BRADKEN LIMITED ANNUAL REPORT 2014 l 82
Notes to the consolidated financial statements
30 June 2014
(continued)
30 Investments in associates
2014
2013
$'000
$'000
(a) Movements in carrying amounts
Carrying amount at the beginning of the financial year
49,261
38,521
6,441
5,877
Share of (loss) / profit after income tax
(1)
(85)
7,041
Dividends received/receivable
(2,446)
(2,178)
Carrying amount at the end of the financial year
53,171
49,261
(b) Summarised financial information of associates
31-Dec13
31-Dec12
$'000
$'000
Current assets
113,205
101,621
Non-current assets
238,781
184,020
Current Liabilities
(63,973)
(84,649)
Non-current liabilities
(115,349)
(81,669)
Total Equity
172,664
119,323
Revenue
106,414
156,982
Net profit for the period (from continuing operations)
860
17,209
Other comprehensive income
(3,046)
534
Total other comprehensive income
(2,186)
17,743
(c) Market value of listed investment in associate based on last traded share price at 30 June 2014
2014
2013
$'000
$'000
Austin Engineering Ltd
(1)
28,442
49,481
28,442
49,481
a) a post tax discount rate of 11.5%
b) a growth rate in perpetuity of 2.5%
(1) This amount includes the Company's actual share of ANG's net profit after tax for the six months ending 31 December 2014,
an estimate of the Compayn's share of ANG's net profit after tax for the six month period ending 30 June 2014 based on market
conditions, market updates and analyst estimates and an adjustment to reflect the Company's actual share of ANG's net profit
after tax for the year ending 30 june 2013. Differences identified when ANG publishes their results for the 30 June 2014 financial
year will be adjusted in the Group's interim report for the half year ending 31 December 2014.
(1) The Directors have assessed that the recoverable amount of the investment exceeds the carrying value of the investment
using a value in use calculation. The directors consider this methodolgy provides a better estimate of the recoverable value
through the business cycle.
The carrying value of the investment in associate has been tested for impairment using a value in use calculation. The key
assumptions used in the model include;
The cashflows used in the model represent the Directors best estimate of the future results of the Austin Engineering. Based on
this methodology the recoverable amount of the investment has been estimated to be $57.7 million.
The directors believe there is a reasonably possible change in assumptions for the investment that may result in an impairment.
These include a 0.9% increase in the post tax discount rate or a 1.0% decrease in the long term growth rate.
As ANG are yet to announce their 30 June 2014 financial results, the following table contains the summarised financial
information of the most recent published financial results of ANG.
Increase in investment by way of share purchases in current
period
Page 82
Bradken Limited
NOTES TO THE CONSOLIDATED
FINANCIAL STATEMENTS
(CONTINUED)
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