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STATUTORY REPORT OF THE DIRECTORS
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The Directors have pleasure in submitting to shareholders the 17th Annual Report and audited accounts of the Company for the year ended 30 June 2004.
Business Activities
The groups sole business activities during the 2003/04 financial year continued to be jewellery retailing and manufacturing.
Consolidated Financial Results
The Group has recorded a tax paid surplus of $15,060,000 for the year ended 30 June 2004 (2003 - $11,570,000). This surplus was achieved on a turnover of $259,777,000 (2003 - $224,802,000).
The accounts for the year ended 30 June 2004 have been presented in accordance with the accounting principles and policies detailed on pages 36 and 37 of the annual report.
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2004
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2003
|
| |
$000
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$000
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| Group Turnover |
259,777
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224,802
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| Surplus before tax |
22,063
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16,637
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| Taxation |
(7,003)
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(5,067)
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| Surplus after tax |
15,060
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11,570
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| Dividends paid |
(6,944)
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(14,266)
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| Net surplus retained |
8,116
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(2,696)
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Shareholders Funds/Reserves
Total ShareholdersFunds of the Group now stand at $57,607,000 an increase of $7,559,000 over the previous year.
The Groups reserves at 30 June 2004 totalled $50,124,000.
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$000
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| The Groups reserves at 30 June 2003 were |
43,036
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| To which was added: |
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| Operating surplus after tax for the year |
15,060
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| From which was deducted: |
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| Foreign currency translation reserve movement |
(1,014)
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| Ordinary Dividends paid |
(6,944)
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| Discount on sale of Treasury Stock |
(14)
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| Leaving Reserves at 30 June 2004 at |
$50,124
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| These comprise: |
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| Retained earnings |
49,927
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| Other reserves |
197
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$50,124
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Accounting Policies
There have been no changes in accounting policies during the year.
Dividends
Your Directors paid an interim dividend of 8 cents per share,with full imputation credits and franking credits attached on the 29th March 2004. Overseas shareholders were also paid a supplementary dividend. On the 19th August 2004,your Directors declared a final dividend of 13 cents per share payable on the 18th October 2004. The share register will close at 5:00pm on the 8th October 2004 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 ordinary dividend for the year was
21 cents (fully imputed),a 23.5% increase over last year. The payout represents 53.7% of the tax paid profit of the group.
Directors
Messrs M.R.Doyle,G.J.Gwynne and R.M.Hill retire by rotation and being eligible offer themselves for re-election.
Directors Remuneration
Directors remuneration and all other benefits received,or due and receivable during the year was as follows:-
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2004
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2003
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$000
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$000
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| Parent Company |
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| R.M. Hill * |
$153
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$153
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| M.R. Parsell * |
A$626
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A$399
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| G.J. Gwynne |
$50
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$50
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| L.W. Peters |
A$50
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A$50
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| M.R. Doyle |
$50
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$50
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| A.C. Hill |
$50
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$50
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*Note Executive Directors do not receive Directors fees. Executive remuneration includes salary,superannuation,bonus payments,retirement allowances and provision of a vehicle received in their capacity as employees.
Remuneration of Employees
The number of employees (not including Directors) whose remuneration exceeded $100,000 is as follows:-
| $0 |
2004
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2003
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| 100-110 |
17
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11
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| 110-120 |
9
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8
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| 120-130 |
10
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5
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| 130-140 |
3
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6
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| 140-150 |
5
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4
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| 150-160 |
4
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1
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| 160-170 |
1
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2
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| 170-180 |
2
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1
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| 190-200 |
1
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1
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| 200-210 |
2
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2
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| 210-220 |
-
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1
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| 220-230 |
-
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2
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| 230-240 |
2
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-
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| 240-250 |
1
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1
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| 250-260 |
1
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-
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| 360-370 |
1
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-
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Australian remuneration has been converted into New Zealand dollars at the exchange rate used for translating the Australian profits into New Zealand dollars, 0.88 (2003 - 0.89).Canadian remuneration on the same basis at 0.84 (2003 - 0.80).
Information on Directors
The qualifications and experience of the Directors are shown on pages 26 and 27.
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 cash flows.
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 30 of the annual report.
Donations
The total of donations made during the year amounted to $25,000.
Annual Report Awards
The Company was delighted to receive a number of awards for its 2003 Annual Report.
In the Annual Report Awards competition conducted by the Institute of Chartered Accountants of New Zealand,the Company won the top award in the Other Companiessection.MHI has won this division for five out of the last six years with a commendation being received in 2002. The company was also a finalist in the special award categories of Corporate Governance reporting and Human Resource reporting .
In addition,the Company was also awarded a silver award for the second consecutive year in the prestigious Australasian Reporting Awards,which covers all companies in both Australia and New Zealand.
The Board again extends its congratulations to the dedicated team who compiled and designed last years report.
On behalf of the Directors,
R. M. Hill
M. R. Parsell
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