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NOTE 11
CAPITAL MANAGEMENT
(a) Risk management
The Group’s objectives when managing capital are to:
•
•
safeguard the ability to continue as a going concern (refer to note 21(x)), so that they can
continue to provide returns for shareholders and benefits for other stakeholders, and
•
•
maintain an optimal capital structure to reduce the cost of capital.
In order to maintain or adjust the capital structure, the Group may adjust the amount of dividends
paid to shareholders, return capital to shareholders, issue new shares or sell assets to reduce debt.
During 2016, the Group’s strategy, unchanged from 2015, was to maintain a gearing ratio under 50%.
The gearing ratios were as follows:
Consolidated
Notes
2016
$’000
Restated
2015
$’000
Total Borrowings
6(c), 6(d)
726,132
1,099,831
Less cash and cash equivalents
6(a)
(107,461)
(319,937)
Adjusted net debt
618,671
779,894
Total equity
3,490,429
3,606,916
Adjusted equity
4,109,100
4,386,810
Net debt to adjusted equity ratio
15.1%
17.8%
Total borrowings include trade and other payables and the impact of amortised interest and fees.
(b) Dividends - Ordinary shares
Consolidated
2015
$’000
2014
$’000
Final dividend for the year ended 30 June 2015
of 1.03 cents (2015: 0.77 cents) per fully paid share
26,770
20,100
Interim dividend for the year ended 30 June 2016
of 2.48 cents (2015: 1.49) per fully paid share
64,489
37,300
91,259
57,400
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