This year, we’ve proven that by working together, we emerge stronger as we adapt to the new normal.
We’re also very proud that in such an uncertain year, Capricorn again managed to return significant value to our Members. We credit this to the adaptability and innovation of our team, the skilful direction of our leadership and the ongoing loyalty of our valued Members.
The strength of your determination and resilience and your faith in our industry are demonstrated in our end-of-year results. Capricorn is a Member-owned organisation so our results are your results, and we cannot be prouder to announce them.
Member purchases from Preferred Suppliers reached $2.93 billion this financial year, up 13% on 2021’s results. Capricorn’s overall profit after tax was $17.4 million.
More than $43.35 million in Capricorn Rewards Points was earned, a trade rebate of $15 million was approved to be paid to Members for trade account purchases made throughout the year and a 5% dividend has been declared representing a $72.5 million total return for FY22. The trade rebate will be issued as Rewards Points on eligible Members’ September 2022 statement..
While the dividend component of our returns is slightly lower than previous years given challenges in economic conditions, it is still a comparatively a strong yield compared to market. The overall distribution represents the highest return we have ever provided to our Members. The trade rebate and Rewards Points reward those Members who maximise the spend on their trade account which contributes to the overall success of Capricorn. These distributions more than make up for a slightly lower dividend yield.
In calculating the value of our returns to Members, Capricorn considers both monetary and non-monetary benefits. We call it “Member Value Return”.
This year, we generated Member Value of $63.3 million, which resulted in a Member Value Return of 22.3%. That ultimately means that for every dollar invested in Capricorn, we have created a 22.3% return.
Our protection division put in another strong performance this year, despite widespread flooding across eastern Australia leading to $37 million claims lodged as at 30 June. Not only did Capricorn Risk Services write $99.6 million in gross protection for Capricorn Mutual Limited but eligible Mutual Members shared a loyalty rebate of $4 million.
It’s the second time in the Mutual’s history that a rebate has been declared. Last year, eligible Mutual Members shared in a $6 million rebate, with those New South Wales and Queensland floods making the difference between last year and this year. While the rebate might be a little lower, we’re immensely proud of our role in helping Members affected by the flooding get back on their feet as soon as possible.
In October, you will receive your Capricorn Wealth Certificate. This certificate outlines any Capricorn Rewards Points, dividends, trade rebate, and Capricorn Mutual Limited Member Loyalty Rebate you have received over the past 12 months. You will receive an email notifying you when your Wealth Certificate is available. Once your Wealth Certificate is available, you can access it by logging into the myCAP Portal using your shareholder number.
Once you have seen all the hard-earned points on your Wealth Certificate, login to capricorn.coop/rewards to check your points balance and discover all the fantastic products available through Capricorn Rewards**.
Past performance is no indication of future performance and returns are not guaranteed.
Shares are issued by Capricorn Society Limited (ACN 008 347 313). No offer of shares is made in this article or publication. An offer of shares will only be made in, or accompanied by, Capricorn’s Prospectus and any supplementary prospectus which is available on request or may be viewed at www.capricorn.coop under “Corporate Documents.” Before making any decision to apply for shares you should consider the Prospectus and any supplementary prospectus. Any application for shares must be made on the application form in or accompanying the Prospectus.
** Participation in the Capricorn Rewards program is subject to the Capricorn Rewards Terms and Conditions which can be found at www.capricorn. coop/terms-conditions.
