NOTE 11
CAPITAL MANAGEMENT
(a) Risk management
The Group’s objectives when managing capital are to:
•
•
safeguard the ability to continue as a going concern (refer to note 1(ab)), so that they can continue to provide
returns for shareholders and benefits for other stakeholders, and
•
•
maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends paid to
shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
During 2014, the Group’s strategy, unchanged from 2013, was to maintain a gearing ratio under 50%. The gearing
ratios were as follows:
Consolidated
Notes
2014
$’000
2013
$’000
Total borrowings
6(c), 6(d)
998,446
1,174,272
Less cash and cash equivalents
6(a)
(91,284)
(217,375)
Adjusted net debt
907,162
956,897
Total equity
3,568,436
3,459,329
Adjusted equity
4,475,598
4,416,226
Net debt to adjusted equity ratio
20.3%
21.7%
Total borrowings include trade and other payables and the impact of amortised interest and fees.
The Group has complied with the financial covenants of its syndicated debt facilities during the 2014 and 2013 reporting
periods. As at 30 June 2014 the syndicated debt and bridging facilities no longer include any financial covenants.
(b) Dividends - Ordinary shares
Consolidated
2014
$’000
2013
$’000
Interim dividend for the year ended 30 June 2014
of 1.43 cents (2013: nil) per fully paid share
36,000
-
77
