHARE
Dec-18
$’000
Dec-17
$’000
722
822
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
Dec-18
$’000
Dec-17
$’000
32,467
26,942
Weighted average number of shares used as denominator
Number
Number
Weighted average number of ordinary shares used as the denominator in calculating
basic earnings per share
160,543
160,178
Weighted average number of ordinary shares and options granted are used
as the denominator in calculating diluted earnings per share
Basic earnings per share (cents)
Diluted earnings per share (cents)
32. RELATED PARTY TRANSACTIONS
Parent Entity:
Dicker Data Limited is the parent entity.
Subsidiaries:
Interests in subsidiaries are set out in Note 28.
160,543
160,178
Cents
Cents
20.22
20.22
16.82
16.82
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:
There were some occasional transactions with related parties during the year. Some payment of personal expenses
were made on behalf of the director David Dicker throughout the year that were subsequently reimbursed to the value
of $474,773.
33. SUBSEQUENT EVENTS
There were no other significant matters subsequent to the end of the financial year.
Dicker Data Limited 51
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 2018 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
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, 28 February 2019
Annual Report 2018 52
Auditor’s Declaration of Independence
Tel: +61 2 9251 4100
Fax: +61 2 9240 9821
www.bdo.com.au
Level 11, 1 Margaret St
Sydney NSW 2000
Australia
DECLARATION OF INDEPENDENCE BY TIM AMAN TO THE DIRECTORS OF DICKER DATA LIMITED
As lead auditor of Dicker Data Limited for the year ended 31 December 2018, I declare that, to the
best of my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Dicker Data Limited and the entities it controlled during the period.
Tim Aman
Partner
BDO East Coast Partnership
Sydney, 28 February 2019
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.
Dicker Data Limited
53
Independent Auditor’s 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 Audit of the Financial Report
Opinion
We have audited the financial report of Dicker Data Limited (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 31 December 2018, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 31 December 2018 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (the Code) that are relevant to our audit of the
financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance
with the Code.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
given to the directors of the Company, would be in the same terms if given to the directors as at the
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial report of the current period. These matters were addressed in the context of
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
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.
Annual Report 2018
54
Independent Auditor’s Report
Continued
Carrying Value of Goodwill
Key audit matter
How the matter was addressed in our audit
Our audit procedures included, amongst others:
•
•
•
•
Evaluating and challenging the assumptions used in the
discounted cash flow analysis, in particular the key
assumptions for each CGU;
Applying a sensitivity analysis on the Group's discounted cash
flow models for each CGU to assess whether changes in the
assumptions made would result in impairment;
Assessing the historical accuracy of management's forecasts in
the context of the value in use model; and
Evaluating the adequacy of the disclosures in Note 14 about
those assumptions to which the outcomes of the impairment
test are most sensitive, that is, those that will have the most
significant effect on the determination of the recoverable
amount.
As disclosed in Note 14 to the financial
report, Goodwill amounted to
$17,799,000 at 31 December 2018.
This was determined to be a key audit
matter as the determination of the
"Value in Use" of the cash generating
unit’s (CGU) and whether or not an
impairment charge is necessary, involved
judgements by management about the
future growth rates of the business in
this CGU, discount rates applied to
future cash flow forecasts for each CGU
and sensitivities of inputs and
assumptions used in the cash flow
models. Furthermore, the goodwill
balance is material.
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 31 December 2018, but does not include
the financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group to
continue as a going concern, disclosing, as applicable, matters related to going concern and using the
going concern basis of accounting unless the directors either intend to liquidate the Group or to cease
operations, or has no realistic alternative but to do so.
Dicker Data Limited
55
Independent Auditor’s Report
Continued
Auditor’s responsibilities for the audit of the Financial Report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free
from material misstatement, whether due to fraud or error, and to issue an auditor’s report that
includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an
audit conducted in accordance with the Australian Auditing Standards will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the
Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at:
http://www.auasb.gov.au/auditors_responsibilities/ar1.pdf
This description forms part of our auditor’s report.
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 12 to 18 of the directors’ report for the
year ended 31 December 2018.
In our opinion, the Remuneration Report of Dicker Data Limited, for the year ended 31 December 2018,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO East Coast Partnership
Tim Aman
Partner
Sydney, 28 February 2019
Annual Report 2018
56
Shareholder Information
The shareholder information set out below was applicable as at 5 February 2019.
ORDINARY SHARE CAPITAL
As at 31 December 2018, the issued capital of the Company was 160,714,369 ordinary fully paid shares.
DISTRIBUTION OF EQUITY SECURITIES
Analysis of numbers of equity security holders by size of holding:
Size of Holding
100,001 and Over
10,001 to 100,000
5,001 to 10,000
1,001 to 5,000
1 to 1,000
Total
Number of
Shareholders
Number of
Shares
% of Issued
Capital
43
789
844
2,035
1,488
5,199
129,269,837
80.43
18,558,908
6,644,333
5,447,043
794,248
11.55
4.13
3.39
0.49
160,714,369
100.00
UNQUOTED OPTIONS
The Company had no unquoted options on issue as at 5 February 2019.
LESS THAN MARKETABLE PARCELS OF ORDINARY SHARES
There were 100 holders of less than a marketable parcel of ordinary shares. The number of shares in aggregate of these
unmarketable parcels is 1,353.
Dicker Data Limited Shareholder Information
Continued
TWENTY LARGEST HOLDERS OF QUOTED EQUITY SECURITIES
MR DAVID JOHN DICKER
MS FIONA TUDOR BROWN
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD
FIONA BROWN
CITICORP NOMINEES PTY LIMITED
BNP PARIBAS NOMS PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
AUST EXECUTOR TRUSTEES LTD
NATIONAL NOMINEES LIMITED
MR VLADIMIR MITNOVETSKI
BAINPRO NOMINEES PTY LIMITED
BNP PARIBAS NOMINEES PTY LTD
MRS LEONA REDDALL & MR BENJAMIN REDDALL & MR MATTHEW REDDALL
DIALES PTY LIMITED
GWYNVILL TRADING PTY LTD
AUST EXECUTOR TRUSTEES LTD
AUSTRALIAN EXECUTOR TRUSTEES LIMITED
MARTRE PROPERTIES PTY LIMITED
MR TIMOTHY BRYCE KLEEMANN
TOTALS
57
Number of fully
paid Ordinary
Shares
% of Issued
Capital
60,553,495
37.68%
52,701,347
32.79%
2,750,525
1,433,513
1,217,095
1,087,550
974,594
933,408
926,021
884,146
547,834
293,168
269,170
241,585
230,000
228,627
221,121
213,380
200,000
192,723
1.71%
0.89%
0.76%
0.68%
0.61%
0.58%
0.58%
0.55%
0.34%
0.18%
0.17%
0.15%
0.14%
0.14%
0.14%
0.13%
0.12%
0.12%
126,099,302
78.46%
SUBSTANTIAL HOLDERS
The names of the Substantial Shareholders listed in the Company’s Register as at 9 February 2018:
Shareholder
MR DAVID JOHN DICKER
MS FIONA TUDOR BROWN
Number of Fully
Paid Ordinary
Shares
% of Issued
Capital
60,553,495
54,045,303
37.68%
33.63%
VOTING RIGHTS
In accordance with the Constitution each member present at a meeting whether in person, or by proxy, or by power of
attorney, or in a duly authorised representative in the case of a corporate member, shall have one vote on a show of
hands, and one vote for each fully paid ordinary share, on a poll.
ON-MARKET BUY-BACKS
There is no current on-market buy-back in relation to the Company’s securities.
Annual Report 2018
230 Captain Cook Drive
Kurnell NSW 2231
T. 1800 688 586
F. 1800 688 486
www.dickerdata.com.au
ABN: 95 000 969 362