Shriro : Appendix 4D and 2022 Half Year Financial Statements

For personal use only

SHRIRO HOLDINGS LIMITED

ACN 605 279 329

Condensed Half Year Financial Report

for the half year ended

31 December 2021

For personal use only

Shriro Holdings Limited
Contents	Page
Appendix 4D ...............................................................................................................................................	2
Corporate Governance Statement .............................................................................................................	3
Directors' Report.........................................................................................................................................	4
Condensed Consolidated Statement of Profit or Loss ...............................................................................	8
Condensed Consolidated Statement of Other Comprehensive Income ....................................................	9
Condensed Consolidated Statement of Financial Position ......................................................................	10
Condensed Consolidated Statement of Changes in Equity .....................................................................	11
Condensed Consolidated Statement of Cash Flows................................................................................	12
Basis of preparation..................................................................................................................................	13
1.	Trading Operations..............................................................................................................................	14
	1.1	Segment information .................................................................................................................	14
	1.2	COVID-19 impact on operations ...............................................................................................	15
2.	Assets and Liabilities...........................................................................................................................	17
	2.1	Fair value measurement of financial instruments .....................................................................	17
	2.2	Assets held for sale...................................................................................................................	17
3.	Investment and Financing ...................................................................................................................	18
	3.1	Borrowings ................................................................................................................................	18
4.	Shareholder Equity ..............................................................................................................................	19
	4.1	Issued capital ............................................................................................................................	19
	4.2	Earnings per share....................................................................................................................	19
	4.2.1	Dividends...................................................................................................................................	19
5.	Group Structure and Key Management ..............................................................................................	20
	5.1	Key management personnel compensation..............................................................................	20
6.	Other Notes .........................................................................................................................................	20
	6.1	Events after the reporting date..................................................................................................	20
	6.2	Standards and interpretations in issue not yet effective ...........................................................	20
Directors' Declaration ...............................................................................................................................	21
Independent Auditor's Report...................................................................................................................	22
Company Information ...............................................................................................................................	24

SHRIRO HOLDINGS LIMITED CONDENSED HALF YEAR FINANCIAL REPORT 31 DECEMBER 2021 1

only

Shriro Holdings Limited

Appendix 4D

Results for announcement to the market

Shriro Holdings Limited ("Shriro") changed its year end from 31 December to 30 June and therefore the previous financial period did not include a half year reporting period. The prior corresponding comparative period has been included below as the half year to 31 December 2021, with movement percentages calculated between the half year to 31 December 2021 and the half year to 31 December 2020.

	Half year to		Half year to				6 months to
	31 December		31 December		Movement		30 June
	2021		2020		%		2021
	$million		$million				$million

use

Revenue from ordinary activities

EBITDA1

Profit from ordinary activities before tax

Profit from ordinary activities after tax attributable to members

Basic earnings per share (cents per share) Diluted earnings per share (cents per share)

Interim dividend

Net tangible assets per share (cents per share)

Diluted net tangible assets per share (cents per share)

							(14.8)
	95.9				112.6	94.3
	14.5						(33.5)		12.3
				21.8
	11.6						(37.6)		9.8
				18.6
	8.2				13.5		(38.3)		6.8
	8.6				14.1		(39.0)		7.1
	8.5				14.0		(39.3)		7.0
	Amount per				Percentage
	security				franked
	6.0				100%
	31 December				31 December
	2021				2020
	67.0				57.8
	65.8				57.0

For personal

On 25 February 2022, the Directors declared an interim dividend for the half-year 31 December 2021 of 6.0 cents per share fully franked with an ex-dividend date of 16 March 2022, a record of 17 March 2022 and payable on 07 April 2022.

1 EBITDA for the half-year ended 31 December 2021 includes $1,144,968 of New South Wales Government JobSaver subsidies (Commonwealth Government JobKeeper, 31 December 2020: $1,399,500)

SHRIRO HOLDINGS LIMITED CONDENSED HALF YEAR FINANCIAL REPORT 31 DECEMBER 2021 2

For personal use only

Shriro Holdings Limited

Corporate Governance Statement

The Board and management of the Company are committed to effective corporate governance in order to ensure accountability and transparency to shareholders and other stakeholders, including customers, employees, staff and regulatory bodies. The Company has adopted, and has substantially complied with, the ASX Corporate Governance Principles and Recommendations (Fourth Edition) ('the Recommendations') to the extent appropriate to the size and nature of the Group's operations.

The Company prepared a statement which set out the corporate governance practices for lodgement with the Company's 2021 Annual Report, these practices continued to be in operation through-out the half year (Corporate Governance Statement).

The Corporate Governance Statement approved by the Board was lodged with the Company's 2021 Annual Report on 31 October 2021 with the ASX and can also be found on the Company's website at https://www.shriro.com.au/investor/corporate_governance.

SHRIRO HOLDINGS LIMITED CONDENSED HALF YEAR FINANCIAL REPORT 31 DECEMBER 2021 3

For personal use only

Shriro Holdings Limited

Directors' Report

The Directors present their report in compliance with the provisions of the Corporations Act 2001 for Shriro Holdings Limited (the "Company") and its subsidiaries (collectively the "Group") for the half year ended 31 December 2021.

DIRECTORS AND OFFICERS

Directors of Shriro Holdings Limited during the half year ended 31 December 2021 were:

Cornelia Meyer - Independent Chairman (appointed 13 September 2021)

Cheryl Hayman - Independent non-executive Director

Abigail Cheadle - Independent non-executive Director

Kim Slater - Independent non-executive Director (appointed 01 October 2021)

Tim Hargreaves - Non-independent Managing Director

Stephen Heath - Independent Chairman (Resigned 01 November 2021)

The Company Secretary during the half year ended 31 December 2021 was Lisa Jones.

PRINCIPAL ACTIVITIES

The Group is a leading kitchen appliances and consumer products marketing and distribution business operating in Australia and New Zealand. The Group is also expanding internationally focusing on BBQs and BBQ accessories.

The Group markets and distributes an extensive range of company-owned brands (including Omega, Everdure including Everdure by Heston Blumenthal, Robinhood and Omega Altise) and third party owned brands (including Casio, Blanco and Pioneer).

Products marketed and distributed by the Group include calculators, watches, musical instruments, audio products, kitchen appliances, sinks and taps, laundry products, consumer electronics, car audio, amplifiers, professional DJ, hi-fi speakers, barbeques, and heaters and cooling products.

RESULTS AND REVIEW OF OPERATIONS
		Half year to			Half year to				6 months to
Results summary		31 December			31 December		Movement		30 June
	2021			2020		%		2021
		$million			$million				$million
Revenue from ordinary activities		95.9			112.6		(14.8)		94.3
Gross Margin		42.7%			40.2%		2.5pp		41.0%
Other income1		1.1			-		-		-
Operating Expenses		27.6			23.5		17.4		26.4
EBITDA		14.5			21.8		(33.5)		12.4
Depreciation and amortisation		2.6			2.6		-		2.4
Interest		0.3			0.6		(50.0)		0.1
Profit Before Tax		11.6			18.6		(37.6)		9.8
Profit After Tax		8.2			13.5		(39.3)		6.8

During the six months to 31 December 2021 the Group faced both a cyber incident and on-going lockdowns in regions which contribute significantly to the Group's performance (being New South Wales, Victoria and New Zealand).

The cyber incident coincided with the commencement of lock downs and therefore the impact of each element is difficult to decipher. While operations were affected in July due to the cyber incident it appears that much of the impact was timing of sales. The lockdowns, which continued until October, did have an impact on sales, with Q2 making up some of the shortfall. The lockdowns which occurred during the period were more regionalised (New South Wales, Victoria and Auckland) than those implemented in the pcp, which were more widespread. Given the more limited impact of lockdowns, the significant federal government subsidies paid to companies, and to individuals directly, were not in place and as such the current year result did not benefit from the increased consumer spend which was seen in the second half of 2020.

In addition, the Group's international expansion of its Everdure by Heston Blumenthal products continues to grow, which is evident in the six months to 31 December 2021 with revenue in the 'rest of the world' segment increasing by 31.6% on the prior comparative period ('pcp') to $2.2 million.

1 Government COVID support was provided by the New South Wales Government in the six months to 31 December 2021, Australian Commonweatlh Government and New Zealand Government subsidies have been included in operating expenses in the six months to 31 December 2020

SHRIRO HOLDINGS LIMITED CONDENSED HALF YEAR FINANCIAL REPORT 31 DECEMBER 2021 4