1. finance
2. accounting and auditing

Annual
Report
2012
What to do. Where to stay. How to get there.
COMPANY
PROFILE
ANNUAL
MEETING
2012
Annual Report 2012
Jasons Travel Media Ltd is a New Zealand-based multi-media
publishing business specialising in travel and tourism publicly listed
on the NZAX market (JTM). Jasons is the leading multi-media publisher
and distributor of travel and tourism information for New Zealand,
Australia and the South Pacific Islands through its website
www.jasons.com, printed travel guides, maps and directories. The
company also distributes print brochures and visitor information for
independent third parties.
Shareholders are invited to attend the Annual Meeting of Jasons Travel
Media Limited to be held at 2.30pm, 26 September 2012, at Jasons
Travel Media, First Floor, 2 Ngaire Avenue, Newmarket, Auckland. The
formal Notice of Meeting and Proxy Form will be posted separately.
Shareholders are invited to join the directors and staff over light
refreshments at the conclusion of the meeting.
Sunrise Whangarei Harbour © Cherie Palmer
CONTENT
01
Directory
Directory
02
Financial
DIRECTORS:
BANKERS:
performance
John Sandford
ANZ National Bank Limited
comparison
Geoff Burns
03
06
Chairman and chief
BCA, ACA (resigned in August 2011)
executive’s report
(resigned in December 2011)
Directors’ report
march 2012)
Statutory
disclosures relating
11
12
Scott Bradley
Facsimile (09) 488 8787
(appointed in April 2012)
DATE OF INCORPORATION:
14 July 1999 as a Private Company
under the Companies Act 1993. Publicly
traded since June 2005.
REGISTERED OFFICE:
phone (09) 912 8400
2012)
Auckland 1142
Jamie Hall
Auditor’s Report
ended 31 march
Computershare Investor Services
Limited, Private Bag 92119,
Telephone (09) 488 8777
1st Floor, 2 Ngaire Avenue, Newmarket,
Auckland 1051
Financial
SHARE REGISTRY:
Nick Baylis
to shareholders
statements (year
16
B.Com, CA (Deputy Chairman)
Mike Simm
(year ended 31
09
(Chairman)
POSTAL ADDRESS:
PO Box 9390, Newmarket,
Auckland 1149
PRINCIPAL BUSINESS:
SOLICITORS:
• Minter Ellison Rudd Watts,
Barristers & Solicitors, Auckland
• McVeagh Fleming, Barristers &
Solicitors, Auckland
• Sargent Lawyers, Auckland
WEB:
www.jasons.com
MANAGING YOUR
SHAREHOLDING ONLINE:
To change your address, update your
payment instructions and to view
your investment portfolio including
transactions, please visit:
Media publishers (print and web)
www.computershare.co.nz/
investorcentre
Notes to
AUDITORS:
the financial
Hayes Knight Audit NZ, Auckland
General enquiries can be directed to:
[email protected]
statements
Please assist our registrar by quoting
your CSN or shareholder number.
01
Financial performance comparison
Group
2012
$’000S
2011
$’000S
2010
$’000S
Revenue
12,426
13,909
14,567
Expenses
11,096
12,189
12,781
1,330
1,720
1,786
2,120
Depreciation & amortisation
752
620
613
Interest
259
315
284
Impairment Charge
223
-
96
785
EBITDA
Net Profit before tax
Tax
Net profit after tax
2008
$’000S
2007
$’000S
2006
$’000S
13,977
13,649
12,297
11,923
11,857
11,008
10,523
10,154
2,641
1,774
1,769
579
641
506
601
318
448
256
438
-
-
-
-
-
889
1,223
1,552
1,012
730
4
300
336
416
570
286
184
92
485
553
806
982
726
546
2006 prepared under NZ GAAP and 2007 to 2012 prepared under NZ IFRS.
02 Annual Report 2012
2009
$’000S
John Sandford, Chairman
Kevin Francis, CEO
Chairman’s report
CHALLENGING TIMES;
EXCITING TIMES
I’m very pleased to present this
year’s Annual Report following my
appointment as Chairman in April 2012.
The period in review and subsequent
months have proved very eventful. I
would like to pay tribute to everyone in
the Jasons team, very ably led by our
newly appointed Chief Executive Kevin
Francis and guided by the Directors.
Everyone has worked very hard to refine
our direction, refocus the business,
become more solutions-oriented and
put the company in a position where
it’s able to take advantage of significant
opportunities for growth and future
success.
For the year to 31 March 2012,
Jasons Travel Media’s operating profit
(EBITDA) was $1.330m compared
with $1.720m last year. Net profit was
$92,000 following a digital asset write
down of $353,000 and a $100,000
accrual toward losses associated with
earthquake events in Christchurch
(last year $485,000). Gross revenue
of $12.282m was down on last year’s
$13.907m however gross margin was
slightly higher at $7.358m (last year
$7.288m). On an encouraging note, I
am pleased to advise that our net profit
before tax in Australia was $98,000
compared with last year’s $159,000 loss.
Midway through last year, Jasons
decided to ‘concentrate on its knitting’,
that is the collection, packaging
and distribution of information. We
concentrated on a three-pronged
strategy for success:
• Customer Engagement: building a
highly engaged customer-focused
team, dedicated to working together
to provide highly relevant information
and services to users of our products
and services, and delivering value based
results to our clients.
• Operational Excellence: continually
seeking, identifying and implementing
operational efficiencies.
• Product and service innovation:
through research and market feedback,
continually seeking, identifying and
introducing innovative new products
and services to ensure we remain at the
leading edge of the travel and media
markets.
Our team has applied these three
principles during the year and,
as a result, we have experienced
a measurable improvement in
fundamental business performance.
We have improved our cash position,
increased our gross percentage margin
and after one off adjustments our
underlying operating profit is slightly
down on that recorded the year before.
In the year ahead we expect to more
than hold our own in what is a very
tough market. Management have
budgeted for a net profit before tax
of $482,000 but directors accept that
market forces outside the company’s
control may have an impact.
It’s easy to become overwhelmed
by raging economic forces overseas.
There is no quick fix and New Zealand
is wriggling its way through the
challenges. Accordingly, we must
all tailor our strategic direction and
activities to a new way of business
and life. The team at Jasons is taking
a highly pragmatic approach and
will continue to play a vital role in
enabling the businesses we deal with to
understand, manage and cope with the
challenges they face.
Jasons role is to connect local, regional
and national tourism offerings to
the visitor market. We continue to
thrive when we help our customers
collectively market themselves to
travellers.
Jasons keeps a constant eye, through
research and market feedback, on
travellers’ information needs and
sources. Our content is constantly
being reviewed and updated to fulfill
consumer needs and create business
opportunities for our partners. Our
channels to market are constantly being
researched, reviewed and assessed,
confirming that our dual media
approach of digital and ink-on-paper
solutions is a powerful mix. Despite
occasional comments that “print is
dead”, research and market feedback
proves the travel market continues to
access information through both digital
and physical channels. According to the
Ministry of Economic Development’s
Regional Visitor Monitor Survey (Jun
03
INTS (SHOWN AS $NZ)
Dunham Point © Michelle Sh
ANNUAL PERFORMANCE: KEY PO
)
TDA) $1.330m (last year $1.720m
• End-of year operating profit (EBI
$485,000)
• After-tax profit $92,000 (last year
m)
907
$13.
year
• Revenue $12. 282m (last
:
• Non -cash adjustments
-down
– $353,000 intangible asset write
e claim
Christchurch earthquake insuranc
ard
tow
ual
accr
– $100,000 partial
$7.288m)
• Gross margin $7.358m (last year
,000
• Debt reduction $525
loss)
re tax $98,000 (last year $159,000
• Jasons Australian net profit befo
Chairman’s report (…continued)
11), 66.7% of international travellers
seeking information pre arrival utilised
print and 70.6% utilised online sources.
This is not to say that we’re taking our
eyes off digital. It’s just to highlight that,
for now, for Jasons, based on research
and market feedback, print and digital
channels are both important.
both organic and by acquisition. The
acquisition, of Queenstown Airport
Brochure Distribution in October last
year has proven very worthwhile. In
the meantime we are applying cash
to reduce debt. Building up capital
reserves is a priority and the Board has
consequently resolved not to pay a
dividend for this year.
JASONS AUSTRALIA &
JASONS SOUTH PACIFIC
The last financial year has also seen key
changes at board level. We sincerely
thank directors Mike Simm and Scott
Bradley, who stood down last year,
for their significant contribution to
the Jasons business. Mike had been
a director, our Deputy Chairman and
Chairman of our Audit Committee for
nine years. Scott served the company
for two years and made a major
contribution to our digital and sales
strategies. We also acknowledge the
significant contribution of Geoff Burns
who stepped down as Chairman of our
board in March after almost 10 years.
Geoff has remained a director and is
now Deputy Chairman. After founding
the company and serving six years as
a director since we listed on NZAX, I
have been elected Chairman. James
(Jamie) Hall joined the board in April,
and is already making a significant and
valued contribution utilising his strong
services business background and
comprehensive understanding of global
business activities.
Australia relies on New Zealand for its
largest visitor inflow and vice versa.
Both countries represent the single
biggest tourism source for the South
Pacific Islands. Because of these intermarket synergies, we continue to regard
all three as important places of activity
for our business.
Until two years ago our Australian
division had begun recording growing
losses. Last year we aggressively
addressed opportunities to become
more efficient and this year Jasons
Australia made a small profit.
Jasons South Pacific is in a fairly mature
market position, continues to be
profitable and we are constantly seeking
further opportunities for improvement.
THE YEAR AHEAD
Over the coming year we will continue
to actively seek opportunities for
growth particularly in New Zealand and
Australia. Growth opportunities will be
04 Annual Report 2012
The departure of our former CEO
Matthew Mayne in April last year,
while unexpected, provided the Board
with the opportunity to take a fresh
look at the entire Jasons operation.
The appointment of Kevin Francis
as CEO in October led to a major
company reorganisation to serve the
rapidly changing information needs
of our clients and consumers. Kevin’s
proven business skills combined
with his extensive information
technology, digital marketing and
telecommunications experience is
already making a positive impact on our
business.
Thank you for your valuable and
continued support. Rest assured we are
firmly focused on growing the value
of the Jasons business for you, our
shareholder.
John Sandford, Chairman
Chief executive’s report
It gives me great pleasure to present
the 2011/12 Annual Report to Jasons
shareholders, my first since joining the
company in October 2011.
The last financial year has been a
challenging one for Jasons. The series
of unfortunate events in Christchurch
had a direct impact on both our
tourism brochure distribution network
and our monthly city visitor guide
Christchurch What’s On. These matters
constitute an outstanding claim with
our insurers. While dealing with events
in Christchurch, the company continues
to be impacted by the region-wide
effects of a worldwide economic
downturn. We have risen to these
challenges by taking a close look at our
business and spending time and effort
gaining a better understanding of what
our consumers and advertisers want.
We now have a clearer vision of what
we are versus what we’re not, have
identified and implemented strategies
to better market our strengths, and
streamlined and restructured internally
to become more efficient and costeffective.
At 45 years old, Jasons is almost
an institution in New Zealand. The
company’s transition from a private
family business established in 1967 to
its listing as a public company in 2005
is testament to the energy and foresight
of its founder and current chairman,
John Sandford. Today, Jasons prints
more than 5.7 million copies of 78 free
directories and guides each year, and
attracts more than five million visitors
a year to its website. The company
operates from five locations, maintains
more than 4800 distribution outlets
and runs a suite of complementary
integrated print, online and digital
products and services.
The key to Jasons longevity, I believe,
is its people and their ability to reach,
understand and respond to those they
serve. Last year, we commissioned
formal research to learn more about
the Jasons customers’ journey, allowing
our sales and marketing teams to
put hard facts and figures behind our
business. We wanted to know more
about the motivating factors behind
consumer behavior and how best to
match and serve our advertisers needs
within a subdued tourism sector. Since
then we have reformatted a number of
our guides, introduced a new design
for business listings and have made
new editorial changes to better target
consumers.
As a result of our own and other
industry research, Jasons is taking
a leading position in helping
advertisers understand the multimedia
environment, debunk digital myths and
provide good quality information so
that they can plan and position their
marketing and sales campaigns more
effectively. The landscape has never
been more fragmented with increasing
numbers of competitors chasing
advertising budgets.
Jasons tourism brochure distribution
business has been our primary growth
component and we have continued
to invest in this channel. A new ‘real
time’ warehouse management system
rolled out in 2012 allows us to track
each product, evaluate advertisers’
distribution strategies and recommend
potential efficiencies and cost-savings
associated with their own printing and
distribution processes. In addition, the
acquisition of the Queenstown Airport
brochure distribution service has
translated to a growth in sales.
The accommodation sector continues
to bear the brunt of the tourism
downturn, with motel operators, in
particular, seeing revenue again fall
sharply. Certain areas of New Zealand
and Australia have suffered a downturn
in excess of 30%. In contrast, the
Holiday Park sector remains resilient
and we continue to diversify our
revenue streams to mitigate against
these cyclical downturns.
Last year, we established a New Zealand
Advisory Panel of motel operators
and industry leaders to help us keep
on top of what our advertisers were
experiencing and to better understand
how to match consumers needs to
advertising and marketing plans. In
response to consumer demand, we
launched new iPhone and iPad apps:
The Jasons iPhone app has now been
downloaded more than 5000 times
from 43 countries, and our NZ online
travel websites continue to attract
more than five million visitors a year.
Based on the Ministry of Economic
Development’s Regional Visitor Monitor
Annual Survey June 11, www.jasons.
com was the most visited travel web site
from overseas travellers (outside New
Zealand and Australia) researching and
planning their visits to New Zealand.
Over the next financial year Jasons will
implement further enhancements to
further integrate and bring to market
new products and services. We intend
to improve our print products, extend
our tourism brochure distribution
business and lift our online and digital
presence.
Finally, I’d like to say thank you to all
my dedicated and hard working staff
who have made the transition into
the industry so much easier and more
enjoyable for me.
Kevin Francis, CEO
When our clients succeed, we succeed.
05
Directors’ report (year ended 31 march 2012)
Your directors are pleased to submit
to you, our shareholders, the annual
report and financial statements of
Jasons Travel Media Limited for the
year ended 31 March 2012.
PRINCIPAL ACTIVITIES
Jasons Travel Media Limited is a New
Zealand-based multi-media publishing
business specialising in travel and
tourism. It is publicly listed on the NZAX
board of the New Zealand Exchange
(NZX) under the issuer code JTM.
The Jasons group head office is
in Auckland. Jasons Australian
office is located in Brisbane. The
company has distribution centres in
Auckland, Rotorua, Christchurch and
Queenstown.
DIVIDEND
Further to the half-year announcement,
although the business is profitable, the
Board has decided not to pay a dividend
to continue self-funded investment for
future growth of the business.
DIRECTORS
Nick Baylis was appointed as a director
on 1 April 2011. Mike Simm resigned
on 24 August 2011 and Scott Bradley
resigned on 21 December 2011. James
(Jamie) Hall was appointed a director
and joined the board on 2 April 2012.
CORPORATE
GOVERNANCE
employees. The board works to ensure
the integrity of internal controls and
information systems.
The Rees Limited
The board comprises four nonexecutives. Accordingly, the chairman
and deputy chairman are non-executive
members of the board.
Brightwater Group Ltd
M.W. SIMM:
Chairman
Top Energy Ltd
Deputy Chairman
J.D. SANDFORD:
THERE ARE TWO BOARD
COMMITTEES:
Zabex Ltd
Audit – John Sandford and Mike Simm
(to August 2011), Geoff Burns and John
Sandford (September 2011 to March
2012), Geoff Burns and Jamie Hall
(from April 2012)
Fero Ltd
Director
John Sandford Ltd
Director / shareholder
Director
Ameku Trust
Trustee
Destination Coromandel Trust
Trustee
This committee assists the board’s
oversight of the company’s financial
statements, financial reporting
processes, internal accounting systems,
financial controls, external annual audit,
risk identification and management.
New Zealand Institute of Management
Remuneration – Geoff Burns and Mike
Simm to August 2011. Geoff Burns and
John Sandford from September 2011
Born Digital Ltd
This committee assists the board by
establishing remuneration policies and
practices for directors, executives and
employees.
Vouchermob Ltd
Board Member
PATA New Zealand Trust
Trustee
Harbour Access Trust
Trustee
S. BRADLEY
Director / shareholder
Sharbo Ltd
Director / shareholder
Director / shareholder
NICK BAYLIS
Brandology Ltd
Director/ shareholder
DISCLOSURE OF
INTERESTS BY DIRECTORS
Wimpy (NZ) Ltd
In accordance with section 140(2) of the
Companies Act 1993 the directors have
made general disclosure of interests by
way of general notice disclosed to the
board and entered into the company’s
interest register, as follows:
Vital Technologies Ltd
The board is responsible for the longterm growth and profitability of the
company. It charts the direction of the
business and monitors management
performance on behalf of shareholders.
G.D. BURNS:
The board ensures the company
is engaged in appropriate strategic
planning, operational monitoring, risk
management and evaluation of key
Chairman / shareholder
06 Annual Report 2012
Chairman
Fernmade Ltd
Director / shareholder
First Tee of New Zealand Inc.
Director
Magic Memories Group Ltd
MM Media Limited
Chairman / shareholder
Southwest Greens New Zealand Ltd
Director / shareholder
Director/ shareholder
Good Idea Ltd
Director/ shareholder
Director/ shareholder
Post New Ltd
Director/ shareholder
Post Creative Ltd
Director/ shareholder
Post Brand Ltd
Director/ shareholder
Post Design Ltd
Director/ shareholder
Post Experiences Ltd
Director/ shareholder
Post PR Ltd
Director/ shareholder
Post Interactive Ltd
Director/ shareholder
Auckland City from Waiheke © Uros Zuraj
BOARD MEETING ATTENDANCES
BOARD
AUDIT
REMUNERATION
G.D. Burns
10
1
1
J.D. Sandford
10
2
2
8
1
1
2
2
M. Simm
S. Bradley
8
N. Baylis
10
Meetings held
10
Audit committee: M.W. Simm, Geoff Burns, J.D. Sandford | Remuneration committee: G.D. Burns, M.W. Simm, J.D. Sandford
DIRECTORS’ SHAREHOLDINGS
2012
DIRECTLY
2012
ASSOCIATED
PERSONS
2011
DIRECTLY
2011
ASSOCIATED
PERSONS
The number of fully paid shares held at 31 March 2012 was:
G.D. Burns
-
623,333
-
623,333
J.D. Sandford
-
4,313,998
-
6,313,998
CLASS
DATE OF DISPOSAL
NO OF SHARES
DISPOSED OF
CONSIDERATION
RECEIVED
Ordinary
14/03/12
2,000,000
$400,000
2,000,000
$400,000
SHARE DEALINGS BY DIRECTORS
DIRECTOR
J.D. Sandford
The Directors have advised the board that, there have been no acquisitions or disposals of relevant interests in ordinary shares
during the 12 months ended 31 March 2012 other than the share dealing described above.
07
Directors’ report (…continued)
USE OF COMPANY INFORMATION
During the year the Board received no notices from directors of the company requesting to use company information
received in their capacity as directors, which would not otherwise have been available to them.
DIRECTORS’ REMUNERATION
DIRECTORS’ FEES
2012
$’000S
OTHER SERVICES
2012
$’000S
The total value of directors’ remuneration, including non-monetary benefits paid or payable during the year was:
G.D. Burns
45
-
M.W. Simm
13
-
J.D. Sandford
30
101
S. Bradley
23
-
N. Baylis
30
18
Service fees charged to the group by J Sandford and N Baylis, through their business entities, were under commercial terms
and conditions at fair market value.
EMPLOYEES’ REMUNERATION
GROUP
2012
PARENT
2012
100-110
1
1
110-120
1
1
120-130
3
3
130-140
2
2
140-150
1
1
170-180
1
1
180-190
1
1
190-200
1
1
The number of employees whose remuneration exceeded $100,000 was:
$’000s
DONATIONS: A donation of $2,621 was made during the year.
DIRECTORS INSURANCE: The company has arranged a Directors and Officers Liability Insurance policy for the benefit of
directors and officers, under normal commercial terms. In general, the policy will indemnify the insured against monetary loss
incurred for their actions as directors and officers.
G.D. Burns
J. Sandford
Director
Date
08 Annual Report 2012
Chairman
30 July 2012
Date
30 July 2012
Maraetai Wharf © Gary Chan
Statutory disclosures relating to shareholders
20 LARGEST SHAREHOLDERS AS AT 20 JUNE 2012
HOLDER NAME
HOLDING
PERCENTAGE
Zabex Limited
4,313,998
21.75%
ASB Nominees Limited
2,271,994
11.46%
Jamsue Pty Ltd
2,000,000
10.08%
JSS Richardson
1,505,178
7.59%
Accident Compensation Corporation
942,429
4.75%
CG Giffney
875,000
4.41%
MW Simm & D Nicoll
863,333
4.35%
Fernmade Limited
623,333
3.14%
Don Nominees Limited
587,500
2.96%
Custodial Services Ltd
473,332
2.39%
RE Lee
421,297
2.12%
C Adams & S Baldacci
325,843
1.64%
JA Cornwall & EM Rennie
291,666
1.47%
G McIntyre
250,000
1.26%
JG Stubbs
250,000
1.26%
Philson Investments Ltd
235,756
1.19%
AB Newton Gray & HE Newton Gray
219,017
1.10%
Kenamon Investments Limited
186,000
0.94%
Spartik Trustee Company Ltd
150,000
0.76%
Alan Bruce Barwick
141,894
0.72%
Top 20 holders
16,927,570
85.35%
Total on issue
19,833,333
09
Raglan © Aaron Radford-Miller
Statutory disclosures relating to shareholders (…continued)
ANALYSIS OF SHAREHOLDING BY RANGE AS AT 20 JUNE 2012
HOLDING RANGE
200 to 499
500 to 999
HOLDER
COUNT
HOLDER
COUNT
%
HOLDING
QUANTITY
HOLDING
QUANTITY
%
1
0.49%
333
0.00%
1
0.49%
900
0.00%
1,000 to 1,999
14
6.80%
17,578
0.09%
2,000 to 4,999
40
19.42%
149,467
0.75%
5,000 to 9,999
43
20.87%
294,067
1.48%
10,000 to 49,999
77
37.38%
1,551,062
7.82%
50,000 to 99,999
6
2.91%
437,651
2.21%
100,000 to 499,999
15
7.28%
3,399,510
17.14%
500,000 to 999,999
5
2.43%
3,891,595
19.62%
1,000,000 to 99,999,999
4
1.94%
10,091,170
50.88%
Total
10 Annual Report 2012
206
100.00%
19,833,333
100.00%
Auditor’s Report
INDEPENDENT AUDITOR’S REPORT
TO THE SHAREHOLDERS OF JASONS TRAVEL MEDIA LIMITED
Report on the Financial Statements
We have audited the financial statements of Jasons Travel Media Limited and its subsidiary on pages 12 to 33, which comprise
the group and parent balance sheets of Jasons Travel Media Limited as at 31 March 2012 and the group and parent statements
of comprehensive income, statements of changes in equity and statement of cashflows for the year then ended, and a
summary of significant accounting policies and other explanatory information.
Directors’ Responsibility for the Financial Statements
The directors are responsible for the preparation of these financial statements in accordance with generally accepted
accounting practice in New Zealand and that give a true and fair view of the matters to which they relate and for such internal
control as the directors determine is necessary to enable the preparation of financial statements that are free from material
misstatement, whether due to fraud or error.
Auditor’s Responsibility
Our responsibility is to express an opinion on these financial statements based on our audit. We conducted our audit in
accordance with International Standards on Auditing (New Zealand). Those standards require that we comply with ethical
requirements and plan and perform the audit to obtain reasonable assurance about whether the financial statements are free
from material misstatement.
An audit involves performing procedures to obtain audit evidence about the amounts and disclosures in the financial
statements. The procedures selected depend on the auditor’s judgement, including the assessment of the risks of material
misstatement of the financial statements, whether due to fraud or error. In making those risk assessments, the auditor
considers internal control relevant to the entity’s preparation of financial statements that give a true and fair view of the
matters to which they relate in order to design audit procedures that are appropriate in the circumstances, but not for the
purpose of expressing an opinion on the effectiveness of the entity’s internal control. An audit also includes evaluating the
appropriateness of accounting policies used and the reasonableness of accounting estimates, as well as evaluating the overall
presentation of the financial statements.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our audit opinion.
An associated company, Hayes Knight (LVDH) Limited, carries out other assignments for Jasons Travel Media Limited in the
area of sundry taxation advice and company secretarial matters. Hayes Knight Audit NZ and its associates have no other
relationships with, or interests in, Jasons Travel Media Limited or its subsidiary.
Opinion
In our opinion, the financial statements on pages 12 to 33:
• Comply with generally accepted accounting practice in New Zealand;
• Give a true and fair view of the financial position of Jasons Travel Media Limited and the group as at 31 March 2012 and their
financial performance and cash flows for the year then ended.
Report on Other Legal and Regulatory Requirements
In accordance with the Financial Reporting Act 1993, we report that:
• We have obtained all the information and explanations that we have required; and
• In our opinion proper accounting records have been kept by Jasons Travel Media Limited as far as appears from our
examination of those records.
HAYES KNIGHT AUDIT NZ
Auckland, New Zealand
30 July 2012
11
Lake Wakatipu 2 © Gary Chan
Financial statements (year ended 31 march 2012)
STATEMENT OF COMPREHENSIVE INCOME
(For the year ended 31 March 2012)
Note
GROUP
2012
$’000S
PARENT
2012
$’000S
GROUP
2011
$’000S
PARENT
2011
$’000S
3
12,282
11,201
13,907
12,676
4,924
4,276
6,619
5,695
7,358
6,925
7,288
6,981
144
144
2
2
Distribution expenses
2,449
2,322
2,678
2,429
Administrative expenses
3,723
3,520
2,892
2,690
Earnings before interest, tax and depreciation
1,330
1,227
1,720
1,864
752
745
620
613
Sales
Cost of sales
Gross profit
Other income
3
Depreciation
Impairment charge
223
223
-
-
Earnings before Interest and tax
355
259
1,100
1,251
Interest
259
261
315
306
96
(2)
785
945
Operating profit before taxation
4
Income tax expense
5
Net profit after taxation
4
4
300
300
92
(6)
485
645
22
-
(53)
-
114
(6)
432
645
Other comprehensive income
Movement in foreign currency translation reserve
1.3.10
Total comprehensive income
Earnings per share:
Basic earnings per share (cents)
21
0.5
(0.0)
2.4
3.3
Diluted earnings per share (cents)
21
0.5
(0.0)
2.4
3.3
The accompanying notes form part of these financial statements.
12 Annual Report 2012
STATEMENT OF CHANGES IN EQUITY
(For the year ended 31 March 2012)
SHARE
CAPITAL
$’000S
FOREIGN
CURRENCY
TRANSLATION
RESERVE
$’000S
RETAINED
EARNINGS
$’000S
TOTAL
EQUITY
$’000S
8,485
(355)
(4,730)
3,400
Profit for the period
_
_
485
485
Foreign exchange gain/(losses) on overseas operations net of tax
_
(53)
_
(53)
Total comprehensive income for the period
_
(53)
485
432
Dividends paid
_
_
(198)
(198)
Balance as at 31 March 2011
8,485
(408)
(4,443)
3,634
As at 1 April 2011
8,485
(408)
(4,443)
3,634
-
-
92
92
Group
As at 1 April 2010
Profit for the period
Foreign exchange gain/(losses) on overseas operations net of tax
-
22
-
22
Total comprehensive income for the period
-
22
92
114
Dividends paid
-
-
-
-
8,485
(386)
(4,351)
3,748
_
_
_
_
Balance as at 31 March 2012
Parent
As at 1 April 2010
8,485
-
(4,415)
4,070
Profit for the period
-
-
645
645
Total comprehensive income for the period
-
-
645
645
Dividends paid
-
-
(198)
(198)
Balance as at 31 March 2011
8,485
-
(3,968)
4,517
As at 1 April 2011
8,485
-
(3,968)
4,517
Profit for the period
-
-
(6)
(6)
Total comprehensive income for the period
-
-
(6)
(6)
Dividends paid
Balance as at 31 March 2012
-
-
-
-
8,485
-
(3,974)
4,511
The accompanying notes form part of these financial statements.
13
Financial statements (…continued)
BALANCE SHEET
(As at 31 March 2012)
Note
GROUP
2012
$’000S
PARENT
2012
$’000S
GROUP
2011
$’000S
PARENT
2011
$’000S
14
2,390
1,914
2,358
1,728
735
493
692
558
Current assets
Trade and other receivables
Cash and cash equivalents (incl advances)
Tax refund
Jasons Travel Media Pty Ltd
Inventory/WIP
5
24
24
-
-
13
-
1,262
-
1,342
1.3.3
Total current assets
457
430
412
387
3,606
4,123
3,461
4,015
Non-current assets
Property, plant and equipment
17
612
579
770
733
Other intangible assets
18
460
460
588
588
Deferred tax asset
5
135
135
139
139
Goodwill
9
4,797
4,797
4,783
4,783
Total non-current assets
6,004
5,971
6,280
6,243
Total assets
9,610
10,094
9,741
10,259
Current liabilities
Hire purchase liabilities
6
118
118
39
39
Borrowings
7
1,975
1,975
2,500
2,500
743
551
983
710
Trade and other payables
Employee entitlements
GST & FBT payable
Provision for tax
Funds received in advance
15
320
289
356
317
1.3.4
56
-
93
40
5
-
-
18
18
1.3.6
Total current liabilities
633
633
180
180
3,845
3,566
4,170
3,805
142
142
62
62
Non-current liabilities
Hire purchase liabilities
6
Borrowings
7
1,875
1,875
1,875
1,875
Total non-current liabilities
2,017
2,017
1,937
1,937
Total liabilities
5,862
5,583
6,107
5,742
Net assets
3,748
4,511
3,634
4,517
8,485
8,485
8,485
8,485
Equity
Issued capital
Retained earnings
(4,351)
(3,974)
(4,443)
(3,968)
Reserves
(386)
-
(408)
-
Total equity
3,748
4,511
3,634
4,517
Director
Chairman
The accompanying notes form part of these financial statements.
14 Annual Report 2012
Date
30 July 2012
STATEMENT OF CASH FLOWS
(For the year ended 31 March 2012)
Note
GROUP
2012
$’000S
PARENT
2012
$’000S
GROUP
2011
$’000S
PARENT
2011
$’000S
12,479
11,237
13,760
12,483
362
362
-
-
-
-
4
4
Cash flows from operating activities
Cash was provided from:
Receipts from customers
Receipts from reservation customers
Sundry Income
Interest received
-
-
2
2
12,841
11,599
13,767
12,489
11,389
10,355
12,110
10,664
Interest paid
273
273
307
306
Income tax
40
40
351
351
11,702
10,668
12,768
11,321
1,139
931
999
1,169
Cash was applied to:
Payments to suppliers & employees
Net cash inflow (outflow) from operating activities
20
Cash flows from investing activities
Cash was provided from:
Sale of property, plant & equipment
-
-
-
-
-
-
-
-
(521)
(521)
(741)
(736)
(20)
(20)
(1)
(1)
Cash was applied to:
Purchase of PP&E and other intangibles
Business acquisition
Intercompany funds advanced
Net cash inflow (outflow) from investing activities
-
80
-
(335)
(541)
(461)
(742)
(1,072)
(541)
(461)
(742)
(1,072)
(525)
(525)
525
525
(525)
(525)
525
525
Cash flows from financing activities
Cash was provided from:
Loans
Cash was applied to:
Payment of dividends
-
-
(198)
(198)
-
-
(198)
(198)
(525)
(525)
327
327
73
(55)
584
424
Add cash at beginning of year
692
558
125
145
Foreign exchange movement
(30)
(10)
(17)
(11)
Balance at end of year
735
493
692
558
Net cash inflow (outflow) from financing activities
Net increase (decrease) in cash balances
Comprised of:
Cash and cash equivalents
735
493
692
558
735
493
692
558
The accompanying notes form part of these financial statements.
15
Cathedral Cove © Nick Hear
Notes to the financial statements
1. STATEMENT
OF SIGNIFICANT
ACCOUNTING POLICIES
1.1 Reporting Entity:
Jasons Travel Media Limited (JTM) is
a public company, incorporated in
New Zealand and registered under the
Companies Act 1993. It is listed with the
New Zealand Stock Exchange on the
NZAX board.
JTM is a reporting entity for the
purposes of the Financial Reporting Act
1993. These Financial Statements have
been prepared in accordance with the
Financial Reporting Act 1993 and the
Companies Act 1993.
The Group comprises the operating
entities JTM and its wholly owned
subsidiary, Jasons Travel Media Pty
Limited (JTM Pty), ACN 010 336 080,
registered and operating in Australia.
JTM Pty was acquired in April 2005.
JTM also owns 100% of non-operating
entities Visitorpoint Ltd (acquired in
2006), Southern Brochure Distribution
Ltd (acquired in 2007), Today & Tonight
Ltd (acquired in 2007) and Carlton
Tourism Promotions Ltd (acquired in
2007). Southern Brochure Distribution
Ltd in turn owns 50% of a joint venture
business, Southern Brochure Services
Ltd.
The directors do not have the power to
amend these financial statements once
issued.
16 Annual Report 2012
1.2 Measurement Base and Basis of
Preparation:
These financial statements have been
prepared in accordance with New
Zealand GAAP. They comply with
the requirements of NZ Equivalents
to International Financial Reporting
Standards (NZ IFRS), and the
requirements of International Financial
Reporting Standards. The group is
designated as a profit-oriented entity for
the purposes of NZ IFRS.
This is the fifth annual report for the
group prepared under the requirements
of NZ IFRS. All accounting policies have
been consistently applied for all periods
presented in these financial statements.
The measurement base adopted is
historical cost, unless otherwise stated.
Amounts have been rounded to the
nearest $’000s in NZ dollars.
1.3 Specific Accounting Policies:
The following specific accounting
policies which materially affect the
measurement of financial performance
and financial position have been
applied. Unless otherwise stated, these
policies are consistent with those
applied in the last annual report dated
31 March 2011.
1.3.1 Property, Plant & Equipment
Property, Plant and Equipment (PP&E)
are stated at cost less aggregate
depreciation. Depreciation has been
calculated using the diminishing value
method over the estimated useful life of
the asset.
Furniture & Fittings 11.5% - 31.2% DV
Computer Hardware 20.0% - 60.0% DV
Leasehold Alterations 20.0% - 21.6% DV
Motor Vehicles
21.6% - 36.0% DV
Plant & Equipment 11.4% - 60.0% DV
If the recoverable amount of an
item of PP&E is less than its carrying
amount, the item is written down to its
recoverable amount. The write-down
of an item recorded at historical cost is
recognised as an expense in profit or
loss for the period. When a revalued
item is written down to recoverable
amount, the write-down is recognised
as a downward revaluation to the
extent of the corresponding revaluation
reserve and any balance recognised in
the income statement. The carrying
amount of any item of PP&E, that
has previously been written down to
recoverable amount, is increased to
its current recoverable amount if there
has been a change in the estimates
used to determine the write-down. The
increased carrying amount of the item
will not exceed the carrying amount
that would have been determined if the
write-down to recoverable amount had
not occurred.
Reversals of impairment write-downs
are accounted for as follows:
- On PP&E that are not revalued, the
reversal is recognised in the profit or
loss; and
- On revalued PP&E the reversal is
recognised as an upward revaluation.
1.3.2 Accounts Receivable
Accounts Receivables are stated at
expected realisable values, being the
historical cost less an allowance for
doubtful debts. The allowance for
doubtful debts is based upon historical
trends of non-recovery and specific
at-risk accounts, based upon current
collection activity.
the leased items, are expensed in equal
instalments over the lease term. Leases
under which the company assumes
substantially all the risks and rewards
incidental to ownership are treated as
finance leases and capitalised.
1.3.6 Revenue Recognition
Interest income is recognised using the
effective interest rate method.
Collection of trade receivables is
reviewed on an ongoing basis in respect
to the debtors. An impairment loss is
recognised when there is objective
evidence that the company will not be
able to collect the receivable, which
is due to either financial difficulties of
the debtor, default payments or debts
that are more than 60 days overdue.
Collective provisioning is made for
debtors not individually impaired based
on historical collection experience.
Deposits are received from customers
upon placement of advertising orders.
Deposits are credited to a “Deposits
in Advance” account. Contracts
are irrevocable once signed. Upon
completion and invoicing of the
relevant publication and/or updating to
the website, deposits are recognised
as income and transferred to sales.
Web income that is not linked to a
publication is recognised in the period it
is published on the website.
1.3.3 Work in Progress
Work in Progress includes costs
incurred in bringing a publication into
print or onto the website, at which point
income is recognised and costs are
expensed against the income. These
costs include the costs of direct labour
and relevant overheads associated with
production, including a proportion of
selling costs relating to these future
publications, as is the industry norm.
Funds are received for booking of
accommodation by the customers
through Jasons website. These funds
are kept in a separate bank account
and passed on to the accommodation
provider upon check out by the
customers. Commission is received for
online reservations from non Jasons
advertisers and commission revenue
is recognised as revenue upon date of
check out.
1.3.4 Goods and Services Tax
1.3.7 Income Tax
These Financial Statements have been
prepared on a GST exclusive basis.
The Income tax expense charged to
the profit or loss includes both the
current year’s provision and the income
tax effects of temporary differences
calculated using the liability method.
The expense includes the effect of
adjustments to the operating surplus
for permanent differences between
1.3.5 Leases
The business leases certain land and
buildings. Operating lease payments,
where the lessor retains substantially all
the risks and benefits of ownership of
taxation and accounting rules.
Tax effect accounting has been
applied on a comprehensive basis
to all temporary differences. A debit
balance in the deferred tax account,
arising from temporary differences or
taxation benefits from taxation losses,
is recognised where it is probable that
future taxable profits will be available
against which the asset can be utilised.
Deferred tax assets and liabilities are
not offset if they arise in different tax
jurisdictions. Any unrecognised deferred
tax assets are re-assessed annually.
1.3.8 Business Combinations and
Goodwill
All business combinations are
accounted for by applying the purchase
method.
Under the purchase method, goodwill
is recognised as the difference between
the cost of the acquisition and the fair
value of identifiable assets at the date of
acquisition.
Goodwill is tested for impairment
annually and reviewed at each reporting
date, or at any time there are indications
of impairment.
For the purposes of impairment testing,
goodwill is allocated to cash generating
units. Cash-generating units are the
primary reporting segments of each
country of operation, i.e. New Zealand
and Australia.
1.3.9 Other Intangible Assets
Intangible assets (other than goodwill)
are recognised where a future
economic benefit attributable to the
asset will flow to the business and
the cost can be reliably measured.
17
Notes to the financial statements (…continued)
Intangible assets are recorded at cost
and amortised on a diminishing value
basis over their estimated useful lives,
or reviewed periodically for impairment
(annually, or whenever there is evidence
of impairment) if their life is indefinite.
Amortisation has been charged
consistently with prior years using the
following rates:
Computer Software 48.0% - 60.0% DV
Other intangible
48.0% - 60.0% DV
separate financial statements,
investments in subsidiaries are stated at
cost less any impairment losses.
1.3.12 Statement of Cash Flows
For the purposes of the Statement
of Cash Flows, cash includes cash
balances (net of bank overdrafts) and
overnight deposits. Cash excludes short
term bank bills that are not part of daily
cash management.
Development costs of systems and
the website www.jasons.com are
recorded as intangible assets, as is other
computer software and licences, other
than where they form an integral part of
related computer hardware.
Operating activities comprise all
activities and events that are not
investing or financing activities.
Investing activities comprise activities
relating to the holding or disposal
of fixed assets, and investment in or
advances to subsidiaries. Financing
activities are those activities relating to
changes in the equity or borrowings of
the business.
1.3.10 Foreign Currencies
1.3.13 Provision for Dividends
The consolidated financial statements
are presented in New Zealand dollars,
being the currency of the economic
environment in which the parent
entity primarily operates (its functional
currency). The functional currency of
JTM Pty is Australian dollars.
Dividends are recognised in the period
they are authorised and declared.
Salary costs associated with the
development of the website have been
capitalised.
The assets and liabilities of JTM Pty
were translated at the exchange rate
ruling at balance date. Revenues
and expenses were translated at an
estimated average rate throughout the
period. Exchange differences arising
on the translation of JTM Pty are
accumulated in the foreign currency
translation reserve, and recognised in
other comprehensive income.
Transactions in foreign currencies are
converted at the New Zealand rate
of exchange ruling at the date of the
transaction. At balance date foreign
monetary assets and liabilities are
translated at the closing rate. Exchange
variations arising from these translations
are included in the profit or loss.
1.3.11 Basis of Consolidation
The Group Financial Statements
have been prepared using the
purchase method of consolidation. All
significant intercompany transactions
and balances were eliminated on
consolidation. In the parent company’s
18 Annual Report 2012
1.3.14 Employee Benefits
Employee entitlements to wages &
salaries, bonuses, holiday leave and sick
leave are provided for if payable within 12
months of the year end. These represent
present obligations for services provided
up to the reporting date.
Entitlements to Long Service Leave
(JTM Pty only) are accrued on a prorata basis after 5 years continuous
service, although usually payable only
after 10 years continuous service. For
long service leave the liability is equal
to the present value of estimated future
cash outflows as a result of employee
service provided at balance date.
1.3.15 Provisions
Provisions are liabilities of uncertain
timing or amount, recognised when the
Group has a present obligation based
on past events and it is probable that
economic resources will be required
to meet the obligation, which can be
reliably measured.
The amount recognised as a provision
is management’s best estimate of
the present value of the expenditure
required to settle the obligation, at
balance date.
1.3.16 Research & Development
Expenditure on research is recognised
in the income statement as an expense
when it is incurred.
Expenditure on development activities
is capitalised only to the extent it relates
to a commercially feasible product or
service and sufficient resources are
available to complete development.
Otherwise the expenditure is recognised
as an expense when it is incurred.
1.3.17 Financial Instruments
Financial Instruments are recognised
in the balance sheet when the group
becomes party to a financial contract.
They include cash balances, bank
overdrafts, receivables, payables,
investments, loans and term
borrowings. In addition, members
of the group are parties to financial
instruments to meet financing needs
and to reduce exposure to fluctuations
in foreign currency exchange rates.
These financial instruments may include
guarantees of others’ bank overdraft
facilities, swaps, options, forward rate
agreements, and foreign currency
forward exchange contracts.
Financial Assets
The Group classifies all of it’s financial
assets as loans and receivables as they
are non-derivative financial assets with
fixed or determinable payments that are
not quoted in an active market. They are
included in current assets, except for
maturities greater than 12 months after
the end of the reporting period. These
are classified as non-current assets. The
Group’s loans and receivables comprise
‘trade and other receivables’ and ‘cash
and cash equivalents’ in the balance
sheet. The Parent’s financial assets also
include advances made to the subsidiary.
Financial Liabilities
Financial liabilities, including borrowings
and trade payables and accruals, are
initially measured at fair value, plus
directly attributable transaction costs.
Financial liabilities are subsequently
measured at amortised cost using the
effective interest method, with any
interest expense recognised in the profit
or loss for the period.
1.3.18 Borrowing Costs
Borrowing costs are expensed in the
period in which they are incurred,
other than borrowing costs directly
attributable to the acquisition,
production or construction of qualifying
assets, which are capitalised as part
of the cost of the asset. A qualifying
asset is one which necessarily takes a
substantial period of time to get ready
for its intended use or sale.
1.3.19 Judgement and Estimation
Uncertainty
In applying the Group’s accounting
policies, management continually
evaluates judgements, estimates and
assumptions based on experience and
other factors, including expectations of
future events that may have an impact
on the Group. All judgements, estimates
and assumptions made are believed
to be reasonable based on the most
current set of circumstances available to
management. Actual results may differ
from the judgments, estimates and
assumptions. Significant judgements,
estimates and assumptions made by
management in the preparation of
these financial statements are outlined
below.
(i) Significant Accounting Judgements
Impairment of non-financial assets
other than goodwill
The group assesses impairment of
all assets at each reporting date by
evaluating conditions specific to the
Group and to the particular asset that
may lead to impairment. These include
product performance, technology,
economic and political environments
and future product sales expectations.
If an impairment trigger exists, the
recoverable amount of the asset is
determined.
Going concern
The going concern assumption
is adopted based on the forecast
operating cash flows, continued
finance facilities and the ability of the
Group to access further funds through
placements of both debt and / or equity
securities, if the need arises. The Group
has negotiated renewed funding from
the bank during the current year. Please
refer note 7 for details on borrowing.
amount of goodwill and intangibles
with useful lives are discussed in note 9.
Work in progres
Allowance for impairment loss on trade
receivables
The value of work in progress carried
forward, for unpublished work, includes
estimates of production, selling and
overhead costs incurred, by publication,
based on actual costs incurred and
historical experience. This value will
not exceed the net revenue of the
publication.
Recovery of insurance receivables
As a result of the damage to plant and
equipment and business interruptions
caused by the Canterbury earthquakes,
management have made certain
assumptions regarding the estimated
recovery which will result from claims
made on insurance policies.
Negotiations with the insurance
company have commenced and
partial payments have been received
subsequent to balance date. The
company’s claim in respect of damage
to property plant and equipment has
been paid in full, however negotiations
in respect of the business interruption
claim continue. Based on the
indications received from the insurer
and progress payments received to
date, and amount of $137,000 has
been considered to be virtually certain
of recovery at 31 March 2012. The full
value of the insurance claim is in excess
of $200,000, and further amounts
will be recognised as and when these
become virtually certain to be received.
Insurance recoveries are included in
sundry income in note 3.
(ii) Significant Accounting Estimates and
Assumptions
Impairment of goodwill and intangibles
with indefinite useful lives
The Group determines whether
goodwill and intangibles with indefinite
useful lives could be impaired at least
on an annual basis. This requires an
estimation of the recoverable amount
of the cash-generating units to which
the goodwill and intangibles with
indefinite useful lives are allocated. The
assumptions used in this estimation of
recoverable amount and the carrying
Where receivables are outstanding
beyond the normal trading terms,
the likelihood of the recovery of
these receivables is assessed by
management. Assessment is based on
supportable past collection history and
historical write-offs of bad debts. Trade
receivables have been disclosed at the
carrying value in note 14.
Estimation of useful lives of assets
The estimation of the useful lives of
assets has been based on historical
experience. The condition of the assets
is assessed at least once per year and
considered against the remaining
useful life. Adjustments to useful life
are made when considered necessary.
Depreciation charges are included in
note 17.
Website Impairment
Cost previously capitalised into website
development costs have been impaired
in the 2012 financial year after a
review of the carrying value of these
costs was completed, subsequent to
the successful launch of the group’s
website in October 2011.
2. EARNINGS PER SHARE
2.1 Basic Earnings per Share
Basic Earnings Per Share (EPS) is the
profit or loss attributable to ordinary
shareholders of the company divided by
the weighted average number of shares
outstanding during the period.
2.2 Diluted Earnings per Share
Diluted EPS is basic EPS adjusted for
the effects of conversion of convertible
instruments, exercise of options or
warrants, or the issue of ordinary
shares upon the satisfaction of specific
conditions.
There were no adjustments for
dilution of EPS in the current period or
comparative periods. Refer to note 21
for calculations of EPS.
19
Notes to the financial statements (…continued)
3. REVENUE
(All revenues were derived from continuing activities)
Note
Print & web sales
Brochure distribution sales
GROUP
2012
$’000S
PARENT
2012
$’000S
GROUP
2011
$’000S
PARENT
2011
$’000S
9,928
8,847
11,761
10,530
2,354
2,354
2,146
2,146
12,282
11,201
13,907
12,676
4
4
2
2
137
137
-
-
3
3
144
144
2
2
12,426
11,345
13,909
12,678
GROUP
2012
$’000S
PARENT
2012
$’000S
GROUP
2011
$’000S
PARENT
2011
$’000S
Audit fees paid to Hayes Knight Audit NZ
38
38
46
46
Audit fees other, paid to Whitehills (Australia)
16
-
9
-
Total sales
Interest received
Insurance claim
Commission/dividend received
Total sundry income
Total revenue
4. OPERATING SURPLUS BEFORE TAXATION
Note
The operating surplus is stated after charging:
Other assurance fees paid to Hayes Knight (incl
circulation audit)
-
-
7
7
Taxation services fees paid to Hayes Knight
6
6
6
6
60
60
55
52
Impairment of trade receivables
Directors' fees
6
143
137
137
753
745
620
613
Employee benefits
4,623
4,392
5,006
4,621
Printing
2,090
1,759
2,435
2,206
Depreciation and amortisation
17, 18
Loss on sale of fixed assets
Interest and finance charges
Realised exchange rate (gain) loss
-
-
4
4
270
270
315
306
40
10
17
11
Unrealised exchange rate (gain) loss
13
13
(57)
15
Rental and operating lease expenses
523
487
592
539
-
(21)
-
(113)
223
223
-
-
Recharge to Jasons Travel Media Pty Ltd
Impairment charge - website
20 Annual Report 2012
12
5. TAXATION
a. Income Tax Expense
Recognised in the Income Statement
Note
GROUP
2012
$’000S
PARENT
2012
$’000S
GROUP
2011
$’000S
PARENT
2011
$’000S
Current tax expense
Current year
-
-
280
280
-
-
280
280
4
4
11
11
Deferred tax expense
Origination & reversal of temporary differences
Reduction in tax rate
-
-
9
9
4
4
20
20
4
4
300
300
Profit before taxation
96
(2)
785
945
Income tax using the NZ company tax rate
Income tax expense
Reconciliation of effective tax rate (28%/80%)
27
(1)
236
283
Effect of tax rates in foreign jurisdictions
1
-
-
-
Effect of change in tax rate
-
-
9
9
Non deductible expenses
5
5
8
8
Income statement
-
-
(1)
(1)
(29)
-
48
-
4
4
300
300
Tax losses increased / (utilised)
Income tax expense
Deferred tax recognised directly in equity: There was no deferred tax recognised directly in equity (2011: nil).
Current tax assets and liabilities: The current tax asset of $24k (2011: liability of $18k) represents the amount of income taxes
refundable in respect of current and prior periods.
b. Imputation Credits
GROUP
2012
$’000S
PARENT
2012
$’000S
GROUP
2011
$’000S
PARENT
2011
$’000S
916
916
648
648
Income tax paid
40
40
351
351
Other tax credits
2
2
1
1
958
958
1,001
1,001
-
-
85
85
Balance at beginning of the period
Less
Imputation credits attached to dividends paid
Other debit balances
Balance at end of the period
-
-
-
-
958
958
916
916
21
Notes to the financial statements (…continued)
c. Deferred Tax Assets and Liabilities
Recognised Deferred Tax Assets and Liabilities
ASSETS
(GROUP & PARENT)
LIABILITIES
(GROUP & PARENT)
2012
$’000S
2011
$’000S
2012
$’000S
2011
$’000S
Receivables
60
61
-
-
Provisions
75
78
-
-
135
139
-
-
-
-
-
-
135
139
-
-
GROUP
2012
$’000S
PARENT
2012
$’000S
GROUP
2011
$’000S
PARENT
2011
$’000S
-
Deferred assets and liabilities are attributable
to the following:
Tax assets/liabilities
Set off of tax
Net tax assets/liabilities
Unrecognised Deferred Tax Assets and Liabilities
Deferred tax assets have not been recognised in
respect of the following items:
Deductible temporary differences
Tax losses
99
-
112
4,810
-
4,896
4,909
-
5,008
-
The tax losses do not expire under current legislation, subject to shareholder continuity and same business test provisions in
Australia. A deferred tax asset has not been recognised in respect of those losses as it is not probable that taxable profit from
Australian operations will be available in the immediate future against which the losses can be applied.
Movement in Temporary Differences During the Year
GROUP & PARENT
BALANCE
1 APR 11
$’000S
RECOGNISED
IN INCOME
$’000S
RECOGNISED
IN EQUITY
$’000S
BALANCE
31 MAR 12
$’000S
Receivables
61
(1)
-
60
Payables
78
(3)
-
75
139
(4)
-
135
Total
New Zealand company tax rate has reduced from 30% to 28% effective for the 2012 income tax year.
22 Annual Report 2012
6. HIRE PURCHASE OBLIGATIONS
GROUP
2012
$’000S
PARENT
2012
$’000S
GROUP
2011
$’000S
PARENT
2011
$’000S
Gross amount repayable
288
288
118
118
Deferred interest
(28)
(28)
(17)
(17)
Net amount owing at balance date
260
260
102
102
Current portion (owing not later than 1 year)
118
118
40
39
Non current portion (owing within 1 to 5 years)
142
142
62
62
260
260
102
101
Hire Purchase agreements are secured over the assets to which they relate. Interest rates on outstanding agreements apply at
8.74% to 13.50%. The terms of the agreements range from 36 months to 48 months.
7. BANK ADVANCES
GROUP
2012
$’000S
PARENT
2012
$’000S
GROUP
2011
$’000S
PARENT
2011
$’000S
Flexible credit facility
1,350
1,350
1,750
1,750
Term loan
2,500
2,500
2,625
2,625
3,850
3,850
4,375
4,375
The terms of both the FCF and the Term Loan facilities were most recently varied in December 2011.
Bank advances from the ANZ National Bank Limited are secured under a General Security Agreement over all assets and
undertakings of JTM, together with cross guarantees and indemnities between JTM and JTM Pty Ltd. Borrowings have
incurred interest costs in the range of 4.49% to 6.10% in the period (4.70% to 5.72% in 2011), for funding periods of 30 days to 3
months.
Details of borrowings as at 31 March 2012 are as follows:
FINAL
EXPIRY
DUE WITHIN
1 YEAR
$’000S
BETWEEN
1 & 5 YEARS
$’000S
TOTAL
AMOUNT
$’000S
Funding component
Core business funding
1 April 2014
625
1,875
2,500
Flexible credit facility
on demand
1,350
-
1,350
1,975
1,875
3,850
Repayment Schedule for core business funding
due within one year is as follows:
On or before 31 January 2013
On or before 29 February 2013
On or before 30 March 2013
500
0
125
625
23
Notes to the financial statements (…continued)
8. LEASE AND CAPITAL COMMITMENTS
a. Non-cancellable Operating Lease Commitments:
GROUP
2012
$’000S
PARENT
2012
$’000S
GROUP
2011
$’000S
PARENT
2011
$’000S
One year
448
430
431
412
One to five years
896
896
411
407
Later than five years
201
201
-
-
1,545
1,526
842
819
Obligations payable within:
Total operating lease commitment
The lease agreeement for the head office (27 Great South Road Newmarket) has a right of renewal for further 3 years after the
initial term of 6 years.
b. Capital Commitments:
At 31 March 2012 there were no future capital commitments (2011: $nil).
9. GOODWILL
GROUP & PARENT
2012
$’000S
GROUP & PARENT
2011
$’000S
Goodwill at cost or valuation
5,236
5,235
Accumulated amortisation and impairment
(453)
(453)
Opening carrying amount
4,783
4,782
As at 1 April
Business acquisition
13
1
4,797
4,783
Goodwill at cost or valuation
5,249
5,236
Accumulated amortisation and impairment
(453)
(453)
4,797
4,783
Closing carrying amount at year end 31 March
Year ended 31 March
Impairment tests for goodwill
Goodwill is allocated to the group's cash generating units (CGUs)
as indicated below.
New Zealand and the South Pacific Islands
Australia
-
-
4,797
4,783
During the year the company had accquired a distribution business at Queenstown Airport. The company paid $20k for this
acquisition of which $7k was allocated to PP&E (display stands) and $13k was for goodwill.
The recoverable amount of a CGU is determined by value-in-use calculations. These calculations use five year cashflow
projections based on management’s approved financial budgets for next three years and nil annual growth after that. The
approved budgets include revenue growth of 5% to 10% during the three years ending 2015 as a result of the group’s evolving
business model, the main driver of which is increased commissionable online activities and further growth in third party
distribution. Management believes that any reasonably possible change in the key assumptions on which recoverable amount
is based would not cause the carrying amount to exceed its recoverable amount.
24 Annual Report 2012
Cashflows were discounted at a pre-tax discount rate of 10.39% (2011: 12.6%), taking into account the current incremental cost
of borrowing and an allowance for uncertainty. The value-in-use calculation supports the carrying amount of goodwill as at
year end. PP & E have been separately reviewed for impairment, with particular attention paid to the carrying value of assets
greater than 2 years old. No impairment risks have been identified, except for website costs as discussed in Note 1.3.19.
10. CONTINGENT LIABILITIES
The Group and Parent have no material contingent liabilities as at 31 March 2012 (2011: $nil).
11. INVESTMENT IN SUBSIDIARIES
The Group comprises the operating entities JTM and its wholly owned subsidiary, Jasons Travel Media Pty Limited (JTM Pty),
ACN 010 336 080, registered and operating in Australia. JTM Pty was acquired in April 2005. JTM also owns 100% of nonoperating entities Visitorpoint Ltd (acquired in 2006), Southern Brochure Distribution Ltd (acquired in 2007), Today & Tonight
Ltd (acquired in 2007) and Carlton Tourism Promotions Ltd (acquired in 2007). Southern Brochure Distribution Ltd in turn owns
50% of a joint venture business, Southern Brochure Services Ltd.
12. RELATED PARTY TRANSACTIONS
a. Subsidiaries
JTM provides media production services to JTM Pty for print and online products on an arms-length basis, based on
production hours incurred. In 2012 the recharge from JTM to JTM Pty amounted to $21k (2011: $113k).
The intercompany advance from JTM to JTM Pty (refer note 13) does not attract interest.
b. Key management personnel
GROUP
2012
$’000S
PARENT
2012
$’000S
GROUP
2011
$’000S
PARENT
2011
$’000S
885
849
885
885
Salaries and wages*
*(not including directors fees as disclosed in note 4)
During the year an amount of $101k was paid to John Sandford, a director, for consulting services. $36k of it was relating
to Jasons Travel Media Pty Limited. $18k was paid to Nick Baylis, a director, for consultancy services during the year. These
transactions were on an arms-length basis and were approved by the Board.
13. JASONS TRAVEL MEDIA PTY LIMITED
GROUP
2012
$’000S
PARENT
2012
$’000S
GROUP
2011
$’000S
PARENT
2011
$’000S
Amounts owed by JTM Pty Ltd
-
1,555
-
1,635
Provision for write down
-
(293)
-
(293)
-
1,262
-
1,342
The Directors are of the opinion that this loan may not be fully recoverable, in the hands of JTM (parent), from any proceeds
from the potential sale of the Australian mastheads. Hence they have taken the decision to provide for this partial write down
of the loan in the books of JTM (parent). However, upon consolidation the write-down is reversed against retained earnings
and intercompany balances are eliminated. Hence there is no effect in the Group’s accounts.
On 1 April 2005 100% of the share capital of JTM Pty Ltd was acquired by JTM, for consideration of $1. On 31 October 2006
JTM subscribed for shares issued for cash by JTM Pty Ltd for a total of A$3,000,000. On the same day JTM Pty Ltd repaid
intercompany debt owed to JTM by an equivalent amount. The loan provision was reduced by the amount repaid.
25
Notes to the financial statements (…continued)
14. ACCOUNTS RECEIVABLE & PREPAYMENTS
GROUP
2012
$’000S
PARENT
2012
$’000S
GROUP
2011
$’000S
PARENT
2011
$’000S
Trade receivables
2,393
1,855
2,511
1,812
Provision for doubtful debts
(284)
(213)
(291)
(219)
Prepayments and other receivables
282
272
139
135
2,390
1,914
2,358
1,728
GROUP
2012
$’000S
PARENT
2012
$’000S
GROUP
2011
$’000S
PARENT
2011
$’000S
262
235
276
237
58
54
80
80
320
289
356
317
15. EMPLOYEE ENTITLEMENTS
Annual leave
Accrued remuneration
16. GEOGRAPHICAL SEGMENTS
The Group operates in the tourism markets of New Zealand, Australia and the South Pacific.
Business Segments: The Group produces and distributes tourist information in the form of accommodation guides, maps and
directories via print and online media. This is considered to be a single reporting segment.
Print & web sales
Note
NEW
ZEALAND
2012
$’000S
SOUTH
PACIFIC
2012
$’000S
AUSTRALIA
2012
$’000S
ELIMINATIONS
2012
$’000S
TOTAL
2012
$’000S
3
8,041
806
1,081
-
9,928
2,354
-
-
144
-
-
-
144
10,539
806
1,081
-
12,426
1,211
16
103
-
1,330
745
-
7
-
752
Brochure distribution
Other income
3
Total Income
EBITDA
Depreciation and amortisation
2,354
Interest and finance charge
4
261
-
(2)
-
259
Taxation
5
4
-
-
-
4
Impairment charge
223
-
-
-
223
NPAT
(22)
16
98
-
92
2,894
681
778
-
4,353
Total assets
8,150
681
778
-
9,609
Total liabilities
5,545
29
288
-
5,862
Inter-company balance
1,253
-
(1,253)
-
-
699
-
4
-
703
Total tangible assets
Cost to acquire assets to be used
for more than one period
26 Annual Report 2012
NEW
ZEALAND
2011
$’000S
SOUTH
PACIFIC
2011
$’000S
AUSTRALIA
2011
$’000S
ELIMINATIONS
2011
$’000S
TOTAL
2011
$’000S
Print & web sales
9,546
983
1,232
-
11,761
Brochure distribution
2,146
2
-
-
-
2
11,694
983
1,232
-
13,909
1,773
91
(143)
-
1,720
Depreciation and amortisation
613
-
8
-
620
Interest and finance charge
306
-
9
-
315
Taxation
300
-
-
-
300
NPAT
554
91
(160)
-
485
Total tangible assets
2,993
553
824
-
4,370
Total assets
8,364
553
824
-
9,741
Total liabilities
5,648
94
365
-
6,107
Inter-company loan
1,635
-
(1,635)
-
-
818
-
5
-
824
Other income
Total income
EBITDA
Cost to acquire assets to be used
for more than one period
2,146
There were no inter-segment sales during the year. All inter-segmental sales, if any, are priced at market rate. This policy has
remained unchanged.
27
Notes to the financial statements (…continued)
17. PROPERTY, PLANT & EQUIPMENT
FURNITURE COMPUTER
LEASEHOLD
& FITTINGS HARDWARE ALTERATIONS
$’000S
$’000S
$’000S
MOTOR
MOTOR VEHICLES
VEHICLES
LEASED
$’000S
$’000S
PLANT &
EQUIPMENT
$’000S
TOTAL
$’000S
GROUP
1 April 2010
Cost or valuation
134
803
34
217
59
1,135
2,383
Accumulated depreciation
(63)
(727)
(29)
(184)
(11)
(641)
(1,655)
71
76
5
33
48
494
728
72
76
5
33
48
494
728
Foreign currency movement in
opening balance
-
-
-
-
-
-
-
Additions
8
135
-
-
73
53
269
Disposals
-
-
-
(5)
-
-
(5)
Acquired with business
acquisitions
-
-
-
-
-
-
-
(12)
(75)
(1)
(20)
(9)
(105)
(222)
68
136
4
8
112
442
770
Carrying amount
Year ended 31 March 2011
Opening carrying amount
1 April 2010
Depreciation
Carrying amount 31 March 2011
31 March 2011
Cost or valuation
145
938
34
160
134
1,188
2,599
Accumulated depreciation
(77)
(802)
(30)
(152)
(22)
(746)
(1,829)
68
136
4
8
112
442
770
69
136
4
8
112
441
770
Carrying amount
Year ended 31 March 2012
Opening carrying amount
1 April 2011
Foreign currency movement in
Opening Balance
-
-
-
-
-
-
-
Additions
2
26
-
-
-
40
68
Disposals
-
(4)
-
(2)
-
(8)
(14)
7
7
Acquired with business
acquisitions
Depreciation
(11)
(80)
(1)
(6)
(33)
(88)
(219)
60
78
3
-
79
392
612
Cost or valuation
147
957
34
210
132
1,219
2,699
Accumulated depreciation
(87)
(879)
(31)
(210)
(53)
(827)
(2,087)
60
78
3
-
79
392
612
Carrying amount 31 March 2012
31 March 2012
Carrying amount
28 Annual Report 2012
FURNITURE COMPUTER
LEASEHOLD
& FITTINGS HARDWARE ALTERATIONS
$’000S
$’000S
$’000S
MOTOR
LEASED
VEHICLES VEHICLES
$’000S
$’000S
PLANT &
EQUIPMENT
$’000S
TOTAL
$’000S
PARENT
1 April 2010
Cost or valuation
72
785
34
217
59
1,128
2,296
(35)
(711)
(29)
(184)
(11)
(635)
(1,606)
37
74
5
33
48
493
690
37
74
5
33
48
493
690
Additions
5
135
-
-
73
50
264
Disposals
-
-
-
(5)
-
(1)
(6)
Acquired with business
acquisitions
-
-
-
-
-
-
-
Depreciation
(7)
(74)
(1)
(20)
(9)
(104)
(215)
Carrying amount 31 March 2011
35
135
4
8
112
438
733
Accumulated depreciation
Carrying amount
Year ended 31 March 2011
Opening carrying amount
1 April 2010
31 March 2011
Cost or valuation
Accumulated depreciation
Carrying amount
77
921
34
160
132
1,177
2,503
(42)
(785)
(30)
(152)
(22)
(739)
(1,770)
35
136
4
8
112
438
733
35
136
4
8
112
438
734
Year ended 31 March 2012
Opening carrying amount
1 April 2011
Additions
1
23
-
-
-
40
64
Disposals
-
(4)
-
(2)
-
(8)
(14)
Acquired with business
acquisitions
-
-
-
-
-
7
7
Depreciation
(6)
(79)
(1)
(6)
(33)
(86)
(211)
Carrying amount 31 March 2012
30
76
3
-
79
391
579
78
937
34
210
132
1,210
2,602
(48)
(861)
(31)
(210)
(53)
(819)
(2,023)
30
76
3
-
79
391
579
31 March 2012
Cost or valuation
Accumulated depreciation
Carrying amount
29
Notes to the financial statements (…continued)
18. OTHER INTANGIBLE ASSETS
(Group and Parent)
COMPUTER
SOFTWARE
$’000S
OTHER
INTANGIBLES
$’000S
TOTAL
$’000S
1 April 2010
Cost or valuation
844
2,091
2,935
(783)
(1,721)
(2,504)
61
370
431
61
370
431
Additions
133
422
555
Disposals
-
-
-
Acquired with business acquisitions
-
-
-
Amortisation
(67)
(331)
(398)
Carrying amount 31 March 2011
127
461
588
977
2,514
3,491
(850)
(2,053)
(2,903)
127
461
588
Accumulated amortisation
Carrying amount
Year ended 31 March 2011
Opening carrying amount 1 April 2010
31 March 2011
Cost or valuation
Accumulated amortisation
Carrying amount
Year ended 31 March 2012
Opening carrying amount 1 April 2011
127
461
588
Additions
263
365
628
(145)
(388)
(533)
Amortisation
Impairment charge
-
(223)
(223)
245
215
460
Cost or valuation
1,240
2,879
4,119
Accumulated amortisation
(995)
(2,441)
(3,436)
-
(223)
(223)
245
215
460
Carrying amount 31 March 2012
31 March 2012
Accumlated impairement
Carrying amount
19. FINANCIAL INSTRUMENTS
Interest rate risk
Interest rate risk is the risk that the value of the group’s assets, liabilities and future earnings will fluctuate due to changes in
market interest rates. The group has exposure to interest rate risk under its credit facility and overdraft facility.
A 100 basis point change in the interest rate would affect the group by an annulised amount of interest equal to approximately
$39k (2011: $44k).
Foreign currency risk
Foreign currency risk is the risk that the value of the group’s assets, liabilities and future earnings will fluctuate because of
movements in foreign exchange rates. The group has some exposure to foreign currency risk under sales contracts where the
sales value is set in local currency, within the South Pacific region.
30 Annual Report 2012
Reasonably possible changes in foreign exchange rates that impact the carrrying value
of financial instruments denominated in foreign currencies (currencies other than the
functional currency) would not have a material imapct on the profit or equity of the
group based on the year end exposures.
Credit risk
Credit risk is the risk that a third party will default on its obligations to JTM group,
causing a financial loss. In the ordinary course of business, JTM group has credit
risk exposure to trade receivables and deposits with financial institutions. This risk is
managed through management policies regarding credit worthiness, credit limits and
terms of trade. No collateral security is required by the group from trade debtors or
financial institutions due to the adequacy of credit management policies and quality of
counter parties generally. Financial assets such as cash at bank and deposits are held
with reputable banks.
CURRENCY OF
DENOMINATION
NZ $'000S
2012
Australian Dollar
63
Cook island Dollar
74
Fiji Dollar
58
Tonga Pa'anga
113
Vanuatu Vatu
122
Samoan Tala
128
French Pacific Frank
9
Total
567
The Following outlines the value of trade receivables that were past due at balance date:
GROUP
2012
$’000S
PARENT
2012
$’000S
GROUP
2011
$’000S
PARENT
2011
$’000S
434
429
227
227
Past due, more than 90 days
1,096
1,004
812
757
Less: provision for impaired receivables
(284)
(213)
(291)
(219)
1,246
1,220
748
765
Past due, less than 90 days
Total carrying value of past due receivables
The maximum exposure to credit risk is represented by the carrrying values of each financial asset in the balance sheet. Where
appropriate payment plans are arranged to facilitate collection of past due receivables.
A significant portion of total trade receivable represents receivables due from debtors domiciled in the South Pacific Islands of
NZ$567,000 (2011: NZ$476,000). Exposure to balances in foreign currencies relating to these are disclosed above.
Liquidity risk
Cash flow forecasting is performed for both operating entities to ensure operating cash flow needs are able to be met.
Forecasting takes into account available headroom in committed borrowing facilities and predicts the impact on borrowing
covenants to ensure these are met at all times, in accordance with the relevant facility terms and conditions.
Maturity profile
The table below indicates the contractual payments due under the Group and Parent’s existing financial liabilities at year end.
These payments include the interest payable, based on year end interest rates and the earliest date that repayment can be
demanded by the counterparty.
GROUP 2012
PARENT 2012
WITHIN
1 YEAR
$’000S
AFTER
1 YEAR
$’000S
TOTAL
$’000S
WITHIN
1 YEAR
$’000S
AFTER
1 YEAR
$’000S
TOTAL
$’000S
743
-
743
551
-
551
Financial liabilities
Trade and other payables
Bank borrowings and finance leases
2,251
2,159
4,410
2,251
2,159
4,410
Total payments due
2,994
2,159
5,153
2,802
2,159
4,961
31
Notes to the financial statements (…continued)
GROUP 2011
PARENT 2011
WITHIN
1 YEAR
$’000S
AFTER
1 YEAR
$’000S
TOTAL
$’000S
WITHIN
1 YEAR
$’000S
AFTER
1 YEAR
$’000S
TOTAL
$’000S
983
-
983
710
-
710
Bank borrowings and finance leases
2,735
1,967
4,702
2,735
1,967
4,702
Total payments due
3,718
1,967
5,685
3,445
1,967
5,412
Financial liabilities
Trade and other payables
Included within one year is a flexible credit facility of $1,250,000, which is technically repayable upon demand but expected to
continue to be available until 1 April 2014.
Capital Risk Management Policy
The Group’s objective when managing capital is to safeguard the Group’s ability to continue as a going concern in order to
provide returns for shareholders and benefits for other stakeholders. Maintaining an optimal structure will also reduce the
cost of capital. In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
The board takes cash flow forecasting information into account and considers the impact on future covenant compliance in
setting the level of dividends to be declared.
There are external bank covenants in place relating to debt facilities. These covenants are calculated monthly and reported
to the banks quarterly. The principal covenants relating to capital management are the interest cover ratio and the debt cover
ratio. The consequences of a breach of these covenants would depend on the nature of the breach, but could range from an
instigation of an event of review, to a demand for repayment. There have been no breaches of these covenants or events of
review for the current or prior period.
Fair value
Given their short maturity dates, the carrying values of financial assets and liabilities are considered to approximate their fair
values.
20. NET CASH FLOW FROM OPERATING FACILITIES
GROUP
2012
$’000S
PARENT
2012
$’000S
GROUP
2011
$’000S
PARENT
2011
$’000S
92
(6)
485
645
Depreciation and amortisation
753
745
620
613
Impairment charge
223
223
-
-
(4)
(4)
(20)
(20)
-
-
4
4
43
13
(40)
26
Accounts receivable
(74)
(223)
107
30
Accounts payable
106
183
(157)
(129)
1,139
931
999
1,169
Surplus after taxation
Add / (Less) non-cash items and non-operating items:
Deferred taxation
Loss on sale of property, plant and equipment and other
intangibles
Net loss / (gain) on foreign currency
Movements in working capital:
Net cash inflow (outflow) from operating activities
32 Annual Report 2012
21. CALCULATION OF EARNINGS PER SHARE
GROUP
2012
$’000S
PARENT
2012
$’000S
GROUP
2011
$’000S
PARENT
2011
$’000S
92
(6)
485
645
19,833
19,833
19,833
19,833
0.5
(0.0)
2.4
3.3
92
(6)
485
645
19,833
19,833
19,833
19,833
-
-
-
-
19,833
19,833
19,833
19,833
0.5
(0.0)
2.4
3.3
Basic earnings per share
Profit attributable to ordinary shareholders (numerator)
Weighted average number of ordinary shares outstanding
(denominator)
Basic earnings per share (cents)
Diluted earnings per share
Profit attributable to ordinary shareholders (numerator)
Weighted average number of ordinary shares outstanding
(denominator)
Adjustments for the effect of options and convertible
instruments
Adjusted weighted average number of ordinary shares
outstanding
Diluted earnings per share (cents)
There are no instruments outstanding that could potentially dilute basic earnings per share in the future. There have been no
transactions since balance date which, had they occurred before balance date, would have changed the number of ordinary
shares outstanding as at balance date.
22. SHARE CAPITAL
Issued Capital
The company has 19,833,333 fully paid ordinary shares on issue. These include the issue of 7,200,000 ordinary shares at 50c
each fully paid in the Initial Public Offer in June 2005 and a 1:6 rights issue of 2,833,333 shares in November 2007. The shares
have no par value, and rank equally in regards to dividends or upon winding up of the company.
Dividend Paid
No dividend paid in the Financial Year ended 31 March 2012.
Dividends of $198,000 were paid in the year ended 31 March 2011. (1 cent per share)
23. ADOPTION OF NEW AND REVISED STANDARDS AND INTERPRETATIONS
The financial statements comply with New Zealand generally accepted accounting practice, which include New Zealand
equivalents to International Financial Reporting Standards (‘NZ IFRS’) and other applicable Financial Reporting Standards as
appropriate for profit-oriented entities. The financial statements comply with International Financial Reporting Standards
(‘IFRS’).
A number of new standards, amendments to standards and interpretations are effective for reporting periods on or after 1
April 2012, and have not been adopted inpreparing these financial statements. Whilst none of these are expected to have a
significant effect on the measurement of items within the financial statements, some addtional disclosures will be necessary.
No new standards have been adopted during the year that have had a material impact on the measurement or disclosure in
these financial statements.
24. SUBSEQUENT EVENTS
John Sandford has been appointed chairman of the Board on 2 April 2012. Geoff Burns stepped down but remains Deputy
Chairman and a Director of the company. Jamie Hall was appointed to the Board of Directors on 2 April 2012.
33