Annual Report
1
Saferoads Holdings Limited
ABN 81 116 668 538
SAFEROADS.COM.AU Improving
public safety
Saferoads is an ASX listed company specialising in the provision of innovative road
safety solutions throughout Australia, New Zealand and North America. The company
provides state government departments, local councils, road construction companies
and equipment hire companies with a broad range of products and services designed
to direct, protect, inform and illuminate for the public’s safety.
2
SAFEROADS.COM.AU Contents
Chairman’s Overview
Chief Executive Officer’s Review of Operations and Activities
The Year in Review
Directors’ Report
Auditor’s Independence Declaration
Corporate Governance Statement
Financial Statements
Notes to the Financial Statements
Directors’ Declaration
Independent Auditor’s Report
ASX Additional Information
Corporate Directory
4
7
9
14
22
23
24
28
53
54
58
59
3
SAFEROADS.COM.AU Chairman’s Overview
Dear Shareholder,
Financial Overview
On behalf of the Board, I am pleased to report a profit after tax for the year
of $535k, a stable result in what is still a significantly uncertain economic
environment with the ongoing COVID-19 global pandemic. Whilst we had a
strong first half, we experienced a decline in the second half of the year mainly
attributable to the deferral of some road construction projects in Victoria
impacting our equipment hire earnings, and lower demand from international
opportunities.
However, the road infrastructure sector has been somewhat shielded from
the direct effects of COVID-19 with various governments still committed
to significant infrastructure budgets. For some years now, we have
strengthened our digital sales platform and during COVID-19 restrictions,
this has continued to allow our customers to access our products and
services without the need for face-to-face contact.
Our total revenue was down $3.247 million, or 20% in FY2021, that is mainly
attributable to the disposal of the on-grid lighting product portfolio and
reduced level of International sales. Our overall gross margin improved,
driven by sales mix, and very positively impacted by the divestment of our
low margin on-grid lighting product portfolio in February.
Our ongoing focus on cost optimisation saw an overall decrease in
operating costs of 2.3%, year on year. This led to an overall 4.5% increase
in Earnings Before Interest, Tax, Depreciation and Amortisation (EBITDA) to
$2.053 million – the main economic indicator of our operational and cash
performance and a 92% improvement from where we were two years ago
(FY2019).
Our business model is now more capital intensive with the continued expansion of the rental fleet - Road Safety Rental and that has
driven an increase in depreciation and amortisation of 10.6%.
Whilst our borrowings have increased, interest rates have fallen, and we saw an overall reduction in interest cost of 10.6%. The repayment
terms are quite short so that our overall gearing does not exceed acceptable levels in this environment of some uncertainty.
4
SAFEROADS.COM.AU The table below summarizes the key metrics over the past three financial years:
Year ending 30 June
2019
$’000
17,946
6,571
1,070
(41)
542
-
29.7%
2020
$’000
16,497
6,279
1,964
521
2,265
-
19.7%
2021
$’000
13,250
6,303
2,053
535
1,513
1.0
26.7%
Revenue
Gross profit
EBITDA
Profit/(loss) after tax
Operating cash flows
Dividend paid (cents per share)
Gearing* (net debt / net debt + equity)
* Excluding right-of-use asset lease liabilities
We continued our expansion of Road Safety Rental during the year, investing a further $2.4 million in additional rental stock, including
temporary barriers, solar powered Variable Message Sign (VMS) trailers, and portable solar lights. This expansion is to meet the demand
of our key customers for their work zone needs and to provide initial rental stock for our recently opened Campbelltown, NSW branch.
This growth was facilitated by additional borrowings of $1.35 million in equipment finance during the year, with the balance funded
through the proceeds from the sale of the on-grid lighting product portfolio and continued strong working capital, with $1.5 million
generated from operating cashflows during the year.
We continue to receive support from our primary financier, Commonwealth Bank, who approved additional funding lines in July last year.
Our gearing ratio, whilst increased from FY2020, is still a modest 26.7%.
Corporate Activities
In November last year the Board was pleased to announce the payment of a dividend to shareholders. This was a significant turning
point for the Company, as long-standing shareholders would know, as it was the first time in a while that the Company had been in a
position to be able to reward shareholders for their patience and support. The current financial performance of the Company and the
ongoing COVID-19 impacts do not allow us to declare a dividend at this stage, but the resumption of a regular dividend stream remains a
core objective of the Company.
The Board continued to look at and assess our position in the industry and identify opportunities to better focus and improve the
Company with product rationalisation and strategic acquisition. This latter objective being made quite challenging given the COVID-19
constraints on business and the need to be more conservative in times of uncertainty. This strategic approach has seen the Company
dispose of the poorly performing on-grid lighting product portfolio and further expand our rental business with more rental fleet and the
opening of the NSW branch.
Our international business has continued to be hard hit by the pandemic with many sales opportunities put on hold pending a more
stable outlook and economic certainty. However, we have continued to work on the international business with further regulatory
approvals in the USA for our HV2TM temporary barrier with a notable key approval from the state of Texas. We now have 18 state
approvals in USA and one in Canada. We have continued to work with potential business partners in the US to restart our sale of product
once market uncertainties are overcome.
5
SAFEROADS.COM.AU Outlook
We continue to be strategically well placed with our business model aligned to the infrastructure sector that will enable us to support our
earnings base and grow. We will continue to offer leading edge products and services to this sector as various governments continue
with strong transport infrastructure spending and rebuild economies impacted by the COVID-19 pandemic.
Road Safety Rental has secured some solid medium term contracts on Victorian road and rail upgrades, including some Level Crossing
Removal projects in metropolitan Melbourne. We are budgeting to continue expansion of this business by growth of our rental fleet to
meet our solid customer demands. The benefits of this strategy are well established and it is worth reiterating that most of our rental fleet
originates from our own proprietary products, so our fleet investment cost is lower than most of our peers. There has been no change to
this strategy.
Our expansion into the NSW equipment rental market has been impacted by the recent COVID-19 outbreak in Greater Sydney, but we are
optimistic that once this settles, we are well placed to offer our products to an economy keen to rebuild after multiple lockdowns. We had
made initial inroads prior to the present lockdown.
We anticipate our international markets will take longer to recover due to the COVID-19 impacts to the economies, however we maintain
regular contact with existing relationships and continue to work to enhance our international business when the time is right.
Acknowledgments
I would like to acknowledge and thank our staff and management team for their ongoing commitment to the business, particularly during
these disruptive and uncertain times with multiple State lockdowns. They have found a way to maintain the operations of the business in
challenging circumstances and meet customer expectations.
I also sincerely thank all our shareholders for their continued support. Our primary focus continues to be the improvement in the financial
performance and sustainability of our Company, and we were pleased that we could reward this support with the dividend paid in
November 2020.
Finally, I wish to acknowledge my fellow directors and their diligent and collaborative efforts and ongoing contribution during these
unprecedented times.
David Ashmore
Chairman of the Board
30 August 2021
6
SAFEROADS.COM.AU Chief Executive Officer’s Review of
Operations and Activities
Performance during 2020 - 2021
Despite the ongoing disruptions being felt by the COVID-19 pandemic, I am pleased
to report another year of profit for Saferoads. This has not been easy in a business
environment fraught with uncertainty and constant change. The way of doing business
has necessarily adapted to a largely contactless environment where digital tools are the
most efficient means to promote our products and services.
During the first half of the year, we made the strategic decision to divest our low-margin
on-grid lighting product portfolio as we did not see a strategic fit in our go-forward
business model. We were able to find a buyer and completed the transaction in February
receiving proceeds of $1.062 million and realising a minor ($57k) loss after selling costs.
This was the major reason overall revenue was down 20% to FY2020, but also ended up
being the major driver for an improvement in gross profit margins.
Our Australian product sales were up 17.3% (excluding the on-grid lighting product line).
Growth mainly came from our solar lighting solutions, Variable Message Sign trailers and
traffic calming rubber products. Significant efforts had been made in better promoting
our full product suite online and we saw an increase in online enquiries (and new
customer opportunities) come to fruition over the past financial year.
Road Safety Rental started the financial year strongly with ongoing demand for existing
government road projects. However, this did taper off slightly in the second half of the
year where we saw numerous deferrals of new road projects. I am pleased to report that
we enter the new financial year having secured some large medium term works which
will see a significant improvement in asset utilisation levels and returns in this space.
We also have experienced some challenges in establishing our NSW equipment rental branch, with the recent Greater Sydney COVID-19
lockdowns. We have made some good initial business connections but need Greater Sydney to substantively reopen to be able to continue our
initiatives here.
We did however get our first HV2TM barrier system deployment in Victoria and initial feedback from industry players has been highly favourable.
Having built up some solid International leads in FY2019 and FY2020, we were unable to progress these further in FY2021 due to the restrictions
relating to the COVID-19 pandemic. Sales decreased 66% on the prior year however, the feedback we have received from existing customers
have been positive with the HV2TM temporary barrier system out on hire in New Zealand, and we did secure our first sale of the OmniStopTM
portable bollard system to Canada. In addition, we now have the HV2TM temporary barrier system approved in eighteen US States and Ontario
Province in Canada.
With the improved gross profit and focus on controlling costs, we were able to deliver an improved EBITDA of $2,053 million, up 4.5% on FY2020.
This demonstrates that our current strategy of focussing on more profitable business lines is working and we will continue to strive for better
returns and not just look to drive revenue growth alone.
7
SAFEROADS.COM.AU Innovation Initiatives
Whilst COVID-19 has disrupted business as usual, we have still been able to look at product innovation and have fine-tuned some existing
products with minor enhancements to keep them “best of breed”.
We also took the opportunity during the year to establish our own crash testing facility near Warragul, Victoria, which will allow us to
conduct low-cost testing of current and new products. This decision was made as there is no nationally accredited testing facility in
Australia, with the only options being New Zealand or the United States. The time and costs associated with freighting product and test
vehicles overseas and back far outweighed a minor investment in a local solution. With access to independent experts who can certify
accreditation, we should be in a better position to have new products tested, enhanced and approved to domestic and global standards.
Looking Ahead
Reliable forecasting in the current economic environment remains challenging. The forward order book is presently reasonable, but
factors outside our control, such as continued government-enforced lockdowns in response to the ongoing COVID-19 pandemic makes
doing business very challenging, particularly when it impacts not only our business but also our customer base and supply chain.
As the nation’s vaccination rates increase and the need for lockdowns should diminish, infrastructure budgets are still there to be spent,
and we believe we have the right products and services to meet the needs of these projects.
We will continue to selectively invest further in our Road Safety Rental brand, through offering a broader range of work zone products
and services for the construction sector, but will do so in a measured way, ensuring that assets are optimally utilised and generating
appropriate returns.
Finally, I would like to acknowledge the support of all the Saferoads team, who have delivered a solid result for FY2021 and have
adapted well to the challenges of operating in the current COVID-19 environment.
Darren Hotchkin
Chief Executive Officer
30 August 2021
8
SAFEROADS.COM.AU The Year
in Review
FY21 has been a period of significant change for Saferoads. The divestment of the
on-grid lighting business was completed, allowing a renewed focus on the core
business and strategies. Additionally, the implementation of a new ERP system has
enabled the business to benefit from more current technology.
The rental division has seen some incredible milestones this year, including the
opening of our new Road Safety Rental NSW Branch in Campbelltown as well as the
introduction of a new barrier into the rental fleet, with almost 100% utilisation since
its arrival (HV2 Barrier).
The year has presented some major challenges with the ongoing impact of the
COVID-19 pandemic and resulting lockdowns in our two largest markets (Victoria
and New South Wales). Despite this, national product sales achieved:
• An overall sales increase on the prior year (excluding on-grid lighting)
• Growth in sales of solar lighting solutions, variable message sign trailers and
traffic calming products
• Introduction to the market of the BIG Blockout Barrier and One-Piece SnapLoc
Guide Post
• Improvement to Saferoads’ online presence with the addition of product group
videos to our website, in order to assist customers’ purchasing decisions in an
environment which has prevented interpersonal marketing
• An increase in online enquiries and new customer opportunities
Trent Loveless, General Manager
There is no doubt that the vast lockdowns also left Road Safety Rental with an uphill task this year, however, some significant success has
been seen in this division including:
• First ever Australian HV2 Barrier deployment
• Unveiling of the new branch in NSW
• Recruitment of knowledgeable and talented personnel
• The largest T-Lok Barrier deployment in Road Safety Rental’s history
• Increase of the Ironman Hybrid fleet to over 7kms, and additional VMS and solar lighting added to the fleet
• The introduction of two new temporary barriers (HV2 and BIG Blockout) and end treatment (SLED) to the rental market
Looking ahead
With the vast array of challenges that 2020-2021 has delivered, Saferoads and Road Safety Rental have managed to find ways to hold
close the successes of the previous year and position itself for growth in the FY22 period.
There is much excitement for the future with the company’s continual efforts in the development and pioneering of innovative products
and road safety ideas. The brand continues to become more widely known and recognised, and, provided external factors are minimised
in the coming 12 months we are well positioned to grow substantially in the years ahead.
9
SAFEROADS.COM.AU Work Zone Barrier
Saves Lives
Ironman Hybrid Barrier
A recent Ironman Hybrid barrier deployment
in Victoria’s North West region successfully
redirected a 60 tonne B triple truck. The
barriers possibly saved the life of the truck
driver, who had fallen asleep behind the
wheel, in addition to other contractors
working nearby.
This demonstrates how a temporary
barrier deployed around a work zone can
save lives.
The Ironman Hybrid Barrier offers excellent flexibility for 40, 60 and some 80km/h projects, and has an Austroads Safety
Barrier Assessment Panel (ASBAP) approval to 80km/h.
This freestanding temporary longitudinal approved crash barrier system has been successfully crash tested to NCHRP 350
TL-3 and MASH TL2 70km/h. Its lightweight and stackable design offers transport cost savings when compared to traditional
concrete barriers.
10
SAFEROADS.COM.AU Improving Cyclist Safety
Separation Kerb and Caterpillar Safe Cycle
were deployed as part of Melbourne’s new
bike lane roll out to ease traffic congestion
Saferoads were contracted by Road Safety Services & Maintenance
(RSSM) to supply traffic calming products as part of a rapid roll out, by
Yarra City Council of improved bike lanes that stretch 100km through the
Melbourne CBD and surrounding suburbs.
This initiative saw both Separation Kerb and Caterpillar Safe Cycle
installed. These products are designed to direct and separate traffic
whilst alerting drivers to the bike lanes.
By increasing safety for bike lane users more people will be
encouraged to ride, reducing congestion on roads and public transport.
11
SAFEROADS.COM.AU HV2 Barrier Deployed on M80 Ring Road, Melbourne
Road Safety Rental were recently appointed by Healey Infrastructure to manage a major temporary safety barrier installation
on the M80 Ring Road in Melbourne, while another major infrastructure program was being delivered.
The Road Safety Rental team have worked successfully with Healey Infrastructure on many occasions. The entire team were
excited to witness the very first Australian installation of the world’s only MASH TL-4 freestanding temporary barrier system;
the Saferoads HV2 Barrier on Thursday 18th March, 2021.
The deployment was a fantastic success with approximately 600m of HV2 Barrier and four segments of QuadGuard end
treatments being installed in a single night shift with an install team of four of Road Safety Rental’s best!
12
SAFEROADS.COM.AU T-Lok Barriers deployed in Gippsland, Victoria
Road Safety Rental completed their largest, single barrier deployment to date, in Gippsland Victoria. This deployment saw
the installation of over 4000m of T-Lok Barriers, including anti-gawk screen and 11 QuadGuard CZ end treatments.
The project will significantly improve safety in the area, reducing risks around intersecting roads with pavement
improvements and upgrades plus additional permanent safety barrier installations throughout the route.
Works started late in July 2021 and were completed in early August, making this the longest and most successful
installation completed by the Road Safety Rental Team, and the fantastic subcontracting teams at Willaton Transport, Gravity
and Plunketts.
These improvements will lead to dramatically improved safety for commuters along this popular, and busy part of Gippsland.
13
SAFEROADS.COM.AU Directors’ Report
Your Directors submit their report for the year ended 30 June 2021.
Directors
David Ashmore
Darren Hotchkin
Hayden Wallace
David Cleland
Non-Executive Chairman
Appointed 22 November 2012
Executive Director (CEO)
Appointed 21 October 2005
Non-Executive Director
Non-Executive Director
Appointed 16 March 2020
Appointed 1 December 2010
Resigned 25 November 2020
Directors’ Profiles
David Ashmore (Age 69) (FCA GAICD F.FIN)
Non-Executive Chairman
David Ashmore was appointed to the Board on 22 November 2012 and was re-elected at the November 2013, October 2015, October
2017 and October 2019 AGM’s. He was appointed Chairman of the Board on 19 August 2013. He is Chairman of the Remuneration/
Nomination Committee and a member of the Audit and Risk Committee.
David is a career Chartered Accountant with 40 years of professional public practice experience focused on audit, finance, due diligence,
risk and governance advisory.
He is a Fellow of the Institute Chartered Accountants in Australia, a Graduate member of the Australian Institute of Company Directors
and a Fellow of the Financial Services Institute of Australia.
David has not served as a Director of any other listed companies during the preceding three years.
Darren Hotchkin (Age 57)
Executive Director/Chief Executive Officer
Darren Hotchkin was appointed to the Board on 21 October 2005 as Managing Director. On 7 February 2011 he stepped aside as
Managing Director but remained on the Board as a Non-Executive Director and was re-elected at the October 2011 and November 2013
AGM’s. He was appointed as Chief Executive Officer on 10 April 2012.
Darren is the founder of Saferoads. He has a background in the automotive industry where he owned and operated several businesses.
In 1992, he founded the company now trading as our wholly owned subsidiary, Saferoads Pty Ltd, to commercialise
his invention of a rubber guidepost, manufactured from recycled car tyres.
As Chief Executive Officer, Darren’s key contribution to the business is in the strategic development of the Company’s product range and
manufacturing processes as well as in business development. He continues to be active in Research and Development and in seeking to
effectively expand the Company’s product base through international research of products that have the potential to find a sustainable
place in the Australian market. Darren is also an eagerly sought-after international expert speaker on road safety barriers, having
presented at various International Road Federation conferences.
Darren has not served as a Director of any other listed companies during the preceding three years.
14
SAFEROADS.COM.AU Hayden Wallace (Age 50) (MBA, B. Eng.)
Non-Executive Director
Hayden Wallace was appointed to the Board on 16 March 2020. He is Chairman of the Audit and Risk Committee and a member of the
Remuneration/Nomination Committee.
Mr. Wallace is a respected and leading figure in the road safety barrier industry with over 20 years’ experience in leading
multi-site product manufacturing and distribution facilities serving the national road safety barrier market.
Hayden has invented numerous road and vehicle safety barrier systems covered by international patents. He has been involved in
advancing best practice for safety barrier systems through active participation in the Australian and New Zealand Standard for Road
Safety Barriers as well as championing the advancement of numerous public domain road safety barrier systems to the Australian market.
Hayden has led the design and construction of several manufacturing plants for production of road safety barriers as well as a
galvanising facility. He is the founding director and a major shareholder of Safe Direction Pty Ltd, a company that designs, manufactures,
supplies and installs innovative guardrail systems and safety barriers for roads, car parks, warehouses and pedestrians. These products
are not competitive with, but are complementary to, Saferoads’ product range.
Hayden holds a Master’s of Business Administration from The University of Technology, Sydney and Bachelor of Engineering from The
University of Sydney.
Hayden has not served as a Director of any other listed companies during the preceding three years.
David Cleland (Age 76) (Dip.ME GAICD FIE (retired))
Non-Executive Director (resigned 25 November 2020)
David Cleland was appointed to the Board on 1 December 2010 and was re-elected at the October 2011, November 2014, October
2016 and October 2018 AGM’s. He resigned at the conclusion of the 2020 AGM on 25 November 2020. He was appointed acting Chief
Executive Officer on 28 November 2011, handing over the role to Darren Hotchkin on 10 April 2012. He was Chairman of the Audit and
Risk Committee and a member of the Remuneration/Nomination Committee until his resignation.
David has not served as a Director of any other listed companies during the preceding three years.
Company Secretaries
Aimee Taylor (BComm (PR))
(appointed 28 October 2020)
Aimee joined Saferoads in November 2018 and is the Company’s Media, Communications and Human Resources Manager. She was
appointed Company Secretary on 28 October 2020. Aimee has completed a Bachelor of Media and Communications majoring in Public
Relations at Deakin University. She is currently studying a Graduate Certificate of Human Resource Management and manages her own
small business.
Peter Fearns (CPA, BBus (Acctg))
(appointed 22 December 2016, resigned 28 October 2020)
Peter joined Saferoads in December 2011 as Chief Financial Officer and was appointed Company Secretary on 22 December 2016. He
has over 20 years’ experience managing finance functions in the information technology, infrastructure, and professional services sectors,
covering both public listed and private companies.
He was Group Financial Controller of former ASX listed UXC Limited. Prior to Saferoads, he was Chief Financial Officer of a national
privately owned urban planning and property advisory business.
Having resigned in October 2020, Peter returned to Saferoads as Chief Financial Officer in April 2021.
Peter is a Certified Practising Accountant (CPA) and holds a Bachelor of Business degree majoring in Accounting.
15
SAFEROADS.COM.AU Interest in Shares
As at the date of this report, Directors’ interests in the shares of the Company are:
Name
David Ashmore
Darren Hotchkin
Hayden Wallace
Dividends
Shares
1,462,755
9,765,937
Nil
The Company paid a one cent dividend (fully franked) on 19 November 2020 totalling $364,000. $244,214 was distributed in shares
(1,061,783 new shares issued at $0.23) which were issued under the Company’s Dividend Reinvestment Plan.
No final dividend was paid or is declared for the financial year ended 30 June 2021. No interim or final dividend was declared or paid
for the financial year ended 30 June 2020.
Principal Activities
The principal activity of the Group continued to be the sale or rental of road safety products and solutions primarily to end users.
Products and services the Company provides includes flexible guideposts and signage; rubber-based traffic calming products including
separation kerbing and wheel stops; variable messaging sign boards; permanent and temporary public solar lighting poles; permanent
and temporary crash cushions including bollards and safety barriers.
In all its activities, the Company remains focused on providing innovative products and materials that protect the safety of all road users
– motorists, road construction workers and pedestrians.
Review and Results of Operations
A review of the operations and activities of the Company during the financial period and the results of these operations is set out in
the Chairman’s Overview and Chief Executive Officer’s Review of Operations and Activities.
Significant Changes in State of Affairs
During the 2020-21 year, there has been no significant change in the Company’s state of affairs other than as disclosed in this
financial report.
Significant Events after Reporting Date
Since the end of the financial year, the Company has drawn down a further $404,730 under its existing asset finance facility with
Commonwealth Bank for the procurement of further equipment rental assets to fulfill a new rental contract.
Likely Developments and Expected Results
Likely developments in the operations of the entity and the expected results of these operations have been set out in the Chairman’s
Overview and the Chief Executive Officer’s Review of Operations and Activities.
16
SAFEROADS.COM.AU Indemnification and Insurance of Directors, Officers and Auditors
During the year, Directors’ and Officers’ insurance premiums were paid for any person who was a Director and/or Officer of the Company.
The Group has not agreed to indemnify its auditors, Grant Thornton.
Environmental Regulation and Performance
The Company’s operations are not regulated by any significant environmental regulations under a law of the Commonwealth or of a state
or territory. In respect of its own activities, the Company is not a major emitter of greenhouse gases and falls well below the reporting
thresholds set by the National Greenhouse and Energy Reporting Act 2007.
Proceedings on Behalf of the Company
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the
Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of the
Company for all or part of those proceedings.
Options
At the date of this report, there were no un-issued shares of the Company under option.
17
SAFEROADS.COM.AU Remuneration Report
The Company’s remuneration policy is to ensure that the level of remuneration paid to key personnel is market competitive and will help
to attract and retain the skills and expertise required. To determine what is a competitive level of remuneration the Company refers to
salary information provided by various professional organisations.
Remuneration of Directors and Key Management Personnel
Non-Executive Directors
Total remuneration for non-executive Directors for 2020-21 was $169,583. Their remuneration packages comprised only fixed Directors’ fees
plus statutory superannuation (where applicable) and were within the limits set out in the Company’s constitution. Currently this limit is set
at $350,000 per annum and can only be changed at a general meeting.
Executive Director
Mr Darren Hotchkin, Chief Executive Officer, received total remuneration of $412,816, including statutory superannuation. In addition, Mr
Hotchkin was eligible for a discretionary bonus based on the Company’s financial performance exceeding budget targets for FY2021. This
did not eventuate.
Key Management Personnel
Key Management Personnel (“KMP”) is defined by AASB 124 - Related Party Disclosures. Only Directors and Executive Management
that have the authority and responsibility for planning, directing, and controlling the activities of Saferoads, directly or indirectly and are
responsible for the entity’s governance are classified as KMP.
Performance-based Remuneration
No performance-based remuneration (bonus incentives) was paid or payable to key management personnel, including the CEO, for the
year (FY2020: nil). The criteria for discretionary bonuses were the Company’s financial performance exceeding budget targets for FY2021.
This did not eventuate.
A summary of Company performance for the past five financial years is below.
EPS (cents)
Net profit/(loss) ($)
Share price ($)
2021
1.4
535,173
$0.21
2020
1.4
521,029
$0.20
2019
(0.1)
(41,586)
$0.22
2018
1.9
709,692
$0.20
2017
0.3
118,847
$0.11
Employment Contracts
Executive employment agreements have been entered into with the Chief Executive Officer and the Chief Financial Officer as disclosed.
These agreements are of a standard form containing provisions of confidentiality and restraint of trade usually required in such
agreements. Payments to be made on termination of an executive employment contract have been clearly detailed and are limited to
payout of accrued leave entitlements and up to four months’ salary as redundancy or termination pay.
18
SAFEROADS.COM.AU Remuneration of Directors and Key Management Personnel
Short Term
Long Term
Salaries &
Fees
Non-
monetary
Cash
Bonus
Termination
Payment
Super-
annuation
$
$
$
$
$
Long
Service
Leave
$
Total
Perform-
ance
Related
Share
Based
Payment
Options
$
$
%
75,342
16,787
54,795
-
-
-
D Hotchkin
360,000
31,122
Executive *
P Fearns #
Total
105,180
612,104
-
31,122
-
-
-
-
-
-
-
-
-
-
7,158
10,296
5,205
21,694
51,130
51,130
12,182
56,535
-
-
-
-
5
5
-
-
-
-
-
-
82,500
27,083
60,000
412,816
168,497
750,896
* Key Management Personnel is defined as those persons having authority and responsibility for planning, directing and controlling the activities of the
entity, directly or indirectly.
# Mr. Fearns resigned as Chief Financial Officer on 30 October 2020 and was reappointed on 26 April 2021
Short Term
Long Term
Salaries &
Fees
Non-
monetary
Cash
Bonus
Termination
Payment
Super-
annuation
$
$
$
$
$
Long
Service
Leave
$
Share
Based
Payment
Options
Total
Perform-
ance
Related
$
$
%
30 June 2021
Non
Executive
Directors
D Ashmore
D Cleland
H. Wallace
Executive
Director
30 June 2020
Non
Executive
Directors
D Ashmore
D Cleland
H. Wallace
Executive
Director
67,808
31,514
10,502
-
-
-
D Hotchkin
302,950
21,927
Executive
P Fearns
Total
175,500
588,274
-
21,927
-
-
-
-
-
-
-
-
-
-
-
-
6,442
26,986
998
21,003
22,147
77,576
-
-
-
-
3,662
3,662
-
-
-
-
-
-
74,250
58,500
11,500
345,880
201,309
691,439
Note, in response to the COVID-19 situation, the non-executive directors agreed to a 40% reduction and the executive director a 20% reduction in
remuneration for the period covering April to June 2020.
End of audited Remuneration Report.
19
-
-
-
-
-
-
-
-
-
-
SAFEROADS.COM.AU Shareholdings of Key Management Personnel
Shares held in Saferoads Holdings Limited:
Balance at 1 July
2020
Acquired
through On-
Market trade
Acquired through
Dividend Reinvestment
Plan
Sold
Other*
Balance at 30
June 2021
Directors
D Hotchkin
D Ashmore
D Cleland
H Wallace
Executive
P Fearns
Total
9,359,025
1,401,807
508,610
-
33,000
11,302,442
-
-
-
-
-
-
406,912
60,948
22,113
-
-
489,973
-
-
-
-
-
-
-
-
9,765,937
1,462,755
(530,723)
-
-
-
-
33,000
(530,723)
11,261,692
* Mr Cleland resigned 25 November 2020 – value represents shareholding at time of resignation.
All equity transactions with Key Management Personnel have been entered into under terms and conditions no more favourable than
those the entity would have adopted if dealing at arm’s length.
Directors’ Meetings
The number of meetings of Directors (including meetings of committees of Directors) held during the year, and the number of meetings
attended by each Director, were as follows:
Names
Directors
Audit & Risk
Remuneration/Nomination
Eligible
Attended
Eligible
Attended
Eligible
Attended
Mr D Ashmore
Mr D Hotchkin
Mr H Wallace
Mr D Cleland *
10
10
10
5
10
10
10
5
* Mr Cleland resigned 25 November 2020
Non-Audit Services
4
-
4
2
4
-
4
2
1
-
1
-
1
-
1
-
There were no non-audit services performed by Grant Thornton, the Company’s auditors, in addition to their statutory audit duties, during
the year.
Details of the amounts paid to the auditors of the Company, Grant Thornton, and its related practices for audit services provided during
the year are set out in Note 21 to the financial statements.
20
SAFEROADS.COM.AU Rounding of Amounts
Saferoads Holdings Limited is a type of Company that is referred to in ASIC Corporations (Rounding in Financial/Directors’ Reports)
Instrument 2016/191 and therefore the amounts contained in this report and in the financial report have been rounded to the
nearest dollar.
Auditor’s Independence Declaration
The attached independence declaration has been obtained from the Company’s auditors, Grant Thornton.
Signed in accordance with a resolution of Directors
David Ashmore
Director
30 August 2021
21
SAFEROADS.COM.AU Collins Square, Tower 5
727 Collins Street
Melbourne VIC 3008
Correspondence to:
GPO Box 4736
Melbourne VIC 3001
T +61 3 8320 2222
F +61 3 8320 2200
E info.vic@au.gt.com
W www.grantthornton.com.au
Auditor’s Independence Declaration
To the Directors of Saferoads Holdings Limited
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit of
Saferoads Holdings Limited for the year ended 30 June 2021, I declare that, to the best of my knowledge and belief, there
have been:
a
b
no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
Grant Thornton Audit Pty Ltd
Chartered Accountants
Michael Climpson
Partner
Melbourne, 30 August 2021
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
18
22
SAFEROADS.COM.AU
Corporate Governance Statement
The Board of Directors of Saferoads Holdings Limited is responsible for the corporate governance of the Saferoads group. The Board has
considered the ASX Corporate Governance Principles and Recommendations (“ASX Governance Principles”) and reports on compliance
with these Principles.
The Board’s objective is to ensure investor confidence in the Company and its operations given its size, stage of development
and complexity.
The Group’s Corporate Governance Statement for the financial year ending 30 June 2021 is dated as at 30 June 2021 and was approved
by the Board on 26 August 2021. The Board advises that it complies with the ASX Corporate Governance Principles set out in the Company’s
Corporate Governance Statement, which is located on the Company’s website www.saferoads.com.au/investors/corporate-governance.
23
SAFEROADS.COM.AU Saferoads Holdings Limited
Consolidated Statement of Profit or Loss and Other Comprehensive Income
FOR THE YEAR ENDED 30 JUNE 2021
Notes
CONSOLIDATED
2021
$
2020
$
Revenue
Revenue from product sales and services
Cost of direct materials and labour
Movement in inventories
Gross profit
Other income
Employee benefits
Motor vehicle costs
Occupancy costs
Travel and accommodation costs
IT & Communications costs
Warehouse costs
Impairment (loss)/gain of financial assets
Other expenses
Earnings before interest, tax, depreciation and amortisation (EBITDA)
Depreciation and amortisation
Earnings before interest and tax (EBIT)
Finance costs
Profit/(loss) before income tax
Income tax benefit/(expense)
Net profit/(loss) for the period
Net profit/(loss) attributable to members of the parent
Other comprehensive income
Total comprehensive income/(loss) for the period
Total comprehensive income/(loss) attributable to members of the parent
Earnings per share
- Basic for profit/(loss) for the full year
- Diluted for profit/(loss) for the full year
Dividend paid per share (cents)
The accompanying notes form part of these financial statements
24
4
4
4
4
5
6
6
7
13,250,184
(7,532,985)
586,281
6,303,480
(5,392)
(2,925,361)
(117,166)
(49,695)
(18,337)
(121,151)
(197,309)
-
(815,551)
2,053,518
(1,212,112)
841,406
(260,129)
581,277
16,496,950
(9,772,926)
(445,283)
6,278,741
33,655
(2,652,680)
(129,437)
(47,422)
(103,226)
(128,513)
(179,645)
(76,950)
(1,030,579)
1,963,944
(1,083,143)
880,801
(290,616)
590,185
(46,104)
(69,156)
535,173
521,029
535,173
521,029
-
535,173
-
521,029
535,173
521,029
Cents
1.44
1.44
1.00
Cents
1.43
1.43
-
SAFEROADS.COM.AU Saferoads Holdings Limited
Consolidated Statement of Financial Position
AS AT 30 JUNE 2021
ASSETS
Current Assets
Cash and cash equivalents
Trade and other receivables
Inventories
Prepayments
Total Current Assets
Non-current Assets
Property, plant and equipment
Intangible assets
Deferred tax assets
Other non-current assets
Total Non-current Assets
TOTAL ASSETS
LIABILITIES
Current Liabilities
Trade and other payables
Contract liabilities
Interest-bearing loans and borrowings
Lease liabilities
Provisions
Total Current Liabilities
Non-current Liabilities
Interest-bearing loans and borrowings
Lease liabilities
Provisions
Total Non-current Liabilities
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Retained earnings
TOTAL EQUITY
The accompanying notes form part of these financial statements
25
Notes
CONSOLIDATED
2021
$
2020
$
8
9
10
11
12
5
13
14
15
16
14
15
16
17
17
745,787
1,494,810
2,660,122
227,138
5,127,857
8,114,031
1,396,538
1,152,593
186,794
10,849,956
15,977,813
1,257,468
1,725,092
3,057,902
256,048
6,296,510
5,950,093
1,272,622
1,198,697
17,939
8,439,351
14,735,861
1,991,214
1,856,926
13,979
834,380
480,527
315,276
200,710
640,999
241,076
312,593
3,635,376
3,252,304
2,457,434
1,568,654
42,540
4,068,628
7,704,004
8,273,809
2,549,282
1,024,741
46,991
3,621,014
6,873,318
7,862,543
5,593,998
2,679,811
8,273,809
5,353,905
2,508,638
7,862,543
SAFEROADS.COM.AU Saferoads Holdings Limited
Consolidated Statement of Changes in Equity
FOR THE YEAR ENDED 30 JUNE 2021
CONSOLIDATED
At 1 July 2019
Net profit/(loss) for the period
Other comprehensive income for the period
Total comprehensive income for the period
At 30 June 2020
At 1 July 2020
Net profit/(loss) for the period
Other comprehensive income for the period
Total comprehensive income for the period
Transactions with owners in their capacity as owners:
Dividend paid (1.0 cent per share)
Shares issued under Dividend Reinvestment Plan
Share issue costs
At 30 June 2021
The accompanying notes form part of these financial statements
Contributed Equity
$
Retained
Earnings
$
Total Equity
$
5,353,905
-
-
-
1,987,609
521,029
-
521,029
5,353,905
2,508,638
7,341,514
521,029
-
521,029
7,862,543
5,353,905
2,508,638
7,862,543
-
-
-
-
244,214
(4,121)
240,093
5,593,998
535,173
535,173
-
-
535,173
535,173
(364,000)
-
-
(364,000)
2,679,811
(364,000)
244,214
(4,121)
(123,907)
8,273,809
26
SAFEROADS.COM.AU Saferoads Holdings Limited
Consolidated Statement of Cash Flows
FOR THE YEAR ENDED 30 JUNE 2021
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Net cash flows from operating activities
Cash flows from investing activities
Proceeds from sale of non-trade inventory, plant and equipment
Purchase of plant and equipment
Product development costs
R&D tax rebate received
Net cash flows from investing activities
Cash flows from financing activities
Proceeds from borrowings
Repayment of loans and borrowings
Proceeds from asset finance leases
Repayment of lease liabilities
Dividends paid (net of Dividend Reinvestment Plan shares)
Share issue costs (Dividend Reinvestment Plan shares)
Interest received
Interest paid
Net cash flows from financing activities
Net increase/(decrease) in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at end of period
The accompanying notes form part of these financial statements
Notes
CONSOLIDATED
2021
$
2020
$
14,786,471
(13,273,385)
1,513,086
18,651,456
(16,386,466)
2,264,990
1,132,722
(2,317,687)
(470,289)
-
(1,655,254)
498,206
(723,564)
521,512
(281,702)
(119,786)
(4,121)
71
(260,129)
(369,513)
(511,681)
1,257,468
745,787
145,850
(741,787)
(82,866)
351,850
(326,953)
-
(701,500)
-
(222,725)
-
-
5,041
(290,616)
(1,209,800)
728,237
529,231
1,257,468
8
8
27
SAFEROADS.COM.AU 1. CORPORATE INFORMATION
Saferoads Holdings Limited is a company limited by shares incorporated in Australia whose shares are publicly traded on the
Australian Securities Exchange (ASX).
2. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES
(a) Basis of preparation
The financial report is a general purpose financial report which is prepared in accordance with Australian Accounting Standards,
Australian Accounting Interpretations of the authoritative pronouncements of the Australian Accounting Standards Board and the
Corporations Act 2001. The financial report has also been prepared on a historical cost basis.
Saferoads Holdings Limited is a for-profit entity for the purposes of preparing the financial statements.
(b) Statement of compliance
The financial report has been prepared in accordance with the requirements of the Corporations Act 2001, Australian Accounting
Standards and other authoritative pronouncements of the Australian Accounting Standards Board (AASB). Compliance with Australian
Accounting Standards results in full compliance with the International Financial Reporting Standards (IFRS) as issued by the
International Accounting Standards Board (IASB).
New and revised standards that are effective for these financial statements
During the financial year, the International Financial Reporting Interpretations Committee (IFRIC) identified that various approaches
to customisation and configuration costs for cloud computing arrangements were utilised by companies depending on internal
policy. These policies varied from expensing all costs in full to capitalisation of all costs in full, with most entities taking a more
nuanced approach in their capitalisation policy and differentiating between expenditure with different underlying fact patterns. The
Agenda Decision requires that management capitalise those elements of expenditure that meet the definition of an “Intangible
Asset” as defined by AASB 138 Intangible Assets and recognise any additional amounts as an expense as the entity benefits from
the expenditure – either by applying AASB 138 or applying another accounting standard. The impact of this decision has not had a
material impact on the consolidated entity’s financial statements.
The group has adopted all of the other new or amended Accounting Standards and Interpretations issued by the Australian
Accounting Standard Board (‘AASB’) that were mandatory for the 30 June 2021 reporting period. Other new accounting standards and
interpretations published but not yet mandatory for the 30 June 2021 reporting period have not been early adopted by the group.
The group’s initial assessment of the impact of these standards and interpretations is that there will be no material impact upon future
application.
The financial statements were authorised for issue by the Directors on 30 August 2021. The Directors have the power to amend and
reissue the financial statements.
(c) Basis of consolidation
The consolidated financial statements comprise the financial statements of the legal parent entity, Saferoads Holdings Limited and its
subsidiaries (‘the Group’). The separate financial statements of the parent entity have not been presented within this financial report
as permitted by the Corporations Act 2001.
The financial statements of subsidiaries are prepared for the same reporting period as the parent company, using consistent
accounting policies. Adjustments are made to bring into line any dissimilar accounting policies that may exist.
All intercompany balances and transactions, including unrealised profits arising from intra-group transactions, have been eliminated in
full.
Subsidiaries are consolidated from the date on which control is transferred to the Group and cease to be consolidated from the date
on which control is transferred out of the Group.
Where there is loss of control of a subsidiary, the consolidated financial statements include the results for the part of the reporting
period during which Saferoads Holdings Limited has control.
28
SAFEROADS.COM.AUSaferoads Holdings LimitedNotes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2021 (d) Foreign currency translation
Functional and presentation currency
The functional currency of each of the Group’s entities is measured using the currency of the primary economic environment in which
that entity operates. The consolidated financial statements are presented in Australian dollars which is the parent entity’s functional
and presentation currency.
Transactions and balances
Foreign currency transactions are translated into functional currency using the exchange rates prevailing at the date of the transaction.
Foreign currency monetary items are translated at the year end exchange rate. Non monetary items measured at historical cost
continue to be carried at the exchange rate at the date of the transaction. Non monetary items measured at fair value are reported
at the exchange rate at the date when fair values were determined.
Exchange differences arising on the translation of monetary items are recognised in the statement of profit or loss and other
comprehensive income, except where deferred in equity as a qualifying cash flow or net investment hedge.
Exchange differences arising on the translation of monetary items are recognised directly in equity to the extent that the gain or
loss is directly recognised in equity, otherwise the exchange difference is recognised in the statement of profit or loss and other
comprehensive income.
Group companies
The financial results and position of foreign operations whose functional currency is different from the Group’s presentation currency
are translated as follows:
• Assets and liabilities are translated at year end exchange rates prevailing at that reporting date;
• Income and expenses are translated at average exchange rates for the period; and
• Retained earnings are translated at the exchange rates prevailing at the date of the transaction.
Exchange differences arising on the translation of foreign operations are transferred directly to the Group’s foreign currency
translation reserve in the statement of financial position. These differences are recognised in the statement of profit or loss and other
comprehensive income in the period in which the operation is disposed.
(e) Property, plant and equipment
Property, plant and equipment are stated at cost less any accumulated depreciation and any impairment in value.
Depreciation is calculated on a diminishing value basis or prime cost method, over the estimated useful life, as denoted below:
• Property/leasehold improvements (prime cost - 10% to 50%)
• Plant and equipment (diminishing value and prime cost - 5% to 50%)
• Motor vehicles (diminishing value - 18% to 25%)
• Rental equipment (prime cost - 5% to 33%)
(f) Borrowing costs
Borrowing costs are recognised as an expense when incurred.
(g) Impairment of non-financial assets other than goodwill
The Group assesses whether there is any indication that an asset may be impaired when events or changes in circumstances
indicate the carrying value may not be recoverable. Where an indicator of impairment exists, the Group makes a formal estimate of
recoverable amount. Where the carrying amount of an asset exceeds its recoverable amount the asset is considered impaired and is
written down to its recoverable amount.
29
SAFEROADS.COM.AUSaferoads Holdings LimitedNotes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2021 Recoverable amount is the greater of fair value less costs to sell and value in use. It is determined for an individual asset, unless the
asset’s value in use cannot be estimated to be close to its fair value less costs to sell and it does not generate cash inflows that are
largely independent of those from other assets or groups of assets, in which case, the recoverable amount is determined for the cash-
generating unit to which the asset belongs.
In assessing value in use, the estimated future cash flows are discounted to their present value using a pre-tax discount rate that
reflects current market assessments of the time value of money and the risks specific to the asset.
(h) Goodwill and intangible assets
Goodwill
Goodwill acquired in a business combination is initially measured at cost being the excess of the cost of the business combination
over the group’s interest in the fair value of the acquiree’s identifiable assets, liabilities and contingent liabilities.
Following initial recognition, goodwill is measured at cost less any accumulated impairment losses.
For the purpose of impairment testing, goodwill acquired in a business combination is, from the acquisition date, allocated to each
of the group’s cash-generating units, or groups of cash-generating units, that are expected to benefit from the synergies of the
combination, irrespective of whether other assets or liabilities of the group are assigned to those units or groups of units. Each unit or
group of units to which the goodwill is so allocated :
• Represents the lowest level within the group at which the goodwill is monitored for internal management purposes, and
• Is not larger than a segment based on either the group’s primary or the group’s secondary reporting format determined in
accordance with AASB 8 Operating Segments.
Impairment is determined by assessing the recoverable amount of the cash-generating unit (group of cash-generating units), to which
the goodwill relates. When the recoverable amount of the cash-generating unit (group of cash-generating units) is less than the
carrying amount, an impairment loss is recognised. When goodwill forms part of the cash-generating unit (group of cash-generating
units) and an operation within that unit is disposed of, the goodwill associated with the operation disposed of is included in the
carrying amount of the operation when determining the gain or loss on disposal of the operation. Goodwill disposed of in this manner
is measured based on the relative values of the operation disposed of and the portion of the cash-generating unit retained.
Intangibles
Intangible assets acquired separately are capitalised at cost and from a business combination are capitalised at fair value as at the
date of acquisition. Following initial recognition, the cost model is applied to the class of intangible.
The useful lives of these intangible assets are assessed to be either finite (10 years) or indefinite.
Where amortisation is charged on assets with finite lives, this expense is taken to the statement of profit or loss and other
comprehensive income through the amortisation line item.
Intangible assets, excluding development costs, created within the business are not capitalised and expenditure is charged against
profits in the period in which the expenditure is incurred.
Intangible assets are tested for impairment where an indicator of impairment exists, and in the case of indefinite life intangibles
annually, either individually or at the cash generating unit level. Useful lives are also examined on an annual basis and adjustments,
where applicable, are made on a prospective basis.
Research and development costs
Research costs are expensed as incurred.
Development expenditure incurred on an individual project is carried forward when its future recoverability can reasonably be
regarded as assured.
Following the initial recognition of the development expenditure, the cost model is applied requiring the asset to be carried at cost
30
SAFEROADS.COM.AUSaferoads Holdings LimitedNotes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2021 less any accumulated amortisation and accumulated impairment losses.
Any expenditure carried forward is amortised over the period of expected future sales from the related project.
The carrying value of each development project is reviewed for impairment annually when the asset is not yet in use, or more
frequently when an indicator of impairment arises during the reporting year indicating that the carrying value may not be recoverable.
Gains or losses arising from derecognition of an intangible asset are measured as the difference between the net disposal proceeds
and the carrying amount of the asset and are recognised in the statement of profit or loss and other comprehensive income when the
asset is derecognised.
Any Research and Development tax rebates received or receivable are offset against the respective capitalised development costs to
the extent to which they relate to the claim.
(i) Inventories
Inventories are valued at the lower of cost and net realisable value.
Costs incurred in bringing each product to its present location and condition are accounted for as follows:
• Raw materials: purchase cost on a first-in, first-out basis;
• Finished goods and work-in-progress: cost of direct materials and labour and a proportion of manufacturing overheads based on
normal operating capacity but excluding borrowing costs.
Net realisable value is the estimated selling price in the ordinary course of business, less estimated costs of completion and the
estimated costs necessary to make the sale.
(j) Trade and other receivables
The Group makes use of a simplified approach in accounting for trade and other receivables and records the loss allowance at the
amount equal to the expected lifetime credit losses. In using this practical expedient, the Group uses its historical experience, external
indicators and forward-looking information to calculate the expected credit losses using a provision matrix. The Group assesses
impairment of trade receivables on a collective basis as they possess credit risk characteristics based on the days past due.
An estimate for doubtful debts is made when collection of the full amount is no longer probable. Bad debts are written off when
identified.
(k) Cash and cash equivalents
Cash in the statement of financial position comprises cash at bank and on hand.
For the purposes of the statement of cash flows, cash and cash equivalents consist of cash and cash equivalents as defined above,
net of any outstanding bank overdrafts.
(l) Assets classified as held for sale
Assets are classified as held for sale and measured at the lower of their carrying amount and fair value less costs to sell if their
carrying amount will be recovered principally through a sale transaction. They are not depreciated or amortised. For an asset to be
classified as held for sale it must be available for immediate sale in its present condition and its sale must be highly probable.
(m) Interest-bearing loans and borrowings
All loans and borrowings are initially recognised at cost, being the fair value of the consideration received net of issue costs
associated with the borrowing.
Interest expense is recognised as it accrues.
After initial recognition, interest-bearing loans and borrowings are subsequently measured at amortised cost using the effective
interest method.
Gains and losses are recognised in the statement of profit or loss and other comprehensive income when the liabilities are
derecognised as well as through the amortisation process.
31
SAFEROADS.COM.AUSaferoads Holdings LimitedNotes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2021 (n) Leases
For any new contracts entered into, the Group considers whether a contract is, or contains a lease. A lease is defined as ‘a contract,
or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for consideration’.
To apply this definition the Group assesses whether the contract meets three key evaluations which are whether:
• the contract contains an identified asset, which is either explicitly identified in the contract or implicitly specified by being identified
at the time the asset is made available to the Group
• the Group has the right to obtain substantially all of the economic benefits from use of the identified asset throughout the period of
use, considering its rights within the defined scope of the contract
• the Group has the right to direct the use of the identified asset throughout the period of use. The Group assess whether it has the
right to direct ‘how and for what purpose’ the asset is used throughout the period of use.
At lease commencement date, the Group recognises a right-of-use asset and a lease liability on the balance sheet. The right-of-
use asset is measured at cost, which is made up of the initial measurement of the lease liability, any initial direct costs incurred by
the Group, an estimate of any costs to dismantle and remove the asset at the end of the lease, and any lease payments made in
advance of the lease commencement date (net of any incentives received).
The Group depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the earlier of the end
of the useful life of the right-of-use asset or the end of the lease term. The Group also assesses the right-of-use asset for impairment
when such indicators exist.
At the commencement date, the Group measures the lease liability at the present value of the lease payments unpaid at that date,
discounted using the interest rate implicit in the lease if that rate is readily available or the Group’s incremental borrowing rate.
Lease payments included in the measurement of the lease liability are made up of fixed payments (including in substance fixed),
variable payments based on an index or rate, amounts expected to be payable under a residual value guarantee and payments
arising from options reasonably certain to be exercised.
Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is remeasured to
reflect any reassessment or modification, or if there are changes in in-substance fixed payments.
The Group has elected to account for short-term leases and leases of low-value assets using the practical expedients. Instead of
recognising a right-of-use asset and lease liability, the payments in relation to these are recognised as an expense in profit or loss on
a straight-line basis over the lease term.
(o) Provisions
Provisions are recognised when the Group has a present obligation (legal and constructive) as a result of a past event, it is probable
that an outflow of resources embodying economic benefits will be required to settle the obligation and a reliable estimate can be
made of the amount of the obligation.
Where the Group expects some or all of a provision to be reimbursed, for example under an insurance contract, the reimbursement
is recognised as a separate asset but only when the reimbursement is virtually certain. The expense relating to any provision is
presented in the statement of profit or loss and other comprehensive income net of any reimbursement.
If the effect of the time value of money is material, provisions are determined by discounting the expected future cash flows at a pre-
tax rate that reflects current market assessments of the time value of money and, where appropriate, the risks specific to the liability.
(p) Contributed equity
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.
32
SAFEROADS.COM.AUSaferoads Holdings LimitedNotes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2021 (q) Revenue
To determine whether to recognise revenue, the Group follows a 5-step process:
1. Identifying the contract with a customer
2. Identifying the performance obligations
3. Determining the transaction price
4. Allocating the transaction price to the performance obligations
5. Recognising revenue when/as performance obligation(s) are satisfied
In all transactions, the total price for a contract is allocated amongst the various performance obligations based on their relative
stand- alone selling prices. The transaction price for a contract excludes any amounts collected on behalf of third parties.
Revenue is recognised either at a point in time or over time, when (or as) the Group satisfies performance obligations by transferring
the promised goods or services to its customers.
The Group’s future obligation to transfer goods or services to a customer for which the Group has received consideration from the
customer is recognised as a contract liability, and reports these amounts as such in its statement of financial position, until such time
as the performance obligations are satisfied. If the Group satisfies a performance obligation before it receives the consideration, the
Group recognises either a contract asset or a receivable in its statement of financial position, depending on whether something other
than the passage of time is required before the consideration is due.
Sales of goods
Revenue from sales of goods for a fixed fee with no significant service obligation is recognised when or as the Group has transferred
control of the assets to the customer. Control of the asset is considered to transfer to the buyer at the time of delivery of the goods to
the customer.
Rendering of services
The Group rents its equipment to customers and recognises revenue over time based on fixed daily rental rates. Revenue for these
transactions is therefore recognised over time based on monthly billing in arrears for rental services provided. In this respect, the
Group has a right to the consideration and the amount billed corresponds directly with the value to the customer for the Group’s
performance completed to date. If a product is returned before month end, revenue is recognised when returned for the period it has
been rented. Customers are charged a fee for the deployment to site and the demobilisation of the rental unit. Lease components are
recognised separately from performance revenue.
(r) Income Tax
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or paid
to taxation authorities based on the current period’s taxable income. The tax rates and tax laws used to compare the amount are
those that are enacted by the reporting date.
Deferred income tax assets are recognised for all deductible temporary differences, carry-forward or unused tax assets and unused
tax losses, to the extent that it is probable that taxable profit will be available against which the deductible temporary differences,
and future unused tax assets and unused tax losses can be utilised.
The carrying amount of deferred income tax assets is reviewed at each reporting date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred income tax asset to be utilised.
Deferred income tax assets are measured at the tax rates that are expected to apply to the year when the asset is realised, based
on tax rates (and tax laws) that have been enacted or substantively enacted at the reporting date.
33
SAFEROADS.COM.AUSaferoads Holdings LimitedNotes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2021 (s) Other taxes
Revenues, expenses and assets are recognised net of the amount of GST except:
• where the GST incurred on a purchase of goods and services is not recoverable from the taxation authority, in which case the GST
is recognised as part of the cost of acquisition of the asset or as part of the expense item as applicable; and
• receivables and payables are stated with the amount of GST included.
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or payables in the
statement of financial position.
Cash flows are included in the statement of cash flows on a gross basis and the GST component of cash flows arising from the
investing and financing activities, which is recoverable from, or payable to, the taxation authority are classified as operating cash
flows.
Commitments and contingencies are disclosed net of the amount of GST recoverable from, or payable to, the taxation authority.
(t) Employee benefits
Provision is made for the Group’s liability for employee benefits arising from services rendered by employees to reporting date.
Employee benefits expected to be settled wholly within one year have been measured at the amounts expected to be paid when the
liability is settled plus related on-costs. All other employee benefit liabilities are measured at the present value of the estimated future
cash outflows to be made for those benefits.
(u) Trade and other payables
Trade payables and other payables represent liabilities for goods and services provided to the Group prior to the end of the financial
year that are unpaid and arise when the Group becomes obliged to make future payments in respect of the purchase of these goods
and services.
(v) Derivative Financial Instruments
The group may use derivative financial instruments such as forward currency contracts to hedge risks associated with foreign currency
fluctuations. Such derivative financial instruments are initially recognised at fair value at the date on which the derivative contract is
entered into and are subsequently remeasured to fair value. Derivatives are carried as assets when the fair value is positive and as
liabilities when their fair value is negative. Any gains or losses arising from changes in the fair value of derivatives are taken directly
to the statement of profit or loss and other comprehensive income for the year.
(w) Critical Accounting Estimates and Judgements
The Directors evaluate estimates and judgements incorporated into the financial report based on historical knowledge and best
available current information. Estimates assume a reasonable expectation of future events and are based on current trends and
economic data, obtained both externally and within the Group.
Key Judgements
(i) Provision for impairment of receivables
Collectability of Trade Receivables is reviewed on an ongoing basis. Debts which are known to be uncollectable are written off by
reducing the carrying amount directly. A provision for impairment is established when there is objective evidence that the company
will not be able to collect all amounts due according to the original terms of the receivables.
(ii) Intangible assets - capitalised development costs
Development expenditure incurred on an individual project is carried forward when its future recoverability can reasonably be
regarded as assured. Determining whether the recognition requirements for the capitalisation of these development costs are met
requires judgement. After capitalisation, management monitors whether the recognition requirements continue to be met and whether
there are any indicators that capitalised costs may be impaired.
34
SAFEROADS.COM.AUSaferoads Holdings LimitedNotes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2021 (iii) Recognition of deferred tax assets
The extent to which deferred tax assets can be recognised is based on an assessment of the probability that future taxable income
will be available against which the deductible temporary differences and tax loss carry-forwards can be utilised.
(iv) Going concern - COVID-19 pandemic
The financial statements have been prepared on the basis that the Consolidated entity is a going concern, which assumes that in the
medium term the Company will continue normal business activities and the realisation of assets and the settlement of liabilities in the
ordinary course of business.
The COVID-19 global pandemic continues to impact domestic and international economies. The degree and duration of the financial
impact on the activities and financial position of the Company is presently unknown as it is very difficult to assess. The Company will
continue to monitor the COVID-19 situation and react accordingly to protect its employees, assets and shareholder interests.
Whilst the current trading environment has been impacted by numerous State and Federal government COVID-19 lockdowns and
restrictions, the Company is still servicing demand for critical and essential infrastructure construction.
The Company has the ability to scale back the business where necessary, if the economic conditions worsen, however it is the
Directors’ current view that governments historically have responded to past recessionary situations with significant investments in
public infrastructure and the Company is well-placed to provide its products and services in support of this investment going forward.
At the date of this report, the Company has a strong liquidity position and has support from its primary financier.
(x) Government grants
Grants from the government are recognised at their fair value where there is a reasonable assurance that the grant will be received
and the group will comply with all the attached conditions.
Government grants relating to costs are deferred and recognised in the profit or loss over the period necessary to match them with
the costs that they are intended to compensate.
Government grants relating to cash subsidies are recognised in the profit or loss as other income.
(y) Prior period restatement
During the year, the Group determined that some financing arrangements previously included as Lease liabilities in the prior year
are more accurately classified as Interest-bearing loans and borrowings. These liabilities have been corrected in the current year
and comparative figures have been adjusted to conform to changes in the presentation. The impact on the consolidated statement
of financial position in the prior year is a $1,532,000 decrease in lease liabilities ($485,652 current and $1,046,348 non-current) and a
corresponding increase in interest-bearing loans and borrowings.
3. SEGMENT INFORMATION
The Group’s chief operating decision maker (Chief Executive Officer) reviews financial information on a consolidated basis and makes
strategic decisions based on this consolidated information.
The Group operates predominantly in Australia.
No single customer represented greater than 10% of the Group’s revenues in 2021 (2020: $1,653,023 or 10%).
35
SAFEROADS.COM.AUSaferoads Holdings LimitedNotes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2021 4. REVENUES AND EXPENSES
Specific Items
Profit/(loss) before income tax expense includes the following revenues and expenses whose disclosure is relevant in explaining the
performance of the entity:
(i) Revenue
Revenue from product sales - point in time
Revenue from provision of services - over time
(ii) Other income
Net gain/(loss) on sale of assets (1)
Interest
Government grant (COVID-19 Cash Boost)
Net foreign exchange gains/(losses)
Other
CONSOLIDATED
2021
$
2020
$
9,654,592
3,595,592
12,770,525
3,726,425
13,250,184
16,496,950
(22,690)
71
50,000
(36,574)
3,801
(5,392)
15,947
5,041
50,000
(41,064)
3,731
33,655
13,244,792
16,530,605
(1) Included in Net gain/(loss) on sale of assets is the net loss on sale of the Ongrid lighting product portfolio.
On 9 February 2021 the Company disposed of certain assets pertaining to its former Ongrid lighting product portfolio for gross
proceeds of $1,062,044, realising a minor loss before tax of $56,878, after selling costs. Breakdown of the transaction is as follows:
Fair value of assets disposed
Inventories
Property, plant and equipment
Intangible assets
Proceeds received from sale
less: Selling costs
Net (loss) on sale of Ongrid lighting product portfolio
984,061
56,491
21,370
1,061,922
1,062,044
122
(57,000)
(56,878)
36
SAFEROADS.COM.AUSaferoads Holdings LimitedNotes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2021 (iii) Expenses
Depreciation and amortisation
- Property, plant & equipment
- Right-of-use assets
- Intangible assets
Impairment of plant and equipment
Finance costs
- Bank borrowings
- Leasing arrangements
Bad debts written off
Provision (writeback) for doubtful debts
2021
$
2020
$
718,856
292,715
200,541
614,351
240,866
227,926
1,212,112
1,083,143
-
47,083
66,546
193,583
260,129
-
-
95,012
195,604
290,616
60,920
16,030
During the year, the Company was a recipient of a wage subsidy provided by the Australian Federal government in response to the
COVID-19 pandemic. An amount of $324,000 (2020: $318,000) is included as an offset in Employee benefits expense.
37
SAFEROADS.COM.AUSaferoads Holdings LimitedNotes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2021 5. INCOME TAX
Major components of income tax expense for the year ended 30 June 2021 are:
CONSOLIDATED
2021
$
2020
$
Statement of Profit or Loss and Other Comprehensive
income
Current income tax charge/(benefit)
46,104
69,156
Income tax expense/(benefit) reported in statement of profit
or loss and other comprehensive income
46,104
69,156
A reconciliation of income tax expense applicable to
accounting profit/(loss) before income tax at the statutory
income tax rate to income tax expense at the Group’s
effective income tax rate is as follows:
Accounting profit/(loss) before income tax
581,277
590,185
At the statutory income tax rate of (2021: 26%; 2020: 27.5%)
151,132
162,301
Non-deductible expenses
Recognition of prior year unbooked tax losses
22
(105,050)
46,104
1,812
(94,957)
69,156
Deferred income tax
Deferred income tax at 30 June relates to the following:
CONSOLIDATED
Deferred income tax asset/(liability)
Employee entitlements
Capitalised Research & Development Costs
Other
Deferred tax assets relating to other temporary differences
Carry forward tax losses brought to account
Gross deferred income tax (liability)/asset
Deferred income tax charge
Statement of Financial
Position
Statement of Profit or Loss and
Other Comprehensive Income
2021
$
2020
$
2021
$
2020
$
93,032
98,886
(289,627)
(270,351)
4,168
192,427
15,552
155,913
1,152,593
1,198,697
1,152,593
1,198,697
5,854
19,276
11,384
(141,564)
105,050
39,835
(99,398)
(4,408)
(30,986)
94,957
-
-
As as 30 June 2021, the consolidated entity has carry forward tax losses with a tax effect of $1,712,885, measured at the new
corporate tax rate of 25%. Carry forward tax losses with a tax effect of $1,152,593 (2020: $1,198,697) have been brought to account
as a deferred tax asset. Carry forward tax losses with a tax effect of $560,292 relating to a prior year have not been brought to
account.
The consolidated entity has realised capital losses with a gross amount of $1,832,149 that is available for offset against any future
taxable capital gains.
38
SAFEROADS.COM.AUSaferoads Holdings LimitedNotes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2021 6. EARNINGS PER SHARE
Basic earnings per share amounts are calculated by dividing net profit/(loss) for the year attributable to ordinary equity holders of the
parent by the weighted average number of ordinary shares outstanding during the year.
Diluted earnings per share amounts are calculated by dividing the net profit/(loss) attributable to ordinary shareholders by the
weighted average number of ordinary shares outstanding during the year (adjusted for the effects of dilutive options).
The following reflects the income and share data used in the total operation’s basic and diluted earnings per share computations:
CONSOLIDATED
2021
$
2020
$
Net profit/(loss) attributable to equity holders from continuing operations
Net profit/(loss) attributable to equity holders of the parent
535,173
535,173
521,029
521,029
Net profit/(loss) attributable to ordinary shareholders for diluted earnings per share
535,173
521,029
Weighted average number of ordinary shares for basic earnings per share
Adjusted weighted average number of ordinary shares for diluted earnings per share
37,048,706
37,048,706
36,400,000
36,400,000
- Basic for profit/(loss) for the full year
- Diluted for profit/(loss) for the full year
Cents
1.44
1.44
Cents
1.43
1.43
For the purpose of calculating earnings and dividends per share, it is the ordinary shares of the legal parent that is used, being the
proportionate weighting of the 37,461,783 (2020: 36,400,000) shares on issue.
7. DIVIDENDS PAID AND PROPOSED
CONSOLIDATED
2021
$
2020
$
Equity dividends on ordinary shares:
Interim franked dividend paid for 2021: 1.0 cent (2020: 0.0 cents)
364,000
Dividends proposed and not recognised as a liability:
Final franked dividend for 2021: 0.0 cents (2020: 0.0 cents)
-
-
-
Franking Credit Balance:
The amount of franking credits available for future reporting periods after the payment of
income tax payable and the impact of dividends proposed.
3,655,178
4,134,941
39
SAFEROADS.COM.AUSaferoads Holdings LimitedNotes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2021 8. NOTES TO THE STATEMENT OF CASH FLOWS
CONSOLIDATED
2021
$
2020
$
Reconciliation of cash
For the purposes of the statement of cash flows, cash and cash equivalents comprise the
following at 30 June:
Cash at bank and on hand
745,787
1,257,468
Reconciliation from the net profit/(loss) after tax to the net cash flows from
operations
Profit/(loss) after tax for the year
535,173
521,029
Adjustments for:
Depreciation and amortisation
Net (profit)/loss on disposal of plant and equipment
Impairment of assets
Bad and doubtful debts
Interest received
Interest paid
Changes in assets and liabilities
(Increase)/decrease in trade and other receivables
(Increase)/decrease in inventories
(Increase)/decrease in other assets
Decrease/(increase) in deferred tax asset
(Decrease)/increase in trade and other payables
(Decrease)/increase in contract liabilities
(Decrease)/increase in provisions
Net cash from operating activities
Non-cash financing and investing activities
1,212,112
22,690
-
-
(71)
260,129
230,282
(665,573)
(139,945)
46,104
200,684
(186,731)
(1,768)
1,083,143
(15,947)
47,083
76,950
(5,041)
290,616
610,423
273,571
(58,697)
69,156
(606,641)
124,201
(144,856)
1,513,086
2,264,990
During the year, the Group acquired plant and equipment (excluding right-of-use assets) with an aggregate value of $1,358,467
(2020:$157,480) by means of leases.
40
SAFEROADS.COM.AUSaferoads Holdings LimitedNotes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2021 CONSOLIDATED
2021
$
1,510,784
56
(16,030)
1,494,810
900,487
517,935
60,018
16,314
2020
$
1,622,174
118,948
(16,030)
1,725,092
986,630
547,264
70,647
1,603
1,494,754
1,606,144
16,030
-
-
16,030
-
-
16,030
16,030
CONSOLIDATED
2021
$
2020
$
2,660,122
3,057,902
9. TRADE AND OTHER RECEIVABLES (CURRENT)
Trade receivables
Other receivables
Provision for impairment
Ageing of trade receivables not impaired
1 - 30 days
31 - 60 days
61 - 90 days
91 days and over
Trade receivables are non-interest bearing.
Movement in provision for impairment
Balance at the beginning of financial year
Amounts written off
Additional impairment provision recognised/(released)
10. INVENTORIES
INVENTORIES
Stock on hand
41
SAFEROADS.COM.AUSaferoads Holdings LimitedNotes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2021 11. PROPERTY, PLANT AND EQUIPMENT
Property, plant & equipment at cost
Less accumulated depreciation
Total plant & equipment
Movements in Carrying Amounts
Balance at 1 July 2019
Additions
Depreciation expense
Disposals
Assets transferred to inventories
Impairment
Property/
Leasehold
improvements
$
1,404,853
3,123
(253,206)
-
-
-
Carrying amount at 30 June 2020
1,154,770
Balance at 1 July 2020
Additions
Depreciation expense
Disposals
Assets transferred from inventories
Impairment
1,154,770
571,826
(289,877)
-
-
-
CONSOLIDATED
2021
$
2020
$
12,179,153
10,079,373
(4,065,122)
(4,129,280)
8,114,031
5,950,093
Plant &
equipment
Motor
vehicles
Rental
equipment
Total
$
$
$
591,843
3,279,255
5,982,324
-
953,950
1,005,744
(101,154)
(122,373)
-
-
(369,488)
(4,694)
(5,772)
-
(855,217)
(129,903)
(5,772)
(47,083)
368,316
3,853,251
5,950,093
368,316
3,853,251
5,950,093
5,000
2,386,151
3,189,198
(89,069)
(496,070)
(1,011,571)
-
-
-
(23,498)
74,292
-
(92,981)
79,292
-
$
706,373
48,671
(131,369)
(2,836)
-
(47,083)
573,756
573,756
226,221
(136,555)
(69,483)
5,000
-
Carrying amount at 30 June 2021
1,436,719
598,939
284,247
5,794,126
8,114,031
Included in the net carrying amount of Property, plant and equipment are right-of-use assets as follows:
Net carrying
amount b/f
$
1,287,695
20,303
1,307,998
Net carrying
amount b/f
Additions
Depreciation
$
-
-
-
$
(230,714)
(10,152)
(240,866)
Additions
Depreciation
Net carrying
amount
$
1,056,981
10,151
1,067,132
Net carrying
amount
$
$
$
$
1,056,981
544,620
(264,180)
1,337,421
10,151
-
-
521,512
(10,151)
(18,384)
-
503,128
1,067,132
1,066,132
(292,715)
1,840,549
2020
Property
Plant & equipment
Total right-of-use assets
2021
Property
Plant & equipment
Equipment under finance lease
Total right-of-use assets
42
SAFEROADS.COM.AUSaferoads Holdings LimitedNotes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2021
12. INTANGIBLE ASSETS
Product development costs
Less accumulated amortisation
Website development costs
Less accumulated amortisation
Patents and product approvals
Less accumulated amortisation
CONSOLIDATED
2021
$
2020
$
1,843,556
(729,607)
1,113,949
56,427
(50,014)
6,413
335,386
(59,210)
276,176
1,559,516
(576,422)
983,094
56,427
(34,137)
22,290
301,622
(34,384)
267,238
1,396,538
1,272,622
Movement in carrying amounts
Website dev’t
costs
Patents/Product
approvals
Product dev’t
costs
Balance at 1 July 2019
Capitalisation of costs
R&D tax rebate allocation
Amortisation expense
Carrying amount at 30 June 2020
Balance at 1 July 2020
Capitalisation of costs
Disposals
Amortisation expense
Carrying amount at 30 June 2021
$
$
33,340
7,350
-
(18,400)
22,290
22,290
-
-
(15,877)
6,413
264,350
37,272
-
(34,384)
267,238
267,238
61,787
(21,370)
(31,479)
276,176
$
1,344,541
38,244
(224,549)
(175,142)
983,094
983,094
284,040
-
(153,185)
1,113,949
Total
$
1,642,231
82,866
(224,549)
(227,926)
1,272,622
1,272,622
345,827
(21,370)
(200,541)
1,396,538
Patents/product approvals predominantly relate to various applications for new products that have yet to be commercialised. Once
the related asset is in use, then the relevant patent/product approval will be amortised over its expected useful life.
13. TRADE AND OTHER PAYABLES (CURRENT)
Trade payables
Accrued expenses
GST payable
Payables are non-interest bearing and are normally settled between 30 and 60-day terms.
43
CONSOLIDATED
2021
$
2020
$
1,650,612
310,487
30,115
1,991,214
1,556,024
237,712
63,190
1,856,926
SAFEROADS.COM.AUSaferoads Holdings LimitedNotes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2021 14. INTEREST-BEARING LOANS AND BORROWINGS
Current
Bank loans
Borrowings for asset finance
Non-current
Bank loans
Borrowings for asset finance
CONSOLIDATED
2021
$
2020
$
165,826
668,554
834,380
1,348,223
1,109,211
2,457,434
155,347
485,652
640,999
1,502,934
1,046,348
2,549,282
Financing facilities available
At reporting date, the Company had the following financing facilities provided by
Commonwealth Bank available:
CONSOLIDATED
2021
$
2020
$
Total facilities:
- term loan
- asset finance
- overdraft
- bank charge card
Facilities used at reporting date
- term loan
- asset finance
- overdraft
- bank charge card
Facilities unused at reporting date
- asset finance
- overdraft
- bank charge card
1,514,049
1,500,000
500,000
75,000
3,589,049
1,514,049
1,108,125
-
55,000
2,677,174
391,875
500,000
20,000
911,875
1,658,281
-
500,000
75,000
2,233,281
1,658,281
-
-
40,000
1,698,281
-
500,000
35,000
535,000
The bank facilities are secured by a registered charge over certain assets and undertakings, and also a registered charge over the
assets and undertakings of Saferoads Holdings Ltd.
The term loan facility matures in December 2024.
The Group was in compliance with its facility covenants at 30 June 2021. Pursuant to the finance facility agreement, the Company is
required to provide the Commonwealth Bank with six-monthly financial information.
Since the end of the financial year, the Company has drawn down a further $404,730 under its existing asset finance facility with
Commonwealth Bank for the procurement of further equipment rental assets to fulfill a new rental contract.
44
SAFEROADS.COM.AUSaferoads Holdings LimitedNotes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2021
15. LEASE LIABILITIES
Current
Right-of-use asset leases
Non-current
Right-of-use asset leases
CONSOLIDATED
2021
$
2020
$
480,527
480,527
241,076
241,076
1,568,654
1,568,654
1,024,741
1,024,741
Hire purchase liabilities are secured by a charge over the related non-financial assets.
Lease payments not recognised as a liability
The Group has elected not to recognise a lease liability for short term leases (leases with an expected term of 12 months or less)
or for leases of low value assets. Payments made under such leases are expensed on a straight-line basis.
The expense relating to payments not included in the measurement of the lease liability is as follows:
Short-term leases
Leases of low value assets
2021
$
2020
$
12,300
6,589
18,889
-
6,468
6,468
The Group leases its head office and warehouse facility and other warehouse sites with terms ranging from 3 to 10 years.
There are no material make good obligations with leases, individually or in the aggregate.
The Group has leases for the main warehouse and related facilities, an office and production building, equipment rental assets,
company motor vehicles, production equipment and office equipment. With the exception of short-term leases and leases of low-value
underlying assets, each lease is reflected on the balance sheet as a right-of-use asset and a lease liability. The Group classifies its
right-of-use assets in a consistent manner to its property, plant and equipment (see Note 11).
There are no other commitments or contingent liabilities of the Group.
45
SAFEROADS.COM.AUSaferoads Holdings LimitedNotes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2021 16. PROVISIONS
Current
Employee benefits
Non-Current
Employee benefits
17. EQUITY
Contributed Equity
Ordinary shares
Balance at beginning of period
Dividend Reinvestment Plan
Share issue costs
Issued and fully paid
Movements in ordinary shares on issue (legal parent)
Balance at beginning of the period
Shares issued under Dividend Reinvestment Plan
At 30 June
CONSOLIDATED
2021
$
2020
$
315,276
315,276
312,593
312,593
42,540
42,540
46,991
46,991
CONSOLIDATED
2021
$
2020
$
5,353,905
5,353,905
244,214
(4,121)
-
-
5,593,998
5,353,905
No. of shares
36,400,000
1,061,783
37,461,783
36,400,000
-
36,400,000
Ordinary shares carry one vote per share, either in person or by proxy, at a meeting of the Company, and carry the rights to
dividends and the proceeds on winding up of the parent entity in proportion to the number of shares held.
There is no current on-market buy-back of ordinary shares.
Retained Earnings
Movements in retained earnings are as follows:
Balance at beginning of period
Net profit for the year
Less: Dividend paid (refer note 7)
Balance at 30 June
46
CONSOLIDATED
2021
$
2020
$
2,508,638
535,173
(364,000)
2,679,811
1,987,609
521,029
-
2,508,638
SAFEROADS.COM.AUSaferoads Holdings LimitedNotes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2021
18. FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES
The Group’s principal financial instruments comprise a term loan, lease liabilities, cash and short-term deposits. The main purpose of
these financial instruments is to raise finance for the Group’s operations.
The totals for each category of financial instruments are as follows:
Financial Assets
- Cash and cash equivalents
- Financial assets at amortised cost
Total Financial Assets
Financial Liabilities
- Financial liabilities at amortised cost
Total Financial Liabilities
CONSOLIDATED
2021
$
2020
$
745,787
1,494,810
1,257,468
1,725,092
2,240,597
2,982,560
7,332,209
6,313,024
7,332,209
6,313,024
The Group has various financial instruments such as trade debtors and trade creditors, which arise directly from its operations.
It is, and has been throughout the period under review, the Group’s policy that no trading in financial derivatives shall be undertaken.
The main risks arising from the Group’s financial instruments are interest rate risk, liquidity risk, foreign currency risk and credit risk.
The Board reviews and agrees policies for managing each of these risks and they are summarised below.
The Group also monitors the market price risk arising from all financial instruments.
47
SAFEROADS.COM.AUSaferoads Holdings LimitedNotes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2021 18.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
(a) Interest rate risk
The Group’s exposure to market risk for changes in interest rates relates primarily to the Group’s long-term debt obligations.
The company’s exposure to interest rate risk, which is the risk that the Financial Instrument’s value will fluctuate as a result of changes
in market interest rates and the effective weighted average interest rates on classes of financial assets and financial liabilities, is as
follows:
Weighted
Average
Interest
Rate
Non Interest
Bearing
Variable
Interest Rate
Within 1
year
2 to 5 years
Later than
5 years
Total
Fixed Interest Rate Maturing
%
$
$
$
$
$
$
2021
Financial Assets
- Cash
- Receivables
0.07%
N/A
-
745,787
1,494,810
-
Total Financial Assets
1,494,810
745,787
Financial Liabilities
- Payables
- Bank loans
- Borrowings for asset
finance
- Lease liabilities
N/A
3.78%
6.18%
5.91%
1,991,214
-
1,514,049
-
-
-
-
-
-
-
-
-
-
-
-
745,787
1,494,810
-
2,240,597
-
-
1,991,214
1,514,049
-
-
668,554
1,109,211
-
1,777,765
480,527
1,456,836
111,818
2,049,181
Total Financial
Liabilities
2020
Financial Assets
- Cash
- Receivables
Total Financial Assets
Financial Liabilities
- Payables
- Bank loans
- Borrowings for asset
finance
- Lease liabilities
Total Financial
Liabilities
48
1,991,214
1,514,049
1,149,081
2,566,047
111,818
7,332,209
%
$
$
$
$
$
$
0.58%
N/A
N/A
4.67%
6.22%
5.05%
-
1,257,468
1,725,092
-
1,725,092
1,257,468
1,856,926
-
1,658,281
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1,257,468
1,725,092
2,982,560
1,856,926
1,658,281
-
-
485,652
1,046,348
-
1,532,000
241,076
912,923
111,818
1,265,817
1,856,926
1,658,281
726,728
1,959,271
111,818
6,313,024
-
-
-
-
-
-
SAFEROADS.COM.AUSaferoads Holdings LimitedNotes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2021
18.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
(b) Credit risk
The Group trades only with recognised, credit worthy third parties.
It is the Group’s policy that all customers who wish to trade on credit terms are subject to credit verification procedures and pre-
agreed credit limits.
In addition, receivable balances are monitored on an ongoing basis with the result that the Group’s exposure to bad debts is
managed closely.
The maximum exposure to credit risk, excluding the value of any collateral or other security, at reporting date recognised as financial
assets is the carrying amount, net of any provisions for doubtful debts which is $16,030 at 30 June 2021 (2020: $16,030), as disclosed
in the statement of financial position and notes to the financial statements. The company holds no collateral or security in relation to
financial assets.
As at reporting date, the amount of financial assets past due, but not impaired, is $76,332 (2020: $72,250).
The Group does not have any material unmanaged credit risk to any single debtor or group of debtors under financial instruments
entered into by the company.
(c) Liquidity risk
The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of current working capital,
bank loans, and lease liabilities.
Maturity analysis of financial liabilities:
2021
- Payables
- Bank loans
- Borrowings for asset finance
- Lease liabilities
Within 1 Year
1 to 5 Years
Over 5 Years
$
$
$
Total
$
1,991,214
165,826
668,554
480,527
-
1,348,223
1,109,211
1,456,836
-
-
-
111,818
1,991,214
1,514,049
1,777,765
2,049,181
Total Financial Liabilities
3,306,121
3,914,270
111,818
7,332,209
2020
- Payables
- Bank loans
- Borrowings for asset finance
- Lease liabilities
Within 1 Year
1 to 5 Years
Over 5 Years
$
$
$
Total
$
1,856,926
155,347
485,652
241,076
-
1,502,934
1,046,348
912,923
-
-
-
111,818
1,856,926
1,658,281
1,532,000
1,265,817
Total Financial Liabilities
2,739,001
3,462,205
111,818
6,313,024
49
SAFEROADS.COM.AUSaferoads Holdings LimitedNotes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2021 18.
FINANCIAL RISK MANAGEMENT OBJECTIVES AND POLICIES (continued)
(d) Fair Values
The carrying amount of financial assets and liabilities recorded in the financial statements represents their respective fair values,
determined in accordance with the accounting policies disclosed in Note 2 to the financial statements.
(e) Foreign Exchange Risk
Exposure to foreign exchange risk may result in the fair value or future cash flows of a financial instrument fluctuating due to
movement in foreign exchange rates of currencies in which the Group holds financial instruments which are other than the AUD
functional currency of the Group.
(f) Sensitivity Analysis
The following table illustrates sensitivities to the Group’s exposures to changes in interest rates on borrowings and exchange rates
on purchases. The table indicates the impact on how profit and equity values reported at reporting date would have been affected
by changes in the relevant risk variable that management considers to be reasonably possible. These sensitivities assume that the
movement in a particular variable is independent of other variables. The following sensitivities are based on market experience over
the last 12 months.
Year Ended 30 June 2021
+/-2% in interest rates
+/-5c in AUD / USD
Year Ended 30 June 2020
+/-2% in interest rates
+/-5c in AUD / USD
19. SUBSIDIARIES
CONSOLIDATED
Profit/(loss)
$
Equity
$
+/-30,300
+/-226,000
+/-30,300
+/-226,000
$
$
+/-33,000
+/-298,000
+/-33,000
+/-298,000
The consolidated financial statements include the financial statements of Saferoads Holdings Limited and the subsidiaries listed in the
following table.
Name
Country of incorporation
Saferoads Pty Ltd
Australia
% equity interest
2021
100%
2020
100%
50
SAFEROADS.COM.AUSaferoads Holdings LimitedNotes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2021 20. RELATED PARTIES
Transactions with Key Management Personnel
During the financial year the Company acquired certain consumable manufacturing materials and contract labour services from an
entity related to Mr D. Hotchkin at normal commercial rates aggregating $84,312 (2020: $220,550), with $11,423 included in Trade
payables at 30 June 2021 (2020: $59,175).
During the financial year the Company leased premises from an entity related to Mr D. Hotchkin at normal commercial rates
aggregating $12,300 (2020: nil), with a $3,075 security deposit.
During the financial year the Company procured an operational asset from an entity related to Mr D. Hotchkin at normal commercial
rates aggregating $4,081, with $4,489 included in Trade payables at 30 June 2021.
During the financial year an entity related to Mr D. Hotchkin purchased goods at normal commercial rates for $689 (2020: nil).
21. AUDITORS’ REMUNERATION
Amounts received or due and receivable by:
- Grant Thornton, for the audit of the financial report
2021
$
2020
$
69,000
73,500
- Other services (2020: R&D tax rebate): Grant Thornton
-
24,100
22. KEY MANAGEMENT PERSONNEL DISCLOSURES
(a)
Details of Management Personnel
(i) Directors
David Ashmore
Darren Hotchkin
David Cleland
Hayden Wallace
(ii) Executives
Peter Fearns
Non-Executive Chairman
Chief Executive Officer
Non-Executive
(resigned 25 November 2020)
Non-Executive
Chief Financial Officer (resigned 30 October 2020 and was reappointed 26 April 2021)
(b)
Compensation of Key Management Personnel
Details of the nature and amount of each element of the remuneration of Key Management Personnel (“KMP”) are disclosed in
the Remuneration Report section of the Directors’ Report.
Compensation of Key Management Personnel by category:
- Short-term employee benefits
- Post-employment benefits
- Long-term employee benefits
51
2021
$
2020
$
694,356
56,535
5
750,896
610,201
77,576
3,662
691,439
SAFEROADS.COM.AUSaferoads Holdings LimitedNotes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2021 23. PARENT ENTITY DISCLOSURES
Current assets
Total assets
Current liabilities
Total liabilities
Net assets
Issued capital
Retained earnings
Profit/(loss) of the parent entity
Total comprehensive income of the parent entity
2021
$
2020
$
-
-
5,600,022
5,359,929
-
-
5,600,022
5,593,998
6,024
364,000
364,000
-
-
5,359,929
5,353,905
6,024
-
-
Guarantees entered into by the parent entity in relation to debts of its subsidiaries
669,640
941,815
24. SUBSEQUENT EVENTS
Since the end of the financial year, the Company has drawn down a further $404,730 under its existing asset finance facility with
Commonwealth Bank for the procurement of further equipment rental assets to fulfill a new rental contract.
52
SAFEROADS.COM.AUSaferoads Holdings LimitedNotes to the Financial StatementsFOR THE YEAR ENDED 30 JUNE 2021 Directors’ Declaration
In the opinion of the Directors of Saferoads Holdings Limited and its controlled entities:
(a) The financial statements and notes of the consolidated entity and the remuneration disclosures that are contained in
the Remuneration Report that forms part of the Directors’ Report are in accordance with the Corporations Act 2001
(Cth), including:
i) Giving a true and fair view of the consolidated entity’s financial position as at 30 June 2021 and of its
performance for the year ended that date; and
ii) Complying with Accounting Standards and Corporations Regulations 2001.
(b) There are reasonable grounds to believe that the Company will be able to pay its debts as and when they become
due and payable;
(c) The financial statements have been prepared in accordance with International Financial Reporting Standards (IFRS)
as reported in Note 2.
This declaration has been made after receiving the declarations required to be made to the Directors by the Chief
Executive Officer and the Chief Financial Officer in accordance with section 295A of the Corporations Act 2001 (Cth).
Signed in accordance with a resolution of the Directors.
On behalf of the Board.
David Ashmore
Director
30 August 2021
53
SAFEROADS.COM.AU Collins Square, Tower 5
727 Collins Street
Melbourne VIC 3008
Correspondence to:
GPO Box 4736
Melbourne VIC 3001
T +61 3 8320 2222
F +61 3 8320 2200
E info.vic@au.gt.com
W www.grantthornton.com.au
Independent Auditor’s Report
To the Members of Saferoads Holdings Limited
Report on the audit of the financial report
Opinion
We have audited the financial report of Saferoads Holdings Limited (the Company) and its subsidiaries (the Group), which
comprises the consolidated statement of financial position as at 30 June 2021, the consolidated statement of profit or loss
and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows
for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting
policies, and the Directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001, including:
a giving a true and fair view of the Group’s financial position as at 30 June 2021 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 Group in accordance with the auditor independence requirements of the Corporations Act 2001 and
the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (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.
Grant Thornton Audit Pty Ltd ACN 130 913 594
a subsidiary or related entity of Grant Thornton Australia Ltd ABN 41 127 556 389
www.grantthornton.com.au
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients
and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Ltd is a member firm of Grant Thornton International
Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are
delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one
another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to
Grant Thornton Australia Limited ABN 41 127 556 389 and its Australian subsidiaries and related entities. GTIL is not an Australian related entity to
Grant Thornton Australia Limited.
Liability limited by a scheme approved under Professional Standards Legislation.
47
54
SAFEROADS.COM.AU
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.
Key audit matter
How our audit addressed the key audit matter
Revenue from product sales and services – Note 4
The total revenues from product sales and services earned by
Saferoads Holdings Limited was $13,250,184.
The Group derives revenue through the sale of goods and the
rendering of services which are performed under a combination
of individual agreements and contractual arrangements.
Under AASB 15 Revenue from Contracts with Customers,
revenue may be recognised at a point in time or over time, as
performance obligations are satisfied.
This is a key audit matter due to the volume of associated
transactions, the level management judgement applied, and the
importance of revenue as a financial measure.
Intangible assets – Note 12
Our procedures included, amongst others:
Assessing revenue recognition policies to ensure
compliance with AASB 15;
Documenting and testing the design effectiveness of
internal controls relating to revenue streams;
Testing a sample of revenue recognised during the year to
supporting documentation to verify the occurrence;
Performing non-substantive analytical testing on revenue
balances; and
Assessing the adequacy of the disclosures in the financial
statements.
Capitalised product development costs in respect to databases
and software had a net carrying value of $1,113,949 at
30 June 2021. During the year, the Group capitalised $284,040
of product development costs. These intangible assets are being
amortised over a 10 year period, and an amortisation expense of
$200,541 has been included in the statement of profit or loss and
other comprehensive income.
AASB 138 Intangible Assets sets out the specific requirements to
be met in order to capitalise development costs. Intangible
assets should be amortised over their useful economic lives in
accordance with AASB 138. Given the nature of the industry in
which the Group operates, there is also a risk that there could
also be a material impairment to capitalised development costs
carried as intangible assets, which needs to be considered under
accounting standard AASB 136 Impairment of Assets.
Our procedures included, amongst others:
Assessing the Group’s accounting policy in respect of
product development costs for adherence to AASB 138;
Evaluating management’s assessment of each product for
compliance with the recognition criteria set out in AASB
138, including discussing product plans with management
to develop an understanding of the nature and feasibility of
key products at 30 June 2021;
Testing a sample of costs capitalised to supporting
documentation to understand the nature of the item and
whether the expenditure was attributable to the
development of the related asset and assessing
compliance with the recognition criteria set out in AASB
138;
This area is a key audit matter due to subjectivity and
management judgement applied in the assessment of whether
costs meet the development phase criteria described in AASB
138, the estimate of the assets’ useful lives and consideration of
whether any impairment indicators existence as per the
requirements of AASB 136.
Evaluating the appropriateness of the useful economic lives
over which capitalised costs are being amortised;
Assessing the appropriateness of management’s fair value
assessment for any intangible assets not yet available for
use as per the requirements of AASB 136;
Assessing the appropriateness of management’s
determination that there are no impairment indicators at
reporting date for those intangible assets being amortised
as per the requirements of AASB 136; and
Assessing the adequacy of the financial statement
disclosures.
55
48
SAFEROADS.COM.AU 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
Group’s annual report for the year ended 30 June 2021, but does not include the financial report and our auditor’s report
thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of assurance
conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider
whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or
otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are
required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the financial report
The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in
accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors
determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material
misstatement, whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a going concern,
disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the
Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material
misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance
is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing
Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are
considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions
of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance
Standards Board website at: https://www.auasb.gov.au/auditors_responsibilites/ar1_2020.pdf. This description forms part of
our auditor’s report.
Report on the remuneration report
Opinion on the remuneration report
We have audited the Remuneration Report included in pages 18 to 19 of the Directors’ report for the year ended
30 June 2021.
In our opinion, the Remuneration Report of Saferoads Holdings Limited, for the year ended 30 June 2021 complies with
section 300A of the Corporations Act 2001.
56
49
SAFEROADS.COM.AU Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance
with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the Remuneration Report,
based on our audit conducted in accordance with Australian Auditing Standards.
Grant Thornton Audit Pty Ltd
Chartered Accountants
Michael Climpson
Partner
Melbourne, 30 August 2021
57
50
SAFEROADS.COM.AU ASX Additional Information
The shareholder information set out below was applicable as at 31 August 2021. At this date, the Company had on issue 37,461,783
ordinary shares in the company held by 481 shareholders.
SUBSTANTIAL SHAREHOLDERS
The names of substantial shareholders who have notified the Company in accordance with section 671B of the Corporations Act.
Holder name
No. of ordinary shares in which interest is held
9,765,937
4,753,978
4,340,549
No. of Shares
% Held
8,033,691
4,240,154
3,243,300
1,732,246
1,466,074
1,462,755
1,387,848
1,000,000
921,883
904,055
881,240
629,438
544,630
480,836
347,678
333,913
292,095
260,000
250,009
240,000
21.45
11.32
8.66
4.62
3.91
3.90
3.70
2.67
2.46
2.41
2.35
1.68
1.45
1.28
0.93
0.89
0.78
0.69
0.67
0.64
28,651,845
76.46
Holders
Total Units
96
147
73
120
45
481
46,985
417,775
591,405
3,962,452
32,443,166
37,461,783
%
0.12
1.12
1.58
10.58
86.60
100.00
MR DARREN JOHN HOTCHKIN & MRS JENNIFER ANN HOTCHKIN
RUMINATOR PTY LTD and related entities
CAON PTY LTD and related entities
TWENTY LARGEST SHAREHOLDERS
Name
MR DARREN JOHN HOTCHKIN & MRS JENNIFER ANN HOTCHKIN
CAON PTY LTD
RUMINATOR PTY LTD
MR DARREN JOHN HOTCHKIN & MRS JENNIFER ANN HOTCHKIN
MR DUNCAN FRANCIS SMITH
MR DAVID ALBERT McCLURE ASHMORE & MRS NOLA JOY ASHMORE
MR GLENN SCOTT WADSWORTH & MR RICKI MARK WADSWORTH
MR PHILIP BOMFORD
NLKM PTY LTD
CARRIER INTERNATIONAL PTY LTD
CONTEMPLATOR PTY LTD
STITCHING PTY LTD
MRS JANET GRIFFITHS
LIVINGSTONE SERVICES PTY LTD
MR PETER FROST
ELFIC INDUSTRIES PTY LTD
ROADWORX GROUP PTY LTD
MR BRUCE ALLAN HEAD & MRS BETH ALISON HEAD
C J CORNWELL & SON PTY LTD
MR ROSS GEORGE YANNIS
DISTRIBUTION OF SHAREHOLDINGS
Holdings Ranges
1-1,000
1,001-5,000
5,001-10,000
10,001-100,000
100,001 and over
The number of shareholders’ holdings less than a marketable parcel is 135.
VOTING RIGHTS
All ordinary shares carry one vote per share.
NUMBER OF ORDINARY SHARES SUBJECT TO ESCROW
Nil.
58
SAFEROADS.COM.AU Corporate Directory
Directors
David Ashmore
Chairman
Darren Hotchkin
Chief Executive Officer
Hayden Wallace
Auditors
Grant Thornton
GPO Box 4736
Melbourne VIC 3001
ASX Code
SRH
Company Secretary
Aimee Taylor
Bankers
Commonwealth Bank of Australia
Registered Office
PO Box 2030
22 Commercial Drive,
Pakenham VIC 3810
1800 060 672
+61 3 5945 6600 (International)
sales@saferoads.com.au
saferoads.com.au
Share Registry
Automic Registry Services
Level 5, 126 Phillip Street
Sydney NSW 2000
GPO Box 5193
Sydney NSW 2001
1300 288 664
+61 2 9698 5414 (International)
hello@automic.com.au
automic.com.au
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