Ryder Capital Limited
Appendix 4E Preliminary Final Report
For the year ended 30 June 2021
Details of Reporting Period
Current:
Previous corresponding:
Year ended 30 June 2021
Year ended 30 June 2020
Results for announcement to the market
Revenue from ordinary activities
Loss from ordinary activities
before capital profits and tax attributable to members
Loss from ordinary activities
after tax attributable to members
Total comprehensive income
for the period attributable to members
Details of dividends
2021 Interim dividend (cents per share) - paid on 13 April 2021
2021 Final dividend (cents per share)
Final dividend dates
Declaration date
Ex-dividend date
Record date
Payment date
Dividend reinvestment plan (DRP)
N/A
Net tangible assets (NTA)
Net tangible assets (per share) backing before tax*
Net tangible assets (per share) backing after tax*
$
Movement
% Movement
1,809,950
(7,154,729)
(4,533,017)
23,215,635
▼
▼
▼
▲
-47%
-1921%
-703%
202%
Cents per
share
3.0
Franked amount
per share
3.0
Tax rate for
franking
30%
4.0
4.0
30%
13 August 2021
22 September 2021
23 September 2021
08 October 2021
30 June 2021
30 June 2020
1.94
1.77
1.64
1.49
* Post exercise of 8,867,947 options in FY21 at $1.50 and nil options in FY20; and buyback of nil shares in FY21 and 639,598 in FY20.
Audit
This report is based on the financial report which has been audited. All the documents comprise the information required by Listing Rule
4.3A.
Annual General Meeting (AGM)
The AGM is to be held on 23 November 2021.
Signed on behalf of Ryder Capital Limited
Peter Constable
Chairman
Ryder Capital Limited
Sydney, 13 August 2021
i
Annual report
For the year ended 30 June 2021
ii
Contents
Page
Chairman’s Letter to Shareholders
Investment Manager’s Report
Directors’ Report
Auditor’s Independence Declaration
Statement of Profit or Loss and Other Comprehensive Income
Statement of Financial Position
Statement of Changes in Equity
Statement of Cash Flows
Notes to the Financial Statements
Directors’ Declaration
Independent Audit Report to the Members
Top 20 Shareholders
Corporate Directory
1
2
3
11
20
21
22
23
24
25
45
46
49
51
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Ryder Capital Limited
Annual Report
For the year ended 30 June 2021
Chairman’s Letter to Shareholders
It is pleasing to see the share price discount to NTA narrow. With
continued good performance, a strong distributable profits reserve
supporting future dividend growth and the prospective exercise of
the Secondary Options (RYDOA) in December 2021, there is good
reason to expect this discount to narrow further over time.
Despite solid operational performance together with strategic
progress towards a listing, the value of the unlisted investment in
Updater Inc. (Updater) has been maintained at the same valuation
as last year. Your Investment Manager, together with Directors have
formed a view that the value of Updater remains fairly reflected in
the Company’s accounts.
Ryder enters FY22 having made a strong start in July +2.62% with
a Portfolio of investments that are well positioned to perform in
what is likely to be a more challenging investment environment.
As at 31 July 2021, cash and equivalents are currently at 14.9% and
with the addition of new capital via the exercise of RYDOA options
over the coming months, the Investment Manager has substantial
flexibility to capitalise on opportunities as they arise.
Following strong investment performance, large realised capital
gains flowing through to the profits reserve, and a positive start
to FY22, the Board declared a $0.04 fully franked final dividend
bringing the full year FY21 dividend to $0.07 per share fully franked,
an increase of 40% from FY20.
The Annual General Meeting (AGM) will be held on 23 November
2021 where the formal business of the Company will be conducted.
At the AGM there will be an opportunity for Shareholders to ask
questions regarding the investment Portfolio, investment markets
and the outlook for the Company at that time.
Finally, I would like to thank all Shareholders for their continued
support, and I look forward to seeing you at our AGM.
Yours faithfully,
Peter Constable
Chairman
Dear fellow Shareholders,
In keeping with previous years, I would like to take the opportunity
to remind Shareholders what we are setting out to achieve.
Our aim is to provide Shareholders with a concentrated portfolio of
securities undervalued and under appreciated by the market.
We have no interest in building a Portfolio that tracks commonly
used benchmarks, but instead focus on investing in what
we consider to be outstanding and, in some cases, unique
opportunities.
We believe that our disciplined and patient approach will continue
to deliver strong absolute risk-adjusted returns over the long term,
whilst preserving shareholder capital during times of heightened
uncertainty and volatility.
Ryder Capital Limited (Ryder or Company) has had another
successful year, its fifth full financial year since listing in September
2015. Portfolio performance was strong both nominally and
relatively. Total comprehensive income after tax increased 202% by
$15,538,076 to $23,215,635. Gross portfolio performance of 43.4%
materially exceeded the Company’s performance benchmark.
During the year, the Investment Manager sold several long-term
Portfolio investments on valuation grounds and realised material
gains, reflected in the Company’s capital profits reserve increasing
82% by $13,824,125 to $30,768,597, which when added to the
Company’s profit reserve of $105,462, takes total distributable
profits to $30,874,059, an increase of 64% and equivalent to
45.7 cents per share. This increase is net of $3,831,417 in dividends
paid during the period and excludes $20,790,041 of net unrealised
gains in the Portfolio.
Dividends paid during the year totalled $0.06 fully franked, an
increase of $0.01 or +20% on the prior year. With approximately
45.7 cents per share of available distributable profits at 30 June
2021, the Company is in a strong position to continue to pay steady
to increasing fully franked dividends over time.
At 30 June 2021 approximately 86.33% of the Company’s capital
was deployed in equities and 13.67% held in cash, term deposits
or other liquid investments.
When reviewing the Company’s investment performance for
FY21 we focus on measuring the Company’s pre-tax undiluted
NTA period to period, which once adjusted for tax payments and
dividends resulted in a gain of 33.72%. This return and that of the
Company’s diluted pre-tax NTA together with a detailed Portfolio
disclosure, discussion, performance and risk analysis is presented
in the Investment Manager’s Report which I encourage you to read.
The Company’s share price increased from $1.325 to $1.770 during
the year. When taking into account $0.06 in fully franked dividends
paid during the year, the share price return was 38.11% for FY21
compared to the undiluted pre-tax NTA return of 33.72% reflecting
a narrowing of the discount to fully diluted NTA from approximately
17% to 4% - noting this analysis excludes the tax benefits of
franking credits received.
2
Investment Manager’s Report
Gross portfolio performance for the year to 30 June 2021 (FY21) was 43.36%. This return was achieved whilst holding an average cash
balance though the year of approximately 12.94% and an average exposure to an unchanged carrying value in the unlisted investment
Updater Inc. of 7.55%. It should be noted that these returns exclude the various costs associated with running and administering the
Company, such as management and performance fees, ASX listing fees and other third-party expenses as stated in the Annual Report.
This report is focussed on Portfolio performance however, it is important to reinforce that Shareholders should review performance at
both the Portfolio (gross portfolio performance) and Company (pre-tax undiluted NTA return) level adjusted for any dividends or other
distributions made by the Company during the reporting period.
Set out in the table below is the Company’s gross portfolio performance and pre-tax undiluted net tangible asset (NTA) performance(1)
to 30 June 2021 which take into account the historical pre-tax NTA dilution caused by the exercise of 26.7m RYDO options, 8.9m RYDOA
options and net of capital reductions as a result of the Company’s share buyback.
Gross Portfolio Performance
NTA Return (Pre-tax Undiluted)(1)
NTA Return (Pre-tax)(2)
Hurdle
(RBA Cash Rate + 4.25% Return)
Excess Return
NTA Return (Pre-tax Undiluted)(1) -
(RBA Cash Rate + 4.25%)
3 months
(%)
6 months
(%)
1 Year
(%)
3 Years
(% p.a.)
5 Years
(% p.a.)
Since Inception(3)
(%)
Since Inception(3)
(% p.a.)
9.34
7.64
6.97
1.07
8.93
43.36
7.27
3.92
33.72
22.14
2.13
4.40
20.75
15.96
10.50
5.02
26.64
20.98
16.90
5.31
224.43
154.62
114.49
35.70
22.60
17.57
14.13
5.43
6.57
5.13
29.32
10.94
15.66
118.93
12.14
1. Adjusted for the dilution of 26.7m RYDO options and 8.9m RYDOA options. Calculation of pre-tax NTA is prior to the provision and payment of tax.
2. Fully diluted for all options exercised since inception.
3. Inception date is 22 September 2015.
We encourage Shareholders to focus on the net movement in Ryder’s pre-tax undiluted NTA from period to period and compare those
returns to that of cash and other relevant equity market indices as per the below.
Gross Portfolio Performance
Pre-tax Undiluted NTA Return(1)
Pre-tax NTA Return(2)
S&P / ASX All Ordinaries Accumulation Index
S&P / ASX Small Ordinaries Accumulation Index
RBA Cash Rate
Ryder Capital Hurdle Rate - RBA Cash Rate + 4.25%
Source: Bloomberg + Mainstream
1 Year
(%)
43.36
33.72
22.14
30.24
33.23
0.15
4.40
3 Years
(% p.a.)
5 Years
(% p.a.)
Since Inception(1)
(% p.a.)
20.75
15.96
10.50
10.30
8.60
0.76
5.02
26.64
20.98
16.90
11.54
11.24
1.06
5.31
22.60
17.57
14.13
11.18
13.10
1.18
5.43
1. Adjusted for the dilution of 26.7m RYDO options and 8.9m RYDOA options. Calculation of pre-tax NTA is prior to the provision and payment of tax.
2. Fully diluted for all options exercised since inception.
3. Inception date is 22 September 2015.
3
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021
Investment Manager’s Report (Continued)
The chart below illustrates the performance of an investment in Ryder after all fees and expenses, and the compounding effect of this
outperformance over time in comparison to the ASX All Ordinaries and ASX Small Ordinaries indices.
Investment Performance of $100,000
(cid:6)(cid:5)(cid:4)(cid:3)(cid:2)(cid:3)(cid:3)(cid:3)
(cid:6)(cid:5)(cid:143)(cid:3)(cid:2)(cid:3)(cid:3)(cid:3)
(cid:6)(cid:5)(cid:5)(cid:3)(cid:2)(cid:3)(cid:3)(cid:3)
(cid:6)(cid:5)(cid:3)(cid:3)(cid:2)(cid:3)(cid:3)(cid:3)
(cid:6)(cid:127)(cid:144)(cid:3)(cid:2)(cid:3)(cid:3)(cid:3)
(cid:6)(cid:127)(cid:4)(cid:3)(cid:2)(cid:3)(cid:3)(cid:3)
(cid:6)(cid:127)(cid:143)(cid:3)(cid:2)(cid:3)(cid:3)(cid:3)
(cid:6)(cid:127)(cid:5)(cid:3)(cid:2)(cid:3)(cid:3)(cid:3)
(cid:6)(cid:127)(cid:3)(cid:3)(cid:2)(cid:3)(cid:3)(cid:3)
(cid:6)(cid:144)(cid:3)(cid:2)(cid:3)(cid:3)(cid:3)
(cid:5)(cid:3)(cid:1)
(cid:127)(cid:129)(cid:1)
(cid:127)(cid:3)(cid:1)
(cid:127)(cid:3)(cid:1)
(cid:3)(cid:1)
(cid:141)(cid:129)(cid:1)
(cid:141)(cid:127)(cid:3)(cid:1)
(cid:141)(cid:127)(cid:129)(cid:1)
(cid:141)(cid:5)(cid:3)(cid:1)
(cid:13)(cid:17)(cid:157)(cid:141)(cid:127)(cid:129)
(cid:13)(cid:17)(cid:157)(cid:141)(cid:127)(cid:4)
(cid:13)(cid:17)(cid:157)(cid:141)(cid:127)
(cid:13)(cid:17)(cid:157)(cid:141)(cid:127)(cid:144)
(cid:13)(cid:17)(cid:157)(cid:141)(cid:127)
(cid:13)(cid:17)(cid:157)(cid:141)(cid:5)(cid:3)
€(cid:20)(cid:25)(cid:141)(cid:5)(cid:127)
(cid:31)(cid:30)(cid:29)(cid:28)(cid:27)(cid:26)(cid:25)(cid:24)(cid:23)(cid:22)(cid:21)(cid:28)(cid:20)(cid:25)(cid:19)(cid:18)(cid:22)(cid:20)(cid:24)(cid:17)(cid:19)(cid:28)(cid:16)(cid:17)(cid:24)(cid:20)(cid:16)(cid:25)(cid:28)(cid:15)(cid:31)(cid:14)(cid:13)(cid:12)
(cid:31)(cid:30)(cid:29)
(cid:13)(cid:11)(cid:10)(cid:22)(cid:22)(cid:28)(cid:9)(cid:16)(cid:19)(cid:8)
(cid:7)(cid:22)(cid:22)(cid:28)(cid:9)(cid:16)(cid:19)(cid:8)
The Portfolio holdings as at 30 June 2021 are set out below.
PORTFOLIO – 30 June 2021
Name
Janison Education Group Ltd
BCI Minerals Ltd
SRG Global Ltd
Updater Inc
Vita Group Ltd
Macmahon Holdings Ltd
Cash Converters International Ltd
3P Learning Ltd
Urbanise.com Ltd
Aurelia Metals Ltd
Capitol Health Ltd
Imdex Ltd
Countplus Ltd
Veem Ltd
Adore Beauty Group Ltd
Peel Mining Ltd
Fenix Resources Ltd
Lumos Diagnostics Holdings Ltd
Hastings Technology Metals Ltd
Jupiter Mines Ltd
Other Equities
Total Equities
Cash, Cash Equivalents and Term Deposits
Total Gross Portfolio Value
4
Ticker
JAN
BCI
SRG
UPD
VTG
MAH
CCV
3PL
UBN
AMI
CAJ
IMD
CUP
VEE
ABY
PEX
FEX
LDX
HAS
JMS
Total Value
$12,750,678
$12,467,602
$10,670,285
$9,041,727
$8,358,656
$7,609,160
$6,193,000
$5,507,608
$4,282,469
$4,138,777
$4,065,922
$3,417,539
$2,946,624
$2,718,293
$2,677,405
$2,112,980
$2,028,505
$2,000,000
$1,789,474
$1,616,460
$12,808,177
$119,201,340
$18,877,141
$138,078,481
Total %
9.23%
9.03%
7.73%
6.55%
6.05%
5.51%
4.49%
3.99%
3.10%
3.00%
2.94%
2.48%
2.13%
1.97%
1.94%
1.53%
1.47%
1.45%
1.30%
1.17%
9.28%
86.33%
13.67%
100.00%
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Investment Manager’s Report (Continued)
The Portfolio at 30 June 2021 held meaningful exposures to the materials, consumer discretionary and healthcare sectors. The Investment
Manager continues to remain sector agnostic while adjusting Portfolio composition as a function of its assessment of individual Portfolio
holding’s intrinsic value on an absolute basis.
RYD Portfolio Composition 30 June 2021
(cid:9)(cid:30)(cid:24)(cid:18)
(cid:13)(cid:8)(cid:21)
(cid:31)(cid:30)(cid:29)(cid:28)(cid:27)(cid:26)(cid:30)(cid:25)(cid:24)
(cid:23)(cid:22)(cid:21)
(cid:9)(cid:16)(cid:17)(cid:24)(cid:7)(cid:6)(cid:28)(cid:27)(cid:5)(cid:4)(cid:26)(cid:24)(cid:19)(cid:27)(cid:28)(cid:29)(cid:26)(cid:16)(cid:17)(cid:30)(cid:27)(cid:14)
(cid:13)(cid:3)(cid:21)
(cid:2)(cid:26)(cid:17)(cid:30)(cid:17)(cid:19)(cid:26)(cid:30)(cid:25)(cid:5)(cid:1)(cid:28)(cid:27)(cid:127)(cid:26)(cid:19)(cid:28)(cid:24)
(cid:3)(cid:21)
(cid:129)(cid:17)(cid:141)(cid:7)(cid:24)(cid:29)(cid:27)(cid:26)(cid:30)(cid:25)(cid:24)
(cid:143)(cid:21)
(cid:20)(cid:28)(cid:19)(cid:18)(cid:17)(cid:16)(cid:25)(cid:16)(cid:15)(cid:14)
(cid:13)(cid:12)(cid:21)
(cid:11)(cid:28)(cid:30)(cid:25)(cid:29)(cid:18)(cid:19)(cid:30)(cid:27)(cid:28)
(cid:13)(cid:10)(cid:21)
Portfolio Performance
Gross portfolio performance for the period of 43.36% materially exceeded the performance hurdle and that of all other Australian equity
market indices, despite a high allocation to cash.
The Portfolio was well positioned being relatively well invested throughout the year as equity markets rebounded strongly from their lows
of March 2020 with the ASX All Ordinaries returning +26.4%, its best return since 1987. This result was achieved despite the ongoing
impacts of COVID-19 on corporate profits and the uncertain timing of vaccine efficacy which would enable a return to a normal way of life
and an improved economic outlook.
Strong gains in our long held positions of BCI Minerals Limited, SRG Global Limited and a new position in Janison Education Limited were
partially offset by mark to market losses in Adore Beauty Group Limited, Bill Identity Limited and Macmahon Holdings Limited.
Despite strong operational performance and progress towards a listing on the NASDAQ there was no change in the underlying USD
carrying value per share for our investment in Updater Inc.
FY21 Top 3 Contributors and Detractors
(cid:5)‚(cid:4)(cid:14)(cid:21)(cid:10)(cid:15)(cid:3)(cid:127)(cid:20)(cid:12)(cid:8)(cid:14)(cid:7)(cid:6)(cid:11)
(cid:20)(cid:15)(cid:10)(cid:8)(cid:16)(cid:15)(cid:14)€(cid:11)(cid:129)(cid:19)(cid:20)(cid:6)(cid:10)(cid:16)(cid:15)(cid:14)(cid:141)(cid:127)(cid:16)(cid:129)(cid:143)(cid:14)(cid:7)(cid:6)(cid:11)
(cid:144)(cid:157)(cid:141)(cid:14)(cid:141)(cid:12)(cid:16) (cid:20)(cid:12)(cid:14)(cid:7)(cid:6)(cid:11)
(cid:1)(cid:11)(cid:16)(cid:127)(cid:3)(cid:14)(cid:5)(cid:3)(cid:20)(cid:129)(cid:6)(cid:2)(cid:14)(cid:141)(cid:127)(cid:16)(cid:129)(cid:143)(cid:14)(cid:7)(cid:6)(cid:11)
(cid:5)(cid:10)(cid:12)(cid:12)(cid:14)(cid:4)(cid:11)(cid:3)(cid:15)(cid:6)(cid:10)(cid:6)(cid:2)(cid:14)(cid:7)(cid:6)(cid:11)
(cid:21)(cid:20)(cid:19)(cid:18)(cid:20)(cid:17)(cid:16)(cid:15)(cid:14)(cid:13)(cid:16)(cid:12)(cid:11)(cid:10)(cid:15)(cid:9)(cid:8)(cid:14)(cid:7)(cid:6)(cid:11)
(cid:31)(cid:30)(cid:29)(cid:28)(cid:27)(cid:27)(cid:27)(cid:28)(cid:27)(cid:27)(cid:27)(cid:26)
(cid:31)(cid:30)(cid:25)(cid:28)(cid:27)(cid:27)(cid:27)(cid:28)(cid:27)(cid:27)(cid:27)(cid:26)
(cid:31)(cid:27)
(cid:31)(cid:25)(cid:28)(cid:27)(cid:27)(cid:27)(cid:28)(cid:27)(cid:27)(cid:27)
(cid:31)(cid:29)(cid:28)(cid:27)(cid:27)(cid:27)(cid:28)(cid:27)(cid:27)(cid:27)
(cid:31)(cid:24)(cid:28)(cid:27)(cid:27)(cid:27)(cid:28)(cid:27)(cid:27)(cid:27)
(cid:31)(cid:23)(cid:28)(cid:27)(cid:27)(cid:27)(cid:28)(cid:27)(cid:27)(cid:27)
(cid:31)(cid:22)(cid:27)(cid:28)(cid:27)(cid:27)(cid:27)(cid:28)(cid:27)(cid:27)(cid:27)
Outside of the above top three contributors, the Portfolio benefitted from a number of additional strong performances including from
Betmakers Technology Group Limited where after over five years of ownership and several challenging periods, management stood up a
plan that captured investors’ attention and was followed by a stellar share price performance resulting in the exit of all of our holding and a
$5.1m profit for the Portfolio. 3P Learning Limited (3PL) was subject to a takeover in August 2020 at $1.35 per share (+70% premium over
our entry cost within six months). Whilst we supported the privatisation proposal at $1.35 per share, 3PL’s largest shareholder proposed an
alternate plan to merge 3PL with private company Blake eLearning Pty Ltd. With the merger completed, 3PL is now a larger, more
diversified global e-learning business. Each of NextDC Limited (NXT), Veem Limited (VEE) and Fenix Resources Limited (FEX) all made
noteworthy contributions due to strong share price appreciation resulting in a full exit from NXT and partial sales of FEX and VEE.
5
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Investment Manager’s Report (Continued)
Mark to market losses in Macmahon Holdings Limited were driven by a de-rating across the mining services sector together with a
near term growth phase after which the company is expected to demonstrate meaningful free cash flow supporting our investment
thesis. Losses in Adore Beauty Group Limited (ABY) reflect an insufficient discount to intrinsic value at the time of entry compounded by
unfortunate timing as the online retail sector and COVID-19 beneficiaries experienced a de-rating post our initial investment. We consider
ABY to be a high quality business that presents an attractive long term value opportunity. Bill Identity Limited has not been able to deliver
the growth in revenue expected after significant wins earlier in the financial year compounded by delays to further material contract
wins. In addition to the top 3 detractors, the investment in Tubi Limited (~0.82% of exposure) has been very disappointing and remains
suspended from the ASX.
For FY21 the Portfolio generated $49,054,758 (+74% from FY20) of capital gains (realised and unrealised) which were offset by capital
losses (realised and unrealised) of $9,410,310 (-37% from FY20) resulting in a net capital gain before interest and dividend income of
$39,644,448 (+297% from FY20) for the year.
FY21 dividend income received was $1,762,646 fully franked while interest income received on term deposits and cash was $36,105.
At 30 June 2021, approximately 86% of the Company’s capital was deployed in equities with approximately 14% held in cash, term deposits
and net receivables.
Portfolio Activity
During the year we exited our long held investment in NextDC Limited and Betmakers Technology Group Limited on valuation grounds.
Other positions exited included Fineos Corp Holdings PLC-CDI, Humm Group Limited and Terragen Holdings Limited.
We added exposure to two long term core holdings being SRG Global Limited and BCI Minerals Limited due to increased conviction. New
core positions were initiated in Janison Education Group Limited and Vita Group Limited. A smaller new position of Adore Beauty Group
Limited was added via and post the IPO.
Portfolio Strike Rate
Shareholders will recall our interest in presenting our Strike Rate analysis. Consistent with the analysis presented last year, and given
the Portfolio has now completed its fifth full financial year, the measures set our below are based only on realised profits and losses
since inception.
Strike Rate Analysis – Inception to Date (30 June 2021)
Strike Rate Analysis
Gross Realised Portfolio Profits
Gross Realised Portfolio Losses
Net Realised Portfolio Profit
Win/Loss
Strike Rate
Note: ignores dividends, interest, taxes and expenses and relies on unaudited management analysis
RYD Portfolio
$60,363,941
($9,687,078)
$50,676,862
83.95%
$6.23
Referring to the analysis above, the Portfolio segment identifies the Portfolio’s gross realised profits since inception to 30 June 2021 of
$60,363,941 compared to the Portfolio’s gross realised losses since inception of ($9,687,078). The net of these results is a net realised
Portfolio profit since inception of $50,676,862.
Observing the above, we note that:
1. the net realised Portfolio profit of $50,676,862 is 83.95% of the gross realised Portfolio profit of $60,363,941, that is we retained
~83.95% of gains, or thinking of it as a decision ratio, our poor decisions eroded our successful decisions by approximately 16.05%;
and
2. that total profits divided by total losses for the period (since inception to 30 June 2021) is 6.23x, indicating that for every $6.23 profit
made, $1.00 was lost.
Our ability to generate an improved strike rate is pleasing. The FY21 strike rate increased to $6.23, up from $4.11 in FY20.
6
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Investment Manager’s Report (Continued)
Risk Adjusted Returns & Relative NTA Performance
At the risk of stating the obvious, not all investment returns are equal - some returns are achieved by taking significantly greater or less risk
than other returns. Our goal at Ryder is to achieve medium to long term returns above the Company’s hurdle of RBA Cash rate + 4.25%
while minimising risk.
Investment risk is commonly measured using the standard deviation of returns over time from the mean return of an asset, or in our case,
Ryder’s pre-tax undiluted NTA return. The higher the standard deviation (think volatility) the riskier the underlying investment and/or
strategy. Typically, the two travel together, that is risk and return correlate over time since additional risk should be compensated for with
additional returns.
The following chart plots returns against risk and helps to illustrate the quality of returns achieved. It is important to note the return
measures used for Ryder and the domestic managers are not directly comparable to the indices in this case as while they are before
provided tax, they are after the payment of realised tax which creates an unfair drag on Ryder in comparison to the ASX market indices.
However this chart is still useful to assess the quality of the relative performance. The ideal position is towards the top left corner with the
highest returns and lowest level of risk. Over the long term, Ryder has outperformed the index and other domestic managers, generating
materially higher returns for a similar level of a risk.
(cid:28)(cid:30)(cid:29)
(cid:28)(cid:27)(cid:29)
(cid:31)(cid:30)(cid:29)
(cid:31)(cid:27)(cid:29)
(cid:26)(cid:30)(cid:29)
(cid:26)(cid:27)(cid:29)
(cid:30)(cid:29)
(cid:27)(cid:29)
(cid:8)
(cid:7)
(cid:8)
(cid:20)
(cid:9)
(cid:29)
(cid:10)
(cid:18)
(cid:17)
(cid:24)
(cid:16)
(cid:21)
(cid:23)
(cid:24)
(cid:18)
(cid:21)
(cid:23)
(cid:17)
(cid:18)
(cid:19)
(cid:20)
(cid:21)
(cid:22)
(cid:23)
(cid:24)
(cid:25)
(cid:29)(cid:11)(cid:19)(cid:25)(cid:15)(cid:10)(cid:9)(cid:8)(cid:27)(cid:25)(cid:7)(cid:6)(cid:9)(cid:10)(cid:9)(cid:25)(cid:15)(cid:27)(cid:19)(cid:24)(cid:13)(cid:24)(cid:5)(cid:25)(cid:23)(cid:27)(cid:19)(cid:25)(cid:16)(cid:9)(cid:24)(cid:13)
(cid:4)(cid:18)(cid:18)(cid:27)(cid:17)(cid:23)(cid:16)(cid:15)(cid:27)(cid:14)(cid:13)(cid:16)(cid:25)(cid:12)
(cid:20)(cid:19)(cid:24)(cid:18)(cid:18)(cid:27)(cid:17)(cid:23)(cid:16)(cid:15)(cid:27)(cid:14)(cid:13)(cid:16)(cid:25)(cid:12)
(cid:31)(cid:30)(cid:29)
(cid:31)(cid:30)(cid:29)
(cid:31)(cid:30)(cid:29)
(cid:4)(cid:18)(cid:18)(cid:27)(cid:17)(cid:23)(cid:16)(cid:15)(cid:27)(cid:14)(cid:13)(cid:16)(cid:25)(cid:12)
(cid:4)(cid:18)(cid:18)(cid:27)(cid:17)(cid:23)(cid:16)(cid:15)(cid:27)(cid:14)(cid:13)(cid:16)(cid:25)(cid:12)
(cid:20)(cid:19)(cid:24)(cid:18)(cid:18)(cid:27)(cid:17)(cid:23)(cid:16)(cid:15)(cid:27)(cid:14)(cid:13)(cid:16)(cid:25)(cid:12)
(cid:29)(cid:11)(cid:19)(cid:25)(cid:15)(cid:10)(cid:9)(cid:8)(cid:27)(cid:25)(cid:7)(cid:6)(cid:9)(cid:10)(cid:9)(cid:25)(cid:15)(cid:27)(cid:19)(cid:24)(cid:13)(cid:24)(cid:5)(cid:25)(cid:23)(cid:27)(cid:19)(cid:25)(cid:16)(cid:9)(cid:24)(cid:13)
(cid:29)(cid:11)(cid:19)(cid:25)(cid:15)(cid:10)(cid:9)(cid:8)(cid:27)(cid:25)(cid:7)(cid:6)(cid:9)(cid:10)(cid:9)(cid:25)(cid:15)(cid:27)(cid:19)(cid:24)(cid:13)(cid:24)(cid:5)(cid:25)(cid:23)(cid:27)(cid:19)(cid:25)(cid:16)(cid:9)(cid:24)(cid:13)
(cid:20)(cid:19)(cid:24)(cid:18)(cid:18)(cid:27)(cid:17)(cid:23)(cid:16)(cid:15)(cid:27)(cid:14)(cid:13)(cid:16)(cid:25)(cid:12)
(cid:28)(cid:27)(cid:26)(cid:25)(cid:24)(cid:23)
(cid:22)(cid:27)(cid:26)(cid:25)(cid:24)(cid:23)
(cid:21)(cid:27)(cid:26)(cid:25)(cid:24)(cid:23)
(cid:27)(cid:29)
(cid:30)(cid:29)
(cid:26)(cid:27)(cid:29)
(cid:26)(cid:30)(cid:29)
(cid:31)(cid:27)(cid:29)
(cid:31)(cid:30)(cid:29)
(cid:25)(cid:24)(cid:23)(cid:22)(cid:21)(cid:20)(cid:19)(cid:18)(cid:17)(cid:23)(cid:21)(cid:18)(cid:24)(cid:23)(cid:21)(cid:16)(cid:24)(cid:17)(cid:18)(cid:15)(cid:21)(cid:20)(cid:17)(cid:14)(cid:20)(cid:24)(cid:14)(cid:18)(cid:14)(cid:23)(cid:13)(cid:12)(cid:20)(cid:21)(cid:12)(cid:11)(cid:17)
1. Returns are calculated using monthly pre-tax NTA values including dividends (excluding franking) and adjusted for the dilutionary impact of options exercised resulting in an increase in issued capital by 5%
or greater during the period
2. A sample of 42 domestic equity managers are included in this analysis taken from the Bell Potter and Morningstar research universe. Funds included in this analysis are only a selection of Listed Investment
Companies (LIC) on the ASX and are intended to form a representative sample of LICs based on strategy, size and past performance
7
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Investment Manager’s Report (Continued)
Risk and return can be analysed using two well known ratios, the first being the Sharpe Ratio which is calculated as excess return over a
benchmark divided by volatility (standard deviation). The Sharpe ratio measures excess return per unit of risk, including both downside
and upside volatility. The second ratio is a variant on the Sharpe Ratio, called the Sortino Ratio which only looks at downside standard
deviation, i.e. downside volatility with respect to a specified benchmark, the most commonly used being the cash rate. This would be
the most appropriate measure to consider since upside volatility is what investors seek to target, i.e. positive returns and therefore
upside volatility should not be taken into account the same way as downside volatility. A greater amount of consistent positive monthly
performance compared to negative performance over time will result in a higher Sortino ratio value.
The below table sets out Ryder’s Sharpe and Sortino ratios and those of two ASX market indices for comparator purposes:
Ryder
Small Ords Accumulation Index
All Ords Accumulation Index
Sharpe ratio
Sortino ratio
1 year
3 years
5 years
ITD
1 year
3 years
5 years
ITD
3.19
0.99
1.41
1.21
14.49
1.56
2.55
2.15
2.68
0.36
0.57
0.70
11.61
0.51
0.82
1.01
2.79
0.53
0.71
0.70
8.73
0.69
0.95
0.94
Ryder’s Sharpe and Sortino ratios demonstrate superior risk adjusted investment returns than the comparator ASX market indices. Of
particular note is our strong Sortino ratio which is logical given we have a value bias (stocks perform better in a negative market) and
we consistently hold relatively large amounts of cash, dampening downside risk / volatility. In summary, the positive Sortino ratio above
comparator indices demonstrates Ryder’s ability to deliver outperformance with less risk.
Another way to compare the level of risk between the returns of Ryder and that of the ASX market indices is to look at the distribution of
monthly returns. Whilst we do not usually focus on short term returns, it is important to note that long term returns are made up of a series
of short term returns over time and therefore should still be examined. The tables below analyse the distribution of Ryder’s monthly returns
since inception with two comparator ASX indices. On average, Ryder significantly outperforms during negative periods for both indices
consistent with the Sharpe and Sortino ratio analysis above. This is a reflection of the importance Ryder places on assessing risk in our
investment framework.
Average monthly return
Average monthly return in Small Ords positive month
Average monthly return in Small Ords negative month
Positive months
Negative months
Avg monthly return
Average monthly return in All Ords positive month
Average monthly return in All Ords negative month
Positive months
Negative months
Ryder
1.44%
2.62%
-0.62%
62%
38%
Ryder
1.44%
2.51%
-1.17%
62%
38%
Small Ords Accumulation Index
1.16%
3.61%
-3.16%
64%
36%
All Ords Accumulation Index
1.00%
2.79%
-3.39%
71%
29%
Further to the above, we have also taken the opportunity to illustrate how Ryder has performed on a pre-tax undiluted basis versus its
peers (43 other ASX Listed Investment Companies (LIC) from the Bell Potter Research and Morningstar universe). Note some funds have
been excluded as the data does not allow for meaningful comparison due to factors such as period of operation (fund commenced after
September 2015), fund strategy, fund size and data integrity. This analysis is somewhat imperfect as each fund pursues slightly different
strategies however, the one common goal for each fund and investment manager is to generate the highest available return per unit
of risk over time. As such, analysing each LIC’s relative returns, Sharpe and Sortino ratios are instructive when reviewing absolute and
comparative performance over time.
8
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021
Investment Manager’s Report (Continued)
Set out below are Ryder’s Since Inception to Date (ITD) returns, Sharpe and Sortino ratios in comparison to 43 other ASX LICs (using an
inception date of September 2015).
Annualised returns (September 2015 to June 2021)
(cid:25)(cid:26)(cid:30)
(cid:25)(cid:26)(cid:30)
(cid:25)(cid:26)(cid:30)
(cid:25)(cid:27)(cid:30)
(cid:25)(cid:27)(cid:30)
(cid:25)(cid:27)(cid:30)
(cid:25)(cid:28)(cid:30)
(cid:25)(cid:28)(cid:30)
(cid:25)(cid:28)(cid:30)
(cid:25)(cid:29)(cid:30)
(cid:25)(cid:29)(cid:30)
(cid:25)(cid:29)(cid:30)
(cid:25)(cid:31)(cid:30)
(cid:25)(cid:31)(cid:30)
(cid:25)(cid:31)(cid:30)
(cid:26)(cid:30)
(cid:26)(cid:30)
(cid:26)(cid:30)
(cid:27)(cid:30)
(cid:27)(cid:30)
(cid:27)(cid:30)
(cid:28)(cid:30)
(cid:28)(cid:30)
(cid:28)(cid:30)
(cid:29)(cid:30)
(cid:29)(cid:30)
(cid:29)(cid:30)
(cid:31)(cid:30)
(cid:31)(cid:30)
(cid:31)(cid:30)
(cid:23)(cid:13)(cid:2)
(cid:23)(cid:13)(cid:2)
(cid:23)(cid:13)(cid:2)
(cid:23)(cid:19)(cid:14)
(cid:23)(cid:19)(cid:14)
(cid:23)(cid:19)(cid:14)
(cid:9)(cid:24)(cid:12)
(cid:9)(cid:24)(cid:12)
(cid:9)(cid:24)(cid:12)
(cid:15)(cid:23)(cid:25)
(cid:15)(cid:23)(cid:25)
(cid:15)(cid:23)(cid:25)
(cid:22)(cid:127)(cid:2)
(cid:22)(cid:127)(cid:2)
(cid:22)(cid:127)(cid:2)
(cid:24)(cid:3)(cid:13)
(cid:24)(cid:3)(cid:13)
(cid:24)(cid:3)(cid:13)
(cid:8)(cid:24)(cid:24)
(cid:8)(cid:24)(cid:24)
(cid:8)(cid:24)(cid:24)
(cid:5)(cid:17)(cid:9)
(cid:5)(cid:17)(cid:9)
(cid:5)(cid:17)(cid:9)
(cid:23)(cid:13)(cid:18)
(cid:23)(cid:13)(cid:18)
(cid:23)(cid:13)(cid:18)
(cid:9)(cid:14)(cid:23)
(cid:9)(cid:14)(cid:23)
(cid:9)(cid:14)(cid:23)
(cid:13)(cid:129)(cid:23)
(cid:13)(cid:129)(cid:23)
(cid:13)(cid:129)(cid:23)
(cid:18)(cid:11)(cid:23)
(cid:18)(cid:11)(cid:23)
(cid:18)(cid:11)(cid:23)
(cid:129)(cid:6)(cid:13)
(cid:129)(cid:6)(cid:13)
(cid:129)(cid:6)(cid:13)
(cid:23)(cid:24)(cid:14)
(cid:23)(cid:24)(cid:14)
(cid:23)(cid:24)(cid:14)
(cid:5)(cid:15)(cid:15)
(cid:5)(cid:15)(cid:15)
(cid:5)(cid:15)(cid:15)
(cid:15)(cid:127)(cid:12)
(cid:15)(cid:127)(cid:12)
(cid:15)(cid:127)(cid:12)
(cid:9)(cid:13)(cid:24)
(cid:9)(cid:13)(cid:24)
(cid:9)(cid:13)(cid:24)
(cid:19)(cid:1)(cid:8)
(cid:19)(cid:1)(cid:8)
(cid:19)(cid:1)(cid:8)
(cid:8)(cid:7)(cid:12)
(cid:8)(cid:7)(cid:12)
(cid:8)(cid:7)(cid:12)
(cid:24)(cid:21)(cid:15)
(cid:24)(cid:21)(cid:15)
(cid:24)(cid:21)(cid:15)
(cid:2)(cid:24)(cid:13)
(cid:2)(cid:24)(cid:13)
(cid:2)(cid:24)(cid:13)
Sharpe ratio (September 2015 to June 2021)
(cid:8)(cid:24)(cid:14)
(cid:8)(cid:24)(cid:14)
(cid:8)(cid:24)(cid:14)
(cid:8)(cid:24)(cid:4)
(cid:8)(cid:24)(cid:4)
(cid:8)(cid:24)(cid:4)
(cid:14)(cid:3)(cid:5)
(cid:14)(cid:3)(cid:5)
(cid:14)(cid:3)(cid:5)
(cid:11)(cid:18)(cid:23)
(cid:11)(cid:18)(cid:23)
(cid:11)(cid:18)(cid:23)
(cid:12)(cid:15)(cid:4)
(cid:12)(cid:15)(cid:4)
(cid:12)(cid:15)(cid:4)
(cid:24)(cid:12)(cid:13)
(cid:24)(cid:12)(cid:13)
(cid:24)(cid:12)(cid:13)
(cid:24)(cid:10)(cid:13)
(cid:24)(cid:10)(cid:13)
(cid:24)(cid:10)(cid:13)
(cid:18)(cid:23)(cid:23)
(cid:18)(cid:23)(cid:23)
(cid:18)(cid:23)(cid:23)
(cid:6)(cid:24)(cid:5)
(cid:6)(cid:24)(cid:5)
(cid:6)(cid:24)(cid:5)
(cid:12)(cid:15)(cid:15)
(cid:12)(cid:15)(cid:15)
(cid:12)(cid:15)(cid:15)
(cid:9)(cid:24)(cid:13)
(cid:9)(cid:24)(cid:13)
(cid:9)(cid:24)(cid:13)
(cid:9)(cid:15)(cid:12)
(cid:9)(cid:15)(cid:12)
(cid:9)(cid:15)(cid:12)
(cid:24)(cid:14)(cid:7)
(cid:24)(cid:14)(cid:7)
(cid:24)(cid:14)(cid:7)
(cid:8)(cid:13)(cid:23)
(cid:8)(cid:13)(cid:23)
(cid:8)(cid:13)(cid:23)
(cid:9)(cid:13)(cid:23)
(cid:9)(cid:13)(cid:23)
(cid:9)(cid:13)(cid:23)
(cid:19)(cid:10)(cid:13)
(cid:19)(cid:10)(cid:13)
(cid:19)(cid:10)(cid:13)
(cid:14)(cid:12)(cid:12)
(cid:14)(cid:12)(cid:12)
(cid:14)(cid:12)(cid:12)
(cid:12)(cid:11)(cid:13)
(cid:12)(cid:11)(cid:13)
(cid:12)(cid:11)(cid:13)
(cid:14)(cid:13)(cid:21)
(cid:14)(cid:13)(cid:21)
(cid:14)(cid:13)(cid:21)
(cid:17)(cid:16)(cid:15)
(cid:17)(cid:16)(cid:15)
(cid:17)(cid:16)(cid:15)
(cid:18)(cid:24)(cid:23)
(cid:18)(cid:24)(cid:23)
(cid:18)(cid:24)(cid:23)
(cid:21)(cid:20)(cid:19)
(cid:21)(cid:20)(cid:19)
(cid:21)(cid:20)(cid:19)
(cid:24)(cid:23)(cid:22)
(cid:24)(cid:23)(cid:22)
(cid:24)(cid:23)(cid:22)
(cid:25)(cid:141)(cid:29)
(cid:25)(cid:141)(cid:29)
(cid:25)(cid:141)(cid:29)
(cid:25)(cid:141)(cid:31)
(cid:25)(cid:141)(cid:31)
(cid:25)(cid:141)(cid:31)
(cid:31)(cid:141)(cid:26)
(cid:31)(cid:141)(cid:26)
(cid:31)(cid:141)(cid:26)
(cid:31)(cid:141)(cid:27)
(cid:31)(cid:141)(cid:27)
(cid:31)(cid:141)(cid:27)
(cid:31)(cid:141)(cid:28)
(cid:31)(cid:141)(cid:28)
(cid:31)(cid:141)(cid:28)
(cid:31)(cid:141)(cid:29)
(cid:31)(cid:141)(cid:29)
(cid:31)(cid:141)(cid:29)
(cid:31)(cid:141)(cid:31)
(cid:31)(cid:141)(cid:31)
(cid:31)(cid:141)(cid:31)
(cid:23)(cid:13)(cid:2)
(cid:23)(cid:13)(cid:2)
(cid:23)(cid:13)(cid:2)
(cid:23)(cid:19)(cid:14)
(cid:23)(cid:19)(cid:14)
(cid:23)(cid:19)(cid:14)
(cid:5)(cid:17)(cid:9)
(cid:5)(cid:17)(cid:9)
(cid:5)(cid:17)(cid:9)
(cid:9)(cid:24)(cid:12)
(cid:9)(cid:24)(cid:12)
(cid:9)(cid:24)(cid:12)
(cid:15)(cid:23)(cid:25)
(cid:15)(cid:23)(cid:25)
(cid:15)(cid:23)(cid:25)
(cid:18)(cid:11)(cid:23)
(cid:18)(cid:11)(cid:23)
(cid:18)(cid:11)(cid:23)
(cid:23)(cid:13)(cid:18)
(cid:23)(cid:13)(cid:18)
(cid:23)(cid:13)(cid:18)
(cid:22)(cid:127)(cid:2)
(cid:22)(cid:127)(cid:2)
(cid:22)(cid:127)(cid:2)
(cid:23)(cid:24)(cid:14)
(cid:23)(cid:24)(cid:14)
(cid:23)(cid:24)(cid:14)
(cid:19)(cid:1)(cid:8)
(cid:19)(cid:1)(cid:8)
(cid:19)(cid:1)(cid:8)
(cid:8)(cid:24)(cid:24)
(cid:8)(cid:24)(cid:24)
(cid:8)(cid:24)(cid:24)
(cid:129)(cid:6)(cid:13)
(cid:129)(cid:6)(cid:13)
(cid:129)(cid:6)(cid:13)
(cid:24)(cid:3)(cid:13)
(cid:24)(cid:3)(cid:13)
(cid:24)(cid:3)(cid:13)
(cid:8)(cid:13)(cid:23)
(cid:8)(cid:13)(cid:23)
(cid:8)(cid:13)(cid:23)
(cid:9)(cid:14)(cid:23)
(cid:9)(cid:14)(cid:23)
(cid:9)(cid:14)(cid:23)
(cid:5)(cid:15)(cid:15)
(cid:5)(cid:15)(cid:15)
(cid:5)(cid:15)(cid:15)
(cid:9)(cid:15)(cid:12)
(cid:9)(cid:15)(cid:12)
(cid:9)(cid:15)(cid:12)
(cid:18)(cid:23)(cid:23)
(cid:18)(cid:23)(cid:23)
(cid:18)(cid:23)(cid:23)
(cid:8)(cid:7)(cid:12)
(cid:8)(cid:7)(cid:12)
(cid:8)(cid:7)(cid:12)
(cid:8)(cid:24)(cid:4)
(cid:8)(cid:24)(cid:4)
(cid:8)(cid:24)(cid:4)
(cid:24)(cid:21)(cid:15)
(cid:24)(cid:21)(cid:15)
(cid:24)(cid:21)(cid:15)
(cid:13)(cid:129)(cid:23)
(cid:13)(cid:129)(cid:23)
(cid:13)(cid:129)(cid:23)
(cid:24)(cid:10)(cid:13)
(cid:24)(cid:10)(cid:13)
(cid:24)(cid:10)(cid:13)
(cid:8)(cid:24)(cid:14)
(cid:8)(cid:24)(cid:14)
(cid:8)(cid:24)(cid:14)
(cid:9)(cid:13)(cid:24)
(cid:9)(cid:13)(cid:24)
(cid:9)(cid:13)(cid:24)
(cid:14)(cid:3)(cid:5)
(cid:14)(cid:3)(cid:5)
(cid:14)(cid:3)(cid:5)
(cid:6)(cid:24)(cid:5)
(cid:6)(cid:24)(cid:5)
(cid:6)(cid:24)(cid:5)
(cid:11)(cid:18)(cid:23)
(cid:11)(cid:18)(cid:23)
(cid:11)(cid:18)(cid:23)
(cid:15)(cid:127)(cid:12)
(cid:15)(cid:127)(cid:12)
(cid:15)(cid:127)(cid:12)
(cid:24)(cid:12)(cid:13)
(cid:24)(cid:12)(cid:13)
(cid:24)(cid:12)(cid:13)
(cid:17)(cid:16)(cid:15)
(cid:17)(cid:16)(cid:15)
(cid:17)(cid:16)(cid:15)
(cid:12)(cid:15)(cid:4)
(cid:12)(cid:15)(cid:4)
(cid:12)(cid:15)(cid:4)
(cid:2)(cid:24)(cid:13)
(cid:2)(cid:24)(cid:13)
(cid:2)(cid:24)(cid:13)
(cid:9)(cid:13)(cid:23)
(cid:9)(cid:13)(cid:23)
(cid:9)(cid:13)(cid:23)
(cid:18)(cid:24)(cid:23)
(cid:18)(cid:24)(cid:23)
(cid:18)(cid:24)(cid:23)
(cid:24)(cid:14)(cid:7)
(cid:24)(cid:14)(cid:7)
(cid:24)(cid:14)(cid:7)
(cid:12)(cid:11)(cid:13)
(cid:12)(cid:11)(cid:13)
(cid:12)(cid:11)(cid:13)
(cid:14)(cid:12)(cid:12)
(cid:14)(cid:12)(cid:12)
(cid:14)(cid:12)(cid:12)
(cid:19)(cid:10)(cid:13)
(cid:19)(cid:10)(cid:13)
(cid:19)(cid:10)(cid:13)
(cid:24)(cid:23)(cid:22)
(cid:24)(cid:23)(cid:22)
(cid:24)(cid:23)(cid:22)
(cid:14)(cid:13)(cid:21)
(cid:14)(cid:13)(cid:21)
(cid:14)(cid:13)(cid:21)
(cid:9)(cid:24)(cid:13)
(cid:9)(cid:24)(cid:13)
(cid:9)(cid:24)(cid:13)
(cid:12)(cid:15)(cid:15)
(cid:12)(cid:15)(cid:15)
(cid:12)(cid:15)(cid:15)
(cid:21)(cid:20)(cid:19)
(cid:21)(cid:20)(cid:19)
(cid:21)(cid:20)(cid:19)
Sortino ratio (September 2015 to June 2021)
(cid:29)(cid:141)(cid:143)
(cid:29)(cid:141)(cid:143)
(cid:29)(cid:141)(cid:143)
(cid:29)(cid:141)(cid:31)
(cid:29)(cid:141)(cid:31)
(cid:29)(cid:141)(cid:31)
(cid:25)(cid:141)(cid:143)
(cid:25)(cid:141)(cid:143)
(cid:25)(cid:141)(cid:143)
(cid:25)(cid:141)(cid:31)
(cid:25)(cid:141)(cid:31)
(cid:25)(cid:141)(cid:31)
(cid:31)(cid:141)(cid:143)
(cid:31)(cid:141)(cid:143)
(cid:31)(cid:141)(cid:143)
(cid:31)(cid:141)(cid:31)
(cid:31)(cid:141)(cid:31)
(cid:31)(cid:141)(cid:31)
(cid:23)(cid:13)(cid:2)
(cid:23)(cid:13)(cid:2)
(cid:23)(cid:13)(cid:2)
(cid:23)(cid:19)(cid:14)
(cid:23)(cid:19)(cid:14)
(cid:23)(cid:19)(cid:14)
(cid:5)(cid:17)(cid:9)
(cid:5)(cid:17)(cid:9)
(cid:5)(cid:17)(cid:9)
(cid:15)(cid:23)(cid:25)
(cid:15)(cid:23)(cid:25)
(cid:15)(cid:23)(cid:25)
(cid:23)(cid:13)(cid:18)
(cid:23)(cid:13)(cid:18)
(cid:23)(cid:13)(cid:18)
(cid:9)(cid:24)(cid:12)
(cid:9)(cid:24)(cid:12)
(cid:9)(cid:24)(cid:12)
(cid:23)(cid:24)(cid:14)
(cid:23)(cid:24)(cid:14)
(cid:23)(cid:24)(cid:14)
(cid:22)(cid:127)(cid:2)
(cid:22)(cid:127)(cid:2)
(cid:22)(cid:127)(cid:2)
(cid:18)(cid:11)(cid:23)
(cid:18)(cid:11)(cid:23)
(cid:18)(cid:11)(cid:23)
(cid:19)(cid:1)(cid:8)
(cid:19)(cid:1)(cid:8)
(cid:19)(cid:1)(cid:8)
(cid:8)(cid:24)(cid:24)
(cid:8)(cid:24)(cid:24)
(cid:8)(cid:24)(cid:24)
(cid:129)(cid:6)(cid:13)
(cid:129)(cid:6)(cid:13)
(cid:129)(cid:6)(cid:13)
(cid:18)(cid:23)(cid:23)
(cid:18)(cid:23)(cid:23)
(cid:18)(cid:23)(cid:23)
(cid:8)(cid:13)(cid:23)
(cid:8)(cid:13)(cid:23)
(cid:8)(cid:13)(cid:23)
(cid:13)(cid:129)(cid:23)
(cid:13)(cid:129)(cid:23)
(cid:13)(cid:129)(cid:23)
(cid:24)(cid:3)(cid:13)
(cid:24)(cid:3)(cid:13)
(cid:24)(cid:3)(cid:13)
(cid:24)(cid:21)(cid:15)
(cid:24)(cid:21)(cid:15)
(cid:24)(cid:21)(cid:15)
(cid:9)(cid:15)(cid:12)
(cid:9)(cid:15)(cid:12)
(cid:9)(cid:15)(cid:12)
(cid:8)(cid:24)(cid:4)
(cid:8)(cid:24)(cid:4)
(cid:8)(cid:24)(cid:4)
(cid:5)(cid:15)(cid:15)
(cid:5)(cid:15)(cid:15)
(cid:5)(cid:15)(cid:15)
(cid:8)(cid:7)(cid:12)
(cid:8)(cid:7)(cid:12)
(cid:8)(cid:7)(cid:12)
(cid:8)(cid:24)(cid:14)
(cid:8)(cid:24)(cid:14)
(cid:8)(cid:24)(cid:14)
(cid:24)(cid:10)(cid:13)
(cid:24)(cid:10)(cid:13)
(cid:24)(cid:10)(cid:13)
(cid:14)(cid:3)(cid:5)
(cid:14)(cid:3)(cid:5)
(cid:14)(cid:3)(cid:5)
(cid:9)(cid:14)(cid:23)
(cid:9)(cid:14)(cid:23)
(cid:9)(cid:14)(cid:23)
(cid:15)(cid:127)(cid:12)
(cid:15)(cid:127)(cid:12)
(cid:15)(cid:127)(cid:12)
(cid:6)(cid:24)(cid:5)
(cid:6)(cid:24)(cid:5)
(cid:6)(cid:24)(cid:5)
(cid:11)(cid:18)(cid:23)
(cid:11)(cid:18)(cid:23)
(cid:11)(cid:18)(cid:23)
(cid:24)(cid:12)(cid:13)
(cid:24)(cid:12)(cid:13)
(cid:24)(cid:12)(cid:13)
(cid:12)(cid:15)(cid:4)
(cid:12)(cid:15)(cid:4)
(cid:12)(cid:15)(cid:4)
(cid:9)(cid:13)(cid:24)
(cid:9)(cid:13)(cid:24)
(cid:9)(cid:13)(cid:24)
(cid:24)(cid:14)(cid:7)
(cid:24)(cid:14)(cid:7)
(cid:24)(cid:14)(cid:7)
(cid:17)(cid:16)(cid:15)
(cid:17)(cid:16)(cid:15)
(cid:17)(cid:16)(cid:15)
(cid:18)(cid:24)(cid:23)
(cid:18)(cid:24)(cid:23)
(cid:18)(cid:24)(cid:23)
(cid:19)(cid:10)(cid:13)
(cid:19)(cid:10)(cid:13)
(cid:19)(cid:10)(cid:13)
(cid:2)(cid:24)(cid:13)
(cid:2)(cid:24)(cid:13)
(cid:2)(cid:24)(cid:13)
(cid:12)(cid:11)(cid:13)
(cid:12)(cid:11)(cid:13)
(cid:12)(cid:11)(cid:13)
(cid:9)(cid:13)(cid:23)
(cid:9)(cid:13)(cid:23)
(cid:9)(cid:13)(cid:23)
(cid:14)(cid:13)(cid:21)
(cid:14)(cid:13)(cid:21)
(cid:14)(cid:13)(cid:21)
(cid:14)(cid:12)(cid:12)
(cid:14)(cid:12)(cid:12)
(cid:14)(cid:12)(cid:12)
(cid:24)(cid:23)(cid:22)
(cid:24)(cid:23)(cid:22)
(cid:24)(cid:23)(cid:22)
(cid:9)(cid:24)(cid:13)
(cid:9)(cid:24)(cid:13)
(cid:9)(cid:24)(cid:13)
(cid:12)(cid:15)(cid:15)
(cid:12)(cid:15)(cid:15)
(cid:12)(cid:15)(cid:15)
(cid:21)(cid:20)(cid:19)
(cid:21)(cid:20)(cid:19)
(cid:21)(cid:20)(cid:19)
1. Annualised returns are calculated during the period of 30 Sep 2015 to 30 June 2021 using monthly pre-tax NTA values including dividends (excluding franking) and adjusted for the dilutionary impact of
options exercised resulting in an increase in issued capital by 5% or greater during the period
2. Funds included in this analysis are only a selection of Listed Investment Companies (LIC) on the ASX and are intended to form a representative sample of LICs based on strategy, size and past performance
3. Sharpe ratio is calculated as excess annualised return above the risk free rate (RBA Cash rate) divided by standard deviation of monthly returns (annualised) for the period of 30 Sep 2015 to 30 June 2021
4. Sortino ratio is calculated as excess annualised return above the risk free rate (RBA Cash rate) divided by downside deviation of monthly returns (annualised), using a benchmark of the risk free rate (RBA
Cash rate) for the period of 30 Sep 2015 to 30 June 2021
Ryder has outperformed both absolutely and relatively on all measures.
9
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021
Investment Manager’s Report (Continued)
Outlook
With investor exuberance finding its way into almost any and every asset on the planet, it is hard not to be concerned as to what may
lie ahead for us as investors. We should be optimistic about the future as vaccines are proving efficacious, saving lives and assisting in
the re-opening of economies as we gradually make our way back to a new but somewhat altered way of life. However, at some point the
emergency fiscal and monetary support mechanisms that have provided financial safety for many (and excessive wealth for a few) will
be wound back, timed crudely to coincide with the global economy’s ability to pick up the slack. The timing will not be perfect and the
transfer bumpy which will likely surface as asset price volatility and consequently a more difficult period for investors to navigate. To be
clear, we are not outright bearish, just increasingly cautious and aware that our most recent experience of strong returns is unlikely to
continue and asset price volatility will return sooner or later. Using a well known maxim from Warren Buffett the tide may soon turn and
expose those that have been swimming naked, knowingly or otherwise.
Timing can be everything but it can also create relative risk and underperformance trying to predict too precisely when an event will
unfold. We do not profess to have the ability to call market tops, bottoms or other key macro events. However, we can actively position
the Portfolio and its construct to reflect periods in markets where we feel future performance is uncertain. Currently, the odds of future
success through a reliance on the continuation of strong market momentum are low and falling. With this in mind, we are selectively
increasing the Portfolio’s cash exposure, lifting conviction thresholds and lowering risk positions. Combined with an anticipated injection
of cash over the coming months as Ryder RYDOA options are exercised, the Portfolio is well positioned for volatility and to take advantage
of resulting opportunities.
Peter Constable
Chief Investment Officer / Portfolio Manager
David Bottomley
Portfolio Manager
10
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Your directors present their report on Ryder Capital Limited (‘Company’) for the year ended 30 June 2021.
Information on directors
The following persons were directors of the Company from registration date and up to the date of this report (unless otherwise indicated):
Peter Constable - BEc Chairman
Experience and expertise
Peter has over 25 years’ experience in both Australian and international equity capital markets. He holds a Bachelor of Economics from
Macquarie University and has broad investment experience covering identification, evaluation, strategic analysis and management of
capital.
Peter began his career in 1993 as a graduate funds manager with the United Bank of Kuwait, London. Peter established AM Constable
Limited in 1999 which later merged with MMC Asset Management Ltd (MMC) in 2003. Peter was the Chief Investment Officer and
Executive Director of MMC until June 2008.
Peter co-founded Ryder Investment Management in July 2008 where he is the Chief Investment Officer. He has acted as Executive
Chairman of Ryder Capital Limited since the Company’s inception in September 2015.
Other current directorships
Peter is not currently serving a directorship for any other listed companies.
Former directorships in the last 3 years
Nil.
Special responsibilities
Chairman of the Board and member of the Audit and Risk Committee.
Interests in shares and options
Details of Peter Constable’s interests in shares of the Company are included later in this report. There has been no change in the
shareholdings since year end to the date of this report.
Interest in contracts
Peter has no interests in contracts of the Company.
David Bottomley - BA LLB (Hons) F Fin Director and Company Secretary
Experience and expertise
David has over 20 years’ experience in corporate finance, M&A and equity capital markets advisory. He holds a Bachelor of Arts
(Economic History) from the University of Sydney, Bachelor of Laws (Hons) from Bond University and is a Fellow of the Financial Services
Institute of Australasia.
David previously held executive positions at Kleinwort Benson (UK Corporate Finance division), Merrill Lynch & Co (London) investment
banking division and was Managing Director, Australia of US-based investment bank GMCG, LLC from 2004 until June 2008.
David co-founded Ryder Investment Management in July 2008 where he is a Portfolio Manager. He has acted as an Executive Director of
Ryder Capital Limited since inception and currently serves on the board of Tetratherix Pty Ltd..
Other current directorships
David is not currently serving a directorship for any other listed companies.
Former directorships in the last 3 years
Nil.
Special responsibilities
Member of the Audit and Risk Committee.
Interests in shares and options
Details of David Bottomley’s interests in shares of the Company are included later in this report. There has been no change in the
shareholdings since year end to the date of this report.
Interest in contracts
David has no interests in contracts of the Company.
11
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021Directors’ Report Directors’ Report (Continued)
Ray Kellerman - BEc , LLB, MBA, F Fin Non-Executive Director
Experience and expertise
Ray was appointed as a Director of Ryder Capital Limited in June 2015.
Ray has over 30 years’ of experience in the funds management and corporate and structured finance industries. Ray was with Perpetual
Trustees Australia for 10 years before establishing his own compliance consulting and advisory business in 2001.
He currently acts as a director and audit, risk and compliance committee member for a number of major fund managers and financial
services companies including as Chairman of CountPlus Limited.
Ray is an owner and Executive Director of Quentin Ayers, an implemented asset consultant specialising in alternative private market
investments.
Previous appointments include Independent Chairman of ClearView Wealth, an ASX listed life insurance and financial services company;
and Independent Chairman of Credit Suisse Asset Management Australia.
Other current directorships
Other than acting as Chairman of Countplus Limited, Ray does not act as a director for any other listed companies.
Former directorships in the last 3 years
Nil.
Special responsibilities
Chair of the Audit and Risk Committee.
Interests in shares and options
Details of Ray Kellerman’s interests in shares of the Company are included later in this report. There has been no change in the
shareholdings since year end to the date of this report.
Interest in contracts
Ray has no interests in contracts of the Company.
Attendance at Meetings
Board of Directors Meetings
Director
Peter Constable
David Bottomley
Ray Kellerman
Meetings held and entitled to attend
Meetings attended
7
7
7
7
7
7
Audit and Risk Committee Meetings
Director
Meetings held and entitled to attend
Meetings attended
Peter Constable
David Bottomley
Ray Kellerman
Principal activity
2
2
2
2
2
2
The principal activity of the Company during the year was investing in a concentrated portfolio of ASX and small to mid capitalisation
securities, bonds and cash consistent with the Company’s permitted investments and stated investment objective of achieving long term
growth in capital in excess of its benchmark (RBA cash rate plus 4.25% p.a.).
12
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021
Directors’ Report (Continued)
Review of Operations
Portfolio performance was strong both nominally and relatively. Total comprehensive income after tax increased 202% by $15,538,076
to $23,215,635. Gross Portfolio performance of 43.4%, comfortably exceeded the Company’s performance benchmark resulting in a
performance fee payable to the Investment Manager of $7,040,139.
The Company’s opening Net Asset Value (NAV) on 30 June 2020 was $96,245,789 and the closing NAV on 30 June 2021 was $130,891,114
reflecting an increase in net assets of $34,645,325.
During the year, the Company did not buy back any shares. The Company will continue to buy back shares where it is accretive, balanced
against the benefits of holding cash for generating further performance and growth in the Company’s NTA. Net Tangible Assets (NTA) per
share before tax increased from 163.81 cents per share to 193.56 cents per share during the reporting period. Noting this increase was after
the payment of 6.0 cents per share in fully franked dividends and the payment of realised tax equivalent to 10.5 cents per share outlined in
the waterfall chart below.
Ryder (pre-tax) Performance
(cid:31)(cid:25)(cid:29)(cid:28)(cid:24)(cid:23)(cid:22)
(cid:31)(cid:21)(cid:25)(cid:29)(cid:25)(cid:28)(cid:25)(cid:25)(cid:20)
(cid:31)(cid:21)(cid:25)(cid:29)(cid:25)(cid:23)(cid:26)(cid:22)(cid:20)
(cid:31)(cid:21)(cid:25)(cid:29)(cid:30)(cid:25)(cid:24)(cid:30)(cid:20)
(cid:31)(cid:21)(cid:25)(cid:29)(cid:25)(cid:24)(cid:18)(cid:23)(cid:20)
(cid:31)(cid:23)(cid:29)(cid:25)(cid:24)(cid:25)(cid:26)
(cid:31)(cid:21)(cid:25)(cid:29)(cid:30)(cid:25)(cid:22)(cid:27)(cid:20)
(cid:31)(cid:30)(cid:29)(cid:19)(cid:27)(cid:22)(cid:28)
(cid:31)(cid:22)(cid:29)(cid:21)(cid:27)
(cid:31)(cid:22)(cid:29)(cid:22)(cid:27)
(cid:31)(cid:22)(cid:29)(cid:30)(cid:27)
(cid:31)(cid:22)(cid:29)(cid:27)(cid:27)
(cid:31)(cid:30)(cid:29)(cid:23)(cid:27)
(cid:31)(cid:30)(cid:29)(cid:24)(cid:27)
(cid:31)(cid:30)(cid:29)(cid:26)(cid:27)
(cid:31)(cid:30)(cid:29)(cid:25)(cid:27)
(cid:31)(cid:30)(cid:29)(cid:28)(cid:27)(cid:26)(cid:30)
(cid:31)(cid:30)(cid:29)(cid:28)(cid:27)
(cid:17)(cid:16)(cid:15)(cid:14)(cid:13)(cid:23)(cid:25)(cid:23)(cid:25)
(cid:12)(cid:11)(cid:10)(cid:13)(cid:21)(cid:9)(cid:8)(cid:14)(cid:7)(cid:6)(cid:5)(cid:4)(cid:20)
(cid:9)(cid:3)(cid:8)(cid:6)(cid:2)(cid:3)(cid:1)(cid:127)(cid:3)(cid:13)
(cid:9)(cid:14)(cid:8)(cid:2)(cid:3)(cid:8)(cid:129)(cid:5)(cid:15)(cid:141)(cid:14)
(cid:143)(cid:127)(cid:144)(cid:127)(cid:157)(cid:14)(cid:15)(cid:157)
(cid:9)(cid:5) (cid:129)(cid:14)(cid:15)(cid:6)
€(cid:14)(cid:13)‚(cid:13)(cid:143)(cid:127)(cid:8)(cid:14)(cid:141)(cid:6)(cid:3)(cid:8)(cid:13)
ƒ(cid:14)(cid:14)(cid:13)„(cid:13)…(cid:4)†(cid:14)(cid:15)‡(cid:14)‡
(cid:9)(cid:14)(cid:8)(cid:2)(cid:3)(cid:8)(cid:129)(cid:5)(cid:15)(cid:141)(cid:14)
ƒ(cid:14)(cid:14)(cid:13)(cid:10)(cid:141)(cid:141)(cid:8)(cid:16)(cid:14)(cid:157)
ˆ†(cid:6)(cid:127)(cid:3)(cid:15)(cid:13)
(cid:143)(cid:127)(cid:1)(cid:16)(cid:6)(cid:127)(cid:3)(cid:15)
(cid:17)(cid:16)(cid:15)(cid:14)(cid:13)(cid:23)(cid:25)(cid:23)(cid:30)(cid:13)(cid:21)†(cid:8)(cid:14)(cid:7)(cid:6)(cid:5)(cid:4)(cid:20)
(cid:9)(cid:8)(cid:3)(cid:144)(cid:127)(cid:157)(cid:14)(cid:157)(cid:13)(cid:5)(cid:15)(cid:157)(cid:13)(cid:9)(cid:5)(cid:127)(cid:157)
(cid:11)(cid:5)(cid:4)(cid:13)(cid:9)(cid:5) (cid:129)(cid:14)(cid:15)(cid:6)
(cid:17)(cid:16)(cid:15)(cid:14)(cid:13)(cid:23)(cid:25)(cid:23)(cid:30)(cid:13)(cid:12)(cid:11)(cid:10)(cid:13)
(cid:21)(cid:9)(cid:8)(cid:14)(cid:7)(cid:6)(cid:5)(cid:4)(cid:20)(cid:13)(cid:9)(cid:8)(cid:3)(cid:144)(cid:127)(cid:157)(cid:14)(cid:157)
In the period, the Investment Manager sold several long-term Portfolio investments on valuation grounds and realised material gains
which are reflected in the Company’s capital profits reserve increasing 82% by $13,824,125 to $30,768,597, which when added to the
Company’s profit reserve of $105,462 takes total distributable profits to $30,874,059, an increase of 64% and equivalent to $0.457 per share.
This increase is net of $3,831,417 in dividends paid during the period and excludes $20,790,041 of net unrealised gains in the Portfolio.
13
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Directors’ Report (Continued)
The growth in the Company’s profits reserve and dividends paid over time is demonstrated in the chart below.
RYD Distributable Profits and Dividends Paid since Inception
(cid:31)(cid:30)(cid:29)(cid:22)(cid:30)(cid:30)
(cid:31)(cid:30)(cid:29)(cid:23)(cid:30)(cid:30)
(cid:31)(cid:30)(cid:29)(cid:24)(cid:30)(cid:30)
(cid:31)(cid:30)(cid:29)(cid:25)(cid:30)(cid:30)
(cid:31)(cid:30)(cid:29)(cid:26)(cid:30)(cid:30)
(cid:31)(cid:30)(cid:29)(cid:27)(cid:30)(cid:30)
(cid:31)(cid:30)(cid:29)(cid:28)(cid:30)(cid:30)
(cid:31)(cid:30)(cid:29)(cid:30)(cid:30)(cid:30)
(cid:31)(cid:30)(cid:29)(cid:28)(cid:27)(cid:30)
(cid:31)(cid:30)(cid:29)(cid:28)(cid:24)(cid:30)
(cid:31)(cid:30)(cid:29)(cid:25)(cid:24)(cid:22)
(cid:31)(cid:30)(cid:29)(cid:30)(cid:21)(cid:30)
(cid:31)(cid:30)(cid:29)(cid:25)(cid:28)(cid:129)
(cid:31)(cid:30)(cid:29)(cid:30)(cid:22)(cid:30)
(cid:31)(cid:30)(cid:29)(cid:27)(cid:129)(cid:28)
(cid:31)(cid:30)(cid:29)(cid:26)(cid:27)(cid:28)
(cid:31)(cid:30)(cid:29)(cid:30)(cid:25)(cid:30)
(cid:31)(cid:30)(cid:29)(cid:28)(cid:21)(cid:27)
(cid:31)(cid:30)(cid:29)(cid:30)(cid:30)(cid:28)
(cid:31)(cid:30)(cid:29)(cid:30)(cid:30)(cid:25)
(cid:31)(cid:30)(cid:29)(cid:30)(cid:28)(cid:30)
(cid:31)(cid:30)(cid:29)(cid:30)(cid:24)(cid:23)
(cid:31)(cid:30)(cid:29)(cid:28)(cid:26)(cid:26)
(cid:31)(cid:30)(cid:29)(cid:30)(cid:28)(cid:30)
(cid:31)(cid:30)(cid:29)(cid:30)(cid:129)(cid:25)
(cid:31)(cid:30)(cid:29)(cid:30)(cid:26)(cid:30)
(cid:31)(cid:30)(cid:29)(cid:30)(cid:23)(cid:21)
(cid:28)(cid:20)(cid:28)(cid:23)
(cid:27)(cid:20)(cid:28)(cid:23)
(cid:28)(cid:20)(cid:28)(cid:22)
(cid:27)(cid:20)(cid:28)(cid:22)
(cid:28)(cid:20)(cid:28)(cid:129)
(cid:27)(cid:20)(cid:28)(cid:129)
(cid:28)(cid:20)(cid:28)(cid:21)
(cid:27)(cid:20)(cid:28)(cid:21)
(cid:28)(cid:20)(cid:27)(cid:30)
(cid:27)(cid:20)(cid:27)(cid:30)
(cid:28)(cid:20)(cid:27)(cid:28)
(cid:27)(cid:20)(cid:27)(cid:28)
(cid:2)(cid:8)(cid:1)(cid:16)(cid:15)(cid:16)(cid:17)(cid:12)(cid:4)(cid:7)(cid:14)(cid:13)(cid:12)(cid:4)(cid:12)(cid:13)(cid:7)(cid:127)(cid:13)(cid:11)(cid:14)(cid:6)(cid:7)(cid:10)(cid:14)(cid:11)(cid:3)(cid:16)(cid:10)(cid:7)
At 30 June 2021 approximately 86.33% of the Company’s capital was deployed in equities with approximately 13.67% held in cash, term
deposits and net receivables.
(cid:19)(cid:18)(cid:17)(cid:16)(cid:15)(cid:14)(cid:13)(cid:12)(cid:11)(cid:17)(cid:10)(cid:12)(cid:9)(cid:8)(cid:17)(cid:16)(cid:9)(cid:15)(cid:7)(cid:14)(cid:6)(cid:10)(cid:18)(cid:5)(cid:12)(cid:17)(cid:14)(cid:10)(cid:7)(cid:11)(cid:7)(cid:10)(cid:4)(cid:7)(cid:11)(cid:14)(cid:6)(cid:7)(cid:10)(cid:14)(cid:11)(cid:3)(cid:16)(cid:10)(cid:7)
The Investment Manager conducted a detailed review of the valuation of Updater Inc. (Updater) as of 30 June 2021. Directors are satisfied
that Updater’s business plan, operational progress and strategic initiative to list on the NASDAQ are sound. Updater continues to be
held as a US Dollar equity asset with no changes to carrying value and is marked to market in line with currency fluctuations. To date the
Investment Manager has not hedged any of the US dollar Updater exposure.
COVID-19 continues to present challenges for individuals, companies and consequentially, global equity markets. The Investment Manager
demonstrated strong nominal and relative performance in the period and successfully managed market risk and portfolio volatility within
the Company’s investment guidelines. The Investment Manager and the Company are conscious of the ongoing impact and uncertainty of
COVID-19 and the Portfolio continues to be actively managed to reduce risk while taking advantage of opportunities as they arise during
this period. Ryder has taken steps to ensure that the Investment Manager is able to continue operations without interruption and with all
employees having the facilities to work from home if required.
The Company is cognisant of the ultra low interest rates on deposits of the Company’s cash and near cash asset reserves coupled
with investee companies prudently managing their own capital requirements balanced against dividend distributions. Ryder is well
positioned against dividend payment fluctuations as the Portfolio’s primary objective is long term capital growth with income generation
as a secondary objective. The Company’s dividend payments for the year increased from 5.0 cents fully franked in FY20 to 7.0 cents fully
franked in FY21. The Board anticipates that given its strong profit reserves, shareholder dividends should be well insulated in the short to
medium term.
14
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Directors’ Report (Continued)
Dividends
On 14 August 2020, the Directors declared a fully franked dividend of 3.00 cents per share paid on 9 September 2020 on ordinary shares
held as at record date 20 August 2020 (ex-dividend date of 19 August 2020).
On 19 February 2021, the Directors declared a fully franked dividend of 3.00 cents per share paid on 13 April 2021 on ordinary shares held
as at record date 25 March 2021 (ex-dividend date 24 March 2021).
On 13 August 2021, the Directors declared a fully franked dividend of 4.00 cents per share paid on 8 October 2021 on ordinary shares held
as at record date 23 September 2021 (ex-dividend date of 22 September 2021).
Unissued Shares
Upon the exercise of an Initial Option, the Company issued holders a Secondary Option over one Share, with each Secondary Option
exercisable at $1.50 on or before 10 December 2021. As at the date of this report all Initial Options have been exercised or lapsed. During
the year, 8,867,947 Secondary Options were exercised (30 June 2020: nil).
As at date of this report
Initial Option over unissued ordinary shares
Secondary Option over unissued ordinary shares
–
17,379,935
Net Assets
As at 30 June 2021 the net assets of the Company were $119,612,127 (30 June 2020: $86,928,789). Please refer to the Statement of Financial
Position for further details.
State of Affairs
During the financial year there was no significant change in the state of affairs of the Company.
Events Subsequent to Balance Date
Except in relation to the dividend declared subsequent to balance date and referred to in the Note 16, no matter or circumstance has arisen
since the end of the financial year that has significantly affected or may significantly affect the operations of the Company, the result of
those operations or the state of affairs of the Company in subsequent financial years.
Likely Developments
The Company will be managed in accordance with the Constitution and investment objectives as detailed in the Prospectus dated 12
August 2015. Please refer to the Chairman’s and Investment Manager’s reports for further guidance.
Insurance of Officers
During the financial year, the Company paid a premium for an insurance policy insuring all directors and officers against liabilities for costs
and expenses incurred by them in defending any legal proceedings arising out of their conduct while acting in their capacity as director
or officer of the Company, other than conduct involving a wilful breach of duty in relation to the Company. In accordance with common
commercial practice, the insurance policy prohibits disclosure of the nature of the liability insured against and the amount of the premium.
Environmental Regulations
The Company’s operations are not subject to any significant environmental regulations.
Rounding of Amounts to Nearest Dollar
In accordance with ASIC Corporations (Rounding in Financial / Directors’ Reports) Instrument 2016 / 191, the amounts in the directors’
report and in the financial report have been rounded to the nearest dollar (unless otherwise indicated).
15
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Directors’ Report (Continued)
Remuneration Report (Audited)
This remuneration report sets out information about the remuneration of the Company’s directors for the year ended 30 June 2021, under
the requirements of Section 300A(1) of the Corporations Act 2001 (Cth).
Key Management Personnel
The directors and other key management personnel of the Company during the whole of the financial year, and up to the date of this
report are (unless otherwise indicated):
Peter Constable - Chairman
David Bottomley - Director and Company Secretary
Ray Kellerman - Non-Executive Director
Directors’ Remuneration
Directors’ base fees are set out in the Constitution at an amount that must not be more in aggregate than the maximum amount approved
by the Company in a general meeting. The Company paid no remuneration directly to Peter Constable or David Bottomley. However, they
are indirectly remunerated through related party, Ryder Investment Management Pty Ltd. Refer to ‘Director Related Entity
Remuneration’ below.
Directors’ remuneration received or receivable was as follows:
Year ended 30 June 2021
Director
Peter Constable
David Bottomley
Ray Kellerman¹
Year ended 30 June 2020
Director
Peter Constable
David Bottomley
Ray Kellerman¹
Position
Chairman
Director
Non-Executive Director
Position
Chairman
Director
Non-Executive Director
Short-term employee
benefits
Cash salary
Post-employment
benefits
Superannuation
$
-
-
36,530
36,530
$
-
-
3,470
3,470
Short-term employee
benefits
Cash salary
Post-employment
benefits
Superannuation
$
-
-
36,530
36,530
$
-
-
3,470
3,470
Total
$
-
-
40,000
40,000
Total
$
-
-
40,000
40,000
1. Director fees (for the sole Non-Executive Director) total $40,000 per annum including superannuation.
Director Related Entity Remuneration
The Company has outsourced its investment management function to Ryder Investment Management Pty Ltd (the ‘Investment Manager’)
a company controlled by Peter Constable and David Bottomley. The Investment Manager is privately owned and was incorporated in July
2008.
(a) Management fee
The Investment Manager is entitled to be paid a management fee equal to 1.25% p.a. (plus GST) of the Portfolio Net Asset Value. The
management fee is paid monthly in arrears.
(b) Performance fee
The Investment Manager is entitled to receive a performance fee of 20% (plus GST) of the outperformance of the Portfolio above the
Benchmark. The Benchmark is the RBA Cash Rate plus 4.25%. The performance fee is accrued monthly but is not paid until the end of
each 12 month period ending on 30 June (Performance Calculation Period).
16
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021
Directors’ Report (Continued)
Remuneration Report (Audited) (Continued)
Director Related Entity Remuneration (Continued)
Management and performance fees during the year and payable to the Investment Manager at year end were as follows:
Management fees during the year
Performance fees during the year
Management fees payable at year end
Performance fees payable at year end
Equity Instrument Disclosures Relating to Directors
The relevant interests of the Directors and their related entities in the securities of the Company were:
Year ended
30 June 2021
Year ended
30 June 2020
$
1,665,056
7,040,139
145,407
7,040,139
$
1,313,629
1,416,708
102,679
1,416,708
Shares as at 30 June 2021
Director
Peter Constable¹
David Bottomley¹
Ray Kellerman
Options (RYDOA) as at 30 June 2021
Director
Peter Constable
David Bottomley
Ray Kellerman
Opening
balance
Acquisitions /
Options
exercised
Shares
acquired
/ (disposed)
Closing
balance as at
30 June 2021
8,675,000
3,048,000
1,020,000
2,154,500
475,000
510,000
(10,000)
12,000
-
10,819,500
3,535,000
1,530,000
12,743,000
3,139,500
2,000
15,884,500
Opening
balance
Issued /
acquired
Lapsed /
exercised
Closing
balance as at
30 June 2021
3,462,500
1,025,000
510,000
4,997,500
-
-
-
-
(2,159,500)
(475,000)
(510,000)
1,303,000
550,000
-
(3,144,500)
1,853,000
1. Director and shareholder (>20%) of Ryder Investment Management Pty Ltd which has power to control the voting rights as a discretionary investment manager. As at the date of incorporation one share in
the Company was held by Ryder Investment Management Pty Ltd, a company controlled by Peter Constable and David Bottomley.
17
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021
Directors’ Report (Continued)
Remuneration Report (Audited) (Continued)
Shares as at 30 June 2020
Director
Peter Constable¹
David Bottomley¹
Ray Kellerman
Options (RYDOA) as at 30 June 2020
Director
Peter Constable
David Bottomley
Ray Kellerman
Opening
balance
Acquisitions /
Options
exercised
Shares
acquired
/ (disposed)
Closing
balance as at
30 June 2020
8,441,000
3,023,000
1,020,000
12,484,000
-
-
-
-
234,000
25,000
-
8,675,000
3,048,000
1,020,000
259,000
12,743,000
Opening
balance
Issued /
acquired
Lapsed /
exercised
Closing
balance as at
30 June 2020
3,462,500
1,025,000
510,000
4,997,500
-
-
-
-
-
-
-
-
3,462,500
1,025,000
510,000
4,997,500
1. Director and shareholder (>20%) of Ryder Investment Management Pty Ltd which has power to control the voting rights as a discretionary investment manager. As at the date of incorporation one share in
the Company was held by Ryder Investment Management Pty Ltd, a company controlled by Peter Constable and David Bottomley.
The options outstanding and available to Directors are on the same terms and conditions as offered to all other option holders.
End of Remuneration Report.
18
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021
Directors’ Report (Continued)
Proceedings on behalf of the Company
There are no proceedings that the Directors have brought, or intervened in, on behalf of the Company.
Non-audit services
The Board of Directors, in accordance with advice from the Audit and Risk Committee, is satisfied that the provision of non-audit services
during the year is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001 (Cth). The
Directors are satisfied that the services disclosed in Note 12 did not compromise the external auditor’s independence for the following:
(a) all non-audit services have been reviewed by the Audit and Risk Committee to ensure they do not impact the impartiality and
objectivity of the auditor;
(b) None of the services contravene the independence requirements of the Corporations Act 2001 (Cth) or any applicable code of
professional conduct in relation to the audit.
Auditor’s independence declaration
A copy of the auditor’s independence declaration as required under section 307C of the Corporations Act 2001 (Cth) is set out on page 20.
Signed in accordance with a resolution of the Directors.
Peter Constable
Chairman
Ryder Capital Limited
Sydney, 13 August 2021
19
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Auditor’s Independence Declaration
Level 17, 383 Kent Street
Sydney NSW 2000
Correspondence to:
Locked Bag Q800
QVB Post Office
Sydney NSW 1230
T +61 2 8297 2400
F +61 2 9299 4445
E info.nsw@au.gt.com
W www.grantthornton.com.au
Auditor’s Independence Declaration
To the Directors of Ryder Capital Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of Ryder
Capital Limited for the year ended 30 June 2021, I declare that, to the best of my knowledge and belief, there have been:
a
b
no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
Grant Thornton Audit Pty Ltd
Chartered Accountants
G S Layland
Director – Audit & Assurance
Sydney, 13 August 2021
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
20
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021
Statement of Profit or Loss and Other Comprehensive Income
Investment income
Interest income
Dividend income net of franking credits
Net gain on financial instruments at fair value through profit or loss
Other income
Total investment income
Expenses
Management fees
Directors' fees
Performance fees
Other operating expenses
Total expenses
(Loss) / profit for the year before income tax expense
Income tax benefit
(Loss) / profit for the year
Other comprehensive income
Items that will not be reclassified to profit or loss:
Note
Year ended
30 June 2021
Year ended
30 June 2020
$
36,105
1,762,646
3,515
7,684
1,809,950
(1,551,529)
(40,000)
(7,040,139)
(333,011)
$
158,191
2,395,790
820,525
17,563
3,392,069
(1,224,063)
(40,000)
(1,416,708)
(318,303)
(8,964,679)
(2,999,074)
(7,154,729)
2,621,712
(4,533,017)
392,995
359,323
752,318
14
14
14
4(a)
Movement in fair value of long term equity investments, net of tax
11(d)
Total comprehensive income for the year
27,748,652
23,215,635
6,925,241
7,677,559
Basic (losses) / earnings per share
Diluted (losses) / earnings per share
5
5
(7.24) cents
1.27 cents
(7.24) cents
1.27 cents
The above Statement of Profit or Loss and Other Comprehensive Income should be read in conjunction with the Notes to the Financial Statements which follow.
21
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Statement of Financial Position
Assets
Current assets
Cash and cash equivalents
Receivables
Derivative assets
Total current assets
Non-current assets
Long-term equity investments
Deferred tax asset
Total non-current assets
Total assets
Liabilities
Current liabilities
Payables
Current tax liability
Total current liabilities
Non-current liabilities
Deferred tax liability
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Accumulated losses
Profits reserve
Capital profits reserve
Asset revaluation reserve
Total equity
Note
13(a)
6
7,8,3
7, 3
4(d)
9
4(c)
4(d)
10(a)
11(a)
11(b)
11(c)
11(d)
As at
30 June 2021
$
20,841,669
35,472
3,515
20,880,656
119,197,825
2,043
119,199,868
As at
30 June 2020
$
17,433,819
223,281
-
17,657,100
80,271,942
2,760
80,274,702
140,080,524
97,931,802
9,187,367
2,290,015
11,477,382
8,988,215
8,988,215
1,683,253
5,375,334
7,058,587
3,944,426
3,944,426
20,465,597
11,003,013
119,614,927
86,928,789
77,524,855
(9,754,028)
105,462
30,768,597
20,970,041
64,222,935
(5,221,011)
1,916,989
16,944,472
9,065,404
119,614,927
86,928,789
The above Statement of Financial Position should be read in conjunction with the Notes to the Financial Statements which follow.
22
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Capital
profits
reserve
Asset
revaluation
reserve
Total equity
$
$
$
11,424,280
9,436,557
83,034,684
–
-
-
–
752,318
6,925,241
6,925,241
6,925,241
7,677,559
Statement of Changes in Equity
Note
Issued
capital
Accumulated
losses
Profits
reserve
Balance at 30 June 2019
Profit for the year
Net revaluation of investments
Total comprehensive income for the period
Other
Transfer of realised gains on sale of investments,
net of tax
Transfer to profit reserve
11(c)
11(a)
$
$
65,050,053
(2,876,206)
752,318
-
752,318
-
-
-
-
-
-
-
-
-
7,296,394
(7,296,394)
(3,097,123)
3,097,123
-
-
(3,097,123)
3,097,123
7,296,394
(7,296,394)
-
-
-
Transactions with owners in their
capacity as owners
Shares acquired under buy-back during
the year
Transaction costs on shares acquired under
buy-back
Income tax on transaction costs
Dividend paid
10(a)
(825,366)
10(a)
10(a)
11(b),(c)
(1,725)
(27)
-
(827,118)
-
-
-
-
-
-
-
-
-
-
-
(1,180,134)
(1,776,202)
(1,180,134)
(1,776,202)
-
-
-
-
-
(825,366)
(1,725)
(27)
(2,956,336)
(3,783,454)
Balance at 30 June 2020
64,222,935
(5,221,011)
1,916,989
16,944,472
9,065,404
86,928,789
Profit for the year
Net revaluation of investments
Total comprehensive income for the year
Other
Transfer of realised gains on sale of investments,
net of tax
Transfer to profit reserve
11(c)
11(a)
–
-
-
-
-
–
Transactions with owners in their capacity as
owners
Shares issued under the exercise of secondary
options
Dividends paid
10(a)
13,301,920
11(b),(c)
-
13,301,920
(4,533,017)
-
(4,533,017)
-
-
–
-
-
-
–
-
-
–
(4,533,017)
27,748,652
27,748,652
27,748,652
23,215,635
15,844,015
(15,844,015)
-
-
15,844,015
(15,844,015)
-
-
–
-
(1,811,527)
(2,019,890)
(1,811,527)
(2,019,890)
-
-
-
13,301,920
(3,831,417)
9,470,503
Balance at 30 June 2021
77,524,855
(9,754,028)
105,462
30,768,597
20,970,041
119,614,927
The above Statement of Changes in Equity should be read in conjunction with the Notes to the Financial Statements which follow.
23
$
-
–
-
-
-
–
-
-
-
-
–
-
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Statement of Cash Flows
Cash flows from operating activities
Interest received
Dividends received
Management fees paid
Performance fees paid
Directors' fees paid
Other operating expenses paid
Other income received
Income tax paid
Note
Year ended 30 June 2021
Year ended 20 June 2020
$
$
36,105
1,960,156
(1,508,801)
(1,416,708)
(40,000)
(346,712)
7,684
(7,311,381)
204,181
2,198,280
(1,215,506)
-
(40,000)
(320,220)
17,563
-
Net cash (used in) / provided by operating activities
13(b)
(8,619,657)
844,298
Cash flows from investing activities
Proceeds from sale of investments
Payments for purchase of investments
49,725,805
(47,168,801)
51,868,382
(54,020,457)
Net cash provided by / (used in) investing activities
2,557,004
(2,152,075)
Cash flows from financing activities
Dividends paid
Proceeds from shares issued
Payments for share buy-back
Share issue costs paid
(3,831,417)
13,301,920
-
-
(2,956,336)
-
(825,366)
(1,725)
Net cash provided by / (used in) financing activities
9,470,503
(3,783,427)
Net increase / (decrease) in cash held
3,407,850
(5,091,204)
Cash and cash equivalents at beginning of the financial year
17,433,819
22,525,023
Cash and cash equivalents at end of the financial year
13(a)
20,841,669
17,433,819
The above Statement of Cash Flows should be read in conjunction with the Notes to the Financial Statements which follow.
24
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Notes to the Financial Statements
1. GENERAL INFORMATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
Ryder Capital Limited (‘the Company’) is a publicly listed company, incorporated and domiciled in Australia. The Company was
incorporated with the Australian Securities and Investments Commission (‘ASIC’) on 26 June 2015. The registered office and principal
place of business of the Company is Level 25, 88 Phillip Street, Sydney NSW 2000. The Company’s principal activity is investing in a
concentrated portfolio of ASX and small capitalisation securities, bonds and cash consistent with the Company’s permitted investments
and stated investment objective of achieving long term growth in capital and income.
Updater Inc. delisted from the ASX in October 2018 and became a privately held Delaware incorporated company. In September
2018, the Board of Directors resolved to amend the Company’s investment strategy to allow for continued ownership of Updater Inc.
notwithstanding it being an unlisted Delaware incorporated company.
These general purpose financial statements are for the year ended 30 June 2021, and were authorised for issue by the Directors on 13
August 2021.
The material accounting policies adopted by the Company in the preparation of the financial statements is set out below:
(a) Basis of preparation
These general purpose financial statements have been prepared in accordance with the Australian Accounting Standards, issued
by the Australian Accounting Standards Board (‘AASB’) and the Corporations Act 2001 (Cth). For the purposes of preparing financial
statements, the Company is a for-profit entity.
The Company is a for-profit entity for financial reporting purposes under Australian Accounting Standards.
The financial statements, except for cash flow information, have been prepared on an accruals basis and are based on historical costs,
modified where applicable, by the measurement of fair value of selected assets and liabilities.
(b) Statement of compliance
The financial statements and notes thereto comply with Australian Accounting Standards as issued by the AASB and International
Financial Reporting Standards (‘IFRS’) as issued by the International Accounting Standards Board (‘IASB’).
(c) Investments
i)
Recognition / derecognition
The Company recognises financial assets and financial liabilities on the date it becomes party to the contractual agreement
(trade date) and recognises changes in fair value of the financial assets or financial liabilities from this date.
Investments are derecognised when the right to receive cash flows from the investments has expired or the Company has
transferred substantially all risks and rewards of ownership.
ii) Classification and measurement
The Company’s investments are categorised as follows:
Financial instruments held at fair value through profit or loss (short-term equity investments)
Financial assets and liabilities held at fair value through profit or loss are measured initially at fair value excluding any transaction
costs that are directly attributable to the acquisition or issue of the financial asset or financial liability. Transaction costs on
financial assets and financial liabilities at fair value through profit or loss are expensed immediately. Subsequent to initial
recognition, all instruments held at fair value through profit or loss are measured at fair value with changes in their fair value
recognised in the Statement of Profit or Loss and Other Comprehensive Income.
Derivative financial instruments such as options are included under this classification. The Company designates any derivatives
as cash flow hedges in a hedging relationship.
Financial instruments designated at fair value through other comprehensive income (long-term equity investments)
Long-term equity investments are recognised initially at cost and the Company has irrevocably elected to present subsequent
changes in the fair value of the investments in the Statement of Other Comprehensive Income.
Long term equity investments comprise holdings in marketable equity securities which are intended to be held for the long term.
iii) Fair value
The Company determines the fair value of listed investments at the last quoted price. The fair value of investments that are not
traded in an active market are determined using valuation techniques. These include the use of arm’s length market transactions,
reference to the current fair value of a substantially similar other instrument, discounted cash flow techniques, option pricing
models or any other valuation techniques that provide a reliable estimate of prices obtained in actual market transactions.
25
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021
Notes to the Financial Statements
1. GENERAL INFORMATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(c) Investments (Continued)
iv)
Impairment of financial assets
The Company assesses whether the credit risk on a financial asset has increased significantly based on the change in the risk of
default since initial recognition. In making this assessment, the Company considers both quantitative and qualitative information
that is reasonable and supportable, including historical experience and forward-looking information to determine the expected
credit losses. Such information includes:
- contractual payments are more than 30 days past due, unless the Company has reasonable and supportable information that
indicates otherwise;
The Company considers the following to represent default events for the purpose of measuring expected credit losses:
- contractual payments are more than 30 days past due, unless the Company has reasonable and supportable information that
indicates a more lagging default criterion is more appropriate;
The foregoing indicators of default have been selected based on the Company’s historical experience.
(d) Foreign currency translation
(i)
Functional and presentation currency
Items included in the Company’s financial statements are measured using the currency of the primary economic environment in
which it operates (the ‘functional currency’). This is the Australian dollar, which reflects the currency of the economy in which the
Company competes for funds and is regulated. The Australian dollar is also the Company’s presentation currency.
(ii) Transactions and balances
Transactions during the period denominated in foreign currency have been translated at the exchange rate prevailing at the
transaction date. Overseas investments and currency, together with any accrued income, are translated at the exchange rate
prevailing at the balance date. Foreign exchange gains and losses resulting from the settlement of such transactions, and
from the translation at balance date exchange rates of monetary assets and liabilities denominated in foreign currencies, are
recognised in other comprehensive income. Net exchange gains and losses arising on the revaluation of long-term equity
investments are included in gains presented in the Statement of Profit or Loss and Other Comprehensive Income.
(e) Income tax
The charge for current income tax expense is based on the taxable income for the period. It is calculated using the tax rates that have
been enacted or substantively enacted at the end of the reporting period.
Deferred tax is accounted for using the liability method in respect of temporary differences arising between the tax bases of assets and
liabilities and their carrying amounts in the financial statements. No deferred income tax will be recognised from the initial recognition
of an asset or liability, excluding a business combination, where there is no effect on accounting or taxable profit or loss.
Deferred tax is calculated at the tax rates that are expected to apply to the period when the asset is realised or liability is settled.
Current and deferred taxes are recognised in profit or loss except where they relate to items that may be recognised directly in equity,
such as unrealised gains and losses on long-term equity, in which case they are adjusted directly against equity.
Deferred income tax assets are recognised to the extent that it is probable that future tax profits will be available against which
deductible temporary differences can be utilised.
The amount of benefits brought to account or which may be realised in the future is based on the assumption that no adverse change
will occur in income taxation legislation and the anticipation that the Company will derive sufficient future assessable income to enable
the benefit to be realised and comply with the conditions of deductibility imposed by law.
(f) Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net of the amount of GST, except where the amount of GST incurred is not recoverable
from the Australian Taxation Office (ATO). In these circumstances, the GST is recognised as being part of the cost of acquisition of the
asset or as part of an item of expense. Receivables and payables in the statement of financial position are shown exclusive of GST.
The net amount of GST recoverable from, or payable to, the ATO is included as an asset or liability in the Statement of Financial
Position.
Cash flows are presented in the Statement of Cash Flows on a gross basis, except for the GST component of investing and financing
activities, which are disclosed as operating cash flows.
26
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Notes to the Financial Statements
1. GENERAL INFORMATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(g) Income
Revenue is recognised when it is probable that the economic benefit will flow to the entity and the revenue can be reliably measured.
Revenue is measured at the fair value of the consideration received or receivable.
Dividend income is recognised in profit or loss on the day on which the relevant investment is first quoted on an ‘ex-dividend’ basis.
Interest revenue is recognised as it accrues using the effective interest method, taking into account the effective yield on the financial
asset.
Realised and unrealised gains and losses arising from changes in the fair value of the ‘financial assets at fair value through profit or
loss’ category are included in profit or loss in the period in which they arise. This may also include foreign exchange gains and losses
when applicable.
(h) Cash and cash equivalents
Cash and cash equivalents include cash on hand, deposits held at call with financial institutions, other short-term, highly liquid
investments with original maturities of three months or less that are readily convertible to known amounts of cash and which are
subject to an insignificant risk of changes in value.
Interest revenue is recognised as it accrues, taking into account the effective yield on the financial asset.
(i) Receivables
Receivables may include amounts for dividends, interest and securities sold. Dividends are receivable when they have been declared
and are legally payable. Interest is accrued at the balance date from the time of last payment. Amounts receivable for securities sold
are recorded when a sale has occurred.
Such assets are reviewed at the end of each reporting period to determine whether there is objective evidence of impairment.
Receivables are reviewed at the end of each reporting period to determine the need to raise a loss allowance for expected credit
losses. The entity has applied the simplified approach to measure expected credit losses, which uses a lifetime expected loss
allowance. To measure the expected credit losses, review is undertaken of the nature of the receivables, the counterparty, the days
overdue and the economic environment.
(j) Payables
These amounts represent liabilities for amounts owing by the Company at balance date which are unpaid. The amounts are unsecured
and are usually paid within 30 days of recognition. Amounts payable for securities purchased are recorded when the purchase has
occurred.
(k) Issued capital
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares or options are shown in
equity as a deduction, net of tax, from the proceeds.
(l) Earnings per share
i)
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to equity holders of the Company, excluding any costs of
servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the financial
year, adjusted for bonus elements in ordinary shares issued during the period.
ii) Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
Potential ordinary shares are anti-dilutive when their conversion to ordinary shares would increase earnings per share or
decrease the loss per share from continuing operations. The calculation of diluted earnings per share does not assume
conversion, exercise or other issue of potential ordinary shares that would have an anti-dilutive effect on earnings per share.
(m) Dividends
Provisions for dividends payable are recognised in the reporting period in which they are declared, for the entire undistributed amount,
regardless of the extent to which they will be paid in cash.
27
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Notes to the Financial Statements
1. GENERAL INFORMATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(n) Critical accounting judgements and key sources of estimation uncertainty
In the application of the Company’s accounting policies, the Board of the Company is required to make judgements, estimates and
assumptions about the carrying amounts of some assets and liabilities that are not readily apparent from other sources. The estimates
and associated assumptions are based on historical experience and various other factors that are considered to be relevant, and
reasonable under the circumstance. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are recognised in
the period in which the estimate is revised if the revision affects only that period, or in the period of the revision and future periods if
the revision affects both current and future periods. The methods used in the valuation of investments are set out in Note 1(c) of these
financial statements.
(o) New and amended standards adopted by the Company
There are no new standards, interpretations or amendments to existing standards that are effective for the first time for the financial
year beginning 1 July 2020 that have a material impact on the Company.
(p) New accounting standards and interpretations not yet adopted
A number of new standards, amendments to standards and interpretations are effective for annual periods beginning after 1 July 2021,
and have not been early adopted in preparing these financial statements. None of these are expected to have a material effect on the
financial statements of the Company.
(q) Rounding of amounts to nearest dollar
In accordance with ASIC Corporations (Rounding in Financial / Directors’ Reports) Instrument 2016 / 191, the amounts in the directors’
report and in the financial report have been rounded to the nearest dollar (unless otherwise indicated).
2. FINANCIAL RISK MANAGEMENT
(a) Objectives, strategies, policies and processes
The objective of the Company is to achieve long term growth in capital and income through investments in a concentrated portfolio of
ASX and small to mid capitalisation securities, bonds and cash consistent with the Company’s permitted investments. The Company
is managed from an Australian investor’s perspective with tax and currency exposures forming important considerations in the daily
management of the Company whilst complying with the Company’s Prospectus dated 12 August 2015. Financial risk management is
carried out by the Investment Manager under the guidance of its Chief Investment Officer.
The Company’s activities are exposed to different types of financial risks. These risks include market risk (including foreign currency
risk and other price risk), being the primary risk, and credit risk. The Company may employ derivative financial instruments to hedge
these risk exposures in order to minimise the effects of these risks.
(b) Credit risk
Credit risk is the risk that one party to a financial instrument will cause a financial loss for the other party by failing to discharge an
obligation.
Market prices generally incorporate credit risk assessments into valuations and risk of loss is implicitly provided for in the carrying
value of assets and liabilities as they are marked to market at balance date.
The total credit risk for assets is therefore limited to the amount carried in the Statement of Financial Position.
The Investment Manager is responsible for ensuring there is appropriate diversification across counterparties and that they are
of a sufficient quality rating. The Investment Manager minimises the Company’s concentration of credit risk by undertaking most
transactions in ASX listed securities with a large number of approved brokers. Payment is only made once a broker has received
securities and delivery of securities only occurs once the broker received payment.
Cash
The majority of the Company’s short term deposits are invested with financial institutions that have a Standard and Poor’s credit
rating of AA-. The majority of maturities are within three months. The weighted average interest rate of the Company’s cash and cash
equivalents at 30 June 2021 is 0.27% (2020: 1.26%).
Receivables
The majority of the Company’s receivables arise from interest and dividends yet to be received.
None of these assets exposed to credit risk are overdue or considered to be impaired.
28
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Notes to the Financial Statements
2. FINANCIAL RISK MANAGEMENT (CONTINUED)
(c) Liquidity risk
Liquidity risk is the risk that the Company will encounter difficulty in meeting obligations associated with financial liabilities. This risk is
controlled through the Company’s investment in financial instruments, which under market conditions are readily convertible to cash.
In addition, the Company maintains sufficient cash and cash equivalents to meet normal operating requirements.
Maturity analysis for financial liabilities
The table in the succeeding page analyses the Company’s non-derivative financial liabilities into relevant maturity groupings based
on the remaining period at reporting date to the contractual maturity date. The amounts in the table are the contractual undiscounted
cash flows.
As at 30 June 2021
Trade and other payables
Due to brokers - payable for securities purchased
Total financial liabilities
As at 30 June 2020
Trade and other payables
Due to brokers - payable for securities purchased
Total financial liabilities
(d) Market risk
Less than 1
month
$
7,187,367
2,000,000
9,187,367
1,525,208
158,045
1,683,253
1-6 months
6-12 months Over 12 months
$
-
-
–
-
-
-
$
-
-
–
-
-
-
$
-
-
-
-
-
-
Total
$
7,187,367
2,000,000
9,187,367
1,525,208
158,045
1,683,253
Market risk represents the risk that the fair value or future cash flows of a financial instrument will fluctuate because of changes in
market prices.
By its nature, as a listed investment company that invests in tradeable securities, the Company will always be subject to market risk as
it invests its capital in securities which are not risk free. The market prices of these securities can and do fluctuate in accordance with
multiple factors.
The Company seeks to reduce market risk by investing in equity securities where there is a significant ‘margin of safety’ between the
underlying companies’ value and share price. The Company has set parameters as to a minimum margin of safety in addition to having
set parameters regarding a maximum amount of the Portfolio that can be invested in a single company or sector as prescribed in the
Prospectus.
(i) Interest rate risk
The Company’s interest bearing financial assets expose it to risks associated with the effects of fluctuations in the prevailing levels of
market interest rates on its financial position and cash flows, the risk is measured using sensitivity analysis on page 31.
Interest rate risk is actively managed by the Investment Manager. The majority of the Company’s interest bearing assets are held
with reputable banks to ensure the Company obtains competitive rates of return while providing sufficient liquidity to meet cash flow
requirements.
29
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Notes to the Financial Statements
2. FINANCIAL RISK MANAGEMENT (CONTINUED)
(d) Market risk (Continued)
The table below summarises the Company’s exposure to interest rate risk. It includes the Company’s assets and liabilities at fair values,
categorised by the earlier of contractual repricing or maturity date.
Non interest
bearing
Fixed interest
rate
Weighted
average effective
interest rate
%
0.27
Floating
interest rate
$
19,263,113
-
-
-
-
-
$
1,578,556
35,472
3,515
109,656,098
9,041,727
500,000
19,263,113
120,815,368
-
-
9,187,367
9,187,367
1.26
17,415,941
-
-
-
17,415,941
17,878
223,281
70,412,717
9,859,225
80,513,101
-
-
1,683,253
1,683,253
Total
$
20,841,669
35,472
3,515
109,656,098
9,041,727
500,000
140,078,481
9,187,367
9,187,367
17,433,819
223,281
70,412,717
9,859,225
97,929,042
1,683,253
1,683,253
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
As at 30 June 2021
Financial assets
Cash and cash equivalents
Trade and other receivables
Derivative assets
Options
Long-term equity investments:
Listed equities
Unlisted equities
Convertible notes
Total financial assets
Financial liabilities
Trade and other payables
Total financial liabilities
As at 30 June 2020
Financial assets
Cash and cash equivalents
Trade and other receivables
Long-term equity investments:
Listed equities
Unlisted equities
Total financial assets
Financial liabilities
Trade and other payables
Total financial liabilities
(ii) Other price risk
Other price risk is the risk that fair value of equities decreases as a result of changes in market prices, whether those changes are
caused by factors specific to the individual stock or factors affecting the broader market. Other price risk exposure arises from
the Company’s investment Portfolio.
(iii) Foreign currency risk
Foreign currency risk is the risk that the value of a financial commitment, recognised asset or liability will fluctuate due to
changes in foreign currency rates.
The Company holds assets denominated in currencies other than the Australian dollar (being the functional currency) and
is therefore exposed to foreign currency risk when the value of assets denominated in other currencies fluctuates due to
movements in exchange rates.
The Company may enter into foreign exchange forward contracts both to hedge the foreign currency risk implicit in the value of
Portfolio securities denominated in foreign currency and to secure a particular exchange rate for a planned purchase or sale of
securities.
30
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Notes to the Financial Statements
2. FINANCIAL RISK MANAGEMENT (CONTINUED)
(iv) Sensitivity analysis
The following tables show the sensitivity of the Company’s operating profit / other comprehensive income and equity to price
risk, interest rate risk and foreign currency risk. The reasonably possible movements in the risk variables have been determined
based on the Investment Manager’s best estimate, having regard to a number of factors, including historical levels of changes in
interest rates, historical correlation of the Company’s investments with the relevant benchmark and market volatility. However,
actual movements in the risk variables may be greater or less than anticipated due to a number of factors, including unusually
large market shocks resulting from changes in the performance of the securities in which the Company invests. As a result,
historic variations in risk variables are not a definitive indicator of future variations in the risk variables.
Price risk impact on other
comprehensive income
Interest rate risk impact on other compre-
hensive income
Foreign currency risk impact on other
comprehensive income
30 June 2021
-10%
(11,919,782)
+10%
11,919,782
-100 bps
-
+100 bps
-
-10%
(904,173)
+10%
904,173
Price risk impact on other
comprehensive income
Interest rate risk impact on other compre-
hensive income
Foreign currency risk impact on other
comprehensive income
30 June 2020
-10%
(8,027,194)
+10%
8,027,194
-100 bps
-
+100 bps
-
-10%
(985,923)
+10%
985,923
Price risk impact on impact on operating
profit / (loss)
Interest rate risk impact on
operating profit / (loss)
Foreign currency risk impact on operating
profit / (loss)
30 June 2021
-10%
(352)
+10%
352
-100 bps
(185)
+100 bps
185
-10%
-
+10%
-
Price risk impact impact on
operating profit / (loss)
Interest rate risk impact on
operating profit / (loss)
Foreign currency risk impact on operating
profit / (loss)
30 June 2020
-10%
-
+10%
-
-100 bps
(1,742)
+100 bps
1,742
-10%
-
+10%
-
3. FAIR VALUE MEASUREMENT
The Company measures and recognises the following assets and liabilities at fair value on a recurring basis:
- Long-term equity investments
- Derivative financial instruments
Fair value hierarchy
AASB 13: Fair value measurement requires disclosure of fair value measurements by level of the fair value hierarchy:
Level 1 - measurements based on quoted prices (unadjusted) in active markets for identical assets or liabilities;
Level 2 - measurements based on inputs other than quoted prices included in level 1 that are observable for the asset or liability; and
Level 3 - measurements based on unobservable inputs from the asset or liability.
31
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Notes to the Financial Statements
3. FAIR VALUE MEASUREMENT (CONTINUED)
(a) Recognised fair value measurements
The following table presents the Company’s assets measured and recognised at fair value as at 30 June 2021 and 30 June 2020.
As at 30 June 2021
Financial assets
Derivative assets
Options
Long-term equity investments
Listed equities
Unlisted equities
Convertible notes
Total financial assets
As at 30 June 2020
Financial Assets
Long-term equity investments
Listed equities
Unlisted equities
Total financial assets
(b) Transfer between levels
Level 1
$
3,515
109,656,098
-
-
109,659,613
70,412,717
-
70,412,717
Level 2
$
-
-
-
-
-
-
-
-
Level 3
$
-
-
9,041,727
500,000
9,541,727
Total
$
3,515
109,656,098
9,041,727
500,000
119,201,340
-
9,859,225
9,859,225
70,412,717
9,859,225
80,271,942
The Investment Manager’s policy is to recognise transfers into and transfers out of fair value hierarchy levels as at the end of the
reporting period.
There were no transfers between levels in the fair value hierarchy at the end of the reporting period.
(c) Fair value measurements using significant unobservable inputs (level 3)
The following table presents the movement in level 3 instruments for the year ended 30 June 2021 by class of financial instrument.
Opening balance – 1 July 2019
Transfer into / (out) from level 3
Purchases
Sales
Unrealised gains recognised in the Statement of Profit or
Loss and Other Comprehensive Income
Closing balance – 30 June 2020
Transfer into / (out) from level 3
Purchases
Sales
Unrealised gains recognised in the Statement of Profit or
Loss and Other Comprehensive Income
Closing balance – 30 June 2021
Convertible notes
Unlisted equities
$
-
-
-
-
-
-
-
500,000
-
-
500,000
$
9,621,292
-
-
-
237,933
9,859,225
-
-
-
(817,498)
9,041,727
Total
$
9,621,292
-
-
-
237,933
9,859,225
-
500,000
-
(817,498)
9,541,727
32
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021
Notes to the Financial Statements
3. FAIR VALUE MEASUREMENT (CONTINUED)
(i) Valuation inputs and relationships to fair value
The following table summarises the quantitative information about the significant unobservable inputs used in the level 3 fair
value measurements
Description
As at 30 June 2021
Updater Inc.
Vitrafy Life Sciences Pty Ltd
As at 30 June 2020
Updater Inc.
Fair value $
Unobservable inputs
9,041,727
500,000
Last trade price
Last trade price
9,859,225
Last trade price
Range of inputs
(probability weighted
inputs)
Relationship of
unobservable
inputs to fair value
N/A
N/A
N/A
N/A
N/A
N/A
Updater Inc. (Updater) an unlisted Delaware incorporated company is carried at a value of $24.875 per Common Stock. This is the
equivalent value of $0.995 per Chess Depositary Interest (CDI) which was the last traded ASX price (8 October 2018) for Updater CDIs
prior to the delisting and stock consolidation at a ratio of 25:1 (CDI to Common Stock). This value compares to the last transacted price of
$1.25 per CDI ($31.25 Common Stock equivalent) relating to the Updater buyback which was completed on 16 October 2018. The absence
of actual market transactions of Updater Inc. since it was last traded in October 2018 has required the fair value be determined using an
income approach converting future cash flows and expenses to a single current amount (i.e. a Discounted Cash Flow). The Company
notes that CDIs and CDI pricing are no longer relevant and as such all future references to Updater will be to its Common Stock.
(ii) Valuation processes
Portfolio reviews are undertaken regularly by the Investment Manager to identify securities that potentially may not be actively
traded or have stale security pricing. This process identifies securities which possibly could be regarded as being level 3
securities. Further analysis, should it be required, is undertaken to determine the accounting significance of the identification.
Changes in allocation to or from level 3 are analysed at the end of each reporting period.
(d) Description of significant unobservable inputs to valuation
The significant unobservable inputs used in the fair value measurements categorised within level 3 of the fair value hierarchy, together
with a quantitative sensitivity analysis as at 30 June 2021 are shown below:
Description
Ordinary shares at fair
value through other
comprehensive income
Unobservable inputs
5-Year Compounding
Annual Revenue Growth
Value
38.55%
Discount rate
13.73%
Terminal growth rate
2.00%
Sensitivity
5.00% increase would increase fair
value by $4,067,199 and a 5.00%
decrease would decrease fair value by
$4,034,526
1.00% increase would decrease
fair value by $1,168,788 and a 1.00%
decrease would increase fair value by
$1,401,845
1.00% increase would increase
fair value by $925,683 and a 1.00%
decrease would decrease fair value by
$780,268
(e) Fair value of financial instruments not carried at fair value
The carrying value of trade receivables and trade payables approximate their fair value because of the short-term nature of the
instruments and low credit risk.
33
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Notes to the Financial Statements
4. TAXATION
(a) Numerical reconciliation of income tax benefit
Prima facie tax (benefit) / payable on (loss) / profit before income tax at 30% (2020: 30%)
(2,146,419)
117,899
Adjusted for tax effect of amounts which are not deductible (taxable) in calculating
taxable income:
30 June 2021
30 June 2020
$
$
Imputation gross up on dividends received
Franking credits on dividends received
Prior year under provision
Tax effect on income tax rate uplift to 30%
ATO cash boost (non-assessable)
203,054
(676,846)
-
-
(1,501)
220,952
(736,508)
42,527
(4,193)
-
Income tax benefit
(2,621,712)
(359,323)
Applicable weighted average effective tax rate
(37%)
91%
The income tax benefit results in a:
Current tax asset
Current tax liability
Deferred tax liability
Deferred tax asset
Income tax benefit
(b) Amounts recognised directly in equity
Aggregate deferred tax arising in the reporting period and not recognised in profit or loss or
other comprehensive income but debited or credited directly to equity.
Transition costs on equity issue
Unrealised gains on long term equity investments
Realised gains on long term equity investments
Net deferred tax - debited directly to equity
(c) Movement in current tax liability
Opening balance
Income tax refund / (payment)
(Credited) / charged to profit or loss to
to profit or loss
directly to equity
Closing balance
34
(2,564,228)
58,199
-
(115,683)
(2,621,712)
(717)
(8,987,161)
(6,790,292)
(15,778,170)
5,375,334
(7,311,383)
(2,564,228)
6,790,292
2,290,015
(902,405)
(59,253)
496,476
105,859
(359,323)
(27)
(3,885,173)
(3,127,026)
(7,012,226)
3,150,713
-
(902,405)
3,127,026
5,375,334
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Notes to the Financial Statements
4. TAXATION (CONTINUED)
(d) Net deferred tax liabilities
Deferred tax liabilities
Deferred income tax comprises the estimated tax payable at the current income tax rate of
30% (2020: 30%) on the following items:
Tax on unrealised gains on investment portfolio
Accrued interest
Dividend receivable
Movements:
Opening balance
Charged / (credited):
to profit or loss
directly to equity
Closing balance
Net deferred tax assets
Deferred tax assets comprises the estimated tax deductible at the current income tax rate of
30% (2020: 30%) on the following items:
Transition costs on equity issue
Reduction in transition costs on equity issue
Tax losses
Net deferred tax assets
Movements:
Opening balance
Charged / (credited):
to profit or loss
directly to equity
Closing balance
35
As at 30 June 2021
As at 30 June 2020
$
$
8,988,215
-
-
3,885,173
-
59,253
8,988,215
3,944,426
3,944,426
3,592,031
(58,199)
5,101,988
8,988,215
59,253
293,142
3,944,426
113,949
(111,906)
-
2,043
2,760
-
(717)
2,043
113,949
(111,189)
-
2,760
499,263
(496,476)
(27)
2,760
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Notes to the Financial Statements
5. EARNINGS PER SHARE
Basic (losses) / earnings per share
Diluted (losses) / earnings per share
(Losses) / earnings used in calculating basic earnings per share
(Losses) / earnings used in calculating diluted earnings per share
30 June 2021
30 June 2020
$
(7.24) cents
(7.24) cents
(4,533,017)
(4,533,017)
$
1.27 cents
1.27 cents
752,318
752,318
Weighted average number of ordinary shares used in the calculation of diluted earnings per share
62,610,475
59,067,077
Weighted average number of shares used in the calculation of diluted earnings per share
62,610,475
59,067,077
The weighted average number of shares used as a denominator in calculating basic and diluted earnings per share is based on the weighted
average number of shares 1 July 2020 to 30 June 2021.
6. RECEIVABLES
Dividend receivable
GST receivable
As at 30 June 2021
As at 30 June 2020
$
-
35,472
35,472
$
197,510
25,771
223,281
Terms and conditions
GST receivable can be recovered from the Australian Tax Office. No interest is applicable to any of these amounts. The maximum credit risk
exposure in relation to receivables is the carrying amount.
36
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Notes to the Financial Statements
7. INVESTMENTS
Financial assets designated at fair value through profit or loss
Options
Total financial assets designated at fair value through profit or loss
Financial assets designated at fair value through other comprehensive income
Listed equities
Unlisted equities
Convertible notes
Total financial assets designated at fair value through other comprehensive income
Total financial assets
30 June 2021
June 2020
$
3,515
3,515
109,656,098
9,041,727
500,000
119,197,825
119,201,340
$
-
-
70,412,717
9,859,225
-
80,271,942
80,271,942
The total dividends received on investments sold which are included in the Statement of Profit or Loss and Other Comprehensive Income were:
Dividend income comprises:
Listed equity securities held at year-end*
Listed equity securities sold during the year*
*Dividend income amounts are disclosed gross of franking credits.
30 June 2021
30 June 2020
$
$
2,354,845
-
1,576,000
1,641,379
During the year, the total fair value of investments sold in the normal course of the business and to preserve capital were:
30 June 2021
30 June 2020
$
$
49,725,805
57,611,200
15,844,016
7,296,394
Fair value at disposal date
Listed equity securities
Gain on disposal after tax
Listed equity securities
37
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Notes to the Financial Statements
8. DERIVATIVE FINANCIAL INSTRUMENTS
In the normal course of business the Company enters into transactions in various derivative financial instruments which have certain risks.
A derivative is a financial instrument or other contract which is settled at a future date and whose value changes in response to the change
in a specified interest rate, financial instrument price, commodity price, foreign exchange rate, index of prices or rates, credit rating or
credit index or other variable.
Derivative financial instruments require no initial net investment or an initial net investment that is smaller than would be required for other
types of contracts that would be expected to have a similar response to changes in market factors.
Derivative transactions include a wide assortment of instruments, such as forwards, futures and options. Derivatives are considered to
be part of the investment process. The use of derivatives is an essential part of the Company’s Portfolio management. Derivatives are not
managed in isolation. Consequently, the use of derivatives is multifaceted and includes:
- hedging to protect an asset or liability of the Company against a fluctuation in market values or to reduce volatility;
- a substitution for trading of physical securities; and
- adjusting asset exposures within the parameters set in the investment strategy, and adjusting the duration of fixed interest portfolios or
the weighted average maturity of cash portfolios.
The Company holds the following derivative instrument:
Options
An option is a contractual arrangement under which the seller (writer) grants the purchaser (holder) the right, but not the obligation, either
to buy (a call option) or sell (a put option) at or by a set date or during a set period, a specific amount of securities or a financial instrument
at a predetermined price. The seller receives a premium from the purchaser in consideration for the assumption of future securities price
risk. Options held by the Company are exchange-traded. The Portfolio is exposed to credit risk on purchased options to the extent of their
carrying amount, which is their fair value. Options are settled on a gross basis.
The Company’s derivative financial instruments at 30 June 2021 are detailed below.
Options
Contract / notional
Fair Values
As at June 2021
Values
$
263,652
263,652
Assets
$
3,515
3,515
(Liabilities)
$
-
-
The Company did not hold derivative financial instruments at 30 June 2020.
9. PAYABLES
Management fees payable
Performance fees payable
Directors fees payable
Other payable
Due to brokers - payable for securities purchased
As at 30 June 2021
As at 30 June 2020
$
145,407
7,040,139
1,821
-
2,000,000
9,187,367
$
102,679
1,416,708
1,821
4,000
158,045
1,683,253
38
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Notes to the Financial Statements
10. ISSUED CAPITAL
Ordinary shares
Ordinary shares entitle the holder to participate in dividends and the proceeds on winding up of the Company in proportion to the number
of and amounts paid on the shares held. On a show of hands every holder of ordinary shares present at a meeting in person or by proxy,
is entitled to one vote, and upon a poll each share is entitled to one vote.
Capital risk management
The Company’s policy is to maintain a strong capital base so as to maintain investor and market confidence. The overall strategy
remains unchanged. To achieve this, the Board of Directors monitors the monthly NTA results, investment performance and share price
movements. The Board is focused on maximising returns to shareholders with capital management a key objective of the Company.
The Company is not subject to any externally imposed capital requirements.
Options
No options were issued during the year (2020: nil). At balance date the Company has 17,864,726 (2020: 26,732,673) Secondary Options
on issue exercisable on or before 10 December 2021 for an exercise price of $1.50.
(a) Movements in ordinary share capital
Opening balance
Share buy-back
Transaction costs on shares acquired under buy-back
Income tax on transaction costs
Shares issued upon the exercise of options
Closing balance
(b) Options issued
Opening balance
Options exercised during the year
Closing balance
30 June 2021
30 June 2020
Units
$
Units
$
58,756,723
64,222,935
-
-
-
-
-
-
8,867,947
67,624,670
13,301,920
77,524,855
59,396,321
(639,598)
-
-
-
65,050,053
(825,366)
(1,725)
(27)
-
58,756,723
64,222,935
26,732,673
(8,867,947)
17,864,726
-
-
-
26,732,673
-
26,732,673
-
-
-
39
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Notes to the Financial Statements
11. RESERVES AND RETAINED PROFITS
(a) Accumulated losses
Balance at the beginning of the year
Net (loss) / profit attributable to members of the Company
Transfer to profit reserve
Balance at 30 June
(b) Profits reserve
30 June 2021
30 June 2020
$
$
(5,221,011)
(4,533,017)
-
(9,754,028)
(2,876,206)
752,318
(3,097,123)
(5,221,011)
The reserve is made up of amounts transferred from current and retained earnings that are preserved for future dividend payments.
Balance at the beginning of the year
Dividends paid
Transfer from retained earnings
Balance at 30 June
(c) Capital profits reserve
The reserve records gains or losses arising from disposal of long-term equity investments.
Balance at the beginning of the year
Realised profit on sale of investments, net of tax
Dividends paid
Balance at 30 June
(d) Asset revaluation reserve
The reserve records revaluations of long-term equity investments.
1,916,989
(1,811,527)
-
105,462
-
(1,180,134)
3,097,123
1,916,989
16,944,472
15,844,015
(2,019,890)
30,768,597
11,424,280
7,296,394
(1,776,202)
16,944,472
Balance at the beginning of the year
Movement in fair value of long-term equity investments, net of tax
Realised profit on sale of investments, net of tax transferred to capital profits reserve
Balance at 30 June
9,065,404
27,748,652
(15,844,015)
20,970,041
9,436,557
6,925,241
(7,296,394)
9,065,404
40
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Notes to the Financial Statements
12. AUDITOR’S REMUNERATION
During the year the following fees were paid or payable for services provided by the auditor of the Company, its related practices and
non-related audit firms:
30 June 2021
30 June 2020
Pitcher Partners
Audit and other assurance services
Audit and review of financial statements
Total remuneration for audit and other assurance services
Taxation services
Taxation services
Total remuneration of Pitcher Partners
Grant Thornton
Audit and other assurance services
Audit and review of financial statements
Total remuneration for audit and other assurance services
Taxation services
Taxation services
Total remuneration of Grant Thornton
$
-
-
-
-
50,000
50,000
5,000
55,000
$
65,587
65,587
14,405
79,992
-
-
-
-
The Company’s Audit and Risk Committee oversees the relationship with the Company’s external auditors. The Audit and Risk Committee
reviews the scope of the audit and the proposed fee. It also reviews the cost and scope of other audit-related tax compliance services provided
by the audit firm, to ensure that they do not compromise independence.
13. CASH FLOW INFORMATION
(a) Reconciliation of cash
For the purposes of the statement of financial position and statement of cash flows, cash and
cash equivalents comprise:
Cash at bank
Total cash and cash equivalents
(b) Reconciliation of net (loss) / profit attributable to members of the
Company to net cash (outflow) / inflow from operating activities
(Loss) / profit attributable to members of the Company
Net gain on financial instruments at fair value through profit or loss
Income tax benefit
Net change in receivables
Net change in payables
Net cash (used in) / provided by operating activities
41
As at 30 June 2021
As at 30 June 2020
$
$
20,841,669
20,841,669
17,433,819
17,433,819
As at 30 June 2021
As at 30 June 2020
$
$
(7,154,729)
(3,515)
(7,311,381)
187,809
5,662,159
(8,619,657)
392,995
(820,525)
-
(153,437)
1,425,265
844,298
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Notes to the Financial Statements
14. RELATED PARTY TRANSACTIONS
All transactions with related entities were made on normal commercial terms and conditions no more favourable than transactions with
other parties unless otherwise stated.
(a) Management and performance fees
The Company has outsourced its investment management function to Ryder Investment Management Pty Ltd (the ‘Investment
Manager’), a company controlled by Peter Constable and David Bottomley. The Investment Manager is privately owned and was
incorporated in July 2008.
(i)
Management fee
The Investment Manager is entitled to be paid a management fee equal to 1.25% p.a. (plus GST) of the Portfolio Net Asset Value.
The management fee is paid monthly in arrears.
(ii)
Performance fee
The Investment Manager is entitled to receive a performance fee of 20% (plus GST) of the outperformance of the Portfolio above
the Benchmark. The Benchmark is the RBA Cash Rate plus 4.25%. The performance fee is accrued monthly but is not paid until
the end of each 12 month period ending on 30 June (Performance Calculation Period).
Management and performance fees during the year and payable to the Investment Manager at year end were as follows:
Management fees during the year
Performance fees during the year
Management fees payable at year end
Performance fees payable at year end
30 June 2021
30 June 2020
$
1,665,056
7,040,139
145,407
7,040,139
$
1,313,629
1,416,708
102,679
1,416,708
(b) Remuneration of directors and other key management personnel
In accordance with Section 300A of the Corporations Act 2001 (Cth), all detailed information regarding the remuneration of directors
and other key management personnel has been included in the remuneration report in the director’s report of this Annual Report.
A summary of the remuneration of directors and other key management personnel for the year is set out below:
30 June 2021
30 June 2020
$
36,530
36,530
3,470
3,470
$
36,530
36,530
3,470
3,470
40,000
40,000
Cash salary, fees and commissions
Short-term employee benefits
Superannuation
Post-employment benefits
Total employment benefits
42
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Notes to the Financial Statements
14. RELATED PARTY TRANSACTIONS (CONTINUED)
(c) Shareholdings
2021
Ordinary Shares
Peter Constable¹
David Bottomley¹
Ray Kellerman
2020
Ordinary shares
Peter Constable¹
David Bottomley¹
Ray Kellerman
Opening balance
Acquisitions /
options exercised
Shares acquired
/ (disposed)
Balance
at 30 June 2021
8,675,000
3,048,000
1,020,000
12,743,000
2,154,500
475,000
510,000
3,139,500
(10,000)
12,000
-
2,000
10,819,500
3,535,000
1,530,000
15,884,500
Opening balance
Acquisitions /
options exercised
Shares acquired
/ (disposed)
Balance
at 30 June 2020
8,441,000
3,023,000
1,020,000
12,484,000
-
-
-
-
234,000
25,000
-
8,675,000
3,048,000
1,020,000
259,000
12,743,000
1. Director and shareholder (>20%) of Ryder Investment Management Pty Ltd which has power to control the voting rights as a discretionary investment manager. As at the date of incorporation one share
in the Company was held by Ryder Investment Management Pty Ltd, a company controlled by Peter Constable and David Bottomley.
(d) Options to acquire shares
2021
Options (RYDOA)
Peter Constable
David Bottomley
Ray Kellerman
2020
Options (RYDOA)
Peter Constable
David Bottomley
Ray Kellerman
All shares and options acquired on the same basis as all shareholders.
Opening balance
Options exercised
Balance
at 30 June 2021
3,462,500
1,025,000
510,000
4,997,500
(2,159,500)
(475,000)
(510,000)
1,303,000
550,000
-
(3,144,500)
1,853,000
Opening balance
Options exercised
Balance
at 30 June 2020
3,462,500
1,025,000
510,000
4,997,500
-
-
-
-
3,462,500
1,025,000
510,000
4,997,500
43
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Notes to the Financial Statements
15. CONTINGENT LIABILITIES AND COMMITMENTS
As at 30 June 2021 and 30 June 2020, the Company had no contingent liabilities or commitments.
16. DIVIDENDS
On 14 August 2020, the Directors declared a fully franked dividend of 3.00 cents per share paid on 9 September 2020 on ordinary shares
held as at record date 20 August 2020 (ex-dividend date of 19 August 2020).
On 19 February 2021, the Directors declared a fully franked dividend of 3.00 cents per share paid on 13 April 2021 on ordinary shares held
as at record date 25 March 2021 (ex-dividend date 24 March 2021).
Subsequent to balance date, on 13 August 2021, the Directors declared a fully franked dividend of 4.00 cents per share paid on 8 October
2021 on ordinary shares held as at record date 23 September 2021 (ex-dividend date of 22 September 2021).
Dividend franking account
Opening balance of franking account
Franking credits on dividends received
Franking credits on dividends paid
Tax payment made
Closing balance of franking account
30 June 2021
30 June 2020
$
$
73,136
676,846
(1,642,036)
7,311,383
6,419,329
457,997
736,508
(1,121,369)
-
73,136
Franking credits on tax payable in respect of the current period’s profits
2,290,015
5,375,334
Adjusted franking account balance
8,709,344
5,448,470
The impact on the dividend franking account of the dividends proposed after balance sheet date but not recognised as a liability is to
decrease it by $1,159,280 (2020: $755,444).
The Company’s ability to pay franked dividends is dependent upon the receipt of franked dividends from investments and the payment of
tax.
17. SEGMENT INFORMATION
The Company has only one reportable segment and one industry. It operates predominantly in Australia and in the securities industry.
It earns revenue from dividend income, interest income and other returns from the investment Portfolio. The Company invests in different
types of securities, as detailed in Note 7 Investments and Note 3 Fair Value Measurement.
18. EVENTS SUBSEQUENT TO REPORTING DATE
Except in relation to the dividend declared subsequent to balance date and referred to in the dividends note above, no matters or
circumstances have arisen since the end of the period which significantly affected, or may significantly affect, the operations of the
Company, the results of those operations or the state of affairs of the Company in future financial years.
44
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021
Directors’ Declaration
The Directors declare that:
(a) In the Directors’ opinion, the attached financial statements and notes thereto are in accordance with the Corporations Act 2001 (Cth),
including compliance with Accounting Standards, and giving a true and fair view of the financial position as at 30 June 2021 and
performance of the Company, for the year ended 30 June 2021;
(b) In the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable;
(c) In the Directors’ opinion, the attached financial statements are in compliance with International Financial Reporting Standards, as
stated in Note 1(b) of the financial statements;
(d) The Directors have been given the declarations required by S.295A of the Corporations Act 2001 (Cth); and
(e) The remuneration disclosures contained in the Remuneration Report comply with S300A of the Corporations Act 2001 (Cth).
Signed in accordance with a resolution of the Directors made pursuant to S.295(5) of the Corporations Act 2001 (Cth).
On behalf of the Directors
Peter Constable
Chairman
Ryder Capital Limited
Sydney, 13 August 2021
45
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Independent Auditor’s Report to the Members
Level 17, 383 Kent Street
Sydney NSW 2000
Correspondence to:
Level 17, 383 Kent Street
Locked Bag Q800
Sydney NSW 2000
QVB Post Office
Sydney NSW 1230
Correspondence to:
Locked Bag Q800
T +61 2 8297 2400
QVB Post Office
F +61 2 9299 4445
Sydney NSW 1230
E info.nsw@au.gt.com
W www.grantthornton.com.au
T +61 2 8297 2400
F +61 2 9299 4445
E info.nsw@au.gt.com
W www.grantthornton.com.au
Independent Auditor’s Report
To the Members of Ryder Capital Limited
Independent Auditor’s Report
Report on the audit of the financial report
To the Members of Ryder Capital Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Ryder Capital Limited (the Company), which comprises the statement of financial
Opinion
position as at 30 June 2021, the statement of profit or loss and other comprehensive income, statement of changes in
equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of
We have audited the financial report of Ryder Capital Limited (the Company), which comprises the statement of financial
significant accounting policies, and the Directors’ declaration.
position as at 30 June 2021, the statement of profit or loss and other comprehensive income, statement of changes in
equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of
In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001,
significant accounting policies, and the Directors’ declaration.
including:
In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001,
a giving a true and fair view of the Company’s financial position as at 30 June 2021 and of its performance for the year
including:
ended on that date; and
a giving a true and fair view of the Company’s financial position as at 30 June 2021 and of its performance for the year
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
ended on that date; and
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
Basis for opinion
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are
independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are
Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial
independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
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
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
Key audit matters
report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
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. These matters were addressed in the context of our audit of the financial report as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
Grant Thornton Audit Pty Ltd ACN 130 913 594
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
Grant Thornton Australia Limited.
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Liability limited by a scheme approved under Professional Standards Legislation.
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
www.grantthornton.com.au
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46
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Independent Auditor’s Report to the Members
Key audit matter
Existence and valuation of financial instruments – refer to
Note 3: Fair value measurement and Note 7: Investments
The Company carries financial assets designated at fair value
through other comprehensive income at $119,197,825 as at
Independent Auditor’s Report
30 June 2021.
To the Members of Ryder Capital Limited
The majority of investments are non-complex in nature with
their fair value obtained from quoted prices in active markets.
These investments are classified as ‘Level 1’ financial assets
under Australian Accounting Standards.
Report on the audit of the financial report
Level 17, 383 Kent Street
Sydney NSW 2000
Correspondence to:
Locked Bag Q800
QVB Post Office
Sydney NSW 1230
How our audit addressed the key audit matter
Our procedures included, amongst others:
T +61 2 8297 2400
F +61 2 9299 4445
E info.nsw@au.gt.com
W www.grantthornton.com.au
Obtaining and understanding the investment management
process and controls;
Reviewing and evaluating the independent audit report on
internal controls (ASAE 3402 Assurance Reports on
Controls at a Service Organisation) for the period 1 July
2020 to 30 June 2021 for the Custodian;
Obtaining a confirmation of the investment holdings directly
from the Custodian;
Opinion
The Company also carries an investment position of
$9,041,727 in Updater Inc., an unlisted company which is
We have audited the financial report of Ryder Capital Limited (the Company), which comprises the statement of financial
classified as a ‘Level 3’ financial asset under Australian
position as at 30 June 2021, the statement of profit or loss and other comprehensive income, statement of changes in
Accounting Standards. Level 3 financial assets have
equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of
significant unobservable inputs which make their valuation
significant accounting policies, and the Directors’ declaration.
complex.
In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001,
including:
This area is a key audit matter due to the quantum of the
financial assets designated at fair value through other
a giving a true and fair view of the Company’s financial position as at 30 June 2021 and of its performance for the year
comprehensive income and the significant estimation involved
in valuation of Level 3 financial assets.
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
Assessing the Company’s valuation of individual
investment holdings for Level 3 investments where there
was no observable market data, including critical evaluation
of the assumption and inputs applied in Management’s
determination;
Evaluating the accounting treatment of revaluations of
financial assets for appropriate current and deferred tax
accounting effects; and
Assessing the adequacy of financial statement disclosures.
ended on that date; and
Accuracy and completeness of management and
performance fees – refer to Note 9: Payables and Note 14:
Related party transactions
Basis for opinion
The Company has recorded management fees of $1,551,529
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
and performances fees of $7,040,139 during the year ended
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are
30 June 2021. These fees are the most significant operating
and controls for calculating the management and
independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and
expenses for the Company and are charged by a related party
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
performance fees;
– Ryder Investment Management Pty Ltd.
Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
Related party transactions may be entered into under terms or
conditions other than ordinary business considerations
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
available to independent third parties. AASB 124 Related
Party Disclosures contains specific requirements for
transactions entered into with related parties.
Making enquiries with the Investment Manager with respect
to any significant events during the period and associated
adjustments made to the fee calculation, in addition to
reviewing ASX announcements;
Obtaining an understanding and evaluating the processes
Our procedures included, amongst others:
The management fees and performance fees are calculated in
line with the Investment Management Agreement and use
metrics such as the investment portfolio value and other key
inputs.
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. These matters were addressed in the context of our audit of the financial report as a whole, and in
Recalculating the management and performance fees in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
accordance with our understanding of the terms and
conditions in the Investment Management Agreement; and
Verifying the accuracy of key inputs to the calculation, such
as company dividends, tax payments, capital raisings as
well as any other relevant expenses used in the calculation
of management and performance fees;
Key audit matters
This area is a key audit matter due to the quantum of the
management fees and performance fees and the inherent risk
associated with related party transactions.
Assessing the adequacy of financial statement disclosures.
Information other than the financial report and auditor’s report thereon
The Directors are responsible for the other information. The other information comprises the information included in the
Company’s annual report for the year ended 30 June 2021, but does not include the financial report and our auditor’s report
www.grantthornton.com.au
thereon.
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
Our opinion on the financial report does not cover the other information and we do not express any form of assurance
conclusion thereon.
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
47
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Independent Auditor’s Report to the Members
Level 17, 383 Kent Street
Sydney NSW 2000
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Independent Auditor’s Report
Responsibilities of the Directors for the financial report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in
To the Members of Ryder Capital Limited
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors
determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
Report on the audit of the financial report
Correspondence to:
Locked Bag Q800
QVB Post Office
Sydney NSW 1230
T +61 2 8297 2400
F +61 2 9299 4445
E info.nsw@au.gt.com
W www.grantthornton.com.au
In preparing the financial report, the Directors are responsible for assessing the Company’s ability to continue as a going
concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless
Opinion
the Directors either intend to liquidate the Company or to cease operations, or have no realistic alternative but to do so.
We have audited the financial report of Ryder Capital Limited (the Company), which comprises the statement of financial
position as at 30 June 2021, the statement of profit or loss and other comprehensive income, statement of changes in
Auditor’s responsibilities for the audit of the financial report
equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
significant accounting policies, and the Directors’ declaration.
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001,
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing
including:
Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions
a giving a true and fair view of the Company’s financial position as at 30 June 2021 and of its performance for the year
of users taken on the basis of this financial report.
ended on that date; and
A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
Standards Board website at: https://www.auasb.gov.au/auditors_responsibilites/ar2_2020.pdf. This description forms part of
our auditor’s report.
Report on the remuneration report
Basis for opinion
Opinion on the remuneration report
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
We have audited the Remuneration Report included in pages 16 to 18 of the Directors’ report for the year ended 30 June
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are
2021.
independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and
In our opinion, the Remuneration Report of Ryder Capital Limited for the year ended 30 June 2021 complies with section
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
300A of the Corporations Act 2001.
Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance
with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report,
based on our audit conducted in accordance with Australian Auditing Standards.
Key audit matters
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. These matters were addressed in the context of our audit of the financial report as a whole, and in
forming our opinion thereon, and we do not provide a separate opinion on these matters.
Grant Thornton Audit Pty Ltd
Chartered Accountants
G S Layland
Director – Audit & Assurance
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
Sydney, 13 August 2021
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
48
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021 Top 20 Shareholders
The Shareholder information set out below was applicable at 04 August 2021.
Listed below is additional information required by the ASX Listing Rules and not disclosed elsewhere in this report.
A. Distribution of equity securities
Investors
29
74
54
212
95
Shares
11,156
241,739
424,329
8,233,962
58,757,275
67,668,461
%
0.02
0.36
0.63
12.17
86.83
100
Holding Ranges
1 to 1,000
1,001 to 5,000
5,001 to 10,000
10,001 to 100,000
100,001 and Over
Total
B. Equity security holders
Twenty largest equity security holders
Name
CONSVEST PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
BNP PARIBAS NOMS PTY LTD
MR TIMOTHY LINDSAY MCCAUGHEY
MR ROBERT JULIAN CONSTABLE & MRS JANET MARIE CONSTABLE
PETER CHARLES CONSTABLE
DAHO PTY LTD
RK SYDNEY PTY LTD
DOOHAN SUPERANNUATION PTY LTD
CEDAR PARTY PTY LIMITED
GERICHTER SUPER INVESTMENTS PTY LTD
GERICHTER FAMILY INVESTMENTS PTY LTD
LEYRTH PTY LTD
FIR NOMINEES PTY LIMITED
MAYUMI AND ZENTA INVESTMENTS PTY LTD
MR ROBERT JULIAN CONSTABLE & MRS JANET MARIE CONSTABLE
HALE UNION PTY LTD
BS CARTER SUPERANNUATION FUND PTY LTD
CEDAYU PTY LTD
FARIWEST PTY LTD
S LE M SUPERANNUATION PTY LTD
BOND STREET CUSTODIANS LIMITED
Shares
5,550,000
2,801,075
2,400,000
2,298,000
2,200,000
2,000,000
1,500,000
1,500,000
1,500,000
1,240,000
1,181,100
1,110,406
1,100,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
1,000,000
953,668
810,000
800,000
800,000
770,000
750,000
725,336
700,000
670,417
%
8.20
4.14
3.55
3.40
3.25
2.96
2.22
2.22
2.22
1.83
1.75
1.64
1.63
1.48
1.48
1.48
1.48
1.48
1.48
1.48
1.48
1.41
1.20
1.18
1.18
1.14
1.11
1.07
1.03
0.99
MS ANN GUIDERA EMMS & MR TOM RICHARD SCHUTZINGER & MR PETER NORMAN SCHUTZINGER
MR JASON ANDERS SEARLE & MRS SALLY-ANN SEARLE
DHAULAGURI PTY LTD
ALEYA INVESTMENT PTY LTD
BANNABY INVESTMENTS PTY LIMITED
SNOWY GUMS GRASSES PTY LTD
DELLIGHIRAR PTY LTD
LYALL INVESTMENTS PTY LTD
49
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021
C. Substantial shareholders
Peter Charles Constable
David Harold Bottomley
D. Voting rights
Shares
10,819,501
3,535,001
%
16.00%
5.23%
The voting rights attaching to each class of equity security are set out below:
Each share is entitled to one vote when a poll is called, otherwise each member present at a meeting or by proxy has one vote on a show
of hands. Options do not have any voting rights until they vest and are exercised.
E. Stock exchange listing
Quotation has been granted for all of the ordinary shares and options of the Company on all member exchanges of the ASX.
F. Unquoted securities
There are no unquoted securities.
G. Securities subject to voluntary escrow
There are no securities subject to voluntary escrow.
H. Investment transactions
There were 456 investment transactions during the period, total brokerage paid on these transactions was $117,466.48.
50
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021Directors’ Report
Directors
Company Secretary
Registered Office
Contact Details
Share Registry
Auditor
Corporate Directory
Peter Constable (Chairman)
David Bottomley
Ray Kellerman
David Bottomley
Claudia Rososinski
Level 25
88 Phillip Street
Sydney NSW 2000
P: (02) 8211 2791
W: www.rydercapital.com.au
Link Market Services Limited
Level 12, 680 George Street
Sydney NSW 2000
P: 1300 554 474
W: www.linkmarketservices.com.au
Grant Thornton Audit Pty Ltd
Level 17, 383 Kent Street
Sydney NSW 2000
P: (02) 8297 2400
Stock Exchange Listings
Ryder Capital Limited securities are listed on the Australian Stock Exchange under the following
exchange codes:
Shares RYD
Options RYDOA
51
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2021
Level 25, 88 Phillip Street
Sydney NSW 2000
T +61 (2) 8211 2791
E enquiries@rydercapital.com.au
www.rydercapital.com.au