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McPHERSON’S LIMITED

 ANNUAL REPORT 2015

The Board of Directors present their report on the consolidated entity (referred to hereafter as the Group) consisting of McPherson’s Limited and 

the entities it controlled at the end of, or during, the year ended 30 June 2015.

(A) DIRECTORS

The following persons were Directors of McPherson’s Limited from the beginning of the financial year to the date of this report:
G.A Cubbin, P.J. Maguire, and A.M. Lacaze.
J.M. McKellar was appointed as an Independent Non-Executive Director on 23 February 2015 and continues in office at the date of this report.
J.P. Clifford was an Independent Non-Executive Director from the beginning of the financial year until his resignation on 23 February 2015.
D.J. Allman was an Independent Non-Executive Director and Chairman from the beginning of the financial year until his resignation on 1 July 2015.
G.A. Cubbin was appointed Chairman on 1 July 2015.

(B) PRINCIPAL ACTIVITIES

McPherson’s, established in 1860, is a leading supplier of health & beauty, consumer durable and household consumable products in Australasia, 

with operations in Australia, New Zealand and Asia. The Health & Beauty Division markets and distributes beauty care, hair care, skincare and 

fragrance product ranges; the Home Appliance Division markets and distributes large appliances such as ovens, cooktops, washing machines and 

dishwashers; and the Household Consumables Division markets and distributes kitchen essentials such as plastic bags, baking paper, cling wrap and 

aluminium foil.
The Housewares Division markets and distributes products such as cutlery, knives, bakeware and kitchen accessories under brands such as Wiltshire, 

Stanley Rogers, Furi and Luigi Bormioli.  McPherson’s has a 49% stake in this division with the remaining 51% owned by the Fackelmann Group.
McPherson’s manages some significant brands for overseas agency partners such as Gucci, Dolce & Gabbana and Hugo Boss Fine Fragrances; 

however, the majority of revenue is derived from the Company’s diversified portfolio of owned market-leading brands, including Manicare, Lady 

Jayne, Dr. LeWinn’s, A’kin, Al’chemy, Swisspers, Moosehead, Maseur, Euromaid, Baumatic and Multix.
During the year the Group expanded its Health & Beauty product range with the acquisition of natural skincare brand A’kin and natural hair care 

brand Al’chemy.

(C) DIVIDENDS

Details of dividends paid or declared in respect of the current financial year are as follows:

$’000

Interim ordinary dividend of 6.0 cents per fully paid ordinary share paid on 9 April 2015 (fully franked)

5,801

Final ordinary dividend of 2.0 cents per fully paid ordinary share declared by Directors (fully franked) and payable on 10 November 2015 but not 
recognised as a liability at year end

1,947

Total dividends in respect of the year

7,748

The 2014 final ordinary dividend of $4,772,000 (5.0 cents per fully paid ordinary share) referred to in the Directors’ Report dated 18 August 2014 

was paid on 11 November 2014.

(D) CONSOLIDATED RESULTS

The consolidated profit after tax of the Group for the year ended 30 June 2015 was $8,840,000 (2014: loss of $67,039,000). The current year profit 

after tax is inclusive of significant items amounting to a net expense after tax of $3,122,000 (2014: net expense $81,291,000).  Refer to Note 5(C) 

Significant items for further information.
Excluding significant items, the consolidated profit after tax for the year ended 30 June 2015 was $11,962,000 (2014: $14,252,000).

(E) REVIEW OF OPERATIONS

The review of operations of the Group is contained in the Chairman and Managing Directors’ Report on pages 6 to 7 and the Review of Operations 

on pages 9 to 13 of the Annual Report and forms part of this Directors’ report.  

(F) SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

Significant changes in the state of affairs of the Group during the financial year were as follows:
On 19 August 2014, the Group announced its plan to divest 51% of its Australian, Singapore and Hong Kong Housewares business to the Fackelmann 

Group.  The Fackelmann Group is a global manufacturer and distributor of kitchen, baking, home, leisure and bathroom products.  On 31 October 

2014, the divestment was completed with the new venture now operating as a joint venture and distributing the combined ranges of housewares 

products. Refer to Note 14(A) for further details.
On 1 December 2014, the Group’s Australian consumer products business finalised its acquisition of natural skincare brand A’kin and natural hair care 

brand Al’chemy for a total consideration of $8,061,000.  Refer to Note 31.

DIRECTORS’ REPORT