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Contents
Key Points
About Wattyl
Chairman's Report
Managing Director's Report
Finance Report
Review of Operations
Our People
Board of Directors
Corporate Governance
Directors' Report
    Remuneration Report
Auditor's Independence Declaration
Financial Statements
    Income Statements
    Balance Sheets
    Statements of Recognised Income and Expense
    Cash Flow Statements
Notes to the Financial Statements
Directors' Declaration
Independent Auditor's Report
Stock Exchange and Listing Requirements
Shareholder Communications
Group Results - Five Year Summary
Corporate Directory
Downloads

chairman’s report
The past financial year presented a number
of challenges to Wattyl.
Australia and New Zealand experienced continuing difficult trading
conditions as housing activities in both markets remained at the
bottom of the cycle for the fourth consecutive year.
“Your Board
continues to be
committed to a
high standard of
accountability with
good corporate
governance.”

result
The profit after tax from continuing
operations (before ‘non recurring’
items) for the year was $11.6 million,
this compares with last years result of
$16.4 million. This is a disappointing
result for the group and is a reflection
of the continuing low activities within
the Australasian building sector,
in particular in New South Wales.
Furthermore the Australian market
has experienced increased competitive
activity and a changing corporate retail
environment, with one of the corporate
retailers announcing its intention to
introduce imported paint into its
product offering. These changes will
have an impact on all of the local paint
manufacturers moving into the new
financial year.
Reported net profit for the year
was $11.7 million, compared with
$16.6 million last year.
Earnings per share from continuing
operations, before ‘non recurring’ items
were reported at 13.6 cents, compared
to 19.3 cents in the previous year.
While not yet reflected in the financial
result, a number of key initiatives have
been completed during the past year,
including development of a complete
new colour selection system, a new
ultra premium interior paint offer as
well as a new computer point of sale
system for all of our company-owned
stores, which will provide Wattyl with a
competitive advantage moving into the
new financial year.
dividend
Your directors declared a fully franked
final dividend of 3 cents per share,
bringing fully franked ordinary declared
dividends for the year to 10 cents per
share, approximately 73% of net profit
after tax. While the payout ratio is lower
than recent years, we believe that with
the current uncertain economic and
trading conditions, coupled with an
increased capital demand to complete
some of our key projects a prudent and
conservative approach to cash
management is warranted. The bonus
share plan will continue to apply without