Stealth Global Holdings Annual Report 2021 Table of Contents
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Annual Report For the year ended 30 June 2021 Stealth Global Holdings Ltd | ABN 25 615 518 020 An Australian Multinational Distribution Group About Stealth Global Holdings THE COMPANY A broad-line business-to-business (B2B) and business-to-consumer (B2C) distributor of industrial, maintenance, repair, operating (MRO), safety, workplace supplies and other related products and services. Headquartered in Perth, Western Australia, we provide supplies and solutions for every industry through our portfolio of five distribution businesses that extends across the end-to-end supply chain covering business, trade, retail, service and specialist wholesale. DISTRIBUTION BUSINESS MODEL Through a multichannel approach, we serve customers of all sizes focusing on customers needs, combined with an expansive in-stock product offering, value-add solutions and multichannel proposition including Sales Team, In-Store, On-Site, Online, Delivery options and Click & Collect. OUR RANGE OF PRODUCTS As a diverse operating business with multichannel offers our product categories cover industrial/MRO, safety/PPE, workplace supplies and other related products and services. We offer more than one million products across our portfolio, with 250,000+ products in stock held in our distribution centres, branch stores and on-site locations. WE SERVE ALL TYPES OF CUSTOMERS AND INDUSTRIES (BUSINESS AND RETAIL) With more than 5,500 business customers and 34,000 retail customers of all sizes, we provide customers with purchasing options and fulfillment solutions that are necessary in their everyday requirements. Customers range from a broad collection of industries including commercial, mining, resources, industrial, government, transport, automotive, agriculture, building, construction, manufacturing, engineering, trade and retail consumers. Business Customers represent a broad collection of industries that place orders through our sales representatives, in- store at our branches, online, on-site, and over the phone and by email with our internal sales team. Retail Customers order online or in-store at our branches. OUR SUPPLIERS We source from more than 2,500 suppliers, providing access to more than one million product items. Approximately 250,000 are stocked in our distribution centres, branch locations, On-site and retail stores. Stock availability with certainty of supply is essential to meet customer demand. OUR OPERATING BRANDS B Stealth Global Holdings Annual Report 2021 Table of Contents Corporate Directory 2 Our Objective is to Provide a Satisfactory Return to Shareholders 3 Business Model - The Supply Chain 4 Group Facts 5 Broad Selection Product Offering 6 Services & Solutions 7 How We Serve Customers 8 Our People 9 Chairman’s Statement 10 FY21 Highlights and Strategic Direction 12 Group Structure 13 FY21 Financial Highlights 14 Continued Transformational Period of Growth 15 FY21 Strategic & Operational Achievements 16 Continue Network Investment 17 Three Years of Strategic Events 18 Strategic Direction 20 Strategic Agenda: Focus for 2022 21 Corporate Strategy to 2025 22 Operating and Financial Review 24 Directors’ Report 34 Annual Financial Report 49 Consolidated Statement of Profit or Loss and Comprehensive Income 50 Consolidated Statement of Financial Position 51 Consolidated Statement of Changes in Equity 52 Consolidated Statement of Cash Flows 53 Notes to The Consolidated Financial Statements 54 Directors’ Declaration 93 Auditor’s Independence Declaration 94 Independent Auditor’s Report 95 ASX Additional Information - Shareholdings 99 Stealth Global Holdings Annual Report 2021 1 Corporate Directory Directors Share Registry Mr. Christopher Wharton AM Computershare Investor Services Non-Executive Chairman Level 11, 172 St Georges Terrace Perth WA 6000 Mr. Michael Arnold Group Managing Director Telephone: 1300 850 505 (within Australia) Telephone: +61 3 9415 4000 (overseas) Mr. Giovanni (John) Groppoli Non-Executive Director Company Auditor Mr. Alan Cransberg BDO Audit (WA) Pty Ltd 38 Station Street Non-Executive Director Subiaco WA 6008 Company Secretary Bankers Ms Jessamyn Lyons Commonwealth Bank of Australia 300 Murray Street Key Management Personnel Perth WA 6000 Mr. Luke Cruskall Group Chief Operating Officer Accountants and Taxation Advisors Mr. John Boland Gooding Partners Group Chief Financial Officer The Quadrant Level 9, 1 William Street Solicitors Perth WA 6000 Chairman’s Statement MDS Legal Irwin Chambers, Level 2, 16 Irwin Street Perth WA 6000 Principal and Registered Office Unit 10, 43 Cedric Street Stirling WA 6021 Australia Telephone: +61 8 6465 7800 Email: [email protected] Website: www.stealthgi.com ASX code SGI 2 Stealth Global Holdings Annual Report 2021 Our Objective is to Provide a Satisfactory Return to Shareholders Ongoing commitment to building and growing a thriving business for the future creating value for our shareholders by; 1 2 3 Driving top-line and Configuring our business Continuing to grow our bottom-line results. to meet the evolving core business offering needs of customers. ‘widest-range, best prices, stock available, supply solutions and unmatched service’. 4 5 6 Accelerate Online digital Developing our people Using operating leverage channels - ‘web traffic’, through a formal ‘learning, to grow market share more range, customer training, intern’ institute. and revenue working in experience, operational partnership with leading efficiencies. manufacturers, brands, independents and specialist suppliers. Creating Shareholder Value We welcome SGI shareholders to share, contribute and participate in our growth as we accelerate towards an emerging advantaged market position. Stealth Global Holdings Annual Report 2021 3 Business Model - The Supply Chain How we supply our customers: Access to one million products, best prices, in-stock and available, value-add supply solutions, unmatched customer service. The Supply Chain How customers place orders for products Distribution Sales Team Online In-Store On-Site Centres Delivery Click & Collect Order fulfilment channels Customers & Markets Serving more than 5,500 business customers and 34,000 retail customers of all sizes from a broad collection of industries including: Commercial Mining Resources Industrial Government Transport Automotive Agriculture Building Construction Trade and retail Manufacturing Engineering Sample selection of industries we serve. consumers 4 Stealth Global Holdings Annual Report 2021 Group Facts $69.7m 200+ 11 Total Revenue FY21 Employees Company branch store locations 21 86 23 Company on-site stores UK distributor trade and retail Independent merchants stores trade stores 250,000 2,500 1,000,000 Products stocked in our Number of Suppliers (400 key) Products available distribution centres, branch and on-site stores 6 5,500 34,000 Online Webshops Business customers Retail customers small, medium and large companies. Stealth Global Holdings Annual Report 2021 5 Broad Selection Product Offering Offering more than one million products across our portfolio – popular categories include; Industrial Power Tools Hand Tools Hardware, Building Materials Handling & Construction Glazing Workwear PPE Footwear Gloves Eyewear Safety Respiratory Electrical Workplace Packaging Cleaning Storage Automotive Truck & Trailer Buses Mining Agriculture And more 6 Stealth Global Holdings Annual Report 2021 Services & Solutions Access Stock, Anytime, Anywhere Online In-Store On-site Extensive range of industrial, We are conveniently located to Customised product and services MRO, safety & workplace help customers get what they model with manned and unmanned products. need, when they need it. onsite branch stores for customers with more complex needs. Vending Stock Hub Sales Team Vending Solutions are a secure Ideal for when immediate access A dedicated sales team who way to store and issue products to our products is needed when can provide you with expert on-site or in remote locations. operating in remote or on-site advice to help you find the right locations. product. eBusiness Technology Online EDI PunchOut With all products available on EDI facilitates a two-way Punchout electronic catalogues, our websites, we are a one-stop- electronic, paperless exchange provide quick and simple shop for all industrial, MRO, of information between us and integration to customers existing safety and workplace needs. our customer. ERP system. Customisation & Personalisation Delivery Options Embroidery Laser Etching / Custom Tapes Nationwide Delivery Engraving Our online We can customise Our nationwide network of embroidery module Help identify your your products, branches and distribution is easy-to-use, tools and other promotional centres ensure that your customisable and capital equipment materials, tapes and products are delivered on designed to save you with our laser etching packaging. time with care. time and money. service. Stealth Global Holdings Annual Report 2021 7 How We Serve Customers Business Customers represent a broad collection of industries that place orders through our sales representatives, in-store at our branches, online, on-site, and over the phone and by email with our internal sales team. Retail Customers order online or in-store at our branches. Delivery Model Digital Channels Physical Channels Website EDI/PunchOut Vending Sales Team In-store and On-Site 4% of orders 6% of orders 3% of orders 77% of orders 10% of orders Curated product Integrated software Vending and Strong technical knowledge across a info and search in customer’s inventory wide range