Brisbane Markets Limited (BML) wishes to provide guidance on the financial position of the company as at 30 June 2022 based on its preliminary unaudited financial results. There are a number of matters that are appropriate to be reported to shareholders on a preliminary unaudited basis, that will be disclosed in further detail in BML’s full financial report to 30 June 2022. Of significance are the following matters:
- BML engaged valuer, Charter Keck Cramer, to undertake a valuation of the Brisbane Markets property as at 30 June 2022. This valuation has recently been completed, and attributes a value of $425 million at 30 June 2022. BML will recognise an increase in investment property value in its statement of comprehensive income of approximately $14 million, after recognising past and future flood reinstatement costs of approximately $9.6 million.
- BML has recently finalised its insurance claim relating to the 2022 flood, with our insurers agreeing to provide a pay out of our flood policy limit of $15 million. This payout has been agreed by our insurers on the basis that the assessment process identified that the total loss from the event would exceed the policy limit for a flood event. BML is continuing the flood damage reinstatement process to all site infrastructure and tenancies, with the majority of works completed and the remaining works to be completed in the next 3-4 months. The financial impact of the flood recovery has been mostly contained within the draft 2022 financial results.
- The debt facility that BML has with Westpac Bank has an expiry date of 31 July 2022. This facility has been increased to $200 million, and extended for a further fixed term of 3 years on similar terms and conditions to the expiring facility, with an expiry date of 31 July 2025. This facility extension and increase will facilitate strategic and growth initiatives currently being progressed by BML. As at the date of this update, no further debt has been drawn down under the extended facility.
- BML is expecting that the reported net assets of the company at 30 June 2022 will exceed $260 million, reflecting the operating performance, insurance claim proceeds and recovery costs incurred, and the impact of the favourable property valuations at both Brisbane Markets and Perth Markets. BML’s net assets as at 30 June 2021 were $206 million. The increase in net assets over the past 12 months is therefore expected to exceed 25%.
BML will finalise the financial report during September 2022, after completion of the audit, with the Annual Report to be released in October 2022. All financial information included in this update is unaudited and remains subject to further review and finalisation.
Andrew Young
Managing Director and CEO
For more information regarding this notice, please contact BML on (07) 3915 4200.