Page 4 - Directors' report and accounts 2019-20

01
Directors' Report
for the year ended 30 June 2020
The directors present their report together with the the the the consolidated financial statements of the the the the Group comprising of Independent Purchasing Company Company (Australasia) Limited (the Company) and its subsidiaries for the the the year ended 30 June 2020
and the the the auditor's report thereon Directors The directors of the company at any any time during or or since the the end of the the financial year are:
Kane Richards
Duane Barber
Devendra Maharaj Chimmy Young
Luke Anderson Alexander Moody-Stuart Mark Rutherglen
Darren Schwarz
Dallas Mulholland
Greg Patterson (Resigned 28th November 2019) Roshan Perera (Appointed on 28th November 2019) Jennifer Garana (Appointed on 28th November 2019) Directors have been in in office since the the start of of the the financial year to the date of this report unless otherwise stated Principal Activities
The principal activities of the the Group during the the financial year were:
• negotiating supply contracts for food packaging equipment products and services • sourcing potential suppliers • review and management of product supply lines • review and and management of supply chain and and logistics • franchise owner support services including FinanceNet QualityNet ServiceNet StaffNet and TechNet and • management of loyalty program payment getaway digital menu board restaurant wi-fi and and radio and and online catering There was no significant change in the the nature of the the activities of the the Group during the the financial year Operating Results
The profit for for the the year for for the the consolidated group after providing for income tax amounted to $4 001 400 (2019: $3 977 329) Dividends
Dividends
paid or declared since the the start of the the financial year are as follows:
a) A fully franked dividend of $1 556 686 was paid during the the year year in in respect of the the year year ended 30 June 2019 b) Subsequent to the the year end a a a further fully franked dividend of $2 018 030 has been proposed for the year ended 30 June 2020
The financial effect of these dividends has not been brought to account in the the consolidated financial statements for the the year ended 30 June 2020
and will be recognised in subsequent financial reports Significant Changes in State of Affairs
There have been no significant changes in the company’s state of affairs Review of Operations
As COVID-19 impacts our lives and the way we operate the the business the the best has been brought out of our 105 employees across the Asia Pacific region We have all worked tirelessly to ensure continuity of supply and supported all Subway franchise owners Our strong foundations and our financial footing have allowed us to tackle the challenges of COVID-19 and our focus has been as as follow:
• safety of our employees • securing our business cash flow and liquidity using the 3 C’s plan: Cost Cash Credit
• ensuring we learn from the crisis and come out stronger and faster as as we emerge
There is a a a saying sometimes attributed to to Winston Churchill “never waste a a good crisis” Our business is now operating in in in ways we have never operated before with:
• the the strengthening of our relationship with regular suppliers engagement and risk management • the acceleration of digital solutions and introduction of 3rd party delivery vendors
• the the launch of the the new online ordering app as part of the Subcard loyalty program in Australia
• working working habits transformed with remote working working as as well as as the demonstrated ability in in working faster leaner and in in a a a a a more effective way using technology tools