Bluescope Steel

Search Annual Report

Annual Report 2004

YOU ARE HERE: Annual Report 2004 > Reports > Concise Financial Report

Consolidated Statement of Financial Position as at Year Ended 30 June 2004

 
Notes
2004
$M
2003
$M
Current assets      
      Cash assets  
119.4
91.0
      Receivables  
989.2
639.6
      Inventories  
891.4
639.4
      Other financial assets  
-
4.1
      Other  
43.7
17.6
Total current assets  
2,043.7
1,391.7
       
Non-current assets  
      Receivables  
7.1
10.8
      Inventories  
71.1
58.2
      Investments accounted for using the equity method  
236.3
151.6
      Other financial assets  
4.6
4.5
      Property, plant and equipment  
3,288.6
3,085.6
      Deferred tax assets  
58.0
37.3
      Intangible assets  
60.1
4.5
      Other  
12.6
8.9
Total non-current assets  
3,738.4
3,361.4
Total assets  
5,782.1
4,753.1
       
Current liabilities  
      Payables  
728.3
493.0
      Interest bearing liabilities  
416.0
101.5
      Current tax liabilities  
154.3
108.0
      Provisions  
294.7
258.7
      Other  
92.5
8.1
Total current liabilities  
1,685.8
969.3
       
Non-current liabilities  
      Interest bearing liabilities  
176.7
66.4
      Deferred tax liabilities  
388.3
395.1
      Provisions  
337.7
231.2
Total non-current liabilities  
902.7
692.7
Total liabilities  
2,588.5
1,662.0
Net assets  
3,193.6
3,091.1
       
Equity  
      Parent entity interest  
            Contributed equity
6
1,914.9
2,182.1
            Reserves  
(77.5)
(91.2)
            Retained profits
7
1,302.9
961.4
      Total parent entity interest  
3,140.3
3,052.3
      Outside equity interest in controlled entities  
53.3

38.8

Total equity  

3,193.6

3,091.1

The above consolidated statement of financial position should be read in conjunction with the accompanying notes and discussion and analysis.

DISCUSSION AND ANALYSIS OF CONSOLIDATED STATEMENT OF FINANCIAL POSITION

The major impact on the consolidated statement of financial position arose due to the acquisition of the Butler Manufacturing Company on 27 April 2004, together with a number of other minor controlled entities during the year.

The total impact of these acquisitions were as follows:


$M
Cash
72.5
External receivables
211.0
Inventories
174.2
Property, Plant and equipment
187.0
Deferred tax assets
43.3
Other financial assets
3.8
Other assets
35.1
External payables
(178.4)
Deferred tax liability
(0.9)
Provision for restructuring
(23.4)
Other provisions
(167.5)
Net borrowings
(44.4)
 
312.3
 
Goodwill on consolidation
51.5
Deferred purchase price
(1.3)
Cash consideration
362.5

In order to facilitate the purchase of the Butler Manufacturing Company, a $217 million bridging facility was negotiated with existing borrowing facilities utilised to pay the total purchase price of $277.2 million (net of cash acquired). Subsequent to the end of the financial year, the BlueScope Steel Group completed a debut debt raising in the US private placement market for US$300 million. These funds have been used to refinance existing borrowings including the bridging finance.

Other key notes on balance sheet movements, other than as noted above, are as follows:

ASSETS AND LIABILITIES

- An increase in receivables due to higher sales volumes and prices, together with lower utilisation of the Company's receivables securitisation program.
- An increase in inventories due to higher sales volumes and raw material costs.
- An increase in deferred tax assets arising from the booking of tax losses in New Zealand and Asia due to increased certainty of recoverability.
- An increase in provision for income tax in line with increased earnings from Australian operations.

EQUITY

- The Company's first share buyback program commenced on 14 March 2003 and concluded on 13 March 2004 at which time 60,679,153 shares had been purchased leaving 732,320,847 shares on issue. The total cash cost of the buyback was $285.3 million including $0.4 million of transaction costs.

RELATIONSHIP BETWEEN DEBT AND EQUITY

The current gearing ratio, calculated as net debt over net debt plus equity, is 12.9% (2003: 2.4%). The increase in the gearing ratio has been largely driven by the acquisition of the Butler Manufacturing Company on 27 April 2004. Total BlueScope Steel Group debt outstanding at 30 June 2004 is $592.7 million (2003: $167.9 million).

Return to Concise Financial Report