2022 ANNUAL REPORT
Pure Foods Tasmania Limited
& Controlled Entities
For the financial year
ended 30 June 2022
Pure Foods Tasmania Limited | 2022 Annual Report
Contents
Corporate Directory
2
About Us
4
Chairman’s Report
5
Managing Director’s Report
7
Business & Financial Summary
9
PFT Operations Review
11
Tasmanian Pate Review
15
Woodbridge Smokehouse Review
17
Daly Potato Co. Review
19
Lauds Plant-Based Foods Review
21
Café Spotlight: Room for a Pony
22
The Cashew Creamery Review
25
PFT Sales Team
26
Tasmanian Sales
27
Employee Spotlight
28
Our People
29
Corporate Governance
30
Directors’ Report
33
Remuneration Report
36
Auditor’s Independence Declaration
38
Financial Statements
39
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
39
Consolidated Statement of Financial Position
40
Consolidated Statement of Changes in Equity
41
Statement of Cash Flows
42
Notes to the Financial Statements
43
Directors’ Declaration
63
Independent Audit Report
65
Shareholder Information
69
During FY22 the Company
bedded down our two new
acquisitions being Lauds
Plant-Based Foods and
The Cashew Creamery
Michael Cooper, Managing Director
Pure Foods Tasmania Limited | 2022 Annual Report
1
Corporate Directory
For the year ended 30 June 2022
Registered Office
2/179 Murray Street
Hobart, Tasmania 7000
Australia
Postal Address
100-104 Morninton Road
Mornington, Tasmania 7018
Australia
Corporate Office
100-104 Mornington Road
Mornington, Tasmania 7018
Tel: +61 (3) 6231 4233
Bankers
National Australia Bank
Commonwealth Bank
of Australia
Share Registry
Automic Registry Services
Level 2, 267 St Georges Terrace
Perth, Western Australia 6000
Australia
Stock Exchange Listing
Pure Foods Tasmania Limited
shares are listed on the
Australian Securities Exchange,
code PFT.
Auditor
Wise Lord & Ferguson
160 Collins Street
Hobart, Tasmania 7000
Australia
Solicitors
Page Seager
2/179 Murray Street
Hobart, Tasmania 7000
Australia
Groom Kennedy Lawyers
and Advisers
Level 1, 47 Sandy Bay Road
Hobart, Tasmania 7000
Australia
Corporate Directory
Pure Foods Tasmania Limited | 2022 Annual Report
2
Board of Directors
Malcolm McAully
Non-Executive Chairman
Michael Cooper
Managing Director
and CEO
Alexander Beard
Non-Executive Director
(resigned 1 May 2022)
Ken Fleming
Non-Executive Director
Justin Hill
Company Secretary
Company Website
www.purefoodstas.com
Corporate Directory
Pure Foods Tasmania Limited | 2022 Annual Report
3
Brands Through Acquisition
Organically
Grown
Brands
About Us
Pure Foods Tasmania Pty Ltd (PFT)
was formed in 2015 with the aim to
enhance and promote Tasmania’s
food and beverage businesses.
PFT’s strategy is to develop new
products within its existing brands
and in the plant-based food
market, to acquire complementary
brands and businesses and to
increase its market penetration and
distribution for its suite of brands
and products globally.
PFT’s stable of brands and
businesses include Woodbridge
Smokehouse, Tasmanian Pate,
Daly Potato Co., Pure Tasmanian
Seafood, Lauds Plant-Based Foods,
The Cashew Creamery and New
Pastures.
Strategy
PFT’s growth strategy encompasses several key themes:
1. organically grow its existing pate, prepared vegetables and plant-
based ice cream and cheese brands;
2. improve margins and capacity via automation of its production as
products and brands reach scale;
3. secure key assets; and
4. grow via the acquisition of complementary/scalable products/
brands/businesses to exploit product expansion opportunities.
PFT brands are targeted at the “conscious consumer”, offering
convenience and indulgent home entertaining products with a
uniquely Tasmanian focus.
Organic growth will be achieved through increased penetration
of existing markets, entry into new markets and new product
development.
Significantly, the move to the new purpose-built facilities in Mornington
(Hobart) provided a platform for the Company to increase pate
production, improve operating efficiencies, develop a range of new
products, and pursue and explore opportunities in overseas markets.
Pure Foods Tasmania Limited | 2022 Annual Report
4
Chairman’s Report
I am pleased to present the Pure Foods Tasmania
Financial Report for the financial year ended 30 June
2022. This year has been a challenging year with staff
impacts from Covid-19 and significant inflationary
pressures in the second half FY22. The PFT team
has been resilient and responded quickly, focusing
its efforts towards margin improvement, whilst still
achieving significant organic growth. The Board has
continued to make sure Pure Foods Tasmania is well
funded and has the flexibility to react to organic
growth and acquisition opportunities as they arise.
PFT has experienced significant organic growth over the
year with further integration of the acquisitions of Daly
Potato Co., Lauds Plant-Based Foods, and The Cashew
Creamery, including co-ordinated purchasing with our
suppliers, creating operational efficiencies, expanding
channels which are all building economies of scale for
PFT. In this time, we have significantly enhanced the
presence and availability of fresh Tasmanian products to
our growing network of stockists.
We have remained committed to our strategy to
grow organically and through acquisition. Having
successfully completed 3 acquisitions in FY21, we
have not undertaken an acquisition in FY22 with a
focus on integration, organic growth, automation
and capacity expansion. We continue to identify
and investigate exciting acquisition opportunities
with a focus on our internal financial targets and
opportunities that will provide scale, diversification
and improve corporate efficiencies.
Further in July 2022, we completed a successful
placement to sophisticated investors which raised
$2.55 million, and completed a rights issue to all
shareholders of 1 fully paid ordinary share in PFT for
every 3 fully paid ordinary shares held in PFT that
raised a further $1.83 million.
The completion of the rights issue via the shortfall
process will potentially raise up to $1.57 million. The
key purpose of the Offer is to fund continued growth
in sales, expansion of production capacity, investment
in automation to improve operating efficiencies,
secure key assets and exploit product expansion
opportunities.
Over the course of this financial year, under the
leadership of Michael Cooper and a talented
management team, we have expanded our operations
and continue to invest in the businesses we acquired,
targeting improving automation, margins and capacity.
More importantly, our people have demonstrated a
resilience and flexibility to continue operations and
maintain consistent delivery of our products and
service to our customers. I personally thank the PFT
staff for this dedication and belief in the Company.
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 would like to thank our hard-working
dedicated team members and our shareholders for
their continued support for our Company.
I look forward to seeing as many of you as possible
at our Annual General Meeting either in person or
digitally in November.
Malcolm McAully
Non-Executive Chairman
31 August 2022
Pure Foods Tasmania Limited | 2022 Annual Report
5
I personally thank
the PFT staff for
their dedication
and belief in the
Company.
Malcolm McAully, Chairman
About Us
Pure Foods Tasmania Limited | 2022 Annual Report
6
Managing Director’s Report
FY22 has seen a strong revenue growth from operations across PFT’s brand with a 35%
increase over FY21. Whilst throwing up some significant challenges that impacted our
margins, we continued to execute on our strategy with a focus on growth.
We did experience cost complications in the second
half of FY22 driven by inflationary pressures and, along
with the delay in equipment coming from Europe
to support our automation projects, this has had a
material impact on labour costs and impacted our
margins further. However, I am happy to say both
automation projects are now in Australia and being
installed in Q1 FY23.
We also worked with our customers, and suppliers
to ameliorate the future impacts of cost increases,
combined with the integration of the acquired entities.
This unfortunately did impact the financial results,
especially during the second half of FY22, however we
have reacted accordingly with strong support of our
customers and off the back of our robust relationships
with our suppliers. Our focus has also remained on
products and channels that provide the best margins
for the business. We are seeing an improvement from
these programs in the first 2 months of FY23.
As a business we continue to execute against the
strategic objectives we set on listing. We have been able
to organically grow our core business via new product
ranges and expanded distribution. Tasmanian Pate
continues to deliver strong growth mainly driven by
the Homestead Pate brand. Woodbridge Smokehouse
sales grew at 84% in FY22 and was driven by increased
distribution in both local and export markets. Daly
Potato Co. also enjoyed strong demand with an
increase in revenue of 37% during FY22. Daly Potato
Co. continued to work hard on bringing our Potato &
Gravy product to market with the new format now being
available in Q1 FY23. Our plant-based food businesses
really took off with sales from The Cashew Creamery
growing at over 1000% and Lauds Plant-Based Foods
over 90% v FY21. We have integrated the three recent
acquisitions and are now running all entities on single
management information systems. This has improved
the ability of PFT to negotiate with suppliers and
improve supply chain efficiencies.
continued on next page…
% Growth FY21 v FY22 - Gross Sales By Brand ($
million)
FY21
FY22
% Growth
Tasmanian Pate
3.972
4.086
3%
Woodbridge Smokehouse
1.604
2.959
84%
Daly Potato Co.
1.859
2.546
37%
Lauds Plant-Based Foods
0.154
0.296
92%
The Cashew Creamery
0.041
0.467
1044%
Holdings
0.110
0.035
-68%
Total Gross Sales
7.741
10.389
34%
Overall, we continued to expand in FY22, and PFT
enjoyed strong organic growth across all key sales
metrics for the Company. PFT delivered FY22 gross
sales revenue from operations of $10.4 million up
34% versus FY21 (or $9.9 million in net revenue from
operations up 35% versus FY21) with all divisions
delivering positive revenue growth. Despite the
positive organic growth, PFT profitability was impacted
due to a combination of:
½ continued operating investment in marketing
and research and product development including
bringing new products to market, with a cost of
$520,000;
½ significant one-off operating investment in
product, quality and accreditations to integrate the
new business and expand available sales channels
at a cost of $350,000;
½ significant increase in raw material costs,
particularly in H2 FY22. As a result, PFT has
reduced ranging in product variants and
channel to focus on margins, most specifically
with Woodbridge Smokehouse. This will impact
Woodbridge Smokehouse sales in FY23;
½ increase in packaging costs, which PFT has
passed onto customers but also worked hard with
suppliers and systems to mitigate these impacts;
and
½ increased labour pressures to carry additional staff
during Covid-19 outbreaks to maintain minimum
labour levels; this had a one-off impact to the value
of $450,000 over FY22.
Managing Director’s Report
Pure Foods Tasmania Limited | 2022 Annual Report
7
Continued Investment
Our commitment to investment to create efficiencies
and better margins continued through FY22.
The extension of our automation and capacity
improvement program in FY22 required a capital
investment of $1.68 million for the confirmation and
delivery of many continuing projects.
PFT also continued its Research & Development
expenditure to grow opportunities within its current
brand set with a 35% increase in claimable expenditure
for the Research & Development Tax Incentive Claim.
This will provide ongoing benefits in FY23 and has
resulted in the launch of our Potato & Gravy product.
Three major installations are currently being
undertaken at our Mornington facility, including the
turnkey ice cream line, and automated sealing and
new sleeving equipment for Tasmanian Pate. All these
projects will improve efficiencies, increase margins,
increase capacity and enhance quality.
Our People
I want to recognise the significant contribution of all our
employees over the year as we navigated the challenges
of Covid-19 in addition to integrating our acquisitions.
Without the dedicated efforts of our team, our business
would not be in the position it is today, and I would
like to thank all our staff, and the Board, for their
contributions over the year. I especially want to thank
the resilience of our staff with many taking on extra
responsibilities, new roles or just filling in where needed.
Importantly we are building a strong culture at
the Company. Whilst we have grown rapidly, and
via acquisition, all our staff are committed to the
Company. Our strong talent and our people’s passion
for the business will continue to drive product
innovation and success in the future.
Well Positioned for Growth
in FY23 and Beyond
Our company is well placed to continue to provide
consumer focused products into our rapidly expanding
distribution network and I am excited about the
outlook for our business in FY23 and beyond.
The Company remains well positioned to continue to
grow the business via product innovation and acquisition,
and to build a strong culture. In FY23 we will have the
launch of 3 years of development and persistence with
Daly Potato Co.’s Potato & Gravy being available in store
in a major retailer. We continue to investigate acquisitions
that will build on PFT’s strategy.
Michael Cooper
Managing Director
31 August 2022
282T
POTATOES
6.5T
CASHEWS
19.6T
SALT
12.3T
BUTTER
42.8T
CABBAGES
122T
CHICKEN LIVERS
6.2T
BLACK PEPPER
10.1T
CARROTS
79.5T
SALMON
Pure Foods Tasmania Limited | 2022 Annual Report
8
Managing Director’s Report
Export
10%
Food
Service
2.5%
Consumer &
Other 0.1%
Major Retail
47%
Distributor
25%
Retail &
Independents
14%
Revenue by
Customer Segment
Tonnes
0
50
100
150
200
250
300
350
LDS
TCC
WBS
TPC
DPC
Sales Volume by
Production Group
NSW
45.5%
TAS
22.2%
VIC
26.0%
WA 2.2%
SA 0.7%
ACT 0.6%
QLD 2.8%
Australian Customer
Segmentation by Volume (Kg)
NB: Figures rounded to the nearest whole %
Tasmanian
Pate
16%
Daly
Potato Co
25%
Woodbridge
Smokehouse
19%
TP
White
Label
8%
WS White
Label 8%
Homestead
Pate
15%
The Cashew
Creamery 4%
Lauds
Plant-Based
Foods 3%
DPC White
Label 1%
Other 1%
Revenue by Brand
New
Customers
186
New
Stockists*
776
New SKUs
Launched
26
Business & Financial Summary
* Bringing total to 2,776
Growth Markers
108T
MAYO-BASED DRESSINGS
PRODUCED IN-HOUSE
465,456
ICECREAM STICKS
PRODUCED
Business & Financial Summary
Pure Foods Tasmania Limited | 2022 Annual Report
9
Business & Financial Summary
The Cashew Creamery secured ranging
of 5 products with Woolworths Metro
in early 2022 which is the first Major
Retailer for the brand. …
Michael Cooper, Managing Director
Business & Financial Summary
Pure Foods Tasmania Limited | 2022 Annual Report
10
PFT Operations Review
Company Summary
PFT Group Results FY21 v FY22
FY21
FY22
Variance
Sales
$ million
$ million
$
%
Revenue from operations
7.341
9.925
2.584
35%
Net (Loss)/Profit
(0.716)
(3.338)
(2.622)
-
EBITDA
(0.451)
(3.319)
(2.868)
-
Revenue by Production Groups
FY21
FY22
Growth*
($ million)
($ million)
%
Tasmanian Pate
3.972
4.086
3%
Woodbridge Smokehouse
1.604
2.959
84%
Daly Potato Co.
1.859
2.546
37%
Lauds Plant-Based Foods
0.154
0.296
92%
The Cashew Creamery
0.041
0.467
1044%
Holdings
0.110
0.035
-68%
Total Gross Sales
7.741
10.389
34%
* % Growth in Gross Sales
Financial Highlights
½ FFY22 gross sales revenue of $10.4 million up
+$2.64 million or 34% vs FY21 (including revenue
from acquisitions) with all divisions delivering
positive revenue growth
½ Daly Potato Co. grew sales by 37% in FY22 v FY21
½ Woodbridge Smokehouse increased sales by 84% v
FY21 to record $2.96 million in sales
½ The Cashew Creamery achieved the largest sales
growth of over 1000% on FY21
½ Tasmanian Pate being PFT’s biggest entity
continues to grow with 3% increase in FY22
½ Lauds Plant-Based Foods also enjoyed strong
growth of greater than 90% during FY22
½ Distribution of active customers increased by 38%
to 2,776 in FY22
½ Investment of over $520k in marketing, brand and
new product development in FY22
½ $1.68 million invested in plant and equipment to
support growth
½ Group continues to remain well funded with a net
cash position of $2.4 million as at 30 June 2022 and a
further $1.53 million in undrawn debt facilities. This
has also been supported with a recent capital raising
of $2.55 million raised via a placement and a further
$1.83 million through a rights issue. The shortfall of
rights issue once completed will potentially raise an
additional $1.57 million (expected to be completed
by 9th of September 2022).
PFT Operations Review
Pure Foods Tasmania Limited | 2022 Annual Report
11
Operational Highlights
½ During FY22 the Company bedded down our two
new acquisitions being Lauds Plant-Based Foods
& The Cashew Creamery along with growing Daly
Potato Co., our previous FY21 acquisition
½ Secured ranging with Woolworths for Daly Potato
Co. Potato & Gravy product in Tasmania and
Queensland with a new 100% recyclable packaging
½ FY22 saw successful NPD for The Cashew Creamery
achieving ranging into Woolworths Metro stores
½ New Homestead Chicken & Cheddar launched in
850 Woolworths stores
½ 2 x Premium Homestead Pate flavours launched
into Coles Tasmania stores
½ Lauds Plant-Based Foods launched a range of
premium plant-based cashew cream cheeses
Michael Cooper
Managing Director
PFT Operations Review
Pure Foods Tasmania Limited | 2022 Annual Report
12
PFT Operations Review
Pure Foods Tasmania Limited | 2022 Annual Report
13
PFT has experienced significant
organic growth over the year
with further integration
of the acquisitions…
Malcolm McAully, Chairman
Pure Foods Tasmania Limited | 2022 Annual Report
14
Tasmanian Pate Review
Tasmanian Pate produces a wide range of premium pates
that have been enjoyed for over 25 years by Australians.
Ranged nationally in Woolworths stores and in
quality independent grocers, Tasmanian Pate is a
product you can guarantee will compliment any
entertaining platter.
The Tasmanian Pate range saw a consolidation of
products in FY22 with a focus on high volume SKUs.
The lower volume range of single flavours were
discontinued, with the brand’s focus on the multiple
flavour packs that Tasmanian Pate is known for. The
Homestead range will continue to grow the single
flavour ranging.
PFT made the decision to take management of
distribution of Tasmanian Pate and Homestead lines
in-house in FY22. The dedicated sales team were
able to increase sales volume by 18% across the two
brands within 12 months.
Tasmanian Pate customers received a price increase
in late Q4, which was the first increase for the brand
in three years. The increase was a result of the
increasing pressures on raw materials, packaging,
and freight. The increase has not affected sales.
Tasmanian Pate’s automation project continued with
packaging redesign and the dispatch of machinery
from Europe. The new packaging format and design
is expected to launch in market in H1 FY23.
Homestead by Tasmanian Pate
Homestead by Tasmanian Pate brings the beauty
of Tasmania’s produce and meadows to you, to
experience and enjoy with family and friends.
Through a sub range of
Tasmanian Pate, PFT secured
three new lines in October
2020 into Woolworths
nationally under a new
brand, Homestead.
Homestead focuses on
premium Tasmanian
produce, to produce flavours
yet to be seen in the Australian pate market.
In October 2021, two new Homestead products
were launched into the market: Free Range Chicken
with Red Chilli 150g; and Chicken & Aged Cheddar
150g. The two products were ranged nationally in
independents, and Chicken & Aged Cheddar ranged
nationally in Woolworths.
Two Homestead products were launched into Coles
Tasmania in January 2022. This is the first time that
a Tasmanian Pate product has been sold on Coles
Supermarket shelves. The launch was very successful,
with the Homestead range exceeding all expectations.
The Tasmanian Pate team continue to work on new
product development, with the premium Homestead
range being of focus.
www.taspate.com.au
www.homesteadpate.com.au
Revenue Growth
Customer Segment by Value
Sales Break-up by Brand
Stockists
Australia Wide
FY22
FY21
$4.09m
$3.97m
Revenue
3% Growth
D
i
s
t
r
i
b
u
t
o
r
1
8
%
7
7
%
M
a
j
o
r
R
e
t
a
i
l
Retail/Independent
1.02%
Food Service 0.16%
Consumer Direct 0.1%
T
a
s
m
a
n
i
a
n
P
a
t
e
4
0
%
L
a
b
e
l
2
1
%
W
h
i
t
e
H
o
m
e
s
t
e
a
d
3
9
%
PFT Operations Review
Pure Foods Tasmania Limited | 2022 Annual Report
15
Stockists in Australia,
Hong Kong, Vietnam,
Malaysia, Singapore,
and Indonesia.
The exclusive relationship with
Monde Nissin continued to
strengthen in FY22, with its
sales team improving national
distribution by over 70%
Michael Cooper, Managing Director
Pure Foods Tasmania Limited | 2022 Annual Report
16
Woodbridge
Smokehouse Review
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 our own fruit tree wood
create the delicate and distinctive flavours for which
Woodbridge Smokehouse is renowned.
The exclusive relationship with Monde Nissin
continued to strengthen in FY22, with its sales team
improving national distribution by over 70%. To
support the mainland distribution, PFT re-established
the Kosher certification of Woodbridge Smokehouse,
which additionally helped to gain a new Kosher base
distributor in Victoria.
The marketing team refreshed the Woodbridge
Smokehouse packaging in FY22, giving the range a
clean, contemporary, and sleek new look. The new
packaging also helps to create stronger differentiation
between the trout and salmon ranges.
www.woodbridgesmokehouse.com.au
Revenue Growth
Customer Segment by Value
Revenue by Fish Breed
FY22
FY21
$2.959m
$2.02m
Revenue
84% Growth
D
i
s
t
r
i
b
u
t
o
r
E
x
p
o
r
t
3
6
.
7
%
R
e
t
a
il
/
I
n
d
e
p
e
n
d
e
n
t
2
0
%
3
5
.
5
%
Food Service
6.3%
Consumer &
Other 1.2%
T
r
o
u
t
S
a
l
m
o
n
8
1
.
5
%
1
8
.
5
%
Pure Foods Tasmania Limited | 2022 Annual Report
17
PFT Operations Review
The re-launch of Potato
& Gravy comes in a new
100% recyclable tub that
is designed to be sold hot
alongside roast meat to
offer value for money and
convenience to consumers.
Pure Foods Tasmania Limited | 2022 Annual Report
18
Daly Potato Co. Review
Fresh from the farm, straight to your
table. Quick, ready to eat rustic home
style dishes. Made in Tasmania using
Tasmanian potatoes. Eating farm
fresh has never been more convenient
and delicious.
Launch of 9 SKUs across the year, with a focus of
opening the brand into new customer segments, and
bulk solutions for retailers. These SKUs included single
serve 160g salads which have been sold in grab and go
departments of independent and take-away stores.
The research and development team continued
to develop a new packaging solution for Potato &
Gravy, with the challenge to improve recyclability
of packaging, lower packaging cost, improved
efficiency of production, increased brand extension
and improved customer usability. The new format is
considered to have delivered on the challenge and will
provide a significant uplift in FY23 and FY24 sales.
Sponsorship of Tasmanian State League
Daly Potato Co. partnered with AFL Tasmania,
Tasmanian State League, to live stream every senior
match in 2022. This was an exciting time for the brand,
as the Daly brand received great brand awareness. We
believe supporting the TSL, livestreaming nationally,
was a great way to reach out across Australia,
especially to our loyal ex-Tasmanians. Daly Potato Co.
also hosted Goal of the Week, where TSL supporters
selected their favourite goal of the week and went in
the running to win a Daly Potato Co. pack.
www.dalypotatoco.com.au
Stockists in Tasmania,
Victoria, New South Wales
& Queensland
Revenue by Customer Location
Revenue by Customer Segment
Revenue by Product Style
S
a
l
a
d
s
7
6
%
B
a
k
e
s
2
2
%
Fresh Prepared 1.8%
D
i
s
t
r
i
b
u
t
o
r
1
9
%
I
n
d
e
p
e
n
d
a
n
t
/
R
e
t
a
i
l
1
5
%
M
a
j
o
r
R
e
t
a
i
l
6
3
%
Food Service,
Consmer & Other 2.6%
QLD 4%
NSW
37%
VIC
23%
TAS
35%
FY21
FY22
$2.546m
$1.859m
Revenue
37% Growth
Revenue Growth
I just want to thank you for your range of ready made
salads. I was diagnosed 12 months ago as gluten-free and it
has been a major life readjustment. Until yesterday I have not
been able to go to the supermarket and grab a ready to go
salad for a fast dinner. I was so excited when I went to check
the ingredients list and saw the GLUTEN FREE on the side.
Thank you so much. Keep up the great work.
Karen R.
Pure Foods Tasmania Limited | 2022 Annual Report
19
PFT Operations Review
…vegan shredded cheese …is a great
dairy alternative and is perfect for
pizzas, nachos, toasties, anything!
PFT Operations Review
Pure Foods Tasmania Limited | 2022 Annual Report
20
Lauds Plant-Based
Foods Review
Tasmanian. Dairy Free. 100% Plant-Based.
Lactose Free. Kind to the people, the earth
and all that it sustains.
Through the production of delicious plant-based foods we
aim to make a lasting difference to our world – helping
you to ‘feed your kindness’ and live a healthier, more
compassionate, and sustainable life.
The Lauds brand saw a refresh in FY22 with a packaging
redesign. The subtle refresh was to ensure the brand stayed
contemporary and 'popped' on the shelf. PFT used the
refresh as an opportunity to update pricing for the products
to ensure it remains competitive in the growing market.
In May 2022, PFT launched a new range of 5 cashew-based
cream cheese products into the independents market. Four
of these products were part of a new premium ranging for
the Lauds brand, targeting luxury entertaining. The premium
variants included Carrot & Cardamon, Beetroot, Truffle,
and Lemon, Garlic & Dill, which are all great to be used as
spreads, dips, or recipe bases. The cashew cream cheese
launch also included a Classic plain product under the Lauds’
standard everyday range. The classic product is perfect
for sweet or savoury cooking. The new products were well
received by the market and consumers and has been a great
premium extension of the Lauds’ brand.
PFT received delivery of an industrial kettle for the Lauds
production team. This helps to create a smoother textured
product and allowed PFT to launch the new range of
cashew cream cheeses.
Lauds Plant-Based Foods is continuing to expand into food
service with 1kg vegan shredded cheese. This product is
a great dairy alternative and is perfect for pizzas, nachos,
toasties, anything! Retail packs are to be launched in the Q2
of FY23.
www.lauds.com.au
Revenue Growth
Revenue by
Customer Segment
Revenue by
Customer Location
VIC 6%
QLD 1%
NSW
46%
TAS
47%
R
e
t
a
il
/
I
n
d
e
p
e
n
d
e
n
t
3
5
%
D
i
s
t
r
i
b
u
t
o
r
s
4
9
%
Food
Service
11%
Consumer
& Others 5%
FY22
FY21
$296k
$154k
Revenue
92% Growth
PFT Operations Review
Pure Foods Tasmania Limited | 2022 Annual Report
21
less than half of
coffees now are made
with cows milk!
Drew, Co-owner
Room for a Pony Owner
Café Spotlight: Room for a Pony
Room for a Pony has become a North
Hobart iconic go-to café. This space is laid
back, and welcomes all. It’s the perfect
meeting place for brunch with friends or
for pizza catch ups. We sat down with one
of the owners, Drew, enjoying delicious
vegan pizzas and chatting all about Room
for a Pony.
Room for a Pony is located on the outskirts of central,
buzzing North Hobart, where they have created a
space where everyone is welcome (including dogs!).
Room for a Pony’s menu has lots of items that can
be made vegan! Aside from pizzas there is granola,
porridge, scrambled silken tofu and Huevos rancheros
plus a range of snacks and dinner items such as
nachos, garlic bread and a guacamole bowl.
Drew told us that he has seen a massive
demand for vegan food, which was great
to hear. He even mentioned that less than
half of coffees are now made with cows
milk! ‘I guess people are more conscious
about animal products and what’s
involved in producing them and it’s affects
on the environment’.
They hand make the sourdough pizza bases every day
using a combination of organic white + wholemeal
spelt flours. The bases are nice and thin, and have
a delicious woodfired taste. Head Chef, Christian,
sourced Lauds cheese to use on top of their pizzas,
and Drew told us ‘Tassie business, and locally produced
- you can’t go wrong!’ Our original oat melt melts
beautifully on pizzas.
Community Focus
PFT Operations Review
Pure Foods Tasmania Limited | 2022 Annual Report
22
Here’s what we had:
½ Tasmanian Juice Press, Fruits Blend: a
deliciously sweet berry juice. Full of vibrant
summer fresh ingredients, watermelon,
raspberry, apple and lemon.
½ Tasmanian Juice Press, Greens Blend: if you are
after a big greens hit, go for this. Refreshing and
full of green goodness- silverbeet, tuscan cabbage,
celery, parsley, mint and apple!
½ Margherita Pizza: tomato, basil and Lauds Original
Oat Melt. A simple, delicious classic- you can’t go
wrong with a margherita can you?!
½ Bob Brown Pizza: garlic oil, broccolini, kale, green
olives, chilli and Lauds Original Oat Melt. This pizza
was a green goodness pizza, full of flavour. The
kale and broccolini added a great change from
usual pizza toppings.
½ Fun Guy Pizza: Huon Valley honey brown and
enoki mushrooms, truffle oil, spring onions and
Lauds Original Oat Melt. If you are a mushroom
fan, this is the pizza for you. The truffle oil and
Lauds cheese pair beautifully.
Checkout
our blog
Pizzas all made with our vegan cheese
PFT Operations Review
Pure Foods Tasmania Limited | 2022 Annual Report
23
Hit 100.9 Measure-Men Promotion
The Cashew Creamery partnered with Jimmy &
Nath from Hobart Hit 100.9 in April 2022 to take the
challenge to measure the iconic Seven Mile Beach
in Southern Tasmania. The challenge was to see if
the beach was in fact, seven miles long. The Cashew
Creamery sponsored this challenge, where the
listener with the closest guess won a year’s worth of
The Cashew Creamery product. The campaign was
well received by locals and customers.
We are proud to confirm that Seven Mile Beach is
in fact 6.72 miles (10.86 kms or 80,348 The Cashew
Creamery boxes) long.
Pictured right: Jimmy & Nath team who walked
the long beach early in the morning.
Pictured above: PFT Sales Manager, Tim, at the
finish line meeting them with a well-deserved
Cashew Creamery stick.
PFT Operations Review
Pure Foods Tasmania Limited | 2022 Annual Report
24
The Cashew
Creamery Review
The Cashew Creamery started with the simple challenge
to create a delicious, smooth, creamy ice cream… without
the cream! The result? A decadent ice cream which just
happens to be better for you and the environment.
Founded by Jen & Matt in Southern Tasmania, The Cashew Creamery is
a proud Tasmanian business using high-quality Tasmanian ingredients
wherever possible. The original Cashew Sticks combine a silky-smooth
cashew base dipped in real dark chocolate and are stocked Australia wide in
independent grocers and Woolworths. The rich flavours such as chocolate
and coffee provide a decadent treat and are sure to satisfy your craving. The
vibrant flavours of mint and strawberry provide a refreshing experience.
Following the successful extension of distribution with Monde Nissin
Australia nationally, The Cashew Creamery secured ranging of 5 products
with Woolworths Metro in early 2022 which is the first Major Retailer for
the brand. As part of the launch into around 80 Woolworths Metro stores in
Victoria, New South Wales and Queensland, The Cashew Creamery became
available on the Metro60 App. This new platform offers door-to-door
delivery within 1 hour in metro areas in eastern Sydney suburbs. The launch
of the Woolworths app capitalises on the growing demand for fast deliveries
and convenience to consumers. It is exciting for The Cashew Creamery
brand to be available for purchase through this new innovative platform.
To support the increased distribution of the brand on the Eastern Seaboard,
the PFT marketing team focused on a brand awareness campaign for The
Cashew Creamery. This campaign included street furniture, billboards, and
podcast advertising raising awareness of the brand now being available in
Woolworths Metro.
PFT received delivery of state of the art ice cream production equipment from
Italy in mid-2022, and began installation in September. The new equipment
will dramatically increase the production capacity for The Cashew Creamery,
helping to open more production opportunities for PFT.
The Cashew Creamery was the proud recipient of the Reserve Champion
award in the Royal Tasmanian Fine Food Awards plant-based section with
the mint cashew ice cream stick.
www.thecashewcreamery.com.au
I’m Coeliac and dairy intolerant
and I’ve truly missed being able to
eat an ice cream with the crunch of
a crisp chocolate coating and now I
can, thanks to you. Your ice creams
are delicious and creamy and just the
most perfect size, I love them!
C. Duval
Just wanted to tell you how obsessed
I am with your amazing ice cream!
I’ve tried them all and love them.
Current fave is chocolate bars and I
also love the low sugar chocolate in
the tub. It’s helped me with reducing
my dairy intake substantially and
having these as a substitute for a
sweet treat is great!
B. Hanson
My son is dairy intolerant but now
this is the only ice cream we eat as a
family. It’s so much better than dairy
ice cream! Incredible! We have tried
many dairy alternatives but yours is
far superior than anything else on the
market. There are some products out
there that say they are dairy free but
my son still gets a tummy ache after
eating them, as they must contain
contaminants of dairy products. Yours
doesn’t have that effect on him. Thank
you for caring and making such a
great product and a local Tasmanian
company too, even better! We are very
happy customers!
A. Barker
Revenue Growth
Revenue by
Customer Segment
Revenue by
Customer Location
R
e
t
a
il
/
I
n
d
e
p
e
n
d
e
n
t
s
3
6
%
D
i
s
t
r
i
b
u
t
o
r
4
7
%
Consumer & Other 1%
Major
Retail
15%
QLD 4%
ACT 1%
VIC
42%
TAS
36%
NSW
17%
FY22
FY21
$153k
$126k
Revenue
21% Growth
PFT Operations Review
Pure Foods Tasmania Limited | 2022 Annual Report
25
NEW IMAGE REQUIRED
PFT Sales Team
Tim has been with PFT since 2020 and is PFT’s Sales Manager. Before starting at
PFT he worked at Juicy Isle Tasmania for 18 years in various roles, mainly with a
sales focus. He has come to PFT with great expertise.
Tim’s role at PFT as a Sales Manger sees him managing the Tasmanian route sales
team and distributing PFT products throughout Australia with our distribution
partners. His role is very people oriented and requires him to build strong
relationships with customers. Tim loves that his role requires him to interact with
people on a daily basis – which for those of you that know Tim, you’ll know that he
is perfect for this role. Tim also loves that there are never two days the same at PFT
and that he gets to work with a great group of people. ‘The fact that I have been
working with the same managing director, Michael Cooper, over the last 19 years
says a lot’. There are not many people who would be able to say the same.
In his spare time find Tim bike riding around Hobart and surrounds, gardening,
cooking up a storm and spending time with his family.
Tim Kroustalis
Sales Manager
Clinton has been with PFT since 2021 and is PFT’s Sales Account Manager in the
south of the State. Before coming to work at PFT, Clinton worked at Juicy Isle in
a similar FMCG role. He was in a sales manager role and assisted in business
development. He came to PFT with great knowledge and expertise, which assists
him in his current role.
Clinton’s role at PFT sees him selling and promoting PFT’s various businesses, with
the aim of ensuring that PFT’s premium products hit the shelves in stores and
stay stocked. He looks for new business opportunities and builds and strengthens
relationships with Hobart and surrounding suburbs’ food retailers. Clinton loves
promoting Tasmanian premium produce; he lives and eats it everyday! You will find
him in the kitchen creating delicious meals using Tasmanian produce. He is the
perfect fit for his role.
In his spare time find Clinton spending time with his family or driving his
ride-on lawnmower.
Clinton French
Southern Tasmanian
Sales
Shane has been with PFT since 2021 and is PFT’s Sales Account Manager in the
north of the State. Before Shane started at PFT he was a qualified butcher, a job
which he did for about 15 years. He has also been involved with sales for the past
19 years. Shane is a great people person, and a perfect fit for his sales role at PFT.
Shane’s role is all about selling and promoting PFT’s various businesses in the north
of the State and making sure that PFT’s premium products are stocked in stores.
He services IGA’s, cafes, wineries and many more locations in the north. Shane is
always on the lookout for new business opportunities and has a strong rapport
with his existing customer relationships.
Shane loves that he can take ownership of the northern region of the State! He
loves the relationships he gets to build within the trade with customers, some of
which he has been calling on in different roles now for over 19 years. ‘I also love
the fact we are dealing with quality Tasmanian made products that just about sell
themselves in the trade’.
In his spare time find Shane at the basketball stadium or the golf course or
unwinding with a nice cold beer and listening to vinyls.
Shane Hayward
North West
Tasmanian Sales
Pure Foods Tasmania Limited | 2022 Annual Report
26
PFT Sales Team
Tasmanian Sales
Tasmanian sales and distribution were a large focus for PFT in FY22. The
sales team grew to a crew of three, with a specialised account manager in the
Northwest of the State, where PFT was yet to establish a strong presence.
PFT also decided to take management of distribution of Tasmanian Pate and
Homestead lines in-house. The dedicated sales team were able to increase sales
volume by 18% across the two brands with 12 months.
With a sales team of three on the road, this gave us more vision for how the
market was trending with consumer purchase habits and where sales were
heading with our different entities. This information enabled us to champion
more New Product Development that was tailored to consumer sentiment and
from this we released 26 new products.
The E-Commerce sales channel has been closed due to an increase in logistics
costs, especially in direct to consumer chilled delivery. We have pivoted our focus
to supporting stronger margin sales channels.
Sales ($ millions)
0
10
20
30
40
50
60
70
TPC
LDS
DPC
TCC
WBS
HMS
164%
137%
74%
44%
-1%
-4%
% Growth
Brand Distribution Growth
Tasmanian Customer Location by Value
FY21
FY22
Tasmanian Customer Segmentation
0
100
FY22
18%
82%
% of Sales
FY22
24%
76%
232 Active
Customers
55.7% from FY21
FY22
Retail
Food Service
Pure Foods Tasmania Limited | 2022 Annual Report
27
PFT Sales Team
Employee Spotlight
Nicola started with PFT in January 2022 as PFT's Customer Service Officer.
Before that she worked at the public health hotline, dealing, and engaging
with callers in relation to Covid enquiries. She has lots of great experience in
administration and customer support, and is a great fit at PFT.
Nicola’s role at PFT sees her dealing with customer enquires, creating orders,
assisting the sales team and offering her support and knowledge where needed.
If you ever call up PFT, you are sure to be greeted by Nicola, who is friendly and
willing to assist in anyway she can. Nicola loves that she contributes to the team
and is able to communicate directly to customers and consumers.
In her spare time find Nicola at restaurants around Hobart (she is a foodie,
which is an essential at PFT!), seeing her friends, going to the gym or enjoying
local events.
Nicola Weller
Ishwor joined the PFT team in April 2021 as part of the dispatch team.
Before working at PFT, Ishwor worked in a Sydney café as a chef, as well as
being a delivery driver and cleaner.
Ishwor’s role focuses on distribution of PFT products, where he will pack orders
for customers and businesses, and making sure that the orders are well packed
so customers receive their orders in great condition. He says that ‘everyone is
like family here and we work like a team’.
In his spare time Ishwor loves to play soccer.
Ishwor Shrestha
Stacey works in the Daly Potato Co. factory. Prior to starting with us, she
was working at Houston's Farm as a supervisor and team leader, as well as
a machine operator. Her industry experience is of great value with the daily
operations at Daly.
She was originally employed as a machine operator and is now expanding her
skills and learning all aspects of the business, to widen her knowledge. So, you’ll
find her working here, there, and everywhere.
For Stacey, she loves that her role isn’t the same, it’s different each day. She
says there is always something to do and doesn’t get bored. There is a great
team environment at Daly and Stacey ‘loves the people here’. When Stacey isn’t
working she loves to spend time with her family.
Stacey Fitzpatrick
Pure Foods Tasmania Limited | 2022 Annual Report
28
Celebrating our Employees
Sorell Team enjoying Australia’s Biggest Morning Tea
PFT team celebrating International Women's Day
Mornington Staff enjoying Harmony
Day, celebrating our diversity with
employees providing plates of food
that reminds them of “home”.
Our People
PFT is a proud employer within the Greater Hobart area, and we have been
delighted to be able to offer a variety of roles to new employees throughout the
last 12 months to assist with our rapid growth. The employment of new roles
included a Chief Financial Officer and a Group Quality Assurance Manager and
numerous Production based roles. Throughout the financial year, PFT onboarded
55 new employees in all areas of the company. We also converted numerous
casual employees to permanent full time work.
During FY22 we introduced the Employee Assistance Program which offers
assistance to all employees during their time of need.
We managed to navigate through the peak of the pandemic with little to no disruption
to our production schedule by keeping the risk low and hygiene practices high.
Our People
Pure Foods Tasmania Limited | 2022 Annual Report
29
Malcolm McAully
Non-Executive Chairman
Malcolm McAully is an experienced
Company Director having held roles
over a diverse range of industry
backgrounds including 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
an exploration project in Chile.
Malcolm has held various executive
management positions including
National Manager of 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 is the Managing Director
of PFT. Michael has over 30 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.
Michael is also a Board Member
of Hutchins School and Managing
Director of Willar Pty Ltd.
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
Corporate Governance
Pure Foods Tasmania Limited | 2022 Annual Report
30
Alexander
“Sandy” Beard
Non-Executive Director
(Resigned 1 May 2022)
Sandy is the Chairman of HGL
Limited (ASX.HNG), FOS Capital
Limited (ASX:FOS), and Director
of Centrepoint Alliance Limited
(ASX:CVC).
He has been a Director of the
following Companies in the last
3 years: CVC Limited (ASX: CVC)
Eildon Capital Limited (ASX:EDC),
Probiotec Limited (ASX:PBP),
US Residential Fund (ASX:USF),
Lantern Hotel Group (ASX:LTN). He
is also Chairman of the unlisted
public company Tasmanian Oyster
Company Limited.
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.
Ken Fleming
Non-Executive Director
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 also a Director of Castray
Capital. 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 Hill
Company Secretary
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).
Corporate Governance
Pure Foods Tasmania Limited | 2022 Annual Report
31
Pure Foods Tasmania Limited | 2022 Annual Report
32
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 2022. The information in
the preceding operating and financial review forms part of this Directors’ report for the financial year ended 30
June 2022 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 Malcolm McAully
Non-executive Chairman
½ Michael Cooper
Managing Director
½ Alexander Beard
Non-executive Director (resigned 1 May 2022)
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 Group 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 Group
No person has applied for leave of court to bring
proceedings on behalf of the Group or intervene in
any proceedings to which the Group 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 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 2022:
$
Advisory taxation services
63,000
Accounting assistance
13,500
76,500
Auditor’s Independence Declaration
The lead auditor’s independence declaration for the
year ended 30 June 2022 has been received and can be
found on page 17 of the financial report.
Options and Convertible Notes
At the date of this report, the unissued ordinary shares
of the Group under option are as follows:
Grant date:
28 April 2020
Date of expiry:
30 April 2023
Exercise price:
2,800,000
Number under option:
0.40
Option holders do not have any rights to participate in
any issues of shares or other interests of the Group or
any other entity.
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.
For details of options issued to Directors and executives
as remuneration, refer to the "Remuneration Report" on
page 36.
During the year ended 30 June 2022, 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.
Directors’ Report
Pure Foods Tasmania Limited and its controlled entities.
Directors’ Report
Pure Foods Tasmania Limited | 2022 Annual Report
33
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.
The Group announced on 7 October 2021 that
sophisticated and professional investors had agreed to
subscribe for $5.3m (before costs of the offer) via the
issue of unsecured convertible notes. The convertible
notes have a two-year term (with a Company elective
to extend to 3 years), a 7.5% per annum interest rate
and a conversions price based on the lower of:
a) 90% (or 80% if there is an extension of the
maturity date) of the 10-day trading VWAP prior to
conversion; or
b) $0.50 per share.
Information Relating to Directors
and Group Secretary
Malcolm McAully
Malcolm McAully is an experienced Company
Director having held roles over a diverse range
of industry backgrounds including financial
services, energy generation, waste management,
agribusiness, technology manufacturing, human
resource management, property development and
food manufacturing.
Malcolm was the Chairman of ASX Listed Pinnacle VRB
(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 Chairman of Chaucer
Energy Limited and several privately owned companies.
Malcolm has held various executive management
positions including National Manager of MLC Life
when owned by the Lend Lease Group. He holds
an MBA and qualifications in accounting, business
management, mediation, turn around management
and GAICD.
Michael Cooper
Details and Experience
Michael Cooper is the Managing Director of PFT.
Michael has over 29 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 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 $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.
Alexander (Sandy) Beard
(resigned 1 May 2022)
Details and Experience
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 HGL Limited
(ASX.HNG) and FOS Capital Limited (ASX:FOS), 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), Probiotec Limited (ASX:PBP) and Centrepoint
Alliance (ASX:CAF). He is also Chairman of the unlisted
public company Shellfish Culture Limited.
Ken Fleming
Details and Experience
Ken Fleming has extensive experience in capital
markets and has held senior roles at Deutsche
Bank (including Director; Global Co-ordinator –
Telecommunications Technology), James Capel
Australia and Tricom (Head of Research). He has also
worked in the Australian public service (Canberra)
and at KPMG (Melbourne). He is a Director of Castray
Capital Pty Ltd and 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
Details and Experience
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 Master’s 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).
Directors’ Report
Pure Foods Tasmania Limited | 2022 Annual Report
34
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 ($3.3m) (2021: ($0.7m)).
State of Affairs and Likely Developments
In the opinion of the Directors there were no significant
changes in the state of affairs of the Group 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
The Group announced on 28 July 2022 the launch of a
placement to institutional and sophisticated investors
to raise approximately $2.55m (‘Placement’), and an
offer of 1 fully paid ordinary share in PFT (‘New Share’)
for every 3 fully paid ordinary shares held in PFT
(‘Entitlement Offer’) to potentially raise a further $3.4m
(together the Placement and the Entitlement Offer
is referred to as the ‘Offer’). The key purpose of the
Offer is to fund continued growth in sales, expansion
of production capacity, investment in automation to
improve operating efficiencies, secure key assets and
exploit product expansion opportunities.
The Placement has successfully been completed and
was fully subscribed raising $2.55 million. The first
tranche of the Entitlement Offer raised $1.83 million
and the shortfall of the rights issue once completed
will potentially raise an additional $1.57 million.
Further, PFT has agreed ranging with Woolworths for
Daly Potato Co. Potato & Gravy product in Queensland
and Tasmania. This will be in-store from mid-
September and will be available in 100% recyclable
packaging in 250 gram and 450 gram sizes.
Other than those stated 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 2022.
On behalf of the Directors
Michael Cooper
Managing Director
31 August 2022
Meetings of Directors
During the financial year, 11 meetings of Directors (including committees of Directors) were held. Attendance by
each Director during the year was as follows:
Directors’ Meetings
No. of meetings
eligible to attend
Attended
Malcolm McAully
11
11
Michael Cooper
11
11
Alexander Beard (resigned 1 May 2022)
8
8
Ken Fleming
11
11
Remuneration of Directors and Senior Management
Information about the remuneration of Directors and senior management is set out in the Remuneration Report.
Directors’ Report
Pure Foods Tasmania Limited | 2022 Annual Report
35
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 Group is
based on the following:
½ The remuneration policy is to be developed 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 Group 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 Board 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. 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 10.5% 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 Group 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 or otherwise).
The KMP of the Group for the year ended 30 June
2022 were:
Appointment Date
Malcolm McAully
Non-Executive Chairman
1 September 2017
Michael Cooper
Managing Director
1 February 2017
Alexander Beard
Non-Executive Director
(resigned 1 May 2022)
1 May 2020
Ken Fleming
Non-Executive Director
29 July 2015
Charles Hughes
Chief Financial Officer
14 April 2022
Remuneration Report
Pure Foods Tasmania Limited | 2022 Annual Report
36
Remuneration Expense Details
for the Year Ended 30 June 2022
Executive
Short-term benefits
Post-
employment
benefits
Long-term
benefits
Equity-settled
share-based
payments
Cash-settled share-based payments
Termination benefits
Total
Salary, fees, and
leave
Profit share and
bonuses
Non-monetary
Pension and
superannuation
Other
Incentive plans
LSL
Shares/
Options/ rights
$
$
$
$
$
$
$
$
$
$
$
$
Michael Cooper
2022
262,609
30,000
-
26,183
-
-
-
-
-
-
-
318,792
2021
253,615
-
-
23,995
-
-
-
-
-
-
-
277,610
Charles Hughes
(from 14 April 2022)
2022
38,974
-
-
3,897
-
-
-
-
-
-
-
42,871
Malcolm McAully
2022
50,000
-
-
5,000
-
-
-
-
-
-
-
55,000
2021
50,000
-
-
4,750
-
-
-
-
-
-
-
54,750
Alexander Beard
2022
30,000
-
-
3,000
-
-
-
-
-
-
-
33,000
2021
36,000
-
-
3,420
-
-
-
-
-
-
-
39,420
Ken Fleming
2022
36,000
-
-
3,600
-
-
-
-
-
-
-
39,600
2021
36,000
-
-
3,420
-
-
-
-
-
-
-
39,420
Total KMP
2022
417,583
30,000
-
41,680
-
-
-
-
-
-
-
489,263
2021
375,615
-
-
35,585
-
-
-
-
-
-
-
411,200
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
Percentage
vested/paid
during the
year
Percentage
forfeited
during the
year
Percentage
remaining as
unvested
Expiry date
for vesting or
payment
Michael Cooper
28/04/2020
1,300,000
-
-
100%
30/04/2023
Malcolm McAully
28/04/2020
500,000
-
-
100%
30/04/2023
Alexander Beard
28/04/2020
500,000
-
-
100%
30/04/2023
Ken Fleming
28/04/2020
500,000
-
-
100%
30/04/2023
Charles Hughes
-
-
-
-
-
-
Total
2,800,000
Remuneration Report
Pure Foods Tasmania Limited | 2022 Annual Report
37
KMP Shareholdings
The number of ordinary shares held by each KMP of the Group during the financial year is as follows:
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
Malcolm McAully*
1,521,238
-
388,401
40,000
1,949,639
Michael Cooper*
2,678,420
-
371,307
44,166
3,093,893
Alexander Beard*
1,000,000
-
-
-
1,000,000
Ken Fleming*
1,595,789
-
407,436
-
2,003,225
Charles Hughes*
-
-
-
12,000
12,000
* Includes indirect shareholdings.
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.
This Directors’ report, incorporating the Remuneration
Report, is signed in accordance with a resolution of the
Board of Directors:
On behalf of the Directors
Michael Cooper
Managing Director
31 August 2022
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 2022, 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
31 August 2022
Remuneration Report
Pure Foods Tasmania Limited | 2022 Annual Report
38
Consolidated Statement of Profit or Loss
and Other Comprehensive Income
for the year ended 30 June 2022
Note
2022
2021
$
$
Revenue
Revenue from operations
9,924,813
7,341,482
Other income
245,772
487,922
Total Revenue
5
10,170,585
7,829,404
Expenses
Cost of goods sold
6
9,121,549
5,627,393
Employment expenses
2,172,214
1,072,568
Occupancy, electricity, and telephone costs
185,869
128,786
Bad debts
1,132
-
Depreciation and amortisation
588,531
405,744
ASX listing fees and expenses
51,407
64,374
Finance costs
348,117
85,662
Insurance
211,834
157,508
Legal and professional fees
347,445
313,642
Marketing expenses
334,170
407,137
Motor vehicle expenses
55,861
45,159
Repairs and maintenance
241,016
108,044
Research, development and quality
191,774
169,694
Other expenses
575,010
186,311
Total Expenses
14,425,929
8,772,022
Net Profit/(Loss) Before Income Tax
(4,255,344)
(942,618)
Income Tax Benefit/(Expense)
7
917,029
226,309
Net Profit/(Loss) After Tax for the Year
(3,338,315)
(716,309)
Other Comprehensive Income
Other comprehensive loss net of tax
-
-
Total Comprehensive Income
(3,338,315)
(716,309)
Net profit for the period attributable to:
Non-controlling interest
-
-
Owners of Pure Foods Tasmania Limited
(3,338,315)
(716,309)
(3,338,315)
(716,309)
Total comprehensive income for the year is attributable to:
Non-controlling interest
-
-
Owners of Pure Foods Tasmania Limited
(3,338,315)
(716,309)
(3,338,315)
(716,309)
Basic loss per share (cents per share)
3
(0.054)
(0.013)
Diluted loss per share (cents per share)
3
(0.054)
(0.013)
The above statement should be read in conjunction with the accompanying notes.
Pure Foods Tasmania Limited | 2022 Annual Report
39
Financial Statements
Consolidated Statement of
Financial Position
As at 30 June 2022
Note
2022
2021
$
$
Current Assets
Cash and cash equivalents
17
2,486,256
1,624,116
Trade and other receivables
8
1,263,014
1,098,324
Inventory
9
1,325,307
1,001,235
Other assets
227,579
339,833
Total Current Assets
5,302,156
4,063,508
Non-Current Assets
Property, plant and equipment
10
5,826,296
4,530,534
Right of use assets
11
474,476
696,951
Intangible assets
12
2,544,178
2,447,102
Deferred tax assets
7
2,536,151
1,239,971
Total Non-Current Assets
11,381,101
8,914,558
Total Assets
16,683,257
12,978,066
Current Liabilities
Trade and other payables
13
1,737,570
1,769,479
Lease liabilities
11
165,604
196,139
Provisions
14
232,833
159,692
Borrowings
15
270,184
724,920
Total Current Liabilities
2,406,191
2,850,230
Non-Current Liabilities
Lease liabilities
11
337,755
529,716
Provisions
14
17,992
29,192
Borrowings
15
975,948
872,303
Deferred tax liabilities
7
1,189,203
842,412
Total Non-Current Liabilities
2,520,898
2,273,623
Total Liabilities
4,927,089
5,123,853
Net Assets
11,756,168
7,854,213
Equity
Contributed equity
16
16,643,159
9,402,889
Accumulated profits/(losses)
(4,886,991)
(1,548,676)
Total Equity
11,756,168
7,854,213
The above statement should be read in conjunction with the accompanying notes.
Pure Foods Tasmania Limited | 2022 Annual Report
40
Financial Statements
Consolidated Statement of
Changes in Equity
For the year ended 30 June 2022
Note
Contributed
Equity
Accumulated
Profits/(Losses)
Total
$
$
$
At 1 July 2020
6,872,110
(832,367)
6,039,743
Loss for the year
-
(716,309)
(716,309)
Other comprehensive income
-
-
-
Total comprehensive income for the year
6,872,110
(1,548,676)
5,323,434
Issue of shares
2,530,779
-
2,530,779
As at 30 June 2021
9,402,889
(1,548,676)
7,854,213
At 1 July 2021
9,402,889
(1,548,676)
7,854,213
Loss for the year
-
(3,338,315)
(3,338,315)
Other comprehensive income
-
-
-
Total comprehensive income for the year
9,402,889
4,886,991
4,515,898
Issue of shares
16
7,240,270
-
7,240,270
As at 30 June 2022
16,643,159
(4,886,991)
11,756,168
The above statement should be read in conjunction with the accompanying notes.
Pure Foods Tasmania Limited | 2022 Annual Report
41
Financial Statements
Statement of Cash Flows
For the year ended 30 June 2022
Note
2022
2021
$
$
Cash flows from operating activities
Receipts from customers
9,981,182
6,981,995
Payments to suppliers and employees
(14,024,889)
(7,582,765)
Interest received
24,429
29,142
Finance costs
-
(75,698)
Net cash used in operating activities
17
(4,019,278)
(647,326)
Cash flows from investing activities
Payments for property, plant and equipment
(1,682,443)
(3,520,128)
Payments for business acquisitions and intangibles
(97,076)
(1,708,265)
Net cash used in investing activities
(1,779,519)
(5,228,393)
Cash flows from financing activities
Proceeds from issue of shares
7,213,615
2,544,670
Proceeds/(payments) of borrowings
(349,974)
1,003,931
Principle elements for lease payments
(202,918)
(183,633)
Net cash provided by financing activities
6,660,937
3,364,968
Net (decrease)/increase in cash held
862,140
(2,510,751)
Cash and cash equivalents at the beginning of the year
1,624,116
4,134,867
Cash and cash equivalents at the end of the year
17
2,486,256
1,624,116
The above statement should be read in conjunction with the accompanying notes.
Pure Foods Tasmania Limited | 2022 Annual Report
42
Financial Statements
Notes to the Financial Statements
For the year ended 30 June 2022
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).
Going Concern
These financial statements have been prepared on the
basis that the Group is a going concern.
For the year ended 30 June 2022 the Group incurred
losses of $3.3m after tax (2021: ($0.7m)) and incurred
net cash outflows from operations of $4.0m (2021:
$0.6m). As at 30 June 2022 the Group had $2.5m (2021:
$1.6m) in cash and cash equivalents and had external
borrowings of $1.2m (2021: $1.6m). The Group
received cash from the issue of convertible notes
during the financial year of $5.3m, and the exercise of
options of $2.3m.
During the 2022 financial year there have been
a number of strategic initiatives that have been
implemented. The following is a summary of the
activities that have been delivered during 2022
financial year:
½ Capital raising via the issue of convertible notes of
$5.3m in October and December 2021;
½ Capital raising via the exercise of options of $2.3m
in the first half of FY22;
½ Continued growth in revenue base of 35% in FY22;
½ Consolidation of trading entities under one
management system with consolidated supplier
invoices in FY22.
Further, PFT, after the end of the financial year,
completed and has in progress:
½ Capital raising (post the end of the financial
year) announced on Thursday, 28th July 2022 to
institutional and sophisticated investors that raised
$2.55m (‘Placement’) being fully subscribed;
½ An offer of 1 fully paid ordinary share in PFT (‘New
Share’) for every 3 fully paid ordinary shares held
in PFT (‘Entitlement Offer’) via a rights issue that
raised a further $1.83m; and
½ Completion of the rights issue via a shortfall
placement to eligible shareholders that will
potentially raise a further $1.57 million during
September 2022.
The Directors have also approved a budget for FY23
that includes:
½ Reduced capital expenditure from $1.68m in FY22
to $0.90m in FY23;
½ Increasing gross margins through negotiated sales
increases (implemented in FY22 and July 2022
to August 2022) and execution of identified cost
savings mainly reducing COVID related staffing
levels and automation; and
½ Successful launch of Potato & Gravy in September
2022 that will support continued growth of the
revenue of PFT.
Considering the recent capital raise, ongoing investor
support, current business momentum mainly through
improved margins and overhead reduction along with
new product initiatives, the Directors are of the opinion
the Group has the ability to make significant progress
in achieving profitable growth and sufficient funding
of it operations. Accordingly, the consolidated annual
report is prepared on a going concern basis.
Pure Foods Tasmania Limited | 2022 Annual Report
43
Management measures the performance of the segments identified at the ‘net profit before tax’ level.
Consolidated 2022
Food
Corporate and other
Total
$
$
$
Revenue
Total segment sales
9,924,813
-
9,924,813
Other income
8,496
237,276
245,772
Segment profit/(loss)
(3,505,381)
(749,963)
(4,255,344)
Profit/(loss) before income tax
(4,255,344)
Income tax (expense)/benefit
917,029
Profit/(loss) after income tax
(3,338,315)
Assets
Segment assets
5,025,586
11,657,671
16,683,257
Total Assets
5,025,586
11,657,671
16,683,257
Liabilities
Segment liabilities
3,401,667
1,525,412
4,927,089
Total liabilities
3,401,667
1,525,412
4,927,089
Note 3: Earnings Per Share
Consolidated 2021
Food
Corporate and other
Total
$
$
$
Revenue
Total segment sales
7,341,482
-
7,341,482
Other income
196,409
291,513
487,922
Segment profit/(loss)
491,275
(1,433,893)
(942,618)
Profit/(loss) before income tax
(942,618)
Income tax (expense)/benefit
226,309
Profit/(loss) after income tax
(716,309)
Assets
Segment assets
8,061,728
4,916,338
12,978,066
Total Assets
8,061,728
4,916,338
12,978,066
Liabilities
Segment liabilities
3,177,918
1,945,935
5,123,853
Total liabilities
3,177,918
1,945,935
5,123,853
Note 2: 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. During the financial year the
Board and executive management restructured the
reporting framework of the Group.
This resulted in the core reporting nature being from
a consolidated group viewpoint, as opposed to an
individual brand/company perspective.
The key driver behind this has been the recent
expansion of the number of brands within the
PFT Group. As such, there are two identifiable and
reportable segments:
½ Pure Foods Tasmania Products – which
incorporates all brands of the Group; and
½ Corporate - which comprises corporate costs that
are not directly attributable to the operational
business units.
Notes to the Financial Statements
Pure Foods Tasmania Limited | 2022 Annual Report
44
Note 3: Earnings Per Share continued…
2022
2021
$
$
Basic earnings per share
(0.054)
(0.013)
Diluted earnings per share
(0.054)
(0.013)
Basic
Weighted average number of ordinary shares outstanding during the period
used in the calculation of basic earnings per share
61,816,470
54,217,347
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
61,816,470
54,217,347
Note 4: Dividends to Shareholders
No dividends have been paid or declared during the year ended 30 June 2022 (30 June 2021: nil).
Note 5: Revenue
2022
2021
$
$
Revenue from continuing operations:
Sales
9,924,813
7,341,482
Other Income:
Interest received
24,429
29,142
Sundry income
217,371
215,089
Subsidies and grants
3,972
243,691
Total revenue
10,170,585
7,829,404
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 is 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.
Interest Revenue
Interest revenue is recognised on a proportional basis
using the effective interest rate method.
Notes to the Financial Statements
Pure Foods Tasmania Limited | 2022 Annual Report
45
Note 6: Expenses
2022
2021
$
$
Profit before income tax expense includes the following expenses:
Cost of goods sold
9,121,549
5,627,393
Salaries and wages
1,648,908
733,343
Share based payments
-
6,985
Total expenses
10,770,457
6,367,721
Note 7: Income Tax Expense
2022
2021
$
$
Income tax recognised in profit or loss:
Tax expense/(benefit) comprises:
Current tax (benefit)/expense
5,705
-
Deferred tax movements
(922,734)
(226,309)
(917,029)
(226,309)
Deferred income tax (benefit)/expenses included in income tax expense comprises:
(Increase)/decrease in deferred tax assets
(1,269,525)
(845,779)
Increase/(decrease) in deferred tax liabilities
346,791
619,470
(922,734)
(226,309)
Reconciliation of income tax expenses to prima facie tax on accounting profit:
Profit/(loss) before income tax expense
(4,255,344)
(942,618)
Tax at 25.0% tax rate (2021: 26.0%)
(1,063,836)
(245,081)
Tax effect of amounts which are not deductable
49,567
(16,434)
Under/overs in respect of prior year
85,071
42,947
Listing costs recognised in equity
-
5,288
Reset cost bases due to consolidation
(49)
(20,997)
Change in tax rate impact to deferred taxes
12,218
7,968
(917,029)
226,309
Notes to the Financial Statements
Pure Foods Tasmania Limited | 2022 Annual Report
46
Opening
balance
Charged to
income
Charged to
equity
Closing
balance
$
$
$
$
Deferred Tax
Gross deferred tax assets:
Provisions
49,111
13,596
-
62,707
Trade and other payables
21,682
68,645
-
90,327
Right of use leases
7,515
(294)
-
7,221
Share issue expenses
1,828
20,071
-
21,899
Tax losses
1,159,835
1,167,507
26,655
2,353,997
1,239,971
1,269,525
26,655
2,536,151
Deferred Tax
Gross deferred tax liabilities
Prepayments
24,597
(4,127)
-
20,470
Fixed assets
699,407
330,892
-
1,030,299
Trading stock
14,055
18,821
-
32,876
Goodwill & trademarks
90,307
(3,473)
-
86,834
Business acquisition costs
14,046
4,599
-
18,645
Product development costs
-
79
-
79
Net deferred tax asset/(liability)
842,412
346,791
-
1,189,203
Note 7: Income Tax Expense continued…
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.
Notes to the Financial Statements
Pure Foods Tasmania Limited | 2022 Annual Report
47
Note 8: Trade and Other Receivables
2022
2021
$
$
Trade receivables
932,504
807,529
Less loss allowance
-
-
Other receivables
330,510
290,795
Total trade and other receivables
1,263,014
1,098,324
Loss allowance
Movements in loss allowance are as follows:
Carrying value at beginning of the year
-
-
Increase/(decrease) in loss allowance
1,132
-
Receivables written off as uncollectable
(1,132)
-
Unused amount reversed
-
-
Total loss allowance
-
-
Trade receivables past due but not impaired
Under one month
700,992
632,880
One to three months
177,945
130,874
Over three months
53,567
43,775
Total trade receivables past due but not impaired
932,504
807,529
Note 7: Income Tax Expense continued…
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.
Notes to the Financial Statements
Pure Foods Tasmania Limited | 2022 Annual Report
48
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 “amounts written off” are all due to customers declaring bankruptcy, or term receivables that have now
become unrecoverable.
Current
30 days
60 days
90+ days
Total
30 June 2022
Expected loss rate
0.0%
0.0%
0.0%
0.0%
0.0%
Trade receivables Gross carrying amount
700,992
177,264
681
53,567
932,504
Loss allowance
-
-
-
-
-
30 June 2021
Expected loss rate
0.0%
0.0%
0.0%
0.0%
0.0%
Trade receivables Gross carrying amount
632,880
125,879
4,995
43,775
807,529
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 9: Inventory
2022
2021
$
$
Stock on hand
1,325,307
1,001,235
Total inventory
1,325,307
1,001,235
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 8: Trade and Other Receivables continued…
Notes to the Financial Statements
Pure Foods Tasmania Limited | 2022 Annual Report
49
Note 10: Property, Plant and Equipment
2022
2021
$
$
Buildings at cost
1,809,448
1,728,817
Less accumulated depreciation
(115,190)
(70,679)
1,694,258
1,658,138
Plant and equipment at cost
5,209,803
3,609,038
Less accumulated depreciation
(1,077,765)
(736,642)
4,132,038
2,872,396
Total property, plant and equipment
5,826,296
4,530,534
Reconciliations
Reconciliations of the carrying amounts of each class of plant and equipment at the beginning and end of the
financial year set out below:
Carrying value
Buildings
at cost
Plant & equipment
at cost
Total
$
$
$
As at 1 July 2020
839,649
471,337
1,310,986
Additions
852,023
2,668,105
3,520,128
Disposals
-
-
-
Depreciation expense
(33,534)
(267,046)
(300,580)
Balance as at 30 June 2021
1,658,138
2,872,396
4,530,534
As at 1 July 2021
1,658,138
2,872,396
4,530,534
Additions
80,631
1,601,812
1,682,443
Disposals
-
(1,047)
(1,047)
Depreciation expense
(44,511)
(341,123)
(385,634)
Balance as at 30 June 2022
1,694,258
4,132,038
5,826,296
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.
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
2.0%
Plant and equipment
5.0 – 33.0%
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.
Notes to the Financial Statements
Pure Foods Tasmania Limited | 2022 Annual Report
50
Note 11: Right of Use Assets and Lease Liabilities
2022
2021
$
$
Right of use assets
Buildings
912,941
932,519
Less accumulated amortisation
(438,465)
(235,568)
Total right of use assets
474,476
696,951
Set out below are the carrying amounts of the Group’s right of use assets and the movements during the period:
Buildings
Total
$
$
Carrying value
As at 1 July 2021
696,951
696,951
Additions
-
-
Lease modifications
(19,578)
(19,578)
Depreciation expense
(202,897)
(202,897)
Balance as at 30 June 2022
474,476
474,476
2022
2021
$
$
Lease liabilities
Current
165,604
196,139
Non-current
337,755
529,716
Total lease liabilities
503,359
725,855
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.
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;
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 exercising a purchase option,
the specific asset is depreciated over the useful life of
the underlying asset.
Notes to the Financial Statements
Pure Foods Tasmania Limited | 2022 Annual Report
51
Note 12: Intangible Assets
2022
2021
$
$
Intangibles
2,544,178
2,447,102
Total intangible assets
2,544,178
2,447,102
Intangibles
Total
$
$
Carrying value
As at 1 July 2021
2,447,102
2,447,102
Additions
97,076
97,076
Disposals
-
-
Balance as at 30 June 2022
2,544,178
2,544,178
Goodwill relates to the acquisition of Tasmanian Pate,
Daly Potato Co., The Cashew Creamery and Lauds
Plant-Based Foods.
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 Group.
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 (i.e.,
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 (CGU)
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.
During the financial year, the Board and management
reviewed the internal reporting and the CGU’s of the
Group. Given the expansion in brands and products,
the management of CGU’s by individual brand was
not aligned with the reporting of the Group. As such,
a single CGU has created title ‘Pure Foods Tasmania
Products’ which encompasses all brands of the
business as they are intrinsically linked under the PFT
brand. This aligns with the reporting to the Board at
Group level.
Notes to the Financial Statements
Pure Foods Tasmania Limited | 2022 Annual Report
52
Recoverable Amount of Goodwill
Impairment testing has been undertaken at 30 June
2022 for the CGU for goodwill or where there is an
indication of impairment. The Group has 1 CGU for
which impairment testing has been completed for
goodwill – Pure Foods Tasmania Products.
The recoverable amount for the 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 CGU is:
Pure Foods Tasmania Products
Sales growth rate (CAGR 6 years)
17.1%
Production costs growth rate (CAGR 6 years)
10.9%
Indirect costs growth rate (CAGR 6 years)
1.5%
Long-term growth rate
3.0%
Pre-tax discount rate
11.2%
Management has based the value-in-use calculations
on budgets. These budgets use historical weighted
average growth rates to project revenue. Costs are
calculated considering 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 CGU
operate. Discount rates are pre-tax and are adjusted to
incorporate risks associated with a particular segment.
Changes to Key Inputs Within the
Value in Use Calculations:
Sales growth rate – Sales growth rates were increased
as at 30 June 2022 to reflect market growth rates, the
strategic initiatives adopted by the Board and product
price increases.
Production costs – Production costs as a percentage
of revenue are forecast to increase over the forecast
period which is reflective gross margin improvement
through a focus on value chain profitability and
management of input costs.
Long-term growth rate – Increased to 3.0% which is in
line with Reserve Bank of Australia’s economic outlook.
Pre-tax discount rate – The discount rate represents
the current market assessment of the risks relating
to the relevant CGU. In performing the value in use
calculations for the CGU, the Group has applied a pre-
tax discount rate of 11.2% (11.1% post tax).
Review Outcome
In completing the impairment review based on the
aforementioned, the value in use of the Pure Foods
Tasmania Products business exceeded its carrying value.
Other Intangible Assets
Intangible assets acquired separately are capitalised
at cost. Following initial recognition, the cost model
is applied to the class of intangible assets. The useful
lives of these intangible assets are assessed to be
either finite or indefinite.
Where amortisation is charged on assets with finite
lives, this expense is taken to the statement of
comprehensive income. Intangible assets, excluding
development costs, created within the business are
not capitalised and expenditure is charged against
profits in the year in which the expenditure is incurred.
Intangible assets are tested for impairment where
an indicator of impairment exists, and in the case of
indefinite lived intangibles annually, either individually
or at the cash generating unit level. Useful lives are
also examined on an annual basis and adjustments,
where applicable, are made on a prospective basis.
Research and Development Costs
Research costs are expensed as incurred.
Development expenditure incurred on an individual
project is carried forward when its future recoverability
can reasonably be regarded as assured.
An entity shall assess whether the useful life of an
intangible asset is finite or indefinite and, if finite, the
length of, or number of production or similar units
constituting, that useful life. An intangible asset shall
be regarded by the entity as having an indefinite useful
life when, based on the analysis of all of the relevant
factors, there is no foreseeable limit to the period
over which the asset is expected to generate net cash
inflows for the entity.
The carrying value of development costs is reviewed
for impairment annually when the asset is not yet
in use, or more frequently when an indicator of
impairment arises during the reporting year indicating
that the carrying value may not be recoverable.
Note 13: Trade and Other Payables
2022
2021
$
$
Trade and other payables
1,737,570
1,769,479
Total trade and other payables
1,737,570
1,769,479
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 12: Intagible Assets continued…
Notes to the Financial Statements
Pure Foods Tasmania Limited | 2022 Annual Report
53
Note 14: Provisions
2022
2021
$
$
Current
Employee benefits
232,833
159,692
232,833
159,692
Non-current
Employee benefits
17,992
29,192
17,992
29,192
Total provisions
250,825
188,884
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
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 15: Borrowings
2022
2021
$
$
Current
Borrowings
270,184
724,920
270,184
724,920
Non-current
Borrowings
975,948
872,303
975,948
872,303
Total borrowings
1,246,132
1,597,223
Notes to the Financial Statements
Pure Foods Tasmania Limited | 2022 Annual Report
54
Note 16: Issued Capital
2022
2021
Nº of shares
$
Nº of shares
$
Fully paid ordinary shares
(post-consolidation)
61,816,470
16,643,159
54,217,374
9,402,889
Movements in Ordinary Share Capital
Date
Details
Ordinary shares
$
1 July 2021
Balance at beginning of period
54,217,374
9,402,889
Shares issued and options exercised
7,599,096
7,597,399
Issue costs
-
(357,129)
30 June 2022
Balance at end of period
61,816,470
16,643,159
Terms and Conditions of Issued Capital
Ordinary shares entitle the holder to participate in
dividends and the proceeds on winding up of the
Group 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 Group. The holder is not entitled to
vote at General Meetings.
There were 2,800,000 share options issued as at 30
June 2022.
Number of Options
2022
2021
Movement in options:
Balance at beginning of
year
7,674,096
12,800,000
Options granted to
raise capital
-
-
Options redeemed/lapsed
(4,874,096)
(5,125,904)
Balance at end of year
2,800,000
7,674,096
Recognition and Measurement
Ordinary shares are classified as equity, with ordinary
share capital being recognised at fair value of the
consideration received by the Group. Any transaction
costs arising on the issue of ordinary shares are
recognised directly in equity as a reduction of the
share proceeds received.
The Group announced on 7 October 2021 that
sophisticated and professional investors had agreed to
subscribe for $5.3m (before costs of the offer) via the
issue of unsecured convertible notes.
The convertible notes have a two-year term (with a
Group elective to extend to 3 years), a 7.5% per annum
interest rate and a conversions price based on the
lower of:
a) 90.0% (or 80.0% if there is an extension of the
maturity date) of the VWAP prior to conversion; or
b) $0.5 per share.
Notes to the Financial Statements
Pure Foods Tasmania Limited | 2022 Annual Report
55
Note 17: Cash Flow Reconciliation
2022
2021
$
$
Cash and cash equivalents
2,486,256
1,624,116
Total cash and cash equivalents
2,486,256
1,624,116
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.
(a) 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:
2022
2021
$
$
Profit/(loss) after tax
(3,338,315)
(716,309)
Adjustments for non-cash items
Depreciation
588,531
455,124
Share based payment
-
6,985
Interest on leased assets
-
29,089
Bad debts
1,132
-
(Gain)/loss on modification of leases
(214)
-
(Gain)/loss on disposal of assets
(70)
Changes in assets/liabilities
(Increase)/Decrease in trade & other receivables
(52,436)
(804,376)
(Increase)/Decrease in inventories
(325,204)
(688,270)
(Increase)/Decrease in deferred taxes
(922,734)
(240,200)
Increase/(Decrease) in trade payables & other liabilities
(31,909)
1,228,228
Increase/(Decrease) in employee provisions
61,941
82,403
Net Cash provided by (used in) Operating Activities
(4,019,278)
(647,326)
Notes to the Financial Statements
Pure Foods Tasmania Limited | 2022 Annual Report
56
Note 18: 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.
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 principal
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:
2022
2021
$
$
Financial assets
1,263,014
1,098,324
Cash and cash equivalents
2,486,256
1,624,116
Net exposure
3,749,270
2,722,440
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.
Notes to the Financial Statements
Pure Foods Tasmania Limited | 2022 Annual Report
57
Note 18: Financial Risk Management continued…
At 30 June 2022, if interest rates had moved, as
illustrated in the table below, with all other variables
held constant, post-tax profit/(loss) and equity would
have been affected as follows:
2022
2021
$
$
Judgements of reasonably possible movements
+ 0.5% (50 basis points)
16,692
3,582
- 0.5% (50 basis points)
(16,692)
(3,582)
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.
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 securitise 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 8" on page 48.
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 19: 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 is 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.
Notes to the Financial Statements
Pure Foods Tasmania Limited | 2022 Annual Report
58
Note 20: Parent Entity Information
2022
2021
$
$
Financial position
Current assets
180,633
357,692
Non-current assets
15,312,438
5,446,637
Total assets
15,493,071
5,804,329
Current liabilities
69,610
38,323
Non-current liabilities
1,189,203
-
Total liabilities
1,258,813
38,323
Net assets
14,234,258
5,766,006
Contributed equity
14,234,258
5,766,006
Financial performance
Total revenue
182,529
199,880
Profit/(loss) for the period
821,440
57,384
Note 21: Subsidiaries
Equity holding
Entity
Country of incorporation
2022
2021
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%
The Cashew Creamery Pty Ltd
Australia
100%
100%
Lauds Plant-Based Foods Pty Ltd
Australia
100%
100%
Note 22: Contingent Liabilities and Assets
There are no matters which the Group consider would result in a contingent liability or asset as at the date of
this report.
Note 23: Commitments for Expenditure
Capital Commitments – Capital Expenditure Projects
2022
2021
$
$
Payable
- Not longer than one year
517,073
-
- longer than one year but no longer than five years
-
-
- Longer than five years
-
-
Total payable
517,073
-
Notes to the Financial Statements
Pure Foods Tasmania Limited | 2022 Annual Report
59
Other Commitments – Operating Expenditure
Operating expenditure contracted but not included in the financial statements:
2022
2021
$
$
Payable
- Not longer than one year
-
-
- longer than one year but no longer than five years
-
-
- Longer than five years
-
-
Total payable
-
-
Note 24: Events Occurring After Balance Date
The Group announced on 28 July 2022 the launch of a placement to institutional and sophisticated investors to
raise approximately $2.55m (‘Placement’), and a rights offer of 1 fully paid ordinary share in PFT (‘New Share’) for
every 3 fully paid ordinary shares held in PFT (‘Entitlement Offer’) that raised a further $1.83m. The shortfall of the
rights issue, once completed, will potentially raise an additional $1.57 million. The key purpose of the Offer is to
fund continued growth in sales, expansion of production capacity, investment in automation to improve operating
efficiencies, secure key assets and exploit product expansion opportunities.
Other than those 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 25: Related Party Transactions
Key Management Personnel Compensation
The aggregate compensation of the key management personnel of the entity is set out below:
2022
2021
$
$
Short term benefits
301,583
253,615
Post-employment benefits
30,080
23,995
Share based payment
-
-
Total key management personnel compensation
331,663
277,610
Transactions with Related Parties
The Group acquired the following goods and services as follows:
2022
2021
$
$
Ken Fleming for consultancy services
25,369
25,000
Total transactions with related parties
25,369
25,000
Note 26: Auditor’s Remuneration
2022
2021
$
$
Auditors of the parent entity
42,000
42,000
Other assurance services
-
-
Total auditor’s remuneration
42,000
42,000
Note 26: Commitments for Expenditure continued…
Notes to the Financial Statements
Pure Foods Tasmania Limited | 2022 Annual Report
60
Note 27: Employee Securities Incentive Plan
During the year the employee securities incentive plan that was in place was ceased. There presently isn't an
employee securities incentive plan in place. The following table details the share options in place at 30 June 2022.
Share Options Granted
Share options outstanding at 30 June 2022 are as follows:
Grant date
Expiry date
Exercise
price
Balance at
start of year
Granted
Exercised
Expired
Balance at
end of year
$
28/04/2020
30/04/2023
0.40
-
-
-
-
2,800,000
2,800,000
The options hold no voting or dividend rights and are not transferable.
Note 28: 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 Group and its
controlled entities as a group for the financial year
ended 30 June 2022. 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
20" on page 59.
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 Group:
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.
The Group 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
21" on page 59.
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.
Notes to the Financial Statements
Pure Foods Tasmania Limited | 2022 Annual Report
61
The area involving significant estimates or judgements
is the 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.
(f) Comparatives
Where necessary, comparative information has been
reclassified and repositioned for consistency with
current year disclosures.
(g) New Standards and Interpretations
Not Yet Adopted
Certain new accounting standards and interpretations
have been published that are not mandatory for 30
June 2022 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.
Note 28: Summary of Significant Accounting Policies continued…
Notes to the Financial Statements
Pure Foods Tasmania Limited | 2022 Annual Report
62
Directors’ Declaration
For the Year Ended 30 June 2022
In accordance with a resolution of the Directors of Pure Foods Tasmania Limited, the Directors of the Group
declare that:
1. The financial statements and notes, as set out
on pages 18 to 45, 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 2022 and of the
performance for the year ended on that date
of the Consolidated Group;
2. In the Directors’ opinion there are reasonable
grounds to believe that the Group will be able to
pay its debts as and when they become due and
payable; and
3. 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 2022.
Signed in accordance with a resolution of the Directors
made pursuant to section 295(5) of the Corporations
Act 2001. This declaration is made in accordance with a
resolution of the Directors.
Michael Cooper
Managing Director
31 August 2022
Pure Foods Tasmania Limited | 2022 Annual Report
63
Pure Foods Tasmania Limited | 2022 Annual Report
64
Independent Audit Report
For the year ended 30 June 2022
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 2022, 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 Group 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 2022
and of its consolidated financial performance for
the year then ended on that date; and
ii complying with Australian Accounting Standards
and the Corporations Regulations 2001.
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
Group 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 Group, 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.
Going Concern Assumption
We draw attention to "Note 1" on page 43, which
indicates that the Group incurred a net loss of
$3,338,315 and a net cash outflow from operations
of $4.0m during the year ended 30 June 2022. These
conditions, along with other matters set forth in Note
1, provide the reasoning for the assessment of the
financial statements being prepared as a going concern.
Our opinion is not modified in respect of this matter.
Pure Foods Tasmania Limited | 2022 Annual Report
65
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 2022. 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.
Key audit matter
How our audit addressed the key audit matter
Valuation of goodwill
refer to "Note 12" on page 52
The Group holds intangible assets totalling $2.5m as
at 30 June 2022, of which $1.9m relates to goodwill.
Under Australian Accounting Standards, the Group is
required to assess goodwill for impairment at least
annually.
The Group performed an impairment assessment for
the Pure Foods Tasmania Products 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 is based on budget
forecasts.
The Group did not identify any impairment for the
CGU.
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 Pure Foods Tasmania Products 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 FY22 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 CGU’s are 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 12 in light of the requirements of
Australian Accounting Standards
Other Information
The Directors are responsible for the other
information. The other information comprises the
information included in the Group’s annual report
for the year ended 30 June 2022 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 Group 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 Group 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 Group or to cease operations,
or has no realistic alternative but to do so.
Independent Audit Report
Pure Foods Tasmania Limited | 2022 Annual Report
66
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 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 Group
to express an opinion on the financial report. We
are responsible for the direction, supervision, and
performance of the Group 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 12 to 16 of the Directors’ report for the year
ended 30 June 2022.
In our opinion, the Remuneration Report of Pure
Foods Tasmania Limited for the year ended 30 June
2022 complies with s 300A of the Corporations Act 2001.
Responsibilities
The Directors of the Group 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
31 August 2022
Independent Audit Report
Pure Foods Tasmania Limited | 2022 Annual Report
67
There are 61,816,470 fully
paid ordinary shares, held
by 2,148 individual holders.
Pure Foods Tasmania Limited | 2022 Annual Report
68
Shareholder Information
As at 31 August 2022
1. Distribution of Equity Securities
Analysis of numbers of equity security holders by size of holding:
Holding Range
Holders
Total Units
% Issued Share
Capital
Above 0 up to and including 1,000
578
288,473
0.4
Above 1,000 up to and including 5,000
767
2,035,889
3.3
Above 5,000 up to and including 10,000
304
2,442,227
4.0
Above 10,000 up to and including 100,000
414
12,657,397
20.5
Above 100,000
85
44,392,484
71.8
Totals
2,148
61,816,470
100.0
2. Equity Security Holders
Twenty Largest Quoted 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):
Rank
Holder Name
Holding
% Issued
Share
Capital
1
Willar Pty Ltd
3,093,893
5.0
2
Ilwella Pty Ltd
2,553,849
4.1
3
BNP Paribus Nominees Pty Ltd
2,517,418
4.1
4
Quality Life Pty Ltd
2,362,246
3.8
5
Mr Timothy Tulloch, Brock Lewis & Mrs Catherine Anne Lewis
2,311,985
3.7
6
Daly Potato Company Pty Ltd
2,279,608
3.7
7
JAF Capital Pty Ltd
2,126,974
3.4
8
Rottcodd Pty Ltd
2,003,225
3.2
9
BFADM Pty Ltd
1,949,639
3.2
10
Twomaccas Pty Ltd
1,757,500
2.8
11
Bensam Investments Pty Ltd
1,527,341
2.5
12
Clement Holding Pty Ltd
1,256,513
2.0
13
Radiata Investments Pty Ltd
1,180,107
1.9
14
Mr Craig McCourtie
1,000,952
1.6
15
Mr Alexander David Beard & Mrs Marie Pascale Beard
1,000,000
1.6
16
Fairisle Holdings Pty Ltd
948,586
1.5
17
Suetone Pty Ltd
899,579
1.5
18
Boman Asset Pty Ltd
824,179
1.3
19
HSBC Custody Nominees (Australia) Limited
742,997
1.2
20
Krisami Investments Pty Ltd
730,202
1.2
Totals
33,066,793
53.3
Total Issued Capital
61,816,470
100.0
3. Voting Rights
The voting rights attached to ordinary shares are
set out below:
On a show of hands every member present at a
meeting in person or by proxy shall have one vote
and upon a poll each share shall have one vote.
4. Use Of Cash
Cash and assets readily convertible to cash held
by the Group for the reporting period were used
in a way consistent with its business strategy and
objectives.
Pure Foods Tasmania Limited | 2022 Annual Report
69
5. Convertible Notes
The Group announced on 7 October 2021 that
sophisticated and professional investors had agreed
to subscribe for $5.3m (before costs of the offer) via
the issue of 5,300,000 unsecured convertible notes.
The convertible notes have a two-year term (with the
Company able to elect to extend to 3 years), a 7.5% per
annum interest rate and a conversions price based on
the lower of:
a) 90% (or 80% if there is an extension of the
maturity date) of the 10-day trading VWAP prior to
conversion; or
b) $0.50 per share. (“Conversion Price”)
As at 30th June 2022, the total $5.3m remained
outstanding, with no notes being converted in FY2022.
Interest was accrued in FY2022 totalling $262,479 and
paid to note holders on 14th July 2022. For illustrative
purposes only, if all the convertible notes had been
converted on 30 June 2022 the Conversion Price would
have been $0.171 per share and 30,994,152 ordinary
shares would have been issued.
A noteholder may elect to convert all or an amount
equal to or greater than $25,000 at any time.
Conversion of the notes by PFT can occur at any time
prior to Maturity Date, if a “Material Transaction”
occurs. A Material Transaction means (a) “Change
of Control Event”; (b) PFT enters into an agreement
for an acquisition where the consideration payable
by PFT is more than $10 million; or (c) PFT raises
more than $10 million (in aggregate) through the
issue of shares during the period between the issue
date of the convertible notes and the maturity date
of the convertible notes. On a Material Transaction,
PFT may elect to Convert all the Convertible Notes
then outstanding into such number of Shares as is
determined by dividing the Outstanding Total Amount
by the Conversion Price.
As at 30 September 2022, 500,000 convertible notes
have been converted into 3,209,559 ordinary shares.
The average conversion price of convertible notes
converted after 1 July 2022 up to 30 September 2022 is
$0.1558 per share.
Shareholder Information
Pure Foods Tasmania Limited | 2022 Annual Report
70
Shareholder Information
Pure Foods Tasmania Limited | 2022 Annual Report
71
Pure Foods Tasmania Pty Ltd
Level 2 / 179 Murray Street,
Hobart, Tasmania 7000
Phone: +61 (3) 6231 4233
Email: office@purefoodstas.com
www.purefoodstas.com