Globe : Appendix 4 D – Half Year Accounts 31 Dec 2015 Download

Microsoft Word - APPENDIX 4D DEC 15 - FINAL 23 FEB 2016

Globe International Limited

ABN 65 007 066 033

Appendix 4D Half-Year Report for the period ended 31 Dec 2015

Lodged with the ASX under Listing Rule 4.2A

Contents Page

Results for announcement to the market 2

Directors' Report 3

Auditor's independence declaration 5

Consolidated income statement 6

Consolidated statement of comprehensive income 7

Consolidated balance sheet 8

Consolidated statement of changes in equity 9

Consolidated statement of cash flows 10

Notes to the accounts 11 - 15

Directors' declaration 16

Independent Auditor's review report to members 17 -18

Globe International Limited

ABN 65 007 066 033

Appendix 4D Half-Year Report - 31 Dec 2015

Half-year 2015 $'000	Half-year 2014 $'000	Movement $'000	Movement %
Net sales	78,834	65,985	12,849	19.5%
Revenue from ordinary activities	79,130	66,211	12,919	19.5%
Earnings before interest, tax, depreciation and amortisation (EBITDA)	4,241	2,750	1,492	54.2%
Net profit after tax attributable to members (NPAT)	2,904	1,582	1,322	83.6%

Results for Announcement to the Market Consolidated Entity

Parent Entity

Half-year 2015 $'000	Half-year 2014 $'000	Movement $'000	Movement %
Net profit after tax attributable to members (NPAT)	3,821	2,175	1,646	75.7%

Dividends / Distributions	Amount per security	Franked amount per security
Interim dividend	3 cents	3 cents

18 March 2016

Record date for determining entitlements to the dividend

NTA Backing	Current Period	Previous Period 30 June 2015
Net tangible asset backing per ordinary security	0.79	0.75

Explanation of Result

Please refer attached media release for a review and explanation of the financial results.

Your directors present their report on the consolidated entity of Globe International Limited ("the Company") and its controlled entities (collectively "the Group") as at the end of, or during, the half-year ended 31 December 2015.

DIRECTORS

The following persons were directors of the Company during the whole of the half-year and up to the date of this report: Paul Isherwood AO

Peter Hill

Stephen Hill

REVIEW OF OPERATIONS

The Group reported continued revenue growth and an improvement in profitability for the six months ended 31 December 2015, as set out below:

• Revenue of $ 79.1 million grew 19% over the prior corresponding period (10% in constant currency).

• Earnings before interest, tax, depreciation and amortization (EBITDA) of $4.2 million grew 54% over the same time last year.

• Net Profit After Tax (NPAT) of $ 2.9 million for the half year was $ 1.3 million ahead of the prior corresponding period.

Financial Performance

The Group's reported net sales for the half year were $78.8 million, an increase of 19%, which drove the underlying profitability improvement. This revenue and profitability improvement was a consequence of recent investments and diversification into new markets and brands.

The stand out from a regional perspective was Australia with revenue growth of 36%, with all branded divisions in Australia contributing. In Europe, sales though flat in reported currency, declined 4% in local currency as a result of hardgoods sales falling in the region as compared to a high point this time last year. In North America, while sales grew 16% in reported currency terms, in local currency, sales declined 6% after a softening of retail in the USA in the second quarter of the financial year.

Branded highlights included Globe apparel which continued to grow in all regions, work-wear brand FXD and Australia's 4Front division.

The significant growth in revenue translated to reported earnings before interest, tax, depreciation and amortisation (EBITDA) of $4.2 million for the half year, as compared to $2.8 million at the same time last year.

Financial Position

At 31 December 2015, the Group had available net cash of $7.3 million, which is $3.0 million lower than the $10.3 million net cash reserves at 30 June 2015. The utilisation of cash during the half year is principally a result of increased investment in working capital to facilitate continuing sales growth and to fund the $1.7 million 2015 final dividend paid October 2015. The underlying ageing profile of major working capital accounts such as accounts receivable and inventory remains satisfactory.

MATTERS SUBSEQUENT TO THE END OF THE HALF YEAR

There are no matters to report subsequent to the end of the half year.

DIVIDENDS

The Directors have determined that a fully franked interim dividend of 3 cents per share will be paid to shareholders on 14 April 2016.

AUDITOR'S INDEPENDENCE DECLARATION

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 5 and forms part of the Directors' Report for the half-year ended 31 December 2015.

ROUNDING OF AMOUNTS

The Company is of a kind referred to in Class Order 98/100, issued by the Australian Securities and Investments Commission, relating to the "rounding off" of amounts in the Directors' Report. Amounts in the Directors' Report have been rounded off in accordance with that Class Order to the nearest thousand dollars, or in certain cases, to the nearest dollar.

This report is made in accordance with a resolution of directors pursuant to section 306(3) of the Corporations Act 2001

...........................................................

Paul Isherwood AO Chairman

Melbourne

23 February 2016