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WasteCo – Annual Report 2023

Annual Report30 June 2023WCOIndustrials

WasteCo Group Limited
ANNUAL REPORT 2023

WasteCo
– helping

divert waste

sustainably

WASTECO GROUP LTD: ANNUAL REPORT 2023 3
Table of contents

BOARD AND SENIOR MANAGEMENT 4

CHAIR’S REPORT 6

CHIEF EXECUTIVE’S REVIEW 8

CORPORATE GOVERNANCE STATEMENT 9

COMPANY DIRECTORY 14

THE WASTECO STORY 15

WASTECO’S SUSTAINABILITY JOURNEY 18

CASE STUDY: HEB CONSTRUCTION 20

FINANCIALS 22

Consolidated Statement of Profit or Loss

and Other Comprehensive Income 24

Consolidated Statement of Changes in Equity 25

Consolidated Statement of Financial Position 26

Consolidated Statement of Cash Flows 27

Notes to the Consolidated Financial Statements 28

Auditor’s Report 61

Shareholder and Statutory Information 65

4 BOARD AND SENIOR MANAGEMENT
Board and senior management

SHANE EDMOND

Non-executive Chair

Shane has extensive experience in financial markets, having worked in London and

New Zealand for more than 30 years. Shane is currently an executive director of

Forsyth Barr.

He was previously a member of the Financial Market Authority’s Code Committee

for Financial Advisers for seven years.

Shane became a shareholder and a director of WasteCo Holdings NZ in December

2020 (prior to the reverse listing), and Chair in December 2022 following the

reverse listing.

JAMES REDMAYNE

Executive Director and Chief Executive

James is one of WasteCo’s founders.

Before launching WasteCo with Carl Storm, James had 18 years cost and

management accounting experience in banking, foreign exchange, broadcasting,

manufacturing and pharmaceuticals.

James is Chief Executive of WasteCo and an executive director.

WASTECO GROUP LTD: ANNUAL REPORT 2023 5
ANGUS COOPER

Independent Director

Angus has 30 years of commercial experience in public companies, mostly

in general management roles within EBOS Group. He was General Manager

of Mergers and Acquisitions at EBOS for more than 10 years, completing 25

acquisitions and five divestments for the group in that time.

More recently, Angus has advised Synlait Milk on its acquisition of Dairyworks and

Talbot Forest Cheese, and its divestment of Deep South Ice Cream.

Angus has broad experience across a range of sectors including retail, healthcare

products, pharmaceuticals, FMCG, scientific, dairy logistics, automotive,

engineering, print / pre-press and animal care.

He was a director of Goodwood Capital and remained a director of WasteCo

following the reverse listing in December 2022. Prior to that he was a director of

the retail chain Animates for seven years.

ROGER GOWER

Independent Director

BCom, MBA and MPhil.

Roger Gower is an experienced executive, director and chairman in public and

private companies.

He is currently Chairman of PrimePort Timaru and New Zealand Food Innovation

Auckland (the Food Bowl). Roger is also an independent director of NZX-listed Me

Today and the Chief Executive of New Zealand’s Best Food & Beverage. Roger was

Chairman at juice company Charlie’s, which listed in 2005 and before that he had a

corporate career in logistics and transportation.

Roger was a director of Goodwood Capital and remained a director of WasteCo

following the reverse listing in December 2022.

CARL STORM

Executive Director and Chief Operating Officer

Carl is one of WasteCo’s founders.

He has a lifetime of experience in the waste and recycling sector, starting his first

company at age 16, while still at school.

After selling two start-up companies, Carl worked for Fulton Hogan, EnviroWaste,

Metro Waste and Veolia before starting WasteCo with James.

Carl is an experienced company director.

He is Chief Operating Officer of WasteCo and an executive director.

6 CHAIR’S REPORT
Chair’s report

HIGHLIGHTS

WasteCo has had an eventful and very

successful year. Three key highlights for

the year were:

• our successful reverse listing on

the New Zealand Stock Exchange in

December 2022

• achievement of +80% growth in

revenue with strong growth in

EBITDA, and

• successful acquisitions in line with

the growth strategy highlighted in

our listing profile.

Our NZX debut on 6 December 2022

resulted from a reverse listing through

Goodwood Capital and makes WasteCo

the only waste services investment

opportunity listed on the NZX.

Our commitment to organic growth

and geographic expansion through

targeted acquisitions led to revenue

growth of 83% to $34.4 million during

the financial year.

During the 10 years that WasteCo has

been in existence, the company has

successfully expanded its footprint

across the South Island – acquiring

several businesses before listing on the

NZX. Since listing, we have expanded

to additional regions by acquiring

Nelson-based Central Suction Cleaners

Limited (completed in March 2023),

and later acquiring Cleanways (2003)

Limited, operating in Central Otago and

Southland (post balance date).

Each of our acquisitions already

provide some of the services WasteCo

specialises in, giving us the opportunity

to expand our offering to customers in

each of these regions.

We will continue to look at further

acquisition opportunities where they

meet our target expansion plans

and financial metrics. The strategy to

increase and expand our South Island

coverage remains a priority.

We are also very focused on exploring

new services or technologies to

expand our offering to customers and

in particular where environmental

demands are changing consumer and

customer expectations.

Our medical and quarantine service

is an example of a new WasteCo

initiative. When WasteCo listed on the

NZX we were in the early stages of

commissioning our specialised medical

and quarantine waste facility and since

then we have added some significant

customers, including private hospitals,

ports and airports, as well as vets and

other related companies. We are now

one of only two medical and quarantine

waste treatment, remediation, and

disposal providers in New Zealand.

SUSTAINABILITY AND

ACCOUNTABILITY

Partnering with our customers to find

innovative and effective solutions to

their waste requirements is a key to

our ongoing success. The expectations

placed on all of us to divert as much

waste from landfill as possible drives

everything we do. Our aim to divert

more than half of all the waste we

receive away from landfill remains at

the core of our services but this target

will only increase as technologies and

options permit.

The importance of sorting waste as a

way of reducing the amount of waste

that will end up going to landfill is the

ongoing challenge. Wherever possible

we work with our customers to educate

their staff (and customers) on the

importance of sorting waste and to

maximise the sorting opportunities on

their sites. Space and other factors may

limit customers’ on-site sorting and the

alternative is for us to take the waste

away and sort it at our facilities

We continue to invest in our sorting

capability and technology so we can

meet all challenges.

The strategy to

increase and

expand our South

Island coverage

remains a priority.

WASTECO GROUP LTD: ANNUAL REPORT 2023 7
Waste such as polystyrenes, timber,

glass and metals can all be successfully

removed and recycled for alternative

uses and help in completing the circular

economy story.

Many companies are now required to

meet these reporting requirements

and increasingly turn to providers

like WasteCo, that can not only

manage their waste, but also provide

comprehensive reporting data –

covering everything from how much

waste left their site, to how much of

that was diverted from landfill. WasteCo

is well positioned to take advantage

of increased demand for accountable

waste management.

GOVERNANCE

As an NZX listed company, we are

now required to meet a wide range of

reporting and governance requirements

which did not apply to us as a private

company. This has provided an

excellent opportunity for WasteCo’s

board and management to review our

governance and policy documents,

and this ongoing work is assisting us to

develop a disciplined approach.

Health and safety is a critical focus

for us and we continue to work on

identifying any areas that will further

improve the health and safety, and

wellbeing of our people. We want

to ensure that every member of the

WasteCo team has the training and

opportunities they need to grow within

our business.

There are exciting opportunities

ahead and we are at various

stages of discussions on new

customer partnerships and growth

in existing customer services. We

will also consider more acquisition

opportunities as they present.

We have already signalled a

shareholder purchase plan which

will enable existing shareholders to

participate in funding further growth

of WasteCo. Details of this will be

announced when they are finalised.

I look forward to our first full year as

a listed company and welcome all our

new shareholders that have joined this

journey since our listing.

SHANE EDMOND

Chair

WasteCo Group Limited

LOOKING FORWARD

The outlook in the current

environment is very encouraging and

whilst economic factors have been

more challenging during 2023, the

management team continues to see

growth opportunities in a sector that is

getting more and more critical to our

impact on the world’s carbon footprint

and emission reduction targets.

Kilronan

Sort Centre

8 CHIEF EXECUTIVE’S REVIEW
Chief Executive’s review

WasteCo’s 2023 financial year

was most notable for our

continued strong growth and

our NZX listing.

As the Chair noted in his report, we

recorded more than 80% growth in

revenue and EBITDA in 2023, achieved

through a combination of organic

growth and acquisitions.

In December 2022 we listed on the

NZX, and since then the business has

responded by creating a new, upskilled

management structure that will enable

us to deliver on our acquisition and

integration strategy as well as meet the

requirements of being a listed, rather

than a private company. Our people

are stepping up enthusiastically to the

challenge of these changes.

THE IMPORTANCE OF HEALTH

AND SAFETY AT WASTECO

Safety is paramount at WasteCo. Our

people come to us each day from their

own families, and we want to make

sure they get home safely every night.

This is more than about meeting our

responsibilities as an employer; it is

a reflection of the family values of

WasteCo, which has been an important

part of our culture since the day we

started in business.

We have always focused on our people

doing what they love doing, because

loving what you do is an important step

towards staying safe at work.

We have invested in technologies that

give all WasteCo people access to live

reporting so that management and the

team can respond immediately to any

WasteCo’s success

owes much to

our approach as a

solutions provider

for our customers.

incidents or potential incidents that

might occur while they are out doing

jobs for our customers.

We go to great lengths to ensure health

and safety is always visible and top of

mind, with regular training and toolbox

meetings ensuring regular discussion

so that health and safety remains an

embedded part of our WasteCo culture.

OUR CUSTOMERS AND THE YES

PRINCIPLE

WasteCo’s success owes much to our

approach as a solutions provider for

our customers. Our customers come

to us seeking waste solutions and

we adopt a YES approach to their

situation. We accept the challenge and

then work out how we will meet all of

the customer’s requirements.

Our customers recognise our

innovation and problem solving abilities

and new customers are drawn to seek

our services when they learn what we

have achieved for others.

RECOGNISING SUCCESS

There have been many different

factors leading to our success over the

last year, and many different people

have played a key role in this. I want to

thank every WasteCo team member –

whether they drive a vehicle, take calls

from our customers or manage teams

of specialist workers; and whether

they’ve been with us for years or

joined us recently. Every team member

has played an important part in our

success over the last year. I am proud

to work alongside them and to have

them in our team.

We entered the Deloitte Fast 50 last

year and we were ranked 9th on the

Master of Growth Index, based on

our growth over a five-year period.

This was an exciting recognition of the

achievements of every member of the

WasteCo family.

We have many more challenges

ahead as we fine tune our structure

and continue working towards our

acquisition and growth targets, and I

believe we are well equipped to meet

these challenges and to deliver on

our goals.

JAMES REDMAYNE

Chief Executive

WasteCo Group Limited

WASTECO GROUP LTD: ANNUAL REPORT 2023 9
Corporate governance statement

The Board is committed to achieving best-practice corporate governance and the highest

standards of ethical behaviour. The governance principles adopted by the Board are designed to

achieve these goals.

The full content of the Company’s Governance Code and related polices and charters, can be found on the Company’s website

https://goodwoodcapital.co.nz/corporate-governance/ (Website).

This statement is a summary of the Corporate Governance arrangements approved and observed by the Board as at 31 March

2023. This statement has been approved by the Board.

CODE OF ETHICS

The Board has documented a Code of Ethics, which can be found on the Website. The Code of Ethics details the ethical

standards to which the directors and employees of the Company and its subsidiaries (Group) are expected to adhere.

ROLE OF THE BOARD

The objective of the Board is to enhance shareholder value by directing the Company in accordance with sound governance

principles. The Board assumes the following primary responsibilities:

• formulation and approval of the strategic direction, objectives and goals of the Company;

• monitoring the financial performance of the Company, including approval of the Company’s financial statements;

• ensuring that adequate internal control systems and procedures exist and that compliance with these systems and

procedures is maintained;

• review of performance and remuneration of directors and executive officers; and

• establishment and maintenance of appropriate ethical standards for the Company to operate by.

A formal Governance Code, which can be found on the Website, has been adopted by the Board and further outlines directors’

responsibilities.

The Board internally evaluates its performance and continues to assess the size, diversity and skills of the Board.

BOARD COMPOSITION

In accordance with the Company’s constitution and the NZX Listing Rules, the Board will comprise not less than three

directors. The Board will be comprised of a mix of persons with complementary skills appropriate to the Company’s

objectives and strategies. The Board must include not less than two persons who are deemed to be independent.

WasteCo’s Board currently comprises five directors as follows:

Non-executive Director: Shane Edmond (Chair)

Independent Director: Angus Cooper

Independent Director: Roger Gower

Executive Director: James Redmayne (Chief Executive Officer)

Executive Director: Carl Storm

As set out above, Angus Cooper and Roger Gower are considered by the Board to be independent directors, as defined under the

NZX Listing Rules, as at 31 March 2023. This determination has been made on the basis that neither Mr Cooper or Mr Gower are

employees of the Group, nor do they have any ‘Disqualifying Relationship’ as that term is defined in the Listing Rules.

The Board considers that, although it does not have a majority of independent Board members, it has the right balance for the

current size and structure of the Company. The Board will continue to reassess this going forward to ensure that the balance

of Board members remains appropriate for the Company’s needs.

While the Chair of the Board is not independent, the Board considers that the current Chair is appropriate at this time due to

the level of expertise that he brings in relation to the matters that are the Company’s current focus. The Chair and the CEO are

not the same.

Information about each of the directors is disclosed on the Company’s Website.

FOR THE YEAR ENDED 31 MARCH 2023

10 CORPORATE GOVERNANCE STATEMENT
BOARD MEETINGS

Prior to December 2022, the Company was non-trading. The key focus of the Board has therefore changed from identifying

a suitable business opportunity to invest in and/or acquire through a reverse takeover transaction, to the governance of the

Group’s operations and the implementation of its current and future strategies.

Board meetings are held on a monthly basis and are attended by key management personnel, as required. Additional

meetings are held as and when required. Each Board meeting involves discussions and review of health and safety, finance,

market information, strategy and other operational matters.

The following table shows director attendance at Board meetings since completion of the reverse listing transaction in

December 2022.


Meetings attended as

at 31 March 2023

Shane Edmond 3

Angus Cooper 3

Roger Gower 3

James Redmayne 3

Carl Storm 3

CRITERIA FOR BOARD MEMBERSHIP

When a vacancy arises, the Board will identify candidates with a mix of diversity, capabilities and perspectives considered

necessary for the Board to carry out its responsibilities effectively. A director appointed by the Board must stand for election

at the next Annual Meeting. A director may not hold office for longer than 3 years or past the third annual meeting following

that director’s appointment. Retiring directors are eligible for re-election.

BOARD COMMITTEES

The Board has established an Audit, Finance and Risk Committee and a Remuneration, Nomination and Health & Safety

Committee.

The Audit, Finance and Risk Committee operates under a Charter approved by the Board and is accountable to the Board for:

• the business relationship with, and the independence of, external auditors;

• the reliability and appropriateness of the disclosure of the financial statements and external financial communication; and

• the maintenance of an effective business risk management framework including compliance and internal controls.

The current members of the Audit, Finance and Risk Committee are Roger Gower (Chair), Angus Cooper and Shane Edmond.

The Remuneration, Nominations and Health & Safety Committee operates under a Charter approved by the Board and is

accountable to the Board for:

• the appointment, remuneration and evaluation of the CEO and succession planning in relation to them;

• the remuneration of the leadership team;

• reviewing risks and compliance with statutory and regulatory requirements relative to human resources;

• reviewing health and safety policies to ensure the Company is providing a safe working environment for all employees and

contractors; and

• recommending to the Board, candidates to be appointed as a director.

The current members of the Remuneration, Nominations and Health & Safety Committee are Angus Cooper (Chair) and

Roger Gower.

WASTECO GROUP LTD: ANNUAL REPORT 2023 11
TRADING IN SHARES

The Company has a detailed Share Trading Policy which applies to all directors and employees and can be found on the

Website. The procedures outlined in this policy must be followed by all directors and any employees to obtain consent to trade

in the Company’s shares. Under the policy, trading restrictions apply during the following specific blackout periods:

• two weeks before 30 September until 48 hours after the half-year results are released to NZX;

• two weeks before 31 March until 48 hours after the full-year results are released to NZX; and

• 30 days prior to release of an offer document (such as a product disclosure statement or prospectus) for a general public

offer of the same class of shares.

Outside the black-out periods specified above, any trading is subject to the notification and consent requirements outlined in

the policy.

CONTINUOUS DISCLOSURE

The Company has in place procedures designed to ensure compliance with the NZX Listing Rules such that all investors

have equal and timely access to material information concerning the Company, including its financial situation,

performance, ownership and governance.

Announcements are factual and presented in a clear and balanced way. Significant market announcements, including the

announcements of the half-year and full-year results, and the financial statements for those periods, are reviewed by the

Board prior to release.

The Group’s NZX Market Disclosure Policy has been put in place to ensure that the Company complies with its continuous

disclosure obligations at all times, and can be found on the Website.

HEALTH AND SAFETY

The Board ensures that the Company effectively manages health and safety. Providing leadership and securing and allocating

resources, as well as ensuring the Company has the appropriate people, systems, and equipment to manage the risks related

to its work activities, are important aspects of the Board’s responsibility to health and safety management. The Group has

a health and safety incident reporting system by which it reports all incidents to the Board for its information, review and

assurance on a monthly basis.

DIVERSITY

The Board recognises the wide-ranging benefits that diversity brings to an organisation. The Company endeavours to

incorporate diversity to ensure a balance of skills and perspectives are available to benefit our shareholders. The Company’s

Diversity Policy can be found on the Website

As at 31 March 2023, the gender balance of the Company’s directors and officers were as follows:

20232022

FemaleMaleFemaleMale

Directors-5-3

Officers (excluding directors)-1--

Total-6-3


As the opportunity arises to expand the Board, the Company will look to diversify in terms of both gender and skills.

The waste industry has historically had a larger percentage of male employees. WasteCo has taken active steps to increase the

percentage representation of female employees through equal employment opportunity initiatives and policies, assessments

of gender pay gap, employee wellbeing initiatives and a focus on an inclusive family-oriented work culture.

12 CORPORATE GOVERNANCE STATEMENT
NZX CORPORATE GOVERNANCE CODE (ISSUED 17 JUNE 2022)

During the year ended 31 March 2023, the Company has followed the NZX Corporate Governance Code (issued 17 June 2022)

in all material aspects, with the following exceptions:

ReferenceRecommendationAlternative Governance Practice and Reason for

the Practice

Recommendation

2.8

A majority of the board should be

independent directors.

Shane Edmond, Carl Storm and James Redmayne

are not considered to be independent as they are

all substantial product holders of the Company.

Mr Storm and Mr Redmayne also hold executive

management positions. The Board considers that,

although it does not have a majority of independent

Board members, it has the right balance for the

current size and structure of the Company. The

Board will continue to reassess this going forward

to ensure that the balance of Board members

remains appropriate for the Company’s needs.

Recommendation

2.9

An issuer should have an

independent chair of the board. If

the chair is not independent, the

chair and the CEO should be different

people.

Shane Edmond, the current chair, is not considered

to be independent as Mr Edmond is a substantial

product holder of the Company. Mr Edmond has

been appointed as Chair at this time due to the level

of expertise that he brings in relation to the matters

that are the Company’s current focus. The Board will

assess the role of Chair as required. The Chair and

the CEO are different people.

Recommendation

4.3

Financial reporting should be

balanced, clear and objective. An

issuer should provide non-financial

disclosure at least annually,

including considering environmental,

economic and social sustainability

factors and practices. It should

explain how operational or non-

financial targets are measured.

Non-financial reporting should be

informative, include forward looking

assessments, and align with key

strategies and metrics monitored by

the Board.

WasteCo has not provided detailed reporting on

environmental, economic and social sustainability

factors. Going forward, the Board and appropriate

committees are looking to identify relevant

measures for these factors and implement systems

to capture and refine this information to enable

future reporting in these areas.

Recommendation

6.1

An issuer should have a risk

management framework for its

business and the issuer’s board

should receive and review regular

reports. An issuer should report the

material risks facing the business and

how these are being managed.

During the first quarter of FY23 (post balance date),

the Board has implemented a risk management plan

that reflects the material risks facing the Group’s

business and operations following the completion of

the reverse takeover transaction in December 2022.

The Board will be in a position to comment in more

detail on this in the Group’s next annual report.

WASTECO GROUP LTD: ANNUAL REPORT 2023 13
ReferenceRecommendationAlternative Governance Practice and Reason for

the Practice

Recommendation

7.2

The external auditor should attend

the issuer’s Annual Meeting to

answer questions from shareholders

in relation to the audit.

The Board considered that it was not necessary for

Baker Tilly Staples Rodway, the Group’s external

auditor, to attend the 2022 Annual Meeting given

the agenda and focus of the meeting. The Board

were able to provide all necessary information to

shareholders. The external auditor will be invited to

attend future Annual Meetings, given the change in

nature of the Group’s operations and size.

Recommendation

8.4

If seeking additional equity capital,

issuers of quoted equity securities

should offer further equity securities

to existing equity security holders of

the same class on a pro rata basis,

and on no less favourable terms,

before further equity securities are

offered to other investors.

Contemporaneous with the reverse listing

transaction in December 2022, the Company

undertook a capital raising initiative to raise $4

million of new capital through the issue of 80 million

fully paid ordinary shares to wholesale investors

(as defined in the Financial Markets Conduct Act

2013) at an issue price of $0.05 per share to raise

additional new capital for the Company post

completion of the reverse listing transaction. Due to

the regulatory framework associated with reverse

listing transactions, the Company was restricted

from raising new capital via an offer to all existing

shareholders, or other members of the public, in

conjunction with the completion of the reverse

listing transaction.

Post balance date, the Company also raised a further

$4.32m through a placement to selected wholesale

investors. The shares issued as part of the private

placement were issued under existing shareholder

approvals obtained as part of the reverse takeover

transaction. Those existing shareholder approvals

limited participation to wholesale investors. The

Company intends to offer existing investors the

opportunity to participate in funding the further

growth of the Company through a share purchase

price, with details to be advised in due course.

Recommendation

8.5

The board should ensure that the

notices of annual or special meetings

of quoted equity security holders

is posted on the issuer’s website

as soon as possible and at least 20

working days prior to the meeting.

The notice of the Company’s 2022 Annual Meeting

was released on 25 August 2022, being 16 working

days prior to the meeting held on 15 September 2022.

The timing of the Annual Meeting was arranged to

enable an update from the WasteCo Board ahead of

the pending reverse listing transaction.

The notice of the Special Shareholder Meeting to

approve the WasteCo reverse listing was released

on 16 November 2022, being 14 working days prior

to the meeting held on 5 December 2022, to enable

completion of the reverse listing without undue delay.


The alternative governance practices described in the table above have been approved by the Board.

14 COMPANY DIRECTORY
Company directory

COMPANY NUMBER

3202682

INCORPORATED

24 November 2010

REGISTERED OFFICE

421 Blenheim Road

Upper Riccarton

Christchurch 8041

WEBSITE

www.wasteco.co.nz

SHARE REGISTER

Link Market Services Limited

PO Box 91976

Auckland 1142

Phone: 09 375 5999

AUDITOR

Baker Tilly Staples Rodway Auckland

Tower Centre, 45 Queen Street

Auckland 1010

SOLICITORS

Anderson Lloyd

70 Gloucester Street

Christchurch 8013

BANKERS

Kiwibank Limited

Christchurch

BOARD OF DIRECTORS

Shane Edmond

Angus Cooper

Roger Gower

Carl Storm

James Redmayne

WASTECO GROUP LTD: ANNUAL REPORT 2023 15
The WasteCo story

Carl and James were involved in the day

to day running of the business from the

outset, while all three were directors.

As the business has grown over the

years, WasteCo has maintained its

original family values. This includes

being honest with each other, not

letting people down, and taking time

to celebrate our achievements – big

and small.

We also care for one another – making

sure that everyone is okay, both at work

and at home.

We welcome new people to our family,

including new team members and team

members of the companies we acquire.

For example, we acquired Nelson-based

Central Suction Cleaners in March 2023.

FINANCIAL YEAR 2016

• Establishing a Port Services

Division

FINANCIAL YEAR 2017

• First roading maintenance

contact with HEB / Selwyn

District Council

FINANCIAL YEAR 2018

• Curbside collection contracts

with Clutha and Waitaki District

Councils

• The first WasteCo sorting

operation opens

The WasteCo story began

in August 2013 with James

Redmayne, Carl Storm

and Rob Baan, having

a vision for sustainable

management of waste and

an entrepreneurial attitude.

WasteCo is now firmly established

as a leading South Island waste

solution company.

It was a family owned and run business

for 30 years and we were very pleased

to welcome all six staff into WasteCo,

including the owner’s son, who is now

our branch manager in Nelson.

From day one, WasteCo has been a

solutions-based business, focussing

on saying YES to our customers and

then using creativity, innovation and

experience to deliver on customers’

expectations. That approach has given

us many satisfied customers.

We have added significantly to our

customer base through organic growth

and strategic acquisitions during the 10

years we have been in business.

SOME HIGHLIGHTS DURING THOSE 10 YEARS INCLUDE:

FINANCIAL YEAR 2021

• Roading maintenance contract

with HEB / Ashburton District

Council

FINANCIAL YEAR 2022

• 3,600sqm Kilronan Sort Centre

opens in Christchurch

• Roading maintenance contracts

with Christchurch City Council

(Northern and Banks Peninsula)

as well as Timaru and Mackenzie

District Councils

• WasteCo medical and

quarantine waste processing

facility opens

Founders
Carl Storm and

James Redmayne

16 THE WASTECO STORY

WASTECO GROUP LTD: ANNUAL REPORT 2023 17
WasteCo is now firmly established as

a leading South Island waste solution

company; processing and diverting

from landfill up to half of the liquid

and solid waste we collect from private

households, commercial and industrial

clients, and local authorities.

We are currently New Zealand’s only

diamond-certified Toitū Envirocare

waste company. We are also a member

of WasteMINZ (the New Zealand

representative body of waste, resource

recovery and contaminated land

sectors).

WASTECO SERVICES

WasteCo provides a wide range of solid

and liquid waste services including:

• Solid waste collection using bins

and trucks of all shapes and

sizes for private, commercial and

council customers from Nelson to

Invercargill.

• A large gantry/skip bin collection

operation South Island wide.

• Road sweeping for councils and

commercial customers throughout

the South Island.

• Waste sorting and diversion

from a dedicated sorting facility

in Christchurch with planning

underway for a second site in

Dunedin.

• Collection and treatment of medical

and quarantine waste South Island

wide for clients of all sizes from

tattoo parlours to private hospitals,

ports and airports – one of only two

such services in New Zealand.

• Total South Island coverage for high

pressure water blasting (everything

from dairy sheds to hydro

demolition), urgent spill response

services, septic tank cleaning and

portaloo services.

• Vacuum loading for everything from

sump cleaning to bitumen tank

clean ups across the South Island.

• Port services including maintenance,

cleaning and auxiliary services to

fishing and shipping companies,

as well as port operations at every

South Island port.

Nelson / Marlborough

Canterbury

South Canterbury

Otago

Southland

Central Otago

THE WASTECO APPROACH

At WasteCo we believe in truly excellent

customer service and innovation.

We are all about minimising the

environmental impact of the waste

we manage. This means less demand

for landfill space, along with reduced

greenhouse gas emissions, toxic

and hazardous waste, water and air

pollution.

We actively help our customers and

partners to achieve their sustainability

goals and we have the tools to

help them meet their sustainability

reporting requirements.

We are the only large service provider

offering intensive sorting of building

and demolition waste – with plans to

roll this out beyond Christchurch.

Our Christchurch sorting facility

diverts approximately 8,000 tonnes

of waste each year from landfill, and

we are constantly looking for new

technology and methods to divert or

reduce waste to landfill and transfer

stations, including sorting, shredding,

compaction and bailing.

We are always looking for new ways

to work smarter and some of the best

solutions we’ve identified have resulted

from our customers coming to us with a

waste challenge.

72%

Solid waste

28%

Liquid waste

OUR SERVICES

WASTECO LOCATIONS

* established

post balance date

*

*

18 WASTECO’S SUSTAINABILITY JOURNEY
WasteCo’s sustainability journey

DEVELOPING OUR WASTE

DIVERSION

We are constantly looking for new

ways to reduce the amount of waste

that goes to landfill and to divert

polystyrene, timber, glass and metal

waste to other more valuable or

sustainable uses.

WasteCo is currently New Zealand’s

only diamond-certified Toitū Envirocare

waste solutions provider and we are

proud of our track record of waste

diversion. We work closely with our

customers to ensure they have the

information and resources they need

to reduce their waste and to divert

it from landfill. We also offer waste

management services that help our

customers achieve their sustainability

goals.

GROWING OUR SUSTAINABLE

OUTCOMES

We are committed to growing our

sustainable outcomes by increasing

our landfill diversion rate and offering

additional services to customers;

and we are working with our clients,

employees and stakeholders to make

genuine, collective efforts to protect

the environment and build a more

sustainable future.

Here are some specific examples of

how we are working to protect the

environment:

• Our Christchurch waste sorting

centre plays a major role in waste

diversion and we are considering

opening sort centres in other

locations so more customer waste

can be sorted.

• We work closely with our customers

to ensure they can consider options

for onsite sorting.

• We are working to analyse and

understand our climate impact

so that we can deliver better

environmental and social outcomes.

• We are investing in technology to

help us reduce the amount of waste

that goes into landfill.

• We are forging partnerships with

our customers to enhance waste

diversion.

WasteCo is committed to

protecting the environment

and providing sustainable

waste management solutions

for our customers.

WasteCo is currently New Zealand’s
only diamond-certified Toitū

Envirocare waste solutions provider.

WASTECO GROUP LTD: ANNUAL REPORT 2023 19

20 CASE STUDY: HEB CONSTRUCTION
Case study: HEB Construction

HEB Construction first took WasteCo on

as a road maintenance subcontractor

in the Selwyn District about six years

ago. The five-year contract has since

been renewed and HEB now also

subcontracts WasteCo to provide road

maintenance in the Ashburton District.

Lee Hautler, HEB’s South Island

Regional Manager – Road Maintenance,

says that WasteCo now does all of HEB’s

road sweeping.

“WasteCo is really good to deal with.

They have good gear and good people.

They are likeminded and have the

same values as we do at HEB. They’re

open, real and genuinely care about the

environment,” he says.

Lee describes WasteCo as a trading

partner to HEB, rather than just a

subcontractor.

WasteCo’s Chief Operations Officer

Carl Storm still remembers the low level

of satisfaction Selwyn residents had

with local road maintenance and how

WasteCo was determined to put that

right when it started working with HEB.

“We asked for details of the last 100

calls about road maintenance. It didn’t

take long to find out that 90% of the

calls related to problems with deep

dish drains getting blocked – usually

by leaves. By focusing on the problem

areas, we ended up with far fewer calls

to the council.

“In one Southbridge street there was a

huge tree that, on its own, accounted

for a whole heap of complaints. Once

we identified the problem, we made

sure to deal with the leaves on a

regular basis before they caused drain

problems,” Carl says.

When WasteCo started its contract,

customer satisfaction was running at

85% – which quickly jumped up to 96%

with WasteCo on the job.

“We asked how we could get that to

100% and they said it couldn’t be done.

“We definitely think of them as the

YES team – very approachable and

always looking for innovative ways to

do things.”

WasteCo has impressed

one of New Zealand’s major

infrastructure companies with

its innovation and approach to

getting the job done.

We said we’d work together to achieve

this – and we got to 100% after just

six months.”

Lee Hautler says he’s impressed

with WasteCo’s approach. “At certain

times of the year it becomes hard

to keep up with all the leaves. We’ve

had complaints that road sweepers

have done part of a street and then

disappeared, leaving residents to think

they won’t be back and the job will

be left unfinished. What was actually

happening was that there were so

many leaves that the sweeping trucks

filled up quickly and had to go away to

be emptied. So last year WasteCo put

a gigantic leaf sucker with a shredder

onto a rubbish compactor truck –

which means leaves can be sucked up,

shredded and then compacted. Now the

trucks can go for much longer before

having to be emptied.”

The innovative WasteCo leaf sweepers

hold about five times as much leaf

material as a normal sweeper. This

means more time on the job as well as

greater carbon savings.

“This is what we like about WasteCo.

They think outside the box, and nothing

is a problem. Their view is: “together we

can work that out.” That’s a really good

ethos,” Lee says.

“We definitely think of them as the

YES team – very approachable and

always looking for innovative ways to

do things.”

The prototype leaf sweeper is back

on the job this year and will be joined

by a second model – this time with a

hydraulically driven motor to run the

sucking, shredding and compacting

tasks. This version will be quieter

than the petrol driven prototype, and

will have stronger suction and better

compaction. WasteCo CEO James

Redmayne says he’s not aware of

anyone else doing this in New Zealand.

The innovative WasteCo leaf
sweepers hold about five times

as much leaf material as a

normal sweeper.

WASTECO GROUP LTD: ANNUAL REPORT 2023 21

Crusaders vs Blues
– WasteCo’s popular

sorting station

Financials

FOR THE YEAR ENDED 31 MARCH 2023

22 FINANCIALS

WasteCo Group Limited

(formerly Goodwood Capital Limited)

Consolidated financial statements

For the year ended 31 March 2023

WASTECO GROUP LTD: ANNUAL REPORT 2023 23
WasteCo Group Limited

(formerly Goodwood Capital Limited)

Consolidated financial statements

For the year ended 31 March 2023

24 FINANCIALS
WasteCo Group Limited (formerly Goodwood Capital Limited)

CCoonnssoolliiddaatteedd SSttaatteemmeenntt ooff PPrrooffiitt oorr LLoossss aanndd OOtthheerr CCoommpprreehheennssiivvee

IInnccoommee

For the year ended 31 March 2023



The accompanying notes form part of these consolidated financial statements and should be read in conjunction with them.

2




Note2023 2022

NZ$000NZ$000

Revenue534,39218,777

Other income698713

Expenses

Employee benefits expenses7.1(15,020)(8,146)

Collection, recycling and waste disposal expenses(6,695)(3,840)

Fleet operating expenses(4,762)(2,579)

Depreciation and amortisation expenses7(4,054)(2,394)

Property expenses(500)(257)

Other expenses7(1,910)(1,445)

Profit from operations1,549829

Reverse acquisition share based payment24(1,239)-

Reverse listing expenses(403)-

Finance costs7.2(2,063)(971)

Loss before income tax(2,156)(142)

Income tax benefit9236138

Loss for the year

(1,920)(4)

Other comprehensive income

Other comprehensive income for the year--

Total comprehensive loss for the year

(1,920)(4)

Earnings/(loss) per share

Basic and diluted loss per share (NZ$)10(0.0034)(0.0000)

WASTECO GROUP LTD: ANNUAL REPORT 2023 25
WasteCo Group Limited (formerly Goodwood Capital Limited)

CCoonnssoolliiddaatteedd SSttaatteemmeenntt ooff PPrrooffiitt oorr LLoossss aanndd OOt thheerr CCoommpprreehheennssiivvee

IInnccoommee

For the year ended 31 March 2023



The accompanying notes form part of these consolidated financial statements and should be read in conjunction with them.

2




Note2023 2022

NZ$000NZ$000

Revenue534,39218,777

Other income698713

Expenses

Employee benefits expenses7.1(15,020)(8,146)

Collection, recycling and waste disposal expenses(6,695)(3,840)

Fleet operating expenses(4,762)(2,579)

Depreciation and amortisation expenses7(4,054)(2,394)

Property expenses(500)(257)

Other expenses7(1,910)(1,445)

Profit from operations1,549829

Reverse acquisition share based payment24(1,239)-

Reverse listing expenses(403)-

Finance costs7.2(2,063)(971)

Loss before income tax(2,156)(142)

Income tax benefit9236138

Loss for the year

(1,920)(4)

Other comprehensive income

Other comprehensive income for the year--

Total comprehensive loss for the year

(1,920)(4)

Earnings/(loss) per share

Basic and diluted loss per share (NZ$)10(0.0034)(0.0000)

WasteCo Group Limited (formerly Goodwood Capital Limited)

CCoonnssoolliiddaatteedd SSttaatteemmeenntt ooff CChhaannggeess iinn EEqquuiittyy

For the year ended 31 March 2023



The accompanying notes form part of these consolidated financial statements and should be read in conjunction with them.

3





Note

Share

capital

Convertible

notes

reserve

Share based

payments

reserve

Retained

earnings

Total equity

NZ$000NZ$000NZ$000NZ$000NZ$000

Balance at 1 April 2021641--1,6082,249

Loss for the year---(4)(4)

Other comprehensive income net of income tax-----

Total comprehensive loss---(4)(4)

Transactions with owners in their capacity as owners

Equity component recognised in convertible notes

reserve

18.1-38--38

Balance at 31 March 202264138-1,6042,283

Balance at 1 April 202264138-1,6042,283

Loss for the year---(1,920)(1,920)

Other comprehensive income net of income tax-----

Total comprehensive loss---(1,920)(1,920)

Transactions with owners in their capacity as owners

Equity component recognised in convertible notes

reserve

18.1-39--39

Shares issued on reverse acquisition191,153---1,153

Shares issued for convertible notes18.1, 194,077(77)--4,000

Shares issued during the year194,000---4,000

Share options issued20, 21--326-326

Share options forfeited20, 21--(22)-(22)

Balance at 31 March 20239,871-304(316)9,859

26 FINANCIALS
WasteCo Group Limited (formerly Goodwood Capital Limited)

CCoonnssoolliiddaatteedd SSttaatteemmeenntt ooff FFiinnaanncciiaall PPoossiittiioonn

As at 31 March 2023

The accompanying notes form part of these consolidated financial statements and should be read in conjunction with them.

4

These consolidated financial statements were approved by the Board on 30 June 2023.

Signed on behalf of the Board by:

Shane Edmond Roger Gower

Director Director

Note2023 2022

NZ$000NZ$000

ASSETS

Current assets

Cash and cash equivalents

11

873698

Trade receivables and other current assets

12

5,0383,697

Income tax receivable100-

Inventories

13

23072

Total current assets6,2414,467

Non-current assets

Property, plant and equipment1430,85324,532

Right-of-use assets15.15,8635,299

Intangible assets16157147

Total non-current assets36,87329,978

Total assets43,11434,445

LIABILITIES

Current liabilities

Trade and other payables175,2035,527

Lease liabilities15.2711644

Borrowings185,6574,906

Payable for acquisition of business251153,562

Income tax payable-37

Total current liabilities11,68614,676

Non-current liabilities

Deferred tax liabilities9.386324

Lease liabilities15.25,9645,355

Borrowings1815,51911,807

Total non-current liabilities21,56917,486

Total liabilities33,25532,162

Net assets

9,8592,283

EQUITY

Share capital199,871641

Convertible notes reserve18.1-38

Share based payments reserve20304-

Retained earnings(316)1,604

Total equity

9,8592,283

WasteCo Group Limited (formerly Goodwood Capital Limited)

CCoonnssoolliiddaatteedd SSttaatteemmeenntt ooff CCaasshh FFlloowws s

For the year ended 31 March 2023


The accompanying notes form part of these consolidated financial statements and should be read in conjunction with them.

5




Note2023 2022

NZ$000NZ$000

Cash flows from operating activities

Receipts from customers

33,29616,979

Government grants received

100206

Payments to suppliers and employees

(29,670)(13,354)

Income tax paid

(139)(87)

Net cash from operating activities

26

3,5873,744

Cash flows from investing activities

Payments for property, plant and equipment

(8,529)(9,276)

Acquisition of businesses

(4,463)(2,831)

Payments for intangible assets

(19)-

Cash received on reverse listing acquisition

2-

Net cash used in investing activities

(13,009)(12,107)

Cash flows from financing activities

Proceeds from issue of share capital

4,000-

Proceeds from borrowings

13,95312,221

Principal repayment of borrowings

(5,644)(2,680)

Interest paid on borrowings

(1,574)(660)

Principal repayment of lease liabilities

(725)(425)

Interest paid on lease liabilities

(413)(311)

Lease incentive received

-300

Net cash from financing activities

9,5978,445

Net increase in cash and cash equivalents17582

Cash and cash equivalents at the beginning of the year698616

Cash and cash equivalents at the end of the year

11

873698

WASTECO GROUP LTD: ANNUAL REPORT 2023 27
WasteCo Group Limited (formerly Goodwood Capital Limited)

CCoonnssoolliiddaatteedd SSttaatteemmeenntt ooff FFiinnaanncciiaall PPoossiittiioonn

As at 31 March 2023

The accompanying notes form part of these consolidated financial statements and should be read in conjunction with them.

4

These consolidated financial statements were approved by the Board on 30 June 2023.

Signed on behalf of the Board by:

Shane Edmond Roger Gower

Director Director

Note2023 2022

NZ$000NZ$000

ASSETS

Current assets

Cash and cash equivalents

11

873698

Trade receivables and other current assets

12

5,0383,697

Income tax receivable100-

Inventories

13

23072

Total current assets6,2414,467

Non-current assets

Property, plant and equipment1430,85324,532

Right-of-use assets15.15,8635,299

Intangible assets16157147

Total non-current assets36,87329,978

Total assets43,11434,445

LIABILITIES

Current liabilities

Trade and other payables175,2035,527

Lease liabilities15.2711644

Borrowings185,6574,906

Payable for acquisition of business251153,562

Income tax payable-37

Total current liabilities11,68614,676

Non-current liabilities

Deferred tax liabilities9.386324

Lease liabilities15.25,9645,355

Borrowings1815,51911,807

Total non-current liabilities21,56917,486

Total liabilities33,25532,162

Net assets

9,8592,283

EQUITY

Share capital199,871641

Convertible notes reserve18.1-38

Share based payments reserve20304-

Retained earnings(316)1,604

Total equity

9,8592,283

WasteCo Group Limited (formerly Goodwood Capital Limited)

CCoonnssoolliiddaatteedd SSttaatteemmeenntt ooff CCaasshh FFlloowwss

For the year ended 31 March 2023


The accompanying notes form part of these consolidated financial statements and should be read in conjunction with them.

5




Note2023 2022

NZ$000NZ$000

Cash flows from operating activities

Receipts from customers

33,29616,979

Government grants received

100206

Payments to suppliers and employees

(29,670)(13,354)

Income tax paid

(139)(87)

Net cash from operating activities

26

3,5873,744

Cash flows from investing activities

Payments for property, plant and equipment

(8,529)(9,276)

Acquisition of businesses

(4,463)(2,831)

Payments for intangible assets

(19)-

Cash received on reverse listing acquisition

2-

Net cash used in investing activities

(13,009)(12,107)

Cash flows from financing activities

Proceeds from issue of share capital

4,000-

Proceeds from borrowings

13,95312,221

Principal repayment of borrowings

(5,644)(2,680)

Interest paid on borrowings

(1,574)(660)

Principal repayment of lease liabilities

(725)(425)

Interest paid on lease liabilities

(413)(311)

Lease incentive received

-300

Net cash from financing activities

9,5978,445

Net increase in cash and cash equivalents17582

Cash and cash equivalents at the beginning of the year698616

Cash and cash equivalents at the end of the year

11

873698

28 FINANCIALS
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



6

11.. GGeenneerraall iinnffoorrmmaattiioonn

WasteCo Group Limited (formerly Goodwood Capital Limited) (‘WasteCo’ or ‘the Company’) and its

subsidiaries (together ‘the Group’) are limited liability companies, incorporated under the Companies Act

1993 and domiciled in New Zealand. The Group was formed by a reverse acquisition on 5 December

2022 of WasteCo Group Limited and WasteCo Holdings NZ Limited (‘WasteCo Holdings’) (refer note 2.3).

The Group provides solutions in the collection of waste and recycling, sweeping services and industrial

cleaning services. WasteCo is a holding company for the Group. Details of subsidiary companies and their

principal activities are set out in note 22.

The address of the Company’s registered office is 421 Blenheim Road, Christchurch.

The Company’s name change occurred on 5 December 2022.

22.. SSiiggnniiffiiccaanntt aaccccoouunnttiinngg ppoolliicciieess

The following are the significant accounting policies adopted by the Group in the preparation and

presentation of the consolidated financial statements. There have been no changes in accounting

policies since the previous year end unless otherwise stated.

2.1 Statement of compliance and reporting framework

The consolidated financial statements have been prepared in accordance with Generally Accepted

Accounting Practice in New Zealand (‘NZ GAAP’). The Group is a for-profit entity for the purposes of

complying with NZ GAAP. The consolidated financial statements comply with New Zealand equivalents to

International Financial Reporting Standards (‘NZ IFRS’), International Financial Reporting Standards

(‘IFRS’),

and other applicable New Zealand Financial Reporting Standards as appropriate for for-profit

entities. The Group is a Tier 1 for-profit entity in accordance with XRB A1 Application of the Accounting

Standards Framework.

The Company is an FMC reporting entity under the Financial Markets Conduct Act 2013. The Company is

listed on the NZX Main Board ("NZX"). These consolidated financial statements have been prepared in

accordance with the requirements of the Financial Markets Conduct Act 2013 and the NZX Main Board

Listing Rules.

2.2 Basis of preparation

The consolidated financial statements have been prepared on a historical cost basis apart from those

items measured at fair value as described below. Historical cost is generally based on the fair value of the

consideration given in exchange for goods and services.

The consolidated financial statements are presented in New Zealand dollars which is the Group’s

functional and presentation currency, rounded to the nearest thousand dollars unless otherwise stated.

The comparative information shown within these consolidated financial statements is that of WasteCo

Holdings, the primary subsidiary, for the period 1 April 2021 to 31 March 2022 as WasteCo Holdings

Limited was determined to be the accounting acquirer in the reverse acquisition on 5 December 2022

(refer note 2.3). Comparative information in the consolidated financial statements has been adjusted in

order to be consistent with the presentation of the current period. These adjustments are limited to

classification and disclosure and had no significant net impact on total assets, total equity, profit or cash

flow classification.

WASTECO GROUP LTD: ANNUAL REPORT 2023 29
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



6

11.. GGeenneerraall iinnffoor rmmaattiioonn

WasteCo Group Limited (formerly Goodwood Capital Limited) (‘WasteCo’ or ‘the Company’) and its

subsidiaries (together ‘the Group’) are limited liability companies, incorporated under the Companies Act

1993 and domiciled in New Zealand. The Group was formed by a reverse acquisition on 5 December

2022 of WasteCo Group Limited and WasteCo Holdings NZ Limited (‘WasteCo Holdings’) (refer note 2.3).

The Group provides solutions in the collection of waste and recycling, sweeping services and industrial

cleaning services. WasteCo is a holding company for the Group. Details of subsidiary companies and their

principal activities are set out in note 22.

The address of the Company’s registered office is 421 Blenheim Road, Christchurch.

The Company’s name change occurred on 5 December 2022.

22.. SSi iggnniiffi iccaanntt aaccccoouunnttiinngg ppool liicciieess

The following are the significant accounting policies adopted by the Group in the preparation and

presentation of the consolidated financial statements. There have been no changes in accounting

policies since the previous year end unless otherwise stated.

2.1 Statement of compliance and reporting framework

The consolidated financial statements have been prepared in accordance with Generally Accepted

Accounting Practice in New Zealand (‘NZ GAAP’). The Group is a for-profit entity for the purposes of

complying with NZ GAAP. The consolidated financial statements comply with New Zealand equivalents to

International Financial Reporting Standards (‘NZ IFRS’), International Financial Reporting Standards

(‘IFRS’),

and other applicable New Zealand Financial Reporting Standards as appropriate for for-profit

entities. The Group is a Tier 1 for-profit entity in accordance with XRB A1 Application of the Accounting

Standards Framework.

The Company is an FMC reporting entity under the Financial Markets Conduct Act 2013. The Company is

listed on the NZX Main Board ("NZX"). These consolidated financial statements have been prepared in

accordance with the requirements of the Financial Markets Conduct Act 2013 and the NZX Main Board

Listing Rules.

2.2 Basis of preparation

The consolidated financial statements have been prepared on a historical cost basis apart from those

items measured at fair value as described below. Historical cost is generally based on the fair value of the

consideration given in exchange for goods and services.

The consolidated financial statements are presented in New Zealand dollars which is the Group’s

functional and presentation currency, rounded to the nearest thousand dollars unless otherwise stated.

The comparative information shown within these consolidated financial statements is that of WasteCo

Holdings, the primary subsidiary, for the period 1 April 2021 to 31 March 2022 as WasteCo Holdings

Limited was determined to be the accounting acquirer in the reverse acquisition on 5 December 2022

(refer note 2.3). Comparative information in the consolidated financial statements has been adjusted in

order to be consistent with the presentation of the current period. These adjustments are limited to

classification and disclosure and had no significant net impact on total assets, total equity, profit or cash

flow classification.

WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



7

2.3 Reverse acquisition

On 5 December 2022 the Company entered into a reverse acquisition in which the Company acquired

100% of the shares of the already operating WasteCo Holdings and its subsidiaries for $29.2 million. The

purchase price was satisfied by the issue of:

1. 504 million fully paid ordinary shares at an issue price of $0.05 per share to the WasteCo Holdings

shareholders, and

2. 80 million fully paid ordinary shares at an issue price of $0.05 per share to the holders of $4 million

mandatory convertible notes previously issued by WasteCo Holdings.

The reverse acquisition does not represent a business combination in accordance with NZ IFRS 3 Business

Combinations because WasteCo did not constitute ‘a business’, as it was a listed non-operating entity.

The Board of Directors have therefore accounted for the reverse acquisition as a share-based payment

transaction, as an issue of shares, in accordance with NZ IFRS 2 Share-based Payments.

The appropriate accounting treatment for recognising the new group structure is to treat WasteCo

Holdings as the accounting acquirer of the Company. The consolidated financial statements prepared

following the reverse acquisition are issued under the name of the legal parent and accounting acquiree,

WasteCo, but describe the continuation of the consolidated financial statements of the legal subsidiary

and accounting acquirer, WasteCo Holdings, with the following exception; details of the equity structure

(that is, the number and type of ordinary shares issued) shown in note 19 (including the comparative

information) reflect the equity structure of the legal parent WasteCo.

Therefore, the consolidated financial statements for the year ended 31 March 2023, reflect the 12

months of trading of the WasteCo Holdings group, and include the financial performance and financial

position of WasteCo from the date of its acquisition on 5 December 2022. The comparative information

presented in the consolidated financial statements represents the financial performance and financial

position of the WasteCo Holdings group.

Refer to note 4.1 for critical estimates and judgements involved in the reverse acquisition.

2.4 Going concern

The Directors have, at the time of approving the consolidated financial statements, a reasonable

expectation that the Group has adequate resources to continue in operational existence for the

foreseeable future. They have therefore continued to adopt the going concern basis of accounting in

preparing the consolidated financial statements.

2.5 Principles of consolidation

The consolidated financial statements incorporate the financial statements of the Company and entities

controlled by the Company. Control is achieved when the Company:

• has power over the investee;

• is exposed, or has rights, to variable returns from its involvement with the investee; and

• has the ability to use its power to affect its returns.

The Company reassesses whether or not it controls an investee if facts and circumstances indicate that

there are changes to one or more of the three elements of control listed above.

Where necessary, adjustments are made to the financial statements of subsidiaries to bring their

accounting policies in line with the Group's accounting policies.

All intragroup assets, liabilities, equity, income, expenses, and cash flows relating to transactions

between members of the Group are eliminated in full on consolidation.

30 FINANCIALS
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



8

Business combinations

Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred

in a business combination is measured at fair value, which is calculated as the sum of the acquisition-

date fair values of the assets transferred by the Group, liabilities incurred by the Group to the former

owners of the acquiree and the equity interests issued by the Group in exchange for control of the

acquiree. Acquisition related costs are generally recognised in profit or loss as incurred.

At the acquisition date, the identifiable assets acquired, and the liabilities assumed are recognised at

their fair value at the acquisition date, except that deferred tax assets or liabilities, and liabilities related

to employee benefit arrangements, are recognised and measured in accordance with NZ IAS 12 Income

Taxes and NZ IAS 19 Employee Benefits respectively.

Goodwill is measured as the excess of the sum of the consideration transferred over the net of the

acquisition‑date amounts of the identifiable assets acquired, and the liabilities assumed. If, after

reassessment, the net of the acquisition‑date amounts of the identifiable assets acquired and liabilities

assumed exceeds the sum of the consideration transferred, the excess is recognised immediately in

profit or loss as a bargain purchase gain.

If the initial accounting for a business combination is incomplete by the end of the reporting period in

which the combination occurs, the Group reports provisional amounts for the items for which the

accounting is incomplete. Those provisional amounts are adjusted during the measurement period or

additional assets or liabilities are recognised, to reflect new information obtained about facts and

circumstances that existed as of the acquisition date that, if known, would have affected the amounts

recognised as of that date. Measurement period adjustments are adjustments that arise from additional

information obtained during the ‘measurement period’ (which cannot exceed one year from the

acquisition date) about facts and circumstances that existed at the acquisition date.

Refer to note 2.3 in relation to the basis of preparation due to the reverse acquisition transaction

and

note 4.1 for critical estimates and judgements involved in the transaction.

2.6 Segment reporting

Operating segments are reported in a manner consistent with the internal reporting provided to the

chief operating decision maker. The chief operating decision maker, who is responsible for allocating

resources and assessing performance of the operating segments, has been identified as the Board of

Directors.

2.7 Revenue recognition

The Group derives revenue from the following major sources:

• Waste collection, recycling, and disposal services;

• Sweeping services; and

• Industrial cleaning services.

Revenue is measured based on the consideration to which the Group expects to be entitled in a contract

with a customer and excludes amounts collected on behalf of third parties, such as goods and service tax

and customs duties.

Waste collection, recycling, and disposal services

The Group provides waste collection,

recycling, and disposal services via front load bins, hook bins, skip

bins and wheelie bins from both commercial and private customers. Recycling services include a

dedicated sorting facility with a focus on diversion from landfill.

WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



9

Revenue from collection and disposal of waste is recognised when the performance obligation to the

customer has been fulfilled, which is generally when the waste has been collected from the customer.

Costs to dispose of the waste are generally incurred at, or close to, the time of collection.

Revenue from the sale of recycled materials is recognised when control of the goods has transferred,

being when the goods have been shipped to the customer’s specific location or when the customer

collects the goods.

Sweeping services

The Group provides sweeping services for Councils and commercial customers. Contracts for the

provision of sweeping services to Councils are usually for ongoing sweeping over multi-year periods.

Revenue from sweeping services provided to Councils are recognised over time as the services are

performed. Revenue from sweeping services provided to commercial customers is recognised when the

performance obligation to the customer has been fulfilled, which is generally when the sweeping service

has been provided.

Industrial cleaning services

The Group provides industrial scrubbing, high pressure water blasting, urgent spill response services,

port-a-loo hire and collection, and septic tank cleaning. Revenue from industrial cleaning services is

recognised when the performance obligation to the customer has been performed, which is generally

when the cleaning services have been performed, or in the case of port-a-loos, when the regular cleaning

and waste collection has been completed.

2.8 Government grants

Government grants are not recognised until there is reasonable assurance that the Group will comply

with the conditions attached to them and that the grants will be received. Government grants are

recognised in profit or loss over the period necessary to match them with the costs that they are

intended to compensate.

2.9 Interest income

Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective

interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through

the expected life of the financial asset to that asset's net carrying amount on initial recognition.

2.10 Borrowing costs

Borrowing costs include interest expense calculated using the effective interest method and finance

charges in respect of lease arrangements. Borrowing costs are expensed as incurred.

2.11 Income Tax

The income tax expense or benefit for the period is the tax payable on the current period’s taxable

income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities

attributable to temporary differences and to unused tax losses.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before

tax’ as reported in the Statement of Profit or Loss and Other Comprehensive Income because of items of

income or expense that are taxable or deductible in other years and items that are never taxable or

deductible. The Group's current tax is calculated using tax rates that have been enacted or substantively

enacted by the end of the reporting period.

WASTECO GROUP LTD: ANNUAL REPORT 2023 31
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



9

Revenue from collection and disposal of waste is recognised when the performance obligation to the

customer has been fulfilled, which is generally when the waste has been collected from the customer.

Costs to dispose of the waste are generally incurred at, or close to, the time of collection.

Revenue from the sale of recycled materials is recognised when control of the goods has transferred,

being when the goods have been shipped to the customer’s specific location or when the customer

collects the goods.

Sweeping services

The Group provides sweeping services for Councils and commercial customers. Contracts for the

provision of sweeping services to Councils are usually for ongoing sweeping over multi-year periods.

Revenue from sweeping services provided to Councils are recognised over time as the services are

performed. Revenue from sweeping services provided to commercial customers is recognised when the

performance obligation to the customer has been fulfilled, which is generally when the sweeping service

has been provided.

Industrial cleaning services

The Group provides industrial scrubbing, high pressure water blasting, urgent spill response services,

port-a-loo hire and collection, and septic tank cleaning. Revenue from industrial cleaning services is

recognised when the performance obligation to the customer has been performed, which is generally

when the cleaning services have been performed, or in the case of port-a-loos, when the regular cleaning

and waste collection has been completed.

2.8 Government grants

Government grants are not recognised until there is reasonable assurance that the Group will comply

with the conditions attached to them and that the grants will be received. Government grants are

recognised in profit or loss over the period necessary to match them with the costs that they are

intended to compensate.

2.9 Interest income

Interest income is accrued on a time basis, by reference to the principal outstanding and at the effective

interest rate applicable, which is the rate that exactly discounts estimated future cash receipts through

the expected life of the financial asset to that asset's net carrying amount on initial recognition.

2.10 Borrowing costs

Borrowing costs include interest expense calculated using the effective interest method and finance

charges in respect of lease arrangements. Borrowing costs are expensed as incurred.

2.11 Income Tax

The income tax expense or benefit for the period is the tax payable on the current period’s taxable

income based on the applicable income tax rate adjusted by changes in deferred tax assets and liabilities

attributable to temporary differences and to unused tax losses.

Current tax

The tax currently payable is based on taxable profit for the year. Taxable profit differs from ‘profit before

tax’ as reported in the Statement of Profit or Loss and Other Comprehensive Income because of items of

income or expense that are taxable or deductible in other years and items that are never taxable or

deductible. The Group's current tax is calculated using tax rates that have been enacted or substantively

enacted by the end of the reporting period.

32 FINANCIALS
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



10

Deferred tax

Deferred tax is recognised on temporary differences between the carrying amounts of assets and

liabilities in the financial statements and the corresponding tax bases used in the computation of taxable

profit. Deferred tax liabilities are generally recognised for all taxable temporary differences. Deferred tax

assets are recognised for all deductible temporary differences to the extent that it is probable that

taxable profits will be available against which those deductible temporary differences can be utilised.

Such deferred tax assets and liabilities are not recognised if the temporary difference arises from the

initial recognition (other than in a business combination) of assets and liabilities in a transaction that

affects neither the taxable profit nor the accounting profit.

Deferred tax liabilities and assets are measured at the tax rates that are expected to apply in the period

in which the liability is settled or the asset realised, based on tax rates (and tax laws) that have been

enacted or substantively enacted by the end of the reporting period.

The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow

from the manner in which the Group expects, at the end of the reporting period, to recover or settle the

carrying amount of its assets and liabilities.

2.12 Goods and services tax

Revenue, expenses, assets, and liabilities are recognised net of the amount of goods and services tax

(GST) except:

• where the amount of GST incurred is not recovered from the Inland Revenue Department, it is

recognised as part of the cost of acquisition of an asset or as part of an item of expense; or

• for receivables and payables, which are recognised inclusive of GST.

The net amount of GST recoverable or payable to the Inland Revenue Department is included as part of

receivables or payables.

2.13 Inventories

Inventories are stated at the lower of cost and net realisable value. Cost comprises direct materials and,

where applicable, costs that have been incurred in bringing the inventories to their present location and

condition. Costs of inventories are determined on a first-in-first-out basis. Net realisable value represents

the estimated selling price for inventories less all estimated costs of completion and costs necessary to

make the sale.


2.14 Property, plant and equipment

Each class of property, plant and equipment is measured at historical cost less accumulated depreciation

and accumulated impairment losses. Historical cost includes expenditure that is directly attributable to

the acquisition of the items.

Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as

appropriate, only when it is probable the future economic benefits associated with the item will flow to

the Group and the costs of the item can be measured reliably. The carrying amounts of any component

accounted for as a separate asset is derecognised when replaced. All other repairs and maintenance are

charged to profit or loss in the reporting period in which they are incurred.

Depreciation is recognised so as to write off the cost of assets less their residual values, over their useful

lives. The estimated useful lives, residual values and depreciation method are reviewed at the end of

each reporting period.


WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



11

The following depreciation rates are applied:

Class of asset Depreciation Depreciation

rates basis

Plant and equipment 5% - 25% Straight line

10% - 67% Diminishing value

Vehicles 7% - 15% Straight line

13% - 30% Diminishing value

Office equipment 16% - 50% Diminishing value

Leasehold improvements 10% Diminishing value

An item of property, plant and equipment is derecognised upon disposal or when no future economic

benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the

disposal or retirement of an item of property, plant and equipment is determined as the difference

between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.


An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying

amount is greater than its estimated recoverable amount.

2.15 Intangible assets

Acquired intangible assets with finite useful lives are carried at cost less accumulated amortisation and

accumulated impairment losses. Amortisation is recognised on a diminishing value basis over their

estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of

each reporting period, with the effect of any changes in estimate being accounted for on a prospective

basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less

accumulated impairment losses.

The following amortisation rates are applied:

Class of asset Depreciation Depreciation

rates basis

Computer software 50% Diminishing value

Goodwill is measured at cost less accumulated impairment losses. Goodwill is tested for impairment

annually and reviewed at each balance date to determine whether there is any objective evidence of

impairment.

An intangible asset is derecognised on disposal, or when no future economic benefits are expected from

use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the

difference between

the net disposal proceeds and the carrying amount of the asset, are recognised in

profit or loss when the asset is derecognised.

2.16 Leases

The Group assess whether a contract is or contains a lease, at inception of the contract. The Group

recognises a right-of -use asset and a corresponding lease liability with respect to all lease arrangements

in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or

less) and lease of low value assets. For these leases, the Group recognises the lease payments as an

operating expense on a straight-line basis over the term of the lease unless another systematic basis is

more representative of the time pattern in which economic benefit from the leased assets are

consumed.

The lease liability is initially measured at the present value of the future lease payments, discounted by

using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its

WASTECO GROUP LTD: ANNUAL REPORT 2023 33
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



11

The following depreciation rates are applied:

Class of asset Depreciation Depreciation

rates basis

Plant and equipment 5% - 25% Straight line

10% - 67% Diminishing value

Vehicles 7% - 15% Straight line

13% - 30% Diminishing value

Office equipment 16% - 50% Diminishing value

Leasehold improvements 10% Diminishing value

An item of property, plant and equipment is derecognised upon disposal or when no future economic

benefits are expected to arise from the continued use of the asset. Any gain or loss arising on the

disposal or retirement of an item of property, plant and equipment is determined as the difference

between the sales proceeds and the carrying amount of the asset and is recognised in profit or loss.


An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying

amount is greater than its estimated recoverable amount.

2.15 Intangible assets

Acquired intangible assets with finite useful lives are carried at cost less accumulated amortisation and

accumulated impairment losses. Amortisation is recognised on a diminishing value basis over their

estimated useful lives. The estimated useful life and amortisation method are reviewed at the end of

each reporting period, with the effect of any changes in estimate being accounted for on a prospective

basis. Intangible assets with indefinite useful lives that are acquired separately are carried at cost less

accumulated impairment losses.

The following amortisation rates are applied:

Class of asset Depreciation Depreciation

rates basis

Computer software 50% Diminishing value

Goodwill is measured at cost less accumulated impairment losses. Goodwill is tested for impairment

annually and reviewed at each balance date to determine whether there is any objective evidence of

impairment.

An intangible asset is derecognised on disposal, or when no future economic benefits are expected from

use or disposal. Gains or losses arising from derecognition of an intangible asset, measured as the

difference between

the net disposal proceeds and the carrying amount of the asset, are recognised in

profit or loss when the asset is derecognised.

2.16 Leases

The Group assess whether a contract is or contains a lease, at inception of the contract. The Group

recognises a right-of -use asset and a corresponding lease liability with respect to all lease arrangements

in which it is the lessee, except for short-term leases (defined as leases with a lease term of 12 months or

less) and lease of low value assets. For these leases, the Group recognises the lease payments as an

operating expense on a straight-line basis over the term of the lease unless another systematic basis is

more representative of the time pattern in which economic benefit from the leased assets are

consumed.

The lease liability is initially measured at the present value of the future lease payments, discounted by

using the rate implicit in the lease. If this rate cannot be readily determined, the Group uses its

34 FINANCIALS
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



12

incremental borrowing rate. The lease liability is subsequently measured at amortised cost using the

using the effective interest method. It is remeasured when there is a change in future lease payments

arising from a change in an index or rate or if the Group changes its assessment of whether it will

exercise a purchase, extension of termination option, with a corresponding adjustment made to the

carrying value of the right-of -use asset.

The right-of -use assets comprise the initial measurement of the corresponding lease liability, lease

payments made at or before the commencement date and any initial direct costs and restoration costs.

They are subsequently measured at cost less accumulated depreciation and impairment losses. Right-of -

use assets are depreciated over the shorter period of lease term and the useful life of the underlying

asset. The depreciation starts at the commencement date of the lease.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying

amount is greater than its estimated recoverable amount.

2.17 Short‑term employee benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave

and sick leave in the period the related service is rendered at the undiscounted amount of the benefits

expected to be paid in exchange for that service.

2.18 Financial instruments

Financial assets and financial liabilities are recognised in the Consolidated Statement of Financial Position

when the Group becomes a party to the contractual provisions of the instruments.

2.19 Financial assets

Financial assets are measured at amortised cost on the basis of the Group’s business model for managing

financial assets and the contractual cash flow characteristics of the financial assets.

Financial assets at amortised cost

The Group’s financial assets at amortised cost include cash and cash equivalents, and trade and other

receivables. Cash and cash equivalents include cash in hand and deposits held at call with banks.

Impairment of financial assets

The Group recognises a loss allowance for expected credit losses on trade receivables. The amount of

expected credit losses is updated at each reporting date to reflect changes in credit risk since initial

recognition of the respective financial instrument.

The Group recognises lifetime expected credit losses for trade receivables. The expected credit losses on

these financial assets are estimated using a provision matrix based on the Group’s historical credit loss

experience, adjusted for factors that are specific to the debtors, general economic conditions and an

assessment of both the current as well as the forecast direction of conditions at the reporting date,

including time value of money where appropriate.

Derecognition of financial assets

The Group derecognises a financial asset only when the contractual rights to the cash flows from the

asset expire, or when it transfers the financial asset and substantially all the risks and rewards of

ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the

risks and rewards of ownership and continues to control the transferred asset, the Group recognises its

retained interest in the asset and an associated liability for amounts it may have to pay. If the Group

retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group

continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds

received.

WASTECO GROUP LTD: ANNUAL REPORT 2023 35
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



12

incremental borrowing rate. The lease liability is subsequently measured at amortised cost using the

using the effective interest method. It is remeasured when there is a change in future lease payments

arising from a change in an index or rate or if the Group changes its assessment of whether it will

exercise a purchase, extension of termination option, with a corresponding adjustment made to the

carrying value of the right-of -use asset.

The right-of -use assets comprise the initial measurement of the corresponding lease liability, lease

payments made at or before the commencement date and any initial direct costs and restoration costs.

They are subsequently measured at cost less accumulated depreciation and impairment losses. Right-of -

use assets are depreciated over the shorter period of lease term and the useful life of the underlying

asset. The depreciation starts at the commencement date of the lease.

An asset’s carrying amount is written down immediately to its recoverable amount if the asset’s carrying

amount is greater than its estimated recoverable amount.

2.17 Short‑term employee benefits

A liability is recognised for benefits accruing to employees in respect of wages and salaries, annual leave

and sick leave in the period the related service is rendered at the undiscounted amount of the benefits

expected to be paid in exchange for that service.

2.18 Financial instruments

Financial assets and financial liabilities are recognised in the Consolidated Statement of Financial Position

when the Group becomes a party to the contractual provisions of the instruments.

2.19 Financial assets

Financial assets are measured at amortised cost on the basis of the Group’s business model for managing

financial assets and the contractual cash flow characteristics of the financial assets.

Financial assets at amortised cost

The Group’s financial assets at amortised cost include cash and cash equivalents, and trade and other

receivables. Cash and cash equivalents include cash in hand and deposits held at call with banks.

Impairment of financial assets

The Group recognises a loss allowance for expected credit losses on trade receivables. The amount of

expected credit losses is updated at each reporting date to reflect changes in credit risk since initial

recognition of the respective financial instrument.

The Group recognises lifetime expected credit losses for trade receivables. The expected credit losses on

these financial assets are estimated using a provision matrix based on the Group’s historical credit loss

experience, adjusted for factors that are specific to the debtors, general economic conditions and an

assessment of both the current as well as the forecast direction of conditions at the reporting date,

including time value of money where appropriate.

Derecognition of financial assets

The Group derecognises a financial asset only when the contractual rights to the cash flows from the

asset expire, or when it transfers the financial asset and substantially all the risks and rewards of

ownership of the asset to another entity. If the Group neither transfers nor retains substantially all the

risks and rewards of ownership and continues to control the transferred asset, the Group recognises its

retained interest in the asset and an associated liability for amounts it may have to pay. If the Group

retains substantially all the risks and rewards of ownership of a transferred financial asset, the Group

continues to recognise the financial asset and also recognises a collateralised borrowing for the proceeds

received.

WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



13

On derecognition of a financial asset measured at amortised cost, the difference between the asset’s

carrying amount and the sum of the consideration received and receivable is recognised in profit or loss.

2.20 Financial liabilities

Financial liabilities (including trade and other payables, borrowings and lease liabilities) are measured at

amortised cost using the effective interest method.

Derecognition of financial liabilities

The Group derecognises financial liabilities when, and only when, the Group’s obligations are discharged,

cancelled or have expired. The difference between the carrying amount of the financial liability

derecognised and the consideration paid and payable is recognised in profit or loss.

Convertible notes

The compound financial instruments issued by the Group comprise convertible notes.

The component parts of convertible loan notes issued by the Group are classified separately as financial

liabilities and equity in accordance with the substance of the contractual arrangements and the

definitions of a financial liability and an equity instrument. An equity instrument is any contract that

evidences a residual interest in the assets of an entity after deducting all of its liabilities. A conversion

option that will be settled by the exchange of a fixed amount of cash or another financial asset for a fixed

number of the Company’s own equity instruments is an equity instrument.

At the date of issue, the fair value of the liability component is estimated using the prevailing market

interest rate for a similar non‑convertible instrument. This amount is recorded as a liability on an

amortised cost basis using the effective interest method until extinguished upon conversion or at the

instrument’s maturity date.

The conversion option classified as equity is determined by deducting the amount of the liability

component from the fair value of the compound instrument as a whole. This is recognised and included

in equity, net of income tax effects, and is not subsequently remeasured. In addition, the conversion

option classified as equity will remain in equity until the conversion option is exercised, in which case,

the balance recognised in equity will be transferred to share capital. Where the conversion option

remains unexercised at the maturity date of the convertible loan note, the balance recognised in equity

will be transferred to retained earnings. No gain or loss is recognised in profit or loss upon conversion or

expiration of the conversion option.

Transaction costs that relate to the issue of the convertible loan notes are allocated to the liability and

equity components in proportion to the allocation of the gross proceeds. Transaction costs relating to

the equity component are recognised directly in equity. Transaction costs relating to the liability

component are included in the carrying amount of the liability component and are amortised over the

lives of the convertible loan notes using the effective interest method.

2.21 Foreign currency translation

Foreign currency transactions are translated into the functional currency using the exchange rates

prevailing at the dates of the transactions where items are re-measured.

At the end of each reporting period, monetary items denominated in foreign currencies are retranslated

at the rates prevailing at that date.

Exchange differences on monetary items are recognised in the profit or loss in the period in which they

arise.

36 FINANCIALS
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



14

2.22 Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares

are shown in equity as a deduction, net of tax, from the proceeds.

2.23 Share based payment transactions

The fair value of share options issued to directors and employees is determined at the grant date and is

expensed on a straight-line basis over the vesting period, based on the Group’s estimate of the share

options that will eventually vest, with a corresponding increase in equity.

At the end of each reporting period, the Group revises its estimate of the number of share options

expected to vest. The impact of the revision of the original estimates, if any, is recognised in profit or loss

such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the

share-based payments reserve.

The share-based payment for the acquisition of WasteCo was valued at the date of the reverse

acquisition with reference to the fair value of equity instruments issued by the Company. The share-

based payment has been expensed (refer note 2.3).

33.. AApppplliiccaattiioonn ooff nneeww aanndd rreevviisseedd NNeeww ZZeeaallaanndd IInntteerrnnaattiioonnaall FFiinnaanncciiaall RReeppoorrttiinngg

SSttaannddaarrddss ((NNZZ IIFFRRSSss))

3.1 New and amended standards and interpretations

The Group has not early adopted any standards, interpretations or amendments that have been issued

but are not yet effective. Early adoption of these new standards, interpretations or amendments would

not have had a material impact on the financial result or financial position of the Group.

44.. CCrriittiiccaall aaccccoouunnttiinngg eessttiimmaatteess aanndd jjuuddggeemmeennttss

In the application of the Group’s accounting policies, which are described in note 2, the directors of the

Group are required to make judgements, estimates and assumptions about the carrying amounts of

assets and liabilities that are not readily apparent from other sources. The estimates and associated

assumptions are based on historical experience and other factors that are considered to be relevant.

Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting

estimates are recognised in the period in which the estimate is revised if the revision affects only that

period, or in the period of the revision and future periods if the revision affects both current and future

periods. Below are the critical accounting judgements.

4.1 Reverse acquisition

On 5 December 2022 the Company was acquired by WasteCo Holdings through a reverse acquisition.

96.05% of the shares of the Company were acquired in exchange for 100% of the shares in WasteCo

Holdings.

The key judgements involved in the reverse acquisition include the following:

The Group determined that WasteCo did not constitute ‘a business’, as it was a listed non-operating

entity. Therefore, the reverse listing transaction was not considered a business combination within the

scope of NZ IFRS 3. The Board of Directors have therefore accounted for the reverse acquisition as a

share-based payment transaction in accordance with NZ IFRS 2 Share-based Payments.

WASTECO GROUP LTD: ANNUAL REPORT 2023 37
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



14

2.22 Share capital

Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of new shares

are shown in equity as a deduction, net of tax, from the proceeds.

2.23 Share based payment transactions

The fair value of share options issued to directors and employees is determined at the grant date and is

expensed on a straight-line basis over the vesting period, based on the Group’s estimate of the share

options that will eventually vest, with a corresponding increase in equity.

At the end of each reporting period, the Group revises its estimate of the number of share options

expected to vest. The impact of the revision of the original estimates, if any, is recognised in profit or loss

such that the cumulative expense reflects the revised estimate, with a corresponding adjustment to the

share-based payments reserve.

The share-based payment for the acquisition of WasteCo was valued at the date of the reverse

acquisition with reference to the fair value of equity instruments issued by the Company. The share-

based payment has been expensed (refer note 2.3).

33.. AApppplliiccaattiioonn oof f nneeww aanndd rreevviisseedd NNeeww ZZeeaallaanndd IInntteerrnnaattiioonnaall FFiinnaanncciiaall RReeppoor rttiinngg

SSt taannddaarrddss ((NNZZ IIFFRRSSss))

3.1 New and amended standards and interpretations

The Group has not early adopted any standards, interpretations or amendments that have been issued

but are not yet effective. Early adoption of these new standards, interpretations or amendments would

not have had a material impact on the financial result or financial position of the Group.

44.. CCrriittiiccaall aaccccoouunnttiinngg eessttiimmaatteess aanndd jjuuddggeemmeennttss

In the application of the Group’s accounting policies, which are described in note 2, the directors of the

Group are required to make judgements, estimates and assumptions about the carrying amounts of

assets and liabilities that are not readily apparent from other sources. The estimates and associated

assumptions are based on historical experience and other factors that are considered to be relevant.

Actual results may differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting

estimates are recognised in the period in which the estimate is revised if the revision affects only that

period, or in the period of the revision and future periods if the revision affects both current and future

periods. Below are the critical accounting judgements.

4.1 Reverse acquisition

On 5 December 2022 the Company was acquired by WasteCo Holdings through a reverse acquisition.

96.05% of the shares of the Company were acquired in exchange for 100% of the shares in WasteCo

Holdings.

The key judgements involved in the reverse acquisition include the following:

The Group determined that WasteCo did not constitute ‘a business’, as it was a listed non-operating

entity. Therefore, the reverse listing transaction was not considered a business combination within the

scope of NZ IFRS 3. The Board of Directors have therefore accounted for the reverse acquisition as a

share-based payment transaction in accordance with NZ IFRS 2 Share-based Payments.

WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



15

The Board of Directors has determined the fair value of the shares issued to the existing shareholders of

WasteCo to be $1.15 million (refer note 24) based upon a market value per share of $0.05. This value per

share was determined by reference to the price per share issued on the conversion of convertible notes

as part of the reverse acquisition and a capital raise which occurred immediately after the shareholders’

approval of the reverse acquisition.

The fair value of WasteCo’s net assets, at the date of transaction, involved limited judgement and

estimate by the Group, as it consisted materially of cash, receivables and payables, as disclosed in note

24.

4.2 Impairment of non-financial assets

All assets are assessed for impairment at each reporting date by evaluating whether indicators of

impairment exist in relation to the continued use of the asset by the Group. Impairment triggers include

technology changes, adverse changes in the economic or political environment and future product

expectations. If an indicator of impairment exists, the recoverable amount of the asset is determined.

4.3 Calculation of expected credit loss allowance

When measuring expected credit losses ('ECL') the Group uses reasonable and supportable forward-

looking information, which is based on assumptions for future movement of different economic drivers

and how these drivers will affect each other.

Management specifically reviews its financial assets measured at amortised cost and analyses historical

bad debts, customer concentrations, customer credit worthiness, current economic trends and changes

in the customer payment terms when making a judgement to evaluate the adequacy of the expected

credit loss allowance.

4.4 Determining the lease term and incremental borrowing rate

In determining the lease term, judgement is required in determining whether it is reasonably certain that

an extension option will be exercised. The Group considers all relevant factors that create an economic

incentive for it to exercise the extension. After the commencement date, the Group reassesses the lease

term if there is a significant event or change in circumstances that is within its control and affects its

ability to exercise or not to exercise the option to extend (refer note 15). The Group included the

extension period as part of the lease term for leases of premises.

Lease liabilities are measured by discounting the lease payments using the interest rate implicit in the

lease. If that rate cannot be readily determined, the lessee’s incremental borrowing rate is used, being

the rate that the individual lessee would have to pay to borrow the funds necessary to obtain an asset of

similar value to the right of use asset in a similar economic environment with similar terms, security, and

conditions. To determine the incremental borrowing rate, the Group uses recent third-party financing

received as a starting point, adjusted to reflect any changes in financing conditions since the third-party

financing was received.

4.5 Determining fair values on acquisition

During the reporting period the Group made several business acquisitions (refer note 25). At acquisition

date the identifiable assets acquired, and the liabilities assumed, are recognised at their fair value.

Judgement is required in determining fair value of the assets acquired. The fair value of assets acquired is

determined by reference to market prices for similar items. For larger acquisitions independent valuers

were engaged to determine fair value.

38 FINANCIALS
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



16

4.6 Share options

The directors used judgement in determining the fair value of the share options. Share options were

independently valued using the Black-Scholes model to estimate fair value at grant date. The expected

volatility in the measure of fair value has been based on the observed volatility levels of movements in

WasteCo’s share price from 5 December 2022 up to 17 May 2023 and for overseas comparable

companies, as a proxy of the Company's future volatility. The Company did not have three years’ trading

history at the valuation date to provide a three-year historical volatility to support the share option

valuation (refer note 21).

55.. RReevveennuuee


The details above disaggregate the Group's revenue from contracts with customers into primary markets

and major service lines. All revenue is generated in New Zealand.


66.. OOtthheerr iinnccoommee


Government grants

Government grants primarily relate to the New Zealand COVID-19 wage subsidy and a grant from the

Ministry for the Environment. There are no unfulfilled conditions or other contingencies attached to

these grants.


2023 2022

NZ$000NZ$000

Revenue from waste collection, recycling and disposal services 19,99510,025

Revenue from sweeping services8,2144,002

Revenue from industrial cleaning services 6,1834,750

Total revenue from contracts with customers34,39218,777

2023 2022

NZ$000NZ$000

Covid-19 wage subsidy52106

Outsourced labour income298

Interest income17-

Ministry for the Environment grant-250

Gain on business acquisition-349

98713

WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



17

77.. EExxppeennsseess

The profit or loss for the year includes the following expenses:


7.1 Employee benefit expenses


7.2 Finance costs


88.. SSeeggmmeenntt iinnffoor rmmaattiioonn

The Group provides solutions in the collection of waste and recycling, sweeping services and industrial

cleaning services. All of these collection and disposal services are provided in New Zealand.

The Group has identified its operating segments based on the internal reports reviewed and used by the

Chief Operating Decision Maker (‘CODM’), being the Board of Directors, in assessing the Group’s

performance and in determining the allocation of resources.

The Group has provided only a measure of profit and loss for each reportable segment as the CODM is

not provided with total assets and liabilities for each segment when assessing the Group’s performance

and allocating resources.

2023 2022

NZ$000NZ$000

Expenses relating to short term leases(161)(92)

Net foreign currency gains/(losses)5(4)

Depreciation and amortisation expenses

Depreciation of property, plant and equipment (note 14)(3,208)(1,851)

Depreciation of right of use assets (note 15.1)(837)(533)

Amortisation of intangible assets (note 16)(9)(10)

(4,054)(2,394)

Fees paid to the auditor

For the current year audit of the consolidated financial statements(110)(68)

2023 2022

NZ$000NZ$000

Salary and wages(14,394)(7,983)

Employer Kiwisaver contributions(366)(163)

Share based payments (refer note 20)(260)-

(15,020)(8,146)

2023 2022

NZ$000NZ$000

Interest on asset finance borrowings(1,369)(660)

Interest on lease liabilities(413)(311)

Interest on convertible notes(256)-

Interest on shareholder loans(25)-

(2,063)(971)

WASTECO GROUP LTD: ANNUAL REPORT 2023 39
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



16

4.6 Share options

The directors used judgement in determining the fair value of the share options. Share options were

independently valued using the Black-Scholes model to estimate fair value at grant date. The expected

volatility in the measure of fair value has been based on the observed volatility levels of movements in

WasteCo’s share price from 5 December 2022 up to 17 May 2023 and for overseas comparable

companies, as a proxy of the Company's future volatility. The Company did not have three years’ trading

history at the valuation date to provide a three-year historical volatility to support the share option

valuation (refer note 21).

55.. RReevveennuuee


The details above disaggregate the Group's revenue from contracts with customers into primary markets

and major service lines. All revenue is generated in New Zealand.


66.. OOtthheerr iinnccoommee


Government grants

Government grants primarily relate to the New Zealand COVID-19 wage subsidy and a grant from the

Ministry for the Environment. There are no unfulfilled conditions or other contingencies attached to

these grants.


2023 2022

NZ$000NZ$000

Revenue from waste collection, recycling and disposal services 19,99510,025

Revenue from sweeping services8,2144,002

Revenue from industrial cleaning services 6,1834,750

Total revenue from contracts with customers34,39218,777

2023 2022

NZ$000NZ$000

Covid-19 wage subsidy52106

Outsourced labour income298

Interest income17-

Ministry for the Environment grant-250

Gain on business acquisition-349

98713

WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



17

77.. EExxppeennsseess

The profit or loss for the year includes the following expenses:


7.1 Employee benefit expenses


7.2 Finance costs


88.. SSeeggmmeenntt iinnffoorrmmaattiioonn

The Group provides solutions in the collection of waste and recycling, sweeping services and industrial

cleaning services. All of these collection and disposal services are provided in New Zealand.

The Group has identified its operating segments based on the internal reports reviewed and used by the

Chief Operating Decision Maker (‘CODM’), being the Board of Directors, in assessing the Group’s

performance and in determining the allocation of resources.

The Group has provided only a measure of profit and loss for each reportable segment as the CODM is

not provided with total assets and liabilities for each segment when assessing the Group’s performance

and allocating resources.

2023 2022

NZ$000NZ$000

Expenses relating to short term leases(161)(92)

Net foreign currency gains/(losses)5(4)

Depreciation and amortisation expenses

Depreciation of property, plant and equipment (note 14)(3,208)(1,851)

Depreciation of right of use assets (note 15.1)(837)(533)

Amortisation of intangible assets (note 16)(9)(10)

(4,054)(2,394)

Fees paid to the auditor

For the current year audit of the consolidated financial statements(110)(68)

2023 2022

NZ$000NZ$000

Salary and wages(14,394)(7,983)

Employer Kiwisaver contributions(366)(163)

Share based payments (refer note 20)(260)-

(15,020)(8,146)

2023 2022

NZ$000NZ$000

Interest on asset finance borrowings(1,369)(660)

Interest on lease liabilities(413)(311)

Interest on convertible notes(256)-

Interest on shareholder loans(25)-

(2,063)(971)

40 FINANCIALS
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



18




8.1 Information about major customers

For the year ended 31 March 2023 there was one customer who individually accounted for more than

10% of the Group's total sales (31 March 2022: nil customers). Sales to this customer totalled $3.61

million. The customer purchased sweeping services.

99.. TTaaxxaattiioonn

9.1 Income tax expense

The analysis of income tax expense is as follows:


WasteSweepingIndustrialCorporate / Total

collectionservicescleaningunallocated

NZ$000NZ$000NZ$000NZ$000NZ$000

Total revenue19,9958,2146,183-34,392

Operating EBITDA3,5441,5541,450(962)5,586

Finance income---1717

Finance costs---(2,063)(2,063)

Depreciation and amortisation(1,843)(611)(662)(938)(4,054)

Reverse acquisition - share based

payment

---(1,239)(1,239)

Reverse listing expenses---(403)(403)

Net profit/(loss) before taxation1,701943788(5,588)(2,156)

Income tax benefit---236236

Net profit/(loss) for the year1,701943788(5,352)(1,920)

2023

WasteSweepingIndustrialCorporate / Total

collectionservicescleaningunallocated

NZ$000NZ$000NZ$000NZ$000NZ$000

Total revenue10,0254,0024,750-18,777

Operating EBITDA1,5136561,009453,223

Finance costs---(971)(971)

Depreciation and amortisation(1,141)(480)(360)(413)(2,394)

Net profit/(loss) before taxation372176649(1,339)(142)

Income tax benefit---138138

Net profit/(loss) for the year372176649(1,201)(4)

2022

2023 2022

NZ$000NZ$000

Current tax on losses for the year213

Deferred tax movement in the current year(190)(151)

Adjustment for prior years(48)-

Total deferred tax benefit(238)(151)

Total income tax benefit recognised in the current year(236)(138)

WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



19

9.2 Reconciliation of income tax expense

The charge for the year can be reconciled to the loss before tax as follows:


9.3 Deferred tax



9.4 Imputation credits



2023 2022

NZ$000NZ$000

Profit/(loss) before income tax(2,156)(142)

Prima facie tax at 28% (2022: 28%)(604)(40)

Non-deductible expenses416(98)

Adjustment recognised in the current year in relation to prior years(48)-

Income tax (benefit)/expense(236)(138)

NZ$000NZ$000NZ$000

2023

Deferred tax assets/(liabilities) in relation to:

Provisions11 10

21

Accrued expenses149 28 177

Property, plant & equipment(1,109) (869) (1,978)

Right-of-use assets316 234 550

Lease liabilities(120) (203) (323)

Share options- 85 85

Tax losses429 953 1,382

(324) 238 (86)

Opening

balance

Recognised in

profit or loss

Closing

balance

NZ$000NZ$000NZ$000

2022

Deferred tax assets/(liabilities) in relation to:

Provisions11 - 11

Accrued expenses78 71 149

Property, plant & equipment(649) (460) (1,109)

Right-of-use assets175 141 316

Lease liabilities(90) (30) (120)

Tax losses- 429 429

(475) 151 (324)

Opening

balance

Recognised in

profit or loss

Closing

balance

2023 2022

NZ$000NZ$000

Imputation credits available for use in subsequent periods22890

WASTECO GROUP LTD: ANNUAL REPORT 2023 41
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



18




8.1 Information about major customers

For the year ended 31 March 2023 there was one customer who individually accounted for more than

10% of the Group's total sales (31 March 2022: nil customers). Sales to this customer totalled $3.61

million. The customer purchased sweeping services.

99.. TTaaxxaattiioonn

9.1 Income tax expense

The analysis of income tax expense is as follows:


WasteSweepingIndustrialCorporate / Total

collectionservicescleaningunallocated

NZ$000NZ$000NZ$000NZ$000NZ$000

Total revenue19,9958,2146,183-34,392

Operating EBITDA3,5441,5541,450(962)5,586

Finance income---1717

Finance costs---(2,063)(2,063)

Depreciation and amortisation(1,843)(611)(662)(938)(4,054)

Reverse acquisition - share based

payment

---(1,239)(1,239)

Reverse listing expenses---(403)(403)

Net profit/(loss) before taxation1,701943788(5,588)(2,156)

Income tax benefit---236236

Net profit/(loss) for the year1,701943788(5,352)(1,920)

2023

WasteSweepingIndustrialCorporate / Total

collectionservicescleaningunallocated

NZ$000NZ$000NZ$000NZ$000NZ$000

Total revenue10,0254,0024,750-18,777

Operating EBITDA1,5136561,009453,223

Finance costs---(971)(971)

Depreciation and amortisation(1,141)(480)(360)(413)(2,394)

Net profit/(loss) before taxation372176649(1,339)(142)

Income tax benefit---138138

Net profit/(loss) for the year372176649(1,201)(4)

2022

2023 2022

NZ$000NZ$000

Current tax on losses for the year213

Deferred tax movement in the current year(190)(151)

Adjustment for prior years(48)-

Total deferred tax benefit(238)(151)

Total income tax benefit recognised in the current year(236)(138)

WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



19

9.2 Reconciliation of income tax expense

The charge for the year can be reconciled to the loss before tax as follows:


9.3 Deferred tax



9.4 Imputation credits



2023 2022

NZ$000NZ$000

Profit/(loss) before income tax(2,156)(142)

Prima facie tax at 28% (2022: 28%)(604)(40)

Non-deductible expenses416(98)

Adjustment recognised in the current year in relation to prior years(48)-

Income tax (benefit)/expense(236)(138)

NZ$000NZ$000NZ$000

2023

Deferred tax assets/(liabilities) in relation to:

Provisions11 10

21

Accrued expenses149 28 177

Property, plant & equipment(1,109) (869) (1,978)

Right-of-use assets316 234 550

Lease liabilities(120) (203) (323)

Share options- 85 85

Tax losses429 953 1,382

(324) 238 (86)

Opening

balance

Recognised in

profit or loss

Closing

balance

NZ$000NZ$000NZ$000

2022

Deferred tax assets/(liabilities) in relation to:

Provisions11 - 11

Accrued expenses78 71 149

Property, plant & equipment(649) (460) (1,109)

Right-of-use assets175 141 316

Lease liabilities(90) (30) (120)

Tax losses- 429 429

(475) 151 (324)

Opening

balance

Recognised in

profit or loss

Closing

balance

2023 2022

NZ$000NZ$000

Imputation credits available for use in subsequent periods22890

42 FINANCIALS
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



20

1100.. EEaarrnniinnggss//((lloossss)) ppeerr sshhaarree



The loss and weighted average number of ordinary shares used in the calculation of earnings per share

are as follows:


The 21.3 million share options on issue at the reporting date were not considered to be dilutive due to

the Group’s net loss for the year (2022: none).

During the period from March 2022 to November 2022 the Group issued $4 million in mandatory

convertible notes (refer note 18.1). These notes are not considered to be dilutive as their share price for

conversion of $0.05 was higher than the average market price of the Company’s shares during the period

from their issue to their conversion, and also due to the Group’s loss.

The weighted average number of ordinary shares 2022 comparative has been adjusted for the exchange

ratio established in the reverse acquisition agreement.

1111.. CCaasshh aanndd ccaasshh eeqquuiivvaalleennttss


Cash and cash equivalents include cash at the bank. In 2022 cash and cash equivalents included $562,000

held on trust by the Group’s solicitor.

The Group has a $650,000 overdraft facility available. No funds had been drawn down from this facility

at the reporting date. The Group did not have an overdraft facility in 2022.

1122.. TTrraaddee rreecceeiivvaabblleess aanndd ootthheerr ccuurrrreenntt aasssseettss



2023 2022

Basic and diluted earnings/(loss) per share (NZ$)(0.0034)(0.0000)

(1,920)(4)

562,637504,000

Weighted average number of ordinary shares used in the calculation of

basic and basic loss per share ('000)

Loss from continuing operations (NZ$000)

2023 2022

NZ$000NZ$000

Cash at bank873136

Funds held in trust-562

873698

2023 2022

NZ$000NZ$000

Trade receivables from contracts with customers4,2223,307

Other receivables272122

GST receivable-29

Prepayments536233

Related party receivable (refer note 28)86

Total trade and other receivables5,0383,697

WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



21

The standard credit terms on sales are 30 days. No interest is charged on outstanding trade receivables.

Due to the short-term nature of current receivables, their carrying amount is considered to be the same

as their fair value.

12.1 Allowance for expected credit loss

A loss allowance of $34,455 was recognised at 31 March 2023 (2022: nil).

The Group’s receivables aging is as follows:




1133.. IInnvveennttoor riieess


$42,774 of inventory was included as an expense in the net loss for the current year (2022: $126,212).


NZ$000

CurrentLess than 30


30 to 60 days


More than 60


Total

2023

Trade receivables3,576453831444,256

Loss allowance---(34)(34)

2022

Trade receivables3,1644730663,307

Loss allowance-----

2023 2022

NZ$000NZ$000

Reconciliation for allowance for expected credit losses

Balance at the beginning of the year- -

Impairment losses recognised on receivables42 -


Amounts written off as uncollectable(8) -

Balance at the end of the year34-

2023 2022

NZ$000NZ$000

Finished goods23072

23072

WASTECO GROUP LTD: ANNUAL REPORT 2023 43
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



20

1100.. EEaarrnniinnggss//((l loos sss)) ppeerr sshhaarree



The loss and weighted average number of ordinary shares used in the calculation of earnings per share

are as follows:


The 21.3 million share options on issue at the reporting date were not considered to be dilutive due to

the Group’s net loss for the year (2022: none).

During the period from March 2022 to November 2022 the Group issued $4 million in mandatory

convertible notes (refer note 18.1). These notes are not considered to be dilutive as their share price for

conversion of $0.05 was higher than the average market price of the Company’s shares during the period

from their issue to their conversion, and also due to the Group’s loss.

The weighted average number of ordinary shares 2022 comparative has been adjusted for the exchange

ratio established in the reverse acquisition agreement.

1111.. CCaasshh aanndd ccaasshh eeqquuiivvaalleennttss


Cash and cash equivalents include cash at the bank. In 2022 cash and cash equivalents included $562,000

held on trust by the Group’s solicitor.

The Group has a $650,000 overdraft facility available. No funds had been drawn down from this facility

at the reporting date. The Group did not have an overdraft facility in 2022.

1122.. TTrraaddee rreecceeiivvaabblleess aanndd oot thheerr ccuurrrreenntt aasssseettss



2023 2022

Basic and diluted earnings/(loss) per share (NZ$)(0.0034)(0.0000)

(1,920)(4)

562,637504,000

Weighted average number of ordinary shares used in the calculation of

basic and basic loss per share ('000)

Loss from continuing operations (NZ$000)

2023 2022

NZ$000NZ$000

Cash at bank873136

Funds held in trust-562

873698

2023 2022

NZ$000NZ$000

Trade receivables from contracts with customers4,2223,307

Other receivables272122

GST receivable-29

Prepayments536233

Related party receivable (refer note 28)86

Total trade and other receivables5,0383,697

WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



21

The standard credit terms on sales are 30 days. No interest is charged on outstanding trade receivables.

Due to the short-term nature of current receivables, their carrying amount is considered to be the same

as their fair value.

12.1 Allowance for expected credit loss

A loss allowance of $34,455 was recognised at 31 March 2023 (2022: nil).

The Group’s receivables aging is as follows:




1133.. IInnvveennttoorriieess


$42,774 of inventory was included as an expense in the net loss for the current year (2022: $126,212).


NZ$000

CurrentLess than 30


30 to 60 days


More than 60


Total

2023

Trade receivables3,576453831444,256

Loss allowance---(34)(34)

2022

Trade receivables3,1644730663,307

Loss allowance-----

2023 2022

NZ$000NZ$000

Reconciliation for allowance for expected credit losses

Balance at the beginning of the year- -

Impairment losses recognised on receivables42 -


Amounts written off as uncollectable(8) -

Balance at the end of the year34-

2023 2022

NZ$000NZ$000

Finished goods23072

23072

44 FINANCIALS
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



22

1144.. PPrrooppeerrttyy,, ppllaanntt aanndd eeqquuiippmmeenntt



NZ$000NZ$000NZ$000NZ$000NZ$000

Cost:

At 1 April 20214,877 8,024 89 12 13,002

Additions

3,981 5,044 153 98 9,276

Business acquisitions

4,183 2,663 11 - 6,857

At 31 March 202213,041 15,731 253 110 29,135

Additions

4,378 3,976 108 67 8,529

Business acquisitions (note 25)

- 1,000 - - 1,000

Disposals

- - - - -

At 31 March 202317,41920,70736117738,664

Accumulated depreciation:

At 1 April 2021(876) (1,811) (61) (4)

(2,752)

Depreciation expense

(1,049) (731) (57) (14)

(1,851)

At 31 March 2022

(1,925) (2,542) (118) (18) (4,603)

Depreciation expense

(1,623) (1,463) (99) (23)

(3,208)

Disposals

- - - -

-

At 31 March 2023(3,548)(4,005)(217)(41)(7,811)

Carrying amount:

At 31 March 202313,871 16,702 144 136 30,853

At 31 March 202211,116 13,189 135 92 24,532

At 1 April 20214,001 6,213 28 8 10,250

Office

equipment

Plant and

equipment

Total Vehicles

Leasehold

improvements

WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



23

1155.. LLeeaasseess

The Group leases vehicles, and premises for waste sorting, vehicle storage and administration.

15.1 Right-of-use asset



The average lease term is 7.1 years (2022: 7.5 years). The average IBR rate is 7.33 % (2022: 6.30%).

15.2 Lease liabilities


VehiclesPremisesTotal

NZ$000NZ$000NZ$000

Cost:

At 1 April 2021- 3,120 3,120

Additions

- 2,784 2,784

Lease modifications

- 5 5

Business acquisition

518 - 518

At 31 March 2022518 5,909 6,427

Additions

1,008 179 1,187

Lease modifications

- 214 214

At 31 March 20231,526 6,302 7,828

Accumulated depreciation:

At 1 April 2021- (595) (595)

Depreciation expense

(136) (397)

(533)

At 31 March 2022

(136) (992) (1,128)

Depreciation expense

(347) (490)

(837)

At 31 March 2023(483) (1,482) (1,965)

At 31 March 20231,043 4,820 5,863

At 31 March 2022382 4,917 5,299

At 1 April 2021- 2,525 2,525

2023 2022

NZ$000NZ$000

Maturity analysis - contractual undiscounted cash flows

Up to one year1,123994

One to two years993858

Two to five years2,9422,197

More than five years3,7324,020

Total undiscounted lease liabilities at reporting date8,7908,069

Less: future finance charges(2,115)(2,070)

Total discounted lease liabilities at reporting date6,6755,999

WASTECO GROUP LTD: ANNUAL REPORT 2023 45
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



22

1144.. PPrrooppeerrttyy,, ppllaanntt aanndd eeqquuiippmmeenntt



NZ$000NZ$000NZ$000NZ$000NZ$000

Cost:

At 1 April 20214,877 8,024 89 12 13,002

Additions

3,981 5,044 153 98 9,276

Business acquisitions

4,183 2,663 11 - 6,857

At 31 March 202213,041 15,731 253 110 29,135

Additions

4,378 3,976 108 67 8,529

Business acquisitions (note 25)

- 1,000 - - 1,000

Disposals

- - - - -

At 31 March 202317,41920,70736117738,664

Accumulated depreciation:

At 1 April 2021(876) (1,811) (61) (4)

(2,752)

Depreciation expense

(1,049) (731) (57) (14)

(1,851)

At 31 March 2022

(1,925) (2,542) (118) (18) (4,603)

Depreciation expense

(1,623) (1,463) (99) (23)

(3,208)

Disposals

- - - -

-

At 31 March 2023(3,548)(4,005)(217)(41)(7,811)

Carrying amount:

At 31 March 202313,871 16,702 144 136 30,853

At 31 March 202211,116 13,189 135 92 24,532

At 1 April 20214,001 6,213 28 8 10,250

Office

equipment

Plant and

equipment

Total Vehicles

Leasehold

improvements

WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



23

1155.. LLeeaasseess

The Group leases vehicles, and premises for waste sorting, vehicle storage and administration.

15.1 Right-of-use asset



The average lease term is 7.1 years (2022: 7.5 years). The average IBR rate is 7.33 % (2022: 6.30%).

15.2 Lease liabilities


VehiclesPremisesTotal

NZ$000NZ$000NZ$000

Cost:

At 1 April 2021- 3,120 3,120

Additions

- 2,784 2,784

Lease modifications

- 5 5

Business acquisition

518 - 518

At 31 March 2022518 5,909 6,427

Additions

1,008 179 1,187

Lease modifications

- 214 214

At 31 March 20231,526 6,302 7,828

Accumulated depreciation:

At 1 April 2021- (595) (595)

Depreciation expense

(136) (397)

(533)

At 31 March 2022

(136) (992) (1,128)

Depreciation expense

(347) (490)

(837)

At 31 March 2023(483) (1,482) (1,965)

At 31 March 20231,043 4,820 5,863

At 31 March 2022382 4,917 5,299

At 1 April 2021- 2,525 2,525

2023 2022

NZ$000NZ$000

Maturity analysis - contractual undiscounted cash flows

Up to one year1,123994

One to two years993858

Two to five years2,9422,197

More than five years3,7324,020

Total undiscounted lease liabilities at reporting date8,7908,069

Less: future finance charges(2,115)(2,070)

Total discounted lease liabilities at reporting date6,6755,999

46 FINANCIALS
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



24


1166.. IInnttaannggiibbllee aasssseettss



The goodwill relates to expected synergies, and the capability and expertise developed within the

acquired business.

16.1 Impairment testing for cash-generating units containing goodwill

The Directors have assessed the goodwill for impairment as at the reporting date and have concluded

that no impairment has occurred. All goodwill is currently allocated to the Waste division cash

generating unit.


Lease liabilities included in the Consolidated Statement of Financial Position at reporting date

Current711644

Non-current5,9645,355

6,6755,999

Goodwill Computer

software

Total

NZ$000NZ$000NZ$000

Cost:

At 1 April 2021- 77 77

Additions (note 25.2)

137 - 137

At 31 March 2022137 77 214

Additions

- 19 19

At 31 March 2023137 96 233

Accumulated amortisation/impairment:

At 1 April 2021

- (57) (57)

Amortisation expense

- (10) (10)

At 31 March 2022

- (67) (67)

Amortisation expense

- (9) (9)

At 31 March 2023

- (76) (76)

Carrying Amount:

At 31 March 2023137 20 157

At 31 March 2022137 10 147

At 1 April 2021- 20 20

WASTECO GROUP LTD: ANNUAL REPORT 2023 47
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



25

1177.. TTrraaddee aanndd ootthheerr ppaayyaabblleess


The carrying amount of trade and other payables are assumed to be the same as fair value due to the

short-term nature of these amounts.

1188.. BBoorrrroowwiinnggss

All borrowings are denominated in NZD.

18.1 Convertible notes

During the year the Group issued a further $3 million unsecured mandatory convertible notes (2022: $1

million). The proceeds from the notes were used for working capital and to assist in completing business

acquisitions. All convertible notes were converted to ordinary shares on completion of the reverse

acquisition (refer note 2.3). Interest of 8% per annum was payable on the convertible notes up until the

date of conversion.


2023 2022

NZ$000NZ$000

Trade payables3,5353,391

Accrued expenses1,1521,853

PAYE payable401283

GST payable115-

5,2035,527

Note2023 2022

NZ$000NZ$000

Unsecured borrowings at amortised cost

Convertible notes18.1-962

Shareholder loans18.2-173

Secured borrowings at amortised cost

Asset finance18.321,17615,578

Total borrowings

21,17616,713

Current5,6574,906

Non-current15,51911,807

21,17616,713

2023 2022

NZ$000NZ$000

Balance at 1 April 962 -

Value of convertible notes issued3,000 1,000

Equity component recognised in convertible notes reserve(39) (38)

Interest expense256 3

Interest paid(179) (3)

Converted to ordinary share capital(4,000) -

Balance at 31 March- 962

48 FINANCIALS
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



26

The interest expensed for the year is calculated by applying an effective annual interest rate of 13% to

the liability component due.

18.2 Shareholder loans


The shareholder loans were unsecured and repayable on demand. Interest was payable on the

outstanding balance at 10% per annum.


18.3 Asset finance


Asset finance is used to fund the purchase of assets and business acquisitions. The Group borrows from a

range of lenders. Each finance drawdown is secured by the respective assets acquired through the

transaction and by guarantees from James Redmayne and Carl Storm (refer note 28). The terms of the

asset finance arrangements are between 2 to 5 years.

In April 2022 the Group entered into a first ranking General Security Agreement (GSA) for $750,000

available funding and a $5,250,000 second ranking financing agreement with Kiwi Asset Finance Limited.

The GSA is secured by all present and after acquired personal property, together with all proceeds arising

from that property, including goods, money, accounts receivable, chattel paper, intangibles, negotiable

instruments, documents of title and investment securities.

The financing agreement with Kiwi Asset Finance Limited was used to fund the settlement for the Total

Waste business which was acquired on 31 March 2022. The finance agreement was secured by the GSA

and by guarantees from each company in the Group and guarantees from James Redmayne and Carl

Storm, and is to be repaid over 5 years.

As at 30 September 2022 the Group did not meet the loan covenant relating to the debt cover ratio

under the financing agreement with Kiwi Asset Finance Limited, which requires earnings for each

quarterly financial period to not to be less than 1.5 times funding costs for that 3-month period. Kiwi

Asset Finance Limited waived its rights to take any action in respect of this breach and agreed with the

Group that it was preferable to measure this ratio on an annual basis to cater for seasonal variances in

earnings. There were no resulting changes to the funding facility apart from this amendment to the

covenant. The Group has complied with all other loan covenants during the year and was compliant with

this debt cover ratio at 31 March 2023.

The weighted average interest rates on asset finance loans during the period was 6.0% (2022: 6.1

%).


2023 2022

NZ$000NZ$000

Balance at 1 April 173 -

Proceeds from loans- 173

Repayment of loans(173) -

Balance at 31 March- 173

2023 2022

NZ$000NZ$000

Balance at 1 April 15,578 7,060

Proceeds from asset finance10,953 11,048

Vendor loan on business acquisition- 150

Repayment of loans(5,355) (2,680)

Balance at 31 March21,176 15,578

WASTECO GROUP LTD: ANNUAL REPORT 2023 49
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



26

The interest expensed for the year is calculated by applying an effective annual interest rate of 13% to

the liability component due.

18.2 Shareholder loans


The shareholder loans were unsecured and repayable on demand. Interest was payable on the

outstanding balance at 10% per annum.


18.3 Asset finance


Asset finance is used to fund the purchase of assets and business acquisitions. The Group borrows from a

range of lenders. Each finance drawdown is secured by the respective assets acquired through the

transaction and by guarantees from James Redmayne and Carl Storm (refer note 28). The terms of the

asset finance arrangements are between 2 to 5 years.

In April 2022 the Group entered into a first ranking General Security Agreement (GSA) for $750,000

available funding and a $5,250,000 second ranking financing agreement with Kiwi Asset Finance Limited.

The GSA is secured by all present and after acquired personal property, together with all proceeds arising

from that property, including goods, money, accounts receivable, chattel paper, intangibles, negotiable

instruments, documents of title and investment securities.

The financing agreement with Kiwi Asset Finance Limited was used to fund the settlement for the Total

Waste business which was acquired on 31 March 2022. The finance agreement was secured by the GSA

and by guarantees from each company in the Group and guarantees from James Redmayne and Carl

Storm, and is to be repaid over 5 years.

As at 30 September 2022 the Group did not meet the loan covenant relating to the debt cover ratio

under the financing agreement with Kiwi Asset Finance Limited, which requires earnings for each

quarterly financial period to not to be less than 1.5 times funding costs for that 3-month period. Kiwi

Asset Finance Limited waived its rights to take any action in respect of this breach and agreed with the

Group that it was preferable to measure this ratio on an annual basis to cater for seasonal variances in

earnings. There were no resulting changes to the funding facility apart from this amendment to the

covenant. The Group has complied with all other loan covenants during the year and was compliant with

this debt cover ratio at 31 March 2023.

The weighted average interest rates on asset finance loans during the period was 6.0% (2022: 6.1

%).


2023 2022

NZ$000NZ$000

Balance at 1 April 173 -

Proceeds from loans- 173

Repayment of loans(173) -

Balance at 31 March- 173

2023 2022

NZ$000NZ$000

Balance at 1 April 15,578 7,060

Proceeds from asset finance10,953 11,048

Vendor loan on business acquisition- 150

Repayment of loans(5,355) (2,680)

Balance at 31 March21,176 15,578

WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



27

1199.. SShhaarree ccaappiittaall

The following table shows the movement in share capital for the consolidated group.



The table below details the movement in ordinary shares issued by the Group’s legal parent, WasteCo

Group Limited.



On 5 May 2022 the Company undertook a 2.5 to 1 share consolidation.

On 5 December 2022, immediately prior to the reverse acquisition, 10,636,073 fully paid ordinary shares

were issued at $0.05 per share to Mounterowen Limited to satisfy $531,803 of debt payable.

On 5 December 2022 504 million fully paid ordinary shares were issued to the shareholders of WasteCo

Holdings as consideration for the reverse acquisition (notes 2.3 and 24).

On 5 December 2022 80 million fully paid ordinary shares were issued at $0.05 per share to holders of

$4 million convertible notes previously issued by WasteCo Holdings, which converted to fully paid

ordinary shares upon WasteCo shareholders’ approval of the reverse acquisition.

All ordinary shares on issue are fully paid, have equal voting rights, and share equally in dividends and

any surplus on winding up.



2023 2022

NZ$000NZ$000

At 1 April641 641

Shares issued on reverse acquisition (refer notes 2.3 and 24)1,153 -

Shares issued for convertible notes4,077 -

Shares issued during the year4,000 -

At 31 March9,871 641

2023 2022

'000'000

Ordinary shares as at 1 April33,410 32,690

2.5 for 1 share consolidation(20,046) -

Ordinary shares issued pre reverse acquisition10,636 720

Shares issued on reverse acquisition (refer notes 2.3 and 24)504,000 -

Shares issued for convertible notes80,000 -

Ordinary shares issued post reverse acquisition80,000 -

Ordinary shares as at 31 March688,000 33,410

50 FINANCIALS
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



28

2200.. SShhaarree bbaasseedd ppaayymmeennttss rreesseerrvvee


2211.. SShhaarree ooppttiioonnss

The Company has a share option scheme for directors and selected employees of the Company and its

subsidiaries to purchase ordinary shares in the Company.

Each share options converts into one ordinary share of the Company on exercise. No amounts are paid or

payable by the recipient on receipt of the option. The options carry no rights to dividends and no voting

rights. Options may be exercised at any time from the date of vesting to the date of their expiry.


The Options vest in 3 equal tranches: one third on 23 December 2022, one third on 23 December 2023

and the final third on 23 December 2024. Each tranche can be exercised at any time within 3 years from

the vesting date.

At 31 March 2023, 14.2 million of the share options granted had not yet vested to option holders.

The weighted average contractual life of the share options outstanding at 31 March 2023 was 3.8 years.


2023 2022

NZ$000NZ$000

Balance as at 1 April

Share options issued (note 21)326 -

Share options forfeited (note 21)(22) -

Balance as at 31 March304 -

2023 2022

NZ$000NZ$000

Share based payments are included in:

Directors' remuneration (as directors of the Company)44 -

Employees' remuneration (note 7.1)260 -

304 -

Balance as at 1 April

----

Granted during the year22,800,000$0.05--

Forfeited during the year(1,500,000)$0.05--

Balance as at 31 March21,300,000$0.05--

Exercisable at 31 March

7,100,000$0.05--

2023 2022

Number of

Options

Weighted

average

exercise price

Number of

Options

Weighted

average

exercise price

WASTECO GROUP LTD: ANNUAL REPORT 2023 51
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



28

2200.. SShhaarree bbaasseedd ppaayymmeennttss rreesseerrvvee


2211.. SShhaarree ooppttiioonnss

The Company has a share option scheme for directors and selected employees of the Company and its

subsidiaries to purchase ordinary shares in the Company.

Each share options converts into one ordinary share of the Company on exercise. No amounts are paid or

payable by the recipient on receipt of the option. The options carry no rights to dividends and no voting

rights. Options may be exercised at any time from the date of vesting to the date of their expiry.


The Options vest in 3 equal tranches: one third on 23 December 2022, one third on 23 December 2023

and the final third on 23 December 2024. Each tranche can be exercised at any time within 3 years from

the vesting date.

At 31 March 2023, 14.2 million of the share options granted had not yet vested to option holders.

The weighted average contractual life of the share options outstanding at 31 March 2023 was 3.8 years.


2023 2022

NZ$000NZ$000

Balance as at 1 April

Share options issued (note 21)326 -

Share options forfeited (note 21)(22) -

Balance as at 31 March304 -

2023 2022

NZ$000NZ$000

Share based payments are included in:

Directors' remuneration (as directors of the Company)44 -

Employees' remuneration (note 7.1)260 -

304 -

Balance as at 1 April

----

Granted during the year22,800,000$0.05--

Forfeited during the year(1,500,000)$0.05--

Balance as at 31 March21,300,000$0.05--

Exercisable at 31 March7,100,000$0.05--

2023 2022

Number of

Options

Weighted

average

exercise price

Number of

Options

Weighted

average

exercise price

WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



29

21.1 Fair value of share options granted in the year

The fair values of the share options granted during the period are:


Options were valued using the Black-Scholes option pricing model. The key inputs used in valuing the

options are detailed in the table below.


The expected volatility in the measurement of fair value at grant date has been based on the volatility of

the Company’s share price from 5 December 2022 up to 17 May 2023 and for overseas comparable

companies, as a proxy of the Company’s future volatility.

The Black-Scholes formula assumes that the options being valued can be sold on a secondary market.

The terms of the options forbid their trading. Accordingly, a 20% discount to the values derived from the

Black-Scholes formula was applied to reflect the restrictive terms.


2222.. SSuubbssiiddiiaarriieess


* WasteCo Holdings Limited was the holding company for the group prior to the reverse acquisition

(refer note 2.3).

All subsidiaries are domiciled in New Zealand and have a balance date of 31 March.


Vesting

date

Fair value

per option

$

Tranche 123 Dec 220.0309

Tranche 223 Dec 230.0334

Tranche 323 Dec 240.0354

Options granted

Grant date23 Dec 22

Options granted22,800,000

Grant date one month VWAP$0.078

Exercise price$0.05

Expected volatility0.4-0.5

Option life (from vesting date)36 months

Dividend yield0%

Average risk free interest rate4.19%

Name of subsidiaryPrincipal activity

2023 2022

WasteCo Holdings NZ LimitedHolding company100%n/a*

WasteCo NZ LimitedWaste collection, recycling & disposal100%100%

WasteCo NZ (Southern) Limited Waste collection, recycling & disposal100%100%

WasteCo Port Services NZ Limited Industrial cleaning100%100%

WasteCo Finance NZ LimitedCredit card merchant account holder for group100%100%

Sortco NZ LimitedWaste sorting and recycling

100%100%

Safeco Training NZ LimitedSafety management training

100%100%

Ownership interest

held by Group

52 FINANCIALS
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



30

2233.. FFiinnaanncciiaall iinnssttrruummeennttss

23.1 Classes and categories of financial instruments

The Group has entered into a number of non-derivative financial instruments all of which are classified

as financial assets and liabilities at amortised cost. The carrying values of these items approximate their

fair value and represent the maximum exposures for each type of financial instrument. They are listed as

follows:



The Group does not have any derivative financial instruments (2022: nil).

23.2 Financial risk management objectives

The Group’s activities expose it to a variety of financial risks: market risk (including interest rate risk and

currency risk), credit and liquidity risk. The Group’s overall risk management programme focuses on the

unpredictability of financial markets and seeks to minimise potential adverse effects on its financial

performance.

Risk management is carried out under policies approved by the Board of Directors.

23.3 Market risk

Market risk is the risk that changes in market prices, such as foreign exchange rates and interest rates

will affect the Group’s income or the value of its holdings of financial instruments. The objective of

market risk management is to manage and control the market risk exposures within acceptable

parameters, while optimising the return on risk.

The Group’s main market risk relates to interest rate risk. Interest rate risk is the risk that the fair value

of the financial instrument or cash flows associated with the instrument will fluctuate due to changes in

market interest rates.

The Group’s interest rate risk exposure primarily relates to its exposure to variable interest rates on

borrowings. The Group has mitigated this risk exposure through entering into borrowings with fixed

interest rates. With the exception of the two flexible lending facilities below, the convertible notes (note

18.1), shareholder loans (note 18.2) and asset finance (note 18.3), all have interest rates that are fixed

for the life of the loan.

2023 2022

NoteNZ$000NZ$000

Financial assets at amortised cost

Cash and cash equivalents11873698

Trade and other receivables124,5023,435

Total financial assets5,3754,133

Financial liabilities at amortised cost

Trade and other payables175,0885,527

Payable for acquisition of business251153,562

Borrowings - current185,6574,906

Borrowings - non current1815,51911,807

Lease liabilities - current15.2711644

Lease liabilities - non current15.25,9645,355

Total financial liabilities33,05431,801

WASTECO GROUP LTD: ANNUAL REPORT 2023 53
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



31

The Group has a flexible lending facility of $2,600,000 (2022: $750,000) which has a variable interest

rate. The interest rate on this facility at the reporting date was 8.35% per annum. The Group had

$2,555,522 in borrowings under this facility at the reporting date (2022: none).

The Group also has a fixed term lending facility of $700,270 (2022: none) which has a variable interest

rate. The interest rate on this facility at the reporting date was 9.19% per annum. The Group had

$700,270 in borrowings under this facility at the reporting date (2022: none).

An increase in this variable rate of 1%, taking into account scheduled repayments, would increase the

annual interest expense on the borrowings from these facilities by $92,000. A decrease in this variable

rate of 1%, taking into account scheduled repayments, would decrease the annual interest expense on

the borrowings from these facilities by $87,000.

23.4 Credit risk

Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument

fails to meet its contractual obligations and arises from cash and cash equivalents, and the Group’s

receivables from customers. The Group’s maximum credit risk is represented by the carrying value of

these financial assets.

The credit risk associated with cash transactions and deposits is managed through the Group’s policies

that limit the use of counterparties to high credit quality financial institutions.

The Group minimises concentrations of credit risk in receivables by undertaking transactions with a large

number of customers. In addition, receivable balances are monitored on an ongoing basis with the

objective that the Group’s exposure to expected credit losses is minimised.

23.5 Liquidity risk

Liquidity risk is the risk that the Group will not be able to meet its financial obligations as and when the

fall due. The Group’s liquidity risk management includes maintaining sufficient cash reserves to meet

future commitments.

The following table provides a maturity analysis of the Group’s remaining contractual cash flows relating

to non-derivative financial liabilities. Contractual cash flows include contractual undiscounted principal

and interest payments.



NZ$000NZ$000NZ$000NZ$000NZ$000NZ$000NZ$000

As at 31 March 2023

Trade and other payables5,203 5,203 5,136 13 54 - -

Payable for acquisition of business115 115 115 - - - -

Borrowings21,176 24,233 3,556 3,376 6,636 10,604 61

Lease liability6,675 8,790 594 529 993 2,942 3,732

33,169 38,341 9,401 3,918 7,683 13,546 3,793

As at 31 March 2022

Trade and other payables5,527 5,527 5,491 36 - - -

Income tax payable37 37 37 - - - -

Payable for acquisition of business3,562 3,562 3,562 - - - -

Borrowings16,713 21,452 2,735 2,546 5,012 11,146 13

Lease liability5,999 8,069 504 490 858 2,197 4,020

31,838 38,647 12,329 3,072 5,870 13,343 4,033

Carrying

amount

Contractual

cash flows

Payable

0-6 months

Payable

6-12 months

Payable

1-2 years

Payable

5+ years

Payable

2-5 years

54 FINANCIALS
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



32

23.6 Capital risk management

The Group manages its capital to ensure that entities in the Group will be able to continue as a going

concern while maximising the return to shareholders through the optimisation of debt and equity.

The capital structure of the Group consists of equity, comprising issued capital and retained earnings,

and debt. The Group reviews the capital structure on a regular basis including assessing equity ratios and

ensuring compliance with bank covenants, to ensure that entities in the Group are able to continue as

going concerns and to fund its acquisition strategy.

2244.. RReevveerrssee aaccqquuiissiittiioonn –– sshhaarree--bbaasseedd ppaayymmeenntt

Refer to note 2.3 and note 4.1 for details of the reverse acquisition.

The financial impact of the reverse acquisition of WasteCo Group Limited (formerly Goodwood Capital

Limited) and the resulting share-based payment, is summarised as follows:


The fair value of the consideration of $1.15 million is calculated with reference to the total shareholding

percentage of pre-reverse acquisition shareholders, with the ordinary shares at the date of the reverse

acquisition being valued at $0.05 per share. The difference between the consideration and net liabilities

acquired is accounted for as a share-based payment of $1,239,000 and included in the net loss for the

year.

2255.. BBuussiinneessss aaccqquuiissiittiioonn

25.1 Central Suction Cleaners Limited

On 1 March 2023 WasteCo NZ Limited acquired the business and assets of Central Suction Cleaners

Limited (‘CSC’).

The acquisition enables WasteCo to offer its range of sweeping and waste management

solutions in the Nelson and Tasman region, leveraging CSC’s extensive experience.

The provisional amounts recognised in respect of the identifiable assets acquired and liabilities assumed

are as set out in the table below.

NZ$000

The share based payment on acquisition was:

Consideration1,153

Fair value of net liabilities acquired (see below)86

Share based payment on acquisition of WasteCo Group Limited1,239

Net assets / liabilities acquired:

Cash and cash equivalents2

Trade receivables and other current assets41

Trade and other payables(13)

Borrowings(116)

Net liabilities acquired

(86)

WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



33


$900,000 of the total consideration was paid on 1 March 2023. The remaining $100,000 plus gst was

payable at the reporting date and paid to the vendor on 3 April 2023.

The CSC business contributed $101,078 revenue and $16,468 to the Group’s profit for the period

between the date of acquisition and the reporting date. If the CSC business had been acquired on 1 April

2022 the Group estimates its revenue and net profit before tax for the 2023 year would have increased

by $1.1 million and $371,000 respectively.

The initial accounting for the acquisition has only been provisionally determined at the date of approval

of these consolidated financial statements. The acquisition accounting is expected to be finalised by the

next reporting date and this may impact the fair value of net assets acquired. Potentially of most impact

is the recognition of identifiable intangible assets.

25.2 Confirmation of accounting for prior period acquisitions

In 2022 the Group made a number of acquisitions as detailed in the table below.



NZ$000

Net assets acquired at fair value (provisional):

Property, plant and equipment1,000

Net assets acquired1,000

Satisfied by:

Cash1,000

Total consideration1,000

Nature of business acquiredwaste

management

waste

management

sweeping and

cleaning

waste

management

Acquisition date

21/6/202130/7/202130/9/202131/3/2022

NZ$000NZ$000NZ$000NZ$000NZ$000

Net assets / (liabilities) acquired:

Property, plant and equipment

6,857 1,150 1,000 1,094 3,613

Right-of-use assets

518 - - 518 -

Trade and other payables

(102) - - (102) -

Lease liabilities

(518) - - (518) -

Net assets acquired

6,755 1,150 1,000 992 3,613

Goodwill

137 - - - 137

Gain on acquisition

(349) - - (349) -

Total consideration

6,543 1,150 1,000 643 3,750

Satisfied by:

Cash

6,393 1,000 1,000 643 3,750

Loan

150 150 - - -

Total consideration transferred

6,543 1,150 1,000 643 3,750

TotalDuffy's Skips

Otago MetalCity Care

Total Waste

Solutions

WASTECO GROUP LTD: ANNUAL REPORT 2023 55
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



32

23.6 Capital risk management

The Group manages its capital to ensure that entities in the Group will be able to continue as a going

concern while maximising the return to shareholders through the optimisation of debt and equity.

The capital structure of the Group consists of equity, comprising issued capital and retained earnings,

and debt. The Group reviews the capital structure on a regular basis including assessing equity ratios and

ensuring compliance with bank covenants, to ensure that entities in the Group are able to continue as

going concerns and to fund its acquisition strategy.

2244.. RReevveerrssee aaccqquuiissiittiioonn –– sshhaarree--bbaasseedd ppaayymmeenntt

Refer to note 2.3 and note 4.1 for details of the reverse acquisition.

The financial impact of the reverse acquisition of WasteCo Group Limited (formerly Goodwood Capital

Limited) and the resulting share-based payment, is summarised as follows:


The fair value of the consideration of $1.15 million is calculated with reference to the total shareholding

percentage of pre-reverse acquisition shareholders, with the ordinary shares at the date of the reverse

acquisition being valued at $0.05 per share. The difference between the consideration and net liabilities

acquired is accounted for as a share-based payment of $1,239,000 and included in the net loss for the

year.

2255.. BBuussiinneessss aaccqquuiissiittiioonn

25.1 Central Suction Cleaners Limited

On 1 March 2023 WasteCo NZ Limited acquired the business and assets of Central Suction Cleaners

Limited (‘CSC’).

The acquisition enables WasteCo to offer its range of sweeping and waste management

solutions in the Nelson and Tasman region, leveraging CSC’s extensive experience.

The provisional amounts recognised in respect of the identifiable assets acquired and liabilities assumed

are as set out in the table below.

NZ$000

The share based payment on acquisition was:

Consideration1,153

Fair value of net liabilities acquired (see below)86

Share based payment on acquisition of WasteCo Group Limited1,239

Net assets / liabilities acquired:

Cash and cash equivalents2

Trade receivables and other current assets41

Trade and other payables(13)

Borrowings(116)

Net liabilities acquired

(86)

WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



33


$900,000 of the total consideration was paid on 1 March 2023. The remaining $100,000 plus gst was

payable at the reporting date and paid to the vendor on 3 April 2023.

The CSC business contributed $101,078 revenue and $16,468 to the Group’s profit for the period

between the date of acquisition and the reporting date. If the CSC business had been acquired on 1 April

2022 the Group estimates its revenue and net profit before tax for the 2023 year would have increased

by $1.1 million and $371,000 respectively.

The initial accounting for the acquisition has only been provisionally determined at the date of approval

of these consolidated financial statements. The acquisition accounting is expected to be finalised by the

next reporting date and this may impact the fair value of net assets acquired. Potentially of most impact

is the recognition of identifiable intangible assets.

25.2 Confirmation of accounting for prior period acquisitions

In 2022 the Group made a number of acquisitions as detailed in the table below.



NZ$000

Net assets acquired at fair value (provisional):

Property, plant and equipment1,000

Net assets acquired1,000

Satisfied by:

Cash1,000

Total consideration1,000

Nature of business acquiredwaste

management

waste

management

sweeping and

cleaning

waste

management

Acquisition date21/6/202130/7/202130/9/202131/3/2022

NZ$000NZ$000NZ$000NZ$000NZ$000

Net assets / (liabilities) acquired:

Property, plant and equipment

6,857 1,150 1,000 1,094 3,613

Right-of-use assets

518 - - 518 -

Trade and other payables

(102) - - (102) -

Lease liabilities

(518) - - (518) -

Net assets acquired

6,755 1,150 1,000 992 3,613

Goodwill

137 - - - 137

Gain on acquisition

(349) - - (349) -

Total consideration

6,543 1,150 1,000 643 3,750

Satisfied by:

Cash

6,393 1,000 1,000 643 3,750

Loan

150 150 - - -

Total consideration transferred

6,543 1,150 1,000 643 3,750

TotalDuffy's Skips

Otago MetalCity Care

Total Waste

Solutions

56 FINANCIALS
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



34

At the 2022 reporting date the above fair value allocation of assets and liabilities acquired was

provisional. The accounting for these acquisitions has now been finalised. In doing so, there were no

adjustments to the initial assessment of the fair value of net assets acquired, as detailed above.

The Group acquired control of the Total Waste Solutions business on 31 March 2022. Settlement took

place on 14 April 2022. $187,500 was paid to the vendor prior to 31 March 2022. The remaining $3.56

million payable at 31 March 2022 for the acquisition of the Total Waste Solutions business was disclosed

as a payable for acquisition of business in the Consolidated Statement of Financial Position.

2266.. RReeccoonncciilliiaattiioonn ooff pprrooffiitt oorr lloossss aafftteerr ttaaxxaattiioonn wwiitthh ccaasshh ffllooww ffrroomm ooppeerraattiinngg

aaccttiivviittiieess




2023 2022

NZ$000NZ$000

Net loss after taxation(1,920)(4)

Adjustments for:

Depreciation on property, plant and equipment3,2081,851

Depreciation on right of use assets837533

Amortisation of intangible assets910

Share based payments304-

Movement in deferred tax(238)(152)

Interest paid on borrowings1,651660

Interest paid on lease liabilities413311

Reverse acquisition share based payment1,239-

Gain on business acquisition-(349)

Movements in working capital

(Increase) / decrease in trade and other receivables(1,341)(1,984)

Increase / (decrease) in trade payables and other liabilities(324)2,918

(Increase) / decrease in inventory(158)124

Increase / (decrease) in tax liabilities(137)(72)

Movement in trade and other payables due to business acquisition15(102)

Movement in working capital on reverse acquisition29-

Net cash received from operating activities

3,5873,744

WASTECO GROUP LTD: ANNUAL REPORT 2023 57
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



34

At the 2022 reporting date the above fair value allocation of assets and liabilities acquired was

provisional. The accounting for these acquisitions has now been finalised. In doing so, there were no

adjustments to the initial assessment of the fair value of net assets acquired, as detailed above.

The Group acquired control of the Total Waste Solutions business on 31 March 2022. Settlement took

place on 14 April 2022. $187,500 was paid to the vendor prior to 31 March 2022. The remaining $3.56

million payable at 31 March 2022 for the acquisition of the Total Waste Solutions business was disclosed

as a payable for acquisition of business in the Consolidated Statement of Financial Position.

2266.. RReeccoonncciilliiaattiioonn oof f pprroof fiitt oor r lloos sss aafftteerr ttaaxxaattiioonn wwiitthh ccaasshh ffl looww ffrroomm ooppeerraattiinngg

aaccttiivviittiieess




2023 2022

NZ$000NZ$000

Net loss after taxation(1,920)(4)

Adjustments for:

Depreciation on property, plant and equipment3,2081,851

Depreciation on right of use assets837533

Amortisation of intangible assets910

Share based payments304-

Movement in deferred tax(238)(152)

Interest paid on borrowings1,651660

Interest paid on lease liabilities413311

Reverse acquisition share based payment1,239-

Gain on business acquisition-(349)

Movements in working capital

(Increase) / decrease in trade and other receivables(1,341)(1,984)

Increase / (decrease) in trade payables and other liabilities(324)2,918

(Increase) / decrease in inventory(158)124

Increase / (decrease) in tax liabilities(137)(72)

Movement in trade and other payables due to business acquisition15(102)

Movement in working capital on reverse acquisition29-

Net cash received from operating activities

3,5873,744

WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



35

2277.. RReeccoonncciilliiaattiioonn ooff lliiaabbiilliittiieess aarriissiinngg ffrroomm ffiinnaanncciinngg aaccttiivviittiieess





2023 2022

NZ$000NZ$000

Borrowings:

At 1 April

16,7137,060

Cash:

Proceeds from borrowings13,95312,221

Payment of principal on borrowings(5,644)(2,680)

Interest paid on convertible notes(179)(3)

Non-cash:

Equity component recognised in convertible notes reserve

(39)(38)

Interest accrued on convertible notes

2563

Convertible notes converted to ordinary share capital

(4,000)-

Borrowings acquired on reverse acquisition (note 24)

116-

Vendor loan on business acquisition

-150

At 31 March21,17616,713

2023 2022

NZ$000NZ$000

Lease liabilities:

At 1 April

5,9992,817

Cash:

Payment of lease liabilities principal(725)(425)

Interest paid on lease liabilities(413)(311)

Lease incentive received-300

Non-cash:

Lease liabilities recognised1,1872,784

Lease modifications2145

Lease liabilities from business acquisitions-518

Interest on lease liabilities413311

At 31 March

6,6755,999

58 FINANCIALS
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



36

2288.. RReellaatteedd ppaarrttiieess

28.1 Directors

The directors of the Company are Shane Edmond, Carl Storm, James Redmayne, Roger Gower and Angus

Cooper.

28.2 Key Management Personnel Compensation

Key management personnel are the Directors, the Chief Executive Officer and members of the executive

leadership team.

Key management personnel compensation is set out below.


$20,000 of directors fees were paid in advance to directors at 31 March 2023 (2022: nil).

28.3 Personal guarantees of asset finance

All asset finance loans are secured by personal guarantees from Carl Storm and James Redmayne (refer

note 18.3).

28.4 Shareholder loans

During the year ended 31 March 2022 the Group received $173,298 of loans from James and Samantha

Redmayne (refer note 18.2). The outstanding balance was fully repaid during the 2023 reporting period.

Interest of $25,367 accrued on this balance during the reporting period (2022: $1,471).

28.5 Reverse acquisition

Prior to the reverse acquisition described in note 2.3:

- the James & Sam Family Trust, of which James Redmayne and his wife Samantha are trustees and

beneficiaries, held 3,285 shares in WasteCo Holdings, the then parent company of the Group. As

part of the reverse acquisition, the James & Sam Family Trust received 165,564,000 shares in

WasteCo in exchange for its shareholding in WasteCo Holdings;

- the Storm Commercial Trust, of which Carl Storm his wife and Dawn are trustees and beneficiaries,

held 3,135 shares in WasteCo Holdings. As part of the reverse acquisition, the Storm Commercial

Trust received 158,004,000 shares in WasteCo in exchange for its shareholding in WasteCo Holdings;

- Shane Edmond, Ashvegas Limited (a company related to Shane Edmonds) and Belinda Edmonds

(Shane Edmond’s wife) held 900, 400 and 200 shares in WasteCo Holdings respectively. As part of

the reverse acquisition, they respectively received 45,360,000, 20,560 000 and 10,080,000 shares in

WasteCo in exchange for their shareholding in WasteCo Holdings;

- Shane Edmond invested $250,000 in the mandatory convertible notes issued by the Group. These

converted into 5,000,000 shares in the Company immediately following the reverse acquisition.

Interest of $2,907 was paid on these notes prior to their conversion.

28.6 Bastre Properties NZ Limited

Bastre Properties NZ Limited (‘Bastre Properties ‘) owns premises that are leased by the Group. The

initial term of the lease is five years from November 2020 and the Group hold rights of renewal for two

further five-year terms. $119,596 was paid in rent to Bastre Properties in the reporting period ended

2023 2022

NZ$000NZ$000

Short term benefits - WasteCo directors11263

Share based payments - WasteCo directors44-

Short-term benefits - key management employees642199

Share based payments - key management employees22-

820262

WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



37

31 March 2023 (2022: $100,000). As at 31 March 2023 the Group recognised $1,051,968 of lease

liabilities due to Bastre Properties (2022: $1,002,000).

44% of the share capital of Bastre Properties is owned by the Storm Commercial Trust, of which Carl and

Dawn Storm are trustees and 44% by the James & Sam Family Trust, of which James and Samantha

Redmayne are trustees.

On 28 November 2020 the Group sold Bastre Properties, which was a wholly owned subsidiary, to

entities associated with Carl Storm, James Redmayne and others for $6,000. This balance was included in

receivables at 31 March 2022.

28.7 Other transactions with related parties

Carl Storm’s wife, Dawn Storm, received total remuneration of $62,417 as an employee of the Group

(2022: $48,833).

During the year ended 31 March 2023 the Group provided $5,000 of sponsorship to Carl Storm’s motor

racing team (2022: $5,000).

James Redmayne’s wife, Samantha Redmayne, received remuneration of $92,013 as an employee of the

Group (2022: $7,333).

At 31 March 2023 the Group held a receivable of $7,789 owed by James Redmayne (2022: nil).

In 2022, Variable Financial Solutions (NZ) Limited, a company owned by James Redmayne and his wife,

Samantha Redmayne, received $240,695 for services provided by James and Samantha to the Group.

2299.. CCoonnttiinnggeenntt lliiaabbiilliittiieess

There are no contingent liabilities as at 31 March 2023 (2022: nil).

3300.. CCoommmmiittmmeennttss

The Group commitments totalling $131,000 for future equipment capital expenditure as at 31 March

2023 (2022: $361,000).

3311.. EEvveennttss ssuubbsseeqquueenntt ttoo rreeppoor rttiinngg ddaattee

31.1 Issue of further employee share options

On 3 May 2023 the Company issued a further 6 million options to certain employees and non-executive

directors. The options have an exercise price of $0.05 and were issued under the same terms as previous

issues of options as detailed in note 21. The options vest in 3 equal tranches: one third on 3 May 2023,

one third on 3 May 2024 and the final third on 3 May 2025.

31.2 Business acquisition

On 1 June 2023 WasteCo NZ Limited purchased the combined assets and businesses of Cleanways (2003)

Limited (‘Cleanways’), Enviro South (2015) Limited (‘Enviro South’) and Wastech Services (Central Otago)

Limited (‘Wastech Services’), all of which were under common ownership.

Cleanways and Enviro South are based in Invercargill and specialise in the removal of bulk liquid waste,

providing a range of services across Southland. Wastech Services is based in Cromwell and specialises in

the removal of bulk liquid and solid waste, providing services throughout the Central Otago region.

WASTECO GROUP LTD: ANNUAL REPORT 2023 59
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



36

2288.. RReellaatteedd ppaarrttiieess

28.1 Directors

The directors of the Company are Shane Edmond, Carl Storm, James Redmayne, Roger Gower and Angus

Cooper.

28.2 Key Management Personnel Compensation

Key management personnel are the Directors, the Chief Executive Officer and members of the executive

leadership team.

Key management personnel compensation is set out below.


$20,000 of directors fees were paid in advance to directors at 31 March 2023 (2022: nil).

28.3 Personal guarantees of asset finance

All asset finance loans are secured by personal guarantees from Carl Storm and James Redmayne (refer

note 18.3).

28.4 Shareholder loans

During the year ended 31 March 2022 the Group received $173,298 of loans from James and Samantha

Redmayne (refer note 18.2). The outstanding balance was fully repaid during the 2023 reporting period.

Interest of $25,367 accrued on this balance during the reporting period (2022: $1,471).

28.5 Reverse acquisition

Prior to the reverse acquisition described in note 2.3:

- the James & Sam Family Trust, of which James Redmayne and his wife Samantha are trustees and

beneficiaries, held 3,285 shares in WasteCo Holdings, the then parent company of the Group. As

part of the reverse acquisition, the James & Sam Family Trust received 165,564,000 shares in

WasteCo in exchange for its shareholding in WasteCo Holdings;

- the Storm Commercial Trust, of which Carl Storm his wife and Dawn are trustees and beneficiaries,

held 3,135 shares in WasteCo Holdings. As part of the reverse acquisition, the Storm Commercial

Trust received 158,004,000 shares in WasteCo in exchange for its shareholding in WasteCo Holdings;

- Shane Edmond, Ashvegas Limited (a company related to Shane Edmonds) and Belinda Edmonds

(Shane Edmond’s wife) held 900, 400 and 200 shares in WasteCo Holdings respectively. As part of

the reverse acquisition, they respectively received 45,360,000, 20,560 000 and 10,080,000 shares in

WasteCo in exchange for their shareholding in WasteCo Holdings;

- Shane Edmond invested $250,000 in the mandatory convertible notes issued by the Group. These

converted into 5,000,000 shares in the Company immediately following the reverse acquisition.

Interest of $2,907 was paid on these notes prior to their conversion.

28.6 Bastre Properties NZ Limited

Bastre Properties NZ Limited (‘Bastre Properties ‘) owns premises that are leased by the Group. The

initial term of the lease is five years from November 2020 and the Group hold rights of renewal for two

further five-year terms. $119,596 was paid in rent to Bastre Properties in the reporting period ended

2023 2022

NZ$000NZ$000

Short term benefits - WasteCo directors11263

Share based payments - WasteCo directors44-

Short-term benefits - key management employees642199

Share based payments - key management employees22-

820262

WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



37

31 March 2023 (2022: $100,000). As at 31 March 2023 the Group recognised $1,051,968 of lease

liabilities due to Bastre Properties (2022: $1,002,000).

44% of the share capital of Bastre Properties is owned by the Storm Commercial Trust, of which Carl and

Dawn Storm are trustees and 44% by the James & Sam Family Trust, of which James and Samantha

Redmayne are trustees.

On 28 November 2020 the Group sold Bastre Properties, which was a wholly owned subsidiary, to

entities associated with Carl Storm, James Redmayne and others for $6,000. This balance was included in

receivables at 31 March 2022.

28.7 Other transactions with related parties

Carl Storm’s wife, Dawn Storm, received total remuneration of $62,417 as an employee of the Group

(2022: $48,833).

During the year ended 31 March 2023 the Group provided $5,000 of sponsorship to Carl Storm’s motor

racing team (2022: $5,000).

James Redmayne’s wife, Samantha Redmayne, received remuneration of $92,013 as an employee of the

Group (2022: $7,333).

At 31 March 2023 the Group held a receivable of $7,789 owed by James Redmayne (2022: nil).

In 2022, Variable Financial Solutions (NZ) Limited, a company owned by James Redmayne and his wife,

Samantha Redmayne, received $240,695 for services provided by James and Samantha to the Group.

2299.. CCoonnttiinnggeenntt lliiaabbiilliittiieess

There are no contingent liabilities as at 31 March 2023 (2022: nil).

3300.. CCoommmmiittmmeennttss

The Group commitments totalling $131,000 for future equipment capital expenditure as at 31 March

2023 (2022: $361,000).

3311.. EEvveennttss ssuubbsseeqquueenntt ttoo rreeppoorrttiinngg ddaattee

31.1 Issue of further employee share options

On 3 May 2023 the Company issued a further 6 million options to certain employees and non-executive

directors. The options have an exercise price of $0.05 and were issued under the same terms as previous

issues of options as detailed in note 21. The options vest in 3 equal tranches: one third on 3 May 2023,

one third on 3 May 2024 and the final third on 3 May 2025.

31.2 Business acquisition

On 1 June 2023 WasteCo NZ Limited purchased the combined assets and businesses of Cleanways (2003)

Limited (‘Cleanways’), Enviro South (2015) Limited (‘Enviro South’) and Wastech Services (Central Otago)

Limited (‘Wastech Services’), all of which were under common ownership.

Cleanways and Enviro South are based in Invercargill and specialise in the removal of bulk liquid waste,

providing a range of services across Southland. Wastech Services is based in Cromwell and specialises in

the removal of bulk liquid and solid waste, providing services throughout the Central Otago region.

60 FINANCIALS
WasteCo Group Limited (formerly Goodwood Capital Limited)

NNootteess ttoo tthhee CCoonnssoolliiddaatteedd FFiinnaanncciiaall SSttaatteemmeennttss

For the year ended 31 March 2023



38

The acquisition supports WasteCo to expand its services in Southland and Otago.

The total purchase price for the acquisition was $7.238 million (after adjustments to the contracted

purchase price of $7.35 million). $2.205 million of the purchase price was satisfied by the issue to the

vendors of 31,850,353 fully paid ordinary shares in the Company, with the $5.033 million balance of the

purchase price paid in cash.

The provisional amounts recognised in respect of the identifiable assets acquired and liabilities assumed

are as set out in the table below.


The fair value of the 31,850,353 ordinary shares issued at $0.06923 per share as part of the

consideration paid was determined on the basis of the agreement between the parties. The issue price of

$0.0692 per share is in line with the volume-weighted average price (VWAP) of WasteCo shares prior to

the announcement of the acquisition.

The initial accounting for the acquisition has only been provisionally determined at the date of approval

of these consolidated financial statements. The acquisition accounting is expected to be finalised by the

next reporting date and this may impact the fair value of net assets acquired. Potentially of most impact

is the recognition of identifiable intangible assets.

The provisional goodwill of $1.276 million arising from the acquisition consists of recurring revenue

streams and relationships, which at this time have not been fair valued and separately identified. The

goodwill also relates to expected synergies, and the capability and expertise developed within the

acquired business.

The cash paid for the acquisition was funded by additional asset finance.

31.3 Issues of ordinary shares

On 15 June 2023 the Company issued 66,484,000 fully paid ordinary shares at an issue price of $0.065

per share. The shares were issued to selected New Zealand wholesale investors and raised $4.32 million

additional capital.

On 26 June 2023 the Company issued 500,000 fully paid ordinary shares, following the exercising of

500,000 share options under the Company’s share option scheme (refer note 21), at an exercise price of

$0.05 per share.


NZ$000

Net assets acquired at fair value (provisional):

Property, plant and equipment6,113

Prepayments7

Employee entitlements(158)

Net assets acquired5,962

Goodwill

1,276

Total consideration

7,238

Satisfied by:

Cash5,033

Issue of ordinary shares2,205

Total consideration7,238

WASTECO GROUP LTD: ANNUAL REPORT 2023 61

39

Level 9, 45 Que

e

n Street, Auckland 1010

PO Box 3899, Auckland 1140

New Zealand

T: +64 9 309 0463

F: +64 9 309 4544

E:

auckland@bakertillysr.nz

W: www.bakertillysr.nz

INDEPENDENT AUDITOR’S REPORT 

To the Shareholders of WasteCo Group Limited 

Report on the Audit of the Consolidated Financial Statements 

Opinion

 

We have audited the consolidated financial statements of WasteCo Group Limited and its subsidiaries ('the Group')

on pages 24 to 60, which comprise the consolidated statement of financial position as at 31 March 2023, and

the consolidated statement of profit or loss and other comprehensive income, consolidated statement of

changes in equity and consolidated statement of cash flows for the year then ended, and notes to the

consolidated financial statements, including significant accounting policies.

In our opinion, the accompanying consolidated financial statements present fairly, in all material respects, the

consolidated financial position of the Group as at 31 March 2023, and its consolidated financial performance and its

consolidated 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').

Our report is made solely to the Shareholders of the Group. Our audit work has been undertaken so that we might

state to the Shareholders of the Group those matters 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 Shareholders of the Group as a body, for our audit work, for our report or for the opinions we have formed.

Basis for Opinion 

We conducted our audit in accordance with International Standards on Auditing (New Zealand) ('ISAs (NZ)'). Our

responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the

Consolidated Financial Statements section of our report. We are independent of the Group in accordance with

Professional and Ethical Standard 1 International Code of Ethics for Assurance Practitioners (including International

Independence Standards) (New Zealand) issued by the New Zealand Auditing and Assurance Standards Board and

the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants

(including International Independence Standards) (‘IESBA Code’), and we have fulfilled our other ethical responsibilities

in accordance with these requirements and the IESBA Code. We believe that the audit evidence we have obtained is

sufficient and appropriate to provide a basis for our opinion.

Other than in our capacity as auditor we have no relationship with, or interests in, WasteCo Group Limited or any of

its subsidiaries. We provided taxation compliance services to Goodwood Capital Limited (in the financial year ended

31 March 2022).

62 FINANCIALS
40


Key Audit Matters 

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the

consolidated financial statements of the current year. These matters were addressed in the context of our audit of

the consolidated financial statements as a whole, and in forming our opinion thereon, and we do not provide a

separate opinion on these matters.


Key Audit Matter How our audit addressed the key audit matter 

EExxiisstteennccee aanndd vvaalluuaattiioonn ooff

pprrooppeerrttyy,, ppllaanntt aanndd eeqquuiippmmeenntt

As disclosed in Note 14 of the

Group’s consolidated financial

statements, the Group has

property, plant and equipment of

$30.9M.


Property, plant and equipment are

significant to our audit due to the

size of the assets and the

subjectivity, complexity and

uncertainty inherent in the

measurement of the residual

values and useful lives of the

assets.



Our audit procedures among others included:

 Understanding and evaluating the Group’s internal control processes relevant

to the identification, recording, recognition and measurement of property,

plant and equipment.

 Evaluating the design and operating effectiveness of the Group’s internal

controls surrounding the monitoring of property, plant and equipment.


 Selecting a representative sample of property, plant and equipment at

reporting date and verifying the existence of the underlying assets.


 Selecting a representative sample of property, plant and equipment additions

and disposals and agreeing additions and disposals to supporting

documentation, ensuring appropriate recognition and derecognition in

accordance with NZ IAS 16 Property, Plant and Equipment.


 Evaluating management’s assessment of the residual values and useful lives

applied to individual assets.


 Evaluating related disclosures (including the accounting policies and

accounting estimates) included in the Group’s consolidated financial

statements.


RReevveerrssee aaccqquuiissiittiioonn aaccccoouunnttiinngg ooff

GGooooddwwoooodd CCaappiittaall LLiimmiitteedd

As disclosed in Notes 2.3, 4.1 and

24, the Group entered into a

reverse listing agreement with

Goodwood Capital Limited (‘GWC’)

(being the accounting acquiree).

GWC was a non-trading company

listed on the NZX (‘New Zealand

Stock Exchange) Main Board. The

transaction was approved by

GWC’s shareholders and WasteCo

Group Limited (being the

accounting acquirer) was listed on

the NZX on 6 December 2022

(referred to as the ‘reverse

acquisition’).



The reverse acquisition of GWC is

significant to our audit due to the

size of the acquisition and the

subjectivity and complexity of the

transaction, and the level of audit

effort involved.




Our audit procedures among others included:

 Obtaining an understanding of the transaction by reading the reverse listing

agreement and other agreements relating to the reverse acquisition to

understand key terms and conditions and confirming our understanding of

the transaction with Management. In addition, we gained an understanding of

management’s assessment of the following parties for reverse acquisition for

accounting purposes:


o The acquiree; and

o The acquirer.


 Evaluating whether the acquiree meets the definition of a business in order

for the transaction to be accounted for as a reverse acquisition in accordance

with NZ IFRS 3 Business Combinations.


 Understanding and evaluating the Group’s internal controls relevant to the

accounting estimates used to determine the fair value of the Group’s

acquired business.


 Reading the independent adviser’s appraisal report.


 Evaluating the competence, capabilities, objectivity and expertise of the

independent advisor and the appropriateness of the advisor’s work as audit

evidence for the relevant assertions.


41


Key Audit Matter How our audit addressed the key audit matter 

Management have completed a

process to identify the acquiree,

acquirer, determine the reverse

acquisition date and measure the

equity interests.

 Engaging our own internal valuation expert to evaluate the basis of the

valuation of the share-based payment and the fair value of identifiable net

assets acquired and challenging the underlying assumption of the valuation

against market data.


 Evaluating the calculations of the share-based payment, fair value of

identifiable net assets acquired and listing expenses and testing the

mathematical accuracy of these calculations.

 Evaluating the inputs and underlying with a view to identifying Management

bias.


 Evaluating the disclosures (including the accounting policies and accounting

estimates) related to the reverse acquisitions which are included in the

Group’s consolidated financial statements.


SShhaarree--bbaasseedd ppaayymmeennttss

As disclosed in Note 21 of the

Group’s consolidated financial

statements, the Group issued

22.8M share options to employees,

including key management

personnel. These options were

accounted for as share-based

payments under NZ IFRS 2 Shared-

based Payment.

 

Share-based payments were

significant to our audit as they are

a complex accounting area and a

number of assumptions and

judgements were applied in

determining the fair value

calculations for the options issued

during the year.

 

 



Our audit procedures among others included:

 Obtaining an understanding of the transactions by reading the share option

agreements and all relevant documentation to understand key terms and

conditions and confirming our understanding of the transaction with

Management.


 Understanding and evaluating the Groups internal controls relevant to the

accounting estimates used to determine the valuation of employee share-

based payments.


 Reading the external valuation reports for the Group’s share options.


 Evaluating the competence, capabilities, objectivity and expertise of

Management's external valuation expert and the appropriateness of the

expert's work as audit evidence for the relevant assertions.


 Engaging our own internal valuation expert to evaluate the logic of calculation

and the inputs to the fair value calculation to determine the valuation of

share-based payments.


 Assessing Management’s employee share-based payment calculations and

testing the mathematical accuracy of these calculations.


 Evaluating the inputs and underlying assumptions with a view to identifying

Management bias.


 Evaluating the disclosures (including the accounting policies and accounting

estimates) related to the share options and share-based payments which are

included in the Group’s consolidated financial statements.



Responsibilities of the Directors for the Consolidated Financial Statements 

The Directors are responsible on behalf of the Group for the preparation and fair presentation of the consolidated

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 the consolidated financial statements that are free from material

misstatement, whether due to fraud or error.

WASTECO GROUP LTD: ANNUAL REPORT 2023 63
41


Key Audit Matter How our audit addressed the key audit matter 

Management have completed a

process to identify the acquiree,

acquirer, determine the reverse

acquisition date and measure the

equity interests.


 Engaging our own internal valuation expert to evaluate the basis of the

valuation of the share-based payment and the fair value of identifiable net

assets acquired and challenging the underlying assumption of the valuation

against market data.


 Evaluating the calculations of the share-based payment, fair value of

identifiable net assets acquired and listing expenses and testing the

mathematical accuracy of these calculations.

 Evaluating the inputs and underlying with a view to identifying Management

bias.


 Evaluating the disclosures (including the accounting policies and accounting

estimates) related to the reverse acquisitions which are included in the

Group’s consolidated financial statements.


SShhaarree--bbaasseedd ppaayymmeennttss

As disclosed in Note 21 of the

Group’s consolidated financial

statements, the Group issued

22.8M share options to employees,

including key management

personnel. These options were

accounted for as share-based

payments under NZ IFRS 2 Shared-

based Payment.


 

Share-based payments were

significant to our audit as they are

a complex accounting area and a

number of assumptions and

judgements were applied in

determining the fair value

calculations for the options issued

during the year.

 

 



Our audit procedures among others included:

 Obtaining an understanding of the transactions by reading the share option

agreements and all relevant documentation to understand key terms and

conditions and confirming our understanding of the transaction with

Management.


 Understanding and evaluating the Groups internal controls relevant to the

accounting estimates used to determine the valuation of employee share-

based payments.


 Reading the external valuation reports for the Group’s share options.


 Evaluating the competence, capabilities, objectivity and expertise of

Management's external valuation expert and the appropriateness of the

expert's work as audit evidence for the relevant assertions.


 Engaging our own internal valuation expert to evaluate the logic of calculation

and the inputs to the fair value calculation to determine the valuation of

share-based payments.


 Assessing Management’s employee share-based payment calculations and

testing the mathematical accuracy of these calculations.


 Evaluating the inputs and underlying assumptions with a view to identifying

Management bias.


 Evaluating the disclosures (including the accounting policies and accounting

estimates) related to the share options and share-based payments which are

included in the Group’s consolidated financial statements.



Responsibilities of the Directors for the Consolidated Financial Statements 

The Directors are responsible on behalf of the Group for the preparation and fair presentation of the consolidated

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 the consolidated financial statements that are free from material

misstatement, whether due to fraud or error.

64 FINANCIALS
42

In preparing the consolidated financial statements, the Directors are responsible on behalf of the Group for assessing

the Group’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 Group or to cease

operations, or have no realistic alternative but to do so.

Auditor’s Responsibilities for the Audit of the Consolidated Financial Statements 

Our objectives are to obtain reasonable assurance about whether the consolidated 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) 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 consolidated financial statements.

A further description of the auditor’s responsibilities for the audit of the consolidated financial statements is located

at the External Reporting Board’s website at:

https://www.xrb.govt.nz/assurance-standards/auditors-responsibilities/audit-report-1/

Matters Relating to the Electronic Presentation of the Audited Consolidated Financial Statements 

This audit report relates to the consolidated financial statements of WasteCo Group Limited and its subsidiaries for

the year ended 31 March 2023 included on WasteCo Group Limited’s website. The Directors of WasteCo Group

Limited are responsible for the maintenance and integrity of WasteCo Group Limited’s website. We have not been

engaged to report on the integrity of WasteCo Group Limited’s website. We accept no responsibility for any changes

that may have occurred to the consolidated financial statements since they were initially presented on the website.

The audit report refers only to the consolidated financial statements named above. It does not provide an opinion on

any other information which may have been hyper linked to or from these consolidated financial statements. If

readers of this report are concerned with the inherent risks arising from electronic data communication they should

refer to the published hard copy of the audited consolidated financial statements and related audit report dated 30

June 2023 to confirm the information included in the audited consolidated financial statements presented on this

website.

Legislation in New Zealand governing the preparation and dissemination of consolidated financial statements may

differ from legislation in other jurisdictions.

The engagement partner on the audit resulting in this independent auditor’s report is D I Searle.

BAKER TILLY STAPLES RODWAY AUCKLAND  

Auckland, New Zealand

 

30 June 2023

WASTECO GROUP LTD: ANNUAL REPORT 2023 65
WasteCo Group Limited (formerly Goodwood Capital Limited)

SShhaarreehhoollddeerr aanndd SSttaattuuttoorryy IInnffoorrmmaattiioonn

For the year ended 31 March 2023




44

SSttoocckk eexxcchhaannggee lliissttiinngg

The Group’s shares are quoted on the NZX Main Board. As at 31 May 2023, the Company had

688,000,000 ordinary shares on issue.


DDiissttrriibbuuttiioonn ooff sseeccuurriittyy hhoollddeerrss

Details of the distribution of ordinary shares amongst shareholders as at 31 May 2023 are set out below.



2200 llaarrggeesstt sshhaarreehhoollddiinnggss

The 20 largest shareholdings as at 31 May 2023 are provided in the table below.


Size of HoldingNumber%Number%

1-1,000756 52.50%364,876 0.05%

1,001-5,000433 30.07%1,002,935 0.15%

5,001-10,00072 5.00%541,715 0.08%

10,001-100,000101 7.01%3,331,549 0.48%

100,001 - 500,00035 2.43%8,437,351 1.23%

500,001 or more43 2.99%674,321,574 98.01%

1,440 100.00%688,000,000 100.00%

Number of Security HoldersNumber of Securities

NameNumber of

shares held

% of

shares held

Cullinane Steel Trustees (2003) Limited, Laurence James Redmayne &

Samantha Jane Redmayne

165,564,000 24.06%

C & F Trustees 35776 Limited, Carl Stephen Storm & Dawn Margaret

Storm

158,004,000 22.97%

Gleneig Holdings Limited54,432,000 7.91%

Glendarvie Holdings Limited50,400,000 7.33%

Shane David Edmond50,360,000 7.32%

Forsyth Barr Custodians Limited21,137,518 3.07%

Ashvegas Limited20,560,000 2.99%

Youthlab Limited17,000,000 2.47%

Mounterowen Limited13,136,073 1.91%

WFT Property Limited13,000,000 1.89%

Betalert Limited10,425,000 1.52%

Belinda Anne Edmond10,080,000 1.47%

John Adriaan Kuyf & Janette Anne Kuyf10,000,000 1.45%

Barry John Gray & Fiona Margaret Gray6,500,000 0.94%

John Lee & Susan Iris Lee & Paul Johnston6,500,000 0.94%

Graham Henry Beirne & Lynley Anne Beirne & Richard Vaughan Smith6,323,382 0.92%

RGH Holdings Limited6,000,000 0.87%

Leveraged Equities Finance Limited5,791,661 0.84%

AWD Finance Limited5,000,000 0.73%

C Q Hayward & K M Hayward & C A Trustees 2012 Limited5,000,000 0.73%

66 FINANCIALS
WasteCo Group Limited (formerly Goodwood Capital Limited)

SShhaarreehhoollddeerr aanndd SSttaattuuttoorryy IInnffoorrmmaattiioonn

For the year ended 31 March 2023




45

SSuubbssttaannttiiaall sseeccuurriittyy hhoollddeerrss

As at 31 March 2023 the following persons are substantial product holders according to the Group’s

records and disclosure under the Financial Markets Conduct Act 2013.



DDiirreeccttoorrss

The names of the directors holding office during the year are:

Angus Cooper

Shane Edmond (commenced 5 December 2022)

Roger Gower

Sean Joyce (ceased 5 December 2022)

James Redmayne (commenced 5 December 2022)

Carl Storm (commenced 5 December 2022)


Shane Edmond, James Redmayne and Carl Storm are directors of each of the Company’s subsidiaries.


DDiirreeccttoorrss’’ rreemmuunneerraattiioonn

During the year the following remuneration and other benefits were paid or payable to directors of the

Group. The amounts below reflect the remuneration included in the Group’s consolidated financial

statements.



In addition to the amounts above, the directors of WasteCo Group Limited prior to the reverse acquisition,

being Angus Cooper, Roger Gower and Sean Joyce, each received $16,000 in directors fees for the

period from 1 April 2022 to the reverse acquisition date of 5 December 2022.


Number of

shares held

% of shares

held

Laurence James Redmayne, Samantha Redmayne, Cullinane Steele

Trustees (2003) Limited

165,564,000 24.06%

Carl Storm, Dawn Storm and C&F Trustees 35776 Limited158,004,000 22.97%

Glendarvie Holdings Limited, Robert Baan and Rowena Baan-Mathias104,832,000 15.24%

Shane Edmond, Belinda Edmond and Ashvegas Limited81,000,000 11.77%

Gleneig Holdings Limited54,432,000 7.91%

Directors feesSalariesShare based

payments

Total

NZ$000NZ$000NZ$000NZ$000

Angus Cooper22-2244

Shane Edmonds (Chair)68--68

Roger Gower22-2244

James Redmayne (CEO)-250-250

Carl Storm-250-250

WasteCo Group Limited (formerly Goodwood Capital Limited)

SShhaarreehhoollddeerr aanndd SSttaattuuttoorryy IInnffoorrmmaattiioonn

For the year ended 31 March 2023




46

IInntteerreessttss rreeggiisstteerr

The following entries were made in the interest register during the year ended 31 March 2023:

The directors provided the following disclosure of entities in which, due to the nature of their

relationship, may be related parties to the Group.




Shane EdmondNature of InterestShare Allocation

(If Shareholder)

Almighty Beverages Limited (5781707)Shareholder

3.4% (Individually held)

Ashvegas Limited (701196)Director

Ashvegas Limited (701196)Shareholder99% (Jointly held)

Ashvegas Limited (701196)Shareholder<1% (Individually held)

Boatco M51-1 Limited (6526114)Shareholder17% (Jointly held)

Forsyth Barr Group Limited (1055894)Director

Forsyth Barr Investment Management Limited (2095523)Director

Forsyth Barr Limited (150925)Director

Hedgebook Limited (2031496)

Shareholder (via

Ashvegas Limited)

2% (Individually held)

Hollis Brothers Limited (4026878)Shareholder33% (Jointly held)

Nutrient Rescue NZ Limited (5810193)

Shareholder (via

Ashvegas Limited)

3% (Individually held)

Ranqx Holdings Limited (5055680)Shareholder<1% (Individually held)

Safeco Training NZ Limited (8214997)Director

Sortco NZ Limited (8215515)Director

Taitapu Partners Limited (4618182)Director

The Humble Oat Co Limited (7051873)Shareholder

1.8% (Individually held)

Wasteco Finance NZ Limited (5005020)Director

Wasteco Group Limited (3202682)Shareholder7% (Individually held)

Wasteco Group Limited (3202682)Director

Wasteco Holdings NZ Limited (8144096)Director

Wasteco NZ (Southern) Limited (6462572)Director

Wasteco NZ Limited (4608661)Director

Wasteco Port Services NZ Limited (5909612)Director

WASTECO GROUP LTD: ANNUAL REPORT 2023 67
WasteCo Group Limited (formerly Goodwood Capital Limited)

SShhaarreehhoollddeerr aanndd SSttaattuuttoorryy IInnffoorrmmaattiioonn

For the year ended 31 March 2023




45

SSuubbssttaannttiiaall sseeccuurriittyy hhool lddeerrss

As at 31 March 2023 the following persons are substantial product holders according to the Group’s

records and disclosure under the Financial Markets Conduct Act 2013.



DDi irreeccttoor rss

The names of the directors holding office during the year are:

Angus Cooper

Shane Edmond (commenced 5 December 2022)

Roger Gower

Sean Joyce (ceased 5 December 2022)

James Redmayne (commenced 5 December 2022)

Carl Storm (commenced 5 December 2022)


Shane Edmond, James Redmayne and Carl Storm are directors of each of the Company’s subsidiaries.


DDi irreeccttoor rss’’ rreemmuunneerraattiioonn

During the year the following remuneration and other benefits were paid or payable to directors of the

Group. The amounts below reflect the remuneration included in the Group’s consolidated financial

statements.



In addition to the amounts above, the directors of WasteCo Group Limited prior to the reverse acquisition,

being Angus Cooper, Roger Gower and Sean Joyce, each received $16,000 in directors fees for the

period from 1 April 2022 to the reverse acquisition date of 5 December 2022.


Number of

shares held

% of shares

held

Laurence James Redmayne, Samantha Redmayne, Cullinane Steele

Trustees (2003) Limited

165,564,000 24.06%

Carl Storm, Dawn Storm and C&F Trustees 35776 Limited158,004,000 22.97%

Glendarvie Holdings Limited, Robert Baan and Rowena Baan-Mathias104,832,000 15.24%

Shane Edmond, Belinda Edmond and Ashvegas Limited81,000,000 11.77%

Gleneig Holdings Limited54,432,000 7.91%

Directors feesSalariesShare based

payments

Total

NZ$000NZ$000NZ$000NZ$000

Angus Cooper22-2244

Shane Edmonds (Chair)68--68

Roger Gower22-2244

James Redmayne (CEO)-250-250

Carl Storm-250-250

WasteCo Group Limited (formerly Goodwood Capital Limited)

SShhaarreehhoollddeerr aanndd SSttaattuuttoorryy IInnffoorrmmaattiioonn

For the year ended 31 March 2023




46

IInntteerreessttss rreeggiisstteerr

The following entries were made in the interest register during the year ended 31 March 2023:

The directors provided the following disclosure of entities in which, due to the nature of their

relationship, may be related parties to the Group.




Shane EdmondNature of InterestShare Allocation

(If Shareholder)

Almighty Beverages Limited (5781707)Shareholder

3.4% (Individually held)

Ashvegas Limited (701196)Director

Ashvegas Limited (701196)Shareholder99% (Jointly held)

Ashvegas Limited (701196)Shareholder<1% (Individually held)

Boatco M51-1 Limited (6526114)Shareholder17% (Jointly held)

Forsyth Barr Group Limited (1055894)Director

Forsyth Barr Investment Management Limited (2095523)Director

Forsyth Barr Limited (150925)Director

Hedgebook Limited (2031496)

Shareholder (via

Ashvegas Limited)

2% (Individually held)

Hollis Brothers Limited (4026878)Shareholder33% (Jointly held)

Nutrient Rescue NZ Limited (5810193)

Shareholder (via

Ashvegas Limited)

3% (Individually held)

Ranqx Holdings Limited (5055680)Shareholder<1% (Individually held)

Safeco Training NZ Limited (8214997)Director

Sortco NZ Limited (8215515)Director

Taitapu Partners Limited (4618182)Director

The Humble Oat Co Limited (7051873)Shareholder

1.8% (Individually held)

Wasteco Finance NZ Limited (5005020)Director

Wasteco Group Limited (3202682)Shareholder7% (Individually held)

Wasteco Group Limited (3202682)Director

Wasteco Holdings NZ Limited (8144096)Director

Wasteco NZ (Southern) Limited (6462572)Director

Wasteco NZ Limited (4608661)Director

Wasteco Port Services NZ Limited (5909612)Director

68 FINANCIALS
WasteCo Group Limited (formerly Goodwood Capital Limited)

SShhaarreehhoollddeerr aanndd SSttaattuuttoorryy IInnffoorrmmaattiioonn

For the year ended 31 March 2023




47







James RedmayneNature of InterestShare Allocation

(If Shareholder)

Bastre Properties NZ Limited (8046696)Shareholder44% (Jointly held)

Bastre Properties NZ Limited (8046696)Director

Bear Finance NZ Limited (5909807)Director

Hazmit Limited (2322618)Director

Hazmit Limited (2322618)Shareholder90% (Individually held)

Redall Limited (8356761)Shareholder100% (Individually held)

Redall Limited (8356761)Director

Redmayne Innovations Limited (7676238)Director

Redmayne Innovations Limited (7676238)Shareholder100% (Individually held)

Safeco Training NZ Limited (8214997)Director

Sortco NZ Limited (8215515)Director

Staffco NZ Limited (8144045)Director

Staffco NZ Limited (8144045)Shareholder32% (Jointly held)

Variable Financial Solutions (NZ) Limited (4645179)Director

Variable Financial Solutions (NZ) Limited (4645179)Shareholder50% (Individually held)

Wasteco Finance NZ Limited (5005020)Director

Wasteco Group Limited (3202682)Director

Wasteco Group Limited (3202682)Shareholder24% (Jointly held)

Wasteco Holdings NZ Limited (8144096)Director

Wasteco NZ (Southern) Limited (6462572)Director

Wasteco NZ Limited (4608661)Director

Wasteco Port Services NZ Limited (5909612)Director

Carl StormNature of InterestShare Allocation

(If Shareholder)

Bastre Properties NZ Limited (8046696)Shareholder44% (Jointly held)

Bastre Properties NZ Limited (8046696)Director

Cada Group Limited (2218077)Director

Safeco Training NZ Limited (8214997)Director

Sortco NZ Limited (8215515)Director

Staffco NZ Limited (8144045)Director

Staffco NZ Limited (8144045)Shareholder32% (Jointly held)

Wasteco Group Limited (3202682)Director

Wasteco Group Limited (3202682)Shareholder23% (Jointly held)

Wasteco Holdings NZ Limited (8144096)Director

Wasteco NZ (Southern) Limited (6462572)Director

Wasteco NZ Limited (4608661)Director

Wasteco Port Services NZ Limited (5909612)Director

Angus CooperNature of InterestShare Allocation

(If Shareholder)

Agile Projex Limited (8262313)Shareholder100% (Individually held)

Agile Projex Limited (8262313)Director

Wasteco Group Limited (3202682)Director

WasteCo Group Limited (formerly Goodwood Capital Limited)

SShhaarreehhoollddeerr aanndd SSttaattuuttoorryy IInnffoorrmmaattiioonn

For the year ended 31 March 2023




48



DDi irreeccttoor rss’’ rreelleevvaanntt iinntteerreesstt iinn eeqquuiittyy sseeccuurriittiieess

As at 31 March 2023 the directors of the Group held the following relevant interests in equity securities

issued by the Company.



DDi irreeccttoor rss'' iinnddeemmnniiffi iccaattiioonn

The Group indemnifies all current directors of the Group against all liabilities (other than to a member of

the Group) which arise out of the performance of their normal duties as directors, unless the liability

relates to conduct involving lack of good faith.


Roger GowerNature of InterestShare Allocation

(If Shareholder)

Arno Investments Limited (1543852)Director

Arno Investments Limited (1543852)Shareholder100% (Jointly held)

Ascension Capital Limited (1009777)Director

CER Trustee Company Limited (3207349)Shareholder100% (Individually held)

CER Trustee Company Limited (3207349)Director

Clever Nutrition Limited (5031320)Director

Clever Nutrition Limited (5031320)Shareholder25% (Individually held)

Gower Management Group Limited (1001191)Director

Gower Management Group Limited (1001191)Shareholder33% (Jointly held)

Ika Nui Charters Limited (1032275)Director

Me Today Limited (1955467)Director

Mitsui Credit Limited (1458821)Director

Mitsui Credit Limited (1458821)Shareholder50% (Individually held)

Morena Manuka Limited (8269785)Director

Morena Manuka Limited (8269785)Shareholder100% (Individually held)

New Zealand Food Innovation Auckland Limited (2448723)Director

New Zealands Best Food And Beverage Limited (5881236)Director

Nxt Fuels Limited (1709802)Director

Primeport Timaru Limited (388909)Director

Rec No. 2 Limited (3204352)Director

Rec No. 3 Limited (3205230)Director

Rf Project 1 Limited (3535534)Director

Roger Gower & Associates Limited (2106308)Director

Roger Gower & Associates Limited (2106308)Shareholder<1% (Individually held)

>99% (Jointly held)

Utility Security Limited (1020566)Director

Utility Security Limited (1020566)Shareholder34% (Jointly held)

Wasteco Group Limited (3202682)Director

NameRoleOrdinary

sharesVestedNot vested

Angus CooperIndependent director- 500,000 1,000,000

Shane EdmondDirector70,920,000 - -

Roger GowerIndependent director- 500,000 1,000,000

James RedmayneCEO & director165,564,000 - -

Carl StormExecutive director158,004,000 - -

Share options granted

WASTECO GROUP LTD: ANNUAL REPORT 2023 69
WasteCo Group Limited (formerly Goodwood Capital Limited)

SShhaarreehhoollddeerr aanndd SSttaattuuttoorryy IInnffoorrmmaattiioonn

For the year ended 31 March 2023




47







James RedmayneNature of InterestShare Allocation

(If Shareholder)

Bastre Properties NZ Limited (8046696)Shareholder44% (Jointly held)

Bastre Properties NZ Limited (8046696)Director

Bear Finance NZ Limited (5909807)Director

Hazmit Limited (2322618)Director

Hazmit Limited (2322618)Shareholder90% (Individually held)

Redall Limited (8356761)Shareholder100% (Individually held)

Redall Limited (8356761)Director

Redmayne Innovations Limited (7676238)Director

Redmayne Innovations Limited (7676238)Shareholder100% (Individually held)

Safeco Training NZ Limited (8214997)Director

Sortco NZ Limited (8215515)Director

Staffco NZ Limited (8144045)Director

Staffco NZ Limited (8144045)Shareholder32% (Jointly held)

Variable Financial Solutions (NZ) Limited (4645179)Director

Variable Financial Solutions (NZ) Limited (4645179)Shareholder50% (Individually held)

Wasteco Finance NZ Limited (5005020)Director

Wasteco Group Limited (3202682)Director

Wasteco Group Limited (3202682)Shareholder24% (Jointly held)

Wasteco Holdings NZ Limited (8144096)Director

Wasteco NZ (Southern) Limited (6462572)Director

Wasteco NZ Limited (4608661)Director

Wasteco Port Services NZ Limited (5909612)Director

Carl StormNature of InterestShare Allocation

(If Shareholder)

Bastre Properties NZ Limited (8046696)Shareholder44% (Jointly held)

Bastre Properties NZ Limited (8046696)Director

Cada Group Limited (2218077)Director

Safeco Training NZ Limited (8214997)Director

Sortco NZ Limited (8215515)Director

Staffco NZ Limited (8144045)Director

Staffco NZ Limited (8144045)Shareholder32% (Jointly held)

Wasteco Group Limited (3202682)Director

Wasteco Group Limited (3202682)Shareholder23% (Jointly held)

Wasteco Holdings NZ Limited (8144096)Director

Wasteco NZ (Southern) Limited (6462572)Director

Wasteco NZ Limited (4608661)Director

Wasteco Port Services NZ Limited (5909612)Director

Angus CooperNature of InterestShare Allocation

(If Shareholder)

Agile Projex Limited (8262313)Shareholder100% (Individually held)

Agile Projex Limited (8262313)Director

Wasteco Group Limited (3202682)Director

WasteCo Group Limited (formerly Goodwood Capital Limited)

SShhaarreehhoollddeerr aanndd SSttaattuuttoorryy IInnffoorrmmaattiioonn

For the year ended 31 March 2023




48



DDiirreeccttoorrss’’ rreelleevvaanntt iinntteerreesstt iinn eeqquuiittyy sseeccuurriittiieess

As at 31 March 2023 the directors of the Group held the following relevant interests in equity securities

issued by the Company.



DDiirreeccttoorrss'' iinnddeemmnniiffiiccaattiioonn

The Group indemnifies all current directors of the Group against all liabilities (other than to a member of

the Group) which arise out of the performance of their normal duties as directors, unless the liability

relates to conduct involving lack of good faith.


Roger GowerNature of InterestShare Allocation

(If Shareholder)

Arno Investments Limited (1543852)Director

Arno Investments Limited (1543852)Shareholder100% (Jointly held)

Ascension Capital Limited (1009777)Director

CER Trustee Company Limited (3207349)Shareholder100% (Individually held)

CER Trustee Company Limited (3207349)Director

Clever Nutrition Limited (5031320)Director

Clever Nutrition Limited (5031320)Shareholder25% (Individually held)

Gower Management Group Limited (1001191)Director

Gower Management Group Limited (1001191)Shareholder33% (Jointly held)

Ika Nui Charters Limited (1032275)Director

Me Today Limited (1955467)Director

Mitsui Credit Limited (1458821)Director

Mitsui Credit Limited (1458821)Shareholder50% (Individually held)

Morena Manuka Limited (8269785)Director

Morena Manuka Limited (8269785)Shareholder100% (Individually held)

New Zealand Food Innovation Auckland Limited (2448723)Director

New Zealands Best Food And Beverage Limited (5881236)Director

Nxt Fuels Limited (1709802)Director

Primeport Timaru Limited (388909)Director

Rec No. 2 Limited (3204352)Director

Rec No. 3 Limited (3205230)Director

Rf Project 1 Limited (3535534)Director

Roger Gower & Associates Limited (2106308)Director

Roger Gower & Associates Limited (2106308)Shareholder<1% (Individually held)

>99% (Jointly held)

Utility Security Limited (1020566)Director

Utility Security Limited (1020566)Shareholder34% (Jointly held)

Wasteco Group Limited (3202682)Director

NameRoleOrdinary

sharesVestedNot vested

Angus CooperIndependent director- 500,000 1,000,000

Shane EdmondDirector70,920,000 - -

Roger GowerIndependent director- 500,000 1,000,000

James RedmayneCEO & director165,564,000 - -

Carl StormExecutive director158,004,000 - -

Share options granted

70 FINANCIALS
WasteCo Group Limited (formerly Goodwood Capital Limited)

SShhaarreehhoollddeerr aanndd SSttaattuuttoorryy IInnffoorrmmaattiioonn

For the year ended 31 March 2023




49

EEmmppllooyyeeee rreemmuunneerraattiioonn

The number of employees, not being directors, within the Group receiving annual remuneration and benefits above

$100,000 are:


DDoonnaattiioonnss

No donations were made by the Group during the year.


AAuuddiittoorr

Baker Tilly Staples Rodway Auckland is the auditor for the Group. Audit fees due and payable to the

auditor for the year ended 31 March 2023 were $110,000.


NNZZXX WWaaiivveerrss

WasteCo Group has not relied on any waivers issued by the NZX in the 12 months ended 31 March 2023.

wasteco.co.nz

Data sourced from publicly available filings. Our datasets may not be complete. Automated analysis can produce errors. If you believe any data on this page is incorrect, please contact us at hello@nzxplorer.co.nz. For informational purposes only. Not investment advice.