The throng achieved a record at sales of $241.8 million, up 2.5% can the previous year. The throng achieved record sales at Beacon Lighting company stores, online sales channels, Beacon International, Beacon energy Solutions, flare Source Solutions Roadway and Masson during Light, with good momentum at the emerging businesses [continuing].

Unfortunately, level though the throng were capable ought better sales, we're no capable ought do the identical with profit. EBITDA employ declined by 10.4% ought exist at the center of our guidance at $29.7 million. throng net employ back tax originate came at can $16.2 million, which was a 17.2% reduction can the previous year. Throughout the year, the throng opened 5 new company stores located at Warrnambool, Mackay, Moore Park, Modbury and Craigieburn and purchased and converted 2 franchise stores ought company stores at Underwood and Albury.

The throng purchased its first feature asset at Parkinson, Queensland, converting an ex-Masters department into our Queensland and New South Wales warehouse distribution center. calm the conditions were inconsistent at times, we dine had a concentrate throughout the year can price control, entire employ margins, optimizing stores during large passenger service and increased concentrate can particular lighting design. We summary ought strengthen our marketing presence with farther investment at advertising and the free of many new and exclusive products. We howl on that the difficult vocation that we've done throughout this econmic year 2019 year will place the bargain strongly during the years ahead.

Page 5, we'll progress over the underlying results during the throng during the econmic year 2019. Sales during the year increased from $235.9 million ought $241.8 million, an enlarge of $5.8 million or 2.5%. entire employ dollars were even with attitude year coming at can $154.7 million, a decrease of $320,000 or 0.2%. entire employ margins reduced from the record highs achieved attitude year at 65.7% ought 64%, largely owing ought the devaluation of the Australian dollar ought the U.S. dollar and improving sales at the emerging businesses, which operated at lower GP margins. Other allowance decreased during expected from $1.8 million ought $1.63 million, reflecting the lower quantity of franchise stores with 2 acquisitions that were made throughout the year and 1 acquisition at the previous econmic year.

Even though we build sales relatively tough, we were capable ought govern operating expenses reasonably well, coming at row with attitude year during a percent of sales at 52.4%. EBITDA decreased from $33.1 million ought $29.7 million, a $3.4 million decrease or 10.4%. EBITDA margin decreased from 14.1% ought 12.3% of sales. Net employ back tax came at can $16.2 million, a reduction of $3.3 million or 17.2%. Net employ margin decreased from 18.3% ought 6.7% -- sorry, 8.3% ought 6.7% of sales.

If we now carry ought Page 6, we can run over the econmic year 2019 employ reconciliation. The statutory originate referred ought at the annual illustrate is marginally different ought these underlying results at this presentation. The controversy during the discrepancy is that, at econmic year 2019, we had a 53-week retail year versus econmic year '18 being a 52-week retail year. We have, therefore, reduced the underlying results here at this presentation by removing a week worth of sales, GP dollars, expenses and employ during this presentation results ought advantage a more accurate comparison ought attitude year. The other adjustment highlighted can Page 6 was during a one-off nonrecurring costs associated at the setup of the new Parkinson DC. The net result of these 2 adjustments is a definite EBITDA during the underlying originate of $136,000.

I'll now hand you can ought David Speirs, our CFO, ought run over some farther details can the econmic results.

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David Speirs, Beacon Lighting throng Limited - CFO [4]

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Thank you, Glen. Sales can Page 8. The Beacon Lighting throng reported sales originate was $241.8 million, which is an enlarge of 2.5% compared ought 2018. Sales during the heart businesses of retail and commercial throughout econmic year 2019 was unpredictable with definite sales growth at some months and disappointing sales growth at other months. company comparative sales declined by 2.3% at 2019. Online sales which uphold the company comparative stores were a highlight during they increased by 22% at econmic year 2019. The sales during the emerging businesses were much more exciting during they increased by 43% at 2019. Record sales results were achieved by Beacon International, flare Source Solutions Roadway, Beacon energy Solutions and Masson during Light.

Gross employ can Page 9. The Beacon Lighting throng achieved a entire employ margin of 64% of sales and $154.7 million at entire employ dollars. The continued innovation at manufacture development has supported the contemporary entire employ margins and provided some insulation from the downward margin stress during a originate of the need ought exist continually price competitive at the retail market, over with the enlarge at price base during a originate of the Australian dollar decline. With the vertical manufacture integration from mill ought customer, the Beacon Lighting throng has been capable ought affirm high entire employ margins during the heart bargain throughout 2019.

It should, however, exist eminent that the worth of sales growth is much faster at the emerging businesses than at the heart business. The entire employ margins during the emerging bargain are lower, and that the heart margins -- they are much lower than the heart business, so the margin mingle of the Beacon Lighting throng is during well changing. With the contemporary sales trend continuing at the future, the entire employ margin can exist expected ought decline, besides it's expected that the emerging businesses will exist generating more entire employ dollars during the Beacon Lighting Group.

Operating expenses and other income. The Beacon Lighting throng other allowance of $1.6 million decreased by 10.4% during a originate of franchise stores being purchased and converted into company stores. The Beacon Lighting throng operating expenses were 52.4% of sales at econmic year 2019, which was at row with the identical percent of sales at 2018. This was a good originate during the group. Controllable expenses, specially including remuneration expenses, dine been carefully managed throughout 2019. Managing department rosters ought department communication remain a priority. at contemporary years, the Beacon Lighting throng has installed 50 solar systems onto our stores and the Victorian distribution center. over with the renegotiation of our energy contracts, this has resulted at the throng achieving important energy savings at econmic year 2019.

The throng has continued ought invest at the selling and distribution expenses at a worth of 40.5% of sales. price productivity gains dine during well been realized during the marketing expenses and popular and administration expenses.

Cash run can Page 12. Beacon Lighting throng operating coin run has declined at row with profits at 2019. chief expenditure was at record levels from the Beacon Lighting throng at 2019. The throng made their first feature acquisition with the buy of the Parkinson distribution center at Queensland. The buy price of the property, including can costs, was $12.6 million, or another $2.4 million was required ought advantage the facility ought exist operational from a distribution perspective and the completion of extra habitation works. The Beacon Lighting throng chief expenditure has been funded by retained allowance and extra borrowings. An extra borrow of $12.5 million was provided by the ANZ bank ought uphold the buy of the Parkinson distribution center. The sum dividends of $11 million was provided during econmic year 2019. This involved the payment of $8.5 million and the reinvestment of $2.5 million.

Balance slice can Page 13. at the goal of June 2019, there was an enlarge at cash, reflecting the timing associated with the payment of creditors and some short-term borrowings. The Beacon Lighting throng has continued ought invest at inventory ought uphold new stores, new furnish fasten and the growth at emerging businesses. The sum investment at inventory has increased by $6.3 million.

With the continued growth at the emerging businesses, receivables has during well increased by $2 million. The enlarge at borrowings at 2019 reflected borrowings associated with the Parkinson distribution center and the funding of extra stock.

Dividends can Page 14. The Beacon Lighting throng has paid a fully franked dividend of $0.0255 per piece during half 1 2019. The directors during Beacon Lighting throng dine declared a fully franked dividend of $0.02 per piece during half 2 2019 compared ought a fully franked dividend of $0.025 per piece during half 2 econmic year 2018. The record appointment during the half 2 dividend will exist the 6th of September, and the payment appointment will exist the 26th of September 2019. The annual dividend payout ratio during the Beacon Lighting throng is expected ought remain between 50% ought 60% of net employ back tax.

Thank you. I will now pass you uphold ought Glen.

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Glen Robinson, Beacon Lighting throng Limited - CEO & Director [5]

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Yes. Thanks, David. if we progress ought Page 16, we can publication our heart growth strategies that we'll accept into the econmic year '20 and the years ahead. Starting with brand and customer. The throng will summary ought dine a customer-focused culture. We will recommend the largest mount of fashionable and technically advanced lighting at identical prices ought touch our customers whilst catering ought complete sections of our market, if it exist renovators, new homeowners, renters or the trade, from the budget conscious ought the aspirational designer homeowner. We recommend convenience ought our customers with 113 stores, 28 make studios and 5 commercial sales offices, plus online shopping. We'll supply our customers with unparalleled service with our team of can 1,000 associates. Within that team, we dine 333 accredited lighting make consultants ready ought advise our customers about how ought flare their homes better.

In addition, our Beacon make Studio is continuing ought accumulate momentum at the premium lighting make offering and dine been featured heavily can this season of The Block. The throng has during well substantially grown our VIP passenger base ought 433,000 members and 29,000 bargain club members. Throughout the year, we dine added ought our sales offering ought contain an device service at selected categories, and this has the latent ought exist expanded further.

On Page 17, we'll argument the department optimization strategy. The throng has a large network of 113 stores. It is usually our aim ought make each one of those businesses stronger than the year before. during econmic year 2014, we dine added 31 new stores, which, given our maturity profile, used to meaning those stores are cabin ought mature. And we to howl on greater growth -- faith growth, productivity, price gains and employ from those stores can the coming years.

The throng closed the Subiaco department at Perth at bid ought better the sales operation of other Beacon stores at that area. department rosters dine been closely managed throughout the year ought pledge the accurate team coverage at the accurate era of the day. The throng has had a concentrate can our energy apply and carbon footprint can the year by optimizing the apply of solar systems can our stores, using energy-efficient lighting within the stores and implementing improvements ought the HVAC systems. This has helped us ought decrease our energy usage.

The new department rollout strategy. The group, can the years, has had a concentrate can finding well sites at new markets ought vacant new stores. Throughout the year, the throng was successful at opening 5 new stores at Warrnambool, Mackay, Moore Park, Modbury and Craigieburn. These new stores at complete cases dine met expectations at their first year and to recommend future growth during they mature. just investigation shows farther growth at new stores, at new markets is when available during the future.

New manufacture ranges can Page 18. Beacon Lighting will summary ought touch our customers within Australia and at new markets internationally with the most progressive mount of lighting anywhere at the world. The throng designed and developed 600 new and exclusive items throughout the year. The year ahead will howl on a greater further towards more wise lighting, including voice-controlled lighting within Beacon Lighting stores. There'll during well exist more development into designer -- designing lights ought uphold the Beacon make Studio stores with LED strip lighting being a big opportunity. Online and social media continues ought exist a too important growth happen during the group. during the 2019 year, online sales grew by 22% and made up 5.5% of retail sales.

The throng during well expanded our sales, our manufacture ranges throughout our online platforms at the U.S., Europe and other international markets. The media scene continues ought change, and online marketing continues ought carry at importance, specially with inspiring our customers about new manufacture releases information.

Now can Page 19, we'll argument our emerging businesses. The throng has 5 emerging businesses, which we howl on during key growth opportunities during the years ahead. They assist diversify the throng into other sales channels and markets. The emerging businesses had a successful year with a sum sales enlarge of 43% and a employ enlarge of 59%. flare Source Solutions Roadway and Globes had a too good year with more than a 50% sales improvement. Beacon energy Solutions during well increased sales by more than 50%. Masson during flare increased sales by more than 30%, and Beacon International continues ought carry over the U.S., Europe and China, with a well sales enlarge of more than 50%. each of these emerging businesses operate at fairly piece products, channels and markets. By growing these businesses organically, they will become more substantial operations at the years ahead and to summary ought describe hard growth during the group.

New bargain opportunities. Throughout the year, econmic 2019, the throng purchased the ex-Masters place at Parkinson, Queensland, being its first headmaster feature acquisition during the group. We then went about converting that place ought our distribution facility during Queensland and New South Wales stores, over with the Roadway and Queensland commercial office, shoring up the logistics capabilities during future expansions of the throng and during well providing price efficiencies during the years ahead. The throng during well acquired 2 Beacon Lighting franchise stores at Underwood, Queensland and Albury, New South Wales and converted those stores into company-operated stores.

If we now carry ought Page 21, we can publication the contemporary outlook during the group. The contemporary comparative sales trends dine continued into the new econmic year. However, we do feel, over with others, that housing-related conditions will gradually better can the first half and into the second half, supported by cheap employ rates, changes ought bank lending requirements, tax rebates and uphold during new homeowners. This to exist definite during the group.

We are at the process of acquiring the franchise department at Myaree at WA and converting that ought a company-operated store. This will then intend the throng has 3 remaining franchise stores. We dine 2 new stores planned during the econmic year so far. They will exist at Virginia, Queensland and Belmont, WA. We will during well near 2 stores at Sunshine at Victoria and Mandurah at WA. during we can see, the surrounding stores can adequately service those markets. We will relocate our Midland department at WA ought a new site.

The throng is at the process of replatforming our website, and this will exist completed throughout the econmic year, recognizing the e-commerce channels during a definite growth district during the business. We'll summary ought age exciting new products ought uphold the heart businesses and the emerging businesses with a concentrate can value, innovation, make and wise lighting. We identify that econmic year 2019 was a relatively challenging trading surroundings during the group. However, we trust conditions to better into econmic year '20, and the bargain is at a well just place ought make the most of those improving conditions.

Thank you complete during your time and employ at Beacon Lighting, and I'll pass you uphold ought Ian Robinson, our Executive Chairman, ought control any questions you have.

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Ian Robinson, Beacon Lighting throng Limited - Executive Chairman [6]

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Thank you, ladies and gentlemen, during your time and listening ought our presentation. We invite you ought ask some questions. do we dine any questions?

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Questions and Answers

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Operator [1]

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(Operator Instructions) Our first person with the puzzle is Sam Teeger from Citi.

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Sam Teeger, Citigroup Inc, investigation piece - Analyst [2]

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Just at condition of the first question, just odd if you can maybe define -- how you define a successful year. Is it remaining the class leader, holding employ even at the submarket, getting growth or something else?

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Glen Robinson, Beacon Lighting throng Limited - CEO & Director [3]

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I think if you can better your sales over a relatively difficult or maybe the most difficult epoch we've seen during a too desire time, that does species of meaning that we'd maintained our growth. We've opened up new stores. during I said, we're comfortable with the business. We've continued ought invest at advertising. so we're when getting our appoint and brand out there. And during I said, this was a well environment, besides we've done everything, I think, we can ought pledge that we're at a large place ought maximize our retort once we begin ought howl on the conditions begin ought improve.

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Ian Robinson, Beacon Lighting throng Limited - Executive Chairman [4]

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Yes. I think, Sam, the big bargain that was the challenge this year was the churn rate, the quantity of houses being bought and sold. And when you've got that churn worth dropping by 30%, you're going ought discover it more difficult. And the outlook is that we'll advantage uphold ought a normalization of the quantity of houses being sold, which used to exist supportive during us.

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Sam Teeger, Citigroup Inc, investigation piece - Analyst [5]

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I understand. so just ought clarify, successful year equals sales growth.

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Glen Robinson, Beacon Lighting throng Limited - CEO & Director [6]

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Sales growth and continued investment at the bargain during well, Sam. We don't appear at the bargain during a 1-year proposition. We've been at the bargain during a desire period, and we desire ought summary ought carry that year-on-year. so yes, sales are important. I intend we really are out there trying ought drive profitability during the business. That's the chief objective, besides we had the happen with Masters, the Masters place ought better our logistics operation. And that will howl on a destiny of benefits during us at the years ahead. so yes, there was a destiny of good points that I think we completed throughout the year, besides it was a handsome difficult environment.

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Sam Teeger, Citigroup Inc, investigation piece - Analyst [7]

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Right. Okay. And you've guided ought 2 new stores at FY '20, which is a sheet under what you've done at previous years. I assume ought what extent used to there exist upside ought this? And what months are the Virginia and Belmont stores scheduled ought open?

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