Annual Report
2018
Balance and Diversity
For personal use only Cover image:
Almond blossoms on Webster’s Sandy Valley Orchard
For personal use only Chairman’s review
CEO and Managing Director’s review
Where we operate
Horticulture
Agriculture
Water
Livestock
Directors’ report
Directors’ declaration
Auditor’s independence declaration
Financial statements
Consolidated statement of profit or loss
and other comprehensive income
Consolidated statement of financial position
Consolidated statement of changes in equity
Consolidated statement of cash flows
Notes to the financial statements
Auditor’s report
ASX additional information
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Webster Limited – Annual Report 2018For personal use only Chairman’s review
Webster reported a statutory net profit after tax
for the 12-month period to 30 September 2018 of
$27.1 million compared to $58.3 million for the prior
15-month period ended 30 September 2017.
The underlying operating profit before tax was
$38.9 million compared with $13.0 million for the
15 months of the prior period.
During the year, directors and management have
been engaged in a reassessment of our business
strategy and direction, which has led to a rebalancing
of our asset portfolio.
Webster’s core business continues to be the
ownership of water entitlements and the application of
the annual water allocations from those entitlements
to both permanent and annual irrigated crops.
Our belief is that the conversion of the annual water
allocations into horticultural and agricultural products,
rather than selling the water allocations, will likely
provide shareholders with a higher return on their
funds in the medium to long term.
During the year the Company has rebalanced
the portfolio towards a greater concentration
in permanent crops, both walnuts and almonds,
and reduced its involvement somewhat in annual
cropping in areas where the reliability of water
flows are not as optimal as in other areas of the
Company’s operations.
Furthermore, the Company, by selling the northern
properties at Garah and Bourke together with their
water entitlements, has reduced the variability
of climatic outcomes within our portfolio.
While the northern properties did provide Webster
with some geographical and climatic diversification,
which will now be more concentrated, they also
introduced a greater degree of variability than might
be expected in the southern connected basin.
Leeton Orchard
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For personal use only During the course of the
year, Webster has:
Acquired a small almond
operation in the Riverina
with additional land
for planting
—
Acquired additional
land for development
as orchards
—
Continued the
development of our
cropping properties at
Darlington Point (Kooba)
and Hay
—
Modestly increased its
water entitlements in the
southern connected basin
—
Sold its northern
properties (Garah
and Bourke) and
their associated
water entitlements.
The combination of these transactions leaves Webster in a strong
financial position with minimal gearing and an ability to develop and
expand its asset portfolio.
Looking ahead to next year, the sale of our northern properties, the
sale of water entitlements and the decommissioning of irrigation
at Tandou will have the result of reducing our potential annual
planted cropping area from more than 17,000 hectares to around
10,000 hectares. In 2018/19 the area planted is 4,145 hectares.
This decision was a function of the relatively dry conditions and
significantly lower than normal water allocations.
However, on the positive front, earnings in our horticultural activities
next year should be improved by the continued maturity of both
our Avondale and Sandy Valley orchards and hopefully a stronger
return on yields in our mature walnut orchards in line with longer
term expectations.
As I mentioned last year, Webster is fortunate to have committed
staff, with great industry knowledge, who have the ability to resolve
issues that consistently and unexpectedly arise and contribute to the
direction of the Company, and I thank them for their continuing efforts.
Chris Corrigan
Chairman
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Webster Limited – Annual Report 2018For personal use only CEO and Managing Director’s review
It is my pleasure to provide you with a report on the
2018 financial year, my first as the Chief Executive
Officer (CEO) and Managing Director.
The business delivered a strong underlying operating
profit of $38.9 million for the 2018 financial year
compared to an underlying operating profit of
$13.0 million for the 15-month period ending
30 September 2017.
Agriculture
The cotton operations were a significant contributor
to earnings with a total of 17,162 hectares planted,
producing 201,748 bales at an average yield of
11.76 bales per hectare across all properties. Lint
price achieved in 2018 was an average of $550 per
bale. The 2018 cotton crop included the final planting
at Lake Tandou.
Horticulture
The walnut orchards produced their second-largest
yields in 2018, having produced 9,508 tonnes
compared to 12,005 tonnes in 2017. Webster
currently owns 1,642 hectares of mature producing
orchards and 880 hectares of immature orchards.
Webster also has 423 hectares of walnut orchards
under management. Sale prices per tonne achieved
in 2018 (combined in-shell and kernel sales)
improved by 20% compared to 2017. We have been
experiencing downward pressure on walnut pricing
for the 2019 crop.
I am also pleased to report that we are achieving
higher domestic sales than previous years and
with it, a greater demand for walnut kernel. This
has the added benefit of greater utilisation of the
investment made in our processing plant and reduced
distribution costs.
The initial harvest from the recently acquired almond
orchard Sandy Valley was encouraging, having
achieved 0.7 tonnes per hectare for the 3-year-old
trees, which are still 3 years away from full maturity.
The yield achieved was ahead of our initial
expectations prior to acquiring the property. We
look forward to this current year’s harvest as the
trees progress towards full maturity. We have added
extra almond orchards, having planted an additional
230 hectares this year.
Livestock
Our livestock business has been impacted by the
drought gripping New South Wales (NSW) and South
Australia (SA). Levels of livestock were reduced in
2018 to appropriate levels, commensurate with
available feed. Cattle levels were reduced by 2,487
and sheep by 5,336 during the year. Sale prices
achieved were reduced due to an oversupply of
livestock in the market. The cost of feed had also
markedly increased, impacting on the profitability of
this business line.
Capital investment
Capital investment during the year totalled
$94.2 million of which $23.4 million represented
additional development of our properties, both in the
Agriculture and the Horticulture divisions. A further
$28.1 million was invested in acquisitions, being the
almond orchard, other land suitable for horticultural
development and an additional Dorper sheep
property, Packsaddle.
The successful installation of additional drying
facilities at the Leeton walnut processing plant was
undertaken this year. This will cater for the additional
volume to be delivered from our Avondale orchard
as it reaches maturity, but also capacity to ensure
the quality of the walnuts are maintained at a high
standard post-harvest.
“Capital investment during the year
totalled $94.2 million of which $23.4 million
represented additional development of our
properties, both in the Agriculture and the
Horticulture divisions.”
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For personal use only Webster is continuing the development program
to maximise the properties’ earning potential.
Development works on the irrigated property program
for annual cropping will be completed in the 2019
financial year and a detailed expansion program has
been established for our orchard developments.
Water
Water entitlements underpin our business and with
the development and expansion program underway
we continue to acquire appropriate water entitlements
as required. During the 2018 financial year an
additional $25.2 million of water entitlements were
acquired. The Company also sold Barwon-Darling
and Gwydir water entitlements, valued at $83 million,
as a result of the sale of Bengerang Limited, post
30 September 2018.
As reported, the sale of Bengerang Limited
and its associated land and water entitlements
settled on 7 November 2018 for $132.7 million.
All sale proceeds were used to retire debt. The
finance facilities remain unaltered and will be
utilised to continue to grow our assets through
development activity.
This year’s performance could not have been
achieved without the commitment and hard
work of the management team, our colleagues
and business partners. It has been an extremely
busy year but certainly a rewarding one for all.
Maurice Felizzi
CEO and Managing Director
Cotton picking on Kooba Station
Webster Limited – Annual Report 2018
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For personal use only Tandou
Livestock
Packsaddle Station
Livestock
Kalabity Station
Livestock
Avondale Orchards
Walnuts
Tabbita Orchard
Walnuts
Sandy Valley Orchard
Almonds
South Farm, Glenmea and Pevensey
Crop/livestock
Bringagee and Benerembah
Crop/livestock
Leeton Orchard
Walnuts
Kooba Station
Crop/livestock
Swansea Orchard
Walnuts
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For personal use only Where we operate
Webster owns a balanced and diverse portfolio of land and water assets,
located across NSW, SA and Tasmania.
Our horticultural operations include over 3,000 hectares of walnut and
almond orchards in the Riverina district of NSW and also in Tasmania.
Following the sale of Bengerang, Webster now has a more geographically
concentrated portfolio of cropping operations of around 17,160 hectares
at Darlington Point (Kooba) and Hay in NSW.
Webster’s livestock operations, including cattle and organic lamb, are
located across more than 320,000 hectares of grazing land in NSW
and eastern SA.
Underpinning these operations is Webster’s investment in water which
includes over 153,000 megalitres of water entitlement, primarily in the
southern area of the Murray-Darling basin.
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Webster Limited – Annual Report 2018For personal use only Horticulture
The Horticulture business includes Webster’s walnut
operations, a vertically integrated business that produces
premium in-shell and kernel walnuts sourced from
Company and managed orchards in NSW and Tasmania.
Webster is Australia’s largest producer of premium
walnuts, producing around 90% of Australia’s annual
walnut crop. The Horticulture business
also includes the Company’s recently acquired
almond orchards in NSW.
Walnut drying after harvest at our Leeton facility
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For personal use only Overview of result
Revenue for 2018 was $53.4 million compared
to $82.3 million for the prior 15-month period.
The Horticulture business reported a profit of
$10.7 million compared to the prior 15-month
result of $18.8 million.
Yields of the 2018 walnut crop represented the
second-largest yields achieved behind only the
2017 crop. Production achieved was 9,508 tonnes
compared to 12,005 tonnes achieved in the
prior year.
The program to strengthen the trees at the Swansea
orchard in Tasmania resulted in significantly improved
performance, with the orchard delivering its highest
ever production during 2018.
Yields at the Riverina orchards were impacted at
the start of the season by the re-occurrence of
a non-pollination event which affected the later-
flowering variety.
Webster recorded strong domestic sales growth, with
volumes increasing by 28% on the prior season.
The business secured a major retail chain as a
domestic customer which provides an additional
domestic sales channel and also opens up further
opportunities for sales in the Asian market through
that customer.
In the international market, sales into Europe reflect
Webster’s robust systems and commitment to
quality assurance in providing quality product to this
market. Sales to the Italian market increased and
there is strong interest from China and Japan for
walnut products.
Average selling prices were higher than the prior year.
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Webster Limited – Annual Report 2018For personal use only Expansion and diversity
Webster continues to expand and diversify its
horticultural operations. This includes further
investment in the acquisition of an almond
orchard and development of additional walnut and
almond orchards.
In walnuts, the development of the Avondale
West orchard in NSW will be completed in the
2018/19 financial year, concluding the 880-hectare
development program.
Webster also acquired a 150-hectare adjoining
parcel of land at its Leeton orchard. Development
of this land is expected to be completed in 2019.
A 1,000-hectare property located near the existing
Avondale property, called Avondale North, was also
acquired in the 2018 financial year.
During the year, Webster diversified its horticultural
operations with the $16.8 million acquisition of the
Sandy Valley almond orchard in NSW.
Sandy Valley is close to the Company’s existing
walnut operations at Tabbita in the Riverina. The
property has 934.7 hectares of developable planting
area, including 100 hectares of 4-year-old trees and
160 hectares of 3-year-old trees planted.
The first harvest of approximately 70 tonnes at
Sandy Valley was achieved at above-industry yields,
which is encouraging for future crop potential and
demonstrates the quality and excellent location of
the orchard.
The long-term fundamentals for almonds are positive
and complementary to Webster’s existing walnut
business and horticultural strategy.
Sandy Valley almond orchard in full bloom
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For personal use only
Investment in orchards and
processing facilities
During the year, Webster continued to invest in
its operations to maintain efficiency and ensure
its walnuts are processed to global standards.
This included the $4.8 million investment in
constructing and commissioning a new coolroom
and drying and hulling facilities at the Leeton
cracking and processing facility.
The investment is part of the Company’s ongoing
commitment to ensuring product consistency
and freshness for in-shell and kernel products for
domestic and international markets.
The Company also continued its investment in soil
and tree health at its orchards, including a pruning
program and new drainage facilities to improve
orchard health and longevity.
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Webster Limited – Annual Report 2018For personal use only Agriculture
Webster’s agricultural business is focused on annual row crops,
primarily cotton, and also wheat and maize as well as livestock.
Webster’s focus is on long-term sustainable farming while
maximising profitability from crop mix and yield, harnessing
our extensive water portfolio.
Following the divestment of the Bengerang assets, Webster’s
geographic focus is on agricultural and grazing operations
in the Riverina district, western NSW and SA. Holdings
comprise of 17,160 irrigable hectares for annual crop
farming operations and over 320,000 hectares of
grazing land for its Dorper sheep business.
Overview of result
Revenue for 2018 was $153.7 million compared
to $193.6 million for the prior 15-month period.
The Agriculture division contribution for 2018 was
$43.1 million compared to $45.7 million in the prior
15-month period.
The division contribution in the prior period includes
the one-off profit of $36.1 million, resulting from the
Tandou sale of water entitlements, decommissioning
revenue and impairment costs.
Cotton
The cotton business uses technology and expertise
to maximise yield and water efficiency, with the
capability to produce over 200,000 bales of cotton
annually. In 2018, the business benefited from
favourable weather and growing conditions in the
southern region, Tandou and Bourke properties,
which allowed for a significant planting of cotton
in the current year.
Average yield performance across the Company’s
irrigated cotton growing properties was above
expectations, with an average yield of 11.76 bales
per hectare compared to an average of 9.47 bales
per hectare for the prior period.
The Company capitalised on the growing conditions
during the season and managed to produce above-
average yields, including the newly developed area.
Webster’s continued investment on the development
of channel structures and river pumps in the Riverina
assisted in driving yields and efficient water use
across the crop.
Cotton lint average sale price of A$550 per bale
(compared to A$480 in 2017) contributed to
improved earnings.
Webster announced in June 2017 that it had
entered into an agreement with the Commonwealth
Government to decommission the Lake Tandou
irrigation system and sell water entitlements
associated with the property, south of Menindee, NSW.
As a result, the final cotton crop at Lake Tandou was
harvested in the 2017/18 year and the site will now
be used for expanding Webster’s organic Dorper
lamb business.
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For personal use only
Development works
The Company has continued its capital development
works focused on expanding its operations across
the Kooba and Hay properties, which is expected
to be complete in 2019. In total, this represents
a $78 million capital works investment by Webster.
The Company has continued the development of
its southern cotton properties which, following the
sale of Bengerang, remain the primary geographic
focus of Webster’s cotton growing area. In total,
this program will add an additional 8,100 irrigable
hectares and 30,000 megalitres of water storage.
During the year a total of 2,734 hectares of new
works were completed, including new irrigation land
and supporting infrastructure to add growing capacity
and increase productivity across the properties.
The Company also completed works for
1,500 megalitres of new water storage. Upon receipt
of regulatory approvals, future planned water storage
construction will be undertaken in 2019.
Further development works of 1,400 hectares
are expected to be completed in 2020.
In addition, the Company completed 1,860 hectares
of re-levelling of land to improve future crop
performance.
Outlook
A total of 4,145 hectares has been planted for
the 2019 crop in the Kooba and Hay properties.
This compares with a total planted area of
17,162 hectares in 2018.
The reduction in planted area in 2019 not only
reflects the sale of the northern properties and
the decommissioning of Lake Tandou but also the
significantly dryer climatic conditions forecast for
the 2019 growing season.
Most of the expected cotton crop has been forward
sold at a price of A$565 per bale.
Cotton growing on Bringagee Station
Webster Limited – Annual Report 2018
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For personal use only
Water
Webster owns a diverse portfolio of over 153,000
megalitres of water entitlements which underpins its
horticultural and agricultural operations. It provides
competitive advantage in providing crop diversity,
maximising yield and developing further growth
opportunities across our business.
Webster continued to optimise its water entitlements
to support its cropping businesses. The allocations
which flow from these water entitlements are used to
grow both permanent and annual crops as the water
allocation allows.
In 2018, Webster sold water entitlements associated
with Bengerang assets in northern NSW, which
totalled 61,346 megalitres.
However, the Company continued to invest in its
water portfolio and selectively add to its water assets
with acquisitions of water entitlements in the southern
connected basin.
This consisted of a mix of high, general and
supplementary entitlements in the Murrumbidgee
catchment and also high and general security water
in the Murray region.
The Company’s water assets as at 30 September
2018 were 153,653 megalitres of entitlements held
across a range of water systems and water products.
While the book value of water intangibles is
approximately $162 million, directors estimate the
market value of the water portfolio to be greater than
$350 million.
Webster continues to focus on utilising its water
assets to produce valuable horticultural and
agricultural products which the Company believes are
likely to provide shareholders with a higher return on
their funds in the medium to long term.
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For personal use only Livestock
Webster’s livestock business includes cattle breeding in the Riverina district
and a Dorper sheep breeding business in far western NSW and eastern SA.
In April 2018, Webster acquired Packsaddle, a 50,000-hectare property located
approximately 180 km north of Broken Hill that will allow for 5,000 breeding
Dorper sheep. This property complements the Kalabity and Lake Tandou
Dorper sheep operations.
The extensive drought across Australia had a
significant impact on Webster’s livestock business
in 2018. The Company’s focus has been to ensure
livestock levels are aligned to available feedstock and
to adjust breeding operations to ensure the Company
manages through the current conditions and remains
well positioned for when conditions improve.
Financial results were impacted by significantly
higher grain fodder prices as a direct result of the
drought conditions. In the Riverina district, cattle
and calf levels were de-stocked to maintain a core
breeding enterprise during the drought conditions.
The business sold cattle earlier than usual to maintain
an appropriate level of stock.
The business remains focused on fertility and weight
gain to ensure livestock is also appropriate for market
specifications at its Kooba and Bringagee properties.
In western NSW, the Tandou and Packsaddle
properties recorded the driest ever conditions
since weather records commenced in 1901.
In response, the business concentrated on
de-stocking Dorper breeding sheep numbers
to align with carrying capacity.
The business continues to focus on ecological
outcomes including managing ground cover and
rotational grazing. This has also included further
investments in infrastructure improvements to
fence off paddocks and control grazing.
At Tandou, the business is building feedlot capacity
for finishing lambs before sale. The Company’s
current focus for the Dorper sheep business is to
maintain an appropriate level of stock across Kalabity,
Tandou and Packsaddle commensurate with available
feed and current climate conditions.
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Webster Limited – Annual Report 2018For personal use only 16
For personal use only 17
Webster Limited – Annual Report 2018For personal use only Directors’ report
For the year ended 30 September 2018
The directors of Webster Limited (the
“Company” or “Webster” or the “Group”)
(ACN 009 476 000) submit herewith
the preliminary annual financial report
of the Company for the year ended
30 September 2018. The registered
office of Webster is 148 Colinroobie
Road, Leeton, New South Wales 2705.
In order to comply with the provisions of
the Corporations Act 2001, the Directors’
report follows.
1. Directors
The directors of Webster at any time
during or since the end of the year are:
Chris Corrigan – BEc
(Chairman)
Mr Corrigan was appointed Non-Executive
Director in November 2007 until July
2010 and again from 15 October 2012.
Mr Corrigan was appointed Executive
Chairman on 29 February 2016 and the
Chairman on 19 December 2017.
Mr Corrigan was Managing Director of
Patrick Corporation Limited, Australia’s
largest stevedore company with interests
in rail transportation and aviation from
March 1990 to May 2006. Prior to that,
he had a career with Bankers Trust
spanning 20 years, including periods
as Managing Director of Bankers Trust in
Australia and for the Asia-Pacific region.
Directorships of other listed companies
held during the last 3 years:
Qube Logistics Holdings Limited
– from March 2011 to June 2017
Hawthorn Resources Limited
– from October 2017
David Cushing – BCom, ACA
(Non-Executive Director)
Mr Cushing was appointed Non-Executive
Director on 31 October 2012.
Mr Cushing is Executive Chairman
of Rural Equities Limited, one of
New Zealand’s largest rural property
companies, and is also a director of the
private investment company H&G Limited.
Mr Cushing was formerly an investment
banker with National Australia Bank
Limited subsidiary, Bank of New Zealand.
Mr Cushing has considerable experience
in the agricultural sector having previously
been a director of horticultural company
Fruitfed Supplies Limited, rural services
company Williams & Kettle Limited and
New Zealand Farming Systems Uruguay
Limited. He has also acted as an alternate
director of rural services and seed
company PGG Wrightson Limited for the
Chinese company Agria Corporation.
Chris Langdon – BCom (Econ)
(Non-Executive Director)
Mr Langdon was appointed Non-Executive
Director on 14 March 2013. Mr Langdon
retired from the Board on 30 April 2018.
Mr Langdon is a major shareholder and
Chief Executive of Langdon Group Pty
Ltd. The Langdon Group is 160 years
old and is a leading company in its
sector, primarily involved in food
ingredient distribution, and herb and spice
processing. Mr Langdon’s early career
was in investment banking with roles in
Australia, London and New York. Since
the early 1990s, apart from his corporate
role at Langdon Group, Mr Langdon
has been involved in various external
corporate directorships.
He has also held directorships at the
listed Text Media Limited and Fresh Food
Industries Holdings Limited, as well as
Nutshack Group Pty Ltd.
Directorships of other listed companies
held during the last 3 years:
Panoramic Resources Limited – from
August 2004 to June 2016
John Joseph Robinson – BFA
(Non-Executive Director)
Mr J Robinson was appointed Non-
Executive Director on 23 June 2016.
Mr J Robinson retired from the Board on
7 November 2018.
Mr Robinson is the Managing Director of
Australian Food and Fibre Limited and has
over 20 years’ experience in irrigated and
dry land farming, prior to which he traded
futures with Bankers Trust. He is currently
the Chairman of the Gwydir Valley
Irrigators Association, Chairman of the
Gwydir Customer Advising Groups, the
Presiding Member of the Cotton Research
and Development Corporation Selection
Committee and a member of the Primary
Industries Ministerial Advisory Council.
David Fitzsimons –
(Non-Executive Director)
Mr David Fitzsimons was appointed
Non-Executive Director on 30 April 2018.
Mr Fitzsimons has over 30 years’
investment and finance experience and
has been a director of several companies
in the United Kingdom and Australia in the
media, publishing and retail sectors.
Ross Leslie Burling –
(Non-Executive Director)
Mr Ross Burling was appointed Non-
Executive Director on 7 November 2018.
Mr Burling is an Executive Director,
shareholder and CEO of Stahmann Farms,
the largest vertically integrated Pecan and
Macadamia Food business in the southern
hemisphere. Mr Burling joined the board
of Stahmann Farms in February 2010
and has led the Company as its Chief
Executive Officer since March 2013.
Mr Burling has been in management
leadership roles for over 25 years
and is also a Director with Australian
Certified Organic Limited, a member of
the Gwydir Valley Irrigators Association,
and a graduate of the AICD Company
director’s course.
Maurice Felizzi – BA Acc, CA AGIM
(Executive Director)
Mr Maurice Felizzi was appointed
Executive Director on 30 April 2018.
Mr Felizzi joined Webster as Chief
Financial Officer and Company Secretary
in April 2016 and was subsequently
appointed as Chief Executive Officer
in December 2017. Mr Felizzi is a
member of CA Australia and the Institute
of Chartered Secretaries and holds
a Bachelor of Arts from the University
of Canberra.
Joseph Corrigan – BA MCA
(alternate for Chris Corrigan)
Mr Corrigan was appointed alternate for
Mr Chris Corrigan on 14 October 2013.
Mr Corrigan holds a bachelor and
master’s in creative arts and has interests
and experience in the agricultural industry
particularly wheat, canola and beef.
Mr Corrigan is also Managing Director
of an entertainment production company.
Directors’ shareholdings
Directors’ shareholdings are disclosed on
pages 28–29 of the Directors’ report. The
only change in directors’ shareholdings
between the end of the financial year and
the date of this Directors’ report was
Mr Robinson having sold all his shares,
post year end.
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For personal use only 2. Company Secretary
Mr Maurice Felizzi – BA Acc, CA AGIM
Mr Felizzi joined the Group on 18 April 2016 and was appointed Company Secretary from 28 April 2016. He is a member of
CA Australia, Institute of Chartered Secretaries and holds a Bachelor of Arts from the University of Canberra.
3. Principal activities
The principal activities of the Group during the year was the production, processing and marketing of walnuts, cotton and other annual
crops and livestock.
4. Review of operations
The Group’s financial performance resulted in a net profit before tax for the year ended on 30 September 2018 of $38.9 million
(15 months to 30 September 2017 profit $49.1 million).
5. Directors’ meetings
The following table sets out the number of directors’ meetings (including meetings of committees of directors) held during the year
and the number of meetings attended by each director (while they were a director or committee member). During the year ended
30 September 2018, 9 Board meetings, 3 Audit and Risk Committee meetings and 1 Remuneration Committee meeting were held.
2018
Board of directors
Audit and Risk Committee
Remuneration Committee
Directors
C D Corrigan
C D Langdon(i)
B D Cushing
J J Robinson(ii)
D Fitzsimons(iii)
M Felizzi (iv)
Held
Attended
Held
Attended
Held
Attended
9
4
9
9
5
5
9
3
9
5
5
5
3
2
3
3
1
–
3
2
3
2
1
–
1
–
1
–
1
–
1
–
1
–
1
–
(i) Mr C D Langdon retired on 30 April 2018
(ii) Mr J J Robinson retired on 7 November 2018
(iii) Mr D Fitzsimons appointed on 30 April 2018
(iv) Mr M Felizzi appointed on 30 April 2018
6. Corporate governance
In fulfilling its obligations and responsibilities to its various stakeholders, the Board of the Group recognises the need to implement
and maintain a robust system of governance. The Board has established a program that aims to meet best practice in standards
of accountability, disclosure, responsibility and transparency.
The Australian Securities Exchange (“ASX”) Corporate Governance Council has released guidelines under which companies are now
obliged to report on whether they comply with their published “Corporate Governance Principles and Recommendations”, as outlined
in those guidelines.
The Group complies with most of the principles outlined in the ASX guidelines and the Board remains committed to reviewing
all practices to ensure that an appropriate and functional solution is in place for a company of Webster Limited’s size and type
of operation.
Set out below is a summary of the Group’s current practices in each of the areas identified in the ASX guidelines.
6.1 Lay solid foundations for management and oversight
The Group’s Board of Directors is responsible for the overall corporate governance of the Company including its strategic direction,
establishing goals for management and monitoring the achievement of these goals.
The relationship between the Board and management is a partnership that is crucial to the Group’s long-term success. The separation
of responsibilities between the Board and management is clearly understood and respected.
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Webster Limited – Annual Report 2018For personal use only Directors’ report
continued
6.2 Structure the Board to add value
The Group has recognised the importance
of having a balanced Board comprised
of directors with an appropriate range
of backgrounds, skills and experience.
As at the date of this report, the Board
comprises of one executive director
and four non-executive directors. It is
the intention of the Board to maintain
a majority of non-executive directors
on the Board. The Board is of the view
that directors possess an appropriate
mix of skills, experience, expertise and
diversity to enable the Board to discharge
its responsibilities.
The Board considers the independence
of directors to be assessed on their
capacity to act in accordance with
their duties and put the interests of the
Company and its shareholders first,
so that they are objectively capable
of exercising independent judgement.
The Board considers that each of the
current directors has this capacity.
The directors as a group are responsible
for reviewing membership of the Board
and for selecting new directors. The
constitution requires that any new non-
executive director appointed by the Board
must seek election at the next Annual
General Meeting.
The Board is supported by the Audit and
Risk Committee. This committee has its
own charter and operating procedures
and assists the Board in the discharge of
its obligations by the review of financial
reports, audit, risk and compliance. In
addition, directors meet outside normal
Board and committee meetings from
time to time, in accordance with good
corporate governance practice.
The Board is also supported by the
Remuneration Committee. This committee
has its own charter and operating
procedures and assists the Board in the
discharge of its obligations in relation to
remuneration matters of the Company.
Audit and Risk Committee
The Audit and Risk Committee monitors
internal control policies and procedures
designed to safeguard Company assets
and to ensure the integrity of financial
reporting. It advises on the establishment
and maintenance of a framework of
internal controls and appropriate ethical
standards for the management of
the Group.
20
The Committee is also responsible for
identifying areas of significant business
risk and ensuring arrangements are in
place to manage them. It reviews the
annual and half-year financial statements
before the Board considers them. It is
also responsible for ensuring compliance
with the Corporations Act 2001, ASX
Listing Rules and any other matters with
external governing or statutory bodies.
Among its specific responsibilities, the
committee reviews and advises the Board
on the nomination and remuneration
of external auditors and the adequacy
of existing external and internal audit
arrangements including the scope and
quality of audits. The Audit and Risk
Committee Charter is available on
the Company’s website and contains
information on procedures for the
selection and appointment of the external
auditor, and for the rotation of external
audit engagement partners.
The committee met three times during
the year ended 30 September 2018.
Current members of the Audit and Risk
Committee are Messrs C D Corrigan,
B D Cushing and D Fitzsimons.
Details of the names and qualifications
of those appointed to the Audit and Risk
Committee are contained on page 18
of the Directors’ report. The number of
meetings of the Audit and Risk Committee
and names of the attendees is contained
on page 19.
The Chairman, other directors, Chief
Financial Officer and the external audit
partner in charge of the Group’s audit
attend meetings of this Committee by
invitation.
The Committee also meets from time
to time with the external auditors,
independent of management.
Remuneration Committee
The Board has established a Remuneration
Committee. The remuneration charter
provides that the Committee must consist
of a minimum of 3 members and must
have a majority of independent directors.
Attendance at committee meetings by
management is at the invitation of the
committee. Directors who are non-
committee members may attend any
meeting of the committee.
The committee reports to the Board on
its consideration and recommendations.
6.3 Promote ethical and responsible
decision-making
As part of the Board’s continuing
commitment to promote ethical and
responsible decision-making, the Group
has a Code of Conduct which establishes
a range of procedures and guidelines to
ensure that the highest ethical standards,
corporate behaviour and accountability
are maintained.
The Code of Conduct was established in
1994 to guide executives, management
and employees in carrying out their duties
and responsibilities.
The Code of Conduct covers such
matters as:
• responsibilities to shareholders;
• conflict of interest;
• confidentiality;
• protection of the Company assets;
• relations with customers and suppliers;
• employment practices; and
• responsibilities to the community.
The Group has developed and adopted
a Securities Trading Policy that prohibits
employees trading the Company’s
shares due to knowledge of undisclosed
information. At other times, directors
and employees are permitted to trade
in the Company’s securities subject to
compliance with the Securities Trading
Policy, statutory and other relevant
regulatory restrictions. Directors refer
all trading of Company shares by them
to the Company Secretary for ASX
lodgement requirements.
Directors may, after prior approval
of the Chairman, obtain independent
professional advice at the Group’s
expense for the purpose of the proper
performance of their duties.
The Group is an equal opportunity
employer and recruits personnel from a
diverse range of backgrounds. Workplace
diversity includes, but is not limited to,
gender, age, race, ethnicity, disability
and cultural background. The Group
is committed to further enhancing the
diversity and recognises that embracing
diversity in its workforce contributes
to the achievement of the Group’s
objectives.
For personal use only Although the Group has a rich diversity
among its employees, the Board
recognises the need to improve the
diversity at senior executive and Board
level. As at 30 September 2018, the
Chair of AGW Funds Management Limited
(a wholly owned subsidiary of Webster
Limited that acts as the Responsible
Entity for two Managed Investment
Schemes) is female. The Group is an
equal opportunity employer and the
number of female employees comprise
approximately 12% of senior executives,
16% of permanent employees and 45%
of seasonal/casual employees.
To further enhance the commitment
to gender diversity, the Group has
developed the following objectives which
will be monitored and evaluated by the
Board:
• aim to increase the number of
females in executive positions which
become vacant, subject to identifying
candidates with appropriate skills;
• review means by which the Company
can identify and develop high-
performing female employees to
prepare them for senior/executive
roles; and
• increase the focus on gender
participation across the Company.
6.4 Safeguard integrity in financial
reporting
The Board is responsible for the integrity
of financial data and has instigated an
internal control framework to ensure
accurate financial reporting of monthly
actual results against budgets approved
by directors and revised forecasts. In
accordance with section 295A of the
Corporations Act 2001, the Chairman and
Chief Executive Officer stated in writing
to the Board that the Group’s financial
reports present a true and fair view, in all
material respects, of the Group’s financial
condition and operational results and are
in accordance with relevant accounting
standards.
The Audit and Risk Committee provides
assistance to directors in fulfilling their
responsibility to the Group’s shareholders
and potential investors in relation to the
financial risk, audit, corporate accounting
and reporting practices of the Company.
6.5 Make timely and balanced
disclosures
The Group places considerable
importance on accurate and effective
communication with its existing and
potential shareholders.
The Group is committed to complying
with the continuous disclosure obligations
of the Corporations Act 2001 and
the ASX Listing Rules. The Group has
developed and adopted a continuous
disclosure policy and procedure, which
ensures all material matters concerning
the Group are conveyed immediately
and effectively. The Group understands
and respects the fact that timely
disclosure of relevant information is
central to the efficient operation of the
securities market.
Consistent with best practice disclosure
and continuous disclosure requirements,
all market-sensitive data, annual and
half yearly reports and addresses by
the Chairman are released to the stock
exchange through ASX On-Line. The
Group also posts reports, newsletters,
ASX releases, Annual General Meeting
and other major presentations on its
website – www.websterltd.com.au.
The external audit partner in charge of
the Group’s audit is invited to attend the
Annual General Meeting and is available
to answer shareholder questions
related to the conduct of the audit,
and the preparation and content of the
auditor’s report.
6.6 Respect the rights of
shareholders
The Group is committed in providing
shareholders with comprehensive
information about its activities, and in
fulfilling its obligations to the broader
market for continuous disclosure.
The Group publishes a comprehensive
Annual Report incorporating financial
and other information. This is sent to
shareholders on request and is available
to the public, as well as being posted on
the Group’s website. A Half-Year Report
incorporating abbreviated financial data
and market commentary is also made
available on the same basis.
The Group maintains a website
(www.websterltd.com.au) that contains
shareholder and stakeholder information
in addition to information about the
Company’s products. Previous Annual
and Half-Year Reports are available on
the site.
The Company Secretary’s office is
responsible for the distribution of
material and responding to requests
for information from shareholders and
the public. The Board, and in particular
the Chairman, bears responsibility for
communication with shareholders and
members. This occurs formally through
the Annual Report and the Annual
General Meeting. At other times, senior
management and the Chairman liaise
between the Board and key shareholders
and analysts.
Notice of the Group’s Annual General
Meeting is sent to shareholders, as well
as being posted on the website and
released to the ASX. The Group’s auditor
attends the Annual General Meeting and
is invited to answer relevant questions
and make statements to the meeting.
The directors attend General Meetings
and are available to shareholders and
other stakeholders. The public and the
media are welcome to attend General
Meetings as observers.
6.7 Recognise and manage risk
The Audit and Risk Committee is
responsible for the establishment of a
Group-wide risk profile. The objective is
to identify, evaluate, and monitor material
risks that the Company is facing, and
to ensure effective management or
monitoring of those risks.
The Board is responsible for the Group’s
system of internal controls and monitors
the operational and financial aspects of
its activities through the Audit and Risk
Committee. The Board and the Audit
and Risk Committee are both involved
in identifying key areas of risk such as
insurance, interest rate and exchange
exposure and ensuring that appropriate
measures of protection are taken.
21
Webster Limited – Annual Report 2018For personal use only Directors’ report
continued
The Group has in place a number of risk
management controls which include
the following:
• risk management policy and practices;
• policies and procedures for the
management of financial risk and
treasury operations including
exposures to foreign currencies,
financial instruments, and movements
in interest rates;
• guidelines and limits for the approval
of capital expenditure and investments;
and
• a comprehensive insurance program.
Management is required to provide
regular reports on each of these matters.
6.8 Remunerate fairly and
responsibly
The Company recognises that the
process of enhancing shareholder value
is dependent upon the performance of
directors and management. Ensuring they
each have the knowledge and information
required to perform their duties, together
with the regular review of performance,
are important factors in meeting the
Company’s objectives.
The only benefits currently paid to non-
executive directors are the base fee and
superannuation, approved in aggregate
by shareholders. There is no scheme for
the payment of retirement benefits to
executive and non-executive directors.
7. Remuneration report
The Remuneration Committee
is responsible for reviewing the
compensation arrangements for all
senior executives and directors. The
review is conducted annually, having
regard to management performance
and comparative, external compensation
levels. Independent advice may be
sought on compensation packages and
directors’ fees. The compensation of
key management personnel includes
salary/fees, movements in accrued
annual and long service leave, benefits
(including the provision of motor vehicles,
superannuation, fringe benefits) and
short-term and long-term incentive
schemes (including performance-related
bonuses).
22
7.1 Remuneration policy
The objective of the Group’s executive
remuneration policy is to set remuneration
levels to attract and retain appropriately
qualified and experienced directors and
senior executives. The policy aligns
executive rewards with achievement
of specific business goals and key
performance indicators, which include
both financial and operational targets.
Remuneration packages include a mix
of fixed remuneration and performance-
based remuneration. Senior executives
may receive short-term incentives.
Remuneration packages are reviewed
and determined by the Board, with
due regards to current rates, and are
benchmarked against comparable
industry salaries. The Board may obtain
independent advice with regard to
the appropriateness of remuneration
packages.
Non-executive directors receive fees but
do not receive any performance-related
remuneration. Non-executive directors’
fees are reviewed by the Board annually
to ensure that they are appropriate and
in line with market expectations. The
total amount of remuneration provided to
non-executive directors must not exceed
an aggregate maximum of $500,000 per
annum.
7.2 Performance-based remuneration
Short-term incentives
A cash-based Short-Term Incentive
(STI) Program continued to be adopted
for the 2018 financial period. In the
2018 financial period, bonus payments
of $635,488 have been paid to key
management personnel (15 months
to September 2017: $444,874). The
program is applicable to key personnel
that influence earnings. The STI Program
is linked to the budget which aims to align
performance to the financial performance
of the Company.
Executives are eligible for personal
incentives up to a maximum of 50%
of their total cost to company (TCC)
package based on achieving specific
goals and/or key performance indicators
(KPIs). The Board is responsible
for assessing whether the KPIs are
met based on detailed reports on
performance prepared by management.
Financial targets ensure that reward
is only available when value has been
created for shareholders. Operational
targets allow for the recognition of
efficiencies that will provide for future
shareholder value.
Short-term incentives are payable 50%
following approval with the remaining
50% payable after 12 months on the
condition that the recipient is still
employed by the Company, if the value
of the short-term incentive represents
more than 40% of the employees’ total
employment compensation (“TEC”)
package.
Long-term incentives
On 27 August 2013, the Board adopted
an Executive Long-Term Incentive Plan
(ELTIP) to give eligible executives the
opportunity to acquire shares in the
Company. Under the ELTIP, eligible
executives are invited to apply for a set
number of Webster Limited ordinary
shares and a non-recourse interest-free
loan will be made available to them by
the Group for this purpose. The Board
may from time to time determine which
executives are entitled to participate
in the ELTIP based on individual
performance as assessed under the
annual review process. Shares issued to
eligible executives under the ELTIP are
subject to a holding lock from their issue
date until applicable vesting conditions
(eligible executive must be employed
by the Company) have been satisfied
and the loans applicable to them repaid.
The issue price of shares under the
ELTIP is determined based on trading in
Webster Limited ordinary shares over
the five trading days prior to the date
of issue. Shares issued under the ELTIP
rank pari passu with existing ordinary
shares and are entitled to participate
in dividends as well as future rights
and bonus issues. The ELTIP rewards
participating executives against the
extent of the Group’s achievement against
improvement in share price and hence
shareholder value over the long term.
For personal use only Details of ELTIP shares granted/vested as compensation to key management personnel are shown in the table below.
30 September 2018
Executive
D C Goullet
Share
rights
issued
387,500 (ii) (iii)
193,750
193,750
200,000
200,000
250,000
250,000
250,000
250,000
250,000
250,000
350,000
350,000
M Felizzi
B Barry
G J Lok
W Andreatta
200,000
200,000
3,775,000
Share
rights
vested
Issue/
exercise
price
Issue
date
Vesting/
expiry
date
$0.86
$1.21
$1.21
$1.34
$1.34
$1.10
$1.10
$1.21
$1.21
$1.21
$1.21
$1.34
$1.34
$1.34
$1.34
Current
period
expense
$0
05/09/2013
05/09/2017
21/09/2016
21/09/2019
$19,314
21/09/2016
21/09/2020
$16,261
25/09/2017
25/09/2020
$17,921
25/09/2017
25/09/2021
$15,164
30/05/2016
30/05/2019
$25,125
30/05/2016
30/05/2020
$21,114
21/09/2016
21/09/2019
$24,922
21/09/2016
21/09/2020
$20,982
21/09/2016
21/09/2019
$24,922
21/09/2016
21/09/2020
$20,982
25/09/2017
25/09/2020
$31,362
Total
value
granted
(i)
$79,728
$57,943
$65,089
$53,812
$60,698
$75,376
$84,513
$74,766
$83,986
$74,766
$83,986
$94,171
25/09/2017
25/09/2021
$26,537
$106,222
25/09/2017
25/09/2020
$17,921
25/09/2017
25/09/2021
$15,164
$53,812
$60,698
$297,691
$1,109,566
(i) The value of benefits granted under the ELTIP during the period is calculated at the issue date using the Black-Scholes pricing model. This value is allocated to the
remuneration of key management personnel on a straight-line basis over the period from issue to vesting date.
(ii) In accordance with the ELTIP plan rules, Mr D C Goullet requested a further extension of 12 months to the loan relating to the ELTIP shares. The request was granted
by the Company.
(iii) The vesting date incremental value of the shares extended amounts to $14,484.
23
Webster Limited – Annual Report 2018For personal use only Directors’ report
continued
15 months to 30 September 2017
Executive
D C Goullet
M Felizzi
B Barry
G J Lok
Share
rights
issued
387,500 (ii) (iii)
387,500 (ii) (iii)
193,750
193,750
200,000
200,000
250,000
250,000
250,000
250,000
250,000
250,000
350,000
350,000
W Andreatta
200,000
200,000
4,162,500
Share
rights
vested
Issue/
exercise
price
Issue
date
Vesting/
expiry
date
$0.86
$0.86
$1.21
$1.21
$1.34
$1.34
$1.10
$1.10
$1.21
$1.21
$1.21
$1.21
$1.34
$1.34
$1.34
$1.34
Current
period
expense
$4,284
05/09/2013
05/09/2016
05/09/2013
05/09/2017
$23,575
21/09/2016
21/09/2019
$19,791
21/09/2016
21/09/2020
$16,662
25/09/2017
25/09/2020
25/09/2017
25/09/2021
$245
$208
30/05/2016
30/05/2019
$31,458
30/05/2016
30/05/2020
$26,436
21/09/2016
21/09/2019
$25,536
21/09/2016
21/09/2020
$21,500
21/09/2016
21/09/2019
$25,536
21/09/2016
21/09/2020
$21,500
25/09/2017
25/09/2020
25/09/2017
25/09/2021
25/09/2017
25/09/2020
25/09/2017
25/09/2021
$430
$364
$245
$208
Total
value
granted
(i)
$70,079
$79,728
$57,943
$65,089
$53,812
$60,698
$75,376
$84,513
$74,766
$83,986
$74,766
$83,986
$94,171
$106,222
$53,812
$60,698
$217,978
$1,179,645
(i) The value of benefits granted under the ELTIP during the period is calculated at the issue date using the Black-Scholes pricing model. This value is allocated to the
remuneration of key management personnel on a straight-line basis over the period from issue to vesting date.
(ii) In accordance with the ELTIP plan rules, Mr D C Goullet requested a further extension of 12 months to the loan relating to the ELTIP shares. The request was granted
by the Company.
(iii) The vesting date incremental value of the shares extended amounts to $14,484.
24
For personal use only 7.3 Relationship between Company performance and shareholder wealth
The following tables set out summary information about the Group’s earnings and movements in shareholder wealth for the five
financial periods to 30 September 2018. Analysis of the figures shows that 2017 was affected by the sale of the water entitlements
at Lake Tandou and 2016 year was affected by the impairment of goodwill. The 2015 year was affected by acquisition costs from
the purchase of Bengerang Limited and takeover of Tandou Limited. The Group’s performance over the five financial periods has been
reflected in an increase in the Company’s share price over the same period.
30 September 2018
($’000)
15-month period to
30 September 2017
($’000)
30 June 2016
($’000)
30 June 2015
($’000)
30 June 2014
($’000)
Revenue and other income
Net profit/(loss) before tax
Net profit/(loss) after tax
207,262
38,902
27,085
275,761
49,059
58,284
175,964
(81,554)
(80,669)
77,503
8,568
5,759
65,650
11,977
8,328
30 September 2018
($’000)
15-month period to
30 September 2017
($’000)
30 June 2016
($’000)
30 June 2015
($’000)
30 June 2014
($’000)
Share price at start of year
Share price at end of year
Interim dividend
Final dividend
Basic earnings per share
$1.30
$1.73
–
3.00 cps
7.60 cps
$1.12
$1.30
–
3.00 cps
16.66 cps
$1.57
$1.12
–
$0.86
$1.57
–
1.00 cps
1.00 cps
(23.28) cps
3.70 cps
$0.70
$0.86
1.50 cps
2.00 cps
6.21 cps
7.4 Key management personnel details
The directors and other key management personnel of Webster Limited during or since the end of the year are as follows.
Directors
• C D Corrigan (Chairman)
• B D Cushing (Non-Executive Director)
• C D Langdon (Non-Executive Director) – retired 30 April 2018
• J J Robinson (Non-Executive Director) – retired 7 November 2018
• D Fitzsimons (Non-Executive Director) – appointed 30 April 2018
• R Burling (Non-Executive Director) – appointed 7 November 2018
• M Felizzi (Executive Director) – appointed 30 April 2018
Executives
• M Felizzi (Chief Executive Officer and Company Secretary)
• D C Goullet (General Manager Operations, Walnuts Australia)
• B Barry (General Manager, Water Operations)
• G J Lok (General Manager, Webster Southern Ag)
• W Andreatta (Development Manager)
Except as noted, the named persons held their current position for the whole of the financial period and since the end of the
financial period.
25
Webster Limited – Annual Report 2018For personal use only Directors’ report
continued
7.5 Remuneration details of key management personnel
The following tables disclose compensation of key management personnel of the Group. The term “key management personnel”
refers to those persons having authority and responsibility for planning, directing and controlling the activities of the Group, directly
or indirectly, including any director (whether executive or otherwise) of the Group.
2018
Short-term
Post employment
Termin-
ation
Share-
based
amounts
Total
Remun-
eration
linked to
perform-
ance
Fixed
remun-
eration
Key
management
personnel
Salary
and fees
Bonus
paid
Bonus
deferred
Non-
monetary
Super
ELTIP(i)
Non-executive directors
C D Corrigan
105,010
B D Cushing
70,000
C D Langdon(ii)
49,184
J J Robinson
70,000
D Fitzsimons(iii)
32,083
–
–
–
–
–
–
–
–
–
–
8,960
7,601
8,960
6,652
5,227
–
8,960
6,652
3,733
3,049
Executive director and executive key management personnel
M Felizzi(iv)
378,971 105,097
105,097
8,960
20,179
B Barry
210,502 53,438
53,438
28,460
19,375
D C Goullet
240,509 74,518
–
28,460
20,179
G J Lok
262,068 65,700
65,700
8,960
21,055
W Andreatta
226,217 56,250
56,250
8,960
–
Total
1,644,544 355,003
280,485
119,640
104,742
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
121,571 100%
85,612 100%
54,411 100%
85,612 100%
38,865 100%
92,143
710,447
57%
45,904
411,117
63%
68,660
432,326
67%
57,899
481,382
61%
33,085
380,762
62%
297,691
2,802,105
–
–
–
–
–
43%
37%
33%
39%
38%
(i) The value of the ELTIP benefits granted to key management personnel as part of their remuneration is calculated as at the grant date using the Black-Scholes pricing
model. The amounts disclosed as part of the remuneration for part of the financial year have been determined by allocating the grant date value on a straight-line basis
over the period from grant date to vesting date.
(ii) Mr C D Langdon retired on 30 April 2018.
(iii) Mr D Fitzsimons appointed on 30 April 2018.
(iv) Mr M Felizzi appointed on 30 April 2018.
26
For personal use only 15 months to
September
2017
Key
management
personnel
Directors
C D Corrigan
B D Cushing
R J Roberts(ii)
C D Langdon
J J Robinson
Executives
B Barry
M Felizzi
Short-term
Post employment
Termin-
ation
Share-
based
amounts
Total
Remun-
eration
linked to
perform-
ance
Fixed
remun-
eration
Salary
and fees
Bonus
paid
Bonus
deferred
Non-
monetary
Super
ELTIP(i)
87,500
87,500
52,500
96,250
87,500
–
–
–
–
–
–
–
–
–
–
11,936
8,315
11,936
8,315
7,162
4,988
11,936
9,144
11,936
8,315
267,176
53,750
53,750
36,311
24,902
419,224
87,500
87,500
11,936
25,006
D C Goullet
289,480
90,619
71,755
36,311
28,052
G J Lok(iii)
W Andreatta(iv)
46,570
59,550
–
–
–
–
2,387
4,424
2,387
–
Total
1,493,250 231,869
213,005
144,238
121,461
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
107,751 100%
107,751 100%
64,650 100%
117,330 100%
107,751 100%
47,036
482,925
68%
104,930
736,096
62%
64,765
580,982
61%
794
453
54,175
99%
62,390
99%
217,978 2,421,801
–
–
–
–
–
32%
38%
39%
1%
1%
(i) The value of the ELTIP benefits granted to key management personnel as part of their remuneration is calculated as at the grant date using the Black-Scholes pricing
model. The amounts disclosed as part of the remuneration for part of the financial year have been determined by allocating the grant date value on a straight-line basis
over the period from grant date to vesting date.
(ii) Mr R J Roberts retired on 31 March 2017.
(iii) Mr G J Lok appointed on 1 July 2017.
(iv) Mr W Andreatta appointed on 1 July 2017.
How the Group’s performance was assessed for the 2018 financial year
The individual KPIs and financial year 2018 achievements as determined by the Remuneration Committee for the executive key
management personnel (KMP) are provided in the following table.
Strategic objective
Description of measure
Weighting
Actual performance
achievement
Financial
Operational
Underlying earnings
before interest and taxes
(EBIT) target for the Group
and division
Achievement of
established operational
strategies
60%
120%
40%
Varied: Dependant on
individual performance.
27% to 82.5% of
applicable weighting was
achieved.
Commentary on performance
The full-year underlying EBIT result
of $46.2 million exceeded budget
by greater than 110%.
Each KMP were assigned strategies
pertinent to their business line.
Assessment was made based on
measurable outcomes.
The STI measures selected (financial and operational) are designed to align individual performance to the achievement of the
Company’s strategy and the increase in shareholder value.
27
Webster Limited – Annual Report 2018For personal use only Directors’ report
continued
7.6 Transactions with key management personnel
During the financial year, where directors, their director-related entities and executives purchased goods, the purchases were domestic
or trivial in nature, from the Group on the same terms and conditions available to other employees and customers.
The Group entered into management agreements with Australian Food and Fibre Ltd (“AFF”) (pursuant to the purchase of the Kooba
Aggregation, Bengerang Ltd and Tandou Ltd), a company in which Mr Joe Robinson is an associate. The agreement was renewed on
1 July 2017 for a 3-year term with an annual fee of $300,000 plus bonus incentives based on performance to a maximum potential
of $500,000. During the financial year ended 30 September 2018 management fees of $275,000 was paid to AFF. A further
management agreement was entered into with AFF for the management of the Tandou operations for the 2018 crops only. The value
of the management services was $200,000 with a bonus potential of $2,000,000 based on various performance achievements.
During the financial year, the management fees and bonus were paid in accordance with the agreement. For the management of the
Tandou operations, AFF also incurred expenses on behalf of the Company and were reimbursed at cost for those expenses amounting
to $2,191,131, the majority of this expenditure related to harvesting costs.
The Company entered into an agreement with Air Corrigan, a company which Mr Chris Corrigan and Mr Joseph Corrigan are
associates. The current agreement is for the provision of the use of light aircraft to transport management to its properties. The
arrangement is charged at cost which amounted to $507,371 for the year ended 30 September 2018.
The Company supplied walnuts to Langdon Ingredients, Bakery Craft and The Natural Foods Trading Company, all companies in which
Mr Chris Langdon is an associate. The goods were supplied at arm’s length on normal commercial terms. The value of goods supplied
was $733,808 for the year ended 30 September 2018.
Other than the above, and contracts of employment, no other key management personnel have entered into a contract with the
Company during the financial period.
7.7 Equity holdings of key management personnel
The following tables disclose details and movements in equity holdings of key management personnel of the Group.
2018
Number of ordinary
shares (ORD) held
directly, indirectly
or beneficially
Directors
C D Corrigan
B D Cushing
C D Langdon(i)
J J Robinson
D Fitzsimons(ii)
Executives
M Felizzi
D C Goullet
B Barry
G J Lok
W Andreatta
Type
ORD
ORD
ORD
ORD
ORD
ORD
ORD
ORD
ORD
ORD
Balance at
1/10/2017
Received
on exercise
of options
Share rights
ELTIP
Net other
change
Balance at
30/9/2018
45,132,434
20,244,413
1,444
52,702,351
38,561,181
156,641,823
1,000,000
1,563,732
500,000
700,000
400,000
4,163,732
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
45,132,434
20,244,413
1,444
12,616,803
65,319,154
–
38,561,181
12,616,803
169,258,626
–
–
–
–
–
–
1,000,000
1,563,732
500,000
700,000
400,000
4,163,732
(i) Closing balance for C Langdon is at the respective retirement date (30 April 2018).
(ii) Opening balance for D Fitzsimons is at the date of appointment (30 April 2018).
28
For personal use only 2017
Number of ordinary
shares (ORD) held
directly, indirectly
or beneficially
Directors
C D Corrigan
B D Cushing
R J Roberts(i)
C D Langdon
J J Robinson
Executives
M Felizzi
D C Goullet
B Barry
G J Lok
W Andreatta
Type
ORD
ORD
ORD
ORD
ORD
ORD
ORD
ORD
ORD
ORD
Balance at
1/7/2016
Received
on exercise
of options
Share rights
ELTIP
Net other
change
Balance at
30/9/2017
45,132,434
20,244,413
5,143,187
1,444
52,702,351
123,223,829
500,000
776,232
–
–
–
1,276,232
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
500,000
787,500
500,000
700,000
400,000
2,887,500
–
–
–
–
–
–
–
–
–
–
–
–
45,132,434
20,244,413
5,143,187
1,444
52,702,351
123,223,829
1,000,000
1,563,732
500,000
700,000
400,000
4,163,732
(i) Closing balance for R J Roberts is at the respective retirement date.
8. Issue of shares
No ordinary shares were issued during the year ended on 30 September 2018.
9. Share options
No shares of any controlled entity were issued during the year ended on 30 September 2018 by the exercise of any options.
10. Dividends
During the year, directors declared and/or paid the following dividends.
• Dividends of 9.0 cents per share on the cumulative non-redeeming preference shares were paid on 27 June 2018.
• Dividends of 3.0 cents per ordinary share, fully franked, were declared in regard to year ended 30 September 2018 to be paid
on 21 December 2018.
11. Changes in state of affairs
Other than as disclosed in this report or in the accompanying financial statements and notes thereto, there has been no significant
change in the state of affairs of the Group during the period.
12. Subsequent events
The Group entered into a sale of one of its subsidiaries, Bengerang Pty Limited, to AFF Water Pty Limited, a related party, as trustee
for AFF Water Trust for $132.7 million. On 31 October 2018, at an Extraordinary General Meeting, the shareholders voted in favour of
the sale of Bengerang Pty Limited and this transaction was completed on 7 November 2018. The assets and liabilities of the Company
are classified as held for sale as at 30 September 2018 in the Consolidated statement of financial position.
The directors are not aware of any other matter or circumstance that has arisen, other than that which has been described above, that
has significantly or may significantly affect the operations of the Group, the results of those operations or the state of affairs of the
Group in subsequent financial years.
29
Webster Limited – Annual Report 2018For personal use only Directors’ report
continued
13. Likely developments
16. Non-audit services
Likely developments in the Group’s
operations known at the date of this
report have been covered elsewhere
within this report.
14. Indemnification and
insurance of officers and
auditor
During the year, the Company paid a
premium in respect of a contract insuring
the directors of the Company (as named
above), the Company Secretary, and all
executive officers of the Company and
of any related body corporate against
a liability incurred as such a director,
secretary or executive officer to the
extent permitted by the Corporations Act
2001. The contract of insurance prohibits
disclosure of the nature of the liability and
the amount of the premium.
To the extent permitted by law, Webster
Limited has agreed to indemnify its
auditors, Ernst & Young, as part of the
terms of its audit engagement agreement
against claims made by third parties from
the audit. The indemnity does not extend
to any liability resulting from negligent,
wrongful or wilful acts or omissions by
Ernst & Young. No payment has been
made to indemnify Ernst & Young during
or since the end of the financial year.
15. Environmental regulations
The Group operates various processing
facilities that are subject to environmental
controls. There are no known issues that
are outstanding with regulatory authorities
and the Group is operating within
accepted guidelines.
The Company may decide to employ
the auditor on assignments additional
to their statutory audit duties where
the auditor’s expertise and experience
with the Company and/or the Group
are important.
Amounts paid or payable by the Group to
the auditor, Ernst and Young, for non-audit
services during the year were $98,421.
The Board of Directors has considered
this position and in accordance with
the advice received from the Audit and
Risk Committee, is satisfied that the
provision of the non-audit services is
compatible with the general standard of
independence for auditors imposed by
the Corporations Act 2001. The directors
are satisfied that the provision of non-
audit services by the auditor did not
compromise the auditor independence
requirements of the Corporations Act
2001 for the following reasons:
• all non-audit services were subject to
the corporate governance procedures
adopted by the Group and have
been reviewed by the Audit and Risk
Committee to ensure they do not
impact the integrity and objectivity of
the auditor;
• the non-audit services provided do
not undermine the general principles
relating to auditor’s independence as
set out in APES 110 Code of Ethics
for Professional Accountants, as they
did not involve reviewing or auditing
the auditor’s own work, acting in a
management decision-making capacity
for the group, acting as an advocate
of the group or jointly sharing the risks
and rewards.
The lead auditor’s independence
declaration is set out on page 32 of the
Directors’ report for the financial year
ended 30 September 2018.
17. Rounding off of amounts
The Group is of a kind referred to in ASIC
Corporations (Rounding in Financials/
Directors’ reports) Instrument 2016/191,
dated 24 March 2016, and in accordance
with that Corporations instrument,
amounts in the Directors’ report and
the financial statements are rounded off
to the nearest thousand dollars, unless
otherwise indicated.
18. Independence declaration
by auditor
The auditor’s independence declaration
is included on page 32.
Signed in accordance with a resolution of
the directors made pursuant to s.298(2)
of the Corporations Act 2001.
On behalf of the directors
C D Corrigan
Chairman
Sydney, 4 December 2018
30
For personal use only Directors’ declaration
The directors declare that:
(a) in the directors’ opinion, there are reasonable grounds to believe that the Group will be able to pay its debts as and when they
become due and payable;
(b) in the directors’ opinion, the attached consolidated financial statements are in compliance with International Financial Reporting
Standards, as stated in note 1 to the financial statements;
(c) in the directors’ opinion, the attached consolidated financial statements and notes thereto are in accordance with the Corporations
Act 2001, including compliance with accounting standards and giving a true and fair view of the financial position and performance
of the Group; and
(d) the directors have been given the declarations required by section 295A of the Corporations Act 2001.
At the date of this declaration, the Company is within the class of companies affected by legislative instrument 2016/191. The
Company is within the class of company as affected by Australian Securities and Investments Commission (ASIC) Class Order
98/1418. The nature of the deed of cross guarantee is such that each company which is party to the deed guarantees to each
creditor payment in full of any debt in accordance with the deed of cross guarantee.
In the directors’ opinion, there are reasonable grounds to believe that the Company and the companies to which the ASIC Class Order
2016/785 applies, as detailed in note 18 to the financial statements will, as a group, be able to meet any obligations or liabilities to
which they are, or may become, subject by virtue of the deed of cross guarantee.
Signed in accordance with a resolution of the directors made pursuant to s.295(5) of the Corporations Act 2001.
On behalf of the directors
C D Corrigan
Chairman
Sydney, 4 December 2018
31
Webster Limited – Annual Report 2018For personal use only Auditor’s independence declaration
Ernst & Young
200 George Street
Sydney NSW 2000 Australia
GPO Box 2646 Sydney NSW 2001
Tel: +61 2 9248 5555
Fax: +61 2 9248 5959
ey.com/au
Auditor’s Independence Declaration to the Directors of Webster Limited
As lead auditor for the audit of Webster Limited for the financial year ended 30 September 2018, I
declare to the best of my knowledge and belief, there have been:
a) no contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
b) no contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Webster Limited and the entities it controlled during the financial year.
Ernst & Young
Gregory J Logue
Partner
Sydney, 4 December 2018
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
32
For personal use only
Financial statements
33
Webster Limited – Annual Report 2018For personal use only Consolidated statement of profit or loss and other
comprehensive income
For the year ended 30 September 2018
Continuing operations
Revenue
Cost of sales
Gross profit
Other income
Distribution expenses
Marketing expenses
Operational expenses
Administration expenses
Finance costs
Other expenses
Impairment loss
Profit before income tax expense
Income tax (expense)/benefit
Net profit for the year/period from continuing operations
Note
2018
($’000)
15 months to
30 September
2017
($’000)
2(a)
2(c)
2(b)
2(c)
2(d)
3
145,263
166,087
(123,883)
(136,318)
21,380
61,999
(3,380)
(395)
29,769
109,674
(3,552)
(426)
(29,784)
(51,315)
(3,225)
(7,457)
(236)
–
38,902
(11,817)
27,085
(4,100)
(7,976)
(102)
(22,913)
49,059
9,225
58,284
Total comprehensive income for the year/period
27,085
58,284
Profit attributable to:
Owners of the parent
Total comprehensive income attributable to:
Owners of the parent
Earnings per share
Basic (cents per share)
Diluted (cents per share)
27,085
27,085
58,284
58,284
27,085
27,085
58,284
58,284
16
16
7.60
7.57
16.66
16.44
The above Consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the
accompanying notes.
34
For personal use only Consolidated statement of financial position
As at 30 September 2018
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other assets
Assets classified as held for sale
Total current assets
Non-current assets
Property, plant and equipment
Investments
Intangibles – water
Intangibles – goodwill
Intangibles – other
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Borrowings
Current tax liability
Provisions
Other liability
Liabilities directly associated with assets classified as held for sale
Total current liabilities
Non-current liabilities
Borrowings
Net deferred tax liability
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Retained earnings
Total equity
Note
21(a)
5
6
7
14
8
9
9
9
10
11
12
13
14
11
3
12
2018
($’000)
2017
($’000)
11,008
17,735
80,361
218
109,322
133,772
15,442
24,593
47,259
811
88,105
–
243,094
88,105
327,773
305,587
91
78
161,952
212,871
25,896
1,638
25,896
1,763
517,350
546,195
760,444
634,300
19,555
163,844
3,120
2,237
7,090
14,229
16,334
3,796
1,583
1,433
195,846
37,375
2,905
–
198,751
37,375
46,743
13,333
133
103,608
8,455
85
60,209
112,148
258,960
149,523
501,484
484,777
15
477,865
477,865
(921)
24,540
(1,380)
8,292
501,484
484,777
The above Consolidated statement of financial position should be read in conjunction with the accompanying notes.
35
Webster Limited – Annual Report 2018For personal use only Consolidated statement of changes in equity
For the year ended 30 September 2018
Balance at 1 July 2016
Profit or loss for the 15-month period
Total comprehensive income/(loss) for the period
Payment of dividends
Equity issued as consideration for acquisition
of subsidiaries
Recognition of share-based payments(ii)
Balance at 30 September 2017
Profit or loss for the year ended
30 September 2018
Total comprehensive income for the year
Payment of dividends
Recognition of share-based payments(ii)
Share
capital
($’000)
462,844
–
–
–
15,021
–
477,865
–
–
–
–
Balance at 30 September 2018
477,865
(i) Equity-settled employee benefits reserve relates to the ELTIP.
Equity-
settled
employee
benefits
reserve(i)
($’000)
(Accumulated
losses)/
retained
earnings
($’000)
Attributable
to the owners
of the parent
($’000)
Total
($’000)
371
(46,359)
416,856
416,856
–
–
–
–
(1,751)
(1,380)
–
–
–
459
(921)
58,284
58,284
(3,508)
–
(125)
58,284
58,284
(3,508)
15,021
(1,876)
58,284
58,284
(3,508)
15,021
(1,876)
8,292
484,777
484,777
27,085
27,085
27,085
27,085
27,085
27,085
(10,676)
(10,676)
(10,676)
(161)
298
298
24,540
501,484
501,484
(ii) The recognition of share-based payments represents the 12-month period expense for all members of the ELTIP for the period while they were a participant. It also
recognises the cost associated with the shares being allocated. The balance includes treasury shares.
The above Consolidated statement of changes in equity should be read in conjunction with the accompanying notes.
36
For personal use only Consolidated statement of cash flows
For the year ended 30 September 2018
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Interest paid
Interest received
Income tax (payment)/refund
Net cash provided by operating activities
21(e)
25,168
Cash flows from investing activities
Payment for biological assets, property, plant and equipment
Payment for water entitlements
Net cash outflow on acquisition of subsidiaries
Proceeds from sale property, plant and equipment
Proceeds from government grants – development works
Proceeds from sale of water entitlements
Net cash (used in)/provided by investing activities
Cash flows from financing activities
Proceeds from borrowings from others
Repayment of borrowings from others
Dividends paid
Net cash provided/(used in) by financing activities
Net (decrease)/increase in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at end of the period
Less: Cash balance classified as held for sale
Note
2018
($’000)
15 months to
30 September
2017
($’000)
171,638
247,707
(133,586)
(168,014)
(7,407)
155
(5,632)
(94,202)
(25,210)
–
2,565
7,327
–
(109,520)
(7,976)
97
2,758
74,572
(64,849)
(9,754)
(10,000)
14,446
1,433
77,786
9,062
128,000
279,772
(37,405)
(10,676)
79,919
(4,433)
15,442
11,009
(1)
(356,781)
(3,633)
(80,642)
2,992
12,450
15,442
–
21(a)
11,008
15,442
The above Consolidated statement of cash flows should be read in conjunction with the accompanying notes.
37
Webster Limited – Annual Report 2018For personal use only Notes to the financial statements
For the year ended 30 September 2018
1. Basis of preparation
This section sets out the basis upon
which the Webster Group’s financial
statements are prepared as a whole.
Significant and other accounting policies
that summarise the measurement basis
used and are relevant to an understanding
of the financial statements are provided
throughout the notes to the financial
statements. All other accounting policies
are outlined throughout the relevant
notes.
Statement of compliance: Webster
Limited is a limited company incorporated
in Australia whose shares are publicly
traded on the Australian Securities
Exchange.
The General purpose financial report
is prepared in accordance with the
Corporations Act 2001 and Applicable
Accounting Standards and Interpretation,
and complied with other requirements of
the law. Webster Limited is a “for profit
entity”. The financial report includes
the consolidated financial statements
of Webster Limited (“Webster” or the
“Company”) and its controlled entities
(“Webster Group” or the “Group”).
Accounting Standards include Australian
Accounting Standards. Compliance with
Australian Accounting Standards ensures
the financial statements and notes of the
Company and the Webster Group comply
with International Financial Reporting
Standards.
The financial report has been prepared
on the basis of historical cost, except
for walnut inventories and cropping
inventories that are measured at net
realisable value after harvest. Any
costs incurred for walnut and cropping
inventories prior to harvest are recorded
at cost. Livestock is accounted for in
accordance with AASB 141, fair value
less costs to sell. Certain non-current
assets and financial instruments are
revalued at year end. Cost is based on
the fair values of the consideration given
in exchange for assets.
All amounts are presented in Australian
dollars, unless otherwise noted.
Fair value is the price that would
be received to sell an asset or paid
to transfer a liability in an orderly
transaction between market participants
at the measurement date, regardless of
whether that price is directly observable
or estimated using another valuation
technique. In estimating the fair value of
an asset or a liability, the Group takes
into account the characteristics of the
asset or liability if market participants
would take those characteristics into
account when pricing the asset or liability
at the measurement date. Fair value for
measurement and/or disclosure purposes
in these consolidated financial statements
is determined on such a basis, except for
share-based payment transactions that
are within the scope of AASB 2, leasing
transactions that are within the scope of
AASB 117, and measurements that have
some similarities to fair value but are not
fair value, such as net realisable value in
AASB 102 or value in use in AASB 136.
In addition, for financial reporting
purposes, fair value measurements are
categorised into Level 1, 2 or 3 based on
the degree to which the inputs to the fair
value measurements are observable and
the significance of the inputs to the fair
value measurement in its entirety, which
are described as follows:
• Level 1 inputs are quoted prices
(unadjusted) in active markets for
identical assets or liabilities that the
entity can access at the measurement
date;
• Level 2 inputs are inputs, other than
quoted prices included within Level 1,
that are observable for the asset or
liability, either directly or indirectly; and
• Level 3 inputs are unobservable inputs
for the asset or liability.
Webster Limited is a company of the
kind referred to in Legislative Instrument
2016/191, dated 24 March 2016.
The accounting policies adopted are
consistent with those of the previous
year, unless otherwise stated.
Basis of consolidation: The
consolidated financial statements
incorporate the financial statements of
Webster Limited and entities controlled
by the Company (referred to as “Webster
Limited” in these financial statements).
Control is achieved when Webster
Limited:
• has power over the investee;
• is exposed, or has rights, to variable
returns from our involvement with the
investee; and
• has the ability to use our power to
affect its returns – the Company has
the power to govern the financial and
operating policies of an entity so as to
obtain benefits from its activities.
The results of subsidiaries acquired or
disposed of during the 12-month period
are included in the consolidated income
statement from the effective date of
acquisition or up to the effective date of
disposal, as appropriate.
Where necessary, the Group makes
adjustments to the financial statements
of subsidiaries to bring their accounting
policies into line with those used by other
members of Webster.
The Group eliminates all intra-Group
transactions, balances, income and
expenses in full on consolidation. In
the separate financial statements of
Webster Limited, intra-Group transactions
(“common control transactions”) are
generally accounted for by reference to
the existing (consolidated) book value of
the items.
Where the transaction value of common
control transactions differs from their
consolidated book value, we recognise
the difference as a contribution by or
distribution to equity participants by the
transacting entities.
38
For personal use only Comparative information: Where applicable, comparative information has been reclassified in order to comply with current period
disclosure requirements, the impact of which is not material to the financial report.
Webster was granted relief under section 340(1) of the Corporations Act 2001 by ASIC to change its financial year end from 30 June
to 30 September in the prior year. The change in year end was to align the nature of Webster’s growing season with its financial
reporting period. Hence, prior reporting period was for the 15 months to 30 September 2017. Current reporting period is 12 months
(30 September 2018) in comparison to 15-month prior period (30 September 2017) and hence the amounts presented in the financial
statements are not entirely comparable.
Rounding: Unless otherwise shown in the financial statements, amounts have been rounded to the nearest tenth of a thousand dollars
and are shown by $’000. Webster Limited is a company of the kind referred to in the ASIC Class Order 2016/191.
Currency: Unless otherwise shown in the financial statements, amounts are in Australian dollars, which is Webster’s functional currency.
Critical accounting judgements and key sources of estimation uncertainty: In the application of the Group’s accounting
policies, management is required to make judgements, estimates and assumptions about carrying values of assets and liabilities that
are not readily apparent from other sources. The estimates and associated assumptions are based on historical experience and other
factors that are considered to be relevant. Actual results may differ from these estimates.
The Group reviews the estimates and underlying assumptions on an ongoing basis. We recognise revisions to accounting estimates
in the period in which the estimate is revised if the revision affects only that period or in the period of the revision and future periods
if the revision affects both current and future periods.
Significant events: The Group entered into a sale of one of its subsidiaries, Bengerang Pty Limited (“Bengerang”) to AFF Water
Pty Limited for $132.7 million. On 31 October 2018 at an Extraordinary General Meeting the shareholders voted in favour of the
sale of Bengerang and this transaction was completed on 7 November 2018.
The associated assets and liabilities of the Bengerang have been disclosed as held for sale as at 30 September 2018 in the
Consolidated statement of financial position. The shares in Bengerang have not been disposed of as at 30 September 2018, and
their assets and liabilities have been included in the Consolidated statement of financial position as at 30 September 2018.
2. Profit/(loss) from operations
Profit from operations before income tax includes the following items of revenue and expense.
(a) Revenue
Revenue from the sale of goods
Total revenue
(b) Other income
Gain on disposal of permanent water rights and property, plant and equipment
Increment in net market value of agricultural assets
Net foreign exchange gains/(loss)
Net income from sales of unused water allocations
Revenue from the rendering of services
lnterest revenue
Rental revenue
Income from sale of property compulsorily acquired
Other
Total other income
2018
$’000
15 months to
30 September
2017
$’000
145,263
166,087
145,263
166,087
2,243
49,829
831
518
5,545
155
89
–
2,789
22,609
28,409
(1,059)
4,627
7,338
97
1,463
39,999
6,191
61,999
109,674
39
Webster Limited – Annual Report 2018For personal use only Notes to the financial statements
continued
(c) Expenses
Cost of sales
Finance costs
Interest on loans
Dividends on instruments classified as financial liabilities
Other finance costs
Total finance costs
Depreciation and amortisation expense
Depreciation of non-current assets
Amortisation of non-current assets
Total depreciation and amortisation
Employee benefits expense
Equity-settled share-based payments
Post-employment benefits
Other employee benefits
Total employee benefits expense
(d) Significant items
Profit/(loss) before tax expenses includes the following specific expenses for which
disclosure is relevant in explaining the financial performance of Webster Ltd:
Impairment of property, plant and equipment
Total impairment
2018
$’000
15 months to
30 September
2017
$’000
123,883
136,318
6,164
36
1,257
7,457
6,674
18
1,284
7,976
14,322
14,293
125
156
14,447
14,449
298
1,520
27,985
29,803
213
1,722
23,187
25,122
–
–
22,913
22,913
The impairment of property, plant and equipment in the 15-month prior period relates to assets decommissioned and impaired
following an agreement entered with the Commonwealth of Australia in May 2017 in respect of its Lake Tandou operations.
Recognition and measurement
Revenue – This is measured at the fair value of the consideration received or receivable. Revenue is reduced for estimated customer
returns, stock rotation, price protection, rebates and other similar allowances.
Sale of goods – Revenue from the sale of goods and disposal of other assets is recognised when the Group has transferred to the
buyer the significant risk and rewards of ownership of the goods.
Rendering of services – Revenue from a contract to provide services is recognised by reference to the stage of completion of
the contract. The stage of completion of the contract is determined as revenue from a time and material basis and is recognised at
the contractual rates as labour hours are delivered and direct expenses are incurred. This is in relation to walnut lot supervision and
management for the Managed Investment Schemes.
Dividend and interest revenue – Dividend revenue from investments is recognised when the Group’s right to receive the payment
has been established. Interest revenue is recognised on a time-proportionate basis that takes into account the effective yield on the
financial asset.
Finance costs – Finance costs directly attributable to the acquisition, construction or production of qualifying assets, which are
assets that necessarily take a substantial period of time to get ready for their intended use or sale, are added to the cost of those
assets, until such time as the assets are substantially ready for their intended use or sale. Investment income earned on the temporary
investment of specific borrowings pending their expenditure on qualifying assets is deducted from the borrowing costs eligible
for capitalisation.
40
For personal use only Operational expenses – The Group categorises direct costs in relation to operational activities as operational expenses. These costs
include growing input costs, salary and wages, depreciation expense for plant and equipment, diesel, harvesting costs, processing and
selling costs, repair and maintenance of machinery and costs associated with field earthworks.
Employee benefits – The Group recognises for benefits accruing to employees in respect of wages and salaries, annual leave and
long service leave when it is probable that settlement will be required, and they are capable of being measured reliably.
The Group measures liabilities in respect of employee benefits expected to be settled wholly within 12 months at their nominal values
using the remuneration rate expected to apply at the time of settlement.
Liabilities recognised in respect of employee benefits which are not expected to be settled within 12 months are measured as the
present value of the estimated future cash outflows to be made by Webster Limited in respect of services provided by employees
up to reporting date.
Defined contribution plans – Contributions to defined contribution superannuation plans are expensed when incurred.
Interest income and expense – These are accrued on a time basis, by reference to the principal outstanding and at the applicable
effective interest rates. Fees paid on the establishment of loan facilities are deferred and expensed over the term of the respective
agreement while all other finance costs are expensed.
Depreciation of non-current assets – This includes the depreciation of biological assets (walnut trees) resulting from the adoption of
accounting standard AASB 2014-6 as from 1 July 2016.
3. Income taxes
(a) Income tax recognised in profit or loss
Tax (expense)/benefit comprises:
Current tax expense
Adjustments recognised in the current year in relation to the current tax of prior years
Deferred tax (expense)/benefit relating to the origination and reversal of temporary differences
Total tax benefit (relating to continuing operations)
The prima facie income tax (expense)/benefit on pre-tax accounting (loss)/profit
from operations reconciles to income tax (expense) benefit in the financial
statements as follows:
Profit from continuing operations
Total profit from operations
Income tax expense calculated at 30%
Non-deductible expenses
Non-assessable gain
Utilisation of previously unrecognised losses
Change in recognition of (deferred tax asset)/deferred tax liability
Over provision of income tax in previous year
Other
2018
$’000
15 months to
30 September
2017
$’000
(4,809)
(148)
(6,860)
(11,817)
(3,796)
13,583
(562)
9,225
38,902
38,902
49,059
49,059
(11,671)
(14,718)
(214)
–
14
(317)
370
1
(11,817)
(6,963)
17,034
289
12,307
1,080
196
9,225
The tax rate used in the above reconciliation is the corporate tax rate of 30% payable by Australian corporate entities on taxable profits
under Australian tax law. There has been no change in the corporate tax rate when compared with the previous reporting period.
41
Webster Limited – Annual Report 2018For personal use only Notes to the financial statements
continued
Deferred tax assets and liabilities
2018
Deferred tax assets:
Provisions
Other assets
Unused tax losses
Deferred tax liabilities:
Property, plant and equipment
Financial assets – non-receivables
Inventory and biological assets
Less: Classified as held for sale
2017
Deferred tax assets:
Provisions
Other assets
Unused tax losses
Deferred tax liabilities:
Property, plant and equipment
Financial assets – non-receivables
Inventory and biological assets
Other
42
Opening
balance
$’000
Charged
to income
$’000
Classified as
held for sale
$’000
Closing
balance
$’000
2,231
413
9,000
11,644
(17,735)
(101)
(2,263)
(20,099)
(8,455)
–
380
(209)
(4,170)
(3,999)
(5,154)
138
2,155
(2,861)
(6,860)
–
(8,455)
(6,860)
–
–
–
–
–
–
–
–
–
1,982
1,982
2,611
204
4,830
7,645
(22,889)
37
(108)
(22,960)
(15,315)
1,982
(13,333)
Opening
balance
$’000
Charged
to income
$’000
Other
$’000
Closing
balance
$’000
946
732
11,217
12,895
(14,351)
–
1,285
(319)
(2,217)
(1,251)
(1,908)
(101)
(18,381)
16,118
(10)
(32,742)
(19,847)
10
14,119
12,868
–
–
–
–
2,231
413
9,000
11,644
(1,476)
(17,735)
–
–
–
(1,476)
(1,476)
(101)
(2,263)
–
(20,099)
(8,455)
For personal use only Recognition and measurement
Webster Limited and its wholly owned
Australian resident entities became a
tax-consolidated group with effect from
1 December 2010 and are therefore
taxed as a single entity from that
date. The head entity within the tax-
consolidated group is Webster Limited.
Tax expense/income, deferred tax
liabilities and deferred tax assets arising
from temporary differences of the
members of the tax-consolidated group
are recognised in the separate financial
statements of the members of the tax-
consolidated group using the “separate
taxpayer within group” approach by
reference to the carrying amounts in
the separate financial statements of
each entity and the tax values applying
under tax consolidation. Any current tax
liabilities, current assets and deferred tax
assets arising from unused tax losses and
relevant tax credits of the members of the
tax-consolidated group are recognised by
the Company (as head entity in the tax-
consolidated group).
The directors have implemented a tax
sharing agreement and tax funding
agreement between members of the
consolidated group. On the existence of
a tax funding arrangement between the
entities in the tax-consolidated group,
amounts are recognised as payable to
or receivable by the Company and each
member of the Group in relation to the
tax contribution amounts paid or payable
between the parent entity and the other
members of the tax-consolidated group in
accordance with the arrangement. Under
the terms of the tax funding arrangement,
Webster Limited and each of the entities
in the tax-consolidated group will agree to
pay a tax equivalent payment to or from
the head entity, based on the current tax
liability or current tax asset of the entity.
The tax sharing agreement will provide
for the determination of the allocation of
income tax liabilities between the entities
should the head entity default on its tax
payment obligations or if an entity should
leave the tax-consolidated group. The
effect of the tax sharing agreement is that
each member’s liability for tax payable
by the tax-consolidated group is limited
to the amount payable to the head entity
under the tax funding arrangement.
Current tax – Current tax is calculated
by reference to the amount of income tax
payable or recoverable in respect of the
taxable profit or tax loss for the period.
The Group calculates using tax rates
and tax laws that have been enacted or
substantively enacted by reporting date.
Current tax for current and prior periods
is recognised as a liability (or asset) to
the extent that it is unpaid (or refundable).
Deferred tax – The Group accounts
for deferred tax using the balance sheet
liability method. Temporary differences
are differences between the tax base
of an asset or liability and its carrying
amount in the balance sheet. The tax
base of an asset or liability is the amount
attributed to that asset or liability to
tax purposes.
In principle, deferred tax liabilities are
recognised for all taxable temporary
differences. Deferred tax assets are
recognised to the extent that it is
probable that sufficient taxable amounts
will be available against which deductible
temporary differences or unused tax
losses and tax offsets can be utilised.
However, deferred tax assets and
liabilities are not recognised if the
temporary differences giving rise to them
arise from the initial recognition of assets
and liabilities (other than as a result of
a business combination) that affects
neither taxable income nor accounting
profit. Furthermore, a deferred tax
liability is not recognised in relation to
taxable temporary differences arising
from goodwill.
Deferred tax liabilities are recognised for
taxable temporary differences associated
with investments in subsidiaries
except where the Group is able to
control the reversal of the temporary
differences and it is probable that the
temporary differences will not reverse
in the foreseeable future. Deferred
tax assets arising from deductible
temporary differences associated with
these investments and interests are
only recognised to the extent that it is
probable that there will be sufficient
taxable profits against which to utilise
the benefits of the temporary differences
and they are expected to reverse in the
foreseeable future.
Deferred tax assets and liabilities are
measured at the tax rates that are
expected to apply to the periods when
the asset and liability giving rise to them
are realised or settled, based on tax rates
(and tax laws) that have been enacted
or substantively enacted by reporting
date. The measurement of deferred tax
liabilities and assets reflects the tax
consequences that would follow from
the manner in which Webster Limited
expects, at the reporting date, to recover
or settle the carrying amount of its assets
and liabilities.
Deferred tax assets and liabilities are
offset when they relate to income taxes
levied by the same taxation authority and
Webster intends to settle its current tax
assets and liabilities on a net basis.
Current and deferred tax for the
period – The Group recognises current
and deferred tax as an expense or
income in the income statement, except
when it relates to items credited or
debited directly to equity, in which case
the deferred tax is also recognised
directly in equity, or where it arises from
the initial accounting for a business
combination, in which case we take into
account the determination of goodwill
or excess.
43
Webster Limited – Annual Report 2018For personal use only Notes to the financial statements
continued
4. Remuneration of auditors
Amounts received or due and receivable by Ernst & Young for:
An audit or review of the financial report of the parent entity(i)
Amounts received or due and receivable by Ernst & Young for:
AGW Funds Management Limited
Other audit service in relation to the entity and any other entity in the consolidated Group
Tax services
Amounts received or due and receivable by non Ernst & Young audit firms
Review of financial report
Taxation services
Other non-audit services
2018
$
220,000
47,500
98,421
365,921
152,302
4,390
6,500
163,192
529,113
15 months to
30 September
2017
$
–
–
–
–
447,600
286,017
–
733,617
733,617
The auditor of the Group is Ernst & Young. The auditor for the 15 months ended 30 September 2017 was Deloitte.
Other services include services relating to general advice.
(i) Fees for audit services in respect of the year ended 30 September 2018 are fees incurred in respect of the half-year review and fees incurred to date in respect of the
audit for the year ended 30 September 2018.
44
For personal use only 5. Trade and other receivables
Current
Trade receivables
Other receivables (Lake Tandou Agreement)
Goods and services tax (GST) recoverable
Ageing of past due but not impaired
61–90 days
91–120 days
121+ days
Total
Movement in allowance for doubtful debts
Balance at the beginning of the year
Impairment losses recognised on receivables
Amounts written off as uncollectible
Balance at the end of the year
Ageing of impaired
61–90 days
91–120 days
121+ days
Total
2018
$’000
2017
$’000
17,735
15,321
–
–
8,000
1,272
17,735
24,593
227
–
938
1,165
(3,809)
–
3,777
(32)
–
32
–
32
2,232
1,778
4,031
8,041
(2,213)
(1,596)
–
(3,809)
–
771
3,038
3,809
In determining the recoverability of a trade receivable, the Group considers any change in the credit quality of the trade receivables
from the date credit was initially granted up to the reporting date. The Group has recognised an allowance for doubtful debts against
receivables from Managed Investment Scheme (MIS) growers.
Recognition and measurement
Trade receivables – These are recognised initially at fair value and subsequently measured at amortised cost. An allowance
for doubtful debts is raised based on a review of outstanding balances at balance date. Bad debts are written off against the
allowance account and any other change in the allowance account is recognised in the statement of profit or loss and other
comprehensive income.
45
Webster Limited – Annual Report 2018For personal use only Notes to the financial statements
continued
6. Inventories
Inventories
Raw materials
Cropping inventories
Walnut inventory
Walnut nursery trees
Water allocation
Biological assets
Cropping
Walnuts
Livestock
2018
Biological assets
Opening inventories
Preparation costs
Transfer to finished good inventory
Closing inventories
2018
Opening
Net natural increase
Purchases
Sales
Net market value increase
Closing
46
Fair value
input level
3
3
2
2018
$’000
2017
$’000
2,081
36,052
12,439
1,200
–
51,772
13,583
7,168
7,838
28,589
80,361
4,163
522
9,651
280
1,664
16,280
14,834
2,483
13,662
30,979
47,259
Cotton
$’000
Walnuts
$’000
14,834
66,158
(67,409)
13,583
2,483
33,022
(28,337)
7,168
Sheep
Cattle
$’000
5,498
–
1,162
(3,143)
711
4,228
Head
41,067
20,671
5,518
(31,525)
–
35,731
$’000
8,164
–
366
(7,739)
2,819
3,610
Head
5,924
4,307
295
(7,089)
–
3,437
For personal use only
Recognition and measurement
Inventories are valued at the lower of cost and net realisable value except for walnut and cropping inventories, which are measured
at fair value less estimated cost to sell at the point of harvest, and subsequently net realisable value under AASB 102 Inventories.
The Group accounts for costs incurred in bringing each product to its present location and condition as follows:
• The Group values walnut inventories in accordance with AASB 141 Agriculture whereby the cost of the non-living (harvested) produce
is deemed to be its fair value less cost to sell immediately after it becomes non-living. This valuation takes into account current
walnut selling prices and current processing and selling costs.
• The Group values cropping inventories in accordance with AASB 141 Agriculture whereby the cost of the non-living (harvested)
produce is deemed to be its fair value less cost to sell immediately after it becomes non-living. This valuation takes into account
current crop selling prices and current processing and selling costs.
• The Group values livestock in accordance with AASB 141 Agriculture whereby its fair value less cost to sell is determined by an
independent valuation at each reporting date.
• Costs associated with the preparation for future crop, pre-biological transformation are held at cost, as the best indication of fair
value less cost to sell.
Biological asset at fair value
At the end of each reporting period, the Group measures unharvested produce of walnuts and crop at fair value less cost to sell.
The Group also measures livestock at fair value less cost to sell.
The net increments or decrements in the market value of biological assets are recognised as either revenue or expense in the
income statement.
Fair value inputs are summarised as follows.
• Level 1 price inputs – are quoted prices (unadjusted in active markets for identical assets or liabilities) that can be accessed at the
measurement date.
• Level 2 price inputs – are inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices). The value of the livestock is determined by independent valuation with
reference to prices received from representative sales of breeding cattle similar to the Company’s herd. Independent valuations were
undertaken. In performing the valuation, consideration is given to the class, age, quality and location of the herd.
• Level 3 price inputs – are inputs for the asset or liability that are not based on observable market data (unobservable inputs). Costs
associated with the preparation for future crop, pre-biological transformation are held at cost, as the best indication of fair value less
cost to sell.
7. Other assets
Current
Prepayments
2018
$’000
218
218
2017
$’000
811
811
47
Webster Limited – Annual Report 2018For personal use only Notes to the financial statements
continued
8. Property, plant and equipment
Freehold
land
($’000)
Land
improvements
($’000)
Buildings
($’000)
Plant and
equipment
at cost
($’000)
Capital
work in
progress
($’000)
Equipment
under
finance
lease
at cost
($’000)
Walnut
orchards
($’000)
Total
($’000)
Gross carrying amount
Balance at 1 July 2016
123,672
28,112
36,631
54,977
9,780
2,397
43,642
299,211
Additions
Disposals
11,975
3,310
(9,840)
(509)
810
(995)
19,729
35,128
–
9,411
80,363
(4,497)
(2,161)
(422)
Impairment loss
(3,044)
(12,094)
(5,722)
(475)
(1,578)
–
Reclassification of assets
–
502
(982)
11,246
(10,368)
(398)
–
–
–
(18,424)
(22,913)
–
Balance at 30 September 2017
122,763
19,321
29,742
80,980
30,801
1,577
53,053
338,237
Accumulated depreciation/amortisation and impairment
Balance at 1 July 2016
Disposals
Depreciation expense
Balance at 30 September 2017
Net book value
–
–
–
–
(827)
105
(1,105)
(1,827)
(2,013)
(18,844)
282
3,308
(1,000)
(9,256)
(2,731)
(24,792)
–
–
–
–
(368)
–
(407)
(775)
–
–
(22,052)
3,695
(2,525)
(14,293)
(2,525)
(32,650)
As at 30 June 2016
123,672
27,285
34,618
36,133
9,780
2,029
43,642
277,159
As at 30 September 2017
122,763
17,494
27,011
56,188
30,801
802
50,528
305,587
Gross carrying amount
Balance at 1 October 2017
122,763
19,321
29,742
80,980
30,801
1,577
53,053
338,237
Additions
Disposals
18,572
3,371
4,426
30,557
23,926
–
13,350
94,202
(273)
–
(515)
(3,709)
–
(101)
–
(4,598)
141,062
22,692
33,653
107,828
54,727
1,476
66,403
427,841
Less: Classified as assets held
for sale
(38,199)
(8,212)
(3,399)
(11,090)
–
–
–
(60,900)
Balance at 30 September 2018
102,863
14,480
30,254
96,738
54,727
1,476
66,403
366,941
Accumulated depreciation/amortisation and impairment
Balance at 1 October 2017
Disposals
Depreciation expense
Less: Classified as assets held
for sale
Balance at 30 September 2018
Net book value
–
–
–
–
–
–
(1,827)
(2,731)
(24,792)
–
39
2,282
(1,195)
(3,022)
(782)
(9,668)
(3,474)
(32,178)
927
482
4,015
(2,095)
(2,992)
(28,163)
–
–
–
–
–
–
(775)
(2,525)
(32,650)
59
(235)
(951)
–
2,380
(2,442)
(14,322)
(4,967)
(44,592)
–
–
5,424
(951)
(4,967)
(39,168)
As at 30 September 2017
122,763
17,494
27,011
56,188
30,801
As at 30 September 2018
102,863
12,385
27,262
68,575
54,727
802
525
50,528
305,587
61,436
327,773
48
For personal use only Recognition and measurement
Land improvements and buildings
– After initial recognition the asset
is carried at cost less accumulated
depreciation and any accumulated
impairment losses. Depreciation on
buildings is charged to profit or loss.
Plant and equipment, leasehold
improvements and equipment under
finance lease – These are stated at
cost less accumulated depreciation and
impairment. Cost includes expenditure
that is directly attributable to the
acquisition of the item. In the event that
settlement of all or part of the purchase
consideration is deferred, we determine
cost by discounting the amounts payable
in the future to their present value as at
the date of acquisition.
Orchard – The asset is carried at cost
less accumulated depreciation and
any accumulated impairment losses.
Depreciation on orchards is charged to
profit or loss.
Depreciation – This is provided on
property, plant and equipment, including
freehold buildings but excluding land. We
calculate depreciation on a straight-line
basis so as to write off the net cost or
other revalued amount of each asset over
its expected useful life to its estimated
residual value. Leasehold improvements
are depreciated over the period of the
lease or estimated useful life, whichever
is the shorter, using the straight-line
method. The estimated useful lives,
residual values and depreciation method
are reviewed at the end of each annual
reporting period.
The Group uses the following estimated
useful lives in the calculation of
depreciation:
Land improvements (years)
Buildings (years)
1–20
5–40
Leasehold improvements (years)
2–20
Plant and equipment (years)
Orchards (years)
2–40
7–27
Leased assets – Leases are classified
as finance leases whenever the terms
of the lease transfer substantially all the
risks and rewards of ownership to the
lessee. We classify all other leases as
operating leases.
Lease payments are apportioned between
finance charges and reduction of the
lease obligation so as to achieve a
constant rate of interest on the remaining
balance of the liability. Finance charges
are charged directly against income,
unless they are directly attributable to
qualifying assets, in which case they are
capitalised in accordance with Webster’s
general policy on borrowing costs.
Webster Limited as lessee – Assets
held under finance leases are initially
recognised at their fair value or, if lower,
at amounts equal to the present value
of the minimum lease payments, each
determined at the inception of the lease.
The corresponding liability to the lessor is
included in the balance sheet as a finance
lease obligation.
Webster Limited as lessor – Purchased
assets where the Group is a lessor under
operating leases are carried at cost and
depreciated over their useful lives, which
vary depending on the class of assets.
Operating lease income is recognised on
a straight-line basis over the period of the
lease unless another systematic basis
is more appropriate. Assets leased out
under operating leases are included in
property, plant and equipment.
Finance lease assets are amortised on
a straight-line basis over the estimated
useful life of the asset.
Operating lease payments are recognised
as an expense on a straight-line basis
over the lease term, except where
another systematic basis is more
representative of the time pattern in which
economic benefits from the leased asset
are consumed.
Lease incentives – In the event that
lease incentives are received to enter
into operating leases, such incentives are
recognised as a liability. The aggregate
benefits of incentives are recognised
as a reduction of rental expense on a
straight-line basis, except where another
systematic basis is more representative
of the time pattern in which economic
benefits from the leased asset are
consumed.
49
Webster Limited – Annual Report 2018For personal use only Notes to the financial statements
continued
9. Intangibles
Net book value
Balance at 1 July 2016
Amortisation expense
Additions
Disposals
Transfers
Balance at 30 September 2017
Amortisation expense
Additions
Disposals
Balance at 30 September 2018
Less: Classified as assets held for sale
(a) Impairment test for goodwill
Goodwill
$’000
Licences
$’000
Contracts
$’000
Permanent
water rights
$’000
Total
$’000
24,700
100
–
2,565
–
(1,369)
25,896
–
–
–
25,896
–
25,896
–
–
–
–
100
–
–
–
100
–
100
1,819
(156)
–
–
–
1,663
(125)
–
–
240,450
267,069
–
17,141
(46,089)
1,369
(156)
19,706
(46,089)
–
212,871
240,530
–
(125)
25,210
25,210
–
–
1,538
238,081
265,615
–
(76,129)
(76,129)
1,538
161,952
189,486
Goodwill amounts recognised arose from the purchase of portfolios of agricultural assets. The goodwill has been allocated to the
cropping cash generating unit (CGU). The Group tests the recoverable amount of the goodwill at least annually or where there is an
indication that the asset may be impaired (which is assessed at least each reporting date).
The recoverable amount of the CGU has been determined based on fair value less costs of disposal. This assessment comprises the
valuation of assets using the direct comparison method of valuation where applicable with external valuations being obtained. These
are based on Level 2 fair value inputs.
Management has corroborated the value of each asset of the CGU through reference to external market prices.
No reasonably possible change in a key assumption on which management has based its determination of the unit’s recoverable
amount would cause the unit’s carrying amount to exceed its recoverable amount.
(b) Licences
Licences are measured at cost and tested for impairment on an annual basis.
(c) Contracts
Contracts are measured at cost and amortised on a straight-line basis over the term of the contract.
(d) Permanent water rights
The value of permanent water rights is an integral part of land and irrigation infrastructure required to grow both walnuts and
annual crops. The value of permanent water rights is attributable to both the Horticulture ($136.6 million) and Agriculture cropping
($25.3 million) CGUs. The fair value of permanent water rights used for impairment testing is supported by the tradeable market value,
which at current market prices is higher than the carrying value.
The recoverable amount of the permanent water rights has been determined based on the fair value of less costs of disposal. This
assessment comprises the valuation of assets using the direct comparison method of valuation where applicable with external
valuations being obtained. These are based on Level 2 inputs.
Management has corroborated the value of each asset of the CGU through reference to external market prices.
No reasonably possible change in a key assumption on which management has based its determination of the unit’s recoverable
amount would cause the unit’s carrying amount to exceed its recoverable amount.
50
For personal use only Recognition and measurement
Goodwill – The Group recognises
goodwill arising in a business combination
as an asset at the date that control is
acquired (the acquisition date). Goodwill
is measured as the excess of the sum
of the consideration transferred, the
amount of any non-controlling interests
in the acquiree, and the fair value of
the acquirer’s previously held equity
interest in the acquiree (if any) over the
net of the acquisition-date amounts of
the identifiable assets acquired and the
liabilities assumed.
If, after reassessment, the Group’s
interest in the fair value of the acquiree’s
identifiable net assets exceeds the sum
of the consideration transferred, the
amount of any non-controlling interests
in the acquiree and the fair value of the
acquirer’s previously held equity interest
in the acquiree (if any), the excess is
recognised immediately in profit or loss
as a bargain purchase gain.
Goodwill is not amortised but is reviewed
for impairment at least annually. For
the purpose of impairment testing, the
Group allocates goodwill to the cropping
CGU that is expected to benefit from
the synergies of the combination. CGUs
to which goodwill has been allocated
are tested for impairment annually,
or more frequently when there is an
indication that the unit may be impaired.
If the recoverable amount of the CGU
is less than its carrying amount, the
impairment loss is allocated first to
reduce the carrying amount of any
goodwill allocated to the unit and then
to the other assets of the unit pro-rata
on the basis of the carrying amount of
each asset in the unit. An impairment loss
recognised for goodwill is not reversed in
a subsequent period.
On disposal of a subsidiary, the
attributable amount of goodwill is included
in the determination of the profit or loss
on disposal.
Contracts – The Group measures
contracts at cost. After initial recognition
the asset is carried at cost less
accumulated amortisation and any
accumulated impairment losses. The
Group amortises contracts on a straight-
line basis over the term of the contract.
Permanent water rights – The Group
records permanent water rights at
cost. Such rights have an indefinite life
and are not depreciated. As an integral
component of the land and irrigation
infrastructure required to grow walnuts
and cotton, the carrying value is tested
annually for impairment with reference
to market values. If events or changes in
circumstances indicate impairment, the
carrying value is adjusted to take account
of any impairment losses.
Licences – These are measured at
cost and tested for impairment on an
annual basis.
Impairment of assets – At each
reporting date, the Group reviews the
carrying amounts of its tangible and
intangible assets to determine whether
there is any indication that those assets
have suffered an impairment loss. If any
indication exists, the Group estimates the
recoverable amount of the asset in order
to determine the extent of the impairment
loss (if any). Where the assets do not
generate cash flows that are independent
from other assets, we estimate the
recoverable amount of the CGU to which
the assets belong.
The Group tests goodwill for impairment
annually and whenever there is an
indication that the asset has been
impaired. An impairment of goodwill
is not subsequently reversed.
Recoverable amount is the higher of fair
value less costs to sell and value in use.
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 for which the estimate of future
cash flows have not been adjusted. The
fair value less costs to sell is assessed
with respect to the market value of the
underlying assets, including properties
and water rights, less estimated costs
to sell, relative to the carrying value of
the assets and liabilities attributable to
the CGU.
If the recoverable amount of an asset
(or CGU) is estimated to be less than its
carrying amount, the carrying amount
of the asset (CGU) is reduced to its
recoverable amount.
An impairment loss is recognised in profit
or loss immediately.
Where an impairment loss is subsequently
reversed, the reversal is limited so that
the carrying amount of the asset does
not exceed its recoverable amount,
nor exceed the carrying amount that
would have been determined, net of
depreciation, had no impairment loss
been recognised for the asset in prior
years. Such reversal is recognised in the
statement of profit or loss unless the
asset is carried at a revalued amount,
in which case, the reversal is treated as
a revaluation increase.
51
Webster Limited – Annual Report 2018For personal use only Notes to the financial statements
continued
10. Trade and other payables
Current
Trade payables
2018
($’000)
2017
($’000)
19,555
19,555
14,229
14,229
The average credit period on purchases is 30 days. Interest is charged on a creditor-by-creditor basis. The Group has financial risk
management policies in place to ensure that all payables are paid within the credit timeframe.
Recognition and measurement
Trade and other payables – These are recognised when the Group becomes obliged to make future payments resulting from the
purchase of goods and services. Payables are stated at their amortised cost.
11. Borrowings
(a) Current
At amortised cost
Secured
Bank loans
Finance lease liabilities
(b) Non-current
At amortised cost
Secured
Bank loans
Finance lease liabilities
Unsecured
Non-redeemable cumulative preference shares
Note
2018
$’000
2017
$’000
(i)
(ii)
(i)
(ii)
(iii)
163,653
191
163,844
16,088
246
16,334
46,075
102,635
274
394
579
394
46,743
103,608
(i) Secured by mortgage over property and floating charge over assets, the value of which exceeds the loan. The bank loan amount of $132.5 million was repaid on the
settlement of the sale of Bengerang Pty Limited on 7 November 2018.
(ii) Secured by assets leased, the value of which exceeds the lease liability.
(iii) 394,000 9% non-redeemable cumulative preference shares at a par value of $1.00 per share.
Credit facilities – At 30 September 2018 the Group had a total of $250.0 million (30 June 2017: $220 million) committed
credit facilities with external financial institutions. These facilities have fixed maturity dates as follows: $70.0 million in July 2019,
$180.0 million in January 2022. As at 30 September 2018, $39.7 million of the facilities available to Webster was undrawn.
Recognition and measurement
Borrowings – These are recorded initially at fair value, net of transactions costs. Subsequent to initial recognition, borrowings are
measured at amortised cost with any difference between the initial recognised amount and the redemption value being recognised in
profit and loss over the period of the borrowing using the effective interest rate method.
52
For personal use only 12. Provisions
Current
Employee benefits
Quality claims
Other
Non-current
Employee benefits (NC)
Movements in provisions
Balance at 1 October 2017
Less: Transfer to liabilities directly associated with assets classified as held for sale
Increase/(reductions) arising from payments
Balance at 30 September 2018
Recognition and measurement
2018
$’000
1,623
250
364
2,237
133
133
2,370
1,668
(106)
808
2,370
2017
$’000
1,430
153
–
1,583
85
85
1,668
1,670
–
(2)
1,668
Provisions are recognised when the Group has a present obligation (legal or constructive) and, as a result of a past event, it is probable
that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at reporting
date, taking into account the risks and uncertainties surrounding the obligation. Where a provision is measured using the cash flows
estimated to settle the present obligation, its carrying amount is the present value of those cash flows.
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, the
receivable is recognised as an asset if it is virtually certain that recovery will be received, and the amount of the receivable can be
measured reliably.
Employee benefits provisions are made for benefits accruing to employees in respect of wages and salaries, annual leave, long
service leave and other employee obligations when it is probable that settlement will be required, and they are capable of being reliably
measured. Provisions made in respect of employee benefits expected to be settled within 12 months are measured at their nominal
values using the remuneration rate expected to apply at the time of settlement.
13. Other liabilities
Current
Commonwealth grants received
2018
$’000
7,090
7,090
2017
$’000
1,433
1,433
Commonwealth grants received relate to capital work in progress and will be offset against property, plant and equipment at the
completion of the development projects.
53
Webster Limited – Annual Report 2018For personal use only Notes to the financial statements
continued
14. Assets and liabilities of disposal entity classified as held for sale
Assets classified as held for sale
Cash and cash equivalents
Trade and other receivables
Inventories
Other assets
Property, plant and equipment
Investments
Intangibles – water
Total assets of disposal entity held for sale
Liabilities directly associated with assets classified as held for sale
Trade and other payables
Provisions
Net deferred tax liability
Total liabilities of disposal entity held for sale
2018
$’000
2017
$’000
1
253
1,763
83
55,476
67
76,129
133,772
817
106
1,982
2,905
–
–
–
–
–
–
–
–
–
–
–
–
In August 2018, the Group entered into an agreement subject to certain conditions precedent, to sell one of its subsidiaries,
Bengerang Pty Limited to AFF Water Pty Limited for $132.7 million. The associated assets and liabilities have been classified as held
for sale as at 30 September 2018.
Recognition and measurement
Assets (or disposal entity) are classified as held for sale if their carrying amount will be recovered principally through a sale transaction
rather than through continuing use and a sale is considered highly probable. They are measured at the lower of their carrying amount
and fair value less costs to sell, except for assets such as deferred tax assets, assets arising from employee benefits, financial assets
and investment property that are carried at fair value and contractual rights under insurance contracts, which are specifically exempt
from this requirement.
An impairment loss is recognised for any initial or subsequent write down of the asset (or disposal entity) to fair value less costs to
sell. A gain is recognised for any subsequent increases in fair value less costs to sell of an asset (or disposal entity), but not in excess
of any cumulative impairment loss previously recognised. A gain or loss not previously recognised by the date of the sale of the non-
current asset (or disposal entity) is recognised at the date of derecognition.
Non-current assets (including those that are part of a disposal entity) are not depreciated or amortised while they are classified as
held for sale. Interest and other expenses attributable to the liabilities of a disposal group classified as held for sale continue to
be recognised.
Non-current assets classified as held for sale and the assets of a disposal entity classified as held for sale are presented separately
from the other assets in the Consolidated statement of financial position. The liabilities of a disposal entity classified as held for sale
are presented separately from other liabilities in the Consolidated statement of financial position.
54
For personal use only 15. Issued capital
361,245,163 fully paid ordinary shares
Note
(i)
2018
$’000
477,865
477,865
2017
$’000
477,865
477,865
Changes to the then Corporations Law abolished the authorised capital and par value concept in relation to share capital from 1 July
1998. Therefore, the company does not have a limited amount of authorised capital and issued shares do not have a par value.
(i) Fully paid ordinary share capital
Balance at 1 October 2017
Shares issued
Note
Number
$’000
Number
$’000
2018
2017
361,245,163
477,865
350,745,163
462,844
(ii)
–
–
10,500,000
15,021
Balance at 30 September 2018
361,245,163
477,865
361,245,163
477,865
Fully paid ordinary shares carry one vote per share and carry the right to dividends.
(ii) Share capital issued during the year ended 30 September 2018
No ordinary shares were issued during the year ended 30 September 2018 (15-month period ended 30 September 2017 –
10,500,000 ordinary shares were issued).
16. Earnings per share
Basic earnings per share
Diluted earnings per share
(a) Basic earnings per share
Cents per share
Note
(a)
(b)
2018
7.60
7.57
2017
16.66
16.44
The earnings and weighted average number of ordinary shares used in the calculation of basic earnings per share are as follows.
Earnings used in the calculation of basic earnings per share
27,085
Weighted average number of ordinary shares for the purposes
of basic earnings per share
2018
$’000
(b) Diluted earnings per share
2017
$’000
58,284
2018
15 months to
30 September
2017
356,515,163
349,825,562
The earnings and weighted average number of ordinary and potential ordinary shares used in the calculation of diluted earnings per
share are as follows.
Earnings used in the calculation of diluted earnings per share
27,085
Weighted average number of ordinary and potential ordinary
shares for the purpose of diluted earnings per share
2018
$’000
2017
$’000
58,284
2018
15 months to
30 September
2017
357,763,620
354,523,062
55
Webster Limited – Annual Report 2018For personal use only Notes to the financial statements
continued
17. Dividends
(a) Dividends paid during the year
Fully paid ordinary shares
Final dividend – FY 2017: paid December 2017
(FY 2016 paid October 2016)
(b) Dividends proposed
2018
2017
Cents per
share
Total
$’000
Cents per
share
Total
$’000
3.0
10,676
1.0
3,508
10,676
3,508
The directors have declared a fully franked 3.0 cent per share dividend on ordinary shares for the year ended 30 September 2018.
The directors have declared an unfranked 9.0 cent per share dividend on cumulative preference shares paid on 27 June 2018.
(c) Franking credits balance
Franking account balance at 1 October 2017
Tax paid
Dividends paid
Net franking credits available at 30 September 2018
Impact on franking account balance of dividends not recognised
2018
2017
747
5,632
(4,660)
1,719
–
1,281
940
(1,474)
747
–
56
For personal use only 18. Subsidiaries
Parent entity
Webster Limited
Controlled entities
AGW Finance Pty Ltd
AGW Funds Management Limited
AGW Walnuts Pty Ltd
Bengerang Ltd
Clements and Marshall Pty Ltd
Clements Marshall Consolidated Limited
Cygnet Canning Company Pty Ltd
Motspur Park Pty Limited
Tandou Ltd
Walnuts Australia Pty Ltd
PrimeAg Fund Operations Pty Ltd
Webster Southern Ag Pty Ltd
Ownership interest
Country of
incorporation
2018
(%)
2017
(%)
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
All the above entities are audited by Ernst & Young.
All entities carry on business in Australia.
These wholly owned controlled entities other than AGW Funds Management Limited, Motspur Park Pty Limited, PrimeAg Fund
Operations Pty Ltd and Webster Southern Ag Pty Ltd have obtained approval under the ASIC Class Order 2016/785 granting relief
from the requirement to produce audited financial reports and are party to a cross guarantee.
The parent entity has entered into a range of cross guarantees and registered mortgage debentures over assets and capital of
Webster Limited, which include the above entities other than AGW Funds Management Limited, Motspur Park Pty Limited, PrimeAg
Fund Operations Pty Ltd and Webster Southern Ag Pty Ltd under its banking arrangements with ANZ and Rabobank.
57
Webster Limited – Annual Report 2018For personal use only Notes to the financial statements
continued
(a) Financial performance
The following statement of financial performance represents the consolidated position of profit or loss and other comprehensive
income of subsidiaries of Webster Limited (parent entity) that are party to the deed of cross guarantee. AGW Funds Management
Limited, Motspur Park Pty Limited, PrimeAg Fund Operations Pty Ltd and Webster Southern Ag Pty Ltd are not a party to the
cross guarantee.
Revenue
Cost of sales
Gross profit
Other income
Distribution expenses
Marketing expenses
Operational expenses
Administration expenses
Finance costs
Impairment loss
Other expenses
Profit before income tax expense
Income tax (expense)/benefit
Total comprehensive income for the period
2018
$’000
91,461
(77,466)
13,995
33,103
(3,298)
(395)
15 months to
30 September
2017
$’000
97,639
(77,628)
20,011
87,914
(3,480)
(422)
(15,261)
(33,720)
(2,481)
(7,431)
–
(233)
17,999
(11,817)
6,182
(3,271)
(7,933)
(22,913)
(98)
36,088
9,225
45,313
58
For personal use only (b) Financial position
The following statement of financial position represents the consolidated financial position of subsidiaries of Webster Ltd (parent entity)
that are party to the deed of cross guarantee. AGW Funds Management Limited, Motspur Park Pty Limited, PrimeAg Fund Operations
Pty Limited and Webster Southern Ag Pty Limited are not a party to the cross guarantee.
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Other assets
Assets classified as held for sale
Total current assets
Non-current assets
Property, plant and equipment
Investments
Intangibles – water
Intangibles – goodwill
Intangibles – other
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Borrowings
Current tax liability
Provisions
Liabilities directly associated with assets classified as held for sale
Total current liabilities
Non-current liabilities
Borrowings
Net deferred tax liability
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Retained earnings
Total equity
2018
$’000
2017
$’000
10,176
12,466
49,844
139
72,625
133,772
206,397
14,707
21,462
30,686
849
67,704
–
67,704
294,990
282,679
23,100
23,102
161,952
212,871
24,283
1,638
24,283
1,763
505,963
544,698
712,360
612,402
18,327
163,653
3,120
1,500
12,453
16,130
3,796
942
186,600
33,321
2,905
–
189,505
33,321
90,001
8,961
90
146,937
4,083
62
99,052
151,082
288,557
184,403
423,803
427,999
477,865
477,865
(9,454)
(44,608)
(9,913)
(39,953)
423,803
427,999
59
Webster Limited – Annual Report 2018For personal use only Notes to the financial statements
continued
19. Commitments for expenditure
(a) Lease commitments
Non-cancellable operating leases
Not longer than 1 year
Longer than 1 year and not longer than 5 years
Finance lease liabilities
Not longer than 1 year
Longer than 1 year and not longer than 5 years
Minimum lease payments
Less: Future finance charges
Finance lease liabilities
Present value of minimum future lease payments:
Not longer than 1 year
Longer than 1 year and not longer than 5 years
(i) Operating lease commitments relate to properties and equipment with lease terms of up to 10 years.
(ii) Finance lease liabilities relate to various plant and equipment with lease terms of up to 5 years.
(b) Capital expenditure commitments
Not longer than 1 year
Note
2018
$’000
2017
$’000
(i)
(ii)
88
9
97
208
282
490
(24)
466
208
263
471
187
95
282
273
608
881
(56)
825
274
565
839
29,786
29,786
56,891
56,891
60
For personal use only 20. Segment information
(a) Segments
Following the purchase of the Kooba Ag assets and the acquisition of Bengerang Ltd and Tandou Ltd, the Group manages and reports
its business operations under two main reportable segments, Agriculture and Horticulture. The Agriculture segment products are
primarily annual row crops including cotton, wheat and maize as well as livestock, whereas the Horticulture segment pertains to tree
crops which are currently walnuts and almonds.
(b) Segment revenue and results
The following is an analysis of the Group’s revenue and results from continuing operations by reportable segment.
Agriculture
Horticulture
Total for continuing operations
Unallocated income/(expense)
Corporate and directors’ costs
Finance costs
Profit before tax
Segment revenue
and other income
2018
$’000
15 months to
30 September
2017
$’000
153,726
193,590
53,354
82,256
207,080
275,846
Segment results
2018
$’000
43,124
10,727
53,851
182
(7,711)
(7,420)
15 months to
30 September
2017
$’000
45,658
18,850
64,508
(85)
(7,388)
(7,976)
38,902
49,059
Segment revenue reported above represents revenue generated from external customers. There were no inter-segment sales in the
current year (2017: nil).
The accounting policies of the reportable segments are the same as the Group’s accounting policies.
(c) Segments assets and liabilities
Assets
Agriculture
Horticulture
Total segment assets
Unallocated
Consolidated total assets
Liabilities
Agriculture
Horticulture
Total segment liabilities
Unallocated
Consolidated total liabilities
2018
$’000
2017
$’000
505,721
184,400
690,121
70,323
424,377
144,893
569,270
65,030
760,444
634,300
25,821
12,257
38,078
220,882
258,960
34,958
9,830
44,788
104,735
149,523
61
Webster Limited – Annual Report 2018For personal use only Notes to the financial statements
continued
(d) Information on geographical areas
The consolidated entity’s goods are sold in both domestic and international markets. The following table details the consolidated
entities’ revenues from continuing operations and non-current assets by geographical location.
Australia
Europe
Other
Revenue from customers
Non-current assets
2018
$’000
15 months to
30 September
2017
$’000
2018
$’000
15 months to
30 September
2017
$’000
123,010
126,823
517,350
546,195
18,843
3,410
30,889
8,375
–
–
–
–
145,263
166,087
517,350
546,195
The revenue of $48.0 million (30 September 2017: Nil) was derived from two of the Group’s major external customers. No other
customer contributed to more than 10% of the Group’s revenue.
21. Notes to the cash flow statement
(a) Cash and cash equivalents
Cash and cash equivalents
2018
$’000
2017
$’000
11,008
11,008
15,442
15,442
(b) Non-cash financing and investing activities
During the year ended 30 September 2018, the consolidated entity did not acquire equipment via finance leases.
(c) Financing facilities
Secured bank loan rolling facilities
– Amount used(i)
– Amount unused
(i) Amount used is gross of bank establishment fees.
(d) Cash balances not available for use
There were no cash balances unavailable for use at balance date.
210,259
39,741
250,000
119,272
100,728
220,000
62
For personal use only (e) Reconciliation of profit/(loss) for the period to net cash flows from operating activities
Profit for the period
Depreciation of non-current assets
Amortisation of non-current assets
Finance costs in relation to borrowings
Fair value of investments
Repayment of foreign exchange forward contract
Net profit relating to non-current assets
Profit on the sale of water rights
Share-based payments expenses
Impairment of property, plant and equipment
Movements in working capital
– Decrease/(increase) in trade and other receivables
– Decrease in inventories
– Decrease/(increase) in other assets
– Increase/(decrease) in trade and other payables
– Increase in provisions
– Decrease in tax balances
Net cash flows from operating activities
2018
$’000
27,085
14,322
125
50
(80)
–
(348)
(1,670)
298
–
6,605
(34,865)
510
6,143
808
6,185
25,168
2017
$’000
58,284
14,293
156
–
–
259
(2,172)
(23,497)
–
22,913
1,694
13,094
(814)
(1,002)
2,756
(11,392)
74,572
(f) Changes in liabilities arising from financing activities
Current borrowings
Current obligation under finance leases
1 October 2017
Cash flows
Other
30 September
2018
16,088
246
20,123
127,442
163,653
(66)
11
191
Non-current borrowings
102,635
70,864
(127,425)
46,074
Non-current obligations under finance leases
Cumulative non-redeemable preference shares
579
394
(326)
–
119,942
90,595
22
–
50
275
394
210,587
63
Webster Limited – Annual Report 2018For personal use only Notes to the financial statements
continued
22. Related party disclosures
(a) Key management personnel compensation
Short-term employee benefits
Long-term employee benefits
Post-employment benefits
2018
$’000
2,280
298
224
2,802
15 months to
30 September
2017
$’000
1,938
218
266
2,422
(b) Transactions with key management personnel
During the financial year, where directors, their director-related entities, and executives purchased goods, the purchases were
domestic or trivial in nature, from the Group on the same terms and conditions available to other employees and customers.
The Group entered into management agreements with Australian Food and Fibre Ltd (“AFF”) (pursuant to the purchase of the Kooba
Aggregation, Bengerang Ltd and Tandou Ltd), a company in which Mr Joe Robinson is an associate. The agreement was renewed on
1 July 2017 for a 3-year term with an annual fee of $300,000 plus bonus incentives based on performance to a maximum potential
of $500,000. During the financial year ended 30 September 2018 management fees of $275,000 were paid to AFF. A further
management agreement was entered into with AFF for the management of the Tandou operations for the 2018 crops only. The value
of the management services was $200,000 with a bonus potential of $2,000,000 based on various performance achievements.
During the financial year, the management fees and bonus were paid in accordance with the agreement. For the management of the
Tandou operations AFF also incurred expenses on behalf of the Company and were reimbursed at cost for those expenses amounting
to $2,191,131, the majority of this expenditure related to harvesting costs.
The Company entered into an agreement with Air Corrigan, a company in which Mr Christopher Corrigan and Mr Joseph Corrigan
are associates. The current agreement is for the provision of the use of light aircraft to transport management to its properties. The
arrangement is charged at cost which amounted to $507,371 for the year ended 30 September 2018.
The Company supplied walnuts to Langdon Ingredients, Bakery Craft and The Natural Foods Trading Company, all companies in which
Mr Chris Langdon is an associate. The goods were supplied at arm’s length on normal commercial terms. The value of goods supplied
was $733,808 for the year ended 30 September 2018.
Other than the above, and contracts of employment, no other key management personnel have entered into a contract with the
Company during the financial period.
(c) Equity interests in related parties
Details of percentage of ordinary shares held in controlled entities are disclosed in note 18 to the financial statements.
(d) Parent entity
The parent entity of the Group is Webster Limited. The ultimate Australian parent entity is Webster Limited. There are no
contingent liabilities.
64
For personal use only 23. Parent entity disclosures
(a) Financial position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Equity
Issued capital
Reserves
Retained earnings
Total equity
(b) Financial performance
Loss for the period
Total comprehensive loss
24. Business combinations
No subsidiaries were acquired during the year ended on 30 September 2018.
2018
$’000
2017
$’000
5,464
397,472
402,936
173,155
29,446
202,601
10,644
309,696
320,340
25,822
68,279
94,101
477,865
477,865
(910)
(1,369)
(276,620)
(250,257)
200,335
226,239
15,526
15,526
10,625
10,625
65
Webster Limited – Annual Report 2018For personal use only Notes to the financial statements
continued
25. Financial instruments
(a) Capital risk management
The Group manages its capital to ensure that entities in the Group will be able to continue as a going concern while maximising the
return to stakeholders through the optimisation of the debt and equity balance.
The Group’s overall strategy remains unchanged from 30 September 2017.
The capital structure of the Group consists of debt, which includes the borrowings disclosed in note 11, cash and cash equivalents and
equity attributable to equity holders of the parent, comprising issued capital as disclosed in note 15, reserves and retained profits.
The Group operates globally, primarily through subsidiary companies established in the markets in which the Group trades. None of
the Group’s entities are subject to externally imposed capital requirements.
Gearing ratio
The Group’s Board of Directors reviews the capital structure on an annual basis. As a part of this review, the committee considers
the cost of capital and the risk associated with each class of capital. The Board of Directors of the Group in considering its overall
capital structure takes into account the payment of dividends, new share issues as well as the issue of new debt or the redemption
of existing debt.
The gearing ratio at year end was as follows.
Financial assets
Debt
Cash and cash equivalents
Net debt
Equity
Net debt to equity ratio
(i) Debt is defined as long- and short-term borrowings, as detailed in note 11.
(ii) Equity includes all capital and reserves.
(b) Categories of financial instruments
Financial assets
Cash and cash equivalents
Trade and other receivables
Financial liabilities
Trade and other payables
Borrowings
Note
2018
$’000
2017
$’000
(i)
210,587
119,942
(11,008)
(15,442)
199,579
501,484
28.5%
104,500
484,777
17.7%
(ii)
2018
$’000
2017
$’000
11,008
17,735
15,442
24,593
19,555
14,229
210,587
119,942
66
For personal use only (c) Financial risk management objectives
The Group’s key management personnel co-ordinate access to domestic and international financial markets and manage the financial
risks relating to the operations of the consolidated entity.
The Group does not enter into or trade financial instruments, including derivative financial instruments, for speculative purposes.
The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates and interest rates.
The Group enters into forward foreign exchange contracts to hedge the exchange rate risks arising on the export of produce to
Europe and Asia.
(d) Market risk
The Group’s activities expose it primarily to the financial risks of changes in foreign currency exchange rates. The Group enters into
derivative financial instruments to manage its exposure to foreign currency risk, including forward foreign exchange contracts to hedge
the exchange rate risk arising on foreign sales or exports.
There has been no change to the Group’s exposure to market risks or the manner in which these risks are managed and measured.
(e) Foreign currency risk management
The Group undertakes certain transactions denominated in foreign currencies, hence exposure to exchange rate fluctuations arise.
Exchange rate exposures are managed within approved policy parameters utilising forward foreign exchange contracts and currency
swap agreements. The Group’s exposure to foreign currency risk at balance date was as follows, based on notional amounts.
Trade and other receivables
Cash at bank
Trade and other payables
Net exposure
Trade and other receivables
Cash at bank
Trade and other payables
Net exposure
Forward foreign exchange contracts
USD
$’000
1,048
486
(453)
1,081
USD
$’000
7,047
4,304
(220)
11,131
2018
GBP
£’000
JPY
¥’000
–
–
–
–
–
55
–
55
2017
GBP
£’000
JPY
¥’000
–
–
–
–
–
55
–
55
EUR
¤’000
2,927
49
–
2,976
EUR
¤’000
4,063
503
–
4,566
It is the policy of all entities in the Group to enter into forward foreign exchange contracts to cover up to 100% of the exposure
generated by specific foreign currency payments and receipts. The Group also enters into forward foreign exchange contracts and to
manage the risk associated with anticipated horticultural export transactions. A progressive cover strategy is adopted from the time of
budgeting through to harvest when up to 90% of exposure is hedged.
As at 30 September 2018, there were USD$500,000 and EUR€1,700,000 forward foreign exchange contracts outstanding.
67
Webster Limited – Annual Report 2018For personal use only Notes to the financial statements
continued
Foreign exchange sensitivity analysis
The following table details the Group’s sensitivity to a 10% increase and decrease in the Australian dollar against the relative currency.
The sensitivity rate used is 10% as it represents management’s assessment of the possible change in foreign exchange rates. The
sensitivity analysis includes outstanding foreign currency derivatives and adjusts their fair value at the year end for a 10% change in
foreign currency rates. A positive number indicates an increase in other equity where the Australian dollar strengthens against the
respective currency. For a weakening of the Australian dollar against the respective currency.
Other comprehensive income
– Euro
– United States dollar
Profit and loss
– Euro
– United States dollar
2018
15 months to
30 September
2017
10%
$’000
–10%
$’000
10%
$’000
–10%
$’000
–
–
–
–
–
–
–
–
–
–
–
–
2018
15 months to
30 September
2017
10%
$’000
–10%
$’000
10%
$’000
(306)
(76)
(382)
250
62
312
(590)
(1,281)
(1,871)
–10%
$’000
721
1,566
2,287
There were no outstanding forward foreign exchange contracts at the reporting date (2017: nil).
(f) Interest rate risk management
The Company and the Group are exposed to interest rate risk as it borrows funds at both fixed and floating interest rates. This risk
is managed by maintaining an appropriate mix between fixed and floating rate borrowings. The Company and Group’s exposures to
interest rates on financial assets and financial liabilities are detailed in the maturity profile of the financial instruments section of this
note.
Interest rate sensitivity analysis
The sensitivity analyses below have been determined based on the exposure to interest rates for both derivative and non-derivative
instruments at the reporting date and the stipulated change taking place at the beginning of the financial year and held constant
throughout the reporting period. A 100 basis point increase or decrease is used when reporting interest rate risk internally to key
management personnel and represents management’s assessment of the possible change in interest rates.
At reporting date, if interest rates had been 100 basis points higher or lower and all other variables were held constant, the impact
on the Group is as follows.
Effect on profit and loss
2018
15 months to
30 September
2017
+1%
–1%
1%
–1%
110
(110)
154
(154)
(1,967)
2,028
(1,500)
4,452
Financial assets
Cash and cash equivalents
Financial liabilities
Borrowings
68
For personal use only The following tables detail the Group’s expected maturity for its non-derivative financial assets and contractual maturity for non-
derivative financial liabilities.
Weighted
average
effective rate
%
Less than
1 year
$’000
1 to 5
years
$’000
More than
5 years
$’000
Total
$’000
2018
Financial assets
Non-interest bearing
Trade and other receivables
Assets classified as held for sale
Variable interest rate
Cash and cash equivalents
Financial liabilities
Non-interest bearing
Trade and other payables
Other financial liabilities
Liabilities directly associated with assets
classified as held for sale
Variable interest rate
Bank loans
Fixed interest rate maturity
Finance lease liabilities
Cumulative non-redeemable preference
shares*
–
–
1.17
17,735
321
11,008
29,064
19,555
–
817
–
–
–
–
–
–
–
3.24
163,653
46,075
3.51
9.00
191
35
274
142
184,251
46,491
–
–
–
–
–
–
–
–
–
394
394
17,735
321
11,008
29,064
19,555
–
817
209,728
465
571
231,136
*Amounts disclosed in more than 5 years represent principal amounts. There is no expiration term.
69
Webster Limited – Annual Report 2018For personal use only Notes to the financial statements
continued
Weighted
average
effective rate
%
Less than
1 year
$’000
1 to 5
years
$’000
More than
5 years
$’000
Total
$’000
2017
Financial assets
Non-interest bearing
Trade and other receivables
–
24,593
Variable interest rate
Cash and cash equivalents
0.47
15,442
40,035
Financial liabilities
Non-interest bearing
Trade and other payables
–
14,229
–
–
–
Variable interest rate
Bank loans
Fixed interest rate maturity
Finance lease liabilities
Cumulative non-redeemable preference
shares*
2.97
16,088
102,635
3.51
9.00
246
35
579
142
30,598
103,356
–
–
–
–
–
394
394
24,593
15,442
40,035
14,229
118,723
825
571
134,348
*Amounts disclosed in more than 5 years represent principal amounts. There is no expiration term.
(g) Credit risk management
Credit risk refers to the risk that a counterparty will default on its contractual obligations resulting in financial loss to the Group.
The Group undertakes credit check prior to dealing with any new counterparty and obtains sufficient collateral or other security,
where appropriate, as a means of mitigating the risk of financial loss from defaults. The Group’s exposure and the credit
ratings of its counterparties are continuously monitored, and the aggregate value of transactions concluded are spread among
approved counterparties.
Trade accounts receivable consist of a large number of customers, spread across diverse industries and geographical locations.
Ongoing credit evaluation is performed on the financial condition of accounts receivable and, where appropriate, credit guarantee
insurance cover is purchased.
The Group does not have any significant credit risk exposure to any single counterparty or any group of counterparties having similar
characteristics. The credit risk on liquid funds and derivative financial instruments is limited because the counterparties are banks with
high credit-ratings assigned by international credit rating agencies.
The carrying amount of financial instruments recorded in the financial statements, net of any allowances for losses, represent the
Group’s maximum exposure to credit risk.
70
For personal use only (h) Fair value of financial instruments
The directors consider that the carrying amount of financial assets and financial liabilities recorded in the financial statements
approximate their fair value.
The fair values of financial assets and financial liabilities are determined as follows.
• The fair value of financial assets and financial liabilities with standard terms and conditions and traded on active liquid markets are
determined with reference to quoted market prices.
• The fair value of other financial assets and financial liabilities are determined in accordance with generally accepted pricing models
based on discounted cash flow analysis.
• The fair value of derivative instruments, included in hedging assets and liabilities, are calculated using quoted prices. Where such
prices are not available, use is made of discounted cash flow analysis using the applicable forward rates and yield curves for the
duration of the instruments.
The following tables detail the fair value of financial assets and financial liabilities.
Financial assets
Trade and other receivables
Financial liabilities
Cumulative non-redeemable preference shares
Trade and other payables
Bank loans
Finance lease liabilities
Carrying
amount
2018
($’000)
17,735
17,735
394
19,555
Fair
value
2018
($’000)
17,735
17,735
394
19,555
Carrying
amount
2017
($’000)
24,593
24,593
394
14,229
Fair
value
2017
($’000)
24,593
24,593
394
14,229
209,728
209,728
118,723
118,723
465
465
825
825
230,142
230,142
134,171
134,171
Some of the Group’s financial assets and financial liabilities are measured at fair value and are grouped into Levels 1 to 3 based on the
degree to which the fair value is observable.
• Level 1 fair value measurements are those derived from quoted prices (unadjusted) in active markets for identical assets or liabilities.
• Level 2 fair value measurements are those derived from inputs other than quoted prices included within Level 1 that are observable
for the asset or liability, either directly (as prices) or indirectly (derived from prices).
• Level 3 fair value measurements are those derived from valuation techniques that include inputs for the asset or liability that are not
based on observable market data (unobservable inputs).
There were no financial assets and financial liabilities measured at fair value that were outstanding at the end of the reporting period.
71
Webster Limited – Annual Report 2018For personal use only Notes to the financial statements
continued
(i) Liquidity risk management
The Group manages liquidity risk by maintaining adequate reserves, banking facilities and reserve borrowing facilities by continually
monitoring forecasts and actual cash flows and matching the maturity profiles of financial assets and liabilities. The following tables
detail the contractual maturity (including future interest) for non-derivative financial liabilities. The tables have been drawn up based on
the undiscounted cash flows of liabilities based on the earliest date on which the Group earned or was required to pay.
The following table details the Group’s liquidity analysis for its derivative financial instruments. The table has been drawn up based on
the undiscounted contractual net cash inflows and outflows on derivative instruments that settle on a net basis, and the undiscounted
gross inflows and outflows on those derivatives that require gross settlement.
The following tables detail the Group’s expected maturity for its non-derivative financial assets and contractual maturity for non-
derivative financial liabilities.
Weighted
average
effective rate
%
Less than
1 year
$’000
1 to 5
years
$’000
More than
5 years
$’000
Total
$’000
2018
Financial liabilities
Non-interest bearing
Trade and other payables
Liabilities directly associated with assets
classified as held for sale
Variable interest rate
Bank loans
Fixed interest rate maturity
Finance lease liabilities
Cumulative non-redeemable preference
shares*
2017
Financial liabilities
Non-interest bearing
–
–
19,555
817
–
–
3.24
167,806
52,983
3.51
9.00
208
35
282
142
188,421
53,407
–
–
–
–
394
394
19,555
817
220,789
490
571
242,222
Weighted
average
effective rate
%
Less than
1 year
$’000
1 to 5
years
$’000
More than
5 years
$’000
Total
$’000
Trade and other payables
–
14,229
–
Variable interest rate
Bank loans
Fixed interest rate maturity
Finance lease liabilities
Cumulative non-redeemable preference
shares*
2.97
18,322
111,975
3.51
9.00
204
35
579
142
32,790
112,696
–
–
–
394
394
14,229
130,297
783
571
145,880
*Amounts disclosed in more than 5 years represent principal amounts. There is no expiration term.
Projection is based on the likely outcome of the facilities given the interest rates and margins at the reporting date up until the contractual maturity of the facilities.
The projection is based on the undiscounted cash flows.
72
For personal use only Recognition and measurement
Webster enters into a variety of derivative
financial instruments to manage our
exposure to foreign exchange rate risks
and interest rate risk, including forward
foreign exchange contracts and interest
rate swaps.
Derivatives are initially recognised at fair
value on the date a derivative contract
is entered into and are subsequently
remeasured to their fair value at each
reporting date. The resulting gain or loss
is recognised in profit immediately, unless
the derivative is designated and effective
as a hedging instrument, in which event
the timing of the recognition in profit and
loss depends on the nature of the hedge
relationship.
The Group designates certain derivatives
as hedges of highly probable forecast
transactions (cash flow hedges).
Cash flow hedge – The effective portion
of changes in the fair value of derivatives
that are designated and qualify as cash
flow hedges is deferred in equity. The
gain or loss relating to the ineffective
portion is recognised immediately in profit
and loss.
Amounts deferred in equity are recycled
in profit and loss in the period when
the hedged item is recognised in profit
or loss. However, when the forecast
transaction that is hedged results in
the recognition of a non-financial asset
or non-financial liability, the gains and
losses previously deferred in equity are
transferred from equity and included in
the initial measurement of the cost of the
asset or liability.
We discontinued hedge accounting when
Webster Limited revokes the hedging
relationship. The hedge instrument
expires or is sold, terminates or
exercised, or no longer qualifies for
hedge accounting. Any cumulative gain or
loss at that time remains in equity and is
recognised when the forecast transaction
is ultimately recognised in profit and
loss. When a forecast transaction is no
longer expected to occur, the cumulative
gain or loss that was deferred in equity
is recognised immediately in profit
and loss. When the Group revokes
the hedging relationship, the hedge
instrument expires or is sold, terminated
or exercised, or no longer qualifies for
hedge accounting. Any cumulative gain or
loss at that time remains in equity and is
recognised when the forecast transaction
is ultimately recognised in profit or loss.
When a forecast transaction is no longer
expected to occur, the cumulative gain
or loss that was deferred in equity is
recognised immediately in profit or loss.
Derivatives that do not qualify for
hedge accounting – Certain derivative
instruments do not qualify for hedge
accounting. Changes in the fair value
of any derivative instruments that do
not qualify for hedge accounting are
recognised immediately in profit and loss.
26. Events after the reporting
period
The Group entered into a sale of one of
its subsidiaries, Bengerang Pty Limited
(“Bengerang”) to AFF Water Pty Limited,
a related party, for $132.7 million. On
31 October 2018 at an Extraordinary
General Meeting the shareholders voted
in favour of the sale of Bengerang.
The associated assets and liabilities
of Bengerang have been classified
as held for sale as at 30 September
2018 in the Consolidated statement of
financial position.
There have been no other matters
or circumstances, other than that
referred to in the financial statements
or notes thereto, that have arisen
since 30 September 2018 that have
significantly affected, or may significantly
affect, the operations of the Group,
the results of those operations or the
state of affairs of the Group in future
financial years.
27. Other accounting policies
Cash and cash equivalents – Cash
comprises cash on hand and demand
deposits. Cash equivalents are short-
term, highly liquid investments that are
readily convertible to known amounts
of cash and which are subject to an
insignificant risk of changes in value and
have a maturity of 3 months or less at
the date of acquisition. Bank overdrafts
are shown within borrowings in current
liabilities in the balance sheet.
Walnut Orchards – Walnut Orchards
are classified as property, plant and
equipment. Additions to the Walnut
Orchards are valued at cost and are
depreciated from the year reach maturity.
Growing Crop – The Group values the
growing walnut crop in accordance with
AASB 141 Agriculture. This valuation
takes into account current selling prices
and current growing, processing and
selling costs. The calculated crop value
is then discounted to take into account
that it is only partly developed, and then
further discounted by a suitable factor
to take into account the agricultural risk
until crop maturity. Where little biological
transformation has occurred in the
growing crop, cost is used as an estimate
of fair value.
The fair value of walnuts and cotton
harvested during the period and
recognised in revenue is determined as
the fair value of walnuts and cotton after
harvest and picking less estimated point
of sale costs.
The fair value of livestock at the reporting
date has been determined by using an
external valuation.
Financial assets – Investments are
recognised and derecognised on trade
date where purchase or sale of an
investment is under a contract whose
terms require delivery of the investment
within the timeframe established by
the market concerned, and are initially
measured at fair value. Subsequent
to initial recognition, investments in
subsidiaries are measured at cost in the
company financial statements.
73
Webster Limited – Annual Report 2018For personal use only Notes to the financial statements
continued
Effective interest method – The
effective interest method is a method
of calculating the amortised cost of a
financial asset and of allocating interest
income over the relevant period. The
effective interest rate is the rate that
exactly discounts estimated future cash
receipts (including all fees on points
paid or received that form an integral
part of the effective interest rate,
transaction costs and other premiums or
discounts) through the expected life of
the financial asset or, where appropriate,
a shorter period.
The Group recognises income on an
effective interest rate basis for debt
instruments other than those financial
assets “at fair value through profit
or loss”.
Financial assets at fair value through
profit or loss – We classify financial
assets as financial assets at fair
value through profit or loss where the
financial asset:
• has been acquired principally for the
purpose of selling in the near future;
• is a part of an identified portfolio of
financial instruments that Webster
manages together and has a recent
actual pattern of short-term profit-
taking; or
• is a derivative that is not designated
and effective as a hedging instrument.
Financial assets at fair value through
profit or loss are stated at fair value, with
any resultant gain or loss recognised
in profit or loss. The net gain or loss
recognised in profit or loss incorporates
any dividend or interest earned on the
financial asset. The Group determines fair
value in the manner described in note 25.
Loans and receivables – Trade
receivables, loans and other receivables
that have fixed or determinable payments
that are not quoted in an active market
are classified as loans and receivables.
The Group records loans and receivables
at amortised cost using the effective
interest method less impairment. Interest
is recognised by applying the effective
interest rate.
Impairment of financial assets –
Financial assets, other than those at
fair value through profit and loss, are
assessed for indicators of impairment
at each balance sheet date. Financial
assets are impaired where there is
objective evidence that as a result of
one or more events that occurred after
the initial recognition of the financial
asset the estimated future cash flows
of the investment have been impacted.
For financial assets carried at amortised
cost, the amount of impairment is the
difference between the asset’s carrying
amount and the present value of
estimated future cash flows, discounted
at the original effective interest rate.
The carrying amount of the financial asset
is reduced by the impairment loss directly
for all financial assets with the exception
of trade receivables where the carrying
amount is reduced through the use of
an allowance account. When the trade
receivable is uncollectible, it is written
off against the allowance account.
We credit subsequent recoveries of
amounts previously written off against
the allowance account. Changes in the
carrying amount of the allowance account
are recognised in profit and loss.
If in a subsequent period the amount of
the impairment loss decreases and the
decrease can be related objectively to
an event occurring after the impairment
loss was recognised, the previously
recognised impairment loss is reversed
through profit and loss to the extent the
carrying amount of the investment at the
date the impairment is reversed does not
exceed what the amortised cost would
have been had the impairment not been
recognised.
Financial instruments: debt and
equity instruments – The Group
classifies debt and equity instruments as
either liabilities or as equity in accordance
with the substance of the contractual
arrangement. An equity instrument is any
contract that evidences a residual interest
in the assets of an entity after deducting
all of its liabilities. The Group records
equity instruments issued by Webster
as the proceeds received, net of direct
issue costs.
Financial guarantee contract
liabilities – The Group measures financial
guarantee contract liabilities initially at
their fair value and subsequently at the
higher of:
• the amount of the obligation under the
contract, as determined under AASB
137 Provisions, Contingent Liabilities
and Contingent Assets; and
• the amount initially recognised
less, where appropriate, cumulative
amortisation in accordance with
revenue recognition policies described
in note 2.
Financial liabilities – The Group
classifies financial liabilities as either
financial liabilities “at fair value through
profit or loss” or other financial liabilities.
Other financial liabilities – Other
financial liabilities, including borrowings,
are initially measured at fair value, net of
transaction costs. Other financial liabilities
are subsequently measured at amortised
cost using the effective interest method,
with interest expense recognised on an
effective yield basis.
Foreign currency – In preparing the
financial statements of the individual
entities, transactions in currencies
other than the entity’s functional
currency are recorded at the rates of
exchange prevailing on the dates of the
transactions. At each balance sheet date,
monetary items denominated in foreign
currencies are retranslated at the rates
prevailing at the balance date.
Non-monetary items – Non-monetary
items carried at fair value that are
denominated in foreign currencies, are
retranslated at the rates prevailing on the
date when the fair value was determined.
Non-monetary items that are measured
in terms of historical cost in a foreign
currency are not retranslated.
74
For personal use only Exchange differences – These are
recognised in profit or loss in the period
in which they arise except for:
• exchange differences which relate to
assets under construction for future
productive use are included in the
cost of those assets where they are
regarded as an adjustment to interest
costs on foreign currency borrowings;
• exchange differences on transactions
entered into in order to hedge certain
foreign currency risks (refer to
note 25(e)); and
• exchange differences on monetary
items receivable from or payable to a
foreign operation for which settlement
is neither planned nor likely to occur,
which form part of the net investment
in a foreign operation, are recognised
in the foreign currency translation
reserve and recognised in profit or loss
on disposal of the net investment.
Goods and Services Tax – Revenues,
expenses and assets are recognised net
of the amount of goods and services tax
(GST), except:
• where the amount of GST incurred
is not recoverable from the taxation
authority, it is recognised as part of the
cost of acquisition of an asset or as
part of an item of expense; or
• for receivables and payables which are
recognised inclusive of GST.
The net amount of GST recoverable from,
or payable to, the taxation authority
is included as part of receivables or
payables.
The Group includes cash flows in the
cash flow statement on a gross basis.
The GST component of cash flows arising
from investing and financing activities
which is recoverable from, or payable
to, the taxation authority is classified as
operating cash flows.
Government grants – These are
assistance by the government in the
form of transfers of resources to
Webster Limited in return for past or
future compliance with certain conditions
relating to the operating activities.
Government grants include government
assistance where there are no conditions
specifically relating to the operating
activities of the consolidated entity other
than the requirement to operate in certain
regions or industry sectors.
The Group recognises government grants
relating to income as income over the
periods necessary to match them with
related costs. Government grants that are
receivable as compensation for expenses
or losses already incurred or for the
purpose of giving immediate financial
support to Webster with no future related
costs are recognised as income of the
period in which they become receivable.
Government grants whose primary
condition is that Webster Limited should
purchase, construct or otherwise acquire
non-current assets are recognised as
a reduction in the cost of non-current
assets in the Statement of financial
position upon completion of the project.
Business combinations – The Group
accounts for acquisitions of subsidiaries
and businesses using the acquisition
method. We measure the consideration
for each acquisition at the aggregate of
the fair values (at the date of exchange)
of assets given, liabilities incurred or
assumed, and equity instruments issued
by Webster Limited in exchange for
control of the acquiree.
The Group recognises acquisition-related
costs in profit or loss as incurred.
Where applicable, the consideration
for the acquisition includes any asset
or liability resulting from a contingent
consideration arrangement, measured
at its acquisition date fair value. The
Group adjusts subsequent changes in
such fair values are adjusted against the
cost of acquisition where they qualify as
measurement period adjustments (see
below). All other subsequent changes in
the fair value of contingent consideration
classified as an asset or liability are
accounted for in accordance with relevant
standards. Changes in the fair value of
contingent consideration classified as
equity are not recognised.
Where a business combination is achieved
in stages, the Group measures its
previously held interests in the acquired
entity to fair value at the acquisition date
(that is, the date Webster attains control)
and recognise the resulting gain or loss, if
any. Amounts arising from interests in the
acquiree prior to the acquisition date that
have previously been recognised in other
comprehensive income are reclassified
to profit or loss, where such treatment
would be appropriate if that interest were
disposed of. The acquiree’ s identifiable
assets, liabilities and contingent liabilities
that meet the conditions for recognition
under AASB 3 are recognised at their fair
value at the acquisition date, except that:
• deferred tax assets or liabilities and
liabilities or assets related to employee
benefit arrangements are recognised
and measured in accordance with
AASB 112 Income Taxes and AASB
119 Employee Benefits respectively;
• liabilities or equity instruments related
to the replacement by the Group of
an acquiree’s share-based payment
awards are measured in accordance
with AASB 2 Share-based Payment;
and
• assets (or disposal groups) that
are classified as held for sale in
accordance with AASB 5 Non-current
Assets Held for Sale and Discontinued
Operations are measured in
accordance with that standard.
75
Webster Limited – Annual Report 2018For personal use only Critical accounting judgements and
key sources of estimation uncertainty
– In the application of the Group’s
accounting policies, management is
required to make judgements, estimates
and assumptions about the carrying
values of assets and liabilities that are not
readily apparent from other sources. The
estimates and associated assumptions
are based on historical experience and
other factors that are considered to
be relevant.
The critical judgements and key
assumptions that management has made
that have the most significant effect on
the amounts recognised in the financial
statements are impairment of goodwill
(note 9), Carrying value of permanent
water rights (note 9) and inventories and
biological assets (note 6).
Notes to the financial statements
continued
Material prior period errors shall be
retrospectively corrected in the first
financial statements authorised for issue
after their discovery by:
(a) restating the comparative amounts for
the prior period(s) presented in which
the error occurred; or
(b) if the error occurred before the
earliest prior period presented,
restating the opening balances of
assets, liabilities and equity for the
earliest prior period presented.
However, to the extent that it is
impracticable to determine either:
(a) the period-specific effects of an error
on comparative information for one
or more prior periods presented,
the entity shall restate the opening
balances of assets, liabilities and
equity for the earliest period for
which retrospective restatement is
practicable (which may be the current
period); or
(b) the cumulative effect, at the beginning
of the current period, of an error
on all prior periods, the entity shall
restate the comparative information
to correct the error prospectively
from the earliest date practicable.
The correction of a prior period
error is excluded from profit or
loss for the period in which the
error is discovered. Any information
presented about prior periods,
including any historical summaries of
financial data, is restated as far back
as is practicable.
If the initial accounting for a business
combination is incomplete by the end
of the reporting period in which the
combination occurs, Webster Limited
reports provisional amounts for the items
for which the accounting is incomplete.
We adjust those provisional amounts
during the measurement period (see
below), or additional assets or liabilities
are recognised, to reflect new information
obtained about facts and circumstances
that existed as of the acquisition date
that, if known, would have affected the
amounts recognised as of that date.
The measurement period is the period
from the date of acquisition to the date
the Group obtains complete information
about facts and circumstances that
existed as of the acquisition date – and
is subject to a maximum of 1 year.
Share-based payments – The Group
measures equity-settled share-based
payments to employees at the fair
value of the equity instruments at the
grant date. Fair value is measured by
use of a Black-Scholes pricing model
taking into account the terms and
conditions upon which the equity-settled
share-based payments were granted.
The fair value determined at the grant
date of the equity-settled share-based
payments is expensed on a straight-line
basis over the vesting period, with a
corresponding increase in equity. At the
end of each reporting period, the Group
revises its estimate of the number of
equity instruments expected to vest.
The Group recognises the impact of
the revision of the original estimates, if
any, is recognised in profit or loss such
that the cumulative expense reflects the
revised estimate, with a corresponding
adjustment to the equity-settled employee
benefits reserve.
76
For personal use only 28. New accounting standards
New and amended standards and interpretations
Amendments to AASB 107 Statement of Cash Flows: Disclosure Initiative
The amendments require entities to provide disclosure of changes in their liabilities arising from financing activities, including both
changes arising from cash flows and non-cash changes. The Group has provided the information for the current period in note 21 (f).
Certain new accounting standards and interpretations have been published that are not mandatory for the reporting year ended
30 September 2018. These have not been adopted early by Webster. The assessment of the impact of these new standards is set
out below.
Standards and interpretations in issue not yet adopted
Standard/interpretation
Nature of change
Impact on financial statements
AASB 9 Financial Instruments (effective
for Webster accounting period starting on
1 October 2018)
AASB 15 Revenue from Contracts with
Customers’ (effective for Webster for the
accounting period starting on 1 October
2018)
AASB 16 Leases (effective for Webster
for the accounting period starting on
1 October 2019)
AASB 9 introduces various new concepts
including:
• amended rules for hedge accounting;
• changes to the categorisation and
measurement of financial assets
particularly affecting those measured
as available for sale (“AFS”) or held to
maturity (“HTM”);
• new methods of calculating impairment
losses of financial assets; and
• a change to the rules surrounding
the modification of financial liabilities
measured at amortised cost.
AASB 15 is based on the principle that
revenue is recognised when control of a
good or service transfers to a customer.
This new standard requires a five-step
analysis of transactions to determine
whether, how much and the point at which
revenue is recognised. It applies to all
contracts with customers except leases,
financial instruments and insurance
contracts.
AASB 16 requires recognition of a right-of
use asset along with the associated lease
liability where the entity is a lessee. An
interest expense will be recognised in the
profit or loss using the effective interest
rate method, and the right-of-use asset
will be depreciated. Lessor accounting
will largely remain unchanged.
The Group will first apply AASB 9 in
the financial year beginning 1 October
2018. The Group is in the process
of finalising its assessment of the
requirements of the new standard and its
impact on the Group’s financial assets
or financial liabilities for the year ended
30 September 2019.
The Group will first apply AASB 15 in the
financial year beginning 1 October 2018.
The Group is in the process of finalising
its assessment of the requirements of
the new standard and its impact on the
Group’s financial statements for the year
ended 30 September 2019.
The Group will first apply AASB 16 in the
financial year beginning 1 October 2019.
The Group is in the process of finalising
its assessment of the requirements of
the new standard and its impact on the
Group’s financial statements for the year
ended 30 September 2020.
77
Webster Limited – Annual Report 2018For personal use only Auditor’s report
Ernst & Young
200 George Street
Sydney NSW 2000 Australia
GPO Box 2646 Sydney NSW 2001
Tel: +61 2 9248 5555
Fax: +61 2 9248 5959
ey.com/au
Independent Auditor's Report to the Members of Webster Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of Webster Limited (the Company) and its subsidiaries (collectively
the Group), which comprises the consolidated statement of financial position as at 30 September 2018,
the consolidated statement of profit or loss and comprehensive income, consolidated statement of
changes in equity and consolidated statement of cash flows for the year then ended, notes to the financial
statements, including a summary of significant accounting policies, and the directors' declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
a)
b)
giving a true and fair view of the consolidated financial position of the Group as at 30 September
2018 and of its consolidated financial performance for the year ended on that date; and
complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for Opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial
Report section of our report. We are independent of the Group in accordance with the auditor
independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting
Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (the
Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
Key Audit Matters
Key audit matters are those matters that, in our professional judgment, were of most significance in our
audit of the financial report of the current year. These matters were addressed in the context of our audit
of the financial report as a whole, and in forming our opinion thereon, but we do not provide a separate
opinion on these matters. For each matter below, our description of how our audit addressed the matter
is provided in that context.
We have fulfilled the responsibilities described in the Auditor’s Responsibilities for the Audit of the
Financial Report section of our report, including in relation to these matters. Accordingly, our audit
included the performance of procedures designed to respond to our assessment of the risks of material
misstatement of the financial report. The results of our audit procedures, including the procedures
performed to address the matters below, provide the basis for our audit opinion on the accompanying
financial report.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
78
For personal use only
1. Assets and liabilities classified as held for sale
Report on the Audit of the Remuneration Report
Opinion on the Remuneration Report
Why significant
How our audit addressed the key audit matter
We have audited the Remuneration Report included in pages 22 to 29 of the directors' report for the year
ended 30 September 2018.
Our audit procedures included the following:
On 17 August 2018, the Group entered into a
share purchase agreement to divest its wholly
owned subsidiary, Bengerang Limited
(‘Bengerang’). Bengerang holds both
agricultural and water assets in northern NSW.
In our opinion, the Remuneration Report of Webster Limited for the year ended 30 September 2018,
complies with section 300A of the Corporations Act 2001.
• We considered the Group’s assessment of the
Bengerang assets and liabilities as being
classified as ‘held for sale’ in accordance with
Australian Accounting Standards.
Responsibilities
• We assessed whether all assets and liabilities
related to Bengerang were identified and
The directors of the Company are responsible for the preparation and presentation of the Remuneration
included in the held for sale classification and
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
disclosures.
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian
Auditing Standards.
The sale was classified in accordance with
Australian Accounting Standards, as ‘held for
sale’. Accordingly, all assets and liabilities of
Bengerang are presented as current at 30
September 2018. Furthermore, bank loans of
$132.5m, secured against the Bengerang
assets, are classified as current on the basis this
debt has been repaid on the sale of Bengerang.
secured against the Bengerang assets as a
current liability.
• We assessed the classification of loans
• We assessed the value of the ‘held for sale’
assets to ensure their carrying value is
recoverable.
• We considered the adequacy of the
disclosures included in Note 14 of the
financial report.
The sale was conditional upon a number of
factors including the approval of Shareholders,
which was achieved on 31 October 2018.
Settlement occurred on 7 November 2018 and
as such this is disclosed in Note 26 of the
financial report as a subsequent event.
Ernst & Young
The sale of Bengerang is significant for the year
ended 30 September 2018 due to the value of
the anticipated proceeds from the sale, together
with the impact of the classification of the assets
and liabilities of $133.8m and $2.9m
respectively, being presented as current.
Note 14 of the financial report sets out the
nature of the amounts comprising the ‘held for
sale’ assets and liabilities.
Gregory J Logue
Partner
Sydney, 4 December 2018
A member firm of Ernst & Young Global Limited
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Liability limited by a scheme approved under Professional Standards Legislation
79
Webster Limited – Annual Report 2018For personal use only
Auditor’s report
continued
2. Recoverability of Goodwill
Report on the Audit of the Remuneration Report
Opinion on the Remuneration Report
Why significant
How our audit addressed the key audit matter
We have audited the Remuneration Report included in pages 22 to 29 of the directors' report for the year
ended 30 September 2018.
At 30 September 2018, goodwill of $25.9m was
recorded in the Group’s consolidated statement
of financial position.
Our audit procedures included the following:
• We assessed the determination of the
In our opinion, the Remuneration Report of Webster Limited for the year ended 30 September 2018,
complies with section 300A of the Corporations Act 2001.
Group’s cash generating units (CGUs) used in
the impairment assessment.
All of the goodwill is attributable to the
’Agricultural – Cropping’ cash generating unit
(‘CGU’) of the Group.
Responsibilities
assets and liabilities included in the carrying
value of the Agricultural Cropping CGU, to
The directors of the Company are responsible for the preparation and presentation of the Remuneration
which the goodwill is attributed.
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
• We tested the mathematical accuracy of the
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian
FVLCD calculation, including the consistency
Auditing Standards.
of relevant data.
In accordance with Australian Accounting
Standards, goodwill should be tested for
impairment annually to ensure it is not recorded
at an amount in excess of its recoverable
amount.
• We considered the appropriateness of the
The recoverable amount is the higher of the fair
value less costs to dispose (FVLCD) and value in
use (VIU). The Group has relied on the FVLCD in
their assessment of the impairment of goodwill.
Ernst & Young
The assessment of impairment of goodwill was
considered a key audit manner as the
assessment involves assumptions used to
determine the market value of the property
assets and Water Right assets used in the FVLCD
calculation.
Gregory J Logue
Partner
Sydney, 4 December 2018
• We assessed whether the FVLCD of the
underlying properties and Water Right asset
exceeded the carrying value of the
Agriculture Cropping’ CGU, inclusive of
goodwill.
• We reviewed a sample of property and Water
Right asset valuations applied in deriving the
FVLCD of the CGU, as determined by the
Directors using an independent valuation
expert. This review included the involvement
of our real estate and valuation specialists in
its execution.
• We considered the competence, capabilities
and objectivity of the Group’s independent
valuation expert.
• We considered the adequacy of the
disclosures included in Note 9 of the financial
report.
A member firm of Ernst & Young Global Limited
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Liability limited by a scheme approved under Professional Standards Legislation
80
For personal use only
Report on the Audit of the Remuneration Report
3. Carrying Value of Water Rights
Opinion on the Remuneration Report
Why significant
How our audit addressed the key audit matter
Responsibilities
We have audited the Remuneration Report included in pages 22 to 29 of the directors' report for the year
ended 30 September 2018.
The carrying value of the Water Right assets are
significant given the size of those assets relative
to total assets.
At 30 September 2018, Water Right assets of
$161.9m were recorded on the Group’s
consolidated statement of financial position. This
represents 21.3% of the Group’s total assets.
In our opinion, the Remuneration Report of Webster Limited for the year ended 30 September 2018,
complies with section 300A of the Corporations Act 2001.
Our audit procedures included the following:
• We assessed the Group’s accounting policies
with respect to Water Right assets for
compliance Australian Accounting Standards.
• We considered the competence, capabilities and
objectivity of those responsible for determining
the market value of the Water Right assets.
The directors of the Company are responsible for the preparation and presentation of the Remuneration
• We assessed the market value assessment by
Report in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an
selecting a sample of the water right asset
opinion on the Remuneration Report, based on our audit conducted in accordance with Australian
valuations and compared these to recent sales
Auditing Standards.
evidence. This work included the involvement of
Ernst & Young valuation specialists in its
execution.
These assets are considered to have an indefinite
useful life and are assessed for impairment by
the Group at least annually.
The impairment assessment involves ensuring
the Fair Value of these Water Right assets meets
or exceeds their carrying value. Fair Value has
been assessed by the Group with respect to the
current market prices of water licenses.
• We considered the adequacy of the disclosures
included in Note 9 of the financial report.
Ernst & Young
The Group has disclosed the basis for
determining the recoverable amount of Water
Rights within Note 9(d) of the financial report.
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
Gregory J Logue
included in the Company’s 2018 Annual Report, but does not include the financial report and our
Partner
auditor’s report thereon.
Sydney, 4 December 2018
Our opinion on the financial report does not cover the other information and accordingly we do not
express any form of assurance conclusion thereon, with the exception of the Remuneration Report and
our related assurance opinion.
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.
A member firm of Ernst & Young Global Limited
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
Liability limited by a scheme approved under Professional Standards Legislation
81
Webster Limited – Annual Report 2018For personal use only
Auditor’s report
continued
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 relating 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.
As part of an audit in accordance with the Australian Auditing Standards, we exercise professional
judgment and maintain professional scepticism throughout the audit. We also:
Identify and assess the risks of material misstatement of the financial report, whether due to fraud
or error, design and perform audit procedures responsive to those risks, and obtain audit evidence
that is sufficient and appropriate to provide a basis for our opinion. The risk of not detecting a
material misstatement resulting from fraud is higher than for one resulting from error, as fraud
may involve collusion, forgery, intentional omissions, misrepresentations, or the override of
internal control.
Obtain an understanding of internal control relevant to the audit in order to design audit
procedures that are appropriate in the circumstances, but not for the purpose of expressing an
opinion on the effectiveness of the Group’s internal control.
Evaluate the appropriateness of accounting policies used and the reasonableness of accounting
estimates and related disclosures made by the directors.
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82
For personal use only
Conclude on the appropriateness of the directors’ use of the going concern basis of accounting and,
based on the audit evidence obtained, whether a material uncertainty exists related to events or
conditions that may cast significant doubt on the Group’s ability to continue as a going concern. If
we conclude that a material uncertainty exists, we are required to draw attention in our auditor’s
report to the related disclosures in the financial report or, if such disclosures are inadequate, to
modify our opinion. Our conclusions are based on the audit evidence obtained up to the date of our
auditor’s report. However, future events or conditions may cause the Group to cease to continue as
a going concern.
Evaluate the overall presentation, structure and content of the financial report, including the
disclosures, and whether the financial report represents the underlying transactions and events in a
manner that achieves fair presentation.
Obtain sufficient appropriate audit evidence regarding the financial information of the entities or
business activities within the Group to express an opinion on the financial report. We are
responsible for the direction, supervision and performance of the Group audit. We remain solely
responsible for our audit opinion.
We communicate with the directors regarding, among other matters, the planned scope and timing of the
audit and significant audit findings, including any significant deficiencies in internal control that we
identify during our audit.
We also provide the directors with a statement that we have complied with relevant ethical requirements
regarding independence, and to communicate with them all relationships and other matters that may
reasonably be thought to bear on our independence, and where applicable, related safeguards.
From the matters communicated to the directors, we determine those matters that were of most
significance in the audit of the financial report of the current year and are therefore the key audit
matters. We describe these matters in our auditor’s report unless law or regulation precludes public
disclosure about the matter or when, in extremely rare circumstances, we determine that a matter should
not be communicated in our report because the adverse consequences of doing so would reasonably be
expected to outweigh the public interest benefits of such communication.
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
83
Webster Limited – Annual Report 2018For personal use only
Auditor’s report
continued
Report on the Audit of the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 22 to 29 of the directors' report for the year
ended 30 September 2018.
In our opinion, the Remuneration Report of Webster Limited for the year ended 30 September 2018,
complies with section 300A of the Corporations Act 2001.
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.
Ernst & Young
Gregory J Logue
Partner
Sydney, 4 December 2018
A member firm of Ernst & Young Global Limited
Liability limited by a scheme approved under Professional Standards Legislation
84
For personal use only
ASX additional information
Additional information required by the Australian Securities Exchange Limited and not shown elsewhere in this report is as follows.
Number and distribution of shareholders
Number and distribution of shareholders
1–1,000
1,001–5,000
5,001–10,000
10,001–100,000
100,001 and over
Total number of shareholders
Total number of issued shares listed
Number of shareholders holding less than a marketable parcel
Voting rights
Ordinary
Cumulative
preference
629
1,289
688
1,182
155
3,943
163
13
5
10
0
191
361,245,163
394,000
134
131
Section 44 of the Company’s Constitution govern the voting rights of members. In summary, but without prejudice to the provisions
of the Constitution, at any meeting of the Company every member present in person or by proxy or by power of attorney or by duly
authorised representative shall on a show of hands be entitled to vote and, on a poll be entitled to one vote for each share held.
Preference shareholders’ voting rights are limited to matters affecting rights of such shareholders.
Substantial shareholders
AFF Properties No 1 Pty Ltd atf The AFF Operations Trust
Belfort Investment Advisors Limited
Verolot Limited
Kaplan Equity Limited
Mr Bevan David Cushing as trustee of the KD Cushing Family Trust
Mr Peter Robin Joy
Number
of shares
65,260,215
45,132,434
38,561,181
32,474,953
20,244,413
20,140,116
%
18.07
12.49
10.67
8.99
5.60
5.58
Class of
shares
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
Ordinary
85
Webster Limited – Annual Report 2018For personal use only ASX additional information
continued
Twenty largest shareholders
Listed ordinary shares
AFF Properties No 1 Pty Ltd atf The AFF Operations Trust
Bell Potter Nominees Ltd
Verolot Limited
National Nominees Limited
Belfort Investment Advisors Limited
Mr Peter Robin Joy
Sir Selwyn John Cushing and Mr Bevan David Cushing
HSBC Custody Nominees (Australia) Limited
Rel-Trust Management Limited
Eagle Securities Limited
Rathvale Pty Limited
Sandhurst Trustees Ltd
Xetrov Pty Limited
J P Morgan Nominees Australia Limited
Ashfield Farm Limited
Mr Andrew Roy Newbery Sisson
Ossa Pty Ltd
Citicorp Nominees Pty Limited
Tasman Super Pty Limited
BNP Paribas Noms (NZ) Ltd
Number
of shares
65,260,215
37,140,914
32,215,862
29,979,725
21,272,722
20,140,116
11,431,136
9,577,484
5,559,529
4,933,469
4,362,236
4,308,121
3,910,000
3,813,420
3,253,748
3,018,769
3,000,000
2,758,916
1,947,836
1,850,000
%
18.07
10.28
8.92
8.00
5.89
5.58
3.16
2.65
1.54
1.37
1.21
1.19
1.08
1.06
0.90
0.84
0.83
0.76
0.54
0.51
86
For personal use only Twenty largest shareholders
Listed 9% cumulative preference shares
Mr David Calvert and Mrs Lorne Calvert
Winpar Holdings Limited
Mr Brian David Faulkner and Mrs Wendy Jean Faulkner
Mr Brian David Faulkner
Common Sense Investments Pty Ltd
Mr Leonard Wallace Boyd
Meggsies Pty Ltd
Mrs Frances Lorne Calvert
Mrs June Lorimer Tutty
Anchorfield Nominees Pty Ltd
Lesley Patricia Colman
Wilcorp No 41 Pty Limited
Dr Gordon Bradley Elkington
Mary Graham Neild
Mr David John Doberer and Mrs Joyce Lynette Carrey
Mrs Gwendoline Mabel Shelton
Seven Bob Investments Pty Ltd
Dr David Megirian
J P Morgan Nominees Australia Limited
Ms Annabel Peta Sophie Catto
Number of
shares
73,155
55,278
50,000
35,019
15,908
15,556
14,334
14,156
14,062
12,034
11,800
7,800
7,340
6,800
5,800
4,062
3,500
2,666
2,664
2,232
%
18.57
14.03
12.69
8.89
4.04
3.95
3.64
3.59
3.57
3.05
2.99
1.98
1.86
1.73
1.47
1.03
0.89
0.68
0.68
0.57
87
Webster Limited – Annual Report 2018For personal use only Board of Directors
Chris Corrigan, Chairman
Maurice Felizzi, Executive Director
David Cushing, Non- Executive Director
David Fitzsimons, Non-Executive Director
Ross Burling, Non-Executive Director
Joseph Corrigan, Alternate Director for Chris Corrigan
Company Secretary
Maurice Felizzi
corporate@websterltd.com.au
For personal use only Registered office
148 Colinroobie Road
Leeton NSW 2705
ACN 009 476 000
T +61 2 6951 3000
F +61 2 6951 3001
www.websterltd.com.au
corporate@websterltd.com.au
Share Registry
Computershare Investor Services Pty Ltd
452 Johnston Street
Abbotsford VIC Australia 3067
Investor enquiries within Australia
T 1300 850 505
Investor enquiries outside Australia
T + 61 3 9415 4000
www.computershare.com/au
web.queries@computershare.com
Webster Limited shares are listed on
the Australian Securities Exchange (ASX)
For personal use only For personal use only