5 market sectors of education, healthcare and recreation. DIVIDENDS A dividend of A$7.0 million (2024 – A$3.4 million) was declared and paid during the year ended 30 June 2025 to the parent company shareholder. SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS There were no significant changes in the state of affairs of the company other than that referred to in the financial statements and notes following. In addition to the items discussed under going concern and liquidity, refer to note 27: Events after the reporting period. INDEMNIFICATION AND INSURANCE OF DIRECTORS AND OFFICERS During the financial year the company indemnified and paid an insurance premium in respect of a D&O policy insuring the directors and officers of the group companies for certain liabilities and legal costs and expenses that may be incurred by those individuals in their capacity as directors or officers, to the extent permitted by law. The contract of insurance prohibits disclosure of the amount of the premium paid by the company. SAFETY AND ENVIRONMENTAL REGULATIONS The company is committed to the highest standard of environmental and workplace safety performance reasonably practicable. 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 sheet 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 (A$’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 the 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 [59] were approved by the directors by resolution dated 18 August 2025 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 76% of FY26 revenue secured despite the lower levels of work in hand of A$2.1 billion. At the date of this report the Company also has A$1.97 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. From these, post year end, new work won in New Zealand and Pacific Islands amounted to $500 million. In addition, there are a further A$1.9 billion of tenders outstanding and tenders in excess of A$8.0 billion expected in FY26 which will provide a solid base for future growth. The Group has a negative current ratio at 30 June 2025, with current liabilities exceeding current assets by $27.2 million. Included in the current liabilities are employee entitlement provisions (non-cash) which based on prior experience, remain relatively stable. Also included in the balance are non-cash general project provisions. In addition, cash balances are at record highs, and profit and cash are forecast into FY26, meaning that the current ratio is forecast to normalise back to positive balance . The Directors have reviewed the business plans and detailed financial budgets for the year ending 30 June 2026 and beyond. The construction markets of Australia, New Zealand & Pacific Islands and South East Asia are healthy, however there is a level of uncertainty. The Built Environs pipeline in social infrastructure remains strong, however Government civil infrastructure spend continues to decrease in New South Wales and in Victoria (all Australian regions). 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 has no banking covenants for 30 June 2025. The Group retains the support of its lenders, guarantee providers, and insurance bonding 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. A.H. Macartney Group Chief Financial Officer and Director 18 August 2025 S. V. Cummins Group Chief Executive Officer and Director 18 August 2025
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