Annual Report 2011
CONTENTS
Corporate Directory
Chairman’s Report
Managing Director’s Report
Euroz Securities Limited Directors’ Profi les
Euroz Securities Limited Operating Divisions
Westoz Funds Management
Euroz Group Community Activities
Financial Report 2011
Directors’ Report
Auditor’s Independence Declaration
Consolidated Income Statement
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Audit Report
Corporate Governance Statement
Shareholder Information
Euroz Securities Limited Contact Details
1
2
4
6
8
9
10
11
12
22
23
24
25
26
27
28
57
58
60
67
68
CORPORATE DIRECTORY
Euroz Limited
ABN 53 000 364 465
Directors
Peter Diamond
Executive Chairman
Andrew McKenzie
Managing Director
Jay Hughes
Executive Director
Doug Young (appointed 8 February 2011)
Executive Director
Greg Chessell (appointed 8 February 2011)
Executive Director
Company Secretary
Anthony Hewett
Principal registered offi ce and place of business
Level 18 Alluvion
58 Mounts Bay Rd
Perth Western Australia 6000
Telephone +61 8 9488 1400
Facsimile +61 8 9488 1477
Email info@euroz.com.au
Website www.euroz.com.au
Share and debenture registers
Computershare Investor Services Pty Ltd
Level 2 Reserve Bank Building
45 St Georges Terrace
PERTH WA 6000
Telephone: 1300 787 575
Auditor
PKF Mack & Co
Chartered Accountants
Level 2
35 Havelock Street
WEST PERTH WA 6005
Telephone: +61 8 9322 2798
Bankers
Westpac Banking Corporation
109 St Georges Terrace
PERTH WA 6000
Securities Exchange Listings
Euroz Limited shares are listed on
the Australian Securites Exchange
(ASX: EZL and EZLO).
EUROZ LIMITED Annual Report 2011 1
CHAIRMAN’S REPORT
The Directors of Euroz Limited are pleased to announce a pre-tax profi t of $34,409,119
(2010: $33,502,495) and a net profi t after tax of $26,566,040 (2010: $26,331,750). This profi t
equates to earnings per share for the fi nancial year to 30 June 2011 on a normalised basis of
18.2 cents.
The Directors have declared a fi nal dividend of 15 cents per share (fully franked) in addition to
the interim dividend of 3 cents per share fully franked.
The increased profi t from last year’s result was pleasing given the continued turbulence
encountered in fi nancial markets during the year. This result again refl ects the strong business
base that Euroz Limited has achieved in the past eleven years and continues to give us
confi dence in our strategy going forward.
Euroz Securities Limited has delivered solid returns during an extremely volatile year where the market direction
completely reversed on numerous occasions. Our key Research, Institutional Dealing, Retail Dealing and Corporate
Finance departments are improving their co-ordinated approach to our clients and the Euroz Group as a whole.
Although market conditions were volatile it was pleasing that during the year performance from Westoz Funds
Management in terms of returns for investors improved from the previous year. Funds under management as at 30 June
2011 were approximately $286m. The gross investment return for the year was 14.4% for Westoz Investment Company
Limited and 26.7% for Ozgrowth Limited. Since inception, both investment companies have returned above average
returns.
The Directors believe that our funds management strategy will continue to reap benefi ts for shareholders and investors
alike in the long term and through all market conditions. Euroz Limited will continue to invest in Westoz Funds
Management products and new initiatives. At the date of this report Euroz Limited has invested approximately $52m in
Westoz Investment Company Limited and Ozgrowth Limited.
The fi nancial year ending 30 June 2011 represented an improvement on the previous year but still provided its challenges
with continued market volatility. Since year end market conditions have improved around the globe but as always we
remain cautious about predicting outcomes in the short term.
A pleasing milestone that was reached during the year was when the Company paid out its fi nal dividend for the year
ended 30 June 2011. This represents a total of $130m of fully franked dividends paid to our shareholders over the last
eleven years. We are extremely proud of reaching this milestone and hope to maintain our ongoing theme of rewarding
shareholders with consistent dividend returns.
The Directors believe that our long-term future remains on track and that our expansion initiatives, consistent strategy,
and strong balance sheet will provide the group with a solid platform for growth in the medium to long term.
The contribution of our employees this year has again been a signifi cant factor in our continued profi tability. Our
employees’ motivation is also supported by their strong share ownership in the company which is currently around 50%
of Euroz Limited.
The Directors would like to thank our three core stakeholders: our shareholders, staff and clients for their support and
efforts in what has been a challenging year. Euroz Limited is currently trading profi tably, has no debt and with a strong
balance sheet. With our long term growth initiatives, the Euroz Group is in a strong position in the medium and long-term
to capitalise on behalf of its shareholders.
PETER DIAMOND
Executive Chairman
2 EUROZ LIMITED Annual Report 2011
Euroz Limited Profi t Before Tax & Net Profi t After Tax
1H Profit Before Tax
2H Profit Before Tax
Net Profit After Tax
Jun-01
Jun-02
Jun-03
Jun-04
Jun-05
Jun-06
Jun-07
Jun-08
Jun-09
Jun-10
Jun-11
Euroz Limited Dividend History
1H Dividend Per Share
2H Dividend Per Share
Jun-01
Jun-02
Jun-03
Jun-04
Jun-05
Jun-06
Jun-07
Jun-08
Jun-09
Jun-10
Jun-11
60
50
40
30
20
10
0
30
25
20
15
10
5
0
Euroz Limited NTA Per Share
Cents Per Share
Jun-01
Jun-02
Jun-03
Jun-04
Jun-05
Jun-06
Jun-07
Jun-08
Jun-09
Jun-10
Jun-11
100
80
60
40
20
0
n
o
i
l
l
i
m
$
e
r
a
h
S
r
e
P
s
t
n
e
C
e
r
a
h
S
r
e
P
s
t
n
e
C
Westoz Funds Management Pty Ltd Funds Under Management
n
o
i
l
l
i
m
$
400
350
300
250
200
150
100
50
0
NTA after unrealised
Jun 01
Jun 02
Jun 03
Jun 04
Jun 05
Jun 06
Jun 07
Jun 08
Jun 09
Jun 10
Jun 11
EUROZ LIMITED Annual Report 2011 3
MANAGING DIRECTOR’S REPORT
Euroz Limited is a Western Australian focused company that provides highly specialized
stockbroking, corporate fi nance and funds management services.
The past fi nancial year was again an extremely volatile year for our clients and for our
businesses. Despite this volatility our business remained profi table through every single
month of the year. Our lower cost structure and strong business platform remain leveraged
to the upside and so whilst there were quiet months we also experienced individual months
of high profi tability.
The net result of the year’s activities was a NPAT of $26.5m which in the context of our 11 years
of consecutive profi ts was our second best ever result on this measure.
Whilst we rarely comment on our competitors we note that this past fi nancial year has seen
unprecedented competition from smaller players pushing up into our space and larger
investment banks pushing down. It is our view that we are uniquely positioned with an
extremely strong balance sheet and a long track record within our small to mid cap market niche. We foresee that ever
increasing regulatory costs, higher general cost structures and staffi ng pressures are already starting to impact these same
competitors and the service they can offer to our part of the market.
Major fi nancial highlights for the past fi nancial year include:
- Payment of 18¢ in fully franked dividends (up 50%)
- Normalised net profi t of $25.6m (up 58%)
- NTA of 84¢ per share (up 12%)
This year our staff numbers have increased from 64 to 70 which further highlights our commitment to our people and the
strength of our business model. We have seen numerous promotions across our business and we see the increasingly fl at
nature of our organizational structure as a great positive for the Group.
Our staff remain our greatest asset and we remain absolutely committed to providing them with a secure, profi table and
enjoyable workplace.
Euroz Limited
Euroz Limited (ASX code: EZL) is the listed holding company for all our businesses, is a major investor in our two Listed
Investment Companies (LIC’s) and also invests in its own right.
At 30 June 2011 our investments in Westoz Investment Company Limited and Ozgrowth Limited had a combined cost
value of $51.3m and a look through NTA value of $65.6m.
Euroz Securities
Euroz Securities is our stockbroking business that provides highly specialised research, dealing and corporate fi nance
services which in turn provides essential deal fl ow and investment opportunities for all parts of our Group. We have
further improved the communication and co-operation between departments to ensure a better integrated approach to
researching, dealing and raising capital for the companies we support.
Highlights of the past year for Euroz Securities include:
- ASX turnover of $5.2bn
- Consistent innovation in new and existing research coverage
- Improved institutional dealing capabilities
- Equity capital market raisings of $1.2bn (up 66%)
- Incremental expansion of our retail dealing operations
4 EUROZ LIMITED Annual Report 2011
WESTOZ FUNDS MANAGEMENT
Westoz Funds Management
Westoz Funds Management is responsible for $286m of funds under management at 30 June 2011, which is invested
through two Listed Investment Companies; Westoz Investment Company Limited and Ozgrowth Limited. Both companies
have enjoyed solid investment returns and paid attractive dividends in the past year.
Westoz Investment Company Limited commenced trading on the ASX in September 2009 after 4 years as an unlisted
company. Westoz Investment Company Limited reported investment returns for the past year of 14.4% and has paid 11¢
in fully franked dividends for the past year.
Ozgrowth Limited has been listed on the ASX since January 2008 and reported investment returns of 26.7% and fully
franked dividends of 1.7¢ for the past year.
Westoz Investment Company Limited and Ozgrowth Limited have now paid $59m in dividends to shareholders since
inception.
In summary
Perhaps the best overall measure of our performance is by calculating our overall shareholder return. This longer term
shareholder return can be demonstrated by looking at the returns from an investment of $10,000 in Euroz Limited in
November 2000. We are pleased to report this investment would be worth $107,740 as at 30 June 2011 from a combination
of dividends, a bonus option issue and share price performance.
Our business exists to service our shareholders, our clients and our staff and as always I would like to thank all of these
stakeholders for their contributions and loyalty during the past year.
Andrew McKenzie
Managing Director
Euroz Group Organisational chart as at 30 June 2011
EUROZ LIMITED Annual Report 2011 5
EUROZ SECURITIES LIMITED DIRECTORS’ PROFILES
ANDREW CLAYTON Executive Director
AUSTEN FRESSON Executive Director
DOUGLAS YOUNG Executive Director
Andrew is a research analyst specialising
in resource companies. He has worked
in the stockbroking industry since 1994.
Andrew holds a Bachelor of Science
(Hons) in Geology, as well as a Diploma
in Finance from the Financial Services
Institute of Australia (FINSIA).
ANDREW MCKENZIE Managing Director
Andrew holds a Bachelor of Economics
(B. Econ) is an Associate of FINSIA and
is a Fellow of the Australian Institute of
Company Directors (FAICD). Andrew has
worked in the stockbroking industry
since 1991.
ANTHONY BRITTAIN Executive Director
to
Anthony is the Chief Operating and
Financial Offi cer. Prior
joining
Euroz he spent 7 years at a WA
stockbroker holding roles
including
Executive General Manager and Head
of Operations. Prior to that Anthony
worked
in London and Singapore
for 7 years with a UK fund manager.
Anthony holds a Bachelor of Commerce
(UWA), is a member of the Institute
of Chartered Accountants
(CA), a
Certifi ed Information Systems Auditor
(CISA), holds a Grad. Diploma
in
Applied Finance and Investment from
FINSIA, is a Graduate of the Australian
Institute of Company Directors and is a
member (Master Stockbroking) of the
Stockbrokers Association of Australia
(SAA).
Austen has over ten years of mergers,
acquisitions and divestitures experience
in both the UK and Australia, focused on
the upstream oil and gas sector. Austen
holds a Bachelor of Law and a Bachelor
of Commerce (UWA) . He is a member of
the Institute of Chartered Accountants in
Australia (CA) and FINSIA (Grad. Diploma
in Applied Finance & Investment).
BEN LAIRD Executive Director
Ben holds a Bachelor of Science degree
and a post-graduate Diploma
in
Finance with FINSIA. He is also a Level
2 candidate for the Chartered Financial
Analyst (CFA) program and has been
with Euroz since 2001.
BRIAN BERESFORD Executive Director
Prior to joining Euroz, Brian was a
corporate fi nance partner at PwC,
which he joined in 2007 when PwC
acquired GEM Consulting (GEM). Brian
was a director and shareholder of
GEM, and had previously worked for
Arthur Andersen in London. He has
managed capital raisings, and provided
advisory services to clients across the
resources, mining services, engineering,
technology and manufacturing sectors.
Brian holds a Masters in Finance from
London Business School, and a Bachelor
of Commerce and Bachelor of Laws
(UWA).
Doug is Head of Corporate Finance. He
has over 25 years of corporate fi nance
experience, covering mergers and
acquisitions, debt and equity raisings
in domestic and international fi nancial
markets, corporate restructuring and
other corporate fi nance transactions. He
holds a Bachelor of Commerce (UWA),
is a graduate in Applied Finance from
FINSIA, a Fellow of FINSIA and a Fellow
of the Australian Society of Certifi ed
Practising Accountants (CPA).
GREG CHESSELL Executive Director
Greg is Head of Research and is our
senior resources analyst. He spent 10
years working as a geologist in WA prior
to entering the stockbroking industry in
1995. Greg holds a B.App.Sc. in Geology
and a Grad. Dip. Business qualifi cation.
GAVIN ALLEN Executive Director
Prior to joining Euroz Securities, Gavin
was a senior manager in the Corporate
Finance division of a major accounting
fi rm, specialising in the fi nancial analysis
of mergers and acquisitions. Gavin has a
Bachelor of Commerce, is a member of
the Institute of Chartered Accountants
in Australia (CA) and holds a Chartered
Financial Analyst (CFA) designation.
JAMES MACKIE Executive Director
in
the
James has been working
stockbroking
since 1998.
industry
He holds a Bachelor of Commerce in
Finance and a Graduate Diploma also
in Finance. His role is servicing high net
worth investors on the retail desk.
6 EUROZ LIMITED Annual Report 2011
EUROZ SECURITIES LIMITED DIRECTORS’ PROFILES
JAY HUGHES Executive Director
NICK MCGLEW Executive Director
RUSSELL KANE Executive Director
is an
Jay has worked in stockbroking since
1986, starting his career on the trading
Institutional Dealer
fl oor. He
specialising
in promoting Australian
stocks to international clients. Jay holds
a Graduate Diploma in Applied Finance
and Investment from FINSIA. He was
recognised as an affi liate of ASX in
December 2000 and was admitted in
May 2004 as a Practitioner Member
(Master Stockbroking) of the SAA.
JON BISHOP Executive Director
Jon is a resource analyst focused upon
both the mining and oil & gas sectors.
He has more than 10 years technical
and commercial experience within the
petroleum and minerals industries. Jon
holds a Bachelor of Science (Hons) in
Geology, as well as a Graduate Diploma
Investment
in Applied Finance and
from FINSIA.
MAURICE ARGENTO Executive Director
Maurice has more than 25 experience
in corporate advisory and fi nance roles,
in Australia and
in Europe. Prior to
joining Euroz Securities, Maurice was a
Partner with PwC and Arthur Andersen
and founder and Managing Director of
Mainsheet Corporate. His experience
spans corporate strategy, mergers and
acquisitions, equity raisings and corporate
fi nance. Maurice is a Fellow of the Institute
of Chartered Accountants (CA) and holds a
Bachelor of Commerce.
Nick has over 12 years experience in
mergers, acquisitions, corporate and
commercial law and corporate fi nance
with major fi rms in Australia and the
United States. He holds a Bachelor in
Economics (UWA) and Master of Laws
(NYU, Corporate).
Russell has worked in the stockbroking
industry since 1994. He holds a
Bachelor of Business and is responsible
for servicing both domestic institutions
and high net worth clients, with a
particular emphasis on WA based
resources and industrials stocks.
OLIVER FOSTER Executive Director
ROB BLACK Executive Director
Oliver is a resource analyst specialising
in the oil & gas sector. He worked
offshore as a Petroleum Geologist in
the North West of Australia & Asia for
two and a half years previously. Oliver
holds a Bachelor of Science in Geology,
as well as a Graduate Diploma in Applied
Finance and Investment from FINSIA.
PETER DIAMOND Executive Chairman
Peter has worked in the stockbroking
industry since 1986. He is responsible
for dealing with institutional and high
net worth clients both domestically
and overseas. Peter is also chairman of
Westoz Investment Company Limited
and Ozgrowth Limited. He holds a
Bachelor of Business and is a Member
of Certifi ed Practicing Accountants
Australia (CPA).
RICHARD CALDOW Executive Director
Richard holds a Bachelor of Commerce
with a double major in Accounting
& Finance. Richard has worked as an
advisor in the stockbroking industry
since 1992 and previously worked in
chartered accounting.
in
the
Rob has been working
stockbroking
since 1995
industry
and has spent time based in Sydney,
Melbourne and London. Rob
is
Head of Institutional Dealing and is
responsible for servicing domestic and
international
institutions. Rob holds
a Bachelor of Business with majors
in Finance and Accounting, and is a
Graduate of the Australian Institute of
Company Directors.
SIMON YEO Executive Director
and specialises
is Head of Retail Dealing
Simon
and
in servicing
high net worth clients and domestic
in the
institutions. He has been
stockbroking
industry since 1993.
Simon has a Bachelor of Commerce
(UWA) and was previously a chartered
accountant and member of
the
Institute of Chartered Accountants
(CA).
NB. Jon Bishop, Ben Laird, James Mackie
and Austen Fresson werer appointed as
Executive Directors of Euroz Securities
Limited in July 2011.
Facing Page Top row L-R: A. Clayton, , A. McKenzie, A. Brittain, A. Fresson, B. Laird
Bottom row L-R: B. Beresford, D. Young, G. Chessell, G. Allen, J. Mackie
This page Top row L-R: J. Hughes, J. Bishop, M.Argento, N. McGlew, O. Foster
Bottom row L-R: P. Diamond, R. Caldow, R. Kane, R. Black, S.Yeo
EUROZ LIMITED Annual Report 2011 7
EUROZ SECURITIES LIMITED OPERATING DIVISIONS
RETAIL DEALING
CORPORATE FINANCE
Team of highly experienced and qualifi ed private
client advisors
(cid:23) Our corporate business is focused on developing
strong, long term relationships with our clients
(cid:23)
(cid:23)
(cid:23)
Focus on dealing with high net worth individuals
Extensive research support - high quality research
on WA based resource and industrial companies
enable our advisors to provide quality investment
and trading advice
(cid:23)
Specialised broking allows
-
-
Close interaction between research analysts
and private client advisors
Timely communication of ideas with clients
(cid:23)
Sophisticated investors are able to participate in
many of our corporate capital raisings
(cid:23) We pride ourselves on offering a tailored service to
our clients based on:
-
-
-
Quality research
Personalised service
Wealth creation
(cid:23)
Client services
-
-
Exclusive web based research
Web based access to portfolios and ledgers
(cid:23)
Clients are provided with specialised Corporate
Advisory services in:
-
-
-
-
Capital Raisings
Mergers and Acquisitions
Strategic Planning and Reviews
Privatisation and Reconstructions
(cid:23)
Established track record in raising equity capital via:
-
-
-
Initial Public Offerings (IPO)
Placements
Rights Issues
(cid:23)
Euroz has raised $1.2bn in new equity this financial
year
EQUITIES RESEARCH
INSTITUTIONAL DEALING
(cid:23)
(cid:23)
Team of six experienced analysts with access to the
latest online news and fi nancial information
Based on fundamental analysis, strict fi nancial
modelling and regular company contact
(cid:23)
(cid:23)
Largest
Western Australia
institutional dealing desk based
in
Team of nine institutional dealers with an extensive
client base of Australian and International investors
(cid:23) Goal: Identify and maximise equity investment
opportunities for our clients
Approach: Intimate knowledge of the companies
we cover
Coverage: Broad cross section of mostly WA based
industrial & resource companies
(cid:23)
Research Products
-
-
-
-
Daily Briefi ng: Overnight market updates
Weekly Informer: Compilation of all company
reports throughout the preceding week
Quarterly and/or Semi-annual Review: Regular
in book
coverage on midcap companies
format
Company Reports: Detailed analysis on
companies as opportunities emerge
(cid:23) Distribution network strength -
long standing
relationships with major institutional investors in the
small to mid cap market
(cid:23) Western Australia’s geographic isolation makes it
diffi cult for institutional investors to maintain close
contact with companies based here - investors can
rely on our “on the ground” information
(cid:23)
Institutional dealing team “highly focused” on
providing the following services:
-
-
-
-
-
Quality advice and idea generation
Effi cient execution
Regular company contact
Site visits
Roadshows
8 EUROZ LIMITED Annual Report 2011
WESTOZ FUNDS MANAGEMENT
Westoz Funds Management is responsible for $286m of funds under management at 30 June 2011, which is invested
through two Listed Investment Companies; Westoz Investment Company Limited and Ozgrowth Limited. Both companies
have enjoyed solid investment returns and paid attractive dividends in the past year.
Westoz Investment Company Limited commenced trading on the ASX in September 2009 after 4 years as an unlisted
company. Westoz Investment Company Limited reported investment returns for the past year of 14.4% and declared 11¢
in fully franked dividends for the past year.
Ozgrowth Limited has been listed on the ASX since January 2008 and reported investment returns of 26.7% and fully
franked dividends of 1.4¢ for the past year.
Westoz Investment Company Limited and Ozgrowth Limited have now paid $59m in dividends to shareholders since
inception.
PHILIP REES, CHIEF INVESTMENT OFFICER (WESTOZ FUNDS MANAGEMENT)
Mr Philip Rees is Chief Investment Offi cer of the Manager and is responsible for the operation
and development of the Manager’s business.
Mr Rees has worked in a range of roles focused on Australian investment markets for the last
24 years. He has previously managed large institutional investment portfolios and developed
several early stage investment opportunities until he joined Westoz in April 2005.
EUROZ LIMITED Annual Report 2011 9
EUROZ GROUP COMMUNITY ACTIVITIES
2011 has seen the ongoing development of two of the Euroz Group of Companies initiatives; namely the Euroz
Charitable Foundation and the Euroz Green Office Initiative.
Euroz Charitable Foundation
The Euroz Group has been fortunate to have been a beneficiary of strong investment markets and a strong local
economy over many years. This prompted us to consider ways in which we could make a contribution to the broader
community and as a result the Euroz Charitable Foundation was formed in 2007. The Foundation represents our
ongoing commitment to our local community.
During the past four and a half years all businesses within the Euroz Group and many of our staff members have made
donations to this Foundation.
The Foundation’s assets have continued to grow strongly and in the past year we are pleased to have supported the
following Western Australian charities; Autism West, Princess Margaret Hospital Foundation, Riding for the Disabled
Association of Western Australia, Foodbank and Ngala Community Services, among others. During the year we also
donated a forklift to Foodbank which was delivered to them in April.
As part of Euroz’ ongoing commitment to community involvement we have a staff volunteer program whereby Euroz
staff volunteer their time during office hours assisting particular charities. We recently participated in a busy bee for
the Riding for the Disabled Association of Western Australia. Euroz staff are very enthusiastic in their support of such
initiatives and consider volunteer experiences such as these very rewarding.
We would like to thank all staff for their continued support of the Euroz Charitable Foundation.
Euroz staff participating in the Riding for the Disabled Association of Western Australia busy bee.
Euroz Green Offi ce Initiative
In recognition of changing business and community attitudes toward increasing environmental responsibility in both
the home and office we have formalised some simple environmental policies for the Euroz Group of companies. The
Euroz Group of companies seeks to promote an environmentally aware workplace through a series of key objectives.
Our move to a new, premium 4.5 star NABERS Energy rated building in early September 2010 is consistent with our
green office initiatives and has facilitated the achievement of some of our targets whereby we:
•
•
•
•
•
Aim to increase recycling and reduce waste
Aim to reduce the use of power
Aim to reduce energy consumption
Aim to purchase environmentally friendly products
Are educated, engaged and aware of sustainable office management initiatives.
This initiative has been strongly supported by members of the Euroz Group of companies since its inception four
years ago.
10 EUROZ LIMITED Annual Report 2011
FINANCIAL REPORT 2011
EUROZ LIMITED Annual Report 2011 11
DIRECTORS’ REPORT
Your Directors present their report on the consolidated group consisting of Euroz Limited and the entities it controlled at
the end of, or during the year ended 30 June 2011.
Directors and Executive Disclosures
The following persons were Directors of Euroz Limited at any time during or since the end of the fi nancial year and up to
the date of this report:
EXECUTIVE CHAIRMAN
Peter Diamond
EXECUTIVE DIRECTORS
Andrew McKenzie - Managing Director
Jay Hughes – Director
Doug Young – Director (appointed 8 February 2011)
Greg Chessell – Director (appointed 8 February 2011)
Executives with the greatest authority for strategic direction and management
The following persons were the executives (other than Directors of the parent entity) with the greatest authority for the
strategic direction and management of the consolidated entity (“specifi ed executives”) during the fi nancial year and up to
the date of this report:
NAME
R Caldow
S Yeo
K Paganin
O Foster
M Hepburn
R Kane
A Clayton
A Brittan
G Allen
R Black
N McGlew
M Argento
B Beresford
B Laird
J Bishop
J Mackie
A Fresson
P Rees
D Woods
POSITION
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Director
Company Secretary
EMPLOYER
Euroz Securities Limited
Euroz Securities Limited
Euroz Securities Limited (resigned 22 July 2010)
Euroz Securities Limited
Euroz Securities Limited (resigned 8 February 2011)
Euroz Securities Limited
Euroz Securities Limited
Euroz Securities Limited
Euroz Securities Limited
Euroz Securities Limited
Euroz Securities Limited (appointed 1 July 2010)
Euroz Securities Limited (appointed 14 February 2011)
Euroz Securities Limited (appointed 21 March 2011)
Euroz Securities Limited (appointed 5 July 2011)
Euroz Securities Limited (appointed 5 July 2011)
Euroz Securities Limited (appointed 5 July 2011)
Euroz Securities Limited (appointed 6 July 2011)
Westoz Funds Management Pty Ltd
Westoz Funds Management Pty Ltd (appointed 1 July 2010)
Anthony Hewett held the position at the end of the fi nancial year. Anthony was appointed Company Secretary in 2007 and
brings to the role more than a decade of experience in Operations, Risk and Compliance having worked for a variety of fi rms
in Perth.
Principal Activities
During the year the principal activities of the Euroz group consisted of:
(a)
(b)
(c)
Stockbroking;
Corporate Finance; and
Funds Management.
Review of Results
The Directors of Euroz Limited are pleased to announce a consolidated pre tax profi t of $34,409,119 for the year ended 30
June 2011.
The consolidated net profi t after tax was $26,566,040 compared with the 2010 year’s consolidated net profi t after tax of
$26,331,750. This profi t represents basic earnings per share of 19.38 cents versus 20.07 cents in the 2010 year.
12 EUROZ LIMITED Annual Report 2011
DIRECTORS’ REPORT
The Directors have declared a fi nal dividend of 15 cents per share fully franked which, combined with the interim dividend
of 3 cent per share, represents a total dividend of 18 cents per share fully franked.
Review of operations
Stockbroking
Principal Trading
Funds Management
Unallocated revenue
Segment revenues
2010
2011
$
$
40,841,201
49,225,611
13,738,675
9,547,185
10,192,515
9,154,027
11,765,435
9,880,174
Segment results
2011
$
9,916,246
1,574,237
5,661,366
9,414,191
2010
$
13,227,400
215,117
6,333,425
6,555,808
77,806,997
76,537,826
26,566,040
26,331,750
These results have been achieved through strong contributions from all divisions of the business.
Financial Position
The net assets of the consolidated group have in increased from $109,417,413 at 30 June 2010 to $118,518,350 at 30 June
2011. This increase has largely resulted from adjustments to the carrying value of investments.
The company’s strong fi nancial performance has enabled it to continue to pay dividends to shareholders during the year
while maintaining a healthy working capital ratio. The consolidated group’s working capital, being current assets less
current liabilities, has increased from $45,191,982 in 2010 to $45,289,428 in 2011.
During the past fi ve years the company has invested in expanding each of its business units to secure its long term success.
In particular it has made strategic investments in the investment products of Westoz Funds Management Pty Ltd. The
company’s holdings in associated subsidiaries are $26,450,000 as at 30 June 2011.
The Directors believe the company is in a strong and stable fi nancial position to expand and grow its current operations.
Earnings per share
Basic earnings per share
Diluted earnings per share
Dividends - Euroz Limited
Dividends paid or provided for during the fi nancial year were as follows:
Interim ordinary dividend of 3 cent (2009 – 2 cents) per fully paid ordinary share
was paid on 28 January 2011.
Provision for fi nal ordinary dividend for 30 June 2011 of 15 cents (2010 – 10 cents)
per fully paid ordinary share paid on 29 July 2011.
2011
Cents
19.38
16.66
2010
Cents
20.07
18.49
2011
$
2010
$
4,296,456
2,633,325
21,134,214
13,257,014
25,430,670
15,890,339
Signifi cant changes in the state of affairs
There have been no signifi cant changes in the state of affairs of the consolidated group during the year.
Share options
A total of 4,844,623 options were exercised during the year at an exercise price of $0.75. At the date of this report, there are
6,357,713 unissued ordinary shares of Euroz Limited under option.
After balance date events
The Directors are not aware of any other matter or circumstance subsequent to 30 June 2011 that has signifi cantly affected,
or may signifi cantly affect:
(a) the consolidated group’s operations in future fi nancial years; or
(b) the results of those operations in future fi nancial years; or
(c) the consolidated group’s state of affairs in future fi nancial years.
EUROZ LIMITED Annual Report 2011 13
DIRECTORS’ REPORT
Likely developments and expected results of operations
The Directors are confi dent that a strong balance sheet and established business platforms will support the company in
increasingly volatile market conditions. However, it is likely that we will experience increasingly volatile trading conditions
in the next fi nancial year.
Further information on likely developments in the operations of the consolidated group and the expected results of
operations have not been included in this report because the Directors believe it would be likely to result in unreasonable
prejudice to the consolidated group.
Environmental regulation
The consolidated group is not subject to signifi cant environmental regulation in respect of its operations.
Information on Directors
Information on Directors
Particulars of Directors'
shares
in
interests
and options of Euroz
Limited
Director
Experience
Special responsibilities
and qualifi cations
P Diamond
Chairman
Mr Diamond has worked
in the stockbroking
industry since 1986.
Executive Chairman
Chairman of Audit Committee
Chairman of Remuneration Committee
Holds a Bachelor of Business Degree (BBus) and
is a member of CPA Australia.
A McKenzie
Managing
Director
Mr McKenzie has worked
in the stockbroking
industry since 1991.
Managing Director
Member of Audit Committee
Member of Remuneration Committee
Ordinary
Shares
10,000,000
9,928,500
J Hughes
Director
Mr Hughes has worked in
the stockbroking industry
since 1986.
Holds a Bachelor of Economics Degree, is an
Associate of the Financial Services Institute
of Australia and is a Fellow of the Australian
Institute of Company Directors.
Member of the Remuneration Committee
9,928,500
Holds a Graduate Diploma in Applied
Finance and Investment from FINSIA. He
was recognised as an affi liate of the ASX
in December 2000 and was admitted
in May 2004 as a Practitioner Member
(Master Stockbroking) of the Stockbrokers
Association of Australia.
Options
-
-
-
D Young
Director
Mr Young has worked in
corporate fi nance since
1984.
Head of Corporate Finance of our 100% owned
subsidiary Euroz Securities Limited.
4,202,001
-
He holds a Bachelor of Commerce degree
from the University of Western Australia and
a Graduate Diploma in Applied Finance from
FINSIA, is a Fellow of FINSIA and a Fellow of
the Australian Society of Certifi ed Practising
Accountants.
G Chessell
Director
Mr Chessell has worked in
the stockbroking industry
since 1996.
Head of Research of our 100% owned subsidiary
Euroz Securities Limited and is our senior
resources analyst.
3,102,000
-
Greg holds a B.App.Sc. degree in geology and a
Grad. Dip. Business qualifi cation.
14 EUROZ LIMITED Annual Report 2011
DIRECTORS’ REPORT
Meetings of Directors
The numbers of meetings of the company’s board of Directors held during the year ended 30 June 2011, and the numbers
of meetings attended by each director were:
Committee Meetings
Directors Meetings
Audit
Remuneration
Number
eligible
to attend
Number
attended
Number
eligible
to attend
Number
attended
Number
eligible
to attend
Number
attended
13
13
13
5
5
13
9
10
3
5
1
1
N/A
N/A
N/A
1
1
N/A
N/A
N/A
12
12
12
N/A
N/A
12
12
12
N/A
N/A
Director
Peter Diamond
Andrew McKenzie
Jay Hughes
Greg Chessell
Doug Young
Remuneration Report (Audited)
This Remuneration Report outlines the director and executive remuneration arrangements of the Company and the Group
in accordance with the requirements of the Corporations Act 2001 and its regulations. It also provides the remuneration
disclosures required by paragraphs Aus 25.4 to Aus 25.7.2 of AASB 124 Related Party Disclosures, which have been transferred
to the Remuneration Report in accordance with Corporations Regulation 2M.6.04. For the purposes of this report Key
Management Personnel of the group are defi ned as those persons having authority for the strategic management and
direction of the group including any director (whether executive or otherwise) of the parent company, and includes the fi ve
executives in the parent and the group receiving the highest remuneration.
Directors & Executives Remuneration
Remuneration packages are set at levels that are intended to attract and retain executives capable of managing the
consolidated entity’s operations. The board undertakes regular reviews of its performance and the performance of the
board against expectations made at the start of the year. Performance related bonuses are available to executives based
on their performance and that of the company.
Remuneration Policy
The remuneration policy has been tailored to align the interests of shareholders, Directors and executives. There have
been three methods applied in achieving this aim, the fi rst being a participation in the profi t share pool, the second being
commission and the third being Head of Retail incentive. The company believes this policy to have been effective in
increasing shareholder wealth since inception.
The following table shows the gross revenue, profi ts and dividends for the last fi ve years for the listed entity, as well as the
share price at the end of the respective fi nancial years.
2007
$
Revenue (including net profi t/(loss) of associates) 63,805,598
22,171,176
Net profi t after tax
4.4
Share price at year end
17,500,000
Dividends paid or recommended
2008
$
121,889,088
41,931,627
4
34,560,000
2009
$
43,288,071
10,335,056
0.93
9,625,081
2010
$
76,080,544
26,331,750
1.28
15,890,339
2011
$
77,806,998
26,566,040
1.62
25,430,670
The objective of the company’s remuneration framework is to ensure reward for performance is competitive and appropriate
to the results delivered. The Board / Remuneration Committee ensure that executive rewards satisfy the following key
criteria for good reward governance practices:
-
-
-
-
-
competitiveness and reasonableness
acceptability to shareholders
performance linked
transparency
capital management.
The company has structured an executive remuneration framework that is market competitive and complimentary to the
reward strategy of the organisation.
Directors’ fees
No Directors fees are paid.
EUROZ LIMITED Annual Report 2011 15
DIRECTORS’ REPORT
Base pay
Directors and executives are offered a competitive base and participation in the profi t share pool. Base pay for senior
executives is reviewed semi annually by the Remuneration Committee to ensure that executive’s pay is competitive with
the market, and is also reviewed upon promotion or additional responsibilities.
There is no guarantee of base pay increases fi xed in any senior executive or Directors contracts.
Executives are offered a competitive salary that comprises of a base salary inclusive of superannuation and a combination
of some of the following, dependant on the terms of the individual employment contract:
-
-
-
Participation in the profi t share pool
Commission
Head of Retail incentive
Equity based payments
There is no entitlement to equity based remuneration.
Commission
Executives that do not participate in the profi t share pool are paid either a bonus or commission on the income they have
generated for the company. This is calculated on a sliding scale set out in the employment contract. Any salary paid to the
employee is deducted from the commission payment.
Short term incentives
Cash incentives (profi t share) are calculated on 30% of pre tax profi t from Euroz Securities Limited and are payable in
December and / or June. Using these criteria ensures reward is only available when value has been created for shareholders.
The distribution of the profi t share is leveraged to performance as described below.
Profi t share pool
The Remuneration Committee determines the allocation of the 30% pre tax profi t on an ongoing basis. In consultation with
relevant department heads the committee uses the following informal criteria to assist in the allocation
-
-
-
-
-
-
Ability to perform individual tasks within the relevant department
Ability to add value and innovate beyond the job standard specifi cations
Development of new and existing client relationships
Ability to interact with other relevant departments as part of a larger team approach
Relevant industry salary benchmarking
General requirements to attract and retain staff.
The three executives on the Remuneration Committee are also entitled to participate in the profi t share pool. In these
circumstances two members assess the performance of the third member.
Head of Retail (HOR) incentive
The calculation of this payment is based on the net income generated by the members of the Retail Desk and overall
management of the Retail Desk.
Details of remuneration
Details of the nature and amount of each element of the emoluments of each director of Euroz Limited and each of the
specifi ed executives of the consolidated entity are set out in the following tables.
Executive Directors of Euroz Limited
2011
Short Term
Post-
employment
Name
P Diamond
A McKenzie
J Hughes
D Young (appointed 8 Feb ‘11)
G Chessell (appointed 8 Feb ‘11)
Base salary
$
275,000
275,000
275,000
244,615
229,231
Profi t Share/
bonus
$
Other
benefi ts
$
Super-
annuation
$
Performance
related
%
Total
$
590,000
590,000
590,000
590,000
590,000
31,225
30,911
28,549
25,891
17,757
25,000
25,000
25,000
50,000
25,000
921,225
920,911
918,549
910,506
861,988
64%
64%
64%
65%
68%
TOTAL
1,298,846
2,950,000
134,333
150,000 4,533,179
Current Directors did not receive any Directors fees.
16 EUROZ LIMITED Annual Report 2011
DIRECTORS’ REPORT
Executive Directors of Euroz Limited
2010
Name
P Diamond
A McKenzie
J Hughes
Total
Short Term
Profi t Share/
bonus
$
495,000
495,000
495,000
Base salary
$
275,001
275,001
277,127
827,129
1,485,000
Other
benefi ts
$
26,909
21,680
20,183
68,772
Post-
employment
Super-
annuation
$
24,999
24,999
22,873
Total
$
821,909
816,680
815,183
Performance
related
%
60%
61%
61%
72,871
2,453,772
Current Directors did not receive any Directors fees.
2011
Short Term
Base
salary
$
73,393
73,394
36,878
199,801
146,002
155,803
132,506
155,803
146,083
190,000
185,000
170,447
204,801
98,585
71,200
Profi t
Share/
bonus
$
-
132,019
Other
benefi ts
$
12,825
22,603
Commis-
sion
$
261,704
384,615
-
505,334
325,000
348,872
288,872
149,436
288,872
398,498
210,000
300,000
205,000
205,000
190,000
150,000
15,265
16,002
14,766
6,137
13,632
14,988
13,580
13,561
7,775
9,965
4,692
450
-
-
-
-
-
-
-
-
-
-
-
-
-
Post-
employ’t
Super-
annuation
$
15,199
15,199
23,216
15,199
24,412
14,611
Total
$
363,121
627,830
565,428
555,265
535,288
474,052
9,193
297,272
14,611
14,173
25,000
25,000
49,553
15,199
6,757
4,293
472,918
573,742
438,580
523,561
432,775
434,965
300,034
225,943
Perform-
ance
related
%
72
82
0
59
65
61
50
61
69
48
57
47
47
63
66
Name
R Caldow*
S Yeo*
K Paganin*
O Foster*
A Clayton*
R Kane*
M Hepburn*
G Allen *
R Black *
A Brittain *
N McGlew *
P Rees**
D Woods **
M Argento*
B Beresford*
TOTAL
2,539,696 3,191,569
171,575
646,319
271,615 6,820,774
* Director of Euroz Securities Limited
** Director of Westoz Funds Management Pty Ltd
EUROZ LIMITED Annual Report 2011 17
DIRECTORS’ REPORT
Specifi ed executives of the consolidated group
2010
Short Term
Post-
employ’t
Base
salary
$
69,130
Profi t
Share/
bonus
$
Other
benefi ts
$
Commis-
sion
$
Super-
annuation
$
-
18,426
231,601
190,001
495,000
65,720
265,001
240,000
188,275
156,541
146,541
144,595
190,060
146,002
125,001
175,000
195,000
24,000
495,000
495,000
180,000
210,000
190,000
205,000
150,000
220,000
230,000
180,000
200,000
170,084
200,000
8,856
20,602
20,668
24,331
14,604
14,182
17,330
17,160
7,240
13,995
14,263
5,459
6,103
1,687
-
347,375
-
-
-
-
-
-
-
-
-
-
-
-
Perform-
ance
related
%
69
69
78
61
61
44
53
50
52
40
54
58
47
47
52
Total
$
336,300
718,857
477,611
805,669
809,331
409,604
395,184
378,332
393,162
372,240
404,997
394,263
385,459
426,103
386,687
17,143
25,000
19,914
25,000
50,000
26,725
14,461
24,461
26,407
24,940
25,000
24,999
25,000
25,000
14,916
Name
R Caldow*
G Chessell*
S Yeo*
K Paganin*
D Young*
O Foster*
A Clayton*
R Kane*
M Hepburn*
A Brittain *
G Allen *
R Black *
N McGlew *
P Rees**
D Woods **
Total
2,466,951 3,474,000
204,906
578,976
368,966 7,093,799
* Directors of Euroz Securities Limited
** Directo r of Westoz Funds Management Pty Ltd
Service Agreements
Remuneration and other terms of employment for the Directors and specifi ed executives are formalised in service
agreements. Each of these agreements provide for the provision of performance related cash bonuses and other benefi ts.
Other major provisions of the agreements relating to remuneration are set out below.
Peter Diamond, Chairman
•
•
•
Term of contract – ongoing employment contract
Base Salary, inclusive of superannuation for the year ended 30 June 2011 of $300,000 (2010 - $300,000) plus profi t share.
Payment on termination of employment by the employer, other than for gross misconduct – three months salary.
Andrew McKenzie, Managing Director
•
•
•
Term of contract – ongoing employment contract
Base salary, inclusive of superannuation for the year ended 30 June 2011 of $300,000 (2010 - $300,000) plus profi t share.
Payment on termination of employment by the employer, other than for gross misconduct – three months salary.
Jay Hughes, Director
•
•
•
Term of contract – ongoing employment contract
Base salary, inclusive of superannuation for the year ended 30 June 2011 of $300,000 (2010 - $300,000) plus profi t share.
Payment on termination of employment by the employer, other than for gross misconduct – three months salary.
Greg Chessell, Director Euroz Securities Limited
•
•
•
Term of contract – ongoing employment contract
Base salary, inclusive of superannuation for the year ended 30 June 2011 of $300,000 (2010 - $215,000) plus profi t share.
Payment on termination of employment by the employer, other than for gross misconduct – three months salary.
Doug Young, Director Euroz Securities Limited
•
•
•
Term of contract – ongoing employment contract
Base salary, inclusive of superannuation for the year ended 30 June 2011 $300,000 (2010 - $290,000) plus profi t share.
Payment on termination of employment by the employer, other than for gross misconduct – three months salary.
Karl Paganin, Director Euroz Securities Limited (resigned 22 July 2010)
•
Term of contract ongoing employment contract but resigned 22 July 2010. Eligible termination payment of $500,000.
18 EUROZ LIMITED Annual Report 2011
DIRECTORS’ REPORT
Richard Caldow, Director Euroz Securities Limited
•
•
•
Term of contract – ongoing employment contract
Base salary, inclusive of superannuation for the year ended 30 June 2011 of $80,000 (2010 - $80,000) plus commission.
Payment on termination of employment by the employer, other than for gross misconduct – commission earned.
Simon Yeo, Director Euroz Securities Limited
•
•
Term of contract ongoing employment contract
Base salary, inclusive of superannuation for the year ended 30 June 2011 of $80,000 (2010 - $80,000) plus HOR bonus
and commission.
Payment on termination of employment by the employer, other than for gross misconduct – commission earned.
•
Oliver Foster, Director Euroz Securities Limited
•
•
•
Term of contract – ongoing employment contract
Base salary, inclusive of superannuation for the year ended 30 June 2011 of $215,000 (2010 - $215,000) plus profi t share.
Payment on termination of employment by the employer, other than for gross misconduct – three months salary.
Mark Hepburn, Director Euroz Securities Limited (resigned 8 February 2011)
•
Term of contract – ongoing employment contract but resigned 8 February 2011.
Andrew Clayton, Director Euroz Securities Limited
•
•
•
Term of contract – ongoing employment contract
Base salary, inclusive of superannuation for the year ended 30 June 2011 of $171,002 (2010 - $171,002) plus profi t share.
Payment on termination of employment by the employer, other than for gross misconduct – three months salary.
Russell Kane, Director Euroz Securities Limited
•
•
•
Term of contract – ongoing employment contract
Base salary, inclusive of superannuation for the year ended 30 June 2011 of $171,002 (2010 - $171,002) plus profi t share.
Payment on termination of employment by the employer, other than for gross misconduct – three months salary.
Anthony Brittain, Director Euroz Securities Limited
•
•
•
Term of contract – ongoing employment contract
Base salary, inclusive of superannuation for the year ended 30 June 2011 of $215,000 (2010 - $215,000) plus profi t share.
Payment on termination of employment by the employer, other than for gross misconduct – three months salary.
Gavin Allen, Director Euroz Securities Limited
•
•
•
Term of contract – ongoing employment contract
Base salary, inclusive of superannuation for the year ended 30 June 2011 of $171,002 (2010 - $171,002) plus profi t share.
Payment on termination of employment by the employer, other than for gross misconduct – three months salary.
Robert Black, Director Euroz Securities Limited
•
•
•
Term of contract – ongoing employment contract
Base salary, inclusive of superannuation for the year ended 30 June 2011 of $170,000 (2010 - $150,000) plus profi t share.
Payment on termination of employment by the employer, other than for gross misconduct – three months salary.
Nick McGlew, Director Euroz Securities Limited (appointed 1 July 2010)
•
•
•
Term of contract – ongoing employment contract
Base salary, inclusive of superannuation for the year ended 30 June 2011 of $210,000 (2010 - $200,000) plus profi t share.
Payment on termination of employment by the employer, other than for gross misconduct – three months salary.
Maurice Argento, Director Euroz Securities Limited (appointed 14 February 2011)
•
•
•
Term of contract – ongoing employment contract
Base salary, inclusive of superannuation contract of $300,000 per annum plus profi t share.
Payment on termination of employment by the employer, other than for gross misconduct – three months salary.
Brian Beresford, Director Euroz Securities Limited (appointed 21 March 2011)
•
•
•
Term of contract – ongoing employment contract
Base salary, inclusive of superannuation contract of $300,000 per annum plus profi t share.
Payment on termination of employment by the employer, other than for gross misconduct – three months salary.
Phil Rees, Director Westoz Funds Management Pty Ltd
•
•
•
Term of contract – ongoing employment contract minimum period 1 year
Base salary, inclusive of superannuation for the year ended 30 June 2011 of $220,000 (2010 - $220,000) plus bonus
Payment on termination of employment by the employer other than for gross misconduct – three months salary.
Dermot Woods, Director Westoz Funds Management Pty Ltd (appointed 1 July 2010)
Term of contract – ongoing employment contract minimum period 1 year
•
Base salary, inclusive of superannuation for the year ended 30 June 2011 of $220,000 (2010 - $190,000) plus bonus
•
Payment on termination of employment by the employer other than for gross misconduct – three months salary.
•
EUROZ LIMITED Annual Report 2011 19
DIRECTORS’ REPORT
Share based compensation
No options or shares were issued to Directors or specifi ed executives during the year ended 30 June 2011.
Share holdings
The number of shares held at the date of this report by each director of Euroz Limited and each of the key management
personnel of the consolidated group, including their personal-related entities, are set out below.
Directors of Euroz Limited
Ordinary shares
P Diamond
A McKenzie
J Hughes
G Chessell (appointed 8 February 2011)
D Young (appointed 8 February 2011)
Key management personnel of the consolidated entity
Ordinary shares
R Caldow
S Yeo
K Paganin (resigned 22 July 2010)
O Foster
P Rees
M Hepburn (resigned 8 February 2011)
R Kane
A Clayton
A Brittain
G Allen
R Black
N McGlew (appointed 1 July 2010)
D Woods (appointed 1 July 2010)
M Argento (appointed 14 February 2011)
B Beresford (appointed 21 March 2011)
B Laird (appointed 5 July 2011)
J Bishop (appointed 5 July 2011)
J Mackie (appointed 5 July 2011)
A Fresson (appointed 6 July 2011)
Loans to Directors and executives
No. of ordinary
shares
No. of options over
ordinary shares
10,000,000
9,928,000
9,928,000
3,102,000
4,202,001
4,950,000
3,520,000
4,905,522
2,301,200
1,100,000
1,222,000
2,359,377
2,100,000
303,400
500,000
1,800,000
225,291
373,260
1,000,000
2,000,000
655,000
91,112
847,000
260,511
-
-
-
-
-
-
-
418,791
-
-
122,200
233,000
100,000
-
41,200
300,000
-
-
-
-
60,000
-
-
-
No loans were made to Directors of Euroz Limited and the key management personnel of the consolidated group, including
their personally related entities during the year.
Indemnifying Offi cers
During the fi nancial year, Euroz Limited paid a premium to insure the Directors and secretaries of the company and its
Australian based controlled entities. The liabilities insured include costs and expenses that may be incurred in defending
civil or criminal proceedings that may be brought against the offi cers in their capacity as offi cers of entities in the
consolidated group.
Proceedings on Behalf of Company
No person has applied for leave of court to bring proceedings on behalf of the company or intervene in any proceedings to
which the company is a party for the purpose of taking responsibility on behalf of the company for all or any part of those
proceedings.
The company was not a party to such proceedings during the year.
Non-Audit Services
The following non-audit services were provided by the group’s auditor, PKF Mack & Co. The Directors are satisfi ed that
the provision of non-audit services is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001. The nature and scope of each type of non-audit service provided means that auditor independence
was not compromised.
PKF Mack & Co. received or are due to receive the following amounts for the provision of non-audit services:
Tax compliance services
20 EUROZ LIMITED Annual Report 2011
$
15,000
DIRECTORS’ REPORT
Auditor’s Independence Declaration
The lead auditor’s independence declaration for the year ended 30 June 2011 has been received and follows the Directors report.
This report is made in accordance with a resolution of the Directors.
Peter Diamond
Chairman
Jay Hughes
Director
15 August 2011
EUROZ LIMITED Annual Report 2011 21
AUDITOR’S INDEPENDENCE DECLARATION
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:36)(cid:88)(cid:71)(cid:76)(cid:87)(cid:82)(cid:85)(cid:182)(cid:86)(cid:3)(cid:44)(cid:81)(cid:71)(cid:72)(cid:83)(cid:72)(cid:81)(cid:71)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3)(cid:39)(cid:72)(cid:70)(cid:79)(cid:68)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)
(cid:56)(cid:81)(cid:71)(cid:72)(cid:85)(cid:3)(cid:54)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:22)(cid:19)(cid:26)(cid:70)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:36)(cid:70)(cid:87)(cid:3)(cid:21)(cid:19)(cid:19)(cid:20)(cid:3)
(cid:55)(cid:82)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:39)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:40)(cid:88)(cid:85)(cid:82)(cid:93)(cid:3)(cid:47)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)
(cid:3)
(cid:3)
(cid:44)(cid:3)(cid:71)(cid:72)(cid:70)(cid:79)(cid:68)(cid:85)(cid:72)(cid:3)(cid:87)(cid:75)(cid:68)(cid:87)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:69)(cid:72)(cid:86)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:80)(cid:92)(cid:3)(cid:78)(cid:81)(cid:82)(cid:90)(cid:79)(cid:72)(cid:71)(cid:74)(cid:72)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:69)(cid:72)(cid:79)(cid:76)(cid:72)(cid:73)(cid:15)(cid:3)(cid:71)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:3)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:22)(cid:19)(cid:3)(cid:45)(cid:88)(cid:81)(cid:72)(cid:3)(cid:21)(cid:19)(cid:20)(cid:20)(cid:3)(cid:87)(cid:75)(cid:72)(cid:85)(cid:72)(cid:3)(cid:75)(cid:68)(cid:86)(cid:3)
(cid:69)(cid:72)(cid:72)(cid:81)(cid:29)(cid:3)
(cid:3)
(cid:49)(cid:82)(cid:3) (cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:68)(cid:89)(cid:72)(cid:81)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:82)(cid:85)(cid:3) (cid:76)(cid:81)(cid:71)(cid:72)(cid:83)(cid:72)(cid:81)(cid:71)(cid:72)(cid:81)(cid:70)(cid:72)(cid:3) (cid:85)(cid:72)(cid:84)(cid:88)(cid:76)(cid:85)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3) (cid:68)(cid:86)(cid:3) (cid:86)(cid:72)(cid:87)(cid:3) (cid:82)(cid:88)(cid:87)(cid:3) (cid:76)(cid:81)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3)
(cid:38)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:36)(cid:70)(cid:87)(cid:3)(cid:21)(cid:19)(cid:19)(cid:20)(cid:3)(cid:76)(cid:81)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:30)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)
(cid:49)(cid:82)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:68)(cid:89)(cid:72)(cid:81)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:68)(cid:81)(cid:92)(cid:3)(cid:68)(cid:83)(cid:83)(cid:79)(cid:76)(cid:70)(cid:68)(cid:69)(cid:79)(cid:72)(cid:3)(cid:70)(cid:82)(cid:71)(cid:72)(cid:3)(cid:82)(cid:73)(cid:3)(cid:83)(cid:85)(cid:82)(cid:73)(cid:72)(cid:86)(cid:86)(cid:76)(cid:82)(cid:81)(cid:68)(cid:79)(cid:3)(cid:70)(cid:82)(cid:81)(cid:71)(cid:88)(cid:70)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:85)(cid:72)(cid:79)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:17)(cid:3)
(cid:11)(cid:76)(cid:12)(cid:3)
(cid:3)
(cid:11)(cid:76)(cid:76)(cid:12)(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:51)(cid:46)(cid:41)(cid:3)(cid:48)(cid:36)(cid:38)(cid:46)(cid:3)(cid:9)(cid:3)(cid:38)(cid:50)(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:54)(cid:44)(cid:48)(cid:50)(cid:49)(cid:3)(cid:41)(cid:40)(cid:53)(cid:48)(cid:36)(cid:49)(cid:44)(cid:54)(cid:3)
(cid:51)(cid:36)(cid:53)(cid:55)(cid:49)(cid:40)(cid:53)(cid:3)
(cid:3)
(cid:20)(cid:24)(cid:3)(cid:36)(cid:56)(cid:42)(cid:56)(cid:54)(cid:55)(cid:3)(cid:21)(cid:19)(cid:20)(cid:20)(cid:3)
(cid:58)(cid:40)(cid:54)(cid:55)(cid:3)(cid:51)(cid:40)(cid:53)(cid:55)(cid:43)(cid:15)(cid:3)
(cid:58)(cid:40)(cid:54)(cid:55)(cid:40)(cid:53)(cid:49)(cid:3)(cid:36)(cid:56)(cid:54)(cid:55)(cid:53)(cid:36)(cid:47)(cid:44)(cid:36)(cid:3)
(cid:3)
(cid:20)(cid:24)(cid:3)
22 EUROZ LIMITED Annual Report 2011
CONSOLIDATED INCOME STATEMENT
For the year ended 30 June 2011
Revenue
Share of net profi t (loss) of associates
Employee benefi ts expense
Depreciation and amortisation expenses
Regulatory expenses
Consultancy expenses
Conference and seminar expenses
Brokerage & underwriting expense
Communication expenses
Carrying amount of principal trading securities sold
Other expenses
Profi t for the period
Income tax expense
Profi t for the period
Basic earnings per share
Diluted earnings per share
Notes
2011
$
2010
$
4
5
5
6
33
33
70,012,360
67,111,208
7,794,638
(23,214,359)
(1,145,045)
(274,756)
(2,008,990)
(1,244,605)
(3,182,413)
(288,980)
(7,870,761)
(4,167,970)
8,969,336
(18,924,567)
(185,064)
(566,639)
(1,736,041)
(1,062,262)
(3,391,695)
(308,789)
(13,562,514)
(2,840,478)
34,409,119
(7,843,079)
33,502,495
(7,170,745
26,566,040
26,331,750
Cents
19.38
16.66
Cents
20.07
18.49
The above Income Statements should be read in conjunction with the accompanying notes.
EUROZ LIMITED Annual Report 2011 23
CONSOLIDATED STATEMENT OF
COMPREHENSIVE INCOME for the year ended 30 June 2011
Profi t for the period
Other comprehensive income
Gain/(loss) on available for sale investment taken to equity
2011
$
2010
$
26,566,040
26,331,750
-
(893,576)
Total comprehensive income for the period
26,566,040
25,438,174
The above Statement of Comprehensive Income should be read in conjunction with the accompanying notes.
24 EUROZ LIMITED Annual Report 2011
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
as at 30 June 2011
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other current assets
Total current assets
Non-current assets
Long term receivable
Investments accounted for using equity method
Financial assets
Plant and equipment
Deferred tax assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Current tax liabilities
Short term provisions
Total current liabilities
Non-current liabilities
Deferred tax liabilities
Long term provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Retained earnings
Total equity
Notes
2011
$
2010
$
7
8
9
10
11
12
13
14
15
16
17
18
19
20
21
21
21
68,059,994
1,909,730
348,675
2,184,432
62,472,744
452,001
386,086
967,615
72,502,831
64,278,446
5,000,000
65,596,600
219,746
3,067,837
563,305
5,000,000
58,792,688
351,592
584,507
415,653
74,447,488
65,144,440
146,950,319
129,422,886
2,057,798
3,494,336
21,661,269
2,367,819
3,013,685
13,704,960
27,213,403
19,086,464
548,361
670,205
1,218,566
231,735
687,274
919,009
28,431,969
20,005,473
118,518,350
109,417,413
87,261,731
186,000
31,070,619
79,296,164
186,000
29,935,249
118,518,350
109,417,413
The above Balance Sheet should be read in conjunction with the accompanying notes.
EUROZ LIMITED Annual Report 2011 25
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
for the year ended 30 June 2011
Share
Capital
$
Asset
Retained Revaluation
Reserve
$
Profi t
$
Option
Premium
Reserves
$
Total
$
Balance at 1 July 2009
75,711,764
19,504,347
893,576
186,000
96,295,687
Profi t for the period
Changes in fair value of fi nancial asset
Total comprehensive income for the period
-
-
-
26,331,750
-
-
(893,576)
26,331,750
(893,576)
Transactions with owners,
recorded directly in equity
Shares issued during the period
Dividends to equity holders
3,584,400
-
-
(15,900,848)
Total contributions by and distributions
to owners
3,584,400
(15,900,848)
Balance at 30 June 2010
79,296,164
29,935,249
Balance at 1 July 2010
79,296,164
29,935,249
Profi t for the period
Changes in fair value of fi nancial asset
Total comprehensive income for the period
-
-
-
26,566,040
-
26,566,040
Transactions with owners,
recorded directly in equity
Shares issued during the period
Dividends to equity holders
7,965,567
-
-
(25,430,670)
Total contributions by and distributions
to owners
7,965,567
(25,430,670)
Balance at 30 June 2011
87,261,731
31,070,619
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
26,331,750
(893,576)
25,438,174
3,584,400
(15,900,848)
-
(12,316,448)
186,000 109,417,413
186,000 109,417,413
-
-
-
-
-
26,566,040
-
26,566,040
7,965,567
(25,430,670)
-
(17,465,103)
186,000 118,518,350
The above consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
26 EUROZ LIMITED Annual Report 2011
CONSOLIDATED STATEMENT OF CASH FLOWS
for the year ended 30 June 2011
Cash fl ows from operating activities
Receipts from customers (inclusive of goods and services tax)
Payments to suppliers and employees (inclusive of goods and services tax)
Dividends received
Interest received
Proceeds from sale of trading shares
Income taxes (paid)/refunded
Payments for trading shares
Notes
2011
$
2010
$
54,239,791
(34,694,192)
51,600,529
(33,677,185)
19,545,599
17,923,344
2,571
2,901,341
9,444,069
(7,193,455)
(7,949,366)
499,719
2,159,100
13,862,728
(5,239,806)
(14,072,653)
Net cash fl ows from operating activities
31
16,750,759
15,132,432
Cash fl ows from investing activities
Net (payments)/receipts from investments
Payments for plant and equipment
Net cash fl ows used in investing activities
Cash fl ows from fi nancing activities
Proceeds from issues of shares and other equity securities
Dividends paid
Net cash fl ows from/(used in) fi nancing activities
Net increase/(decrease) at cash and cash equivalents
Cash and cash equivalents at 1 July
2,066,701
(3,628,376)
(8,760,432)
(393,367)
(1,561,675)
(9,153,799)
7,965,567
(17,567,401)
3,584,400
(10,974,983)
(9,601,834)
(7,390,583)
5,587,250
62,472,744
(1,411,950)
63,884,694
Cash and cash equivalents at 30 June
7
68,059,994
62,472,744
The above statements of cash fl ows should be read in conjunction with the accompanying notes.
EUROZ LIMITED Annual Report 2011 27
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
Contents
Note 1. Statement of signifi cant accounting policies
Note 2. Signifi cant accounting estimates and judgements
Note 3. Segment information
Note 4. Revenue
Note 5. Profi t before income tax expense
Note 6. Income tax
Note 7. Cash and cash equivalents
Note 8. Trade and other receivables
Note 9. Inventories
Note 10. Other current assets
Note 11. Long term receivable
Note 12. Investments accounted for using the equity method
Note 13. Financial assets
Note 14. Plant and equipment
Note 15. Deferred tax assets
Note 16. Trade and other payables
Note 17. Current tax liabilities
Note 18. Short term provisions
Note 19. Deferred tax liabilities
Note 20. Long term provisions
Note 21. Contributed equity
Note 22. Dividends
Note 23. Financial instruments
Note 24. Remuneration of auditors
Note 25. Contingent liabilities
Note 26. Commitments for expenditure
Note 27. Employee benefi ts
Note 28. Related parties
Note 29. Investments in controlled entities
Note 30. Events occurring after reporting date
Note 31. Reconciliation of cash fl ows from operating activities
Note 32. Credit facilities
Note 33. Earnings per share
Note 34. Parent entity disclosures
Note 35. Company details
28 EUROZ LIMITED Annual Report 2011
29
37
37
39
40
40
41
41
41
42
42
42
43
43
44
44
44
45
45
45
45
47
48
49
50
50
50
51
54
55
55
55
56
56
56
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
Note 1. Statement of Signifi cant Accounting Policies
The fi nancial report is a general purpose fi nancial report that has been prepared in accordance with Australian Accounting
Standards, other authoritative pronouncements of the Australian Accounting Standards Board and the Corporations Act
2001.
Euroz Limited is a listed public company, trading on the Australian Securities Exchange, limited by shares, incorporated and
domiciled in Australia.
The fi nancial report of Euroz Limited and controlled entities (the consolidated group), complies with Australian Accounting
Standards and International Financial Reporting Standards (IFRS).
Separate fi nancial information of the parent company has been included in Note 34 as permitted by amendments to the
Corporations Act 2001.
The following is a summary of the material accounting policies adopted by the consolidated group in the preparation of
the fi nancial report. The accounting policies have been consistently applied, unless otherwise stated.
Basis of preparation
Reporting Basis and Conventions
The fi nancial report has been prepared on an accruals basis and is based on historical costs modifi ed by the revaluation of
selected non-current assets, fi nancial assets and fi nancial liabilities for which the fair value basis of accounting has been applied.
Accounting Policies
(a) Principles of Consolidation
The consolidated fi nancial statements incorporate the assets and liabilities of all entities controlled by Euroz Limited
(‘company’ or ‘parent entity’) as at 30 June 2011 and the results of all controlled entities for the year then ended.
Euroz Limited and its controlled entities together are referred to in this fi nancial report as the consolidated entity. The
effects of all transactions between entities in the consolidated entity are eliminated in full.
Subsidiaries are all those entities over which the consolidated entity has the power to govern the fi nancial and
operating policies, generally accompanying a shareholding of more than one-half of the voting rights. The existence
and effect of potential voting rights that are currently exercisable or convertible are considered when assessing
whether the consolidated entity controls another 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.
The purchase method of accounting is used to account for the acquisition of subsidiaries by the consolidated entity.
Intercompany transactions, balances and unrealised gains on transactions between group companies 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 group. All controlled entities have a 30 June fi nancial year end.
(b)
Income Tax
The charge for current income tax expense is based on the profi t for the year adjusted for any non-assessable or
disallowed items. It is calculated using tax rates that have been enacted or are substantively enacted by the balance
sheet date.
Deferred tax is accounted for using the balance sheet liability method in respect of temporary differences arising
between the tax bases of assets and liabilities and their carrying amounts in the fi nancial statements. No deferred
income tax will be recognised from the initial recognition of an asset or liability, excluding a business combination,
where there is no effect on either accounting profi t or taxable profi t or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability
is settled. Deferred tax is credited in the income statement except where it relates to items that may be credited
directly to equity, in which case the deferred tax is adjusted directly against equity.
EUROZ LIMITED Annual Report 2011 29
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
Deferred income tax assets are recognised to the extent that it is probable that future tax profi ts will be available
against which deductible temporary differences can be utilised.
The amount of benefi ts brought to account or which may be realised in the future is based on the assumption
that no adverse change will occur in income taxation legislation and the anticipation that the economic entity will
derive suffi cient future assessable income to enable the benefi t to be realised and comply with the conditions of
deductibility imposed by the law.
Euroz Limited and its wholly-owned Australian subsidiaries have formed an income tax consolidated group under
the Tax Consolidation Regime. Euroz Limited is responsible for recognising the current and deferred tax assets
and liabilities for the tax consolidated group. The group formed an income tax consolidated group to apply from
1 July 2003. The tax consolidated group has entered a tax sharing agreement whereby each company in the group
contributes to the income tax payable in proportion to their contribution to the net profi t before tax of the tax
consolidated group.
(c) Acquisition of investments
The purchase method of accounting is used for all business combinations regardless of whether equity instruments
or other assets are acquired. Cost is determined as the fair value of the assets given up, shares issued or liabilities
undertaken at the date of acquisition plus incidental costs directly attributable to the acquisition.
(d) Revenue Recognition
Revenue is recognised to the extent that it is probable that the economic benefi ts will fl ow to the entity and the
revenue can be reliably measured. The following specifi c recognition criteria must also be met before revenue is
recognised:
•
•
•
•
•
Brokerage revenue earned from share trading on behalf of clients is recognised on completion of the transactions.
That is, the day the security is traded, not the day of settlement.
Underwriting, management fees and corporate retainers are brought to account when the fee in respect of the
services provided is receivable.
Share trading revenue from the sale of stocks in the jobbing account is recognised on the day the security is
traded. Revenue comprises the gross proceeds on sale of the security.
Interest income is recognised as it accrues.
Dividend revenue is recognised when the right to receive a dividend has been established.
All revenue is stated net of the amount of goods and services tax (GST).
(e) Receivables
Trade debtors are recognised as current receivables as they are generally settled within 30 days from the date
of recognition. Collectability of trade debtors is reviewed on an ongoing basis. Debts which are known to be
uncollectible are written off. A provision for doubtful debts is raised when some doubt as to collection exists.
All trade debtors relating to brokerage and principal trading have been transferred to Penson Financial Services
Australia Pty Ltd (“Penson”) who provides a trust account facility as part of the clearing and settlement service.
(f)
Inventories
Inventories are stocks held in the operating (jobbing) account at year end. All inventory is held at fair value. Refer to
Note 1 (u) (i) fi nancial assets at fair value through profi t or loss.
(g)
Investments
Interests in listed and unlisted securities are initially bought to account at cost.
Controlled entities are accounted for in the consolidated fi nancial statements as set out in Note 1 (a).
Other securities are included at fair value at balance date. Unrealised gains/losses on securities held for short term
investment are accounted for as set out in Note 1 (u) (i) fi nancial assets at fair value through profi t or loss. Unrealised
gains/losses on securities held for long term investment are accounted for as set out in Note 1 (u) (iii) available for sale
fi nancial assets.
30 EUROZ LIMITED Annual Report 2011
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
(h)
Investments in associates
The Group’s investment in its associates is accounted for using the equity method of accounting in the consolidated
fi nancial statements. The associates are entities over which the Group has signifi cant infl uence and that are neither
subsidiaries nor joint ventures.
Under the equity method, investments in associates are carried in the consolidated statement of fi nancial position at
cost plus post-acquisition changes in the Group’s share of net assets of the associates. Goodwill or gain on bargain
purchase relating to an associate is included in the carrying amount of the investment and is not amortised. After
application of the equity method, the Group determines whether it is necessary to recognise any impairment loss
with respect to the Group’s net investment in associates. Goodwill or gain on bargain purchase included in the
carrying amount of the investment in associate is not tested separately, rather the entire carrying amount of the
investment is tested for impairment as a single asset. If an impairment is recognised, the amount is not allocated to
the goodwill of the associate.
The Group’s share of its associates’ post-acquisition profi ts or losses is recognised in the statement of comprehensive
income, and its share of post-acquisition movements in reserves is recognised in reserves. The cumulative post-
acquisition movements are adjusted against the carrying amount of the investment. Dividends receivable from
associates are recognised in the parent entity’s statement of comprehensive income as a component of other income.
When the Group’s share of losses in an associate equals or exceeds its interest in the associate, including any unsecured
long-term receivables and loans, the Group does not recognise further losses, unless it has incurred obligations or
made payments on behalf of the associate.
The reporting dates of the associates and the Group are identical and the associates’ accounting policies conform to
those used by the Group for like transactions and events in similar circumstances.
(i)
Plant and equipment
Each class of plant and equipment is carried at cost or fair value as indicated less, where applicable, any accumulated
depreciation and impairment losses.
The carrying amount of plant and equipment is reviewed annually by directors to ensure it is not in excess of the
recoverable amount from these assets. The recoverable amount is assessed as the greater of the fair value less costs
to sell and the expected net cash fl ows that will be received from the assets employment and subsequent disposal.
The expected net cash fl ows are discounted to their present values in determining recoverable amounts.
The cost of fi xed assets constructed within the consolidated group includes the cost of materials, direct labour,
borrowing costs and an appropriate proportion of fi xed and variable overheads.
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that future economic benefi ts associated with the item will fl ow to the group and the cost of the
item can be measured reliably. All other repairs and maintenance are charged to the income statement during the
fi nancial period in which they are incurred.
Depreciation
The depreciable amount of all fi xed assets is depreciated on a straight line basis over their useful lives to the
consolidated group commencing from the time the asset is held ready for use. The depreciation rates used for each
class of depreciable assets are:
Class of Fixed Asset
Leasehold improvements
Plant and equipment
Depreciation Rate
25%
25 – 33%
Artwork is not depreciated, but is reviewed annually for impairment.
The assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at each balance sheet date.
An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying amount is
greater than its estimated recoverable amount.
EUROZ LIMITED Annual Report 2011 31
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
Gains and losses on disposals are determined by comparing proceeds with the carrying amount. These gains and
losses are included in the income statement. When revalued assets are sold, amounts included in the revaluation
reserve relating to the asset are transferred to retained earnings.
(j)
Leasehold improvements
The cost of improvements to or on leasehold properties are amortised over the unexpired period of the lease or the
estimated useful life of the improvement to the consolidated group, whichever is the shorter.
(k)
Leased non current assets
A distinction is made between fi nance leases which effectively transfer from the lessor to the lessee substantially all
the risks and benefi ts incidental to ownership of leased non current assets, and operating leases under which the
lessor effectively retains substantially all such risks and benefi ts.
Incentives received on entering into operating leases are recognised as liabilities. Lease payments are allocated
between rental expense and reduction of the liability.
Other operating lease payments are charged to the income statement in the periods in which they are incurred, as
this represents the pattern of benefi ts derived from the leased assets.
(l)
Trade and other creditors
Trade and other creditors also includes other liabilities for goods and services provided to the consolidated entity
prior to the end of the fi nancial year and which are unpaid. The amounts are unsecured and are usually paid within
30 days of recognition.
All trade creditors relating to brokerage and principal trading have been transferred to Penson who provides a trust
account facility as part of the clearing and settlement service.
(m) Dividends
Provision is made for the amount of any dividend declared and authorised by the directors on or before the end of
the fi nancial year, but not distributed at balance date.
(n) Options
The fair value of options in the shares of the company issued to directors and other parties is recognised as an
expense in the fi nancial statements in relation to the granting of these options.
(o)
Employee benefi ts
(i) Wages, salaries and annual leave
Liabilities for wages, salaries and annual leave expected to be settled within 12 months of the reporting date
are recognised in respect of employees’ services up to the reporting date and are measured at the amounts
expected to be paid when the liabilities are settled.
(ii)
Employee benefi ts payable later than one year
Employee benefi ts payable later than one year have been measured at the present value of the estimated
future cash outfl ows to be made for those benefi ts.
(iii)
Superannuation
Contributions are made by the consolidated group to superannuation funds as stipulated by statutory
requirements and are charged as expenses when incurred.
(iv)
Employee benefi t on costs
Employee benefi t on costs, including payroll tax, are recognised and included in employee benefi ts liabilities
and costs when the employee benefi ts to which they relate are recognised as liabilities.
32 EUROZ LIMITED Annual Report 2011
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
(v) Options
The fair value of options granted is recognised as an employee benefi t expense with a corresponding increase
in equity. The fair value is measured at grant date.
The fair value at grant date is independently determined using the Black-Scholes option pricing model that
takes into account the exercise price, the term of the option, the vesting and performance criteria, the impact
of dilution, the non-tradeable nature of the option, the share price at grant date and expected price volatility
of the underlying share, the expected dividend yield and the risk-free interest rate for the term of the option.
(vi)
Profi t-sharing
The consolidated entity recognises a liability and an expense for profi t-sharing based on a formula that takes
into consideration the profi t attributable to the company’s employees after certain adjustments.
(vii) Termination benefi ts
The consolidated entity recognises a liability and an expense when the entity demonstrate commitment to
either terminate the employee before the normal retirement date or provide termination benefi ts as a result of
an offer made to the employee prior to retirement date.
(p) Cash and cash equivalents
For purposes of the statement of cash fl ows, cash includes deposits at call which are readily convertible to cash on
hand and are subject to an insignifi cant risk of changes in value, net of outstanding bank overdrafts.
(q)
Earnings per share
(i)
Basic earnings per share
Basic earnings per share is determined by dividing the net profi t after income tax attributable to members
of the company, excluding any costs of servicing equity other than ordinary shares, by the weighted average
number of ordinary shares outstanding during the fi nancial year, adjusted for bonus elements in ordinary
shares issued during the year.
(ii)
Diluted earnings per share
Diluted earnings per share adjusts the fi gures used in the determination of basic earnings per share to take
into account the after income tax effect of interest and other fi nancing 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.
(r)
Fair value estimation
The fair value of fi nancial assets and fi nancial liabilities must be estimated for recognition and measurement or for
disclosure purposes.
The fair value of fi nancial instruments traded in active markets (such as publicly traded derivatives, and trading and
available-for-sale securities) is based on quoted market prices at the balance sheet date. The quoted market price
used for fi nancial assets held by the consolidated entity is the current bid price; the appropriate quoted market price
for fi nancial liabilities is the current ask price.
The fair value of fi nancial instruments that are not traded in an active market (for example, over-the-counter
derivatives) is determined using valuation techniques. The consolidated entity uses a variety of methods and makes
assumptions that are based on market conditions existing at each balance date. Quoted market prices or dealer
quotes for similar instruments are used for long-term debt instruments held. Other techniques, such as estimated
discounted cash fl ows, are used to determine fair value for the remaining fi nancial instruments.
The nominal value less estimated credit adjustments of trade receivables and payables are assumed to approximate
their fair values. The fair value of fi nancial liabilities for disclosure purposes is estimated by discounting the future
contractual cash fl ows at the current market interest rate that is available to the consolidated entity for similar
fi nancial instruments.
EUROZ LIMITED Annual Report 2011 33
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
(s) Goods and services tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred
is not recoverable from the Australian Tax Offi ce. In these circumstances the GST is recognised as part of the cost of
acquisition of the asset or as part of an item of the expense. Receivables and payables in the balance sheet are shown
inclusive of GST.
Cash fl ows are presented in the cash fl ow statement on a gross basis, except for the GST component of investing and
fi nancing activities, which are disclosed as operating cash fl ows.
(t)
Comparative fi gures
When required by accounting standards, comparative fi gures have been adjusted to conform to changes in
presentation for the current fi nancial year.
(u) Financial instruments
The consolidated group classifi es its investments in the following categories: fi nancial assets at fair value through
profi t or loss, loans and receivables, and available-for-sale fi nancial assets. The classifi cation depends on the purpose
for which the investments were acquired. Management determines the classifi cation of its investments at initial
recognition and re-evaluates this designation at each reporting date.
Initial recognition and measurement
Financial assets and fi nancial liabilities are recognised when the entity becomes a party to the contractual provisions
to the instrument. For fi nancial assets, this is equivalent to the date that the company commits itself to either the
purchase or sale of the asset (ie trade date accounting is adopted).
Financial instruments are initially measured at fair value plus transaction costs, except where the instrument is
classifi ed ‘at fair value through profi t or loss’, in which case transaction costs are expensed to profi t or loss immediately.
Classifi cation and subsequent measurement
Financial instruments are subsequently measured at either of fair value, amortised cost using the effective interest
rate method, or cost. Fair value represents the amount for which an asset could be exchanged or a liability settled,
between knowledgeable, willing parties. Where available, quoted prices in an active market are used to determine
fair value. In other circumstances, valuation techniques are adopted.
Amortised cost is calculated as:
•
•
•
•
the amount at which the fi nancial asset or fi nancial liability is measured at initial recognition;
less principal repayments;
plus or minus the cumulative amortisation of the difference, if any, between the amount initially recognised
and the maturity amount calculated using the effective interest method; and
less any reduction for impairment.
The effective interest method is used to allocate interest income or interest expense over the relevant period and is
equivalent to the rate that exactly discounts estimated future cash payments or receipts (including fees, transaction
costs and other premiums or discounts) through the expected life (or when this cannot be reliably predicted, the
contractual term) of the fi nancial instrument to the net carrying amount of the fi nancial asset or fi nancial liability.
Revisions to expected future net cash fl ows will necessitate an adjustment to the carrying value with a consequential
recognition of an income or expense in profi t or loss.
The Group does not designate any interests in subsidiaries, associates or joint venture entities as being subject to the
requirements of accounting standards specifi cally applicable to fi nancial instruments.
(i)
Financial assets at fair value through profi t or loss
This category has two sub-categories; fi nancial assets held for trading, and those designated at fair value
through profi t or loss on initial recognition. A fi nancial asset is classifi ed in this category if acquired principally
for the purpose of selling in the short term or if so designated by management. The policy of management is to
designate a fi nancial asset if there exists the possibility it will be sold in the short term and the asset is subject
to frequent changes in fair value. Assets in this category are classifi ed as current assets if they are either held
for trading or are expected to be realised within 12 months of the balance sheet date.
34 EUROZ LIMITED Annual Report 2011
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
(ii)
Loans and receivables
Loans and receivables are non derivative fi nancial assets with fi xed or determinable payments that are not
quoted in an active market. They arise when the consolidated group provides money, goods or services
directly to a debtor with no intention of selling the receivable. They are included in current assets, except for
those with maturities greater than 12 months after the balance sheet date which are classifi ed as non-current
assets. Loans and receivables are included in receivables in the balance sheet.
(iii) Available-for-sale fi nancial assets
Available-for-sale fi nancial assets, comprising principally marketable equity securities, are non-derivatives that
are either designated in this category or not classifi ed in any of the other categories. They are included in non-
current assets.
Purchases and sales of investments are recognised on trade-date being the date on which the consolidated
group commits to purchase or sell the asset. Investments are initially recognised at fair value plus transaction
costs for all fi nancial assets not carried at fair value through profi t or loss. Financial assets are derecognised
when the rights to receive cash fl ows from the fi nancial assets have expired or have been transferred and the
consolidated entity has transferred substantially all the risks and rewards of ownership.
Available-for-sale fi nancial assets and fi nancial assets at fair value through profi t and loss are subsequently
carried at fair value. Loans and receivables are carried at amortised cost using the effective interest method.
Realised and unrealised gains and losses arising from changes in the fair value of the ‘fi nancial assets at fair
value through profi t or loss’ category are included in the income statement in the period in which they arise.
Unrealised gains and losses arising from changes in the fair value of non monetary securities classifi ed as
available-for-sale investments revaluation reserve are recognised in equity in the “available for sale revaluation
reserve”. When securities classifi ed as available-for-sale are sold or impaired, the accumulated fair value
adjustments are included in the income statement as gains and losses from investment securities.
The fair values of quoted investments are based on current bid prices. If the market for a fi nancial asset is not
active (and for unlisted securities), the consolidated entity establishes fair value by using valuation techniques.
These include reference to the fair values of recent arm’s length transactions, involving the same instruments or
other instruments that are substantially the same, discounted cash fl ow analysis, and option pricing methods
refi ned to refl ect the issuer’s specifi c circumstances.
The consolidated group assesses at each balance date whether there is objective evidence that a fi nancial
asset or group of fi nancial assets is impaired. In the case of equity securities classifi ed as available for sale,
a signifi cant or prolonged decline in the fair value of a security below its cost is considered in determining
whether the security is impaired. If any such evidence exists for available-for-sale fi nancial assets, the cumulative
loss – measured as the difference between the acquisition cost and the current fair value, less any impairment
loss on that fi nancial asset previously recognised in profi t and loss, is removed from equity and recognised in
the income statement. Impairment losses recognised in the income statement on equity instruments are not
reversed through the income statement.
(v) Business combinations
Acquisitions by the group of additional interests in equity accounted investments are brought to account in
accordance with the provision of AASB 3 Business Combinations.
(w) Contributed equity
Ordinary shares are classifi ed 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. Incremental costs directly attributable to the issue of new shares or options, or for the
acquisition of a business, are included in the cost of the acquisition as part of the purchase consideration.
EUROZ LIMITED Annual Report 2011 35
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
(x) New standards and interpretations not yet adopted
The AASB has issued the following new and amended accounting standards and interpretations that have mandatory
application dates for future reporting periods. The Group has decided against early adoption of these standards, and
has not yet determined the potential impact on the fi nancial statements from the adoption of these standards and
interpretations.
AASB No.
Title
9
1053
Financial Instruments
Application of Tiers of Australian Accounting
Standards
Issue
Date
Dec-10
Jun-10
Operative Date
(Annual reporting periods
beginning on or after)
1-Jan-13
1-Jul-13
2009 – 10
Amendments to Australian Accounting Standards
– Classifi cation of Rights Issues [AASB 132]
Oct-09
1-Feb-10
2009 – 12
Amendments to Australian Accounting Standards
Dec-09
1-Jan-11
2010 – 2
2010 – 3
2010 – 4
[AASBs 5, 8, 108, 110, 112, 119, 133, 137, 139, 1023
& 1031 and Interpretations 2, 4, 16, 1039 & 1052]
Amendments to Australian Accounting Standards
arising from Reduced Disclosure Requirements
Amendments to Australian Accounting Standards
arising from the Annual Improvements Project
[AASB 3, AASB 7, AASB 121, AASB 128, AASB 131,
AASB 132 & AASB 139]
Further Amendments to Australian Accounting
Standards arising from the Annual Improvements
Project
[AASB 1, AASB 7, AASB 101 & AASB 134 and
Interpretation 13]
Jun-10
1-Jul-13
Jun-10
1-Jul-10
Jun-10
1-Jan-11
2010 – 5
Amendments to Australian Accounting Standards
Oct-10
1-Jan-11
[AASB 1, 3, 4, 5, 101, 107, 112, 118, 119, 121, 132, 133,
134, 137, 139, 140, 1023 & 1038 and Interpretations
112, 115, 127, 132 & 1042]
2010 – 6
Amendments to Australian Accounting Standards
– Disclosures on Transfers of Financial Assets
Nov-10
1-Jul-11
[AASB 1 & AASB 7]
2010 – 7
Amendments to Australian Accounting Standards
arising from AASB 9 (December 2010)
Dec-10
1-Jan-13
[AASB 1, 3, 4, 5, 7, 101, 102, 108, 112, 118, 120, 121,
127, 128, 131, 132, 136, 137, 139, 1023 & 1038 and
Interpretations 2, 5, 10, 12, 19 & 127]
2010 – 8
Amendments to Australian Accounting Standards
– Deferred Tax: Recovery of Underlying Assets
Dec-10
1-Jan-12
[AASB 112]
2010 – 9
Amendments to Australian Accounting Standards
– Severe Hyperinfl ation and Removal of Fixed
Dates for First-time Adopters
Dec-10
1-Jul-11
[AASB 1]
2010 – 10
Further Amendments to Australian Accounting
Standards – Removal of Fixed Dates for First-time
Adopters
Dec-10
1-Jan-13
[AASB 2009-11 & AASB 2010-7]
Australian Interpretations
19
Extinguishing Financial Liabilities with Equity
Instruments
Dec-09
1-Jul-10
36 EUROZ LIMITED Annual Report 2011
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
Note 2. Signifi cant accounting estimates and judgements
Estimates and judgements incorporated in the fi nancial statements are based on historical knowledge and best available
current information. Estimates assume a reasonable expectation of future events and are based on current trends and
economic data, obtained both externally and within the group.
Key Estimates
(i)
Impairment
At each reporting date, the group compares the carrying values and market values of the associates to determine
whether there is any indication of impairment. If signifi cant and prolonged impairment indicators exist, any excess
of the associate’s carrying value over the recoverable amount is expensed to the income statement.
Where it is not possible to estimate the recoverable amount of an individual asset, the group estimates the recoverable
amount of the cash-generating unit to which the asset belongs.
Key judgements
(i)
Classifi cation of investments
The group has decided to classify investments in listed securities as available for sale. These securities are accounted
for at fair value. Any increments or decrements in their value at year end are charged or credited to the income
statement.
(ii)
Taxation
Judgement is required in assessing whether deferred tax assets and certain deferred tax liabilities are recognised on
the balance sheet. Deferred tax assets, including those arising from temporary differences, are recognised only where
it is considered more likely than not they will be recovered, which is dependent on the generation of suffi cient future
taxable profi ts. Deferred tax liabilities arising from temporary differences are recognised to the extent that there are
future profi ts.
Note 3. Segment information
Identifi cation of reportable segments
The group has identifi ed its operating segments based on the internal reports that are reviewed and used by the executive
team (the chief operating decision makers) in assessing performance and in allocating resources.
Types of products and services
Stockbroking
Stockbroking business offering trading of Australian securities, post trade reporting, corporate fi nance opportunities,
provision of company research.
Principal Trading
Principal trading relates to the purchase and sale of securities by the consolidated group.
Funds Management
The consolidated group provides advice in relation to fund management.
Basis of accounting for purpose of reporting by operating segments
The accounting policies used by the group in reporting segments internally are consistent with those adopted in the
fi nancial statements of the group, unless otherwise stated.
Segment assets and liabilities
Where an asset is used across multiple segments, the asset is allocated to that segment that receives majority economic
value from that asset.
Liabilities are allocated to segments where there is a direct nexus between the liability and the operations of the segment.
EUROZ LIMITED Annual Report 2011 37
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
Unallocated items
The following items of revenue, expenses, assets and liabilities are not allocated to operating segments as they are not
considered part of the core operations of any segments:
•
•
•
•
•
•
Dividend revenue
Fair value gains or losses on fi nancial instruments
Share of profi ts and losses of equity-accounted investments
Corporate assets and liabilities not specifi c to any segments
Deferred tax assets and liabilities
Current tax liabilities
Stockbroking
$
Principal
Funds
Trading Management
$
$
Unallocated
Total
Items (Consolidated)
$
$
Total
$
2011
Sales and other fees
Other revenues
47,730,545
1,495,066
9,547,185
-
8,974,867
179,160
66,252,597
1,674,226
-
9,880,174
66,252,597
11,554,400
Total segment revenue
49,225,611
9,547,185
9,154,027
67,926,823
9,880,174
77,806,997
Segment net operating profi t
after tax
9,916,246
1,574,237
5,661,366
17,151,849
9,414,191
26,566,040
Interest revenue
Depreciation and amortisation
Share of associate
1,392,803
1,144,507
-
-
-
-
179,160
538
-
1,571,963
1,145,045
-
1,347,278
-
7,794,638
2,919,241
1,145,045
7,794,638
Segment assets
32,920,874
348,675
5,967,911
39,237,460 107,712,859
146,950,319
Investments in associate
Capital expenditure
Segment liabilities
-
3,627,846
7,762,756
-
-
-
-
-
-
3,627,846
65,596,600
-
65,596,600
3,627,846
3,381,939
11,144,695
17,287,273
28,431,968
Cash fl ow information
Net cash fl ow from
operating activities
Net cash fl ow from
investing activities
Net cash fl ow from
fi nancing activities
9,275,914
1,690,253
5,183,577
16,149,744
601,015
16,750,759
(3,628,376)
-
-
-
-
-
(3,628,376)
2,066,701
(1,561,675)
-
(9,601,834)
(9,601,834)
38 EUROZ LIMITED Annual Report 2011
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
Stockbroking
$
Principal
Funds
Trading Management
$
$
Unallocated
Total
Items (Consolidated)
$
$
Total
$
2010
Sales and other fees
Other revenues
39,490,501
1,350,700
13,738,675
-
10,102,074
90,441
63,331,250
1,441,141
-
11,765,435
63,331,250
13,206,576
Total segment revenue
40,841,201
13,738,675
10,192,515
64,772,391
11,765,435
76,537,826
Segment net operating profi t
after tax
13,227,400
215,117
6,333,425
19,775,942
6,555,808
26,331,750
Interest revenue
Depreciation and amortisation
Share of associate
1,227,179
177,756
-
Segment assets
31,102,083
Investments in associate
Capital expenditure
-
391,385
Segment liabilities
6,549,254
-
-
-
-
-
-
-
90,441
7,308
-
1,317,620
185,064
-
841,480
-
(457,282)
2,159,100
185,064
(457,282)
5,980,304
37,082,387
92,340,499
129,422,886
-
1,982
-
393,367
58,792,688
-
58,792,688
393,367
3,862,605
10,411,859
9,593,614
20,005,473
Cash fl ow information
Net cash fl ow from
operating activities
Net cash fl ow from
investing activities
Net cash fl ow from
fi nancing activities
Note 4. Revenue
9,396,088
(209,925)
9,310,727
18,496,890
(3,364,458)
15,132,432
(391,385)
-
-
-
(1,982)
(393,367)
(8,760,432)
(9,153,799)
-
-
(7,390,583)
(7,390,583)
Revenue from operating activities
Brokerage
Underwriting and management fees
Proceeds on sale of principal trading shares
Other income
Interest received
Dividends received
Other revenue
Fair value gain on derivatives
Gain arising from acquisition of further interests in associates
Total Revenue
2011
$
2010
$
22,846,828
31,767,263
9,468,579
2,091,321
20,509,908
27,849,180
13,738,675
1,233,487
66,173,991
63,331,250
2,919,241
2,571
104,279
(131,849)
944,127
2,159,100
503,199
123,521
351,592
642,546
3,838,369
3,779,958
70,012,360
67,111,208
EUROZ LIMITED Annual Report 2011 39
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
Note 5. Profi t before income tax expense
Profi t for the year arrived at after charging following expenses
Plant and equipment – depreciation
Leasehold improvements – amortisation
Employee entitlements costs
Rental expenses relating to operating lease
Note 6. Income tax
The components of tax expense comprise:
Current tax
Deferred tax
Numerical reconciliation between tax expense and pre tax accounting profi t
Income tax rate using company’s tax rate
of 30% (2010: 30%)
Add tax effect of:
- imputation credits
- other non-allowable items
- prior year under provision
- share of loss of associate
Less tax effect of:
- rebateable fully franked dividends
- gain on acquisition of associates
Income tax attributable to entity
2011
$
451,536
693,509
145,789
1,244,708
2010
$
119,604
65,460
101,938
413,966
2011
$
2010
$
7,648,412
194,667
7,232,714
(61,969)
7,843,079
7,170,745
10,322,736
10,050,748
231
115,009
27,503
-
65,021
92,588
62,689
137,185
10,465,479
10,408,231
(771)
(2,621,629)
(216,737)
(3,020,749)
7,843,079
7,170,745
The applicable weighted average effective tax rates are as follows:
22.8%
21.4%
The increase in the weighted average effective consolidated tax rate for 2011 is due to the accounting requirement to
recognise the gain on acquisition of associates.
Reconciliations
i.
Gross movements
The overall movement in the deferred tax account is as follows:
Balance at 1 July
Recognised in income statement
Recognised in other comprehensive income
Balance at 30 June
ii.
Deferred tax liability
Movement in temporary differences during the year
Fair value gain adjustments
Balance at 1 July
Recognised in other comprehensive income
Balance at 30 June
Other
Balance at 1 July
Recognised in the income statement
Balance at 30 June
40 EUROZ LIMITED Annual Report 2011
183,918
(194,667)
25,693
(3,534,378)
185,511
4,645,865
14,944
1,296,998
77,982
(25,693)
52,289
-
77,982
77,982
153,753
342,319
198,750
(44,997)
496,072
153,753
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
iii.
Deferred tax assets
Movement in temporary difference during the year
Fair value gain adjustments
Balance at 1 July
Recognised in other comprehensive income
Balance at 30 June
Provisions
Balance at 1 July
Recognised in the income statement
Balance at 30 June
-
-
-
1,097,067
(1,097,067)
-
415,653
147,652
563,305
398,681
16,972
415,653
Tax losses
No part of the deferred tax asset shown in Note 15 is attributable to tax losses. The directors advise that the potential future
income tax benefi t at 30 June 2011 in respect of tax losses not brought to account is nil.
Tax consolidation legislation
Euroz Limited and its wholly-owned Australian subsidiaries implemented the tax consolidation legislation as of 1 July 2003.
The accounting policy on implementation of the legislation is set out in Note 1(b). The impact on the income tax expense
for the year is disclosed in the tax reconciliation above.
The entities have also entered into a tax sharing and funding agreement. Under the terms of this agreement, the wholly-
owned entities reimburse Euroz Limited for any current income tax payable by Euroz Limited arising in respect of their
activities. The reimbursements are payable at the same time as the associated income tax liability falls due and have
therefore been recognised as a current tax-related receivable by Euroz Limited. In the opinion of the directors, the tax
sharing agreement is also a valid agreement under the tax consolidation legislation and limits the joint and several liability
of the wholly owned entities in the case of a default by Euroz Limited.
The wholly owned entities have fully compensated Euroz Limited for deferred tax liabilities assumed by Euroz Limited on
the date of the implementation of the legislation and have been fully compensated for any deferred tax assets transferred
to Euroz Limited.
Note 7. Cash and cash equivalents
Cash at bank and on hand
Note 8. Trade and other receivables
Trade debtors
2011
$
68,059,994
2010
$
62,472,744
2011
$
1,909,730
2010
$
452,001
All trade debtors relating to brokerage and principal trading have been transferred to Penson who provides a trust account
facility as part of the clearing and settlement service.
Note 9. Inventories
Trading securities in listed companies (at cost)
Fair value adjustments (i)
Total
2011
$
394,122
(45,447)
2010
$
510,139
(124,053)
348,675
386,086
(i)
The fair value adjustment is based on the closing price of each investment at year end.
EUROZ LIMITED Annual Report 2011 41
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
Note 10. Other current assets
Prepayments
Accrued income
Total
Note 11. Long term receivable
Security deposit (unsecured)
2011
$
541,854
1,642,578
2,184,432
2010
$
455,108
512,507
967,615
2011
$
5,000,000
2010
$
5,000,000
Deposit held by Penson (clearing participant on behalf of Euroz Securities Limited) in order to meet the capital requirements
under ASX Clear Pty Ltd.
Note 12. Investments accounted for using the equity method
Associated company
(a) Movements during the year in equity accounted investment in associated companies
Balance at 1 July
Add:
Recognised as investment during the year
Acquisition on additional interest in associate during the year (Note 1(v))
Share of profi ts after tax
Gain arising from acquisition of further interests in associate
Less:
Share of loss after tax
Dividend received/receivable
Balance at 30 June
(b) Interest held in the associated company
Name of entity
Ozgrowth Limited
Westoz Investment
Company Limited
Country of
Incorporation
Australia
Australia
Principal activity
Investment company
Investment company
2011
$
65,596,600
2010
$
58,792,688
2011
$
58,792,688
2010
$
20,220,165
2,426,942
944,126
7,264,655
544,890
27,581,673
1,643,833
2,448,929
10,139,498
-
(4,376,701)
(2,906,205)
(335,205)
65,596,600
58,792,688
Ownership interest
2010
2011
%
%
31.76
20.93
28.49
20.07
42 EUROZ LIMITED Annual Report 2011
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
Summarised fi nancial information in respect of the group’s associates is set out below:
(c) Summarised fi nancial information
Financial position:
Total assets
Total liabilities
Net assets
Share of associates’ net assets
Financial performance:
Total revenue
Total profi t/(loss) for the year after tax
Note 13. Financial assets
Fair value movement on derivatives (i)
Total
2011
$
2010
$
286,598,020
(34,138,215)
270,923,668
(27,491,610)
252,459,805
243,432,058
65,596,600
58,792,688
48,789,859
31,716,373
54,013,447
32,106,573
2011
$
219,746
219,746
2010
$
351,592
351,592
(i)
The company is a listed company. The company’s fair value at year end is determined by the current share price as
at 30 June 2011.
Non-current assets pledged as security
See Note 32 for information on non-current assets pledged as security by the parent entity or its controlled entities.
Note 14. Plant and equipment
Leasehold improvements
At cost
Less: Accumulated amortisation
Software
At cost
Less: Accumulated depreciation
Offi ce equipment
At cost
Less: Accumulated depreciation
Furniture, fi xtures and fi ttings
At cost
Less: Accumulated depreciation
2011
$
2010
$
2,524,118
(627,935)
1,896,183
481,686
(256,466)
225,220
31,170
(28,625)
2,545
1,061,736
(343,445)
718,291
603,846
(153,028)
450,818
3,067,837
31,170
(19,041)
12,129
368,470
(199,805)
168,665
295,695
(117,202)
178,493
584,507
EUROZ LIMITED Annual Report 2011 43
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
Reconciliations
Reconciliations of the carrying amounts of each class of property, plant and equipment at the beginning and end of the
current and previous fi nancial year are set out below:
2011
Carrying amount at 1 July 2010
Additions
Depreciation/amortisation expense (Note 5)
Leasehold
improvements
$
Plant and
equipment
$
Total
$
225,220
2,364,472
(693,509)
359,287
1,263,374
(451,007)
584,507
3,627,846
(1,144,516)
Carrying amount at 30 June 2011
1,896,183
1,171,654
3,067,837
2010
Carrying amount at 1 July 2009
Additions
Depreciation/amortisation expense (Note 5)
125,680
165,000
(65,460)
250,524
228,367
(119,604)
376,204
393,367
(185,064)
Carrying amount at 30 June 2010
225,220
359,287
584,507
Note 15. Deferred tax assets
Deferred tax asset (Note 6)
Deferred tax assets comprises:
Provisions
Fair value loss adjustments
Total
Note 16. Trade and other payables
Trade creditors
Other payables and accruals
Total
2011
$
563,305
563,305
-
563,305
2010
$
415,653
415,653
-
415,653
2011
$
310,207
1,747,591
2010
$
233,055
2,134,764
2,057,798
2,367,819
All trade creditors relating to brokerage and principal trading have been transferred to Penson who provides a trust account
facility as part of the clearing and settlement service.
Note 17. Current tax liabilities
Provision for taxation
2011
$
3,494,336
2010
$
3,013,685
44 EUROZ LIMITED Annual Report 2011
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
Note 18. Short term provisions
Dividends
Employee entitlements (annual leave)
Total
Note 19. Deferred tax liabilities
Deferred tax liability (Note 6)
Deferred tax liability comprises:
Fair value gain adjustments
Other
Total
Note 20. Long term provisions
Lease incentive
Employee entitlements (long service leave)
Total
Note 21. Contributed equity
2011
$
21,134,214
527,055
2010
$
13,270,946
434,014
21,661,269
13,704,960
2011
$
548,361
52,289
496,072
548,361
2010
$
231,735
77,982
153,753
231,735
2011
$
129,524
540,681
670,205
2010
$
199,341
487,933
687,274
(a)
Share capital
Ordinary shares
Issued and paid up capital - consisting of ordinary shares
(b)
Movements in ordinary share capital
At the beginning of the reporting period
Shares issued during the year (i)
Exercise of options (ii)
At the end of the reporting period
Consolidated group
2010
2011
Shares
Shares
Parent entity
2011
$
2010
$
140,894,763
132,570,140
87,261,731
79,296,164
Consolidated entity
2010
Shares
2011
Shares
132,570,140
3,480,000
4,844,623
128,385,858
3,000,000
1,184,282
140,894,763
132,570,140
(i) On 4 February 2011, the company issued 3,480,000 shares at $1.25 each for cash.
(ii) Options were exercised at various times during the fi nancial year. The options were granted on 27 February 2009 at an
exercise price of 75 cents and expire on 1 March 2014.
EUROZ LIMITED Annual Report 2011 45
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
(c)
Movements in ordinary share capital
At the beginning of the reporting period
Shares issued during the year
Exercise of options
Capital raising costs
At the end of the reporting period
(d)
Ordinary shares
Consolidated entity
2010
$
Shares
2011
$
Shares
79,296,164
4,350,000
3,633,467
(17,900)
75,711,764
2,700,000
893,706
(9,306)
87,261,731
79,296,164
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the company in proportion
to the number of and amounts paid on the shares held.
On a show of hands every holder of ordinary shares present at a meeting in person or by proxy, is entitled to one vote, and
upon a poll each share is entitled to one vote.
(e)
Options
A total of 4,844,623 options were exercised during the year at an exercise price of $0.75. There are 6,357,713 number of
options on issue at 30 June 2011 (2010: 11,202,336). These options are convertible into shares at $0.75.
(f)
Movements in retained earnings
Balance 1 July 2010
Opening adjustments
Net profi t
Dividends paid
Balance 30 June 2011
(g)
Movement in reserves
Asset revaluation reserve
Opening balance
Fair value of available for sale investments
Closing balance
Options reserve
Total reserves
2011
$
2010
$
29,935,249
-
26,566,040
(25,430,670)
19,504,347
-
26,331,750
(15,900,848)
31,070,619
29,935,249
2011
$
2010
$
-
-
-
893,576
(893,576)
-
186,000
186,000
186,000
186,000
The asset revaluation reserve is used to record increments and decrements in the fair value of available for sale investments.
Refer to Note 1(u) (iii).
There has been no movement in the options reserve.
46 EUROZ LIMITED Annual Report 2011
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
(h)
Capital management
The Directors primary objective is to maintain a capital structure that ensures the lowest cost of capital available to the
group. At balance date, the group has no external borrowings.
The group is not subject to any externally imposed capital requirements.
Note 22. Dividends
Ordinary shares
Interim dividend for the half year ended 31 December 2010 of 3 cents
(2010 - 2 cents) per fully paid ordinary share paid on 28 January 2011.
Fully franked based on tax paid @ 30%
Final dividend declared and provided for at 30 June 2011 of 15 cents
(2010 – 10 cents) per fully paid ordinary share
Fully franked based on tax paid @ 30%
Total dividends provided for or paid
2011
$
2010
$
4,296,456
2,633,325
21,134,214
13,257,014
25,430,670
15,890,339
Franked dividends
The franked portions of the dividends recommended after 30 June 2011 will be franked out of existing franking credits or
out of franking credits arising from the payment of income tax in the year ending 30 June 2011.
Franking credits available for subsequent fi nancial years
based on a tax rate of 30% (2010: 30%)
Consolidated group
2010
$
2011
$
7,132,251
13,038,463
The above amounts represent the balance of the franking account as at the end of the fi nancial year, adjusted for:
a)
b)
c)
d)
franking credits that will arise from the payment of the current tax liability
franking debits that will arise from the payment of dividends recognised as a liability at the reporting date
franking credits that will arise from the receipt of dividends recognised as receivables at the reporting date, and
franking credits that may be prevented from being distributed in subsequent fi nancial years.
The consolidated amounts include franking credits that would be available to the parent entity if distributable profi ts of
controlled entities were paid as dividends.
EUROZ LIMITED Annual Report 2011 47
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
Note 23. Financial instruments
(a)
Financial risk management
The group’s fi nancial instruments consist of deposits with banks, trade receivables and payables, short term investments
and available for sale investments. Derivative fi nancial instruments are not used by the group. Senior executives meet
regularly to analyse and monitor the fi nancial risk associated with the fi nancial instruments used by the group.
(b)
Financial risk exposure and management
(i)
Interest rate risk
The group has no borrowings and therefore is not exposed to interest rate risk associated with debt. The group
has signifi cant cash reserves and the interest income earned from these cash reserves will be effected by
movements in the interest rate. A sensitivity analysis has been provided in the note to illustrate the effect of
interest rate movements on interest income earned.
(ii)
Liquidity risk
The group manages liquidity risk using forward cashfl ow projections, maintaining cash reserves and having
no borrowings or debt. In addition, at balance sheet date, the group has unutilised credit facilities totalling
$20,000,000.
Trade and other payables are expected to be paid as follows:
Less than 1 month
(iii) Credit risk
2011
$
2,057,798
2010
$
2,367,819
The maximum exposure to credit risk, excluding the value of any collateral or security, at balance date is the
carrying amount of the fi nancial assets disclosed in the balance sheet. There is no collateral or security held for
those assets at 30 June 2011.
Credit risk arises from exposure to customers and deposits with banks. Senior management monitors its
exposure to customers on a regular basis to ensure recovery and repayment of outstanding amounts. Cash
deposits are only made with Australian based banks. All trade debtors relating to brokerage and principal
trading have been transferred to Penson who provides a trust account facility as part of the clearing and
settlement service.
The group invests in listed held for trade fi nancial assets. These investments are held in companies listed on
the Australian Securities Exchange and are considered to be liquid in nature. The group also invests in unlisted
available for sale fi nancial assets. The fi nancial performance and return of all investments are regularly reviewed
by senior management.
Exposure to credit risk
The carrying amount of the consolidated entity’s fi nancial assets represents the maximum credit exposure.
The consolidated entity’s maximum exposure to credit risk at the reporting date was:
Financial assets at fair value through profi t or loss
Cash and cash equivalents
Receivables
Impairment losses
None of the consolidated entity’s other receivables are past due (2010: Nil).
Carrying Amount
2010
$
351,592
62,472,744
452,001
2011
$
219,746
68,059,994
1,909,730
70,189,470
63,276,337
48 EUROZ LIMITED Annual Report 2011
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
(iv)
Financial instruments composition and materiality analysis
Weighted average
effective interest rate
2010
%
2011
%
Floating
interest rate
2011
$
2010
$
Non interest
bearing
2011
$
2010
$
-
452,001
-
452,001
4.81
-
4.81
3.75
-
3.75
68,059,994
-
5,000,000
73,059,994
62,472,744
-
5,000,000
67,472,744
-
1,909,730
-
1,909,730
-
-
-
-
2,057,798
2,367,819
FINANCIAL ASSETS
Cash and cash equivalents
Receivables
Loan term deposit
Total fi nancial assets
FINANCIAL LIABILITIES
Trade and other payables
(v)
Sensitivity analysis
The Group has performed a sensitivity analysis in relation to interest income and movements in interest rates.
The analysis highlights the post tax effect on the current year’s results and equity which would have resulted
from movement in interest rates with all other variables remaining constant.
Change in profi t
- increase in interest rate by 1%
- decrease in interest rate by 1%
Change in equity
- increase in interest rate by 1%
- decrease in interest rate by 1%
Note 24. Remuneration of auditors
Assurance services
Audit services
Audit and review of fi nancial reports for the company
Fees paid to PKF Mack & Co fi rm
Taxation services
Tax compliance services
Fees paid to PKF Mack & Co fi rm
2011
$
2010
$
476,420
(476,420)
437,309
(437,309)
476,420
(476,420)
437,309
(437,309)
2011
$
2010
$
156,200
175,450
15,000
21,000
EUROZ LIMITED Annual Report 2011 49
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
Note 25. Contingent liabilities
The parent entity and consolidated group had contingent liabilities at 30 June 2011 as follows:
Secured guarantees in respect of:
operating lease of a controlled group entity
Note 26. Commitments for expenditure
2011
$
2010
$
791,000
821,000
2011
$
2010
$
(a) Operating leases
Commitments for minimum lease payments in relation to non-cancellable operating leases are payable as follows:
Within one year
Later than one year but not later than fi ve years
Later than fi ve years
1,126,508
3,948,029
4,408,558
1,079,582
4,072,658
5,410,437
Commitments not recognised in the fi nancial statements
9,483,095
10,562,677
The current lease on the premises at Level 14, 1 William Street is for the period of 10 years commencing on 1 February 2003
and expiring on 31 January 2013 has been sublet to Rio Tinto until the expiry of the lease.
A new lease has been entered on the premises at Level 18, 54-58 Mounts Bay Road for the period of 10 years commencing
2 July 2010 and expiring on 1 July 2020.
(b) Plant, Property and Equipment
Within a year
Commitments contracted for
Commitments not contracted for
(c) Other commitments
Commitments for the cost of services supplied to the Group but not recognised as liabilities, payable:
Within one year
-
-
-
-
2,635,000
3,524,000
6,159,000
-
Note 27. Employee benefi ts
Employee benefi t and related on-costs liabilities
Provision for employee entitlements – current
Aggregate employee benefi t and related on costs liabilities
2011
$
1,067,736
1,067,736
2010
$
921,947
921,947
50 EUROZ LIMITED Annual Report 2011
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
Note 28. Related parties
All key management personnel have the title of director.
(a) Key management personnel compensation
Short-term employee benefi ts
- Executive Directors
- Specifi ed executives
Post-employment benefi ts
- Executive Directors
- Specifi ed executives
Total compensation
2011
$
2010
$
4,383,179
6,549,159
2,380,901
6,724,833
10,932,338
9,105,734
150,000
271,615
421,615
72,871
368,966
441,837
11,353,953
9,547,571
Individual directors’ and executives’ compensation disclosure
(b)
Information regarding individual directors’ and executives’ compensation and some equity instruments disclosures as
required by Corporation Regulation 2M.3.03 is provided in the remuneration report section of the directors’ report.
Apart from the details disclosed in this note, no director has entered into a material contract with the group since the end
of the previous fi nancial year and there were no material contracts involving directors’ interest existing at year end.
(c)
The ultimate parent entity within the Group is Euroz Limited.
Parent entity
EUROZ LIMITED Annual Report 2011 51
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
(d)
Wholly-owned group transactions
(i) Loans to key management personnel
There were no loans to key management personnel at the end of the year.
(ii) Shareholdings of key management personnel
The movement during the reporting period in the number of shares in Euroz Limited held, directly, indirectly or benefi cially,
by each key management person, including related parties, is as follows:
Balance at
1 July 2010
Grant as
remuneration
On exercise
of options
Bought &
Balance at
(sold) * 30 June 2011
2011
Directors of Euroz Limited
Ordinary shares
P Diamond
A McKenzie
J Hughes
G Chessell
D Young
9,000,000
9,100,000
9,400,000
3,102,000
4,000,000
Key management personnel of the consolidated entity
Ordinary shares
R Caldow
S Yeo
K Paganin (resigned 22 July 2010)
O Foster
P Rees
M Hepburn
R Kane
A Clayton
A Brittain
G Allen
R Black
N McGlew (appointed 1 July 2010)
D Woods (appointed 1 July 2010)
M Argento (appointed 14 February 2011)
B Beresford (appointed 21 March 2011)
4,500,000
3,200,000
4,905,522
2,101,200
1,000,000
1,222,000
2,330,000
2,000,000
265,400
500,000
1,800,000
150,094
350,000
-
-
58,926,216
*Only disclosed to date of resignation.
2010
Directors of Euroz Limited
Ordinary shares
P Diamond
A McKenzie
J Hughes
9,000,000
9,000,000
9,000,000
Key management personnel of the consolidated entity
Ordinary shares
R Caldow
G Chessell
S Yeo
K Paganin (resigned 22 July 2010)
D Young
O Foster
P Rees
M Hepburn
R Kane
A Clayton
A Brittain
G Allen
R Black
N McGlew (appointed 1 July 2010)
D Woods (appointed 1 July 2010)
4,500,000
2,820,000
3,200,000
4,905,522
4,000,000
2,099,000
1,000,000
1,222,000
2,330,000
2,000,000
15,400
412,000
1,800,000
75,540
275,200
57,654,662
52 EUROZ LIMITED Annual Report 2011
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
900,000
50,000
500,000
-
202,001
-
-
-
-
100,000
-
-
-
-
-
-
-
-
-
-
1,752,001
100,000
-
-
-
-
10,000,000
9,150,000
9,900,000
3,102,000
4,202,001
-
-
-
-
-
-
-
-
38,000
-
-
67,712
-
1,000,000
2,000,000
3,205,712
4,500,000
3,200,000
4,905,522
2,101,200
1,100,000
1,222,000
2,330,000
2,000,000
303,400
500,000
1,800,000
217,806
350,000
1,000,000
2,000,000
63,883,929
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100,000
400,000
-
282,000
-
-
-
2,200
-
-
-
-
-
-
-
7,554
-
791,754
-
-
-
9,000,000
9,100,000
9,400,000
-
-
-
-
-
-
-
-
-
-
250,000
88,000
-
67,000
74,800
479,800
4,500,000
3,102,000
3,200,000
4,905,522
4,000,000
2,101,200
1,000,000
1,222,000
2,330,000
2,000,000
265,400
500,000
1,800,000
150,094
350,000
58,926,216
Balance at
1 July 2009
Grant as
remuneration
On exercise
of options
Bought &
Balance at
(sold) * 30 June 2010
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
(iii) Option holdings of key management personnel
The movement during the reporting period in the number of options over ordinary shares in Euroz Limited held, directly,
indirectly or benefi cially, by each key management person, including related parties, is as follows:
Balance at Granted as
remuner-
1 July 2010
ation Exercised Bought
Total not
Balance at exercisable at exercisable at
30 June ‘11
30 June ‘11
30 June’11
Total
2011
Directors of Euroz Limited
Ordinary shares
P Diamond
A McKenzie
J Hughes
G Chessell
D Young
900,000
800,000
500,000
-
202,001
Key management personnel
of the consolidated entity
Ordinary shares
450,000
R Caldow
320,000
S Yeo
391,552
K Paganin (resigned 22 July 2010)
200,000
O Foster
P Rees
100,000
M Hepburn (resigned 8 February 2011) 122,200
233,000
R Kane
200,000
A Clayton
-
A Brittain
41,200
G Allen
180,000
R Black
-
N McGlew (appointed 1 July 2010)
23,260
D Woods (appointed 1 July 2010)
-
M Argento (appointed 14 Feb 2011)
-
B Beresford (appointed 21 March 2011)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(900,000)
(50,000)
-
-
(202,001)
-
-
-
-
-
-
-
-
-
-100,000
-
-
-
-
-
-
-
-
-
-
-
-
27,239
-
-
-
29,377
-
-
-
91,251
-
-
-
-
-
750,000
500,000
-
-
450,000
320,000
418,791
200,000
-
122,200
262,377
200,000
-
41,200
271,251
-
23,260
-
-
-
750,000
500,000
-
-
450,000
320,000
418,791
200,000
-
122,200
262,377
200,000
-
41,200
271,251
-
23,260
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
4,663,513
- (1,252,001) 147,867
3,559,079
3,559,079
(iv) Option holdings of key management personnel
2010
Directors of Euroz Limited
Ordinary shares
P Diamond
A McKenzie
J Hughes
Key management personnel
of the consolidated entity
Ordinary shares
R Caldow
G Chessell
S Yeo
K Paganin (resigned 22 July 2010)
D Young
O Foster
P Rees
M Hepburn
R Kane
A Clayton
A Brittain
G Allen
R Black
N McGlew (appointed 1 July 2010)
D Woods (appointed 1 July 2010)
Balance at Granted as
remuner-
1 July 2009
ation Exercised Bought
Total not
Balance at exercisable at exercisable at
30 June ‘10
30 June ‘10
30 June’10
Total
900,000
900,000
900,000
450,000
282,000
320,000
391,552
202,001
202,200
100,000
122,200
233,000
200,000
-
41,200
180,000
7,554
23,260
5,454,967
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
100,000
400,000
-
282,000
-
-
-
2,200
-
-
-
-
-
-
-
7,554
-
791,754
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
900,000
800,000
500,000
900,000
800,000
500,000
450,000
-
320,000
391,552
202,001
200,000
100,000
122,200
233,000
200,000
-
41,200
180,000
-
23,260
450,000
-
320,000
391,552
202,001
200,000
100,000
122,200
233,000
200,000
-
41,200
180,000
-
23,260
4,663,213
4,663,213
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
EUROZ LIMITED Annual Report 2011 53
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
The company has applied the option under Corporations Amendments Regulation to transfer key management personnel
remuneration disclosures required by AASB 124 paragraphs 25.4 to 25.7.2 to the Remuneration Report in the Directors’
report.
Wholly owned group
The wholly owned group consists of Euroz Limited and its wholly owned controlled entities, Euroz Securities Limited, Detail
Nominees Pty Ltd, Zero Nominees Pty Ltd and Westoz Funds Management Pty Ltd Ownership interests in these controlled
entities are set out in Note 29.
Transactions between related parties are on normal commercial terms and conditions no more favourable than those
available to other parties unless otherwise stated.
Transactions with subsidiaries consists of:
(i)
Subsidiaries company
- Loans advanced by Euroz Limited to subsidiaries
- Payments of dividends to Euroz Limited by subsidiaries
(ii)
Director related entities
- A former Director of Euroz Securities Limited
has a brother who is a partner in a law fi rm Steinepreis Paganin.
The consolidated entity received legal advisory services from
Steinepreis Paganin recognised as legal fee expense.
(iii) Associated Companies
2011
$
2010
$
7,359,828
16,400,000
6,915,909
16,400,000
-
48,530
- Dividends received by Euroz Limited from Associates
- Performance fee received by the Euroz Group from Associates
- Management fee received by the Euroz Group from Associates
4,376,702
5,859,837
3,115,030
834,924
6,939,430
3,162,643
Ownership interests in related parties
Interests held in the following classes of related parties are set out in the following notes:
(a) controlled entities - Note 29
Other transactions with directors and specifi ed executives
During the year ended 30 June 2011 the Directors and key management personnel transacted share business through
Euroz Securities Limited on normal terms and conditions.
Aggregate amounts of the above transactions with Directors and key management personnel of the consolidated group:
Amounts recognised as revenue
Brokerage earned by Euroz Securities Limited on Directors’ accounts
Note 29. Investments in controlled entities
Name of entity
Country of
incorporation
Class of
shares
Euroz Securities Limited
Detail Nominees Pty Limited
Zero Nominees Pty Limited
Westoz Funds Management Pty Ltd
Australia
Australia
Australia
Australia
Ordinary
Ordinary
Ordinary
Ordinary
The ultimate parent entity in the wholly owned group is Euroz Limited.
2011
$
2010
$
73,481
67,671
Equity holding
2011
%
100
100
100
100
2010
%
100
100
100
100
Cost of parent entity’s
investment
2011
$
25,000,000
-
-
1,450,000
2010
$
25,000,000
-
-
1,450,000
54 EUROZ LIMITED Annual Report 2011
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
Note 30. Events occurring after reporting date
The directors are not aware of any other matter or circumstance subsequent to 30 June 2010 that has signifi cantly affected,
or may signifi cantly affect:
(a) the consolidated entity’s operations in future fi nancial years: or
(b) the results of those operations in future fi nancial years: or
(c) the consolidated entity’s state of affairs in future fi nancial years.
Note 31. Reconciliation of cash fl ows from operating activities
Profi t for the period
Adjustments for:
Depreciation and amortisation
Share of net profi ts of associate
Dividend received from associate
Realised gain in associates
Fair value movement on inventories
Fair value movement on derivatives
Changes in assets and liabilities
Decrease in trade debtors and other receivables
Decrease/(increase) in prepayments
Decrease in accrued income
(Increase)/decrease in inventories
Increase in long term deposit
Decrease in deferred tax asset
Decrease in trade creditors and other liabilities
Increase/(decrease) in provision for income taxes payable
Decrease in provision for deferred tax liabilities
Increase in provisions
Net cash from operating activities
Note 32. Credit facilities
Unrestricted access was available at balance date to the following lines of credit:
Credit standby arrangements
Bank overdrafts
Unused at balance date
Bank overdrafts
2011
$
26,566,040
2010
$
26,331,750
1,145,045
(7,794,638)
-
(944,127)
-
-
185,064
457,282
335,205
(10,069,163)
124,053
(351,592)
(1,457,729)
(86,746)
(1,130,071)
37,411
-
(253,131)
(310,020)
480,651
422,104
75,970
13,977,035
111,702
149,993
(510,139)
(5,000,000)
67,400
(12,581,275)
1,936,025
(72,493)
41,585
16,750,759
15,132,432
2011
$
2010
$
20,000,000
20,000,000
20,000,000
20,000,000
Euroz Securities Ltd, a wholly owned subsidiary of Euroz Limited, has a bank overdraft facility as at 30 June 2011 for up to
$10,000,000. The facility may be drawn down at any time, is repayable on demand and interest is incurred at the standard
variable rate. The facility is secured by a fi xed and fl oating charge over the assets of Euroz Limited and Euroz Securities
Limited.
Euroz Limited has a bank overdraft facility as at 30 June 2011 for up to $10,000,000. The facility may be drawn down at any
time, is repayable on demand and interest is incurred at the standard variable rate. The facility is secured by a fi xed and
fl oating charge over the assets of Euroz Limited.
EUROZ LIMITED Annual Report 2011 55
NOTES TO THE FINANCIAL STATEMENTS
for the year ended 30 June 2011
Note 33. Earnings per share
Basic earnings per share
Diluted earnings per share
Weighted average number of shares used as the denominator
Weighted average number of ordinary shares used as the denominator
in calculating basic earnings per share.
2011
¢
19.38
16.66
2010
¢
20.07
18.49
2011
Number
2010
Number
137,062,530
131,232,079
Weighted average number of ordinary shares and potential ordinary shares
used as the denominator in calculating diluted earnings per share.
159,497,978 142,434,415
The profi t after tax fi gures used to calculate the earnings per share for both the basic and diluted calculations was the same
as the profi t fi gure from income statement.
Note 34. Parent entity disclosures
2011
$
2010
$
41,990,525
81,981,042
39,325,967
70,795,039
123,971,567
110,121,006
24,663,701
-
16,355,870
-
24,663,701
16,355,870
87,261,731
15,703,870
79,296,164
19,647,318
(3,843,735)
186,000
(5,364,346)
186,000
99,307,866
93,765,136
21,487,221
-
17,776,852
(2,804,522)
21,487,221
14,972,330
Financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Equity
Issued capital
Retained earnings
Reserves
Asset revaluation reserve
Option premium reserve
Total equity
Financial performance
Profi t for the year
Other comprehensive income
Total comprehensive income
Note 35. Company details
The registered offi ce and principal place of business address of the company is:
Euroz Limited
Level 18 Alluvion
58 Mounts Bay Road
PERTH WA 6000
56 EUROZ LIMITED Annual Report 2011
DIRECTORS’ DECLARATION
for the year ended 30 June 2011
The Directors declare that:
1.
The fi nancial statements, notes and additional disclosures included in the Directors’ report and designated as audited,
are in accordance with the Corporations Act 2001 and:
(a)
comply with Accounting Standards and Corporations Regulations 2001;
(b)
(c)
give a true and fair view of the company’s and consolidated group’s fi nancial position as at 30 June 2011 and
of their performance for the year ended on that date;
the fi nancial statements are in compliance with International Financial Reporting Standards, as stated in note
1 to the fi nancial statements.
2.
The Chief Financial Offi cer has declared that:
(a)
the fi nancial records of the company for the fi nancial year have been properly maintained in accordance with
section 295A of the Corporations Act 2001;
(b)
the fi nancial statements and notes for the fi nancial year comply with the Accounting Standards; and
(c)
the fi nancial statements and notes for the fi nancial year give a true and fair view;
3.
In the Directors’ opinion there are reasonable grounds to believe that the company will be able to pay its debts as and
when they become due and payable.
This declaration is made in accordance with a resolution of the Board of Directors.
Peter Diamond
Executive Chairman
Jay Hughes
Director
15 August 2011
EUROZ LIMITED Annual Report 2011 57
INDEPENDENT AUDIT REPORT
To Members Of Euroz Limited
(cid:3)
(cid:3)
(cid:3)
(cid:44)(cid:49)(cid:39)(cid:40)(cid:51)(cid:40)(cid:49)(cid:39)(cid:40)(cid:49)(cid:55)(cid:3)(cid:36)(cid:56)(cid:39)(cid:44)(cid:55)(cid:50)(cid:53)(cid:182)(cid:54)(cid:3)(cid:53)(cid:40)(cid:51)(cid:50)(cid:53)(cid:55)(cid:3)
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(cid:76)(cid:81)(cid:3) (cid:72)(cid:84)(cid:88)(cid:76)(cid:87)(cid:92)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:86)(cid:87)(cid:68)(cid:87)(cid:72)(cid:80)(cid:72)(cid:81)(cid:87)(cid:86)(cid:3) (cid:82)(cid:73)(cid:3) (cid:70)(cid:68)(cid:86)(cid:75)(cid:3) (cid:73)(cid:79)(cid:82)(cid:90)(cid:86)(cid:3) (cid:73)(cid:82)(cid:85)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:92)(cid:72)(cid:68)(cid:85)(cid:3) (cid:87)(cid:75)(cid:72)(cid:81)(cid:3) (cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:15)(cid:3) (cid:81)(cid:82)(cid:87)(cid:72)(cid:86)(cid:3) (cid:70)(cid:82)(cid:80)(cid:83)(cid:85)(cid:76)(cid:86)(cid:76)(cid:81)(cid:74)(cid:3) (cid:68)(cid:3) (cid:86)(cid:88)(cid:80)(cid:80)(cid:68)(cid:85)(cid:92)(cid:3) (cid:82)(cid:73)(cid:3)
(cid:86)(cid:76)(cid:74)(cid:81)(cid:76)(cid:73)(cid:76)(cid:70)(cid:68)(cid:81)(cid:87)(cid:3) (cid:68)(cid:70)(cid:70)(cid:82)(cid:88)(cid:81)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3) (cid:83)(cid:82)(cid:79)(cid:76)(cid:70)(cid:76)(cid:72)(cid:86)(cid:15)(cid:3) (cid:82)(cid:87)(cid:75)(cid:72)(cid:85)(cid:3) (cid:72)(cid:91)(cid:83)(cid:79)(cid:68)(cid:81)(cid:68)(cid:87)(cid:82)(cid:85)(cid:92)(cid:3) (cid:76)(cid:81)(cid:73)(cid:82)(cid:85)(cid:80)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3) (cid:68)(cid:81)(cid:71)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:182)(cid:3) (cid:71)(cid:72)(cid:70)(cid:79)(cid:68)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:82)(cid:73)(cid:3) (cid:40)(cid:88)(cid:85)(cid:82)(cid:93)(cid:3)
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(cid:87)(cid:75)(cid:72)(cid:3)(cid:72)(cid:81)(cid:87)(cid:76)(cid:87)(cid:76)(cid:72)(cid:86)(cid:3)(cid:76)(cid:87)(cid:3)(cid:70)(cid:82)(cid:81)(cid:87)(cid:85)(cid:82)(cid:79)(cid:79)(cid:72)(cid:71)(cid:3)(cid:68)(cid:87)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:182)(cid:86)(cid:3)(cid:72)(cid:81)(cid:71)(cid:3)(cid:82)(cid:85)(cid:3)(cid:73)(cid:85)(cid:82)(cid:80)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:3)(cid:87)(cid:82)(cid:3)(cid:87)(cid:76)(cid:80)(cid:72)(cid:3)(cid:71)(cid:88)(cid:85)(cid:76)(cid:81)(cid:74)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:73)(cid:76)(cid:81)(cid:68)(cid:81)(cid:70)(cid:76)(cid:68)(cid:79)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:17)(cid:3)(cid:3)
(cid:3)
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58 EUROZ LIMITED Annual Report 2011
INDEPENDENT AUDIT REPORT
To Members Of Euroz Limited
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(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:22)(cid:19)(cid:3)(cid:45)(cid:88)(cid:81)(cid:72)(cid:3)(cid:21)(cid:19)(cid:20)(cid:20)(cid:17)(cid:3)(cid:55)(cid:75)(cid:72)(cid:3)(cid:71)(cid:76)(cid:85)(cid:72)(cid:70)(cid:87)(cid:82)(cid:85)(cid:86)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:68)(cid:81)(cid:92)(cid:3)(cid:68)(cid:85)(cid:72)(cid:3)(cid:85)(cid:72)(cid:86)(cid:83)(cid:82)(cid:81)(cid:86)(cid:76)(cid:69)(cid:79)(cid:72)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:83)(cid:85)(cid:72)(cid:83)(cid:68)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:68)(cid:81)(cid:71)(cid:3)(cid:83)(cid:85)(cid:72)(cid:86)(cid:72)(cid:81)(cid:87)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:82)(cid:73)(cid:3)
(cid:87)(cid:75)(cid:72)(cid:3)(cid:53)(cid:72)(cid:80)(cid:88)(cid:81)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:76)(cid:81)(cid:3)(cid:68)(cid:70)(cid:70)(cid:82)(cid:85)(cid:71)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)(cid:86)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:22)(cid:19)(cid:19)(cid:36)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:36)(cid:70)(cid:87)(cid:3)(cid:21)(cid:19)(cid:19)(cid:20)(cid:17)(cid:3)(cid:50)(cid:88)(cid:85)(cid:3)(cid:85)(cid:72)(cid:86)(cid:83)(cid:82)(cid:81)(cid:86)(cid:76)(cid:69)(cid:76)(cid:79)(cid:76)(cid:87)(cid:92)(cid:3)
(cid:76)(cid:86)(cid:3) (cid:87)(cid:82)(cid:3) (cid:72)(cid:91)(cid:83)(cid:85)(cid:72)(cid:86)(cid:86)(cid:3) (cid:68)(cid:81)(cid:3) (cid:82)(cid:83)(cid:76)(cid:81)(cid:76)(cid:82)(cid:81)(cid:3) (cid:82)(cid:81)(cid:3) (cid:87)(cid:75)(cid:72)(cid:3) (cid:53)(cid:72)(cid:80)(cid:88)(cid:81)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3) (cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:15)(cid:3) (cid:69)(cid:68)(cid:86)(cid:72)(cid:71)(cid:3) (cid:82)(cid:81)(cid:3) (cid:82)(cid:88)(cid:85)(cid:3) (cid:68)(cid:88)(cid:71)(cid:76)(cid:87)(cid:3) (cid:70)(cid:82)(cid:81)(cid:71)(cid:88)(cid:70)(cid:87)(cid:72)(cid:71)(cid:3) (cid:76)(cid:81)(cid:3) (cid:68)(cid:70)(cid:70)(cid:82)(cid:85)(cid:71)(cid:68)(cid:81)(cid:70)(cid:72)(cid:3) (cid:90)(cid:76)(cid:87)(cid:75)(cid:3)
(cid:36)(cid:88)(cid:86)(cid:87)(cid:85)(cid:68)(cid:79)(cid:76)(cid:68)(cid:81)(cid:3)(cid:36)(cid:88)(cid:71)(cid:76)(cid:87)(cid:76)(cid:81)(cid:74)(cid:3)(cid:54)(cid:87)(cid:68)(cid:81)(cid:71)(cid:68)(cid:85)(cid:71)(cid:86)(cid:17)(cid:3)(cid:3)
(cid:3)
(cid:50)(cid:83)(cid:76)(cid:81)(cid:76)(cid:82)(cid:81)(cid:3)
(cid:3)
(cid:44)(cid:81)(cid:3)(cid:82)(cid:88)(cid:85)(cid:3)(cid:82)(cid:83)(cid:76)(cid:81)(cid:76)(cid:82)(cid:81)(cid:15)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:53)(cid:72)(cid:80)(cid:88)(cid:81)(cid:72)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:53)(cid:72)(cid:83)(cid:82)(cid:85)(cid:87)(cid:3)(cid:82)(cid:73)(cid:3)(cid:40)(cid:88)(cid:85)(cid:82)(cid:93)(cid:3)(cid:47)(cid:76)(cid:80)(cid:76)(cid:87)(cid:72)(cid:71)(cid:3)(cid:73)(cid:82)(cid:85)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:92)(cid:72)(cid:68)(cid:85)(cid:3)(cid:72)(cid:81)(cid:71)(cid:72)(cid:71)(cid:3)(cid:22)(cid:19)(cid:3)(cid:45)(cid:88)(cid:81)(cid:72)(cid:3)(cid:21)(cid:19)(cid:20)(cid:20)(cid:15)(cid:3)(cid:70)(cid:82)(cid:80)(cid:83)(cid:79)(cid:76)(cid:72)(cid:86)(cid:3)(cid:90)(cid:76)(cid:87)(cid:75)(cid:3)
(cid:86)(cid:72)(cid:70)(cid:87)(cid:76)(cid:82)(cid:81)(cid:3)(cid:22)(cid:19)(cid:19)(cid:36)(cid:3)(cid:82)(cid:73)(cid:3)(cid:87)(cid:75)(cid:72)(cid:3)(cid:38)(cid:82)(cid:85)(cid:83)(cid:82)(cid:85)(cid:68)(cid:87)(cid:76)(cid:82)(cid:81)(cid:86)(cid:3)(cid:36)(cid:70)(cid:87)(cid:3)(cid:21)(cid:19)(cid:19)(cid:20)(cid:17)(cid:3)(cid:3)
(cid:3)
(cid:3)
(cid:51)(cid:46)(cid:41)(cid:3)(cid:48)(cid:36)(cid:38)(cid:46)(cid:3)(cid:9)(cid:3)(cid:38)(cid:50)(cid:3)
(cid:3)
(cid:3)
(cid:54)(cid:44)(cid:48)(cid:50)(cid:49)(cid:3)(cid:41)(cid:40)(cid:53)(cid:48)(cid:36)(cid:49)(cid:44)(cid:54)(cid:3)
(cid:51)(cid:36)(cid:53)(cid:55)(cid:49)(cid:40)(cid:53)(cid:3)
(cid:3)
(cid:20)(cid:24)(cid:3)(cid:36)(cid:56)(cid:42)(cid:56)(cid:54)(cid:55)(cid:3)(cid:21)(cid:19)(cid:20)(cid:20)(cid:3)
(cid:58)(cid:40)(cid:54)(cid:55)(cid:3)(cid:51)(cid:40)(cid:53)(cid:55)(cid:43)(cid:15)(cid:3)
(cid:58)(cid:40)(cid:54)(cid:55)(cid:40)(cid:53)(cid:49)(cid:3)(cid:36)(cid:56)(cid:54)(cid:55)(cid:53)(cid:36)(cid:47)(cid:44)(cid:36)(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:3)
(cid:25)(cid:28)(cid:3)
EUROZ LIMITED Annual Report 2011 59
CORPORATE GOVERNANCE STATEMENT
Introduction – the Euroz Group
Euroz Limited (“Euroz”) is the listed holding company of the Euroz group of companies (“the Euroz Group”). The Euroz
Group consists of Euroz together with its wholly owned subsidiaries Euroz Securities Limited (“Euroz Securities”) and
Westoz Funds Management Limited (“Westoz Funds Management”).
Euroz Securities conducts a substantial stockbroking and corporate fi nance business which generates the majority of the
revenues of the Euroz Group and which employs the majority of staff within the Euroz Group. Revenue generated by Euroz
Securities is paid by way of dividends to Euroz. Euroz Securities holds an Australian Financial Services Licence (“AFSL”)
and is regulated by the Australian Securities and Investments Commission (“ASIC”) pursuant to the Corporations Act 2001
and the ASIC Market Integrity Rules. Euroz Securities is a Participant of the ASX Group and is regulated pursuant to the
Operating Rules of the ASX Group.
Westoz Funds Management is a specialist manager of equity funds managing the portfolios of Westoz Investment
Company Limited and Ozgrowth Limited which are both listed investment companies. Revenue generated by Westoz
Funds Management through management and performance fees is paid by way of dividends to Euroz. Westoz Funds
Management also holds an AFSL and its activities are therefore regulated by ASIC pursuant to the Corporations Act.
Approach to Corporate Governance
Euroz is committed to maintaining a high standard of corporate governance. In this regard, Euroz has adopted the ASX
Corporate Governance Council’s Corporate Governance Principles and Recommendations with 2010 Amendments (“2010
Principles and Recommendations”).
In considering its approach to Corporate Governance in the context of the Revised Principles and Recommendations, Euroz
has taken account of the following:
•
•
•
Euroz is a holding company and the majority of the activity within the Euroz Group is conducted by its wholly owned
subsidiary Euroz Securities which conducts a substantial stockbroking and corporate advisory business.
Euroz Securities and Westoz Funds Management are subject to a rigorous regulatory regime (administered by both
ASX and ASIC, where applicable) which includes extensive governance, risk management and reporting obligations.
Each member of the Board works day to day in the business of the Euroz Group and each member holds a substantial
quantity of Euroz shares.
• Many staff within the Euroz Group are largely remunerated by commission based payments and many staff hold Euroz
shares. In these circumstances, the interests of the Directors and staff of the Euroz Group are closely aligned to the
interests of Euroz’s shareholders.
•
Euroz has a relatively small number of employees and operates from a single location.
In these circumstances, Euroz has decided to adopt an owner-manager model (“the Direct Governance Model”) to
Corporate Governance. The key features of the Direct Governance Model being that:
•
•
each member of the Board and the senior executives work in an operational capacity in the business of the Euroz
Group on a daily basis;
Corporate Governance is largely achieved as a result of this close operational involvement rather than via the use of
mechanisms and structures which are more suited to different types of businesses including those which have large
numbers of employees who operate from various locations; and
• many corporate governance related issues are dealt with as part of compliance related activities that the Euroz Group
undertakes pursuant to obligations created by the Corporations Act, the ASIC Marker Integrity Rules and the Operating
Rules of the ASX Group.
More generally, Euroz believes that the Direct Governance Model (as opposed to other corporate governance mechanisms
and structures) is best suited to dealing with the various types of risk that are an inherent and unavoidable part of
conducting a stockbroking and corporate advisory style business.
In accordance with ASX Listing Rule 4.10.3, Euroz provides the following statement regarding the extent to which it has
followed the 2010 Principles and Recommendations.
60 EUROZ LIMITED Annual Report 2011
CORPORATE GOVERNANCE STATEMENT
PRINCIPLE 1: LAY SOLID FOUNDATIONS FOR MANAGEMENT AND OVERSIGHT
Recommendation 1.1: Companies should establish the functions reserved to the Board and those delegated to senior
executives and disclose those functions.
The Board has adopted a Charter which sets out the role and functions of Board. The Charter is available from Euroz’s
website.
In accordance with the Direct Governance Model, the members of the Board are also the most senior executives of the
Euroz Group and play an integral part in the day-to-day management of the Group’s activities. Accordingly, Euroz does not
delegate functions in the manner anticipated by this Recommendation.
The roles and responsibilities of the Board are to:
•
•
Oversee control and accountability of the company.
Set broad targets, objectives and strategies.
• Monitor fi nancial performance.
•
•
•
•
•
•
•
Assess and review risk exposure and management.
Oversee compliance, corporate governance and legal obligations.
Approve all major purchases, disposals, acquisitions and issue of new shares.
Approve the annual and half-year fi nancial statements.
Appoint and remove the Company’s Auditor.
Appoint and assess the performance of the Managing Director and members of the senior management team.
Report to shareholders.
The Directors due to their long association with Euroz, their extensive relevant business experience and the fact that their
interests are closely aligned to shareholders’ interests clearly understand what is required of them. Accordingly, Euroz has
formed the view that letters of appointment are not required with respect to the Directors.
Similarly in the context of the matters referred to above, with respect to senior executives (including the Company Secretary
and the Chief Operating Offi cer/Chief Financial Offi cer of Euroz Securities), Euroz has formed the view that written position
statements are not required at this time.
Recommendation 1.2: Companies should disclose the process for evaluating performance of senior executives.
The performance of senior executives is reviewed by the Board on an annual basis and also pursuant to the Board’s
involvement in the day to day operations of the Euroz Group. The performance of senior executives is assessed against 3
broad criteria:
•
•
•
the fi nancial performance of the respective group or department managed by the senior executive (as applicable);
the extent to which the senior executive has contributed to the Euroz Group achieving its organisational aims with a
particular focus on the maintenance of the commercial reputation of the Euroz Group; and
the extent to which the senior executive has personally and each member of staff under his or her control has acted in
a manner which is in accordance with Euroz’s compliance related policies and procedures.
Each member of the Board assesses other Board members performance against these criteria.
The Remuneration Policy set out on pages 6-7 of the Directors Report outlines the methodology used to assess the
performance and remuneration of the members of the Board.
Recommendation 1.3: Companies should provide the information indicated in the Guide to reporting on Principle 1.
This information is set out above.
EUROZ LIMITED Annual Report 2011 61
CORPORATE GOVERNANCE STATEMENT
PRINCIPLE 2: STRUCTURE THE BOARD TO ADD VALUE
Recommendation 2.1: A majority of the Board should be independent Directors.
In accordance with the Direct Governance Model, Euroz has elected to not comply with this recommendation with the
result being that no Director is an Independent Director. Euroz has made this decision as it has formed the view that in
the circumstances set out above, the interests of the Board are so closely aligned with the interests of shareholders that
independent Directors are not required to achieve an effective system of corporate governance.
More generally, given the specialised nature of Euroz’s business, the fact that a person, generally speaking, may not be a
director of more than one ASX Group Participant and the relatively low level of fees paid to non-executive Directors, Euroz
has formed the view that it will be diffi cult to attract suitable candidates to be non-executive Directors. However, the Board
continues to keep this matter under review.
Each Director has the right to seek independent professional advice at the Company’s expense for which the prior approval
of the Chairman is required and which will be not unreasonably withheld.
The skills experience and expertise of each Director is set out at page 14 of the Annual Report.
The composition of the Board has recently changed (by the addition of 2 directors) this being the fi rst time that a change
in the composition of the Board has occurred since offi cial quotation of Euroz’s Securities commenced. It is not anticipated
that the composition of the Board will change again in the immediate future. Should it become apparent that it is likely that
new members will need to be appointed to the Board, Euroz will develop a policy about the mix of skills including diversity
related issues that should be taken account of in reviewing potential candidates to be a member of the Board.
Recommendation 2.2: The chair should be an independent director.
In accordance with the Direct Governance Model, Euroz has elected to not comply with this recommendation. Euroz has
made this decision as it has formed the view that in the circumstances set out above, the interests of the Board and its Chair
are so closely aligned with the interests of shareholders that an independent director as Chair is not required to achieve an
effective system of corporate governance.
Recommendation 2.3: The roles of chair and chief executive offi cer should not be exercised by the same individual.
Euroz, in its role as a holding company, does not have a Chief Executive Offi cer but an analogous role is undertaken in the
form of the Managing Director with respect to both Euroz Limited and Euroz Securities Limited. The role of the Chair and
the Managing Director are not exercised by the same individual.
Recommendation 2.4: The Board should establish a nomination committee.
Given that the composition of the Board is unlikely to vary in the near future and the signifi cant level of employees (of the
Euroz Group) ownership, Euroz has formed the view that a nomination committee is not necessary for Euroz to achieve an
effective system of corporate governance.
Should it become necessary, Euroz will consider putting a Board selection process in place that is in accordance with this
Recommendation but which refl ects the particular characteristics of Euroz’s business.
Recommendation 2.5: Companies should disclose the process for evaluating the performance of the Board, its
committees and individual Directors.
A review of the performance of the Board and its Directors is undertaken by each Director with respect to each other
Director and the performance of the Board itself on an annual basis and also as part of the day to day operations of the
Euroz Group in accordance with the matters set out with respect to Recommendation 1.2.
The Remuneration Policy set out on pages 16-18 of the Directors Report outlines the methodology used to assess the
performance and remuneration of the members of the Board.
An outcome and an advantage of the Direct Governance Model is that the Board has real time access to information
regarding all aspects of Euroz’s operations and has direct access, at all times, to the Company Secretary.
The Directors have extensive experience with respect to all aspects of the operations of the Euroz Group. In this regard, the
section “Information on Directors” set out on page 14 of the Directors Report outlines the experience and qualifi cations of
the Directors. The Directors, pursuant to obligations imposed by the Corporations Act the ASIC Market Integrity Rules and the
Operating Rules of the ASX Group and generally, undertake a substantial level of continuing education and therefore continue
to be fully aware of developments with respect to the industry and commercial environment in which Euroz operates.
62 EUROZ LIMITED Annual Report 2011
CORPORATE GOVERNANCE STATEMENT
Recommendation 2.6: Companies should provide the information indicated in the Guide to reporting on Principle 2.
This information is set out above.
PRINCIPLE 3: PROMOTE ETHICAL AND RESPONSIBLE DECISION-MAKING
Recommendation 3.1: Companies should establish a code of conduct and disclose the code or a summary of the code
as to:
•
•
the practices necessary to maintain confi dence in the company’s integrity;
the practices necessary to take into account their legal obligations and the reasonable expectations of their
stakeholders; and
the responsibility and accountability of individuals for reporting and investigating reports of unethical practices.
•
In its role as holding company and given the particular circumstances of the Euroz Group, Euroz does not have a code of
conduct of the type anticipated by this recommendation. However, Euroz Securities and Westoz Funds Management, in the
context of the onerous obligations imposed upon them by the Corporations Act, the ASIC Market Integrity Rules and the
ASX Operating Rules (as applicable) have detailed written compliance policies and procedures in place that include a code
of conduct. These compliance policies and procedures including the code of conduct apply to every person who works in
the Euroz Group.
Due to their length it is not practical to make these compliance related policies and procedures available on Euroz’s website.
More generally, these policies and procedures contain intellectual property of the Euroz Group, the confi dentiality of which
the Euroz Group wishes to maintain.
The Euroz Group is committed to all Directors and employees maintaining high standards of integrity and to ensuring that
their activities are in compliance with the letter and spirit of both the law and Euroz Group policies. In this regard, each Staff
member is issued with the Company’s Policies and Procedures Manual at the commencement of their employment with
the Euroz Group Euroz conducts a substantial level of training regarding the operation of these policies and procedures.
The Group provides a number of full time resources for the purpose of monitoring compliance with its policies and
procedures. These resources report directly to the Board for matters of compliance, governance and internal controls.
Recommendation 3.2: Companies should establish a policy concerning diversity and disclose the policy or a summary
of that policy. The policy should include requirements for the board to establish measurable objectives for achieving
gender diversity for the board to assess annually both the objectives and progress is achieving them.
Euroz has recently put in place a Diversity Policy that applies to each company within the Euroz Group. That policy is
available from Euroz’s website.
In accordance with the matters set out in the Diversity Policy, Euroz, given the small size and relatively stable nature of its
workforce has formed the view that it would not be appropriate or practical to, at this time, establish measurable objectives
for achieving gender diversity. The Board will review this position, at least, annually.
Recommendation 3.3: Companies should disclose in each annual report the measurable objectives for achieving
gender diversity set by the Board in accordance with the diversity policy and progress towards achieving them.
In accordance with the reasons set out above with respect to recommendation 3.2 Euroz does not, at this time, intend to
comply with this recommendation. However, this position will be reviewed, at least annually.
Recommendation 3.4: Companies should disclose in each annual report the proportion of women employees in the
whole organisation, women in senior executive positions and women on the Board.
Given the relatively small size of the Euroz Group’s workforce and the stable nature of that workforce Euroz does not, at this
time, intend to disclose this information. The Euroz has formed this view as given the particular characteristics of Euroz’s
workforce, such disclosure would be statistically meaningless. Euroz will review this position, at least, on an annual basis.
Recommendation 3.4: companies should provide the information indicated in the Guide to reporting on Principle 3
This information is set out above.
PRINCIPLE 4: SAFEGUARD INTEGRITY IN FINANCIAL REPORTING
Recommendation 4.1: the Board should establish an audit committee.
The Board has established an audit committee consisting of Mr Diamond and Mr McKenzie.
EUROZ LIMITED Annual Report 2011 63
CORPORATE GOVERNANCE STATEMENT
Recommendation 4.2: The audit committee should be structured so that it:
•
•
•
•
consists only of non-executive Directors;
consists of a majority of independent Directors;
is chaired by an independent chair, who is not chair of the Board; and
has at least 2 members.
Given the size and composition of the Board it Euroz considers that it is not possible for Euroz to comply with this
recommendation. However, in accordance with the matter set out above, the interests of the members of the audit
committee are closely aligned with the interests of shareholders in circumstances where the members of the audit
committee have suffi cient skills and experience such that they are properly able to discharge this function.
Recommendation 4.3: the audit committee should have a formal charter
A Charter has been adopted which sets out the role and functions of Audit Committee. The Charter is available from Euroz’s
website.
Further to the Charter, the Audit Committee meets at least twice a year. Its key roles and responsibilities are to:
Review the Company’s accounting policies.
Review the content of fi nancial statements.
Review the scope of the external audit, its effectiveness and independence of the external audit.
Ensure accounting records are maintained in accordance with statutory and accounting standard requirements.
•
•
•
•
• Monitor systems used to ensure fi nancial and other information provided is reliable, accurate and timely.
Review the audit process with the external auditors to ensure full and frank discussion of audit issues.
•
Present half and full year fi nancial statements to the Board.
•
A Partner of the Euroz’s auditor, PKF Mack & Co, and senior management of the Euroz Group may also attend meetings of
the Audit Committee by invitation.
Given the size and nature of Euroz’s business and in the context of the Direct Governance Model, Euroz has formed the view
that it is not necessary for Euroz to have an internal audit function so as to achieve its corporate governance objectives.
External Auditors are selected by the Board in consultation with relevant Euroz staff memebers as the Board see fi t.
The rotation of engagement Partners is in accordance with regulatory requirements and is on a 5 year within a 7 year basis.
Recommendation 4.4: Companies should provide the information indicated in the Guide to reporting on Principle 4.
This information is set out above.
PRINCIPLE 5: MAKE TIMELY AND BALANCED DISCLOSURE
Recommendation 5.1: Companies should establish written policies designed to ensure compliance with ASX Listing
Rule disclosure requirements and to ensure accountability at senior executive level for that compliance and disclose
those policies or a summary of those policies.
Given the nature of its business, Euroz, its Directors and staff are fully aware of ASX Listing Rule disclosure requirements.
In the context of the Direct Governance Model and given the close alignment between the interests of shareholders, the
Directors and staff of the Euroz Group, Euroz has formed the view that it does not require written policies with respect to
this issue. In this regard, Euroz views compliance with this obligation as being the collective responsibility of the Directors
and of the senior executives of the Euroz Group.
The Company Secretary has been appointed as the person responsible for communications with the Australian Securities
Exchange. This role includes responsibility for ensuring compliance with the continuous disclosure requirements of the
ASX Listing Rules and overseeing and co-ordinating information disclosure to the Australian Securities Exchange, analysts,
brokers, shareholders, the media and the public.
Recommendation 5.2: Companies should provide the information indicated in the Guide to reporting on Principle 5.
This information is set out above.
64 EUROZ LIMITED Annual Report 2011
CORPORATE GOVERNANCE STATEMENT
PRINCIPLE 6: RESPECT THE RIGHTS OF SHAREHOLDERS
Recommendation 6.1: Companies should design a communications policy for promoting effective communication with
shareholders and encouraging their participation at general meetings and disclose their policy or a summary of that
policy.
Euroz is committed to keeping shareholders fully informed of signifi cant developments. In addition to the public
announcement of its fi nancial information and disclosure of signifi cant matters pursuant to the ASX Listing Rules, the
Company provides the opportunity for shareholders to question the Board and senior executives about its activities at the
Company’s annual general meeting.
The Company’s auditor, PKF Mack & Co, attends each annual general meeting and is available to answer questions from
shareholders about the conduct of the audit and the preparation and content of the auditor’s report.
Euroz’s website provides detailed information regarding the operations of the Euroz Group including copies of all
information that has been released to the market.
Given the relatively small size of Euroz’s shareholder base, Euroz has formed the view that it does not need to put a written
communications policy in place at this time.
Recommendation 6.2: Companies should provide the information indicated in the Guide to reporting on Principle 6.
This information is set out above.
PRINCIPLE 7: RECOGNISE AND MANAGE RISK
Recommendation 7.1: Companies should establish policies for the oversight and management of business risks and
disclose a summary of those policies.
Euroz undertakes risk management in the context of the activities undertaken by the Euroz Group. The Euroz Group is
subject to extensive risk management obligations pursuant to the Corporations Act, the ASIC Market Integrity Rules and
the Operating Rules of the ASX Group and written policies and procedures are in place so as to ensure compliance with
these obligations. Risk management is achieved by way of the implementation of these policies and procedures in the
context of the day to day involvement of the Board in the business of the Euroz Group pursuant to the Direct Governance
Model. In particular, the fi nancial position of Euroz and matters of risk are considered by the Board on a daily basis. The
main area of exposure for Euroz is failure of trade settlements by clients and counter-parties in the context of a third party
clearing arrangement that has been entered into by Euroz Securities. Settlements and exposure are monitored on a daily
basis in the context of that third party clearing arrangement. Investments made by Euroz are undertaken pursuant to
criteria determined by the Board. Euroz’s investments are monitored by Board members on a daily basis. The Board is
responsible for ensuring that controls and procedures to identify, analyse, assess, prioritise, monitor and manage risk are in
place, are being maintained and are being adhered to.
For the reasons set out above, Euroz has decided to not make the relevant policies and procedures available on its website.
Recommendation 7.2: the Board should require management to design and implement the risk management and
internal control system to manage the company’s material business risks and report to it on whether those risks are
being managed effectively. The Board should disclose that management has reported to it as to the effectiveness of the
company’s management of its material business risks.
In accordance with the above, risk management is dealt with pursuant to the Direct Governance Model and accordingly
this recommendation is not appropriate for Euroz. More generally, the Board performs an internal audit function in
circumstances where the interests of the Board are closely aligned with the interests of shareholders. Euroz engages
external assistance with respect to this issue, as required.
Euroz has formed the view that, in all of the circumstances set out above, it is not necessary for the Board to convene a risk
management committee.
EUROZ LIMITED Annual Report 2011 65
CORPORATE GOVERNANCE STATEMENT
Recommendation 7.3: The Board should disclose whether it has received assurance from the chief executive offi cer (or
equivalent) and the chief fi nancial offi cer (or equivalent) that the declaration provided in accordance with section 295A
of the Corporations Act is founded on a sound system of risk management and internal control and that the system is
operating effectively in all material respects in relation to fi nancial reporting risks.
Annually, the Chief Financial Offi cer states in writing to the Board that:
•
•
The statement given in accordance with best practice recommendation 4.1 (the integrity of fi nancial statements) is
founded on a sound system of risk management and internal compliance and control which implements the policies
adopted by the Board.
The company’s risk management and internal compliance and control system is operating effi ciently and effectively
in all material respects.
Recommendation 7.4: Companies should provide the information indicated in the Guide to reporting on Principle 7.
This information is set out above.
PRINCIPLE 8: REMUNERATE FAIRLY AND RESPONSIBLY
Recommendation 8.1: The Board should establish a remuneration committee.
Euroz has formed the view that, given the relatively small size of the Board and the close alignment between the interests of
Board members and the interests of shareholders, a remuneration committee is not required. Instead, the Board performs
the functions that would otherwise be allocated to a remuneration committee. In this regard, the Board convenes separately
as a remuneration committee. In performing the functions that would be allocated to the remuneration committee the
Board undertakes its functions according to the principles set out below.
The objective of Euroz’s remuneration framework is to ensure reward for performance is competitive and appropriate to
the results delivered. The framework aligns executive reward with the creation of value for shareholders, and conforms to
market best practice.
The remuneration committee ensures that executive remuneration satisfi es the following key criteria:
•
•
•
•
•
Competitiveness and reasonableness.
Acceptability to shareholders.
Performance linked.
Transparency.
Capital management.
Euroz has structured an executive remuneration framework that is market competitive and complimentary to the reward
strategy of the organisation.
In accordance with the above, the remuneration committee has decided that there will be no equity-based remuneration
paid to Directors or staff of the Euroz Group.
Detailed information regarding the remuneration paid to Directors and senior executives of the Euroz Group is set out at
pages 8-12 of this report.
Recommendation 8.2: Companies should clearly distinguish the structure of non-executive Directors’ remuneration
from that of executive Directors and senior executives.
Euroz does not have any non-executive Directors. The remuneration structure adopted by the Euroz Group is in accordance
with the mechanisms usually adopted within the stockbroking/fi nancial advisory industries and is appropriate to Euroz’s
circumstances and goals.
Detailed information regarding both the remuneration paid to Directors and Staff of the Euroz Group and the structure that
underlies remuneration payments is set out at pages 8-12.
Recommendation 8.3: Companies should provide the information indicated in the Guide to reporting on Principle 8.
This information is set out above.
66 EUROZ LIMITED Annual Report 2011
SHAREHOLDER INFORMATION as at 30 September 2011
DISTRIBUTION OF SHAREHOLDERS
Size of Holdings
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - 9,999,999,999
Rounding
Total
Unmarketable Parcels
Total Holders
Units
365
760
435
773
119
0
2,452
179,836
2,246,751
3,459,087
23,129,017
114,560,636
143,575,327
Issued
Capital (%)
0.13
1.56
2.41
16.11
79.79
100
Minimum $ 500.00 parcel at $ 1.32 per unit
Minimum Parcel Size
379
Holders
167
Units
33638
SHAREHOLDERS - TOP 20
Rank
Name
1.
2.
3.
4.
5.
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
ZERO NOMINEES PTY LTD
NAVIGATOR AUSTRALIA LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
ICON HOLDINGS PTY LTD
JP MORGAN NOMINEES AUSTRALIA LIMITED
ICE COLD INVESTMENTS PTY LTD
ICE COLD INVESTMENTS PTY LTD
MR A. W. MCKENZIE + MRS C. P. MCKENZIE
YANDAL INVESTMENTS PTY LIMITED
ICE COLD INVESTMENTS PTY LTD
AUSTRALIAN EXECUTOR TRUSTEES LIMITED
WESTRADE RESOURCES PTY LTD
BNM HOLDINGS PTY LTD
BNM HOLDINGS PTY LTD
OSSON PTY LTD
TPIC PTY LTD
ICON HOLDINGS PTY LTD
NATIONAL NOMINEES LIMITED
ONYX (WA) PTY LTD
CITICORP NOMINEES PTY LIMITED
TOTAL
Units
43,620,721
17,616,975
4,660,123
3,500,000
3,364,990
2,500,000
2,420,000
2,071,500
1,530,000
1,500,000
1,299,868
1,163,200
1,000,000
1,000,000
1,000,000
1,000,000
990,000
831,061
770,000
757,469
92,595,907
%
30.38
12.27
3.25
2.44
2.34
1.74
1.69
1.44
1.07
1.04
0.91
0.81
0.70
0.70
0.70
0.70
0.69
0.58
0.54
0.53
64.49
EUROZ LIMITED Annual Report 2011 67
EUROZ SECURITIES LIMITED CONTACT DETAILS
Institutional Dealing
Andrew McKenzie
Ben Laird
Jay Hughes
Jonathan van Hazel
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Peter Schwarzbach
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Corporate
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Equities Research
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Retail Dealing
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Operations
Anthony Brittain
Adelaide de Vis
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Tania Castlehow
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Institutional Advisor
Institutional Advisor
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Bookings
Westoz Funds Management Ltd
Phil Rees
Dermot Woods
Fax +61 8 9321 8288
Fund Manager
Fund Manager
68 EUROZ LIMITED Annual Report 2011
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Telephone
+61 8 9321 7015
+61 8 9321 7023
Email
amckenzie@euroz.com.au
blaird@euroz.com.au
jhughes@euroz.com.au
jvanhazel@euroz.com.au
pdiamond@euroz.com.au
pschwarzbach@euroz.com.au
rblack@euroz.com.au
rkane@euroz.com.au
tbunney@euroz.com.au
Email
afresson@euroz.com.au
bberesford@euroz.com.au
bmcmanus@euroz.com.au
dyoung@euroz.com.au
mlaybourn@euroz.com.au
margento@euroz.com.au
nling@euroz.com.au
nmcglew@euroz.com.au
sfi sher@euroz.com.au
tstampfl i@euroz.com.au
tmickle@euroz.com.au
Email
aclayton@euroz.com.au
cobrien@euroz.com.au
gallen@euroz.com.au
gchessell@euroz.com.au
jbishop@euroz.com.au
kharvey@euroz.com.au
ofoster@euroz.com.au
rhamersley@euroz.com.au
sanderson@euroz.com.au
Email
bstatham@euroz.com.au
bstapleton@euroz.com.au
cmurray@euroz.com.au
cwebster@euroz.com.au
czerovich@euroz.com.au
gmccaw@euroz.com.au
jmackie@euroz.com.au
jpember@euroz.com.au
kmaes@euroz.com.au
khookey@euroz.com.au
ltravers@euroz.com.au
lrobinson@euroz.com.au
mswinney@euroz.com.au
mwilliamson@euroz.com.au
ngorton@euroz.com.au
pcosh@euroz.com.au
rcaldow@euroz.com.au
rgardner@euroz.com.au
rstewart@euroz.com.au
syeo@euroz.com.au
shepburn@euroz.com.au
sgrove@euroz.com.au
tbennett@euroz.com.au
truello@euroz.com.au
Email
abrittain@euroz.com.au
adevis@euroz.com.au
awreford@euroz.com.au
ahewett@euroz.com.au
aysmith@euroz.com.au
bwatkins@euroz.com.au
chorton@euroz.com.au
ctranchita@euroz.com.au
dlim@euroz.com.au
reception@euroz.com.au
ewhitehurst@euroz.com.au
fsumich@euroz.com.au
tcastlehow@euroz.com.au
Email
prees@westozfunds.com.au
dwoods@westozfunds.com.au
Level 18 Alluvion
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58 Mounts Bay Rd
58 Mounts Bay Rd
Perth Western Australia 6000
Perth Western Australia 6000
T +61 8 9488 1400
T +61 8 9488 1400
F +61 8 9488 1477
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www.euroz.com.au
www.euroz.com.au