Shriro: Appendix 4D and 2022 half-year financial statements

Shriro Holdings Limited

Directors’ report

The directors present their report in accordance with the provisions of the Corporations Act 2001 for Shriro Holdings Limited (the “Company”) and its subsidiaries (collectively the “Group”) for the six months ended 31 December 2021.

DIRECTORS AND OFFICERS

The directors of Shriro Holdings Limited during the six months ended December 31, 2021 were:

Cornelia Meyer – Independent Chair (appointed September 13, 2021)

Cheryl Hayman – Independent Non-Executive Director

Abigail Cheadle – Independent Non-Executive Director

Kim Slater – Independent Non-Executive Director (appointed October 1, 2021)

Tim Hargreaves – Non-Independent Managing Director

Stephen Heath – Independent Chairman (resigned November 1, 2021)

The Company Secretary during the six months ended December 31, 2021 was Lisa Jones.

MAIN ACTIVITIES

The Group is a leading marketer and distributor of kitchen appliances and consumer products operating in Australia and New Zealand. The group is also expanding internationally, focusing on barbecues and barbecue accessories.

The Group markets and distributes a wide range of own brands (including Omega, Everdure including Everdure by Heston Blumenthal, Robinhood and Omega Altise) and third-party brands (including Casio, Blanco and Pioneer).

Products marketed and distributed by the Group include calculators, watches, musical instruments, audio products, kitchen appliances, sinks and faucets, laundry products, consumer electronics, car stereos, amplifiers, professional DJs, hi-fi speakers, barbecues, heating and cooling appliances. some products.

RESULTS AND REPORT OF OPERATIONS

Semester at

Semester at

6 months for

Summary of results

December 31st

December 31st

Movement

June 30th

2021

2020

%

2021

millions of dollars

millions of dollars

millions of dollars

Income 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

Functionnary costs

27.6

23.5

17.4

26.4

EBITDA

14.5

21.8

(33.5)

12.4

Depreciation and amortization

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 taxes

8.2

13.5

(39.3)

6.8

In the six months to December 31, 2021, the Group faced both a cyber incident and ongoing lockdowns in regions that contribute significantly to the Group’s performance (i.e. New South Wales , Victoria and New Zealand).

The cyber incident coincided with the start of the lockdown and therefore the impact of each element is difficult to decipher. Although operations were affected in July due to the cyber incident, it appears that much of the impact was the timing of sales. The closures, which continued through October, impacted sales, with the second quarter making up for some of the shortfall. The confinements that took place over the period were more regionalized (New South Wales, Victoria and Auckland) than those implemented in the PCP, which are more widespread. Given the more limited impact of the lockdowns, the large federal government subsidies paid to companies, and directly to individuals, were not in place and as such the current year result did not benefited from the increase in consumer spending 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 December 31, 2021 with revenues in the rest of the world segment up 31.6 % over the previous comparative period (‘pcp’) at $2.2 million.

1 Government COVID support was provided by the Government of New South Wales in the six months to December 31, 2021, grants from the Australian Commonwealth Government and the New Zealand Government were included in operating expenditure at the during the six months preceding December 31, 2020

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