Annual Report - Wridgways

WRIDGWAYSAnnual Report 2000

Wridgways Australia Limited ACN 079 887 728ContentsOverview 1Chairman’s Report 3Managing Director’s Report 4Directors 6Corporate Governance Statement 7Directors’ Report 8Financial Report 11Additional Stock Exchange Information 35

Company SecretaryMr Brian C ClarkePrincipal Registered Office93 Heatherdale RoadRingwood Victoria 3134Telephone: (03) 9837 1700Principal Administration Office93 Heatherdale RoadRingwood Victoria 3134Telephone: (03) 9837 1700Facsimile: (03) 9872 4063Email: moving@wridgways.com.auWebsite: http://www.wridgways.com.auShare RegistryC/- National Registry Services Pty LimitedLevel 23, 367 Collins StreetMelbourne Victoria 3000GPO Box 2867DD,Melbourne Victoria 3001Telephone: (03) 9275 7999Facsimile: (03) 9670 6373Stock Exchange ListingsWridgways Australia Limited’s ordinaryshares are quoted by the AustralianStock Exchange Limited.

Wridgways Australia Limited Annual Report 2000Overview ofWridgwaysWridgways is one of the largest operators in the Australian removals industry.The Group comprises Wridgways Australia Limited and its operating subsidiaryWridgways Limited.The furniture removals business now conducted byWridgways had its origins in a business started byMr Ernest Wridgway in Melbourne at the turn ofthe century. The business, then conducted underthe Wridgways name, was acquired by Ansett in1972 and sold to TNT in 1994. In 1997, Wridgwayswas acquired by its management team. In 1999,Wridgways Australia Limited was listed on theAustralian Stock Exchange.Wridgways provides household and commercialfurniture removals, packaging, high value/fragileproduct transportation, storage, import andexport services and caters to the needs of familiesand businesses in the private, corporate andgovernment sectors.In the year ended 30 June 2000, Wridgwayscarried out in excess of 30,000 relocations andserviced over 1,300 businesses and governmentorganisations.The Group has 22 offices with storage facilitiesAustralia-wide and has access to a network ofover 300 professional agents worldwide.Wridgways is a member of The AustralianFurniture Removers Association and a number ofinternational industry associations including TheInternational Federation of International FurnitureRemovals, which is a major global associationfor international moving companies with over600 members from over 90 countries. The Grouphas consistently been rated highly by O.M.N.I.Limited as one of the world’s major internationalremovalists, based on outbound tonnage.1

CUSTOMERS AND REVENUECOMPOSITIONBUSINESS STRUCTUREWridgways conducts its business through three keyservice lines, being:Wridgways – The Removalists• This service line undertakes domesticactivity including interstate and intrastaterelocations, insurance and storage. Itconducted in excess of 26,000 movesin the year ended 30 June 2000.Wridgways – The WorldWide Movers• This service line undertakes internationalactivity including export, import and countryto country relocations by air and sea freight.In the year ended 30 June 2000, Wridgwayshandled over 6,000 such moves.Wridgways services a diverse range of customers.In the 2000 financial year, the vast majority ofrelocations were carried out for corporate(non-government) clients or private clients inapproximately equal numbers, with the balanceof approximately one-tenth of relocations carriedout for government clients.Like its customer mix, the composition ofWridgways’ revenue is diverse. In the 2000financial year, approximately 35% of revenuewas derived from interstate movements, 25%from international relocations and the balancederived from intrastate movements, businessrelocations, general storage and insurance.Wridgways – The Office Movers• This service line provides office moving andproject management services.All service lines operate under the wellrecognised Wridgways brand name and utilisethe Group’s branch locations, staff and fleet ona combined basis.2

Wridgways Australia Limited Annual Report 2000Chairman’sReportFor the financial year ended 30 June 2000, Wridgways reported an operatingprofit before tax of $3.264 million, an increase of 0.8% over the Prospectus forecastof $3.237 million and an increase of 3.0% on last year’s operating profit before taxof $3.169 million. Operating profit after income tax was $2.034 million, which was inline with the Prospectus forecast of $2.030 million and 3.6% above last year’s figureof $1.964 million.Sales revenue of $67.155 million was 1.3% aboveProspectus forecast of $66.273 million andexceeded last year’s sales of $62.403 millionby 7.6%.Given the heavy industry discounting in Australia,it was pleasing to achieve an EBIT margin of 5.7%which exceeded prospectus forecast of 5.6%.As previously announced, the Directors haveresolved to declare a fully franked final dividendof 3 cents per share, which meets the Prospectusforecast of 4 cents for the financial year, followingthe payment of the 1 cent per share fully frankedinterim dividend amounting to $320,000 paidon 24 March 2000.During the year we have taken a number ofstrategic initiatives to further strengthen ourorganisation and these are covered in greaterdetail in the Managing Director’s report.We have also relocated our Brisbane, Perth andNewcastle operations to new purpose-builtfacilities which will further enhance the efficiencyand capacity of these key operational centres.It was extremely pleasing to achieve ourProspectus forecasts for the second year and onbehalf of the Board I would like to thank ourManaging Director, Des Stickland, and theCompany’s management and employees forsuccessfully achieving these objectives.Anthony W Whatmore3

Managing Director’sReportDespite a difficult first half, we have managed to exceed our Prospectus forecasts forthe second year in succession.International import and export businessconducted by Wridgways The Worldwide Moverscontinued to create new year-on-year recordsby recording in excess of 50% profit growth overthe previous very successful year. This division isexpected to continue to display strong performanceas a result of high demand for its services andrecently introduced agency development initiatives.Wridgways The Removalists conducts domesticrelocations throughout Australia. Strong demand inthe local and intrastate sector resulted in revenueand profit exceeding forecast whilst Long Distanceand Interstate activities, boosted by enhanced salesprograms, exceeded revenue forecast but the effectof competitor discounting activities reduced profitto below forecast.OPERATIONAL PERFORMANCEDuring the financial year Wridgways CorporateServices was expanded from its Sydney base andis now represented in all state capital cities. Newintegrated support structures and technologyrefinements were successfully introduced as partof an ongoing corporate customer developmentprogram. This business unit has performed verywell and is on target to meet expected growthforecasts into the future.Wridgways Project Management completeda wide range of relocations, hotel fit-outs andrefurbishments to record pleasing results.Wridgways Project Management will beexpanded to take advantage of continuedgrowth and opportunities in the tourism andleisure industry.PROPERTIES AND NEW LOCATIONSDuring the financial year the Company relocatedits Brisbane operations to a new, purpose-builtleased 8,500 square metre warehouse providingstate-of-the-art facilities including a Customs Bondcentre, under cover storage for over 150 shippingcontainers and over 14,000 cubic metres of generalfurniture storage. The five acre complex housesall the Wridgways trading brands includingWridgways New Furniture Distributionand Wridgways Project Management.During the financial year the Company relocated itsPerth operations to a new, purpose-built leasedfacility which also includes a Customs Bondcentre and under cover storage for 100 shippingcontainers. The 6,300 square metre warehouse alsoprovides for over 9,000 cubic metres of generalfurniture storage.4

Wridgways Australia Limited Annual Report 2000The Company-owned warehouse in Belmont(Newcastle) was sold during the financial year andthe business was relocated to a new purpose-builtleased facility in Tomago. The new locationprovides excellent access to major highwaysand is strategically well positioned to service theCompany’s main relocation markets. The 2,080square metre warehouse provides for under covercontainer storage and for over 3,100 cubic metresof general furniture storage.During the financial year a new branch wasestablished on the Sunshine Coast in Queenslandbringing the total number of Wridgways branchlocations to 22. The Sunshine Coast operationservices a high growth population region and willsupport the rest of the branch network in securingadditional movements into an area that has stronginbound demand.COST CONTROL ANDEQUIPMENT INITIATIVESDuring the financial year Wridgways againperformed very well in managing costs with lossand damage claims to customers goods for theperiod limited to 1% of sales. Expenditure onpackaging materials was reduced to 2.9% of salesas a result of improved recycling programs andcompetitive purchasing arrangements.An additional 300 new 20-foot steel shippingcontainers were added to the Wridgways fleet toservice long distance operations by road and rail.These containers replaced older stock and reducedthe number of short-term hire containers in a fleetof over 1,000 units.programs and development work commenced tocreate a new International Import and Exportoperating system. Key account shipment trackingand online transaction internet programs have beendeveloped to final testing stages.OUR PEOPLENo industrial disputes were recorded inthe financial year. A number of EnterpriseBargaining Agreements will be renewed inthe next financial year.Our Company comprises over 300 employees andowner drivers who have worked tirelessly withgreat pride and commitment to deliver outstandingcustomer service every day. It is this pride and skillthat feeds our longevity and enviable companyculture. It also reflects the first-class image ofWridgways in the market place and I thank allour people for their considerable efforts anddedication in producing another successful yearfor our Shareholders.INFORMATION TECHNOLOGYWork continued throughout the financial yearin migrating existing business systems toWindows-based systems. Further refinementswere concluded in the Company’s corporate salesDesmond F Stickland5

DirectorsAnthony W WhatmoreFCPA, FAIM, FAICDAge 65ChairmanMr Whatmore is Chairman and non-executiveDirector of Nestlé Australia Limited and RebelSports Limited. He is also a Director of BRLHardy Limited. He has had significant commercialexperience including previous appointments as theDeputy Managing Director, Petersville AustraliaLimited, Managing Director of George WestonFoods Limited and a Director of the AustralianWool Corporation, Morgan & Banks Limited andWalker Corporation Limited.William S CutbushFAICDAge 68Non-Executive DirectorMr Cutbush has had many years experience asa Chairman and Director of public companies inretailing and related activities. He is currentlyChairman of Millers Retail Limited, BlackmoresLimited, Freedom Group Limited and NuanceGlobal Traders (Australia) Pty Limited. He is alsoa Director of Sydney Fish Market Pty Ltd.Desmond F SticklandAge 47Managing DirectorMr Stickland has been with Wridgways for25 years and has held various positions includingBranch Manager, Sales Manager and GroupInternational Manager. He was appointed ChiefExecutive in 1991 and assumed the role ofManaging Director in 1997.Brian C ClarkeBEc, ACIS, MNIAAge 42Finance Director &Company SecretaryMr Clarke has held various administrative positionswithin the Group including Group Accountantand IT Manager. He has been with Wridgwaysfor 17 years.Bryan D WeirLLB BComAge 47Non-Executive DirectorMr Weir is a Director of Walker Douglas &Company and a non-executive Director ofRecruiters Australia Ltd. He was a partner ofFreehill Hollingdale & Page for 14 years beforebecoming a Director of Macquarie CorporateFinance Limited.6

Directors’ReportThe Directors of Wridgways Australia Limited submit herewith the annual financialreport for the financial year ended 30 June 2000. In order to comply with theprovisions of the Corporations Law, the Directors report as follows:DIRECTORSThe names of the Directors of the Company duringor since the end of the financial year are:Anthony W WhatmoreBryan D WeirWilliam S CutbushDesmond F SticklandBrian C ClarkeThe above named Directors held office during andsince the end of the financial year.Particulars of the Directors of the Company duringor since the end of the financial year are set out onpage 6.PRINCIPAL ACTIVITIESThe consolidated entity’s principal activities in thecourse of the financial year were the provision ofremoval and storage services.During the financial year there was no significantchange in the nature of those activities.REVIEW OF OPERATIONSThe consolidated operating profit after income taxfor the year was $2,033,925 (1999: $1,964,145).CHANGES IN STATE OF AFFAIRSDuring the financial year there was no significantchange in the state of affairs of the consolidatedentity other than that referred to in the financialstatements or notes thereto.SUBSEQUENT EVENTSThere has not been any matter or circumstance,other than that referred to in the financialstatements or notes thereto, that has arisen sincethe end of the financial year, that has significantlyaffected, or may significantly affect, the operationsof the consolidated entity, the results of thoseoperations, or the state of affairs of theconsolidated entity in future financial years.FUTURE DEVELOPMENTSDisclosure of information regarding likelydevelopments in the operations of the consolidatedentity in future financial years and the expectedresults of those operations is likely to result inunreasonable prejudice to the consolidatedentity. Accordingly, this information has notbeen disclosed in this report.A full review of operations is contained in theManaging Director’s Report as set out on pages 4and 5 (which forms part of the Directors’ Report).8

DIRECTORS’ MEETINGSThe following table sets out the number of Directors’ meetings (including meetings of committees of Directors)held during the financial year and the number of meetings attended by each Director (while they were aDirector or committee member). During the financial year, eight Board of Directors meetings, two AuditCommittee meetings and one Remuneration Committee meeting were held.Directors’ Audit Committee Remuneration CommitteeMeetings Meetings MeetingsNo. of No. of No. of No. of No. of No. ofMeetings Meetings Meetings Meetings Meetings MeetingsName of Director Held Attended Held Attended Held AttendedA W Whatmore 8 8 2 2 1 1B D Weir 8 8 2 2 1 1W S Cutbush 8 7 2 2 1 1D F Stickland 8 8 N/A N/A 1 1B C Clarke 8 8 2 2 N/A N/ADIRECTORS’ AND EXECUTIVES’ REMUNERATIONA discussion of the broad policy for determining the nature and amount of remuneration of Directors andExecutive Officers is contained in the Corporate Governance Statement as set out on page 7 (which forms partof the Directors’ Report).The following table discloses the remuneration of the Directors of the Company and the five highestremunerated executives of the Company (including Executive Directors):Salary/FeesName Office /Bonuses Benefits TotalAnthony W Whatmore Non-Executive Director 60,000 4,200 64,200Bryan D Weir Non-Executive Director 30,000 2,100 32,100William S Cutbush Non-Executive Director 30,000 2,100 32,100Desmond F Stickland Executive Director 144,740 37,506 182,246Brian C Clarke Executive Director 95,000 35,245 130,245Steven J Crowle Executive 111,950 32,894 144,844John (Vincent) Ford Executive 60,030 65,620 125,650Desmond P Sutton Executive 110,070 27,871 137,941Signed in accordance with a resolution of the directors made pursuant to s.298(2) of the Corporations Law.On behalf of the DirectorsMr A W WhatmoreChairmanMr D F SticklandManaging DirectorMELBOURNEDate: 8 September 200010

Wridgways Australia Limited Annual Report 2000Financial Reportfor the financial year ended 30 June 2000ContentsProfit and Loss Statement 12Balance Sheet 13Statement of Cash Flows 14Notes to the Financial Statements 15 – 32Directors’ Declaration 33Independent Audit Report 3411

Profit and Loss Statementfor the financial year ended 30 June 2000Note Consolidated Company2000 1999 2000 1999$ $ $ $Sales Revenue 67,155,359 62,402,886 – –Operating profit before amortisationof goodwill 3,379,031 3,283,950 1,649,392 2,438,388Less: Amortisation of goodwill 115,406 115,406 – –Operating profit 2 3,263,625 3,168,544 1,649,392 2,438,388Income tax expense attributableto operating profit 5 1,229,700 1,204,399 115,402 136,220Operating Profit after Income Tax 2,033,925 1,964,145 1,533,990 2,302,168Retained profits at the beginningof financial year 1,336,892 1,432,747 254,500 12,332Total Available for Appropriation 3,370,817 3,396,892 1,788,940 2,314,500Dividends provided for or paid 24 1,280,000 2,060,000 1,280,000 2,060,000Retained Profits at the endof the Financial Year 2,090,817 1,336,892 508,490 254,500Earnings per ShareBasic (cents per share) 31 6.36 6.14Notes to the financial statements are included on pages 15 to 32.12

Wridgways Australia Limited Annual Report 2000Balance Sheetas at 30 June 2000Note Consolidated Company2000 1999 2000 1999$ $ $ $Current AssetsCash 891,132 1,128,704 26,668 –Receivables 8 5,685,951 4,020,543 960,000 960,000Inventories 9 305,198 339,037 – –Property 10 – 750,000 – –Other 11 874,587 945,143 10,839 17,375Total Current Assets 7,756,868 7,183,427 997,507 977,375Non-Current AssetsInvestments 12 – – 11,688,898 11,688,898Property, plant and equipment 13 2,664,381 2,631,532 1,554,111 1,822,845Intangibles 14 9,990,762 10,106,168 – –Other 15 740,237 813,238 59,290 39,631Total Non-Current Assets 13,395,380 13,550,938 13,302,299 13,551,374Total Assets 21,152,248 20,734,365 14,299,806 14,528,749Current LiabilitiesAccounts payable 16 8,340,022 7,875,651 24,391 52,166Borrowings 17 72,350 66,905 1,166,945 240,390Provisions 18 2,858,432 2,524,275 1,204,644 1,074,591Total Current Liabilities 11,270,804 10,466,831 2,395,980 1,367,147Non-Current LiabilitiesBorrowings 19 5,044,892 6,117,243 9,726,809 11,308,169Provisions 20 1,245,735 1,313,399 168,527 98,933Total Non-Current Liabilities 6,290,627 7,430,642 9,895,336 11,407,102Total Liabilities 17,561,431 17,897,473 12,291,316 12,774,249Net Assets 3,590,817 2,836,892 2,008,490 1,754,500EquityIssued capital 22 1,500,000 1,500,000 1,500,000 1,500,000Retained profits 2,090,817 1,336,892 508,490 254,500Total Equity 3,590,817 2,836,892 2,008,490 1,754,500Notes to the financial statements are included on pages 15 to 32.13

Statement of Cash Flowsfor the financial year ended 30 June 2000Cash Flows from Operating ActivitiesNote Consolidated CompanyInflow/(Outflow)Inflow/(Outflow)2000 1999 2000 1999$ $ $ $Receipts from customers 65,502,147 62,770,331 3,683,162 3,475,305Payments to suppliers and employees (62,018,926) (58,593,326) (1,165,159) (1,000,436)Interest received 49,935 49,786 1,949 –Interest paid (472,037) (492,983) (472,037) (492,983)Income tax paid (1,013,149) (2,027,910) 9,953 (36,074)Net cash provided by operating activities 26(b) 2,047,970 1,705,898 2,057,868 1,945,812Cash Flows from Investing ActivitiesPayment for property, plant and equipment (746,366) (629,466) (104,395) (423,439)Proceeds from sale of property,plant and equipment 807,730 6,323 8,000 5,803Net cash provided by/(used in) investing activities 61,364 (623,143) (96,395) (417,636)Cash Flows from Financing ActivitiesProceeds from borrowings:Third parties 1,000,000 4,000,000 1,000,000 4,000,000Repayment of borrowings:Third parties (2,000,000) – (2,000,000) –Other related entities – (3,800,000) – (3,800,000)Controlled entity – – (509,009) (2,270,797)Proceeds from repayment of loanby wholly-owned controlled entity – – – 1,782,487Payment for share buy-back – (375,000) – (375,000)Dividends paid (1,280,000) (1,193,750) (1,280,000) (1,193,750)Proceeds from finance lease – 211,893 – 211,893Repayment of finance lease (66,906) (27,745) (66,906) (27,745)Net cash provided by/(used in) financing activities (2,346,906) (1,184,602) (2,855,915) (1,672,912)Net Increase/(Decrease) in Cash Held (237,572) (101,847) (894,442) (144,736)Cash at the Beginning of the Financial Year 1,128,704 1,230,551 (173,485) (28,749)Cash at the End of the Financial Year 26(a) 891,132 1,128,704 (1,067,927) (173,485)Notes to the financial statements are included on pages 15 to 32.14

Wridgways Australia Limited Annual Report 2000Notes to the Financial Statementsfor the financial year ended 30 June 20001. SUMMARY OF ACCOUNTING POLICIESFinancial Reporting FrameworkThe financial report is a general purpose financial report which has been prepared in accordance with theCorporations Law, applicable Accounting Standards and Urgent Issues Group Consensus Views, and complieswith other requirements of the law.The financial report has been prepared on the basis of historical cost and, except where stated, do not takeinto account changing money values or current valuations of non-current assets. Cost is based on the fairvalues of the consideration given in exchange for assets.Significant Accounting PoliciesAccounting policies are selected and applied in a manner which ensures that the resultant financialinformation satisfies the concepts of relevance and reliability, thereby, ensuring that the substance of theunderlying transactions and other events is reported.The following significant accounting policies have been adopted in the preparation and presentation of thefinancial report:(a) Principles of ConsolidationThe consolidated financial statements have been prepared by combining the financial statements of allthe entities that comprise the consolidated entity, being the Company (the parent entity) and its controlledentities as defined in accounting standard AASB1024 ‘Consolidated Accounts’. A list of controlled entitiesappears in Note 25 to the financial statements. Consistent accounting policies have been employed in thepreparation and presentation of the consolidated financial statements.The consolidated financial statements include the information and results of each controlled entity fromthe date on which the Company obtains control and until such time as the Company ceases to controlsuch entity.In preparing the consolidated financial statements, all intercompany balances and transactions, andunrealised profits arising within the consolidated entity are eliminated in full.(b) Income TaxTax effect accounting principles have been adopted whereby income tax expense has been calculated onpre-tax accounting profits after adjustment for permanent differences. The tax effect of timing differences,which occur when items are included or allowed for income tax purposes in a period different to that foraccounting, is shown at current taxation rates in provision for deferred income tax and future income taxbenefit, as applicable.(c)Revenue RecognitionRevenue from the provision of removal services is recognised when the freight is delivered.Revenue from the provision of storage services is recognised over the period of storage.(d) ReceivablesTrade receivables and other receivables are recorded at amounts due less any provision fordoubtful debts.(e)(f)InventoriesInventories are valued at the lower of cost and net realisable value.InvestmentsInvestments in controlled entities are recorded at cost.Dividend revenue is recognised on a receivable basis. Interest revenue is recognised on an accrual basis.15

Notes to the Financial Statements (continued)for the financial year ended 30 June 20001. SUMMARY OF ACCOUNTING POLICIES (continued)(g)DepreciationDepreciation is provided on plant and equipment. Depreciation is calculated on a straight line basisso as to write off the net cost of each asset over its expected useful life. Leasehold improvements aredepreciated over the period of the lease or estimated useful life, whichever is the shorter, using thestraight line method. The following estimated useful lives are used in the calculation of depreciation:• Transport fleet 5 – 7 years• Plant and equipment 4 – 10 years• Equipment under finance lease 3 years(h) Leased AssetsLeased assets classified as finance leases are capitalised as fixed assets. The amount initially brought toaccount is the present value of minimum lease payments.A finance lease is one which effectively transfers from the lessor to the lessee substantially all the risks andbenefits incidental to ownership of the leased property.Capitalised leased assets are amortised on a straight line basis over the estimated useful life of the asset.Finance lease payments are allocated between interest expense and reduction of lease liability over theterm of the lease. The interest expense is determined by applying the interest rate implicit in the lease tothe outstanding lease liability at the beginning of each lease payment period.Operating lease payments are charged as an expense on a basis which reflects the pattern in whicheconomic benefits from the leased asset are consumed.(i)(j)Property Held for ResaleProperty held for resale is valued at the lower of cost and net realisable value.GoodwillGoodwill, representing the excess of the cost of acquisition over the fair value of the identifiable netassets acquired (in respect of the business of Wridgways Limited) is amortised on a straight line basisover a period of 20 years.(k) Brand NameThe consolidated entity’s brand name, Wridgways, is recorded at cost of acquisition. The Directors givedue consideration to the technical and commercial life of the brand name to determine its useful life andtake into account that it has been in existence for over 100 years. In the opinion of the Directors, the brandname does not have a finite useful life and, accordingly, it has not been subject to amortisation.The Directors regularly review the carrying value of the brand name to ensure its carrying value does notexceed its recoverable amount.The brand name was recognised at its fair value on the acquisition of the business of Wridgways Limitedon the basis of an independent valuation prepared by Grant Thornton Corporate (NSW) Pty Limiteddated 27 October 1998. The basis of the valuation was the relief from franchise fee method.(l)Recoverable Amount of Non-Current AssetsNon-current assets are written down to recoverable amount where the carrying value of any non-currentasset exceeds recoverable amount. In determining the recoverable amount of non-current assets, theexpected net cash flows have not been discounted to their present value.(m) Accounts PayableTrade payables and other accounts payable are recognised when the consolidated entity becomes obligedto make future payments resulting from the purchase of goods and services.16

Wridgways Australia Limited Annual Report 20001. SUMMARY OF ACCOUNTING POLICIES (continued)(n) BorrowingsBills of exchange are recorded at an amount equal to the net proceeds received, with the premiumor discount amortised over the period until maturity. Interest expense is recognised on an effectiveyield basis.Bank loans and other loans are recorded at an amount equal to the net proceeds received. Interestexpense is recognised on an accrual basis.(o) Employee EntitlementsProvision is made for benefits accruing to employees in respect of wages and salaries, annual leave andlong service leave when it is probable that settlement will be required and they are capable of beingmeasured reliably.Provisions made in respect of wages and salaries, annual leave and long service leave expected to besettled within 12 months, are measured at their nominal values.Provisions made in respect of long service leave which are not expected to be settled within 12 months aremeasured as the present value of the estimated future cash outflows to be made by the consolidated entityin respect of services provided by employees up to the reporting date.(p) Financial Instruments Issued by the CompanyTransaction Costs on the Issue of Equity InstrumentsTransaction costs arising on the issue of equity instruments are recognised directly in equity as areduction of the proceeds of the equity instruments to which the costs relate. Transaction costs are thecosts that are incurred directly in connection with the issue of those equity instruments and which wouldnot have been incurred had those instruments not been issued.Debt and Equity InstrumentsDebt and equity instruments are classified as either liabilities or as equity in accordance with thesubstance of the contractual arrangement.Interest and DividendsInterest and dividends are classified as expenses or as distributions of profit consistent with the balancesheet classification of the related debt or equity instruments.(q) Foreign ExchangeAll foreign currency transactions during the financial year are brought to account using the exchange ratein effect at the date of the transaction. Foreign currency monetary items at reporting date are translated atthe exchange rate existing at that date.Exchange differences are brought to account in the profit and loss statement in the period in which theyarise except that:i. exchange differences which relate to assets under construction for future productive use are includedin the cost of those assets; andii. exchange differences on transactions entered into in order to hedge the purchase or sale of specificgoods and services are deferred and included in the measurement of the purchase or sale.(r)(s)Acquisition of AssetsAssets acquired are recorded at the cost of acquisition, being the purchase consideration determined as atthe date of acquisition plus costs incidental to the acquisition.In the event that settlement of all or part of the cash consideration given in the acquisition of an asset isdeferred, the fair value of the purchase consideration is determined by discounting the amounts payable inthe future to their present value as at the date of acquisition.Comparative FiguresComparative figures are, where appropriate, reclassified so as to be comparable with the figures presentedfor the current financial year.17

Notes to the Financial Statements (continued)for the financial year ended 30 June 20002. OPERATING PROFITThe operating profit before income taxincludes the following items of revenueand expense:Operating RevenueConsolidatedCompany2000 1999 2000 1999$ $ $ $Sales revenue 67,155,359 62,402,886 – –Management fees:Wholly-owned controlled entity – – 2,378,358 2,181,555Dividends:Wholly-owned controlled entity – – 1,280,000 2,060,000Rental revenue 12,196 19,756 – –Interest revenue:Other entities 49,935 49,786 1,949 –Non-Operating Revenue67,217,490 62,472,428 3,660,307 4,241,555Proceeds from sale of assets:Current property 750,000 – – –Non-current plant and equipment 57,730 6,323 8,000 5,803Expenses807,730 6,323 8,000 5,80368,025,220 62,478,751 3,668,307 4,247,358Borrowing costs:Interest:Other related entities – 293,701 – 293,701Other entities 439,228 170,527 439,228 170,527Finance lease finance charges 12,081 5,165 12,081 5,165Other borrowing costs 33,848 26,840 33,848 26,840485,157 496,233 485,157 496,233Bad debts written off – other persons 56,226 33,832 – –18

Wridgways Australia Limited Annual Report 2000ConsolidatedCompany2000 1999 2000 1999$ $ $ $2. OPERATING PROFIT (continued)Depreciation of non-current assets:Transport fleet 296,385 274,420 296,385 274,420Plant and equipment 316,465 278,373 – –612,850 552,793 296,385 274,420Amortisation of non-current assets:Lease assets 70,631 29,430 70,631 29,430Goodwill 115,406 115,406 – –186,037 144,836 70,631 29,430Operating lease rentals 3,671,801 2,761,365 70,020 –Net transfers to provisions:Employee entitlements 122,943 175,098 54,633 34,529Doubtful debts 47,927 39,327 – –170,870 214,425 54,633 34,5293. SALES OF ASSETSSales of assets in the ordinary course ofbusiness have given rise to the followingprofits and losses:Net Profits:Plant and equipment 50,602 – 1,887 –Net Losses:Property 22,908 – – –Plant and equipment – 4,154 – 3,67322,908 4,154 – 3,6734. REMUNERATION OF AUDITORSAuditor of the Parent Entity:Auditing the financial report 46,232 44,515 – –Other services 29,840 25,185 – –76,072 69,700 – –19

Notes to the Financial Statements (continued)for the financial year ended 30 June 20005. INCOME TAX(a) The prima facie income tax expense onpre-tax accounting profit reconciles tothe income tax expense in the financialstatements as follows:ConsolidatedCompany2000 1999 2000 1999$ $ $ $Operating Profit 3,263,625 3,168,544 1,649,392 2,438,388Income tax expense calculated at 36%of operating profit 1,174,905 1,140,675 593,781 877,820Permanent Differences:Amortisation of goodwill 41,546 41,546 – –Non-deductible expenses 22,128 10,774 1,573 –Rebateable dividend – – (460,800) (741,600)Capital loss – sale of property 8,247 – – –Effect on Future Income Tax Benefit andProvision for Deferred Income Tax due tothe change in income tax rate from 36% to34% (effective 1 July 2000) and 30%(effective 1 July 2001) (12,419) – (19,380) –(Over)/under provision of income tax inprevious year (4,707) 11,404 228 –Income tax expense attributable to theoperating profit 1,229,700 1,204,399 115,402 136,220(b)Future income tax benefits not broughtto account as assets:Tax losses – capital 98,875 – – –The taxation benefits of tax losses not brought to account will only be obtained if:(i)(ii)assessable income is derived of a nature and of amount sufficient to enable the benefit from thedeductions to be realised;the conditions for deductibility imposed by the law are complied with; and(iii) no changes in tax legislation adversely affect the realisation of the benefit from the deductions.20

Wridgways Australia Limited Annual Report 2000ConsolidatedCompany2000 1999 2000 1999$ $ $ $6. DIRECTORS’ REMUNERATIONThe Directors of Wridgways Australia Limitedduring the year were:• Anthony W Whatmore• Bryan D Weir• William S Cutbush• Desmond F Stickland• Brian C ClarkeThe aggregate of income paid or payable, or otherwisemade available, in respect of the financial year, to allDirectors of the Company, directly or indirectly, by theCompany or by any related party. 440,891 798,157The aggregate of income paid or payable, or otherwisemade available, in respect of the financial year, to allDirectors of each entity in the consolidated entity,directly or indirectly, by the entities in which theyare Directors or by any related party. 440,891 798,157The number of Directors of the Company whose totalincome falls within each successive $10,000 band of income:No.No.$10,000 – $19,999 – 4$20,000 – $29,999 – 1$30,000 – $39,999 2 –$60,000 – $69,999 1 –$70,000 – $79,999 – 3$90,000 – $99,999 – 1$100,000 – $109,999 – 1$110,000 – $119,999 – 1$130,000 – $139,999 1 –$170,000 – $179,999 – 1$180,000 – $189,999 1 –21

Notes to the Financial Statements (continued)for the financial year ended 30 June 2000ConsolidatedCompany2000 1999 2000 1999$ $ $ $7. EXECUTIVES’ REMUNERATIONAggregate remuneration of Executive Officers of theCompany working mainly in Australia and receiving$100,000 or more from the Company or from anyrelated party. 820,710 885,378Aggregate remuneration of Executive Officers ofeach entity in the consolidated entity working mainlyin Australia and receiving $100,000 or more from theentity for which they are Executive Officers or fromany related party. 820,710 885,378The number of Executive Officers whose remunerationfalls within each successive $10,000 band of income(commencing at $100,000):No. No. No. No.$100,000 – $109,999 1 4 1 4$120,000 – $129,999 1 – 1 –$130,000 – $139,999 2 1 2 1$140,000 – $149,999 1 1 1 1$170,000 – $179,999 – 1 – 1$180,000 – $189,999 1 – 1 –Aggregate remuneration of Executive Officers includesexecutive Directors.ConsolidatedCompany2000 1999 2000 1999$ $ $ $8. CURRENT RECEIVABLESTrade receivables 5,708,601 4,052,752 – –Less: Provision for doubtful debts (136,922) (145,221) – –5,571,679 3,907,531 – –Other receivables 114,272 113,012 – –Dividend receivable from wholly-ownedcontrolled entity – – 960,000 960,0005,685,951 4,020,543 960,000 960,00022

Wridgways Australia Limited Annual Report 2000ConsolidatedCompany2000 1999 2000 1999$ $ $ $9. CURRENT INVENTORIESAt costConsumables 305,198 339,037 – –10. CURRENT PROPERTYFreehold land and buildings held for resale:– At net realisable value – 750,000 – –11. OTHER CURRENT ASSETSPrepayments 874,587 945,143 10,839 17,37512. NON-CURRENT INVESTMENTSNon-Quoted InvestmentsAt costShares in wholly-owned controlled entity (Note 25) – – 11,688,898 11,688,89813. PROPERTY, PLANT AND EQUIPMENTTransport fleet:At cost 2,234,542 2,138,627 2,234,542 2,138,627Accumulated depreciation (792,263) (498,245) (792,263) (498,245)1,442,279 1,640,382 1,442,279 1,640,382Equipment under finance lease:At capitalised cost 211,893 211,893 211,893 211,893Accumulated amortisation (100,061) (29,430) (100,061) (29,430)111,832 182,463 111,832 182,463Plant and equipment:At cost 1,837,246 1,297,357 – –Accumulated depreciation (726,976) (488,670) – –Aggregate depreciation allocated during the year isrecognised as an expense and disclosed in Note 2to the financial statements.1,110,270 808,687 – –2,664,381 2,631,532 1,554,111 1,822,84523

Notes to the Financial Statements (continued)for the financial year ended 30 June 2000ConsolidatedCompany2000 1999 2000 1999$ $ $ $14. INTANGIBLESGoodwill 2,308,129 2,308,129 – –Accumulated amortisation (317,367) (201,961) – –1,990,762 2,106,168 – –Brand name: At cost (Note 1(k)) 8,000,000 8,000,000 – –Aggregate amortisation allocated during the year isrecognised as an expense and disclosed in Note 2 tothe financial statements.9,990,762 10,106,168 – –15. OTHER NON-CURRENT ASSETSFuture income tax benefit – timing differences 740,237 813,238 59,290 39,63116. CURRENT ACCOUNTS PAYABLEUnsecured:Trade payables and accruals 8,340,022 7,875,651 24,391 52,16617. CURRENT BORROWINGSSecured:Bank overdraft (i) – – 1,094,595 173,485Finance lease liability (ii) (Note 23(b)) 72,350 66,905 72,350 66,90572,350 66,905 1,166,945 240,390(i)(ii)Secured by a fixed and floating charge andguarantees over the assets of the Companyand its wholly-owned controlled entity.Secured by the asset leased.18. CURRENT PROVISIONSDividend 960,000 960,000 960,000 960,000Taxation 765,460 496,499 132,031 4,505Employee entitlements 1,132,972 1,067,776 112,613 110,0862,858,432 2,524,275 1,204,644 1,074,59124

Wridgways Australia Limited Annual Report 2000ConsolidatedCompany2000 1999 2000 1999$ $ $ $19. NON-CURRENT BORROWINGSUnsecured:Non-trade payable: wholly-owned controlled entity – – 4,681,917 5,190,926Secured:Bills of exchange (i) 5,000,000 6,000,000 5,000,000 6,000,000Finance lease liability (ii) (Note 23(b)) 44,892 117,243 44,892 117,2435,044,892 6,117,243 5,044,892 6,117,2435,044,892 6,117,243 9,726,809 11,308,169(i)(ii)Secured by a fixed and floating charge andguarantees over the assets of the Companyand its wholly-owned controlled entity.Secured by the asset leased.20. NON-CURRENT PROVISIONSEmployee entitlements 724,754 667,007 52,106 –Deferred income tax 520,981 646,392 116,421 98,93321. EMPLOYEE ENTITLEMENTSThe aggregate employee entitlement liabilityrecognised and included in the financialstatements is as follows:1,245,735 1,313,399 168,527 98,933Provision for employee entitlements:Current (Note 18) 1,132,972 1,067,776 112,613 110,086Non-current (Note 20) 724,754 667,007 52,106 –1,857,726 1,734,783 164,719 110,08622. ISSUED CAPITAL32,000,000 fully paid ordinary shares (1999: 32,000,000) 1,500,000 1,500,000 1,500,000 1,500,000Ordinary Share CapitalOrdinary shares carry one vote per share and carry the right to dividends.25

Notes to the Financial Statements (continued)for the financial year ended 30 June 200023. COMMITMENTS FOR EXPENDITURE(a) Operating LeasesCommitments under non-cancellable operatingleases contracted for:ConsolidatedCompany2000 1999 2000 1999$ $ $ $Premises (i)Not longer than 1 year 3,089,530 2,942,520 – –Longer than 1 year and not longer than 5 years 9,535,248 7,322,270 – –Longer than 5 years 6,451,897 3,739,691 – –19,076,675 14,004,481 – –Plant and Equipment (ii)Not longer than 1 year 341,007 59,755 341,007 59,755Longer than 1 year and not longer than 5 years 1,067,772 239,019 1,067,772 239,019Longer than 5 years 59,752 219,530 59,752 219,5301,468,531 518,304 1,468,531 518,304Leasing Arrangements(i) The consolidated entity leases a number of premises throughout Australia. The rental period ofeach individual lease agreement varies between one and ten years with renewal options ranging fromtwo to five years. The majority of lease agreements are subject to rental adjustments in line withmovements in the Consumer Price Index or Market Rentals.(ii)Consists of agreements for the leasing of containers and the transport fleet.The lease agreement for containers is for five years. At the expiration of the lease agreement,the consolidated entity has the option to renew the lease for a further two year term or purchasethe containers.The lease agreements for the transport fleet are for seven years. These lease agreements do notinclude renewal options.26

Wridgways Australia Limited Annual Report 2000ConsolidatedCompany2000 1999 2000 1999$ $ $ $23. COMMITMENTS FOR EXPENDITURE (continued)(b) Finance Lease LiabilitiesEquipmentNo later than 1 year 78,986 78,986 78,986 78,986Later than 1 year and not later than 5 years 46,075 125,062 46,075 125,062Later than 5 years – – – –Minimum future finance charges 125,061 204,048 125,061 204,048Less future finance charges 7,819 19,900 7,819 19,900Finance lease liabilities 117,242 184,148 117,242 184,148Included in the financial statements as:Current borrowings (Note 17) 72,350 66,905 72,350 66,905Non-current borrowings (Note 19) 44,892 117,243 44,892 117,243The finance lease agreement for equipment is forthree years and does not include a renewal option.24. DIVIDENDSDividends paid or proposed during the financial year:117,242 184,148 117,242 184,148Fully franked to 36%– ordinary shares 320,000 1,280,000 320,000 1,280,000– convertible redeemable ordinary shares – 780,000 – 780,000Fully franked to 34%– ordinary shares 960,000 – 960,000 –1,280,000 2,060,000 1,280,000 2,060,000Adjusted franking account balance 3,639,793 2,555,419 416,193 393,47125. CONTROLLED ENTITIESOwnership InterestName Country 2000 1999of Entity of Incorporation % %Parent EntityWridgways Australia LimitedAustraliaControlled EntitiesWridgways Limited Australia 100 10027

Notes to the Financial Statements (continued)for the financial year ended 30 June 200026. NOTES TO THE STATEMENT OF CASH FLOWS(a) Reconciliation of CashFor the purpose of the statement of cash flows,cash includes cash on hand and in banks, net ofoutstanding bank overdrafts. Cash at the end ofthe financial year as shown in the statement ofcash flows is reconciled to the related items inthe balance sheet as follows:ConsolidatedCompany2000 1999 2000 1999$ $ $ $Cash 891,132 1,128,704 26,668 –Bank overdraft – – (1,094,595) (173,485)(b) Reconciliation of Operating Profit after Income Taxto Net Cash Flows from Operating Activities891,132 1,128,704 (1,067,927) (173,485)Operating profit after income tax 2,033,925 1,964,145 1,533,990 2,302,168(Profit)/loss on sale of property, plantand equipment (27,694) 4,154 (1,887) 3,673Depreciation of non-current assets 612,850 552,793 296,385 274,420Amortisation of non-current assets 186,037 144,836 70,631 29,430(Increase)/decrease in assets:Current trade and other receivables (1,665,408) 347,689 – –Dividend receivable – – – (766,250)Inventories 33,839 (4,930) – –Prepayments 70,556 (132,292) 6,536 2,217Future income tax benefit 73,001 17,991 (19,659) 60,890Increase/(decrease) in liabilities:Trade payables and accruals 464,371 (522,084) (27,775) (34,521)Provision for employee entitlements 122,943 175,098 54,633 34,529Provision for taxation 268,961 (926,411) 127,526 (24,353)Provision for deferred income tax (125,411) 84,909 17,488 63,609Net cash from operating activities 2,047,970 1,705,898 2,057,868 1,945,81228

Wridgways Australia Limited Annual Report 200026. NOTES TO THE STATEMENT OF CASH FLOWS (continued)(c) Financing FacilitiesConsolidatedCompany2000 1999 2000 1999$ $ $ $Secured bill acceptance facility, reviewed annually:Amount used 5,000,000 6,000,000 5,000,000 6,000,000Amount unused 2,000,000 1,000,000 2,000,000 1,000,0007,000,000 7,000,000 7,000,000 7,000,000Secured bank overdraft facility, reviewedannually and payable at call:Amount used – – 1,000,000 173,485Amount unused 1,000,000 1,000,000 – 826,51527. NON-HEDGED FOREIGN CURRENCY BALANCESThe Australian dollar equivalent of foreign currencybalances included in the financial statements whichare not effectively hedged are as follows:1,000,000 1,000,000 1,000,000 1,000,000Current Accounts PayableNew Zealand Dollars 18,513 – – –US Dollars 182,680 226,355 – –Great Britain Pounds 184,020 98,542 – –Sweden Kronor 12,381 15,470 – –Canadian Dollars 10,038 13,470 – –Singapore Dollars – 1,124 – –German Deutsche Marks 4,284 7,827 – –Belgium Francs – 5,737 – –French Francs 2,312 2,901 – –Papua New Guinea Kina 2,144 2,254 – –Japanese Yen – 3,829 – –Netherlands Guilders 3,502 – – –South African Rand – 2,546 – –Swiss Franc – 10,714 – –419,874 390,769 – –Current ReceivablesUS Dollars 14,297 96,520 – –14,297 96,520 – –29

Notes to the Financial Statements (continued)for the financial year ended 30 June 200028. FINANCIAL INSTRUMENTS(a) Significant Accounting PoliciesDetails of the significant accounting policies and methods adopted, including the criteria for recognition,the basis of measurement and the basis on which revenues and expenses are recognised, in respectof each class of financial asset, financial liability and equity instrument are disclosed in Note 1 to thefinancial statements.(b) Objectives of Derivative Financial InstrumentsThe consolidated entity does not enter into derivative financial instruments to manage its exposureto foreign exchange rate risk.The consolidated entity does not enter into or trade derivative financial instruments forspeculative purposes.The consolidated entity’s maximum exposure to foreign exchange risk is disclosed in Note 27 to thefinancial statements.(c)Interest Rate RiskThe interest rate risk of financial assets and liabilities recorded in the balance sheet, net of any provisionfor losses, is nil except for the following:Average Variable Fixed Interest Rate MaturityInterest Interest RateRate Less than Less than 1 to 51 Year 1 Year Years Total% $ $ $ $2000AssetsCash 5.3 891,132 – – 891,132LiabilitiesBills of exchange 7.0 – 5,000,000 – 5,000,000Finance lease liability 7.8 – 72,350 44,892 117,2421999AssetsCash 3.9 1,128,704 – – 1,128,704LiabilitiesBills of exchange 5.2 – 6,000,000 – 6,000,000Finance lease liability 7.8 – 66,905 117,243 184,148(d) Credit RiskCredit risk refers to the risk that a counterparty will default on its contractual obligations resulting infinancial loss to the consolidated entity. The consolidated entity has adopted the policy of only dealingwith creditworthy counterparts and obtaining sufficient collateral or other security where appropriate, asa means of mitigating the risk of financial loss from defaults. The consolidated entity measures risk on afair value basis.The carrying amount of financial assets recorded in the financial statements, net of any provision forlosses, represents the consolidated entity’s maximum exposure to credit risk, without taking account ofthe value of any collateral or other security obtained.(e)Net Fair ValueThe carrying amount of financial assets and financial liabilities recorded in the financial statementsrepresents their respective net fair values, determined in accordance with the accounting policiesdisclosed in Note 1 to the financial statements.30

Wridgways Australia Limited Annual Report 200029. SEGMENT INFORMATIONThe consolidated entity operates in the transport industry (through the provision of removal and storageservices) and operates only in Australia.30. CONTINGENT LIABILITIESPerformance guarantees of $412,000 (1999: $453,000) are held by Westpac Banking Corporation on behalf ofWridgways Limited.2000 1999Cents per Cents perShare Share31. EARNINGS PER SHAREBasic earnings per share 6.36 6.14Diluted earnings per share is not materially differentfrom basic earnings per share and therefore is notdisclosed in the financial statements2000 1999No. No.The weighted average number of ordinary shares on issue usedin the calculation of basic earnings per share 32,000,000 32,000,00031

Notes to the Financial Statements (continued)for the financial year ended 30 June 200032. RELATED PARTY DISCLOSURES(a) Equity Interests in Related PartiesDetails of the percentage of ordinary shares held in the wholly-owned controlled entity are disclosed inNote 25 to the financial statements.(b) Directors’ RemunerationDetails of Directors’ remuneration are disclosed in Note 6 to the financial statements.(c)Directors’ Equity HoldingsDirectors and their Director-related entities held 6,130,332 (1999: 6,083,332) ordinary shares at thereporting date.(d) Transactions Within the Wholly-Owned GroupThe ultimate parent entity in the wholly-owned group is Wridgways Australia Limited.Details of dividend revenue derived by the parent entity from the wholly-owned controlled entity isdisclosed in Note 2 to the financial statements.During the financial year Wridgways Australia Limited derived management fee income through theprovision of administrative services at cost plus 30% (1999: 30%) and rental of the transport fleet atcommercial rates, as disclosed in Note 2 to the financial statements.Amounts receivable from and payable to the wholly-owned controlled entity are disclosed in Notes 8 and19 to the financial statements.(e)Transactions with Director Related PartiesDetails of interest paid (based on normal commercial terms and conditions) during the 1999 financial yearon loans owing to Director-related entities, being Catalyst Trusty E Pty Ltd and Catalyst Trusty F Pty Ltdare disclosed in Note 2 to the financial statements. These loans were repaid during the financial yearended 30 June 1999.During the 1999 financial year, 375,000 convertible redeemable ordinary shares were bought backby the parent entity from the Director-related entities, being Catalyst Trusty E Pty Ltd and CatalystTrusty F Pty Ltd. The cost of acquisition was $375,000.During the financial year, the consolidated entity provided removal and storage services to Directors andtheir Director-related entities, which were domestic or trivial in nature, on the same terms and conditionsavailable to other employees and customers.32

Wridgways Australia Limited Annual Report 2000Directors’ Declarationfor the financial year ended 30 June 2000The Directors declare that:(a)(b)(c)(d)The attached financial statements and notes thereto comply with accounting standards;The attached financial statements and notes thereto give a true and fair view of the financial position andperformance of the Company and the consolidated entity;In the Directors’ opinion, the attached financial statements and notes thereto are in accordance with theCorporations Law; andIn the Directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay itsdebts as and when they become due and payable.Signed in accordance with a resolution of the Directors made pursuant to s.295(5) of the Corporations Law.On behalf of the DirectorsMr A W WhatmoreChairmanMr D F SticklandManaging DirectorMELBOURNE8 September 200033

Independent Audit Report to the Membersof Wridgways Australia LimitedSCOPEWe have audited the financial report of Wridgways Australia Limited for the financial year ended 30 June2000 as set out on pages 12 to 33. The financial report includes the consolidated financial statements of theconsolidated entity comprising the Company and the entities it controlled at the year’s end or from time totime during the financial year. The Company’s Directors are responsible for the financial report. We haveconducted an independent audit of the financial report in order to express an opinion on it to the membersof the Company.Our audit has been conducted in accordance with Australian Auditing Standards to provide reasonableassurance whether the financial report is free of material misstatement. Our procedures included examination,on a test basis, of evidence supporting the amounts and other disclosures in the financial report, and theevaluation of accounting policies and significant accounting estimates. These procedures have beenundertaken to form an opinion whether, in all material respects, the financial report is presented fairly inaccordance with Accounting Standards issued in Australia and other mandatory professional reportingrequirements and statutory requirements so as to present a view which is consistent with our understandingof the Company’s and the consolidated entity’s financial position, and performance as represented by theresults of their operations and their cash flows.The audit opinion expressed in this report has been formed on the above basis.AUDIT OPINIONIn our opinion, the financial report of Wridgways Australia Limited is in accordance with:(a)the Corporations Law, including:(i)(ii)giving a true and fair view of the Company’s and consolidated entity’s financial position as at 30 June2000 and of their performance for the year ended on that date; andcomplying with Accounting Standards and the Corporations Regulations; and(b)other mandatory professional reporting requirements.DELOITTE TOUCHE TOHMATSUD A WATSONPartnerChartered AccountantsMELBOURNE8 September 2000The liability of Deloitte Touche Tohmatsu, is limited by, and to the extent of, theAccountants’ Scheme under the Professional Standards Act 1994 (NSW).34

Wridgways Australia Limited Annual Report 2000Additional Stock Exchange Informationas at 21 August 2000NUMBER OF HOLDERS OF EQUITY SECURITIES32,000,000 fully paid ordinary shares are held by 1,095 individual shareholders.All issued ordinary shares carry one vote per share.DISTRIBUTION OF HOLDERS OF EQUITY SECURITIESFully Paid Ordinary Shares1 – 1,000 261,001 – 5,000 3915,001 – 10,000 37110,001 – 100,000 293100,001 and over 141,095Holdings less than a marketable parcel 0SUBSTANTIAL SHAREHOLDERSFully PaidOrdinary Shareholders Number PercentageD F & J Stickland 3,840,000 12.00Questor Financial Services Ltd 3,318,530 10.37Starbrite Consultants Pty Ltd 2,133,332 6.67B C & C A Clarke Investments Pty Ltd 2,133,332 6.67SJ & HN Crowle Pty Ltd 2,026,665 6.33Deborah Nominees Pty Ltd 1,994,200 6.23Pook Investments Pty Ltd 1,920,000 6.00D P Sutton 1,765,139 5.5219,131,198 59.7935

Additional Stock Exchange Information (continued)as at 21 August 2000TWENTY LARGEST HOLDERS OF EQUITY SECURITIESFully PaidOrdinary Shareholders Number PercentageD F & J Stickland 3,840,000 12.00Questor Financial Services Ltd (TPS RF A/C) 3,318,530 10.37Starbrite Consultants Pty Ltd 2,133,332 6.67B C & C A Clarke Investments Pty Ltd 2,133,332 6.67SJ & HN Crowle Pty Ltd 2,026,665 6.33Deborah Nominees Pty Ltd 1,994,200 6.23Pook Investments Pty Ltd 1,920,000 6.00D P Sutton 1,765,139 5.52Questor Financial Services Ltd (TPS PIP A/C) 369,325 1.15E B Hansen 193,600 .61Dawson Moving & Storage Pty Ltd 140,000 .44E & T M Gill 120,000 .38Griffith Management Pty Ltd 120,000 .38C J Quay 115,000 .36A W Whatmore 100,000 .31Tower Trust Ltd 90,000 .28J W & D E Thomas 72,500 .23R P Black 70,000 .22Imperu Nominees Pty Ltd 70,000 .22Steelport Industries Pty Ltd 64,100 .2020,655,723 64.5736