2020
ANNUAL REPORT
Pure Foods Tasmania Limited & Controlled Entities
for the financial year ended 30 June 2020
Pure Foods Tasmania started as a private company
in 2015, formed by 18 shareholders to distribute
and showcase premium Tasmanian produce…
View of Hobart from Mt Wellington
Pure Foods Tasmania Pty Ltd | 2020 Annual Report
Pure Foods Tasmania Pty Ltd | 2020 Annual Report Contents
Pure Foods Tasmania Pty Ltd | 2020 Annual Report 2
Who is Pure Foods Tasmania?
Chairman’s Report
Managing Director’s Report
PFT Group Review
Tasmanian Pate
Woodbridge Smokehouse
What’s Ahead for PFT?
Our People
Corporate Governance
Directors’ Report
Remuneration Report
Auditor’s Independence Declaration
Statement of Profit or Loss and
Other Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Audit Report
Shareholder Information
Corporate Directory
2
3
5
7
9
13
18
21
22
25
28
30
31
32
33
34
35
53
55
59
60
1
Pure Foods Tasmania Pty Ltd | 2020 Annual Report Who is Pure Foods
Tasmania?
Pure Foods Tasmania Holdings Pty
Ltd, a wholly owned subsidiary of Pure
Foods Tasmania Ltd (PFT), was formed
in 2015 with the aim to acquire, grow
and develop premium food businesses
in Tasmania.
To date and in line with this strategy, PFT acquired
two businesses (which are held through separate
wholly owned subsidiaries): Tasmanian Pate and
Woodbridge Smokehouse. On 9 September 2020, PFT
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added a third business to its portfolio: Daly Potato
Company Pty Ltd.
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Strategy
PFT’s growth strategy is twofold:
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½ organically grow its existing pate and Woodbridge
product range and;
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½ grow via the acquisition of complementary
businesses.
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Organic growth will be achieved through increased
penetration of existing markets, entry into new
markets with a focus on exports and new product
development. Significantly, the move to the new
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purpose-built facilities in Mornington, Hobart
provides a platform for the Company to increase pate
production, improve operating efficiencies, develop a
range of new products and obtain an export licence to
explore opportunities in overseas markets.
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PFT also intends to grow through the acquisition
of complementary businesses, with a focus
on synergistic and similar premium food and
289
beverage businesses in Tasmania, as well as other
complementary assets and businesses that align with
its existing portfolio.
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In FY20 PFT bought
170 tonnes
of chicken livers
to make the famous Tasmanian Pate
Farm land in Devonport, Tasmania
2
FunfactPure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report Chairman’s Report
Pure Foods Tasmania aims to acquire, grow and
develop premium food businesses in Tasmania,
particularly where associated products are
complimentary to existing products. We endeavour
to maintain an awareness of international trends in
consumer tastes, healthy food options, convenience
and packaging.
Our growth initiatives will be supported by the recently
formed team charged with the responsibility of branding,
new product development and distribution. Investment
in people is paramount to maintaining a skilled, engaged
and effective workforce. On behalf of the Board, I would
like to thank our hard-working dedicated team members,
particularly, our extremely resourceful and talented
Managing Director, Michael Cooper.
Your Board is confident that appropriate strategies
are in place, supported by a strong Company
culture, to drive the right outcomes for customers,
the community and continued value creation for
our shareholders over the long-term. On behalf of
my fellow Directors, I thank you for your continued
support for our company and look forward to seeing
as many of you as possible at our Annual General
Meeting in November.
Malcolm McAully
Non-Executive Chairman
I am pleased to present the Pure Foods Tasmania
Annual Report for the financial year ended 30 June
2020. This is the first annual report presented by Pure
Foods Tasmania as an ASX listed company. Listing was
successfully completed on 30 April 2020.
Pure Foods Tasmania started as a private company
in 2015, formed by 18 shareholders to distribute
and showcase premium Tasmanian produce to
local, interstate and overseas markets. Beginning
with 2 companies, Tasmanian Pate and Woodbridge
Smokehouse, our strategy is to grow organically and
through further acquisition. The public listing enables
the company access to capital to achieve diversification
and economies of scale, key contributors to our
revenue and profit growth.
The Board maintains a strong focus on all aspects of
corporate governance, not only ensuring its policies,
practices and frameworks are of a high standard, but
also that they evolve to meet increasing community
expectations. The Board also seeks to monitor that
the company’s values are upheld to ensure a positive
culture can thrive.
Our core values are:
½ Integrity: we act honestly, with integrity in all
dealings, both internally and externally.
½ Respect: we respect all people; their ideas
and cultures.
½ Safety: we are committed to providing
a safe and non-discriminatory working
environment.
½ Community: we act with reasonable
expectations of our investors and the
broader community.
½ Commitment: we are committed to
achieving positive outcomes for all
stakeholders.
3
Pure Foods Tasmania Pty Ltd | 2020 Annual Report “Tasmania really is the
best place in the world.
We’re very lucky!”
Michael Cooper
Managing Director
4
Pure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report Managing Director’s Report
This has been a watershed year for Pure Foods
Tasmania, and one marked with surprises and
continued robust performance of our core businesses
– Tasmanian Pate and Woodbridge Smokehouse. The
surprises were several and included:
½ Successfully listing PFT on the ASX in the midst of
global uncertainty in the wake of the COVID-19
pandemic;
½ Being overwhelmed by the interest shown by
investors and the substantial over-subscription
witnessed in the listing;
½ The momentum in the share price which touched
$1.39 on 1 October 2020, 595% above its listing
price on 30 April 2020;
½ The strong underlying demand for our products in
Australia where the economic outlook is uncertain,
and many States in Australia continue to have their
borders closed;
½ Robust international demand for our products and
interest in our developing range of new products,
including pate following the successful application
for an export licence for Tasmanian Pate. This is at
a time when international borders are closed, and
many countries have lockdown measures in place
as they deal with the first wave and/or second
wave of COVID-19.
Tasmanian Pate was acquired in 2015 and for the
four years to June 2020, recorded compound annual
revenue growth of 8.4% per annum. It has been
a consistent and solid business and a strong cash
generator. In FY20 it generated EBITDA of $825,124,
a margin of 26% on revenue. With the new plant
to be commissioned later this calendar year, an
investment in excess of $1M, we anticipate those
margins will grow.
Tasmanian Pate also secured an export licence on 27
August 2020 and this opens up a new market for pate
as the Company has never exported pate. Initial export
interest is very promising.
Woodbridge Smokehouse was also acquired in 2015
and has undergone substantial restructuring and
realignment of its product mix to return the business
to profitability and refocus it on its burgeoning export
market. Our philosophy was that it is a super-premium
product and there was never any intention to build a
strong national presence. We currently export over
60% of our smoked salmon and trout and the core
strategy has been to extend that, however recent
inquiries from local retailers and subsequent success
with a State-based and high-end bakery chain in
Victoria, has changed our thinking.
Woodbridge is cashflow positive and generating
positive EBITDA and recorded compound annual
revenue growth of 16% per annum for the four years
to June 2020.
Staff safety is our number one priority and in FY20
we had zero instances of injury or time lost due to
accidents or injuries. Moreover, we now boast a
majority female employee team across the Company
and two of our three key senior appointments in the
last 12 months have been women.
Other recent initiatives include:
½ Product development in prepared meals
½ Homestead – Tasmanian Pate sub-range
½ New Pastures – Plant-based dairy
½ Acquisition of Daly Potato Co
½ Expansion and growth of e-commerce presence.
These initiatives are explored in detail throughout
the report.
I want to thank all employees as it has been a very big
year, with a stand out being the successful relocation
to a new factory in October 2019 for Tasmanian Pate.
This was a massive achievement considering we did
not have any effects to our customer supply chain
during the transition. I’d also like to thank the Board
for the support of many long hours achieving our ASX
listing on the 30th of April 2020.
Michael Cooper
Managing Director
5
Pure Foods Tasmania Pty Ltd | 2020 Annual Report VIC
47%
NSW
31%
Asia
9%
TAS
9%
WA
QLD
1%
3%
R e t ail 74%
Direct 1%
Food Service 1%
Distributors
15%
Export
9%
e
u
g
o
s e
ood b ri d
oke h
24 %
W
m
S
%
6
7
e
at
Tas m a n i a n P
WBSH Sales By Channel
WBSH Sales By State
WBSH Sales By Species
Direct
Food
Service
SA & QLD WA
etail
R
C
I
V
x p ort
E
N
S
W
TAS
almo n
S
c
i
t
n
a
l
t
A
O
c
e
a
n
T
r
o
ut
Tas Pate Customer Share
Tas Pate Market Share
Tas Pate FY20 Sales by State
hite Lab el
W
W
o
l
l
w
o
r
t
h
s
t i o n
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Distrib
e tail
R
VIC
54%
NSW
36%
Q
L
T
A
S
D
4
%
6
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PFT Financial Snapshot
M e n o ra
/ M o n d e
e l e
d s
o
o
s
A
n
g
n F
d
e
E
S
D
al C
FY20 Total Revenue
C ostco
Statewide
$4.72m
13% since Dec 2019
y
o
R
Tas Pate Sales by Pack Type
Revenue
BY REGION
Tri p l e
7 %
1
Revenue
BY CUSTOMER CHANNEL
%
8
2
R e t ail 74%
NSW
31%
n
i
w
T
%
6
5
R e t ail 74%
e
l
g
Sin
R e t ail 74%
FY20 EBITDA
$41,009
Tas Pate Sales by Flavour
562% since FY19
O ri g i n a l
6 %
Revenue
1
BY BUSINESS
S
a
m
l
o
n
g
ood b ri d
o
oke h
24 %
W
m
S
5
%
2
e
u
s e
Orange
Brandy
11%
S
i
P
n
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g
p
l
e
p
e
g
e
ood b ri d
5
s e
r
u
6
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oke h
4
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8
24 %
%
W
m
S
%
6
7
e
at
VIC
47%
NSW
31%
VIC
47%
Asia
9%
TAS
9%
NSW
31%
VIC
47%
Asia
9%
TAS
9%
Asia
9%
TAS
9%
Direct 1%
Food Service 1%
Direct 1%
Food Service 1%
Tas m a n i a n P
Direct 1%
Food Service 1%
Tas m a n i a n P
WA
QLD
1%
3%
WA
1%
QLD
3%
WA
1%
QLD
3%
Distributors
15%
Distributors
Export
15%
9%
Distributors
Export
15%
9%
Export
9%
5
200
Tas Pate Sales Customer Type
6 %
abel 3
L
e
t
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h
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e
u
s e
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t
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o
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G r o c
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6
7
e
at
Tas m a n i a n P
Tas Pate Sales by Brand
g
ood b ri d
o
oke h
24 %
W
m
S
%
6
7
e
at
WBSH Sales By Channel
WBSH Sales By Channel
WBSH Sales By Channel
4
WBSH Sales By State
WBSH Sales By State
WBSH Sales By State
0
WBSH Sales By Species
Direct
Direct
Food
Service
)
s
n
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e
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m
v
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e
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t
a
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Tas Pate FY20 Sales by State
NSW
36%
NSW
36%
NSW
36%
Tas Pate Customer Share
Cradle Mountain in Tasmania’s Central Highlands
Tas Pate Customer Share
Tas Pate Customer Share
Tas Pate Market Share
Tas Pate Market Share
Tas Pate Market Share
Tas Pate FY20 Sales by State
Tas Pate FY20 Sales by State
o
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W
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hite Lab el
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M e n o ra
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Tas Pate Sales by Pack Type
Tas Pate Sales by Pack Type
Tas Pate Sales by Pack Type
Tas Pate Sales by Flavour
Tas Pate Sales by Flavour
Tas Pate Sales by Flavour
Tas Pate Sales Customer Type
Tas Pate Sales Customer Type
Tas Pate Sales Customer Type
Tri p l e
7 %
1
Tri p l e
7 %
1
Tri p l e
7 %
1
O ri g i n a l
6 %
1
%
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Orange
Brandy
11%
Orange
Brandy
11%
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6 %
0
2
abel 3
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t
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Tas Pate Sales by Brand
Tas Pate Sales by Brand
Tas Pate Sales by Brand
200
0
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S
i
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Ta s m a
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n
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l
l
FY17
FY17
FY18
FY18
FY17
FY19
FY19
FY18
FY20
FY20
FY19
FY20
Revenue
Revenue
NPAT
NPAT
Revenue
EBITDA
EBITDA
NPAT
EBITDA
Managing Director’s ReportPure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual ReportManaging Director’s Report
PFT Group Review
Company Summary
Results FY20 v FY19 – PFT Group
Sales
Group
Net Loss
FY20
$4,279,764
($196,480)
Underlying EBITDA
$41,009
Imparing
Listing
-
$193,861
FY19
$3,789,405
($322,158)
($189,322)
$193,861
Var $
+$490,359
Var %
+13%
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Pure Foods Tasmania had a highly successful FY20, as shown in the financial figures and through the Charmain’s
and Managing Director’s reports.
This secure position supports PFT to be in an strong place for substantial future growth, where PFT will continue to
grow organically and through acquisition.
Forward Revenue
PFT has begun the new financial year with strong
momentum, following the recent success of 3 pate
products being ranged in retail nationally in Q2 FY21.
We are forecasting this to grow Group revenue by 35%
in FY21.
Ongoing discussions are also current to secure a
national partner to increase our distribution across the
Australian retail and route market with our brands.
New Categories
Following on from securing a product range in
the plant-based food category, the PFT Board has
also approved the move into beverages, both non-
alcoholic and alcoholic.
This has been where the majority of Michael
Cooper’s, PFT Managing Director, experience over the
last 28 years. Michael is confident PFT can innovate
in the beverage space focusing on using Tasmania’s
pure clean water, along with the amazing fruits
grown on our island.
Export
We are also working closely with our export
654
customers to enter the e-commerce business via
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their own portals which is an extremely fast-moving
space. Driven by COVID-19 restrictions, consumers are
buying more of their food online.
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Automation
FY21 will see the largest investment in automation
for PFT since 2015 with capex of over $1 Million to
support growing demand for our products, along with
improved operational efficiencies and critically, safety
for our employees. This investment will also improve
our product quality, yield and with a forecasted
payback of 24 months.
7
Managing Director’s ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report pâté (noun)
pâ·té|\pä-ˈtā,pa-\
1: a spread of finely chopped or
pureed seasoned meat
2: a meat or fish pie or patty
8
Managing Director’s ReportManaging Director’s ReportPure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report VIC
47%
NSW
31%
Asia
9%
TAS
9%
WA
QLD
1%
3%
Direct 1%
Food Service 1%
Distributors
15%
Export
9%
etail
R
C
I
V
x p ort
E
N
S
W
TAS
hite Lab el
W
W
o
l
l
w
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r
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h
s
M e n o ra
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s
e l e
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d s
o
o
g
e
n
d
A
E
C ostco
Statewide
S
D
al C
y
o
R
Tri p l e
7 %
1
%
8
2
n
i
w
T
e
u
n
e
v
e
R
)
s
n
o
i
l
l
i
m
$
(
5
4
3
2
1
0
R e t ail 74%
e
u
s e
g
ood b ri d
o
oke h
24 %
W
m
S
%
6
7
e
at
Tas m a n i a n P
WBSH Sales By Channel
WBSH Sales By State
WBSH Sales By Species
Direct
Food
Service
SA & QLD WA
361
Tasmanian Pate
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a
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t
A
Font: Noto Sans Light, Regular, Medium
O
c
e
a
n
Tasmanian Pate produces a wide
range of premium pates that have
been enjoyed for over 20 years by
Australians.
T
r
o
ut
Ranged nationally in retail stores
and in quality independent grocers,
Tasmanian Pate is a product you
can guarantee will compliment any
entertaining platter.
Tas Pate Customer Share
Tas Pate Market Share
Tas Pate FY20 Sales by State
FY20 Sales by State
t i o n
u
Distrib
654
356
187
CG1
289
B6
Font: ASAP Regular, Medium
VIC
54%
NSW
36%
Q
L
T
A
S
D
4
%
6
%
e tail
R
Font: Adrianna Regular
Highlights
½ Tasmanian Pate achieved a record result with
strong sales in pate across all customers while
continuing to focus on driving cost efficiencies.
½ New factory commissioned October 2019
delivered increased capacity and improved
product quality and yield.
½ New product development underpinned
growth for Tasmanian Pate; this supports the
continued investment in new products as we
seek to bring more “Better For You” products to
our consumers.
½ Shelf ready packaging was also introduced to
promote brand awareness.
½ We are also working hard and, where at all
possible, use 100% Tasmanian ingredients,
helping to give us a competitive point of
Neutral
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difference.
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157
376
½ In Q1 FY21, 3 new pate products will be
launched into 850 retail stores nationally
under a new tier brand, Homestead by
Tasmanian Pate (see page 12).
Font: Adrianna Regular
Sales ($ milions)
Sales ($ milions)
Sales ($ millions)
12mth Variance ($ milions)
12mth Variance ($ milions)
12 Month Variance ($ millions)
Tas Pate Sales by Pack Type
Tas Pate Sales by Flavour
%
6
5
e
l
g
Sin
O ri g i n a l
6 %
1
S
a
l
m
o
n
2
5
%
Orange
Brandy
11%
S
i
P
n
e
g
p
l
e
p
e
5
r
6
4
%
8
%
3.5
3.5
3.0
3.0
2.5
2.5
2.0
2.0
1.5
1.5
1.0
1.0
0.5
0.5
0.0
0.0
Tas Pate Sales Customer Type
6 %
abel 3
L
e
t
i
h
W
FY16
FY16
FY17
FY17
l
l
a
u
t
c
A
a
u
t
c
A
FY19
FY19
FY20
FY20
Distrib
2
0
%
u
t
S
i
o
r
n
g
l
e
5
6
%
FY18
FY18
e r y 44%
5 years of solid growth
G r o c
200
0
–200
– 400
A
D
T
I
B
E
/
T
A
P
N
)
s
d
n
a
s
u
o
h
t
$
(
Tas Pate Sales by Brand
6 %
abel 3
L
e
t
i
h
W
3%
S
i
n
g
l
%
e
1
5
6
6
e
%
t
a
nian P
Ta s m a
FY17
FY18
FY19
FY20
Revenue
NPAT
EBITDA
3.5
3.5
3.0
3.0
2.5
2.5
2.0
2.0
1.5
1.5
1.0
1.0
0.5
0.5
0.0
0.0
Variance
Variance
21%
21%
Variance
Variance
80%
80%
Sales
Sales
EBITDA
EBITDA
FY19
FY20
9
Managing Director’s ReportManaging Director’s ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report
Managing Director’s Report
Managing Director’s Report
Australians buy
57% more Pate
in the festive month of December
compared to the average monthly value.
10
FunfactPure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report VIC
47%
NSW
31%
Asia
9%
TAS
9%
WA
QLD
1%
3%
R e t ail 74%
Direct 1%
Food Service 1%
Distributors
15%
Export
9%
e
u
g
o
s e
ood b ri d
oke h
24 %
W
m
S
%
6
7
e
at
Tas m a n i a n P
WBSH Sales By Channel
WBSH Sales By State
WBSH Sales By Species
VIC
47%
NSW
31%
Asia
9%
TAS
9%
WA
QLD
1%
3%
R e t ail 74%
Direct
Food
Service
SA & QLD WA
e
u
g
o
s e
ood b ri d
oke h
24 %
W
m
S
etail
R
Direct 1%
Food Service 1%
Distributors
15%
Export
9%
x p ort
E
%
6
7
e
at
N
S
W
C
Tas m a n i a n P
V
I
TAS
almo n
S
c
i
t
n
a
l
t
A
WBSH Sales By Channel
WBSH Sales By State
WBSH Sales By Species
VIC
47%
Tas Pate Market Share
Tas Pate FY20 Sales by State
e
u
g
o
s e
ood b ri d
oke h
24 %
W
m
S
%
6
7
e
at
O
c
e
a
n
T
r
o
ut
R e t ail 74%
NSW
31%
Asia
9%
VIC
4
7
%
Direct 1%
Food Service 1%
Tas m a n i a n P
N
S
W 3
1
O
c
e
TAS
9%
t i o n
a
n
%
u
Direct
Food
Service
SA & QLD WA
etail
R
x p ort
E
Tas Pate Customer Share
N
S
W
C
I
V
hite Lab el
W
W
o
l
l
w
o
r
t
h
s
TAS
almo n
S
c
i
t
n
a
l
t
A
M e n o ra
/ M o n d e
s
e l e
n F
d s
o
o
g
e
n
d
A
E
C ostco
Statewide
S
D
al C
y
o
R
Tas Pate Customer Share
Tas Pate Market Share
Tas Pate Sales by Pack Type
hite Lab el
W
W
o
l
l
w
o
r
t
h
s
M e n o ra
/ M o n d e
s
e l e
n F
d s
o
o
g
e
n
d
A
E
C ostco
Statewide
S
D
al C
y
o
R
t i o n
u
Distrib
Tri p l e
7 %
1
%
8
2
n
i
w
T
%
6
5
e
l
g
Sin
e tail
R
Distrib
T
r
o
ut
QLD
3%
WA
1%
Distributors
15%
Export
9%
NSW
36%
Managing Director’s Report
WBSH Sales By Channel
e tail
R
VIC
54%
W
A 1
% Q
L
D 3
%
WBSH Sales By State
4
L
D
Q
T
A
S
%
6
%
TA
9
%
S
Asia 9
%
WBSH Sales By Species
Retail 7
4
%
Direct
Operations
Tasmanian Pate’s operations received a large overhaul
in FY20, with the move from our North Hobart facilities
to Mornington on the Eastern Shore in October 2019.
Not only did this move allow room for expansion
Tas Pate FY20 Sales by State
but increased the safety for employees and reduced
Tas Pate Sales by Flavour
running costs with a more competent facility.
etail
361
Food
Service
Black
R
CG5
7578
SA & QLD WA
Marketing & Sales
The introduction of shelf ready displays throughout
7528
the independents and national retail stores in FY20,
increased the shelf presence of the existing product
lines. These displays will be distributed further during
FY21 to support brand awareness and recognition.
S
B
W
Black
7409
N
S
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Tas Pate Sales Customer Type
W
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P
1
n
6 %
S
i
NSW
36%
O ri g i n a l
Pure Foods Tasmania has continued to invest in this
new facility with significant renovations and further
expansion after establishment. This expansion will
see room for a distribution centre for more PFT
brands, and to facilitate the increasing number of
e-commerce orders.
VIC
54%
Tasmanian Pate applied for an export license in
FY20 for the new Mornington Facility, which we are
356
pleased to announce was approved in Q1 FY21.
This opens a whole new market for Tasmanian Pate
Orange
and is confirmation of the high standard our new
Brandy
Mornington facility has established.
11%
x p ort
e
p
e
5
r
6
4
%
8
%
4
S
a
m
g
p
o
654
L
l
n
D
Q
%
%
e
A
5
E
2
S
T
l
6
%
l
t a i
C
I
V
abel 3
Distrib
Tasmanian Pate launched a new Free-Range Chicken
Pate product into retail and independents in Q2 FY20.
This new line helped to drive Tasmanian Pate sales,
6 %
which recorded a lift in the top line of 21% for the
financial year.
L
This initiative has set Tasmanian Pate up for
e
significant growth in FY21, which is reinforced with
t
i
5
h
the launch of a new tier up range, Homestead by
6
W
%
Tasmanian Pate in Q1 (see page 12).
Neutral
Black
TAS
t
S
i
7499
50%
e
2
157
0
g
u
R
%
r
n
o
e
l
CG1
289
B6
Moving into FY21, Tasmanian Pate will receive some
Font: Adrianna Regular
much-needed branding and marketing attention from
PFT’s newly employed Marketing & Brand Manager,
which will help to drive this growth further.
Ex p o r t
G r o c
e r y 44%
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Direct
n
el
han
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S
o
c
i
t
n
Fo
a
l
t
A
376
VIC
Tri p l e
7 %
1
%
8
2
n
i
w
T
e
u
n
e
v
e
R
)
s
n
o
i
l
l
i
m
$
(
5
4
3
2
1
0
Tas Pate Sales by Pack Type
Tas Pate Sales by Flavour
Tas Pate Sales Customer Type
FY20 Sales by Customer Type
Tas Pate Customer Share
Tas Pate C
Tas Pate Sales by Brand
FY20 Sales by Brand
Tas Pate Market Share
Tas Pate FY20 Sales by State
5
O ri g i n a l
6 %
1
4
e
u
n
e
v
e
R
)
s
n
o
i
l
l
i
m
$
(
S
a
l
m
o
n
2
5
%
3
2
1
S
i
P
n
e
g
p
l
e
p
e
5
r
6
4
%
8
%
%
6
5
e
l
g
Sin
6 %
abel 3
L
e
t
i
h
W
Orange
0
Brandy
11%
FY17
FY18
FY19
Revenue
NPAT
EBITDA
200
Distrib
hite Lab el
t
S
i
u
r
o
n
2
0
%
0
W
–200
g
l
A
D
T
I
B
E
e
/
5
T
6
A
%
P
N
)
s
d
n
a
s
u
o
h
t
$
(
s
e l e
g
n
A
o
o
d s
–400
e r y 44%
n F
C ostco
e
d
G r o c
E
Statewide
FY20
S
D
al C
y
o
R
6 %
W hit e L a b el
abel 3
L
e
t
i
h
W
W
o
l
l
w
o
r
t
h
s
Angeles
Eden Foods
C o s t c o
e w i d
M e n o ra
/ M o n d e
S
a
t
t
e
Menora
3%
/Monde
S
D
Woodbridge
o y al C
R
usto
m
u
t i o n
er Share
Distrib
S
i
n
g
W
o
l
l
w
o
l
e
%
1
5
6
6
e
%
t
a
nian P
rths
Ta s m a
e tail
R
Tas Pate M
arket Share
t r i bution
D i s
Tas Pate Sales by Brand
Tas Pate Sales by Pack Type
FY20 Sales by Pack Type
Tas Pate Sales by Flavour
FY20 Sales by Flavour
Tas Pate Sales Customer Type
Tas Pate Sales by Pack Typ
Triple
17%
e
Tri p l e
7 %
1
200
0
–200
–400
A
D
T
I
B
E
/
T
A
P
N
)
s
d
n
a
s
u
o
h
t
$
(
FY17
FY18
FY19
FY20
Revenue
NPAT
EBITDA
6 %
abel 3
L
e
t
i
h
W
3%
Ta s m a
5
4
ue
ns)
Reven
($ millio
3
2
1
0
FY
1
7
%
6
5
e
l
g
%
Sin
6
S i n gle 5
S
i
n
g
l
%
8
2
n
%
i
e
w
%
1
5
6
8
T
6
2
e
%
t
a
n
i
w
nian P
T
e
u
n
e
v
e
R
)
s
n
o
i
l
l
i
m
$
(
5
4
3
2
1
0
R
eve
n
u
e
FY
1
8
N
P
AT
FY
1
9
FY17
FY18
FY20
Revenue
EBITDA
2
0
0
0
NPAT
–
2
0
0
FY19
A
ds)
PAT / EBITD
usan
($ th
o
N
E
BIT
D
A
FY
2
0
–
4
0
0
O ri g i n a l
6 %
1
Re t a i l
S
i
P
n
e
g
p
l
S
a
m
l
o
n
2
5
e
p
e
5
r
6
4
%
8
%
Tas Pate Sales by Flavo
O riginal
16%
Orange
Brandy
11%
%
ur
Salm
o
n
2
5
%
Oran
Bran
dy11
%
ge
S
i
P
n
e
g
p
p
le 56%
er 48%
200
A
D
T
I
B
E
/
T
A
P
N
)
s
d
n
a
s
u
o
h
t
$
(
0
–200
–400
usto
m
er Typ
e
S
i
n
Tas Pate Sales C
11
Tas Pate Sales by Brand
36%
b e l
hite L a
W
abel 3
L
e
t
i
h
W
6 %
D
i
s
t
r
2
i
0
b
%
u
t
S
o
i
r
n
g
le 56%
Grocer y 4 4 %
3%
Ta s m a
g
l
%
e
1
5
6
6
e
%
t
a
nian P
Tas Pate Sales by Bran
36%
d
b e l
hite L a
W
3
%
S
i
n
g
%
le 56%
1
Tasma n i a n P ate 6
Exp
ort 9
%
Direct 1
o
Fo
%
d Service 1
%
Distrib
1
5
utors
%
O
c
e
a
n
T
r
o
W
B
ut
S
H Sales By State
L
D
S
A & Q
W
A
o d b ridge
k e house
o
2 4 %
o
W
S m
%
a te 76
T
a
s
mania n
P
N
S
W
W
B
S
H Sales By Sp
ecies
T A S
VIC
54%
ntic S al m o n
NSW
36%
a
l
t
A
Q
L
T
A
S
D
4
%
6
%
O
c
e
a
n Trout
6 %
abel 3
L
e
t
i
h
W
Distrib
2
0
u
t
%
S
o
i
r
n
g
l
e
5
6
%
VIC
5
4
%
G r o c
e r y 44%
Tas Pate FY2
0 Sales by State
N
S
3
6
%
W
Q
L
D
4
%
T
A
S
6
%
Pure Foods Tasmania Pty Ltd | 2020 Annual Report
Managing Director’s Report
Homestead
by Tasmanian Pate
361
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With rich and fertile soils, Tasmania has always been
Font: Noto Sans Light, Regular, Medium
a haven for premium produce. A drive through the
State’s rustic landscape you are brought back to
provincial Tasmania with stretches of rolling fields
and groves.
Homestead by Tasmanian Pate brings the beauty
of Tasmania’s produce and meadows to you, to
experience and enjoy with family and friends.
A sub range of Tasmanian Pate, PFT has secured three
new lines into retail nationally under a new brand,
Homestead.
Homestead focuses on premium Tasmanian
produce, to produce flavours yet to be seen in
the Australian pate market.
Font: Adrianna Regular
The following 3 SKUs will be stocked in 850 retail
stores Australia wide from
October 2020:
½ Tasmanian Salmon with
Lemon Pepper Jelly 150g
½ Duck Pate with Tasmanian
Brandy Jelly 150g
654
356
187
CG1
289
B6
½ Free Range Chicken Pate
with Cracked Pepper 150g
Neutral
Black
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Font: ASAP Regular, Medium
Font: Adrianna Regular
These products are estimated
to increase Tasmanian Pate
sales by 45% and the Group by
35% in FY21.
12
Pure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual ReportManaging Director’s Report Woodbridge
Smokehouse
The Southern Ocean produces the finest
fish, from which we make the finest smoked
products. It’s that simple.
Established in 2004, Woodbridge Smokehouse
produces some of the most mouth-watering
and luxuriant smoked Ocean Trout and
Atlantic Salmon available today – anywhere in
the world.
Situated on the verdant south-east coast of
Tasmania, Woodbridge Smokehouse is set in
our own 25-acre apple orchard. Traditional
hand-smoking processes using the wood of
our own fruit trees creates the delicate and
distinctive flavours for which Woodbridge
Smokehouse is renowned.
Managing Director’s Report
Highlights
½ Woodbridge Smokehouse saw a slight
reduction in gross sales mainly due
to a restructure involving deleting of
unprofitable products produced exclusively
for some customers. The focus has been to
move these customers into products that
deliver a positive return.
½ The focus will continue in FY21 driving
cost efficiencies along with new product
development to support growth for both
domestic and export customers.
½ FY20 also saw the investment in new
packaging including our 200g twin pack for
both salmon and ocean trout.
½ A new factory for value adding and product
development under construction and to be
completed end Q1 FY21.
½ We are currently working with export
customers in Asia to expand distribution
through retail and e-commerce channels.
13
Pure Foods Tasmania Pty Ltd | 2020 Annual Report Operations
The operational focus for Woodbridge Smokehouse
in FY20 was to create further efficiencies in costs
and production. To enable this, PFT employed a
production supervisor for the Smokehouse to manage
the operations on a day to day basis and to identify
potential areas of improvements.
Alongside PFT’s Operations Manager, the Production
Supervisor was able to drive cost efficiencies with
a reduction of SKUs and stronger processes within
the Smokehouse. This meant that a smaller number
of products were produced in a more systematic
way, reducing waste, processing times and product
inconsistencies.
In addition, PFT also purchased a number of new
pieces of equipment to streamline production
processes and to increase production safety.
In FY20 PFT began the preparation of a packing
and distribution centre at our Mornington facility to
improve efficiencies and to consolidate operations.
We hope to have this completed and the packing and
distribution of Woodbridge Smokehouse transitioned
to the new facility by Q2 FY21.
Marketing & Sales
Woodbridge Smokehouse has had an online store for
many years, focusing on small order numbers going
out to most States of Australia. With e-commerce
now being so dominant in the consumer market, PFT
has initiated a re-focus on our e-commerce presence
and made changes to drastically expand the stores
potential. We hope that in FY21 we see some large
sales and distribution volumes from e-commerce, not
only for Woodbridge Smokehouse.
With the introduction of COVID-19 in Australia and
the closing of the borders, PFT made the decision
to close the Woodbridge Taste House indefinitely.
The Taste House was a great direct to consumer
channel for locals and tourists, however it was very
resource heavy. With the closing of the Taste House,
the Smokehouse has been able to refocus employees
solely into production, and transition direct customers
to the new online store which provides a wider range
of products, still with the convenience of buying direct
from the producer.
With the employment of a local route Sales Manager
in Q3, Woodbridge Smokehouse saw a major
increase in active customers in Tasmania, with a
mix of reactivated and new retail and food service
customers. This focus on local route sales supports
PFT’s objective of supporting our local Tasmanian
community, and small independent businesses.
FY21 will see a new life for Woodbridge Smokehouse,
with a brand refresh to better align it as the artisan
producer it is.
FY19
FY20
14
0.00.20.40.60.81.01.2FY20FY19FY18FY17FY16Sales ($ milions)Actual-0.4-0.20.00.20.40.60.81.01.212mth Variance ($ milions)SalesEBITDAVariance$302,999Variance-6%0.00.20.40.60.81.01.2FY20FY19FY18FY17FY16Sales ($ milions)Actual-0.4-0.20.00.20.40.60.81.01.212mth Variance ($ milions)SalesEBITDAVariance$302,999Variance-6%Managing Director’s ReportManaging Director’s ReportPure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report VIC
47%
VIC
47%
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Expanding Exports
“ Pure Foods Tasmania for us represents
some of the best of the premium
quality Tasmanian brands in our export
portfolio. Their dedication to quality
branded products and their belief in
the value of export markets have grown
the Woodbridge brand overseas. PFT’s
expansion of their portfolio is providing
us with new opportunities in expanding
exports, based on the reputation of the
Woodbridge brand.”
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David Meredith
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Revenue
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EBITDA
Revenue
NPAT
EBITDA
Tas Pate Sales by Brand
Tas Pate Sales by Brand
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15
Managing Director’s ReportManaging Director’s ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report
Ingredients
Potato Rosti
• 4 large white potatoes
• 2 egg whites
• 2 tablespoons all purpose white flour
• Salt and pepper
• Olive oil
Smoked Salmon & Jammy Eggs
• 200g Woodbridge Smokehouse
Cold Smoked Atlantic Salmon
• 2 - 4 eggs cold from the fridge
Herbed Creme Fraiche
• 200ml Creme Fraiche
• 1/2 bunch fresh dill
• 1 bunch fresh chives finely chopped
• 1/4 lemon
Managing Director’s Report
Feature Recipe
Recipe created by Dean’s Kitchen.
Potato Rosti with Smoked
Salmon & Jammy Eggs
Serves 4 (makes 8–10 rosti)
Method
Potato Rosti
Wash potatoes under cold water and drain well.
Grate the potatoes and place into a clean tea towel and
squeeze all of the moisture out of them. Try to release as
much moisture from the potatoes as possible and then
place into a large mixing bowl.
Combine the flour, egg whites and a generous amount of
salt and pepper with the potatoes in the mixing bowl and
mix well with your hands.
In a medium sized pan add enough olive oil so you can
shallow fry the potato rosti. Bring your olive oil to heat on
a high heat. Once there is a haze coming from the pan,
turn the heat down to medium.
Take a handful of potato rosti mixture and flatten well
into the palm of your hands. Place 2 - 3 potato rosti into
the pan and cook for 2 minutes on each side or until they
are golden and crispy. Place the cooked potato rosti on a
pre-lined plate with absorbent paper and repeat this with
the remainder of the mixture.
Jammy Eggs
Bring a medium sized pot of water to the boil. Slowly add
your eggs to the pot and cook for 5–6 minutes.
Place your eggs into a bowl with icy cold water to prevent
them from cooking any further. Peel their shell and cut in
half when ready to serve.
Herbed Creme Fraiche
Combine all ingredients into a medium sized bowl
and mix well with a spoon until all ingredients are well
combined. Serve immediately or cover and leave in the
fridge until you are ready to serve it.
To Finish
Assemble all ingredients onto a plate and finish off with a
sprinkling of fresh dill and chives.
16
Pure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report 17
Pure Foods Tasmania Pty Ltd | 2020 Annual Report What’s Ahead for PFT?
PFT is well balanced to deliver strategic growth in its core business and is
expanding in the right categories which will allow the Company to continue to
deliver strong returns to shareholders. Its core objectives include:
½ Investment in brand and marketing to support existing products along
with future new product development.
½ To partner or acquire other Tasmanian brands to ensure PFT is operating in
growth categories to support consumers with products that they will buy,
consume and enjoy.
½ Continue to drive cost efficiencies across all business units.
½ Innovate to always have a point of difference.
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New Pastures – Plant Based Dairy
PFT will launch a new plant based dairy range, New
Pastures in Q2 FY21.
A key feature of this momentum is continuing to
innovate and expand PFT’s product range and to take
the lead from market and consumer trends.
The 6 varieties are all produced in Tasmania.
New Pastures aims to develop Tasmania’s presence
in the global plant-based market, with potential of
product expansion.
PFT will utilise its current distribution model to
support this new range of products, with access
to existing national retail, export and direct to
consumer channels.
This is the first step in entering the new rapidly
growing market which is forecasted to reach $3.9
Billion globally by 2024*.
18
The global plant-based cheese market is expected
to grow at a CAGR of over 15% during the period
2018–2024* and we expect this trend to be similarly
reflected in Australia.
* Plant-based Cheese Market - Global Outlook and Forecast 2019-2024,
Report, December 2019
What’s Ahead for PFT?Pure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report NPD Meal Solutions
A range of meal solution products is currently being
developed to target a premium convenience market.
Focusing on Tasmanian produce, the range will
showcase a fresher meal solution option to that
currently available to the market.
The product is expected to be sold nationally through
independents, direct to consumer online, and through
existing PFT export channels.
The range is expected to launch in Q2 FY21.
According to GlobalData, Australia’s
prepared meals market was worth
$1.14 Billion in 2019.
Concept for illustrative purposes only.
Acquisition of Daly Potato Company Pty Ltd
Notably:
On 9 September 2020, PFT announced the acquisition of
Daly Potato Company (DPC) for $1.8M, made up of cash
and scrip. DPC is a national producer of ready-prepared
potato salads, widely ranged in a number of national
retail stores. In FY20, it recorded sales revenue of $2M.
½ It adds new products to PFT’s product range,
including vegan options;
½ PFT benefits from an array of new products that
The acquisition meets a number of key metrics for PFT
and merges two businesses that are both strategically
and operationally aligned and service the same core
retail customers.
are planned to be launched nationally this financial
year, as well as a portfolio of new products that are
in the development stage;
½ There is also limitless NPD opportunities through
complementary meal solutions using our full suite
of products;
½ DPC doesn’t currently have an export licence and
PFT believes there is strong international demand
for DPC’s products, particularly in Asia and will
seek to attain an export licence for DPC;
½ Significant capital investment is planned over
the next several years with a view to increasing
efficiencies, boosting productivity, and growing
margins.
19
What’s Ahead for PFT?Pure Foods Tasmania Pty Ltd | 2020 Annual Report 20
Pure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report Our People
With such rapid growth within the company, PFT
has begun to prepare itself with the right human
resources to nurture and drive the growth. Some
key new roles were created in FY20, includes
Sales Account Manager, Marketing & Brand
Manager and Production Supervisor.
During FY20, PFT created 7 new roles for locals
within the corporate and production teams.
Providing employment for our local community
is very important to PFT. We want to ensure we
support the economy through small business
and employment.
KPI’s
FY20
LTIFR
MTIFR
TRIFR
0
0
0
Score Card 100%
Safety is Our Priority
Definitions
LTIFR:
Lost Time Injury
Frequency Rate:
Nº of Lost Time Injuries
÷ Total Nº of Hours
Worked
x 1,000,000 hours.
MTIFR:
Medical Treated Injury
Frequency Rate:
Nº of Medically T
reated Injuries
÷ Total Nº of Hours
Worked
x 1,000,000 hours.
TRIFR:
Total Injury
Frequency Rate:
LTIFR + MTIFR
A Majority Female Company
With the recent addition of staff at Pure Foods Tasmania we are proud to say we are now
majority female. With 34 female employees in the factory and corporate office, we are now
52% female as of 30 September 2020. We believe this is a great accomplishment in a male led
industry.
21
Pure Foods Tasmania Pty Ltd | 2020 Annual Report
Corporate Governance
In recognising the need for the highest standards of corporate behaviour and accountability, the Board supports
the principles of good corporate governance. The Company follows the best recommendations as set out in the
ASX Corporate Governance Council. Where the Company has not followed the best practice recommendations, an
explanation is given in the Corporate Governance Statement which is available on the Company’s website at
www.purefoodstas.com/investors/corporate-governance.
Board of
Directors
Malcolm McAully
Non-Executive Chairman
Michael Cooper
Managing Director
Malcolm is an experienced
Company Director having held
senior roles over a diverse
range of industry backgrounds
such as financial services,
energy generation, waste
management, agribusiness,
technology manufacturing, human
resource management and food
manufacturing.
He has experience as Chairman
of three ASX listed companies,
including ISG Company, Cougar
Energy Limited from 2006 to 2013
and is a Non-Executive Director for
several privately-owned companies.
Malcolm is also Chairman of
Chaucer Energy Limited which is
seeking to list on ASX in 2020.
Malcolm has held various
executive management positions
including National Manager
for MLC Life when owned by
the Lend Lease Group. He
holds a Master of Business and
qualifications in accounting,
business management, mediation,
turn around management and
GAICD. Malcolm’s primary focus is
strategy and project development,
financial management, corporate
governance and stakeholder
relations.
Michael is the Managing Director
of PFT. Michael has over 28 years’
experience in senior executive
roles in the food and beverage
industry. He was the CEO and
later Managing Director of Juicy
Isle Pty Ltd ( JI) and recently
sold his family interest to Myer
Family Investments. JI was the
largest supplier of organic juice
in Australia to Woolworths, Coles
and Costco.
He was also a Director (2012 to
2017) of Ausfec Ltd, a $550M
revenue business. Ausfec was the
major route to market distribution
channel for global brands such as
Cadbury, Nestle, Mars, Wrigley,
Smith and SBA Snack Foods, Red
Bull and V energy drinks. Michael is
also a director of Brand Tasmania,
a Tasmanian State Authority
created under the Brand Tasmania
Act 2018. Michael joined the PFT
Board in February 2017 and was
appointed Managing Director on
a part time basis in October 2018
and full time from April 2019.
22
Corporate GovernancePure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report Alexander
“Sandy” Beard
Non-Executive Director
Sandy is the former Chief Executive
Officer of CVC Limited (ASX:CVC)
(between 1991-2019). He has
extensive experience with investee
businesses, both in providing
advice and in direct management
roles, especially bringing
management expertise to early-
stage businesses.
Sandy is currently the Chairman
of Probiotec Ltd ASX:PBP, Director
of Centrepoint Alliance ASX:CAF,
Tas Foods Limited ASX:TFL and
has been a Director of numerous
public and private companies
encompassing 25 years, including
being a Director of the following
Companies in last 3 years: CVC
Limited, ASX: CVC Eildon Capital
Limited (ASX:EDC), US Residential
Fund (ASX:USF), Lantern Hotel
Group (ASX:LTN). He is also
Chairman of the unlisted public
company Shellfish Culture Limited.
Ken Fleming
Non-Executive Director
Justin Hill
Company Secretary
Ken has extensive experience in
capital markets and has held senior
roles at Deutsche Bank, James
Capel Australia and Tricom. He has
also worked in the Australian public
service and at KPMG.
Ken is a Director of Shellfish Culture
(oyster spat and oyster farming
business), Castray Capital and
TasmaNet (ICT company). He holds
an honours degree in economics
and post graduate qualifications in
economics and finance and is also
a Fellow of the Financial Services
Institute of Australasia (FFIN).
Justin is a Principal and Director
at Page Seager Lawyers. He
specialises in governance, mergers
and acquisitions, and corporate
structures and restructures. Justin
also has significant experience in
finance and advising companies on
raising capital by way of equity and
debt. He also provides advice to
companies on the ASX listing rules.
Justin has a first-class honours
degree in Commerce, a Masters
in Law from the University of
Melbourne and a Graduate
Diploma in Applied Finance and
Investment. Before joining Page
Seager, Justin worked as in-
house counsel for the investment
banking division of Deutsche Bank
in Sydney. Prior to working with
Deutsche Bank, he was principal
counsel in the institutional markets
and investment division of National
Australia Bank. He also worked for
a number of years in the mergers
and acquisitions team of Mallesons
Stephen Jaques (now King & Wood
Mallesons).
23
Corporate GovernancePure Foods Tasmania Pty Ltd | 2020 Annual Report 24
Directors’ ReportPure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report Directors’ Report
Pure Foods Tasmania Limited and its controlled entities.
Your directors present their report on the consolidated entity (referred to herein as the Group) consisting of Pure
Foods Tasmania Limited and its controlled entities for the financial year ended 30 June 2020. The information in
the preceding operating and financial review forms part of this directors’ report for the financial year ended 30
June 2020 and is to be read in conjunction with the following information:
General Information
Directors
The following persons were directors of the Group
during or since the end of the financial year up to the
date of this report:
½ Malcom McAully - Non-executive Chairman
½ Michael Cooper - Managing Director
½ Alexander “Sandy” Beard - Non-executive Director
½ Ken Fleming - Non-executive Director.
Dividends Paid or Recommended
No dividends were paid or declared during the
financial year.
Indemnifying Officers or Auditor
During the financial year, the consolidated entity
paid a premium in respect of a contract insuring the
Directors of the Group, the Company Secretary and
all executive officers of the entity and 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 Group has not otherwise, during or since the
financial year, indemnified or agreed to indemnify
an officer or auditor of the Group or of any related
corporate against a liability incurred as an officer
or auditor.
Proceedings on Behalf of the Company
No person has applied for leave of court to bring
proceedings on behalf of the Group or intervene in any
proceedings to which the Company is a party for the
purpose of taking responsibility on behalf of the Group
for all or any part of those proceedings.
The Group was not a party to any such proceedings
during the year.
Non-audit Services
The Board of Directors, in accordance with advice from
the audit committee, is satisfied that the provision of
non-audit services during the year is compatible with
the general standard of independence for auditors
imposed by the Corporations Act 2001. The directors
are satisfied that the services disclosed below did not
compromise the external auditor’s independence for
the following reasons:
The following fees were paid or payable to WLF
Accounting & Advisory for non-audit services provided
during the year ended 30 June 2020:
Advisory Taxation Services
Accounting Assistance
Total
$
43,700
36,639
80,339
Auditor’s Independence Declaration
The lead auditor’s independence declaration for the
year ended 30 June 2020 has been received and can be
found on page 30 of this report.
There have been no options granted over unissued
shares or interests of any controlled entity within the
Group during or since the end of the reporting period.
At the date of this report, the unissued ordinary shares
of the Group under option is as follows:
For details of options issued to directors and executives
as remuneration, refer to the remuneration report.
Grant Date
Expiry Date
18/11/2018
30/04/2023
28/04/2020
08/11/2021
Exercise
Price ($)
0.40
0.30
Nº under
Option
2,800,000
10,000,000
Option holders do not have any rights to participate in
any issues of shares or other interests of the Group or
any other entity.
During the year ended 30 June 2020, no ordinary
shares of the Group were issued on the exercise of
options granted. No further shares have been issued
since year-end. No amounts are unpaid on any of the
shares.
No person entitled to exercise the option had or has
any right by virtue of the option to participate in any
share issue of any other body corporate.
25
Directors’ ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report Information Relating to Directors and Company Secretary
Malcolm McAully
Non-Executive Chairman
Alexander Beard
Non-Executive Director
Malcolm McAully is an experienced Company Director
having held roles over a diverse range of industry
backgrounds such as financial services, energy
generation, waste management, agribusiness,
technology manufacturing, human resource
management and food manufacturing. Malcolm was
the Chairman of ASX Listed Pinnacle VRB Ltd (ASX:
PCE) from 2004 to 2005, and remained Chairman
when the Company (following an acquisition changed
its name to Cougar Energy Limited (ASX:CXY) until
2013 when he resigned. Malcolm is also the Chairman
of Chaucer Energy Limited which is seeking to list on
the ASX in 2020.
Malcolm has held various executive management
positions including National manager for MLC Life
when owned by the Lend Lease Group. He holds a
Master of Business and qualifications in accounting,
business management, mediation, turn around
management and GAICD. Malcolm’s primary focus
is on strategic development, financial performance,
corporate governance and investor relations.
Michael Cooper
Managing Director
Michael Cooper is the Managing Director of PFT.
Michael has over 28 years experience in senior
executive roles in the food and beverage industry.
He was the CEO and later Managing Director of Juicy
Isle Pty Ltd (JI) and recently sold his family interest to
Myer Family Investments. JI was the largest supplier
of organic juice in Australia to Woolworths, Coles and
Costco. He was also a Director (2012 – 2017) of Ausfec
Ltd, a $550 million revenue business. Ausfec was the
major route to market distribution channel for global
brands such as Cadbury, Nestle, Mars, Wrigley, Smith
and SBA Snack Foods, Red Bull and V Energy drinks.
Michael is also a Director of Brand Tasmania, a
Tasmanian State Authority created under the Brand
Tasmania Act 2018. Michael joined the PFT Board in
February 2017 and was appointed Managing Director
on a part time basis in October 2018 and full time
from April 2019.
Alexander “Sandy” Beard is the former Chief Executive
Officer of CVC Limited (ASX:CVC) (1991 – 2019). He
has extensive experience with investee businesses
both in providing advice and in direct management
roles, especially bringing management expertise
to early stage-businesses. Sandy has been a
Director of numerous public and private companies
encompassing 25 years, including being a Director
of Eildon Capital Limited (ASX:EDC), Probiotec Ltd
(ASX:PBP), US Residential Fund (ASX:USF), Tas-Foods
Ltd (ASX: TFL) and Lantern Hotel Group (ASX:LTN).
Sandy is currently a Director of ASX listed entities
Probiotec Ltd (ASX:PBP), and Centrepoint Alliance
Limited (ASX:CAF) and Chairman of unlisted Public
Company, Shellfish Culture Limited.
Ken Fleming
Non-Executive Director
Ken Fleming has extensive experience in capital
markets and has held senior roles at Deutsche
Bank, James Capel Australia and Tricom. He has also
worked in the Australian public service and at KPMG.
He is a Director of Shellfish Culture (oyster spat and
oyster farming business), Castray Capital Pty Ltd
and TasmaNet (ICT Company). He holds an Honours
Degree in Economics and post graduate qualifications
in economics and finance and is also a Fellow of the
Financial Services Institute of Australia (FFIN).
Justin Hill
Company Secretary
Justin is a Principal at Page Seager Lawyers – the
largest law firm in Tasmania. Justin advises clients
in a number of key industry sectors, including
agribusiness, financial services, energy and the
not for profit sector. He specialises in mergers and
acquisitions, governance and corporate structures and
restructures. Justin also has significant experience in
finance (including derivative transactions) and advising
on raising capital for companies by way of equity
and debt. He also assists with preparing contracts
of employment and provides employment advice on
transfer of businesses.
Justin has a first class honours degree in Commerce,
a Masters in Law from the University of Melbourne
and a Graduate Diploma in Applied Finance and
Investment. Before joining Page Seager as a Partner/
Principal, Justin worked as in-house counsel for the
investment banking division of Deutsche Bank in
Sydney. Prior to working with Deutsche Bank, Justin
was principal counsel in the institutional markets and
investment division of National Australia Bank. Justin
also practised for a number of years in the mergers
and acquisitions team of Mallesons Stephen Jaques
(now King & Wood Mallesons).
26
Directors’ ReportDirectors’ ReportPure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report Meetings of Directors
During the financial year, 12 meetings of directors
(including committees of directors) were held.
Attendance by each director during the year was
as follows:
Directors’ Meetings (Nº)
Meetings
eligible to
attend
Meetings
Attended
Malcom McAully
Michael Cooper
Alexander Beard
Ken Fleming
Robert Johnston
Rohan Boman
12
12
2
12
5
5
12
12
2
11
5
4
Remuneration of Directors and
Senior Management
Information about the remuneration of Directors
and senior management is set out in the
Remuneration Report.
Review of Operations and
Principal Activities
The Group’s principal activities at the commence of the
financial year are outlined in the Chairman’s report and
listed in the Events Subsequent to Balance Date.
Operating Results
The profit/(loss) after tax of the Group for the financial
year attributable to the members of Pure Foods
Tasmania Limited was ($196,480) (2019: $322,158).
State of Affairs and Likely
Developments
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. Reference should
be made to the subsequent events note for changes in
the state of affairs after balance date.
Events Subsequent to
Balance Date
On 9 September Pure Foods Tasmania announced
it has agreed to buy the business and assets of Daly
Potato Company Pty Ltd for $1.8m with a mixture
of cash and shares, subject to working capital
requirements. Pure Foods Tasmania has signed a
binding Heads of Agreement, subject to a number of
conditions including final due diligence, entering into a
potato supply agreement and customary conditions.
Other than the matter detailed above, there were no
matters or circumstances arising since the end of the
reporting period that have significantly affected, or
may significantly affect the operations of the Group
and the results of those operations or the state of the
affairs of the Group in the financial period
subsequent to 30 June 2020.
Wineglass Bay, Freycinet National Park
27
Directors’ ReportDirectors’ ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report Remuneration Report
Remuneration Policy
The remuneration policy of the Group has been
designed to align key management personnel (KMP)
objectives with shareholder and business objectives
by providing a fixed remuneration component and
offering specific long-term incentives based on key
performance areas affecting the Consolidated Group’s
financial results. The Board of the Group believes the
remuneration policy to be appropriate and effective
in its ability to attract and retain high-quality KMP to
run and manage the Consolidated Group, as well as
create goal congruence between directors, executives
and shareholders.
The Board’s policy for determining the nature and
amount of remuneration for KMP of the Consolidated
Group is based on the following:
½ The remuneration policy is to be developed by the
remuneration committee and approved by the
Board after professional advice is sought from
independent external consultants:
½ All KMP receive a base salary (which is based on
factors such as length of service and experience),
superannuation, fringe benefits, options and
performance incentives.
½ Performance incentives are generally only paid
once predetermined key performance indicators
(KPIs) have been met.
½ Incentives paid in the form of options or rights
are intended to align the interests of the directors
and company with those of the shareholders. In
this regard, KMP are prohibited from limiting risk
attached to those instruments by use of derivatives
or other means.
½ The remuneration committee reviews KMP
packages annually by reference to the
Consolidated Group’s performance, executive
performance and comparable information from
industry sectors.
The performance of KMP is measured against
criteria agreed biannually with each executive and
is based predominantly on the forecast growth of
the Consolidated Group’s profits and shareholders’
value. All bonuses and incentives must be linked
to predetermined performance criteria. The Board
may, however, exercise its discretion in relation
to approving incentives, bonuses and options,
and can recommend changes to the committee’s
recommendations. Any change must be justified by
reference to measurable performance criteria. The
policy is designed to attract the highest calibre of
executives and reward them for performance results
leading to long-term growth in shareholder wealth.
KMP receive, at a minimum, a superannuation
guarantee contribution required by the government,
which is currently 9.5% of the individual’s average
weekly ordinary time earnings (AWOTE). Some
individuals, however, have chosen to sacrifice
part of their salary to increase payments towards
superannuation.
All remuneration paid to KMP is valued at the cost to
the Company and expensed.
Performance-based Remuneration
KPIs are set annually, with a certain level of
consultation with KMP. The measures are specifically
tailored to the area each individual is involved in
and has a level of control over. The KPIs target areas
the Board believes hold greater potential for Group
expansion and profit, covering financial and non-
financial as well as short and long-term goals. The level
set for each KPI is based on budgeted figures for the
Group and respective industry standards.
Performance Conditions Linked to
Remuneration
The Group seeks to emphasise reward incentives
for results and continued commitment to the Group
through the provision of various cash bonus reward
schemes, specifically the incorporation of incentive
payments based on the achievement of revenue
targets, return on equity ratios and continued
employment with the Group.
Employment Details of Members
of Key Management Personnel
The term Key Management Personnel refers to those
persons having the authority and responsibility for
planning, directing and controlling activities of the
Group, directly or indirectly, and includes any director
of the Group (whether executive of otherwise).
The KMP of the Group for the year ended 30 June
2020 were:
½ Malcom McAully - Non-Executive Chairman
Appointed 01/09/2017
½ Michael Cooper - Managing Director
Appointed 01/09/2017
½ Alexander Beard - Non-Executive Director
Appointed 01/05/2020
½ Ken Fleming - Non-Executive Director
29/07/2015
½ Robert Johnston - Non-Executive Director
Appointed 01/09/2015
½ Rohan Boman - Non-Executive Director
Appointed 01/09/2015.
Mr Johnston and Mr Boman did not seek re-election at
the Annual General meeting In November 2019.
28
Remuneration ReportPure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report Remuneration Expense Details for the Year Ended 30 June 2020
KMP
Year Paid
Salary, fees
and leave
Pension and
superannuation
Shares/units
$
$
$
Total
$
Executive
Michael Cooper
Non-executive
Malcom McAully
Alexander Beard
Ken Fleming
Robert Johnston
Rohan Boman
Total KMP
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
2020
2019
233,513
57,592
14,585
7,500
6,000
-
12,250
7,500
3,125
7,500
3,125
7,500
272,598
87,592
20,881
5,097
1,385
713
570
-
1,164
713
297
713
297
713
24,594
7,949
3,750
7,500
258,144
70,189
9,374
12,500
-
-
5,624
7,500
3,125
7,500
3,125
7,500
24,998
42,500
25,344
20,713
6,570
-
19,038
15,713
6,547
15,713
6,547
15,713
322,190
138,041
Securities Received that Are Not Performance-related
No members of KMP are entitled to receive securities that are not performance-based as part of their
remuneration package.
Cash Bonuses, Performance-related Bonuses and Share-based Payments
The terms and conditions relating to options and bonuses granted as remuneration during the year to KMP
are as follows:
Grant Date
Number
Granted
28/04/2020
1,300,000
28/04/2020
500,000
28/04/2020
500,000
Michael
Cooper
Malcom
McAully
Alexander
Beard
Ken Fleming
28/04/2020
500,000
Robert
Johnston
Rohan Boman
Total
-
-
-
-
2,800,000
Percentage
vested/paid
during the
year
Percentage
forfeited
during the
year
Percentage
remaining
as unvested
Expiry date
for vesting
or payment
Percentage
of Grant
forfeited
-
-
-
-
-
-
-
-
-
-
-
-
100
100
100
100
-
-
30/04/2023
30/04/2023
30/04/2023
30/04/2023
-
-
-
-
-
-
-
-
29
Remuneration ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report
KMP Shareholdings
The number of ordinary shares held by each KMP of the Group during the financial year is as follows:
KMP
Malcom McAully
Michael Cooper
Alexander Beard
Ken Fleming
Robert Johnston
Rohan Boman
Balance at
beginning of
year
Granted as
remuneration
during the year
Issued on
exercise of
options during
the year
Other changes
during the year
Balance at end
of year
184,115
179,269
-
195,769
192,269
116,769
5,859
2,344
-
3,515
1,953
1,953
-
-
-
-
-
-
1,331264
1,521,238
1,976,764
2,158,377
1,000,000
1,000,000
1,396,505
1,595,789
1,136,033
1,330,255
631,958
750,680
Other Equity-related KMP
Transactions
There have been no other transactions involving
equity instruments apart from those described in
the tables above relating to options, rights and
shareholdings.
Other Transactions with KMP
and/or their Related Parties
There were no other transactions conducted between
the Group and KMP or their related parties, apart
from those disclosed above relating to equity,
compensation and loans, that were conducted other
than in accordance with normal employee, customer
or supplier relationships on terms no more favourable
than those reasonably expected under arm’s length
dealings with unrelated persons.
Directors’ Authorisation
This Directors’ Report, incorporating the remuneration
report, is signed in accordance with a resolution of the
Board of Directors:
Malcolm McAully
Non-Executive Chairman
Dated: 24/09/2020
Auditor’s Independence
Declaration
In accordance with section 307C of the Corporations Act 2001, I am pleased to provide the following declaration
of independence to the directors of Pure Foods Tasmania Limited. As the lead audit partner for the audit of the
financial report of Pure Foods Tasmania Limited for the year ended 30 June 2020, I declare that, to the best of my
knowledge and belief, there have been no contraventions of:
i. the auditor independence requirements of the
Corporations Act 2001 in relation to the audit; and
ii. any applicable code of professional conduct in
relation to the audit.
Nick Carter
Partner
Wise Lord & Ferguson
Dated:
30
Remuneration ReportPure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual ReportFinancial Statements Statement of Profit or Loss
and Other Comprehensive
Income
for the year ended 30 June 2020
Revenue from operations
Other income
Cost of goods sold
Employment expenses
Occupancy, electricity & telephone costs
Bad debts
Depreciation and amortisation
Impairment loss
ASX listing fees and expenses
Finance costs
Insurance
Legal and professional fees
Marketing expenses
Motor vehicle expenses
Repairs and maintenance
Research, development & quality
Other expenses
Net profit/(loss) before income tax
Income tax benefit/(expense)
Net Profit/(Loss) after tax for the year
Other comprehensive income
Other comprehensive loss net of tax
Total comprehensive income
Net profit for the period attributable to:
Non-controlling interest
Owners of Pure Foods Tasmania Limited
Total comprehensive income for the year is attributable to:
Non-controlling interest
Owners of Pure Foods Tasmania Limited
Basic loss per share (cents per share)
Diluted loss per share (cents per share)
Note
6
7
2020
$
2019
$
4,279,764
3,789,405
255,041
30,203
2,992,479
2,478,721
673,732
127,677
30,129
193,087
-
193,861
46,644
81,292
129,365
33,476
20,090
65,905
37,300
106,248
(196,480)
(6,924)
(203,404)
600,736
156,598
3,023
94,991
334,000
-
42,988
81,955
69,858
40,045
30,401
31,705
30,785
145,960
(322,158)
164,283
(157,875)
-
-
(203,404)
(157,875)
-
(203,404)
(203,404)
-
(203,404)
(203,404)
(0.002)
(0.002)
-
(157,875)
(157,875)
-
(157,875)
(157,875)
(0.089)
(0.089)
8
4
4
The above statement should be read in conjunction with the accompanying notes.
31
Remuneration ReportPure Foods Tasmania Pty Ltd | 2020 Annual ReportFinancial Statements Statement of Financial Position
As at 30 June 2020
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventory
Other assets
Total Current Assets
Non-Current Assets
Property, plant and equipment
Right of use assets
Intangible assets
Deferred tax assets
Total Non-Current Assets
Total Assets
Current Liabilities
Trade and other payables
Lease Liabilities
Provisions
Borrowings
Total Current Liabilities
Non-Current Liabilities
Lease Liabilities
Provisions
Borrowings
Deferred tax liabilities
Total Non-Current Liabilities
Total Liabilities
Net Assets
Equity
Contributed Equity
Accumulated Profits/(Losses)
Total Equity
Note
2020
$
2019
$
19
9
10
11
12
13
8
14
12
15
16
12
15
16
8
4,134,867
1,388,806
482,929
312,965
147,244
424,208
181,135
63,324
5,078,005
2,057,473
1,310,986
556,436
430,941
738,837
380,300
-
782,402
173,920
2,861,064
1,512,758
7,939,069
3,570,231
541,251
89,107
85,732
164,165
880,255
356,224
20,749
419,156
222,942
1,019,071
1,899,236
397,792
-
97,780
47,496
543,068
-
5,448
147,903
9,637
162,988
706,056
6,039,743
2,864,175
6,872,110
3,535,898
(832,367)
(671,723)
6,039,743
2,864,175
The above statement should be read in conjunction with the accompanying notes.
32
Pure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual ReportFinancial StatementsFinancial Statements Statement of
Changes in Equity
For the year ended 30 June 2020
At 1 July 2018
Loss for the year
Other comprehensive income
Contributed
Equity
Accumulated
Profits/(Losses)
$
$
Total
$
3,541,398
(513,848)
3,027,550
-
-
(157,875)
(157,875)
-
-
Total comprehensive loss for the year
3,541,398
(671,723)
2,869,675
Share issue costs
As at 30 June 2019
At 1 July 2019
Loss for the year
Other comprehensive income
(5,500)
-
(5,500)
3,535,898
(671,723)
2,864,175
3,535,898
(671,723)
2,864,175
-
-
(203,404)
(203,404)
-
-
Total comprehensive income for the year
3,535,898
(875,127)
2,660,771
Issue of shares
Share issue costs
Reverse listing
As at 30 June 2020
4,043,498
(707,286)
-
-
4,043,498
(707,286)
-
42,760
42,760
6,872,110
(832,367)
6,039,743
The above statement should be read in conjunction with the accompanying notes.
33
Pure Foods Tasmania Pty Ltd | 2020 Annual ReportFinancial Statements Statement of Cash Flows
For the year ended 30 June 2020
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Interest received
Finance costs
Income taxes received/paid
Note
2020
$
2019
$
4,457,757
3,732,404
(4,482,374)
(3,625,728)
18,327
(21,182)
-
589
(37,845)
-
Net cash used in operating activities
19
(27,469)
69,420
Cash flows from investing activities
Payments for property, plant and equipment
Net cash used in investing activities
Cash flows from financing activities
Proceeds from issue of shares
Proceeds from borrowings
Principle elements for lease payments
Net cash provided by financing activities
(866,613)
(866,613)
(35,403)
(35,403)
3,298,661
1,606,400
(387,922)
(346,734)
(46,440)
-
3,640,143
1,259,666
Net (decrease)/increase in cash held
Cash and cash equivalents at the beginning of the year
2,746,061
1,293,683
1,388,806
95,123
Cash and cash equivalents at the end of the year
19
4,134,867
1,388,806
The above statement should be read in conjunction with the accompanying notes.
34
Pure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report Financial Statements Notes to the
Financial Statements
For the year ended 30 June 2020
Note 1. General Information
The consolidated financial statements and notes represent those of Pure Foods Tasmania Limited and its
Controlled Entities. Pure Foods Tasmania is a company incorporated in Australia, and whose shares are publicly
traded on the Australian Securities Exchange (ASX).
Note 2. Significant Changes in the Current Reporting Period
On 30 April 2020, Pure Foods Tasmania Pty Ltd listed on the ASX via a reverse acquisition of Bunji Corporation
Limited.
Note 3. Segment Information
The operating segments are based upon the units identified in the operating reports reviewed by the Board and
executive management, and are used to make strategic decisions, in conjunction with the quantitative thresholds
established by AASB 8 Operating Segments. As such, there are three identifiable and reportable segments:
½ Tasmanian Pate segment
½ Woodbridge Smokehouse segment
½ The Corporate and other segment, which comprises corporate costs that are not directly attributable to the
operational business units.
Management measures the performance of the segments identified at the ‘net profit before tax’ level.
Consolidated 2020
Revenue
Total segment sales
Other income
Segment profit/(loss)
Profit/(loss) before income tax
Income tax (expense)/benefit
Profit/(loss) after income tax
Assets
Segment assets
Total Assets
Liabilities
Segment liabilities
Total liabilities
Tasmanian Pate
Woodbridge
Smokehouse
Corporate and
other
$
$
$
Total
$
3,190,689
1,089,075
4,279,764
153,462
682,450
34,874
66,705
255,041
(128,875)
(750,055)
(196,480)
(196,480)
(6,924)
(203,404)
3,327,821
3,327,821
709,102
709,102
3,902,146
7,939,069
3,902,146
7,939,069
1,119,161
2,331,584
(1,551,509)
1,899,236
1,119,161
2,331,584
(1,551,509)
1,899,236
35
Pure Foods Tasmania Pty Ltd | 2020 Annual Report Note 3: Segment Information continued…
Consolidated 2019
Revenue
Total segment sales
Other income
Tasmanian Pate
Woodbridge
Smokehouse
Corporate and
other
$
$
2,630,606
1,158,799
-
28,737
2,630,606
1,187,536
$
-
1,466
1,466
Total
$
3,789,405
30,203
3,819,608
Segment profit/(loss)
404,866
(441,779)
(285,245)
(322,158)
Profit/(loss) before income tax
Income tax (expense)/benefit
Profit/(loss) after income tax
Assets
Segment assets
Total Assets
Liabilities
Segment liabilities
Total liabilities
(322,158)
164,283
(157,875)
2,167,699
2,167,699
761,668
761,668
640,864
640,864
3,570,231
3,570,231
641,484
641,484
2,255,275
(2,190,703)
2,255,275
(2,190,703)
706,056
706,056
Note 4. Earnings Per Share
Note 6. Revenue
2020
(0.002)
(0.002)
2019
(0.089)
(0.089)
Revenue from continuing
operations
Sales
2020
2019
$
4,279,764
$
3,789,405
44,406,577
2,911,391
Other Income
$
Basic earnings per share
Diluted earnings per share
Basic
Weighted average
number of ordinary
shares outstanding
during the period used
in the calculation of basic
earnings per share.
Diluted
Weighted average
number of ordinary
shares and convertible
redeemable preference
shares outstanding and
performance rights
during the period used
in the calculation of basic
earnings per share.
44,406,577
2,911,391
Note 5. Dividends to Shareholders
No dividends have been paid or declared during the
year ended 30 June 2020 (30 June 2019: nil).
36
Interest received
Sundry income
Subsidies and grants
18,327
6,178
230,536
589
4,600
25,014
4,534,805
3,819,608
Recognition and Measurement
The sale of goods is measured at the fair value of the
consideration received net of any trade discounts and
volume rebates allowed. The sale of goods represents a
single performance obligation and accordingly, revenue
is recognised in respect of these sales of goods at the
point in time when control over the corresponding
goods are transferred to the customer (i.e. at a point in
time for sale of goods when the goods are delivered to
the customer or transferred to the freight forwarder).
Delivery occurs when the products have been
shipped to the customer, the risks of obsolescence
and loss have been transferred to the customer, and
either the customer has accepted the products, the
acceptance provisions have lapsed, or the Group has
objective evidence that all the criteria for acceptance
have been satisfied.
All revenue is stated net of the amount of goods and
services tax (GST) where applicable.
Notes to the Financial Statements Notes to the Financial Statements Pure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report
Interest Revenue
Interest revenue is recognised on a proportional basis using the effective interest rate method.
Note 7. Expenses
Profit before income tax expense includes the following expenses:
Cost of goods sold
Salaries and wages
Share based payments
Total
2020
$
2019
$
2,992,479
2,478,721
520,601
37,551
451,785
42,498
3,550,631
2,973,004
Note 8. Income Tax Expense
Income tax recognised in profit or loss:
2020
2019
Tax expense/(benefit) comprises:
Current tax (benefit)/expense
Deferred tax movements
Deferred income tax (benefit)/expenses included in income tax expense comprises:
(Increase)/decrease in deferred tax assets
Increase/(decrease) in deferred tax liabilities
Reconciliation of income tax expenses to prima facie tax on accounting profit:
Profit/(loss) before income tax expense
Tax at 27.5% tax rate
Tax effect of amounts which are not deductable
Initial recognition of deferred tax
Listing costs recognised in equity
Reset cost bases due to consolidation
$
-
$
-
6,924
6,924
(164,283)
(164,283)
2020
$
2019
$
(206,381)
(173,920)
213,305
9,637
6,924
(164,283)
2020
$
(196,480)
(54,032)
(28,423)
2019
$
11,842
3,257
60
-
(167,600)
(23,072)
112,451
-
-
(6,924)
(164,283)
37
Notes to the Financial Statements Notes to the Financial Statements Pure Foods Tasmania Pty Ltd | 2020 Annual Report Note 8: Income Tax Expense continued…
Deferred tax
Gross deferred tax assets:
Provisions
Trade and other payables
Accruals
Right of use leases
Share issue expenses
Tax losses
Gross deferred tax liabilities
Prepayments
Fixed assets
Trading Stock
Goodwill & Trademarks
Opening
balance
$
Charged to
income
Charged to
equity
$
$
Closing
balance
$
28,389
3,730
9,054
-
-
132,747
173,920
9,637
-
-
-
895
(3,730)
(1,746)
3,957
23,731
183,273
206,380
2,604
105,140
18,541
87,020
-
-
-
-
-
-
-
-
-
-
-
29,284
0
7,308
3,957
23,731
316,020
380,300
12,241
105,140
18,541
87,020
222,942
Net deferred tax asset (liability)
9,637
213,305
Tax losses
Unused tax losses for which
no deferred tax asset has been
recognised:
2020
2019
-
-
-
-
The income tax expense (income) for the year
comprises current income tax expense (income) and
deferred tax expense (income).
Current income tax expense charged to profit or loss
is the tax payable on taxable income for the current
period. Current tax liabilities (assets) are measured at
the amounts expected to be paid to (recovered from)
the relevant taxation authority using tax rates (and tax
laws) that have been enacted or substantively enacted
by the end of the reporting period.
Deferred tax expense reflects movements in deferred
tax asset and deferred tax liability balances during the
year as well as unused tax losses.
Current and deferred income tax expense (income) is
charged or credited outside profit or loss when the tax
relates to items that are recognised outside profit or
loss or arising from a business combination.
A deferred tax liability shall be recognised for all
taxable temporary differences, except to the extent
that the deferred tax liability arises from: (a) the initial
recognition of goodwill; or (b) the initial recognition
of an asset or liability in a transaction which: (i) is
not a business combination; and (ii) at the time of
the transaction, affects neither accounting profit nor
taxable profit (tax loss).
Deferred tax assets and liabilities are calculated at
the tax rates that are expected to apply to the period
when the asset is realised or the liability is settled
and their measurement also reflects the manner in
which management expects to recover or settle the
carrying amount of the related asset or liability. With
respect to non-depreciable items of property, plant
and equipment measured at fair value and items
of investment property measured at fair value, the
related deferred tax liability or deferred tax asset is
measured on the basis that the carrying amount of
the asset will be recovered entirely through sale. When
an investment property that is depreciable is held by
the entity in a business model whose objective is to
consume substantially all of the economic benefits
embodied in the property through use over time
(rather than through sale), the related deferred tax
liability or deferred tax asset is measured on the basis
that the carrying amount of such property will be
recovered entirely through use.
Deferred tax assets relating to temporary differences
and unused tax losses are recognised only to the
extent that it is probable that future taxable profit will
be available against which the benefits of the deferred
tax asset can be utilised, unless the deferred tax asset
relating to temporary differences arises from the initial
recognition of an asset or liability in a transaction that:
½ is not a business combination; and
½ at the time of the transaction, affects neither
accounting profit nor taxable profit (tax loss).
Where temporary differences exist in relation to
investments in subsidiaries, branches, associates
and joint ventures, deferred tax assets and liabilities
are not recognised where the timing of the reversal
of the temporary difference can be controlled and
it is not probable that the reversal will occur in the
foreseeable future.
38
Notes to the Financial Statements Notes to the Financial Statements Pure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report Current tax assets and liabilities are offset where
a legally enforceable right of set-off exists and it
is intended that net settlement or simultaneous
realisation and settlement of the respective asset and
liability will occur. Deferred tax assets and liabilities are
offset where: (i) a legally enforceable right of set-off
exists; and (ii) the deferred tax assets and liabilities
relate to income taxes levied by the same taxation
authority on either the same taxable entity or different
taxable entities where it is intended that net settlement
or simultaneous realisation and settlement of the
respective asset and liability will occur in future periods
in which significant amounts of deferred tax assets or
liabilities are expected to be recovered or settled.
Tax Consolidation
The company and its wholly-owned Australian resident
entities have formed a tax-consolidated Group and are
therefore taxed as a single entity from that date. The
head entity within the tax-consolidated Group is PFT
Limited. Tax expense/income, deferred tax liabilities
and deferred tax assets arising from temporary
differences of the members of the tax-consolidated
Group are recognised in the separate financial
statements of the members of the tax-consolidated
Group using the “separate taxpayer within group”
approach by reference to the carrying amounts in the
separate financial statements of each entity and the
tax values applying under tax consolidation.
Current tax liabilities and assets and deferred tax
assets arising from unused tax losses and relevant
tax credits of the members of the tax-consolidated
Group are recognised by the Company (as head entity
in the tax-consolidated Group). Due to the existence
of a tax funding arrangement between the entities in
the tax-consolidated Group, amounts are recognised
as payable to or receivable by the Company and each
member of the Group in relation to the tax contribution
amounts paid or payable between the Parent Entity
and the other members of the tax-consolidated Group
in accordance with the arrangement.
Note 9. Trade and Other Receivables
Trade receivables
Less loss allowance
Other receivables
2020
$
2019
$
482,929
422,998
-
-
-
1,210
482,929
424,208
Loss Allowance
2020
2019
Movements in loss allowance are as follows:
Carrying value at beginning of the year
Increase/(decrease) in loss allowance
Receivables written off as uncollectable
Unused amount reversed
Trade receivables past due but not impaired
Under one month
One to three months
Over three months
$
-
29,269
(29,269)
-
-
2020
$
323,490
151,290
8,149
$
-
3,023
(3,023)
-
-
2019
$
353,939
34,372
35,897
482,929
424,208
39
Notes to the Financial Statements Notes to the Financial Statements Pure Foods Tasmania Pty Ltd | 2020 Annual Report Note 9: Trade and Other Receivables continued…
Recognition and Measurement
The Group applies the simplified approach to providing for expected credit losses prescribed by AASB 9, which
permits the use of the lifetime expected loss provision for all trade receivables. To measure the expected credit
losses, trade receivables have been grouped based on shared credit risk characteristics and the days past due. The
loss allowance provision as at 30 June 2020 is determined as follows; the expected credit losses also incorporate
forward-looking information.
The “amounts written off” are all due to customers declaring bankruptcy, or term receivables that have now
become unrecoverable.
$
30 June 2020
Expected loss rate
Current
30 days
60 days
90+ days
Total
0%
0%
0%
0%
Trade receivables Gross carrying amount
323,490
68,971
82,319
8,149
482,929
Loss allowance
30 June 2019
Expected loss rate
-
-
-
-
-
0%
0%
0%
0%
Trade receivables Gross carrying amount
353,939
13,186
21,186
35,897
424,208
Loss allowance
-
-
-
-
-
Fair Value of Trade and Other Receivables
Due to the short-term nature of the current receivables,
their carrying amount is approximate to fair value.
Credit Risk
The Group has no significant concentration of credit
risk with respect to any single counterparty or group of
counterparties other than those receivables specifically
provided for and mentioned within the loss allowance.
The class of assets described as “trade and other
receivables” is considered to be the main source of credit
risk related to the Group. On a geographical basis, the
Group has significant credit risk exposures in Australia.
The Group always measures the loss allowance for
trade receivables at an amount equal to lifetime
expected credit loss. The expected credit losses on
trade receivables are estimated using a provision
matrix by reference to past default experience of
the debtor and an analysis of the debtor’s current
financial position, adjusted for factors that are
specific to the debtor, general economic conditions
of the industry in which the debtor operates and
an assessment of both the current and the forecast
direction of conditions at the reporting date.
There has been no change in the estimation techniques
used or significant assumptions made during the
current reporting period.
The Group writes off a trade receivable when there
is information indicating that the debtor is in severe
financial difficulty and there is no realistic prospect
of recovery; for example, when the debtor has
been placed under liquidation or has entered into
bankruptcy proceedings, or when the trade receivables
are over two years past due, whichever occurs earlier.
None of the trade receivables that have been written
off are subject to enforcement activities.
Note 10. Inventory
2020
$
2019
$
Stock on hand
312,965
181,135
312,965
181,135
Inventories are measured at the lower of cost and net
realisable value. The cost of manufactured products
includes direct materials, direct labour and an
appropriate proportion of variable and fixed overheads.
Note 11. Property, Plant
and Equipment
2020
$
2019
$
Buildings at cost
876,794
326,583
Less accumulated
depreciation
Plant and equipment
at cost
Less accumulated
depreciation
(37,145)
(18,548)
839,649
308,035
940,933
624,541
(469,596)
(376,140)
471,337
248,401
Total property, plant
and equipment
1,310,986
556,436
40
Notes to the Financial Statements Notes to the Financial Statements Pure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report Note 11: Property, Plant and Equipment continued…
Reconciliations
Reconciliations of the carrying amounts of each class of plant and equipment at the beginning and end of the
financial year are set out below:
Carrying Value
As at 1 July 2018
Additions
Disposals
Depreciation expense
Balance as at 30 June 2019
As at 1 July 2019
Additions
Disposals
Depreciation expense
Balance as at 30 June 2020
Recognition and Measurement
Each class of plant and equipment is carried at cost
or fair value as indicated less, where applicable, any
accumulated depreciation and impairment losses.
Plant and equipment are measured on the cost
basis and therefore carried at cost less accumulated
depreciation and any accumulated impairment. In the
event the carrying amount of plant and equipment is
greater than the estimated recoverable amount, the
carrying amount is written down immediately to the
estimated recoverable amount and impairment losses
are recognised in profit or loss. A formal assessment
of recoverable amount is made when impairment
indicators are present.
The carrying amount of plant and equipment is
reviewed annually by directors to ensure it is not in
excess of the recoverable amount from these assets.
The recoverable amount is assessed on the basis of
the expected net cash flows that will be received from
the asset’s employment and subsequent disposal. The
expected net cash flows have been discounted to their
present values in determining recoverable amounts.
Buildings at
cost
Plant &
equipment at
cost
$
$
Total
$
325,074
328,984
654,058
1,508
(10,397)
(8,150)
308,035
308,035
550,211
-
(18,597)
839,649
6,258
-
(86,841)
248,401
248,401
316,402
-
7,766
(10,397)
(94,991)
556,436
556,436
866,613
-
(93,466)
(112,063)
471,337
1,310,986
Depreciation
The depreciable amount of all fixed assets including
buildings and capitalised leased assets, but excluding
freehold land, is depreciated on a straight-line basis
over the asset’s useful life to the Consolidated Group
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.
The depreciation rates used for each class of
depreciable assets are:
Class of Fixed Asset
Depreciation Rate
Buildings
Plant and equipment
2%
5–33%
The assets’ residual values and useful lives are
reviewed, and adjusted if appropriate, at the end of
each reporting period.
An asset’s carrying amount is written down
immediately to its recoverable amount if the asset’s
carrying amount is greater than its estimated
recoverable amount.
Gains and losses on disposals are determined by
comparing proceeds with the carrying amount. These
gains and losses are recognised in profit or loss in the
period in which they arise. Gains shall not be classified
as revenue. When revalued assets are sold, amounts
included in the revaluation surplus relating to that
asset are transferred to retained earnings.
41
Notes to the Financial Statements Notes to the Financial Statements Pure Foods Tasmania Pty Ltd | 2020 Annual Report Note 12. Right of Use Assets and Lease Liabilities
Right of Use Assets
2020
$
1 July 2019
$
Buildings
430,941
511,965
Total right of use assets
430,941
511,965
Set out below are the carrying amounts of the Group’s
right of use assets and the movements during the
period:
Lease payments included in the measurement of the
lease liability are as follows:
½ fixed lease payments less any lease incentives;
½ variable lease payments that depend on an index
or rate, initially measured using the index or rate
at the commencement date;
½ the amount expected to be payable by the lessee
under residual value guarantees;
½ the exercise price of purchase options, if the lessee
is reasonably certain to exercise the options;
Carrying Value
Buildings
$
Total
$
½ lease payments under extension options if lessee
is reasonably certain to exercise the options; and
½ payments of penalties for terminating the lease, if
the lease term reflects the exercise of an option to
terminate the lease.
The right-of-use assets comprise the initial
measurement of the corresponding lease liability
as mentioned above, any lease payments made at
or before the commencement date as well as any
initial direct costs. The subsequent measurement of
the right-of-use assets is at cost less accumulated
depreciation and impairment losses.
Right-of-use assets are depreciated over the lease term
or useful life of the underlying asset whichever is the
shortest.
Where a lease transfers ownership of the underlying
asset or the cost of the right-of-use asset reflects that
the Group anticipates to exercise a purchase option,
the specific asset is depreciated over the useful life of
the underlying asset.
As at 1 July 2019
511,965
511,695
Additions
-
-
Depreciation expense
(81,024)
(81,024)
Balance as at 30 June 2020 430,941
430,941
Lease Liabilities
Current
Non-current
Total
2020
$
1 July 2019
$
89,107
80,688
356,224
321,998
445,331
402,686
At inception of a contract, the Group assesses if the
contract contains or is a lease. If there is a lease
present, a right-of-use asset and a corresponding lease
liability is recognised by the Group where the Group
is a lessee. However all contracts that are classified as
short-term leases (lease with remaining lease term of
12 months or less) and leases of low value assets are
recognised as an operating expense on a straight-line
basis over the term of the lease.
Initially the lease liability is measured at the present
value of the lease payments still to be paid at
commencement date. The lease payments are
discounted at the interest rate implicit in the lease. If
this rate cannot be readily determined, the Group uses
the incremental borrowing rate.
42
Notes to the Financial Statements Notes to the Financial Statements Pure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report Note 13. Intangible Assets
2020
2019
$
$
Intangibles
738,837
782,402
738,837
782,402
Carrying value
As at 1 July 2019
Additions
Disposal
Balance as at 30 June 2020
Total
$
782,402
-
(43,565)
738,837
Goodwill relates to the acquisition of the assets of
Tasmanian Pate and the Woodbridge Smokehouse.
Recognition and measurement
Goodwill
Goodwill is not amortised but is tested annually for
impairment or more frequently if events or changes
in circumstances indicate that it might be impaired.
Goodwill is carried at cost less any accumulated
impairment losses. Goodwill is calculated as the excess
of the sum of:
½ the consideration transferred at fair value;
½ any non-controlling interest (determined under
either the fair value or proportionate interest
method); and
½ the acquisition date fair value of any previously
held equity interest;
over the acquisition date fair value of any identifiable
assets acquired and liabilities assumed.
The acquisition date fair value of the consideration
transferred for a business combination plus the
acquisition date fair value of any previously held equity
interest shall form the cost of the investment in the
separate financial statements.
Changes in the Group’s ownership interests in
subsidiaries that do not result in the Group losing
control over the subsidiaries are accounted for as
equity transactions. The carrying amounts of the
Group’s interests and the non-controlling interests
are adjusted to reflect the changes in their relative
interests in the subsidiaries. Any difference between
the amount by which the noncontrolling interests are
adjusted and the fair value of the consideration paid or
received is recognised directly in equity and attributed
to owners of the Company.
When the Group loses control of a subsidiary, a gain
or loss is recognised in profit or loss and is calculated
as the difference between (i) the aggregate of the fair
value of the consideration received and the fair value
of any retained interest and (ii) the previous carrying
amount of the assets (including goodwill), and liabilities
of the subsidiary and any non-controlling interests. All
amounts previously recognised in other comprehensive
income in relation to that subsidiary are accounted
for as if the Group had directly disposed of the related
assets or liabilities of the subsidiary (ie reclassified to
profit or loss or transferred to another category of
equity as specified/permitted by applicable Accounting
Standards). The fair value of any investment retained
in the former subsidiary at the date when control is
lost is regarded as the fair value on initial recognition
for subsequent accounting under AASB 139: Financial
Instruments: Recognition and Measurement, when
applicable, the cost on initial recognition of an
investment in an associate or a joint venture.
Goodwill is tested for impairment annually and is
allocated to the Group’s cash-generating units or
groups of cash-generating units, representing the
lowest level at which goodwill is monitored and not
larger than an operating segment. Gains and losses on
the disposal of an entity include the carrying amount
of goodwill related to the entity disposed of.
Impairment losses for goodwill are not subsequently
reversed.
Recoverable Amount of Goodwill
Impairment testing has been undertaken at 30
June 2020 for all groups of cash generating units
(CGU) for goodwill or where there is an indication
of impairment. The Group has two CGU’s for which
impairment testing has been completed for goodwill
which are as follows (note in 2019 the Woodbridge
Smokehouse was fully impaired hence no testing
required in 2020 for this CGU).
Tasmanian Pate CGU
The recoverable amount of the Tasmanian Pate
CGU has been determined based on a value-in-use
calculation which uses cash flow projections based
on financial budgets and forecasts approved by
management. Key assumptions used in the value-is-
use calculations for the Tasmanian Pate CGU is
Growth Rate
Discount Rate
Tasmanian Pate
3%
9.00%
Management has based the value-in-use calculations
on budgets for each reporting segment. These
budgets use historical weighted average growth rates
to project revenue. Costs are calculated taking into
account historical gross margins as well as estimated
weighted average inflation rates over the period,
which are consistent with inflation rates applicable to
the locations in which the segments operate. Discount
rates are pre-tax and are adjusted to incorporate risks
associated with a particular segment.
43
Notes to the Financial Statements Notes to the Financial Statements Pure Foods Tasmania Pty Ltd | 2020 Annual Report Note 14. Trade and other
Liabilities
2020
$
2019
$
Trade and other payables
541,251
397,792
541,251
397,792
Recognition and Measurement
Trade and other payables represent liabilities for
goods and services received by the Group which
remain unpaid at the end of the reporting period.
The balance is recognised as a current liability with
amounts paid in accordance with supplier trading
terms. Due to the short-term nature of trade and other
payables, the carrying value is reflective of fair value.
Note 15. Provisions
and employee departures and are discounted at rates
determined by reference to market yields at the end
of the reporting period on government bonds that
have maturity dates that approximate the terms of
the obligations. Any remeasurements for changes
in assumptions of obligations for other long-term
employee benefits are recognised in profit or loss in
the periods in which the changes occur.
The Group’s obligations for long-term employee
benefits are presented as non-current provisions in
its statement of financial position, except where the
Group does not have an unconditional right to defer
settlement for at least 12 months after the end of the
reporting period, in which case the obligations are
presented as current provisions.
Note 16. Borrowings
Current
Employee benefits
Non-current
Employee benefits
2020
$
2019
$
Current
Borrowings
85,732
85,732
97,780
97,780
Non-current
Borrowings
20,749
20,749
5,448
5,448
2020
$
2019
$
164,165
164,165
47,496
47,496
419,156
147,903
419,156
147,903
Note 17. Backdoor Listing
The Company entered into a Share Sale Agreement
and Ancillary SSA’s with the shareholders of Pure
Foods Tasmania Pty Ltd to acquire 100% of the issued
capital in Pure Foods Tasmania Pty Ltd. The Share
Sale Agreement and Ancillary SSAs were completed
contemporaneously. Under the Share Sale Agreement
and Ancillary SSA’s, the Company acquired all of
the issued shares in Pure Foods Tasmania Pty Ltd
in consideration for the issue of 23,500,000 new
Company shares and 6,000,000 options, each with an
exercise price of $0.30 and expiring on 8 November
2021 to the Pure Foods Tasmania vendors.
As part of the acquisition and to implement a more
appropriate capital structure for the Company moving
forward, Shareholders at the Annual General meeting
approved the consolidation of the Company’s issued
capital on a 10 to 1 basis, and the cancellation of
46,043,213 Advisor Shares which were issued to
Otsana Nominees as part of the recapitalisation
proposal. The Otsana Nominees separately approved
the cancellation of these Advisor Shares at a meeting
on 30 January 2020.
Following an extraordinary general meeting conducted
on 30 April 2020 and relevant capital transactions
completed on 30 April 2020, the Company issued
23,500,000 million ordinary shares and 6,000,000
million options (on a post-consolidation basis) to the
vendors of Pure Foods Tasmania in consideration for
Recognition and Measurement
Provision is made for the Group’s obligation for short-
term employee benefits. Short-term employee benefits
are benefits (other than termination benefits) that are
expected to be settled wholly before 12 months after
the end of the annual reporting period in which the
employees render the related service, including wages,
salaries and sick leave. Short-term employee benefits
are measured at the (undiscounted) amounts expected
to be paid when the obligation is settled.
The Group’s obligations for short-term employee
benefits such as wages, salaries and sick leave are
recognised as part of current trade and other payables
in the statement of financial position. The Group’s
obligations for employees’ annual leave and long
service leave entitlements are recognised as provisions
in the statement of financial position.
Provision is made for employees’ long service leave
and annual leave entitlements not expected to be
settled wholly within 12 months after the end of the
annual reporting period in which the employees
render the related service. Other long-term employee
benefits are measured at the present value of the
expected future payments to be made to employees.
Expected future payments incorporate anticipated
future wage and salary levels, durations of service
44
Notes to the Financial Statements Notes to the Financial Statements Pure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report Note 17: Back Door Listing continued…
the acquisition of 100% of the issued share capital in
Pure Foods Tasmania. In addition, the Company issued
another 17,500,000 million ordinary shares to raise
$3.5 million capital.
Apart from the deemed shares, as part of the backdoor
listing, Pure Foods Tasmania Pty Ltd took over the
monetary assets/(liabilities) transferred from Bunji
Limited as at the transaction date as follows:
With nominal assets, Bunji Corporation Limited (the
Company) acted as a non-operating public shell in
the Capital Transaction. Under Australian Accounting
Standards, the acquisition is accounted for as a
continuation of Pure Foods Tasmania Pty Ltd which
has become a listed company by exchanging equity
interest with Bunji Corporation Limited. Based on
the Capital Transaction, Pure Foods Tasmania Pty Ltd
would have had to issue 107,472 shares to give Bunji
Corporation vendors the same percentage equity
interest in the new group. The deemed shares are
recognised as a share-based payment expense.
Details
Cash
Prepayments
Loans and payables
Net monetary assets
$
3,657,577
29,558
(969,376)
2,717,759
Note 18. Issued Capital
Fully paid ordinary shares (post-consolidation)
44,406,577
6,872,110
2,911,391
3,535,898
2020
2019
Nº of shares
$
Nº of shares
$
Movements in Ordinary Share Capital
Date
Details
Ordinary Shares
Price ($)
1 July 2019
Balance at beginning of period
Issue of shares
Issue costs
2,911,391
41,495,186
-
3,535,898
4,043,498
(707,286)
44,406,577
6,872,110
Recognition and Measurement
Ordinary shares are classified as equity, with ordinary
share capital being recognised at fair value of
the consideration received by the Company. Any
transaction costs arising on the issue of ordinary
shares are recognised directly in equity as a reduction
of the shares proceeds received. Ordinary share capital
bears to special terms of conditions affecting income
or capital entitlements of the shareholders.
Terms and Conditions of Issued Capital
Ordinary shares entitle the holder to participate in
dividends and the proceeds on winding up of the
Company in proportion to the number of shares held.
Share options and performance rights
Share options and performance rights do not entitle
the holder to participate in dividends and the proceeds
on winding up the Company. The holder is not entitled
to vote at General Meetings.
There were 12,800,000 share options issued as at 30
June 2020.
Number of Options
Movement in options:
Balance at beginning of year
2020
$
-
Options granted to raise capital 4,120,000
Options issued
-
Balance at end of year
4,120,000
2019
$
-
-
-
-
45
Notes to the Financial Statements Notes to the Financial Statements Pure Foods Tasmania Pty Ltd | 2020 Annual Report Note 19. Cash flow reconciliation
Cash and cash
equivalents
2020
$
2019
$
4,134,867
1,388,806
4,134,867
1,388,806
Recognition and Measurement
Cash and cash equivalents include cash on hand and
at banks and short-term deposits with an original
maturity of three months or less held at call with
financial institutions.
Profit/(loss) after tax
Adjustments for non-cash items
Depreciation
Share based payment
Interest on leased assets
Impairment of goodwill
Changes in assets/liabilities
(Increase)/Decrease in trade & other receivables
(Increase)/Decrease in inventories
(Increase)/Decrease in deferred taxes
Increase/(Decrease) in trade payables & other liabilities
Net Cash provided by (used in) Operating Activities
Reconciliation of Cash and Cash Equivalents to
the Statement of Cash Flows:
For the purposes of the statement of cash flows,
cash and cash equivalents includes cash on hand
and in banks and short-term deposits at call, net
of outstanding bank overdrafts. Cash and cash
equivalents as 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:
2020
$
2019
$
(203,404)
(157,875)
193,087
37,551
23,220
94,991
42, 498
-
-
324,000
(99,729)
(131,830)
(86,615)
(29,482)
6,924
(164,283)
146,712
(27,469)
36,186
69,420
Note 20. Financial Risk Management
The Group’s principal financial instruments comprise
receivables, payables, cash and short-term deposits.
The Group manages its exposure to key financial
risks in accordance with the Group’s financial risk
management policy. The objective of the policy is to
support the delivery of the Group’s financial targets
whilst protecting future financial security.
The main risks arising from the Group’s financial
instruments are price risk, credit risk and liquidity risk.
The Group uses different methods to measure and
manage different types of risk to which it is exposed.
These include monitoring levels of exposure to interest
rate and foreign exchange risk and assessments
of market forecasts for commodity prices. Ageing
analyses and monitoring of specific credit allowances
are undertaken to manage credit risk, liquidity risk is
monitored through the development of future rolling
cash flow forecasts.
The Board reviews and agrees policies for managing
each of these risks as summarised in the following.
Primary responsibility for identification and control
of financial risks rests with the Managing Director
under the authority of the Board. The Board reviews
and agrees policies for managing each of the risks
identified below, including, interest rate risk, credit
allowances, and future cash flow forecast projections.
The carrying amounts of the Group’s financial assets and
liabilities at balance date were equal to their fair value.
Recognition and Measurement
Classification
The Group classifies its financial instruments in the
following categories: financial assets at fair value
through profit or loss, loans and receivables, held-to-
maturity investments, and available-for-sale financial
assets. The classification depends on the purpose for
which the investments were acquired. Management
determines the classification of its financial
instruments at the time of initial recognition.
46
Notes to the Financial Statements Notes to the Financial Statements Pure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report Note 20: Financial Risk Management continued…
Financial Assets at Fair Value Through
Profit or Loss
Upon initial recognition a financial asset or financial
liability is designated as at fair value through profit or
loss when:
½ An entire contract containing one or more
embedded derivatives is designated as a financial
asset or financial liability at fair value through
profit and loss.
½ Doing so results in more relevant information,
because either:
i. It eliminates or significantly reduces a
measurement or recognition inconsistency that
would otherwise arise from measuring assets
or liabilities or recognising gains or losses on
them on different bases.
ii. A group of financial assets, financial liabilities
or both is managed and its performance is
evaluated on a fair value basis, in accordance
with a documented risk management or
investment strategy, and information about the
group is provided internally on that basis to key
management personnel.
Investments in equity instruments that do not have
a quoted market price in an active market, and
whose fair value cannot be reliably measured are not
designated as at fair value through profit or loss.
Present investment strategy is to keep assets in a
highly liquid state and almost all of the investment
assets are held in cash.
A gain or loss arising from a change in the fair value
of a financial asset or financial liability classified as at
fair value through profit or loss is recognised in the
consolidated statement of profit or loss and other
comprehensive income.
Non-listed investments, for which fair value cannot be
reliably measured, are carried at cost and tested for
impairment.
Loans and Receivables
Loan and receivables are measured at fair value at
inception and subsequently at amortised cost using
the effective interest rate method.
Financial Liabilities
Financial liabilities include trade payables, other
creditors and loans from third parties including inter-
company balances and loans from or other amounts
due to Director-related entities.
Non-derivative financial liabilities are recognised at
amortised cost, comprising original debt less principle
payments and amortisation.
Risk Exposures and Responses
Interest Rate Risk
The Group’s exposure to market interest rates is
related primarily to the Group’s cash deposits. At
balance sheet date, the Group had the following mix
of financial assets exposed to Australian and variable
interest rate risks that are not designated as cash flow
hedges:
2020
$
2019
$
Financial assets
482,929
424,208
Cash and cash
equivalents
4,134,867
1,388,806
Net exposure
4,617,796
1,813,014
The Group regularly analyses its interest rate
opportunity and exposure. Within this analysis
consideration is given to existing positions and
alternative arrangements for its deposits.
The following sensitivity analysis is based on the
interest rate opportunity/risk relating to cash deposits
at balance date.
At 30 June 2020, if interest rates had moved, as
illustrated in the table below, with all other variables
held constant, post-tax profit and equity would have
been affected as follows:
2020
$
2019
$
Judgements of reasonably possible movements
+ 0.5% (50 basis points)
20,673
6,944
0.5% (50 basis points)
(20,673)
(6,944)
Liquidity Risk
Liquidity Risk is the risk that the Group, although
balance sheet solvent, cannot meet or generate
sufficient cash resources to meet its payment
obligations in full as they fall due, or can only do
so at materially disadvantageous terms. Ultimate
responsibility for liquidity risk management rests with
the Board of Directors, which has built an appropriate
liquidity risk management framework for the
management of the Group’s short, medium and long-
term funding and liquidity management requirements.
The Group manages liquidity risk by maintaining
adequate reserves and by continuously monitoring
forecast and actual cash flows and matching the
maturity profiles of financial assets and liabilities.
All current liabilities fall due within normal trade terms,
which are generally 30 days.
47
Notes to the Financial Statements Notes to the Financial Statements Pure Foods Tasmania Pty Ltd | 2020 Annual Report Note 20: Financial Risk Management continued…
Credit Risk
Credit risk arises from the financial assets of the
Group, which comprise cash and cash equivalents and
trade and other receivables. The Group’s exposure to
credit risk arises from potential default of the counter
party, with maximum exposure equal to the carrying
amount of these instruments. Exposure at balance
date is addressed in each applicable note. The Group
does not hold any credit derivatives to offset its credit
exposure.
The Group trades only with recognised, creditworthy
third parties, and as such collateral is not requested
nor is it the Group’s policy to securitize its trade and
other receivables.
It is the Group’s policy that all customers who
wish to trade on credit terms are subject to credit
verification procedures including an assessment of
their independent credit rating, financial position,
past experience and industry reputation. The risks are
regularly monitored.
The Group applies the AASB 9 simplified approach to
measuring expected credit losses as disclosed in Note 9.
Receivables balances are monitored on an ongoing
basis with the result that the Group’s exposure to bad
debts is not significant.
Fair Value
The method for estimating fair value is outlined in
the relevant notes to the financial statements. All
financial assets held at fair value are valued based
on the principles outlined in AASB 7 in relation to
Level 1 of the hierarchy of fair values, being quoted
prices (unadjusted) in active markets for identical
assets or liabilities that the entity can access at the
measurement date.
Note 21. Capital Management
When managing capital, management’s objective is
to ensure the entity continues as a going concern as
well as to maintain optimal returns to shareholders
and benefits for other stakeholders. Management also
aims to maintain a capital structure that ensures the
lowest cost of capital available to the entity.
Management are constantly adjusting the capital
structure to take advantage of favourable costs of
capital or high returns on assets. As the market is
constantly changing, the Board may change the
amount of dividends to be paid to shareholders, return
capital to shareholders, issue new shares or sell assets
to reduce debt.
Note 22. Parent Entity Information
2020
$
2019
$
Financial Position
Current assets
3,630,677
1,234,147
Non-current assets
1,548,051
1,552,828
Total assets
5,680,484
2,786,975
Current liabilities
61,994
64,158
Non-current liabilities
3,444,125
-
Total liabilities
3,506,119
64,158
Net assets
2,174,365
2,722,817
Contributed equity
2,174,365
2,722,817
Financial Performance
Total revenue
159,620
93,768
Profit/(loss) for the period
(487,294)
(280,586)
Capital Commitments
There were no non-cancellable capital expenditure
contracted for but not in the financial statements.
Contingent Liabilities
Pure Foods Tasmania Limited is not subject to any
liabilities that are considered contingent upon events
known at balance sheet date.
Note 23. Subsidiaries
Equity Holding
Entity
Country of
Incorporation
2020
2019
PFT Holdings Pty Ltd
Australia
100%
100%
PFT No 1 Pty Ltd
Australia
100%
100%
PFT No 2 Pty Ltd
Australia
100%
100%
PFT No 3 Pty Ltd
Australia
100%
100%
Note 24. Contingent Liabilities
and Assets
There are no matters which the Group consider would
result in a contingent liability as at the date of this report.
48
Notes to the Financial Statements Notes to the Financial Statements Pure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report Note 20: Financial Risk Management continued…
Note 25. Commitments
for Expenditure
Capital Commitments – Capital Expenditure Projects.
There were no non-cancellable capital expenditure
contracted for but not in the financial statements.
Other Commitments – Operating Expenditure.
Operating expenditure contracted but not included in
the financial statements:
Payable
2020
2019
-
-
-
Not longer than one
year
longer than one year
but no longer than five
years
Longer than five years
-
-
-
-
-
-
-
-
Note 26. Events Occurring
After Balance Date
On 9 September Pure Foods Tasmania announced
it has agreed to buy the business and assets of Daly
Potato Company Pty Ltd for $1.8m with a mixture
of cash and shares, subject to working capital
requirements. Pure Foods Tasmania has signed a
binding Heads of Agreement, subject to a number of
conditions including final due diligence, entering into a
potato supply agreement and customary conditions.
Other than the matter detailed above, the Board is not
aware of any matter or circumstance not otherwise
dealt within these financial statements that has
significantly or may significantly affect the operation of
the Group, the results of those operations, or the state
of affairs of the Group in subsequent financial years.
Note 27. Related Party
Transactions
Key Management Personnel Compensation
The aggregate compensation of the key management
personnel of the entity is set out below:
2020
$
2019
$
Short term benefits
233,513
57,592
Post-employment benefits
20,881
Share based payment
3,750
5,097
7,500
258,144
70,189
Transactions with Related Parties
The Group acquired the following goods and services
as follows:
Ken Fleming for
consultancy services
2020
$
25,000
25,000
2019
$
-
-
Note 28. Auditor’s Remuneration
Auditors of the parent
entity
2020
2019
$
18,000
$
8,000
Other assurance services
-
-
18,000
8,000
Note 29. Employee Securities
Incentive Plan
The Company has adopted an Employee Securities
Incentive Plan (Plan), to commence upon Admission.
The Plan may be inspected at the registered office
of the Company during normal business hours. The
purpose of the Plan is to:
i. assist in the reward, retention and motivation of
Eligible Participants;
ii. link the reward of Eligible Participants to
Shareholder value creation; and
iii. align the interests of Eligible Participants with
shareholders of the Group (being the Company
and each of its Associated Bodies Corporate), by
providing an opportunity to Eligible Participants
to receive an equity interest in the Company in
the form of Securities.
Eligible Participant’ means a person that:
i. is an ‘eligible participant’ (as that term is defined
in ASIC Class Order 14/1000) in relation to the
Company or an ‘Associated Body Corporate’ (as
that term is defined in ASIC Class Order 14/1000);
and
ii. has been determined by the Board to be eligible
to participate in the Plan from time to time.
Directors are ‘Eligible Participants’. Any issue of
Securities to Directors under the Plan will be subject to
the receipt of prior Shareholder approval.
Plan Administration
The Plan will be administered by the Board. The Board
may exercise any power or discretion conferred on it
by the Plan rules in its sole and absolute discretion.
The Board may delegate its powers and discretion.
49
Notes to the Financial Statements Notes to the Financial Statements Pure Foods Tasmania Pty Ltd | 2020 Annual Report Note 29: Employee Securities Incentive Plan continued…
There are no options for performance rights of the Company, held directly, indirectly or beneficially, by each
Director and key management personnel, outstanding as at 30 June 2020.
Share Options Granted
Share options outstanding at 30 June 2020 are as follows:
Grant date
Expiry date
18/11/2018
28/04/2023
28/04/2020
08/11/2021
Exercise
price ($)
Balance at
start of year
Granted
Exercised
Expired
0.40
0.30
-
-
-
-
-
-
-
-
Balance at
end of year
2,800,000
10,000,000
12,800,000
The options hold no voting or dividend rights and are
not transferable.
In addition to the above, as at 30 June 2020 the
Company entered into a Managing Director Executive
Services Agreement. The following incentives were in
place as at 30 June 2020:
½ Short term incentive plan: an amount equal to
$33,530 if the Company achieved consolidated
earnings before interest, tax, depreciation, and
amortisation (EBITDA) of $607,601 or more for
the financial year ending 30 June 2020, plus if
EBITDA for the financial year ending 30 June 2020
is between:
½ $670,602 and $700,000: an additional payment
of $2,939;
½ $700,001 and $800,000: an additional payment
of $15,879;
½ $800,001 and $900,000: an additional payment
of $35,879; or
½ $900,001 and $1,000,000: an additional payment
of $55,879.
½ Long term incentive plan: participation in the
plan and receipt of 1,300,000 incentive options
(included as part of share options granted in the
table above).
Recognition and measurement
The Group provides benefits to the Directors and the
Chief Executive Officer in the form of share-based
payment, whereby services are rendered in exchange
for rights over shares (performance rights) or options.
The fair value of the performance rights and options
is recognised as an employee benefits expense, with
a corresponding increase in equity. The total amount
to be expensed is determined by reference to the fair
value of the performance rights or options granted.
The total expense is recognised over the period in
which the performance and/or service conditions are
fulfilled (the vesting period), ending on the date on
which the relevant employees become fully entitled to
the award (the vesting date).
Note 30. Summary of Significant
Accounting Policies
A. Basis of Preparation
These financial statements are general purpose
financial statements that have been prepared in
accordance with Australian Accounting Standards,
Australian Accounting Interpretations and the
Corporations Act 2001, as appropriate for profit
oriented entities.
The financial statements cover the Company and its
controlled entities as a group for the financial year
ended 30 June 2020. The Company is a company
limited by shares, incorporated and domiciled in
Australia.
Separate financial statements for the Company as
an individual entity are no longer presented as a
consequence of a change to the Corporations Act
2001, however limited financial information for the
Company as an individual entity is included in Note 22.
The following is a summary of material accounting
policies adopted by the Group in the preparation and
presentation of the financial statements not elsewhere
disclosed. The accounting policies have been
consistently applied, unless otherwise stated.
B. Compliance with IFRS
The financial statements comply with International
Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB).
C. Historical Cost Convention
The financial statements have been prepared under
the historical cost convention. All amounts are
presented in Australian dollars unless otherwise noted.
D. Principles of Consolidation
The consolidated financial statements are those
of the Group, comprising the parent entity and its
controlled entities as defined in Accounting Standard
AASB 10 ‘Consolidated Financial Statements’. Control is
achieved when the Company:
½ is exposed, or has rights, to variable returns from
its involvement with the investee; and
½ has the ability to use its power to affect its returns.
50
Notes to the Financial Statements Notes to the Financial Statements Pure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report The Company reassess whether or not it controls an
investee if facts and circumstances indicate that there
are changes to one or more of the three elements of
control listed above.
Details of the controlled entities are contained
in Note 23.
Financial statements for controlled entities are
prepared for the same reporting period as the parent
entity. Controlled entities are fully consolidated from
the date on which control is transferred to the Group
and cease to be consolidated from the date on which
control is transferred out of the Group. Adjustments
are made to bring into line any dissimilar accounting
policies, which may exist.
All inter-company balances and transactions, including
any unrealised profits or losses have been eliminated
on consolidation.
Non-controlling interests in the equity and results of
the entities that are controlled are shown separately in
the consolidated financial statements.
The preparation of the financial statements of the
Group requires the use of accounting estimates which,
by definition, will seldom equal the actual results.
Management also needs to exercise judgement in
applying the Group’s accounting policies.
Areas within the financial report which contain a
higher degree of judgement or complexity, and items
which are more likely to be materially adjusted due
to estimates and assumptions turning out to be
incorrect. Detailed information about each of these
estimates and judgements are included in the notes
to the financial statements together with the basis of
calculation.
The areas involving significant estimates or
judgements are:
½ Estimated value in use calculations for the
assessment of the recoverable amount of goodwill.
Estimates and judgements are continually evaluated.
They are based on historical experience, information,
and other factors, including expectations of future
events that may have a financial impact on the entity
and that are believed to be reasonable under the
circumstances.
E. Comparatives
Where necessary, comparative information has been
reclassified and repositioned for consistency with
current year disclosures.
F. New and Amending Accounting Standards and
Interpretations Adopted
The Group has applied the following standards and
amendments for the first time for its annual reporting
period commencing 1 January 2019:
½ AASB 16 Leases
The Group was required to change its accounting
policies as a result of adopting AASB 16. The Group
elected to adopt the new rules retrospectively but
recognised the cumulative effect of initially applying
the new standard on 1 January 2019. The weighted
average lessee’s incremental borrowing rate applied to
the lease liabilities on 1 July 2019 was 4.5 per cent.
Measurement of lease liabilities:
Operating lease commitments
30 June 2019
Discounted using the lessee’s
incremental borrowing rate at the date
of initial application
2019
$
455,338
52,652
Lease liability recognised as a1 July 2019
402,686
G. New Standards and Interpretations
Not Yet Adopted
Certain new accounting standards and interpretations
have been published that are not mandatory for 30
June 2020 reporting periods and have not yet been
adopted by the Group. There are no standards that
are not yet effective and that would be expected to
have a material impact on the Group in the current or
future reporting periods and on foreseeable future
transactions.
51
Notes to the Financial Statements Notes to the Financial Statements Pure Foods Tasmania Pty Ltd | 2020 Annual Report 52
Notes to the Financial Statements Pure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report Directors’ Declaration
For the year ended 30 June 2020
In accordance with a resolution of the directors of Pure Foods Tasmania Limited, the directors of
the Company declare that:
The financial statements and notes, as set out on pages 31 to 51, are in accordance with the
Corporations Act 2001 and:
a. Comply with Australian Accounting Standards applicable to the Consolidated Group, which,
as stated in the accounting policies to the financial statements, constitutes compliance with
International Financial Reporting Standards; and
b. Give a true and fair view of the financial position as at 30 June 2020 and of the performance
for the year ended on that date of the Consolidated Group.
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; and
The directors have been given the declaration required by section 295A of the Corporations Act
2001 from the Chief Executive Officer for the financial year ended 30 June 2020.
Signed in accordance with a resolution of the Directors made pursuant to section 295(5) of the
Cor-porations Act 2001. This declaration is made in accordance with a resolution of the Directors.
Michael Cooper
Managing Director
Dated: 24/09/2020
53
Notes to the Financial Statements Pure Foods Tasmania Pty Ltd | 2020 Annual Report 54
Directors’ DeclarationPure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report Independent Audit Report
For the year ended 30 June 2020
Independent Auditor’s Report to the Members of
Pure Foods Tasmania Limited
Opinion
We have audited the financial report of Pure Foods
Tasmania Limited (the Company and its controlled
entities (the Group)), which comprises the consolidated
statement of financial position as at 30 June 2020, the
consolidated statement of comprehensive income, the
consolidated statement of changes in equity and the
consolidated statement of cash flows for the year then
ended, and notes to the financial statements, including
a summary of significant accounting policies, and the
directors’ declaration.
In our opinion, the accompanying financial report of
the company is in accordance with the Corporations
Act 2001, including:
i. giving a true and fair view of the consolidated
financial position of the company as at 30
June 2020 and of its consolidated financial
performance for the year then ended on that
date; and
ii. complying with Australian Accounting Standards
Key Audit Matters
Key audit matters are those matters that, in our
professional judgement, were of the most significance
in our audit of the financial report for the year ended
30 June 2020. These matters were addressed in the
context of our audit of the financial report as a whole,
and forming our opinion thereon, and we do not
provide a separate opinion on these matters.
Valuation of Goodwill
Refer Note 13 in the Financial Report
The Group holds intangible assets totalling $738,837
as at 30 June 2020. Under Australian Accounting
Standards, the Group is required to assess goodwill for
impairment at least annually.
The Group performed an impairment assessment
for the Tasmanian Pate cash generating unit (CGU),
calculating the value in use of the net assets in the CGU.
The valuation model used by the Group to perform the
impairment assessment are based on budget forecasts.
and the Corporations Regulations 2001.
The Group did not identify any impairment for the CGU.
Basis for Opinion
We conducted our audit in accordance with Australian
Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s
Responsibilities for the Audit of the Financial Report
section of our report. We are independent of the
company 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 (the Code) that are
relevant to our audit of the financial report in Australia.
We have also fulfilled our other ethical responsibilities
in accordance with the Code.
We confirm that the independence declaration
required by the Corporations Act 2001, which has been
given to the directors of the company, would be in the
same terms if given to the directors as at the time of
this auditor’s report.
We believe that the audit evidence we have obtained
is sufficient and appropriate to provide a basis for our
opinion.
How our Audit Addressed the Key Audit Matter
We assessed whether the Group’s determination of
CGU was consistent with our understanding of the
nature of the Group’s operations and internal Group
reporting. We assessed management’s conclusions
around allocating Tasmanian Pate as a CGU.
We tested the mathematical accuracy and integrity of
the calculation in the model.
To evaluate the model we performed the following
procedures, amongst others:
½ Compared model inputs to the FY21 budget;
½ Assessed historical performance of the CGU; and
½ Assessed forecast growth assumptions.
We assessed the discount rate used in the impairment
assessment by comparing to comparable companies.
We performed sensitivity analysis which highlighted
that the Tasmanian Pate CGU is sensitivity to changes
in key assumptions. We recalculated the change in
growth rates and discount rates which would result in
an impairment and also evaluated the adequacy of the
disclosures in note 13 in light of the requirements of
Australian Accounting Standards.
55
Directors’ DeclarationPure Foods Tasmania Pty Ltd | 2020 Annual Report Other Information
The directors are responsible for the other information.
The other information comprises the information
included in the company’s annual report for the year
ended 30 June 2020, but does not include the financial
report and our auditor’s report thereon. Our opinion
on the financial report does not cover the other
information and accordingly we do not express any form
of assurance conclusion thereon. In connection with our
audit of the financial report, our responsibility is to read
the other information and, in doing so, consider whether
the other information is materially inconsistent with the
financial report or our knowledge obtained in the audit
or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude
that there is a material misstatement of this other
information, we are required to report that fact. We have
nothing to report in this regard.
Responsibilities of the Directors for
the Financial Report
The directors of the company are responsible for the
preparation of the financial report that gives a true
and fair view in accordance with Australian Accounting
Standards and the Corporations Act 2001 and for such
internal control as the directors determine is necessary
to enable the preparation of the financial report that
gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
In preparing the financial report, the directors are
responsible for assessing the ability of the company to
continue as a going concern, disclosing, as applicable,
matters related to going concern and using the going
concern basis of accounting unless the directors either
intend to liquidate the company or to cease operations,
or has no realistic alternative but to do so.
Auditor’s Responsibilities for the
Audit of the Financial Report
Our objectives are to obtain reasonable assurance
about whether the financial report as a whole is free
from material misstatement, whether due to fraud or
error, and to issue an auditor’s report that includes
our opinion. Reasonable assurance is a high level
of assurance, but is not a guarantee that an audit
conducted in accordance with the Australian Auditing
Standards will always detect a material misstatement
when it exists. Misstatements can arise from fraud or
error and are considered material if, individually or in
the aggregate, they could reasonably be expected to
influence the economic decisions of users taken on the
basis of this financial report.
As part of an audit in accordance with the Australian
Auditing Standards, we exercise professional judgement
and maintain professional scepticism throughout the
audit. We also:
½ Identify and assess the risks of material
misstatement of the financial report, whether
due to fraud or error, design and perform audit
procedures responsive to those risks, and obtain
audit evidence that is sufficient and appropriate
to provide a basis for our opinion. The risk of not
detecting a material misstatement resulting from
fraud is higher than for one resulting from error,
as fraud may involve collusion, forgery, intentional
omissions, misrepresentations, or the override of
internal control.
½ Obtain an understanding of internal control relevant
to the audit in order to design audit procedures
that are appropriate in the circumstances, but not
for the purpose of expressing an opinion on the
effectiveness of the Entity’s internal control.
½ Evaluate the appropriateness of accounting policies
used and the reasonableness of accounting
estimates and related disclosures made by
management.
½ Conclude on the appropriateness of management’s
use of the going concern basis of accounting and,
based on the audit evidence obtained, whether
a material uncertainty exists related to events or
conditions that may cast significant doubt on the
Entity’s ability to continue as a going concern. If we
conclude that a material uncertainty exists, we are
required to draw attention in our auditor’s report
to the related disclosures in the financial report or,
if such disclosures are inadequate, to modify our
opinion. Our conclusions are based on the audit
evidence obtained up to the date of our auditor’s
report. However, future events or conditions may
56
Independent Audit ReportIndependent Audit ReportPure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report cause the Entity to cease to continue as a going
concern.
½ Evaluate the overall presentation, structure and
content of the financial report, including the
disclosures, and whether the financial report
represents the underlying transactions and events
in a manner that achieves fair presentation.
½ Obtain sufficient appropriate audit evidence
regarding the financial information of the entities
or business activities within the company to
express an opinion on the financial report. We
are responsible for the direction, supervision and
performance of the company audit. We remain
solely responsible for our audit opinion.
We communicate with those charged with governance
regarding, among other matters, the planned scope
and timing of the audit and significant audit findings,
including any significant deficiencies in internal control
that we identify during our audit.
We also provide the directors with a statement that
we have complied with relevant ethical requirements
regarding independence, and to communicate with
them all relationships and other matters that may
reasonably be thought to bear on our independence,
and where applicable, related safeguards.
Report on the
Remuneration Report
We have audited the remuneration report included
in pages 6 to 10 of the directors’ report for the year
ended 30 June 2020.
In our opinion, the remuneration report of Pure Foods
Tasmania Limited for the year ended 30 June 2020
complies with s 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the
preparation and presentation of the remuneration
report in accordance with s 300A of the Corporations
Act 2001. Our responsibility is to express an opinion
on the remuneration report, based on our audit
conducted in accordance with Australian Auditing
Standards.
Nick Carter
Partner
Wise Lord & Ferguson
Dated:
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Independent Audit ReportIndependent Audit ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report Pool of Bethesda, Walls of Jerusalem National Park
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Independent Audit ReportPure Foods Tasmania Pty Ltd | 2020 Annual ReportPure Foods Tasmania Pty Ltd | 2020 Annual Report Shareholder Information
1. Distribution of Equity Securities
Analysis of numbers of equity security holders by size of holding:
Holding Range
Above 0 up to and including 1,000
Above 1,000 up to and including 5,000
Above 5,000 up to and including 10,000
Above 10,000 up to and including 100,000
Above 100,000
Totals
Holders
4,974
112
112
205
87
Total Units
33,698
382,668
993,978
7,301,521
40,308,543
% Issued Share
Capital
0.07
0.78
2.03
14.89
82.23
5,490
49,020,408
100.00%
2. Equity Security Holders
The names of the twenty largest holders of quoted equity securities are listed below (some are grouped
where the holdings are deemed to be controlled by the same entity):
n
o
i
t
i
s
o
P
Shareholder Name
1
Ilwella Pty Ltd & Maximus Flannery Pty Ltd
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