Annual Report 2013 - Mainfreight

28 Capital Commitments and Contingent Liabilities
The Group had the following capital commitments at 31 March 2013 totalling $29,179,328 (2012 $20,486,875).
– Brisbane Freight Facility $544,008
– Palmerston North Freight Facility $195,630
– Invercargill Freight Facility $722,203
– Tauranga Freight Facility $103,856
– Christchurch Freight and Logistics Facility $27,613,631
There are additional bank performance guarantees and bonds totalling $16,911,000 (2012 $11,056,000) undertaken by the Group.
2013
$000
Group
2012
$000
Guarantees Comprise:
Rental Guarantee 609 722
Custom Guarantees 9,273 7,997
9,882 8,719
Performance Bonds Comprise:
NZ Stock Exchange 75 75
Australian Cheque Cashing Authority - 53
Australian Credit Card 287 191
Netherlands Banking Guarantee 4,678 -
Netherlands Other Guarantees 208 202
Belgian Banking Guarantee 611 651
Belgian Government Licencing Guarantees 155 1,115
Belgian Other Guarantees 1,015 50
7,029 2,337
The Group is party to sub-lease/tenancy agreements where third parties lease excess office/industrial space from the Group. In the event of
default by third parties the Group would be exposed to these liabilities.
As a result of the IRD’s programme of routine and regular tax audits, the Group anticipates that IRD audits may occur in the future. The Group
is similarly subject to routine tax audits in certain overseas jurisdictions. The ultimate outcome of any future tax audits cannot be determined
with an acceptable degree of reliability at this time. Nevertheless, the Group believes that it is making adequate provision for its taxation
liabilities. However, there may be an impact to the Group if any revenue authority investigations result in an adjustment that increases the
Group’s taxation liabilities.
29 Subsequent Events
On 16 May 2013 the Company issued 1,200,000 redeemable ordinary shares (representing 1.21% of the issued capital) to the Mainfreight
Share Scheme Trustee Ltd, the Trustee of the Mainfreight Limited Partly Paid Share Scheme (the Scheme). The Scheme was established
to enable key team members of the Company to acquire ordinary shares in the Company. Within the Trust all shares are allocated to team
members. The Trustee is appointed by the Board of Mainfreight Ltd and is able to exercise any voting rights attached to these shares.
The issue price was $10.56 per share, which was the market price at the time. The shares are partly paid to 1c and are due for payment from
30 May 2016 to 29 July 2016. The shares participate in dividends and voting rights in proportion with the paid up amount.
A dividend of 15.0 cents per share was declared on 28 May 2013 date totalling $14,853,532. Payment date is to be 19 July 2013.
Financial Statements
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