Shareholder update on franking credits and business performance just sent out.
Business sounds like it’s doing fantastically well and I’m looking forward to the September announcement on results and the next dividend.
Dear Shareholders
Announcement of FY2021 dividend franking percentage
As flagged in previous shareholder announcements, dividends paid during the year ended 30 June 2021 will be franked.
We are now pleased to confirm that a 50.0% franking percentage will be applied to all dividends paid during the year ended 30 June 2021. This franking percentage has been determined post year-end in order to maximise the franking credits distributed to shareholders.
VGW is able to retrospectively frank its dividend distributions and maximimise franking credits that are distributed to shareholders. One implication of this is that there may be a withholding tax reconciliation at the end of each financial year.
Shareholders will be formally notified of franking credits distributed via the issue of distribution statements by our share registry within approximately the next week.
As a result of the franking percentage determination, a small number of non-resident and resident TFN withholding tax may have been under-withheld from the unfranked portion of dividends paid; or over-withheld from the franked portion of dividends paid.
Any under-withheld or over-withheld tax amounts will be specified on the dividend distribution statements. For the small number of affected shareholders, please refer to the relevant shareholder action required outlined below as Annexure 1 to this announcement.
This affects a very small number of shareholders only. In all cases, shareholders should seek their own independent financial and tax advice.
Business update
This year continues to demonstrate the ability of the Group to generate meaningful operating profit and cash flow.
At the last dividend announcement in June, I was able to share some preliminary financial highlights for our group (on an indicative unaudited basis) which included our expectation of group revenue for the first time in excess of A$2 billion and operating profit for the first time in excess of A$300 million for FY21.
June was another strong month for the group, and subject to any unforeseen audit adjustments, we expect to meaningfully exceed both that revenue expectation and especially the operating profit metric for the financial year ended June 30 2021.
July, a month which is typically slightly seasonally weaker for the Group, was a very strong month on a preliminary basis - both up on June in terms of revenue and representing a new all time monthly high. July also represented one of the best ever months for the Group in terms of gross profit on a preliminary basis.
Recent trends may or may not continue into the remainder of 2021, and the recent pandemic has created an uncertain external operating environment for us all - making forecasting and short term outlooks difficult to predict.
The Group will release its full year audited financial statements during mid to late September 2021, and I look forward to providing you a detailed update at that time, and seeing you all at the Annual General Meeting which will take place in November.
I also encourage you to regularly access the trading hub for VGW on the Primary Markets platform to find the latest investor resources, company information and financial reports. These can be found here: https://www.primarymarkets.com/custom/vgw/investor-resources
As always, it is important that shareholders keep their information with our share registry, Advanced Share Registry, up-to-date including postal and email address, bank account details and relevant tax information.
Thank you again for your continued support of our business.
