Directors’ Report continued
Board Members’ Directorships
Listed below are details of other listed public company directorships held
by Board Members over the last three
years.
Director Directorship of Date Appointed Date Resigned
Stephen Chapman Macquarie Radio Network Ltd 1–Nov–02 current
Hostworks Group Ltd 17–Feb–97 current
Perpetual Ltd 12–May–95 29–Oct–04
Verilyn Fitzgerald Independent Practitioner Network Ltd 7–Aug–03
current
Robert Stovold Canberra Investment Corporation Ltd 15–Aug–03 current
Somnomed Ltd 1–May–95 29–Nov–06
Port Douglas Reef Resorts Ltd 4–Jun–97 30–Aug–06
York Group Ltd 1–Apr–95 31–Jan–05
Independent Practitioner Network Ltd 21–Mar–03 31–Aug–04
Marcus Blackmore No other listed public company directorships
Brent Wallace No other listed public company directorships
Jennifer Tait No other listed public company directorships
Anthony Pascoe No other listed public company directorships
Naseema Sparks No other listed public company directorships
Committee Memberships
As at the date of this Report, the Company had an
Audit Committee, a Nominations Committee and a
Remuneration Committee. Members of the Board
acting on the Committees during the year were:
Audit: Robert Stovold, Chair
Stephen Chapman
Verilyn Fitzgerald
Brent Wallace
Nominations: Verilyn Fitzgerald, Chair
Marcus C Blackmore
Stephen Chapman
Naseema Sparks
Robert Stovold
Brent Wallace
Jennifer Tait
Remuneration:
Verilyn Fitzgerald, Chair
Marcus C Blackmore
Stephen Chapman
Naseema Sparks
Principal Activities
The consolidated entity’s principal activity in the course
of the financial year was the development and marketing
of health products including vitamins, herbal and mineral
nutritional supplements in Australia. The Company also
has operations in Malaysia, Thailand and Taiwan and
sells through independent distributors in other parts
of Asia and in New Zealand.
Review of Operations
The net amount of profit attributable to the shareholders
of the consolidated entity for the financial year was
$16.7 million (2006: $14.5 million) which represents
a 15% increase over the prior year. Prior year included
a net profit after costs, provisions and tax effect on
the sale of the Company’s premises at Balgowlah
of $835,000. Excluding this non-recurring profit, net
profit attributable to shareholders of the consolidated
entity increased from $13.6 million (an increase of 22%).
Sales for the year were $171.7 million (2006: $148.0
million), an increase of 16% compared to the prior
year. Basic earnings per share increased from 90.9
cents to 104.3 cents per share (an increase of 15%).
Excluding the prior year non-recurring profit on sale
of Balgowlah, basic earnings
per share increased
from 85.7 cents per share (an increase of 22%).
Net tangible assets per share increased from $2.18
last year to $2.56 this year.
Net debt increased from $3.5 million last year to
$5.3 million this year and Net debt/(Net debt +
shareholders’ equity) increased from 8.7% last
year to 10.8 % this year.
Changes in State of Affairs
During the financial year there was no significant
change in the state of affairs of the consolidated entity
other than that referred to in the financial statements or
notes thereto and elsewhere in the Annual Report of
the Company for the year ended 30 June 2007.
Subsequent Events
There has not been any matter or circumstance, other
than that referred to in the financial statements or notes
thereto, that has arisen since the end of the financial year,
that has significantly affected, or may significantly affect,
the operations of the consolidated entity, the results
of those operations, or the state of affairs of the
consolidated entity in future financial years.
Future Developments
Disclosure of additional information not already
disclosed elsewhere in the Annual Report of the
Company for the year ended 30 June 2007 regarding
the business strategies, prospects and likely developments
in the operations of the consolidated entity in future
financial years and the expected results of those
operations is likely to result in unreasonable prejudice
to the consolidated entity. Accordingly, this information
has not been disclosed in this report.
However, as disclosed in the 2006 Annual Report, the
Directors wish to advise that the Company intends to
move its operations (currently situated at Balgowlah
and Brookvale in Sydney) to a new site. The Company
settled on the purchase of land in Warriewood (Sydney)
in September 2005 and construction on the site has
commenced. The Company continues to work to a
timetable which would see completion of construction
of a new office, manufacturing and despatch facility at
Warriewood by mid calendar year 2008.
Environmental Regulations
The Company monitors its legal obligations and has
its own self imposed policies. We believe that the
Company complies with all aspects of the
environmental laws. The Company is a party to the
National Packaging Covenant, an agreement between
industry and government which ensures that the
management of packaging and paper throughout their
lifecycle produces sustainable, cost-effective benefits
to the environment.
Occupational Health and Safety
The Company’s Occupational Heath and Safety
Committee meets monthly and monitors the business
by conducting regular audits of the premises. Any safety
matters raised either by staff, the audits or from an
investigation of any workers’ compensation claims are
reviewed and, where appropriate, changes made to
operating procedures. Staff are encouraged to make
safety suggestions to their departmental representatives.
All committee members are given the necessary training
for the position.
Corporate Governance
In recognising the need for the highest standards of
corporate behaviour and accountability, the Directors
of Blackmores support and have adhered to key
principles of corporate governance. The Company’s
current corporate governance principles are set out on
the Company’s website at www.blackmores.com.au
(go to “Investors” then click on “Corporate Governance”).
Please note a separate section in this Report on pages
24 to 25 outlining the Company’s current Corporate
Governance principles.
Company Secretary
Nick Geddes FCA, FCIS Company Secretary.
Mr Geddes is the principal of Australian Company
Secretaries, a company secretarial practice, that he
formed in 1993. Nick is a Vice President of the
National Council of Chartered Secretaries Australia
and a former Chairman of the NSW Council of that
Institute. His previous experience, as a Chartered
Accountant and Company Secretary, includes
investment banking and development and venture
capital in Europe, Africa, the Middle East and Asia.
Go to top
