Download - AHG Limited

2012 Annual Report
For the year ended June 2012
present value using a pre-tax discount rate that reflects a current market assessment of the time value of
money and the risks specific to the asset. If the estimated risk-adjusted discount rate was 10% higher or
lower, the fair value (and equity reserves) would increase/decrease by $0.15 million (2011: $Nil).
The carrying amounts of trade receivables and payables are assumed to approximate their fair values due
to their short-term nature. The fair value of financial liabilities for disclosure purposes is estimated by
discounting their future contractual cash flows at the current market interest rate that is available to the
Group for similar financial instruments. The fair value of current borrowings approximates the carrying
value amount, as the impact of discounting is not significant.
4. Parent entity information
The following details information related to the parent entity, Automotive Holdings Group Limited, at 30 June
2012. The information presented is in line with the Group’s accounting policies as presented in Note 1.
Parent
2012
$’000
2011
$’000
Current assets 255,511 231,546
Non current assets 241,479 255,834
Total assets 496,991 487,380
Current liabilities 2,313 21,624
Non-current liabilities 100,996 70,653
Total Liabilities 103,309 92,277
Contributed equity 384,112 383,585
Reserves (2,492) (41)
Retained profits 12,062 11,559
Total Equity 393,682 395,103
Profit for the year 44,820 33,128
Other comprehensive loss for the year (1,715) (168)
Total comprehensive income for the year 43,104 32,959
Profit for the year is net of impairment to investments in subsidiary entities of $9.711 million (2011:
$19.854 million) arising from the intangible impairment charge in the consolidated financial statements.
Unsecured guarantees, indemnities and undertakings have been given by the parent entity in the normal
course of business in respect of financial trade arrangements entered into by its controlled entities. It is
not practicable to ascertain or estimate the maximum amount for which the parent entity may become
liable in respect thereof. At 30 June 2012 no controlled entity was in default in respect of any arrangement
guaranteed by the parent entity and all amounts owed have been brought to account as liabilities in the
financial statements.
Cross guarantees have been given by AHG and controlled entities as described in note 33. Where appropriate
the parent entity has recognised impairment adjustments equivalent to the deficiency of net assets of
controlled entities. No contingent liabilities exist in respect of joint venture interests (note 26). Capital
commitments of the parent in relation to property, plant and equipment are the same as those consolidated
capital commitments disclosed in note 32. Contingent liabilities of the parent are disclosed in note 33.
5. Operating segments
The Board has determined that AHG’s operating segments be divided between a single reportable
automotive segment, two reportable logistics segments comprising of AHG’s transport and cold storage
operations and the balance of all of its other logistical operations and a single reportable property
segment, per note 1(i). All segments operate within the geographical area of Australia and New Zealand.
Operations in Australia and New Zealand are classified and managed as one geographical area, and
therefore geographic disclosures have not been included.
Automotive Retail
The automotive segment has 132 dealerships franchise sites operating within the geographical areas of
Australia and New Zealand.
AHG’s automotive operations exhibit similar economic characteristics. They have similar product offerings
and a consistency of customer base. The generic characteristics of these businesses allow AHG to
consistently measure operating performance within this segment.
Automotive Holdings Group 85