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S E C T I O N 1 2 : Our Financial Review

ALLIANCE ANNUAL REP ORT 2018

C. MANAGING FUNDING IN THIS SECTION This section explains how Alliance Group manages its capital structure and working capital along with the various funding sources. C1

C APITAL MANAGEMENT Alliance Group’s capital includes share capital, reserves and retained earnings. The Board’s objective when managing capital is to maintain a strong capital base to ensure Alliance are able to undertake future growth opportunities and maximise the return to shareholders. The board considers a strong capital base is necessary to protect the company from volatility and changes in capital and operating market conditions. The board monitors forecast capital inflows and outflows, and the level of shareholding relative to shareholders’ supply to ensure that the company retains a strong capital base, with a key reference point being the shareholders equity ratio.

C2

2018

2017

2016

2015

$000

$000

$000

$000

Total equity Total assets

333,073 519,505

323,159 459,989

301,828 427,800

308,869 536,123

Equity ratio

64.1%

71.0%

70.6%

57.6%

SHARE C APITAL Group

Share capital

2018

2017

$000

$000

86,339

76,328

As at 30 September 2018 there was a share issue pending of 386,000 shares. All shares have equal voting rights and shareholders are entitled to one vote per share. The maximum shareholding is 1.35 million shares. Upon winding up, shares rank equally with regard to the company’s residual assets. Shares are issued and surrendered at their nominal value under the company’s constitution and the Co-operative Companies Act 1996. Co-operative shares may be surrendered where shareholders have not transacted with the company for five years or do not have the capacity to be a transacting shareholder.

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Profile for alliance12

Annual Report 2018  

Annual Report 2018