Ryder Capital Limited
Appendix 4E Preliminary Final Report
For the year ended 30 June 2022
Details of Reporting Period
Current:
Previous corresponding:
Year ended 30 June 2022
Year ended 30 June 2021
Results for announcement to the market
Revenue from ordinary activities
Profit from ordinary activities
before capital profits and tax attributable to members
Profit from ordinary activities
after tax attributable to members
Total comprehensive (loss)/income
for the period attributable to members
Details of dividends
2022 Interim dividend (cents per share) - paid on 7 March 2022
2022 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
5,243,854
3,088,050
3,475,914
(21,323,502)
▲
▲
▲
▼
189.72%
143.16%
176.68%
(191.85)%
Cents per
share
3.0
Franked amount
per share
3.0
Tax rate for
franking
30%
4.0
4.0
30%
16 August 2022
19 August 2022
22 August 2022
5 September 2022
30 June 2022
30 June 2021
1.36
1.40
1.94
1.77
* Post exercise of 17,643,593 options in FY22 at $1.50 and 8,867,947 options in FY21 at $1.50; and buyback of 217,634 shares in FY22 and nil in FY21
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 19 October 2022.
Signed on behalf of Ryder Capital Limited
Peter Constable
Chairman
Ryder Capital Limited
Sydney, 16 August 2022
i
Annual report
For the year ended 30 June 2022
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
46
47
50
51
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022 Ryder Capital Limited
Annual Report
For the year ended 30 June 2022
Chairman’s Letter to Shareholders
paid during the year, the share price return was (22.88%) for
FY22 compared to the undiluted pre-tax NTA return of (21.47%)
reflecting a slight widening of the discount to fully diluted NTA from
approximately 4.04% to 4.77% - noting this analysis excludes the
tax benefits of franking credits received.
Despite solid operational and strategic progress together with a
commitment to a public listing when equity markets stabilise, the
value of the unlisted investment in Updater Inc. (Updater) has been
maintained at the same US Dollar 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 FY23 having made a strong start in July with an
increase in NTA of +3.99%. The Portfolio is well positioned to
perform in what is likely to be a challenging and volatile investment
environment. As at 31 July 2022, the Portfolio cash weighting
was 9.54%
Reflecting a strong start to FY23, the prospect of more stable
markets and a large profits reserve, the Board has declared a $0.04
fully franked final dividend bringing the full year FY22 dividend to
$0.07 per share fully franked, equal to FY21.
The Annual General Meeting (AGM) will be held on 19 October
2022 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.
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 prior years I have taken the opportunity to remind Shareholders
what we are setting out to achieve at Ryder, which with the current
market backdrop, volatility and fall in value of the Company’s
Portfolio, has greater significance this year. Our aim is to
provide Shareholders with a concentrated Portfolio of securities
undervalued and underappreciated by the market. We have
little interest in building a Portfolio that tracks commonly used
benchmarks, but instead focus on investing for the longer term in
what we consider to be outstanding and, in some cases, unique
opportunities.
Our investment strategy of running a concentrated Portfolio
of small caps, adhering to a value bias, has been painful for
shareholders in FY22. Despite much of the underperformance
being paper losses generated on a mark to market basis, we
must acknowledge errors were made in stock selection, position
sizing and underestimating downside risk. Despite these errors
and resultant recent underperformance, I expect the bulk of our
Portfolio companies will regain all if not more than what has been
lost over time and can assure Shareholders we have been ruthless
in ensuring that this representation is well founded.
Ryder completed its sixth full financial year since listing in
September 2015. Total comprehensive income after tax decreased
to ($21,323,502) from $23,215,635 in FY21. Gross Portfolio
performance of (20.44%) underperformed the Company’s
performance benchmark resulting in a negative carry forward
performance fee of $7,909,839. Until such time as the Investment
Manager makes up this amount, by outperforming the
Company’s performance benchmark to cumulatively offset this
accrual and that of the future annual hurdle rate, no performance
fees are payable.
The Investment Manager sold several long-term Portfolio
investments on valuation grounds realising net gains of $1,150,405
before the payment of dividends of $3,048,268 which is reflected
in the Company’s capital profits reserve decreasing 6% or
$1,897,863 to $28,870,734. The Company’s profit reserve rose from
$105,462 to $1,145,284 which when added to the Company’s capital
reserve takes total distributable profits to $30,016,018 equivalent
to $0.353 per share on the Company’s expanded capital base.
This increase in total distributable profits is net of $5,606,316 in
dividends paid during the period and excludes ($4,979,780) of net
unrealised losses in the Portfolio as at 30 June 2022. Dividends
paid during the year totalled $0.07 per share fully franked, steady
on FY21 despite a 25.8% increase in the Company’s issued
capital to 85.05m shares. With $0.353 cents per share of available
distributable profits as at 30 June 2022 the Company remains in a
strong position to continue to pay steady to increasing fully franked
dividends over time.
As at 30 June 2022 approximately 87.07% of the Company’s capital
was deployed in equities and 12.93% held in cash.
When reviewing the Company’s investment performance for
FY22 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 loss of (21.47%). 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 decreased from $1.770 to $1.295 during
the year. When taking into account $0.07 in fully franked dividends
2
Investment Manager’s Report
Gross portfolio performance for the year to 30 June 2022 (FY22) was (20.44%), underperforming the Portfolio’s absolute return
performance hurdle of RBA Cash + 4.25%. While our FY22 performance was broadly in line with the most comparable Australian equity
index being the ASX Small Ordinaries over the period, our inability to meaningfully outperform on a relative basis was disappointing. The
Portfolio held an average cash exposure through the year of approximately 14.86%, providing some insulation however, there were several
large unanticipated falls within our core high conviction holdings. It must be acknowledged that there were errors in stock selection,
position sizing and an underestimation of downside risk in what was an internally considered, forecasted and discussed scenario of a
material derating for equities in 2h FY22, in particular the impact on smaller capitalised stocks. With these factors in mind, the Investment
Manager actively considered its risk tolerance within the framework of market timing, crystalising material taxable gains and the
Company’s strategy of holding core positions for the long term. It should be noted that gross Portfolio performance 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 set out in this Annual Report.
While this report is focussed on Portfolio performance, it is important to reinforce that Shareholders should review performance during
the reporting period 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.
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 2022 which take into account the historical pre-tax NTA dilution caused by the exercise of 26.7m RYDO options and 26.5m RYDOA
options, net of capital reductions as a result of the Company’s share buyback.
3 months
(%)
6 months
(%)
1 Year
(%)
3 Years
(% p.a.)
5 Years
(% p.a.)
Since Inception(3)
(%)
Since Inception(3)
(% p.a.)
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%)
-18.11
-18.44
-18.41
-22.97
-23.49
-24.78
-20.44
-21.47
-26.98
9.81
5.66
0.15
14.76
10.29
5.05
1.14
2.20
4.42
4.58
5.04
158.13
99.95
56.63
41.69
-19.58
-25.69
-25.89
1.08
5.25
58.25
1. Adjusted for the dilution of 26.7m RYDO options and 26.5m 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.
15.02
10.77
6.85
5.28
5.49
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 table below.
Ryder Performance
Ryder Capital Portfolio Performance
Ryder Capital Pre-tax Undiluted NTA(1)
Ryder Capital Pre-tax NTA Return(2)
S&P / ASX All Ordinaries Accumulation
S&P / ASX Small Ordinaries Accumulation
RBA Cash Rate
Ryder Capital Hurdle Rate - RBA Cash Rate + 4.25%
1 Year
(%)
-20.44
-21.47
-26.98
-7.44
-19.52
0.18
4.42
3 Years
(% p.a.)
5 Years
(% p.a.)
Since Inception(3)
(% p.a.)
9.81
5.66
0.15
3.81
0.38
0.33
4.58
14.76
10.29
5.05
7.15
5.07
0.79
5.04
15.02
10.77
6.85
8.21
7.56
1.01
5.28
Source: Bloomberg + Apex
1. Adjusted for the dilution of 26.7m RYDO options and 26.5m 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 2022
Investment Manager’s Report (Continued)
The chart below illustrates the performance of a $100,000 investment in Ryder post 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:1)(cid:3)(cid:2)(cid:3)(cid:3)(cid:3)
(cid:6)(cid:5)(cid:4)(cid:3)(cid:2)(cid:3)(cid:3)(cid:3)
(cid:6)(cid:5)(cid:144)(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:129)(cid:1)(cid:3)(cid:2)(cid:3)(cid:3)(cid:3)
(cid:6)(cid:129)(cid:4)(cid:3)(cid:2)(cid:3)(cid:3)(cid:3)
(cid:6)(cid:129)(cid:144)(cid:3)(cid:2)(cid:3)(cid:3)(cid:3)
(cid:6)(cid:129)(cid:5)(cid:3)(cid:2)(cid:3)(cid:3)(cid:3)
(cid:6)(cid:129)(cid:3)(cid:3)(cid:2)(cid:3)(cid:3)(cid:3)
(cid:6)(cid:1)(cid:3)(cid:2)(cid:3)(cid:3)(cid:3)
(cid:5)(cid:3)(cid:127)
(cid:129)(cid:141)(cid:127)
(cid:129)(cid:3)(cid:127)
(cid:129)(cid:3)(cid:127)
(cid:3)(cid:127)
(cid:143)(cid:141)(cid:127)
(cid:143)(cid:129)(cid:3)(cid:127)
(cid:143)(cid:129)(cid:141)(cid:127)
(cid:143)(cid:5)(cid:3)(cid:127)
(cid:13)(cid:17)(cid:157)(cid:143)(cid:129)(cid:141)
(cid:13)(cid:17)(cid:157)(cid:143)(cid:129)(cid:4)
(cid:13)(cid:17)(cid:157)(cid:143)(cid:129)
(cid:13)(cid:17)(cid:157)(cid:143)(cid:129)(cid:1)
(cid:13)(cid:17)(cid:157)(cid:143)(cid:129)
(cid:13)(cid:17)(cid:157)(cid:143)(cid:5)(cid:3)
(cid:13)(cid:17)(cid:157)(cid:143)(cid:5)(cid:129)
€(cid:20)(cid:25)(cid:143)(cid:5)(cid:5)
(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)
PORTFOLIO – 30 June 2022
Name
SRG Global Ltd
Updater Inc
BCI Minerals Ltd
Cash Converters International Ltd
Janison Education Group Ltd
CountPlus Ltd
MacMahon Holdings Ltd
3P Learning Ltd
Capitol Health Ltd
Service Stream Ltd
Austin Engineering Ltd
Imdex Ltd
Aurelia Metals Ltd
4DMedical Ltd
Wide Open Agriculture Ltd
Jupiter Mines Ltd
ETFS Ultra Short NASDAQ 100 Hedge Fund
Duratec Ltd
Urbanise.com Ltd
Lumos Diagnostics Holdings Ltd
Other Equities
Total Equities
Cash, Cash Equivalents and Term Deposits
Total Gross Portfolio Value
4
Ticker
SRG
N/A
BCI
CCV
JAN
CUP
MAH
3PL
CAJ
SSM
ANG
IMD
AMI
4DX
WOA
JMS
SNAS
DUR
UBN
LDX
Total Value
$13,982,925
$9,871,412
$8,150,427
$7,624,500
$6,510,904
$6,006,382
$5,521,292
$5,141,762
$4,898,842
$4,147,899
$3,043,668
$2,814,112
$2,805,000
$2,715,153
$2,188,802
$1,952,123
$1,907,500
$1,744,693
$1,545,926
$1,435,228
$6,801,006
$100,809,555
$14,970,128
$115,779,683
Total %
12.08%
8.53%
7.04%
6.59%
5.62%
5.19%
4.77%
4.44%
4.23%
3.58%
2.63%
2.43%
2.42%
2.35%
1.89%
1.69%
1.65%
1.51%
1.34%
1.24%
5.87%
87.07%
12.93%
100.00%
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022 Investment Manager’s Report (Continued)
The Portfolio at 30 June 2022 held meaningful exposures to the industrials, technology and materials sectors. This larger exposure to
industrials and materials is reflective of the Investment Manager’s value bias with many companies in the industrials sector trading at a
deep discount to their intrinsic value in recent times. While technology is not traditionally seen as a value biased sector, the Portfolio's
technology exposure is primarily made up of our high conviction positions in Updater Inc. and Janison Education Ltd where the Investment
Manager remains confident in their growth prospects and long term value. The Investment Manager continues to remain sector agnostic
whilst adjusting Portfolio composition as a function of our assessment of an individual Portfolio holding’s intrinsic value.
RYD Portfolio Composition 30 June 2022
(cid:7)(cid:14)(cid:30)(cid:27)(cid:28)(cid:5)(cid:17)(cid:25)
(cid:20)(cid:19)
(cid:127)(cid:26)(cid:15)(cid:17)(cid:25)
(cid:21)(cid:19)
(cid:9)(cid:17)(cid:29)(cid:24)(cid:23)
(cid:11)(cid:19)
(cid:129)(cid:17)(cid:23)(cid:22)(cid:26)(cid:15)(cid:16)(cid:23)(cid:25)(cid:17)
(cid:141)(cid:19)
(cid:4)(cid:24)(cid:30)(cid:23)(cid:30)(cid:16)(cid:24)(cid:23)(cid:22)(cid:3)(cid:2)(cid:17)(cid:25)(cid:1)(cid:24)(cid:16)(cid:17)(cid:27)
(cid:11)(cid:21)(cid:19)
(cid:7)(cid:23)(cid:27)(cid:15)
(cid:11)(cid:6)(cid:19)
(cid:9)(cid:23)(cid:26)(cid:17)(cid:25)(cid:24)(cid:23)(cid:22)(cid:27)
(cid:11)(cid:8)(cid:19)
(cid:31)(cid:30)(cid:29)(cid:28)(cid:27)(cid:26)(cid:25)(cid:24)(cid:23)(cid:22)(cid:27)
(cid:21)(cid:20)(cid:19)
(cid:18)(cid:17)(cid:16)(cid:15)(cid:30)(cid:14)(cid:22)(cid:14)(cid:13)(cid:12)
(cid:11)(cid:10)(cid:19)
Portfolio Performance
Gross Portfolio performance for the period of (20.44%) materially underperformed the Company’s absolute return performance hurdle.
The Portfolio’s performance was directly impacted by an aggressive sell off in equities and other asset classes during the second half of
the financial year which whilst somewhat expected, we failed to adequately prepare for by derisking larger exposures that were trading
close to fair value.
The Portfolio’s two largest high conviction positions and one smaller non-core position experienced significant declines during the
period. BCI Minerals Ltd’s (BCI) decrease from $0.545 to $0.265 (51.4%) accounted for 24.1% of the Portfolio’s gross asset decline,
Janison Education Ltd’s (JAN) decrease from $0.89 to $0.435 (51.1%) accounted for 19.4% of the Portfolio’s gross asset decline and Lumos
Diagnostics Ltd (LDX), decreased from an average book cost of $0.645 to $0.14 (78.3%) accounted for 17.1% of the Portfolio's gross asset
decline - collectively these three holdings accounted for 60.5% of the Portfolio’s gross asset decline during the period. We view both
JAN and BCI as mark to market declines with both stocks now trading at or slightly above our average book cost. In the case of LDX, we
view the stock as unlikely to trade at or above our book cost in the near term as the Company must conserve capital while appealing the
decision of the US Food and Drug Administration to not approve the Company’s key diagnostic FebriDX - a rapid, point-of-care diagnostic
test that differentiates bacterial from viral acute respiratory infections which in turn reduces unnecessary prescription of antibiotics.
Despite a negative skew to mark to market losses during the period there were some notable gains, led by our core long term high
conviction holding in SRG Global Ltd and a realised gain in Hastings Technology Metals Ltd, along with our positition in ETFS Ultra Short
NASDAQ 100 Hedge Fund ETF – providing some alpha. Unfortunately these gains were too few and far between and relatively small and
more than offset by the large mark to market losses noted above.
Despite continued strong operational performance and a planned NASDAQ listing being put on hold in March 2022 due to weak equity
market conditions, there was no change to the underlying USD carrying value per share for our investment in Updater Inc.
FY22 Top 3 Contributors and Detractors
†(cid:3)(cid:20)(cid:3)(cid:13)(cid:7)‡(cid:14)(cid:13)(cid:20)(cid:11)(cid:10)(cid:9)
(cid:6)(cid:143) (cid:20)€(cid:13)(cid:10)(cid:15)(cid:14)(cid:20) (cid:144)(cid:7)(cid:15)(cid:10)(cid:20)‚ƒ (cid:127)ƒ„(cid:20)…(cid:27)(cid:27)(cid:20)(cid:141)(cid:16)(cid:9)(cid:129)(cid:16)(cid:20) (cid:5)(cid:17)(cid:9)(cid:20)(cid:6)(cid:143)
(cid:141)(cid:14)(cid:12)(cid:10)(cid:18)(cid:17)(cid:129)(cid:12)(cid:20)(cid:143)(cid:16)(cid:4)(cid:144)(cid:17)(cid:7)(cid:13)(cid:7)(cid:129)(cid:157)(cid:20)(cid:19)(cid:16)(cid:10)(cid:14)(cid:13)(cid:12)(cid:20)(cid:11)(cid:10)(cid:9)
(cid:11)(cid:5)(cid:1)(cid:7)(cid:12)(cid:20)(cid:127)(cid:18)(cid:14)(cid:129)(cid:17)(cid:7)(cid:12)(cid:10)(cid:18)(cid:4)(cid:12)(cid:20)(cid:141)(cid:7)(cid:13)(cid:9)(cid:18)(cid:17)(cid:129)(cid:12)(cid:20)(cid:11)(cid:10)(cid:9)
(cid:8)(cid:14)(cid:17)(cid:18)(cid:12)(cid:7)(cid:17)(cid:20)(cid:6)(cid:9)(cid:5)(cid:4)(cid:14)(cid:10)(cid:18)(cid:7)(cid:17)(cid:20)(cid:3)(cid:15)(cid:7)(cid:5)(cid:2)(cid:20)(cid:11)(cid:10)(cid:9)
(cid:23)(cid:22)(cid:21)(cid:20)(cid:19)(cid:18)(cid:17)(cid:16)(cid:15)(cid:14)(cid:13)(cid:12)(cid:20)(cid:11)(cid:10)(cid:9)
(cid:31)(cid:30)ˆ(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: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:24)(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:24)(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:25)(cid:28)(cid:27)(cid:27)(cid:27)(cid:28)(cid:27)(cid:27)(cid:27)
5
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022 Investment Manager’s Report (Continued)
Outside of the above top three contributors the Portfolio benefited from positive performances from Cash Converters Int Ltd, Updater Inc.
(unrealised currency gain), Paragon Care Ltd (realised) and Ardent Leisure Group Ltd (realised).
Mark to market losses outside the Top 3, noted above include three technology related exposures: Airtasker Ltd where we remain positive
having added to our initial holding by supporting the strategic acquisition of the Oneflare business at the most recent $0.43 placement
price, Adore Beauty Group Ltd where we have added to our holding at prices around $1.00 per share and Urbanise Limited. A core
industrial holding Macmahon Holdings Ltd (MAH) fell materially during the period driven by a de-rating across the mining services sector.
We remain confident MAH will continue to grow earnings and begin to generate strong free cash flow which we expect will be rewarded
by the market.
For FY22 the Portfolio generated $4,040,011 (down (92%) compared to FY21) of capital gains (realised and unrealised) which were offset
by capital losses (realised and unrealised) of ($39,059,260) (+315% compared to FY21) resulting in a net capital loss before interest and
dividend income of ($35,019,249) for the year.
FY22 dividend income received was up strongly from $1,762,646 to $4,766,514. FY22 income includes a $2,500,538 special franked
distribution from Vita Group Ltd as the Investment Manager deployed additional capital into the existing position as part of a sum-of-
the-parts arbitrage strategy in advance of the sale of their Retail ICT and Sprout business to Telstra. On an underlying basis, the Portfolio
generated $2,265,976 of franked divided income, up 28.56% on FY21, in turn supporting the payment of Ryder’s interim and final fully
franked dividend. Interest income received on term deposits and cash for the period was up from $36,105 to $41,475.
As at 30 June 2022, approximately 87% of the Company’s capital was deployed in equities with approximately 13% held in cash, term
deposits and net receivables.
Portfolio Activity
During the year we became a substantial shareholder in CountPlus Ltd increasing our holding on the back of a material fall in the
share price as a direct result of the CEO unexpectedly resigning. We continued to accumulate a larger exposure to Capitol Health Ltd
on price weakness due to what we consider to be a temporary weaker operational performance as a result of COVID-19 related labour
and visitation challenges. In the materials sector our long held position in Aurelia Metals Ltd continued to underperform due to poor
operational performance and now sits materially below our assessment of intrinsic value. We added to two long term core holdings being
SRG Global Ltd and Service Stream Ltd due to increased conviction and share price volatility. New positions were initiated in Austin
Engineering Ltd, Wide Open Agriculture Ltd and 4DMedical Ltd.
We exited our position in Bill Identity Ltd after the abject failure of management to execute against their stated business plan, realising
a meaingful loss of ~$1.7m. Our investment in Tubi Ltd (Tubi) (~1.0% of exposure) has been progressively realising assets and remains
suspended from the ASX. Pending a shareholder vote later this calendar year we expect Tubi to be either liquidated and return capital to
shareholders or relist on the ASX by merging or acquiring a new business. We also exited Hastings Technology Metals Ltd and Johns Lyng
Group Ltd on valuation grounds, along with shorter duration positions in Paragon Care Ltd realising profits on all three investments. Other
positions exited included gold exposures - Silver Lake Resources Ltd, Gold Road Resources Ltd and Ramelius Resources Ltd.
Portfolio Strike Rate
Shareholders will recall our interest in presenting our strike rate analysis. Consistent with the analysis presented in prior years, and given
the Portfolio has now completed its sixth full financial year, the analysis set out below is based solely on realised profits since inception.
Strike Rate Analysis – Inception to Date (30 June 2022)
Strike Rate Analysis
Gross Realised Portfolio Profits
Gross Realised Portfolio Losses
Net Realised Portfolio Profit
Win/Loss
Strike Rate
RYD Portfolio
$72,665,572
($17,420,423)
$55,245,149
76.03%
$4.13
Note: ignores dividends, interest, taxes and expenses and relies on unaudited management analysis
Referring to the analysis above, the Portfolio segment identifies the Portfolio’s gross realised profits since inception to 30 June 2022 of
$72,665,572 compared to the Portfolio’s gross realised losses since inception of ($17,420,423). The net of these results is a net realised
Portfolio profit since inception of $55,245,149.
Observing the above, we note that:
1. the net realised Portfolio profit of $55,245,149 is 76.03% of the gross realised Portfolio profit of $72,665,572, that is we retained
~76.03% of gains, or thinking of it as a decision ratio, our poor decisions eroded our successful decisions by approximately 23.97%;
and
2. total profits divided by total losses for the period (since inception to 30 June 2022) is 4.17x, indicating that for every $4.17 profit made,
$1.00 was lost.
6
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022 Investment Manager’s Report (Continued)
Our FY22 strike rate fell from $6.23 as we exited positions at losses due to weak or deteriorating investment thesis. Whilst this is
disappointing, the importance of exiting low conviction positions for the long term health of the Portfolio has become more pertinent due
to current market volatility and a weakening economic outlook. We do however note the strike rate has increased over a longer timeframe
from $4.11 in FY20, indicative of an incrementally increasing capability to hold onto a greater share of profit. It is also important to note that
any unrealised gains in the Portfolio from our long term high conviction positions are not recognised in this analysis but would further
improve this measure as they are realised.
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 other domestic investment managers are not directly comparable to the indices as while they are presented
before provided for tax they are post the payment of realised tax which creates an unfair drag on Ryder and other domestic investment
managers when compared 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. During the last 12 months Ryder
has underperformed both the comparator indices and investment manager median largely due to concentrated positions delivering
outsized negative returns and heightened portfolio volatility as flagged earlier in this report. Over the long term Ryder has outperformed
comparable ASX equity indices and other domestic investment managers generating higher returns for a similar level of a risk.
(cid:9)
(cid:8)
(cid:9)
(cid:21)
(cid:10)
(cid:30)
(cid:11)
(cid:19)
(cid:18)
(cid:24)
(cid:17)
(cid:22)
(cid:23)
(cid:24)
(cid:19)
(cid:22)
(cid:23)
(cid:18)
(cid:19)
(cid:20)
(cid:21)
(cid:22)
(cid:27)
(cid:23)
(cid:24)
(cid:25)
(cid:28)(cid:29)(cid:30)
(cid:31)(cid:30)
(cid:29)(cid:30)
(cid:27)(cid:31)(cid:30)
(cid:27)(cid:28)(cid:29)(cid:30)
(cid:27)(cid:28)(cid:31)(cid:30)
(cid:27)(cid:26)(cid:29)(cid:30)
(cid:27)(cid:26)(cid:31)(cid:30)
(cid:29)(cid:30)
(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: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: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:31)(cid:30)(cid:29)
(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: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: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: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:31)(cid:30)
(cid:28)(cid:29)(cid:30)
(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:28)(cid:31)(cid:30)
(cid:26)(cid:29)(cid:30)
(cid:26)(cid:31)(cid:30)
(cid:25)(cid:24)(cid:23)(cid:27)(cid:22)(cid:21)(cid:20)(cid:19)(cid:18)(cid:23)(cid:22)(cid:19)(cid:24)(cid:23)(cid:22)(cid:17)(cid:24)(cid:18)(cid:19)(cid:16)(cid:22)(cid:21)(cid:18)(cid:15)(cid:21)(cid:24)(cid:15)(cid:19)(cid:15)(cid:23)(cid:14)(cid:13)(cid:21)(cid:22)(cid:13)(cid:12)(cid:18)
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 40 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
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.
7
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022 Investment Manager’s Report (Continued)
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
-1.38
0.30
0.59
0.68
-1.47
0.43
0.93
1.08
-1.04
0.0023
0.22
0.37
-1.12
0.0030
0.30
0.51
-0.51
0.18
0.40
0.50
-0.63
0.23
0.52
0.66
Over the past 12 months, Ryder has underperformed on a risk-adjusted basis which is disappointing given our bias to value and focus on
risk. A few key positions underperformed materially compared to the Investment Manager’s assessment of downside risk producing an
outsized negative contribution to Portfolio returns. Throughout the longer term, 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 since inception 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 both indices during negative periods
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
0.947%
2.569%
-1.537%
58%
42%
Ryder
0.947%
2.345%
-2.012%
58%
42%
Small Ords Accumulation Index
0.741%
3.512%
-3.503%
60%
40%
All Ords Accumulation Index
0.770%
2.761%
-3.442%
68%
32%
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 (40 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 2022
Ryder Capital Limited
Annual Report
For the year ended 30 June 2022
Investment Manager’s Report (Continued)
Set out below are Ryder’s Since Inception to Date (ITD) returns, Sharpe and Sortino ratios in comparison to 42 other ASX LICs (using an
inception date of September 2015).
Annualised returns (September 2015 to June 2022)
(cid:24)(cid:25)(cid:29)
(cid:24)(cid:25)(cid:29)
(cid:24)(cid:26)(cid:29)
(cid:24)(cid:26)(cid:29)
(cid:24)(cid:27)(cid:29)
(cid:24)(cid:27)(cid:29)
(cid:24)(cid:30)(cid:29)
(cid:24)(cid:30)(cid:29)
(cid:24)(cid:28)(cid:29)
(cid:24)(cid:28)(cid:29)
(cid:25)(cid:29)
(cid:25)(cid:29)
(cid:26)(cid:29)
(cid:26)(cid:29)
(cid:27)(cid:29)
(cid:27)(cid:29)
(cid:30)(cid:29)
(cid:30)(cid:29)
(cid:28)(cid:29)
(cid:28)(cid:29)
(cid:31)(cid:30)(cid:29)
(cid:31)(cid:30)(cid:29)
(cid:18)(cid:19)(cid:141)
(cid:18)(cid:19)(cid:141)
(cid:21)(cid:18)(cid:24)
(cid:21)(cid:18)(cid:24)
(cid:20)(cid:13)(cid:13)
(cid:20)(cid:13)(cid:13)
(cid:18)(cid:15)(cid:11)
(cid:18)(cid:15)(cid:11)
(cid:129)(cid:2)(cid:18)
(cid:129)(cid:2)(cid:18)
(cid:18)(cid:13)(cid:11)
(cid:18)(cid:13)(cid:11)
(cid:9)(cid:19)(cid:13)
(cid:9)(cid:19)(cid:13)
(cid:141)(cid:13)(cid:19)
(cid:141)(cid:13)(cid:19)
(cid:9)(cid:11)(cid:18)
(cid:9)(cid:11)(cid:18)
(cid:9)(cid:13)(cid:10)
(cid:9)(cid:13)(cid:10)
(cid:2)(cid:129)(cid:18)
(cid:2)(cid:129)(cid:18)
(cid:12)(cid:4)(cid:141)
(cid:12)(cid:4)(cid:141)
(cid:20)(cid:13)(cid:11)
(cid:20)(cid:13)(cid:11)
(cid:129)(cid:13)(cid:18)
(cid:129)(cid:13)(cid:18)
(cid:18)(cid:19)(cid:129)
(cid:18)(cid:19)(cid:129)
(cid:129)(cid:18)(cid:18)
(cid:129)(cid:18)(cid:18)
(cid:10)(cid:21)(cid:21)
(cid:10)(cid:21)(cid:21)
(cid:20)(cid:13)(cid:5)
(cid:20)(cid:13)(cid:5)
(cid:15)(cid:127)(cid:20)
(cid:15)(cid:127)(cid:20)
(cid:19)(cid:1)(cid:18)
(cid:19)(cid:1)(cid:18)
(cid:7)(cid:23)(cid:9)
(cid:7)(cid:23)(cid:9)
(cid:20)(cid:6)(cid:10)
(cid:20)(cid:6)(cid:10)
(cid:1)(cid:8)(cid:19)
(cid:1)(cid:8)(cid:19)
(cid:10)(cid:2)(cid:19)
(cid:10)(cid:2)(cid:19)
(cid:9)(cid:13)(cid:19)
(cid:9)(cid:13)(cid:19)
(cid:13)(cid:3)(cid:19)
(cid:13)(cid:3)(cid:19)
(cid:21)(cid:4)(cid:10)
(cid:21)(cid:4)(cid:10)
(cid:10)(cid:21)(cid:5)
(cid:10)(cid:21)(cid:5)
(cid:13)(cid:11)(cid:6)
(cid:13)(cid:11)(cid:6)
(cid:13)(cid:17)(cid:21)
(cid:13)(cid:17)(cid:21)
(cid:13)(cid:10)(cid:19)
(cid:13)(cid:10)(cid:19)
(cid:8)(cid:13)(cid:7)
(cid:8)(cid:13)(cid:7)
(cid:9)(cid:19)(cid:18)
(cid:9)(cid:19)(cid:18)
(cid:11)(cid:19)(cid:17)
(cid:11)(cid:19)(cid:17)
(cid:9)(cid:21)(cid:10)
(cid:9)(cid:21)(cid:10)
(cid:13)(cid:14)(cid:19)
(cid:13)(cid:14)(cid:19)
(cid:11)(cid:10)(cid:10)
(cid:11)(cid:10)(cid:10)
(cid:13)(cid:18)(cid:12)
(cid:13)(cid:18)(cid:12)
(cid:15)(cid:14)(cid:19)
(cid:15)(cid:14)(cid:19)
(cid:17)(cid:16)(cid:15)
(cid:17)(cid:16)(cid:15)
(cid:20)(cid:19)(cid:18)
(cid:20)(cid:19)(cid:18)
(cid:23)(cid:22)(cid:21)
(cid:23)(cid:22)(cid:21)
Sharpe ratio (September 2015 to June 2022)
(cid:24)(cid:143)(cid:28)
(cid:24)(cid:143)(cid:28)
(cid:28)(cid:143)(cid:25)
(cid:28)(cid:143)(cid:25)
(cid:28)(cid:143)(cid:26)
(cid:28)(cid:143)(cid:26)
(cid:28)(cid:143)(cid:27)
(cid:28)(cid:143)(cid:27)
(cid:28)(cid:143)(cid:30)
(cid:28)(cid:143)(cid:30)
(cid:28)(cid:143)(cid:28)
(cid:28)(cid:143)(cid:28)
(cid:18)(cid:19)(cid:141)
(cid:18)(cid:19)(cid:141)
(cid:21)(cid:18)(cid:24)
(cid:21)(cid:18)(cid:24)
(cid:20)(cid:13)(cid:13)
(cid:20)(cid:13)(cid:13)
(cid:18)(cid:15)(cid:11)
(cid:18)(cid:15)(cid:11)
(cid:129)(cid:2)(cid:18)
(cid:129)(cid:2)(cid:18)
(cid:18)(cid:13)(cid:11)
(cid:18)(cid:13)(cid:11)
(cid:9)(cid:19)(cid:13)
(cid:9)(cid:19)(cid:13)
(cid:141)(cid:13)(cid:19)
(cid:141)(cid:13)(cid:19)
(cid:129)(cid:13)(cid:18)
(cid:129)(cid:13)(cid:18)
(cid:9)(cid:13)(cid:10)
(cid:9)(cid:13)(cid:10)
(cid:129)(cid:18)(cid:18)
(cid:129)(cid:18)(cid:18)
(cid:2)(cid:129)(cid:18)
(cid:2)(cid:129)(cid:18)
(cid:18)(cid:19)(cid:129)
(cid:18)(cid:19)(cid:129)
(cid:7)(cid:23)(cid:9)
(cid:7)(cid:23)(cid:9)
(cid:12)(cid:4)(cid:141)
(cid:12)(cid:4)(cid:141)
(cid:20)(cid:13)(cid:11)
(cid:20)(cid:13)(cid:11)
(cid:9)(cid:11)(cid:18)
(cid:9)(cid:11)(cid:18)
(cid:15)(cid:127)(cid:20)
(cid:15)(cid:127)(cid:20)
(cid:20)(cid:13)(cid:5)
(cid:20)(cid:13)(cid:5)
(cid:10)(cid:2)(cid:19)
(cid:10)(cid:2)(cid:19)
(cid:20)(cid:6)(cid:10)
(cid:20)(cid:6)(cid:10)
(cid:1)(cid:8)(cid:19)
(cid:1)(cid:8)(cid:19)
(cid:9)(cid:21)(cid:10)
(cid:9)(cid:21)(cid:10)
(cid:10)(cid:21)(cid:21)
(cid:10)(cid:21)(cid:21)
(cid:13)(cid:11)(cid:6)
(cid:13)(cid:11)(cid:6)
(cid:13)(cid:18)(cid:12)
(cid:13)(cid:18)(cid:12)
(cid:10)(cid:21)(cid:5)
(cid:10)(cid:21)(cid:5)
(cid:11)(cid:19)(cid:17)
(cid:11)(cid:19)(cid:17)
(cid:9)(cid:13)(cid:19)
(cid:9)(cid:13)(cid:19)
(cid:8)(cid:13)(cid:7)
(cid:8)(cid:13)(cid:7)
(cid:13)(cid:17)(cid:21)
(cid:13)(cid:17)(cid:21)
(cid:13)(cid:3)(cid:19)
(cid:13)(cid:3)(cid:19)
(cid:13)(cid:14)(cid:19)
(cid:13)(cid:14)(cid:19)
(cid:11)(cid:10)(cid:10)
(cid:11)(cid:10)(cid:10)
(cid:13)(cid:10)(cid:19)
(cid:13)(cid:10)(cid:19)
(cid:9)(cid:19)(cid:18)
(cid:9)(cid:19)(cid:18)
(cid:19)(cid:1)(cid:18)
(cid:19)(cid:1)(cid:18)
(cid:20)(cid:19)(cid:18)
(cid:20)(cid:19)(cid:18)
(cid:21)(cid:4)(cid:10)
(cid:21)(cid:4)(cid:10)
(cid:17)(cid:16)(cid:15)
(cid:17)(cid:16)(cid:15)
(cid:15)(cid:14)(cid:19)
(cid:15)(cid:14)(cid:19)
(cid:23)(cid:22)(cid:21)
(cid:23)(cid:22)(cid:21)
Sortino ratio (September 2015 to June 2022)
(cid:24)(cid:143)(cid:27)
(cid:24)(cid:143)(cid:27)
(cid:24)(cid:143)(cid:30)
(cid:24)(cid:143)(cid:30)
(cid:24)(cid:143)(cid:28)
(cid:24)(cid:143)(cid:28)
(cid:28)(cid:143)(cid:25)
(cid:28)(cid:143)(cid:25)
(cid:28)(cid:143)(cid:26)
(cid:28)(cid:143)(cid:26)
(cid:28)(cid:143)(cid:27)
(cid:28)(cid:143)(cid:27)
(cid:28)(cid:143)(cid:30)
(cid:28)(cid:143)(cid:30)
(cid:28)(cid:143)(cid:28)
(cid:28)(cid:143)(cid:28)
(cid:31)(cid:28)(cid:143)(cid:30)
(cid:31)(cid:28)(cid:143)(cid:30)
(cid:18)(cid:19)(cid:141)
(cid:18)(cid:19)(cid:141)
(cid:21)(cid:18)(cid:24)
(cid:21)(cid:18)(cid:24)
(cid:20)(cid:13)(cid:13)
(cid:20)(cid:13)(cid:13)
(cid:18)(cid:15)(cid:11)
(cid:18)(cid:15)(cid:11)
(cid:129)(cid:2)(cid:18)
(cid:129)(cid:2)(cid:18)
(cid:18)(cid:13)(cid:11)
(cid:18)(cid:13)(cid:11)
(cid:9)(cid:19)(cid:13)
(cid:9)(cid:19)(cid:13)
(cid:141)(cid:13)(cid:19)
(cid:141)(cid:13)(cid:19)
(cid:129)(cid:13)(cid:18)
(cid:129)(cid:13)(cid:18)
(cid:129)(cid:18)(cid:18)
(cid:129)(cid:18)(cid:18)
(cid:2)(cid:129)(cid:18)
(cid:2)(cid:129)(cid:18)
(cid:9)(cid:13)(cid:10)
(cid:9)(cid:13)(cid:10)
(cid:18)(cid:19)(cid:129)
(cid:18)(cid:19)(cid:129)
(cid:7)(cid:23)(cid:9)
(cid:7)(cid:23)(cid:9)
(cid:12)(cid:4)(cid:141)
(cid:12)(cid:4)(cid:141)
(cid:20)(cid:13)(cid:11)
(cid:20)(cid:13)(cid:11)
(cid:15)(cid:127)(cid:20)
(cid:15)(cid:127)(cid:20)
(cid:20)(cid:13)(cid:5)
(cid:20)(cid:13)(cid:5)
(cid:9)(cid:11)(cid:18)
(cid:9)(cid:11)(cid:18)
(cid:10)(cid:2)(cid:19)
(cid:10)(cid:2)(cid:19)
(cid:20)(cid:6)(cid:10)
(cid:20)(cid:6)(cid:10)
(cid:1)(cid:8)(cid:19)
(cid:1)(cid:8)(cid:19)
(cid:9)(cid:21)(cid:10)
(cid:9)(cid:21)(cid:10)
(cid:10)(cid:21)(cid:5)
(cid:10)(cid:21)(cid:5)
(cid:13)(cid:11)(cid:6)
(cid:13)(cid:11)(cid:6)
(cid:10)(cid:21)(cid:21)
(cid:10)(cid:21)(cid:21)
(cid:13)(cid:17)(cid:21)
(cid:13)(cid:17)(cid:21)
(cid:13)(cid:18)(cid:12)
(cid:13)(cid:18)(cid:12)
(cid:11)(cid:19)(cid:17)
(cid:11)(cid:19)(cid:17)
(cid:19)(cid:1)(cid:18)
(cid:19)(cid:1)(cid:18)
(cid:8)(cid:13)(cid:7)
(cid:8)(cid:13)(cid:7)
(cid:13)(cid:14)(cid:19)
(cid:13)(cid:14)(cid:19)
(cid:9)(cid:13)(cid:19)
(cid:9)(cid:13)(cid:19)
(cid:13)(cid:10)(cid:19)
(cid:13)(cid:10)(cid:19)
(cid:13)(cid:3)(cid:19)
(cid:13)(cid:3)(cid:19)
(cid:11)(cid:10)(cid:10)
(cid:11)(cid:10)(cid:10)
(cid:20)(cid:19)(cid:18)
(cid:20)(cid:19)(cid:18)
(cid:21)(cid:4)(cid:10)
(cid:21)(cid:4)(cid:10)
(cid:9)(cid:19)(cid:18)
(cid:9)(cid:19)(cid:18)
(cid:15)(cid:14)(cid:19)
(cid:15)(cid:14)(cid:19)
(cid:17)(cid:16)(cid:15)
(cid:17)(cid:16)(cid:15)
(cid:23)(cid:22)(cid:21)
(cid:23)(cid:22)(cid:21)
1. Annualised returns are calculated during the period of 30 Sep 2015 to 30 June 2022 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
9
Ryder Capital Limited
Annual Report
For the year ended 30 June 2022
Investment Manager’s Report (Continued)
Outlook
With a synchronised fall in asset prices across equities, bonds and real estate, there have been very few, if any, places for long-only
investors to hide other than cash during the last six months. With central banks now firmly fighting inflation through aggressive
monetary tightening together with what we anticipate to be increased fiscal responsibility by governments over time, it is easy to
be overly pessimistic about the immediate outlook for growth, earnings and equity valuations. There also remains a wide dispersion
of views on where interest rates will ultimately need to rise in order to subdue inflationary pressures. We expect this dispersion of
outcomes to continue to result in heightened volatility, something that has been absent in recent years, save for March/April 2020. It is
not unreasonable with this backdrop to see markets continue to swing around churning out impatient capital to the benefit of patient,
thoughtful capital – a backdrop that favours Ryder.
Many companies within our universe continue to be impacted by a variety of exogenous factors including tight labour markets, high input
costs and stressed supply chains. Whilst on the demand side the impacts of increased cost of living/mortgage pressures, coupled with the
unwinding of Covid-19 related consumption pull forward presents a number of challenges. In parallel with increasing our risk thresholds to
new investments, we continue to scrutinise Portfolio positions to ensure they have robust/defensive business plans and resilience to the
variable demand and supply side factors.
Overall, our outlook remains cautious, though opportunities are beginning to emerge in some sectors we like. We don’t profess to be
able to pick the market bottom, top or even its near term direction. With a permanent capital base, good liquidity as a result of our
cash holdings and a consistent bottom up approach to investing we are confident in our ability to deliver strong absolute returns for
shareholders.
Peter Constable
Chief Investment Officer / Portfolio Manager
David Bottomley
Portfolio Manager
10
Your directors present their report on Ryder Capital Limited (“Company”) for the year ended 30 June 2022.
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 2022Directors’ 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
Audit and Risk Committee Meetings
Director
Peter Constable
David Bottomley
Ray Kellerman
Meetings held and entitled to attend
Meetings attended
4
4
4
4
4
4
Meetings held and entitled to attend
Meetings attended
2
2
2
2
2
2
Principal activity
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 2022
Directors’ Report (Continued)
Review of Operations
Portfolio performance was weak resulting in total comprehensive income after tax decreasing by ($21,323,502) from $23,215,635 in
FY21. Gross Portfolio performance of (20.44%), underperformed the Company’s performance benchmark resulting in a nil performance
fee payable to the Investment Manager for the year. As a result of the Investment Manager’s underperformance of the Company’s
performance benchmark during the period, there is a notional carry forward performance fee make up at balance date of $7,909,839. Until
such time as the Investment Manager has outperformed the Company’s performance benchmark to cumulatively offset this accrual and
compounding performance hurdle, no performance fees are payable.
The Company’s opening Net Asset Value (NAV) on 30 June 2021 was $130,891,114 and the closing NAV on 30 June 2022 was $115,655,938
reflecting a decrease in net assets of ($15,235,176).
During the year, the Company bought back 217,634 shares for an outlay of $269,492 or average cost share value of $1.2383. 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 Net Tangible Assets (NTA). Before tax NTA per share decreased from 193.56 cents per share to 135.98 cents
per share during the reporting period. Noting this decrease was after the payment of 7.0 cents per share in fully franked dividends and the
payment of realised tax equivalent to a further 4.1 cents per share set out in the waterfall chart below.
Ryder (pre-tax) Performance
(cid:31)(cid:30)(cid:29)(cid:28)(cid:27)(cid:26)(cid:25)
(cid:31)(cid:30)(cid:29)(cid:21)(cid:27)
(cid:31)(cid:30)(cid:29)(cid:22)(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:27)(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:31)(cid:24)(cid:23)(cid:29)(cid:27)(cid:28)(cid:27)(cid:22)(cid:21)
(cid:31)(cid:24)(cid:23)(cid:29)(cid:23)(cid:22)(cid:23)(cid:23)(cid:21)
(cid:31)(cid:24)(cid:23)(cid:29)(cid:23)(cid:20)(cid:26)(cid:22)(cid:21)
(cid:31)(cid:19)
(cid:31)(cid:24)(cid:23)(cid:29)(cid:23)‡(cid:26)(cid:27)(cid:21)
(cid:31)(cid:30)(cid:29)‡(cid:23)(cid:23)(cid:28)
(cid:31)(cid:24)(cid:23)(cid:29)(cid:23)‡(cid:30)(cid:23)(cid:21)
(cid:31)(cid:30)(cid:29)(cid:27)(cid:26)(cid:28)ˆ
(cid:18)(cid:17)(cid:16)(cid:15)(cid:14)(cid:20)(cid:23)(cid:20)(cid:30)
(cid:13)(cid:12)(cid:11)(cid:14)(cid:24)(cid:10)(cid:9)(cid:15)(cid:19)(cid:8)(cid:7)(cid:6)(cid:21)
(cid:10)(cid:5)(cid:9)(cid:8)(cid:4)(cid:5)(cid:3)(cid:2)(cid:5)(cid:14)
(cid:10)(cid:15)(cid:9)(cid:4)(cid:5)(cid:9)(cid:1)(cid:7)(cid:16)(cid:127)(cid:15)
(cid:129)(cid:2)(cid:141)(cid:2)(cid:143)(cid:15)(cid:16)(cid:143)
(cid:10)(cid:7)(cid:144)(cid:1)(cid:15)(cid:16)(cid:8)
(cid:157) (cid:15)(cid:14) (cid:14)(cid:129)(cid:2)(cid:9)(cid:15)(cid:127)(cid:8)(cid:5)(cid:9)(cid:14)
€(cid:15)(cid:15)(cid:14)‚(cid:14)ƒ(cid:6)„(cid:15)(cid:16)…(cid:15)…
(cid:10)(cid:15)(cid:9)(cid:4)(cid:5)(cid:9)(cid:1)(cid:7)(cid:16)(cid:127)(cid:15)
€(cid:15)(cid:15)(cid:14)(cid:11)(cid:127)(cid:127)(cid:9)(cid:17)(cid:15)(cid:143)
†„(cid:8)(cid:2)(cid:5)(cid:16)(cid:14)
(cid:129)(cid:2)(cid:3)(cid:17)(cid:8)(cid:2)(cid:5)(cid:16)
(cid:18)(cid:17)(cid:16)(cid:15)(cid:14)(cid:20)(cid:23)(cid:20)(cid:20)(cid:14)(cid:24)„(cid:9)(cid:15)(cid:19)(cid:8)(cid:7)(cid:6)(cid:21)
(cid:10)(cid:9)(cid:5)(cid:141)(cid:2)(cid:143)(cid:15)(cid:143)(cid:14)(cid:7)(cid:16)(cid:143)(cid:14)(cid:10)(cid:7)(cid:2)(cid:143)
(cid:12)(cid:7)(cid:6)(cid:14)(cid:10)(cid:7)(cid:144)(cid:1)(cid:15)(cid:16)(cid:8)
(cid:18)(cid:17)(cid:16)(cid:15)(cid:14)(cid:20)(cid:23)(cid:20)(cid:20)(cid:14)(cid:13)(cid:12)(cid:11)(cid:14)
(cid:24)(cid:10)(cid:9)(cid:15)(cid:19)(cid:8)(cid:7)(cid:6)(cid:21)(cid:14)(cid:10)(cid:9)(cid:5)(cid:141)(cid:2)(cid:143)(cid:15)(cid:143)
In the period, the Investment Manager sold several long-term Portfolio investments on valuation grounds realising net gains of $1,150,405
before the payment of dividends of $3,048,268 which is reflected in the Company’s capital profits reserve decreasing 6% or $1,897,863
to $28,870,734. The Company’s profit reserve rose from $105,462 to $1,145,284 which when added to the Company’s capital reserve
takes total distributable profits to $30,016,018, a decrease of 3% or $858,041 and equivalent to $0.353 per share. This decrease is net of
$5,606,316 in dividends paid during the period and excludes ($4,979,780) of net unrealised losses in the Portfolio as at 30 June 2022.
13
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022 Directors’ Report (Continued)
Review of Operations (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:30)(cid:25)(cid:30)
(cid:31)(cid:30)(cid:29)(cid:28)(cid:21)(cid:27)
(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: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: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:28)(cid:21)(cid:30)
(cid:31)(cid:30)(cid:29)(cid:27)(cid:27)(cid:30)
(cid:31)(cid:30)(cid:29)(cid:26)(cid:129)(cid:129)
(cid:31)(cid:30)(cid:29)(cid:26)(cid:24)(cid:26)
(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:28)(cid:20)(cid:27)(cid:27)
(cid:27)(cid:20)(cid:27)(cid:27)
(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)
(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 2022 approximately 87.07% of the Company’s capital was deployed in equities with approximately 12.93% held in cash, term
deposits and net receivables.
The Investment Manager conducted a detailed review of the valuation of Updater Inc. (Updater) as of 30 June 2022. Directors are satisfied
that Updater’s business plan remains sound, operational progress is positive and notes the Company’s stated strategic initiative to list
on the NASDAQ when markets stabilise. Updater continues to be held as a US Dollar equity asset with no changes to its 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.
The Portfolio continues to be actively managed to reduce risk while taking advantage of opportunities as they arise. Ryder has taken steps
to ensure that the Investment Manager is able to continue operations without interruption with all employees having the facilities to work
from home if required.
The Company is mindful of the ongoing low interest rates on deposits of the Company’s cash and near-cash asset reserves coupled with
Portfolio companies prudently managing their own capital requirements balanced against dividend payments. Ryder is well positioned
to withstand dividend payment fluctuations as the Portfolio’s primary objective is to generate long term capital growth with income
generation as a secondary objective. The Company’s dividend payments for the year remained at 7.0 cents per share fully franked in FY22
despite a 25.8% increase in shares on issue from 67,624,670 to 85,050,629. Notwithstanding recent market volatility and the mark to market
decline in the value of the Portfolio, the Board remains confident in the Company’s ability to continue the payment of steady to increasing
dividends over time.
14
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022 Directors’ Report (Continued)
Dividends
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).
On 11 February 2022, the Directors declared a fully franked dividend of 3.00 cents per share paid on 7 March 2022 on ordinary shares held
as at record date 21 February 2022 (ex-dividend date 18 February 2022).
On 16 August 2022, the Directors declared a fully franked dividend of 4.00 cents per share to be paid on 5 September 2022 on ordinary
shares held as at record date 22 August 2022 (ex-dividend date of 19 August 2022).
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, 17,643,593 Secondary Options were exercised (30 June 2021: 8,867,947) and 221,133 Secondary Options lapsed (30 June
2021: nil).
As at date of this report:
Initial Option over unissued ordinary shares - nil
Secondary Option over unissued ordinary shares - nil
Net Assets
As at 30 June 2022 the net assets of the Company were $118,881,008 (30 June 2021: $119,612,127). 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 2022 Directors’ Report (Continued)
Remuneration Report
This remuneration report sets out information about the remuneration of the Company’s directors for the year ended 30 June 2022, 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 2022
Director
Peter Constable
David Bottomley
Ray Kellerman1
Position
Chairman
Director
Non-Executive Director
Year ended 30 June 2021
Director
Peter Constable
David Bottomley
Ray Kellerman1
Position
Chairman
Director
Non-Executive Director
1. Director fees (for the sole Non-Executive Director) total $40,000 per annum including superannuation
Short-term employee
benefits
Cash salary
Post-employment
benefits
Superannuation
$
-
-
36,364
36,364
$
-
-
3,636
3,636
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
16
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022 Directors’ Report (Continued)
Remuneration Report (Continued)
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).
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 2022
Year ended
30 June 2021
$
1,922,468
-
121,924
-
$
1,665,056
7,040,139
145,407
7,040,139
Shares as at 30 June 2022
Director
Peter Constable1
David Bottomley1
Ray Kellerman
Options (RYDOA) as at 30 June 2022
Director
Peter Constable
David Bottomley
Ray Kellerman
Opening
balance
Acquisitions /
Options
exercised
Shares
acquired
/ (disposed)
Closing
balance as at
30 June 2022
10,819,501
3,535,001
1,530,000
1,303,000
550,000
-
325,484
790,484
35,000
12,447,985
4,875,485
1,565,000
15,884,502
1,853,000
1,150,968
18,888,470
Opening
balance
Issued /
acquired
Lapsed /
exercised
Closing
balance as at
30 June 2022
1,303,000
550,000
-
1,853,000
-
-
-
-
(1,303,000)
(550,000)
-
(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 30 June 2022, 675,485 shares (30 June
2021: one share) in the Company were 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 2022
Directors’ Report (Continued)
Remuneration Report (Continued)
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
8,675,001
3,048,001
1,020,000
2,154,500
475,000
510,000
(10,000)
12,000
-
10,819,501
3,535,001
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 30 June 2022, 675,485 shares (30 June
2021: one share) in the Company were held by Ryder Investment Management Pty Ltd, a company controlled by Peter Constable and David Bottomley.
End of Remuneration Report.
18
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022
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
reasons:
(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, 16 August 2022
19
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022 Auditor’s Independence Declaration
Grant Thornton Audit Pty Ltd
Level 17
383 Kent Street
Sydney NSW 2000
Locked Bag Q800
Queen Victoria Building NSW
1230
T +61 2 8297 2400
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 2022, I declare that, to the best of my knowledge and belief,
there have been:
a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the
audit; and
b 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, 16 August 2022
www.grantthornton.com.au
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 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 and/or
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited 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 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
20
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022
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
Profit / (loss) for the year before income tax expense
Income tax benefit
Profit / (loss) for the year
Other comprehensive (loss) / income
Items that will not be reclassified to profit or loss:
Note
Year ended
30 June 2022
Year ended
30 June 2021
$
41,475
4,766,514
420,798
15,067
5,243,854
(1,791,391)
(40,000)
-
(324,413)
(2,155,804)
3,088,050
387,864
3,475,914
$
36,105
1,762,646
3,515
7,684
1,809,950
(1,551,529)
(40,000)
(7,040,139)
(333,011)
(8,964,679)
(7,154,729)
2,621,712
(4,533,017)
14
14
14
4(a)
Movement in fair value of long term equity investments, net of tax
11(d)
Total comprehensive (loss) / income for the year
(24,799,416)
(21,323,502)
27,748,652
23,215,635
Basic earnings / (losses) per share
Diluted earnings / (losses) per share
5
5
4.36 cents
(7.24) cents
4.36 cents
(7.24) 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 2022 Statement of Financial Position
Assets
Current assets
Cash and cash equivalents
Receivables
Prepayments
Current tax asset
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
Profit reserve
Capital profits reserve
Asset revaluation reserve
Total equity
Note
13(a)
6
4(c)
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 2022
$
14,904,218
50,698
16,118
1,095,627
-
16,066,661
100,806,039
2,132,053
102,938,092
As at
30 June 2021
$
20,841,669
35,472
-
-
3,515
20,880,656
119,197,825
-
119,197,825
119,004,753
140,078,481
123,745
-
123,745
-
-
9,187,367
2,290,015
11,477,382
8,986,172
8,986,172
123,745
20,463,554
118,881,008
119,614,927
103,720,754
(9,875,984)
1,145,284
28,870,734
(4,979,780)
77,524,855
(9,754,028)
105,462
30,768,597
20,970,041
118,881,008
119,614,927
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 2022 Statement of Changes in Equity
Note
Issued
capital
Accumulated
losses
$
$
Profits
reserve
$
Capital
profits
reserve
Asset
revaluation
reserve
Total equity
$
$
$
Balance at 30 June 2020
64,222,935
(5,221,011)
1,916,989
16,944,472
9,065,404
86,928,789
Loss 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
11(c)
-
-
-
-
-
-
-
Transactions with owners in their
capacity as owners
Shares acquired under buy-back during
the year
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
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)
–
-
-
-
-
-
3,475,914
-
3,475,914
-
–
-
-
-
1,150,405
(1,150,405)
(3,597,870)
3,597,870
-
-
(3,597,870)
3,597,870
1,150,405
(1,150,405)
-
-
-
–
-
-
–
3,475,914
(24,799,416)
(24,799,416)
(24,799,416)
(21,323,502)
Transactions with owners in their capacity
as owners
Shares issued under the exercise of second-
ary options
Shares acquired under buy-back during
the year
Dividends paid
10(a)
26,465,391
10(a)
(269,492)
11(b),(c)
-
26,195,899
-
-
-
-
-
-
-
-
(2,558,048)
(3,048,268)
(2,558,048)
(3,048,268)
-
-
-
-
26,465,391
(269,492)
(5,606,316)
20,589,583
Balance at 30 June 2022
103,720,754
(9,875,984)
1,145,284
28,870,734
(4,979,780)
118,881,008
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 2022 Statement of Cash Flows
Cash flows from operating activities
Interest received
Dividends received
Other income received
Management fees paid
Performance fees paid
Directors' fees paid
Other operating expenses paid
Income tax paid
Note
Year ended 30 June 2022
Year ended 20 June 2021
$
$
29,918
4,766,514
15,067
(1,814,874)
(7,040,139)
(40,000)
(344,200)
(3,487,682)
36,105
1,960,156
7,684
(1,508,801)
(1,416,708)
(40,000)
(346,712)
(7,311,381)
Net cash used in operating activities
13(b)
(7,915,396)
(8,619,657)
Cash flows from investing activities
Proceeds from sale of investments
Payments for purchase of investments
37,990,415
(56,602,053)
49,725,805
(47,168,801)
Net cash (used in) / provided by investing activities
(18,611,638)
2,557,004
Cash flows from financing activities
Dividends paid
Proceeds from shares issued
Payments for share buy-back
(5,606,316)
26,465,391
(269,492)
(3,831,417)
13,301,920
-
Net cash provided by financing activities
20,589,583
9,470,503
Net (decrease) / increase in cash held
(5,937,451)
3,407,850
Cash and cash equivalents at beginning of the financial year
20,841,669
17,433,819
Cash and cash equivalents at end of the financial year
13(a)
14,904,218
20,841,669
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 2022 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 28, 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 2022, and were authorised for issue by the Directors
on 16 August 2022.
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 2022
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 2022 Notes to the Financial Statements
1. GENERAL INFORMATION AND SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(g) Income
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, a 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.
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 2022 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 2021 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 2022,
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).
(r) Comparative revisions
Comparative information has been revised where appropriate to enhance comparability. Where necessary, comparative figures have
been adjusted to conform with changes in presentation in the current year.
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 made to the broker as the stock is received
simultaneously on a delivery versus payment basis.
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 2022 is 0.15% (2021: 0.27%).
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 2022 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 2022
Trade and other payables
Total financial liabilities
As at 30 June 2021
Trade and other payables
Due to brokers - payable for securities purchased
Total financial liabilities
(d) Market risk
Less than 1
month
$
123,745
123,745
7,187,367
2,000,000
9,187,367
1-6 months
6-12 months Over 12 months
$
-
–
-
-
-
$
-
–
-
-
-
$
-
-
-
-
-
Total
$
123,745
123,745
7,187,367
2,000,000
9,187,367
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 2022 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
%
0.15
Floating
interest rate
$
14,331,330
-
-
-
-
-
$
572,888
50,698
16,118
90,400,621
9,871,412
534,006
14,331,330
101,445,743
-
-
123,745
123,745
0.27
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
Total
$
14,904,218
50,698
16,118
90,400,621
9,871,412
534,006
115,777,073
123,745
123,745
20,841,669
35,472
3,515
109,656,098
9,041,727
500,000
140,078,481
9,187,367
9,187,367
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
As at 30 June 2022
Financial assets
Cash and cash equivalents
Trade and other receivables
Prepayments
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 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
(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.
30
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022 Notes to the Financial Statements
2. FINANCIAL RISK MANAGEMENT (CONTINUED)
(d) Market risk (Continued)
(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.
(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
comprehensive income
Foreign currency risk impact on other
comprehensive income
30 June 2022
-10%
(10,080,604)
+10%
10,080,604
-100 bps
-
+100 bps
-
-10%
(987,141)
+10%
987,141
Price risk impact on other
comprehensive income
Interest rate risk impact on other
comprehensive 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 impact on operating
profit / (loss)
Interest rate risk impact on
operating profit / (loss)
Foreign currency risk impact on operating
profit / (loss)
30 June 2022
-10%
-
+10%
-
-100 bps
(143)
+100 bps
143
-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 2021
-10%
(352)
+10%
352
-100 bps
(185)
+100 bps
185
-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 2022 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 2022 and 30 June 2021.
As at 30 June 2022
Financial assets
Long-term equity investments
Listed equities
Unlisted equities
Convertible notes
Total financial assets
As at 30 June 2021
Financial Assets
Derivative assets
Options
Long-term equity investments
Listed equities
Unlisted equities
Convertible notes
Total financial assets
(b) Transfer between levels
Level 1
$
Level 2
$
89,245,299
-
-
89,245,299
3,515
109,656,098
-
-
109,659,613
-
-
-
-
-
-
-
-
-
Level 3
$
1,155,322
9,871,412
534,006
Total
$
90,400,621
9,871,412
534,006
11,560,740
100,806,039
-
-
9,041,727
500,000
9,541,727
3,515
109,656,098
9,041,727
500,000
119,201,340
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.
The following table presents the transfers between levels for the year ended 30 June 2022 (30 June 2021: nil).
As at 30 June 2022
Transfers from level 1 to level 3
Long-term equity investments
Listed investments
Level 1
$
(1,155,322)
Level 2
$
-
Level 3
$
1,155,322
At the end of the current reporting period, management has transferred the Fund’s investments in the amount of $1,155,322 from level 1 to
level 3 on the fair value hierarchy on the basis that Tubi Ltd (ASX code: 2BE) was suspended from official quotation on 8 April 2021.
There were no other transfers between levels at the end of reporting period.
32
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022
Notes to the Financial Statements
3. FAIR VALUE MEASUREMENT (CONTINUED)
(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 2022 by class of financial instrument.
Options
Listed
investments
Convertible
notes
Opening balance – 1 July 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
Transfer into / (out) from level 3
Expired
Purchases
Sales
Unrealised gains recognised in the Statement of
Profit or Loss and Other Comprehensive Income
Closing balance – 30 June 2022
(i) Valuation inputs and relationships to fair value
$
-
-
-
-
-
-
3,515
(3,515)
-
-
-
-
$
-
-
-
-
-
-
1,155,322
-
-
-
-
1,155,322
Unlisted
equities
$
Total
$
9,859,225
9,859,225
-
-
-
-
500,000
-
(817,498)
9,041,727
(817,498)
9,541,727
-
-
-
-
1,158,837
(3,515)
-
-
$
-
-
500,000
-
-
500,000
-
-
-
-
34,006
534,006
829,685
863,691
9,871,412
11,560,740
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 2022
Updater Inc.
Tubi Ltd
As at 30 June 2021
Updater Inc.
Fair value $
Valuation technique
9,871,412
1,155,322
Income approach
Income approach
9,041,727
Income approach
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, continues to be held as a US Dollar equity asset marked to market in
line with currency fluctuations at a value of USD17.55 (AUD24.875) per Common Stock. To date the Investment Manager has not hedged
any of the US Dollar Updater exposure.
The Investment Manager conducted a detailed review of the valuation of Updater as of 30 June 2022 making no changes to its carrying
value. Directors are satisfied that Updater’s business plan remains sound, operational progress is positive and notes the Company’s
stated strategic initiative to list on the NASDAQ when markets stabilise. The valuation of Updater has been determined using a Discounted
Cash Flow.
33
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022
Notes to the Financial Statements
3. FAIR VALUE MEASUREMENT (CONTINUED)
(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 2022 are shown below:
Description
Unobservable inputs
Ordinary shares at fair
value through other
comprehensive income
5-Year Compounding
Annual Revenue Growth rate
Discount rate
Terminal rate
Value
31.60%
12.96%
2.00%
Sensitivity
5.00% increase would increase fair val-
ue by $3,386,091 and a 5.00% decrease
would decrease fair value by $2,171,148
1.00% increase would decrease fair val-
ue by $1,417,434 and a 1.00% decrease
would increase fair value by $2,407,387
1.00% increase would increase fair value
by $1,243,067 and a 1.00% decrease
would decrease fair value by $489,352
(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.
34
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022 Notes to the Financial Statements
4. TAXATION
30 June 2022
30 June 2021
$
$
(a) Numerical reconciliation of income tax benefit
Prima facie tax (benefit) on profit/(loss) before income tax at 30% (2021: 30%)
926,415
(2,146,419)
Adjusted for tax effect of amounts which are not deductible (taxable) in calculating taxable
income:
Imputation gross up on dividends received
Franking credits on dividends received
ATO cash boost (non-assessable)
563,263
(1,877,542)
-
203,054
(676,846)
(1,501)
Income tax benefit
(387,864)
(2,621,712)
Applicable weighted average effective tax rate
13%
(37%)
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 (asset)/liability
Opening balance
Income tax payment made
(Credited) / charged to profit or loss
to profit or loss
directly to equity
Closing balance
35
(390,991)
(3,467)
-
6,594
(387,864)
(2,564,228)
58,199
-
(115,683)
(2,621,712)
(716)
2,134,191
(493,031)
(717)
(8,987,161)
(6,790,292)
1,640,444
(15,778,170)
2,290,015
(3,487,682)
(390,991)
493,031
(1,095,627)
5,375,334
(7,311,383)
(2,564,228)
6,790,292
2,290,015
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022 Notes to the Financial Statements
4. TAXATION (CONTINUED)
(d) Deferred Tax
Deferred tax liabilities
Deferred income tax comprises the estimated tax payable at the current income tax rate of
30% (2021: 30%) on the following items:
Tax on unrealised gains on investment Portfolio
Interest receivable
Deferred tax liabilities
Movements:
Opening balance
Charged / (credited):
to profit or loss
directly to equity
Closing balance
Deferred tax assets
Deferred tax assets comprises the estimated tax deductible at the current income tax rate of
30% (2021: 30%) on the following items:
Transition costs on equity issue
Reduction in transition costs on equity issue
Tax on unrealised losses on investment portfolio
Deferred tax assets
Movements:
Opening balance
Charged / (credited):
directly to equity
Closing balance
As at 30 June 2022
As at 30 June 2021
$
$
-
3,467
3,467
8,988,215
-
8,988,215
8,988,215
3,944,426
3,467
(8,988,215)
3,467
(58,199)
5,101,988
8,988,215
113,949
(112,621)
2,134,192
2,135,520
2,043
2,133,477
2,135,520
113,949
(111,906)
-
2,043
2,760
(717)
2,043
Net deferred tax assets/(liabilities)
2,132,053
(8,986,172)
36
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022 Notes to the Financial Statements
5. EARNINGS PER SHARE
Basic earnings / (losses) per share
Diluted earnings / (losses) per share
Earnings / (losses) earnings used in calculating basic earnings per share
Earnings / (losses) used in calculating diluted earnings per share
30 June 2022
30 June 2021
$
4.36 cents
4.36 cents
3,475,914
3,475,914
$
(7.24) cents
(7.24) cents
(4,533,017)
(4,533,017)
Weighted average number of ordinary shares used in the calculation of basic earnings per share
79,649,255
62,610,475
Weighted average number of shares used in the calculation of diluted earnings per share
79,649,255
62,610,475
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 2021 to 30 June 2022.
6. RECEIVABLES
Interest receivable
GST receivable
As at 30 June 2022
As at 30 June 2021
$
11,557
39,141
50,698
$
-
35,472
35,472
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.
37
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022
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 2022
$
-
-
June 2021
$
3,515
3,515
90,400,621
109,656,098
9,871,412
534,006
100,806,039
100,806,039
9,041,727
500,000
119,197,825
119,201,340
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 2022
30 June 2021
$
$
2,756,749
3,887,307
2,354,845
-
During the year, the total fair value of investments sold in the normal course of the business and to preserve capital were:
30 June 2022
30 June 2021
$
$
37,562,822
49,725,805
1,150,405
15,844,016
Fair value at disposal date
Listed equity securities
Gain on disposal after tax
Listed equity securities
38
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022 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 2022 are detailed below.
Options
As at June 2022
Contract / notional
Fair Values
Values
Assets
(Liabilities)
$
-
-
$
-
-
$
-
-
The Company’s derivative financial instruments at 30 June 2021 are detailed below.
Contract / notional
Fair Values
As at June 2021
Values
$
263,652
263,652
Assets
$
3,515
3,515
(Liabilities)
$
-
-
As at 30 June 2022
As at 30 June 2021
$
121,924
-
1,821
-
123,745
$
145,407
7,040,139
1,821
2,000,000
9,187,367
Options
9. PAYABLES
Management fees payable
Performance fees payable
Directors fees payable
Due to brokers - payable for securities purchased
39
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022 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 (2021: nil). At balance date the Company has nil (2021: 17,864,726) Secondary Options on issue
exercisable on or before 10 December 2021 for an exercise price of $1.50.
30 June 2022
30 June 2021
Units
$
Units
$
(a) Movements in ordinary share capital
Opening balance
Share buy-back
Shares issued upon the exercise of options
67,624,670
(217,634)
17,643,593
77,524,855
(269,492)
26,465,391
Closing balance
85,050,629
103,720,754
(b) Options issued
Opening balance
Options exercised during the year
Options lapsed during the year
Closing balance
17,864,726
(17,643,593)
(221,133)
-
-
-
-
-
58,756,723
64,222,935
-
8,867,947
67,624,670
26,732,673
(8,867,947)
17,864,726
-
13,301,920
77,524,855
-
-
-
-
40
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022
Notes to the Financial Statements
11. RESERVES AND RETAINED PROFITS
(a) Accumulated losses
Balance at the beginning of the year
Net profit / (loss) attributable to members of the Company
Transfer to profit reserve
Balance at 30 June
(b) Profits reserve
30 June 2022
30 June 2021
$
$
(9,754,028)
3,475,914
(3,597,870)
(9,875,984)
(5,221,011)
(4,533,017)
-
(9,754,028)
The reserve is made 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.
105,462
(2,558,048)
3,597,870
1,145,284
1,916,989
(1,811,527)
-
105,462
30,768,597
1,150,405
(3,048,268)
28,870,734
16,944,472
15,844,015
(2,019,890)
30,768,597
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
20,970,041
(24,799,416)
(1,150,405)
(4,979,780)
9,065,404
27,748,652
(15,844,015)
20,970,041
41
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022 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:
Grant Thornton
Audit and other assurance services
Audit and review of financial statements
30 June 2022
30 June 2021
$
$
55,850
50,000
Total remuneration for audit and other assurance services
55,850
50,000
Taxation services
Taxation services
Total remuneration of Grant Thornton
8,000
63,850
5,000
55,000
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 profit / (loss) attributable to members of the
Company to net cash (outflow) from operating activities
Profit / (loss) attributable to members of the Company
Net gain on financial instruments at fair value through profit or loss
Movement in margin accounts
Income tax benefit
Net change in receivables and prepayments
Net change in payables
Net cash used in operating activities
As at 30 June 2022
As at 30 June 2021
$
$
14,904,218
14,904,218
20,841,669
20,841,669
As at 30 June 2022
As at 30 June 2021
$
$
3,088,050
(420,798)
-
(3,487,682)
(31,344)
(7,063,622)
(7,915,396)
(7,154,729)
(3,515)
-
(7,311,381)
187,809
5,662,159
(8,619,657)
42
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022 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 2022
30 June 2021
$
1,922,468
-
121,924
-
$
1,665,056
7,040,139
145,407
7,040,139
(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 2022
30 June 2021
$
36,364
36,364
3,636
3,636
$
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
43
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022 Notes to the Financial Statements
14. RELATED PARTY TRANSACTIONS (CONTINUED)
(c) Shareholdings
2022
Ordinary Shares
Peter Constable1
David Bottomley1
Ray Kellerman
2021
Ordinary shares
Peter Constable1
David Bottomley1
Ray Kellerman
Opening balance
Acquisitions /
options exercised
Shares acquired
/ (disposed)
Balance
at 30 June 2022
10,819,501
3,535,001
1,530,000
1,303,000
550,000
-
325,484
790,484
35,000
12,447,985
4,875,485
1,565,000
15,884,502
1,853,000
1,150,968
18,888,470
Opening balance
Acquisitions /
options exercised
Shares acquired
/ (disposed)
Balance
at 30 June 2021
8,675,001
3,048,001
1,020,000
12,743,002
2,154,500
475,000
510,000
3,139,500
(10,000)
12,000
-
2,000
10,819,501
3,535,001
1,530,000
15,884,502
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 30 June 2022, 675,485 shares
(30 June 2021: one share) in the Company were held by Ryder Investment Management Pty Ltd, a company controlled by Peter Constable and David Bottomley.
(d) Options to acquire shares
2022
Options (RYDOA)
Peter Constable
David Bottomley
Ray Kellerman
2021
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 2022
1,303,000
550,000
-
(1,303,000)
(550,000)
-
1,853,000
(1,853,000)
-
-
-
-
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)
(3,144,500)
1,303,000
550,000
-
1,853,000
44
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022
Notes to the Financial Statements
15. CONTINGENT LIABILITIES AND COMMITMENTS
As at 30 June 2022 and 30 June 2021, the Company had no contingent liabilities or commitments.
16. DIVIDENDS
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).
On 11 February 2022, the Directors declared a fully franked dividend of 3.00 cents per share paid on 7 March 2022 on ordinary shares held
as at record date 21 February 2022 (ex-dividend date 18 February 2022).
Subsequent to balance date, on 16 August 2022, the Directors declared a fully franked dividend of 4.00 cents per share to be paid
on 5 September 2022 on ordinary shares held as at record date 22 August 2022 (ex-dividend date of 19 August 2022).
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 2022
30 June 2021
$
$
6,419,329
1,877,542
(2,402,707)
3,487,682
9,381,846
73,136
676,846
(1,642,036)
7,311,383
6,419,329
Franking credits on tax payable in respect of the current period’s profits
-
2,290,015
Adjusted franking account balance
9,381,846
8,709,344
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 $1,485,010 (2021: $1,159,280).
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.
45
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022
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 2022 and
performance of the Company, for the year ended 30 June 2022;
(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, 16 August 2022
46
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022 Independent Auditor’s Report to the Members
Grant Thornton Audit Pty Ltd
Level 17
383 Kent Street
Sydney NSW 2000
Locked Bag Q800
Queen Victoria Building NSW
1230
T +61 2 8297 2400
Independent Auditor’s 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 position as at 30 June 2022, 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 significant accounting policies, and the Directors’ declaration.
In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act
2001, including:
a giving a true and fair view of the Company’s financial position as at 30 June 2022 and of its performance
for the year 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 further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Company in accordance with the auditor independence requirements
of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (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.
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.
www.grantthornton.com.au
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 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 and/or
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited 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 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
47
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022
Independent Auditor’s Report to the Members
Key audit matter
Existence and valuation of financial instruments
– refer to Note 3 and Note 7
The Company carries financial assets designated at
fair value through other comprehensive income of
$100,806,039 as at 30 June 2022. 89% of the
financial assets 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 AASB 13 Fair Value
Measurement.
Independent Auditor’s Report
To the Members of Ryder Capital Limited
Report on the audit of the financial report
Level 17, 383 Kent Street
Sydney NSW 2000
How our audit addressed the key audit matter
Correspondence to:
Locked Bag Q800
QVB Post Office
Sydney NSW 1230
Our procedures included, amongst others:
• Obtaining and understanding the investment
management process and controls;
T +61 2 8297 2400
F +61 2 9299 4445
E info.nsw@au.gt.com
W www.grantthornton.com.au
• Reviewing and evaluating the independent audit report
on internal controls (ISAE 3402 Assurance Reports on
Controls at a Service Organisation) for the period 1
July 2021 to 30 June 2022 for the Custodian;
• 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 assumptions and inputs applied in
management’s determination;
However, the Company also carries an investment
position of $9,871,412 in Updater Inc. and
$1,155,322 in Tubi Ltd, both unlisted companies
Opinion
classified as ‘Level 3’ financial assets under AASB
13 Fair Value Measurement. Level 3 financial assets
We have audited the financial report of Ryder Capital Limited (the Company), which comprises the statement of financial
have significant unobservable inputs, which make
position as at 30 June 2021, the statement of profit or loss and other comprehensive income, statement of changes in
their valuation complex.
equity and statement of cash flows for the year then ended, and notes to the financial statements, including a summary of
significant accounting policies, and the Directors’ declaration.
This area is a key audit matter due to the quantum
of the financial assets designated at fair value
In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001,
through other comprehensive income and the
including:
significant estimation involved in the valuation of
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
Level 3 financial assets.
• 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 & completeness of management fees -
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
refer to Note 9 and Note 14
Our procedures included, amongst others:
• Understanding and evaluating the processes and
controls for calculating the management fees and the
completeness and accuracy of underlying records;
The company recorded management fees of
$1,922,468 during the year ended 30 June 2022.
These fees are the most significant operating
Basis for opinion
expense for the company and are charged by the
related party – Ryder Investment Management Pty
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
Ltd.
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
Related party transactions may be entered into
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
under terms or conditions other than ordinary
Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial
business considerations available to independent
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
third parties. AASB 24 Related Party Disclosures
contain specific requirements for transactions with
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
related parties.
respect to any significant events during the period and
associated adjustments made to the fee calculation, in
addition to reviewing ASX announcements;
• Verifying the accuracy of key inputs to the calculation,
including company dividends, tax payments, capital
raisings and other relevant expenses used in the
calculation of management fees;
• Making enquiries of the Investment Manager with
The management fees are calculated per the
Investment Management Agreement and use
metrics such as investment portfolio value and other
key inputs.
Key audit matters
• Recalculating the management fees in accordance with
our understanding of the terms and conditions in the
Investment Management Agreement; and
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.
• Assessing the adequacy of financial statement
This area is a key audit matter due to the quantum
of the management fees and the inherent risk
associated with related party transactions.
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 2022, but does not include the financial report and our
auditor’s report 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.
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.
48
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022
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.
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
Responsibilities of the Directors for the financial report
Independent Auditor’s Report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair
To the Members of Ryder Capital Limited
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal
control as the Directors determine is necessary to enable the preparation of the financial report that gives a true
Report on the audit of the financial report
and fair view and is free from material misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Company’s ability to continue as
a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
Opinion
accounting unless the Directors either intend to liquidate the Company or to cease operations, or have no realistic
We have audited the financial report of Ryder Capital Limited (the Company), which comprises the statement of financial
alternative but to do so.
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
Auditor’s responsibilities for the audit of the financial report
significant accounting policies, and the Directors’ declaration.
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
In our opinion, the accompanying financial report of the Company is in accordance with the Corporations Act 2001,
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
including:
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably
be expected to influence the economic decisions of users taken on the basis of this financial report.
b complying with Australian Accounting Standards and the Corporations Regulations 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
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 Standards Board website at: https://auasb.gov.au/auditors_responsibilities/ar2.pdf.This description
forms part of our auditor’s report.
Basis for opinion
Report on the remuneration report
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are
further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are
Opinion on the remuneration report
independent of the Company in accordance with the auditor independence requirements of the Corporations Act 2001 and
We have audited the Remuneration Report included in pages 16 to 18 of the Directors’ report for the year
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
ended 30 June 2022.
Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial
In our opinion, the Remuneration Report of Ryder Capital Limited, for the year ended 30 June 2022 complies
report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.
with section 300A of the Corporations Act 2001.
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
Key audit matters
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
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
Grant Thornton Audit Pty Ltd ACN 130 913 594
G S Layland
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
Director – Audit & Assurance
‘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
Sydney, 16 August 2022
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.
www.grantthornton.com.au
49
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022
Top 20 Shareholders
The Shareholder information set out below was applicable at 28 July 2022.
Listed below is additional information required by the ASX Listing Rules and not disclosed elsewhere in this report.
A. Distribution of equity securities
Holding Ranges
1 to 1000
1001 to 5000
5001 to 10000
10001 to 100000
100001 and Over
Total
B. Equity security holders
Twenty largest equity security holders
Name
CONSVEST PTY LTD
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
PETER CHARLES CONSTABLE
MR ROBERT JULIAN CONSTABLE & MRS JANET MARIE CONSTABLE
BNP PARIBAS NOMS PTY LTD
MR TIMOTHY LINDSAY MCCAUGHEY
DAHO PTY LTD
DOOHAN SUPERANNUATION PTY LTD
S LE M SUPERANNUATION PTY LTD
MAYUMI AND ZENTA INVESTMENTS PTY LTD
HALE UNION PTY LTD
BS CARTER SUPERANNUATION FUND PTY LTD
RK SYDNEY PTY LTD
CEDAYU PTY LTD
GERICHTER SUPER INVESTMENTS PTY LTD
DHAULAGURI PTY LTD
ALEYA INVESTMENT PTY LTD
FIR NOMINEES PTY LIMITED
FARIWEST PTY LTD
CEDAR PARTY PTY LIMITED
C. Substantial shareholders
Peter Charles Constable
David Harold Bottomley
D. Voting rights
Investors
47
79
77
255
121
579
Shares
16,334
249,163
607,344
9,678,463
74,310,872
84,862,176
%
0.02
0.29
0.72
11.4
87.57
100.00
Shares
5,200,000
4,314,148
3,000,000
2,500,000
2,400,000
2,298,000
1,975,000
1,500,000
1,500,000
1,500,000
1,500,000
1,500,000
1,500,000
1,500,000
1,400,000
1,317,200
1,270,000
1,256,125
1,120,000
1,095,235
%
6.13
5.08
3.54
2.95
2.83
2.71
2.33
1.77
1.77
1.77
1.77
1.77
1.77
1.77
1.65
1.55
1.50
1.48
1.32
1.29
Shares
12,447,985
4,875,485
%
14.67
5.75
The voting rights attaching to each class of equity security are set our 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.
E. Stock exchange listing
Quotation has been granted for all of the ordinary shares 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 412 investment transactions during the period, total brokerage paid on these transactions was $146,042.49.
50
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022
Corporate Directory
Directors
Peter Constable (Chairman)
David Bottomley
Ray Kellerman
Company Secretary
David Bottomley
Claudia Rososinski
Registered Office
Level 28
88 Phillip Street
Sydney NSW 2000
Contact Details
P: (02) 9000 9020
W: www.rydercapital.com.au
Share Registry
Link Market Services Limited
Level 12, 680 George Street
Sydney NSW 2000
P: 1300 554 474
W: www.linkmarketservices.com.au
Auditor
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
51
Ryder Capital LimitedAnnual ReportFor the year ended 30 June 2022
Level 28, 88 Phillip Street
Sydney NSW 2000
T +61 (2) 9000 9020
E enquiries@rydercapital.com.au
www.rydercapital.com.au