Adelaide Brighton (ABC) 2015 AGM Report

Company/ASX Code : Adelaide Brighton Limited (ABC)
Venue :
10am Intercontinental Hotel Adelaide, South Australia
Monitor : Mr Stefan Landherr
AGM Details / NoM : Wednesday 27th May, 2015
# of Attendees : 58 shareholder/proxyholders plus 25 visitors
# Holdings represented by ASA : 174
Value of Proxies : $8.8 million
# Shares Represented by ASA : 1.8 million
Market Capitalisation : $3.1 billion

Steady as a rock

The AGM was a very sedate affair, with only one questioner apart from the ASA. The shareholders were clearly content with the company’s solid performance in 2014; namely revenue, profits, and dividends all up by between 5% to 9%.  

The Chairman outlined the key events during 2014 and forecasted similar performance in 2015, noting that recent acquisitions were on track to being value-accretive. The new CEO gave a quite detailed overview of the company’s widespread operations.

We informed the meeting of our proxy holdings and thanked the Chairman for the pre-AGM meeting. When asked by us what was the company’s sustainable competitive advantage, the Chairman gave a comprehensive answer: highlighting the low-cost operations, the high-grade assets, the geographic spread, the clinker import supply, and the overall vertical integration strategy.

The director seeking re-election, Mr Raymond Barro, gave a short and convincing address in support of his candidacy, and we stated that we supported his re-election. When we asked about handling of Mr Barro’s potential conflicts of interest, the Chairman referred to the relevant Board protocol and gave practical examples.

On the Remuneration Report, we pointed out that giving STI bonuses in cash was against ASA;s voting guidelines but that, on balance, we supported the resolution. We also referred to the suggestions in our voting intentions for improvements to the remuneration scheme.  We stated that we were available for further engagement at an appropriate time, and the Chairman agreed to this.

Proxy voting was overwhelmingly in favour of both proposals with percentages above 98%. Both proposals were then adopted by show of cards, unanimously as far as we could tell. The Chairman’s and CEO’s addresses are available on the company’s website.

This company is monitored by Mr Stefan Landherr, assisted by Mr Malcolm Keynes and Mr Bob Ritchie.