Scales (SCL) AGM 2024 summary

Opening remarks and agenda

• The Chair welcomed attendees to the 112th annual meeting, highlighting the hybrid format and outlining the agenda, including financial highlights, business updates, resolutions, and Q&A.

• Voting and question procedures for both in-person and online participants were explained, ensuring inclusive participation.

• The agenda included reviews of 2023, climate-related disclosures, business updates, outlook, resolutions, and Q&A.

Financial performance review

• Underlying net profit after tax for 2023 was NZD 19 million, at the top end of guidance, despite challenges from Cyclone Gabrielle.

• Reported NPAT was NZD 5.2 million, down from NZD 19.4 million in 2022, mainly due to goodwill impairment and asset write-downs at Mr Apple.

• 2023 revenue was $565.4m, down 9% from 2022; underlying EBITDA was $67.5m, down 13%; net cash at year-end was $12.0m.

• Dividends of NZD 0.085 (8.5 cents) per share were declared, representing 63% of underlying NPAT.

• Group ROCE declined to 10.8% from 13.5% in 2022.

Board and executive committee updates

• Tony Batterton was appointed to the board in August and stood for election at the meeting.

• Nadine Tunley was appointed Chief Risk Officer, focusing on health, safety, sustainability, and compliance, and will retire from the board in August 2024.

• Emma Wheeler joined as the sixth participant in the Future Director Program.

• Board refreshment and succession program completed.