Austin Engineering : Interim Financial Report 31 December 2021

For personal use only

Austin Engineering Limited

Directors' report

For the half-year ended 31 December 2021

The Directors present their report on the Consolidated entity consisting of Austin Engineering Limited and the entities it controlled at the end of, or during, the half-year ended 31 December 2021. Throughout the report, the Consolidated entity is referred to as the Group.

Directors

The Directors of the company who held office during and up to the date of this report are Jim Walker, Chris Indermaur, Sy van Dyk and David Singleton.

Financial highlights
		Consolidated
		31 December	31 December
	Change	2021	2020
	%	$'000	$'000
Continuing operations
Revenue	(6.6)	80,112	85,806
Reported EBITDA	76.4	11,461	6,496
Profit before tax	259.9	8,483	2,357
Profit after tax	202.2	6,734	2,228
Basic earnings per share (cents)	205.3	1.16	0.38
Net cash (used in)/provided by operating activities	25.0	(5,130)	(6,841)

Review of operations

A review of the operations of the Group during the half-year and the results of these operations is set out in the media statement and separate results presentation released to the market on 24 February 2022.

Going concern basis for preparation

The Directors have prepared the financial report on a going concern basis, which contemplates the continuity of normal business activities and the realisation of assets and the settlement of liabilities in the ordinary course of business.

The Directors confirm that at the date of signing the financial statements, there are reasonable and supportable grounds to believe the Group will have sufficient funds to meet their obligations as and when they fall due and are of the opinion that the use of the going concern basis remains appropriate.

Lead Auditor's independence declaration

A copy of the Auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out on page 2.

Rounding of amounts

The Company is of a kind referred to in ASIC Legislative Instrument 2016/191, relating to the 'rounding off' of amounts in the Directors' report and financial report. Amounts in the Directors' report and financial report have been rounded off to the nearest thousand dollars in accordance with the instrument.

This report is made in accordance with a resolution of Directors.

Jim Walker

Non-Executive Chairman

Perth

24 February 2022

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Tel: [phone]	Level 10, 12 Creek St
Fax: [phone]	Brisbane QLD 4000
www.bdo.com.au	GPO Box 457 Brisbane QLD 4001
	Australia

DECLARATION OF INDEPENDENCE BY DEAN JUST TO THE DIRECTORS OF AUSTIN ENGINEERING LIMITED

As lead auditor for the review of Austin Engineering Limited for the half-year ended 31 December 2021, I declare that, to the best of my knowledge and belief, there have been:

1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the review; and
2. No contraventions of any applicable code of professional conduct in relation to the review.

This declaration is in respect of Austin Engineering Limited and the entities it controlled during the period.

Dean Just

Director

BDO Audit Pty Ltd

Perth, 24 February 2022

BDO Audit Pty Ltd ABN 33 134 022 870 is a member of a national association of independent entities which are all members of BDO

Australia Ltd ABN 77 050 110 275, an Australian company limited by guarantee. BDO Audit Pty Ltd and BDO Australia Ltd are members 2 of BDO International Ltd, a UK company limited by guarantee, and form part of the international BDO network of independent

member firms. Liability limited by a scheme approved under Professional Standards Legislation.

For personal use only

Austin Engineering Limited

For the half-year ended 31 December 2021

Consolidated Financial Statements

Consolidated statement of profit or loss and other comprehensive income Consolidated statement of financial position

Consolidated statement of changes in equity

Consolidated statement of cash flows

Notes to the consolidated financial statements

Directors' declaration

Independent auditors' review report

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Austin Engineering Limited

Consolidated statement of profit or loss and other comprehensive income

For the half-year ended 31 December 2021

		Consolidated
		31 December	31 December
		2021	2020
	Notes	$'000	$'000
Revenue from continuing operations	3	80,112	85,806
Raw materials and consumables used		(11,847)	(22,775)
Changes in inventories and work in progress		(11,144)	(3,412)
Employment expenses		(26,469)	(25,116)
Subcontractor expenses		(7,320)	(11,926)
Occupancy and utility expenses		(1,580)	(1,702)
Depreciation expense		(2,564)	(2,871)
Amortisation expense		(152)	(133)
Production operational expenses		(6,918)	(7,194)
Other expenses		(3,373)	(7,185)
Finance costs		(262)	(1,135)
Profit before income tax		8,483	2,357
Income tax expense		(1,749)	(129)
Profit from continuing operations		6,734	2,228
Loss from discontinued operations	5	(950)	(1,092)
Profit/(Loss) for the period		5,784	1,136
Other comprehensive income
Item that may be reclassified to profit or loss
Foreign currency translation differences, net of tax		(2,399)	(4,137)
Other comprehensive income for the year		(2,399)	(4,137)
Total comprehensive income for the period		3,385	(3,001)
Profit/(Loss) is attributable to:
Owners of Austin Engineering Limited		5,784	1,136
Total comprehensive income for the period is attributable to:
Owners of Austin Engineering Limited		3,385	(3,001)
		Cents	Cents
Earnings per share from continuing operations attributable to the
owners of the Austin Engineering Limited:
Basic earnings per share	6	1.16	0.38
Diluted earnings per share	6	1.15	0.38
Earnings/(Loss) per share from continuing and discontinued
operations attributable to owners of the Austin Engineering Limited:
Basic earnings/(loss) per share	6	1.00	0.19
Diluted earnings/(loss) per share	6	0.99	0.19

The above Consolidated statement of profit or loss and other comprehensive income should be read in conjunction with the accompanying notes.

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For personal use only

Austin Engineering Limited

Consolidated statement of financial position

As at 31 December 2021

		Consolidated
		31 December	30 June
		2021	2021
	Notes	$'000	$'000
Current assets
Cash and cash equivalents		10,860	9,824
Trade and other receivables		33,183	39,708
Inventories	4	38,664	28,859
Current tax assets		51	459
Other receivables and other assets		11,146	11,736
		93,904	90,586
Assets classified as held for sale	5	11,417	8,312
Total current assets		105,321	98,898
Non-current assets
Property, plant and equipment		37,843	40,420
Intangible assets		11,311	11,258
Deferred tax assets		8,834	10,010
Right-of-use assets		11,021	7,522
Other non-current assets		10,165	9,240
Total non-current assets		79,174	78,450
Total assets		184,495	177,348
Current liabilities
Trade and other payables		41,596	46,942
Financial liabilities	9	30,224	14,384
Current tax liabilities		260	598
Provisions		4,921	9,037
Lease liabilities		2,528	2,427
		79,529	73,388
Financial liabilities directly associated with assets classified as held for
sale	5, 9	414	1,086
Total current liabilities		79,943	74,474
Non-current liabilities
Financial liabilities	9	-	3,914
Provisions		220	551
Lease liabilities		12,491	7,649
Total non-current liabilities		12,711	12,114
Total liabilities		92,654	86,588
Net assets		91,841	90,760
Equity
Share capital	10	154,440	154,133
Accumulated losses		(43,918)	(47,962)
Reserves		(18,681)	(15,411)
Total equity		91,841	90,760

The above Consolidated statement of financial position should be read in conjunction with the accompanying notes.

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