A N N U A L R E P O R T 2 0 0 2
L
I
M
I
T
E
D
A B N 8 0 0 8 2 2 6 3 7 7 8
G A L E P A C I F I C L I M I T E D
C O N T E N T S
K E L M A T T A U S T R A L I A
R O C K L E A C A N V A S
M E I J E R
4 - 5
C H A I R M A N ’ S R E P O R T
A B C P R O D U C T S
J D & M J K N I G H T
P O R T C O
N O L A N W A R E H O U S E S J A G R I G S O N
L O W E S
B H P C O L L I E R S
H A R R I S S C A R F E
F O R T U N O F F
6 - 1 0
M A N A G I N G D I R E C T O R ’ S R E P O R T A N D
R E V I E W O F O P E R A T I O N S
1 2 - 1 3
C O R P O R A T E G O V E R N A N C E S T A T E M E N T
1 4 - 1 9
D I R E C T O R S ' R E P O R T
N L P R O D U C T S
P A T C H S C A N V A S M A N U F A C T
F I N A N C I A L R E P O R T :
A C A D E M Y T A R P S
W A L M A R T
M A X I T R A N S M A N U F A C T U R I N G
S U N ‘ N S U R F
C E B A R T L E T T
T A S M A N I N S U L A T I O N A U S T R A L I A
I C L
T A R G E T
D A R L I N G D O W N S T A R P A U L I N S
O R C H A R D S U P P L Y H A R D W A R E
T H O R B U I L D I N G P R O D U C T S
A B G A L
D I X I E L I N E
A B C P R O D U C T S
J A Y L O N I N D U S T R I E S
F R E D M E Y E R
B U N N I N G S
A M A R T
J O H N D A N K S & S O N
N L P R O D U C T S
H A R V E Y N O R M A N
R A D I N S C A N V A S
T H E H O M E D E P O T
2
K M A R T
M I T R E 1 0
2 0
2 2
2 4
2 5
2 6
I N D E P E N D E N T A U D I T R E P O R T
D I R E C T O R S ’ D E C L A R A T I O N
S T A T E M E N T O F F I N A N C I A L P E R F O R M A N C E
S T A T E M E N T O F F I N A N C I A L P O S I T I O N
S T A T E M E N T O F C A S H F L O W S
2 7 - 5 2
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
5 3 - 5 4
A D D I T I O N A L S T O C K E X C H A N G E I N F O R M A T I O N
3
D R H U W G D A V I E S
CHAIRMAN
C H A I R M A N ’ S R E P O R T
C H A I R M A N ’ S R E P O R T
( c o n t ’ d )
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
G A L E ’ S B U S I N E S S
Gale Pacific Limited (Gale) is a world-leading manufacturer
of advanced polymer fabrics. Gale manufactures its fabrics
in Melbourne, Australia, using its unique 'two step'
technology which provides a strong competitive advantage
for the Company.
In the past year Gale has derived 89% of its revenue from
the retail sector and 11% from industrial applications.
Gale's fabric that is not sold in rolls directly to retail or
industrial markets is shipped to the People’s Republic of China
to be converted into value-added products such as exterior
window furnishings, shade sails, gazebos and umbrellas.
These products are supplied to Gale operations in Australia,
New Zealand, the Middle East and United States of America.
W E L L P O S I T I O N E D F O R G R O W T H
At our last annual general meeting the Company
committed to improving manufacturing productivity
and working capital management.
The 2001/02 results show substantial improvements in
our manufacturing operation with our recycling program
now on track and our overall factory productivity
significantly improved. This has resulted in improved
profit margins.
Operating cashflow improved by $5.2 million on the
previous period. This was the result of improved
inventory planning, logistics management and
reduced debtor days in our Australian operations.
New product innovations will be a key factor in
organic growth. The Company is investing in new
products that continue to differentiate Gale from
its competitors in areas such as biological shearing,
fabric structures that improve the quality and
quantity of our drinking water in reservoirs and
large tank storages, and waterproof and fire
retardant commercial fabrics.
I N D U S T R I A L F A B R I C S
A C Q U I S I T I O N
On the 28th June 2002 Gale purchased selected assets, the
corresponding customer base and the ongoing business of
Visy Industrial Fabrics.
While details of this acquisition are dealt with in some detail
in the Managing Director’s report, I can confirm that at the
date of this report the administration, sales and marketing,
logistics and manufacturing operations have been installed
at Gale and are fully operational. There have been no
significant problems experienced with the integration of
the Industrial Fabrics business into Gale’s operations.
Woven scrim, a key component of many Industrial Fabrics
products, will be sourced offshore and we have qualified at
least three suppliers in the Asian region. The move to
offshore scrim will enhance margins in the second half of
the financial year.
As a result of the acquisition, Gale is now market leader in
both retail and industrial fabric markets in Australia with further
export potential existing in the USA industrial fabric market.
The shift in products to a balance between retail and industrial
will reduce the potential volatility of Gale’s earnings, which
up until now has been heavily dependent upon hot, dry
summers in its main Australian market.
F I N A N C I A L P E R F O R M A N C E
Gale recorded a net profit after income tax of $3.6 million, up
20% on last year, from sales of $55.8 million. This result was
achieved despite a very poor summer season in Australia as
well as K-Mart USA’s Chapter 11 bankruptcy, resulting in
lower than anticipated sales volumes to this key account plus
a significant provision in our USA accounts.
Improvements in manufacturing performance delivered
our most significant boost to earnings. Our US operations
contributed also to our overall performance with 4.6%
growth in revenue in difficult trading conditions.
The Company’s strong operating cash flow limited the
increase in the net debt to equity ratio post the acquisition
to 0.63, from the prior year’s ratio of 0.54.
Further information on the results and operating performance
is contained in the Managing Director’s Report and Review
of Operations.
D I V I D E N D S A N D O N G O I N G
D I V I D E N D P O L I C Y
Directors have declared a fully franked final dividend of
3 cents per share. The total amount of the dividend is
$1,259,919. The books closure date for determining
entitlements for the dividend is 26 September 2002. A
Dividend Reinvestment Plan is available to all shareholders.
The Company, having taken on additional debt at year end,
intends in future periods to adopt a dividend payout ratio
of approximately 50% to 55% of after tax profits, subject
to the successful integration of the Industrial Fabrics
business and ongoing satisfactory trading performance.
P E O P L E
This year has been full of challenges and opportunities.
The Board appreciates the efforts of all staff.
We look forward to an equally challenging year and
welcome our new employees from the Industrial Fabrics
acquisition. Their skills are already adding value to our
total business.
A N N U A L G E N E R A L M E E T I N G
A notice of the annual general meeting of the Company is
enclosed with this annual report.
DR HUW G DAVIES
CHAIRMAN
Dated: 24 September 2002
“This year has been full of
challenges and opportunities.
The Board appreciates the
efforts of all staff.”
4
5
G A R Y S G A L E
MANAGING DIRECTOR
M A N A G I N G D I R E C T O R ’ S R E P O R T
G A L E P A C I F I C L I M I T E D
A N D
R E V I E W
O F
O P E R A T I O N S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
P O S I T I O N E D F O R G R O W T H
R E S U L T S
Based on our 2001/02 performance, Gale Pacific Limited
(Gale) is well positioned to take advantage of its strategy to
expand globally its world leading advanced polymer fabric
range and related value added products.
With the addition of the Visy Industrial Fabrics acquisition
and Gale’s restructuring of that business, the Company has
developed a second leg of operations for global expansion
with the industrial fabric range building on the success of
our offshore development of our retail business.
Gale is now market leader in both retail and industrial
applications of its fabric in Australia. The addition of the
Industrial Fabrics business will reduce our seasonality,
provide significant cross selling opportunities and strong
growth prospects over the next several years.
While market conditions globally are weak, our product
range is somewhat insulated by the expanding Do-It-
Yourself phenomenon in retail. Added to this, the growth
in our industrial range of products depends more on the
replacement of older technologies with more competitive
and innovative solutions, and less on incremental growth
as markets expand.
This year Gale has demonstrated its ability to improve
upon the fundamentals of its business with substantial
improvements in factory productivity, cost control
and cash flow.
We will continue to build soundly on our recent
achievements, balancing our acquisition
opportunities with further organic growth from
our extensive R&D activities, whilst maintaining
disciplined control over our operations.
Our net profit for the year ended 30 June 2002 was $3.6 million.
This result represents an increase of 20% on the prior year’s
net profit of $3.0 million and exceeds by approximately 5%
our expectations as previously foreshadowed to the market.
This result was achieved notwithstanding the Company’s
maintenance of extended overhead facilities in anticipation
of the Industrial Fabrics acquisition, which was not
completed until year end.
We consider this result most satisfactory, particularly when
our significant improvement in working capital is taken into
account. The Company adjusted production to meet reduced
sales expectations and reduced overall inventories by 13%
year on year on our core business, before the impact of the
acquisition of the Industrial Fabrics Division of the Visy Group.
Our manufacturing and sourcing operations generated
positive productivity improvements.
The Company had a clear objective to improve cash flow by
better management of our inventory and receivables. The
improvement in inventory was complemented by a substantial
reduction in debtors’ collection days outstanding in our
Australian operations. These initiatives contributed significantly
to the improved net operating cash flow of $5.2 million year
on year, as referred to by the Chairman in his report.
The Company recorded an increase in overhead costs, partly
due to a prudent provision over our K-Mart USA debt, and
further as a result of building management capacity for future
growth. Increased R&D expenditure was substantially offset
by Government support.
An Enterprise Bargaining Agreement was concluded during
the year, whereby 3x8 hour shifts were introduced to the
Braeside, Victoria, plant, replacing the previous 2x12 hr shift
configuration. This change will enhance capacity utilization
in the plant through greater flexibility in scheduling and staff
deployment, and permit a reduction in capital spending
over the next few years.
Operations in the Peoples’ Republic of China (PRC) have
been augmented with new suppliers coming on line,
allowing the Company to spread current offshore production
requirements over a broader base. We are further assessing
our opportunities in the PRC post China’s entry into the
World Trade Organisation, with a view to further reducing
our cost base.
The addition of the Industrial Fabrics business will reduce our seasonality, provide significant
cross selling opportunities and strong growth prospects over the next several years.
6
7
M A N A G I N G D I R E C T O R ’ S R E P O R T
G A L E P A C I F I C L I M I T E D
A N D R E V I E W O F O P E R A T I O N S
( c o n t ’ d )
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
Gale has successfully transferred the customer interface from
Visy to Gale, with all sales of the new products having been
dispatched and invoiced from Gale’s Braeside operations
from the first week of July. All regional warehouses and
sales operations have been transferred to Gale and have
been operating through Gale’s systems from the second
week of July. This transition of the business has progressed
efficiently and without any significant problems.
We have also achieved a successful re-commissioning and
resumption of coating activities in our Braeside site.
Gale has hired the majority of the Visy sales, marketing
and administration teams as well as key technical and
operational personnel. All staff have been cross-trained
in the expanded range of products. This will assist in
achieving early sales growth.
In this transaction Gale did not acquire Visy’s weaving
operations but has contracted the use of this plant over the
near term whilst product is outsourced from offshore. This
outsourcing program is now nearing completion with three
offshore manufacturers producing the majority of our current
requirements.
The evident co-operative effort between our new industrial
team and our existing team has been rewarding with strong
empathy and a common philosophical approach. This
bodes well for the results this co-operation can deliver
to our shareholders.
I N D U S T R I A L F A B R I C S
A C Q U I S I T I O N
The acquisition included the fabric coating manufacturing
unit and all related inventories. The purchase price related
to assets only, and did not include goodwill. In addition, a
substantial supply agreement was completed with Visy to
supply coatings for their paper products used in the
Australian and USA markets.
Gale anticipates that the acquisition will add in excess of
$20 million p.a. in revenue from the fabric coating operation
as well as revenue from the Visy paper coating supply
agreement.
The Industrial Fabrics business has developed unique
and patented technologies that allowed it to grow into
Australia’s largest manufacturer of coated industrial
fabrics and to achieve solid market positions in most of
its product categories. The business supplies industrial
markets nationally, particularly the agricultural, mining,
transport and construction industries.
Gale believes that there are also several areas of
potential co-operation with Visy in the long term
management of Australia’s water resources.
This acquisition provides Gale with the opportunity
to substantially strengthen its industrial sales team
in parallel to its retail operations. This will allow Gale
to further expand the opportunities for its newly
patented range of shade enhanced fabrics with
fire retardant properties, ready for launch into
the Australian, USA and Middle East markets.
As a result of the acquisition, Gale has access to
a broader spectrum of markets with a range of
advanced coated fabrics. Most of these fabrics
will be manufactured at Gale’s Braeside site
using the newly acquired and sophisticated
extrusion coating equipment.
The Industrial Fabrics acquisition has diversified the Company’s revenue base
Pre-acquisition Product Mix
Post-acquisition Product Mix
Window Furnishings 13%
Retail Fabric 34%
Structures 26%
Window Furnishings 9%
Commercial/Industrial
Fabric 11%
Structures 18%
Retail Fabric 50%
Commercial/Industrial
Fabric 39%
Revenue
Profit Before Income Tax
Dividends
54,734
55,777
39,285
60,000
55,000
50,000
45,000
0
0
0
$
40,000
35,000
30,000
25,000
20,000
1999/00
2000/01
Years
20001/02
Share Price Progress
Gale Share Price
$0.51
$1.20
$1.00
$0.80
$0.60
$0.40
$0.20
$0.00
0
0
0
$
5,500
5,000
4,500
4,000
3,500
3,000
5,206
2,500
2,404
4,692
4,476
1,484
0
0
0
$
2,000
1,500
1,000
500
1999/00
2000/01
Years
20001/02
2000/01
20001/02
Years
Gale Share Price
All Ordinaries Index
All Ordinaries Index
$1.30
4200
4000
3800
3600
3400
3200
3000
2800
2-Jul-01
24-Aug-01
18-Oct-01
12-Dec-01
5-Feb-02
1-Apr-02
24-May-02
18-Jul-02
17-Sep-02
The Gale share price has outperformed the All Ordinaries Index since 2 July 2001
8
9
M A N A G I N G D I R E C T O R ’ S R E P O R T
G A L E P A C I F I C L I M I T E D
A N D R E V I E W O F O P E R A T I O N S
( c o n t ’ d )
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
O U T L O O K
O U R B O A R D
A high priority for the Company is to effectively manage the
integration of the Industrial Fabrics division into our existing
business and to deliver upon not only the business plans of
both Retail and Industrial businesses but to maximize the
synergies that this opportunity brings.
Management’s clear focus last year was on improving our
manufacturing efficiencies and cash flow. These efforts will
continue to drive down our cost base and more efficiently
manage our working capital requirements.
Both the Retail and the Industrial businesses will benefit from
the benefits of our R&D efforts of the past year, as follows:
• The launch and sale of our fire-retardant Commercial
98 fabric in Australia, USA and the Middle East.
• The expansion of the Company’s retail range in the
USA market.
• The implementation of the Bioclip (biological shearing)
program that is now commercialised.
• The launch and sale of fabric covers over reservoirs of
potable water to eradicate problems of algae bloom.
• The further development and sale of Polypropylene
and Polyethylene fabrics that can replace
environmentally harmful PVC coated polyester fabrics.
It is anticipated that the full benefits of new product
developments, ongoing productivity improvements
and of the Industrial Fabrics acquisition will be
generated in the second half of 2002/03.
The audit committee of the Board includes two non-executive
Directors and one executive Director and has the responsibility
of monitoring the group’s accounting and reporting practices,
including its system of internal controls.
The Board’s remuneration committee meets from time to
time to establish the remuneration levels for the senior
executives of the Company. Finally, the treasury committee
of the Board meets regularly to monitor the Company’s
exposure to exchange rate fluctuations, and has successfully
minimized exchange differences over the last three years.
At the annual general meeting our Chairman, Dr Huw Davies,
will retire as a Director of the Company by rotation in
accordance with the constitution of the Company and, being
eligible, offers himself for re-election.
O U R P E O P L E
During the year we have reviewed our operations both
internally and externally, and challenged our staff to improve
the fundamentals of our business.
Our people have responded positively to the changes we
have initiated from these reviews, from the shift changes in
our plant delivering production flexibility, to the new
logistics group who have contributed to our forecasting and
inventory management.
During the year we have stretched the capabilities of our
organisation and our people, and we have invested in
building our team in preparation for the future.
Our people are both challenged and excited by the growth
ahead and have integrated well with our new team from
Visy. The Directors join me in thanking all staff for their
contributions in 2001/02. We now look forward together
to the challenges of 2002/03.
GARY S GALE
MANAGING DIRECTOR
Dated: 24 September 2002
Biological shearing has become viable through the economic capture of wool using a
specially designed Gale disposable net.
1 0
1 1
C O R P O R A T E G O V E R N A N C E
C O R P O R A T E G O V E R N A N C E
S T A T E M E N T
S T A T E M E N T
( c o n t ’ d )
The Directors are responsible for the corporate governance
practices of the Company. This statement sets out the main
corporate governance practices that were in operation
throughout the financial year, except where otherwise indicated.
The Board of Directors ('the Board') is responsible for Gale
Pacific Limited and its controlled entities including:
• Setting and monitoring of objectives, goals and strategic
direction for management with a view to maximising
shareholder wealth;
• Accepting an annual budget and the monitoring
of financial performance;
• Ensuring adequate internal controls exist and are
appropriately monitored for compliance;
• Ensuring significant business risks are identified
and appropriately managed;
• Selecting, appointing and reviewing the performance
of the Chief Executive Officer;
• Selecting and appointing new Directors; and
• Maintaining the highest business standards and
ethical behaviour.
C O M P O S I T I O N O F T H E B O A R D
At the date of this statement, the Board comprises 3
Non-executive Directors and 2 Executive Directors.
The names and details of the Directors are contained
in the Directors’ Report.
Gale Pacific Limited’s Constitution provides that:
• The maximum number of Directors is 12 or such
other number as the Company by resolution
determines;
• The Directors may appoint any person to be a
Director, either to fill a casual vacancy or as an
addition to the existing Directors. Any Director
so appointed, other than the Managing
Director, only holds office until the next
general meeting and then must retire from
office. A Director who so retires is eligible
for re-election;
• At each annual general meeting one third
of the Directors or, if their number is not
3 or a multiple of 3, then the number
nearest to one third, who has held
office for 3 years or more must retire
from office. A Director who so
retires is eligible for re-election;
• In determining the number of Directors to retire at an
annual general meeting, no account is to be taken of
a Director appointed by the Directors to fill a casual
vacancy or as an addition to the existing Directors and
who only holds office until the next general meeting, or
the Managing Director, who is exempted from retirement
by rotation; and
• The number of Directors necessary to constitute a quorum
at a Directors’ meeting is 2, or such other number the
Directors may fix.
The Directors should bring characteristics to the Board that
will provide a mix of qualifications, skills and experience,
both nationally and internationally. When a vacancy exists or
whenever it is considered that the Board would benefit from the
services of a new Director with particular skills, the Board selects
one or more candidates with the appropriate expertise and
experience. Having regard to the size of the Board, it has not
been considered necessary to appoint a nomination committee.
T E R M S A N D C O N D I T I O N S O F
A P P O I N T M E N T A N D R E T I R E M E N T
O F N O N - E X E C U T I V E D I R E C T O R S
The terms and conditions of the appointment and retirement
of any new non-executive Directors will be set out in a letter
of appointment which prescribes:
• Remuneration;
• The term of appointment, subject to shareholder approval;
• The expectation of the Board in relation to attending and
preparing for all Board Meetings;
• Procedures for dealing with conflicts of interest; and
• The availability of independent professional advice.
Non-executive Directors are remunerated for their services
from the maximum aggregated amount approved by
shareholders for that purpose. Their compensation is
reviewed by the Board.
It is the practice of the Directors that when a potential conflict
of interest may arise, the Director concerned does not receive
a copy of the relevant Board paper and withdraws from the
Board Meeting whilst such a matter is being considered.
The Board has a policy of enabling Directors to seek
independent professional advice at the Group’s expense,
subject to estimated costs being approved by the Chairman
in advance as being reasonable.
In order to retain and attract executives of sufficient
calibre to facilitate the efficient and effective management
of the Company’s operations, the remuneration committee
seeks the advice of external advisors in connection with
the structure of remuneration packages.
A P P R O A C H T O C O R P O R A T E
C O M P L I A N C E A N D R I S K
I D E N T I F I C A T I O N A N D
M A N A G E M E N T
In relation to identifying areas of significant business risk
and putting in place arrangements to manage such risk
the Board relies on the advice and expertise of senior
management acting in consultation with the Company’s
external advisers. Where appropriate the Board obtains
advice directly from external advisers.
The Board has not considered it appropriate to appoint
a separate Corporate Governance Committee and
responsibility for developing and monitoring corporate
governance policies and practices in areas outside the
scope of the functions of the Audit Committee is retained
and exercised directly at Board level.
C O N T I N U O U S D I S C L O S U R E
The Board has established compliance procedures to
ensure that the Company complies with its continuous
disclosure obligations under the ASX Listing Rules and the
continuous disclosure provisions of the Corporations Law.
E T H I C A L S T A N D A R D S
The Group’s policy is that all Directors and staff maintain
the highest ethical standards of conduct.
Gale Pacific Limited is an equal opportunity employer.
A U D I T C O M M I T T E E
The Board has an established Audit Committee. The
primary objective of the Audit Committee is to assist the
Board in fulfilling the Board’s responsibilities relating to
accounting and reporting practices of the Company and
it’s subsidiaries. The main functions of the Audit
Committee are:
• To act as a committee of the Board of Directors in
discharging the Board’s responsibilities as they relate
to financial reporting policies and practices, accounting
policies and management and internal controls;
• To provide through regular meetings a forum for
communication between the Board, senior financial
management and external auditors; and
• To enhance the credibility and objectivity of the
Company’s financial reports.
The responsibilities of the Audit Committee include
monitoring compliance with requirements of the
Corporations Law, Stock Exchange Listing Rules,
Australian Securities Commission, taxation legislation
and other laws as they apply to the subject matter of
the Audit Committee’s functions (for example internal
accounting, external auditing, financial reporting and
taxation compliance).
The members of the Audit Committee are Mr T. Eversteyn,
Mr D. Reilly, Mr G. Gale and Mr R. House.
The Audit Committee is able to obtain independent
professional advice as required and also has access at all
times to the Executive Directors and other management
personnel.
R E M U N E R A T I O N C O M M I T T E E
The Board has an established remuneration committee
consisting of two non-executive Directors,
Mr T. Eversteyn and Mr D. Reilly.
The Remuneration Committee reviews the remuneration
policies applicable to all Directors and Executive Officers
on an annual basis and makes recommendations on
remuneration packages and terms of employment to the
Board. Remuneration packages, which consist of base
salary, fringe benefits, incentive schemes (including
performance-related bonuses), superannuation, and
entitlements upon retirement or termination, are reviewed
with due regard to performance and other relevant factors.
1 2
1 3
D I R E C T O R S ’
R E P O R T
G A L E P A C I F I C L I M I T E D
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
The Directors present their report together with the financial report of Gale
Pacific Limited ('the Company') and the consolidated financial statements of
the economic entity, being the Company and its controlled entities, for the
year ended 30 June 2002 and the Independent Audit Report thereon.
D I R E C T O R S
The Directors in office at any time during or since the end
of the year to the date of this report are:
MR GARY STEPHEN GALE
MANAGING DIRECTOR
- age 50
D R H U W G E R A I N T D A V I E S
CHAIRMAN
BSc, PhD. - age 61
Huw Davies is the Chairman of Vic Power Trading and
Gascor Limited. He is a Director of Snowy Hydro Limited
and a member of the Board of the Goulburn Broken
Catchment Management Authority. Dr Davies held senior
executive positions with ACI International and BTR Nylex
from 1968 to 1997.
Appointed Director on 9 October 2000.
MR THEO JOHN EVERSTEYN
DEPUTY CHAIRMAN
FCA, Grad Dip Industrial Accounting and Bus. Admin.
- age 61
Theo Eversteyn has been a partner of the Chartered
Accounting firm Bentleys MRI since 1973. During
his career Theo has focused on manufacturing and
distribution businesses and obtained postgraduate
diploma qualifications in Industrial Accounting and
Business Administration. He is also the non-
executive chairman of Valcorp Fine Foods Pty Ltd
and the Joval Group. Mr Eversteyn was a
director of the Alzheimer’s Association of
Victoria for the period 1990 to 2002, and is
currently a director of Bentleys Australia Pty
Ltd, the national licensor for Bentleys MRI.
Appointed Director on 8 April 1998.
Gary Gale was responsible for the restructuring of the Gale
Group both in Australia and the United States in 1996/97.
He was also responsible for Gale entering the advanced
polymer fabric industry as a manufacturer in 1977. Mr Gale
studied textile engineering in Germany, and is the son of
the founder of the Gale business.
Appointed Director on 8 April 1998.
MR PETER RONALD MCDONALD
CHIEF OPERATING OFFICER/GENERAL MANAGER
Bachelor of Business (Marketing) - age 36
Peter McDonald has been the Chief Operating Officer/General
Manager of the Gale Group since 1997. He joined the Gale
Group in 1988 and has held the position of Product Manager
followed by National Marketing and National Sales and
Marketing Manager. Mr McDonald is responsible for the
day-to-day operations of the business including the United
States and Middle East businesses.
Appointed Director on 7 July 1998.
MR DARYL EDWARD JAMES REILLY
DIRECTOR
Graduate Diploma of Business (Accounting),
CPA, ACIS, MAICD, FTMA - age 48
Daryl Reilly is an Executive Director and principal of the venture
capital management company, Advent Management Group
Limited ('AMG') and has been AMG’s Chief Financial Officer
and Company Secretary since its formation in 1984. He is
Secretary of the AMG investment funds, the publicly listed
Advent Limited, Advent III Private Equity Limited and of
Advent IV Private Equity Fund.
Appointed Director on 17 July 1998.
Warehousing
Sales Office
Manufacturing
Expanding in a global market.
The Company’s ongoing investment in research and development provides a technical edge.
1 4
1 5
D I R E C T O R S ’
R E P O R T
( c o n t ’ d )
G A L E P A C I F I C L I M I T E D
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
P R I N C I P A L A C T I V I T I E S
The principal activities of the economic entity during the
course of the financial year were the manufacture and
marketing of advanced durable knitted polymer fabrics
and value-added structures made from these fabrics.
On 28 June 2002 the economic entity acquired selected
assets and corresponding customer base of Visy Industries
Pty Ltd’s industrial fabrics business.
R E S U L T S
The consolidated profit of the economic entity for the
financial year attributable to the members of Gale Pacific
Limited was $3,614,553.
R E V I E W O F O P E R A T I O N S
A comprehensive review of the operations of the economic
entity during the financial year and the results thereof is
contained in the accompanying Chairman’s Report and
the Managing Director’s Report and Review of Operations
commencing on page 6 of this Annual Report.
S T A T E O F A F F A I R S
In the opinion of the Directors there were no significant
changes in the state of affairs of the Company and its
controlled entities that occurred during the financial
year under review not otherwise disclosed in this
report or the accompanying financial report.
E V E N T S S U B S E Q U E N T
T O B A L A N C E D A T E
There has not arisen in the interval between the end
of the financial year and the date of this report any
item, transaction or event of a material and unusual
nature likely, in the opinion of the Directors to
significantly affect or may significantly affect the
operations of the economic entity, the result of
those operations, or the state of affairs of the
economic entity in subsequent financial years.
L I K E L Y D E V E L O P M E N T S
Disclosure of information regarding likely
developments in the operations of the
consolidated entity in future financial years
and the expected results of those operations
is likely to result in unreasonable
prejudice to the consolidated entity.
Accordingly, this information has not
been disclosed in this report.
E N V I R O N M E N T A L R E G U L A T I O N
A N D P E R F O R M A N C E
The economic entity’s operations are not subject to
any significant environmental regulations under the
Commonwealth or State legislation. However, the Directors
believe that the economic entity has adequate systems in
place for the management of its environmental requirements
and is not aware of any breach of those environmental
requirements as they apply to the economic entity.
D I V I D E N D S
Dividends paid or declared by the Company in respect of
the current financial year were:
$
As proposed and provided for in last year’s
report and paid on 18 October 2001:
- An ordinary dividend of 3.0 cents
per share (fully franked to 30%) 1,141,178
Interim dividend in respect of the year
ended 30 June 2002 paid on 18 April 2002:
- An ordinary dividend of 3.0 cents
per share (fully franked to 30%)
1,144,118
The final dividend determined by the
Directors of the Company in respect of
the year ended 30 June 2002, to be paid
on 17 October 2002:
- An ordinary dividend of 3.0 cents
per share (fully franked to 30%)
Total dividends provided for or paid in
respect of the year ended 30 June 2002
O P T I O N S
1,259,919
2,404,037
The Company has entered into an executive option agreement
to grant options to specified option holders over unissued
shares in the Company. The options are exercisable upon
achievement of certain conditions. The number
of options that have been granted at the date of this report
or are available to be granted are as follows:
Issued Options
issued (refer 'Directors' Shareholdings’ below)
Future Options
available to be granted
760,785
760,755
The issue price of each option is zero. Each option entitles the
option holder to 1 ordinary share in Gale Pacific Limited in the
event that the option is exercised. The exercise price for the
issued options is $1.00. Options are not exercisable before
1 December 2002 or after 1 December 2004.
From cost-effective water management technologies to agriculture and mining - Gale’s
position in non-retail markets has significantly strengthened.
1 6
1 7
D I R E C T O R S ’
R E P O R T
( c o n t ’ d )
D I R E C T O R S ’
R E P O R T
( c o n t ’ d )
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
I N D E M N I F I C A T I O N O F O F F I C E R S A N D A U D I T O R S
D I R E C T O R S ’ A N D E X E C U T I V E S ’ R E M U N E R A T I O N
During the financial year, the Company paid a premium in respect of a contract insuring the Directors of the Company
(as named above), the Company Secretary, Mr R L House, and all executive officers of the Company and of any related body
corporate against a liability incurred as a Director, Secretary or executive officer to the extent permitted by the Corporations
Act 2001. The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.
The remuneration committee reviews the remuneration packages of all Directors and executive officers on an annual basis
and makes recommendations to the Board. Remuneration packages are reviewed with due regard to performance and
other relevant factors, and advice is sought from external advisors in relation to their structure.
Remuneration packages contain the following key elements:
The Company has not otherwise, during or since the financial year, indemnified or agreed to indemnify an officer or
auditor of the Company or of any related body corporate against a liability incurred as an officer or auditor.
a) Salary/fees;
D I R E C T O R S ’ M E E T I N G S
The following table sets out the number of Directors’ meetings (including meetings of committees of Directors) held during
the financial year and the number of meetings attended by each Director while they were a Director or committee member.
D I R E C T O R S ’ M E E T I N G S
A U D I T C O M M I T T T E E
M E E T I N G S
R E M U N E R A T I O N
C O M M I T T E E M E E T I N G S
H E L D
A T T E N D E D
H E L D
A T T E N D E D
H E L D
A T T E N D E D
DIRECTORS
G S Gale
P R McDonald
H G Davies
T J Eversteyn
D E J Reilly
23
23
23
23
23
23
21
21
21
22
2
-
-
2
2
2
-
-
2
2
-
-
-
1
1
-
-
-
1
1
D I R E C T O R S ’ S H A R E H O L D I N G S
The following table sets out each Director’s relevant interest in shares and options in shares of the Company as at the date
of this report:
N A M E
F U L L Y P A I D O R D I N A R Y S H A R E S
E X E C U T I V E O P T I O N S
G S Gale
P R McDonald
H G Davies
T J Eversteyn
D E J Reilly
15,731,134
470,510
15,576
185,000
88,267
427,942
332,843
-
-
-
b) Benefits, including the provision of motor vehicles and superannuation; and
c) Incentive schemes, including share options under the executive share option plan as disclosed in Note 19 to the
financial statements.
The following table discloses the remuneration of the Directors of the Company:
N A M E
S A L A R Y / F E E S
B E N E F I T S
T O T A L
EXECUTIVE DIRECTORS
G S Gale
P R McDonald
NON-EXECUTIVE DIRECTORS
H G Davies
T J Eversteyn
D E J Reilly
271,526
219,635
40,000
30,000
30,000
91,712
37,024
-
-
-
363,238
256,659
40,000
30,000
30,000
In addition to the above amounts, Messrs Gale and McDonald hold options over 427,942 and 332,843 shares respectively.
The value of these options is conditional on future events. Details of these options are disclosed in Note 19 to the
Financial Statements.
The following table discloses the remuneration of the executive of the Company and the consolidated entity:
N A M E
R L House
S A L A R Y
141,309
B E N E F I T S
29,210
T O T A L
170,519
P R O C E E D I N G S O N B E H A L F O F T H E C O M P A N Y
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 any such proceedings during the year.
Dated this 24th day of September 2002.
Signed in accordance with a resolution of Directors.
1 8
DR. HUW G DAVIES
DIRECTOR
GARY S GALE
DIRECTOR
1 9
I N D E P E N D E N T A U D I T R E P O R T
G A L E P A C I F I C L I M I T E D
t o t h e m e m b e r s o f G a l e P a c i f i c L i m i t e d
S C O P E
A U D I T O P I N I O N
We have audited the financial report of Gale Pacific Limited
for the financial year ended 30 June 2002 comprising of the
Directors’ Declaration, Statement of Financial Performance,
Statement of Financial Position, Statement of Cash Flows
and Notes to the Financial Statements.
The financial report includes the consolidated financial
statements of the consolidated entity comprising the Company
and the entities it controlled at the year’s end or from time
to time during the financial year. The Company’s Directors
are responsible for the financial report. We have conducted
an independent audit of this financial report in order to
express an opinion on it to the members of the Company.
Our audit has been conducted in accordance with
Australian Auditing Standards to provide reasonable
assurance whether the financial report is free of material
misstatement. Our procedures included examination,
on a test basis, of evidence supporting the amounts
and other disclosures in the financial report, and the
evaluation of accounting policies and significant
accounting estimates. These procedures have been
undertaken to form an opinion whether, in all material
respects, the financial report is presented fairly in
accordance with Accounting Standards and other
mandatory professional reporting requirements in
Australia and the Corporations Act 2001 so as to present
a view which is consistent with our understanding of
the Company’s and consolidated entity’s financial
position and performance as represented by the
results of their operations and their cash flows.
The audit opinion expressed in this report has
been formed on the above basis.
In our opinion, the financial report of Gale Pacific Limited is
in accordance with:
(a)
the Corporations Act 2001, including:
(i) giving a true and fair view of the Company’s and
consolidated entity’s financial position as at 30
June 2002 and of their performance for the year
ended on that date; and
(ii) complying with Accounting Standards in Australia
and the Corporations Regulations 2001; and
(b)
other mandatory professional reporting requirements
in Australia.
PITCHER PARTNERS
M W PRINGLE
PARTNER
Melbourne
24 September 2002
2 0
2 1
Pitch covers at the Melbourne Cricket Ground and a range of horticultural applications;
Gale’s industrial fabrics withstand a variety of weather extremes.
D I R E C T O R S ’
D E C L A R A T I O N
G A L E P A C I F I C L I M I T E D
The Directors of the Company declare that:
1. The financial statements and notes, as set out on pages
24 to 52 are in accordance with the Corporations Act
2001 including:-
(a) compliance with Accounting Standards in Australia
and the Corporations Regulations 2001; and
(b) providing a true and fair view of the financial position as at
30 June 2002 and of the performance, as represented by
the results of the operations and the cash flows, of the
Company and economic entity for the year ended on
that date.
2. 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.
DR HUW G DAVIES
GARY S GALE
DIRECTOR
DIRECTOR
Dated this 24th day of September 2002
2 2
2 3
The Company’s Coolaroo brand is strengthening around the world.
S T A T E M E N T O F F I N A N C I A L
S T A T E M E N T O F F I N A N C I A L
P E R F O R M A N C E
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
P O S I T I O N
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
E C O N O M I C E N T I T Y
P A R E N T E N T I T Y
E C O N O M I C E N T I T Y
P A R E N T E N T I T Y
Note
2001/02
$
2000/01
$
2001/02
$
2000/01
$
Note
2001/02
$
2000/01
$
2001/02
$
2000/01
$
Revenue from ordinary activities
2
55,777,021
54,734,117
49,186,535
48,231,167
Expenses from ordinary activities,
excluding borrowing costs expense:
- Changes in inventories of
finished goods and work in
progress
- Raw materials and consumables
used
(1,039,322)
1,705,124
(50,656)
(5,797)
(21,650,609)
(25,050,120)
(21,868,915)
(22,553,358)
- Employee benefits expense
(9,323,401)
(9,333,182)
(7,819,293)
(8,058,498)
- Depreciation and amortisation
expenses
- Operating overheads
- Other expenses from ordinary
activities
Borrowing costs expense
Profit from ordinary activities
before income tax expense
Income tax expense relating to
ordinary activities
Net profit from ordinary activities
after income tax
Net profit from ordinary activities
after income tax expense
attributable to the members of the
parent entity
Net exchange difference on
translation of financial reports
of self-sustaining foreign operations
Total valuation adjustment
attributable to members of the
parent entity recognised directly
in equity
Total changes in equity other
than those resulting from
transactions with owners as
owners
Basic earnings per share
(cents per share)
Diluted earnings per share
(cents per share)
(2,588,936)
(10,448,221)
(4,376,214)
(1,144,662)
(2,183,010)
(9,953,843)
(3,753,747)
(1,472,910)
(2,324,450)
(1,975,797)
(7,352,197)
(6,943,655)
(3,638,210)
(2,980,643)
(1,144,662)
(1,481,282)
3
4
5,205,656
4,692,429
4,988,152
4,232,137
(1,591,103)
(1,682,915)
(1,557,099)
(1,419,393)
3,614,553
3,009,514
3,431,053
2,812,744
21
3,614,553
3,009,514
3,431,053
2,812,744
(407,181)
106,660
(407,181)
106,660
-
-
-
-
22
32
32
3,207,372
3,116,174
3,431,053
2,812,744
9.46
9.28
9.25
8.61
CURRENT ASSETS
Cash assets
Receivables
Inventories
Other
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Receivables
Other financial assets
Plant and equipment
Intangible assets
Deferred tax assets
Other
5
6
7
8
6
9
10
11
12
8
TOTAL NON-CURRENT ASSETS
23(e)
TOTAL ASSETS
CURRENT LIABILITIES
Payables
Interest-bearing liabilities
Current tax liabilities
Provisions
Other
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Payables
Interest-bearing liabilities
Deferred tax liabilities
Provisions
TOTAL NON-CURRENT
LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Reserves
Retained profits
TOTAL EQUITY
13
14
15
16
17
13
14
15
16
19
20
21
22
526,482
11,933,743
15,201,585
415,893
28,077,703
-
-
24,827,286
3,081,437
106,952
752,574
28,768,249
56,845,952
5,244,674
7,170,497
793,346
1,748,870
239,189
5,205,576
10,300,861
11,394,641
639,264
27,540,342
-
-
20,641,544
2,994,242
121,128
728,595
24,485,509
52,025,851
5,238,640
10,429,232
54,756
1,854,861
975,798
7,450
6,585,551
12,080,458
326,112
4,157,366
5,034,510
7,285,030
420,636
18,999,571
16,897,542
5,653,479
3,441,323
10,133,031
462,769
24,078,692
19,811,566
3,019,048
2,920,399
-
752,574
36,945,116
55,944,687
4,608,205
7,170,497
777,371
1,734,989
239,189
-
728,595
34,056,360
50,953,902
4,593,847
10,429,232
42,993
1,827,816
975,798
15,196,576
18,553,287
14,530,251
17,869,686
-
10,720,362
2,894,624
590,323
14,205,309
29,401,885
27,444,067
20,858,448
(298,287)
6,883,906
27,444,067
-
7,117,959
2,922,047
100,424
10,140,430
28,693,717
23,332,134
17,549,850
108,894
5,673,390
23,332,134
-
10,720,362
2,730,631
590,323
14,041,316
28,571,567
27,373,120
49,250
7,117,959
2,779,077
100,424
10,046,710
27,916,396
23,037,506
20,858,448
17,549,850
-
-
6,514,672
5,487,656
27,373,120
23,037,506
2 4
T h e a c c o m p a n y i n g n o t e s f o r m p a r t o f t h e s e f i n a n c i a l s t a t e m e n t s
T h e a c c o m p a n y i n g n o t e s f o r m p a r t o f t h e s e f i n a n c i a l s t a t e m e n t s
2 5
S T A T E M E N T O F C A S H F L O W S
N O T E S T O T H E F I N A N C I A L
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
106,747
103,392
106,747
103,392
(a) Principles of Consolidation
E C O N O M I C E N T I T Y
P A R E N T E N T I T Y
Note
2001/02
$
2000/01
$
2001/02
$
2000/01
$
CASH FLOW FROM OPERATING ACTIVITIES
Receipts from customers
Payments to suppliers and
employees
Interest received
Borrowing costs paid
Income tax paid
Net cash provided by
operating activities
56,258,585
54,555,921
49,666,748
49,798,585
(47,350,513)
(49,877,651)
(42,234,614)
(42,073,135)
21,451
(1,144,662)
(769,237)
17,941
(1,371,370)
(1,544,801)
13,261
-
(1,144,662)
(1,405,494)
(769,237)
(1,476,389)
23(b)
7,015,624
1,780,040
5,531,496
4,843,567
CASH FLOW USED IN INVESTING ACTIVITIES
Proceeds from sale of plant
and equipment
Proceeds from sale of other
non-current assets
Payment for plant and equipment
Payment for acquisition of business
Payment for other non-current assets
Amounts advanced to related parties
Proceeds from repayment of
related party receivables
-
22,500
-
-
(2,758,417)
(4,900,000)
(821,901)
-
-
(5,590,776)
(2,581,188)
(5,421,687)
-
(4,900,000)
-
(521,137)
(821,901)
(615,601)
-
-
-
(3,367,789)
1,451,745
-
Net cash used in investing activities
(8,373,571)
(5,986,021)
(6,744,597)
(9,301,685)
CASH FLOW FROM FINANCING ACTIVITIES
Proceeds from share issue
Repayment of capital
Proceeds from borrowings
Repayment of principal on
finance leases
Repayment of principal on
hire purchases
Dividends paid
Net cash provided by/(used in)
financing activities
Net increase/(decrease) in cash held
Cash at beginning of year
Effects of exchange rate
changes on the balance of cash
held in foreign currencies
Cash at end of year
23(a)
-
-
944,074
13,693,037
(7,145,583)
8,728,814
-
-
13,693,037
(7,145,583)
944,074
8,716,917
(1,411,492)
(1,280,202)
(1,411,492)
(1,280,202)
(584,675)
(1,976,737)
(3,028,830)
(4,386,777)
5,131,794
(384,332)
360,685
(581,923)
(798,860)
12,615,283
8,409,302
(3,277,508)
(584,675)
(1,976,737)
(581,923)
(798,860)
(3,028,830)
12,603,386
(4,241,931)
8,145,268
4,083,584
(4,061,684)
-
-
-
5,131,794
(158,347)
4,083,584
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
The financial report is a general purpose financial report that has been prepared in accordance with
Accounting Standards, Urgent Issues Group Consensus Views and other authoritative
pronouncements of the Australian Accounting Standards Board and the Corporations Act 2001.
The financial report covers Gale Pacific Limited as an individual parent entity and Gale Pacific
Limited and controlled entities as an economic entity. Gale Pacific Limited is a company limited by
shares, incorporated and domiciled in Australia.
The financial report has been prepared on an accruals basis and is based on historical costs and
does not take into account changing money values or, except where stated, current valuations of
non-current assets. Cost is based on the fair value of consideration given in exchange for assets.
The following is a summary of the material accounting policies adopted by the economic entity in
the preparation of the financial report. The accounting policies have been consistently applied,
unless otherwise stated.
A controlled entity is any entity controlled by Gale Pacific Limited. Control exists where Gale
Pacific Limited has the capacity to dominate the decision-making in relation to the financial and
operating policies of another entity so that the other entity operates with Gale Pacific Limited to
achieve the objectives of Gale Pacific Limited. Details of the controlled entities are contained in
Note 30. All intercompany balances and transactions between entities in the economic entity,
including any unrealised profits or losses, have been eliminated on consolidation. Where a
controlled entity has entered or left the economic entity during the year its operating results
have been included from the date control was obtained or until the date control ceased.
(b)
Income Tax
The economic entity adopts the liability method of tax-effect accounting whereby the income
tax expense shown is based on the profit from ordinary activities adjusted for any permanent
differences between taxable and accounting income.
Timing differences which arise due to the different accounting periods in which items of revenue
and expense are included in the determination of accounting profit and taxable income are
brought to account as either a provision for deferred income tax or as a future income tax
benefit at the rate of income tax applicable to the period in which the benefit will be received
or the liability will become payable.
Future income tax benefits are not brought to account unless realisation of the asset is assured
beyond any reasonable doubt. Future income tax benefits in relation to tax losses are not
brought to account unless there is virtual certainty of realisation of the benefit. The tax effect of
capital losses are not recorded unless realisation is virtually certain.
The amount of benefits 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 sufficient future assessable income to enable
the benefit to be realised and comply with the conditions of deductibility imposed by the law.
2 6
T h e a c c o m p a n y i n g n o t e s f o r m p a r t o f t h e s e f i n a n c i a l s t a t e m e n t s
2 7
N O T E S T O T H E F I N A N C I A L
N O T E S T O T H E F I N A N C I A L
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
(c)
Inventories
(e) Leases (cont’d)
Inventories are measured at the lower of cost and net realisable value. Costs are assigned on a first-
in first-out basis and include direct materials, direct labour and an appropriate proportion of variable
and fixed overhead expenses.
(d) Plant and Equipment
Each class of plant and equipment is carried at cost less, where applicable, any accumulated
depreciation.
Plant and equipment
Plant and equipment are measured on the cost basis. The carrying amount of plant and equipment
is reviewed annually by Directors to ensure it is not in excess of the recoverable amount from those
assets. The recoverable amount is assessed on the basis of the expected net cash flows that will be
received from the assets employment and subsequent disposal. The expected net cash flows have
not been discounted to present values in determining recoverable amounts. The cost of fixed
assets constructed within the economic entity includes the cost of materials, direct labour and an
appropriate proportion of fixed and variable overheads.
Depreciation
The depreciable amount of all fixed assets including capitalised leased assets are depreciated on a
straight line basis over their estimated useful lives to the entity commencing from the time the asset
is held ready for use. Leasehold improvements are depreciated over the shorter of either the
unexpired period of the lease or the estimated useful lives of the improvements. Depreciation and
amortisation rates are reviewed annually for appropriateness. When changes are made, adjustments
are reflected in current and future periods only.
The depreciation rates used for each class of assets are:
Class of fixed asset
Depreciation rates
Depreciation basis
Leasehold improvements
Plant and equipment
Leased plant and equipment
Motor vehicles
Office equipment
Furniture, fixtures and fittings
Computer equipment and software
Determined by lease term
6.7% - 20.0%
6.7% - 20.0%
20.0%
20.0%
14.3%
33.0% - 50.0%
Straight Line
Straight Line
Straight Line
Straight Line
Straight Line
Straight Line
Straight Line
(e) Leases
Leases of fixed assets, where substantially all the risks and benefits incidental to the ownership of
the asset, but not the legal ownership, are transferred to the entities within the economic entity are
classified as finance leases. Finance leases are capitalised, recording at the inception of the lease an
asset and a liability equal to the present value of the minimum lease payments, including any
guaranteed residual values. Leased assets are depreciated on a straight line basis over their
estimated useful lives where it is likely that the economic entity will obtain ownership of the asset or
over the term of the lease. Lease payments are allocated between the reduction of the lease
liability and the lease interest expense for the period.
Lease payments for operating leases, where substantially all the risks and benefits remain with the
lessor, are charged as expenses in the periods in which they are incurred. Lease incentives received
under operating leases are recognised as a liability.
(f)
Investments
Controlled Entities
Investments in controlled entities are carried in the holding company’s financial statements at cost
less amounts written off to recognise any permanent diminution in value. Dividends are brought to
account in the statement of financial performance when they are proposed by the controlled
entities.
(g) Foreign Currency Transactions and Balances
Foreign currency transactions during the year are converted to Australian currency at the rates of
exchange applicable at the dates of the transactions. Amounts receivable and payable in foreign
currencies at balance date are converted at the rates of exchange ruling at that date.
The gains and losses from conversion of short term assets and liabilities, whether realised or
unrealised, are included in profit from ordinary activities as they arise.
The assets and liabilities of overseas controlled entities, which are self-sustaining, are translated at
year end rates and operating results are translated at rates ruling at the end of each month. Gains
and losses arising on translation are taken directly to the foreign currency translation reserve.
Exchange differences arising on hedged transactions undertaken to hedge foreign currency
exposures, other than those for the purchase and sale of goods and services, are brought to
account in the profit from ordinary activities when the exchange rates change. Any material
gain or loss arising at the time of entering into hedge transactions is deferred and brought to
account in the profit from ordinary activities over the lives of the hedges.
Costs or gains arising at the time of entering hedged transactions for the purchase and sale of
goods and services, and exchange differences that occur up to the date of purchase or sale are
deferred and included in the measurement of the purchase or sale.
(h) Employee Entitlements
Provision is made for the economic entity’s liability for employee entitlements arising from services
rendered by employees to balance date. Employee entitlements expected to be settled within one
year together with entitlements arising from wages and salaries, annual leave and sick leave which
will be settled after one year, have been measured at their nominal amount. Other employee
entitlements payable later than one year have been measured at the present value of the estimated
future cash outflows to be made for those entitlements.
Contributions are made by the economic entity to an employee superannuation fund and are
charged as expenses when incurred.
2 8
2 9
N O T E S T O T H E F I N A N C I A L
N O T E S T O T H E F I N A N C I A L
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
NOTE 1: STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (cont’d)
(i) Research and Development Expenditure
Research and Development costs are charged to profit from ordinary activities before income tax as
incurred or deferred where it is expected beyond any reasonable doubt that sufficient future
benefits will be derived so as to recover those deferred costs.
Deferred Research and Development expenditure is amortised on a straight-line basis over the
period during which the related benefits are expected to be realised, once commercial production is
commenced but not exceeding three years.
(j) Cash
For the purposes of the statement of cash flows, cash includes cash on hand and at call, deposits
with banks or financial institutions, investments in money market instruments maturing within less
than two months and net of bank overdrafts.
(k) Comparative Figures
Where required by Accounting Standards comparative figures have been adjusted to conform with
changes in presentation for the current financial year.
(l) Revenue
Revenue from the sale of goods is recognised upon the delivery of goods to customers.
Where a Government grant is received or receivable relating to research and development costs
that have been expensed, the grant is recognised as revenue. Where a grant is received or
receivable relating to research and development costs that have been deferred, the grant is
deducted from the carrying amount of the deferred costs.
Other revenue is recognised when the right to receive the revenue has been established.
All revenue is stated net of the amount of goods and services tax (GST).
(m) Intangibles
Goodwill
Goodwill and goodwill on consolidation are initially recorded at the amount by which the purchase
price for a business or for an ownership interest in a controlled entity exceeds the fair value
attributed to its net assets at date of acquisition. Both purchased goodwill and goodwill on
consolidation are amortised on a straight-line basis over the period of 20 years. The balances are
reviewed annually and any balance representing future benefits for which the realisation is
considered to be no longer profitable is written off.
Patents and Trademarks
Patents and trademarks are valued in the accounts at cost of acquisition and are amortised over the
period in which the benefits are expected to be realised, but not exceeding 20 years.
NOTE 2: REVENUE
Operating activities
- Sale of goods
- SIP income
-
Interest income – other parties
- Proceeds from disposals of
non-current assets
- Other revenue
Total revenue
NOTE 3: PROFIT FROM ORDINARY ACTIVITIES
Profit from ordinary activities before income
tax expense has been determined after:
Cost of sales
Borrowing costs
- Other persons
Depreciation of non-current assets:
- Leasehold improvements
- Plant and equipment
- Motor vehicles
- Office Equipment
Amortisation of non-current assets:
- Leased plant and equipment
- Leased motor vehicles
- Goodwill
- Patents and trademarks
Research and Development expenditure:
- Capitalised and amortised
- Expensed as incurred
Formation costs written off
Patents, trademarks and licenses
written off
Increase in provision for obsolete
inventory
Bad and doubtful debts:
- Bad debts written off - trade debtors
- Movement in provisions for
doubtful debts: trade debtors
Net expense of bad and doubtful debts
E C O N O M I C E N T I T Y
P A R E N T E N T I T Y
2001/02
$
2000/01
$
2001/02
$
2000/01
$
53,692,970
1,780,090
21,451
106,747
175,763
54,230,755
47,110,674
47,745,746
344,505
17,941
125,892
15,024
1,780,090
13,261
106,747
175,763
344,505
-
125,892
15,024
55,777,021
54,734,117
49,186,535
48,231,167
31,085,033
31,377,720
29,595,896
30,528,478
1,144,662
1,472,910
1,144,662
1,481,282
15,659
1,549,297
81,546
205,549
367,113
76,215
165,000
43,784
84,773
39,563
-
-
33,000
319,171
(41,214)
277,957
14,973
1,271,410
50,989
184,884
389,571
91,068
165,000
15,114
119,747
68,967
32,328
22,500
-
715
25,446
26,161
13,300
12,988
1,347,779
1,111,671
81,546
149,098
367,113
76,215
165,000
39,626
84,773
39,563
-
-
33,000
80,623
(41,214)
39,409
50,989
143,479
389,571
91,068
165,000
11,031
119,747
68,967
-
22,500
-
-
25,446
25,446
3 0
3 1
N O T E S T O T H E F I N A N C I A L
N O T E S T O T H E F I N A N C I A L
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
NOTE 3: PROFIT FROM ORDINARY ACTIVITIES (cont’d)
E C O N O M I C E N T I T Y
P A R E N T E N T I T Y
2001/02
$
2000/01
$
2001/02
$
2000/01
$
Remuneration of the auditors of
parent entity for:
- Auditing the financial report
- Other services
Remuneration of other auditors of
controlled entities – audit services
Total Remuneration of Auditors
Foreign currency translation losses
(gains)
Net loss on disposal of non-current
assets
- Plant and equipment
Operating lease rental expense
NOTE 4: INCOME TAX EXPENSE
The prima facie income tax payable on
profit from ordinary activities is reconciled
to the income tax expense as follows:
Prima facie tax payable on profit from
ordinary activities before income tax
at 30% (2001 – 34%)
Add:
Tax effect of:
- Amortisation of intangible assets
- Foreign currency translation
differences
- Other non-allowable/non-
assessable items
Less:
Tax effect of:
66,641
31,555
37,906
136,102
80,250
113,135
64,221
257,606
66,641
31,555
80,250
113,135
-
-
98,196
193,385
17,180
(1,928)
17,180
(2,772)
9,619
1,310,189
8,415
1,148,548
9,619
8,415
1,230,942
1,051,111
1,561,697
1,595,426
1,496,446
1,438,927
49,500
-
83,994
1,695,191
59,851
48,138
49,500
59,851
-
-
(15,166)
1,688,249
9,283
16,882
1,555,229
1,515,660
- Deductible IPO Costs
-
19,849
-
19,849
(Under)/over provision for income tax
in prior year
Individually significant income tax item
Restatement of deferred tax balance
due to change in company tax rate
Income tax expense attributable to
profit from ordinary activities
104,088
(40,995)
(1,870)
49,938
-
26,480
-
26,480
1,591,103
1,682,915
1,557,099
1,419,393
NOTE 5: CASH ASSETS
Cash on hand
Cash at bank
Deposits at call
NOTE 6: RECEIVABLES
CURRENT
Trade debtors
Less provision for doubtful debts
Other debtors
NON-CURRENT
Amounts receivable from:
- Controlled entities
NOTE 7: INVENTORIES
CURRENT
Raw materials at cost
Work in progress at cost
Finished goods at cost
Less provision for obsolescence
E C O N O M I C E N T I T Y
P A R E N T E N T I T Y
2001/02
$
2000/01
$
2001/02
$
2000/01
$
2,628
234,620
289,234
526,482
9,137,878
(40,559)
9,097,319
2,836,424
2,450
887,036
4,316,090
5,205,576
8,558,996
(81,773)
8,477,223
1,823,638
11,933,743
10,300,861
1,450
6,000
-
7,450
2,450
154,916
4,000,000
4,157,366
3,789,686
3,315,262
(40,559)
(81,773)
3,749,127
2,836,424
6,585,551
3,233,489
1,801,021
5,034,510
-
-
5,653,479
10,133,031
339,513
918,379
14,006,693
(63,000)
834,460
818,391
9,771,790
(30,000)
339,513
918,379
834,460
818,391
10,885,566
5,662,179
(63,000)
(30,000)
15,201,585
11,394,641
12,080,458
7,285,030
3 2
3 3
N O T E S T O T H E F I N A N C I A L
N O T E S T O T H E F I N A N C I A L
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
E C O N O M I C E N T I T Y
P A R E N T E N T I T Y
2001/02
$
2000/01
$
2001/02
$
2000/01
$
E C O N O M I C E N T I T Y
P A R E N T E N T I T Y
2001/02
$
2000/01
$
2001/02
$
2000/01
$
NOTE 8: OTHER ASSETS
CURRENT
Prepayments
NON-CURRENT
415,893
639,264
326,112
420,636
Research & development at cost
752,574
728,595
752,574
728,595
Reconciliation of Other Non-Current Assets
R E S E A R C H A N D D E V E L O P M E N T
E C O N O M I C
E N T I T Y
P A R E N T
E N T I T Y
2001/02
$
728,595
781,420
(84,773)
(672,668)
752,574
2001/02
$
728,595
781,420
(84,773)
(672,668)
752,574
Balance at the beginning of the year
Additions
Amortisation
Accrued SIP Grant
Carrying amount at the end of the year
NOTE 9: OTHER FINANCIAL ASSETS
E C O N O M I C E N T I T Y
P A R E N T E N T I T Y
Note
2001/02
$
2000/01
$
2001/02
$
2000/01
$
NON-CURRENT
Shares in controlled entities at cost
30
-
-
3,441,323
462,769
NOTE 10: PLANT AND EQUIPMENT
Plant and equipment
At cost
Less accumulated depreciation
Under lease
At cost
Less accumulated amortisation
Leasehold Improvements
At cost
Less accumulated depreciation
Motor vehicles
At cost
Less accumulated depreciation
Under lease
At cost
Less accumulated amortisation
Office equipment
At cost
Less accumulated depreciation
23,039,877
(4,341,849)
18,698,028
5,914,133
(1,162,104)
4,752,029
208,863
(53,303)
155,560
646,353
(146,819)
499,534
198,265
(89,094)
109,171
1,310,519
(697,555)
612,964
18,082,571
(2,776,309)
15,306,262
4,921,447
(864,832)
4,056,615
206,660
(38,031)
168,629
286,878
(62,931)
223,947
444,418
(163,812)
280,606
1,116,728
(511,243)
605,485
22,032,134
17,135,371
(3,888,145)
(2,481,413)
18,143,989
14,653,958
5,914,133
4,921,447
(1,162,104)
(864,832)
4,752,029
4,056,615
198,141
(48,986)
149,155
611,381
(144,487)
466,894
198,265
(89,094)
109,171
1,015,223
(557,769)
457,454
194,716
(35,686)
159,030
286,878
(62,931)
223,947
444,418
(163,812)
280,606
850,790
(413,380)
437,410
Total plant and equipment
24,827,286
20,641,544
24,078,692
19,811,566
3 4
3 5
N O T E S T O T H E F I N A N C I A L
N O T E S T O T H E F I N A N C I A L
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
NOTE 11: INTANGIBLE ASSETS
Goodwill on consolidation at cost
Less accumulated amortisation
Patents, trademarks and licenses
at cost
Less accumulated amortisation
Reconciliation of Intangible Assets
E C O N O M I C E N T I T Y
P A R E N T E N T I T Y
2001/02
$
2000/01
$
2001/02
$
2000/01
$
3,161,193
(655,148)
2,506,045
648,374
(72,982)
575,392
3,161,193
(490,148)
2,671,045
379,467
(56,270)
323,197
3,161,193
3,161,193
(655,148)
(490,148)
2,506,045
2,671,045
570,388
(57,385)
513,003
292,592
(43,238)
249,354
3,081,437
2,994,242
3,019,048
2,920,399
G O O D W I L L
P A T E N T S , T R A D E M A R K S
& L I C E N C E S
E C O N O M I C
E N T I T Y
P A R E N T
E N T I T Y
E C O N O M I C
E N T I T Y
P A R E N T
E N T I T Y
2001/02
$
2001/02
$
2001/02
$
2001/02
$
Balance at the beginning of the year
2,671,045
2,671,045
Additions through business acquired
Other Additions
Amortisation expense
Carrying amount at the end of the year
-
-
-
-
(165,000)
2,506,045
(165,000)
2,506,045
323,197
250,000
45,979
(43,784)
575,392
249,354
250,000
53,275
(39,626)
513,003
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
NOTE 10: PLANT AND EQUIPMENT (cont’d)
Movements in Carrying Amounts
Movement in the carrying amounts for each
class of plant and equipment between the
beginning and the end of the year:
L E A S E H O L D I M P R O V E M E N T S
P L A N T & E Q U I P M E N T
E C O N O M I C
E N T I T Y
P A R E N T
E N T I T Y
E C O N O M I C
E N T I T Y
P A R E N T
E N T I T Y
2001/02
$
168,629
-
2,590
-
(15,659)
155,560
2001/02
$
159,030
-
3,425
-
(13,300)
149,155
2001/02
$
2001/02
$
15,306,262
14,653,958
2,575,000
2,420,371
2,575,000
2,317,118
(54,308)
(54,308)
(1,549,297)
(1,347,779)
18,698,028
18,143,989
L E A S E D P L A N T & E Q U I P M E N T
M O T O R V E H I C L E S
E C O N O M I C
E N T I T Y
P A R E N T
E N T I T Y
E C O N O M I C
E N T I T Y
P A R E N T
E N T I T Y
2001/02
$
4,056,615
1,360,128
(297,601)
(367,113)
4,752,029
2001/02
$
4,056,615
1,360,128
(297,601)
(367,113)
4,752,029
2001/02
$
223,947
357,133
-
(81,546)
499,534
2001/02
$
223,947
324,493
-
(81,546)
466,894
O F F I C E E Q U I P M E N T L E A S E D M O T O R V E H I C L E S
E C O N O M I C
E N T I T Y
2001/02
$
605,485
233,890
(20,862)
(205,549)
612,964
P A R E N T
E N T I T Y
2001/02
$
437,410
190,004
(20,862)
(149,098)
457,454
E C O N O M I C
E N T I T Y
P A R E N T
E N T I T Y
2001/02
$
2001/02
$
280,606
280,606
-
(95,220)
(76,215)
109,171
-
(95,220)
(76,215)
109,171
Balance at the beginning of the year
Additions through business acquired
Other Additions
Disposals
Depreciation expense
Carrying amount at the end of the year
Balance at the beginning of the year
Additions
Disposals
Depreciation expense
Carrying amount at the end of the year
Balance at the beginning of the year
Additions
Disposals
Depreciation expense
Carrying amount at the end of the year
3 6
3 7
N O T E S T O T H E F I N A N C I A L
N O T E S T O T H E F I N A N C I A L
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
E C O N O M I C E N T I T Y
P A R E N T E N T I T Y
E C O N O M I C E N T I T Y
P A R E N T E N T I T Y
Note
2001/02
$
2000/01
$
2001/02
$
2000/01
$
Note
2001/02
$
2000/01
$
2001/02
$
2000/01
$
NOTE 12: DEFERRED TAX ASSETS
The future income tax benefits
comprise:
- Timing differences
NOTE 13: PAYABLES
CURRENT
Unsecured liabilities
Trade creditors
Sundry creditors and accruals
NON-CURRENT
Unsecured liabilities
Amounts payable to:
- Wholly owned entities
NOTE 14: INTEREST-BEARING LIABILITIES
106,952
121,128
-
-
3,743,371
1,501,303
5,244,674
3,658,729
1,579,911
5,238,640
3,414,555
1,193,650
4,608,205
3,353,772
1,240,075
4,593,847
-
-
-
49,250
CURRENT
Secured liabilities
Bank overdrafts
Bank loans
Commercial Bills
Finance lease liability
Hire purchase liability
NON-CURRENT
Secured liabilities
Commercial Bills
Finance lease liability
Hire purchase liability
23(e)
23(e)
23(e)
27(a)
27(b)
23(e)
27(a)
27(b)
165,797
3,680,927
1,400,000
1,318,498
605,275
7,170,497
7,900,000
1,108,827
1,711,535
10,720,362
73,782
4,070,691
4,500,000
1,256,120
528,639
165,797
3,680,927
1,400,000
1,318,498
605,275
73,782
4,070,691
4,500,000
1,256,120
528,639
10,429,232
7,170,497
10,429,232
4,300,000
1,278,951
1,539,008
7,117,959
7,900,000
1,108,827
1,711,535
10,720,362
4,300,000
1,278,951
1,539,008
7,117,959
NOTE 15: INCOME TAX LIABILITIES
CURRENT
Income tax
NON-CURRENT
Deferred income tax
793,346
54,756
777,371
42,993
2,894,624
2,922,047
2,730,631
2,779,077
NOTE 16: PROVISIONS
CURRENT
Dividends
Employee entitlements
16(a)
NON-CURRENT
1,259,919
488,951
1,748,870
1,141,178
713,683
1,854,861
1,259,919
1,141,178
475,070
686,638
1,734,989
1,827,816
Employee entitlements
16(a)
590,323
100,424
590,323
100,424
(a) Aggregate employee
entitlements liability
(b) Number of employees at year
end
NOTE 17: OTHER LIABILITIES
CURRENT
Hedge Payable
NOTE 18: NON-HEDGED FOREIGN
CURRENCY BALANCES
The Australian dollar equivalents of
foreign currency balances included
in the financial statements that are
not effectively hedged are as follows:
US Dollars
Payables
Current
Non-current
Receivables
Current
Non-current
1,079,274
814,107
1,065,393
787,062
136
133
128
122
239,189
975,798
239,189
975,798
8,160,252
12,712,605
7,523,784
12,075,754
-
-
-
49,250
8,160,252
12,712,605
7,523,784
12,125,004
1,518,561
5,561,612
7,080,173
6,304,024
-
6,304,024
1,731,980
5,653,479
7,385,459
1,060,283
10,133,031
11,193,314
3 8
3 9
N O T E S T O T H E F I N A N C I A L
N O T E S T O T H E F I N A N C I A L
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
NOTE 19: CONTRIBUTED EQUITY
Paid up Capital
41,997,296 fully paid ordinary
shares (2001: 38,039,269)
Movement in Share Capital
Shares issued at the beginning of
the financial year
3,529,412 shares issued as part of
the consideration for acquisition of
a business
428,615 shares issued under
Dividend Reinvestment Plan
Exercise of 2,933,337 options
Share split – rounding adjustment
15,145,583 shares issued under
the prospectus
7,145,583 shares bought back and
cancelled
Costs incurred in share issue
E C O N O M I C E N T I T Y
P A R E N T E N T I T Y
2001/02
$
2000/01
$
2001/02
$
2000/01
$
20,858,448
17,549,850
20,858,448
17,549,850
17,549,850
11,002,396
17,549,850
11,002,396
3,000,000
308,598
-
-
-
-
-
-
-
29,333
(6)
15,145,583
(7,145,583)
(1,481,873)
3,000,000
308,598
-
-
-
-
-
-
-
29,333
(6)
15,145,583
(7,145,583)
(1,481,873)
20,858,448
17,549,850
20,858,448
17,549,850
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
A dividend reinvestment plan was established on 5 September 2001, and is available to all shareholders.
Options
The Company has entered into an executive option agreement to grant options to specified option
holders over unissued shares in the Company. The options are exercisable upon achievement of
certain conditions. The number of options that have been granted at the date of this report or are
available to be granted are as follows:
Issued Options
760,785 issued
Future Options
760,755 available to be granted
No options were issued, exercised or lapsed during the current financial year.
The issue price of each option is zero. Each option entitles the option holder to 1 ordinary share
in Gale Pacific Limited in the event that the option is exercised. The exercise price for the issued
options is $1.00. Options are not exercisable before 1 December 2002 or after 1 December 2004.
NOTE 20: RESERVES
Foreign currency reserve
Movement during the year:
Opening balance
Foreign currency gain/(loss)
on consolidation
Closing balance
E C O N O M I C E N T I T Y
P A R E N T E N T I T Y
2001/02
$
2000/01
$
2001/02
$
2000/01
$
(298,287)
108,894
108,894
2,234
(407,181)
(298,287)
106,660
108,894
-
-
-
-
-
-
-
-
Exchange differences relating to foreign currency monetary items forming part of the net investment
in a self-sustaining foreign operation and the translation of self-sustaining foreign controlled entities
are brought to account by entries made directly to the foreign currency translation reserve, as
described in Note 1(g).
NOTE 21: RETAINED PROFITS
Retained profits at the beginning
of the financial year
Net profit attributable to members
of the entity
Dividends provided for or paid
Retained profits at reporting date
NOTE 22: EQUITY
Total equity at the beginning of the
financial year
Total changes in equity recognised in
the Statement of Financial Performance
Movement in contributed capital
Transactions with owners as owners
- Dividends
- Share buy back and cancellation
Total equity at reporting date
5,673,390
4,147,856
5,487,656
4,158,892
3,614,553
(2,404,037)
6,883,906
3,009,514
(1,483,980)
5,673,390
3,431,053
2,812,744
(2,404,037)
(1,483,980)
6,514,672
5,487,656
23,332,134
15,152,486
23,037,506
15,161,288
3,207,372
3,308,598
3,116,174
13,693,037
3,431,053
3,308,598
2,812,744
13,693,037
(2,404,037)
-
27,444,067
(1,483,980)
(7,145,583)
23,332,134
(2,404,037)
(1,483,980)
-
(7,145,583)
27,373,120
23,037,506
4 0
4 1
N O T E S T O T H E F I N A N C I A L
N O T E S T O T H E F I N A N C I A L
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
E C O N O M I C E N T I T Y
P A R E N T E N T I T Y
2001/02
$
2000/01
$
2001/02
$
2000/01
$
E C O N O M I C E N T I T Y
P A R E N T E N T I T Y
2001/02
$
2000/01
$
2001/02
$
2000/01
$
NOTE 23: CASH FLOW INFORMATION
(a) Reconciliation of cash
Cash at the end of the financial
year as shown in the statement
of cash flows is reconciled to the
related items in the statement of
financial position as follows:
Cash on hand
Cash at bank
At call deposits with financial
institutions
Bank overdrafts
(b) Reconciliation of cash flow from operations
with profit from ordinary activities
Profit from ordinary activities after
income tax
Non-cash flows in profit from
ordinary activities:
2,628
234,620
289,234
(165,797)
360,685
2,450
887,036
4,316,090
(73,782)
5,131,794
1,450
6,000
2,450
154,916
-
4,000,000
(165,797)
(158,347)
(73,782)
4,083,584
3,614,553
3,009,514
3,431,053
2,812,744
Amortisation of leased assets
443,364
480,639
443,364
480,639
Amortisation of other
non-current assets
Depreciation
Doubtful Debts
Unrealised foreign exchange
movements
Losses on sale of plant and
equipment
Accrued SIP income
Changes in assets and liabilities:
(Increase)/decrease in receivables
(Increase) in other assets
(Increase)/decrease in inventories
Increase/(decrease) in payables
and accruals
Increase/(decrease) in income
tax payable
Increase/(decrease) in provisions
Net Cash provided by operations
293,557
1,852,051
(41,214)
214,053
1,522,256
25,446
289,399
176,031
1,591,723
1,318,973
(41,214)
25,446
-
831,349
-
725,010
9,619
(1,107,422)
1,041,045
(645,955)
1,493,056
8,415
-
9,619
(1,107,422)
8,415
-
(3,060,661)
(475,400)
(2,206,823)
1,145,504
(1,410,821)
(797,252)
504,572
(308,953)
(495,902)
(695,193)
1,418,328
(680,478)
1,382,760
821,865
(63,702)
7,015,624
(200,342)
213,266
1,780,040
787,862
(45,234)
(56,996)
186,221
5,531,496
4,843,567
NOTE 23: CASH FLOW INFORMATION (cont’d)
(c) Acquisition of business
During the financial year a
business was acquired. Details
of the acquisition are as follows:
Consideration
Cash
Ordinary shares
Fair value of net assets acquired
Current assets
Inventories
Non-current assets
Plant and equipment
Patents
Non-current liabilities
Provisions
Net assets acquired
Net cash outflow on
acquisition
Cash consideration
4,900,000
3,000,000
7,900,000
5,300,000
2,575,000
250,000
(225,000)
7,900,000
4,900,000
-
-
-
-
-
-
-
-
-
4,900,000
3,000,000
7,900,000
5,300,000
2,575,000
250,000
(225,000)
7,900,000
4,900,000
-
-
-
-
-
-
-
-
-
(d) Non-cash financing and investing activities
Plant and equipment
During the financial year the economic entity acquired plant and equipment with an aggregate
fair value of $1,303,746 (2001: $275,320) by means of finance leases. These acquisitions are
not reflected in the Statement of Cash Flows.
(e) Credit stand-by arrangement and loan facilities
Multi Option Facility and Bills Discount Facility
The Company has access to a Multi Option Facility (including an AUD overdraft, USD overdraft,
commercial bills, fixed rate trade advances, documentary credit and trade finance), a Bills
Discount Facility and a Bank Guarantee facility to a maximum of $18,950,000 as at 30 June
2002 (2001 $14,450,000), leaving an unused facility of $3,653,276 (2001: $997,949).
This facility is secured by a First Ranking Registered Equitable Mortgage by Gale Pacific Limited
over all its assets and undertakings including uncalled capital, a First Ranking Registered Equitable
Mortgage by Gale Pacific USA Inc over all its assets and undertakings including uncalled capital,
and a First Ranking Registered Equitable Mortgage by Gale Pacific Inc.
4 2
4 3
N O T E S T O T H E F I N A N C I A L
N O T E S T O T H E F I N A N C I A L
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
NOTE 24: COMPANY DETAILS
The registered office of the company is:
Gale Pacific Limited
145 Woodlands Drive
Braeside Victoria 3195
NOTE 25: DIRECTORS’ AND EXECUTIVES’ REMUNERATION
The Directors of the parent entity who held office during the year were:
Dr Huw Geraint Davies
Peter Ronald McDonald
Gary Stephen Gale
Theo John Eversteyn
Daryl Edward James Reilly
Total income paid or payable to all
Directors of the economic entity by the
parent entity and any related parties:
The number of Directors whose total
income from the Company and related
bodies corporate falls within each
successive $10,000 band of income:
$0
$20,000
$30,000
$40,000
-
-
-
-
$9,999
$29,999
$39,999
$49,999
$160,000
- $169,999
$250,000
- $259,999
$360,000
- $369,999
$720,000
- $729,999
$960,000
- $969,999
Aggregate remuneration of executive officers
of the Company working mainly in Australia
and receiving $100,000 or more from the
Company
The number of executive officers whose
remuneration falls within each successive
$10,000 band of income:
$170,000
- $179,999
$240,000
- $249,999
E C O N O M I C E N T I T Y
P A R E N T E N T I T Y
2001/02
$
2000/01
$
2001/02
$
2000/01
$
719,897
1,919,360
719,897
1,919,360
No.
No.
No.
No.
-
-
2
1
-
1
1
-
-
$
1
2
-
-
1
-
-
1
1
$
-
-
2
1
-
1
1
-
-
$
1
2
-
-
1
-
-
1
1
$
170,519
249,659
170,519
249,659
No.
1
-
No.
-
1
No.
1
-
No.
-
1
NOTE 26: DIVIDENDS
Ordinary Shares
Interim dividend – franked to 30%
(2001: 34%)
Final dividend – franked to 30%
(2001: 30%)
Premier Shares
Interim dividend – franked to 34%
Preference Shares
Interim dividend – franked to 34%
Adjusted franking account balance
2 0 0 1 / 0 2
2 0 0 0 / 0 1
C E N T S P E R
S H A R E
T O T A L
$
C E N T S P E R
S H A R E
T O T A L
$
3.0
3.0
-
-
1,144,118
1,259,919
-
-
2,404,037
4,021,982
2.98
3.0
54,654
1,141,178
2.98
137,822
2.98
150,326
1,483,980
2,921,594
E C O N O M I C E N T I T Y
P A R E N T E N T I T Y
Note
2001/02
$
2000/01
$
2001/02
$
2000/01
$
NOTE 27: CAPITAL AND LEASING COMMITMENTS
(a) Finance Leasing Commitments
Payable
- not later than one year
- later than one year and not
later than five years
Minimum lease payments
Less future finance charges
Total lease liability
Represented by:
Current liability
Non-current liability
14
14
1,567,088
1,437,906
1,567,088
1,437,906
1,351,359
2,918,447
491,122
2,427,325
1,318,498
1,108,827
2,427,325
1,366,349
2,804,255
269,184
2,535,071
1,256,120
1,278,951
2,535,071
1,351,359
2,918,447
491,122
1,366,349
2,804,255
269,184
2,427,325
2,535,071
1,318,498
1,108,827
2,427,325
1,256,120
1,278,951
2,535,071
The consolidated entity leases production plant and equipment under finance leases expiring
from one to five years. At the end of the lease term the consolidated entity has the option to
purchase the equipment deemed to be a bargain purchase option.
4 4
4 5
N O T E S T O T H E F I N A N C I A L
N O T E S T O T H E F I N A N C I A L
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
E C O N O M I C E N T I T Y
P A R E N T E N T I T Y
Note
2001/02
$
2000/01
$
2001/02
$
2000/01
$
NOTE 27: CAPITAL AND LEASING
COMMITMENTS (cont’d)
(b) Hire purchase commitments
Payable
- not later than one year
- later than one year and
not later than five years
Minimum hire purchase payments
Less future finance charges
Total hire purchase liability
Represented by:
Current liability
Non-current liability
14
14
(c) Operating Lease Commitments
Non-cancellable operating leases
contracted for but not capitalised
in the accounts:
Payable
- not later than one year
- later than one year and
not later than five years
- later than five years
801,724
697,144
801,724
697,144
1,953,178
2,754,902
438,092
2,316,810
605,275
1,711,535
2,316,810
1,791,052
2,488,196
420,549
2,067,647
528,639
1,539,008
2,067,647
1,953,178
2,754,902
438,092
1,791,052
2,488,196
420,549
2,316,810
2,067,647
605,275
1,711,535
2,316,810
528,639
1,539,008
2,067,647
2,527,139
1,310,189
2,470,098
1,230,942
8,750,795
1,445,454
12,723,388
5,228,458
2,752,731
9,291,378
8,640,278
1,445,454
12,555,830
5,042,125
2,752,731
9,025,798
The company leases property under operating leases expiring in 1 to 6 years. Leases of
property generally provide the Company with a right of renewal at which time all lease are
renegotiated. Lease payments comprise a base amount plus an incremental contingent
rental. Contingent rentals are based on the consumer price index.
NOTE 28: CONTINGENT LIABILITIES
Estimates of the maximum
amounts of contingent liabilities
that may become payable:
-
450,000
-
450,000
NOTE 29: RELATED PARTY TRANSACTIONS
(a) Equity Investments in Controlled Entities
Details of the percentage of ordinary shares held in controlled entities are disclosed
in Note 30 to the financial statements.
(b) Directors’ Remuneration
Details of Directors’ remuneration are disclosed in Note 25.
(c) Directors’ Equity Holdings
F U L L Y P A I D
O R D I N A R Y S H A R E S
P O S T - F L O A T
S H A R E O P T I O N S
P R E - F L O A T
O P T I O N S
P R E M I E R
S H A R E S
2002
2001
2002
2001
2002
2001
2002
2001
Opening balance held by Directors
and their Director-related entities
in the controlling entity:
Issues during the financial year to
Directors and their Director-related
entities by the controlling entity:
Conversion of shares held by a
Director-related entity in the
controlling entity:
Exercise of pre-float share options by
Directors and their Director-related
entities in the controlling entity:
Split of Ordinary shares held by
Directors and their Director-related
entities in the controlling entity:
Buyback and cancellation of shares
held by Directors and their Director-
related entities in the controlling entity:
Acquisition of shares through the share
market, the Dividend Reinvestment Plan
and the Initial Public Offer by Directors
and their Director-related entities in the
controlling entity:
Held as at the reporting date by
Directors and their Director-related
entities in the controlling entity:
17,750,646
1,711,208
760,785
-
-
-
-
-
-
-
4,625,000
2,370,737
9,403,501
(478,400)
41,841
118,600
-
-
-
-
-
-
760,785
-
-
-
-
-
17,792,487
17,750,646
760,785
760,785
-
-
-
800,001
- 4,625,000
1,570,736
-
-
-
- (4,625,000)
-
(2,370,737)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
All ordinary shares and executive share options issued to the Directors during 2000/01 were made
in accordance with the provisions of the executive share option plan. Further details of the executive
share option plan are contained in the Directors’ Report and Note 19 to the financial statements.
(d) Transactions with Directors and Director-related entities
The following amounts were payable to Directors as at the reporting date:
E C O N O M I C E N T I T Y
P A R E N T E N T I T Y
2001/02
$
10,000
2000/01
$
19,000
2001/02
$
10,000
2000/01
$
19,000
The 2000/01 contingent liability was in relation to a Government Grant received by the
business prior to its acquisition. The grant was subject to performance criteria, and the
contingent liability no longer exists.
Current
4 6
4 7
N O T E S T O T H E F I N A N C I A L
N O T E S T O T H E F I N A N C I A L
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
NOTE 29: RELATED PARTY TRANSACTIONS (cont’d)
NOTE 31: SEGMENT REPORTING
Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a
reasonable basis. Unallocated items mainly comprise income-earning assets and revenue, interest-bearing loans, borrowings and
expenses, and corporate assets and expenses.
Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used for
more than one period.
Inter-segment pricing is predominantly determined on an arm’s length basis.
Geographical segment
In presenting information on the basis of geographical segments, segment revenue is based on the geographical location of
customers. Segment assets are based on the geographical location of the assets.
The consolidated entity comprises the following main geographical segments, based on the consolidated entity’s management
reporting system:
Asia/Pacific
Manufacturing and distribution facilities are located in Victoria, Australia. Sales offices
are located in all states in Australia and through distribution agreements in New Zealand.
USA
The main sales office is located in Florida which services the North American region.
Middle East
A sales office is located in the United Arab Emirates which services the region.
Business Segment
The consolidated entity operates predominantly in one business segment, being the advanced polymer fabrics industry. The
consolidated entity manufactures and markets advanced durable knitted and coated polymer fabrics and value added structures
made from these fabrics.
(d) Transactions with Directors and Director-related entities (cont’d)
Gale Pacific USA Inc leased office space from Gary and Anne Gale in 2001. This lease was terminated prior to
the Company’s listing on 14 December 2000. Lease rentals paid were zero in 2002 (2001 $US48,000).
Theo Eversteyn is a Partner of the Chartered Accounting firm Bentleys MRI. In addition to Directors fees
received (and disclosed in Note 25) Bentleys MRI have provided taxation and other business advice during the
year ended 30 June 2002 to Gale Pacific Limited. The value of services provided was $169,407 (2001 $91,503).
Daryl Reilly is a director of Advent Management Group Limited (“Advent”). In addition to Directors fees paid
(and disclosed in Note 25), in 2001 Advent was paid $30,000 (2002 nil) by the Company for services provided
by Mr Reilly in relation to the Initial Public Offering.
During the financial year, Directors and their Director-related entities purchased goods, which were domestic or
trivial in nature, from the Company on the same terms and conditions available to other employees and
customers.
(e) Transaction Within the Wholly-Owned Group
The wholly-owned group includes:
- The ultimate parent entity in the wholly-owned group; and
- Wholly-owned controlled entities.
The ultimate parent entity in the wholly-owned group is Gale Pacific Limited, which is also the parent entity in
the economic entity.
Amounts receivable from and payable to entities in the wholly-owned group are disclosed in the Notes 6 and
13. These amounts are repayable at call, and no interest is charged on outstanding balances.
Transactions that occurred during the financial year between entities in the wholly owned group were:
- Sale and purchase of goods at cost plus mark up of up to 30%.
- Sales commission of 10%.
- Reimbursement of certain operating costs.
NOTE 30: CONTROLLED ENTITIES
Parent Entity:
Gale Pacific Limited
Controlled Entities:
Gale Pacific USA Inc.
Gale Pacific FZE
C O U N T R Y O F I N C O R P O R A T I O N
O W N E R S H I P I N T E R E S T ( % )
2001/02
2000/01
Australia
-
-
USA
United Arab Emirates
100%
100%
100%
100%
4 8
4 9
N O T E S T O T H E F I N A N C I A L
N O T E S T O T H E F I N A N C I A L
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
NOTE 31: SEGMENT REPORTING (cont’d)
NOTE 32: EARNINGS PER SHARE
A S I A /
P A C I F I C
U S A
M I D D L E
E A S T
E L I M I N A T I O N S
C O N S O L I D A T I O N
$’000
$’000
$’000
$’000
$’000
Primary Reporting
Geographical Segments
2002
Revenue outside the economic entity
Inter-segment revenue
Total revenue
Segment operating profit
Income tax expense
Operating profit after tax
Depreciation and amortisation
Non-cash expenses other than
depreciation and amortisation
Individually significant items:
Reimbursement of R&D expenditure
Segment assets
Unallocated assets
Total assets
15,648
-
15,648
1,092
-
1,092
39,037
9,340
48,377
4,988
(1,557)
3,431
2,324
378
1,780
432
(34)
398
259
-
-
46,851
9,339
Segment liabilities
Unallocated liabilities
Total liabilities
Acquisition of non-current assets
25,841
641
6,414
188
2001
Revenue outside the economic entity
Inter-segment revenue
Total revenue
Segment operating profit
Income tax expense
Operating profit after tax
Depreciation and amortisation
Non-cash expenses other than
depreciation and amortisation
Individually significant items:
Reimbursement of R&D expenditure
Segment assets
Unallocated assets
Total assets
38,823
8,469
47,292
4,232
(1,419)
2,813
1,975
212
345
14,954
-
14,954
349
(264)
85
207
-
-
40,821
11,046
Segment liabilities
Unallocated liabilities
Total liabilities
Acquisition of non-current assets
25,100
637
6,463
374
1
-
1
6
10
-
766
25
35
957
-
957
24
-
24
1
17
-
501
35
21
-
(9,340)
(9,340)
(215)
-
(215)
-
-
-
(217)
-
-
-
(8,469)
(8,469)
87
-
87
-
-
-
(463)
-
-
55,777
-
55,777
5,206
(1,591)
3,615
2,589
388
1,780
56,739
107
56,846
26,507
2,895
29,402
6,637
54,734
-
54,734
4,692
(1,683)
3,009
2,183
229
345
51,905
121
52,026
25,772
2,922
28,694
6,858
Earnings used in the calculations of basic and diluted earnings
per share
Weighted average number of ordinary shares used in the
calculation of basic earnings per share
Share options on issue
Share options exercised
Share options issued
Weighted average number of ordinary shares and potential ordinary
shares used in the calculation of diluted earnings per share
NOTE 33: FINANCIAL INSTRUMENTS
(a) Financial instruments
C O N S O L I D A T E D
2001/02
2000/01
$3,614,553
$3,009,514
38,204,041
32,543,216
760,785
6,101,340
-
-
(4,112,136)
427,290
38,964,826
34,959,710
Derivative Financial Instruments
Derivative financial instruments may be used by the economic entity to hedge exposure to exchange
rate risk associated with foreign currency borrowings. The derivative financial instruments are
recognised in the financial statements. Transactions for hedging purposes are undertaken without the
use of collateral as the Company only deals with reputable institutions with sound financial positions.
(b) Credit Risk
The maximum exposure to credit risk, excluding the value of any collateral or other security, at
balance date to recognised financial assets is the carrying amount of those assets, net of any
provisions for doubtful debts of those assets, as disclosed in the statement of financial position and
notes to the financial statements.
Credit risk for derivative financial instruments arises from the potential failure by counterparties to the
contract to meet their obligations. The credit risk exposure to forward exchange contracts is the net
fair value of these contracts.
The economic entity does not have any material credit risk exposure to any single debtor or group of
debtors under financial instruments entered into by the economic entity.
(c) Net Fair Values
The net fair value of assets and liabilities approximates their carrying value. No financial assets and
financial liabilities are readily traded on organised markets in standardised form other than forward
exchange contracts and interest rate swaps.
5 0
5 1
N O T E S T O T H E F I N A N C I A L
A D D I T I O N A L
S T O C K E X C H A N G E
S T A T E M E N T S
f o r t h e y e a r e n d e d 3 0 J u n e 2 0 0 2
I N F O R M A T I O N
a s a t 2 4 S e p t e m b e r 2 0 0 2
NOTE 33: FINANCIAL INSTRUMENTS (cont’d)
Number of Holdings of Equity Securities
(d) Interest Rate Risk
The economic entity’s exposure to interest rate risk, which is the risk that a financial instrument’s value
will fluctuate as a result of changes in market interest rates and the effective weighted average
interest rates on classes of financial assets and financial liabilities, is as follows:
30 JUNE 2002
NOTE
Financial Assets
Cash assets
Receivables
Financial Liabilities
Payables
Bank overdrafts and loans
Commercial bills
Commercial bills
Lease liabilities
Hire purchase liabilities
Hedge payable
Dividends payable
Employee entitlements
5
6
13
14
14
14
14
14
17
16
16
30 JUNE 2001
NOTE
Financial Assets
Cash assets
Receivables
Financial Liabilities
Payables
Bank overdrafts and loans
Commercial bills
Commercial bills
Lease liabilities
Hire purchase liabilities
Hedge payable
Dividends payable
Employee entitlements
5
6
13
14
14
14
14
14
17
16
16
WEIGHTED FLOATING
INTEREST
AVERAGE
RATE
INTEREST
$‘000
RATE
FIXED
INTEREST
RATE
$‘000
NON
INTEREST
BEARING
$‘000
MATURING
TOTAL
$‘000
1 YEAR
OR LESS
$‘000
1 TO 5 MORE THAN
YEARS
$‘000
5 YEARS
$‘000
2.0%
-
-
4.2%
6.9%
5.5%
8.8%
8.2%
-
-
-
289
-
289
-
3,847
-
5,000
-
-
-
-
-
8,847
-
-
-
237
11,934
12,171
526
11,934
12,460
-
-
4,300
-
2,427
2,317
-
-
-
9,044
5,245
-
-
-
-
-
239
1,260
1,079
7,823
5,245
3,847
4,300
5,000
2,427
2,317
239
1,260
1,079
25,714
-
-
-
-
-
600
800
1,318
605
239
-
-
3,562
-
-
-
-
-
2,400
4,200
1,109
1,712
-
-
-
9,421
-
-
-
-
-
1,300
-
-
-
-
-
-
1,300
WEIGHTED FLOATING
INTEREST
AVERAGE
RATE
INTEREST
$‘000
RATE
FIXED
INTEREST
RATE
$‘000
NON
INTEREST
BEARING
$‘000
MATURING
TOTAL
$‘000
1 YEAR
OR LESS
$‘000
1 TO 5 MORE THAN
YEARS
$‘000
5 YEARS
$‘000
5.0%
-
-
4.4%
6.9%
5.6%
8.9%
7.7%
-
-
-
5,203
-
5,203
-
4,144
-
4,000
-
-
-
-
-
8,144
-
-
-
3
10,301
10,304
5,206
10,301
15,507
-
-
4,800
-
2,535
2,068
-
-
-
9,403
5,239
-
-
-
-
-
976
1,141
814
8,170
5,239
4,144
4,800
4,000
2,535
2,068
976
1,141
814
25,717
-
-
-
-
-
500
4,000
1,256
529
737
-
-
7,022
-
-
-
-
-
2,400
-
1,279
1,539
239
-
-
5,457
-
-
-
-
-
1,900
-
-
-
-
-
-
1,900
The fully paid issued capital of the Company consisted of 41,997,296 ordinary fully paid shares held
by 710 shareholders. Each share entitles the holder to one vote.
Two option holders hold 760,785 options over ordinary shares. Options do not carry a right to vote.
Distribution of Holders of Equity Securities
S I Z E O F S H A R E H O L D I N G
N U M B E R O F S H A R E H O L D E R S
F U L L Y P A I D
O R D I N A R Y S H A R E S
O P T I O N S O V E R
O R D I N A R Y S H A R E S
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Holdings less than a marketable parcel
Substantial Shareholders
Shareholder
Gale Australia Pty Ltd
Gary Stephen Gale
Barbara Gale
Thorney Holdings Pty Ltd
Equipsuper Pty Ltd
Warrakiri Asset Management Pty Ltd
Perpetual Trustees Consolidated Limited
35
259
204
190
22
710
11
2
2
-
%
35.1%
35.1%
35.1%
11.5%
7.5%
5.9%
5.6%
Number
14,759,134
14,759,134
14,759,134
4,828,682
3,132,579
2,472,469
2,338,440
The substantial shareholding of Thorney Holdings Pty Ltd includes the holding of Invia Custodian Pty Ltd,
(No. 9 on the schedule of Twenty Largest Holders of Quoted Equity Securities following).
5 2
5 3
A D D I T I O N A L
S T O C K E X C H A N G E
I N F O R M A T I O N
a s a t 2 4 S e p t e m b e r 2 0 0 2
Twenty Largest Holders of Quoted Equity Securities
Ordinary Shareholders
1. Gale Australia Pty Ltd
2.
Thorney Holdings Pty Ltd
3. National Nominees Limited
4. National Nominees Limited
5.
6.
7.
Perpetual Trustees Consolidated Limited
St George Development Capital Limited
Equity Trustees Limited
8. Ms Anne Gale
9.
Invia Custodian Pty Limited
10. Permanent Trustee Australia Limited
11. Benefund Limited
12. Mrs Diane Kay Riddell
13. Mr Peter R McDonald
14. McRoss Developments Pty Ltd
15. Carnethy Investments Pty Ltd
16. Michetyn Pty Ltd
17. Karen Lynette McDonald
18. Guardian Trust Australia Ltd
19. Barr Pty Ltd
20. Perpetual Custodians Limited
Total
Number
14,759,134
4,179,412
3,253,062
2,777,465
2,338,440
1,437,599
1,254,676
936,000
649,270
500,000
450,000
319,600
291,200
258,500
250,000
185,000
179,310
150,000
125,000
125,000
%
35.1%
10.0%
7.7%
6.6%
5.6%
3.4%
3.0%
2.2%
1.5%
1.2%
1.1%
0.8%
0.7%
0.6%
0.6%
0.4%
0.4%
0.4%
0.3%
0.3%
34,418,668
82.0%
The twenty members holding the largest number of shares together held a total of 82.0% of the issued capital.
Other information:
The name of the Company Secretary is Mr R L House. The address of the principal registered office in Australia, and the principal
administrative office, is: 145 Woodlands Drive, Braeside, Vic, 3195, Tel: (03) 9518 3333
The Company is listed on the Australian Stock Exchange. The home exchange is Melbourne. Registers of securities are held by:
Computershare Investor Services Pty Ltd
Level 12, 565 Bourke Street, Melbourne, Victoria, 3000 Ph (03) 9611 5711 Fax (03) 9275 7925
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