Korvest : 2021 Korvest Annual Report

2021 Annual Report

During the financial year 2021, Korvest Ltd has been celebrating a significant milestone: fifty years of manufacturing in Australia, supplying to projects throughout Australia.

Our story began in September 1970, when Kia Ora Investments Limited was listed on the Australian Stock Exchange. At that time, the company consisted of a handful of employees working from a sole location on Greenhill Road in South Australia, offering a variety of products and services. Three years later, the company was transformed when it purchased a busy and thriving galvanising business at Beverley. Eglinton's Galvanising Works became Korvest Galvanisers and the steady stream of customer trucks visiting Korvest to drop off or pick up urgent requirements continues to this day.

In 1983, a new galvanising facility was installed at our current head office location in Kilburn, South Australia, featuring (at the time) the longest galvanising kettle in the country. Four years later, in 1987, Korvest purchased EzyStrut Cable and Pipe Supports, and moved that business to the same site, where both EzyStrut and Korvest Galvanisers still remain in 2021, proudly manufacturing in Australia and stocking branches in all state capital cities.

Korvest Ltd continues to grow, continues to innovate and continues to employ hundreds of Australians in the manufacturing industry. We're fifty years old, but our story is only just beginning.

www.ezystrut.com.au

TABLE OF

CONTENTS

4 DIRECTORS' REPORT

1. REMUNERATION REPORT - AUDITED

1. 5 YEAR SUMMARY
2. FINANCIAL STATEMENTS

1. ASX ADDITIONAL INFORMATION

Korvest Ltd and controlled entities

ABN: 20 007 698 106

Annual Report, 30 June 2021

Cover art inspired by Kia Ora Investments interim report dated December 1970

REPORT DIRECTORS'

DIRECTORS' REPORT

The directors present their report together with the consolidated financial statements of the Group comprising of Korvest Ltd ('the Company') and its subsidiaries for the financial year ended 30 June 2021 and the auditor's report thereon.

DIRECTORS

The directors of the Company at any time during or since the end of the financial year are:

Graeme Billings		Chris Hartwig
Chairman		Managing Director

BCom FCA MAICD

Appointed Chairman 18 September 2014 A Director since May 2013

Mr Billings retired from PricewaterhouseCoopers in 2011 after 34 years where he was a senior partner in the assurance practice.

Chairmain G.U.D. Holdings Limited

Director Clover Corporation Limited Chairman Austco Healthcare Ltd

Member of Audit and Remuneration Committees

BA(Acc), MAICD

A Director since 28 February 2018

Mr Hartwig has held a number of senior roles in the steel and electrical manufacturing industries.

Director Galvanising Association of Australia

Gerard Hutchinson

Independent Non-Executive Director

MBA, MBL, MSc(IS), BEc, MA (Research), FCA,

FAICD, FAIM

A Director since November 2014

Mr Hutchinson has held roles of Chief Financial Officer and Managing Director in a range of large businesses across the construction, engineering sectors. He is currently Chief Financial Officer for Elagancia Group.

Chairman of Audit Committee and member of Remuneration Committee

Gary Francis

Independent Non-Executive Director

BSc. (Hons) (Civil), MAICD

A Director since February 2014

Mr Francis has worked in the construction industry at Senior Manager or Director level in Australia and Asia.

Chairman of Remuneration Committee and member of Audit Committee

Andrew Stobart		Steven McGregor
Independent Non-Executive Director		Finance Director
B. Eng (Hons), Grad Dip Bus Admin, GAICD		BA(Acc), FCA, AGIA, ACIS
A Director since August 2016		Company Secretary since April 2008
Former Chairman Nexans Olex Australia &		Appointed as Finance Director 1 January 2009
New Zealand		Mr McGregor previously held the role of Chief
Member of Audit and Remuneration Committees		Operating Officer and Company Secretary for an
		unlisted public company. Prior to that he spent 9
		years in the assurance division of KPMG.

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DIRECTORS' REPORT

For the year ended 30 June 2021

COMPANY SECRETARY

Mr Steven J W McGregor FCA, AGIA, ACIS, BA(Acc) was appointed to the position of company secretary in April 2008. Mr McGregor previously held the role of Chief Operating Officer and Company Secretary with an unlisted public company for seven years.

RETIREMENT AND RE-ELECTIONS

In accordance with the Constitution, Gerard Hutchinson retires from the Board at the forthcoming Annual General Meeting on 22 October 2021 and offers himself for re-election.

DIRECTORS' MEETINGS

The number of directors' meetings, including meetings of committees of directors, and number of meetings attended by each of the directors of the Company during the financial year are:

Director		Board	Audit Committee	Remuneration	Nomination
	Meetings		Meetings	Committee Meetings	Committee Meetings
	A		B	A		B	A	B	A	B
Mr G Billings
14		14	4		4	3	3	2	2
Mr G Francis	14		14	4		4	3	3	2	2
Mr G Hutchinson	14		14	4		4	3	3	2	2
Mr A Stobart	14		14	4		4	3	3	2	2
Mr C Hartwig	14		14	-		-	-	-	-	-
Mr S McGregor	14		14	-		-	-	-	-	-

1. Number of meetings attended
2. Total number of meetings available for attendance

FINANCIAL RESULTS

The revenue from trading activities for the year ended 30 June 2021 (FY21) was $69.786m, up 10.6% on the previous year. This improvement was due to a significant increase in activity in the second half of the year after the first half revenue was 9.7% down on the prior year. As a result of trading conditions in May 2020, compared to May 2019, the Group qualified for the Government JobKeeper subsidy for the period from May to September 2020 with $1.864m of income from this subsidy included in the FY21 result following on from the $1.059m that was included in the FY20 result. More details on the impact and response to COVID-19 are provided in the review of operations on page 6. The Group recorded a profit after tax of $6.054m compared to $4.027m in the previous year.

DIVIDENDS

The directors announced a fully franked final dividend of 20.0 cents per share (2020: 13.0 cents per share) following an interim dividend of 15.0

cents per share at the half year (2020: 15.0 cents per share). The Dividend Reinvestment Plan (DRP) will remain suspended for the final dividend. The dividend will be paid on 3 September 2021 with a record date of 20 August 2021.

A summary of dividends paid or declared by the Company to members since the end of the previous financial year were:

Declared and paid during the year 2021

		Total amount	Franked/
	Cents per share	$'000	Unfranked	Date of payment
Interim 2021 ordinary	15.0	1,699	Fully franked	5 March 2021
Final 2020 ordinary	13.0	1,470	Fully franked	4 September 2020
Total amount
	3,169

Franked dividends declared and paid during the year were franked at the rate of 30 per cent.

Declared after end of year

After the reporting date the following dividends were proposed by the directors. The dividends have not been provided for and there are no income tax consequences to the Company.

			Total amount	Franked/
		Cents per share	$'000	Unfranked	Date of payment
Final ordinary	20.0	2,268	Fully franked	3 September 2021
Total amount		2,268

The financial effect of these dividends has not been brought to account in the financial statements for the year ended 30 June 2021 and will be recognised in subsequent financial reports.

DIRECTORS' REPORT

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