NOTE 09
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(aa)), 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 2015, the Group’s strategy, unchanged from 2014, was to maintain a gearing ratio under 50%.
The gearing ratios were as follows:
Consolidated
Notes
2015
$’000
2014
$’000
Total Borrowings
4(c),4(d)
1,099,815
998,446
Less cash and cash equivalents
4(a)
(319,937)
(91,284)
Adjusted net debt
779,878
907,162
Total equity
3,606,916
3,568,436
Adjusted equity
4,386,794
4,475,598
Net debt to adjusted equity ratio
17.8%
20.3%
Total borrowings include trade and other payables and the impact of amortised interest and fees.
(b) Dividends - Ordinary shares
Consolidated
2015
$’000
2014
$’000
Final dividend for the year ended 30 June 2014
of 0.77 cents (2014: nil) per fully paid share
20,100
-
Interim dividend for the year ended 30 June 2015
of 1.49 cents (2014: 1.43) per fully paid share
37,300
36,000
57,400
36,000
87
