The Directors have pleasure in submitting to Shareholders the 14th Annual Report and audited accounts of the Company for the year ended 30 June 2001 together with the CEO's review of the Australian and New Zealand operations. Business Activities The Group's sole business activities during the 2000/00 financial year continued to be jewellery retailing and manufacturing. Consolidated Financial Results The Group has recorded a tax paid surplus of $10,039,000 for the year ended 30 June 2001 (2000 - $9,939,000). This surplus was achieved on a turnover of $181,168,000 (2000 - $181,983,000). The accounts for the year ended 30 June 2001 have been presented in accordance with the accounting principles and policies detailed on pages 28 and 29 of this Report.
*Note - The final dividend of 8.5¢ per share has not been included. See change in Accounting Policy in the notes to the Financial Statements. Shareholders' Funds/Reserves Total Shareholders' Funds of the Group now stand at $49,568,000, an increase of $6,981,000 over the previous year. The Group's reserves at 30 June 2001 totalled $41,856,000.
Equity Ratio/Cash Flows At 30 June 2001, Shareholders' Funds accounted for 54% of the total assets employed by the Group compared to 52% the year before. The change in accounting policy for the final Operating cash flows for the Group amounted to $7,887,000 for the year compared to Dividends Your Directors paid an interim dividend of 6.5 cents per share, with full imputation credits attached on 26 March 2001. Overseas Shareholders were also paid a supplementary dividend. On the 23 August 2001, your Directors declared a final dividend of 8.5 cents per share payable on 29 October 2001. The share register will close at 5pm on 19 October 2001 for the purpose of determining entitlement to the final dividend. Overseas Shareholders will also be entitled to a supplementary payment on the final dividend. The total dividend for the year was 15.0 cents (fully imputed), a 11% increase over last year. The payout represents 58% of the Groups operating surplus after tax (including the final dividend), and is consistent with our objectives of increasing benefits to shareholders while pursuing controlled profitable growth for the Group. Directors Messrs M.R. Parsell and L.W. Peters retire by rotation and being eligible offer themselves for Directors' Remuneration Directors' Remuneration and all other benefits received, or due and receivable during the year was as follows:
*Note Remuneration of Employees The number of employees (not including Directors) whose remuneration exceeded $100,000 is as follows:
Australian remuneration has been converted into New Zealand dollars at the exchange rate used for translating the Australian profits into New Zealand dollars, 0.79 (2000 - 0.80). information on DirectorsThe Company has arranged policies of Directors and The qualifications and experience of the Directors are shown on page 21. The Directors are responsible for the preparation of the Financial Statements and other information included in this Annual Report. The Financial Statements have been prepared in conformity with generally accepted accounting principles to give a true and fair view of the financial position of the Company and Group and the results of their operations and cashflows. The Company appoints independent chartered accountants to audit the Financial Statements prepared by the Directors and to express an opinion on these Financial Statements. The independent auditors report, which sets out their opinion and the basis of that opinion is set out on page 22 of this report. Corporate Governance Practices The principal corporate governance policies followed by the Directors are set out on pages 15 and 16 of this report. Risk Management Practices Corporate Code of Conduct Directors' Interests in Contacts Directors' Share Dealings
Directors' Use of Information Directors' & Employees Indemnity and Insurance The Company has arranged policies of Directors and Officers Liability Insurance with an indemnity limit that generally ensures Directors and Officers will incur no monetary loss as a result of actions taken by them. Certain actions are excluded, including penalties and fines imposed in respect of breaches of the law. Directors' Loans Share Purchase Scheme Shareholders will recall that last years Report of Directors foreshadowed a proposed share purchase scheme for Management staff throughout the Group. Setting up the scheme involved the Company working closely with its solicitors and other advisors to devise a scheme that complied with both New Zealand and Australian securities and tax laws. The complex issues that arose during the course of finalising the structure of the scheme lead to the Company considering a number of different structures prior to choosing the final configuration Last years Report of Directors indicated that the scheme would entitle participating management to acquire shares in the Company in lieu of bonuses to which they would otherwise be entitled in respect of a particular year. The scheme which was finally approved by the Board does not provide for an increase in staff bonuses, as originally proposed but instead provides for the sale of treasury stock at a discount to market prices in a manner which has approximately the same economic effect as the original proposal. Australian securities laws preclude the Company from including further information about the scheme in the Annual Report at this stage, however, the Board can report that all the documentation for the scheme has now been finalised, and implementation will be able to occur later this year. Auditors Events Subsequent to Balance Date Changes in Accounting Policy Annual Report Award For the third consecutive year, the Company was delighted to be judged the winner of the Other Companies section in the Annual Report Awards competition conducted by the New Zealand Institute of Chartered Accountants for its 2000 Annual Report to shareholders. The Company was also awarded the special award for best Corporate Governance Reporting for all New Zealand companies.
Small donations (cash and/or jewellery) were made to On behalf of the Directors,
|
[ Overview | Chairman's Letter | Directors Report | Corporate Governance ]
[Corporate Code of Conduct | Operations Review ] [ Board Member Profiles | Share Price History | Financial Statements | Contents | Home ] |