Quarterlytics / Financial Services / Asset Management / Ironbark Capital Limited / FY2022 Annual Report

Ironbark Capital Limited
Annual Report 2022

IBC · ASX Financial Services
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FY2022 Annual Report · Ironbark Capital Limited
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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
-
n
u
J

6
0
-
c
e
D

7
0
-
n
u
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
u
J

0
1
-
c
e
D

1
1
-
n
u
J

1
1
-
c
e
D

2
1
-
n
u
J

2
1
-
c
e
D

3
1
-
n
u
J

3
1
-
c
e
D

4
1
-
n
u
J

4
1
-
c
e
D

5
1
-
n
u
J

5
1
-
c
e
D

6
1
-
n
u
J

6
1
-
c
e
D

7
1
-
n
u
J

7
1
-
c
e
D

8
1
-
n
u
J

8
1
-
c
e
D

9
1
-
n
u
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