HRL HOLDINGS LIMITED
Appendix 4E FY2019 Final Report
Results for Announcement to the Market
1. Company Details and Reporting Period
Name of Entity: | HRL Holdings Limited | |||
ABN: | 99 | 120 896 371 | ||
Reporting Period: | 30 | June 2019 | ||
Previous Corresponding Period: | 30 June 2018 | |||
2. | Results for Announcement to the Market | $ | ||
Revenue from ordinary activities up 13% to: | 30,754,848 | |||
Underlying net profit/(loss) for the period down 47% to: | 1,534,330 | |||
Net profit/(loss) for the period attributable to members down to: | (7,126,758) |
Refer to pages 8 to 12 of the Financial Statements for the operational and financial review of the Entity.
3. Statement of Comprehensive income with Notes to the Statement
Refer to Page 33 of the 2019 Financial Statements and accompanying Notes.
4. Balance Sheet with Notes to the Statement
Refer to Page 34 of the 2019 Financial Statements and accompanying Notes.
5. Statement of Cash Flows with Notes to the Statement
Refer to Page 36 of the 2019 Financial Statements and accompanying Notes.
6. Dividends
No dividends were paid or payable during the period.
7. Statement of Changes in Equity
Refer to Page 35 of the 2019 Financial Statements and accompanying Notes.
8. Net Tangible Assets per Security
2019 $0.016
2018 $0.022
www.hrlholdings.com | ABN 99 120 896 371 | ASX Code: HRL
9. Entities over which Control has been Gained or Lost during the Period.
Refer to Page 72 of the 2019 Financial Statements.
10. Associates and Joint Venture Entities
Refer to Page 69 of the 2019 Financial Statements.
11. Other Significant Information
Not applicable.
12. Accounting Standards used for Foreign Entities
Not applicable.
13. Commentary on the Results for the Period
Refer to pages 8 to 12 of the Financial Statements for the operational and financial review of the Entity.
14. Status of Audit
The attached 2019 Financial Statements have been audited.
15. Dispute or Qualifications if not yet audited
Not applicable.
16. Dispute or Qualifications if audited
Not applicable.
Paul Marshall
Company Secretary
9 August 2019
www.hrlholdings.com | ABN 99 120 896 371 | ASX Code: HRL
HRL HOLDINGS LIMITED
ANNUAL REPORT
FOR THE YEAR ENDED
30 JUNE 2019
Index
CEO's Letter | 3 |
Directors' Report | 5 |
Remuneration Report | 17 |
Auditor's Independence Declaration | 31 |
Additional ASX Information | 32 |
Statement of Comprehensive Income | 33 |
Balance Sheet | 34 |
Statement of Changes in Equity | 35 |
Statement of Cash Flows | 36 |
Notes to the Financial Statements | 37 |
Directors' Declaration | 82 |
Independent Auditor's Report | 83 |
Corporate Information | 87 |
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CEO'S LETTER
Dear Shareholders,
Your Directors and I have much pleasure in presenting the 2019 Annual Financial Statements for the HRL Group.
Introduction and the past year in review
FY2019 was a challenging year for HRL. The decline in the New Zealand drugs of abuse (methamphetamine) property testing market and challenging trading conditions in the HAZMAT and Geotechnical businesses had a material impact on earnings for the first half of the year. In response, several market diversification and restructuring initiatives were put in place which saw second half results improve markedly.
The business restructuring efforts are largely complete allowing us to focus on organic growth centred around high value, high throughput commercial laboratory testing. I am pleased with the early client uptake in new services which will become more profitable as they scale with time.
In last year's annual report, I wrote about the strategic objectives for this past year, and I am pleased to report that those objectives have been substantially fulfilled including:
- Leveraging off Analytica intellectual property and know how to enter new service lines in both Australia and New Zealand;
- HRL has expanded our laboratory offering, with key notable new services for glyphosate, beta-casein testing extensions, PFAS in soil and water.
- Utilising new equipment, technology and software platforms to improve efficiencies and margins;
- New technology has been installed at OCTIEF and Morrison Geotechnic delivering laboratory throughput improvements. These are a mixture of software and laboratory instrumentation.
- Analytica has been working on developing artificial intelligence (AI) for image recognition to improve throughput for pollen identification and counting in honey samples.
- Focussed business development plans to target new clients and protect the existing client base;
- Revenue expansion has been seen most notably in Analytica, OCTFOLIO and Morrison.
- Following the laboratory restructure at Precise, the core consulting business has seen a notable increase in projects won.
- Continued focus on cross selling opportunities across all business units;
- OCTIEF applied for, and received, import permits to receive soil samples from New Zealand for acid sulphate analysis and filters for crystalline silica analysis.
- OCTIEF ships a small volume of samples for methamphetamine testing back to New Zealand.
- OCTIEF and Precise increased their OCTFOLIO reseller activities this year resulting in an increase in new clients in the second half
- Using the OCTFOLIO software platform to target new clients and provide enhanced service offerings to existing clients of the other business units.
- OCTFOLIO has launched modules this year to meet specific client demand for oil sampling, equipment registers tracking, and hazardous material sampling for power utility assets.
- Digital chain of custody apps (in beta) were launched for Analytica.
HRL has successfully increased its social responsibility focus this year with a 25% reduction in total reportable injuries (TRI) in the second half. We are proud of our diverse workforce which now includes 47% female representation. Recycling initiatives at our main laboratory in Hamilton NZ has seen a 40% reduction in laboratory glass/plastic waste. We have chosen three key charities to support throughout the year.
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HRL Holdings Ltd. published this content on 09 August 2019 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 09 August 2019 14:10:08 UTC