Eumundi Group (EBG) 2024年年度報告「ASX」.pdf

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1、2024ANNUAL REPORTEUMUNDI GROUP LIMITEDABN 30 010 947 476Corporate DirectoryDirectorsJoseph Michael Ganim Non-executive ChairmanGilbert De Luca Non-executive directorMurray Raymond Boyte Independent Non-executive DirectorChief Executive Officer and Chief Financial OfficerSuzanne Marie Jacobi Company

2、SecretaryDuncan Cornish Notice of annual general meetingThe annual general meeting of Eumundi Group Limited will be held:11:00am Friday,29 November 2024HopgoodGanim Lawyers Level 7,1 Eagle Street Brisbane QLD 4000Registered officec/-HopgoodGanim Lawyers Level 8,1 Eagle Street Brisbane QLD 4000 Telep

3、hone:(07)3024 0000Principal place of businessAshmore Tavern 161 Cotlew Street Ashmore QLD 4214 Telephone:(07)3229 7222 Share registerc/-Computershare Registry Services Pty Limited Level 1,200 Mary Street Brisbane QLD 4000 Telephone 1300 552 270 AuditorPitcher Partners Level 38,Central Plaza One 345

4、Queen Street Brisbane QLD 4000SolicitorsHopgoodGanim Lawyers Level 8,1 Eagle Street Brisbane QLD 4000Stock exchange listingEumundi Group Limited shares are listed on the Australian Securities Exchange(ASX code:EBG)W.auAnnual Report 2024|iChairmans MessageI am pleased to present the Annual Report for

5、 Eumundi Group Limited(the“Group”)for the year ended 30 June 2024(“FY24”).Financial performanceThe Group reported a statutory net profit after tax of$3.621 million for FY24,representing earnings per share of 7.71 cents.The result included a net gain on fair value adjustments of investment properties

6、 of$0.630 million after tax.Total comprehensive profit for the year was$4.324 million,being net profit after tax of$3.621 million and fair value increments in respect of the Groups land and buildings of$0.703 million after tax.In FY23,the reported net profit after tax of$1.477 million included a net

7、 loss on fair value adjustments of investment properties of$1.305 million after tax and the total comprehensive profit of$5.217 million after tax included fair value increments on the Groups land and buildings of$3.740 million after tax.Following the cooling of the property market in FY23,there was

8、little evidence during the FY24 year of sales of equivalent assets to the Groups.Current market guidance confirmed that capitalisation rates had remained unchanged since the prior independent valuations,however that the appetite for hotel assets,such as the Ashmore Tavern and particularly for triple

9、 net lease investment assets such as The Plough Inn and Court House Hotels,remained strong.Fair value gains recognised on the Groups land,building and investment property are attributable solely to improved returns from each asset.FY24 was going to be a very challenging year from the outset.On 1 Jul

10、y 2023,the Fair Work Commission increased the national minimum wage by 5.75%,while a 0.5%increase in statutory superannuation contributions also came into force.The impact of these increases,taking into account on-costs,represented an increase of approximately 7.3%for employee costs.For hotel operat

11、ions,employee costs can represent as much as 55%of operating costs(excluding COGS,gaming tax,depreciation and interest).The impact of higher base wages also reflects in higher labour-based contractors and other costs albeit to a lesser extent.The reduction in consumer disposable income limited our a

12、bility to pass through these costs.During FY24,already soft consumer confidence was eroded further as the Reserve Bank of Australia raised interest rates to 4.25%pa,intensifying the cost-of-living and housing affordability crises.CPI for Brisbane was 4.05%for the year.Despite these market forces adv

13、ersely impacting the Groups operations and constraining profit Ashmore Tavern|Eumundi Group Limited&Controlled Entitiesiigrowth,I am pleased to report that a solid result was achieved.The FY24 underlying profit after tax before fair value adjustments and revaluations and finance costs was$4.262 mill

14、ion,achieved on revenue from operations of$30.432 million.This compared favourably with the prior year result of$3.863 million achieved on revenue of$29.773 million.In summary,based on this measure which the Board believes best represents the underlying earnings of the Group,after tax profit was up

15、by 10%in FY24 on a 2%sales increase.HotelsASHMORE TAVERN Following the completion of the Ashmore Tavern works programme in September 2022,the substantial and modern venue offers patrons a choice of six attractive indoor and outdoor dining spaces including the sports bar and sports bar deck,atrium bi

16、stro,lounge bistro,garden bistro and garden deck which are also available for use as function spaces.With a combined capacity of 850 patrons,Ashmore Tavern can capably deliver functions for up to 250 guests,while continuing to service fully the balance of the venue.Gaming activity was strong through

17、out the year,lifting further during Q4FY24.The Groups ongoing investment in gaming facilities ensure that the offering remains at the highest standard possible to ensure customer satisfaction.An uplift in gaming revenues of 8%was achieved during FY24,delivering a 6%increase in contribution after gam

18、ing taxes and direct costs including wages.Bistro sales increased by 14%compared with FY23,however this prior period included the impact of the 1QFY23 kitchen redevelopment.Bar sales were on par with the prior year.Overall contribution from bar and bistro increased by 6%in FY24 after direct costs in

19、cluding wages.Retail liquor sales decreased by 3%compared with FY23 largely attributable to reduced consumer spend,leading to a trend towards value purchases,and the impact of heightened market competition.Sales to corporate customers,predominantly Gold Coast restaurants,were substantially impacted

20、and suffered a 12%decline year-on-year.The impact of lower retail liquor revenues was partially offset by improved profit margin and cost efficiencies limiting the decrease in contribution after direct costs including wages to 2%.Employment costs were contained during FY24,with an increase of less t

21、han 1%due to the reduction of employee hours across the business attributable to efficiencies achieved on implementation of the new point-of-sale and business systems,and roster tightening in response to fluctuation in sales levels particularly in respect of retail liquor.Overall,operating costs(exc

22、luding COGS,gaming tax,depreciation and finance costs)at Ashmore Tavern increased by less than 1%,well below CPI,and Ashmore Taverns contribution to the Groups EBITDA increased by 10%in FY24.Annual Report 2024|iiiChaIRMaNs MEssaGE|ASPLEY CENTRAL TAVERN Aspley Central Tavern revenues were more marked

23、ly impacted by the difficult trading conditions of FY24 and increased local competitor activity.Gaming turnover had softened compared with the prior year,but lifted when gaming upgrades were delivered in Q4FY24 and resulting in a slight increase.An increase in gaming revenues of 4%was achieved durin

24、g FY24 delivering a 5%increase in contribution after gaming taxes and direct costs including wages.Bistro sales were in line with FY23,while bar sales decreased by 4%.The Aspley Central Tavern suffered significant staff turnover particularly in the kitchen,which reduced operational efficiency and re

25、sulted in higher employment costs attributable to contract staff,recruitment fees and training costs.A range of entertainment was commenced to increase bar and bistro patronage patterns,and customer numbers have been increasing gradually.With the recent appointment of a new head chef,bistro profitab

26、ility is expected to improve in FY25.Retail liquor sales decreased by 8%due to cost-of-living pressures and heightened local competition,while margins were also squeezed,falling by 11%.This resulted in a decline of 33%in retail contribution after direct costs including wages compared with FY23.Overa

27、ll,operating costs(excluding COGS,gaming tax,depreciation and finance costs)at Aspley Central Tavern increased by 4%,below CPI.Aspley Central Taverns contribution to the Groups EBITDA decreased by 3%in FY24.Investment propertiesTHE PLOUGH INN The Plough Inn is located within Southbank Parklands,Bris

28、banes major tourism precinct.Significant upgrades to public spaces in this area have been undertaken during the past 12 months.Pedestrian access between the city and Southbank will be improved with the opening of the Neville Bonner bridge and the new Queens Wharf development on 29 August 2024.Up to

29、10,000 pedestrians are expected to use the bridge daily and further improvements are planned to modernise the precinct ahead of the 2032 Olympics.The lessee of the Plough Inn is part of the Kickon Group,operators of seven high-profile destination venues across Queensland and Victoria.Since acquisiti

30、on in 2017,the lessee has substantially invested in upgrades to the premises,strengthening its business and safeguarding the Groups asset.Rental income for this triple net lease has improved during FY24 due to the CPI increase.|Eumundi Group Limited&Controlled EntitiesivCOURT HOUSE HOTELThe Court Ho

31、use Hotel,in the NSW far north coast town of Murwillumbah,is located within the towns main retail precinct.The hotel includes a coffee shop,public bar and TAB,and 15 accommodation rooms.The hotel has 21 gaming machines and benefits from the absence of other gaming hotel competition in the Murwillumb

32、ah CBD.The lessee is an experienced hotelier,and the triple net lease provides for annual fixed rent rises over the 15-year term which commenced in August 2021,ensuring a stable and predictable revenue stream through to 2036 and beyond.Rental income in FY24 includes the benefit of the annual rent in

33、crease.ASPLEY SHOPPING CENTRESAs at 30 June 2024,four vacancies exist at the Groups Aspley Arcade Shopping Village and Aspley Shopping Centre representing 369m2 or 7.9%of the gross lettable area.Efforts are being made to secure appropriate tenants for these tenancies in a challenging leasing environ

34、ment.The weighted average lease expiry(or WALE)at the centres is now 4.1 years(excluding the Groups tavern operations).Notwithstanding vacancies,income from the combined centres has improved from the prior year due to annual rental rises.Strong cash flowsNet operating cash inflows remained strong at

35、$4.220 million,with the reduction from the previous corresponding period attributable solely to an increase in finance costs and tax payments.Finance costs paid increased by 27%due to higher interest rates,notwithstanding the Groups reduced level of borrowings.Tax payments included a$0.521 million f

36、inal FY23 income tax payment and instalments were higher following an increase in the Groups tax instalment rate.Receipts from customers less payments to suppliers and employees were slightly above the prior year at$7.233 million.Cash outflows from investing activities of$0.565 million predominantly

37、 reflected the replacement of the Groups hotel point-of-sale system and installation of solar equipment at the Ashmore Tavern.Financing cash outflows of$3.830 million mainly comprised the repayment of borrowings of$3.345 million and lease liabilities of$0.213 million.Cash dividend payments of only$0

38、.220 million reflected the continued strong uptake by shareholders of the Groups dividend reinvestment plan.Annual Report 2024|vChaIRMaNs MEssaGE|Solid financial position The Groups net asset backing per share of$1.39 as at 30 June 2024 represents a slight increase on the prior year.The strong opera

39、ting performance of the Groups hotel operations and investment properties,as well as the net fair value adjustment and revaluation gains of$1.333 million after tax,was offset by the payment to shareholders of 7.0 cents per share in fully franked dividends during FY24.Net tangible assets per share wa

40、s$1.34 as at 30 June 2024.Net debt of$24.775 million as at 30 June 2024 represented a reduction of 11%from$27.958 million in the prior year,resulting in a reduction in the gearing ratio(net debt:total equity)from 45%to 37%during this period.While finance costs have increased as noted previously due

41、to interest rate rises,debt was comfortably serviced by interest cover(operating EBIT:interest)of 3.4 times in FY24.The Group renegotiated commercial borrowing facilities on favourable terms and conditions during FY24 to extend expiry dates.Undrawn commercial loan facilities of$8.746 million were av

42、ailable at balance date,providing both working capital and the ability to respond to further growth opportunities that may be identified.DividendsThe Board has declared an increased FY24 final dividend of 3.75 cents per share(FY23:3.50 cents per share),fully franked at the Groups corporate tax rate

43、of 25%.The final dividend is payable on Wednesday,11 September 2024,with a Record Date of Friday,30 August 2024.This brings total fully franked dividends in respect of FY24 to 7.25 cents per share(FY23:7.0 cents per share),with shareholders having received a fully franked(at 25%)interim dividend of

44、3.5 cents per share on 14 March 2024.The Dividend Reinvestment Plan will apply to the final dividend to preserve capital and maximise the Groups capacity to pursue further growth opportunities.OutlookIn summary,the Groups hotel operations and investment properties have performed well during the year

45、 and the company is in a very sound financial position with reduced debt and a strong equity ratio.With continuing high inflation and interest,the Board is mindful market conditions will remain challenging.However,this may also create opportunities and the Board remains optimistic about the Groups f

46、uture prospects given the quality of its assets,the strength of its cash flows and the determination and capability of its experienced management team.On behalf of the Board,I would like to thank our CEO,Suzanne Jacobi,who has capably overseen the Groups business operations,including the substantial

47、 upgrade to the Groups assets in recent years.Thank you also to the Ashmore and Aspley staff who are the force behind our success.Leni Stanley resigned as our Company Secretary as at 30 June 2024,having capably supported the Board and management for almost 20 years.We express our sincere gratitude t

48、o Leni for her service,and we wish her all the best.We welcome Duncan Cornish as our new Company Secretary.Finally,thanks to our auditors,Pitcher Partners,our banking partners at National Australia Bank,my fellow directors and,as always,our very supportive shareholders.JM GanimC H AIRMANContentsCorp

49、orate Directory Chairmans Message iDirectors Report 1Auditors Independence Declaration 12Consolidated Statement of Comprehensive Income 13Consolidated Statement of Financial Position 14Consolidated Statement of Changes in Equity 15Consolidated Statement of Cash Flows 16Notes to the Financial Stateme

50、nts 17Directors Declaration 46Independent Auditors Report 47Shareholder Information 51|Eumundi Group Limited&Controlled EntitiesviAnnual Report 2024|1Directors Report30 June 2024Your directors present their report on the consolidated entity(referred to hereafter as the“Group”)consisting of Eumundi G

51、roup Limited(referred to hereafter as the“company”or“parent entity”)and the entities it controlled for the year ended 30 June 2024(“FY24”).The prior comparative period is the year ended 30 June 2023(“FY23”).DIRECTORSThe following persons were directors of Eumundi Group Limited during the year and up

52、 to the date of this report:J M GanimNon-executive ChairmanG De LucaNon-executive DirectorM R BoyteIndependent Non-executive DirectorPRINCIPAL ACTIVITIESDuring the year the principal activities of the Group remained unchanged and consisted of the operation of the Ashmore Tavern and Aspley Central Ta

53、vern and the holding of investment properties,predominantly in Queensland.DIVIDENDS20242023$000$000Dividends paid during the financial year were as follows:Final dividend of 3.5 cents per share fully franked at the corporate tax rate of 25%paid on 13 September 2023(FY23:3.5 cents per share fully fra

54、nked at 25%)1,5911,501Interim dividend of 3.5 cents per share fully franked at the corporate tax rate of 25%paid on 14 March 2024(FY23:3.5 cents per share fully franked at 25%)1,6391,549Total dividends paid during the year3,2303,050Dividends declared since the end of the financial year:On 26 August

55、2024,the board declared a final dividend of 3.75 cents per share fully franked at the corporate tax rate of 25%which will be paid on 11 September 2024(FY23:3.5 cents per share fully franked at the corporate tax rate of 25%)1,8071,591REVIEW OF OPERATIONS FINANCIAL RESULTSThe Group recorded a profit a

56、fter tax of$3,621,000 for FY24 representing basic and diluted earnings per share of 7.71 cents,compared with a profit after tax of$1,477,000 in the prior comparative year,representing basic and diluted earnings per share of 3.33 cents.The current profit includes a fair value gain on revaluation of i

57、nvestment properties of$630,000 net of tax.Profit in the prior year included a fair value loss on revaluation of investment properties of$1,305,000 net of tax.The FY24 underlying profit after tax before fair value adjustments and revaluations and finance costs was$4.262 million,achieved on revenue f

58、rom operations of$30.432 million.This compared favourably with the prior year result of$3.863 million achieved on revenue of$29.773 million.Net profit after tax excluding non-cash fair value adjustments and revaluations and finance costs is not a measure that is calculated in accordance with Interna

59、tional Financial Reporting Standards(“IFRS”).However,in the opinion of Directors,this is the most appropriate measure of the Groups performance.Total comprehensive income of$4,324,000 included a$703,000 gain net of tax on the fair value revaluation of the Ashmore Tavern and Aspley Shopping Centre la

60、nd and buildings(FY23:$5,217,000 included a$3,740,000 gain net of tax).Revenue from hotel operations of$26,464,000 in FY24 was up 2.8%(FY23:$25,754,000),with strong gaming revenues across the Group.Food and beverage at the Ashmore Tavern in 1HFY24 benefitted from the kitchen and bathroom replacement

61、 completed in 1HYFY23,however revenues softened during 2HFY2024.Aspley Central Tavern food and beverage and retail liquor sales across the Group were below the prior comparative year with a lower average spend driven by continued cost of living pressures.Costs were well contained with total expenses

62、 rising less than inflation despite pressure on employment and subcontractor costs as competition for quality staff remains high.|Eumundi Group Limited&Controlled Entities2The contribution of the hotel operations was$3,152,000 up 5.7%from$2,982,000 in the prior year,predominantly reflecting an uplif

63、t in gaming revenues and containment of costs.Investment property contribution increased from$3,228,000 in FY23 to$3,530,000 in the current year due to CPI rises on several major tenancies.The prior year result included costs for independent valuations of the properties.In FY24,the Group has:replace

64、d hotel operational point-of-sale software and hardware at a total cost of$259,000,improving customer service capability,reducing repair costs and achieving efficiencies;installed solar panels at the Ashmore Tavern and Aspley Central Tavern at a total cost of$203,000,reducing ongoing electricity sup

65、ply from the grid and achieving future savings;invested in gaming room upgrades at Ashmore Tavern and Aspley Central Tavern at a total cost of$176,000;entered into a five-year agreement with a new tenant to lease retail premises at Aspley Shopping Centre and negotiated the renewal of two tenant leas

66、es at Aspley Arcade;progressed replacement of the Groups financial system to improve management and statutory reporting delivery;and negotiated an extension of commercial debt facilities to October 2025 on favourable terms and conditions.CASH FLOWSCash inflows from operating activities for FY24 were

67、$4,220,000(FY23:$4,890,000)with higher tax instalments and interest rate escalation increasing finance costs despite lower debt levels.Cash outflows from investing activities of$565,000 related predominantly to the hotel point-of-sale system replacement,Ashmore Tavern car park repairs and payment of

68、 the Ashmore Tavern solar panel installation.Financing cash outflows of$3,830,000 comprised the repayment of borrowings of$3,345,000 and lease liabilities of$213,000.Cash dividend payments of only$220,000 reflected the continued strong uptake by shareholders of the Eumundi Group Limited Dividend Rei

69、nvestment Plan(“DRP”)(FY23:$2,373,000 outflows).FINANCIAL POSITIONThe Group maintained its strong financial position during the year.Total assets of$106,715,000 as at 30 June 2024 represented a slight increase compared with$106,180,000 reported at the same time last year.Total liabilities decreased

70、8.2%to$39,911,000 from$43,469,000 due mainly to the repayment of commercial borrowings which reduced by$3,358,000.During the year the Group renegotiated its commercial borrowing facilities on favourable terms,with the expiry date of facilities extended to 31 October 2025.The Group retained access to

71、 available undrawn commercial loan facilities of$8,746,000 as at 30 June 2024.Net debt of$24,775,000 as at 30 June 2024 represented a reduction of 11.4%from$27,958,000 at 30 June 2023,resulting in a reduction in the gearing ratio from 44.6%to 37.1%during this period.Net assets increased by$4,093,000

72、 to$66,804,000 at balance date representing$1.39 per share.The strong operating performance of the Groups hotel operations and investment properties,as well as the net fair value adjustment and revaluation gains of$1,333,000 after tax,was offset by the payment to shareholders of 7.0 cents per share

73、in fully franked dividends during FY24 and the high level of dividend reinvestment under the DRP which resulted in the issue of 2,719,262 shares during FY24 in respect of the FY23 final dividend and the FY24 interim dividend.As at 30 June 2024,a total of 48,185,154 ordinary shares were on issue in t

74、he Company.MI L LI ON S$80$70$60$50$40$30$20$10$-100%90%80%70%60%50%40%30%20%10%0%F Y 1 4FY 1 5FY 1 6FY 1 7FY18FY19FY20FY21FY22FY23FY24 Net Debt(LHS)Net Assets(LHS)Net Debt/Net Assets(RHS)Annual Report 2024|3DIRECTORs REPORT 30 June 2024|BUSINESS RISKSBusiness risks which the Group considers may mat

75、erially impact its ability to achieve its strategic objectives in future periods include the following:Workforce riskThe Groups people are key to its success.The Group competes in a highly competitive labour market in a time of record low unemployment.The Groups ability to attract and retain talent

76、with the necessary skills and abilities to operate effectively in a challenging market is critical to the Groups operations,and particularly important in respect of leadership roles.The competitive nature of the labour market may result in the loss of key employees or a decrease in workforce availab

77、ility.This may impair operational capability,lead to a loss of operational knowledge,impact customer experience and result in increased costs for short-term cover of key roles,as well as additional time and cost to identify,recruit and train suitable new staff to achieve proficiency.If the Group is

78、unable to attract and retain appropriate employees,this may adversely impact the Groups operations and financial performance.Employee expenses are the most significant controllable cost for the Group and staff levels are managed tightly to achieve the business objectives at the lowest cost without a

79、 reduction in customer service levels.This may lead to a loss of staff who require more hours than the Group can reliably offer and difficulty in securing replacement staff quickly when absences occur such as in the event of illness or resignation.Hotel operations rely predominantly on casual employ

80、ees to cover their extended trading hours including early morning closes,weekend and public holiday work.Rostered hours for an individual may vary widely because of seasonal trade levels.Skills required within the hotel industry are equally coveted in other sectors,including those which can offer a

81、more friendly work-life balance or consistent hours.Major competitors within the industry have numerous sites across the country and can offer potential employees a more attractive career path,relocation and training opportunities.Additionally,some of these competitors offer benefits such as grocery

82、 discounts which are particularly attractive and offer potential employees significant value for comparatively little cost.For skilled roles such as qualified chefs,there is an ongoing deficit of suitable local candidates across all industries and it may become necessary to recruit from overseas,whi

83、ch involves additional costs as well as delays attributable to the governments visa application process.The Group seeks to mitigate workforce risk through its strategy of connecting with the local community,building relationships and becoming an employer of choice.This is achieved through empowering

84、 and engaging staff,providing meaningful and rewarding employment opportunities and maintaining a positive organisational culture of respect and integrity.Identifying capable individuals at all levels of the business and developing their competencies to achieve succession planning is core to achievi

85、ng this strategy.Customer preference risk and competition riskCustomer preferences continually evolve because of varying economic conditions,healthy living trends,an ever-increasing range of goods and services available both online and through bricks and mortar premises and other factors.Each of the

86、se may impact the spending decisions of our current and future customers.Competition risk includes competitive activity such as price wars and discounting,as well as new entrants to the market,both online and physical,competing with the Group for customers and their discretionary spend.Competition r

87、isk is not limited by locality as liquor,food and gaming are all available to purchase on-line and consume at the customers convenience.The Group seeks to mitigate customer preference and competition risk in its hotel operations through its strategy of providing service excellence and a consistent q

88、uality offering at a reasonable price.Adoption of new point-of-sale technologies,including in-store retail systems,order-to-table and online stores combined with home delivery has been implemented to improve the Groups customers experience no matter how they choose to do business with us.The success

89、 of this strategy is tied to recruitment,training and retention of high quality,customer-focussed staff.Investment property operations are exposed to customer preference risk and competition risk as these may impact the commercial viability of the Groups tenants.On-line sales channels may also resul

90、t in increased competition for tenants.With an increase in home delivery for take-away foods,locating these businesses in retail shopping centres may become less important than achieving lower rental and operating from a commercial kitchen.Retail leasing outcomes may be impacted by heightened compet

91、ition for retail tenants by new and existing retail centres,which may increase the difficulty of attracting new tenants and may also lead to rental reductions,retention payments or loss of tenants when a lease is due for renegotiation.The Group seeks to mitigate this risk through engagement with pro

92、fessional property advisers and managers to maintain awareness of leasing trends to address proactively current and emerging risks,and through financial and business capability assessments of prospective tenants which underpin the Groups leasing decisions.Price riskPrice risk relates to the Groups a

93、bility to secure reliable access to quality goods and services at a competitive price to ensure continued profitability of hotel operations while meeting market expectations and strong competition.The Group seeks to mitigate this risk through purchasing negotiations,including membership of a wholesa

94、le buying group for major liquor purchases and the implementation of strategic marketing initiatives.|Eumundi Group Limited&Controlled Entities4Technology and cyber riskThe Group relies upon technology to conduct its business operations and a severe disruption to its systems may significantly impact

95、 the Groups operations and financial results.The Group seeks to mitigate this risk through the engagement of IT professionals to manage hardware,networks and data management and recovery,selection criteria for business software solutions,hardware and software service agreements for key business syst

96、ems and application of internal controls.Regulatory risksRegulatory risks include compliance with current legislation as well as the impact on the future performance or profitability of the Group of future legislative changes that might affect the types of goods or services provided and how they are

97、 delivered to customers.Future regulatory risks also include changes to taxation regimes at State or Federal Government levels as well as potential cost increases related to new compliance obligations or associated disclosures.In addition to the general regulatory requirements faced by most business

98、es,the Group holds liquor and gaming licences which are critical to its hotel operations.A regulatory breach could result in breach notices,fines,investigations or potentially loss of licence,which may have a materially negative impact on the operational performance and financial results of the Grou

99、p.The Group seeks to mitigate these risks through its internal procedures and controls to monitor compliance with relevant legislation and appropriate staff training.Additionally,the Group is actively involved with industry groups and engages with professional advisers to address proactively current

100、 and emerging risks.OtherThe Group seeks to mitigate all risks through prudent operational and financial management.SIGNIFICANT CHANGES IN THE STATE OF AFFAIRSThere were no significant changes in the state of affairs of the Group during the financial other than as disclosed elsewhere in this report.

101、MATTERS SUBSEQUENT TO THE END OF THE FINANCIAL YEARNo matter or circumstance has arisen since 30 June 2024 that has significantly affected,or may significantly affect the Groups operations,the results of those operations,or the Groups state of affairs in future financial years.LIKELY DEVELOPMENTS AN

102、D EXPECTED RESULTS OF OPERATIONSWith sharply increased inflation and interest rates in the past 12 months,the Board is alive to potential market pressures in the coming year.However,this may also create opportunities and the Board remains optimistic about the Groups future prospects given the qualit

103、y of its assets,the strength of its cash flows and the determination and capability of its experienced management team.However,trading conditions are expected to remain challenging through FY25 due to the ongoing cost-of-living crisis and political uncertainty at both State and Federal Government le

104、vels.The Group intends to pursue its strategy for its hotel operations of connecting its venues with and building relations in the local community,becoming an employer of choice and providing patrons with excellent service and a consistent,quality offering at a reasonable price to ensure growth thro

105、ugh customer loyalty.Hotel operations are expected to remain stable through FY25 with continued growth in gaming offset by heightened competition for retail liquor sales.The strategy for the Groups investment properties is to achieve full occupancy of remaining vacancies,securing long-term,quality t

106、enants and deliver a solid recurring income base.As at 30 June 2024 four vacancies exist at the Aspley Shopping Central and Aspley Arcade Shopping Villages.Enquiry continues from prospective tenants however,where financial institutions are tightening lending criteria,prospective tenants are looking

107、to landlords to provide their business capital.All tenancy offers received are considered having regard for the tenants business experience and financial capacity,particularly where substantial cash incentives are sought.In these circumstances leasing will remain challenging in the year ahead.With t

108、he capital works program effectively completed,the Group will continue to prioritise debt reduction in the year ahead.The Group will seek to further enhance operational efficiency through technology and process engineering to achieve profit growth.The Group has robust operating cash flows and a stro

109、ng capital base to withstand a deterioration in market conditions,should that occur,while having the ability to respond to investment opportunities that may exist in the current market where such investments will improve the Groups asset portfolio.ENVIRONMENTAL REGULATIONThe Groups operations are no

110、t subject to any particular or significant environmental regulation under Australian Commonwealth or State law.Annual Report 2024|5DIRECTORs REPORT 30 June 2024|INFORMATION ON DIRECTORS AND KEY MANAGEMENT PERSONNELNameJoseph Michael GanimTitleNon-executive ChairmanAge78QualificationsLLBExperience an

111、d expertiseOver 50 years experience conducting complex corporate and commercial litigious matters.Extensive public and private board experience.Non-executive Director since 1989 and Non-executive Chairman since 2004.Other current directorshipsn/aFormer directorships(last 3 yrs)n/aSpecial responsibil

112、itiesMember of the Audit and Risk Management committeeInterests in shares15,268,553NameGilbert De LucaTitleNon-executive DirectorAge78Experience and expertiseA wide range of business experience in the property and construction fields overseeing the acquisition of investment and development propertie

113、s.Non-executive Director since 1989.Other current directorshipsn/aFormer directorships(last 3 yrs)n/aSpecial responsibilitiesMember of the Audit and Risk Management CommitteeInterests in shares8,308,027NameMurray Raymond BoyteTitleIndependent Non-executive DirectorAge76QualificationsBCA,MAICD,CMInst

114、D,CAExperience and expertiseOver 35 years merchant banking and finance experience including corporate restructures,mergers and acquisitions.Extensive directorship and executive experience in transport,horticulture,financial services,investment,health services and property industries.Independent Non-

115、executive Director since 2021.Other current directorshipsChairman of NTAW Holdings since 2017.Executive Chairman of Eureka Group Holdings Limited since 2017.Non-executive Director of Hillgrove Resources since 2019.Former directorships(last 3 yrs)n/aSpecial responsibilitiesChairman of the Audit and R

116、isk Management CommitteeInterests in sharesn/a|Eumundi Group Limited&Controlled Entities6INFORMATION ON DIRECTORS AND KEY MANAGEMENT PERSONNEL(CONT)NameSuzanne Marie JacobiTitleChief Executive Officer and Chief Financial OfficerAge57QualificationsBCom,CPA,Grad Dip Corp GovExperience and expertiseOve

117、r 30 years experience in senior finance roles across various industries.Interests in shares52,619Appointment date16 January 2006“Other current directorships”quoted above are current directorships for listed entities only and excludes directorships of all other types of entities,unless otherwise stat

118、ed.“Former directorships(last three years)”quoted above are directorships held in the last three years for listed entities only and excludes directorships of all other types of entities,unless otherwise stated.COMPANY SECRETARIESNameDuncan CornishQualificationsCA BComExperience and expertiseChartere

119、d Accountant with significant experience as a public company CFO and Company Secretary,focused on finance,administration and governance roles.Appointment date17 June 2024Name:Leni Pia StanleyQualificationsCA BComExperience and expertisePrincipal of a Chartered Accountancy firm and has held similar p

120、ositions with other companies.Appointment date25 February 2005 Retirement date30 June 2024MEETINGS OF DIRECTORSThe number of meetings of the companys Board of Directors(the Board)held during FY24,and the number of meetings attended by each Director were:FY24Directors meetingsAudit and Risk Managemen

121、t committee meetingsAudit and Risk Management committee meetingsMeetings held during the period whilst in officeMeetings attendedMeetings held during the period whilst in officeMeetings attendedJ M Ganim9922G De Luca9922M R Boyte9922There were no other formally constituted committees of the board du

122、ring the financial year.Annual Report 2024|7DIRECTORs REPORT 30 June 2024|REMUNERATION REPORT(AUDITED)The remuneration report details the key management personnel(“KMP”)remuneration arrangements for the Group,in accordance with the requirements of the Corporations Act 2001 and its Regulations.PRINCI

123、PLES USED TO DETERMINE THE NATURE AND AMOUNT OF REMUNERATIONNon-executive Director remunerationFees and payments to non-executive Directors reflect the financial status of the consolidated entity,and the demands that are made on,and the responsibilities of the Directors.Non-executive Directors fees

124、are reviewed annually by the board and are set within the limits approved by shareholders.No retirement benefits are payable to non-executive Directors.The Board seeks to set aggregate remuneration at a level which provides the Group with the ability to attract and retain Directors of the highest ca

125、libre,whilst incurring a cost which is acceptable to shareholders.Non-executive Director remuneration is determined within the aggregate Directors fee pool,which is periodically recommended for approval by shareholders.The latest determination was at an Annual General Meeting(“AGM”)held on 24 Novemb

126、er 2005 when shareholders approved an aggregate remuneration of$250,000 per annum.The actual amount paid during FY24 was$162,192(FY23:$161,460).Executive remunerationThe Groups remuneration policy is to ensure that remuneration packages properly reflect the persons duties,responsibilities and perfor

127、mance and that the remuneration is competitive in attracting,retaining and motivating people of the highest quality.The current executive remuneration structure has two components:base pay and benefits such as superannuation.At the discretion of the Directors,executives may receive a cash and/or sha

128、re bonus as part of their remuneration.Upon retirement the executives are paid employee benefit entitlements accrued to date of retirement.The remuneration policy for executives and other senior employees in terms of cost,market competitiveness and the linking of remuneration to the financial and op

129、erational performance of the Group is periodically reviewed.Relationship to performanceThere are no direct links between KMP remuneration and group performance.The performance of the Group over the past five years is as follows:FY24FY23FY22FY21FY20Profit(loss)after tax attributable to shareholders($

130、000)3,6211,4777,0224,263(1,022)Total comprehensive income(loss)for the year($000)4,3245,21713,1038,576(4,717)Dividends paid($000)3,2303,0501,453-1,882Dividends paid per share7.0c7.0c3.5c-4.7cNet tangible asset backing per share$1.34$1.33$1.29$1.02$0.82Share price at end of year$1.18$1.15$1.09$1.00$0

131、.79Ashmore Tavern|Eumundi Group Limited&Controlled Entities8DETAILS OF REMUNERATIONAmounts of remunerationDetails of the remuneration of KMP of the Group are set out in the following tables.FY24Short-term benefitsPost-employment benefitsLong-term benefitsShare-based paymentsTotal Cash salary and fee

132、s2Cash bonusNon-monetarySuper-annuationLong service leaveEquity settled$Non-Executive Directors:J M Ganim54,795-6,027-60,822M R Boyte45,662-5,023-50,685G De Luca45,662-5,023-50,685Chief Executive Officer/Chief Financial OfficerS M Jacobi 1,2232,369-19,09328,3715,146-284,979378,488-19,09344,4445,146-

133、447,171FY23Short-term benefitsPost-employment benefitsLong-term benefitsShare-based paymentsTotal Cash salary and fees2Cash bonusNon-monetarySuper-annuationLong service leaveEquity settled$Non-Executive Directors:J M Ganim54,795-5,753-60,548M R Boyte45,662-4,794-50,456G De Luca45,662-4,794-50,456Chi

134、ef Executive Officer/Chief Financial OfficerS M Jacobi 1,2264,442-19,09427,08119,173-329,790410,561-19,09442,42219,173-491,2501 Ms S M Jacobis salary is$257,918 plus super inclusive of training and reimbursable expenses.Ms Jacobi receives a home office allow-ance of$1,250 per month,totalling$15,000

135、during FY24(FY23:$15,000).2 Amounts disclosed for Ms S M Jacobi reflected net utilisation of accrued leave entitlements($16,310)during FY24(FY23:$29,791 net increase in accrued leave entitlements).The Board has assessed the executive group and the disclosures in the above table relate strictly to th

136、ose individuals with the authority and responsibility for planning,directing,and controlling the activities of the entity directly or indirectly.There were no other KMP in the executive group in the current or prior year.The resolution to approve the remuneration report at the 2023 AGM received a 98

137、%“yes”vote.The Group did not receive any specific feedback at the AGM or throughout the year on its remuneration practices.Annual Report 2024|9DIRECTORs REPORT 30 June 2024|SERVICE AGREEMENTSRemuneration and other terms of employment for KMP are formalised in service agreements.Details of these agre

138、ements are as follows:NameS M JacobiTitleChief Executive Officer and Chief Financial OfficerAgreement commenced1 July 2022Term of agreementOngoingDetailsSalary package of$285,000 inclusive of superannuation,training and reimbursable expenses effective from 1 July 2022.Statutory superannuation increa

139、ses will result in an increase to the total remuneration.A six month notice period applies.KMP have no entitlement to termination payments in the event of removal for misconduct.SHARE-BASED COMPENSATIONIssue of sharesThere were no shares issued to Directors and other KMP as part of compensation duri

140、ng FY24.ADDITIONAL DISCLOSURES RELATING TO KMPShareholdingThe number of shares in the company held during the financial year by each Director and KMP of the Group,including their personally related parties,is set out below:FY24Balance at the start of the yearReceived as part of remunerationShares is

141、sued pursuant to DRPShare market tradesBalance at the end of the yearOrdinary sharesJ M Ganim14,346,661-921,892-15,268,553G De Luca7,807,470-500,557-8,308,027S M Jacobi49,444-3,175-52,61922,203,575-1,425,624-23,629,199Transactions relating to dividends and subscriptions for new ordinary shares were

142、on the same terms and conditions that applied to other shareholders.There were no other related party transactions in the current or prior year.Ordinary shares held directly,indirectly or beneficially by KMP,including their personally related entities are shown below:20242023$000$000Balance at 1 Jul

143、y22,203,575 20,838,714 Shares issued pursuant to DRP1,425,6241,349,364 Share market trades-15,497 Balance at 1 July23,629,199 22,203,575 This concludes the remuneration report,which has been audited.|Eumundi Group Limited&Controlled Entities10INDEMNITY AND INSURANCE OF OFFICERSThe company has indemn

144、ified the Directors and executives of the company for costs incurred,in their capacity as a Director or executive,for which they may be held personally liable,except where there is a lack of good faith.During the financial year,the company paid a premium in respect of a contract to insure the Direct

145、ors and executives of the company against a liability to the extent permitted by the Corporations Act 2001.The contract of insurance prohibits disclosure of the nature of the liability and the amount of the premium.INDEMNITY AND INSURANCE OF AUDITORThe company has not,during or since the end of the

146、financial year,indemnified or agreed to indemnify the auditor of the company or any related entity against a liability incurred by the auditor.During the financial year,the company has not paid a premium in respect of a contract to insure the auditor of the company or any related entity.PROCEEDINGS

147、ON BEHALF OF THE COMPANYNo 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 intervene in any proceedings to which the company is a party for the purpose of taking responsibility on behalf of the company for a

148、ll or part of those proceedings.NON-AUDIT SERVICESDetails of the amounts paid or payable to the auditor for non-audit services provided during the financial year by the auditor are outlined in note 22 to the financial statements.The Directors are satisfied that the provision of non-audit services du

149、ring the financial year,by the auditor(or by another person or firm on the auditors behalf),is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001.The Directors are of the opinion that the services as disclosed in note 22 to the financial statements

150、 do not compromise the external auditors independence requirements of the Corporations Act 2001 for the following reasons:all non-audit services have been reviewed and approved to ensure that they do not impact the integrity and objectivity of the auditor;and none of the services undermine the gener

151、al principles relating to auditor independence as set out in APES 110 Code of Ethics for Professional Accountants(including Independence Standards)issued by the Accounting Professional and Ethical Standards Board,including reviewing or auditing the auditors own work,acting in a management or decisio

152、n-making capacity for the company,acting as advocate for the company or jointly sharing economic risks and rewards.OFFICERS OF THE COMPANY WHO ARE FORMER PARTNERS OF PITCHER PARTNERSThere are no officers of the company who are former partners of Pitcher Partners.ROUNDING OF AMOUNTSThe company is of

153、a kind referred to in Corporations Instrument 2016/191,issued by the Australian Securities and Investments Commission,relating to rounding-off.Amounts in this report have been rounded off in accordance with that Corporations Instrument to the nearest thousand dollars,or in certain cases,the nearest

154、dollar.Annual Report 2024|11DIRECTORs REPORT 30 June 2024|AUDITORS INDEPENDENCE DECLARATIONA copy of the auditors independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this Directors report.AUDITORPitcher Partners continues in office as aud

155、itor in accordance with section 327 of the Corporations Act 2001.This report is made in accordance with a resolution of Directors,pursuant to section 298(2)(a)of the Corporations Act 2001.On behalf of the DirectorsJ.M.Ganim C H A I R M A N26 August 2024 BrisbaneAspley TavernAuditors Independence Dec

156、laration|Eumundi Group Limited&Controlled Entities12|aUDITORs INDEPENDENCE DECLaRaTION 30 June 2024Annual Report 2024|13Consolidated Statement of Comprehensive IncomeFor the year ended 30 June 2024Note20242023$000$000Revenue430,432 29,733 Other incomeNet fair value gain on revaluation of investment

157、properties11840-ExpensesCost of goods sold(8,141)(8,310)Selling and promotion(1,017)(1,034)Employee benefits expense(4,636)(4,645)Repair and maintenance(151)(139)Depreciation and amortisation5(1,666)(1,858)Insurance(174)(205)Rates and taxes(127)(127)Electricity(207)(205)Listing and governance(362)(3

158、50)Gaming tax(6,397)(5,936)Occupancy(798)(718)Investment property expense(594)(563)Other expenses(485)(499)Finance costs5(1,694)(1,441)Net fair value loss on revaluation of investment properties11-(1,740)Total expenses(26,449)(27,770)Profit before income tax expense4,823 1,963 Income tax expense6(1,

159、202)(486)Profit after income tax expense for the year attributable to the shareholders of Eumundi Group Limited3,621 1,477 Other comprehensive incomeItems that may be reclassified subsequently to profit or lossFair value revaluation of land and buildings10937 4,987 Income tax on other items of compr

160、ehensive income(234)(1,247)Other comprehensive income for the year,net of tax703 3,740 Total comprehensive income for the year attributable to the shareholders of Eumundi Group Limited4,324 5,217 CentsCentsBasic earnings per share307.713.33Diluted earnings per share307.713.33The above Consolidated S

161、tatement of Comprehensive Income should be read in conjunction with the accompanying notes.|Eumundi Group Limited&Controlled Entities14Consolidated Statement of Financial PositionAs at 30 June 2024Note20242023$000$000AssetsCurrent assetsCash and cash equivalents71,4311,606Trade and other receivables

162、8186223Inventories1,3871,332Other assets9427349Total current assets3,4313,510 Non-current assetsTrade and other receivables8-2Property,plant and equipment1053,76553,900Investment properties1147,10046,349Intangibles122,4192,419Total non-current assets103,284102,670Total assets106,715106,180Liabilitie

163、sCurrent liabilitiesTrade and other payables133,502 3,578 Lease liabilities14144 192 Income tax6364 521 Provisions15590 586 Total current liabilities4,600 4,877Non-current liabilitiesBorrowings1626,206 29,564 Lease liabilities14263 407Deferred tax68,7958,574 Provisions154747Total non-current liabili

164、ties35,31138,592Total liabilities39,91143,469Net assets66,80462,711EquityIssued capital1733,08030,081Reserves21,12820,425Retained profits12,59612,205Total equity66,80462,711 The above Consolidated Statement of Financial Position should be read in conjunction with the accompanying notes.Annual Report

165、 2024|15Consolidated Statement of Changes in EquityFor the year ended 30 June 2024FY23Issued capitalReservesRetained profitsTotal equity$000$000$000$000Balance at 1 July 202227,27616,68513,77857,739Profit after income tax expense for the year-1,4771,477Other comprehensive income for the year,net of

166、tax-3,740-3,740Total comprehensive income for the year-3,7401,4775,217Transactions with shareholders in their capacity as shareholders:Contributions of equity,net of transaction costs (note 17)2,805-2,805Dividends paid(note 18)-(3,050)(3,050)Balance at 30 June 202330,08120,42512,20562,711FY24Issued

167、capitalReservesRetained profitsTotal equity$000$000$000$000Balance at 1 July 202330,08120,42512,20562,711Profit after income tax expense for the year-3,6213,621Other comprehensive income for the year,net of tax-703-703Total comprehensive income for the year-7033,6214,324Transactions with shareholder

168、s in their capacity as shareholders:Contributions of equity,net of transaction costs (note 17)2,999-2,999Dividends paid(note 18)-(3,230)(3,230)Balance at 30 June 202433,08021,12812,59666,804The above Consolidated Statement of Changes In Equity should be read in conjunction with the accompanying note

169、s.|Eumundi Group Limited&Controlled Entities16Consolidated Statement of Cash FlowsFor the year ended 30 June 2024 Note20242023$000$000Cash flows from operating activitiesReceipts from customers(inclusive of GST)34,460 32,402 Payments to suppliers and employees(inclusive of GST)(27,227)(25,199)7,233

170、7,203 Interest received1-Interest and other finance costs paid(1,646)(1,296)Income taxes paid(1,368)(1,017)Net cash from operating activities294,220 4,890 Cash flows from investing activitiesPayments for investment property11(15)(55)Payments for property,plant and equipment10(580)(2,714)Proceeds fro

171、m disposal of property,plant and equipment30 27 Net cash used in investing activities(565)(2,742)Cash flows from financing activitiesRepayment of borrowings(3,345)(1,860)Loan establishment costs(37)(30)Share issue transaction costs(15)(13)Dividends paid18(220)(235)Repayment of lease liabilities(213)

172、(235)Net cash used in financing activities(3,830)(2,373)Net decrease in cash and cash equivalents(175)(225)Cash and cash equivalents at the beginning of the financial year1,606 1,831 Cash and cash equivalents at the end of the financial year71,431 1,606 The above Consolidated Statement of Cash Flows

173、 should be read in conjunction with the accompanying notes.Annual Report 2024|17Notes to the Financial Statements30 June 20241.MATERIAL ACCOUNTING POLICY INFORMATIONThe accounting policies that are material to the Group are set out either in the respective notes or below.The accounting policies adop

174、ted are consistent with those of the previous financial year,unless otherwise stated.New or amended Accounting Standards and Interpretations adoptedThe Group has adopted all of the new or amended Accounting Standards and Interpretations issued by the Australian Accounting Standards Board(AASB)that a

175、re mandatory for the current reporting period.A number of accounting standards and interpretations have been issued at the reporting date but are not yet effective.None of these are expected to result in any material change to the Groups financial statements in the period of initial application.Othe

176、r than the early adoption of AASB 2021-2 Amendments to Australian Accounting Standards-Disclosure of Accounting Policies and Definition of Accounting Estimates,the Group intends to apply the accounting standards and interpretations in the period commencing on or after their effective dates.Going con

177、cernThe financial report has been prepared on a going concern basis which contemplates that the Group will continue to meet its commitments and can therefore continue normal business activities and the realisation of assets and settlement of liabilities in the ordinary course of business.At 30 June

178、2024,the Group has$1,431,000 in cash and cash equivalents(FY23:$1,606,000),net assets of$66,804,000(FY23:$62,711,000)and available undrawn commercial loan facilities of$8,746,000(FY23:$5,401,000).Profit before tax and fair value adjustments was$3,983,000(FY23:$3,703,000)and operating cash inflows we

179、re$4,220,000(FY23 inflows of$4,890,000).The Group uses non-current commercial borrowing facilities to manage fluctuations in cash flows.The net current liability position of$1,169,000(FY23:$1,367,000 net current liability)is due to the timing of end of year payments and receipts.Measures are in plac

180、e to manage the Groups ongoing operations which include,amongst others,continued monitoring of operating costs,further draw down of available facilities(note 16),and availability of additional borrowing facilities negotiated with the Groups financier on favourable terms and conditions.Basis of prepa

181、rationThese general purpose financial statements have been prepared in accordance with Australian Accounting Standards and Interpretations issued by the Australian Accounting Standards Board(AASB)and the Corporations Act 2001,as appropriate for for-profit oriented entities.These financial statements

182、 also comply with International Financial Reporting Standards as issued by the International Accounting Standards Board(IASB).Historical cost conventionThe financial statements have been prepared under the historical cost convention,except for,where applicable,investment properties and certain class

183、es of property,plant and equipment.Critical accounting estimatesThe preparation of the 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.The areas involving a

184、higher degree of judgement or complexity,or areas where assumptions and estimates are significant to the financial statements,are disclosed in note 2.Parent entity informationIn accordance with the Corporations Act 2001,these financial statements present the results of the Group only.Supplementary i

185、nformation about the parent entity is disclosed in note 26.Rounding of amountsThe company is of a kind referred to in Corporations Instrument 2016/191,issued by the Australian Securities and Investments Commission,relating to rounding-off.Amounts in this report have been rounded off in accordance wi

186、th that Corporations Instrument to the nearest thousand dollars,or in certain cases,the nearest dollar.|Eumundi Group Limited&Controlled Entities182.CRITICAL ACCOUNTING JUDGEMENTS,ESTIMATES AND ASSUMPTIONSThe preparation of financial statements requires management to make judgements,estimates and as

187、sumptions that affect the application of accounting policies and the reported amounts of assets,liabilities,income and expenses.Estimates and underlying assumptions are reviewed on an ongoing basis and are based on historical or professional experience,including expectations of future events that ma

188、y have a financial impact on the entity and that are believed to be reasonable under the circumstances.Revisions to accounting estimates are recognised in the period in which the estimate is revised and in any future periods affected.For the year ended 30 June 2024 the areas that involved a higher d

189、egree of judgement or complexity and may need material adjustment if estimates and assumptions made in the preparation of these financial statements are incorrect are discussed below.Fair value measurement hierarchyThe Group is required to classify all assets and liabilities,measured at fair value,u

190、sing a three level hierarchy,based on the lowest level of input that is significant to the entire fair value measurement,being:Level 1:Quoted prices(unadjusted)in active markets for identical assets or liabilities that the entity can access at the measurement date;Level 2:Inputs other than quoted pr

191、ices included within Level 1 that are observable for the asset or liability,either directly or indirectly;and Level 3:Unobservable inputs for the asset or liability.Considerable judgement is required to determine what is significant to fair value and therefore which category the asset or liability i

192、s placed in can be subjective.The fair value of assets and liabilities classified as level 3 is determined by the use of valuation models.These include discounted cash flow analysis or the use of observable inputs that require significant adjustments based on unobservable inputs.Asset valuationsThe

193、fair value is the price that would be received to sell the property in an orderly transaction between market participants at balance date,under current market conditions,in the principal market for the asset.Such measurement takes into consideration the highest and best use of the property,being the

194、 use(either by the Group or by another market participant)that would maximise the value of the property.The Group has determined that the current use of its tangible property assets carried at fair value,being held for rental returns for its retail assets and held for use in owner managed business o

195、perations for its tavern assets,represents the highest and best use of the assets.Fair value measurements for land and buildings and investment property fall within level 3 of the fair value hierarchy described in note 1(f),as the valuation of these assets at balance date has been derived utilising

196、valuation techniques which make use of one or more significant unobservable inputs.No assets have been transferred between levels of the fair value hierarchy during the financial year.The carrying amounts in the current year are based upon directors valuation and used the capitalisation of net incom

197、e approach and direct comparison approach(for the land component).In the prior year the valuations were based on external valuations and directors valuation.The external valuation approach used for retail assets was the capitalisation of net income and discounted cash flow approach,and the valuation

198、 approach used for hotel assets was the capitalisation of net income and the direct comparison approach.The directors valuation of The Plough Inn used the capitalisation of net income approach.Ashmore TavernAnnual Report 2024|19NOTEs TO ThE FINaNCIaL sTaTEMENTs 30 June 2024|2.CRITICAL ACCOUNTING JUD

199、GEMENTS,ESTIMATES AND ASSUMPTIONS(CONT)MethodDescriptionDiscounted cash flow methodUnder the DCF method,a propertys fair value is estimated using explicit assumptions regarding the benefits and liabilities of ownership over the assets life including an exit or terminal value.The DCF method involves

200、the projection of a series of cash flows on a real property interest.To this projected cash flow series,an appropriate,market-derived discount rate is applied to establish the present value of the income stream associated with the real property.Direct comparison approachWhere an asset is valued,a di

201、rect comparison approach is used which is a procedure where a value is derived by comparing the asset being valued to similar asset that has been sold and adjusting the value for property specific attributes(usually land).Capitalisation of net income methodThis method involves assessing the total ne

202、t income receivable from the property and capitalising this in perpetuity to derive a capital value,with allowances for capital reversions.The table below explains the key inputs used to measure fair value under the capitalisation of net income method described above.InputDescriptionNet market rent/

203、market EBITDAA net market rent is the estimated amount for which a property or space within a property should lease between a willing lessor and a willing lessee on appropriate lease terms in an arms length transaction,after proper marketing and wherein the parties have each acted knowledgeably,prud

204、ently and without compulsion.In a net rent,the owner recovers outgoings from the tenant on a pro-rata basis(where applicable).Adopted capitalisation rateThe rate at which net market income is capitalised to determine the value of a property.The rate is determined with regard to market evidence.Perpe

205、tual vacancy allowanceA reduction applied to net market rent prior to capitalisation to reflect expected prevailing vacancies over the life of the asset.The percentage allowance is determined with regard to market evidence.Adopted discount rateThe rate of return used to convert a monetary sum,payabl

206、e or receivable in the future,into present value.It reflects the opportunity cost of capital,that is,the rate of return the capital can earn if put to other uses having similar risk.The rate is determined with regard to market evidence.Adopted terminal yieldThe capitalisation rate used to convert in

207、come into an indication of the anticipated value of the property at the end of the holding period when carrying out a discounted cash flow calculation.The rate is determined with regard to market evidence.Adopted market EBITDAThe earnings before interest,taxation,depreciation,amortisation,and rent e

208、xpense determined as achievable for the subject property,having regard to market evidence and trading performance historyCategories of tangible assets measured at fair valueThe Groups tangible assets carried at fair value are grouped into the following categories for the purpose of the below analysi

209、s:Retail assetsThe Plough Inn,Court House Hotel,Aspley Arcade Shopping Village,and land and buildings of the Aspley Shopping Centre(with a value determined by reference to the retail component as described in note 12)with a value derived from the capitalisation of net income and discounted cashflow

210、approach.Tavern assetAshmore Tavern land and buildings with a value derived from the capitalisation of net income method and direct comparison approach.|Eumundi Group Limited&Controlled Entities202.CRITICAL ACCOUNTING JUDGEMENTS,ESTIMATES AND ASSUMPTIONS(CONT)The range of significant unobservable in

211、puts adopted in the valuation of retail and tavern assets is as follows:FY24FY23Valuation basisDirectors valuationsValuation basisIndependent valuations and Directors valuationsMethodCapitalisation of net incomeMethodCapitalisation of net income and discounted cash flowRetail AssetsInputs used to me

212、asure fair valueRange of unobservable inputsInputs used to measure fair valueRange of unobservable inputsAdopted capitalisation rate5.51%-6.37%Adopted capitalisation rate5.51%-6.37%Perpetual vacancy allowance0.0%-3.5%Perpetual vacancy allowance0.0%-3.5%Net market rental(per sqm)$344-$1,091Net market

213、 rental(per sqm)$342-$1,049Adopted discount raten/aAdopted discount rate7.0%-8.25%Terminal yieldn/aTerminal yield6.5%-6.75%Tavern AssetsInputs used to measure fair valueRange of unobservable inputsInputs used to measure fair valueRange of unobservable inputsAdopted capitalisation rate9.00%Adopted ca

214、pitalisation rate9.02%Adopted market EBITDA$3,350,000Adopted market EBITDA$3,427,000A significant increase or decrease in one or more of the inputs described above will have an effect on the reported fair value as follows:Significant inputFair value measurement sensitivity to significant increase in

215、 inputFair value measurement sensitivity to significant decrease in inputNet market rent/market EBITDAIncreaseDecreaseAdopted capitalisation rateDecreaseIncreasePerpetual vacancy allowanceDecreaseIncreaseAdopted discount rate(Independent valuations only)DecreaseIncreaseAdopted terminal yield(Indepen

216、dent valuations only)DecreaseIncreaseGenerally,a change in the assumption made for the adopted capitalisation rate is accompanied by a directionally similar change in the adopted terminal yield.The adopted capitalisation rate is a significant input of the capitalisation of net income method and the

217、adopted terminal yield is a significant input of the discounted cash flow method.Under the capitalisation method,the net market rent has a strong interrelationship with the adopted capitalisation rate.In theory,a directionally similar movement in both inputs could potentially offset the impact to th

218、e fair value.A directionally opposite change in both inputs could potentially magnify the impact to the fair value.When assessing a discounted cash flow,the adopted discount rate and adopted terminal yield have a strong interrelationship in deriving a fair value given the discount rate will determin

219、e the rate in which the terminal value is discounted to terminal value.In theory,a directionally similar movement in both inputs could potentially offset the impact to the fair value.A directionally opposite change in both inputs could potentially magnify the impact to the fair value.Annual Report 2

220、024|21NOTEs TO ThE FINaNCIaL sTaTEMENTs 30 June 2024|3.OPERATING SEGMENTSIdentification of reportable operating segmentsThe Group has identified its operating segments based upon internal reports that are reviewed and used by the board of directors(chief operating decision makers)in assessing perfor

221、mance and determining the allocation of resources.The chief operating decision maker,who is responsible for allocating the resources and assessing the performance of the operating segments,has been identified as the chief executive officer.Reportable SegmentDescription of segmentHotel operationsSell

222、s packages alcoholic beverages and other products through its retail outlets,sells food and alcoholic and other beverages on-premise through bars and bistros and provides licensed gaming entertainment.Investment property operationsOwns and leases investment property assets to retail and hotel tenant

223、s.FY24Hotel operationsInvestment property operationsUnallocatedTotal$000$000$000$000RevenuesRevenue from contracts with customers26,099-26,099Lease revenue-4,541(574)3,967Commissions350-350Interest-1-1Other revenue15-1526,4644,542(574)30,432ResultsSegment results3,1523,530-6,682Finance costs-(1,694)

224、(1,694)Unallocated revenue less unallocated costs-(1,005)(1,005)Fair value adjustment on investment properties-840840Income tax expense-(1,202)(1,202)Profit for the year3,1523,530(3,061)3,621AssetsSegment assets34,60271,947166106,715Non-current assets acquired643146-789Depreciation and amortisation(

225、1,341)(325)-(1,666)|Eumundi Group Limited&Controlled Entities223.OPERATING SEGMENTS(CONT)FY23Hotel operationsInvestment property operationsUnallocatedTotal$000$000$000$000RevenuesRevenue from contracts with customers25,414-25,414Lease revenue-4,471(549)3,922Commissions322-322Other revenue18-577525,7

226、544,471(492)29,733ResultsSegment results2,9823,228-6,210Finance costs-(1,441)(1,441)Unallocated revenue less unallocated costs-(1,066)(1,066)Fair value adjustment on investment properties-(1,740)(1,740)Income tax expense-(486)(486)Profit for the year2,9823,228(4,733)1,477AssetsSegment assets34,84371

227、,192145106,180Non-current assets acquired2,21844-2,262Depreciation and amortisation(1,310)(599)51(1,858)Intersegment transactionsAn internally determined transfer price is set for all inter-entity sales.All such transactions are eliminated on consolidation for the Groups financial statements.Inter-s

228、egment revenue relates to Aspley Central Tavern rent and outgoings.Segment assets and liabilitiesWhere an asset is used across multiple segments,the asset is allocated to the segment that receives the majority of the economic value from the asset.In the majority of instances,segment assets are clear

229、ly identifiable on the basis of their nature.Unless indicated otherwise in the segment assets note,investments in financial assets and deferred tax assets have not been allocated to operating segments.Information pertaining to segment liabilities is not regularly reported to the board of directors.W

230、orking capital,plant and equipment relating to the Groups hotel operations and Ashmore Tavern land and buildings are included in hotel segment assets.The total value of the land and buildings within the Aspley Shopping Centre has been included in the investment property segment assets,as this segmen

231、t receives the majority of the economic value from these assets.The results of the Aspley Central Tavern which forms part of this property are included in the hotel operations segment.Unallocated itemsCertain items of revenue,expense and assets are not allocated to operating segments as they are not

232、 considered part of the core operations of any segment including fair value adjustments,financing costs and corporate overheads.Annual Report 2024|23NOTEs TO ThE FINaNCIaL sTaTEMENTs 30 June 2024|4.REVENUE 20242023$000$000Revenue from contracts with customersSales of goods13,989 14,088 Gaming revenu

233、e12,110 11,326 26,099 25,414 Other revenueCommissions350 322 Rental income and recoverable outgoings from investment properties3,967 3,922 Interest1-Gain on disposal of plant and equipment-57 Other revenue15 18 4,333 4,319 Revenue30,432 29,733 Disaggregation of revenue from contracts with customersR

234、evenue derived in Queensland$26,000,000(FY23:$25,346,000).Accounting policy for revenue recognitionThe Group owns and operates public hotels with bar,bistro and gaming facilities,conducts commercial and retail liquor sales through owned and leased premises,and owns hotel and commercial retail real e

235、state leased to external customers.Revenue from contracts with customersSale of goods relates to on-premise food and liquor revenue and retail liquor.Revenue is recognised when the performance obligation to transfer control of the goods to the customer is satisfied at point of sale or delivery.Gamin

236、g revenue is the net difference between gaming wins and losses measured by daily banking,net of jackpot liability movement.Assets related to contracts with customers are disclosed in note 8.The Group does not have any liabilities related to contracts with customers.Rental income and recoverable outg

237、oings from investment propertiesRental income from investment properties is recognised on a straight-line basis over the lease term.Recoverable outgoings are estimated for the year ahead,charged monthly in advance on the basis of that estimate and then trued up annually to audited actual recoverable

238、 outgoings expenditure resulting in an audited outgoings recoverable adjustment.Ashmore Tavern|Eumundi Group Limited&Controlled Entities245.EXPENSES20242023$000$000Profit before income tax includes the following specific expenses:Cost of goods sold8,141 8,310 DepreciationBuildings876 1,116 Plant and

239、 equipment612 605 Lease assets178 188 Total depreciation1,666 1,909 Amortisation reversal-intangibles-(51)Total depreciation and amortisation1,666 1,858 Finance costsAmortisation of loan establishment costs24 22 Interest and finance charges paid/payable on borrowings1,649 1,411 Interest and finance

240、charges paid/payable on lease liabilities21 8 Total finance costs1,694 1,441 Superannuation expense437 419 Plough InnAnnual Report 2024|25NOTEs TO ThE FINaNCIaL sTaTEMENTs 30 June 2024|6.INCOME TAX20242023$000$000Income tax expenseCurrent tax1,234 1,043 Deferred tax-origination and reversal of tempo

241、rary differences(30)(553)(Over)/under provision in prior years-current tax(23)98 Under/(over)provision in prior years-deferred tax21(102)Aggregate income tax expense1,202 486 Deferred tax included in income tax expense comprises:Decrease in deferred tax liabilities(30)(553)Numerical reconciliation o

242、f income tax expense and tax at the statutory rateProfit before income tax expense4,823 1,963 Tax at the statutory tax rate of 25%1,206 491(Non-taxable)/non-deductible sundry items(2)(1)(Over)/under provision in prior years-current tax(23)98 Under/(over)provision in prior years-deferred tax21(102)In

243、come tax expense1,202 486 20242023$000$000Deferred income tax at 30 June relates to the following:Investment properties(3,254)(2,976)Property,plant and equipment(6,264)(6,318)Lease liabilities102 136 Lease assets(97)(134)Employee benefits147 147 Accrued expenses148 140 Prepayments(82)(74)Sundry item

244、s6 6 Tax losses499 499 Net deferred tax liabilities(8,795)(8,574)Movement in deferred tax:At 1 July(8,574)(7,986)Credited/(charged)to profit or loss30 553 Under/(over)provision in prior years(21)102 Credited to contributed equity4 4 Charged to other comprehensive income(234)(1,247)At 30 June(8,795)(

245、8,574)Tax expense relating to items of other comprehensive incomeTax expense on revaluation of land and buildings234 1,247 Amounts relating to items recognised directly in equityShare issue costs4 4|Eumundi Group Limited&Controlled Entities267.CASH AND CASH EQUIVALENTS20242023$000$000Current assetsC

246、ash on hand801 670 Cash at bank630 936 1,431 1,606 Accounting policy for cash and cash equivalentsCash and cash equivalents include cash on hand deposits held at call with financial institutions and which are subject to an insignificant risk of changes in value.8.TRADE AND OTHER RECEIVABLES20242023$

247、000$000Current assetsTrade receivables from contracts with customers123 174 Other receivables63 49 186 223 Non-current assetsTrade receivables from contracts with customers-2 Fair value and credit riskDue to the short-term nature of trade and other receivables,their carrying amount is assumed to app

248、roximate their fair value.The maximum exposure to credit risk is the carrying amount mentioned above.Refer to note 19 for more information on the risk management policy of the Group and the credit quality of the entitys trade and other receivables.9.OTHER ASSETS20242023$000$000Current assetsPrepayme

249、nts397309Other short term deposits30 40 427 349 Annual Report 2024|27NOTEs TO ThE FINaNCIaL sTaTEMENTs 30 June 2024|10.PROPERTY,PLANT AND EQUIPMENT20242023$000$000Non-current assetsLand-at valuation20,600 20,600 Buildings-at valuation30,953 30,946 Plant and equipment-at cost3,453 3,095 Less:Accumula

250、ted depreciation(1,630)(1,404)1,823 1,691 Lease assets-at cost728 968 Less:Accumulated depreciation(339)(305)389 663 53,765 53,900 ReconciliationsReconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:Freehold land at fair val

251、ueBuildings at fair valuePlant and equipment at costLease assets at costTotal$000$000$000$000$000Balance at 1 July 202211,00035,8331,41647448,723Additions-1,2839343772,594Straight-line adjustments and lease incentives-(495)-(495)Revaluation increments/(decrements)9,600(4,613)-4,987Transfers in/(out)

252、-54(54)-Depreciation expense-(1,116)(605)(188)(1,909)Balance at 30 June 202320,60030,9461,69166353,900Additions-47648-695Straight-line adjustments and lease incentives-(101)-(101)Revaluation increments/(decrements)-937-937Transfers in/(out)-96(96)-Depreciation expense-(876)(612)(178)(1,666)Balance a

253、t 30 June 202420,60030,9531,82338953,765|Eumundi Group Limited&Controlled Entities2810.PROPERTY,PLANT AND EQUIPMENT(CONT)Accounting policyLand and buildings,which includes Ashmore Tavern and Aspley Shopping Centre,are shown at fair value,based upon periodic,but at least biennial,valuations by extern

254、al independent valuers,less subsequent depreciation for buildings.Any accumulated depreciation at the date of revaluation is eliminated against the gross carrying amount of the asset and the net amount is restated to the revalued amount of the asset.All other property,plant and equipment is stated a

255、t historical cost less depreciation.Historical cost includes expenditure that is directly attributable to the acquisition of the items.Subsequent costs are included in the assets carrying amount or recognised as a separate asset,as appropriate,only when it is probable that future economic benefits a

256、ssociated with the item will flow to the Group and the cost of the item can be measured reliably.All other repairs and maintenance are charged to profit or loss during the financial period in which they are incurred.Increases in the carrying amounts arising on revaluation of land and buildings are r

257、ecognised,net of tax,in other comprehensive income and accumulated in reserves in equity.To the extent that the increase reverses a decrease previously recognised in profit or loss,the increase is first recognised in profit or loss.Decreases that reverse previous increases of the same asset are firs

258、t recognised in other comprehensive income to the extent of the remaining surplus attributable to the asset;all other decreases are charged to profit or loss.The assets residual values and useful lives are reviewed,and adjusted if appropriate,at the end of each reporting period.An assets carrying am

259、ount is written down immediately to its recoverable amount if the assets carrying amount is greater than its estimated recoverable amount.Gains and losses on disposals are determined by comparing proceeds with carrying amount.These are included profit or loss.When revalued assets are sold,it is grou

260、p policy to transfer any amounts included in other reserves in respect of those assets to retained earnings.Lease assetsLease assets represents lease contracts in which the company is lessee of retail premises and gaming machines purchased utilising deferred payment terms.At the commencement date of

261、 a lease(other than leases of 12-months or less and leases of low value assets),the Group recognises a lease asset representing its right to use the underlying asset and a lease liability representing its obligation to make lease payments.Leases of 12 months or less and leases of low-value assetsLea

262、se payments made in relation to leases of 12-months or less and leases of low value assets(for which a lease asset and a lease liability has not been recognised)are recognised as an expense on a straight-line basis over the lease term.Valuation of land and buildingsValuations of land and building as

263、sets are prepared as at balance date.Information on the basis for determining the fair value of land and buildings at balance date,including a description of significant valuation inputs,is contained within note 2.Non-current assets pledged as securityRefer to note 16 for information on assets pledg

264、ed as security by the Group.Contractual obligationsRefer to note 24 for information on contractual obligations.Depreciation is calculated on a straight-line basis to write off the net cost of each item of property,plant and equipment(excluding land)over their expected useful lives as follows:Buildin

265、gs 5-40 years Plant and equipment 2-5 years The residual values,useful lives and depreciation methods are reviewed,and adjusted if appropriate,at each reporting date.An item of property,plant and equipment is derecognised upon disposal or when there is no future economic benefit to the Group.Gains a

266、nd losses between the carrying amount and the disposal proceeds are taken to profit or loss.Any revaluation surplus reserve relating to the item disposed of is transferred directly to retained profits.Annual Report 2024|29NOTEs TO ThE FINaNCIaL sTaTEMENTs 30 June 2024|10.PROPERTY,PLANT AND EQUIPMENT

267、(CONT)Land and buildings stated under the historical cost conventionIf land and buildings were stated under the historical cost convention,the amounts would be as follows:20242023$000$000Land-at cost7,426 7,426 7,426 7,426 Buildings-at cost21,940 21,940 Less:Accumulated depreciation(4,875)(4,457)17,

268、065 17,483 11.INVESTMENT PROPERTIES20242023At fair value$000$000Non-current assetsAt beginning of year46,349 48,150 Capitalised expenditure58 8 Straight-line rentals and lease incentives(147)(69)Net gain(loss)from fair value adjustment840(1,740)At end of year47,100 46,349 Accounting policy for inves

269、tment propertiesInvestment properties principally comprise of freehold land and buildings held for long-term rental and capital appreciation that are not occupied by the Group.Investment properties are carried at fair value,representing open-market value determined by external valuers or an internal

270、 valuation process.Changes in fair value are recorded in profit or loss as part of other income or as a separate expense(as appropriate).Valuations of investment propertiesInformation on the basis for determining the fair value of investment properties at balance date,including a description of sign

271、ificant valuation inputs,is contained within note 2.The table below summarises the adopted fair values of the investment properties held by the Group as at balance date:PropertyAcquisition DateCosts including Additions*Last independent valuationLast independent valuationCarrying valueDateAmount20242

272、023$000$000$000Aspley Arcade Shopping Village01/06/200716,13330/06/202320,39920,40020,399Plough Inn01/11/201713,10030/06/202318,30019,30018,750Courthouse Hotel01/08/20216,37930/06/20237,2007,4007,20035,61245,89947,10046,349*excluding acquisition costs|Eumundi Group Limited&Controlled Entities3011.IN

273、VESTMENT PROPERTIES(CONT)Leasing arrangements-Group as lessorThe investment properties are leased to tenants under long-term operating leases with rentals payable monthly.Minimum lease payments under non-cancellable operating leases of investment properties not recognised in the financial statements

274、 are receivable as follows:20242023$000$000Minimum lease commitments receivable but not recognised in the financial statements:1 year or less3,996 3,760 Between 1 and 2 years4,004 3,563 Between 2 and 3 years3,795 3,489 Between 3 and 4 years3,290 3,304 Between 4 and 5 years3,116 3,048 Over 5 years9,7

275、06 11,865 27,907 29,029 Non-current assets pledged as securityRefer to note 16 for information on assets pledged as security by the Group.Contractual obligationsRefer to note 24 for information on contractual obligations.12.INTANGIBLES20242023$000$000Non-current assetsGaming authorities-at cost2,315

276、 2,315 Hotel licence-at cost104 104 2,419 2,419 ReconciliationsReconciliations of the written down values at the beginning and end of the current and previous financial year are set out below:Hotel LicenceGaming AuthoritiesTotal$000$000$000Balance at 1 July 2022532,3152,368Amortisation reversed*51-5

277、1Balance at 30 June 20231042,3152,419Balance at 30 June 20241042,3152,419*During the FY23 year the effective life of liquor licences was reviewed,and the asset life was determined to be infinite.Amortisation relating to prior periods was reversed.Annual Report 2024|31NOTEs TO ThE FINaNCIaL sTaTEMENT

278、s 30 June 2024|12.INTANGIBLES(CONT)Accounting policy for intangible assetsGaming authoritiesGaming authorities have no expiry date and can only be withdrawn or cancelled by a government authority under circumstances of breach or legislative change.They are deemed to have an indefinite useful life an

279、d are carried at cost less any impairment losses.Intangible assets with an indefinite useful life are assessed for impairment whenever events or circumstances arise that indicate the asset may be impaired.An impairment loss is recognised when the carrying amount of an asset exceeds the assets recove

280、rable amount.Gaming authorities are tested for impairment on an individual asset basis.Gaming authorities are carried at cost less impairment losses.Under Australian Accounting Standards,the maximum cost recognisable by the Group for these authorities is the purchase cost of$2,315,000 representing 1

281、5 of the Groups 90 authorities which were acquired for Ashmore Tavern and Aspley Central Tavern since 2013.As part of the Groups annual review of impairment the net realisable value is determined using the most recent price at auction for gaming authorities as issued by the Queensland Government Off

282、ice of Liquor and Gaming Regulation less selling costs.At 30 June 2024,based on the most recent tender held on 20 March 2024,the sale price net of GST and 15%selling costs was$360,036 per authority,representing a net realisable value of$32,403,000 for the Groups 90 gaming authorities.(2023:$294,309

283、per authority based on the tender held 13 April 2022 representing a net realisable value of$26,488,000 for the Groups 90 gaming authorities).Hotel licenceHotel licences never expire and have an infinite useful life and are carried at cost less impairment losses if any.The Group has not impaired its

284、hotel licence.13.TRADE AND OTHER PAYABLES20242023$000$000Current liabilitiesTrade payables2,073 1,871 Other payables1,429 1,707 3,502 3,578 Refer to note 19 for further information on financial instruments.Accounting policy These amounts represent liabilities for goods and services provided to the G

285、roup prior to the end of the financial year and which are unpaid.Due to their short-term nature they are measured at amortised cost and are not discounted.The amounts are unsecured and are usually paid within 30 days of recognition.|Eumundi Group Limited&Controlled Entities3214.LEASE LIABILITIES2024

286、2023$000$000Current liabilitiesLease liability144 192 Non-current liabilitiesLease liability263407 Opening balance 1 July599 451 Additions-375 Interest expense21 8 Lease payments(213)(235)Carrying amount 30 June407 599 Refer to note 19 for further information on financial instruments.15.PROVISIONS20

287、242023$000$000Current liabilitiesAnnual leave209 219 Long service leave218 210 Sick leave163 157 590 586 Non-current liabilitiesLease make good47 47 Amounts not expected to be settled within the next 12 monthsThe current provision for employee benefits includes all unconditional entitlements where e

288、mployees have completed the required period of service and also those where employees are entitled to pro-rata payments in certain circumstances.The entire amount is presented as current,since the Group does not have an unconditional right to defer settlement.However,based on past experience,the Gro

289、up does not expect all employees to take the full amount of accrued leave or require payment within the next 12 months.16.BORROWINGS20242023$000$000Non-current liabilitiesCommercial loan facilities-secured26,254 29,599 Unamortised loan establishment costs(48)(35)26,206 29,564 Annual Report 2024|33NO

290、TEs TO ThE FINaNCIaL sTaTEMENTs 30 June 2024|16.BORROWINGS(CONT)Accounting policy for borrowingsLoans and borrowings are initially recognised at the fair value of the consideration received,net of transaction costs and are subsequently measured at amortised cost.Any difference between the proceeds(n

291、et of transaction costs)and the redemption amount is recognised in the profit or loss over the period of the borrowings using the effective interest method.Borrowings are classified as current liabilities unless the Group has an unconditional right to defer settlement of the liability for at least 1

292、2 months after the end of the reporting period.Assets pledged as securityBank overdraft and commercial facilities are wholly secured by way of:(i)Registered mortgage debenture over the assets and undertakings of the Group;(ii)Unlimited fully interlocking guarantee by Eumundi Group Limited,Eumundi Pr

293、operty Group Pty Ltd and Eumundi Group Hotels Pty Ltd;and(iii)First registered mortgage over the property,plant and equipment and investment properties of the Group.As such all assets are pledged as security for borrowings.Financing arrangementsUnrestricted access was available at reporting date to

294、the following lines of credit:20242023$000$000Credit standby arrangementsTotal facilitiesBank overdraft100 100 Commercial loan facilities35,000 35,000 Bank guarantee facility100 100 Direct debit facility250 250 35,450 35,450 Used at the reporting dateBank overdraft-Commercial loan facilities26,254 2

295、9,599 Bank guarantee facility19 19 Direct debit facility-26,273 29,618 Unused at the reporting dateBank overdraft100 100 Commercial loan facilities8,746 5,401 Bank guarantee facility81 81 Direct debit facility250 250 9,177 5,832 On 9 November 2023,the Group renegotiated its commercial debt facilitie

296、s,reducing the borrowings limit and extending the term of approved commercial loan facilities until 31 October 2025 on an interest only basis.Bank overdraftStandby funds provided by the Groups bankers are in the form of a bank overdraft which has a limit of$100,000(FY23:$100,000).The interest rate i

297、s variable and is based on prevailing market rates.This facility is subject to annual review,may be drawn down at any time and may be terminated by the bank without notice.|Eumundi Group Limited&Controlled Entities3416.BORROWINGS(CONT)FacilitiesCommercial loan facilities are able to be drawn against

298、 and repaid at any time,with interest rates fixed for each 90-day loan period,and interest is payable at the end of the roll period based on daily balances.The finance facilities are subject to annual pricing review.Interest is at variable rates.All facilities are interest only until expiry.Further

299、details are outlined below.Facility LimitAmount Drawn (Face Value)Interest Rate*Interest TypeExpiry Date202420232024202320242023$000$000$000$000%5,0005,000-5.45%5.25%Variable31/10/20259,0009,0009,0009,0005.86%5.13%Variable31/10/202510,00010,0006,2549,5995.86%5.14%Variable31/10/202511,00011,00011,000

300、11,0005.86%5.14%Variable31/10/202535,00035,00026,25429,599*includes facility fees and margins17.ISSUED CAPITAL2024202320242023SharesShares$000$000Ordinary shares-fully paid48,185,15445,465,89233,080 30,081 Movements in ordinary share capitalDetailsDateSharesIssue price$000Balance1 July 202242,902,66

301、627,276Shares issued under the DRP2,563,226$1.100 2,815Share issue costs(net of tax)-$0.000(10)Balance30 June 202345,465,89230,081Shares issued under the DRP2,719,262$1.107 3,010Share issue costs(net of tax)-$0.000(11)Balance30 June 202448,185,15433,080Ordinary sharesOrdinary shares entitle the hold

302、er to participate in dividends and the proceeds on winding up of the company in proportion to the number of and amounts paid on the shares held.Every holder of ordinary shares present at a meeting in person,or by proxy,is entitled to one vote per share.Ordinary shares have no par value and the compa

303、ny has an unlimited amount of authorised capital.Subject to legislative requirements,the directors control the issue of shares in the company.OptionsAs at 30 June 2024,there were no options to purchase ordinary shares in the parent entity(FY23:Nil).Annual Report 2024|35NOTEs TO ThE FINaNCIaL sTaTEME

304、NTs 30 June 2024|17.ISSUED CAPITAL(CONT)Capital risk managementThe Groups objectives when managing capital is to safeguard its ability to continue as a going concern,so that it can provide returns for shareholders and benefits for other stakeholders and to maintain an optimum capital structure to re

305、duce the cost of capital.Capital is regarded as total equity,as recognised in the consolidated statement of financial position,plus net debt.Net debt is calculated as total borrowings less cash and cash equivalents.In order to maintain or adjust the capital structure,the Group may adjust the amount

306、of dividends paid to shareholders,return capital to shareholders,issue new shares or sell assets to reduce debt.The Group does not have a current on-market share buy-back.The Group would look to raise capital when an opportunity to invest in a business or company was seen as value adding relative to

307、 the current companys share price at the time of the investment.The Group is not actively pursuing additional investments in the short term as it continues to integrate and grow its existing businesses in order to maximise synergies.The Group is subject to certain financing arrangements covenants an

308、d meeting these is given priority in all capital risk management decisions.There have been no events of default on the financing arrangements during the current or prior financial year.The Group monitors capital on the basis of the gearing ratio.This ratio is calculated as net debt divided by total

309、capital.Net debt is calculated as total borrowings(including trade and other payables and borrowings as shown in the consolidated statement of financial position)less cash and cash equivalents as shown in the consolidated statement of financial position.Total capital is calculated as total equity as

310、 shown in the consolidated statement of financial position plus net debt.20242023$000$000The gearing ratios as at 30 June were as follows:Total borrowings(note 16)26,206 29,564 less:cash and cash equivalents(note 7)(1,431)(1,606)Net debt24,775 27,958 Total equity66,804 62,711 Total capital91,579 90,

311、669 20242023%Gearing ratiosNet debt/equity37.1%44.6%Net debt/total capital27.1%30.8%|Eumundi Group Limited&Controlled Entities3618.DIVIDENDS20242023$000$000Dividends paid during the financial year were as follows:Final dividend of 3.5 cents per share fully franked at the corporate tax rate of 25%pai

312、d on 13 September 2023(FY23:3.5 cents per share fully franked at 25%)1,591 1,501 Interim dividend of 3.5 cents per share fully franked at the corporate tax rate of 25%paid on 14 March 2024(FY23:3.5 cents per share fully franked at 25%)1,639 1,549 Total dividends paid during the year3,230 3,050 Divid

313、ends declared since the end of the year:On 26 August 2024 the board declared a final dividend of 3.75 cents per share fully franked at the corporate tax rate of 25%which will be paid on 11 September 2024(FY23:3.5 cents per share fully franked at 25%)1,8071,59120242023$000$000Franking creditsFranking

314、 credits available at the reporting date based on a tax rate of 25%292 1 Franking credits that will arise from the payment of the amount of the provision for income tax at the reporting date based on a tax rate of 25%364 521 Franking credits available for subsequent financial years based on a tax ra

315、te of 25%656 522 19.FINANCIAL INSTRUMENTSFinancial risk management objectivesThe Groups activities expose it to a variety of financial risks:market risk(interest rate risk),credit risk and liquidity risk.The Groups overall risk management program focuses on the unpredictability of financial markets

316、and seeks to minimise potential adverse effects on the financial performance of the Group.Risk management is carried out by management under policies approved by the board of directors.The board provides principles for overall risk management as well as policies covering specific areas such as mitig

317、ating interest rate and credit risks and investing excess liquidity.20242023$000$000The Group holds the following financial instruments:Financial Assets(at amortised cost)Cash and cash equivalents1,431 1,606 Trade and other receivables186 223 1,617 1,829 Financial Liabilities(at amortised cost)Trade

318、 and other payables3,502 3,578 Borrowings26,206 29,564 Lease liability407 599 30,115 33,741 Refer to note 16 for information on assets pledged as security by the Group.Annual Report 2024|37NOTEs TO ThE FINaNCIaL sTaTEMENTs 30 June 2024|19.FINANCIAL INSTRUMENTS(CONT)Market riskInterest rate riskThe G

319、roups interest rate risk arises from long-term borrowings being commercial loans.Borrowings obtained at variable rates expose the Group to cash flow interest rate risk.No hedging instruments are used.There is no material interest rate risk associated with cash at bank.The Group manages its exposure

320、to interest rate risks through a formal set of policies and procedures approved by the board.The Group does not engage in any significant transactions which are speculative in nature.The Groups exposure to interest rate risk in relation to future cash flows and the effective weighted average interes

321、t rate on classes of financial assets and financial liabilities at reporting date are:20242023Weighted average interest rateBalanceWeighted average interest rateBalance%$000%$000Finance facilities5.86%26,2545.13%29,599Net exposure to cash flow interest rate risk26,25429,599SensitivityAt 30 June 2024

322、,if interest rates had changed by+/-100 basis points from the year end rates with all other variables held constant,post-tax profit for the year would have been$197,000 lower/higher(FY23:change of 100 bps:$222,000 lower/higher)as a result of a change in interest from borrowings.Weighted average inte

323、rest rates exclude facility fees paid on undrawn facilities.Credit riskCredit risk arises from cash and cash equivalents,deposits with banks as well as credit exposures to trade and other receivables.For rental income and recoverable outgoings from investment properties,the maximum credit risk expos

324、ure is the sum of remaining rental and outgoings payments for the contract term plus re-leasing costs less the amount of lease security held(including bank guarantee and personal guarantees).For all other categories,the maximum credit risk exposure is represented by the carrying amount of financial

325、assets in the statement of financial position,net of any provisions for expected losses.The Group extends credit only to recognised,creditworthy third parties.In addition,trade and other debtor receivable balances are monitored on a continual basis.The Groups exposure to expected credit losses is no

326、t significant.The Group had no other significant concentrations of credit risk from any single debtor or group of debtors at balance date.Creditworthiness of potential tenants is established through the review of applicants credit history and financial position.Security in the form of deposits,bank

327、guarantees and third-party guarantees is obtained which can be called upon if the counterparty is in default under the terms of the lease agreement.At period end cash and deposits were held with the National Australia Bank.|Eumundi Group Limited&Controlled Entities3819.FINANCIAL INSTRUMENTS(CONT)Liq

328、uidity riskThe Group manages liquidity risk by maintaining adequate cash reserves and available borrowing facilities by continuously monitoring actual and forecast cash flows and matching the maturity profiles of financial assets and liabilities.The Group has a voluntary working capital deficiency b

329、ased on its capital management strategy of paying down debt with excess cash.As at 30 June 2024,none of the Groups commercial loans are payable in the next 12 months(FY23:nil).Refinancing riskRefinancing risk is the risk that the group will be unable to refinance its debt facilities as they mature,o

330、r will only be able to finance its debt facilities at unfavourable interest rates and credit market conditions(margin price risk).The Group has several debt facilities with varying maturity dates to reduce the exposure to market conditions in any one period,and proactively manages renewal of maturin

331、g facilities to ensure renewal is achieved at competitive market terms.Maturity of financial liabilitiesThe tables below analyse the Groups financial liabilities into relevant maturity groupings based upon the remaining period at reporting date to the contractual maturity date.The amounts disclosed

332、in the table are the contractual undiscounted cash flows.Cash flows are managed on a daily basis to ensure adequate funds are available to pay liabilities as they come due while minimising the use of credit facilities.Standby funds provided by the Groups bankers are in the form of a bank overdraft w

333、hich has a limit of$100,000(2023FY23:$100,000).The interest rate is variable and is based on prevailing market rates.This facility is subject to annual review,may be drawn down at any time and may be terminated by the bank without notice.Aspley TavernAnnual Report 2024|39NOTEs TO ThE FINaNCIaL sTaTEMENTs 30 June 2024|19.FINANCIAL INSTRUMENTS(CONT)Remaining contractual maturitiesThe following table