Despatch of 2022 Annual Report
ASX Release: 25 October 2022
Quickstep Holdings Limited (ASX:QHL) (Company) attaches its 2022 Annual Report for despatch to its shareholders.
The 2022 Annual Report has been authorised for release by the Board.
For further information please contact:
Mark Burgess - Managing Director
Stephen Gaffney - Chief Financial Officer
Quickstep Holdings Limited
Telephone: +61 2 9774 0300
Quickstep Holdings Limited
Telephone: +61 2 9774 0300
E: mburgess@quickstep.com.au
E: sgaffney@quickstep.com.au
‐ENDS‐
Important Information – Forward looking statements:
This release contains forward-looking statements and information that are necessarily subject to risks, uncertainties and assumptions.
Many factors could cause actual results, performance or achievements of the Company to be materially different from those expressed
or implied in this release including, amongst others, changes in general economic and business conditions, regulatory environment,
exchange rates, results of advertising and sales activities, competition, and the availability of resources. Should one or more of these
risks or uncertainties materialise, or should underlying assumptions prove incorrect, actual results may vary materially from those
described in this release. Except as required by law, the Company assumes no obligation to update or correct the information in this
release. To the maximum extent permitted by law, the Company and its subsidiaries and officers do not make any representation or
warranty as to the likelihood of fulfilment of any forward-looking statements and disclaim responsibility and liability for any forward-
looking statements or other information in this release.
Principal address: 361 Milperra Road
Bankstown Airport NSW 2200
www.quickstep.com.au
Tel: (02) 9774 0300
Fax: (02) 9771 0256
Email: info@quickstep.com.au
ASX Code: QHL
CLEVER
COMPOSITE
SOLUTIONS
Annual Report 2022
CLEVER COMPOSITE SOLUTIONS 2022
HIGHLIGHTS
OUR ACHIEVEMENTS
$86.7m
Sales revenue up 1.9%
$0.8m
Statutory NPAT
$3.3m
Operating cash flow
NEW COLLABORATIONS
SWOOP AERO
Equity investment and
series production
BOEING SPACE
Teaming Agreement JP9102
DRONAMICS
Manufacturing MOU
JETSTAR
V2500 Nacelle Agreement
Jamie Warwick, Manufacturing Operator
CLEVER COMPOSITE SOLUTIONSCLEVER COMPOSITE SOLUTIONSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT 1
17
25
72
74
CONTENTS
2022 Highlights
Chair’s Report
CEO’s Report
Director’s Report
01
02
06
10
Remuneration Report
Financial Report
Shareholder Information
Corporate Directory
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTFINANCIAL REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORYQUICKSTEP ANNUAL REPORT 2022 2
CHAIR’S
REPORT
CHAIR’S
CHAIR’S
REPORT
REPORT
The 2022 financial year was a period of both success and challenge for Quickstep. Navigating through the
second year of the COVID pandemic threw up a number of operational challenges, especially in the second
half of the financial year, which I am pleased to report were handled well by the organisation. This is especially
true given that global supply chains were adversely affected by the pandemic and that many of Quickstep’s
customers and suppliers are located around the world. The Managing Director’s report gives more detail on the
operational challenges and successes of the past financial year.
I would like to specifically ‘call out’ Quickstep’s safety performance
Quickstep is fortunate to be operating in a number of business lines
for FY22. Our preferred measure of safety performance is the Total
that are expanding globally and offer our company the prospect
Recordable Injury Frequency Rate (TRIFR) which is the number of
of significant future growth. During the past year, the company has
recordable injuries per million hours worked.
Quickstep’s TRIFR rate improved by approximately 40% in FY22 to
been re-organised into three lines of business, each of which offers a
number of growth opportunities for Quickstep. The business units are:
13.2, which significantly exceeded the stretch target that the company
– Aerostructures which is focused on our traditional defence
set itself at the beginning of the year. I am particularly pleased about
business,
this safety improvement, especially in the light of the stress caused by
the evolving pandemic during the year.
– Aftermarket (QAS) which is currently centred on our recently
purchased MRO facility in Tullamarine in Victoria, and
– Applied Composites which is predominantly developing our
presence in the rapidly growing drone industry.
Board of Directors – Lis Mannes, Patrick Largier, Mark Burgess, Leanne Heywood, Kym Osley, Jillian McGregor – Company Secretary
2022 HIGHLIGHTSCEO’S REPORTDIRECTORS’ REPORT 3
PATRICK LARGIER
Chair
Winner
Best Emerging MRO
Aviation Week Network MRO
Asia Pacific Awards 2022
Winner
Manufacturing |
Maintenance Business
of the Year
Australian Aviation Awards 2022
Adam Cowie, Quality Inspection Lead
Quickstep is fortunate to be operating in a number
of business lines that are expanding globally and
offer our company the prospect of significant future
growth. During the past year, the company has been
re-organised into three lines of business, each of which
offers a number of growth opportunities for Quickstep.
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTFINANCIAL REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY 4
CHAIR’S
REPORT
CHAIR’S REPORT (CONTINUED)
As many of our shareholders would have seen in the media, there is
The rapid evolution of the commercial drone industry is now well and
a revived focus on defence investment in the country with particular
truly underway and Quickstep has positioned itself as a key player
emphasis on investing in Australia’s sovereign defence capability and
with a number of emerging drone companies. As we have previously
intellectual property. As we have previously noted there are emerging
reported, Quickstep has made seed investments in a couple of these
opportunities in Australia’s space and guided weapons initiatives.
drone companies. More importantly, your company has already
While some of these opportunities can take a while to mature, they
secured orders to build drones for the industry. This work will be
do provide particular growth opportunities for our Aerostructures
undertaken initially from our Geelong facility, but it is our expectation
business.
The new Labor government has indicated strong support for local
advanced manufacturing with the benefits that this can bring to
Australia. Quickstep is well placed to be an active participant in the
opportunities that arise from this focus.
Quickstep’s purchase of Boeing’s MRO (maintenance, repair &
that we will quickly need to transition to a larger composites
manufacturing facility in Australia to accommodate expected future
orders. Given our evolving reputation in this industry, Quickstep is
getting regular approaches from the global drone market ranging
from relatively small data-focussed drones to very large drones in
the cargo segment. With much interest coming from the large USA
market, Quickstep is in the process of evaluating opportunities and
operations) facility in Tullamarine in early 2021 has positioned the
ways to develop our drone capability in this key region.
company well to service the resurgent airline industry. Our QAS
business is rapidly gaining recognition in the aircraft industry, and we
were obviously delighted to win our first contract with Jetstar in FY22.
An interesting and sometimes overlooked competitive advantage
of our Melbourne based MRO facility is that it offers Australian
based airlines significant carbon reduction opportunities for aircraft
maintenance as larger components no longer have to be flown across
I, together with my fellow non-executive directors, would like to thank
Mark Burgess and his leadership team for the work they have put
into managing the operational side of the business over the last year,
whilst simultaneously focusing on delivering significant progress
in the development of new business growth opportunities in the
company’s three lines of business.
the world for repair. In an era of increasing awareness of the drivers
On behalf of the Board of Directors, I would like to close my annual
of climate change, we believe that this will become an increasingly
report to shareholders by thanking all Quickstep employees for their
important consideration for all airlines.
contributions over the past year and by acknowledging their role in
enabling the business to navigate its path through the pandemic. I
would also like to thank our shareholders for their continued support
of, and investment in Quickstep.
Susan Fay, Quality Inspector
PATRICK LARGIER
Chair
2022 HIGHLIGHTSCEO’S REPORTDIRECTORS’ REPORT 5
Rhea Garcia, Manufacturing Operator
“As many of our shareholders would have
seen in the media, there is a revived
focus on defence investment in the
country with particular emphasis
on investing in Australia’s
sovereign defence capability
and intellectual property.”
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTFINANCIAL REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY 6
CEO’S
REPORT
CEO’S
CEO’S
REPORT
REPORT
Quickstep’s financial year 2022 was truly a tale of two halves. On almost all metrics, H1 FY22 was the best
half year performance ever posted by the company and we undertook our first ever investor day in March
2022 with great confidence in the outlook. However, H2 was impacted by a series of unprecedented operating
challenges. No manufacturing business can effectively function when COVID absenteeism runs at up to 20%,
pandemic related supply chain issues abound, equipment reliability is affected by the consequential labour
and parts shortages and, just for some extra challenge, five working days are lost to flooding.
It is a sign of the resilience and strength of our business that we have been able to not just recover our
core manufacturing operations, but in parallel work through the implementation of a new management team,
business reorganisation and targeted rationalisation program. We have also driven growth opportunities
across all lines of business during the same period.
Josh Scanlon – Business Leader Aerostructures and Mark Burgess CEO & Managing Director
2022 HIGHLIGHTSCHAIR’S REPORTDIRECTORS’ REPORT 7
MARK BURGESS
CEO & Managing Director
Under New Managment
Growth in multiple
business (LoB): Aerostructures, Aftermarket
opportunities into contracts.
Throughout the course of FY22 we
welcomed a new Chief Financial Officer
(Stephen Gaffney), new Business Leader
Aerostructures (Josh Scanlon), new Chief
Operating Officer (Demi Stefanova) and
promoted Steve Osborne to a new Business
Leader Applied Composites role. In total, five
of seven senior leadership roles changed
during the year bringing new focus, energy
and experience to the delivery of our
strategy
As part of the change program we also
introduced a new organisational structure
with three distinct and focused lines of
and Applied Composites. This change
ensures strategic clarity and more efficient
resource allocation across the Group. These
LoB are supported by shared services:
Finance & IT, People & Culture, Technology &
Partnerships, and Operational Excellence.
Our team and organisational structure
creates the organisational baseline to
optimise current operations and convert the
formidable growth pipeline we have ahead
of us.
dimensions and geographies
The year saw continued progress across
the Group with consistent performance on
core Aerostructures programs, including
the negotiation of multi-year agreements
across all F-35 contracts, teaming on space
programs and large cargo drones, as well as
extensive business development activity and
customer proposals relating to the Guided
Weapons Enterprise. The Aerostructures
business has experienced a significant
surge in the opportunity pipeline (primarily
in the USA and Europe) and more resources
have been allocated to converting those
We continue to see good progress in the
Quickstep Aerospace Services business,
most pleasing of all being the announcement
of a major V2500 nacelle contract from
Jetstar Airways on their Airbus A320 fleet
during H2. Our team, based at our facility
in Melbourne Airport, were recognised with
an international industry award in 2022 for
their ongoing efforts to build a new and
strategically important onshore capability
in the commercial aerospace aftermarket.
Negotiations with large international OEM
partners commenced during the year, which
will allow us to continually build the QAS
revenue pipeline.
We also executed a wide range of urgent
repairs for airline and charter customers
during the year, some of which had never
been undertaken in Australia before.
The company also launched a new LoB:
Applied Composites. This business
continues to commercialise our proprietary
manufacturing processes (QureTM and
AeroQureTM) and deliver on existing
customer commitments in medical devices
and transportation sectors. Substantial
future growth however, will come from our
strategic move into the complex unmanned
vehicle engineering, manufacturing and
support segment. In addition to the existing
investment made in Carbonix, we announced
a further equity position in Swoop Aero –
with both these companies now entrusting us
with manufacturing contracts. Our business
development activity in the USA and Europe
increased markedly. This business will
increasingly become a growth engine for the
Group.
“Our team and organisational structure creates
the organisational baseline to optimise current
operations and convert the formidable growth
pipeline we have ahead of us.”
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTFINANCIAL REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY 8
CEO’S
REPORT
CEO’S REPORT (CONTINUED)
Mark Burgess CEO & Managing Director & Demi Stefanova, COO
People and purpose
Outlook
We enable people to do great things in aerospace globally, by
There is no doubt that a post pandemic operating environment will
providing the services and composite solutions needed today and
remain very turbulent for some time. Supply chain uncertainty will
beyond. We can only do this through a world-class team. We have
continue, attrition will remain elevated and the Australian labour
undertaken extensive investment in our people this year through a
market will be problematic. Your company has demonstrated a
key cultural change program - Optimum. We are trusted by the worlds
remarkable ability to not just weather storms, but to lean in and drive
most trusted because:
– Creativity is the key to overcome any obstacle
– Agile is a way of thinking beyond just a way of working
deliver.
outstanding performance across all aspects of the business. The
growth outlook is strong, but requires reliable access to capital to
I would like to thank, once again, the Quickstep Board, my leadership
team and every employee within the business for their pride and
dedication to building a unique Australian aerospace and composites
success story. Well done.
– Smarter solutions are more sustainable solutions
– When we say “we’re in” we are ALL IN.
Doing great things ourselves and enabling others to do great things
is not enough. The way in which we do this is equally important. We
invest in our people, with a remarkable percentage of vacancies
filled by internal promotions. We empower our team in ways large
companies cannot, we care about equity and our communities,
and increasingly, we are focused on reducing our impact on the
environment.
Our formal Environmental, Social and Governance (ESG) planning
work commenced during the year. Whilst we are ISO14001 accredited,
we will be seeking to move well beyond compliance. Increasingly, our
commercial customers consider this to be a baseline requirement and
we believe our progress in ESG over the coming years will become a
key differentiator for us in the Australian market.
MARK BURGESS
CEO & Managing Director
2022 HIGHLIGHTSCHAIR’S REPORTDIRECTORS’ REPORT 9
“We continue to see good progress
in the Quickstep Aerospace
Services business, most pleasing
of all being the announcement
of a V2500 nacelle contract from
Jetstar Airways on their Airbus
A320 fleet during H2”
$86.7m
Sales revenue up 1.9%
$0.8m
Statutory NPAT
$3.3m
Operating cash flow
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTFINANCIAL REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY 10
DIRECTORS’
REPORT
Directors' Report
Directors
date of this report:
Mr. P Largier
Mr. M H Burgess
Mrs. L Heywood
Mrs. E Mannes
Principal Activities
Air Vice Marshal K Osley (Ret’d)
The Directors present their report on the consolidated entity consisting of Quickstep Holdings Limited and the entities
it controlled at the end of, or during, the year ended 30 June 2022. Throughout the report, the consolidated entity is
referred to as the “Group” or “Quickstep”.
The following persons were Directors of Quickstep Holdings Limited during the whole of the financial year and up to the
Mr. P Largier was appointed Chairman on 31 August 2020 and continues in office at the date of this report.
During the year the continuing principal activities of the Group consisted of:
•
•
•
•
production of parts for Northrop Grumman for the Joint Strike Fighter Project
production of C-130J wing flaps for Lockheed Martin
production of parts for the Joint Strike Fighter vertical tails for BAE Systems and Marand Precision Engineering
• manufacturing and development of parts using Qure technology
• maintenance, repair and overhaul of aircraft
continued development of technologies for scaled volume production.
Review of Operations
Total Revenue for the year ended 30 June 2022 was $86.7 million (FY21: $85.1 million) representing a 1.9% increase
on the prior year. The revenue increase is attributable to early revenue generation in the newly established Applied
Composites line-of-business and full year ownership of the acquired Aftermarket line-of-business.
Revenue and profitability from the Aerostructures line-of-business was heavily impacted in H2 FY22 from operational
factors including COVID-19 related absenteeism / supply chain disruption and a number of equipment reliability
issues, recovery from which was exacerbated by global labour and spare part shortages.
The FY22 $13.3 million Gross Profit (FY21: $14.6 million) represents a ($1.3 million or 1.8%) decrease. The fall in gross
profit is attributable to under recovered costs arising from lower facility production volumes.
The FY22 $1.8 million Operating Profit and FY22 ($0.1 million) Loss before Income Tax includes the favourable impact
of a $1.2 million foreign controlled entity legal accrual writeback.
Total bank debt as at 30 June 2022 was $9.8 million (FY21: $7.7 million) representing an increase of $2.1 million. The
bank debt increase is attributable to elevated inventory levels arising from the H2 FY22 operational challenges (as
noted).
Cash from operating activities of $3.3 million for FY22 was achieved despite significant inventory build and impacts of
H2 FY22 production delays. Investing Activity expenditure of $3.3 million supported investments made in both
Carbonix and Swoop Aero and in providing new capability, increased capacity and improve operational efficiency
across site operational facilities.
Quickstep Holdings Limited
2
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORT 11
Directors' Report
Material Risks
The material business risks faced by the Group that are likely to have an effect on the financial prospects of the Group
and how the Group manages these risks include:
-
Foreign exchange – the reliance on sales from a key customer which are billed in US dollars and sourcing of raw
material product in US dollars, directly impacts both sales and operating profit. The Group has adopted a
Foreign Exchange Hedging Policy which is considered to be suitable to the business. The risk associated with
exchange rate fluctuation is expected to continue.
-
Supply chain – the absence of alternate suppliers in some cases and disruption of supply chains by COVID-19
has the potential to disrupt production. Tight management of the supply chain has mitigated disruptions to
date however the risk remains high, particularly whilst COVID-19 impacts offshore supply chains and freight
routes in and out of Australia.
-
Equipment failure – an extended failure on critical equipment has the potential to disrupt production.
Preventative maintenance programmes, monitoring tools, critical spares stock and equipment supplier support
arrangements are in place to mitigate this risk.
-
-
Flooding – the area of Bankstown, where the Group’s Aerostructures line-of-business manufacturing site is
located, is susceptible to localised flooding from nearby tributaries. Whilst historical water egress on the site
itself has been minimal, employee access to site has been impacted for periods of time which has the potential
to disrupt production.
Revenue growth – the Group’s Aftermarket and Applied Composite lines-of-business are expected to be key
drivers of revenue and profit growth in future years. The likelihood of this growth materialising particularly for
the Aftermarket line-of-business depends on the volume of, and ongoing recovery in, commercial airline traffic,
particularly domestic post COVID-19 pandemic impacts..
No dividends have been paid during the financial year. The Directors do not recommend that a dividend be paid in
Dividends
respect of the financial year (2021: $ Nil).
Significant Changes in the State of Affairs
Events Since the end of the Financial Year
There were no significant changes in the state of affairs of the Group during the financial year.
In July 2022, the Group executed a new loan facility with Export Finance Australia for the amount of $5.0 million. The
term of the new facility is 18 months ending 31 December 2023. This new facility will be applied to fund additional
interim working capital requirements arising from H2 FY22 operational challenges. Furthermore, a customer cash
advance and accelerated customer payment terms have been negotiated in August 2022.
Other than the matters disclosed above, no matter or circumstance has arisen since 30 June 2022 that has significantly
affected the Group’s operations, results or state of affairs, or may do so in future years.
Shares under Options
There are Nil (2021 Nil) unissued ordinary shares of Quickstep Holdings Limited under option at the date of this report.
No options were granted during the year and since the end of the financial year.
Quickstep Holdings Limited
3
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTFINANCIAL REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY 12
DIRECTORS’
REPORT
Directors' Report
Information on Directors
The following information is current as at the date of this report
Mr. Patrick Largier
Mr Largier is an experienced non-executive director and has over 30 years’ executive experience in the
Independent Non-Executive Director - appointed 19 December 2019
oil, chemicals and industrial sectors in Australia, the UK and South Africa.
Prior to taking up non-executive director roles, he was Managing Director of Ludowici, an ASX-listed
global specialist mining services company with operations across five continents. Over five years he led
the company through a turnaround, followed by rapid international growth and the ultimate sale of the
company to the Danish group FLSmidth in 2012. He then became Managing Director of FLSmidth Pty
Limited for two years. Before this, Patrick spent 15 years in numerous business general manager roles at
ICI and Orica's Plastics and Chemicals Groups. His final role in the company was on Orica's Group
Executive team as General Manager - Strategy & Acquisitions. Before emigrating to Australia in 1992,
Patrick spent ten years with Shell in Cape Town and Shell International in London.
Since 2014 he has focussed his energies on non-executive director roles. He is currently a non-executive
director and chairman of several private and private equity companies across a range of industries.
Patrick has a Chemical Engineering degree (with honours) from the University of Cape Town and
Qualifications
completed the Advanced Management Program (AMP) at Harvard in 2004. He is also a Graduate of the
AICD.
Chair of the Board from 31 August 2020
Murray Irrigation Limited (resigned October 2021)
Ordinary shares in Quickstep Holdings Limited
323,000
Experience and
expertise
Special
responsibilities
Other current
Directorships
Interests in shares
and options
CEO and Managing Director - appointed 18 May 2017
Mr. Mark H Burgess
Mr. Burgess joined Quickstep in May 2017 bringing with him over 20 years’ experience in the global
aerospace and defence industry, where his successful delivery of profitable growth and complex projects
in advanced technology businesses has led to significant employer, customer and industry recognition.
Mr Burgess has held leadership roles of increasing responsibility across Europe, USA, the Middle East and
Asia Pacific.
Experience and
expertise
After a long career with BAE Systems covering sales, contracts, project and general management he
joined Honeywell in 2013 as Vice President Honeywell Aerospace, Asia Pacific. During his four years at
Honeywell, he was responsible for driving sustained profitable growth across a defence, space and
commercial helicopter portfolio.
Mr. Burgess has extensive experience of governance and stakeholder management, working with public,
private and not-for-profit sectors. He has managed several successful acquisition and post acquisition
projects and has held numerous board positions on subsidiaries, private companies and international
Mark holds a degree in Politics and Economics from the University of Hull and has completed several
post graduate studies in business and operations management.
joint ventures.
Chief Executive Officer
Qualifications
Special
responsibilities
Other current
Directorships
Interests in shares
and options
NIL
Ordinary shares in Quickstep Holdings Limited
420,972
Quickstep Holdings Limited
4
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORT 13
Directors' Report
Information on Directors
Experience and
expertise
and India.
Mrs. Leanne Heywood
Independent Non-Executive Director - appointed 21 February 2019
Mrs Heywood joined the Quickstep board in February 2019 and brings experience as an ASX listed non-
executive director, Audit and Risk committee and Nominations and Remuneration committee chair plus
broad general management experience gained through an international career in the sales and
distribution, mining, rural, government and not-for-profit sectors.
Leanne has extensive international and domestic marketing experience and brings international
customer relationship management, stakeholder management (including governments and investment
partners) and team leadership experience in China, Japan, Mongolia, Singapore, South America, Europe
Leanne is an experienced leader of transformational change having lead organisational restructuring,
disposals and acquisitions, including integration. She has strong skills across Marketing, Business
Analysis, Contracts, Procurement, Logistics, Accounting and Business Improvement along with an
advanced ability to facilitate complex negotiations.
Leanne holds an executive MBA from Melbourne Business School and a Bachelor of Business (majoring in
Accounting) from Charles Sturt University. She is a graduate of the AICD International Company Directors
Course and a Fellow of CPA Australia.
Diversity Committee.
Chair of the Audit, Risk and Compliance Committee and member of the Remuneration, Nomination and
Allkem Limited; Snowy Hydro Limited; Symbio Limited and Midway Limited
Ordinary shares in Quickstep Holdings Limited
19,523
Independent Non-Executive Director - appointed 22 August 2019
Mrs Mannes joined the Quickstep board in July 2019, she is a highly experienced C-Suite executive with
a career that has spanned both the fast-moving consumer and industrial goods industries.
She has international and domestic general and operations management experience and is currently the
Executive General Manager of CHEP Australia Limited - a wholly owned subsidiary of Brambles Limited
Mrs. Elisabeth Mannes
(ASX:BXB).
Lis brings global leadership skills and has a depth and breadth of experience in operational excellence
and business transformations, including managing for growth. Prior to joining CHEP she was Executive
General Manger of the Consumer and Industrial division of Pact Group Holdings (ASX:PGH), and previous
to this she was Operations and Business Development Director of Tip Top, a division of George Weston
Foods (GWF) - a wholly owned subsidiary of Associated British Foods (ABF.L). Her skill set includes
Business Strategy, P&L Management, Human Resources, Procurement and Operational Excellence. She
also has a strong compliance focus with deep knowledge of the practice of Quality Assurance and Health
& Safety management.
She was a founder board member of the National Association of Women in Operations (NAWO).
Lis is a Chartered Engineer (CEng) and a Fellow of the UK Institution of Mechanical Engineers (FIMechE).
She holds an MBA, completed the AMP at INSEAD and is a Graduate of the AICD.
Chair of the Remuneration, Nomination and Diversity Committee and member of the Audit, Risk and
Compliance Committee.
NIL
Qualifications
Special
responsibilities
Other current
Directorships
Interests in shares
and options
Experience and
expertise
Qualifications
Special
responsibilities
Other current
Directorships
Interests in shares
Ordinary shares in Quickstep Holdings Limited – (held in spouse’s
42,176
and options
name)
Quickstep Holdings Limited
5
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTFINANCIAL REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY
14
DIRECTORS’
REPORT
Directors' Report
Information on Directors
Independent Non-Executive Director - appointed 11 June 2020
Air Vice Marshal Kym Osley (Ret’d)
Air Vice-Marshal Osley joined the Quickstep board in June 2020 and has over 45 years of Defence and
aerospace experience including prior experience as the Program Manager of the Australian F-35 Joint
Strike Fighter Program. Kym retired in 2021 from his full-time position as a Managing Director in the
international consulting firm of PricewaterhouseCoopers, working with Government and Defence
clients, and has taken a part-time position supporting Defence industry within Investment NSW. Kym
has extensive international experience with Defence and aerospace industry gained through various
Defence-related appointments in the UK and the US, and through his previous work as a Reservist
officer promoting exports as a military specialist and leader in Team Defence Australia. He was awarded
a Defence Industry Service Commendation by the Minister for Defence in 2019 for leading PwC teams
that have been supporting future Defence capability planning since 2016. Earlier in his military career,
Kym was an aviator who flew in F-111, Phantom and F-18 aircraft with the RAAF and USAF. He was
awarded a Conspicuous Service Cross in 1997 and made a Member of the Order of Australia in 2008 for
services to Defence.
Board of a space-related company.
Kym is currently the Chair of the Australian Air Force Cadet Foundation and on the Strategic Advisory
Kym is a graduate of the Harvard Business School (Advanced Management Program) and is a Fellow of
the Centre for Defence and Strategic Studies. He has a Master of Arts (International Relations), Master of
Defence Studies, a BSc (Physics) and a Graduate Diploma of Management Studies and is a Graduate of
Member of the Audit, Risk and Compliance Committee.
Ordinary shares in Quickstep Holdings Limited
55,000
Experience and
expertise
Qualifications
Special
responsibilities
Other current
Directorships
Interests in shares
and options
the AICD.
NIL
Company Secretary - appointed 31 July 2020
Ms. Jillian McGregor
Ms. McGregor has approximately 20 years’ experience as a corporate lawyer and 9 years’ experience as a
company secretary of ASX listed companies. She has regularly advised companies and directors on
compliance with the Corporations Act 2001 (Cth), ASX listing rules and other corporate legal matters.
Ms. McGregor holds a Bachelor of Laws and Bachelor of Commerce (Merit) from the University of NSW and
holds a Graduate Diploma of Applied Corporate Governance from the Governance Institute of Australia
She is currently the Company Secretary of ASX listed and unlisted companies.
Ordinary shares in Quickstep Holdings Limited
4,400
Experience and
expertise
Qualifications
Other current
roles
Interests in shares
and options
Board Structure & Director Independence
The Company continually monitors the structure and performance of the Board to ensure it is of an appropriate size,
composition and skill to lead the Company and meet its current governance and strategic needs.
The Chair manages the Board to achieve responsive and effective business outcomes with highly committed Directors.
Quickstep has a Remuneration, Nomination and Diversity Committee (RND Committee), whose responsibilities include
the development and on-going review of Board competencies, structure, performance and renewal. Both the RND
Committee Charter and “Policy and Procedure for Selection and Appointment of Directors” are accessible from the
Company’s website as follows.
The Policy and Procedure for Selection and Appointment of Directors includes a matrix of skills that are considered
necessary within the non-executive Director group to facilitate an effective and efficient Board. The RND Committee
periodically reviews both this matrix and the Directors’ actual skills mix to ensure they satisfy the current and
immediately foreseeable needs of the Company.
Quickstep Holdings Limited
6
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORT 15
Directors' Report
The Board maintains a varied level of tenure amongst its Directors, which is seen as essential for its effective functioning
given the significant growth and change experienced by Quickstep in recent years. This has resulted in both an influx of
fresh ideas and the retention of sufficient Quickstep specific understanding to optimise strategic and operational
changes. As the business evolves this is continually reviewed.
The Board is committed to a majority of its Directors being independent to ensure the Board acts in the best interests
of the entity itself, its security holders and stakeholders generally. Director independence is assessed on a regular basis,
and all Directors are required to advise the Board of any actual or potential conflicts of interest as they arise, with any
such conflicts tabled at Board meetings.
In assessing independence the Board considers a number of factors which include, but are not limited to, the “Factors
relevant to assessing the independence of a Director” listed in Recommendation 2.3 of the Corporate Governance
Principles and Recommendations 3rd Edition established by the ASX Corporate Governance Council (‘the ASX Principles
and Recommendations”).
Directors’ Meetings
The numbers of meetings of the Company's board of Directors and of each board committee held during the financial
year ended 30 June 2022, and the numbers of meetings attended by each Director were:
Director
Board Meetings
Audit, Risk and Compliance
and Diversity
Committee Meetings
Committee Meetings
Remuneration, Nomination
HHeelldd
AAtttteennddeedd
HHeelldd
AAtttteennddeedd
HHeelldd
AAtttteennddeedd
Mr. P Largier
Mr. M H Burgess
Mrs. L Heywood
Mrs. E Mannes
AVM K Osley (Ret’d)
10
10
10
10
10
10
10
10
10
10
-
-
4
4
4
2
3
4
4
4
-
-
4
4
-
-
4
4
4
-
Insurance of Officers and Indemnities
Except as indicated below, the Group has not otherwise, during or since the end of the financial year, indemnified or
agreed to indemnify an officer of the Group or of any related body corporate against a liability incurred as an officer.
During the financial year, Quickstep Holdings Limited paid a premium in respect of a Directors’ and officers’ liability
insurance policy, insuring the Directors of the Company, the Company Secretary and all executive officers of the
Company and Group against a liability incurred as a Director, Secretary or executive officer to the extent permitted by
the Corporations Act 2001.
The Directors have not included details of the nature of the liabilities covered or the premium paid in respect of the
Directors’ and officers’ liability and legal expenses’ insurance contracts, as such disclosure is prohibited under the terms
Insurance
of the contract.
Indemnities
The Group has indemnified the Directors (as named in this report) and all executive officers of the Group and of any
related body corporate against any liability incurred as a Director, Secretary or executive officer to the maximum extent
permitted by the Corporations Act 2001.
Quickstep Holdings Limited
7
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTFINANCIAL REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY 16
DIRECTORS’
REPORT
Directors' Report
Auditor’s Independence Declaration
on page 65.
Rounding of Amounts
A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out
The Company is a kind referred to in ASIC Legislative Instrument 2016/191, relating to the “rounding off” of amounts in
the Directors’ report and financial statements. Amounts in the Directors’ report and financial statements have been
rounded off to the nearest thousand dollars, or in certain cases, to the nearest dollar.
Corporate Governance Statement
Quickstep’s Corporate Governance Statement can be found on the Company’s website.
This report is made in accordance with a resolution of Directors on 29 August 2022.
M H Burgess
Director
Sydney, New South Wales
Quickstep Holdings Limited
8
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORT
REMUNERATION
REPORT
17
The Directors present the Quickstep Holdings Limited 2022 remuneration report, outlining key aspects of the Group’s
remuneration policy and framework, and remuneration awarded this year.
Remuneration Report – Audited
The report is structured as follows:
Principles of Compensation
Details of Remuneration
Share Based Compensation
1.
2.
3.
4.
Analysis of Bonuses included in Remuneration
1. Principles of Compensation
Key Management Personnel (KMP) comprise the Directors of the company and the senior leadership team. KMP have
authority and responsibility for planning, directing and controlling the activities of the Group.
The report includes details relating to:
Executive Director
Mr. M H Burgess
Non-Executive Directors
Mr. P Largier
Mrs. L Heywood
Chief Executive Officer and Managing Director
Chair of Board
Chair of Audit, Risk and Compliance Committee and Member of Remuneration,
Nomination and Diversity Committee
Mrs. E Mannes
Chair of Remuneration, Nomination and Diversity Committee and Member of Audit,
AVM K Osley (Ret’d)
Member of Audit, Risk and Compliance Committee
Risk and Compliance Committee
Other Key Management Personnel
Mr. A J Tilley
Mr. S J Gaffney
Chief Financial Officer to 26 October 2021.
Chief Financial Officer from 27 October 2021.
The Board has established a Remuneration, Nomination and Diversity (RN&D) Committee which assists the Board in
formulating policies on and in determining:
•
•
personnel, and
proposed and plan eligibility criteria.
The remuneration packages of executive directors, non-executive directors and other key management
Cash bonuses and equity based incentive plans, including appropriate performance hurdles, total payments
If necessary, the RN&D Committee obtains independent advice on the appropriateness of remuneration packages given
trends in comparable companies and in accordance with the objectives of the Group. Further information on the role of
the committee is contained in the charter available on the Company’s website.
Quickstep has also developed an Executive Remuneration Policy and a Director Remuneration Policy that are available
on the Company’s website.
Compensation levels for KMP of the Group are competitively set to attract and retain appropriately qualified and
experienced directors and executives. The remuneration structures are designed to reward the achievement of strategic
objectives and achieve the broader outcome of value creation for shareholders. Compensation packages include a mix
of fixed compensation, short-term cash incentives and equity-based incentives.
Shares, options or rights may only be issued to Directors subject to approval by shareholders in a general meeting.
Quickstep Holdings Limited
9
QUICKSTEP ANNUAL REPORT 2022FINANCIAL REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY 18
Remuneration Report – Audited
1. Principles of Compensation
The Group does not have any scheme relating to retirement benefits for its KMP other than superannuation
contributions defined under its statutory obligations.
The Company’s policy is to provide executives with a competitive fixed compensation comparable to the median paid
by like sized companies undertaking similar work and offers additional short and long term incentives to allow the
executive to achieve top quartile compensation, if all performance hurdles are met. All incentives are capped.
The Company’s policy is to provide non-executive Directors with a fixed fee comparable to the median of that paid by
similar sized ASX listed companies operating in similar fields. Non-executive Directors are not eligible for participation in
any of the Company’s incentive schemes.
Fixed compensation
significant change in responsibilities.
Performance linked compensation
Group to key management personnel.
Short Term Incentive
Fixed compensation consists of base compensation, as well as statutory employer contributions to superannuation.
Compensation levels are reviewed annually through a process that considers current labour market rates, the individual's
contribution and overall performance of the Group. Compensation is also reviewed in the event of promotion or
Performance linked compensation includes both short and long term incentives and is designed to reward key
management personnel, excluding non-executive Directors, for meeting or exceeding the Company's business and their
personal objectives. Each individual’s performance linked compensation is capped as a percentage uplift of fixed
compensation. Other than as disclosed in this report, there have been no performance-linked payments made by the
KMP receive short-term incentives (STI) in cash on achievement of key performance indicators (KPI). Each year, the RN&D
Committee considers the appropriate KPIs and associated targets to align individual rewards to the Group’s
performance. These targets include measures related to the annual performance of the Group and specific measures
related to the activities of individual KMPs.
In FY22, a suite of Corporate KPIs were used, including two financial KPIs (weighting 40%), a KPIs relating to safety
(weighting 15%) and two growth focused KPIs (weighting 45%). The weighting of corporate KPIs used in the
determination of an executive’s STI is 70% for KMP excluding the Chief Executive Officer and 100% for the Chief Executive
Officer. The remaining 30% of KMP STI is determined by performance against personal KPIs which are aligned to the
delivery of Quickstep’s strategic plan.
The RN&D Committee is responsible for assessing whether the Corporate KPIs have been achieved and meet the criteria
set out at the beginning of the year. Each year threshold metrics are determined, with no STI payable to any executive
if these are not achieved. In FY22 each KPI had its own threshold/hurdle, target and stretch KPI.
Actual performance is then assessed against the threshold outcome, the target outcome and the stretch outcome.
Where performance falls below the threshold outcome, no payment is generally made against that KPI and where
performance exceeds the stretch outcome the maximum stretch is payable. Where performance falls between threshold
and target or target and stretch outcomes, an appropriate proportion of the KPI is payable. When the threshold target
is achieved, 33% of the weighting for the KPI is payable; when target is met, 66% of the weighting for the KPI is payable.
When threshold, target and stretch outcomes are achieved 100% of the weighting for the KPI is payable.
In FY22, Quickstep achieved an overall result of 49.6% out of a potential of 100%, against the corporate KPIs. The
threshold outcome was not reached for the two financial KPI’s (with no STI payable). Stretch outcomes were achieved
for Safety and one of the two growth KPI’s, and an outcome between threshold and target was achieved for the second
growth KPI.
After reviewing the overall achievement of KPIs based on the above process, the RN&D Committee has recommended
that an STI is payable in respect of FY22.
Quickstep Holdings Limited
10
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT
REMUNERATION
REPORT
19
Remuneration Report – Audited
1. Principles of Compensation
Long Term Incentive - Quickstep Incentive Rights Plan (IRP)
In November 2013 the Company established the Quickstep Incentive Rights Plan (IRP). The IRP was designed to facilitate
the Company moving towards best practice remuneration structures for executives and offers under the IRP have been
made to a number of executives since its introduction. The terms of the FY22 IRP for CEO and Managing Director was
approved by shareholders at the 2021 AGM on 18 November 2021 and the IRP terms for the management was approved
on 16 December 2021.
The IRP authorises the granting of Rights to executives of the Company, in the form of Performance Rights (PRs) and/ or
Deferred Rights (DRs) and/or Restricted Rights - (RRs) (together, Rights). These Rights represent an entitlement on
vesting to fully paid ordinary shares in the issued capital of the Company (Shares) with the total value of Shares being
equal to the value of vested Rights (number of vested Rights x market value of a Share). The value of the vested Rights
may be settled in cash, Shares or a combination of cash and Shares as determined the Board. PRs may vest if Performance
Conditions are satisfied. DRs may vest if service conditions are satisfied. There were no RRs granted in FY22 and none
arose from PRs or DRs granted during the year.
The Board has the discretion to set the terms and conditions on which it will offer PRs under the IRP, including the
performance conditions and modification of the terms and conditions as appropriate to ensuring the IRP operates as
intended. All PRs offered will be subject to performance conditions which are intended to be challenging.
The PRs awarded during FY22 are subject to a performance condition based on achieving a relative Total Shareholder
Return (TSR) equivalent to or in excess of the ASX Small Ordinaries Index (XSO) over the measurement period. The XSO
is an index of total shareholder return achieved by ASX listed small cap companies which combines both share price
movement and dividends paid during the measurement period (assuming that they are reinvested into shares). As a
general rule, Quickstep uses a measurement period of three (3) years with an anniversary date of 1 September each
year.
apply:
For vesting to occur the Company's TSR (share price movement plus dividends) over the measurement period must be
positive (i.e., if shareholders have not gained then PRs will not vest) relative to the XSO. If the XSO movement is negative
over the measurement period then vesting, if any, will be at the discretion of the Board (i.e., only applies if the Company
has outperformed a general fall in the small cap market by protecting against a similar fall in the Company's share price).
If the Company's TSR is positive and the movement in the XSO is also positive, then the following vesting scales will
Performance Level
Company’s TSR Relative to XSO Movement of the
Vesting %
Below Threshold
Threshold
Measurement Period
< Increase in the XSO
= Increase in the XSO
> 100% of XSO increase & < 110% of XSO increase
Target
110% of XSO increase
> 110% of XSO increase & < 120% of XSO increase
Stretch and Above
120% of XSO increase
0%
25%
Pro-rata
50%
Pro-rata
100%
For PRs issued to executives during FY22, testing of the TSR hurdle will occur on the third anniversary of the
commencement of the measurement period (“Test Date”). Any PRs granted will lapse if they do not vest at or earlier the
Test Date.
The Board has discretion to vary the level of vesting if circumstances during the measurement period warrant a different
level of vesting to bring forward vesting if such action is appropriate in the circumstances.
Quickstep Holdings Limited
11
QUICKSTEP ANNUAL REPORT 2022FINANCIAL REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY
20
Remuneration Report – Audited
1. Principles of Compensation
Long Term Incentive - Quickstep Incentive Rights Plan (IRP)
The IRP contains provisions concerning the treatment of vested and unvested rights in the event that a participant ceases
employment. Unless the Board determines otherwise, if a participant ceases employment in other than special
circumstances (death, total and permanent disablement, retrenchment, redundancy, permanent retirement from full-
time work with the consent of the Board or other circumstances determined by the Board), all unvested rights held by
the participant will lapse.
Unless the Board determines otherwise, if a participant ceases employment under special circumstances, rights that
were granted to the participant during the financial year in which the termination occurred will be lapsed in the same
proportion as the remainder of the financial year bears to the full year. All remaining rights for which performance
conditions have not been satisfied as at the date of cessation of employment will then remain "on foot", subject to the
original performance conditions. If the rights vest following cessation of employment and the value of the Shares is lower
at the vesting date than at the date of cessation of employment, then the value of the vested rights will be paid in cash
unless otherwise determined by the Board. This provision aims to align the value that is taxed with the value that may
be realised from the sale of Shares.
Non-Executive Directors’ Fees
Remuneration for all non-executive directors was approved at a board meeting on 14 October 2021. The table below
indicates the maximum annual fees based on Directors’ responsibilities at the date of this report. Non-executive
directors do not receive performance related compensation.
Non-Executive Directors
Director Fees p.a.
Committee Fees p.a.
Mr. P Largier
Mrs. L Heywood
Mrs. E Mannes
AVM K Osley (Ret’d)
$145,000
$70,000
$70,000
$70,000
n/a
$20,000
$19,000
$7,000
Consequences of Performance on Shareholder Wealth
In considering the Group’s performance and benefits for shareholder wealth, the RN&D committee gives regard to the
following indices in respect of the current financial year and the previous four financial years.
2022
2021
2020
2019
2018
PPrrooffiitt // ((lloossss)) aattttrriibbuuttaabbllee ttoo
oowwnneerrss ooff tthhee ccoommppaannyy (($$000000))
DDiivviiddeennddss ppaaiidd
OOppeerraattiinngg iinnccoommee (($$000000))
CChhaannggee iinn sshhaarree pprriiccee
RReettuurrnn oonn ccaappiittaall eemmppllooyyeedd
786
$nil
86,675
(28.8%)
10.5%
(271)
$nil
85,097
(38%)
0.5%
3,891
$nil
82,252
(3.4%)
24.7%
2,693
$nil
73,275
13.0%
18.4%
(2,891)
$nil
59,036
(22.7%)
(22.8%)
Return on capital employed is calculated as profit / (loss) before interest and tax (EBIT) divided by total assets, excluding
deferred tax asset, less liabilities.
Quickstep Holdings Limited
12
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT
REMUNERATION
REPORT
21
Remuneration Report – Audited
1. Principles of Compensation
Service Agreements
Name
Agreement
Duration
Termination benefits
Initial
Agreement date
Notice
period (3)
STI cap
LTI cap
as a % of
as a % of
Base
Base Salary
Salary (1)
(2)
Mr. M H Burgess
8 May 2017
18 November
Open
NES
12 months annual TFR; and
30
70
Revised
Date (4)
2021
pro-rated annual bonus (at
Board's discretion). If due to
change of control, 100% of
annual TFR is paid
immediately plus pro-rated
annual bonus
Mr. A J Tilley
25 June 2018
n/a
26 October
NES
3 months of TFR and pro-
n/a
n/a
2021
rated annual bonus (at
Board's discretion)
Mr. S J Gaffney
21 September
n/a
Open
NES
3 months of TFR and pro-
30
30
2021
rated annual bonus (at
Board's discretion)
(1) Short Term Incentive (STI) is determined on performance against KPIs set and reviewed by the RN&D Committee
or the Board as appropriate. The STI cap refers to the maximum amount payable in cash, as a percentage of Base
Salary. The KPIs include metrics relating to financial objectives, safety and growth.
(2) Long Term Incentive (LTI) is determined on the Group's performance against relative Total Shareholder Return and
is tested at the end of the measurement period (1 September 2024). The LTI cap refers to the maximum amount
payable in shares as a percentage of Base Salary. This is the measure currently used in the IRP applicable to FY22.
(3) NES refers to the National Employment Standard in the Fair Work Act (2009). Under section (3) (ss117-118) and
employee is entitled to a minimum notice period depending on length or service and age.
(4) The terms of Agreement were updated for Mr. M H Burgess in line with approval at the AGM (18 November 2021)
to reflect updated STI and LTI cap as shown above.
Quickstep Holdings Limited
13
QUICKSTEP ANNUAL REPORT 2022FINANCIAL REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY
22
Remuneration Report – Audited
2. Details of Remuneration
The following tables detail the remuneration received by KMP of the Group for the current and previous financial year.
Salary / Fees
STI (2)
$
$
SGC
$
Termination
LTI Rights (1)
$
$
Total
$
483,567
71,955
29,765
160,287
745,574
Name
Executive Directors
Mr. M H Burgess
Non-Executive Directors
Mr. P Largier
Mrs. L Heywood
Mrs. E Mannes
AVM K Osley (Ret’d)
Other KMPs
Mr. A J Tilley (4)
Mr. S J Gaffney (5)
Executive Directors
Mr. M H Burgess
Non-Executive Directors
Mr. T H J Quick
Mrs. L Heywood
Mrs. E Mannes
Mr. P Largier
AVM K Osley (Ret’d)
Other KMPs
Mr. A J Tilley
139,384
86,411
76,010
71,311
96,776
175,886
478,306
21,000
72,500
64,735
115,000
57,266
298,306
20,232
2021
-
-
-
-
-
-
-
-
-
-
-
-
-
-
7,601
951
7,856
16,205
21,694
-
-
-
6,150
5,440
21,694
-
-
-
-
-
-
-
-
-
-
-
-
-
-
(10,271)
3,815
153,061
653,061
-
-
-
-
-
-
-
-
-
139,384
86,411
83,611
72,262
94,361
216,138
21,000
72,500
70,885
115,000
62,706
68,146
388,146
(1)
(2)
(3)
(4)
(5)
LTI rights include the accounting expense attributable to the current year under the IRP.
STI is comprised of an accrued current year bonus.
There are no related party transactions between the Group and the KMP apart from compensation in the form
of annual remuneration.
Mr. A J Tilley ceased employment on 26 October 2021, no STI is payable for 2022.
Mr. S J Gaffney commenced employment on 25 October 2021 and assumed the role of Chief Financial Officer
on 27 October 2021, a pro-rata STI is payable for 2022 as shown above.
Quickstep Holdings Limited
14
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT
REMUNERATION
REPORT
23
Remuneration Report – Audited
3. Share Based Compensation
Long term Incentive - Quickstep Incentive Rights Plan (IRP)
At 30 June 2022 executives have accrued performance rights pursuant to the IRP. Movements in IRP rights during the
KMP
Grant Date
year are set out below:
Tranche
Refer
Note
FY18
FY19
FY20
FY21
FY22
FY19
FY20
FY21
FY22
Mr. M H Burgess
Mr. M H Burgess
Mr. M H Burgess
Mr. M H Burgess
Mr. M H Burgess
Mr. A J Tilley
Mr. A J Tilley
Mr. A J Tilley
Mr. S J Gaffney
FV per
right at
grant
date (b)
$0.690
$0.680
$0.680
$0.429
$0.320
$0.680
$0.680
$0.680
$0.270
First Testing
Date
31/08/2020
31/08/2021
31/08/2022
31/08/2023
1/09/2024
31/08/2021
31/08/2022
31/08/2023
1/09/2024
Balance at
Granted
30-Jun-
2021 (a)
Number
during the
year (c)
Number
Issued or
lapsed
during the
year
Number (d)
Balance at
30-Jun-
2022
Number
Fair value
at grant
date
$
Cum
vesting
level
247,524
284,651
214,042
308,642
145,742
109,589
109,589
-
-
-
-
-
-
-
-
-
-
-
-
(145,742)
(109,589)
(109,589)
247,524
284,651
214,042
308,642
668,967
-
-
-
$170,792
$193,562
$145,548
$132,407
$214,128
$99,104
$74,521
$67,319
$19,269
0%
0%
0%
0%
0%
0%
0%
0%
0%
-
103,717
-
103,717
-
668,967
1/12/2017
1/09/2018
1/09/2019
15/01/2021
18/11/2021
1/09/2018
1/09/2019
15/01/2021
16/12/2021
(a) The no. of rights as at 30 June 2021 have been re-stated on a 10:1 post consolidation basis as approved at the
2021 AGM on 18 November 2021.
(b) The value per right has been restated on a post consolidation basis to ensure the. The fair value of rights per
grant calculated using a Monte Carlo simulation analysis at the grant date. Refer to Note E.4, for the model’s
key assumptions.
(c) The fair value of rights granted in the year is $233,397 (2021: $199,726). The total value of the rights is allocated
to remuneration over the vesting period.
(d) The rights granted to Mr. A J Tilley lapsed during the year in line with the Service Agreement.
Modification of terms of equity-settled share-based payment transactions
No terms of equity-settled share-based payment transactions (including rights granted as compensation to a key
management person) have been altered or modified by the issuing entity during the reporting period or the prior period.
Movements in ordinary shares
The movement during the reporting period in the number of ordinary shares in the Company held, directly, indirectly
or beneficially, by each key management person, including their related parties, is as follows:
Shares Held at
1 July 2021
Number
Consolidation of
Shares during the
Year
Number
Received on
exercise of
options
Number
Other
changes (*)
Number
Held at 30 June
2022
Number
KMP
Mr. P Largier
Mrs. L Heywood
Mrs. E Mannes
AVM K Osley (Ret’d)
Mr. M H Burgess
Mr. A J Tilley ^
Mr. S J Gaffney
2,500,000
195,220
194,954
300,000
4,209,701
1,160,760
-
(2,250,000)
(175,697)
(175,458)
(270,000)
(3,788,729)
-
-
-
-
-
-
-
-
-
73,000
22,680
25,000
-
-
(1,160,760)
20,000
The company consolidated its issued share capital (in the ratio of one share for every 10 shares held) at its 2021
Annual General Meeting of Shareholders on 18 November 2021.
(*) Other changes represent shares that were purchased or sold during the year.
(^) Mr. A J Tilley ceased employment during the year, hence, the closing balance is not tracked.
323,000
19,523
42,176
55,000
420,972
0
20,000
15
Quickstep Holdings Limited
QUICKSTEP ANNUAL REPORT 2022FINANCIAL REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY
24
Remuneration Report – Audited
4. Analysis of Bonuses included in Remuneration
Details of the short-term incentives awarded in cash as remuneration to each Key Management Personnel (KMP) of the
Company and each of the named other key management personnel of the Group are detailed below:
Included in
% vested in
% lapsed in
remuneration (1)
year (2)
year (2)
71,955
49.60%
50.40%
20,232
51.61%
48.39%
KMP
EExxeeccuuttiivvee DDiirreeccttoorr
Mr. M H Burgess
OOtthheerr KKMMPP
Mr. S J Gaffney
date of 25 October 2021.
to the current financial year.
(1)
STI comprised of an accrued current year bonus, which is expected to be paid during first half of FY23. The
amount reported for Mr. S J Gaffney represents the pro-rata amount calculated based on the commencement
(2)
The % lapsed are due to Group performance, personal performance or service criteria not being met in relation
During FY21 the RN&D committee undertook a market benchmarking study of Senior Executive Remuneration. The work
was undertaken by Egan Associates, one of Australia’s leading independent advisers to Boards and Board Remuneration
Committee Chairs for a total cost of $40,000, and included a declaration by them, that the recommendations had been
made free from undue influence by KMP, to whom the recommendations related. The resultant report which was
discussed and considered by the RN&D committee and the Board, presented data, findings and recommendations in
relation to the market competitiveness of Quickstep’s remuneration practices for its Chief Executive Officer, Senior
Executives and Non-Executive directors. The structure of the current executive STI and LTI plans for FY22 were based
on the recommendations of this report.
Quickstep Holdings Limited
16
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT
REMUNERATION
REPORT
FINANCIAL
REPORT
25
Consolidated Statement of Profit or Loss and Other Comprehensive Income
Page
Notes to the Consolidated Financial Statements
Financial Statements
Contents
Financial statements
Consolidated Balance Sheet
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
A. About this Report
B. Business Performance
B.1 Key Performance Measures
B.2 Segment Reporting
B.3 Profit per Share
B.4 Corporate and Administrative expenses
B.5 Notes to Statement of Cash Flows
B.6 Income Tax Benefit
C. Capital and Financial Risk Management
C.1 Loans and Borrowings
C.2 Leases
C.3 Finance Income and Finance Expenses
C.4 Financial Instruments
C.5 Financial Risk Management
C.6 Capital and Reserves
C.7 Capital and Other Commitments
C.8 Provisions
D. Operating Assets and Liabilities
D.1 Trade and Other Receivables
D.4 Property, Plant and Equipment and Software
D.2 Inventories
D.3 Contract Assets
D.5 Investment
D.6 Goodwill
E. Employee Benefits
E.1 Employee Benefit Obligations
E.2 Employee Benefit Expense
E.3 Related Party Transactions
E.4 Quickstep Incentive Rights Plan (IRP)
E.5 Equity Settled Short Term Incentive
F. Other Disclosures
F.1 Group Entities
F.2 Parent Entity Financial Information
F.3 Deed of Cross Guarantee
F.4 Auditors’ Remuneration
F.5 Business Combination
F.6 Subsequent Events
F.7 New Accounting Standards Not Yet Adopted
Directors’ Declaration
Lead Auditor’s Independence Declaration
Independent Auditor’s Report to the Members
Quickstep Holdings Limited
18
19
20
21
22
26
27
28
28
29
30
32
33
35
35
36
40
41
41
42
43
43
44
46
47
48
48
49
50
51
52
52
53
54
54
55
55
56
57
58
17
QUICKSTEP ANNUAL REPORT 2022SHAREHOLDER INFORMATIONCORPORATE DIRECTORY
Consolidated Statement of Profit or Loss and Other Comprehensive
26
Income
for the year ended 30 June 2022
Revenue
Cost of sales of goods
Gross profit
Other income
Research and development expenses
Business development expenses
Corporate and administrative expenses
Impairment expense
Profit from operating activities
Finance income
Finance expenses
Net finance costs
Profit / (loss) before income tax
Income tax benefit / (loss)
Profit / (loss) for the year
B.2
B.4
D.4
C.3
B.6
Notes
2022
$000
2021
$000
86,675
(73,411)
13,264
85,097
(70,478)
14,619
419
441
(1,318)
(1,515)
(9,033)
-
1,817
45
(2,027)
(1,982)
(165)
951
786
(575)
73
(502)
284
(1,800)
(1,176)
(9,174)
(2,812)
98
11
(1,280)
(1,269)
(1,171)
900
(271)
22
69
91
(180)
Cents
(0.38)
(0.37)
Other comprehensive income / (loss) net of income tax
Item that may be reclassified to profit or loss
Cash flow hedges
Exchange difference on translation of a foreign operation
Other comprehensive income / (loss) for the period, net of income tax
Total comprehensive income for the year
Profit per share:
Basic profit / (loss) per share
Diluted profit/ (loss) per share
Updated
Cents
1.10
1.08
B.3
B.3
The consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.
Quickstep Holdings Limited
18
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT
FINANCIAL
REPORT
27
Consolidated Balance Sheet
as at 30 June 2022
Consolidated balance sheet
Property, plant and equipment and software
ASSETS
Current assets
Cash and cash equivalents
Term deposits
Trade and other receivables
Prepayments and other assets
Inventories
Contract assets
Total current assets
Non-current assets
Right-of-use asset
Goodwill
Investments
Deferred tax asset
Total non-current assets
Total assets
LIABILITIES
Current liabilities
Trade and other payables
Provisions
Financial instruments
Loans and borrowings
Other Liabilities
Lease liabilities
Employee benefit obligations
Total current liabilities
Non-current liabilities
Loans and borrowings
Lease liabilities
Provisions
Employee benefit obligations
Total non-current liabilities
Total liabilities
Net assets
EQUITY
Share capital
Reserves
Accumulated losses
Total equity
Notes
2022
$000
2021
$000
B.5
C.5
D.1
D.2
D.3
D.4
C.2
D.6
D.5
B.6
C.8
C.4
C.1
D.5
C.2
E.1
C.1
C.2
C.8
E.1
C.6
3,021
891
9,043
1,639
14,910
10,294
39,798
13,999
15,551
2,287
3,044
5,052
39,933
79,731
-
593
2,564
1,500
1,628
1,990
27,668
7,282
17,443
3,448
1,515
29,688
57,356
22,375
2,353
733
8,845
1,240
9,660
8,051
30,882
15,378
16,526
2,287
-
4,101
38,292
69,174
-
18
-
4,464
1,275
2,073
21,182
3,205
18,179
3,448
1,235
26,067
47,249
21,925
19,393
13,352
120,785
6,131
120,785
6,466
(104,541)
(105,326)
22,375
21,925
The consolidated balance sheet should be read in conjunction with the accompanying notes.
Quickstep Holdings Limited
19
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY
28
Consolidated Statement of Changes in Equity
for the year ended 30 June 2022
Share
capital
$000
translation
reserve
$000
Cash flow
hedges
reserve
$000
Share
based
payments
$000
Accumulated
losses
$000
Total
equity
$000
Balance at 1 July 2021
120,785
(247)
(19)
6,733
(105,327)
21,925
Profit / (loss) for the year
Other comprehensive (loss)
Foreign currency translation difference
for foreign operations
Effective portion of changes in fair
value of cash flow hedges
Total comprehensive income/ (loss)
Transactions with owners of the
for the year
company:
Share based payments expenses
2022
2021
Profit / (loss) for the year
Other comprehensive (loss)
Foreign currency translation difference
for foreign operations
Effective portion of changes in fair
value of cash flow hedges
Total comprehensive income/ (loss)
Transactions with owners of the
for the year
company:
Share based payments expenses
-
-
(575)
(575)
-
(594)
-
-
22
22
166
6,899
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
73
-
73
-
-
69
-
69
-
786
786
786
284
73
(575)
166
69
22
369
(271)
(271)
(271)
(180)
-
-
-
-
-
-
Balance at 30 June 2022
120,785
(174)
(104,541)
22,375
Balance at 1 July 2020
120,785
(316)
(41)
6,364
(105,056)
21,736
Balance at 30 June 2021
120,785
(247)
(105,327)
21,925
The consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
-
(19)
369
6,733
Quickstep Holdings Limited
20
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT
FINANCIAL
REPORT
29
Consolidated Statement of Cash Flows
for the year ended 30 June 2022
Cash flows from operating activities
Cash receipts in course of operations
Interest received
Interest paid
Other income
Cash payments in the course of operations
Net cash from operating activities
Cash flows from investing activities
Acquisition costs of plant and equipment and intangible assets
Proceeds from government grants for capital works
Payment to fund business acquisition
Investments in Carbonix & Swoop Aero
Receipts/(payment) for restricted cash and term deposit
Net cash (used in) investing activities
Cash flows from financing activities
Proceeds from borrowings
Repayment of borrowings
Payment of lease liabilities
Payment of borrowing costs
Net cash (used in) / from financing activities
Notes
2022
$000
2021
$000
87,958
87,435
B.5
45
(817)
318
(84,169)
3,335
(1,861)
104
(1,500)
-
-
6,715
(4,537)
(1,308)
-
870
948
2,353
(280)
3,021
(1,549)
11
47
(78,112)
7,832
(2,289)
372
(3,137)
-
(15)
9,310
(10,295)
(1,147)
(167)
(2,299)
464
1,690
199
2,353
(3,257)
(5,069)
Net (decrease) /increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the financial year
Effects of exchange rate changes on cash and cash equivalents
Cash and cash equivalents at end of period
The consolidated statement of cash flows should be read in conjunction with the accompanying notes.
Quickstep Holdings Limited
21
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY
30
organisations.
operators.
Materiality
whether:
•
•
•
•
•
and
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
A. About this Report
Introduction
This is the financial report of Quickstep Holdings Limited (the “Company”) and its controlled entities (the “Group”).
The Company is domiciled in Australia and the Group is a for-profit entity. The Group is at the forefront of advanced
composites manufacturing and technology development and is the largest independent aerospace-grade advanced
composite manufacturer in Australia, currently partnering with some of the world’s largest aerospace/defence
Further the Company offers extensive maintenance, repair and overhaul services (MRO) across a wide range of
composite, bonded and conventional metal aircraft structures to defence, government and commercial aircraft
Information is only included in the financial report to the extent that it has been considered material and relevant to
the understanding of the financial statements. Factors that influence if a disclosure is material and relevant, include
the dollar amount is significant in size (quantitative factor)
the dollar amount is significant by nature (qualitative factor)
the Group’s results cannot be understood without the specific disclosure (qualitative factor)
it is critical to allow a user to understand the impact of significant changes in the Group’s business during the period;
it relates to an aspect of the Group’s operations that is important to its future performance.
Statement of Compliance
These general purpose financial statements have been prepared in accordance with the Australian Accounting
Standards and Interpretations issued by the Australian Accounting Standards Board and the Corporations Act 2001. The
consolidated financial statements of the Group also comply with the International Financial Reporting Standards (IFRS)
as issued by the International Accounting Standards Board.
The consolidated financial statements were authorised for issue by the Board of Directors on 29 August 2022.
The financial statements have been prepared on the historical cost basis. These consolidated financial statements are
presented in Australian dollars, which is the Group’s functional currency.
Basis of Preparation
Rounding of Amounts
The Company is of a kind referred to in Class Order 2016/191 issued by the Australian Securities and Investments
Commission, relating to the “rounding off” of amounts in the financial statements and Directors’ report. Amounts in the
financial statements and Directors’ report have therefore been rounded off to the nearest thousand dollars, or in certain
cases, to the nearest dollar.
Quickstep Holdings Limited
22
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT
FINANCIAL
REPORT
31
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
A. About this Report
Accounting Estimates and Judgements
and assumptions about future events.
described below:
Going concern
The preparation of financial statements in conformity with AASBs requires management to make judgements, estimates
Information about significant areas of estimation uncertainty and critical judgements in applying accounting policies are
The financial statements have been prepared on the going concern basis which contemplates the continuity of normal
business activities and the realisation of assets and discharge of liabilities in the normal course of business.
The Group has generated a profit after tax for the year ended 30 June 2022 of $786,000 (30 June 2021 $271,000). The
Group has net assets of $22,375,000 (30 June 2021 $21,925,000) and net current assets of $12,130,000 (30 June 2021
$9,700,000). Current loans and borrowings are $4,192,000 (including lease liabilities of $1,628,000) compared to 30
June 2021 $5,739,000. Operating cash inflow for the year was $3,335,000 (30 June 2021 $7,815,000).
On 30 June 2022, debt covenant calculations deferral waivers were obtained, which defer the next testing date of the
Debt to EBITDA covenant to June 2023 and next testing date of the Debt Service Cover ratio to March 2024. In
addition to the fully drawn ANZ $6.0m working capital facility and fully drawn $3.8m of ANZ long term debt, on 13 July
2022 the Group established a $5.0m short term working capital facility with Export Finance Australia (‘EFA’). The
facility is available to draw upon until 31 December 2023 with principal amortisation from January 2023 and is drawn
to $3,600,000 as at 23 August 2022. Furthermore, a customer cash advance and accelerated customer payment terms
have been negotiated in August 2022 and are included in management operating cashflow forecasts.
The directors of Quickstep consider it appropriate that the Group will continue to fulfil all obligations as and when
they fall due for the foreseeable future and accordingly consider that the Group’s financial statements should be
prepared on a going concern basis. Accordingly, the financial statements do not include any adjustments relating to
the recoverability and classification of recorded asset amounts or to the amounts and classification of liabilities that
might be necessary should the Group not continue as a going concern.
Recognition of tax benefits
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against
which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the
related tax benefit will be realised. Future taxable profits are estimated based on future profits forecast taking into
account income tax reconciliation required under the current tax legislation.
Provisions
be made by the group.
Provisions are recognised when the group has a present obligation (legal or constructive) as a result of a past event, it
is probable that settlement will be required and the obligation can be reliably estimated. Provisions which are not
expected to be settled within 12 months are measured at the present value of the estimated future cash outflows to
Quickstep Holdings Limited
23
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY
32
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
A. About this Report
Goodwill Assessment
Quickstep Holdings Ltd carries goodwill on the acquisition of QAS of $2,287,000 as at 30 June 2022 (initially recognised
as at 30 June 2021). The carrying amounts of the Group’s goodwill assets are reviewed and reassessed at the year-end
reporting date to assess the asset’s recoverable amount. The value in use method is used to assess the recoverable
amount as there is no quoted price in an active market for an identical asset. An impairment loss is recognised if the
carrying amount of an asset exceeds its estimated recoverable amount. Impairment losses are recognised in the
statement of comprehensive income.
Goodwill has been assessed as at 30 June 2022 and no goodwill impairment has been identified.
Quickstep Holdings Limited
24
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT
FINANCIAL
REPORT
33
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
A. About this Report
Significant Accounting Policies
The accounting policies have been applied consistently to all periods presented in these consolidated financial
statements and have been applied consistently by all entities in the Group. Other significant accounting policies are
contained in the notes to the consolidated financial statements to which they relate.
Basis of consolidation
entity or the Group.
The consolidated financial statements incorporate the assets and liabilities of all subsidiaries of Quickstep Holdings
Limited (“Company” or “parent entity”) as at 30 June 2022 and the results of all subsidiaries for the year then ended.
Quickstep Holdings Limited and its subsidiaries together are referred to in the financial statements as the consolidated
A subsidiary is any entity controlled by the parent entity. The Group controls an entity when it is exposed to, or has
rights to, variable returns from its involvement with the entity and, has the ability to affect those returns through its
power over the entity. Subsidiaries are fully consolidated from the date on which control is transferred to the Group,
and de-consolidated from the date that control ceases.
Intercompany transactions, balances and unrealised gains on transactions between Group companies are eliminated.
Unrealised losses are also eliminated unless the transaction provides evidence of the impairment of the asset
transferred. Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the
policies adopted by the Group.
Foreign currency translation
date using the following exchange rates:
Transactions, assets and liabilities denominated in foreign currencies are translated into Australian dollars at reporting
Foreign currency amount
Applicable exchange rate
Transactions
Date of transaction
Monetary assets and liabilities
Reporting date
Foreign exchange gains and losses resulting from translation are recognised in the Income Statement, except for
qualifying cash flow hedges which are deferred to equity.
On consolidation, the assets, liabilities, income and expenses of foreign operations are translated into Australian dollars
using the following applicable exchange rates:
Foreign currency amount
Applicable exchange rate
Income and expenses
Average monthly rate
Assets and liabilities
Equity and reserves
Reporting date
Historical date
Foreign currency differences resulting from translation are recognised in other comprehensive income, and presented
in the foreign currency translation reserve in equity. When a foreign operation is disposed of, in part or in full, the
relevant amount in the foreign currency translation reserve is transferred to the statement of comprehensive income.
Quickstep Holdings Limited
25
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY
34
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
B. Business Performance
This section provides the information that is most relevant to understanding the financial performance of the Group
during the financial year and, where relevant, the accounting policies applied, and the critical judgements and estimates
made.
B.1
B.2
B.3
B.4
B.5
B.6
Key Performance Measures
Segment Reporting
Profit per Share
Corporate and Administrative expenses
Notes to Statement of Cash Flows
Income Tax Benefit
B.1
Key Performance Measures
The key performance measures for the year were:
2022
$000
86,675
1,409
1,409
786
2021
$000
85,097
2,910
98
(271)
Revenue
EBIT before impairment loss
EBIT
Net profit / (loss)
Recognition and Measurement
Revenue
EBIT measure refers to profit from operating activities adjusted for foreign exchange and borrowing costs disclosed in
the Consolidated Statement of Profit or Loss and Other Comprehensive Income.
Under AASB 15 the Group has determined that for made-to-order parts, the customer controls all the work in progress
as the products are being manufactured. This is because under those contracts, parts are made to a customer’s
specification and if a contract is terminated by the customer, then the Group is entitled to reimbursement of the costs
incurred to date, including a reasonable margin. Therefore, revenue from these contracts and the associated costs are
recognised over time – i.e., before the goods are delivered to the customers’ premises. Invoices are issued according to
contractual terms. Uninvoiced amounts are presented as contract assets.
The Group uses the input method (costs-incurred) to measure progress as this measure faithfully depicts the
transformation of the work in progress. Under this approach, the entity recognises revenue based on the costs incurred
to date relative to the estimated total costs to complete the performance obligation.
To the extent to which amounts are received in advance of the provision of the related parts, the amounts are recorded
as contract liability and credited to the statement of comprehensive income as goods delivered.
Research and development expenses
Expenditure on research activities, undertaken with the prospect of gaining new scientific or technical knowledge and
understanding, is recognised in the statement of comprehensive income as an expense as incurred.
Quickstep Holdings Limited
26
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT
FINANCIAL
REPORT
35
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
B. Business Performance
B.1
Key Performance Measures
Government grants
amount of the asset.
The Group has complied with all grant conditions.
B.2
Segment Reporting
Grants from the government that compensate the Group for expenses incurred are recognised in the profit and loss as
Other Income on a systematic basis in the periods in which the expenses are recognised.
Grants that the Group receives in relation to assets have been presented as a deduction in arriving at the carrying
The Group has identified its operating segments based on the internal reports reviewed by the CEO who is the Chief
Operating Decision Maker responsible for decision making in respect of allocation of resources. The reportable segment
of the group is Aerostructures, which is involved in manufacturing of aerospace composites products.
Other operations include Aftermarket, which is responsible for maintenance, repair and overhaul services and Applied
Composites which provide advanced composite based engineering and manufacturing services. Aftermarket and
Applied Composites do not meet the quantitative thresholds for reportable segments.
Geographical Information
In presenting information on the basis of geographical segments, segment revenue is based on the geographical location
of customers. Segment assets are based on the geographical location of the assets.
United States of America
Non-current assets:
United States of America
Revenue:
Australia
Total
Australia
Total
2022
$000
2021
$000
63,219
23,456
86,675
-
39,933
39,933
66,722
18,375
85,097
-
38,292
38,292
$’000
86,675
13,264
13,429
79,731
Operating Segment Information
Aerostructures
Other Businesses
Combined QHL Group
Revenue
Gross Margin
Other Expenses
Total Assets
$’000
82,059
15,090
-
62,984
$’000
4,616
(1,826)
-
5,357
Corporate
$’000
-
-
13,429
11,391
The operating segment reporting model was restructured in January 2022. As a result, the Aftermarket and Applied
Composites segment information for FY21 is not available, the costs to redevelop historical reporting models for
comparative purposes would be prohibitive and not considered individually material for the prior year ended 30 June
2021.
Quickstep Holdings Limited
27
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY
36
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
B. Business Performance
B.3
Profit per Share
The calculation of basic profit per share is based on the profit attributable to ordinary shareholders and a weighted-
average number (WAN) of ordinary shares outstanding.
Profit / (loss) attributable to ordinary shareholders*
Weighted average number of ordinary shares:
Shares at beginning of period
Shares issued during the year
Weighted average number of shares used as the denominator in calculating basic
earnings per share
Adjustment for calculation of diluted earnings per share
Under share based payment arrangements
Weighted average number of shares used as the denominator in calculating
diluted earnings per share
Basic profit / (loss) cents per share
Diluted profit / (loss) cents per share
2022
$
785,615
2021
$
(270,620)
2022
Number
2021
Number
71,626,934
71,343,530*
98,210
173,934
71,725,144
71,517,464
1,141,891
1,043,681
72,867,035
72,561,145
1.10
1.08
(0.38)
(0.37)
Rights granted under IRP which have passed their first testing date are considered to be potential ordinary shares. They
have been included in the determination of diluted earnings per share.
* Weighted average number of shares in 2021 and opening balance for 2022 has been restated to reflect the 10 to 1
share consolidation approved by the shareholders on 18 November 2021.
B.4
Corporate and Administrative expenses
Corporate and administrative expenses include a $1.2m writeback of legal accruals previously held by a foreign
controlled entity. Any outflow related to those accruals in no longer considered probable.
Quickstep Holdings Limited
28
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT
FINANCIAL
REPORT
37
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
B. Business Performance
B.5 Notes to Statement of Cash Flows
Cash and Cash Equivalents
Cash at bank and in hand
Reconciliation of Net Profit to Net Cash Provided by Operating Activities
Profit / (loss) for the period
Adjustments for:
ROU asset amortisation
Depreciation and amortisation
(Gains)/loss on asset disposals
Impairment loss
Share based payment expense
Net foreign currency losses
Legal accrual writeback
Change in operating assets and liabilities:
Increase in trade and other receivables
Increase in prepayments and other assets
(Increase)/decrease in inventories
Decrease in contract assets
Increase in deferred tax asset
(Decrease)/increase in trade and other payables
(Decrease)/increase in provisions
(Increase) /decrease in prepaid interest
Increase in employee benefit obligations
Net cash from operating activities
2022
$000
3,021
2022
$000
786
1,975
2,859
7
-
166
346
(1,158)
(197)
(401)
(5,250)
(2,242)
(951)
7,199
-
-
196
3,335
2021
$000
2,353
2021
$000
(271)
1,672
2,409
(10)
2,812
368
(282)
-
(1,129)
(452)
476
1,504
(900)
453
291
-
891
7,832
Quickstep Holdings Limited
29
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY
38
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
B. Business Performance
B.6
Income Tax Benefit
Reconciliation of Income Tax Benefit Recognised in Statement of Profit or Loss
Numerical reconciliation of income tax benefit to prima facie tax payable is as follows:
Current tax expense
Current Year tax expense
Changes in estimates related to prior year
Deferred tax expense
Origination and reversal of temporary difference
Recognition of previously unrecognised tax losses
Income tax benefit
Profit / (loss) from continuing operations
Tax expense/ (benefit) at the Australian tax rate of 30% (2020 – 30.0%)
Expenditure not allowable for income tax purposes
Origination and reversal of temporary difference
Effect of different tax rate for overseas subsidiaries
Deferred tax asset related to foreign jurisdictions
Current year losses for which no deferred tax asset is recognised
2022
$000
2021
$000
2022
$000
2021
$000
(232)
-
(232)
239
(958)
(951)
(165)
(50)
57
239
(141)
141
-
(958)
(239)
(951)
834
-
834
(1,032)
(702)
(900)
(1,171)
(351)
125
(1,032)
4
(4)
1,259
(900)
(900)
Tas losses brought to account
Deferred tax asset recognised
Income tax benefit
Deferred tax assets/(liabilities)
Particulars
Provision for Annual Leave
Other provisions
Super
Provision for LSL
Work in progress – deductible
Prov. For stock obsolescence
Lease liabilities
Other expenditure
PPE & Intangibles and ROU
Tax losses carried forward
Total deferred tax balances
Balance as on
Unrecognised
1 July 2021
tax losses
$’000
$’000
Tax losses
Recognised
Net Balance
utilised
$’000
in the P&L
as on
$’000
30 June 2022
$’000
564
155
89
251
108
(8)
5,836
201
(3,797)
702
4,101
(25)
227
(15)
81
38
8
(115)
(126)
166
-
239
539
382
74
332
146
-
5,721
75
(3,631)
1,414
5,052
958
958
(246)
(246)
Quickstep Holdings Limited
30
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT
FINANCIAL
REPORT
39
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
B. Business Performance
B.6
Income Tax Benefit
The deductible temporary differences and tax losses do not expire under current tax legislation. Deferred tax assets
have not been recognised in respect of these items because the Group considers it prudent to defer recognition until
the Group generates consistently taxable income. The tax losses are subject to availability and continued assessment
under the ATO testing rules. The amount of tax expense recognised through Other Comprehensive Income is
nil (2021: nil).
Tax Losses not brought to Account
The gross amount of unused tax losses for which no deferred tax asset has been
recognised
(*) Note: The comparative information has been restated
Tax Consolidation Legislation
Quickstep Holdings Limited and its 100% owned Australian resident subsidiaries have formed a tax consolidated Group
2022
$000
2021 (*)
$000
53,046
56,239
effective from 1 July 2010.
Recognition and Measurement
Income tax
comprehensive income.
Income tax expense comprises current and deferred tax. Current tax and deferred tax is recognised in profit and loss
except to the extent that it related to a business combination, or items recognised directly in equity or in other
Current tax is the expected tax payable or receivable on the taxable income for the year, using tax rates enacted or
substantially enacted at reporting date, and any adjustment to tax payable in respect of previous years.
Deferred income tax is provided in full, using the liability method, on temporary differences arising between the tax
bases of assets and liabilities and their carrying amounts in the consolidated financial statements. However, deferred
tax liabilities are not recognised if they arise from the initial recognition of goodwill. Deferred income tax is also not
accounted for if it arises from initial recognition of an asset or liability in a transaction other than a business combination
that at the time of the transaction affects neither accounting nor taxable profit nor loss. Deferred income tax is
determined using tax rates (and laws) that have been enacted or substantially enacted by the end of the reporting
period and are expected to apply when the related deferred income tax asset is realised or the deferred income tax
liability is settled.
A deferred tax asset is recognised only to the extent that it is probable that future taxable profits will be available against
which the asset can be utilised. Deferred tax assets are reduced to the extent that it is no longer probable that the
related tax benefit will be realised.
The Group has recognised a deferred tax asset relating to previously unrecognised tax losses to the extent there are
sufficient taxable temporary differences against which the unused tax losses can be utilised. Utilisation of tax losses also
depends on the ability of the entity to satisfy certain tests at the time the losses are recouped. The recognised tax losses
are subject to the shareholder continuity test.
The Group has reviewed previously unrecognised tax losses and determined that it is probable that future taxable profits
will be available against which the recognised tax losses can be utilised.
Quickstep Holdings Limited
31
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY
40
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
C. Capital and Financial Risk Management
This section provides information relating to the Group’s capital structure and its exposure to financial risks, how they
affect the Group’s financial position and performance and how the risks are managed.
C.1
C.2
C.3
C.4
C.5
C.6
C.7
C.8
Loans and Borrowings
Leases
Finance Income and Finance Expenses
Financial Instruments
Financial Risk Management
Capital and Reserves
Capital and other Commitments
Provisions
C.1
Loans and Borrowings
2022
Non-
current
$000
1,282
1,282
6,000
7,282
Current
$000
2,564
2,564
-
2,564
Total
$000
Current
$000
3,846
3,846
6,000
9,846
2,564
2,564
1,900
4,464
2021
Non-
current
$000
3,205
3,205
-
3,205
Total
$000
5,769
5,769
1,900
7,669
Effective
Year of maturity
interest rate
3.58%
2.22%
2023
2024
Maximum facility
Maximum facility
2022
value
$000
3,846
6,000
2021
value
$000
5,769
6,000
Secured bank loan
Secured bank loan
Working capital facility
Term and Debt Repayment Schedule
Secured bank loan
Working capital facility
Secured Bank Loan
On 16 February 2021 Quickstep Holdings Limited executed a loan agreement with ANZ for $6,410,000 to refinance the
existing ANZ facility and fund the acquisition of QAS. Quarterly repayments commenced on 30 June 2021 with the final
repayment due on 30 September 2023. The facility limit is reduced by the amount of each payment. The interest rate
on the facility comprises a variable base rate and fixed margin.
The June 2022 and September 2022 repayments have been agreed to be deferred and will be added to the June 2023
and September 2023 repayments.
Quickstep Holdings Limited
32
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT
FINANCIAL
REPORT
41
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
C. Capital and Financial Risk Management
C.1
Loans and Borrowings
Working capital facility
Loan covenant
Recognition and Measurement
Non-derivative financial liabilities
On 17 March 2022 Quickstep Holdings Limited executed a loan agreement with ANZ for $6,000,000 to refinance the
existing EFA facility. The working capital facility has been extended and is required to be repaid by June 2024. The
interest rate on the facility comprises a variable base rate and fixed margin.
The group exceeded its EBITDA and Debt Service Cover covenant threshold in the fourth quarter of 2022. However,
management obtained a waiver on 30 June 2022 from ANZ bank and deferred future covenant compliance dates for
Debt to EBITDA commencing 30 June 2023 and Debt Service Cover commencing March 2023 respectively. Accordingly,
the loans were not payable on demand at 30 June 2022.
All financial liabilities (including liabilities designated at fair value through profit or loss) are recognised initially on the
trade date at which the Group becomes a party to the contractual provisions of the instrument. The Group derecognises
a financial liability when its contractual obligations are discharged or cancelled or expire. Financial assets and liabilities
are offset and the net amount presented in the statement of financial position when, and only when, the Group has a
legal right to offset the amounts and intends either to settle on a net basis or to realise the asset and settle the liability
simultaneously.
C.2
Leases
Right-of-use assets
following table.
The Group leases assets including properties, production equipment and IT equipment. The Group recognizes a right-of-
use asset and lease liability. Lease liabilities are measured at the present value of the remaining lease payments,
discounted using the interest rate implicit in the lease, or if that is not available, then Group’s incremental borrowing
rate at the lease commencement date. Right-of-use asset is initially measured at cost and subsequently depreciated over
a straight line to the end of the lease term.
The Group has elected not to recognise right-of-use assets and lease liabilities of low value assets. The Group recognises
the lease payments associated with these leases as an expense on a straight line basis over the term of the lease.
Right-of-use assets related to leased properties and equipment are recognised under AASB 16 and presented in the
Adjustments to ROU assets due to reassessment or modification
Right-of-use assets:
Opening net book amount
Addition of new leases
Amortisation charge for the year
Closing net book amount
2022
$000
2021
$000
16,526
495
505
(1,975)
15,551
15,661
(134)
2,671
(1,672)
16,526
Quickstep Holdings Limited
33
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY
42
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
C. Capital and Financial Risk Management
Lease liabilities related to leased properties and equipment are recognised under AASB 16 and presented in the
C.2
Leases
Lease liabilities
following table.
Lease liabilities:
Current
Non-current
Total lease liabilities
Profit or Loss.
AASB 16 leases:
Interest on lease liabilities
Amortisation charge
Total expenses
Cashflows.
AASB 16 leases:
Total cash outflow for leases
Total cashflows
Amounts recognised in Consolidated Statement of Profit or Loss
The following table summarises expenses related to AASB 16 leases that are included in the Consolidated Statement of
Amounts recognised in Consolidated Statement of cash flows
The following table summarises cashflows related to AASB 16 leases that are included in the Consolidated Statement of
2022
$000
2021
$000
1,628
17,443
19,071
1,275
18,179
19,454
2022
$000
2021
$000
1,226
1,975
3,201
1,216
1,672
2,888
2022
$000
2021
$000
(1,308)
(1,308)
(1,147)
(1,147)
Quickstep Holdings Limited
34
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT
FINANCIAL
REPORT
43
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
C. Capital and Financial Risk Management
C.3
Finance Income and Finance Expenses
Finance income
Interest income
Finance expenses
Finance expenses
Net finance costs
Interest expense on liabilities measured at amortised cost
Interest expenses leased liabilities
Foreign currency gains or (losses)
Other expenses and adjustment to borrowing costs
Recognition and Measurement
Finance income and finance expenses
C.4
Financial Instruments
Current liability
Forward foreign exchange contracts – cash flow hedges
Recognition and Measurement
Fair Value Measurement
2022
$000
45
(347)
(1,226)
(346)
(108)
(2,027)
(1,982)
2021
$000
11
(364)
(1,216)
282
18
(1,280)
(1,269)
2022
$000
(593)
2021
$000
(18)
Finance income comprises interest income on funds invested (including available-for-sale financial assets). Interest
income is recognised as it accrues in profit and loss, using the effective interest method.
Finance expenses comprise interest expense on borrowings calculated using the effective interest method, transaction
costs, unwinding discounting of provisions, and foreign exchange gains and losses. The interest expense component of
finance lease payments is recognised in the profit and loss using the effective interest method.
When a derivative is designated as a cash flow hedging instrument, the effective portion of changes in the fair value of
the derivative is recognised in Other Comprehensive Income and accumulated in the cash flow hedge reserve. Any
ineffective portion of changes in the fair value of the derivative is recognised immediately in profit and loss. The Group
uses forward foreign exchange contracts to hedge its currency exposure risk in relation to sales in US dollars – all hedges
have a maturity date less than one (1) year from reporting date.
Valuation of Financial Measurement – cash flow hedges
Foreign currency forward contracts are initially recognised at fair value on the date a derivative contract is entered into
and are subsequently remeasured to their fair value at the end of each reporting period. The Group documents at the
inception of the hedging transaction the relationship between hedging instruments and hedged items, as well as its risk
management objective and strategy for undertaking various hedge transactions. The Group also documents its
assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in hedging
transactions have been and will continue to be highly effective in offsetting changes in fair values or cash flows of hedged
items.
Quickstep Holdings Limited
35
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY
44
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
C. Capital and Financial Risk Management
C.5
Financial Risk Management
Overview
The Group has exposure to the following risks from its use of financial instruments:
• Credit risk;
•
Liquidity risk, and
• Market risk.
This note presents information about the Group’s exposure to each of the above risks, its objectives, policies and
processes for measuring and managing risk, and the management of capital. Further quantitative disclosures are
included throughout these financial statements.
The Company’s Board of Directors has overall responsibility for the establishment and oversight of the risk management
framework and is responsible for developing and monitoring risk management policies.
Risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate risk
limits and controls, and to monitor risks and adherence to limits. Risk management policies and systems are reviewed
regularly to reflect changes in market conditions and the Group’s activities. The Group, through training and
management standards and procedures, aims to develop a disciplined and constructive control environment in which
all employees understand their roles and obligations.
The Group’s Audit, Risk and Compliance Committee oversees how management monitors compliance with the Group’s
risk management policies and formally documented procedures, and reviews the adequacy of the risk management
framework in relation to the risks faced by the Group.
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to meet
its contractual obligations, and arises principally from the Group’s receivables from customers and cash balances and
deposits. The carrying amount of the Group’s financial assets represents the maximum credit exposure.
Credit Risk
Trade receivables
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. However,
management also considers other characteristics including the default risk of the industry and country in which
customers operate, as these factors may have an influence on credit risk. Goods are generally sold subject to retention
of title clauses, so that in the event of non-payment the Group may have a secured claim. The Group does not require
collateral in respect of trade and other receivables.
Cash balances and deposits
that counterparties fail to meet their obligations as low.
As at the reporting date, financial assets are not impaired.
The Group limits its exposure to credit risk by only investing in liquid securities and only with counterparties that have
a credit rating of at least A+ from Standard & Poor’s. Given these high credit ratings, management has assessed the risk
Quickstep Holdings Limited
36
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT
FINANCIAL
REPORT
45
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
C. Capital and Financial Risk Management
C.5 Financial Risk Management
The Group’s maximum exposure to credit risk for trade and other receivables at the reporting date by
Exposure to credit risk
geographic region was:
Australia
United States of America
At 30 June 2022
Trade receivables
At 30 June 2021
Trade receivables
Liquidity Risk
2022
$000
2,567
6,406
8,973
2021
$000
2,644
6,201
8,845
9
113
25
14
The following are the contractual maturities of Trade receivables:
Carrying
amount
$000
Contractual
Cash flows
$000
Current
$000
+30 days
+60 days
$000
$000
+90 days
$000
+120 days
$000
8,973
8,973
8,454
209
276
8,845
8,845
8,087
282
349
Liquidity risk is the risk that the Group will encounter difficulty in meeting the obligations associated with its financial
liabilities that are settled by delivering cash or another financial asset. The Group’s approach to managing liquidity is to
ensure, as far as possible, that it will always have sufficient liquid assets to meet its liabilities when due, under both
normal and stressed conditions, without incurring unacceptable losses or risking damage to the Group’s reputation.
Typically, the Group ensures that it has sufficient cash or funds otherwise reasonably available to it from fundraising
activities to meet expected operational expenses, including the servicing of financial obligations. This excludes the
potential impact of circumstances that cannot reasonably be predicted.
The following are the contractual maturities of financial liabilities, including estimated interest payments and excluding
the impact of netting agreements:
At 30 June 2022
Trade and other payables
Secured bank loan
Working capital facility – ANZ
Lease liabilities
At 30 June 2021
Trade and other payables
Secured bank loan
Working capital facility – EFA
Lease liabilities
Quickstep Holdings Limited
Carrying
amount
$000
Contractual
Cash flows
Less than
6 months
$000
$000
6 – 12
months
$000
Between 1
Between 2
Greater
and 2 years
and 5 years
than 5 years
$000
$000
$000
19,393
(19,393)
(19,393)
3,846
6,000
19,071
48,310
(3,846)
(6,000)
(641)
(1,923)
-
(19,071)
(852)
(915)
(48,310)
(20,886)
(2,838)
-
(1,282)
(6,000)
(1,767)
(9,049)
(3,534)
(3,534)
(12,003)
(12,003)
13,352
(13,352)
(13,352)
5,769
1,900
19,454
40,475
(5,769)
(1,900)
(19,454)
(1,282)
(1,900)
(1,246)
(40,475)
(17,780)
(1,282)
(2,564)
(641)
-
-
(1,248)
(2,530)
(2,495)
(5,059)
(7,485)
(8,126)
(14,553)
(14,553)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
37
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY
46
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
C. Capital and Financial Risk Management
C.5
Financial Risk Management
Market Risk
Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates, will affect the
Group’s income or the value of its holdings of financial instruments. The objective of market risk management is to
manage and control market risk exposures within acceptable parameters, while optimising the return.
Interest rate risk
The Group has entered into a variable rate loan agreement for a period of 2.5 years. The applicable interest rate is re-
set on a monthly basis in accordance with the 30 days bank bill rate.
The Group is exposed to interest rate risk pre-dominantly on cash balances and deposits and loans and borrowings.
Given the relatively short investment horizon for these, management has not found it necessary to establish a policy on
managing the exposure of interest rate risk.
Profile
At the reporting date the interest rate profile of the Group’s interest-bearing financial assets/ (liabilities) was:
2022
$000
2021
$000
891
733
3,021
(3,846)
(6,000)
-
(6,825)
2,353
(5,769)
-
(1,900)
(5,316)
Fixed rate instruments
Held-to-maturity term deposits
Variable rate instruments
Cash and cash equivalents
Secured bank loan
Working capital facility agreement – ANZ
Short term facility agreement – EFA
Total variable rate instruments
Held-to maturity term deposits
As at the end of the reporting period, the Group had the following instruments outstanding:
Amount
$891,000
Interest rate
Maturity date
0.10%
18 August 2022
As at 30 June 2022 the group holds financial guarantees of $891,000 as security for its property leases. These
guarantees are held in a fixed rate term deposit as detailed above.
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would have increased (decreased) profit or loss by
the amounts shown below. This analysis assumes that all other variables, in particular foreign currency rates, remain
constant. The analysis is performed on the same basis as FY21.
Variable rate instruments – increase by 100 basis points
Variable rate instruments – decrease by 100 basis points
2022
$000
(9)
9
2021
$000
(53)
53
Quickstep Holdings Limited
38
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT
FINANCIAL
REPORT
47
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
C. Capital and Financial Risk Management
C.5
Financial Risk Management
Currency risk
The Group is exposed to currency risk on sales, purchases and cash holdings that are denominated in a currency other
than the respective functional currencies of Group entities, primarily the Australian dollar (AUD), Euro (EUR), Great
Britain Pounds (GBP) and US Dollar (USD). The currencies in which these transactions primarily are denominated are
AUD, EUR and USD.
short-term imbalances.
in nature.
In respect of other monetary assets and liabilities denominated in foreign currencies, the Group ensures that its net
exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to address
The Group’s investment in its German subsidiary is not hedged as the currency positions are considered to be long-term
The Group’s exposure to foreign currency risk at the end of the reporting period was as follows:
2022
USD 000
2022
EUR 000
2022
GBP 000
2021
USD 000
2021
EUR 000
2021
GBP000
Receivables
Cash
Trade payables
6,406
997
(7,090)
313
-
-
(33)
(33)
-
-
(201)
(201)
3,531
1,454
(3,415)
1,570
-
-
(23)
(23)
-
-
(62)
(62)
The following significant exchange rates applied have been applied:
A 10 percent movement of the Australian dollar against the following currencies at 30 June would have affected the
movement of financial instruments denominated in a foreign currency and effected profit and loss by the amounts
shown below. This analysis assumes that all other variables, in particular interest rates, remain constant and ignores
any impact of forecast sales and purchases. The analysis is performed on the same basis as FY21.
AUD v USD
AUD v EUR
AUD v GBP
Sensitivity analysis
Index
US/AUD exchange rate – increase (10%)
US/AUD exchange rate – decrease 10%
EUR/AUD exchange rate – increase (10%)
EUR/AUD exchange rate – decrease 10%
GBP/AUD exchange rate – increase (10%)
GBP/AUD exchange rate – decrease 10%
Fair Value Hierarchy
Average rate
Year-end spot rate
2022
0.7261
0.6439
0.5454
2021
0.7480
0.6268
0.5532
2022
0.6898
0.6568
0.5658
2021
0.7563
0.6344
0.5450
Profit or loss
Equity, net of tax
2022
$000
(41)
50
5
(6)
32
(39)
1
2021
$000
(189)
231
3
(4)
10
(12)
39
2022
$000
(41)
50
5
(6)
32
(39)
1
2021
$000
(189)
231
3
(4)
10
(12)
39
Financial assets and liabilities, including foreign currency hedges are considered level 2 in the fair value hierarchy. The
carrying value of financial assets and liabilities carried at amortised costs, approximate their fair value. During the year,
there have been no transfers between levels in the fair value hierarchy. The fair value of investments are considered
Level 3 based on the recent transaction price, which is consistent between transaction date and 30 June 2022.
Quickstep Holdings Limited
39
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY
48
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
C. Capital and Financial Risk Management
C.6
Capital and Reserves
Capital Management
The Group’s objectives are to safeguard the Group’s ability to continue as a going concern and maintain a strong capital
base sufficient to maintain future development in accordance with the business strategy. In order to maintain or adjust
the capital structure, the Group may return capital to shareholders or issue new shares. The Group’s focus has been to
raise sufficient funds through equity and borrowings so as to fund its working capital, business growth and
commercialisation of technology as outlined in note A Going concern (p.23). There were no changes in the Group’s
approach to capital management during the year.
Movements in Share Capital
Opening balance
Consolidation of Issued Shares
Shares issued under share based payments arrangements
Shares issued to Quickstep Employee Exempt Share Plan
2022
Shares
716,269,344
(644,641,340)
-
98,210
2021
Shares
2022
$000
2021
$000
713,435,303
120,785
120,785
2,834,041
-
-
-
-
-
-
-
-
Closing balance
71,726,214
716,269,344
120,785
120,785
During the year, the Company issued NIL (2021: 2,834,0141) shares pursuant to share-based payment arrangements
with certain key management personnel and issued 98,201 (2021: NIL) shares to its employees under Exempt Share
The Company consolidated its issued share capital (in the ratio of one share for every 10 shares held) at its 2021 Annual
General Meeting of Shareholders on 18 November 2021.
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary shares and share
options are recognised as a deduction from equity, net of any tax effects.
The Company does not have authorised capital or par value in respect of its issued shares. All issued shares are fully
Plan.
paid.
There are Nil (2020 Nil) unissued ordinary shares of Quickstep Holdings Limited under option at the date of this report.
No options were granted during the year and since the end of the financial year.
The translation reserve comprises all foreign currency differences arising from the translation of the financial statements
of foreign operations, as well as the effective portion of any foreign currency differences arising from hedges of a net
Nature and purpose of reserves
Translation reserve
investment in a foreign operation.
Cash flow hedge reserve
The hedging reserve comprises the effective portion of the cumulative net change in the fair value of hedging
instruments used in cash flow hedges pending subsequent recognition in profit or loss or directly included in the initial
cost or other carrying amount of a non-financial asset or non-financial liability.
Share based payments reserve
The reserve for share based payments comprises the fair value of equity instruments granted by the Group based on
market prices taking into account the terms and conditions upon which the instruments were granted.
Quickstep Holdings Limited
40
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT
FINANCIAL
REPORT
49
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
C. Capital and Financial Risk Management
C.7
Capital and Other Commitments
Significant capital expenditure contracted for at the end of the reporting period but not recognised as liabilities is as
Other Commitments – Pledged as Collateral against Secured Bank Loan
On 18 February 2021 Quickstep Holdings Limited (the Company) executed a loan agreement with Australian and New
Zealand Banking Group Limited (ANZ) to refinance the existing ANZ facility and fund the acquisition of QAS. The
Company has provided ANZ with a Corporate Guarantee and Indemnity as well as a security interest over the Group’s
assets by way of a General Security Agreement (GSA). In addition, the Company, ANZ and Export Finance Australia (EFA)
are party to a Security Sharing Deed:
2022
$000
52
2021
$000
289
2022
$000
3,021
9,043
14,910
13,998
2021
$000
2,353
8,844
9,660
14,995
Under the agreement with ANZ, Quickstep Holdings Limited and the other Group companies party to the GSA have
agreed to the following restricted dealings. Without the consent of ANZ they may not:
• Create or allow another interest in any Collateral other than and Permitted Encumbrance,
• Dispose, or part with possession, of any Collateral.
Quickstep Holdings Limited has entered into a subordination agreement which subordinates certain intercompany debts
due to it from Quickstep Technologies Pty Ltd to the amounts due under the Export Finance Facility.
Restructuring costs
Make good provision
$000
-
-
-
-
$000
3,448
-
-
3,448
Total
$000
3,448
-
-
3,448
Quickstep is required to restore all leased premises to their original condition at the end of the respective lease terms.
A provision has been recognised for the present value of the estimated expenditure required to remove any leasehold
improvements. These costs have been capitalised as part of the cost of leasehold improvements and are amortised
41
Capital Commitments
follows:
Property, plant and equipment
Cash and cash equivalents
Trade and other receivables
Inventories
Property, plant and equipment
C.8
Provisions
Balance at 1 July 2021
Provisions made during the year
Provisions used during the year
Balance at 30 June 2022
over the term of the lease.
Quickstep Holdings Limited
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY
50
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
D. Operating Assets and Liabilities
This section provides information relating to the operating assets and liabilities of the Group. Quickstep has a strong
focus on maintaining a strong balance sheet through continued focus on cash conversion. The Group’s strategy also
considers expenditure, growth and acquisition requirements.
D.1 Trade and Other Receivables
D.2
Inventories
D.3 Contract Assets
D.4 Property, Plant and Equipment and Software
D.5
Intangibles
D.6 Goodwill
D.1
Trade and Other Receivables
Current assets
Trade receivables
Other receivables
All trade receivables are current.
Recognition and Measurement
Non-derivative financial assets
2022
$000
8,973
70
9,043
2021
$000
8,744
101
8,845
The Group initially recognises loans and receivables and deposits on the date that they are originated. All other financial
assets (including assets designated at fair value through profit or loss) are recognised initially on the trade date at which
the Group becomes a party to the contractual provisions of the instrument.
The Group de-recognises a financial asset when the contractual rights to the cash flows from the asset expire, or it
transfers the rights to receive the contractual cash flows on the financial asset in a transaction in which substantially all
the risks and rewards of ownership of the financial asset are transferred.
Quickstep Holdings Limited
42
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT
FINANCIAL
REPORT
51
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
D. Operating Assets and Liabilities
D.2
Inventories
Current assets
Raw materials and consumables
Work in progress
Recognition and Measurement
Inventories
completion and selling expenses.
D.3
Contract Assets
Current
2022
$000
14,733
177
14,910
2021
$000
9,239
421
9,660
2022
$000
10,294
2021
$000
8,051
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on the first in
first out principle, and includes expenditure incurred in acquiring the inventories, production or conversion costs and
other costs incurred in bringing them to their existing location and condition. In the case of manufactured inventories
and work in progress, cost includes an appropriate share of production overheads based on normal operating capacity.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of
Contract assets primarily relate to the Group’s rights to consideration for work performed but not billed at the reporting
date. Under AASB 15 the Group has determined that for made-to-order parts, the customer controls all the work in
progress as the products are being manufactured. This is because under those contracts, parts, are made to a customer’s
specification and if a contract is terminated by the customer, then the Group is entitled to reimbursement of the costs
incurred to date, including a reasonable margin. Therefore, revenue from these contracts and the associated costs are
recognised over time – i.e., before the goods are delivered to the customers’ premises. Invoices are issued according to
contractual terms. Uninvoiced amounts are presented as contract assets.
Quickstep Holdings Limited
43
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY
52
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
D. Operating Assets and Liabilities
D.4
Property, Plant and Equipment and Software
Opening net book amount
June 2022
Additions
Acquired through business combination
Government funding received
Transfers from assets under construction
Plant and
equipment
$000
Assets under
Office furniture
construction
& equipment
$000
$000
Software
$000
1,602
1,280
396
382
(2,638)
884
94
12,997
-
-
(104)
1,660
(5)
309
(2,530)
-
12,328
43,057
(30,729)
12,489
-
748
(68)
2,036
(12)
406
(2,602)
12,997
39,854
(26,857)
245
245
4,305
2,902
(304)
(2,489)
-
-
-
-
-
-
-
-
-
-
-
-
-
(2,812)
1,602
1,602
-
-
-
-
-
-
-
-
-
-
-
-
Total
$000
15,378
1,280
(104)
(5)
309
-
-
-
17,335
2,902
748
(372)
-
(12)
406
(2,817)
(2,812)
15,378
42,285
(28,591)
(176)
(153)
(2,859)
1,103
2,165
(1,062)
323
2,028
(1,705)
13,999
47,495
(33,496)
213
328
298
155
(115)
(100)
396
1,271
(875)
383
1,242
(859)
-
-
-
-
-
-
-
-
-
-
-
-
Disposals
Amortisation of grant
Depreciation charge
Impairment charge
Closing net book amount
Cost
Accumulated depreciation
Opening net book amount
June 2021
Additions
Disposals
Amortisation of grant
Depreciation charge
Impairment charge
Closing net book amount
Cost
Accumulated depreciation
Acquired through business combination
Customer and government funding received
Transfers from assets under construction
Quickstep Holdings Limited
44
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT
FINANCIAL
REPORT
53
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
D. Operating Assets and Liabilities
D.4
Property, Plant and Equipment and Software
Recognition and Measurement
Property, Plant and Equipment
Items of property, plant and equipment are measured at cost less accumulated depreciation and accumulated
impairment losses. Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-
constructed assets includes the cost of materials and direct labour, any other costs directly attributable to bringing the
assets to a working condition for their intended use, the costs of dismantling the items and restoring the site on which
they are located and capitalised borrowing costs.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate
items (major components) of property, plant and equipment. The gain or loss on disposal of an item of property, plant
and equipment is determined by comparing the proceeds from disposal with the carrying amount of property, plant and
equipment and is recognised net within other income/other expense in profit or loss.
Government grants that compensate the Group for the cost of an asset are recognised as a deduction in arriving at the
carrying value of the asset.
Depreciation
Depreciation is based on the cost of an asset less its residual value. Significant components of individual assets are
assessed and if a component has a useful life that is different from the remainder of the asset, that component is
depreciated separately. Depreciation is recognised in profit and loss on a reducing balance basis over the estimated
useful lives of each component of an item of property plant and equipment.
The depreciation rates used for each class of depreciable asset for the current and prior years are:
Class of Asset
Depreciation Rates
Plant and factory equipment
Office equipment
4% to 51%
3% to 52%
Impairment
The carrying amounts of the Group’s assets are reviewed at each reporting date to determine whether there is any
indication of impairment. If any such indication exists, the asset’s recoverable amount is estimated. An impairment loss
is recognised if the carrying amount of an asset exceeds its estimated recoverable amount.
Impairment losses are recognised in the statement of comprehensive income unless the asset has previously been
revalued, in which case the impairment loss is recognised as a reversal to the extent of that previous revaluation with
any excess recognised through the statement of comprehensive income.
The impairment charge in 2021 related to the write down in the carrying value of the flare housing facility due to the
unsuccessful proposal to supply MJU-68B flare housings to Chemring Australia.
Quickstep Holdings Limited
45
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY
54
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
D. Operating Assets and Liabilities
D.5
Investments
Non-current Investments
June 2022
$000
3,044
June 2021
$000
-
Quickstep made a $1.0m investment in a minority stake in Carbonix, an Australian private company with strong
capability in the design, development, manufacture and operation of next generation unmanned solutions for
commercial and military applications, under Quickstep Technologies Pty Ltd (a wholly owned subsidiary of Quickstep).
Quickstep will recognise subsequent changes in the fair value of the Carbonix investment in Other Comprehensive
Income.
An additional $2.0m investment was made in convertible notes issued by Swoop Aero Pty Ltd (Swoop) an Australian
company with strong capability in the design, development, manufacture and operation of next generation unmanned
solutions for commercial cargo applications. Quickstep has paid $0.5m in cash in respect of this investment in Swoop
and the remaining $1.5m obligation is covered under a Strategic Supply Agreement (SSA), which requires Quickstep to
supply engineering, manufacturing services, tooling and an initial production run of aircraft for Swoop’s recently
launched KITETM unmanned cargo aircraft. The delivery under the Strategic Supply Agreement is expected to commence
in July 2022. The $1.5m obligation under the SSA is recorded in Other Liabilities. On 18 March 2022 the automatic
conversion to equity was triggered by a qualifying finance event. Quickstep earnt interest on the Convertible Note to 16
March 2022 – being $43,539. Total Conversion Value is $2,000,000 plus $43,539 in Interest.
The fair value of these Level 3 Investments is based on the recent third party prices, which is consistent between the
Quickstep transaction date and 30 June 2022.
Quickstep Holdings Limited
46
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT
FINANCIAL
REPORT
55
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
D. Operating Assets and Liabilities
D.6 Goodwill
Assessing for impairment to Goodwill
above their recoverable amounts:
•
at least annually for goodwill
The group tests property, plant and equipment and intangible assets for impairment to ensure they are not carried at
• where there is an indication that the assets may be impaired (which is assessed at least each reporting date).
These tests for impairment are performed by assessing the recoverable amount of each individual asset or, if this is not
possible, then the recoverable amount of the cash generating unit (CGU) to which the asset belongs. CGUs are the
lowest levels at which assets are grouped and generate separately identifiable cash flows. The recoverable amount is
determined each reporting period using the CGU’s fair value which is calculated using the discounted cash flows
expected to arise from the asset. Management judgment is required in these valuations to forecast future cash flows
and to determine a suitable discount rate in order to calculate the present value of these future cash flows.
If the recoverable amount of a cash generating unit is estimated to be less than its carrying amount, the carrying amount
of the cash generating unit is reduced to its recoverable amount with any impairment recognised through the statement
of comprehensive income.
The carrying amount of QAS goodwill is $2,287,000 (30 June 2021: $2,287,000). The recoverable amounts of the cash
generating units that include goodwill are determined using discounted cash flow projections.
Key assumptions used in the impairment assessments:
• Cash flow forecasts: The cash flows are modelled over a five-year period with a terminal value used from year
six onwards. The first five years represent financial plans forecast by management, based on the group's view
of the most recent outlook on MRO activity levels, with the terminal year representing long-term average
activity levels.
•
•
Pre-tax discount rate: The valuation is calculated using an annual discount rate of 10.32%.
Terminal value: The terminal value annual growth rate assumed is 3.35%.
Key assumptions used in the impairment assessment are consistent with those outlined above. The cash flow forecast
for QAS assumes a recovery in market activity. Following the detailed impairment review of future cash flow
projections, the recoverable amount of the CGU is estimated to exceed the carrying amount of the CGU at 30 June
2022. The impact of reasonable possible changes in key assumptions has also been considered and no goodwill
impairment has been identified.
Quickstep Holdings Limited
47
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY
56
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
E. Employee Benefits
This section provides a breakdown of the various programs Quickstep uses to reward and recognise employees and Key
Management Personnel (KMP). Quickstep believes that these programs reinforce the value of ownership and incentives
and drive performance both individually and collectively to deliver better returns to shareholders.
E.1 Employee Benefit Obligations
E.2 Employee Benefit Expense
E.3 Related Party Transactions
E.4 Quickstep Incentive Rights Plan (IRP)
E.5 Equity Settled Short Term Incentive
E.1
Employee Benefit Obligations
Employee benefit obligation
- Annual leave (current)
- Long service leave (non-current)
Recognition and Measurement
Long service leave
E.2
Employee Benefit Expense
Wages and salaries
Defined superannuation contribution expense
Increase in leave liabilities
Share based payments expense
The liabilities for long service leave are not expected to be settled wholly within 12 months after the end of the period
in which the employees render the related service. They are therefore recognised in the provision for employee benefits
and measured as the present value of expected future payments to be made in respect of services provided by
employees up to the end of the reporting period using the projected unit credit method. Consideration is given to future
wages and salaries, experience of employee departures and periods of service. Expected future payments are
discounted using market yields at the end of the reporting period of high quality corporate bonds with terms and
currencies that match, as closely as possible, the estimated future cash outflows. Remeasurements as a result of
experience adjustments and changes in actuarial assumptions are recognised in profit or loss.
2022
$000
1,990
1,515
3,505
2021
$000
2,073
1,235
3,308
2022
$000
26,916
2,289
197
166
29,568
2021
$000
24,951
2,353
891
368
28,563
Quickstep Holdings Limited
48
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT
FINANCIAL
REPORT
57
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
E. Employee Benefits
E.2
Employee Benefit Expense
Recognition and Measurement
Wages and salaries
Liabilities for wages and salaries, including non-monetary benefits and annual leave expected to be settled within 12
months after the end of the period in which the employees render the related service, are recognised in respect of
employees’ services up to the end of the reporting period and are measured at the amounts expected to be paid when
the liabilities are settled. The liability for annual leave is recognised in the provision for employee benefits. All other
short-term employee benefit obligations are presented as payables.
Share-based payment transactions
An expense is recognised for all equity-based remuneration including shares, rights and options issued to employees
and Directors. The fair value of equity instruments granted is recognised, together with a corresponding increase in
equity, over the period in which the performance and/or service conditions are fulfilled, ending on the date on which
the relevant employees become fully entitled to the award (‘vesting date’). The amount recognised is adjusted to reflect
the actual number of shares and options that vest, except for those that fail to vest due to market conditions not being
met. The fair value of equity instruments granted is measured using a generally accepted valuation model, taking into
account the terms and conditions upon which the equity instruments were granted. The fair value of shares, options
and rights granted is measured based on relevant market prices at the grant date.
The key management personnel compensation included in “Employee benefit expense” in Note E.2 is as follows:
E.3
Related Party Transactions
Key Management Personnel Compensation
Short-term employee benefits
Share-based payments
The total value of the rights is allocated to remuneration over the vesting period.
2022
$000
1,284
154
1,438
2021
$000
1,162
221
1,383
Quickstep Holdings Limited
49
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY
58
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
E. Employee Benefits
E.4 Quickstep Incentive Rights Plan (IRP)
During the 2014 financial year the Company established the Quickstep Incentive Rights Plan (IRP).The IRP was designed
to facilitate the Company moving towards best practice remuneration structures for executives. The Board reviews the
Rights Plan from time to time and adjusts the Rules to ensure the IRP continues to reflect market practice and remained
appropriate for the Company. These Revised Rules were approved by shareholders at the Company’s 2019 Annual
General Meeting on 18 November 2021.
The IRP authorises the granting of Rights to executives of the Company, in the form of Performance Rights (PRs) and/or
Deferred Rights (DRs) (together, Rights). These rights represent an entitlement on vesting to fully paid ordinary shares
in the issued capital of the Company (Shares) with the total value of Shares being equal to the value of vested Rights
(number of vested Rights x market value of a Share). PRs may vest if Performance Conditions are satisfied. DRs may vest
if service conditions are satisfied. Further details regarding the IRP are set out in the Remuneration Report.
During 2022 an expense of $98,000 (2021: $387,000) has been recognised in the financial statements in respect of the
portion of the fair value of rights attributable to the current financial year as required by accounting standards.
A Monte-Carlo model was used to value the rights. The model’s key assumptions were as follows:
In Relation to Performance Rights
Tranche
FY18
FY19
FY20
FY21
FY22
Director
Rights
FY22
Management
Rights
Grant date
1/12/2017
1/09/2018
1/09/2019
15/01/2021
18/11/2021
16/12/2021
First testing date
31/08/2020
31/08/2021
31/08/2022
31/08/2023
Expiry date
31/08/2022
31/08/2023
31/08/2024
31/08/2025
1/09/2024
1/09/2024
1/09/2024
1/09/2024
Share price at grant date
Expected life (years)
Risk free factor
Volatility of QHL
Volatility of AOAI
Volatility of XSO
Dividend yield
$0.09
3.1
1.93%
40%
12%
-
0%
$0.09
3.3
2.03%
40%
12%
-
0%
$0.12
3.3
1.04%
50%
12%
-
0%
$0.09
3
0.11%
55%
20%
-
0%
$0.52
2.8
0.97%
55%
-
21%
0%
$0.45
2.7
1.00%
55%
-
21%
0%
Quickstep Holdings Limited
50
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT
FINANCIAL
REPORT
59
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
E. Employee Benefits
E.4 Quickstep Incentive Rights Plan (IRP)
Rights
Movements in unissued shares under rights:
2022
No of rights
34,577,143
(31,119,429)
2021
No of rights
31,118,897
927,515
9,242,025
-
(363,870)
(1,608,402)
2,776,827
(5,419,909)
34,577,143
Opening balance
Consolidation of Rights Granted
Granted during the year
Rights vested
Rights forfeited/lapsed
Closing balance
The rights are issued pursuant to:
•
•
completed.
conditions and service criteria.
Executive services agreements, which rights vest at various times in the future according to years of service
• Offers under the Incentive Rights Plan (IRP), which vests at various future dates upon satisfaction of performance
The exercise price of the rights is Nil and the rights are lapsed if employment is terminated prior to the vesting date.
E.5
Equity Settled Short Term Incentive
In 2022, Employees are eligible to receive short term incentives (STI) in cash based on achievement of key performance
indicators (KPIs), noting that certain executives received their STI in shares in 2022. Each year the RN&D Committee
considers the appropriate targets and KPIs and the alignment of individual rewards to the Group’s performance. These
targets may include measures related to the annual performance of the Group and/or specified parts of the Group and
are measured against actual outcomes.
In 2022 NIL (2021: 1,296,522) shares were issued to employees in relation to Short Term Incentive.
Quickstep Holdings Limited
51
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY
60
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
F. Other Disclosures
standards and other pronouncements.
This section provides details on other required disclosures relating to the Group to comply with the accounting
Group Entities
Parent Entity Financial Information
Deed of Cross Guarantee
Auditors’ Remuneration
Business Combinations
Subsequent Events
F.1
F.2
F.3
F.4
F.5
F.6
F.7
New Accounting Standards Not Yet Adopted
* Companies entered into deed of cross guarantee with Quickstep Holdings Limited.
^ De-registered during the year.
F.2 Parent Entity Financial Information
As at, and throughout, the financial year ending 30 June 2022 the parent entity of the Group was Quickstep Holdings
F.1 Group Entities
Name of entity
Parent entity
Quickstep Holdings Limited
Controlled entities
Quickstep Technologies Pty Limited *
Quickstep Systems Pty Limited *
Quickstep GmbH
Quickstep Automotive Pty Limited *
Quickstep Aerospace Pty Limited *
Quickstep USA Inc.
Quickstep Aerospace Services Pty Limited*
Quickstep Unmanned Services Pty Limited^
Limited.
Results of the parent entity
(Loss) for the year
Total Comprehensive (loss)
Total assets
Total liabilities
Net assets / (liabilities)
Financial position of the parent entity at year end
Total equity of the parent entity comprises
Share capital
Share based payments reserve
Accumulated losses
Total equity
Ownership Interest
Country of
Incorporation
2022
%
2021
%
Australia
Australia
Australia
Germany
Australia
Australia
USA
Australia
Australia
100
100
100
100
100
100
100
n/a
100
100
100
100
100
100
100
100
2022
$000
2021
$000
(2,981)
(2,981)
11,427
(3,403)
8,024
120,785
6,899
(119,660)
8,024
(7,138)
(7,138)
8,780
(9,119)
(339)
120,785
6,733
(127,857)
(339)
Quickstep Holdings Limited
52
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT
FINANCIAL
REPORT
61
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
F. Other Disclosures
F.3 Deed of Cross Guarantee
Under the terms of ASIC Corporations (Wholly owned Companies) Instrument 2016/785, certain wholly owned
controlled entities have been granted relief from the requirement to prepare audited financial reports. Quickstep
Holdings Limited has entered into an approved deed of indemnity for the cross-guarantee of liabilities with those
controlled entities in Note F.1.
The following consolidated Statement of Comprehensive Income and Balance Sheet comprise Quickstep Holdings
Limited and its controlled entities which are party to the Deed of Cross Guarantee (refer Note F.1), after eliminating
all transactions between parties to the Deed.
Statement of Profit and other Comprehensive Income
Revenue
Profit / (loss) before income tax
Total comprehensive income for the year
2022
$000
86,675
(1,081)
951
(130)
(575)
(704)
2021
$000
84,286
(325)
900
575
22
597
Property, plant and equipment and software
Income tax benefit
Profit for the year
Cash flow hedges
Balance Sheet
Assets
Current assets
Cash and cash equivalents
Term deposits
Trade and other receivables
Contract asset
Prepayments and other assets
Inventories
Total current assets
Non-current assets
Right-of-use asset
Goodwill
Investments
Deferred tax asset
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Provisions
Financial instruments
Loans and borrowings
Lease liabilities
Employee benefit obligations
Total current liabilities
Non-current liabilities
Loans and borrowings
Lease liabilities
Provisions
Employee benefit obligations
Total non-current liabilities
Total liabilities
Net assets
Equity
Share capital
Reserves
Accumulated losses
Total equity
Quickstep Holdings Limited
2,949
891
9040
10,294
1,640
14,910
39,725
13,675
15,551
2,610
3,044
5,052
39,932
79,657
20,781
-
593
2,564
1,628
1,990
27,556
180
17,443
3,448
1,515
22,586
50,142
29,515
2,304
733
8,102
8,052
915
9,008
29,114
14,622
13,985
2,287
-
4,101
34,995
64,109
11,531
-
18
4,464
983
2,072
19,068
3,205
15,874
3,189
1,236
23,504
42,572
21,537
120,749
6,976
(98,210)
29,515
120,785
7,385
(106,633)
21,537
53
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY
62
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
F. Other Disclosures
F.4 Auditor’s Remuneration
Amounts received or due and receivable by the auditor KPMG for:
Audit services
Other services
Accounting and tax services
Total non-audit fee
F.5 Business Combinations
Property, plant and equipment
Rotable assets
Right of use asset
Inventory and consumables
Employee liabilities
Lease liability
Make good provision
Add: Goodwill
Total assets acquired
Identifiable net assets acquired (fair value)
assets acquired were as follows.
Property, plant and equipment:
2022
$
2021
$
245,000
223,400
245,000
11,385
11,385
234,785
2022
$000
2021
$000
498
250
2,671
455
(591)
(2,671)
(259)
353
2,287
2,640
-
-
-
-
-
-
-
-
-
-
-
-
During the year ended 30 June 2022 there were no investments made resulting in a business combination.
Identifiable assets are measured at fair value. The valuation techniques used for measuring fair value of material
Market comparison technique and cost technique: The valuation model considers market prices for similar items
when they are available, and depreciated replacement cost when appropriate. Depreciated replacement cost
reflects adjustments for physical deterioration as well as functional and economic obsolescence.
Inventories:
Market comparison technique: The fair value is determined based on the estimated selling price in the ordinary
course of business less the estimated costs of completion and sale, and a reasonable profit margin based on the
effort required to complete and sell the inventories.
Quickstep Holdings Limited
54
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT
FINANCIAL
REPORT
63
Notes to the Consolidated Financial Statements
for the year ended 30 June 2022
F. Other Disclosures
F.6 Subsequent Events
report that would significantly affect:
•
•
•
the operations of the Consolidated Entity;
the results of those operations; and
the state of affairs of the Consolidated Entity.
On that basis, the following subsequent events are disclosed.
Export Finance Australia loan facility
Management have considered the matters or circumstances that have arisen since 30 June 2022 up to the date of this
In July 2022, the Group executed a new loan facility with Export Finance Australia for the amount of $5.0 million. The
term of the new facility is 18 months ending 31 December 2023. This new facility will be applied to fund additional
interim working capital requirements arising from H2 FY22 operational challenges. Investigation of further funding
sources to support the Group’s operational and strategic requirements continues. Furthermore, a customer cash
advance and accelerated customer payment terms have been negotiated in August 2022.
Other than the matters disclosed above, no matter or circumstance has arisen since 30 June 2022 that has significantly
affected the Group’s operations, results or state of affairs, or may do so in future years.
F.7 New Accounting Standards 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 been early adopted by the Group. These standards are not expected to have a material
impact on the entity in the current or future reporting periods
Quickstep Holdings Limited
55
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY
64
Director’s Declaration
for the year ended 30 June 2022
In the Directors' opinion:
including:
i.
ii.
and
(a)
the consolidated financial statements and notes set out on pages 25 to 63 and the Remuneration
report on pages 17 to 24 in the Director’s report, are in accordance with the Corporations Act 2001,
complying with Australian Accounting Standards and the Corporations Regulations 2001;
giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its
performance for the year ended on that date; and
(b)
there are reasonable grounds to believe that the Company will be able to pay its debts as and
when they become due and payable.
The directors have been given the declarations required by section 295A of the Corporations Act 2001 from
the chief executive officer and chief financial officer for the financial year ended 30 June 2022.
The directors confirm that the financial statements comply with International Financial Reporting Standards
as issued by the International Accounting Standards Board.
There are reasonable grounds to believe that the Company and the Group entities identified in Note F.1 will
be able to meet any obligations or liabilities to which they are, or may become, subject to by virtue of the
Deed of Cross Guarantee between the Company and those Group entities pursuant to ASIC Corporations
(Wholly owned Companies) Instrument 2016/785.
This declaration is made in accordance with a resolution of Directors.
Mr. M H Burgess
Director
29 August 2022
Sydney, New South Wales
Quickstep Holdings Limited
56
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT
FINANCIAL
REPORT
65
Auditor’s Independence Declaration
Lead Auditor’s Independence Declaration under
Section 307C of the Corporations Act 2001
Lead Auditor’s Independence Declaration under
To the Directors of Quickstep Holdings Limited
Section 307C of the Corporations Act 2001
I declare that, to the best of my knowledge and belief, in relation to the audit of Quickstep Holdings
Limited for the financial year ended 30 June 2022 there have been:
To the Directors of Quickstep Holdings Limited
i.
no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
I declare that, to the best of my knowledge and belief, in relation to the audit of Quickstep Holdings
no contraventions of any applicable code of professional conduct in relation to the audit.
ii.
Limited for the financial year ended 30 June 2022 there have been:
no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
i.
ii.
KPM_INI_01
KPM_INI_01
KPMG
KPMG
PAR_SIG_01
PAR_NAM_01
PAR_POS_01
PAR_DAT_01
PAR_CIT_01
PAR_SIG_01
PAR_NAM_01
PAR_POS_01
PAR_DAT_01
PAR_CIT_01
Partner
Daniel Camilleri
Sydney
29 August 2022
Partner
Daniel Camilleri
Sydney
29 August 2022
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated
with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and
logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by
a scheme approved under Professional Standards Legislation.
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated
with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and
logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by
a scheme approved under Professional Standards Legislation.
57
57
Director’s Declaration
for the year ended 30 June 2022
LEAD AUDITOR’S INDEPENDENCE DECLARATION TO BE INSERTED
Quickstep Holdings Limited
57
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY
66
Independent Auditor’s Report
Independent Auditor’s Report
To the shareholders of Quickstep Holdings Limited
Report on the audit of the Financial Report
We have audited the Financial Report of
The Financial Report comprises:
Opinion
Quickstep Holdings Limited (the
Company).
In our opinion, the accompanying
Financial Report of the Company is in
accordance with the Corporations Act
2001, including:
• Consolidated balance sheet as at 30 June 2022;
• Consolidated statement of profit or loss and other
comprehensive income, Consolidated statement of
changes in equity, and Consolidated statement of cash
flows for the year then ended 30 June 2022;
• Notes including a summary of significant accounting
• giving a true and fair view of the
Group's financial position as at 30 June
policies;
2022 and of its financial performance for
• Directors' Declaration.
the year ended on that date; and
• complying with Australian Accounting
Company) and the entities it controlled at the year-end or
Standards and the Corporations
from time to time during the financial year.
The Group consists of Quickstep Holdings Limited (the
Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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 Corporations Act 2001 and the ethical
requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of
the Financial Report in Australia. We have fulfilled our other ethical responsibilities in accordance with the
Code.
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated
with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and
logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by
a scheme approved under Professional Standards Legislation.
58
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT FINANCIAL
REPORT
67
Independent Auditor’s Report
Key Audit Matters
are:
• Revenue recognition
The Key Audit Matters we identified
Key Audit Matters are those matters that, in our
professional judgement, were of most significance in our
audit of the Financial Report of the current period.
• Going concern basis of accounting
These matters were addressed in the context of our audit of
the Financial Report as a whole, and in forming our opinion
• Recognition of deferred tax assets
thereon, and we do not provide a separate opinion on these
relating to tax losses
matters.
Revenue recognition ($86,675,000)
Refer to Note B.1 ‘Key Performance Measures’ to the Financial Report
The key audit matter
How the matter was addressed in our audit
The Group generates revenue through sale of
Our procedures included:
goods to customers under contractual
arrangements and the Group’s policy is that
revenue is recognised over time based on
performance completed to date of each
individual customer’s made to order parts.
We focused on revenue recognition as a key
audit matter due to the judgement required to
determine the timing of revenue recognition,
the significance of the quantum of revenue
recognised combined with the large volume of
transactions. This necessitated additional audit
effort across the transactions.
(cid:120) Obtaining an understanding of the Group’s
process for revenue recognition and
assessing the Group’s revenue recognition
policy in accordance with the accounting
standards;
(cid:120) Testing a sample of revenue transactions
recognised for customer orders completed during
the year to customer invoices, certificates of
conformity, customer signed dispatch dockets or
other signed evidence of delivery and remittance
advice (where applicable);
(cid:120) Selecting a sample of pre and post year end
revenue transactions and assessing the
recognition of revenue in the period to underlying
certificates of conformity, customer signed
dispatch dockets or other signed evidence of
delivery and remittance advice (where applicable)
or other evidence that performance obligations
have been met;
(cid:120) Selecting a sample of transactions of customer
purchase orders in progress from the Group’s
Work in Progress Report, and checked the labour
and materials performance completed to date to
underlying documentation, such as, invoices and
timesheets to assess the recognition of the
associated contract asset in accordance with the
Group’s revenue recognition policy;
(cid:120) Evaluating the Group’s revenue disclosures in
the financial report using our understanding
obtained from our testing and against accounting
standard requirements.
59
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY 68
Independent Auditor’s Report
Going concern basis of accounting
Refer to Note A ‘About this Report’ to the Financial Report
The key audit matter
How the matter was addressed in our audit
The Group’s use of the going concern basis of
Our procedures included:
accounting and the associated extent of
uncertainty is a key audit matter due to the high
(cid:120) We analysed the cash flow projections by:
level of judgement required by us in evaluating
-
Evaluating the underlying data used to
the Group’s assessment of going concern and
the events or conditions which may cast
significant doubt on their ability to continue as a
going concern. These are outlined in Note A.
The Directors have prepared the financial report
on a going concern basis of accounting. Their
assessment of going concern was based on cash
flow projections. The preparation of these
projections incorporated a number of
assumptions and significant judgements. The
range of possible outcomes considered in arriving
at this judgement has been concluded by the
Directors to not give rise to significant uncertainty
casting significant doubt on the Group’s ability to
continue as a going concern.
We critically assessed the levels of uncertainty,
as it is related to the Group’s ability to continue
as a going concern, within these assumptions
and judgements, focusing on the following:
(cid:120)
the Group’s planned levels of operational
expenditure including efficiencies and,
improvement in working capital. This
included the feasibility, projected timing,
and quantum of potential improvements
in working capital and efficiencies and
progress of these plans;
(cid:120)
the Group’s planned deferral of payment
terms with creditors, and the ability of
the Group to negotiate the deferral with
creditors; and
(cid:120)
the Group’s ability to secure
additional funding via a customer
advance and accelerated customer
payment terms and the projected
timing thereof.
In assessing this key audit matter, we involved
senior audit team members who understand the
Group’s business, industry and the economic
environment it operates in.
generate the projections. We specifically
looked for their consistency with those used
by the Directors, and tested by us, their
consistency with the Group’s intentions, and
their comparability to past practices;
-
Analysing the impact of possible changes in
projected cash flows and their timing, to the
projected periodic cash positions. Assessing
the resultant impact to the ability of the
Group to pay debts as and when they fall due
and continue as a going concern. The
specific areas we focused on were informed
from our test results of the accuracy of
previous Group cash flow projections and
sensitivity analysis on key cash flow
projection assumptions;
-
Assessing the planned levels of operating
expenditures for consistency of relationships
and trends to the Group’s historical results,
results since year end, and our
understanding of the business, industry and
economic conditions of the Group;
-
Assessing the impact of working capital
improvements and efficiencies in operating
costs for feasibility, quantum and timing, and
their impact to going concern. We used our
knowledge of the client, its industry and
status to assess the level of associated
uncertainty;
-
-
Assessing the ability of the Group to
negotiate the deferral of payment terms
with creditors, and reading relevant
correspondence with creditors;
Assessing the ability of the Group to secure
additional funding via a customer advance,
and accelerated customer payment terms,
and reading relevant correspondence with
the customer;
(cid:120) We read correspondence with existing financiers
to understand and assess the options available
to the Group including renegotiation of existing
60
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT FINANCIAL
REPORT
69
Independent Auditor’s Report
Recognition of deferred tax assets $5,052,000
Refer to Note A ‘About this report’ and B.6 ‘Income Tax Benefit’ to the Financial Report
The key audit matter
How the matter was addressed in our audit
The recoverability of deferred tax assets (DTA)
Our procedures included:
is dependent on the ability of the Group to
generate sufficient taxable income in the future
to which the historical tax losses can be
applied.
This is a key audit matter due to the judgement
required by us in evaluating the Group’s
assessment of the probability of sufficient
taxable income being generated in the future,
given the Group’s history of tax losses.
We involved our tax specialists and senior audit
team members in assessing this key audit
matter.
debt facilities, waivers in meeting financial loan
covenants and negotiation of revised funding
arrangements;
(cid:120) We evaluated the Group’s going concern
disclosures in the financial report by comparing
them to our understanding of the matter, the
events or conditions incorporated into the cash
flow projection assessment, the Group’s plans
to address those events or conditions, and
accounting standard requirements.
(cid:120) Involving our tax specialists in assessing the
Group’s continuity of ownership assessment and
the tax loss availability for consistency with
regulatory parameters and legislation;
(cid:120) Comparing the forecasts included in the
Group’s estimate of future taxable income used
in the DTA recoverability assessment to those
used in the Group’s assessment of the going
concern assumption for consistency. Our
approach in testing these forecasts was
consistent with the approach detailed above in
addressing material uncertainty regarding going
concern;
(cid:120) Understanding the timing of future taxable
income and considering the consistency of the
timeframes of expected recovery to our
knowledge of the business and its plans; and
(cid:120) Evaluating the Group’s tax disclosures in the
financial report by comparing them to our
understanding of the tax matters occurring during
the year, and accounting standard requirements.
61
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY 70
Independent Auditor’s Report
Other Information
for the Other Information.
Other Information is financial and non-financial information in Quickstep Holdings Limited’s annual reporting
which is provided in addition to the Financial Report and the Auditor's Report. The Directors are responsible
The Other Information we obtained prior to the date of this Auditor’s Report was the Directors’ report. The
Chairs Report, CEO & MD Review, and other sections of the Annual Report before the Directors’ Report
are expected to be made available to us after the date of the Auditor's Report.
Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not and
will not express an audit opinion or any form of assurance conclusion thereon, with the exception of the
Remuneration Report.
In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In
doing so, we 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.
We are required to report if we conclude that there is a material misstatement of this Other Information,
and based on the work we have performed on the Other Information that we obtained prior to the date of
this Auditor’s Report we have nothing to report.
Responsibilities of the Directors for the Financial Report
The Directors are responsible for:
• preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting
Standards and the Corporations Act 2001
• implementing necessary internal control to enable the preparation of a Financial Report that gives a true
and fair view and is free from material misstatement, whether due to fraud or error
• assessing the Group and Company's ability to continue as a going concern and whether the use of the
going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to
going concern and using the going concern basis of accounting unless they either intend to liquidate the
Group and Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objective is:
• 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 Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error. They 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 the Financial Report.
A further description of our responsibilities for the audit of the Financial Report is located at the Auditing
and Assurance Standards Board website at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf .This description forms part of
our Auditor’s Report.
62
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT FINANCIAL
REPORT
71
Independent Auditor’s Report
Report on the Remuneration Report
Opinion
Directors’ responsibilities
In our opinion, the Remuneration
The Directors of the Company are responsible for the
Report of Quickstep Holdings Limited
preparation and presentation of the Remuneration Report in
accordance with Section 300A of the Corporations Act 2001.
for the year ended 30 June 2022,
complies with Section 300A of the
Corporations Act 2001.
Our responsibilities
We have audited the Remuneration Report included in pages
17 to 24 of the Annual Report for the year ended 30 June
2022.
Our responsibility is to express an opinion on the
Remuneration Report, based on our audit conducted in
accordance with Australian Auditing Standards.
KPMG
Daniel Camilleri
Partner
Sydney
29 August 2022
63
QUICKSTEP ANNUAL REPORT 2022REMUNERATION REPORTSHAREHOLDER INFORMATIONCORPORATE DIRECTORY 72
Shareholder Information
for the year ended 30 June 2022
The shareholder information set out below was applicable as at 08 August 2022.
A.
Voting rights
The voting rights attaching to each class of equity securities are set out below:
(a) On a show of hands every member present in person or by proxy shall have one vote and upon a poll each share
The sole substantial shareholder in the Company is Australian Super with 7,288,259 shares based on latest available
shall have one vote.
(b) Options do not carry any voting rights.
B.
Substantial holders
information.
C.
On Market buy back
There is no current on-market buy back.
D.
Distribution schedules
Distribution of each class of security as at 08 August 2022:
Ordinary fully paid shares
Range
Holders
Units
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - Over
Total
Performance Rights
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 - Over
Total
E. Unmarketable parcels
1,194
2,067
654
871
74
4,860
-
-
-
2
5
7
Range
Holders
Units
711,985
5,399,193
5,000,909
25,642,016
34,972,111
71,726,214
-
-
-
87,022
2,689,805
2,776,827
%
0.99
7.53
6.97
35.75
48.76
100.00
%
-
-
-
3.13
96.87
100.00
Holdings less than a marketable parcel of ordinary shares (being $500 parcel at $0.42 per share):
Holders
1,360
Units
894,659
Quickstep Holdings Limited
64
2022 HIGHLIGHTSCHAIR’S REPORTCEO’S REPORTDIRECTORS’ REPORT
SHAREHOLDER
INFORMATION
73
Shareholder Information
for the year ended 30 June 2022
F. Top holders
The 20 largest registered holders of each class of quoted security as at 08 August 2022 were:
Rank
Holder Name
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
DEAKIN UNIVERSITY
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
CARRIER INTERNATIONAL PTY LIMITED
SANDHURST TRUSTEES LTD
BNP PARIBAS NOMINEES PTY LTD
FARJOY PTY LTD
ROMSUP PTY LTD
VCM INVESTMENTS PTY LTD
CITICORP NOMINEES PTY LIMITED
WSF PTY LTD
EXWERE INVESTMENTS PTY LTD
HOBSON COVE PTY LTD
MR ANDREW JAMES VERCETTI
EQUITY PLAN SERVICES PTY LTD
MR RENE ENJOLRAS
YARRAANDOO PTY LTD
MR DAVID CREIGHTON GELLATLY
MR JAMES WINSTON HUNTER + MRS ELIZABETH JOAN HENDERSON-
HUNTER
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
A/C>
Total
Securities
7,353,159
3,333,334
2,500,042
2,191,628
1,798,544
1,427,845
1,368,099
881,243
804,732
689,277
641,533
540,000
500,000
430,515
403,461
373,065
350,994
350,000
307,785
%
10.25
4.65
3.49
3.06
2.51
1.99
1.91
1.23
1.12
0.96
0.89
0.75
0.70
0.60
0.56
0.52
0.49
0.49
0.43
26,536,70
37.00
MR RONALD SMIT + MRS JULIE MARIE SMIT