McPHERSON’S LIMITED

 ANNUAL REPORT 2015  

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57

(iii) Business contingent consideration adjustment

During the current year the Group recognised a $2,036,000 gain associated with the reassessment of the provision for contingent consideration 

relating to the Home Appliances acquisition. The reassessment was based on the actual outcomes achieved.
Refer to Note 31 for further information.

(iv) Restructure costs

The restructure costs recognised in the current year primarily relate to redundancy, inventory clearance, costs associated with the Housewares 

disposal and other restructuring activities undertaken by the Group, including transitioning the Group’s New Zealand warehouse to an outsourced 

logistics provider.
The restructure costs in the prior year primarily related to redundancy and inventory clearance costs associated with the businesses disclosed as 

held for sale at 30 June 2014.

(v) Acquisition and transition related costs

The acquisition and transition related costs recognised in the current year relate to certain costs associated with the Group’s acquisition of the A’kin 

and Al’chemy brands, together with legal and other professional advisory costs associated with a dispute surrounding the contingent consideration 

arrangement related to the Group’s acquisition in the prior year of the Dr. LeWinn’s and Revitanail brands.  
Acquisition and transition related costs in the prior year related to the transaction and other one-off transition related costs incurred primarily 

associated with the Group’s acquisition of the Think Appliances business (including the Baumatic brandname).  
Refer to Note 31 for further information.

(vi) Termination of interest rate swap associated with refinancing

In April 2015, the Group completed its refinancing.  This resulted in the Group significantly changing its financing arrangements and the 

counterparties involved.  As a result of this change the Group’s existing interest rate swap was terminated as it no longer aligned with the Group’s 

new financing structure.  Two new interest rate swaps were then subsequently entered into.  In accordance with accounting standards the expense 

associated with terminating the original interest rate swap has been recognised in full in the current year.

(vii) Disposal of Housewares business

The Group has recognised a gain of $1,240,000 on remeasurement of its put option associated with its remaining 49% investment in the Australian, 

Singapore and Hong Kong Housewares business.  This revaluation is based on the expected performance of the joint venture.  The Group has also 

recognised a loss of $1,240,000 on reclassifying the New Zealand Housewares business to assets classified as held for sale.
Refer to Note 14 for further information. 

NOTE 6.   DIVIDENDS

Details of dividends declared during the year ended 30 June 2015 are as follows:

2015

$’000

2014

$’000

Final 30 June 2014 dividend of 5.0 cents per fully paid share (2013: 7.0 cents per fully paid share) fully franked @ 30%

4,772

6,251

Interim 2015 dividend of 6.0 cents per fully paid share (2014: 6.0 cents per fully paid share) fully franked @ 30%

5,801

5,640

Total dividends 

10,573

11,891

Dividends not recognised at year end

In addition to the above dividends, since the year end the Directors have declared a fully franked final dividend of 2.0 
cents per fully paid share (2014: 5.0 cents per fully paid share). The aggregate amount of the dividend to be paid on 10 
November 2015 but not recognised as a liability at year end is:

1,947

4,772

Franked Dividends

Franked dividends paid after 30 June 2015 will be franked out of existing franking credits or out of franking credits arising 
from the payment of income tax in the year ending 30 June 2016.

Franking credits available for subsequent financial years based on a tax rate of 30%

17,948

21,351

The above amounts represent the balance of the franking account as at the end of the financial year, adjusted for receipt of the current tax assets.