RIVCO AUSTRALIA LTD — Annual Report 2020

Feb 25, 2021

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APPENDIX 4E (UNAUDITED)

ASX PRELIMINARY FINAL REPORT FOR THE YEAR ENDED 31 DECEMBER 2020

1 REPORTING PERIOD

Reporting period “Current period” From 1 January 2020 to 31 December 2020 Previous corresponding period From 1 January 2019 to 31 December 2019

2 RESULTS FOR ANNOUNCEMENT TO THE MARKET

				$,000
Revenue from ordinary activities	down	59%	to	39,608
Proft (loss) from ordinary activities after tax attributable to members	up	17%	to	8,696
Net proft (loss) for the period attributable to members	up	17%	to	8,696
		2020		2019
Net asset value per share		$1.205		$1.190
Net asset value per share at fair market value		$1.622		$1.761

During 2020 the Company paid two dividends to shareholders. A final dividend of 2.8 cents per share franked to 100% on 30 March 2020 and an interim dividend of 2.9 cents per share franked to 100% on 30 October 2020.

	Record date	Date payable	Amount per security	Franked amount per security
Current year
Final dividend	16 March 2020	30 March 2020	$0.028	$0.028
Interim dividend	16 October 2020	30 October 2020	$0.029	$0.029
Previous year
Final dividend	13 March 2019	27 March 2019	$0.026	$0.026
Interim dividend	3 September 2019	18 September 2019	$0.027	$0.027

Commentary on results for the period

During the period ended 31 December 2020, the Company:

• Delivered a profit before interest and taxes of $16.65 million (2019: $12.88 million)

• Increased visible leasing revenue to $8.95 million (2019: $5.76 million)

• Paid two fully franked dividends totalling $0.057 cents per share; and

• Provided Shareholders with targets for the next four dividend payments.

Pricing on the Company’s permanent water portfolio has continued to stabilise in what has been a challenging time for the global economy, reaffirming that water as an asset class can continue to perform well even in times of uncertainty.

The Net Asset Valule (“NAV”) from a Fair Market Value perspective at 31 December 2020 was $1.62 which has decreased from $1.76 at 31 December 2019 on the back of wetter forecasted conditions and a fall in high security permament water prices from the all time highs experienced in early 2020.

At 31 December 2020, the Company is carrying $68.62 million (or $0.57 per share) of unrealised capital gain on the water portfolio. This is excluded from the statutory financial statements due to the application of Australian Accounting Standards.

The NAV of the Company in accordance with Australian Accounting Standards (which excludes unrealised gains) at 31 December 2020 is $1.21 per share (31 December 2019: $1.19 per share).

DUXTON WATER LIMITED ANNUAL REPORT • page 79

DUXTON WATER LIMITED ACN 611 976 517

The statutory NAV position of the Company includes accumulated impairment losses of $0.211 million across the Company’s water asset portfolio.

Fair value adjustments on the Company’s interest rate swap arrangements of $1.99 million have also been included in the statutory NAV. These fair value adjustment reversals on the interest rate swap arrangements will positively impact the Statement of Profit or Loss and statutory retained earnings of the Company.

31 December 2020	Per Company Statement	Per Fair	Variance
	of Financial Position	Market Value*
	$’000	$’000	$’000
Assets
Permanent water entitlements	239,819	308,434	68,615
Temporary water entitlements	10,164	10,829	665
Net current and deferred tax assets (liabilities)	(284)	(21,667)	(21,383)
Net other assets (liabilities)	(314)	(314)	-
Net non-current assets (liabilities)	(105,292)	(103,300)	1,992
Total net assets	144,093	193,982	49,889
Net asset value per share	$1.205	$1.622	$0.417

* Fair Market Value is evaluated on a monthly basis by the Company’s independent valuer “Aither Pty Ltd”. It is a non IFRS measure that is not reviewed or audited by the Company’s auditor.

3 DIVIDENDS

31 December 2020	Amount per security	Franked amount per	Amount per security
		security at 30%	of foreign source
			dividend cents
Final dividend(s)
Current year	$0.028	$0.028	-
Previous year	$0.026	$0.026	-
Interim dividend(s)
Current year	$0.029	$0.029	-
Previous year	$0.027	$0.027	-

On 26 February 2021, the Director’s announced a final dividend of 3.0 cents ($0.030) per ordinary share franked to 100% with a record date of 16 April 2021 to be paid on 30 April 2021.

4 DIVIDEND REINVESTMENT PLAN

The Board has determined that the Dividend Reinvestment Plan (DRP) will continue to operate for the final dividend for the 2020 financial year (payable 30 April 2021). Participants in the DRP are entitled to a 3% discount to the share price (based on a 5-day VWAP prior to the record date, as determined in accordance with the DRP Rules). The last day for elections under the DRP is 19 April 2021.

5 NET TANGIBLE ASSETS PER SHARE

	31 December 2020	31 December 2019
Net tangible assets per ordinary share ($)	(0.80)	(0.74)
Net assets per ordinary share ($)	1.205	1.190

6 CONTROL GAINED OR LOST DURING THE PERIOD

Not applicable

7 ASSOCIATES AND JOINT VENTURES

There are no associates or joint venture entities.

8 AUDIT QUALIFICATION OR REVIEW

This report is based on the Financial Report for the period ended 31 December 2020 which is in the process of being audited.

DUXTON WATER LIMITED ANNUAL REPORT • page 80

DUXTON WATER LIMITED ACN 611 976 517