Beacon Lighting Group Limited (BLX) 2015年年度報告「ASX」.pdf

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1、2015Beacon Lighting Group LimitedANNUALREPORTACN 164 122 785For personal use onlyFor personal use onlyChairmans and Chief Executive Officers Report 1Board of Directors 5Management Team 6Corporate Governance Statement 8Directors Report 14Auditors Independence Declaration 26Index to the Financial Stat

2、ements 28Consolidated Statement of Comprehensive Income 29Consolidated Balance Sheet 30Consolidated Statement of Changes in Equity 31Consolidated Statement of Cash Flows 32Notes to Financial Statements 33Directors Declaration 69Independent Auditors Report to the Members of Beacon Lighting Group Limi

3、ted 70Shareholders Information 73Corporate Directory 74Store Locations 76ContentsImportant NoticeThis financial report is the consolidated financial report of the consolidated entity consisting Beacon Lighting Group Limited,ACN 164 122 785 and its subsidiaries.Beacon Lighting Group Limited is a Comp

4、any limited by shares,incorporated and domiciled in Australia.Its registered office and principal place of business is 5 Bastow Place Mulgrave Victoria 3170.A description of the nature of the consolidated entitys operations and its principal activities is included in the Directors report on page 14,

5、which is not part of the financial report.The financial report was authorized for issue by the Directors on 19 August 2015.The Directors have the power to amend and re-issue the financial statements.For personal use onlyFor personal use onlyResult OverviewBeacon Lighting has achieved sales growth of

6、 19.3%to$179.4 million in FY2015.This strong sales growth was supported by the spectacular growth in company stores comparative sales by 10.4%.Gross profit dollars were also solid with an increase of 20.1%or$19.4m,while the gross profit margin also improved to 64.7%in FY2015 from 64.3%in FY2014.Expe

7、nse productivity gains were also achieved with expenses as a percentage of sales falling to 51.6%in FY2015 from 54.6%in FY2014.Due to the strong trading and expense improvements the EBITDA result increased by 36.4%to$27.4 million in FY2015 and the Net Profit After Tax result has improved by 43.6%to$

8、16.9 million in FY2015.The Beacon Lighting trading results were supported by an increased investment in inventories to improve the in stock position to service our customers and prime the 3PL supply chain.Other Beacon Lighting investments included new stores,major store refurbishments,a franchise st

9、ore acquisition and other assets.The continued investment in the Group assets have been funded by cash flow and assisted by the use of trade finance facilities.Beacon Lighting finished FY2015 with 78 company stores,13 franchise stores and 4 commercial sales offices.During FY2015,the Group opened sev

10、en new company stores being Mittagong(NSW),Coburg(VIC),Port Macquarie(NSW),Camberwell(VIC),Churchill(SA),Pakenham(VIC)and Ipswich(QLD).We also closed down the Hawthorn(VIC)store,opened a new Commercial Sales Office in Perth(WA)and purchased the Fountain Gate(VIC)franchise store.Further investments w

11、ere also made in major store refurbishments at Taren Point(NSW)and Moorabbin(VIC).Exciting new product ranges supported by delivering high standards of service helped to make Beacon Lighting an exciting and engaging place to shop for our customers.Other Result HighlightsBeacon Lighting had a number

12、of other result highlights which contributed to the record sales and record profit results in FY2015 including:Chairmans and Chief Executive Officers ReportBeacon Lighting Group Limited is very excited to be able to announce our outstanding financial results for FY2015.As a result of the efforts of

13、the Beacon Lighting team,the Group has achieved record sales and record profits in FY2015.The exceptional result was driven by strong sales growth,including terrific comparative company store sales,solid gross profit dollar growth and expense productivity gains.Throughout FY2015,Beacon Lighting has

14、been able to build on our industry leading position in Australia by bringing the latest fashion,trend and technologically advanced products to our customers supported by continuing focus on customer service.Company store sales increased by 19.6%Online sales increased by 32.2%VIP customers have incre

15、ased to 104,000 Website traffic has increased by 29.2%Trade Sales increased by 26.6%Our Associates now exceed 800 in total1CHAIRMANS AND CHIEF EXECUTIVE OFFICERS REPORTFor personal use onlyGrowth StrategiesBeacon Lighting have a number of consistent growth strategies which continue to drive sales an

16、d profits.In FY2016,we will continue to:Target the opening of six new company stores;Continue to improve the performance of the existing stores;Be the first to market in the latest fashion,trends and technological lighting products;Enhance our online and social media presence in order to drive incre

17、mental sales growth;Pursue aligned business acquisition opportunities both locally and internationally;Support the emerging businesses in Beacon Solar and Beacon International;and Manage efficiency gains while continuing to support the business growth.As recently announced,the distribution and produ

18、ct development opportunity in partnership with GE will provide Beacon Lighting with further growth opportunities through new sales channels in both Australia and New Zealand.In addition,the acquisition of the Essendon and Watergardens franchised stores adds additional sales and growth in those marke

19、ts.The BoardThe Board of Directors recognises the importance of good corporate governance for the benefit of our shareholders,associates and customers.Changes in the development in the corporate governance area are monitored and reviewed for implementation if required.The Board is committed to ensur

20、ing that Beacon Lighting is operated ethically and in accordance with high standards of corporate governance.DividendsThe Directors have declared a final fully franked dividend of 2.4 cents per share for the year ending 28 June 2015.This brings the annual dividend to 4.2 cents per share fully franke

21、d for FY2015.Going forward,it is expected that full year dividends of between 50%and 60%of annual Net Profit After Tax will be paid half yearly in March and September.OutlookThe general market conditions remain supportive of the lighting industry in Australia.Low interest rates,confidence in propert

22、y prices and increasing number of dwelling approvals are all positive indicators for a housing aligned business like Beacon Lighting.In addition,the continuing and rapid development of new LED technologies,new energy effiency regulations and lighting becoming more fashionable will continue to drive

23、growth in the lighting category.Given these market conditions along with our growth strategies,the Directors believe that Beacon Lighting remains well positioned to take advantage of the ongoing changes that are occurring in Australia.We will continue to open new company stores,we will continue to w

24、ork on improving the performance of existing stores,we will be the first to market with the latest fashion,trend and technology lighting products,we will enhance our online and social media presence,we will pursue aligned business acquisition opportunities,we will support our emerging business and w

25、e will target efficiency gains.The Beacon Lighting team is looking forward to another successful year in FY2016.Ian Robinson Executive ChairmanGlen Robinson Chief Executive Officer2BEACON LIGHTING GROUP ANNUAL REPORT 2015For personal use only1 Earnings before Interest,Tax,Depreciation and Amortisati

26、on(EBITDA)2 Company Store Comparative Sales Increase3 Operating Expenses excluding,Depreciation,Amortisation,Interest and Tax.4 52 week FY2012 and FY2013 Pro Forma result in the Prospectus dated 12 March 2014.5 Net Profit After Tax(NPAT)FY 2012 FY 2013 FY 2014 FY 2015$120.6$15.9$9.3$132.9$16.6$9.5$1

27、50.3$20.1$11.8$179.4$27.4$16.9 FY 2012 FY 2013 FY 2014 FY 2015 FY 2012 FY 2013 FY 2014 FY 2015RECORD SALESRECORD EBITDA1OPERATING EXPENSES%SALES FALL3COMP.STORE SALES INC.2SALES4($m)EBITDA1,4($m)NPAT4,5($m)$179.4m$27.4m3.0%10.4%Key Highlights of 20153HIGHLIGHTSFor personal use onlyFor personal use o

28、nlyBoard of DirectorsIan RobinsonExecutive Chairman 41 year of serviceIan Robinson purchased the first Beacon Lighting store in 1975.Over the subsequent 40 years,his role has grown from store management,to CEO and in July 2013 to his current role as Executive Chairman.Ian remains actively involved i

29、n the Group operations.Ian is a Director of both Lighting Council of Australia and Carbonetix Pty Ltd.and President of the Large Format Retailers Association.Glen Robinson Chief Executive Officer 20 years of serviceGlen Robinson assumed his current role of Chief Executive Officer in July 2013 after

30、joining the Group in 1994.Glen has a strong understanding of the business having started with the Group on the sales floor,progressed to Trainee Buyer,Merchandising Manager and then taking responsibility for Beacon Lightings product range from development to in-store presentation.Glen holds a Bachel

31、or of Business(Management).(James)Eric Barr Deputy Chairman Non-Executive DirectorEric Barr is the Deputy Chairman and also the Chairman of Beacon Lightings Remuneration and Nomination Committee.Eric retired in 2000 as a partner with PricewaterhouseCoopers after 20 years service providing multi-disc

32、iplinary services to numerous retailers.Since then he has been a Director of public and private companies in the United States and Australia,including 10 years as lead Director of Reading International Inc.Eric is a Director and Chairman of the Audit Committee of Asia Pacific Stock Exchange Limited,

33、Director and Chairman of the Risk Committee of Austock Life Limited.Neil Osborne Non-Executive DirectorNeil Osborne is a Non-Executive Director and is also Chairman of the Companys Audit Committee.Neil has over 30 years experience in the retail industry.He was formerly an Accenture Partner,leading l

34、arge strategic projects in Australia and Asia.He also spent 18 years with Coles Myer Ltd in senior positions including finance(including CFO Myer)and strategic planning.Neil is a Non-Executive Director of Vita Group,Deputy Chairman of Australian United Retailers(trading as Foodworks)and is a Non-Exe

35、cutive Director of Lovisa Holdings.Neil holds a Bachelor of Commerce and is a CPA and a FAICD.Left to right:(James)Eric Barr,Glen Robinson,Ian Robinson and Neil Osborne.5BOARD OF DIRECTORSFor personal use onlyManagement TeamIan BunnettManaging Director-RetailJoined Beacon Lighting in 2004 having had

36、 extensive retail experience including the GM of Store Operations with Payless Shoes.David SpeirsChief Financial OfficerJoined Beacon Lighting in 2003 after six years of business consulting and a career working with various Coles Myer businesses.David holds a BBus(Accounting),MBus(Accounting),Post G

37、rad Dip(Finance)and is a FCPA.Barry MartensChief Operating OfficerJoined Beacon Lighting in 1996 following a retail advertising career with Clemenger Harvey and retail marketing experience with Kleins Jewellery.Barry holds a Certificate in Business Studies(Advertising).Elizabeth MikkelsenGroup Human

38、 Resources ManagerJoined Beacon Lighting in 2003 having had a retail management career which included Myer Stores in Human Resources and line management.Elizabeth holds a BA(Psych(Hons)and a Dip(Human Resources).Prue RobinsonMarketing DirectorJoined Beacon Lighting in 2006 following a variety of rol

39、es in Sydney and London and four years in marketing with Spotlight.Prue holds a BBus(Management&Marketing).Michael(Mick)TanChief Information OfficerJoined Beacon Lighting in 2000 after having 20 years information technology experience including a career with Fujitsu Systems.Mick holds a Dip(Manageme

40、nt),an ICL Certificate(Systems Analysts&Design)and an ICL Certificate(Base Computer Concepts&Programming).Rodney Brown National Distribution ManagerJoined Beacon Lighting in 2012 with extensive supply chain experience including management roles with Cadbury Schweppes and Fosters Brewing.Rodney holds

41、 a Certificate III in Purchasing and Warehouse Management.Tracey Hutchinson Finance Manager&Company SecretaryJoined Beacon Lighting in 2011 having had senior financial management roles with various ASX businesses,including Eyecare Partners.Tracey holds a BBus(Accounting),an MBus(Administration)and i

42、s a CPA.Left to right:Ian Bunnett,Michael(Mick)Tan,Prue Robinson,David Speirs,Tracey Hutchinson,Rodney Brown,Barry Martens and Elizabeth Mikkelsen.6BEACON LIGHTING GROUP ANNUAL REPORT 2015For personal use onlyFor personal use onlyPrinciple 1Lay solid foundations for management and oversight The Boar

43、ds responsibilities are defined in the Board Charter and there is a clear delineation between the matters expressly reserved to the Board and those delegated to the Chief Executive Officer and senior management.The Board Charter outlines:The guidelines for Board composition,including the processes a

44、round Director appointments and resignations.The operation of the Board and the Board Committees.The roles of the Board,the Chairperson,CEO and senior management.Specifically includes risk management responsibilities(rather than these being delegated to a separate Risk Committee).A copy of the Group

45、s Board Charter is available on the Groups website.The Board and Committee Evaluation Policy sets out the processes for the annual review of the performance of the Board as a whole,each Director and the Board Committees.The Board has established a Remuneration and Nomination Committee which is respo

46、nsible for annually reviewing executive remuneration and incentive policies and practices.The Group has a written agreement with each Director and senior executive setting out the terms of their appointment.The Group has adopted a Diversity Policy.The Group does not propose to establish measurable o

47、bjectives for achieving gender diversity in the foreseeable future as recommended by Recommendation 1.5 of the ASX Corporate Governance Principles and Recommendations as:The Groups senior management team is extremely experienced and stable and the Group does not intend to make changes in the immedia

48、te future.The Group is strongly committed to making all selection decisions on the basis of merit and the setting of specific targets for the proportion of men and women at any level would potentially influence decision making to the detriment of the business.The Diversity Policy affirms the commitm

49、ent of the Group to embrace diversity and sets out the principles and work practices to ensure that all Associates have the opportunity to achieve their full potential.Principle 2Structure the Board to add valueThe experience and expertise relevant to the position of Director held by each Director i

50、n office at the date of the annual report is included in the Directors Report.The term in office held by each Director in office at the date of this report is as follows:Note:these terms of office relate to the listed entity Beacon Lighting Group Limited only and do not relate to the subsidiary or o

51、perating entities.Ian Robinson is a substantial shareholder.He has been Chairman since July 2013 having previously held the position of Chairman and Chief Executive Officer.Eric Barr and Neil Osborne are shareholders of Beacon Lighting Group Limited.They are Non-Executive Directors and bring objecti

52、ve judgment to bear on Board decisions commensurate with their commercial knowledge,experience and expertise.Glen Robinson is a senior executive of Beacon Lighting and has been Chief Executive Officer since July 2013.Recommendation 2.1 of the ASX Corporate Governance Principles and Recommendations r

53、ecommends that the Board establishes a nomination committee and that the committee have at least three members,a majority of whom are independent and be chaired by an independent Director.The Remuneration and Nominations Committee has four members.Three are independent:Eric Barr and Neil Osborne,as

54、independent Directors,and one external consultant.Ian Robinson,Executive Chairman,is the other member.The Committee is chaired by Eric Barr.A copy of the Remuneration and Nomination Committee Charter is available on the Groups website.Corporate Governance StatementThe Board of Directors of Beacon Li

55、ghting Group Limited is responsible for the corporate governance of the Group.This statement outlines the corporate governance policies and practices formally approved by the Board of Beacon Lighting.This statement is current as at 28 June 2015.These policies and practices are in accordance with the

56、 ASX Corporate Governance Councils Corporate Governance Principles and Recommendations(3rd Edition)unless otherwise stated.The Board considers that the Groups corporate governance practices and procedures substantially reflect the principles.The full content of the Groups Corporate Governance polici

57、es and charters can be found on the Groups website(.au).NameTerm in officeIan Robinson2 yearsEric Barr1 yearGlen Robinson1 yearNeil Osborne1 year8BEACON LIGHTING GROUP ANNUAL REPORT 2015For personal use onlyIn relation to nominations,the Remuneration and Nomination Committee is responsible for:Asses

58、sing current and future Director skills and experiences and identifying suitable candidates for succession.Annually enquiring of the Executive Chairman and the Chief Executive Officer their processes for evaluating their direct reports.An internal process of evaluation is undertaken annually on the

59、performance,skills and knowledge of the Board and its committees,utlising a board skills matrix.The review provides comfort to the Board that its structure and performance is effective and appropriate to Beacon Lighting and that the Board has the range of skills,knowledge and experience to direct th

60、e Group.The board skills matrix sets out the requisite skills,expertise,experience and other desirable attributes for the Board.The following skills and attributes have been identified as skills which Beacon seeks to achieve across its Board membership:other Board experience,retail industry experien

61、ce,financial management experience and Governance experience.The Directors have been selected for their relevant expertise and experience.They bring to the Board a variety of skills and experience,including industry and business knowledge,financial management,accounting,operational and corporate gov

62、ernance experience.The annual report includes details of the Directors,including their specific experience,expertise and term of office.To enable performance of their duties,all Directors:Are provided with appropriate information in a timely manner and can request additional information at any time;

63、Have access to the Company Secretary;Have access to appropriate continuing professional development opportunities;and Are able to seek independent professional advice at the Groups expense in certain circumstances.Recommendations 2.4 and 2.5 of the ASX Corporate Governance Principles and Recommendat

64、ions recommends that the Board comprise a majority of Directors who are independent,and that the Chairperson should be an independent Director.The Board,as currently composed,does not comply with these recommendations.The Board considers that the composition of the Board is appropriate given the Gro

65、ups present circumstances.Principle 3Act ethically and responsiblyThe Group has adopted a written Code of Conduct which applies to the Directors and all associates employed by the Group,including executives.The objective of this Code is to ensure that high standards of corporate and individual behav

66、ior are observed by all associates in the context of their employment.In summary,the Code requires associates to always act:In a professional,fair and ethical manner,in accordance with Group values.In accordance with applicable legislation and regulations,and internal policies and procedures.In a ma

67、nner that protects the Group interests,reputation,property and resources.The Code also reminds associates of their responsibility to raise any concerns in relation to suspected or actual breaches of the Code.Beacon Lighting has in place a policy concerning trading in Beacon Lighting Group securities

68、.The Securities Trading policy includes detailed requirements for Directors,officers and key management regarding when they can trade Beacon Lighting securities.Principle 4Safeguard integrity in corporate reportingPrinciple 4.1 of the ASX Corporate Governance Principals and Recommendations,recommend

69、s that the Audit Committee consist only of Non-Executive Directors and consists of a majority of independent Directors.The Audit Committee as currently composed does not comply with these recommendations.Beacon Lighting has an Audit Committee comprising of four members,three of whom are considered i

70、ndependent.The Audit Committee presently comprises Neil Osborne(Chairman),Eric Barr,Glen Robinson and one external consultant.Two of the four members of the committee are Non-Executive Directors and have experience in,and knowledge of,the industry in which Beacon Lighting operates.Neil Osborne,Eric

71、Barr and the external consultant each have accounting qualifications.The details of the number of Audit Committee meetings held and attended are included in the Directors Report.Minutes are taken at each Audit Committee meeting,with the minutes tabled in the following full Board meeting.The Audit Co

72、mmittee has adopted a formal charter which outlines its role in assisting the Board in the Groups governance and exercising of due care,diligence and skill in relation to:Reporting of financial information;The application of accounting policies;Financial risk management;The Groups internal control s

73、ystem;and Its relationship with the external auditor.In accordance with Recommendation 4.2 the Board,before it approves the Groups statements for a financial period,ensures that it receives from its Chief Executive Officer and Chief Financial Officer a declaration that,in their opinion,the financial

74、 records of the Group have been properly maintained and that the financial statements comply with the appropriate accounting standards and give a true and fair view of the financial position and performance of the entity and that the opinion has been formed on the basis of a sound system of risk man

75、agement and internal control which is operating effectively.9CORPORATE GOVERNANCE STATEMENTFor personal use onlyIn accordance with Principle 4.3,the Groups external auditor attends each annual general meeting and is available to answer shareholder questions about the audit.Principle 5Make timely and

76、 balanced disclosurePrinciple 5.1 of the ASX Corporate Governance Principles and Recommendations recommends that companies should establish a written policy designed to ensure compliance with ASX Listing Rule disclosure requirements and to ensure accountability at a senior executive level for that c

77、ompliance and disclose that policy or a summary of it.The Group has adopted a Continuous Disclosure Policy.This Policy sets out the standards,protocols and the detailed requirements expected of all Directors,officers,senior management and associates of the Group for ensuring the Group immediately di

78、scloses all price-sensitive information in compliance with the Listing Rules and Corporations Act relating to continuous disclosure.Principle 6Respect the rights of security holdersThe Group has adopted a Communications Policy governing its approach to communicating with its shareholders,market part

79、icipants,customers,associates and other stakeholders.This policy specifically includes:The approach to briefing institutional investors,brokers and analysts.The approach to communications with investors whether by meetings,via the Groups websites,electronically or by any other means.Beacon Lighting

80、provides a printed copy of its annual report to all requesting shareholders.The annual report contains relevant information about the Groups operations during the year,changes in the state of affairs and,other disclosures required by the Corporations Act.The half year report contains summarised fina

81、ncial information and a review of Beacon Lighting operations during the period.The Beacon Lighting Corporate website provides all shareholders and the public access to our announcements to the ASX,and general information about Beacon Lighting and its business.It also includes a section specifically

82、dedicated to governance,which includes links to the Companys Constitution,Code of Conduct and its various corporate governance charters and policies.The format of general meetings aims to encourage shareholders to actively participate in the meeting through being invited to comment,or raise question

83、s of Directors on any matter relevant to the performance and operation of the Group.Principle 7Recognise and manage riskPrinciple 7.1 of the ASX Corporate Governance Principles and Recommendations recommends that a listed company either have a committee to oversee risk or otherwise disclose the proc

84、esses it employs for overseeing the companys risk management framework.The Board does not currently have a committee to oversee risk.Instead,the Board Charter specifically includes risk management responsibilities(rather than these being delegated to a separate Risk Committee).The Board evaluates al

85、l risks to the Group on an annual basis.The risk matrix is then reviewed at regular intervals throughout the year to ensure that the Group is not being exposed to any new risks and that all existing risks are being monitored and managed effectively.The Board retains oversight responsibility for asse

86、ssing the effectiveness of the Groups systems for the management of material business risks.The Board reviews the Groups risk management on an annual basis to ensure it continues to be sound.The Board does not consider a separate internal audit function is necessary at this stage.One of the Audit Co

87、mmittee responsibilities is to evaluate compliance with the Groups risk management and internal control processes.The Board has received written assurances from management as to the effectiveness of the Groups management of its material business risks.The Chief Executive Officer and Chief Financial

88、Officer provide a written assurance in the form of a declaration in respect of each relevant financial period that,in their opinion,the declaration is founded on a sound system of risk management and internal control and that the system is operating effectively in all material respects in relation t

89、o financial reporting risks.Principle 7.4 of the ASX Corporate Governance Principles and Recommendations requires the Group to disclose details about whether it has any material exposure to economic,environmental and social sustainability risks(if any).The Group has considered the following risks an

90、d has risk mitigation strategies in place.Economic risks include impacts to consumers willingness to spend on discretionary retail and lighting products in particular.The Group mitigates the risk through the constant monitoring of the macro-economic environment and adjusting capital expenditure,new

91、projects and operating expenses accordingly.Whilst consumer retail sentiment was lower in 2015 which affected general retail demand,housing activity remained positive which offset the impact of lower consumer sentiment towards discretionary expenditure for the Group.Exchange rate volatility can impa

92、ct upon the Groups ability to grow margins.The Group has a policy of hedging 100%of the Groups inventory which is purchased in USD and sold in AUD.The Group can also lock in a forward position for this foreign exchange exposure for a period of up to 12 months.The Board believes this mitigates the Gr

93、oups exchange rate volatility risk to an acceptable level.Environmental sustainability risks include impacts on the Groups supply chain from suppliers through to stores.These risks can be reputational,regulatory and financial.The Boards assesses its primary exposure to be in the production of its pr

94、oducts.The Group through its supply chain operates responsibly within the community and expects the same from its suppliers.Social sustainability risks include workplace health and safety as well as personnel management and corporate conduct.The Group has an extensive workplace health and safety pol

95、icy incorporating the early identification and correction of potential risks,both in store and at the support offices.The Board is informed of all incidents and material potential risks at each Board meeting and the appropriate action taken.Corporate conduct risks could impact regulatory,reputationa

96、l and financial performance.It includes stock loss and theft.The Group has a dedicated store operations team to regularly monitor and assess store related risks.The Group undertakes regular inventory counts and analysis of store performance to reduce the risk of material loss.10BEACON LIGHTING GROUP

97、 ANNUAL REPORT 2015For personal use onlyFor personal use onlyFor personal use onlyPrinciple 8Remunerate fairly and responsiblyPrinciple 8.1 of the Corporate Governance Principles and Recommendations,recommends that the remuneration committee should comprise a majority of independent Directors.The Re

98、muneration and Nomination Committee as currently composed does not comply with this recommendation.The Remuneration and Nomination Committee has four members.Three are independent:Eric Barr and Neil Osborne,as independent Directors,and one external consultant.Ian Robinson,Executive Chairman,is the o

99、ther member.The Committee is chaired by Eric Barr.In relation to remuneration,the Remuneration and Nomination Committee is responsible for:Ensuring the Group has remuneration policies and practices appropriate to attracting and retaining key talent.Reviewing and making recommendations in relation to

100、 the remuneration of Directors and senior management.Reviewing and recommending the design of any executive incentive plans and approving the proposed awards to each executive under those plans.In accordance with its Charter,the Remuneration and Nomination Committee clearly distinguishes the structu

101、re of Non-Executive Directors remuneration from that of Executive Directors and senior executives.Details of Directors and executives remuneration,including the principles used to determine the nature and amount of remuneration,are disclosed in the remuneration report section of the annual report.Th

102、e Groups Securities Trading Policy expressly prohibits relevant participants from entering into arrangements that limit the economic risk of participating in the Groups incentive schemes prior to the relevant securities becoming fully vested.13For personal use onlyDirectors Report1.DirectorsThe Dire

103、ctors of the Group during the whole financial period and up to the date of the report were:Ian Robinson Executive DirectorChairman of the Board,Member of the Remuneration and Nomination Committee.Glen RobinsonChief Executive OfficerMember of the Audit Committee.Eric BarrNon-Executive DirectorDeputy

104、Chairman of the Board,Chairman of the Remuneration and Nomination Committee and Member of the Audit Committee.Neil OsborneNon-Executive DirectorChairman of the Audit Committee and Member of the Remuneration and Nomination Committee.Details of the expertise and experience of the Directors are outline

105、d on page 5 of this annual report.2.Principal ActivitiesDuring the financial period the principal continuing activities of the Group consisted of the selling of lighting,globes,ceiling fans and energy efficient products in the Australian market.3.ResultsThe consolidated profit for the year attributa

106、ble to the members of Beacon Lighting Group Limited was:4.Operating and Financial Review4.1 Overview of OperationsBeacon Lighting is Australias leading specialist retailer of lighting,ceiling fans and light globes,offering our customers knowledge,service and advice on a wide range of products.As a v

107、ertically integrated retailer,Beacon Lighting develops,designs,sources,imports,distributes,merchandises,promotes and sells its product range to meet the demands of our customers.More than 90%of the products sold in Company stores are supplied through the Beacon Lighting wholesale supply chain and ap

108、proximately 80%of the products are exclusively branded.At the end of FY2015,Beacon Lighting operated the following businesses:78 Beacon Lighting Company Operated Stores;13 Beacon Lighting Franchise Stores;4 Commercial Sales Offices;Beacon Lighting Online;Beacon International;and Beacon Solar.During

109、FY2015,Beacon Lighting opened seven new company stores,purchased the Fountain Gate(VIC)franchise store,closed one store in Hawthorn(VIC)and opened a new Commercial Sales Office in Perth(WA).The company operated stores that opened during FY2015 were Mittagong(NSW),Coburg(VIC),Port Macquarie(NSW),Camb

110、erwell(VIC),Churchill(SA),Pakenham(VIC)and Ipswich(QLD).Company Operated Stores at Moorabbin(VIC)and Taren Point(NSW)both underwent major refurbishments in FY2015.Consolidated EntityActual FY2015$000Actual FY2014$000Profit before Income Tax23,83217,057Income Tax Expense6,8935,260Operating profit aft

111、er tax attributable to the members of Beacon Lighting Group Limited16,93911,797The Directors of Beacon Lighting Group Limited(the Group)present their report together with the Consolidated Financial Statements of the Group and its controlled entities(the Consolidated Entity)for the 52 weeks ended 28

112、June 2015.14BEACON LIGHTING GROUP ANNUAL REPORT 2015For personal use only4.1.2 SalesBeacon Lighting has achieved sales growth of 19.3%to$179.4 million in FY2015.This strong sales growth was particularly supported by the spectacular growth in company stores comparative sales of 10.4%.The sales increa

113、ses in the states of New South Wales,Queensland and Victoria were all outstanding.The comparative company store sales growth was particularly strong in H1 FY2015 with an increase 11.6%and while sales growth in H2 FY2015 was still strong with an increase of 9.6%.4.1.3 Gross Profit MarginThe gross pro

114、fit dollars earned by Beacon Lighting increased by 20.1%or$19.4 million in FY2015.Pleasingly,the gross profit margin also improved to 64.7%of sales in FY2015 from 64.3%of sales in FY2014.Despite the fall in the AUD/USD exchange rate,Beacon Lighting has been able to increase the gross profit dollars

115、and maintain the gross profit margins through the introduction of 440 new exciting fashionable and technology based products,improved buying,price and stock management.4.1.4 Other Income&Other RevenueOther Income and Other Revenue primarily consists of franchise stores royalties and franchise store

116、marketing fund contribution.These incomes continue to fall as franchise stores have been purchased and converted into company operated stores.Other Income and Other Revenue was 2.2%of sales in FY2015 compared to 3.7%of sales in FY2014.The Taren Point(NSW)franchise store was purchased in H2 FY2014 an

117、d the Fountain Gate(VIC)franchise store was purchased in H1 FY2015.4.1.5 Operating ExpensesSupported by the strong sales growth and the effective management of operating expenses,Beacon Lighting continued to achieve strong expense productivity gains in FY2015.Total operating expenses as a percentage

118、 of sales have improved to 51.6%of sales in FY2015 compared to 54.6%of sales in FY2014.Pleasingly,the expense productivity gains have been achieved across all expense categories.4.1.6 EarningsBeacon Lighting achieved an Earnings Before Interest,Tax,Depreciation and Amortisation(EBITDA)growth of 36.4

119、%to$27.4 million for FY2015.As a percentage of sales,the EBITDA result improved to 15.3%of sales in FY2015 compared to 13.4%of sales in FY2014.The significant EBITDA improvement was consistent with strong sales,improved gross profit performance and the management of operating expenses.The Net Profit

120、 After Tax(NPAT)has increased to$16.9 million or 9.4%of sales in FY2015 compared to$11.8 million or 7.8%of sales in FY2014.4.1.7 DividendsThe Directors of Beacon Lighting have declared an annual fully franked dividend of 4.2 cents per share for FY2015.This means that Beacon Lighting will have a NPAT

121、 dividend payout ratio of 53.3%for FY2015.For H1 FY2015,the Directors have already declared a fully franked dividend of 1.8 cents per share,therefore for H2 FY2015,the Directors have declared a fully franked dividend of 2.4 cents per share.Going forward,it is expected that Beacon Lighting will conti

122、nue to have an annual NPAT dividend payout ratio of between 50%and 60%.4.1.8 Financial PositionIn FY2015,Beacon Lighting has made a deliberate increased investment in inventory.This has been the result of the introduction of new Company Operated Stores,continuing to prime the China Warehouse and 3PL

123、 distribution channel and improved in stock position in all Stores.Total inventory increased to$44.6 million at the end of FY2015 from$32.2 million at the end of FY2014.Beacon Lighting invested$5.0 million in capital expenditure principally associated with the expansion of the Company Operated Store

124、 Network and the refit of two existing Company Operated Stores.During FY2015,Beacon Lighting also purchased the very successful Fountain Gate(VIC)franchise store which was funded through cash flow.This increase investment in inventory in FY2015 has been partially funded by our trade finance faciliti

125、es with our banks.These banking facilities are current interest bearing loans and are used to meet our working capital requirements of stock funding.Our banking facilities have not been fully drawn down in FY2015 and do provide Beacon Lighting with additional funding flexibility for the operation of

126、 the Group.Beacon Lighting continues to operate well within our bank covenants.4.1.1 Financial PerformanceA summary of the actual FY2015 financial performance compared to the FY2014 actuals is presented in the following table.1 Operating Expenses exclude depreciation and amortisationConsolidated Ent

127、ityActualFY2015$000ActualFY2014$000%Inc/Decon FY2014Sales179,386150,33819.3%Gross Profit116,04196,66020.1%Other Income&Other Revenue3,9495,521(28.5%)Operating Expenses1(92,594)(82,095)12.8%EBITDA27,39520,08636.4%EBIT25,04218,06638.6%Net Profit After Tax(NPAT)16,93911,79743.6%15DIRECTORS REPORTFor pe

128、rsonal use only4.2 Business StrategiesBeacon Lighting remains very well positioned to take advantage of the changes that continue to occur in the lighting industry in Australia and the rest of the world.Beacon Lighting intends to drive sales and profit growth through a number of different strategies

129、.4.2.1 New Store RolloutBeacon Lighting will continue to target the opening of six new Company Operating Stores per year.These store openings are however dependent upon the suitable site identification,negotiations and availability.4.2.2 Optimising Store Portfolio and OperationsBeacon Lighting belie

130、ves it is able to grow sales and profits through the continued improvement in the existing store portfolio.The existing store portfolio is being continually reviewed in order to optimise product range,merchandising,marketing,fit out,customer service team,training and operating costs.4.2.3 New Produc

131、ts and RangesBeacon Lighting currently offers an extensive range of the latest fashion,trend and energy efficient products to our customers.Beacon Lighting has the scope to further improve the breadth and depth of the range and is aiming to refresh approximately 20%of the product range each year.Mor

132、e product options for both residential and trade customers also present further opportunities for the Group.4.2.4 Technology in LightingThe lighting industry is experiencing rapid change in technology.A need for greater energy efficiency is driving the development of LED technology.Still in the earl

133、y stages of penetration through the lighting product range,LED continues to represent a significant growth opportunity for the Group.4.2.5 Online PresenceThere are further opportunities to enhance and develop the Groups online presence to drive incremental sales.Further opportunities which are align

134、ed with social media and third party websites have been identified and continue to be worked on.4.2.6 AcquisitionsBeacon Lighting intends to investigate and pursue local and international business acquisition opportunities that complement the core business activities or leverage off existing busines

135、s activities.This may include other lighting stores,franchise stores,other retail formats,wholesaling and other opportunities.4.2.7 New MarketsThere may be opportunities for Beacon Lighting to leverage our existing business capabilities into new markets.Beacon Lighting intends to further investigate

136、 and better understand the opportunities for the future growth of the Group.4.2.8 Emerging BusinessesBeacon Lighting intends to continue to support the emerging Beacon International and Beacon Solar businesses.Both businesses offer synergies with the core business and strengthen the overall market p

137、enetration for the brand both within Australia and the rest of the world.4.2.9 Efficiency GainsBeacon Lighting believes that it can continue to make efficiency gains and manage the growth of expenses through continued investment in systems,technology and processes.There remains further efficiency ga

138、in opportunities as the Group grows in relation to the supply chain,inventory management and the Group support infrastructure.4.3 Business RisksThere are a number of risks,both specific to Beacon Lighting and of a general nature which may threaten both the future operating and financial performance

139、of the Group and the outcome of an investment in Beacon Lighting.The operating and financial performance of Beacon Lighting is influenced by a variety of general economic factors and business factors,including but not limited to interest rates,consumer confidence,business confidence,property prices,

140、dwelling approvals,inflation,government policy,natural disasters along with other domestic and international events.Many of these risks are beyond the control and influence of the Directors and management but Beacon Lighting is well positioned to face these challenges compared to our competitors.The

141、 specific material business risks faced by Beacon Lighting and how they are managed are set out below.4.3.1 CompetitionBeacon Lighting operates in a competitive retail market which is subject to moderate barriers to entry and changing consumer preferences.Beacon Lighting believes that with our verti

142、cally integrated business model and the business strategies previously discussed,our market leading position in Australia will be maintained.4.3.2 Supplier and Buying AgentsBeacon Lighting is a vertically integrated business which heavily relies upon third party suppliers and buying agent structure.

143、Beacon Lighting will continue to monitor the supplier and buying agent performance and spread product manufacturing across many suppliers.4.3.3 Exchange RatesThe majority of goods that are purchased and imported by Beacon Lighting are purchased in US dollars.As a result,the Group is exposed to fluct

144、uations in the AUD/USD exchange rates.Beacon Lighting mitigates this risk by carrying all domestic stock in Australia in AUD by using a variety of forward contracts,spot rates and options.4.3.4 Growth StrategiesBeacon Lighting has a number of different business strategies to support future growth an

145、d earnings.There is no guarantee that the expected benefits of these strategies will be realised.Beacon Lighting will continue to invest in and support growth strategies that can contribute to increase Group value.If these opportunities do not have this capability,then resources will be reallocated

146、to other strategies.4.3.5 Product FailureAs a vertically integrated business self-supplying over 90%of stock that is technically complex in nature,there is always a risk of product failure.Beacon Lighting continues to make significant investment in engineering,product development and quality control

147、 to minimise this risk.4.3.6 Operating ExpensesOperating expenses continue to increase.Some of these expenses are contractual and some are beyond the control of the Group.The ongoing increase in scale of Beacon Lighting gives the Group the opportunity to deliver future operating expense efficiencies

148、.16BEACON LIGHTING GROUP ANNUAL REPORT 2015For personal use only4.4 Trading OutlookBeacon Lighting has made a solid start to FY2016.Some of the key strategies that are already in place for FY2016 and beyond are:A new E-Commerce sales channel,.au became operational in July 2015.The GE Distribution an

149、d Product Development Licence Agreement for Australia and New Zealand to become operational in September 2015.At the end of September 2015,the Essendon and Watergardens franchise stores will be purchased and converted into Company Operated Stores.Three new stores,Maribyrnong(VIC),Fairfield(QLD)and P

150、reston(VIC)are expected to be opened during FY2016.A store expansion at the Alexandria(NSW)store was completed in July 2015.A major refurbishment is planned for the Osborne Park(WA)store with a targeted completion date of October 2015.48 new products have been released for the Lamps Catalogue and 84

151、 new products for the Spring/Summer Catalogue.The JustEnough forecasting and replenishment system is expected to become operational in September 2015.Going forward,the ongoing development in LED,fan and globe technologies will continue to provide Beacon Lighting with opportunities to bring fresh and

152、 exciting new products to our customers.Beacon Lighting also continues to review a portfolio of new store opportunities along with possible business acquisitions.Beacon Lighting expects the current growth strategies to continue to drive improved sales and profit results in FY2016.5.Significant Chang

153、es in the State of AffairsDuring the financial year there were no significant changes in the state of the affairs of the Group.6.Directors MeetingsThe numbers of meetings of the Companys Board of Directors held during the financial period ended 28 June 2015,and the numbers of meetings attended by ea

154、ch Director were:H=Number of meetings held during the time the Director held office or was a member of the committee during the period.A=Number of meetings attended.Directors MeetingsCommittee MeetingsAuditRemuneration&NominationDIRECTORHAHAHAI Robinson1313-55G Robinson131344-E Barr13134455N Osborne

155、131344557.Directors Interests in SharesThe relevant interest of each Director in the Company,as notified by the Directors to the ASX in accordance with section 205G(l)of the Corporations Act 2001(Cth),at the date of the report is as follows:8.Directors Interests in ContractsDirectors interests in co

156、ntracts are disclosed in Note 31 of the financial statements.9.DividendsDividends paid to members during the financial period were as follows:To avoid any doubt,in FY2014$14.5m was paid prior to the Group listing on the ASX.1Heystead Nominees Pty Ltd and other Robinson Family member interests.Direct

157、orOrdinary Shares in the CompanyI Robinson1118,652,589G Robinson1118,652,589E Barr150,000N Osborne300,000FY 2015$000FY 2014$000Fully franked dividends provided or paid during the period6,88214,50010.Insurance of Officers10.1 Indemnification of DirectorsThe Group has indemnified each Director referre

158、d to in this Report,the Company Secretary and previous Directors and officers against all liabilities or loss(other than to the Group or a related body corporate)that may arise from their position as officers of the Group and its controlled entities,except where the liability arises out of conduct i

159、nvolving a lack of good faith or where indemnification is otherwise not permitted under the Corporations Act.The indemnity stipulates that the Group will meet the full amount of any such liabilities,including costs and expenses,and covers a period of seven years after ceasing to be an officer of the

160、 Group.The indemnity is contained in a Deed of Access,Insurance and Indemnity,which also gives each officer access to the Groups books and records.The Group has also indemnified the current and previous Directors of its controlled entities and certain members of the Companys senior management for al

161、l liabilities or loss(other than to the Group or a related body corporate)that may arise from their position,except where the liability arises out of conduct involving a lack of good faith or where indemnification is otherwise not permitted under the Corporations Act.17DIRECTORS REPORTFor personal u

162、se only10.2 Insurance premiumsDuring the financial period,Beacon Lighting Group Limited paid a premium of$35,911 to insure the Directors and officers of the Group against any loss which he/she becomes legally obligated to pay on account of any claim first made against him/her during the policy perio

163、d.11.Indemnity of AuditorsBeacon Lighting Group Limited has agreed to indemnify their auditors,PricewaterhouseCoopers(PwC),to the extent permitted by law,against any claim by a third party arising from Beacon Lighting Group Limiteds breach of their agreement.The indemnity stipulates that Beacon Ligh

164、ting Group Limited will meet the full amount of any such liabilities including a reasonable amount of legal costs.12.Proceedings on Behalf of the Company No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the company,or to in

165、tervene in any proceedings to which the Company is a party,for the purpose of taking responsibility on behalf of the Group for all or part of those proceedings.No proceedings have been brought or intervened in on behalf of the Group with leave of the Court under section 237 of the Corporations Act 2

166、001(Cth).13.Events Subsequent to Reporting DateOther than the item described below,there has been no other matter or circumstance that has occurred subsequent to period end that has significantly affected,or may significantly affect,the operations of the Group,the results of those operations or the

167、state of affairs of the Group or economic entity in subsequent financial periods.Effective from September 2015,Beacon Lighting Group has entered into a sole Distribution and IP License Agreement with GE Lighting for the Australian and New Zealand markets.These agreements provide the Group with whole

168、sale distribution rights of the current GE branded range of lamps(globes)and other consumer lighting fixtures.They also provide use of the prominent GE brand under license for further product development by Beacon Lighting.Effective from 28th September 2015,Beacon Lighting Group has agreed to terms

169、for the acquisition of two Beacon Lighting Franchised stores.The stores,located at Watergardens Homemaker Centre(Victoria)and Essendon Homemaker Hub(Victoria).Having traded for more than 14 and 9 years respectively,they have developed a solid customer base over that time.A fully franked dividend of$

170、5,161,822 was declared on August 19,2015.14.Audit Services14.1 Auditors independence declarationThe auditors independence declaration to the Directors of the Consolidated Entity in relation to the auditors compliance with the independence requirements of the Corporations Act 2001(Cth)and the profess

171、ional code of conduct for external auditors,forms part of the Directors Report.No person who was an officer of the Consolidated Entity during the financial year was a Director or partner of the Consolidated Entitys external auditor.14.2 Audit and non-audit services provided by the external auditorDu

172、ring the 52 weeks ended 28 June 2015,the following fees were paid or were due and payable for services provided by the external auditor,PwC,of the Consolidated Entity:In addition to their statutory audit duties,PwC provided taxation and other assurance related services to the Group.The Board has a r

173、eview process in relation to non-audit services provided by the external auditor.The Board considered the non-audit services provided by PwC and,in accordance with written advice provided,and endorsed,by a resolution of the Audit Committee,is satisfied that the provision of these non-audit services

174、by the auditor is compatible with,and does not compromise,the auditor independence requirements of the Corporations Act 2001(Cth)for the following reasons:all non-audit services are subject to the corporate governance procedures adopted by the Group and are reviewed by the Audit Committee to ensure

175、they do not impact the integrity and objectivity of the auditor;and non-audit services provided do not undermine the general principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants,as they do not involve reviewing or auditing the auditors own wo

176、rk,aiding in a management or decision making capacity for the Group,acting as an advocate for the Company or jointly sharing risks and rewards with the Group.15.AuditorPricewaterhouseCoopers continues in office in accordance with section 327 of the Corporations Act 2001(Cth).16.Remuneration Report16

177、.1 Remuneration overviewThe Board recognises that the performance of the Group depends on the quality and motivation of our Associates,including the executives and our 833 Associates employed by the Group across Australia and Internationally.The Group remuneration strategy therefore seeks to appropr

178、iately attract,reward and retain Associates at all levels in the business,but in particular for management and key executives.The Board aims to achieve this by establishing executive remuneration packages that include a mix of fixed remuneration and short term incentives.The Board has appointed the

179、Remuneration and Nomination Committee whose objective is to assist the Board in relation to the Group remuneration strategy,policies and actions.In performing this responsibility,the Committee must give appropriate consideration to the Groups performance and objectives,employment conditions and exte

180、rnal remuneration relativities.The Committee reviews and determines our remuneration policy and structure annually to ensure it remains aligned to business needs and meets the groups remuneration principles.No remuneration consultants were engaged by the Group in FY2015.Consolidated EntityFY 2015$FY

181、 2014$Audit&assurance servicesAudit&review of financial statements201,400199,410IPO due diligence-164,495Other servicesOther IPO services-38,836IPO tax related services-118,935Tax services133,81130,190Other services22,655-Total remuneration of PwC357,866551,86618BEACON LIGHTING GROUP ANNUAL REPORT 2

182、015For personal use onlyThe remuneration framework for senior executives comprises a mix of both fixed and variable remuneration components.Variable remuneration may be delivered in the form of cash and performance rights,subject to the achievement of short term performance targets.An outline of the

183、 remuneration framework is set out belowAssessing performance and claw-back of remunerationThe Remuneration and Nomination Committee is responsible for assessing performance against KPIs and determining the STIs to be paid.To assist in this assessment,the Committee receives detailed financial report

184、s from management which are based on independently verifiable financial statements.In the event of serious misconduct or material misstatement in the Groups financial statements the remuneration committee can cancel performance based remuneration and may also claw back performance based remuneration

185、 paid in previous financial years.16.2 Principles used to determine the nature and amount of remuneration(a)Directors FeesThe Executive Chairman and the Chief Executive Officer do not receive Directors fees but are remunerated as executives within the business.The Deputy Chairman and the Non-Executi

186、ve Director are entitled to receive annual fees of$110,000 and$100,000 respectively.These fees are inclusive of their relevant responsibilities on the various Group Committees,and are also inclusive of superannuation.These fees exclude any additional fees for special services which may be determined

187、 from time to time.No additional retirement benefits are payable.The Non-Executive Director fees are reviewed annually to ensure that the fees reflect market rates.There are no guaranteed annual increases in any Directors fees.The Executive Chairman and Non-Executive Directors do not participate in

188、the short or long term incentive schemes.(b)Executive RemunerationThe current executive salary and reward framework has three components:1.Fixed remuneration;2.Short term cash incentives;and 3.Short term performance rights incentives.The combination of these components comprises the executives total

189、 remuneration.For the year ended 28 June 2015,the Group did not a have long term incentive program in place.1.Fixed remunerationExecutive base salaries are structured as a part of the total employment remuneration package which comprises the fixed component of pay and other financial benefits being

190、car allowances.Fixed remuneration includes superannuation which is paid in accordance with legislated amounts.Fixed remuneration for executives is reviewed annually to provide competitiveness with the market,whilst also taking into account capability,experience,value to the organization and performa

191、nce of the individual.There are no guaranteed base salary increases included in executive contracts.An executives remuneration is also reviewed on promotion.In FY2015 fixed remuneration was increased for three executives at an average of increase of 1.53%.This was done to align remuneration with com

192、parative roles.2.Short term cash incentivesExecutives including the Chief Executive Officer but not the Executive Chairman are eligible to participate in an annual short term cash incentive which delivers rewards by way of cash bonuses,subject to the achievement of the Group financial performance ta

193、rgets.The Groups Net Profit Before Tax(NPBT)result has been determined as the appropriate financial performance target to trigger the payment of cash incentives for each period.The amount of any short term cash incentive paid in a year is dependent upon the level of performance achieved against the

194、Groups financial performance target,Net Profit Before Tax(NPBT)for the year.The Board considers NPBT to be an appropriate performance measure as it aligns the Groups remuneration philosophy with creating value,and is within the scope of influence of participants.ElementPurposePerformance metricsPote

195、ntial ValueChanges for FY2015Fixed Remuneration(FR)Provide competitive market salary including superannuation and non-monetary benefitsNilPositioned at competitive market ratesSTI(Cash bonus)Reward for in year performanceBudgeted NPBT200%of on target cash bonusNo changeSTI(Performance Rights)Reward

196、for in year performanceBudgeted NPBT125%of on target cash bonusNo changeRemuneration FrameworkStructure of short term cash incentive planFeatureDescriptionMaximum opportunity200%of on target cash bonus valuePerformance metricBudgeted NPBTDelivery of STI100%of STI award is paid in cash after the fina

197、ncial results have been audited and approved by the boardBoard discretionThe board has discretion to adjust remuneration outcomes up or down to prevent any inappropriate reward outcomes,including reducing down to zero if appropriate19DIRECTORS REPORTFor personal use only3.Short term performance righ

198、ts incentivesDuring the year ended 28 June 2015 the Group implemented a short term performance rights incentive plan for selected senior executives as contemplated by the IPO prospectus.Executives including the Chief Executive Officer but not the Executive Chairman are eligible to participate in the

199、 annual short term performance rights incentive plan,subject to the achievement of the Group financial performance targets.Performance rights provide selected senior executives the opportunity to acquire shares,subject to meeting the relevant conditions for vesting,at no cost to the senior executive

200、.100%of the annual incentive plan will be assessed by financial measures.The financial measures used under the plan is the Groups NBPT result.This is tested annually after the end of the financial year.The Board considers NPBT to be an appropriate performance measure as it aligns the Groups remunera

201、tion philosophy with creating value,and is within the scope of influence of participants.The board will review the nature of potential issues of performance incentives moving forward to reflect market practice and to reflect the principles underlying the Groups remuneration policy.16.4 Statutory per

202、formance indicatorsBeacon Lighting aims to align executive remuneration to strategic and business objectives and the creation of shareholder wealth.The table below shows measures of the Groups financial performance over the last two years as required by the Corporations Act 2001(Cth).However these m

203、easures are not necessarily consistent with measures used in determining the variable amounts of remunerations awarded to KMPs.As a consequence there may not always be a direct correlation between the statutory key performance measures and the variable remuneration awarded.Statutory key performance

204、indicators of the group16.5 Details of remunerationThe following executives along with the Directors are identified as key management personnel with the authority and responsibility for planning,directing and controlling the activities of the Group,directly and indirectly,during the financial year.I

205、an Robinson Executive ChairmanGlen Robinson Chief Executive OfficerIan Bunnett Managing Director RetailDavid Speirs Chief Financial Officer Barry Martens Chief Operating OfficerAll of the above executives were employed by Beacon Lighting and were key management personnel for the entire year ended 28

206、 June 2015 and year ended 29 June 2014 unless otherwise stated.FY 2015 FY 2014Profit for the year attributable to owners of Beacon Lighting Group Limited($000)16,93911,797Basic earnings per share(cents)7.885.49Dividend payments($000)6,88214,500Share Price2.001.03FeatureDescriptionMaximum opportunity

207、125%of on target cash bonus valuePerformance metricBudgeted NPBTDelivery of STI100%of STI performance rights award is provided as an issue of shares after the financial results have been audited and approved by the boardBoard discretionThe board has discretion to adjust remuneration outcomes up or d

208、own to prevent any inappropriate reward outcomes,including reducing down to zero if appropriateStructure of short term performance rights incentive plan16.3 FY2015 performance and impact on remunerationBeacon Lightings performance in 2015 remained strong.For the year ended 28 June 2015,the Groups fi

209、nancial performance targets were met and the annual short term cash incentive is expected to be in the 150%range of the on target cash bonus value and the short term performance rights incentive will be expected to be issued in the range of 125%of the on target cash bonus value.20BEACON LIGHTING GRO

210、UP ANNUAL REPORT 2015For personal use onlyThe details of the remuneration of the Directors and other key management personnel for the Beacon Lighting Group Limited and the consolidated entity for the current and prior financial periods are set out in the following table:Fixed RemunerationVariable Re

211、munerationCash Salary&Fees$Non-monetary benefits$Post Employement Super Contributions$Annual&Long Service Leave$Cash Performance Based Payment$Share Based payments$Total DIRECTORSI Robinson(Chairman)2015 158,920 -17,397 33,808-210,1252014 167,752 1,873 15,312 31,949-216,886G Robinson (Chief Executiv

212、e Officer)2015 194,481-19,3763,67339,954 10,938 268,4222014 169,647 6,025 15,307 658 19,222 -210,859E Barr(Non-Executive)2015 101,558-8,442-110,0002014 152,281-7,817-160,098N Osborne(Non-Executive)2015 100,000-100,0002014 72,472-72,472M Hanman(Non-Executive)2015-2014 88,073-8,146-96,219Total Remuner

213、ation Directors2015 554,959-45,215 37,481 39,954 10,938 688,5472014 650,225 7,898 46,582 32,607 19,222-756,534EXECUTIVESI Bunnett(Managing Director Retail)2015 198,409 -23,282 13,836 57,078 15,625 308,2302014 198,137 1,223 18,889 15,464 27,460 -261,173D Speirs(Chief Financial Officer)2015 176,090 -2

214、2,925 14,145 57,078 15,625 285,8632014 176,809 2,921 18,660 16,359 27,460 -242,209B Martens(Chief Operating Officer)2015 190,481 -21,451 13,46857,078 15,625298,1032014 192,776 1,869 16,494 8,872 27,460 -247.471Total Remuneration Executives2015 564,980 -67,658 41,449 171,234 46,875 892,1962014 567,72

215、2 6,013 54,043 40,695 82,380 -750,85321DIRECTORS REPORTFor personal use onlyGrant DateQuantity GrantedVest DateValue at grant date$Vest%Quantity VestedValue Expensed this year$G Robinson 22.8.201430,78125-Aug-1425-Aug-1525-Aug-1632,81333%10,26024,165I Bunnett22.8.201443,97325-Aug-1425-Aug-1525-Aug-1

216、646,87533%14,65834,522D Speirs22.8.201443,97325-Aug-1425-Aug-1525-Aug-1646,87533%14,65834,522B Martens22.8.201443,97325-Aug-1425-Aug-1525-Aug-1646,87533%14,65834,522Total162,700173,438127,73116.6 Share-based CompensationThe number of performance rights over shares in the Group granted to the chief e

217、xecutive officer and other key management personnel during the current financial period,together with prior period grants which vested during the period is set out below:The fair value of performance rights granted on 22 August 2014(grant date)was$1.066,with a final vesting date of 22 August 2016.Al

218、l performance rights granted during the current period will vest on the exercise dates above provided the executive remains employed by the Group at the vesting date.The performance rights have a zero exercise price.Subject to meeting the relevant vesting conditions,shares will be issued at no cost

219、to the executive.In the event an employee leaves the Group prior to the vesting date the performance rights will lapse.22BEACON LIGHTING GROUP ANNUAL REPORT 2015For personal use only16.7 Share holdingsThe numbers of ordinary voting shares in the Company held during the financial year by each directo

220、r of Beacon Lighting Group and other key management personnel of Beacon Lighting Group,including their personally related parties,are set out below.Balance at start of yearReceived during the year1Purchase of sharesSales of sharesBalance at end of the yearDIRECTORSI Robinson(Chairman)22015 118,595,0

221、00 7,329-118,602,329 2014 -118,595,000 -118,595,000 G Robinson (Chief Executive Officer)2015 40,00010,260-50,260 2014 -40,000-40,000 E Barr(Non-Executive)2015 150,000-150,0002014 -150,000-150,000N Osborne(Non-Executive)2015 300,000-300,000 2014 -300,000-300,000 EXECUTIVESI Bunnett(Managing Director

222、Retail)2015 20,000 14,658 -34,658 2014 -20,000-20,000D Speirs(Chief Financial Officer)2015 30,000 14,658-44,6582014 -30,000-30,000B Martens(Chief Operating Officer)2015 24,545 14,658 -39,2032014 -24,545-24,545Total2015 119,159,545 61,563 -119,221,1082014 -119,159,545-119,159,5451 Shares received dur

223、ing the year were a result of performance rights issued under the STI plan.2 Heystead Nominees Pty Ltd and other Robinson Family member interests,excluding Glen Robinson.23DIRECTORS REPORTFor personal use onlyFor personal use onlyIan Robinson Executive Chairman Melbourne,19 August 2015Glen Robinson

224、Chief Executive OfficerSigned in accordance with a resolution of Directors16.8 Service AgreementsAll executives are on employed on terms consistent with the remuneration framework outlined in this report.Each of the relevant executive agreements is for a continuing term with but may be terminated by

225、 either party with a required notice period of 12 weeks.These agreements do not provide for any termination payments other than payment in lieu of notice.16.9 Voting of shareholders at last years annual general meetingBeacon Lighting Group received more than 90%of yes votes on its remuneration repor

226、t for the 2014 financial year.The Company did not receive any specific feedback at the AGM or throughout the year on its remuneration practices.25DIRECTORS REPORTFor personal use onlyAuditors Independence DeclarationPricewaterhouseCoopers,ABN 52 780 433 757Freshwater Place,2 Southbank Boulevard,SOUT

227、HBANK VIC 3006,GPO Box 1331,MELBOURNE VIC 3001T:61 3 8603 1000,F:61 3 8603 1999,.auLiability limited by a scheme approved under Professional Standards Legislation.Auditors Independence DeclarationAs lead auditor for the audit of Beacon Lighting Group Limited for the year ended 28 June 2015,Ideclare

228、that to the best of my knowledge and belief,there have been:a)no contraventions of the auditor independence requirements of the Corporations Act 2001 inrelation to the audit;andb)no contraventions of any applicable code of professional conduct in relation to the audit.This declaration is in respect

229、of Beacon Lighting Group Limited and the entities it controlled duringthe period.Daniel RosenbergMelbournePartner19 August 2015PricewaterhouseCoopers26BEACON LIGHTING GROUP ANNUAL REPORT 2015For personal use onlyFor personal use onlyIndex to the Financial Statements PageConsolidated Statement of Com

230、prehensive Income 29Consolidated Balance Sheet 30Consolidated Statement of Changes in Equity 31Consolidated Statement of Cash Flows 32Notes to the Financial Statements 1 Summary of Significant Accounting Policies 332 Financial Risk Management 393 Segment Information 424 Revenue from Ordinary Activit

231、ies and Other Revenue 425 Other Income 426 Expenses 437 Income Tax Expense 448 Cash and Cash Equivalents 459 Trade and Other Receivables 4510 Inventories 4611 Derivative Financial Instruments 4712 Other Current Assets 4713 Property,Plant and Equipment 4814 Deferred Tax Assets 4915 Intangible Assets

232、5016 Trade and Other Payables 51 Page17 Current Borrowings 5218 Current Provisions 5219 Current Tax Liabilities 5320 Non Current Borrowings 5421 Non Current Provisions 5422 Contributed Equity 5523 Reserves and Retained Profits 5624 Dividends 5725 Key Management Personnel Disclosures 5826 Share Based

233、 payments 5827 Earnings Per Share 5928 Remuneration of Auditors 6029 Contingencies 6030 Commitments 6031 Related Party Transactions 6132 Subsidiaries 6333 Events Occurring After the Reporting Period 6334 Reconciliation of Profit After Income Tax to Net Cash Inflow from Operating Activities 6435 Non-

234、Cash Investing and Financing Activities 6436 Critical Accounting Estimates 6437 Parent Entity Financial Information 6538 Deed of Cross Guarantee 6628BEACON LIGHTING GROUP ANNUAL REPORT 2015For personal use onlyCONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEThe above consolidated statement of comprehe

235、nsive income should be read in conjunction with the accompanying Notes.For the 52 weeks ended 28 June 2015 and the 52 weeks ended 29 June 2014 Beacon Lighting Group and its controlled entitiesConsolidated EntityNotesFY 2015$000FY 2014$000Revenue from ordinary activitiesSale of goods4179,386150,338Ot

236、her revenue43,7434,1814183,129154,519Other income52061,340Expenses6Cost of sales of goods(63,345)(53,678)Other expenses from ordinary activitiesMarketing(11,004)(9,629)Selling and distribution(67,508)(60,309)General and administration(16,436)(14,177)Finance costs6(1,210)(1,009)Profit before income t

237、ax23,83217,057Income tax expense7(6,893)(5,260)Profit for the period attributable to the members of the parent entity16,93911,797Other comprehensive incomeItems that may be reclassified to profit or lossChanges in the fair value of derivatives23(a)767(474)Exchange differences on translation of forei

238、gn operations 23(a)613-Income tax relating to these items(414)143Other comprehensive income for the period,net of tax966(331)Total comprehensive income for the period attributable to the members of the parent entity17,90511,466Earnings per shareCentsCentsBasic earnings per share277.885.49Diluted ear

239、nings per share277.875.4929FINANCIAL STATEMENTSFor personal use onlyCONSOLIDATED BALANCE SHEETThe above consolidated balance sheet should be read in conjunction with the accompanying Notes.As at 28 June 2015 and as at 29 June 2014 Beacon Lighting Group and its controlled entities.Consolidated Entity

240、NotesFY 2015$000FY 2014$000Current assetsCash and cash equivalents811,77911,427Trade and other receivables97,0178,217Inventories1044,65632,194Derivative financial instruments11299-Other current assets12698365Total current assets64,44952,203Non-current assetsProperty,plant and equipment1319,12116,818

241、Deferred tax assets145,4813,832Intangible assets155,0854,125Total non-current assets29,68724,775Total assets94,13676,978Current liabilitiesTrade and other payables1615,68616,566Borrowings1718,09013,592Provisions184,7644,236Derivative financial instruments11-238Current tax liabilities192,5721,147Tota

242、l current liabilities41,11235,779Non-current liabilitiesBorrowings201,278774Provisions212,3402,221Total non-current liabilities3,6182,995Total liabilities44,73038,774Net assets49,40638,204EquityContributed equity2262,64762,565Other reserves23(a)(42,847)(43,910)Retained earnings23(b)29,60619,549Total

243、 equity49,40638,20430BEACON LIGHTING GROUP ANNUAL REPORT 2015For personal use onlyCONSOLIDATED STATEMENT OF CHANGES IN EQUITYThe above consolidated statement of changes in equity should be read in conjunction with the accompanying Notes.For the 52 weeks ended 28 June 2015 and the 52 weeks ended 29 J

244、une 2014 Beacon Lighting Group and its controlled entities.Consolidated EntityNotesContributed equity$000Reserves$000Retained earnings$000Totalequity$000Balance as at 30 June 201462,565(43,910)19,54938,204Profit for the year-16,93916,939Other comprehensive income23(a)-966-966Total comprehensive inco

245、me for the period-96616,93917,905Transactions with owners in their capacity as owners:Issue of shares to employees2282-82Employee share scheme23(a)-97-97Dividends provided for or paid24-(6,882)(6,882)Total contributions by and distributions to owners8297(6,882)(6,703)Balance as at 28 June 201562,647

246、(42,847)29,60649,406Balance as at 1 July 20132,150(692)41,05542,513Profit for the year-11,79711,797Other comprehensive income-(331)-(331)Total comprehensive income for the period-(331)11,79711,466Transactions with owners in their capacity as owners:Contributions of equity,net of transaction costs&ta

247、x2260,415-60,415Non controlling interests in acquired subsidiaries23(a)-(42,887)(18,803)(61,690)Dividends provided for or paid24-(14,500)(14,500)Total contributions by and distributions to owners60,415(42,887)(33,303)(15,775)Balance as at 29 June 201462,565(43,910)19,54938,20431FINANCIAL STATEMENTSF

248、or personal use onlyCONSOLIDATED STATEMENT OF CASH FLOWSThe above consolidated statement of cash flows should be read in conjunction with the accompanying Notes.For the 52 weeks ended 28 June 2015 and the 52 weeks ended 29 June 2014 Beacon Lighting Group and its controlled entitiesConsolidated Entit

249、yNotesFY 2015$000FY 2014$000Cash flows from operating activitiesReceipts from customers(inclusive of goods and services tax)201,208167,236Payments to suppliers and employees(inclusive of goods and services tax)(184,439)(144,612)Interest received91117Borrowing costs(1,210)(1,009)Income taxes paid(6,5

250、66)(6,026)Net cash inflow from operating activities349,08415,706Cash flows from investing activitiesPayments for acquisitions(1,400)(790)Payments for property,plant and equipment(3,986)(3,620)Proceeds from sale of property,plant and equipment7526Repayment of loans from related parties-9,200Net cash(

251、outflow)from investing activities(5,311)4,816Cash flows from financing activitiesRepayment of borrowings(net)3,461(908)Dividends paid to Companys shareholders24(6,882)(14,500)Proceeds from share capital raised-63,854Costs associated with share capital raised-(1,289)Payment to non-controlling interes

252、ts-(63,854)Net cash inflow from financing activities(3,421)(16,697)Net increase in cash and cash equivalents3523,825Cash and cash equivalents at the beginning of the financial year11,4277,602Cash and cash equivalents at end of period811,77911,42732BEACON LIGHTING GROUP ANNUAL REPORT 2015For personal

253、 use only1.Summary of Significant Accounting PoliciesThe principal accounting policies adopted in the preparation of this consolidated financial report is set out below.These policies have been consistently applied to all the periods presented,unless otherwise stated.The financial report is for the

254、consolidated entity consisting of Beacon Lighting Group Limited and its subsidiaries.(a)Basis of PreparationThis general purpose financial report has been prepared in accordance with Australian Accounting Standards and interpretations issued by the Australian Accounting Standards Board and the Corpo

255、rations Act 2001(Cth).Beacon Lighting Group Limited is a for-profit entity for the purpose of preparing the financial report.Beacon Lighting Group Limited operates within a retail financial period.The current financial period was a 52 week retail period ended on the 28 June 2015(2014:52 week period

256、ending 29 June 2014).This treatment is consistent with section 323D of Corporations Act 2001(Cth).(i)New and amended standards adoptedThe Group has applied the following standards and amendments applicable for the first time for the June 2015 annual report:AASB 2013-3 Amendments to AASB 136 Recovera

257、ble Amount Disclosures for Non-Financial Assets AASB 2013-4 Amendments to Australian Accounting Standards Novation of Derivatives and Continuation of Hedge Accounting AASB 2014-1 Amendments to Australian Accounting StandardsThe adoption of these standards did not have any impact on the current perio

258、d or any prior period and is not likely to affect future periods.(ii)Standards and interpretations not yet adopted ASB9 Financial InstrumentsAASB 9 addresses the classification,measurement and derecognition of financial assets and financial liabilities and introduces new rules for hedge accounting.I

259、n December 2014,the AASB made further changes to the classification and measurement rules and also introduced a new impairment model.These latest amendments now complete the new financial instruments standard.Following the changes approved by the AASB in December 2014,the Group no longer expects any

260、 impact from the new classification,measurement and derecognition rules on the Groups financial assets and financial liabilities.There will also be no impact on the Groups accounting for financial liabilities,as the new requirements only affect the accounting for financial liabilities that are desig

261、nated at fair value through profit or loss and the Group does not have any such liabilities.The new hedging rules align hedge accounting more closely with the Groups risk management practices.As a general rule it will be easier to apply hedge accounting going forward as the standard introduces a mor

262、e principles-based approach.The new standard also introduces expanded disclosure requirements and changes in presentation.The new impairment model is an expected credit loss(ECL)model which may result in the earlier recognition of credit losses.The Group has not yet assessed how its own hedging arra

263、ngements and impairment provisions would be affected by the new rules.IFRS 15 Revenue from contracts with customersThe AASB has issued a new standard for the recognition of revenue.This will replace AASB 118 which covers contracts for goods and services and AASB 111 which covers construction contrac

264、ts.The new standard is based on the principle that revenue is recognised when control of a good or service transfers to a customer so the notion of control replaces the existing notion of risks and rewards.The standard permits a modified retrospective approach for the adoption.Under this approach en

265、tities will recognise transitional adjustments in retained earnings on the date of initial application(eg 1 July 2017),ie without restating the comparative period.They will only need to apply the new rules to contracts that are not completed as of the date of initial application.At this stage Beacon

266、 Lighting Group Limited is of the view that the new rules will not have a significant impact on the Groups financial statements.The Group will make more detailed assessments of the impact over the next twelve months.(iii)Compliance with IFRSThe consolidated financial report of the Beacon Lighting Gr

267、oup Limited Group also complies with International Financial Reporting Standards as issued by the International Accounting Standards Board.(iv)Historical cost conventionThis financial report has been prepared in accordance with the historical cost convention.Comparative information is reclassified w

268、here appropriate to enhance comparability.(v)Critical accounting estimatesThe preparation of financial statements requires the use of certain critical accounting estimates.It also requires management to exercise its judgement in the process of applying the Groups accounting policies.Refer to Note 36

269、 Critical accounting estimates for detailed explanation of items requiring assumptions and estimates.The accounting policies adopted are consistent with those of the previous financial year and corresponding interim reporting period.(b)Comparative Financial InformationUnless otherwise stated,the acc

270、ounting policies adopted are consistent with those of the previous year.Comparative information is reclassified where appropriate to enhance comparability and provide more appropriate information to users.(c)Principles of ConsolidationThe consolidated financial report incorporates the assets and lia

271、bilities of all subsidiaries of Beacon Lighting Group Limited(Group or parent entity)as at 28 June 2015 and the results of all subsidiaries for the period then ended.Beacon Lighting Group Limited and its subsidiaries together are referred to in this financial report as the Group or the consolidated

272、entity.Subsidiaries are all entities over which the Group has control.The Group controls an entity when the Group is exposed to,or has rights to,variable returns from its involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity.

273、Subsidiaries are fully consolidated from the date on which control is transferred to the Group.They are deconsolidated from the date that control ceases.NOTES TO THE FINANCIAL STATEMENTSFor the 52 weeks ended 28 June 2015 and the 52 weeks ended 29 June 2014Beacon Lighting Group and its controlled en

274、tities33NOTES TO THE FINANCIAL STATEMENTSFor personal use onlyThe acquisition method of accounting is used to account for business combinations by the Group(refer to Note 1(i).Intercompany transactions,balances and unrealised gains on transactions between group companies are eliminated.Unrealised lo

275、sses are also eliminated unless the transaction provides evidence of an impairment of the transferred asset.Accounting policies of subsidiaries have been changed where necessary to ensure consistency with the policies adopted by the Group.Where control of an entity is obtained during a financial per

276、iod,its results are included in the consolidated statement of comprehensive income from the date on which control commences.Where control of an entity ceases during a financial period its results are included for that part of the period during which control existed.Investments in subsidiaries are ac

277、counted for at cost in accounting records of Beacon Lighting Group Limited.The Group treats transactions with non-controlling shareholders that do not result in a loss of control as transactions with equity owners of the Group.A change in ownership interest results in an adjustment between the carry

278、ing amounts of the controlling and non-controlling shareholders to reflect their relative interest in the subsidiary.Any difference between the amount of the adjustment to non-controlling shareholders and any consideration paid or received is recognised in a seperate reserve within equity attributab

279、le to the owners of Beacon Lighting Group Limited.(d)Segment ReportingOperating segments are reported in a manner consistent with the internal reporting provided to the chief operating decision maker.The chief operating decision maker,who is responsible for allocating resources and assessing perform

280、ance of the operating segments,has been identified as the Chief Executive Officer.(e)Foreign Currency Translation(i)Functional and presentation currencyItems included in the financial report of each of the Groups entities are measured using the currency of the primary economic environment in which t

281、he entity operates(the functional currency).The consolidated financial report is presented in Australian dollars,which is Beacon Lighting Group Limiteds functional and presentation currency.(ii)Transactions and balancesForeign currency transactions are translated into the functional currency using t

282、he exchange rates prevailing at the dates of the transactions.Foreign exchange gains and losses resulting from the settlement of such transactions and from the translation at year end exchange rates of monetary assets and liabilities denominated in foreign currencies are recognised in profit or loss

283、,except when they are deferred in equity as qualifying cash flow hedges and qualifying net investment hedgeses.(iii)Specific commitmentsHedging is undertaken in order to avoid or minimise possible adverse financial effects of movements in exchange rates.Gains or costs arising upon entry into a hedgi

284、ng transaction intended to hedge the purchase or sale of goods and services,together with subsequent exchange gains or losses resulting from those transactions are deferred in the consolidated statement of comprehensive income from the inception of the hedging transaction up to the date of the purch

285、ase or sale and included in the measurement of the purchase or sale.Any gains or losses arising on the hedging transaction after the recognition of the hedge purchase or sale are included in the consolidated statement of comprehensive income.In the case of hedges of monetary items,exchange gains or

286、losses are brought to account in the financial period in which the exchange rates change.Gains or costs arising at the time of entering into such hedging transactions are brought to account in the consolidated statement of comprehensive income over the lives of the hedges.(iv)Group companiesThe resu

287、lts and financial position of foreign operations(none of which has the currency of a hyper inflationary economy)that have a functional currency different from the presentation currency are translated into the presentation currency as follows:Assets and liabilities for each balance sheet presented ar

288、e translated at the closing rate at the date of that balance sheet;Income and expenses for each income statement and statement of comprehensive income are translated at average exchange rates(unless this is not a reasonable approximation of the cumulative effect of the rates prevailing on the transa

289、ction dates,in which case income and expenses are translated at the dates of the transactions),and All resulting exchange differences are recognised in other comprehensive income.On consolidation,exchange differences arising from the translation of any net investment in foreign entities,and of borro

290、wings and other financial instruments designated as hedges of such investments,are recognised in other comprehensive income.When a foreign operation is sold or any borrowings forming part of the net investment are repaid,the associated exchange differences are reclassified to profit or loss,as part

291、of the gain or loss on sale.Goodwill and fair value adjustments arising on the acquisition of a foreign operation are treated as assets and liabilities of the foreign operation and translated at the closing rate.(f)Revenue RecognitionRevenue is measured at the fair value of the consideration receive

292、d or receivable.Amounts disclosed as revenue are net of returns,trade allowances,rebates and amounts collected on behalf of third parties.(i)Sale of goodsRevenue is recognised when the significant risks and rewards of ownership have been transferred to the buyer and the costs incurred or to be incur

293、red in respect of the transaction can be measured reliably.Risks and rewards are considered passed to the buyer at the time of control of the goods is passed to the customer.Revenue recognised equals the fair value of the consideration received or receivable.(ii)Trust distribution incomeTrust distri

294、bution revenue is recognised when the right to receive a distribution has been established.(iii)Interest incomeInterest income is recognised using the effective interest method.When a receivable is impaired,the Group reduces the carrying amount to its recoverable amount,being the estimated future ca

295、sh flow discounted at the original effective interest rate of the instrument,and continues unwinding the discount as interest income.Interest income on impaired loans is recognised using the original effective interest rate.NOTES TO THE FINANCIAL STATEMENTSFor the 52 weeks ended 28 June 2015 and the

296、 52 weeks ended 29 June 2014Beacon Lighting Group and its controlled entities34BEACON LIGHTING GROUP ANNUAL REPORT 2015For personal use only(g)Income TaxThe income tax expense or revenue for the period is the tax payable on the current periods taxable income based on the applicable income tax rate f

297、or each jurisdiction adjusted by changes in deferred tax assets and liabilities attributable to temporary differences and to unused tax losses.Deferred tax assets and liabilities are recognised for temporary differences at the tax rates expected to apply when the assets are recovered or liabilities

298、are settled,based on those tax rates which are enacted or substantively enacted for each jurisdiction.The relevant tax rates are applied to the cumulative amounts of deductible and taxable temporary differences to measure the deferred tax asset or liability.An exception is made for certain temporary

299、 differences arising from the initial recognition of an asset or a liability.No deferred tax asset or liability is recognised in relation to these temporary differences if they arose in a transaction,other than a business combination,that at the time of the transaction did not affect either accounti

300、ng profit or taxable profit or loss.Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable amounts will be available to utilise those temporary differences and losses.Deferred tax assets and liabilities are offset when

301、 there is a legally enforceable right to offset current tax assets and liabilities and when the deferred tax balances related to the same taxation authority.Current tax assets and tax liabilities are offset where the entity has a legally enforceable right to offset and intends either to settle on a

302、net basis,or to realize the asset and settle the liability simultaneously.Deferred tax liabilities and assets are not recognised for temporary differences between the carrying amount and tax bases of investments in foreign operations where the Group is able to control the timing of the reversal of t

303、he temporary differences and it is probable that the differences will not reverse in the foreseeable future.Current and deferred tax is recognised in profit or loss,except to the extent that it relates to items recognised in other comprehensive income or directly in equity.In this case,the tax is al

304、so recognised in other comprehensive income or directly in equity,respectively.Beacon Lighting Group Limited and its wholly-owned Australian controlled entities have not implemented the tax consolidation legislation.(h)LeasesLeases of property,plant and equipment where the Group,as lessee,has substa

305、ntially all the risks and rewards of ownership are classified as non current assets(Note 13).Finance leases are capitalised at the leases inception at the fair value of the leased property or,if lower,the present value of the minimum lease payments.The corresponding rental obligations,net of finance

306、 charges,are included in other short-term and long-term payables.Each lease payment is allocated between the liability and finance cost.The finance cost is charged to profit or loss over the lease period so as to produce a constant periodic rate of interest on the remaining balance of the liability

307、for each period.The property,plant and equipment acquired under finance leases is depreciated over the assets useful life or over the shorter of the assets useful life.Leases in which a significant portion of the risks and rewards of ownership are not transferred to the Group as lessee are classifie

308、d as operating leases(Note 30).Payments made under operating leases(net of any incentives received from the lessor)are charged to profit or loss on a straight-line basis over the period of the lease.(i)Business CombinationsThe acquisition method of accounting is used to account for all business comb

309、inations,regardless of whether equity instruments or other assets are acquired.The consideration transferred for the acquisition of a subsidiary comprises the fair values of the assets transferred,the liabilities incurred and the equity interests issued by the Group.The consideration transferred als

310、o includes the fair value of any asset or liability resulting from a contingent consideration arrangement and the fair value of any pre-existing equity interest in the subsidiary.Acquisition-related costs are expensed as incurred.Identifiable assets acquired and liabilities and contingent liabilitie

311、s assumed in a business combination are,with limited exceptions,measured initially at their fair values at the acquisition-date.On an acquisition-by-acquisition basis,the Group recognises any non-controlling interest in the acquiree either at fair value or at the non-controlling interests proportion

312、ate share of the acquirees net identifiable assets.The excess of the consideration transferred and the amount of any non-controlling interest in the acquiree over the fair value of the net identifiable assets acquired is recorded as goodwill.If those amounts are less than the fair value of the net i

313、dentifiable assets of the subsidiary acquired and the measurement of all amounts has been reviewed,the difference is recognised directly in profit or loss as a bargain purchase.Where settlement of any part of cash consideration is deferred,the amounts payable in the future are discounted to their pr

314、esent value as at the date of exchange.The discount rate used is the entitys incremental borrowing rate,being the rate at which a similar borrowing could be obtained from an independent financier under comparable terms and conditions.Contingent consideration is classified either as equity or a finan

315、cial liability.Amounts classified as a financial liability are subsequently remeasured to fair value with changes in fair value recognised in profit or loss.If the business combination is achieved in stages,the acquisition date carrying value of the acquirers previously held equity interest in the a

316、cquire is remeasured to fair value at the acquisition date.Any gains or losses arising from such remeasurement are recognised in profit or loss.(j)Impairment of AssetsGoodwill and intangible assets that have an indefinite useful life are not subject to amortisation and are tested annually for impair

317、ment,or more frequently if events or changes in circumstances indicate that they might be impaired.Other assets are tested for impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.An impairment loss is recognised for the amount by which the

318、assets carrying amount exceeds its recoverable amount.The recoverable amount is the higher of an assets fair value less cost of disposal and value-in-use.For the purposes of assessing impairment,assets are grouped at the lowest levels for which there are separately identifiable cash inflows which ar

319、e largely independent of the cash inflows from other assets or groups of assets(cash-generating units).Non-financial assets other than goodwill that suffered an impairment are reviewed for possible reversal of the impairment at the end of each reporting period.(k)Cash and Cash EquivalentsFor the pur

320、pose of presentation in the consolidated statement of cash flows,cash and cash equivalents includes cash on hand,deposits held at call with financial institutions,other short-term,highly liquid investments NOTES TO THE FINANCIAL STATEMENTSFor the 52 weeks ended 28 June 2015 and the 52 weeks ended 29

321、 June 2014Beacon Lighting Group and its controlled entities35NOTES TO THE FINANCIAL STATEMENTSFor personal use onlywith original maturities of three months or less that are readily convertible to known amounts of cash and which are subject to an insignificant risk of changes in value,and bank overdr

322、afts.Bank overdrafts are shown within borrowings in current liabilities in the consolidated balance sheet.(l)Trade ReceivablesTrade receivables are recognised initially at fair value and subsequently measured at amortised cost,less provision for doubtful debts.Trade receivables are due for settlemen

323、t no more than 30-60 days from the date of recognition.Collectability of trade receivables is reviewed on an ongoing basis.Debts which are known to be uncollectible are written off.A provision for doubtful receivables is established when there is objective evidence that the Group will not be able to

324、 collect all amounts due according to the original terms of receivables.The amount of the provision is the difference between the assets carrying amount and the present value of estimated future cash flows,discounted at the effective interest rate.The amount of the provision is recognised in the con

325、solidated statement of comprehensive income.The amount of the impairment loss is recognised in profit or loss within general and administration expenses.When a trade receivable for which an impairment allowance had been recognised becomes uncollectible in a subsequent period,it is written off agains

326、t the allowance account.Subsequent recoveries of amounts previously written off are credited against other expenses in profit or loss.(m)InventoriesFinished goods are stated at the lower of cost and net realisable value.Cost comprises direct materials,and an appropriate proportion of variable and fi

327、xed overhead expenditure.Costs are assigned to individual items of inventory on the basis of weighted average costs.Net realisable value is the estimated selling price in the ordinary course of business less the estimated costs necessary to make the sale.(n)Derivatives and Hedging ActivitiesDerivati

328、ves are initially recognised at fair value on the date a derivative contract is entered into and are subsequently remeasured to their fair value at the end of each reporting period.The accounting for subsequent changes in fair value depends on whether the derivative is designated as a hedging instru

329、ment,and if so,the nature of the item being hedged.The Group documents at the inception of the hedging transaction the relationship between hedging instruments and hedged items,as well as its risk management objective and strategy for undertaking various hedge transactions.The Group also documents i

330、ts assessment,both at hedge inception and on an ongoing basis,of whether the derivatives that are used in hedging transactions have been and will continue to be highly effective in offsetting changes in fair values or cash flows of hedged items.Cash flow hedgeThe effective portion of changes in the

331、fair value of derivatives that are designated and qualify as cash flow hedges is recognised in other comprehensive income and accumulated in reserves in equity.The gain or loss relating to the ineffective portion is recognised immediately in profit or loss within other income or general and administ

332、ration expenses.Amounts accumulated in equity are reclassified to profit or loss in the periods when the hedged item affects profit or loss(for instance when the forecast purchase of inventory that is hedged takes place).The gain or loss relating to the effective portion of forward foreign exchange

333、contracts hedging imported inventory purchases is recognised in profit or loss within other income or general and administration expenses.The deferred amounts are ultimately recognised in profit or loss as cost of goods sold in the case of inventory.(o)Property,Plant and EquipmentAll plant and equipment is stated at historical cost less depreciation.Historical cost includes expenditure that is dir