EXPERIENCE
is the difference
PH: 1800 688 586
www.dickerdata.com.au
investors@dickerdata.com.au
ASX ANNOUNCEMENT
25 February 2021
ANNUAL REPORT
Dicker Data Limited (Dicker Data) (ASX:DDR) is pleased to release its Annual Report for the year ended 31 December
2020.
Authorised for release by the Board of Dicker Data Limited.
David Dicker
Chairman and CEO
For further information please contact:
Investor Relations
1800 688 586
investors@dickerdata.com.au
https://www.dickerdata.com.au/investor
About Dicker Data
Dicker Data (ASX: DDR) is an Australian-owned and operated, ASX-listed technology hardware, software, and cloud
distributor with over 42 years of experience. Our sales and presales teams are experienced product specialists who are
dedicated to helping you tailor solutions to suit your client’s needs.
As a distributor, we sell exclusively to our valued partner base of over 6,000 resellers. We pride ourselves on developing
strong long-term relationships with our customers, and helping them grow. This customer-first approach means we are
proactive in engaging with our resellers and allows us to dynamically shift with changing market conditions, in turn
helping to increase profitability.
Dicker Data distributes a wide portfolio of products from the world’s leading technology vendors,
including Cisco, Citrix, Dell Technologies, Hewlett Packard Enterprise, HP, Lenovo, Microsoft, and other Tier 1 global
brands. As the leading Australian distributor for many of these vendors, Dicker Data is dedicated to helping our
partners deliver industry-leading solutions built on the world’s best technologies. https://www.dickerdata.com.au/
EXPERIENCE
is the difference
PH: 1800 688 586
www.dickerdata.com.au
investors@dickerdata.com.au
ANNUAL
REPORT
Dicker Data Limited ABN 95 000 969 362
0
2
0
2
We listed DDR at 20 cents per
share, on 24 January 2011,
with a market cap of $25m.
Ten years later our shares are
trading around $12 and we
have a market cap of $2b.
DAVID DICKER
CEO and Chairman
Dicker Data is an Australian
owned and Operated, ASX listed
distributor of computer hardware,
software and related products
with over 42 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 6,900 active registered reseller
partners annually, Dicker Data finished the FY20 year with revenues
of $2.0bn. Since listing on the ASX in January 2011, Dicker Data
has delivered consistently profitable results for shareholders whilst
maintaining a 100% dividend payout policy.
2
TABLE OF CONTENTS
4
5
6
7
7
8
10
11
12
13
14
31
32
33
34
35
39
69
70
71
74
Our ANZ Vendor Portfolio
CEO Commentary
Board of Directors & Senior Management
Results Highlights
Results Summary
Who we are
2020 in Review
2021 and Beyond
New Building Update
Corporate Social Responsibility
Directors’ Report
Statement of profit or loss and other comprehensive income
Statement of financial position
Statement of changes in equity
Statement of cash flows
Notes to the financial statements
Operating Segment Information
Directors’ Declaration
Auditor’s Declaration Of Independence
Independent Auditor’s Report
Shareholder Information
3
OUR ANZ VENDOR PORTFOLIO
4
DAVID DICKER
CEO and Chairman
CEO COMMENTARY
Again, we have had a record year compared to the previous one and the one before that,
etc, etc. However last year was a significant result, not so much because we excelled, but
because we achieved that excellence under very difficult conditions. This is all the more
impressive and I really thank everyone. We have a tremendous group of people.
We have also finished our new facility and from what I have been told and seen from
pictures, it looks fantastic. I’m hoping that travel sanity will return soon and I can end my
exile in NZ and see it for myself.
One event that did happen and can never be repeated is our tenth anniversary as a
public company. This date also marked the 100th anniversary of my Father’s birthday. I
sometimes wonder what he might think of it all.
We listed DDR at 20 cents per share, on 24 January 2011, with a market cap of $25m.
Ten years later our shares are trading around $12 and we have a market cap of $2b.
An original shareholder’s stake of 10,000 shares at $2,000 would now be worth around
$120,000. A very satisfying outcome.
5
BOARD OF DIRECTORS
& SENIOR MANAGEMENT
DAVID
DICKER
Chairman and
Chief Executive Officer
MARY
STOJCEVSKI
Executive Director and
Chief Financial Officer
BOARD OF DIRECTORS
SENIOR MANAGEMENT
IAN
WELCH
Executive Director, Chief
Information Officer and
Director of Operations
VLADIMIR
MITNOVETSKI
Executive Director and
Chief Operating Officer
FIONA
BROWN
Non-executive
Director
LEANNE
RALPH
Non-executive
Director
MICHAEL
DEMETRE
Executive Director and
Logistics Director
Resigned 24/12/2020
6
RESULTS SUMMARY
Key Financial Data
Total revenue from ordinary activities*
Gross profit
Earnings before interest, tax, depreciation [EBITDA]*
Net operating profit before tax **
Net profit before tax
Net profit after tax [NPAT]
Statutory earnings per share (cents)
Underlying earnings per share (cents)**
Dividends paid
Dividends per share (cents)
2020
$’000
2019
$’000
2,000,112
1,761,296
191,391
158,437
91,390
81,859
81,859
57,182
33.95
33.95
59,546
35.50
73,779
64,104
75,873
54,311
33.69
28.38
43,518
27.00
* 2019 - Total revenue excludes profit on sale of property of $12.2m
** 2019 - Net operating profit before tax excluding profit on sale of property of $12.2m and costs for Employee share Scheme of $450k
RESULTS HIGHLIGHTS
REVENUE
($M)
GROSS PROFIT
($M)
$2,000.1
$1,761.3*
$1,493.6
$1,306.0
$191.4
$158.4
$117.8
$132.4
FY17
FY18
FY19
FY20
FY17
FY18
FY19
FY20
EBITDA
($M)
$91.4
$73.8
NET PROFIT BEFORE TAX
($M)
$81.9
$64.1**
$54.4
$48.1
$46.6
$40.2
FY17
FY18
FY19
FY20
FY17
FY18
FY19
FY20
* FY19 - Revenue excludes Profit on sale of property of $12.2m
** FY19 - Operating Profit before tax excluding profit on sale of property of $12.2m and costs for Employee share Scheme of $450k
7
WHO WE ARE
Established in 1978, Dicker
Data (ASX: DDR) has grown
to become Australia’s largest
value-add distributor of IT
hardware, software, cloud
and emerging technology
solutions for the corporate
and commercial ANZ market.
In operation for over 42 years, the company boasts
a long history of strong revenue and profit growth,
with a current market cap of close to $2.0b. With
an experienced founder-led management team, the
company made its mark on the ASX in January 2011
and has since delivered a financial return of over 60
times or 5,900 percent on initial investments in the
company’s IPO, all whilst paying out 100 percent of
profits in dividends. Fast forward to 2020, Dicker Data
was added to the S&P/ASX 300 Index and S&P/ASX All
Technology Index.
Dicker Data is the vital link in the technology value
and supply chain that supports over 6,900 IT reseller
partners to design, configure, deliver and deploy
the technology that helps address the challenges of
today with the solutions of tomorrow, for hundreds of
thousands of Australian and New Zealand (ANZ) end-
user businesses each year.
As digital transformation is now a business reality,
Dicker Data is a trusted advisor that provides
technology driven solutions into all levels of
over
6,900
active reseller partners
in Australia & NZ
Government, Enterprise, Small to
Medium Businesses via its partner
network to improve operational
efficiency and deliver a superior
experience for their customers.
Deemed as an essential service
throughout the pandemic,
Dicker Data is the catalyst for
new technology adoption and
continues to be one of the driving
forces behind Australia’s uptake of
advanced technologies and digital
solutions.
The company’s consistent
and strong results over the
years consolidates its status as a
true Australian success story.
Operating on the cutting-edge of technology and
representing vendors from all walks of tech, Dicker
Data continues to derive growth from new technical
innovations, services and trends whilst leveraging its
market position as the trusted advisor and enabler of
business continuity to thousands of IT reseller partners
and enterprises across ANZ.
Dicker Data is renowned for its customer centric
approach offering agility, flexibility and foresight to
build capabilities in adjacent sectors to identify the next
source of growth. Dicker Data’s performance-based
culture, management incentives and shareholder
alignment are key drivers to consistent growth and
success.
founded
1978
DICKER DATA
MILESTONES
1987
2000
2011
Appointed as first
Toshiba distributor
Annual revenue
exceeds $100m
Listed on the ASX
(ASX: DDR)
8
over
77%
our resellers choose to
purchase online
2020
INDUSTRY
AWARDS
DISTRIBUTOR OF THE YEAR
AUSTRALIA & NZ
86
vendors across
Australia and
NZ
Hardware Distributor of the Year
Software Distributor of the Year
Homegrown Distributor of the Year
FROM IDG
2014
2015
2019
2020
2021
Acquired
Express Data
Holdings
Revenue exceeds
$1b and CloudPortal
Launched
Awarded Cisco
Global Distributor
of the Year
Annual
Revenue
exceeds $2b
Relocated to
new facility
9
2020 IN
REVIEW
In a year of unprecedented disruption, Dicker
Data responded swiftly to COVID-19 supply
chain challenges to capitalise on the changing
market dynamics and to cement its position as
the leading technology distributor across ANZ.
Strategic inventory investments set the
company apart as demand for devices and
related peripherals surged amid Government
enforced lockdowns, spurring the largest
work from home movement in history.
Manufacturers across the world struggled to
keep up with demand, supply chain constraints
were brought to light and companies
scrambled to enable remote working at scale
quickly.
In parallel to the unnatural demand and market
disruption, Dicker Data remained focused on
its objective of partnering with the world’s
leading technology suppliers to provide its
reseller partners with access to the best range
of solutions to solve the challenges faced by
their end-users. Dicker Data’s vast network
of vendors have repeatedly recognised the
company on a global, regional, and local
level for its operational excellence and
local expertise, demonstrating the
value Dicker Data brings to their
technology supply chains and in
turn, reaffirming the company’s
competitive advantage.
In addition to the 8 new
vendors onboarded in
2020, a large amount
of focus and effort
was placed on
pursuing a new
distribution
agreement
with industry
heavyweight,
VMware. Securing
Over
$200m
in revenue generated
online equating to
11% of total
revenue
Hardware &
Virtual Services
$1,492m
+13% YoY
Total Revenue
$2,000m
Software
$496m
+16% YoY
Services
$11m
+39% YoY
Other
$1.2m
the deal in February 2021, the company expects
to commence trading with VMware in the first
half of 2021 and is buoyant about the outlook.
Despite the unforeseen conditions in 2020, Dicker
Data forged ahead with the construction of its
new headquarters, located at 238 Captain Cook
Drive, Kurnell NSW 2231. The new facility saw
total warehouse capacity increase by over 80%
and total office floorspace more than double.
The state-of-the-art facility was completed in late
2020 and the Dicker Data team completed the
move into the facility in late February 2021.
over
200,000
orders placed online
+15%
web orders
Over
500,000
devices shipped
in 2020
over
4,300
resellers transacted
each quarter
10
10
2021 AND
BEYOND
As Australia and New Zealand continue to deal with
the threat of COVID-19, some semblance of ‘normal’
life is returning. As businesses invite employees to
return to their workplaces, there’s new expectations being
placed on the role of technology to continue bridging the gap
between onsite and remote work.
As hybrid work models are adopted, 5G will underpin the connectivity requirements for businesses and their
employees and today’s meeting rooms will need to be upgraded with the latest collaboration technology to
enable a seamless experience, whether an employee is present physically or virtually. Security is high on the
priority list as businesses look for measures to protect their corporate environments and employees from
anywhere, anytime. Backup, storage, and management will continue to play a key role as businesses become
increasingly reliant on using their data as a competitive advantage.
Dicker Data will continue to evolve and differentiate our offerings, as part of our commitment and role in
supporting the A/NZ technology channel ecosystem including our vendors and reseller partners and being the
catalyst for the adoption of new, cutting edge technologies.
COLLABORATION
SECURITY
DATA
MANAGEMENT
11
11
NEW BUILDING
UPDATE
Over
80%
increase in
warehouse space*
*Stage One
Dicker Data acquired the 17ha site for the
company’s new headquarters and distribution
facility approximately 5 years ago. Located
at 238 Captain Cook Drive, Kurnell NSW, the
company had a vision to create a unique campus-
style facility to support its next phase of growth.
The new facility embraces environmentally friendly
initiatives and offers a modern workplace environment that’s
designed to attract and retain the best talent.
With an approved development application to construct 39,550 sqm
of warehouse space and 7,995 sqm of office and amenities, Dicker Data
commenced construction of its new facility in November 2019. Stage one of
the development, comprising of 22,965 sqm of warehouse space and 5,960
sqm of office and amenities space, was completed in February 2021. Dicker
Data is now fully operational from its new premises. As part of a stage two
opportunity, for future expansion, the company has additional warehouse
capacity of 16,585 sqm and office space of 2,035 sqm already approved in the
Development Application.
The facility includes a dedicated configuration centre which enables end-to-end
system building and deployment services for the company’s partner network. Services
offered include asset tagging, device imaging, hardware installation and pre-shipment testing to
name some. Furthermore, new dedicated partner rooms for hire allow Dicker Data’s customers to come onsite
and complete work on their end-user’s new systems prior to shipment.
A dedicated lobby-style foyer with two-story vertical gardens surrounds the commercial hub, providing a space
for our staff, vendors and our customers to continue their learning and development and build upon business
opportunities in a welcoming space that is optimised for collaboration.
As part of the company’s commitment to ecology and sustainability, the building features solar panels, eight
electric vehicle charging stations, recycled water systems and over 30,000 new seedlings and trees on the
grounds surrounding the new facility. Original concrete structures found during excavation of the site have
been retained and repurposed to create large outdoor planters, adding to the site landscape for staff and
visitors to enjoy. To encourage the wellbeing and team culture, nature walks with barbecue areas and outdoor
seating are available on site.
The development of the new Kurnell facility is a pivotal moment in the company’s history and will play a
significant role in next phase of growth.
12
$10K
the Foundation for
National Parks
& Wildlife
+
on-going donations
through ”buy a tree”
scheme on Dicker
Data Portal
$100K
donated to the Australian Wildlife
Conservancy to provide wildlife safe
habitats in the
wake of the
January
2020
bushfires
CORPORATE
SOCIAL
RESPONSIBILITY
Our approach to Corporate Social Responsibility
is based on our ethos to conduct business with
respect for our planet and the human race.
We are committed to ensuring ethical
business processes throughout
our entire organisation and aim to
foster community engagement,
environmental sustainability and
economic development.
collected
255kg
food for Foodbank
to prepare
meals for
charities
staff raised
$2,951
+ OVER 3 MILLION STEPS
STEPtember
for people living
with cerebral palsy
HPE and
Services raised
$6,398
movember
for
mens health
75
lives saved
through blood and
plasma donations at
Australian Red Cross
Lifeblood
staff raised
$4,203
running in the city2surf
staff raised
$1,300
Dimmocks Retreat Wildlife
Rehabilitation & Rescue
+
Dicker Data
donated an additional
+$1,500
13
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 2020.
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.
DIRECTORS
David Dicker
Fiona Brown
Mary Stojcevski
Vladimir Mitnovetski
Ian Welch
Leanne Ralph
Michael Demetre
(Resigned 24/12/2020)
14
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
14-Feb-20
02-Mar-20
14-May-20
01-Jun-20
14-Aug-20
01-Sep-20
16-Nov-20
01-Dec-20
Dividend
/Share
(in Cents)
0.1300
0.0750
0.0750
0.0750
Amount
(in 000’s)
Type
FY
Amount
Franked
$21,010
Final
2019
$12,727
Interim
2020
$12,902
Interim
2020
$12,907
Interim
2020
100%
100%
100%
100%
Total
0.3550
$59,546
The total dividends declared and paid during the financial year were 35.5 cents per share or a total of $59.5m,
fully franked. (2019: 27.0 cents per share, $43.5m), representing an increase of 31.5%
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 was
retained for the 2020 year. Of the $59.5m dividends paid, $53.9m were paid as cash dividends and $5.6m
participated in the DRP.
A final dividend for FY20 of 10.5 cents per share was declared on 9 February 2021 with a record date of 15
February 2021 and a payment date of 1 March 2021. With the three interim dividends paid during FY20, this
will bring total dividends paid for the FY20 year to 33.0 cents per share. This is equal to the total dividend paid
for the FY19 year which also included an additional special interim dividend paid for the realised profit on the
sale of the building at 230 Captain Cook Drive, Kurnell. Excluding the FY19 special dividend, the FY20 dividend
paid represents an increase over FY19 of 17.9%.
Type
FY
Payment
Date
Interim
2020
01-Jun-20
Interim
2020
01-Sep-20
Interim
2020
01-Dec-20
Final
2020
01-Mar-21
Special Div
TOTAL
2020
Dividend
/Share
(in Cents)
0.075
0.075
0.075
0.105
0.330
0.330
FY
2019
2019
2019
2019
2019
2019
Payment
Date
03-Jun-19
02-Sep-19
02-Dec-19
02-Mar-20
04-Oct-19
Dividend
/Share
(in Cents)
0.050
0.050
0.050
0.130
0.280
0.050
0.330
15
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
2020
(in 000’s)
Dec
2019
(in 000’s)
Increase
$
(in 000’s)
Increase
%
Total revenue
$2,000,112
$1,773,515
$226,597
12.8%
Total revenues from ordinary activities *
$2,000,112
$1,761,296
$238,816
13.6%
Gross profit
$191,390
$158,437
$32,953
20.8%
Net operating profit before tax *
$81,859
$64,104
$17,755
27.7%
Net profit before tax
$81,859
$75,873
$5,986
7.9%
Net profit after tax attributable to members
$57,182
$54,311
$2,871
5.3%
* Dec-19 - revenue from ordinary activities excludes profit on sale for property of $12.2m
* Dec-19 - net operating profit before tax excluding profit on sale of property of $12.2m and cost of Employee Share Scheme of $450k
REVENUE
The revenue for the consolidated entity for the 12 months to 31 December 2020 was $2,000.1m (2019:
$1,773.5m), up by $226.6m (+12.8%). Revenue from ordinary activities was $2,000.1m, (2019: $1,761.3m -
excluding the profit on the sale property), an increase of $238.8m or 13.6%. At a country level, Australia grew
$211.8m (+12.9%) and New Zealand grew $27.0m (+23.3%).
Total revenue from sales of goods and services, excluding other revenue was $1,998.8m (2019: $1,758.5m)
up by $240.3m representing increase of 13.7%. Dicker Data has continued to add new vendors and increased
the breadth of products offered by existing vendors whilst still driving growth. In 2020 a total of 8 new vendors
were added, contributing incremental revenue of $9.8m. Existing vendors grew $230.5m (+13.1%) as vendor
consolidation continues to provide access to new product sets or as full value was achieved from vendors
added to the portfolio over the previous years with vendors onboarded in 2018 and 2019 adding $52.7m in YoY
growth. Growth of existing vendors was also driven by the increase in demand for remote working solutions,
surge in demand for virtual capabilities and accelerated digital transformation of businesses as a result of the
COVID-19 pandemic.
At a sector level, the Company maintained strong growth across all business units, with hardware and support
sales up $170.3m (+12.9%), software sales up $66.8m (+15.6%) and the services business unit up $3.1m
(+38.7%). Within our software business the strongest growth came from our recurring revenue products
increasing to $434.9m (2019: $366.5m) an increase of 18.7%.
GROSS PROFIT
Gross profit for the reporting period was up 20.8% at $191.4m (2019: $158.4m). Gross profit margins improved
significantly in the current year at 9.6% (2019: 9.0%). The increase in profit margins is largely attributable to the
increased focus on mid-market and SMB business and partly to some strategic buying decisions early on in
the year.
EXPENSES
Operating Expenses
Operating costs for the reporting period were $101.0m (2019: $86.8m), an increase of $14.2m, up by 16.4%,
and increasing as a proportion to revenue at 5.1% (2019: 4.9%).
The increase in costs is attributed primarily to an increase in salary related expenses. Excluding value of
Employee Share Scheme costs in the previous year, salary costs were $86.2m (2019: $73.0m) an increase
16
of $13.2m (+18.1%), increasing as a proportion of revenue to 4.3% (2019: 4.1%). The increase in salary costs
is attributed to investment in additional headcount as a result of new vendor signings and growth in existing
vendors. With strong performance based remuneration packages the increase in salary costs is driven by the
increase in revenue and operating profit growth experienced. Headcount across the group finished at 525
(+8.2%) (2019: 485).
Other operating expenses increased by $1.3m but fell as a proportion of sales to 0.7% (2019: 0.8%).
Depreciation, Amortisation and Interest
Depreciation and amortisation for the reporting period was $6.4m, an increase of $1.8m. Included in this
number is $1.4m for amortisation of customer contracts. The increase is also attributable to the growth in
the Dicker Data Financial Services business and depreciation of equipment under operating leases of $1.4m.
There was also some increases in plant and equipment depreciation with additional PP&E purchases with
an increase of additional headcount in the financial year. With the adoption of the new accounting standard
AASB16, depreciation on the Right of Use Assets (ROUA) for capitalised leases amounted to $3.1m.
Finance costs in the reporting period were $3.5m, significantly down from the prior year (2019: $5.7m), mainly
attributed to the payout of a $40m corporate bond in March 2020. This was replaced with an increase in
the Company’s Westpac receivables facility to $180m limit, also providing participation in the lower variable
interest rate environment. There was also a partial debt reduction throughout the year after raising $65m
(before costs) in a share issue in May and June 2020.
PROFIT
Profit before tax finalised at $81.9m (2019: $75.9m) up by 7.9%. However in FY19 profit before tax included
profit on sale of property of $12.2m and costs relating to share issue for Employee Share Scheme of $450k.
On a comparable basis operating profit before tax in FY19 finalised at $64.1m, representing a 27.7% increase
for FY20.
Net profit after tax increased to $57.2m (2019: $54.3m), up by 5.3%.
Weighted average earnings per share increased to 33.95 cents per share (2019: 33.69 cents), up by 0.8%.
Earnings in FY19 included the profit on the sale of the building which was over and above operational earnings
in the comparative period, as well as the impact of the incremental 10.5m shares issued during FY20.
Underlying weighted average earnings per share, adjusted for the profit on the sale of the property in FY19
increased from 28.38 cents per share to 33.95 cents per share for FY20, representing an increase of 19.6%.
STATEMENT OF FINANCIAL POSITION
Total assets as at 31 December 2020 increased to $581.9m (2019: $507.5).
The statement of financial position reflected a very marginal increase in working capital investment as the
company maintained very cautious working capital disciplines. Total investment in net working capital was
$167.0m, up by $1.6m from previous year (2019: $165.4m). Cash finalised at $30.4m, up by $7.8m (2019:
$22.6m). Trade and other receivables were up from the previous year to $327.0m (2019: $295.9m). The
company showed a measured decrease in inventory with inventories finishing at $113.2m (2019: $120.4m),
inventory days down to 22.8 days down (2019: 27.4 days). Trade and other payables were up to $273.2m (2019:
$250.9m).
Property, plant and equipment increased to $78.0m during the period (2019: $32.0m) an increase of $46.0m as
the company completed works on the new distribution centre and office complex.
Total liabilities as at 31 December 2020 were $420.3m, up from the prior period (2019: $412.5m).
Current borrowings comprising the drawn amount on the receivables purchase facility with Westpac was
at $120.0m as at 31 December 2020, $30.0m higher than prior year (2019: $90.0m). However overall total
borrowings were lower than FY19, with total debt in FY19 at $129.9m, reflecting the impact of the $40m
corporate bond repayment and overall debt reduction.
Equity has increased to $161.6m during the year (2019: $95.1m) primarily due to the impact of the capital
raising in May and Share Purchase Plan in June, with some contribution from DRP.
17
Equity Movement
Equity 31 Dec 2019
Comprehensive Income for FY2020
Dividends Paid
Share Issue (DRP)
Share Capital Raising and SPP
Equity 31 Dec 2020
(in 000’s)
95,067
56,818
(59,546)
5,656
63,618
161,613
With the increase in equity from the capital raising and resulting lower debt, the debt to equity ratio improved
to 0.74x (2019: 1.37x). The net tangible assets position continued to improve finalising at $136.7m (2019:
$68.2m).
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
Capital Raise
On 7th May 2020 the Company completed a $50m share placement at an issue price of $6.70 per share,
followed by a further $15m share purchase plan on 5 June 2020 at an issue price of $6.625 per share
resulting in 9,726,837 new shares being issued. The net proceeds were invested in the construction of the
new distribution centre and to support the growth of Dicker Data Financial Services and investment in working
capital. The capital raise increased the public float in the Company to approximately 33% and provided
financing headroom to facilitate capacity for future growth.
New Building Update
The construction of the new distribution centre at 238 Captain Cook Drive Kurnell was completed by the end of
the year, with a practical completion date of 23 December 2020. The cost of the project, including fitout as at
31 December 2020 was $55.8m. All staff relocated to the new building in February 2021.
The size of the first stage of the new distribution centre is 28,925 sqm with 22,965 sqm of it being warehouse
space. This is an increase of approx 10,000 sqm from the previous warehouse facility representing an increase
in capacity of 80%. There is a further 18,620 sqm warehouse and office space approved as part of the
Development Application to be built as part of a second stage providing future expansion options.
COVID-19 Update
On 31 January 2020, the World Health Organisation (WHO) announced a global health emergency because
of a new strain of coronavirus (COVID-19 outbreak) and the risks to the international community as the virus
spread globally beyond its point of origin. Because of the rapid increase in exposure globally, on 11 March
2020, the WHO classified the COVID-19 outbreak as a pandemic.
The business to date has proved resilient to the negative economic impact of COVID-19. For the first half of
the financial year there was significant growth experienced due to increase in demand for remote working
solutions, surge in demand for virtual capabilities and accelerated digital transformation of businesses as a
result of the COVID-19 pandemic. In the second half of the year the Company continued to grow operations
however at more normalised levels and within expected growth rates. The Company did not access any
government COVID-19 related grants in the period or to the date of signing of this report. There is still
significant uncertainty as to the full impact that the pandemic will have on the economy overall which could
impact the Company’s earnings in the new financial year, however our teams are now well positioned to ensure
continuity of supply. The full impact of the COVID-19 outbreak continues to evolve at the date of this report.
18
MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR
Rollover of Westpac Receivables Facility
The Westpac receivables facility was renewed on 12th February 2021 for a further 12 months with a limit of
$180m. This rollover ensures the ongoing funding for the current financial year.
There were no other significant matters subsequent to the end of the financial year.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF OPERATIONS
The COVID-19 pandemic triggered unprecedented disruption to the lives of millions of people across the
globe, however, it also cemented the power and role of technology in our lives. Whether we look at workplaces,
schools, communities or everyday social interactions, all of them were upended in 2020, and all of them have
used technology to bridge the gap and re-establish some form of normal. Businesses who were not digitally
ready were exposed, and the pace of digital transformation in our economy has never been more rapid than
what we saw in 2020.
As we move into 2021 and beyond, the digital transformation agendas of Australian and New Zealand
businesses will continue to accelerate. The new hybrid working environment is driving the need for smart
collaboration platforms that bridge the physical and virtual user experience. Connectivity and bandwidth are
top of mind for governments, businesses, schools, communities and individuals as they embrace an always-
on, connect-from-anywhere approach using technologies such as 5G. The Everything-as-a-Service (XaaS)
movement is increasing commercial confidence in the adoption of technology via subscription models,
which is an area that benefited many businesses throughout the pandemic as they scaled their subscription
commitments to meet the changing needs of their business’.
Security will be a key area of focus for every business in 2021. The rapid shift to remote working that occurred
as lockdowns swept across the country resulted in many businesses focusing on keeping their lights on whilst
their security posture, both internal and external to their organisation, fell lower down the priority list. 2021
will be the year these businesses refocus on security, invest in the required technologies and ensure their
corporate environments are protected against a rapidly evolving global cyberthreat landscape. Technologies
such as Zero Trust will become more prevalent to protect both businesses and their employees as they
connect to their corporate networks from anywhere, anytime.
We saw an unprecedented spike in demand for devices throughout 2020 and we expect this to continue
through 2021. PC manufacturers are innovating at a rate not seen since the introduction of the personal
computer as they vie for more market share and attempt to address the shortcomings of traditional devices
in light of new technology, such as augmented reality (AR), that is gaining momentum and revolutionising
the way consumers interact with products. We are anticipating a high level of growth in automation, machine
learning and data capture and analysis tools as businesses and governments seek increased efficiency and
productivity within their operations.
2021 presents an unparalleled opportunity for the entire technology sector, and in particular Dicker Data, as we
continue in our role supporting the Australian and New Zealand technology channel ecosystem and being the
catalyst for the adoption of these new, cutting edge technologies.
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.
CORPORATE GOVERNANCE
Our policies in respect of corporate governance, code of conduct and whistleblower policy can be found at
www.dickerdata.com.au/investor. This includes our Corporate Governance Statement.
19
DIRECTORS
INFORMATION
SENIOR MANAGEMENT
BOARD OF DIRECTORS
DAVID
DICKER
Chairman and
Chief Executive
Officer
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:
60,740,000 Ordinary shares in Dicker Data Ltd
10,000 Ordinary shares held by his wife
INTEREST IN CONTRACTS:
Nil
SPECIAL RESPONSIBILITIES:
Chairman and responsible for overall business
management & strategy as Chief Executive Officer.
Member of the Audit and Risk Management
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:
53,792,531 Ordinary shares in Dicker Data Ltd
1,279,717 Ordinary shares held by Fi Brown
Trust N01
97,495 Ordinary shares held by South Coast
Developments Pty Ltd as trustee for
the Brown Family Superfund
INTEREST IN CONTRACTS:
Nil
SPECIAL RESPONSIBILITIES:
Chair of the Audit & Risk Management Committee
Member of the Nomination and Remuneration
Committee
Member of the Work Health and Safety Committee
OTHER CURRENT LISTED COMPANY DIRECTORSHIPS:
None
OTHER CURRENT LISTED COMPANY DIRECTORSHIPS
HELD IN PREVIOUS 3 YEARS:
None
20
VLADIMIR
MITNOVETSKI
Executive Director and
Chief Operating Officer
INTEREST IN EQUITIES:
905,000 Ordinary shares in Dicker Data Ltd
25,953 Ordinary shares held by Mitnovetski
Pty Ltd as Trustee for Mitnovetski
Superannuation Fund
20,627 Ordinary shares held by his wife
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 20 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 CONTRACTS:
Nil
SPECIAL RESPONSIBILITIES:
Responsible for the sales, vendor alliances and
operations of the consolidated entity.
Member of the Audit and Risk Management
Committee.
OTHER CURRENT LISTED COMPANY DIRECTORSHIPS:
None
OTHER CURRENT LISTED COMPANY DIRECTORSHIPS
HELD IN PREVIOUS 3 YEARS:
None
MARY
STOJCEVSKI
Executive Director and
Chief Financial Officer
INTEREST IN EQUITIES:
54,748 Ordinary shares in Dicker Data Ltd
192,858 Ordinary shares held by Stojen Pty Ltd
as trustee for Stojinvest
Superannuation Fund
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 10 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 CONTRACTS:
Nil
SPECIAL RESPONSIBILITIES:
Responsible for the overall financial management
and compliance functions of the consolidated
entity
OTHER CURRENT LISTED COMPANY DIRECTORSHIPS:
None
OTHER CURRENT LISTED COMPANY DIRECTORSHIPS
HELD IN PREVIOUS 3 YEARS:
None
21
DIRECTORS
INFORMATION
SENIOR MANAGEMENT
BOARD OF DIRECTORS
IAN
WELCH
Executive Director, Chief
Information Officer
and Director of Operations
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:
64,528 Ordinary shares in Dicker Data Ltd
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
MICHAEL
DEMETRE
Executive Director
and Logistics Director
Resigned 24/12/2020
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
successfully held this position since 2007. Michael was also
an Executive Director of the company since 21st September
2010 but resigned as Director on 24th December 2020.
INTEREST IN EQUITIES:
18,571 Ordinary shares in Dicker Data Ltd
INTEREST IN CONTRACTS:
Nil
SPECIAL RESPONSIBILITIES:
Responsible for the warehouse
and logistics operations.
OTHER CURRENT LISTED COMPANY
DIRECTORSHIPS:
None
OTHER CURRENT LISTED COMPANY
DIRECTORSHIPS HELD IN PREVIOUS 3 YEARS:
None
22
INTEREST IN EQUITIES:
3,140 Ordinary shares in Dicker Data Ltd
15,663 Ordinary shares held
by related parties
INTEREST IN CONTRACTS:
Nil
SPECIAL RESPONSIBILITIES:
Chair of the Nomination & Remuneration
Committee
Member of the Audit & Risk Management
Committee
OTHER CURRENT LISTED COMPANY
DIRECTORSHIPS:
None
OTHER CURRENT LISTED COMPANY
DIRECTORSHIPS HELD IN PREVIOUS 3 YEARS:
None
LEANNE
RALPH
Non-executive
Director
Leanne was appointed as an independent non-executive director on
13 December 2019. Prior to her appointment Leanne was the founder
and director of Boardworx Australia Pty Ltd, a provider of outsourced
company secretarial services, until its sale in 2017. Leanne is a highly
experienced governance professional with over 15 years in this field,
having held the role of Company Secretary for a number of ASX-listed
entities across a diverse range of industries. She currently holds the
roles of Non-Executive Director of Raise Foundation, and is Company
Secretary for various listed entities. Leanne’s prior executive
positions focussed on accounting and finance for almost 20 years,
as CFO of International Brand Management Pty Ltd, a business
of importing, wholesaling and retailing luxury fashion brands, and
Principal Client Advisor with Altus Financial, providing management
accountant and company secretarial services to clients. Leanne
holds a Bachelor of Business with majors in Accounting and Finance,
is a Graduate Member of the Australian Institute of Company
Directors and a Fellow of the Governance Institute of Australia.
ERIN
MCMULLEN
Company
Secretary
Erin McMullen was appointed to the position of Company Secretary on
6th November 2018. Erin has over 9 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.
23
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:
Directors
Mr David Dicker
Ms Fiona Brown
Mr Vladimir Mitnovetski
Ms Mary Stojcevski
Mr Michael Demetre (Resigned 24/12/20)
Mr Ian Welch
Ms Leanne Ralph
Board
Audit and Risk
Management Committee
Meetings
eligible to
attend
Meetings
attended
Meetings
eligible to
attend
Meetings
attended
12
12
12
12
12
12
12
12
12
12
12
10
12
12
2
2
2
-
-
-
2
2
2
2
-
-
-
2
Note: The Nomination and Remuneration Committee was established 18 December 2020.
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)
c)
d)
e)
f)
Details of remuneration
Service agreements
Share-based compensation
Additional information
Additional disclosures relating to key management personnel
Principles used to determine the nature and amount of remuneration
a)
In determining the remuneration packages of its executives, the board adopts principles that ensures the level
and composition of remuneration aligns with the interests of shareholders, and allows us to retain our high
performing talent.
These key principles are:
• A focus on the performance of the business – executives are paid on the performance of the business;
• A minimum performance threshold has to be met before any performance awards are paid. This ensures
the variable reward is only available when value has been created for shareholders and when profit is in line
with the approved budget;
• The remuneration framework is simple, clear and transparent;
• Competitive remuneration packages to ensure the retention of highly skilled long-serving resources.
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.
24
Executives Remuneration Framework
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 below for a
detailed explanation of the performance conditions.
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 performance-related award is un-capped after the threshold performance
metric has been achieved. The chairman and CEO is responsible for assessing whether an individual’s targets
have been met.
There are currently no long term incentive plans in place. The rationale for this approach to our remuneration
framework is that all executives have significant individual DDR shareholdings and many continue to buy
voluntarily, so there is already alignment between the interests of executives and shareholder interests. The
graphs below demonstrate the alignment between executive pay, performance of the company and long-term
shareholder value.
NET PROFIT BEFORE TAX
($M)
WEIGHTED AVERAGE EPS
(IN CENTS PER SHARE)
2 2 . 3 % C A G R
81.9
64.1
36.6
40.2
46.6
0 . 6 % C A G R
2
33.95
28.38
16.04
16.81
20.22
FY16
FY17
FY18
FY19**
FY20
FY16
FY17
FY18
FY19**
FY20
** FY19 - Operating Profit before tax excluding profit on sale of property of $12.2m and costs for Employee share Scheme of $450k
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. Leanne Ralph was appointed to the board as a non-executive independent director in December
2019. The other current non-executive director is Fiona Brown, who is also a major shareholder, and therefore
not considered independent.
25
Details of remuneration
(b)
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.
SHORT TERM
SHORT
TERM
LONG
TERM
SHARE BASED
PAYMENTS
Directors
FY
Cash
Salary
& Fees
Incentive
Cash
Bonus
Non-Cash
Super
FBT
Annual
Leave
Long
Service
Leave
Shares
Options
Total
Proportion of
remuneration
that is
performance
based
% of value of
remuneration
that consists
of share Based
Payments
$
$
$
$
$
$
EXECUTIVE DIRECTORS
David Dicker
Chief Executive Officer
Vladimir Mitnovetski
Chief Operating Officer
Mary Stojcevski
Chief Financial Officer
Ian Welch
Chief Information Officer
Michael Demetre
Logistics Director
(Resigned 24/12/2020)
$
-
-
-
-
$
-
-
-
-
3,274,289
311,057
2,562,326 243,421
Dec-20
Dec-19
Dec-20
Dec-19
Dec-20
203,077
1,227,858
135,939
Dec-19
200,000
960,872
110,283
Dec-20
253,846
818,572
101,880
Dec-19
250,000
640,582
84,605
Dec-20
228,461
818,572
99,468
Dec-19
225,000
640,582
82,230
NON-EXECUTIVE DIRECTORS
Fiona Brown
Leanne Ralph
TOTAL
Dec-20
50,228
Dec-19
50,228
Dec-20
54,300
Dec-19
2,107
-
-
-
4,772
4,772
5,700
200
Dec-20
789,913 6,139,291 658,816
Dec-19
727,335 4,804,362 525,511
* 100% of short-term incentive cash bonuses have vested
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
11,541 10,029
-11,414 10,029
3,846
3,342
2,951
3,306
10,577
4,178
17,150
4,133
-4,760
3,760
-9,877
3,791
-
-
-
-
-
-
21,204 21,309
-1,190 21,187
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
-
-
%
-
-
3,606,916
100.00%
2,804,362
100.00%
1,574,062
85.42%
1,277,412
76.71%
1,189,053
75.38%
996,471
70.39%
1,145,502
78.25%
941,654
74.49%
55,000
0.00%
55,000
0.00%
60,000
0.00%
2,308
0.00%
7,630,533
6,077,205
-
-
%
-
-
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
0.00%
-
-
Service agreements
C)
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
26
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 operating profit before tax 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.
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 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 operating 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 commenced from 30 March 2013. The appointment of
Mr Welch is for an unspecified time. Either the company or Mr Welch may terminate the ESA with 3 months’
notice. The remuneration payable to Mr Welch comprises a base remuneration of $250,000 per annum. Mr
Welch is also entitled to a performance bonus equal to 1% of the Company’s net profit before tax. This is
subject to net profit margin before tax not being less than 2.5%, unless otherwise agreed. Superannuation is
uncapped and payable at 9.5% on total of base and performance payments. The ESA also contains a number
of post-termination restraints.
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 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 operating 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 performance threshold was achieved for FY20, each director received
100% of the performance bonus they were entitled to.
Share-based compensation
d)
No shares, rights, or options were granted to directors or key management personnel during the year ended 31
December 2020, no rights or options vested or lapsed during the year, and no rights or options were exercised
during the year by directors.
Additional information
e)
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. Excluding profit on sale of property and
employee share plan costs from the previous year operating profit for the consolidated entity grew by 27.7%
during the year. On an average over the last 4 years operating profit grew by 27.1%. As a large proportion
of the executive’s remuneration package is based on net operating profit outcomes the average executive
remuneration also increased. Since 2016, the net profit before tax has grown at an average rate of 27.1%, whilst
the average executive remuneration has increased by an average of 17.6%. Shareholder wealth has increased
at an average rate of 21.3% per annum over this period. For the financial year, underlying earnings per share
increased by 19.6% whilst dividends paid to shareholders increased by 31.5%.
27
Voting & comments made at the company’s 2019 Annual General Meeting (AGM)
At the 2019 AGM, 83.44% of the votes received supported the adoption of the remuneration report for the
financial year ended 31 December 2019. The company did not receive any specific feedback at the AGM
regarding its remuneration practices.
(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:
Vladimir Mitnovetski
729,316
222,264
December 2020
ORDINARY SHARES
David Dicker
Fiona Brown
Mary Stojcevski
Ian Welch
Michael Demetre
Leanne Ralph
December 2019
ORDINARY SHARES
David Dicker
Fiona Brown
Balance at
the start of
the year
Additions
Disposals
60,563,495
186,505
54,602,140
567,603
210,863
60,000
18,571
1,600
36,743
4,528
-
17,203
116,185,985
1,034,846
Balance at
the start of
the year
Additions
Disposals
60,563,495
-
54,045,303
556,837
Vladimir Mitnovetski
566,405
162,911
Mary Stojcevski
Ian Welch
Michael Demetre
Leanne Ralph
190,563
30,000
18,571
20,300
30,000
-
-
1,600
115,414,337
771,648
This concludes the remuneration report which has been audited.
28
Balance at
the end of
the year
60,750,000
55,169,743
951,580
247,606
64,528
18,571
18,803
117,220,831
Balance at
the end of
the year
60,563,495
54,602,140
729,316
210,863
60,000
18,571
1,600
116,185,985
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
TRANSACTIONS WITH RELATED PARTIES
There were a number of related party transactions during the year with the entity Rodin Cars Ltd, a New
Zealand based entity owned by David Dicker. The transactions included provision of marketing and IT services
and sales of goods and services which are billed to Rodin Cars Ltd on a monthly basis at commercial market
rates. Total amount billed to Rodin Cars Ltd for FY20 was $157,815. Dicker Data Financial Services Pty Ltd
has also provided finance to Rodin Cars Ltd at arms length commercial rates. The amount payable as at 31
December 2020 was $1,015,412.32. The principal amount financed was $3,993,922.57. In addition to these
transactions some payments have been made on behalf of director David Dicker throughout the year that were
subsequently reimbursed, or funds were deposited in advance to cover these expenses. Total amount of funds
paid on behalf of David Dicker by the Company as at 31 December 2020 was $2,780,466.46.
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.
INDEMNITY AND INSURANCE OF AUDITOR
The company has not, during or since the financial year, indemnified or agreed to indemnify the auditor of the
company or any related entity against a liability incurred by the auditor.
During the financial year, the company has not paid a premium in respect of a contract to insure the auditor of
the company or any related entity.
PROCEEDINGS ON BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the company, or to intervene in any proceedings to which the company is a party for
the purpose of taking responsibility on behalf of the company for all or part of those proceedings.
NON-AUDIT SERVICES
Details of the amounts paid or payable to the auditor for non-audit services provided during the financial year
by the auditor are outlined in note 25 to the financial statements.
The directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or
by another person or firm on the auditor’s behalf), is compatible with the general standard of independence for
auditors imposed by the Corporations Act 2001.
The directors are of the opinion that the services as disclosed in note 25 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.
29
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 Audit Pty Ltd.
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.
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 70.
AUDITOR
Accounting Firm BDO Audit Pty Ltd continues in office in accordance with section 327 of the Corporations Act
2001.
This report is made in accordance with a resolution of directors, pursuant to section 298(2)(a) of the
Corporations Act 2001.
On behalf of the directors,
David Dicker
CEO and Chairman
Sydney, 25 February 2021
30
STATEMENT OF PROFIT OR LOSS AND
OTHER COMPREHENSIVE INCOME
For The Year Ended 31 December 2020
REVENUE
Sales revenue
Other revenue:
Interest received
Recoveries
Profit on sale of property
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
WEIGHTED EARNINGS PER SHARE
Basic earnings per share
Diluted earnings per share
CONSOLIDATED
Note
31-Dec-20
($’000)
31-Dec-19
($’000)
1,998,785
1,758,521
375
4
-
948
155
5
12,219
2,615
4
2,000,112
1,773,515
5
5
(7,187)
14,944
(1,800,207)
(1,615,028)
(86,232)
(73,481)
(6,379)
(3,527)
-
(4,579)
(5,701)
(421)
(14,721)
(13,376)
(1,918,253)
(1,697,642)
81,859
75,873
6
(24,677)
(21,562)
57,182
57,182
54,311
54,311
(364)
56,818
107
54,418
4
56,818
54,418
31
31
Cents
33.95
33.95
Cents
33.69
33.69
The statement of profit or loss and other comprehensive income is to be read in conjunction with the attached notes.
31
STATEMENT OF FINANCIAL POSITION
As at 31 December 2020
CONSOLIDATED
Note
31-Dec-20
($’000)
31-Dec-19
($’000)
10
11
12
15
13
14
8
16
15
17
7
18
15
9
18
19
20
30,368
326,963
113,246
22,573
295,921
120,433
470,577
438,927
2,276
78,024
24,933
6,135
111,368
581,945
5,191
31,981
26,290
5,151
68,613
507,540
273,193
250,932
2,243
3,072
120,000
129,930
4,937
13,354
8,849
10,082
413,727
402,865
514
4,154
1,937
6,605
2,604
4,809
2,196
9,609
420,332
412,473
161,613
95,067
131,790
270
29,553
161,613
62,516
634
31,917
95,067
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventories
Total Current Assets
NON-CURRENT ASSETS
Right of Use Asset
Property, plant and equipment
Intangible assets
Deferred tax assets
Total Non-Current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Trade and other payables
Lease Liabilities
Borrowings
Current tax liabilities
Short-term provisions
Total Current Liabilities
Non-Current Liabilities
Lease Liabilities
Deferred tax liabilities
Long-term provisions
Total Non-Current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Equity attributable to Equity Holders
Issued capital
Reserves
Retained profits
TOTAL EQUITY
The statement of financial position is to be read in conjunction with the attached notes
32
STATEMENT OF CHANGES IN EQUITY
For The Year Ended 31 December 2020
Consolidated
Issued
Capital
(in 000’s)
Retained
Profits
(in 000’s)
Note
Reserves
(in 000’s)
Total
Equity
(in 000’s)
Balance at 1 January 2019
57,982
21,453
527
79,962
Adjustment in respect of first time adoption of AASB16
-
(329)
-
(329)
Adjusted Balance at 1 January 2019
57,982
21,124
527
79,633
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)
19
4,084
Share Issue - Employee Share Scheme (ESS)
450
54,311
-
54,311
-
107
107
54,311
107
54,418
-
-
-
-
-
4,084
450
(43,518)
Dividends Paid
21
-
(43,518)
Balance at 31 December 2019
62,516
31,917
634
95,067
Consolidated
Balance at 1 January 2020
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:
Issued
Capital
(in 000’s)
Retained
Profits
(in 000’s)
Note
Reserves
(in 000’s)
Total
Equity
(in 000’s)
62,516
31,917
634
95,067
57,182
-
57,182
-
(364)
(364)
57,182
(364)
56,818
-
-
-
-
-
-
-
-
-
5,656
63,618
(59,546)
Share Issue (DRP)
19
5,656
Share Issue - Capital Raising and Share Purchase Plan (SPP)
63,618
Dividends Paid
21
-
(59,546)
Balance at 31 December 2020
131,790
29,553
270
161,613
The statement of changes in equity is to be read in conjunction with the attached notes.
33
-
-
-
-
-
-
STATEMENT OF CASH FLOWS
For The Year Ended 31 December 2020
Note
31-Dec-20
($’000)
31-Dec-19
($’000)
CASH FLOWS FROM OPERATING ACTIVITIES
Receipts from customers (inclusive of GST)
2,168,061
1,897,964
Payments to suppliers and employees (inclusive of GST)
(2,075,493)
(1,865,543)
Interest received
4
375
155
Interest and other finance costs paid
Income tax paid
(3,338)
(5,581)
(30,227)
(15,466)
NET CASH FROM OPERATING ACTIVITIES
29
59,378
11,529
CASH FLOWS FROM INVESTING ACTIVITIES
Payments for property, plant and equipment
(48,122)
(10,136)
Proceeds from sale of property plant and equipment
Payments for intangibles
Payments associated with sale of property plant & equipment
64
(3)
-
36,000
(2)
(753)
NET CASH USED IN INVESTING ACTIVITIES
(48,061)
25,109
CASH FLOWS FROM FINANCING ACTIVITIES
Proceeds from share issue
Repayment of bond
Drawdown / (Repayments of borrowings)
Principal paid on lease liabilities
Interest paid on lease liabilities
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.
63,618
(40,000)
30,000
(3,061)
(190)
-
-
20,000
(1,574)
(120)
(53,889)
(38,984)
(3,522)
(20,678)
7,795
22,573
30,368
15,960
6,613
22,573
34
NOTES TO THE
FINANCIAL STATEMENTS
For The Year Ended 31 December 2020
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 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 2020, unless otherwise stated. The consolidated entity has not yet performed an assessment of
the impact of these new or amended Accounting Standards and Interpretations.
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 2020 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
35
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.
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.
36
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.
37
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. Operating segments have been aggregated where they are below
the quantitative thresholds and where the aggregation criteria has been met per AASB8.
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 Transactions
During the year there was no dividend paid from Dicker Data NZ Ltd to Express Data Holdings Pty Ltd (2019:
$Nil).
Intersegment Receivables, Payables and Loans
Intersegment loans are initially recognised at the consideration received. Intersegment loans receivable and
loans payable that earn or incur non-market interest are not adjusted to fair value based on market interest
rates. Intersegment loans are eliminated on consolidation. No single customer represents more than 10% of
revenue.
38
OPERATING SEGMENT INFORMATION
Consolidated - December 2020
Australia
($’000)
NZ
($’000)
Eliminations/
Unallocated
($’000)
TOTAL
($’000)
REVENUE
Sale of goods
Other revenue:
Interest received
Recoveries
Other revenue
TOTAL REVENUE
EBITDA
Depreciation & Amortisation
Interest received
Finance costs
Profit before income tax
Income tax expense
Profit after income tax expense
Segment Current Assets
Segment Non Current Assets
SEGMENT ASSETS
Segment Current Liabilities
1,855,901
142,884
-
467
4
934
-
14
-
14
-
-
(106)
-
-
1,998,785
-
375
4
948
1,857,306
142,912
(106)
2,000,112
88,485
(5,609)
361
(3,423)
79,814
(24,088)
55,726
441,782
109,858
551,640
394,968
2,905
(770)
14
(210)
1,939
(589)
1,350
28,970
1,510
30,480
18,815
-
-
-
106
106
91,390
(6,379)
375
(3,527)
81,859
-
(24,677)
106
57,182
(175)
470,577
-
111,368
(175)
(56)
581,945
413,727
Segment Non Current Liabilities
6,091
514
-
6,605
SEGMENT LIABILITIES
401,059
19,329
(56)
420,332
39
OPERATING SEGMENT INFORMATION
Consolidated - December 2019
Australia
($’000)
NZ
($’000)
Eliminations/
Unallocated
($’000)
TOTAL
($’000)
REVENUE
Sale of goods and services*
1,642,804
115,717
Other revenue:
Recoveries
Profit on sale of property
Other revenue
Interest received
TOTAL REVENUE
EBITDA
Depreciation & Amortisation
Interest received
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
*Revenue by product type and geographic location is disclosed at Note 4
5
12,219
2,417
125
-
-
199
29
1,657,569
115,945
84,199
(3,954)
125
(5,646)
74,724
(21,237)
53,487
411,236
66,465
1,799
(625)
29
(55)
1,149
(325)
825
27,695
2,148
477,700
29,843
384,097
8,581
18,771
1,028
392,678
19,798
-
-
-
-
-
-
-
-
-
-
-
-
-
(3)
-
(3)
(3)
-
(3)
1,758,521
5
12,219
2,615
155
1,773,515
85,998
(4,579)
155
(5,701)
75,873
(21,562)
54,311
438,927
68,613
507,540
402,865
9,609
412,473
40
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. 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 2020
Product Type
Description
Revenue
recognition
(PIT/OT)
Agent/
Principal
AU
NZ
Consolidated
Infrastructure
Hardware products
Point in time
Principal
1,294,609
60,626
1,355,234
Virtual Services
Sales of 3rd party
warranties and services
Software
Perpetual & subscription
licensing including cloud
products
Dicker Data
Services
3rd party logistics and
configuration services
Point in time
Principal
131,319
5,025
136,345
Point in time
Principal
418,673
77,245
495,918
Point in time
Principal
5,239
-13
5,226
Partner Services
Agent commission
Point in time
Agent
6,062
-
6,062
1,855,902
142,883
1,998,785
41
YEAR TO 31 DECEMBER 2019
Product Type
Description
Revenue
recognition
(PIT/OT)
Agent/
Principal
AU
NZ
Consolidated
Infrastructure
Hardware products
Point in time
Principal
1,135,349
48,417
1,183,765
Virtual Services
Sales of 3rd party
warranties and services
Software
Perpetual & subscription
licensing including cloud
products
Point in time
Principal
135,137
2,360
137,497
Point in time
Principal
364,186
64,933
429,119
Dicker Data
Services
3rd party logistics and
configuration services
Point in time
Principal
4,296
Partner Services
Agent commission
Point in time
Agent
3,837
7
-
4,303
3,837
1,642,804
115,717
1,758,521
OTHER REVENUE
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.
CONSOLIDATED
Note
31-Dec-20
($’000)
31-Dec-19
($’000)
1,998,785
1,758,521
375
4
-
948
155
5
12,219
2,615
2,000,112
1,773,515
Sales from contracts with customers:
Sale of goods and services
Other revenue:
Interest
Recoveries
Profit on sale of property
Other revenue
Total Revenue
42
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 leases have been capitalised with 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).
43
Depreciation
Building
Plant and equipment
Right of use asset
Total depreciation
Amortisation
Website development
Software
Customer contracts
Total amortisation
Total depreciation and amortisation
Finance costs
CONSOLIDATED
Note
31-Dec-20
($’000)
31-Dec-19
($’000)
32
1,923
3,065
5,020
-
17
1,342
1,359
6,379
460
1,130
1,603
3,193
11
26
1,349
1,386
4,579
Interest and finance charges paid / payable
3,527
5,701
Superannuation expense
Defined contribution superannuation expense
5,884
5,048
Operating leases
Property rental expense
Equipment rental expense
6. INCOME TAX
24
-
24
49
12
61
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
44
will be available for the carrying amount to be recovered. Previously unrecognised deferred tax assets are
recognised to the extent that it is probable that there are future taxable profits available to recover the asset.
Deferred tax assets and liabilities are offset only where there is a legally enforceable right to offset current tax
assets against current tax liabilities and deferred tax assets against deferred tax liabilities; and they relate to
the same taxable authority on either the same taxable entity or different taxable entity’s which intend to settle
simultaneously.
Dicker Data Limited (the ‘head entity’) and its wholly-owned Australian subsidiaries have formed an income
tax consolidated group from 01 April 2014, under the tax consolidation regime. The head entity and each
subsidiary in the tax consolidated group continue to account for their own current and deferred tax amounts.
The tax consolidated group has applied the ‘separate taxpayer within group’ approach in determining the
appropriate amount of taxes to allocate to members of the tax consolidated group. In addition to its own
current and deferred tax amounts, the head entity also recognises the current tax liabilities (or assets) and the
deferred tax assets arising from unused tax losses and unused tax credits assumed from each subsidiary in
the tax consolidated group. Assets or liabilities arising under tax funding agreements with the tax consolidated
entities are recognised as amounts receivable from or payable to other entities in the tax consolidated group.
The tax funding arrangement ensures that the intercompany charge equals the current tax liability or benefit of
each tax consolidated group member, resulting in neither a contribution by the head entity to the subsidiaries
nor a distribution by the subsidiaries to the head entity.
Income Tax Critical Judgements
The consolidated entity is subject to income taxes in the jurisdictions in which it operates. Significant
judgement is required in determining the provision for income tax. There are many transactions and
calculations undertaken during the ordinary course of business for which the ultimate tax determination
is uncertain. The consolidated entity recognises liabilities for anticipated tax audit issues based on the
consolidated entity’s current understanding of the tax law. Where the final tax outcome of these matters is
different from the carrying amounts, such differences will impact the current and deferred tax provisions in the
period in which such determination is made.
(A) The components of tax expense comprise:
Current tax
Over/(Under) provision in respect of prior years
Deferred tax (expense/benefit)
Over/(Under) provision in respect of prior years
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
C O N S O L I D A T E D
31-Dec-20
($’000)
31-Dec-19
($’000)
25,722
12
25,734
(1,045)
(12)
-
(1,057)
24,677
(509)
(655)
118
(1,045)
23,733
(1,361)
22,372
(961)
24
127
(810)
21,562
(1,492)
401
130
(961)
45
(B)
The prima facie tax payable on profit before income tax is
reconciled to the income tax as follows:
Prima facie tax payable on profit before income tax at 30%
24,557
22,762
C O N S O L I D A T E D
31-Dec-20
($’000)
31-Dec-19
($’000)
ADD TAX EFFECT OF:
Under provision for income tax in prior year
Non-deductible expenses
Deferred Tax on intangibles
LESS TAX EFFECT OF:
Differences in overseas tax rates
Income tax expense attributable to entity
3
112
-
(1,210)
202
(187)
24,672
21,567
5
(5)
24,677
21,562
The applicable weighted average effective tax rates are as follows:
30.1%
28.4%
7. CURRENT TAX
Current tax liability
8. DEFERRED TAX ASSET
Deferred tax asset comprises temporary differences attributable to:
4,937
8,849
Amounts recognised in profit or loss:
Provision for receivables impairment
Provision for employee entitlements
Accrued expenses
Inventory
Capitalised expenditure
Property Plant and Equipment
Capitalised right-of-use assets
Amounts recognised in equity:
Share Issue Costs
Deferred tax asset
Movements in Deferred Tax Asset
Opening Balance
Credited / (charged) to profit or loss
Credited / (charged) to equity
Closing Balance
46
695
3,351
640
728
8
(344)
583
474
6,135
5,151
509
475
6,135
142
2,639
202
682
63
99
1,324
-
5,151
3,682
1,595
(126)
5,151
9. DEFERRED TAX LIABILITIES
The balance comprises temporary differences attributable to:
Amounts recognised in profit or loss:
Capitalised right-of-use assets
Prepayments
Accrued income
Intangible assets
Deferred tax liability
Movements in Deferred Tax Liability
Opening Balance
Credited / (charged) to profit or loss
Closing Balance
C O N S O L I D A T E D
31-Dec-20
($’000)
31-Dec-19
($’000)
446
19
1,555
2,134
4,154
4,809
(655)
4,154
1,186
29
1,058
2,536
4,809
4,407
402
4,809
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
30,368
22,573
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.
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
Related party receivable
298,415
(2,319)
296,096
28,087
2,780
270,791
(475)
270,316
25,606
-
326,963
295,921
47
Impairment of receivables
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.
The consolidated entity has recognised an increase in the provision of $1.8m (2019: $209k) in profit or loss in
respect of impairment of receivables for the year ended 31 December 2020.
12. INVENTORIES
Finished goods are stated at the lower of cost or net realisable value. Costs are assigned to individual items
of inventory on the basis of weighted average costs. Costs of purchased inventory are determined after
deducting rebates and discounts received or receivable.
Stock in transit is stated at the lower of cost and net realisable value. Cost comprises purchase and delivery
costs, net of rebates and discounts received or receivable.
Net realisable value is the estimated selling price (plus any applicable supplier claims as per revenue
recognition policy) in the ordinary course of business less the estimated costs of completion and the
estimated costs necessary to make the sale.
Impairment of Inventories
The provision for impairment of inventories assessment requires a degree of estimation and judgement. The
level of the provision is assessed by taking into account the recent sales experience, the ageing of inventories
and other factors that affect inventory obsolescence.
Finished Goods
Less: Provision for Impairment
C O N S O L I D A T E D
31-Dec-20
($’000)
31-Dec-19
($’000)
114,956
(1,710)
121,822
(1,389)
113,246
120,433
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.
48
Leasehold improvements and plant and equipment under lease are depreciated over the unexpired period of
the lease or the estimated useful life of the assets, whichever is shorter.
An item of property, plant and equipment is derecognised upon disposal or when there is no future economic
benefit to the consolidated entity. Gains and losses between the carrying amount and the disposal proceeds
are taken to profit or loss. Any revaluation surplus reserve relating to the item disposed of is transferred directly
to retained profits.
Estimation of Useful Lives of Assets
The consolidated entity determines the estimated useful lives and related depreciation and amortisation
charges for its property, plant and equipment and finite life intangible assets. The useful lives could change
significantly as a result of technical innovations or some other event. The depreciation and amortisation
charge will increase where the useful lives are less than previously estimated lives, or technically obsolete or
non-strategic assets that have been abandoned or sold will be written off or written down.
Freehold land
Building - at cost
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
C O N S O L I D A T E D
31-Dec-20
($’000)
31-Dec-19
($’000)
18,435
53,360
71,795
4,174
(1,568)
2,606
6,881
(3,266)
3,615
252
(244)
8
6,229
78,024
18,435
9,335
27,770
1,807
(1,594)
213
5,475
(1,488)
3,987
252
(241)
11
4,211
31,981
49
Reconciliations
Reconciliations of the written down values at the beginning and end of the current and previous financial year
are set out below:
FREEHOLD
LAND
($’000)
BUILDINGS
($’000)
FITOUT
COSTS
($’000)
PLANT &
EQUIPMENT
($’000)
MOTOR
VEHICLES
($’000)
TOTAL
($’000)
Balance at 1 January 2019
25,339
19,074
Additions
Depreciation expense
-
-
5,958
(289)
Disposals
(6,904)
(15,408)
Effect of movements in exchange rate
-
-
Balance at 31 December 2019
18,435
9,335
1,174
17
(172)
(806)
-
213
Additions
Depreciation expense
Disposals
Effect of movements in exchange rate
-
-
-
-
44,025
2,425
-
-
-
(32)
-
-
Balance at 31 December 2020
18,435
53,360
2,606
1,163
4,126
(1,125)
(181)
4
15
46,765
-
10,101
(4)
(1,590)
-
-
(23,299)
5
3,987
11
31,981
1,672
(1,920)
(114)
(10)
3,615
-
48,122
(3)
(1,955)
-
-
(114)
(10)
8
78,024
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.
50
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
Total intangibles
C O N S O L I D A T E D
31-Dec-20
($’000)
31-Dec-19
($’000)
17,799
17,657
(10,545)
73
(51)
17,799
17,657
(9,203)
120
(83)
24,933
26,290
Goodwill
($’000)
Customer
Contracts
($’000)
Software
($’000)
Development
Website
($’000)
Total
($’000)
Balance at 1 January 2019
17,799
9,803
Additions
Amortisation expense
Disposal
Effect of movements in exchange rate
-
-
-
-
-
(1,349)
-
-
Balance at 31 December 2019
17,799
8,454
Additions
Amortisation expense
Disposals
Effect of movements in exchange rate
-
-
-
-
-
(1,342)
-
-
Balance at 31 December 2020
17,799
7,112
61
2
(26)
-
-
37
3
(17)
-
(1)
22
46
27,709
-
2
(11)
(1,386)
(35)
(35)
-
-
-
-
-
-
-
-
26,290
3
(1,359)
-
(1)
24,933
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
51
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. 9.15% (2019: 9.76%) post-tax discount rate; and
b. 2.5% (2019: 1.7%) for the Australian CGU and 2.5% (2019: 102.1%) for the New Zealand CGU in year 1
and 2.5% thereafter (2019: 2.5%) per annum EBITDA growth rate.
The discount rate of 9.15% 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 the key assumptions on which the recoverable
amount of division goodwill is based would not cause the cash-generating unit’s carrying amount to exceed
its recoverable amount. The sensitivities are as follows: (a) EBITDA would need to decrease by more than 75%
to trigger impairment for the Australian CGU, and 64% for the New Zealand CGU, with all other assumptions
remaining constant; b) The discount rate would be required to increase to 45.1% to trigger impairment for the
Australian CGU, and 19% for the New Zealand CGU, with all other assumptions remaining constant.
15. LEASES
All leases are accounted for by recognising a right-of-use asset and a lease liability except for:
• Leases of low value assets; and
• Leases with a duration of 12 months or less
AASB16 was adopted 1 January 2019 without restatement of comparative figures. The following policies apply
subsequent to the date of the initial application, 1 January 2019.
Lease Liabilities are measured at the present value of the contractual payments due to the lessor over the
lease term, with the discount rate determined by reference to the rate inherent in the lease unless (as is
typically the case) this is not readily determinable, in which case the group’s incremental borrowing rate on
commencement of the lease is used. Key judgements used in the calculation of the lease liability include
incremental borrowing rate of 2.9%. Variable lease payments are only included in the measurement of the
lease liability if they depend on an index or rate. In such cases the initial measurement of the lease liability
assumes the variable element will remain unchanged throughout the lease term. Other variable lease
payments are expensed in the period to which they relate.
On initial recognition the carrying value of the lease liability includes:
• amounts expected to be payable under any residual value guarantee;
•
the exercise price of any purchase option granted in favour of the group if it is reasonable certain to assess
that option; and
• any penalties payable for terminating the lease, if the term of the lease has been estimated on the basis of
the termination option being exercised.
Right of use assets are initially measured at the amount of the lease liability, reduced for any lease incentives
52
received, and increased for:
•
•
•
lease payments made at or before the commencement of the lease;
initial direct costs incurred; and
the amount of any provision recognised where the group is contractually required to dismantle, remove or
restore leased assets.
Subsequent to initial measurement lease liabilities increase as a result of interest charged at a constant rate
on the balance outstanding and are reduced for lease payments made. Right-of-use assets are amortised on
a straight-line basis over the remaining term of the lease or over the remaining economic life of the asset if,
rarely, this is judged to be shorter than the lease term.
When the group revises its estimate of the term of any lease (because, for example, it re-assesses the
probability of a lessee extension or termination option being exercised), it adjusts the carrying amount of the
lease liability to reflect the payments to make over the revised term, which are discounted using a revised
discount rate. The carrying value of the lease liabilities is similarly revised when the variable element of future
lease payments dependent on a rate or index is revised, except the discount rate remains unchanged. In
both cases an equivalent adjustment is made to the carrying value of the right-of-use asset, with the revised
carrying amount being amortised over the remaining revised lease term. If the carrying amount of the right-of-
use asset is adjusted to zero, any further reduction is recognised in profit and loss.
Nature of leasing activities
The Company leases 4 properties in Australia and New Zealand for which the lease contracts provide for
payments to increase each year by inflation or to be reset periodically to market rental rates. The table below
reflects the current proportion of lease.
Property leases with periodic uplift to market rentals
4
-
100
+/- 138
Lease
Contracts
Number
Fixed
Payments
%
Variable
Payments
%
Sensitivity
Retained Earnings impact of adopting AASB 16
Right-of-Use Asset
Opening balance
Additions
Amortisation
Effect of modification to lease terms
Variable lease payment adjustment
Effect of movements in exchange rate
Closing balance
31-Dec-20
($’000)
31-Dec-19
($’000)
-
329
C O N S O L I D A T E D
31-Dec-20
($’000)
31-Dec-19
($’000)
5,191
-
(3,065)
-
178
(28)
2,276
2,000
4,794
(1,603)
-
-
(28)
5,191
53
Lease Liabilities
Opening balance
Additions
Interest Expense
Effect of modification to lease terms
Variable lease payment adjustment
Lease payments
Foreign exchange movements
Closing balance
C O N S O L I D A T E D
31-Dec-20
($’000)
31-Dec-19
($’000)
5,676
-
190
-
178
(3,251)
(36)
2,757
2,457
4,794
120
-
-
(1,695)
(36)
5,676
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
Within 1 year
Between 1 to 5 Years
2,243
514
2,757
3,072
2,604
5,676
16. 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
Related party payables
17. BORROWINGS
250,319
228,405
22,874
-
19,767
2,760
273,193
250,932
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.
54
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
Corporate bond
Total current borrowings
(a)
Total current and non-current secured liabilities:
Receivables facility
(b)
The receivables facility is secured by a fixed charge over all the debtors
The Corporate Bond was an unsecured facility.
C O N S O L I D A T E D
31-Dec-20
($’000)
31-Dec-19
($’000)
120,000
-
90,000
39,930
120,000
129,930
120,000
90,000
(c) Receivables facility limit
180,000
130,000
The drawn amount of these facilities as at the report date is as per Note 17 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. As of February 2020, this limit was increased to $180m, being an increase of $50m
supported by the increase in the receivables balance. The Company believes that this increased facility
provides the required debt capacity to fund its present needs. The Westpac receivables facility was renewed
on 12th February 2021 for a further 12 months whilst maintaining the limit of $180m. This rollover ensures the
ongoing funding for the current financial year. The Company may adjust the amount of debt (by taking on new
debt or repaying present debt) in the future depending on funding needs and to optimise weighted average
cost of capital.
Corporate Bond
The corporate bond was repaid on 16th March 2021, the repayment being facilitated by the increase in the
Westpac receivables facility.
18. 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
13,127
227
13,354
9,866
216
10,082
1,937
2,196
55
EMPLOYEE BENEFITS
Short-Term Employee Benefits
Liabilities for wages and salaries, including non-monetary benefits, annual leave and long service leave
expected to be settled within 12 months of the reporting date are recognised in current liabilities in respect of
employees’ services up to the reporting date and are measured at the amounts expected to be paid when the
liabilities are settled.
Other Long-Term Employee Benefits
The liability for annual leave and long service leave not expected to be settled within 12 months of the
reporting date are recognised in non-current liabilities, provided there is an unconditional right to defer
settlement of the liability. The liability is measured as the present value of expected future payments to be
made in respect of services provided by employees up to the reporting date using the projected unit credit
method. Consideration is given to expected future wage and salary levels, experience of employee departures
and periods of service. Expected future payments are discounted using market yields at the reporting date
on national government bonds with terms to maturity and currency that match, as closely as possible, the
estimated future cash outflows.
Amounts not expected to be settled within the next 12 months
The current provision for employee benefits includes all unconditional entitlements where employees have
completed the required period of service and also those where employees are entitled to pro-rata payments
in certain circumstances. The entire amount is presented as current, since the consolidated entity does not
have an unconditional right to defer settlement. However, based on past experience, the consolidated entity
does not expect all employees to take the full amount of accrued leave or require payment within the next 12
months.
The following amounts reflect leave that is not expected to be taken within the next 12 months:
C O N S O L I D A T E D
31-Dec-20
($’000)
31-Dec-19
($’000)
Employee benefits obligation expected to be settled after 12 months
6,109
3,718
Lease Make Good Provision
A provision has been made for the present value of anticipated costs for future restoration of leased premises.
The provision includes future cost estimates associated with closure of the premises. The calculation of
this provision requires assumptions such as application of closure dates and cost estimates. The provision
recognised for each site is periodically reviewed and updated based on the facts and circumstances available
at the time. Changes to the estimated future costs for sites are recognised in the statement of financial
position by adjusting the asset and the provision. Reductions in the provision that exceed the carrying amount
of the asset will be recognised in profit or loss.
19. ISSUED CAPITAL
Ordinary shares are classified as equity.
Incremental costs directly attributable to the issue of new shares or options are shown in equity as a
deduction, net of tax, from the proceeds.
Ordinary shares - fully paid
172,134,046
131,790
161,615,513
62,516
Dec 2020
Shares
Dec 2020
($’000)
Dec 2019
Shares
Dec 2019
($’000)
56
Movements in ordinary share capital
DETAILS
Opening Balance
Issue of shares DRP
Issue of shares DRP
1-Jan-19
1-Mar-19
3-Jun-19
Issue of shares - Employee Share Scheme (ESS)
30-Aug-19
Issue of shares DRP
Issue of shares DRP
Issue of shares DRP
Balance
2-Sep-19
4-Oct-19
2-Dec-19
31-Dec-19
DATE
ISSUE PRICE NO OF SHARE
($’000)
$3.09
$4.83
$6.66
$5.96
$7.37
$6.88
160,714,369
57,982
104,227
604,443
67,500
44,170
44,923
35,881
323
2,918
450
265
332
247
161,615,513
62,516
Issue of shares DRP
2-Mar-20
$6.89
614,980
4,235
Issue of shares - Capital Raising
7-May-20
$6.70
7,462,687
48,618
Issue of shares DRP
Issue of shares - Share Purchase Plan (SPP)
Issue of shares DRP
Issue of shares DRP
Balance
1-Jun-20
5-Jun-20
1-Sep-20
1-Dec-20
$7.04
69,531
491
$6.63
2,264,150
15,000
$7.52
$10.17
62,756
44,429
474
456
31-Dec-20
172,134,046
131,790
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.
Capital Raise
On 7th May 2020 the Company completed a $50m share placement at an issue price of $6.70 per share,
followed by a further $15m share purchase plan on 5 June 2020 at an issue price of $6.625per share resulting
in 9,726,837 new shares being issued. The net proceeds were invested in the construction of the new
distribution centre and to support the growth of Dicker Data Financial Services and investment in working
capital. The capital raise increased the public float in the Company to approximately 33% and provided
financing headroom to facilitate capacity for future growth.
Employee Share Scheme
There were no new shares issued under any employee share scheme during the FY20 financial year as per the
previous year. During FY19 the Company announced that in recognition of all the work and contribution by our
staff free shares were offered 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 $6.660 and all
eligible staff received 150 shares each. Total number of new shares issued to staff under the Employee Share
Scheme was 67,500 shares at a value of $450k.
Share Buy-Back
There is no current on-market share buy-back.
57
Capital Risk Management
The consolidated entity’s objectives when managing capital is to safeguard its ability to continue as a going
concern whilst enhancing long-term shareholder value through funding its business at an optimised weighted
average cost of capital. In seeking to optimise its weighted average cost of capital, the consolidated entity may
adjust its capital structure from time to time, including varying the amount of dividends paid to shareholders,
by returning capital to shareholders, by issuing new shares or taking on or reducing debt. The consolidated
entity is subject to certain financing arrangements and covenants and meeting these is given priority in all
capital risk management decisions. There have been no events of default on the financing arrangements
during the financial year.
The capital risk management policy remains unchanged from the 31 December 2019 Annual Report.
20. RESERVES
Capital Profits Reserve (Pre-CGT)
Foreign currency reserve
C O N S O L I D A T E D
31-Dec-20
($’000)
31-Dec-19
($’000)
369
(99)
270
369
265
634
Capital Profits Reserve (Pre-CGT)
The capital profits reserve records non-taxable profits on sale of investments.
Foreign currency reserve
The reserve is used to recognise exchange differences arising from translation of the financial statements
of foreign operations to Australian dollars. It is also used to recognise gains and losses on hedges of the net
investments in foreign operations.
Movements in reserves
Opening Balance
Foreign currency translation
Closing Balance
21. DIVIDENDS
634
(364)
270
527
107
634
Dividends declared or paid during the financial year
59,546
43,518
Type
FY
Payment
Date
Dividend
per share
(in cents)
Dividend
per share
(in 000’s)
FY
Payment
Date
Dividend
per share
(in cents)
Dividend
per share
(in 000’s)
Final
2019
2-Mar-20
Interim
2020
1-Jun-20
Interim
2020
1-Sep-20
Special
Dividend
2020
-
0.130
0.075
0.075
-
21,010
2018
1-Mar-19
12,727
2019
3-Jun-19
12,902
2019
2-Sep-19
-
2019
4-Oct-19
Interim
2020
1-Dec-20
0.075
12,907
2019
2-Dec-19
0.070
0.050
0.050
0.050
0.050
11,250
8,041
8,071
8,077
8,079
0.355
59,546
0.270
43,518
The tax rate that dividends have been franked is 30% (2019: 30%)
58
Franking credit balance:
C O N S O L I D A T E D
31-Dec-20
($’000)
31-Dec-19
($’000)
Franking credits available for subsequent financial years based on a tax rate of 30%
(2019: 30%)
12,704
12,754
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
22. FAIR VALUE DISCLOSURES
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure
purposes, the fair value is based on the price that would be received to sell an asset or paid to transfer a
liability in an orderly transaction between market participants at the measurement date; and assumes that the
transaction will take place either: in the principle market; or in the absence of a principal market, in the most
advantageous market.
Fair value is measured using the assumptions that market participants would use when pricing the asset
or liability, assuming they act in their economic best interest. For non-financial assets, the fair value
measurement is based on its highest and best use. Valuation techniques that are appropriate in the
circumstances and for which sufficient data are available to measure fair value, are used, maximising the use
of relevant observable inputs and minimising the use of unobservable inputs.
Assets and liabilities measured at fair value are classified, into three levels, using a fair value hierarchy that
reflects the significance of the inputs used in making the measurements. Classifications are reviewed each
reporting date and transfers between levels are determined based on a reassessment of the lowest level input
that is significant to the fair value measurement.
For recurring and non-recurring fair value measurements, external valuers may be used when internal
expertise is either not available or when the valuation is deemed to be significant. External valuers are selected
based on market knowledge and reputation. Where there is a significant change in fair value of an asset or
liability from one period to another, an analysis is undertaken, which includes a verification of the major inputs
applied in the latest valuation and a comparison, where applicable, with external sources of data.
Fair Value Measurement Hierarchy
The consolidated entity is required to classify all assets and liabilities, measured at fair value, using a three
level hierarchy, based on the lowest level of input that is significant to the entire fair value measurement, being:
Level 1: Quoted prices (unadjusted) in active markets for identical assets or liabilities that the entity can access
at the measurement date;
Level 2: Inputs other than quoted prices included within Level 1 that are observable for the asset or liability,
either directly or indirectly; and
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.
59
The fair value of Borrowings in Note 17, 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.
23. 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.
Financial Assets and Liabilities
Financial Assets
Cash and cash equivalents
Trade and other receivables
Total Financial Assets
Financial Liabilities
Trade and other payables
Borrowings
Lease liabilities
Total Financial Liabilities
60
C O N S O L I D A T E D
31-Dec-20
($’000)
31-Dec-19
($’000)
30,368
22,573
326,963
357,331
295,921
318,494
273,193
120,000
2,757
250,932
129,930
5,676
395,950
386,538
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 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 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; and
• managing credit risk related to financial assets.
The tables below reflect an undiscounted contractual maturity analysis for financial liabilities. Financial
61
guarantee liabilities are treated as payable on demand since the company has no control over the timing of any
potential settlement of the liability.
Cash flows realised from financial instruments reflect management’s expectation as to the timing of
realisation.
Actual timing may therefore differ from that disclosed. The timing of cash flows presented in the table to
settle financial liabilities reflect the earliest contractual settlement dates and do not reflect management’s
expectations that banking facilities will roll forward.
Financial liability maturity analysis
Financial liabilities due for payment
Trade and other payables
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
Lease liabilities
Within 6 Months
6 Months - 1 Year
1 - 2 Years
2 - 5 Years
C O N S O L I D A T E D
31-Dec-20
($’000)
31-Dec-19
($’000)
273,193
250,932
-
-
-
-
-
-
273,193
250,932
120,000
132,060
-
-
-
1,709
2,404
605
120,000
136,778
1,647
596
514
-
2,757
1,497
1,575
2,157
447
5,676
Total contractual outflows
395,950
393,386
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.
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
62
Interest Rate Risk
Floating rate instruments
Receivable finance facility
Corporate Bond
120,000
-
90,000
39,930
120,000
129,930
Due to the current interest rate environment the Company has not entered into any interest rate swap at 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.
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 $840,000 lower/higher (2019: $909,510 lower/higher) as a result of higher/lower interest
payments. The company constantly analyses its interest rate exposure. Within this analysis consideration is
given to alternative financing and the mix of fixed and variable interest rates.
Foreign Exchange Risk
The consolidated entity undertakes certain transactions denominated in foreign currency and is exposed to
foreign currency risk through foreign exchange rate fluctuations. Foreign exchange risk arises from future
commercial transactions and recognised financial assets and financial liabilities denominated in a currency
that is not the entity’s functional currency. The risk is measured using sensitivity analysis and cash flow
forecasting.
In order to protect against exchange rate movements, the consolidated entity has entered into forward foreign
exchange contracts. These contracts are hedging highly probable forecasted cash flows for the ensuing
financial year. Management has a risk management policy to hedge between 30% and 80% of anticipated
foreign currency transactions for the subsequent 4 months.
The maturity, settlement amounts and the average contractual exchange rates of the consolidated entity’s
outstanding forward foreign exchange contracts at the reporting date was as follows:
Sell
Australian dollars
Average
exchange rates
Sell New
Zealand dollars
Average
exchange rates
31st Dec
2020
($’000)
31st Dec
2019
($’000)
31st Dec
2020
($’000)
31st Dec
2019
($’000)
31st Dec
2020
($’000)
31st Dec
2019
($’000)
31st Dec
2020
($’000)
31st Dec
2019
($’000)
Buy US dollars
Maturity:
0 - 3 months
29,794
24,101
0.7398
0.6886
2,496
1,325
0.6825
0.6576
0 - 3 months
Buy Australian dollars
Maturity:
0 - 3 months
0 - 3 months
-
-
-
-
-
-
-
-
2,194
1,337
0.9415
0.9423
-
-
-
-
The carrying amount of the consolidated entity’s foreign currency denominated financial assets and financial
liabilities at the reporting date was as follows:
63
Consolidated
Cash at bank
Trade receivables
Trade payables
Net statement of financial position exposure
31-Dec-20
US$’000
NZ$’000
304
11,148
3,872
16,467
(22,327)
(15,458)
(10,875)
4,881
Based on the financial instruments held at 31 December 2020, a strengthening/weakening of AU$ against US$
and NZ$ would have resulted in the following changes to the Groups reported profit and loss and/or equity.
E Q U I T Y
P R O F I T O R L O S S
Sensitivity Analysis
(Effects in Thousands)
US$ (5% movement)
NZ$ (5% movement)
Strengthening
Weakening
Strengthening
Weakening
-
(587)
-
587
544
(244)
(544)
244
24. 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
C O N S O L I D A T E D
31-Dec-20
$
31-Dec-19
$
6,950,408
5,530,507
21,309
21,187
658,816
525,511
7,630,533
6,077,205
25. 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
265,000
260,000
Other services - BDO
Indirect tax services
Tax and corporate services
217,000
-
235,000
207,000
452,000
207,000
Other services - Other BDO Network Firms
Tax & corporate services
16,000
13,000
64
The BDO entity performing the audit of the group transitioned from BDO East Coast Partnership to BDO Audit
Pty Ltd on 1 August 2020. The disclosures include amounts received or due and receivable by BDO East Coast
Partnership, BDO Audit Pty Ltd and their respective related entities.
26. CONTINGENT LIABILITIES
The directors are not aware of any contingent liabilities related to the Consolidated entity as at the report date.
Capital Commitments
Capital expenditure commitments contracted for at reporting date but not recognised as liabilities:
Property, plant and equipment
Lease Commitments
C O N S O L I D A T E D
31-Dec-20
($’000)
31-Dec-19
($’000)
3,507
37,914
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.
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
56,838
56,838
53,683
53,683
415,989
537,413
390,564
394,122
131,790
369
11,132
143,291
383,222
457,614
377,318
380,889
62,515
369
13,840
76,724
65
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
Principal place
of business
/ country of
incorporation
New Zealand
Australia
Australia
O W N E R S H I P
I N T E R E S T
2020
%
100%
100%
100%
2019
%
100%
100%
100%
29. RECONCILIATION OF PROFIT AFTER INCOME TAX TO NET CASH
Profit after income tax
Adjustments for:
Depreciation
Amortisation on intangibles
Amortisation on Leased assets
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 current tax liabilities
Net cash from operating activities
66
C O N S O L I D A T E D
31-Dec-20
($’000)
31-Dec-19
($’000)
57,182
54,311
1,958
1,359
3,065
70
50
7,187
(32,886)
(984)
(655)
22,450
4,494
(3,912)
59,378
1,620
1,388
-
285
(11,915)
(14,944)
(57,389)
(1,470)
401
29,801
2,277
7,164
11,529
30. NON-CASH INVESTING AND FINANCING ACTIVITIES
Shares issued under dividend reinvestments plan (DRP)
5,656
4,084
31. EARNINGS PER SHARE
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of Dicker Data Limited,
excluding any costs of servicing equity other than ordinary shares, by the weighted average number of ordinary
shares outstanding during the financial year, adjusted for bonus elements in ordinary shares issued during the
financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to
take into account the after income tax effect of interest and other financing costs associated with dilutive
potential ordinary shares and the weighted average number of shares assumed to have been issued for no
consideration in relation to dilutive potential ordinary shares.
Profit after income tax
57,182
54,311
Profit after income tax attributable to the owners of Dicker Data Limited
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
168,106,292
161,231,566
Weighted average number of ordinary shares and options granted are used as the
denominator in calculating diluted earnings per share
168,106,292
161,231,566
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.
Cents
33.95
33.95
Cents
33.69
33.69
Key management personnel:
Disclosures relating to key management personnel are set out in note 24 and the remuneration report in the
directors’ report.
Transactions with related parties:
There were a number of related party transactions during the year with the entity Rodin Cars Ltd, a New
Zealand based entity owned by David Dicker. The transactions included provision of marketing and IT services
and sales of goods and services which are billed to Rodin Cars Ltd on a monthly basis at commercial market
rates. Total amount billed to Rodin Cars Ltd for FY20 was $157,815. Dicker Data Financial Services Pty Ltd
has also provided finance to Rodin Cars Ltd at arms length commercial rates. The amount payable as at 31
December 2020 was $1,015,412.32. The principal amount financed was $3,993,922.57. In addition to these
transactions some payments have been made on behalf of director David Dicker throughout the year that were
subsequently reimbursed, or funds were deposited in advance to cover these expenses. Total amount of funds
paid on behalf of David Dicker by the Company as at 31 December 2020 was $2,780,466.46.
67
33. SUBSEQUENT EVENTS
Rollover of Westpac Receivables Facility
The Westpac receivables facility was renewed on 12th February 2021 for a further 12months with a limit of
$180m. This rollover ensures the ongoing funding for the current financial year.
68
DIRECTORS’ DECLARATION
In the directors’ opinion:
•
•
•
•
the attached financial statements and notes thereto comply with the Corporations Act 2001 (Cth),
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 2020 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
• There were reasonable grounds to believe that the Company and the controlled entities identified
in Note 28 of the financial statements will be able to meet any obligations or liabilities to which
they are or may become subject by virtue of the Deed of Cross Guarantee between the Company
and those controlled entities pursuant to ASIC Class Order 98/1418.
This declaration has been made after receiving the declarations required to be made to the directors
by the Chief Executive Officer and Chief Financial Officer in accordance with section 295A of the
Corporations Act 2001 (Cth) for the financial year ended 31 December 2020.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 (Cth).
On behalf of the directors
David Dicker
CEO and Chairman
Sydney, 25 February 2021
69
AUDITOR’S DECLARATION
OF INDEPENDENCE
70
Level 11, 1 Margaret St Sydney NSW 2000 Australia Tel: +61 2 9251 4100 Fax: +61 2 9240 9821 www.bdo.com.au BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation. 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 2020, 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 Director BDO Audit Pty Ltd Sydney, 25 February 2021 INDEPENDENT
AUDITOR’S REPORT
71
Level 11, 1 Margaret St Sydney NSW 2000 Australia Tel: +61 2 9251 4100 Fax: +61 2 9240 9821 www.bdo.com.au BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation. 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 2020, 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 2020 and of its financial performance for the year ended on that date; and (ii) Complying with Australian Accounting Standards and the Corporations Regulations 2001. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s responsibilities for the audit of the Financial Report section of our report. We are independent of the Group in accordance with the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code. We confirm that the independence declaration required by the Corporations Act 2001, which has been given to the directors of the Company, would be in the same terms if given to the directors as at the time of this auditor’s report. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. INDEPENDENT
AUDITOR’S REPORT
72
Key audit matters Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters. Carrying value of goodwill Key audit matter How the matter was addressed in our audit As disclosed in Note 14 to the financial report, Goodwill amounted to $17,799,000 at 31 December 2020. This was determined to be a key audit matter as the determination of the "Value in Use" of each cash generating unit (CGU) and whether or not an impairment charge is necessary involved judgements by management about the future growth rates of the business in each 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. Our audit procedures to address the key audit matters included, but not limited to: Evaluating and challenging the assumptions used in the discounted cash flow analysis, in particular the key assumptions for each CGU; Recalculating management’s discount rates based on external data (where available); Applying a sensitivity analysis on the Group's discounted cash flow models for each cash generating unit 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. 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 2020, 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 INDEPENDENT
AUDITOR’S REPORT
73
The directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error. In preparing the financial report, the directors are responsible for assessing the ability of the group to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the directors either intend to liquidate the Group or to cease operations, or has no realistic alternative but to do so. Auditor’s responsibilities for the audit of the Financial Report Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report. A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website (http://www.auasb.gov.au/Home.aspx) at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf This description forms part of our auditor’s report. Report on the Remuneration Report Opinion on the Remuneration Report We have audited the Remuneration Report included in pages 24 to 28 of the directors’ report for the year ended 31 December 2020. In our opinion, the Remuneration Report of Dicker Data Limited, for the year ended 31 December 2020, complies with section 300A of the Corporations Act 2001. Responsibilities The directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. BDO Audit Pty Ltd Tim Aman Director Sydney, 25 February 2020 SHAREHOLDER INFORMATION
Additional information required under ASX Listing Rule 4.10 and not shown elsewhere in this Annual Report is
as follows. This information is current as at 3 February 2021.
ORDINARY SHARE CAPITAL
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
45
732
898
3,660
6,437
138,407,604
80.41
15,762,531
6,678,664
8,768,076
2,517,171
9.16
3.88
5.09
1.46
11,772
172,134,046
100.00
UNQUOTED OPTIONS
The Company had no unquoted options on issue as at 3 February 2021.
LESS THAN MARKETABLE PARCELS OF ORDINARY SHARES
There were 171 holders of less than a marketable parcel of ordinary shares. The number of shares in
aggregate of these unmarketable parcels is 1,444.
74
20 LARGEST HOLDERS OF QUOTED EQUITY SECURITIES
Shareholder
Mr David John Dicker
Ms Fiona Tudor Brown
J P Morgan Nominees Australia Pty Limited
Citicorp Nominees Pty Limited
Hsbc Custody Nominees (Australia) Limited
Fiona Brown
National Nominees Limited
Certane CT Pty Ltd
Mr Vladimir Mitnovetski
Jeremy And Lynette King Superannuation Pty Ltd
Neweconomy Com Au Nominees Pty Limited
HSBC Custody Nominees (Australia) Limited - A/C 2
Certane Ct Pty Ltd
Sandhurst Trustees Ltd
Bnp Paribas Noms Pty Ltd
Diales Pty Limited
Mrs Rochelle Gilmore
Mrs Leona Reddall & Mr Benjamin Reddall & Mr Matthew Reddall
Broadgate Investments Pty Ltd
Mcniven & Co Pty Ltd
TOTAL
SUBSTANTIAL HOLDERS
Number of
Ordinary Fully
Paid Shares
% of Issued
Capital
60,740,000
53,754,532
5,118,586
3,744,300
3,554,187
1,279,717
1,123,931
926,021
905,000
600,000
416,017
395,848
375,480
305,178
305,080
270,000
254,824
241,685
233,155
217,034
35.29
31.23
2.97
2.18
2.06
0.74
0.65
0.54
0.53
0.35
0.24
0.23
0.22
0.18
0.18
0.16
0.15
0.14
0.14
0.13
134,760,575
78.29
The names of the Substantial Shareholders listed in the Company’s Register as at 3 February 2021:
Shareholder
Mr David John Dicker
Ms Fiona Tudor Brown
VOTING RIGHTS
Number of
Ordinary Fully
Paid Shares
% of Issued
Capital
60,740,000
53,754,532
35.29
31.23
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.
75
Dicker Data Limited
ABN 95 000 9696 362
Registered Office
238 Captain Cook Drive
Kurnell NSW 2231
T. 1800 688 586
F. 1800 688 486
www.dickerdata.com.au