Surplus After Tax Michael Hills surplus after tax, before abnormal items for 2002 was a record $12.298 million, up 22.5% on the previous year. The surplus after abnormals was $12.706 million, up 26.6%. The main drivers behind the profit increase were:
It should be noted that the increase in unallocated expenses shown in the segment statement has resulted from the establishment of a number of group functions now undertaken in Australia on behalf of the whole group; in particular strategic direction, marketing, supply chain management, human resource management and IT. Some of these group activities were commenced in 2000/01 and were reflected in the Australian segment results shown that year. These group costs amounted to $1,930,000 in 2001/02. Depreciation and amortisation charged to profit was $4.85 million compared to $4.27 million in 2002. Our interest costs for the year were $2.014 million compared to $2.142 million for the previous year and were covered 10.3 times by earnings compared with 8.1 times the previous year. Our rental and operating lease costs increased from $11.931 million (6.3% of revenue) to $13.274 million (6.2% of revenue). The surplus after tax included a gain of $408,000 on the sale of the New Zealand Head Office building in August 2001. The taxation charge increased from $5.091 million to $5.992 million due to the increased profit. The effective tax rate for the year was 32.1%. Cash Flow Net cash flow from operating activities for 2001 was $8.871 million, up 12.5% on the previous year. Key drivers of this were:
Cash outflow relating to investing activities was $4.448 million compared to $7.850 million the previous year. Key drivers were:
Cash flow relating to financing activities changed to an outflow of funds of $4.087 million from an inflow of $840,000 in 2000/01. Key drivers were:
Balance Sheet Net assets increased from $49.572 million to $53.328 million reflecting an increase in total assets to $96.413 million from $91.331 million, and offset by an increase in total liabilities from $41.759 million to $43.085 million. Long term borrowings remained nearly static at $27.965 million versus $27.525 million, and our net debt to debt plus equity ratio reduced from 35.3% in 2001/02 to 34% in 2002/02. Key factors in the increase in total assets of $3.76 million were:
EVENTS AFTER BALANCE DATE
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