5 The company’s performance in respect to its compliance with its policies and operating procedures to ensure its obligations in this regard are met is reported to the Executive Committee (Exco). The company is subject to various environmental and safety regulations under either Commonwealth, State or other international legislation. The Board believes the company has adequate systems in place for the management of its environmental and workplace safety compliance and operational risks and is not aware of any material breach of relevant legal and regulatory requirements as they apply to the company other than those already disclosed in this report. LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF COMPANY In the opinion of the directors, it would prejudice the interests of the company if any further information on reasonable and material developments in the operations of the company and the expected results of operations were included herein, and the omission of such information is hereby disclosed. EVENTS SUBSEQUENT TO BALANCE DATE No significant events have occurred subsequent to balance date. ROUNDING The amounts contained in this report and in the financial report have been rounded to the nearest thousand dollars (where rounding is applicable) and where noted ($’000’s) under the option available to the company under ASIC Corporations (Rounding in Financial/Directors' Reports) Instrument 2016/191. The company is an entity to which the Corporations Instrument applies. NON-AUDIT SERVICES The directors are satisfied that the provision of non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001. The nature and scope of each type of non-audit service provided means that auditor independence was not compromised. KPMG Australia has not received or are not due to receive any amounts for the provision of non-audit services. AUDITOR INDEPENDENCE DECLARATION The company has obtained an Auditor’s Independence Declaration from KPMG Australia. The Auditor’s Independence Declaration is located on the following page. The annual financial statements which appear on pages 7 to 58 were approved by the directors by resolution dated 19 August 2024 and are signed on their behalf. GOING CONCERN AND LIQUIDITY In determining the appropriate basis of preparation of the financial statements, the Directors are required to consider whether the Group can continue in operational existence for the near future. The Company enters the new year with 86% of FY25 revenue secured despite the lower levels of work in hand of $2.6 billion. At the date of this report the Company also has $2.5 billion of opportunities (based on current contract value) that are in sole source negotiations or in Early Contractor involvement stage and therefore it is probable these will be converted into contracted projects. In addition, there are a further $3.0 billion of tenders outstanding and a further $7.5 billion tenders expected in FY25 which will provide a solid base for future growth. The Directors have reviewed the business plans and detailed financial budgets for the year ending 30 June 2025 and beyond. The construction markets of Australia, New Zealand and Built Environs are healthy, however there is a level of uncertainty. The Built Environs pipeline in social infrastructure remains strong, however Government Civil infrastructure spend in New South Wales and in Victoria (all Australian regions) is decreasing. A reducing market will increase the competitiveness in tendering for work. The Company benefits from having diversity in locations and type of work performed allowing the Company to position itself to maximise the opportunities best fit for the organisation. These detailed financial budgets and business plans that are being implemented by management indicate that the Group will have sufficient liquidity resources for the near future. The Company repaid its term debt prior to 30 Jun 24 and has no secured lenders at this date. The company therefore has no banking covenants at 30 June 2024 and did not have any breaches prior to this date. The group retains the support of its bond and guarantee providers. The Directors have considered the business plans and detailed financial budgets, including all available information, and whilst significant estimates and judgements including the impacts of the wider economic environment are always and will continue to be required, the Directors are of the opinion that the going concern assumption is appropriate in the preparation of the financial statements. S. V. Cummins Group Chief Executive Officer and Director 19 August 2024 D. J. Morrison Director 19 August 2024
RkJQdWJsaXNoZXIy Mjk0NTM=