Positive Profit Result for Barramundi

Barramundi Limited results announcement


Results for announcement to the market
Name of issuer Barramundi Limited
Reporting Period 12 months to 30 June 2019
Previous Reporting Period 12 months to 30 June 2018
Currency NZ$

Amount (000s) Percentage change
Revenue from continuing
operations
$10,851 -55%
Total Revenue $10,851 -55%
Net profit/(loss) from
continuing operations
$7,428 -64%
Total net profit/(loss) $7,428 -64%
Interim/Final Dividend
Amount per Quoted Equity
Security
$NZ 1.39 cents per share
Imputed amount per Quoted
Equity Security
$NZ 0.003178
Record Date 12 September 2019
Dividend Payment Date 26 September 2019
Current period Prior comparable period
Net tangible assets per
Quoted Equity Security
$0.69 $0.71
A brief explanation of any of
the figures above necessary
to enable the figures to be
understood
The financial statements attached to this report have been audited by
PricewaterhouseCoopers and are not subject to a qualification. A copy
of the auditor’s report applicable to the financial statements is
attached to this announcement.
Authority for this announcement
Name of person

authorised
to make this announcement
A.B. Ryan
Contact person for this
announcement
W.A. Burns
Contact phone number (09) 4840352
Contact email address enquire@barramundi.co.nz
Date of release through MAP

20 August 2019
Audited financial statements accompany this announcement.

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For immediate release:

20 August 2019

Positive profit result for Barramundi

Highlights
 Net profit after tax of $7.4m
 Total shareholder return +15.5%
1

 Adjusted NAV return +5.6%
2

 Dividend return 9.0% (5.38 cps)

Barramundi Limited (NZX: BRM) today announces a net profit of $7.4 million for the 12 months ended 30 June
2019, (2018 : $20.5m).

Chair Alistair Ryan said, “Barramundi has performed well for shareholders in what was a period of high market
volatility. The Australian share market was not immune from the sharp correction experienced in global share
markets in the December 2018 quarter which tested the resolve of investors worldwide. Our measured
investment approach enabled Barramundi to benefit from the strong rally as share prices snapped back in the
half year to 30 June 2019. We are pleased with Barramundi’s total shareholder return of +15.5%
1
and the
adjusted NAV return of +5.6%
2
in this volatile environment. Barramundi’s gross performance return was
10.0%
3
which was comparable to the company’s market benchmark
4
which was up 10.2% for the twelve month
period to 30 June 2019.”

“It was certainly a year of two halves,” Senior Portfolio Manager Robbie Urquhart said. “The December
quarter sell-off provided us with the opportunity to put capital to work in some high quality companies and we
were positioned well for the strong market rebound in the second half. The key drivers of portfolio
performance were those companies in defensive sectors and with growth momentum in international markets
such as Nanosonics and Xero. Those companies with significant domestic operations such as ARB and Carsales
were impacted by softening conditions in Australia and uncertainty ahead of the Federal election in May.”

Mr Urquhart added, “Barramundi enters the new financial year with a sound portfolio and a proven and
patient investment approach which we believe will allow us to exploit investment opportunities, irrespective
of the direction and momentum of the overall market.”
In accordance with Barramundi’s quarterly distribution policy (2% of average NAV per quarter), the company
paid a total of 5.38 cents per share to shareholders during the year ended 30 June 2019. Today, the Board
declared a dividend of 1.39 cents per share, payable on 26 September 2019 with a record date of 12
September 2019.
The Barramundi board is pleased to advise that it has negotiated a 33% reduction to the Manager’s
performance fee earn rate (above the performance hurdle) from 15% to 10% together with the introduction of
a cap (1.25%) on the total performance fee amount, in conjunction with moving to payment of any
performance fee 100% in cash rather than 50% cash and 50% shares. The changes take effect from 1 July
2019. The Board wishes to acknowledge the positive response from Fisher Funds Management Limited to
enter into fee discussions and for agreeing to these changes which will be of significant benefit for Barramundi
shareholders in the circumstances when a performance fee is earned.

There has been no change to the fulcrum fee, where the base management fee can be reduced on a sliding
scale below 1.25% to as low as 0.75% depending on the performance of the fund. The Board considers that
the combination of the fulcrum fee for lower performance, with the potential for the Manager to receive
upside benefit for performance above the nominated threshold level is an equitable fee structure for
shareholders and the Manager.

For further information, please contact:
Wayne Burns
Corporate Manager
Barramundi Limited
Tel: (09) 484 0352

1
Total shareholder return – the return to an investor who reinvests their dividends, and if in the money, exercises their warrants at warrant
maturity date for additional shares.
2
Adjusted net asset value return – the net return to an investor after fees and tax.
3
Gross Performance Return – the Manager’s portfolio performance in terms of stock selection and currency hedging before fees, expenses
and tax.
4
Benchmark – S&P/ASX 200 index (hedged 70% to NZD).

The total shareholder return, adjusted NAV return and gross performance return methodologies are described in the Barramundi Non-
GAAP Financial Information Policy. A copy of the policy is available at http://www.barramundi.co.nz/about-barramundi/barramundi-
policies/

About Barramundi
Barramundi is a listed investment company that invests in quality, growing Australian companies. The Barramundi portfolio is managed by
Fisher Funds, a specialist fund manager with a track record of successfully investing in growth company shares. The aim of Barramundi is
to offer investors competitive returns through capital growth and dividends, and access to a diversified portfolio of investments through a
single, tax-efficient investment vehicle. Barramundi listed on NZX Main Board on 26 October 2006 and may invest in companies listed on
the Australian Securities Exchange (with a primary focus on those outside the top 20 at the time of investment) or unlisted companies.

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Independent auditor’s report
To the shareholders of Barramundi Limited
Barramundi Limited’s financial statements comprise:
• the statement of financial position as at 30 June 2019;
• the statement of comprehensive income for the year then ended;
• the statement of changes in equity for the year then ended;
• the statement of cash flows for the year then ended; and
• the notes to the financial statements, which include significant accounting policies.
Our opinion
In our opinion, the financial statements of Barramundi Limited (the Company), present fairly, in all
material respects, the financial position of the Company as at 30 June 2019, its financial performance
and its cash flows for the year then ended in accordance with New Zealand Equivalents to
International Financial Reporting Standards (NZ IFRS) and International Financial Reporting
Standards (IFRS).
Basis for opinion
We conducted our audit in accordance with International Standards on Auditing (New Zealand) ISAs
(NZ) and International Standards on Auditing (ISAs). Our responsibilities under those standards are
further described in the Auditor’s responsibilities for the audit of the financial statements section of
our report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
We are independent of the Company in accordance with Professional and Ethical Standard 1 (Revised)
Code of Ethics for Assurance Practitioners (PES 1) issued by the New Zealand Auditing and Assurance
Standards Board and the International Ethics Standards Board for Accountants’ Code of Ethics for
Professional Accountants (IESBA Code), and we have fulfilled our other ethical responsibilities in
accordance with these requirements.
Other than in our capacity as auditor we have no relationship with, or interests in, the Company.
PricewaterhouseCoopers, 188 Quay Street, Private Bag 92162, Auckland 1142, New Zealand
T: +64 9 355 8000, F: +64 9 355 8001, pwc.co.nz

Our audit approach
Overview
An audit is designed to obtain reasonable assurance about whether the
financial statements are free from material misstatement.
Overall materiality: $591,400, which represents approximately 0.5% of the net
assets. We used this benchmark because, in our view, the objective of the
Company is to provide investors with a total return on the assets, taking
account of both capital and income returns.
We agreed with the Audit and Risk Committee that we would report to them
misstatements identified during our audit above $50,800 as well as
misstatements below that amount that, in our view, warranted reporting for
qualitative reasons.
Because of the significance of the Australian listed equity investments to the
financial statements, we have determined that there is one key audit matter:
valuation and existence of the Australian listed equity investments.
Materiality
The scope of our audit was influenced by our application of materiality.
Based on our professional judgement, we determined certain quantitative thresholds for materiality,
including the overall Company materiality for the financial statements as a whole as set out above.
These, together with qualitative considerations, helped us to determine the scope of our audit and the
nature, timing and extent of our audit procedures and to evaluate the effect of misstatements, both
individually and in the aggregate on the financial statements as a whole.
Audit scope
We designed our audit by assessing the risks of material misstatement in the financial statements and
our application of materiality. As in all of our audits, we also addressed the risk of management
override of internal controls including among other matters, consideration of whether there was
evidence of bias that represented a risk of material misstatement due to fraud.
We tailored the scope of our audit in order to perform sufficient work to enable us to provide an
opinion on the financial statements as a whole, taking into account the structure of the Company, the
type of investments held by the Company, the use of third party service providers, the accounting
processes and controls, and the industry in which the Company operates.
The Directors are responsible for the governance and the control activities of the Company. The
Directors have delegated certain responsibilities to Fisher Funds Management Limited (the
Investment Manager) and Trustees Executors Limited (the Administrator). The Company has also
appointed Trustees Executors Limited (the Custodian) to act as custodian of the Company’s
investments.
In establishing our overall audit approach we assessed the risk of material misstatement, taking into
account the nature, likelihood and potential magnitude of any misstatement. As part of our risk
assessment, we considered the Company’s interaction with the Investment Manager and
Administrator and the control environment in place at the Administrator and the Custodian.
PwC

Key audit matter
Key audit matters are those matters that, in our professional judgement, were of most significance in
our audit of the financial statements of the current year. Given the nature of the Company, we have
one key audit matter: valuation and existence of Australian listed equity investments. The matter was
addressed in the context of our audit of the financial statements as a whole, and in forming our
opinion thereon, and we do not provide a separate opinion on the matter.
Key audit matter How our audit addressed the key audit matter
Valuation and existence of Australian listed
equity investments
Australian listed equity investments (the
Investments) are valued at $115.5 million and
represent 97% of total assets.
Further disclosures on the Investments are
included in note 2 to the financial statements.
This was an area of focus for our audit and the
area where significant audit effort was
directed.
As at 30 June 2019, all Investments are in
companies that are listed on the ASX and are
actively traded with readily available, quoted
market prices. The market prices are quoted in
Australian dollars, which are then translated to
New Zealand dollars using the exchange rate at
30 June 2019.
All Investments are held by the Custodian on
behalf of the Company and administered by
the Administrator.
Our audit procedures included updating our
understanding of the business processes employed by
the Company for accounting for, and valuing, their
investment portfolio.
Our procedures also included assessing the
Administrator’s and Custodian’s internal controls
reports for custody and investment accounting
services for the periods ended 30 September 2018
and 31 March 2019. The Administrator and
Custodian have confirmed that there has been no
material change to their control environment in the
period from 1 April 2019 to 30 June 2019.
Existence
We obtained confirmation of the Investments
holdings and that the Company was the recorded
owner of all the Investments from the Custodian.
Valuation
We agreed the price for all Investments held at 30
June 2019 and the exchange rate at which they have
been converted from Australian dollars to New
Zealand dollars to independent third party pricing
sources.
From the procedures performed, we have no matters
to report.
Information other than the financial statements and auditor’s report
The Directors are responsible for the annual report. The annual report is expected to be made available
to us after the date of this auditor's report.
Our opinion on the financial statements does not cover the other information included in the annual
report and we do not and will not express any form of assurance conclusion on the other information.
In connection with our audit of the financial statements, our responsibility is to read the other
information when it becomes available and, in doing so, consider whether the other information is
materially inconsistent with the financial statements or our knowledge obtained in the audit, or
otherwise appears to be materially misstated.
When we read the annual report, if we conclude that there is a material misstatement therein, we are
required to communicate the matter to the Directors.
PwC

Responsibilities of the Directors for the financial statements
The Directors are responsible, on behalf of the Company, for the preparation and fair presentation of
the financial statements in accordance with NZ IFRS and IFRS, and for such internal control as the
Directors determine is necessary to enable the preparation of financial statements that are free from
material misstatement, whether due to fraud or error.
In preparing the financial statements, the Directors are responsible for assessing the Company’s ability
to continue as a going concern, disclosing, as applicable, matters related to going concern and using
the going concern basis of accounting unless the Directors either intend to liquidate the Company or to
cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the financial statements
Our objectives are to obtain reasonable assurance about whether the financial statements, as a whole,
are free from material misstatement, whether due to fraud or error, and to issue an auditor’s report
that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee
that an audit conducted in accordance with ISAs (NZ) and ISAs will always detect a material
misstatement when it exists. Misstatements can arise from fraud or error and are considered material
if, individually or in the aggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements.
A further description of our responsibilities for the audit of the financial statements is located at the
External Reporting Board’s website at:
https://www.xrb.govt.nz/assurance-standards/auditors-responsibilities/audit-report-2/
This description forms part of our auditor’s report.
Who we report to
This report is made solely to the Company’s shareholders, as a body. Our audit work has been
undertaken so that we might state those matters which we are required to state to them in an auditor’s
report and for no other purpose. To the fullest extent permitted by law, we do not accept or assume
responsibility to anyone other than the Company and the Company’s shareholders, as a body, for our
audit work, for this report or for the opinions we have formed.
The engagement partner on the audit resulting in this independent auditor’s report is Richard Day.
For and on behalf of:
Chartered Accountants Auckland
19 August 2019
PwC