Coventry : 24/02/2022 - CYG HY22 - Appendix 4D & Financial Report

ABN 37 008 670 102

Appendix 4D

Half year report for the six months ended 31 December 2021

Reporting period

Report for the half year ended 31 December 2021

Previous corresponding period is the financial year ended 30 June 2021 and the half year ended 31 December 2020

Results for announcement to the market

Revenue from continuing operations

Net profit/(loss) after tax from continuing operations attributable to members

31 Dec 2021	31 Dec 2020*	Change	Change
$M	$M	$M	%
156,961	137,776	19,185	13.9%
2,419	1,120	1,299	116.0%

*The comparative information has been restated on account of a change in accounting policies. Refer to Note 11 in the half year report.

Dividends

No dividends have been declared in relation to the half year ended 31 December 2021.

A final dividend of $2.7 million was paid during the period in relation to the financial year ended 30 June 2021.

Amount of dividend per security
		Amount per	Franked amount
			per
		security	security at 30%
Interim dividend	current year	Nil	Nil
	previous year	Nil	Nil
Final dividend	current year	Nil	Nil
	previous year	3.0 cents	3.0 cents
The Company's Dividend Reinvestment Plan has been reinstated.
Net Tangible Assets Per Security
As at 31 December 2021	0.43
As at 31 December 2020	0.39

The attached financial statements and Directors' declaration have been subject to an independent review.

and its controlled entities

Financial report

for the half year ended

31 December 2021

This half year financial report is to be read in conjunction with the financial report for the year ended 30 June 2021.

Our Values

At Coventry Group, we value

Fairness, Integrity, Respect, Safety and Teamwork.

Above all, we value

Our People, Our Customers and Our Suppliers.

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Coventry Group Ltd and its controlled entities

Financial report for the half year ended 31 December 2021 Contents

Directors' Report	3
Auditor's Independence Declaration	6
Condensed consolidated statement of profit or loss	7
Condensed consolidated statement of comprehensive income	8
Condensed consolidated statement of financial position	9
Condensed consolidated statement of changes in equity	10
Condensed consolidated statement of cash flows	11
Notes to the condensed consolidated interim financial statements	12
Directors' Declaration	19
Independent Auditor's Review Report	20

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Coventry Group Ltd

Directors' Report

For the half year ended 31 December 2021

The Directors present their report on the Consolidated entity consisting of Coventry Group Ltd and controlled entities at the end of, or during, the half year ended 31 December 2021. Throughout the report, the Consolidated entity is referred to as the Group.

Directors

The Directors of the Company at any time during the half year ended 31 December 2021 and up to the date of this report are:

Neil George Cathie, Chairman

Robert James Bulluss, Managing Director and Chief Executive Officer Andrew William Nisbet

James Scott Charles Todd Anthony John Howarth

Review of operations

Trading performance improved during H1 FY22 with the Group delivering growth in both EBITDA and EBIT despite COVID-19 related disruptions. Group sales growth for H1 FY22 of 13.9% compared with the prior corresponding period (pcp). Group sales at $157.0m ($137.8m H1 FY21). This growth was achieved despite the negative impact of an enforced New Zealand Government Alert 4 lockdown which we estimate negatively impacted sales in the order of $3.0m.

Despite an estimated loss of $750k of EBITDA due to the enforced lockdown in New Zealand, Group EBITDA of $7.3m ($7.0m H1 FY21). Proforma EBITDA up 15% compared with the pcp. Statutory net profit for the half year $2.4m ($1.1m H1 FY21).

The Group has a solid balance sheet with Net Tangible Assets of $39.5m and Net Assets of $111.1m as at 31 December 2021. Net debt of $26.9m as at 31 December 2021 ($16.3m as at 30 June 2021), predominantly due to increasing inventory by $11.3m due to price inflation and planned increases in stock levels to mitigate supply chain issues.

Note 1: EBIT and EBITDA exclude the impact of AASB 16 - Leases

COVID-19

All business units are operating with COVID-safe plans. We are managing the impact of supply chain issues, stock shortages, labour shortages and significant price inflation including maintaining above normal inventory levels.

Sales growth

Percentage sales growth change for H1 FY22 when compared with the prior corresponding period is shown below:

Half year FY22 vs

Revenue changeHalf year FY21 % sales change

Fluid Systems	+15.0%
Trade Distribution	+12.5%
Consolidated Group	+13.9%

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