ABN 89 008 108 227
IRONBARK CAPITAL LIMITED
APPENDIX 4D
FOR THE HALF-YEAR ENDED
31 DECEMBER 2022
Contents
Results for Announcement to the Market
Chairman’s Commentary
Investment Manager Report
Portfolio Shareholdings
Financial Report
Independent Auditor’s Review
Page
2
3
4
7
8
21
The documents comprise the information required under Listing Rule 4.2A and should be read in
conjunction with the Annual Report as at 30 June 2022.
IRONBARK CAPITAL LIMITED
Results for Announcement to the Market
_________________________________________________________________
Half Year Ended 31 December 2022
The previous corresponding period is the half-year ended 31 December 2021. The Half-
Year Financial Report has been subject to review by the Company’s auditors.
Revenue and Profit
Dec-22
$'000
Dec-21
$'000
% Change
Investment revenue from ordinary activities
6,111
2,846
Up
114.7%
Net profit after income tax expense
4,413
2,039
Up
116.4%
Earnings
Dec-22
Cents
Dec-21
Cents
% Change
Earnings per share
4.01
1.70
Up
135.9%
Net Tangible Asset Backing per share (NTA)
Dec-22
Dec-21
% Change
NTA before provision for tax on unrealised gains
$
0.572
$
0.559
Up
NTA after provision for tax on unrealised gains
$
0.560
$
0.549
Up
2.3%
2.0%
The NTA is after payment of fully franked dividends of 2.25 cents per share since the
previous corresponding period
The final fully franked dividend for the 2022 financial year was 1.25 cents per share
which was paid on 28 September 2022.
The interim dividend payable in this financial year is 1.1 cents per share, fully franked.
This has been declared since the period end for ordinary shareholders on the register
as at 7 March 2023. This is payable on 30 March 2023.
The interim dividend for the corresponding period was 1 cent per share fully franked
and was paid in March 2022.
The Dividend Reinvestment Plan remains suspended.
2
Ironbark Capital Limited
ABN 89 008 108 227
Chairman’s Commentary on the Results
For the half-year ended 31 December 2022
Chairman’s Commentary
The December half year saw a recovery in the market most notably in the Banking and Materials sectors
and is reflected in the Company’s good performance result.
Investment Performance
For the half year to 31 December 2022, the portfolio returned 11.5% inclusive of franking credits,
outperforming the Benchmark (1 year swap + 6%p.a.) by 6.7%. This was a very satisfactory result with
performance achieved with a portfolio that has a lower volatility than the market. The performance over
2 years of 11.8%p.a. and over 5 years of 8.4%p.a. inclusive of franking credits, exceeds their benchmark
returns by 4.5% and 1.2% respectively, and has been achieved in times of prolonged economic uncertainty.
The Investment Manager's report by Kaplan Funds Management (KFM) which follows the Chairman’s
Report, sets out in detail the investment experience in this FY23 half year.
Results for the Half Year
The profit after tax of $4.4 million was up 116.4% from the $2.0 million achieved in the previous
corresponding year. The strong market performance contributed to the $4.0 million net unrealised gains,
specifically from the Materials sector, Small Industrials, and certain Property Trusts. The increase in the
unlisted portfolio of subordinated notes and the rising cash rates contributed to the increase in interest
income of nearly 300% when compared to the same period in the previous year. The decrease in dividend
income reflects the change from the prior year’s record payout by BHP with the associated in-specie
dividend of Woodside Energy.
A performance fee of $300,000 is accrued for the period based on the outperformance of the absolute
return benchmark.
NTA per share before provision for tax on unrealised gains was $0.572, up 2.3% compared to $0.559 from
the previous period.
Since the end of the half-year, the Directors have declared a fully franked dividend of 1.1 cents per share
to be paid on 30 March 2023.
Share Buy-Back
In accordance with the Company’s announcement of an on-market share buy-back earlier in the year for
up to 10% of the Company’s shares over 12 months, the program was activated, and 18,000 shares were
bought in the period to 31 December 2022. Since half-year end, 1,942 shares have been bought in the
on-market share buy-back. The program is on-going until 20 July 2023.
Dividend Outlook
Corporate earnings of the underlying investments and the associated fully franked dividends allowed the
Company to pay a final fully franked dividend for the 2022 financial year in September 2022. The Ironbark
portfolio remains positioned to deliver fully franked dividends and satisfactory returns within an
acceptable risk profile. The Hybrid portfolio will continue to benefit from the rising interest rates in the
near term.
The year ahead will be dominated by the ongoing geopolitical events, the impact of inflation and flow-on
effect to interest rates, and the associated increase in costs to business, providing a challenging economic
environment for business.
Michael J Cole AM
Chairman
3
Ironbark Capital Limited
ABN 89 008 108 227
Investment Manager Report
For the half-year ended 31 December 2022
Investment Manager Report –half year to 31 December 2022
The manager’s focus is to deliver consistent returns and a high fully franked dividend yield from the
portfolio. IBC’s performance benchmark is the 1-year swap rate plus 6% per annum.
Performance measurement includes franking credits and option premium income. Franking credits are
a significant source of return from IBC’s hybrid investments and for shareholders. Option premium
income is generated from buy & write activity and varies with market conditions. Over the half year,
realised option premium income was around $0.52m (0.9% of the portfolio). The calculation of the
portfolio’s current running yield of 6.9% excludes option income because realised option premiums are
highly variable from year to year.
IBC recorded a strong portfolio return of 11.48% over the half year, outperforming equity and debt
markets, and its benchmark return of 4.83% (1 year swap rate +6%pa). The ASX 300 Accumulation Index
gained 9.62% over the six-month period. Since inception, over 20 years including three crisis periods
(GFC, Covid-19, current inflation crisis), the portfolio achieved a return of 9.12%pa with 53% of equity
market risk measured in terms of volatility.
PERFORMANCE TO 31/12/22
Inception
10 Yr
5 Yr
3 Yr
2 Yr
1 Yr
6 Mths
FUM $61.8m
20yrs % pa
% pa
% pa
% pa
% pa
% pa
%
IBC pre fees plus franking
1 yr swap +6%
Relative performance
volatility IBC
volatility ASX300
ASX 300 Accum
Vol relative to ASX
9.12
9.46
-0.34
7.3
13.8
8.83
53%
7.86
7.72
0.14
7.6
14.1
8.61
54%
8.41
7.23
1.18
9.6
16.4
7.10
59%
7.99
7.01
0.98
12.0
19.8
5.51
60%
11.77
7.24
4.53
6.9
14.2
7.45
49%
9.81
8.70
1.11
9.0
19.5
-1.77
46%
11.48
4.83
6.65
7.2
18.9
9.62
38%
IBC’s focus on income generation and capital preservation from a balanced portfolio structure has
delivered relatively lower volatility and very good risk adjusted returns compared to the equities market.
IBC Portfolio Volatility vs ASX Index Volatility
6 month rolling period
(risk measurement)
45%
40%
35%
30%
25%
20%
15%
10%
5%
0%
4
0
-
c
e
D
5
0
-
n
u
J
5
0
-
c
e
D
6
0
-
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u
J
6
0
-
c
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D
7
0
-
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J
7
0
-
c
e
D
8
0
-
n
u
J
8
0
-
c
e
D
9
0
-
n
u
J
9
0
-
c
e
D
0
1
-
n
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J
0
1
-
c
e
D
1
1
-
n
u
J
1
1
-
c
e
D
2
1
-
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J
2
1
-
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D
3
1
-
n
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J
3
1
-
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D
4
1
-
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J
4
1
-
c
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D
5
1
-
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u
J
5
1
-
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D
6
1
-
n
u
J
6
1
-
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D
7
1
-
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J
7
1
-
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D
8
1
-
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J
8
1
-
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D
9
1
-
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J
9
1
-
c
e
D
0
2
-
n
u
J
0
2
-
c
e
D
1
2
-
n
u
J
1
2
-
c
e
D
2
2
-
n
u
J
2
2
-
c
e
D
ASX Index Volatility
IBC Volatility
4
Ironbark Capital Limited
ABN 89 008 108 227
Investment Manager Report
For the half-year ended 31 December 2022
Portfolio
The portfolio is structured with an emphasis on income through yield orientated securities (hybrids and
corporate bonds, utilities, property trusts) and buy & write positions in leading companies. The
portfolio’s running yield was 6.9% inclusive of franking credits but excluding option premium income.
The buy & write strategy involves buying selective shares and selling, subject to appropriate timing, call
options over those shares. This strategy gives away some of the upside potential from a shareholding
but generates option premium income consistent with the income emphasis of the portfolio.
The portfolio is diversified across 22 different entities. Higher risk exposures in banks, industrials and
resources are largely held through buy & write option positions for income enhancement or added
protection. The portfolio’s hybrid and corporate bond holdings are mostly floating rate securities with
little duration risk.
Approximately 44.5% of the portfolio was held in hybrids and corporate bonds and 15.1% in buy & write
exposures in Banks, BHP and Woodside. The balance was represented by 19.5% in property trusts, 3.9%
in mid-cap and small companies, 4.1% in small resources and 12.9% held in cash & option delta.
Asset allocation reflects a cautious stance.
IRONBARK CAPITAL ASSET ALLOCATION - 31 December 2022
Bank Notes & Hybrids Basel III
Corporate Sub Notes
31.9%
Non Bank Hybrids & Corp Prefs
9.6%
3.9%
0.0%
9.7%
12.9%
19.5%
8.2%
4.4%
0.0%
Utilities & Infrastructure
Property Trusts
Banks
Top 50 Industrials
Ex Top 50 Industials
Materials & Energy
Cash & Option Delta
portfolio running yield 6.9%
(includes franking credits but excludes option premium income)
5
Ironbark Capital Limited
ABN 89 008 108 227
Investment Manager Report
For the half-year ended 31 December 2022
Portfolio Performance-half year to 31 December 2022
The portfolio recorded a return of 11.48% over the six-month period. Property trusts rebounded
strongly, up 11%, as the RBA signalled a pause in rate hikes is possible. Resources and banks delivered
strong gains under the buy & write strategy, up 21%, and hybrids and corporate bonds performed well
advancing 5.5%.
The portfolio participated in recent new hybrid issues by IAG, CBA and Macquarie Group on margins of
350bps, 285bps and 370bps respectively above the 90 day bill rate. Current swap rate pricing indicates
yields to first call for floating rate bank hybrids of: 5.8%pa (2 yrs), 6.3%pa (4 yrs) and 6.5%pa (6 yrs).
The portfolio also invested in subordinated floating rate notes issued by NAB and CBA on margins of
280bps and 270bps respectively, and a fixed to floating rate subordinated note issued by ANZ, fixed at
6.4%pa for 7 years then floating rate at 260bps margin for the remaining 5 years until maturity.
Investing in higher ranking subordinated debt compared to hybrids allows the manager to improve the
risk return profile for the portfolio when margin differentials narrow.
IRONBARK CAPITAL PERFORMANCE- half year to 31 December 2022
Portfolio and Sector Contribution
Benchmark 1 yr swap + 6 %
4.83%
IRONBARK CAPITAL portfolio
11.48%
utilities
0.00%
buy & writes & equities
property trusts
hybrids & corporate bonds
2.16%
2.44%
cash
0.02%
6.85%
0%
5%
10%
15%
IRONBARK CAPITAL
December 22 half year- comparative sector returns
utilities
0.00%
12.03%
buy & writes & equities
9.62%
20.60%
*ASX300 Accum Index
property trusts
4.01%
10.79%
hybrids & corporate bonds
6.46%
5.48%
ASX Sector Return
IBC Return
0%
10%
20%
30%
KAPLAN FUNDS MANAGEMENT
6
Ironbark Capital Limited
ABN 89 008 108 227
Portfolio Shareholdings as at 31 December 2022
Portfolio Shareholdings at 31 December 2022
ASX Code
Security
ANZ
CBA
NAB
WBC
ALD26/27
AN3PI/PJ
ANZ29
AUS1080
AYUPA
BOQPE/PF
CBA04/11
CBAPI/PL
IAGPE
MAC05/06
MBLPC
MQGPC/PD/PF
NABPF/PH/PI
NAB25
NAB29
NAB27
QUBHA
RHCPA
SUNPG/PI
SUN06
WBCPK
BHP
SMR
WDS
AUHW
CIP
CLW
WPR
SDF
D2O
Banks
ANZ Banking Group Limited
Commonwealth Bank of Australia Limited
National Australia Bank Limited
Westpac Banking Corporation Limited
Hybrids & Corporate Bonds
Ampol Limited - Subordinated Notes (Unlisted)
ANZ Banking Group Limited - Capital Notes
ANZ Banking Group Limited - Subordinated Notes (Unlisted)
AusNet Services Limited - Subordinated Notes (Unlisted)
Australian Unity Limited - Mutual Capital Instrument
Bank of Queensland Limited - Capital Notes
Commonwealth Bank of Australia Limited - Subordinated Notes (Unlisted)
Commonwealth Bank of Australia Limited - Capital Notes
Insurance Australia Group Limited - Capital Notes
Macquarie Bank Limited - Subordinated Notes (Unlisted)
Macquarie Bank Limited - Capital Notes
Macquarie Group Limited - Capital Notes
National Australia Bank Limited - Capital Notes
National Australia Bank Limited - Capital Notes (Unlisted)
National Australia Bank Limited - Fixed Capital Notes (Unlisted)
National Australia Bank Limited - Subordinated Notes (Unlisted)
Qube Holdings Limited - Subordinated Notes
Ramsay Healthcare Limited - Perpetual Preference Securities
Suncorp Group Limited - Capital Notes
Suncorp Group Limited - Subordinated Notes (Unlisted)
Westpac Banking Corporation Limited - Capital Notes
Materials & Energy
BHP Billiton Limited
Stanmore Resources Limited
Woodside Energy Group Limited
Property
Australian Unity Healthcare Wholesale Fund (Unlisted)
Centuria Industrial REIT
Charter Hall Long WALE REIT
Waypoint REIT
Small Industrials
Steadfast Group Limited
Utilities & Infrastructure
Duxton Water Limited
Cash
Market
Value*
$'000
2,334
2,633
57
3,218
8,242
2,238
682
1,007
1,002
1,074
948
5,570
1,286
821
1,013
647
1,756
1,817
512
433
513
1,332
805
2,237
490
1,285
27,468
5,682
2,537
1,073
9,292
3,329
167
4,211
4,367
12,074
2,270
2,270
132
132
2,291
% of
portfolio
%
exposure**
3.8
4.3
0.1
5.2
13.4
3.6
1.1
1.6
1.6
1.7
1.5
9.0
2.1
1.3
1.7
1.1
2.9
2.9
0.8
0.7
0.8
2.2
1.3
3.6
0.8
2.1
44.4
9.2
4.1
1.7
15.0
5.4
0.3
6.8
7.1
19.6
3.7
3.7
0.2
0.2
3.7
2.7
2.1
0.1
4.6
9.5
3.6
1.1
1.6
1.6
1.7
1.5
9.0
2.1
1.3
1.7
1.1
2.9
2.9
0.8
0.7
0.8
2.2
1.3
3.6
0.8
2.1
44.4
3.8
4.1
0.9
8.8
5.4
0.3
6.8
7.1
19.6
3.7
3.7
0.2
0.2
13.8
100.0
*Includes market value of options written against holdings
**Includes option delta written against holdings
61,769
100.0
7
Ironbark Capital Limited
ABN 89 008 108 227
Financial Report
For the half-year ended 31 December 2022
8
Ironbark Capital Limited
ABN 89 008 108 227
Corporate Directory
Directors
Michael Cole AM, Chairman
Ian Hunter
Sam Kaplan
Company Secretary
Jill Brewster
Principal Registered Office
Share Registrar
Investment Manager
Accounting & Administration
Auditors
Suite 607
180 Ocean Street
Edgecliff NSW 2027
Telephone: (02) 8917 0399
Boardroom Pty Limited
GPO Box 3993
Sydney NSW 2001
Shareholder enquiries telephone: (02) 9290 9600
Kaplan Funds Management Pty Limited
Suite 607
180 Ocean Street
Edgecliff NSW 2027
Telephone: (02) 8917 0300
Kaplan Funds Management Pty Limited
Suite 607
180 Ocean Street
Edgecliff NSW 2027
Telephone: (02) 8917 0399
Fax: (02) 8917 0355
MNSA Pty Ltd
Level 1
283 George Street
Sydney NSW 2000
Website
www.ironbarkcapital.com
Company Secretarial & all other enquiries
Telephone: (02) 8917 0399
Email: enquiries@ironbarkcapital.com
Stock Exchange
Australian Securities Exchange
ASX code: IBC
9
Ironbark Capital Limited
ABN 89 008 108 227
Directors’ Report
For the half-year ended 31 December 2022
Directors’ Report
The Directors present their report on the Company for the half-year ended 31 December 2022.
Directors
The following persons were Directors of Ironbark Capital Limited during the period and up to the date
of this report:
Michael Cole AM, Chairman
Ian Hunter
Sam Kaplan
Review of Operations
The profit from ordinary activities after tax for the half-year to 31 December 2022 was $4.4 million, up
116% from the $2.0 million in the corresponding period last year. The recovery in the market resulted
in unrealised gains of $4.0m, the main contributor to the good half year result. Gains of $0.5m were
realised predominantly from the sale of property trusts and the trading of call options. The increase in
interest of nearly 300% reflects the additions to the portfolio of unlisted subordinated notes and rising
interest rates. The decrease in dividend income reflects the change from the prior year’s record payout
by BHP with the associated in-specie dividend of Woodside Energy.
The net tangible asset backing after tax for each ordinary share as at 31 December 2022 amounted to
$0.560 per share (2021: $0.549 per share).
A performance fee of $300,000 is accrued for the period based on the absolute return benchmark.
A fully franked dividend of 1.1 cents per share has been declared since the end of the half-year and is
payable on 30 March 2023.
In accordance with the Company’s announcement of an on-market share buy-back earlier in the year
for up to 10% of the Company’s shares over 12 months, the program was activated, and 18,000 shares
were bought in the period to 31 December 2022. Since half-year end, 1,942 shares have been bought
in the on-market share buy-back. The program is on-going until 20 July 2023.
Rounding of amounts
The Company is of a kind referred to in Instrument 2016/191 issued by the Australian Securities and
Investments Commission relating to the ‘rounding off’ of amounts in the Directors’ Report and Financial
Report. Amounts in the Directors’ Report and Financial Report have been rounded off in accordance
with that instrument to the nearest thousand dollars, or in certain cases, to the nearest dollar.
Auditor’s independence declaration
A copy of the auditor‘s independence declaration as required under section 307C of the Corporations
Act 2001 is set out on page 11.
This report is signed in accordance with a resolution of the Directors.
Michael J Cole AM
Chairman
Sydney
17 February 2023
10
IRONBARK CAPITAL LIMITED
ABN 89 008 108 227
AUDITOR'S INDEPENDENCE DECLARATION
UNDER SECTION 307C OF THE CORPORATIONS ACT 2001
TO THE DIRECTORS OF IRONBARK CAPITAL LIMITED
I declare that, to the best of my knowledge and belief, during the half-year ended 31 December 2022
there have been no contraventions of:
i.
the auditor independence requirements as set out in the Corporations Act 2001 in relation to
the review; and
ii.
any applicable code of professional conduct in relation to the review.
MNSA Pty Ltd
Mark Schiliro
Director
Sydney
17th February 2023
11
Ironbark Capital Limited
ABN 89 008 108 227
Statement of Profit or Loss and Other
Comprehensive Income
For the half-year ended 31 December 2022
Investment income from trading portfolio
Revenue
Net gain on trading portfolio
Total investment income from trading portfolio
Notes
3
3
Expenses
Management fees
Performance fees
Brokerage expense
Accounting fees
Share registry fees
Custody fees
Tax fees
Directors' liability insurance
Legal fees
Directors' fees
ASX fees
Audit fees
Option fees
Other expenses
Total expenses
Profit before income tax
Income tax expense
Net profit for the period
Other comprehensive income for the period net of tax
Total comprehensive income for the period
Basic and diluted earnings per share
6
Half-year ended
31 December
2022
$'000
31 December
2021
$'000
1,583
4,528
6,111
(124)
(300)
(9)
(28)
(16)
(13)
(8)
(18)
(5)
(25)
(22)
(16)
(6)
(26)
(616)
5,495
(1,082)
4,413
-
4,413
Cents
4.01
1,788
1,058
2,846
(136)
(228)
(25)
(34)
(16)
(16)
(6)
(16)
(7)
(33)
(26)
(15)
(7)
(42)
(607)
2,239
(200)
2,039
-
2,039
Cents
1.70
The above Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the
accompanying notes.
12
Ironbark Capital Limited
ABN 89 008 108 227
Statement of Financial Position
As at 31 December 2022
Notes
31 December
2022
$'000
30 June
2022
$'000
2,291
202
59,478
45
62,016
1,614
1,614
1,299
264
56,148
6
57,717
2,064
2,064
63,630
59,781
499
-
499
1,346
1,346
1,845
61,785
60,467
9,905
(8,587)
61,785
310
501
811
213
213
1,024
58,757
60,475
6,869
(8,587)
58,757
7
ASSETS
Current assets
Cash and cash equivalents
Trade and other receivables
Trading portfolio
Other assets
Total current assets
Non- current assets
Deferred tax assets
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Current tax liabilities
Total current liabilities
Non-current liabilities
Deferred tax liabilities
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Profit reserve
Accumulated losses
Total equity
The above Statement of Financial Position should be read in conjunction with the accompanying notes
13
Ironbark Capital Limited
ABN 89 008 108 227
Statement of Changes in Equity
For the half-year ended 31 December 2022
Notes
Issued
capital
$'000
60,475
-
-
Profit Accumulated
losses
$'000
reserve
$'000
6,869
-
4,413
(8,587)
4,413
(4,413)
Total
equity
$'000
58,757
4,413
-
60,475
11,282
(8,587)
63,170
Balance at 1 July 2022
Profit for the period
Transfer to profit reserve
Total comprehensive income for
the period
Transactions with owners in their
capacity as owners:
Dividends paid
Buy-back of shares
5
7(b)
-
(8)
(1,377)
-
-
-
(1,377)
(8)
Balance at 31 December 2022
60,467
9,905
(8,587)
61,785
Balance at 1 July 2021
Profit for the period
Transfer to profit reserve
Total comprehensive income for
the period
Transactions with owners in their
capacity as owners:
67,374
-
-
5,805
-
2,039
(6,235)
2,039
(2,039)
66,944
2,039
-
67,374
7,844
(6,235)
68,983
Dividends paid
Buy-back of shares
5
-
(6,899)
(1,539)
-
-
-
(1,539)
(6,899)
Balance at 31 December 2021
60,475
6,305
(6,235)
60,545
The above Statement of Changes in Equity should be read in conjunction with the accompanying notes
14
Ironbark Capital Limited
ABN 89 008 108 227
Statement of Cash Flows
For the half-year ended 31 December 2022
Half-year ended
31 December
2022
$'000
31 December
2021
$'000
Notes
Cash flows from operating activities
Interest received
Net proceeds of trading portfolio
Dividends & trust distributions received
Other income received
Management fees paid
Other expenses paid
Net cash inflow from operating activities
Cash flows from financing activities
Dividends paid to shareholders
Payment for shares bought back
Net cash outflow from financing activities
Net increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at the end of period
5
7(b)
200
1,051
1,469
1
(121)
(223)
2,377
(1,377)
(8)
(1,385)
992
1,299
2,291
71
10,444
1,884
3
(137)
(276)
11,989
(1,539)
(6,899)
(8,438)
3,551
1,243
4,794
Non cash: Distribution reinvestment
-
57
The above Statement of Cash Flows should be read in conjunction with the accompanying notes
15
Ironbark Capital Limited
ABN 89 008 108 227
Notes to the Financial Statements
For the half-year ended 31 December 2022
1.
Basis of preparation of half-year report
This general purpose interim financial report for the half-year ended 31 December 2022 has been
prepared in accordance with requirements of the Corporations Act 2001 and Australian Accounting
Standard AASB 134 Interim Financial Reporting. The Company is a for-profit entity for financial
reporting purposes under Australian Accounting Standards.
This interim financial report is intended to provide users with an update on the latest annual financial
statements of Ironbark Capital Limited. It is therefore recommended that this financial report be read in
conjunction with the annual financial statements of the Company for the year ended 30 June 2022,
together with any public announcements made during the following half-year. The accounting policies
adopted are consistent with those of the previous financial year end and corresponding interim reporting
period.
This interim financial report was authorised for issue on 17 February 2023.
2.
Segment information
The Company has only one reportable segment. The Company operates predominantly in Australia and
in one industry being the securities industry, deriving revenue from dividend income, interest income
and from the sale of its trading portfolio.
3.
Revenue
Dividends
Interest
Distributions
Other income
Net gains/(losses) on trading portfolio
Net realised gains on trading portfolio
Net unrealised gains/(losses) on trading portfolio
Half-year ended
31 December 31 December
2021
$'000
2022
$'000
1,042
215
325
1
1,583
522
4,006
4,528
6,111
1,299
72
415
2
1,788
1,770
(712)
1,058
2,846
4.
Fair value measurements
The Company measures and recognises the following assets and liabilities at fair value on a recurring
basis:
Financial assets at fair value through profit or loss
AASB 13 Fair Value Measurement requires disclosure of fair value measurements by level of the
following fair value measurement hierarchy (consistent with the hierarchy applied to financial assets and
financial liabilities):
(a) quoted prices (unadjusted) in active markets for identical assets or liabilities (level 1)
(b) inputs other than quoted prices included within level 1 that are observable for the asset or
liability, either directly (as prices) or indirectly (derived from prices) (level 2), and
(c) inputs for the asset or liability that are not based on observable market data (unobservable
inputs) (level 3).
16
Ironbark Capital Limited
ABN 89 008 108 227
Notes to the Financial Statements
For the half-year ended 31 December 2022
4.
Fair value measurements (continued)
The following table presents the Company's financial assets and liabilities measured and recognised at
fair value according to the fair value hierarchy at 31 December 2022:
31 December 2022
Financial assets
Trading portfolio
Total
30 June 2022
Financial assets
Trading portfolio
Total
Level 1
$'000
43,371
43,371
Level 1
$'000
44,683
44,683
Level 2
$'000
16,107
16,107
Level 2
$'000
11,465
11,465
Level 3
$'000
-
-
Level 3
$'000
-
-
Total
$'000
59,478
59,478
Total
$'000
56,148
56,148
There were no transfers between levels for recurring fair value measurements during the period. The
Company’s policy is to recognise transfers into and out of fair value hierarchy as at the end of the
reporting period.
5. Dividends
(a)
Ordinary Shares
Dividends provided for or paid during the half-year
1,377
1,539
Half-year ended
31 December
2022
$'000
31 December
2021
$'000
Since the end of the half-year, the Directors have declared a fully franked dividend of 1.1 cents per
share to be paid on 30 March 2023. The aggregate amount of $1.211 million has not been recognised
as a liability at the end of the period.
(b)
Dividend rate
Dividends provided for or paid are fully franked at 25% tax rate (2022: 25%).
17
Ironbark Capital Limited
ABN 89 008 108 227
Notes to the Financial Statements
For the half-year ended 31 December 2022
6. Earnings per share
(a)
Basic and diluted earnings per share
From continuing operations attributable to the
ordinary equity holders of the company
Half-year ended
31 December 31 December
2022
Cents
2021
Cents
4.01
1.70
(b)
Weighted average number of shares used as denominator
Half-year ended
31 December 31 December
2022
Number
2021
Number
110,144,709
119,760,682
Weighted average number of ordinary shares
used as the denominator in calculating basic
and diluted earnings per share
7. Issued capital
(a)
Issued capital
31 December
2022
Shares
30 June
2022
Shares
31 December
2022
$'000
30 June
2022
$'000
Ordinary shares - fully paid
110,136,394
110,154,394
60,467
60,475
(b)
Movements in ordinary share capital
Balance at 1 July 2022
On-market share buyback
Balance at 31 December 2022
8. Contingencies
Number of
shares
$'000
110,154,394
(18,000)
110,136,394
60,475
(8)
60,467
The Investment Management Agreement entered into by the Company with Kaplan Funds Management
Pty Ltd may be terminated by either party giving to the other no less than one-year written notice of its
intention to do so.
The Company had no other contingent liabilities at 31 December 2022 (2021: nil).
18
Ironbark Capital Limited
ABN 89 008 108 227
Notes to the Financial Statements
For the half-year ended 31 December 2022
9. Events occurring after the reporting period
Since half-year end, 1,942 shares have been bought in the on-market share buy-back. The program is
on-going until 20 July 2023.
Other than the declaration of a fully franked dividend of 1.1 cents per share, as outlined in note 5, no
other matter or circumstance has occurred subsequent to the period end that has significantly affected,
or may significantly affect, the operations of the Company, the results of those operations or the state
of affairs of the Company or economic entity in subsequent financial years.
19
Ironbark Capital Limited
ABN 89 008 108 227
Directors’ Declaration
For the half-year ended 31 December 2022
In the Directors' opinion:
(a)
the Interim Financial Statements and notes set out on pages 12 to 19 are in accordance with
the Corporations Act 2001, including:
(i)
(ii)
complying with Accounting Standard AASB 134 Interim Financial Reporting and the
Corporations Regulations 2001, and
giving a true and fair view of the entity's financial position as at 31 December 2022
and of its performance for the half-year ended on that date.
(b)
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.
Michael J Cole AM
Chairman
Sydney
17 February 2023
20
IRONBARK CAPITAL LIMITED
ABN 89 008 108 227
INDEPENDENT AUDITOR'S REVIEW REPORT TO THE MEMBERS OF
IRONBARK CAPITAL LIMITED
ABN 89 008 108 227
Conclusion
We have reviewed the half-year financial report of Ironbark Capital Limited, which comprises the
statement of financial position as at 31 December 2022, the statement of profit or loss and other
comprehensive income, the statement of changes in equity and the statement of cash flows for the
half-year then ended, a summary of significant accounting policies and other explanatory information,
and the directors’ declaration.
Based on our review, which is not an audit, we have not become aware of any matter that makes us
believe that the accompanying half-year financial report of Ironbark Capital Limited does not comply
with the Corporations Act 2001 including:
(a) giving a true and fair view of the Ironbark Capital Limited financial position as at 31 December
2022 and of its performance for the half year ended on that date; and
(b) complying with Accounting Standard AASB 134: Interim Financial Reporting and the
Corporations Regulations 2001.
Basis for Conclusion
We conducted our review in accordance with ASRE 2410: Review of a Financial Report Performed
by the Independent Auditor of the Entity. Our responsibilities are further described in the Auditor’s
Responsibilities for the Review of the Financial Report section of our report. We are independent of
Ironbark Capital Limited in accordance with the auditor independence requirements of the
Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110: Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the annual financial report in Australia. We
have also fulfilled our other ethical responsibilities in accordance with the Code.
Responsibility of Directors for the Financial Report
The directors of Ironbark Capital Limited are responsible for the preparation of the half-year financial
report that gives a true and fair view in accordance with Australian Accounting Standards and the
Corporations Act 2001 and for such internal control as the directors determine is necessary to enable
the preparation of the half-year financial report that gives a true and fair view and is free from
material misstatement, whether due to fraud or error.
Auditor’s Responsibility for the Review of the Financial Report
ASRE 2410 requires us to conclude whether we have become aware of any matter that makes us
believe that the half-year financial report is not in accordance with the Corporations Act 2001
including giving a true and fair view of the Company’s financial position as at 31 December 2022 and
its performance for the half-year ended on that date, and complying with Accounting Standard AASB
134: Interim Financial Reporting and the Corporations Regulations 2001.
21
A review of a half-year financial report consists of making enquiries, primarily of persons responsible
for financial and accounting matters, and applying analytical and other review procedures. A review is
substantially less in scope than an audit conducted in accordance with Australian Auditing Standards
and consequently does not enable us to obtain assurance that we would become aware of all
significant matters that might be identified in an audit. Accordingly, we do not express an audit
opinion.
MNSA Pty Ltd
Mark Schiliro
Director
Sydney
17th February 2023
22