FOR THE YEAR ENDING 30 JUNE 2017
SRG LIMITEDANNUAL GENERAL MEETING
10:30am - 15 November 2017
River Room, Royal Perth Yacht Club, Australia II Drive, Crawley WA 6009
CHAIRMAN'S REPORT 02
OUR RESULTS 06
OUR BUSINESS 07
YEAR IN BRIEF 08
MANAGING DIRECTOR'S REPORT 09
OUR BOARD 12
OUR LEADERS 14
OUR PROJECTS 16
DIRECTORS' REPORT 28
AUDITOR'S INDEPENDENCE DECLARATION 41
CONSOLIDATED STATEMENT OF PROFIT OR LOSS 42
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME 43
CONSOLIDATED STATEMENT OF FINANCIAL POSITION 44
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY 45
CONSOLIDATED STATEMENT OF CASH FLOWS 46
NOTES TO THE FINANCIAL STATEMENTS 47
DIRECTORS' DECLARATION 82
INDEPENDENT AUDIT REPORT 83
SHAREHOLDER INFORMATION 89
FINANCIAL OVERVIEW 91
SRG Limited ABN: 57 006 413 574
BRING US YOUR IMPOSSIBLEWe are an Australian complex services company. We solve the challenging and difficult problems that others can't. Our vision is to make the complex simple for our customers.
We have people working across Australia and the world bringing our unique blend of innovation, precision, technical excellence and safety to every civil, mining and building project we touch.
We are not afraid to challenge what is considered possible.
DISCOVER OUR INNOVATIONS
SRGLIMITED.COM.AU
CHAIRMAN'S REPORT
FY17 - A YEAR OF SOLID PROGRESSIt is my pleasure to open the 2017 annual report, following a year in which SRG took another major step toward its ambition of leading the market.
On behalf of my fellow directors, and the entire SRG team, we continue to offer our thoughts and sincere condolences to the friends and family of Nathan Beesley, whose life was tragically lost
in a significant land slide at a mine site earlier this year. Our resolve around Zero Harm is greater than ever and we continue to drive a strong safety culture across all parts of our business.
DRIVING IMPROVEMENT AND GROWTH
Together with our focus on Zero Harm and on further embedding the values and culture established within the Foundational Phase of our business strategy, the SRG team took steps to drive further growth for shareholders in FY17, in the Development Phase of our strategy.
We continue to deliver growth in the Australian operations of our business and we commenced investing in our international expansion program with positive early signs. During the period we opened offices in Hong Kong and New Zealand and as a result secured a major international project in Kuwait with one of our key client partners. It is this partnership approach that will continue to drive our international expansion program.
We delivered the world's largest and most complex dam anchors to stabilise the Hazelmere Dam in South Africa as well as delivering crusher pockets in Panama for First Quantum.
Looking ahead, we are well positioned in Hong Kong to secure contracts for
2018. Further to our Kuwait win, we are refocusing in the Middle East and are starting to look more closely at a number of opportunities which exist in the North America market.
During FY17, the international business represented approximately 9% of overall revenues. This number will increase
as we continue grow our international operations as a key plank of the Development Phase of our strategy.
We continue to evaluate M&A opportunities that complement what we do or provide vehicles for our international expansion and anticipate further activity in this area in FY18.
We will continue to take a disciplined and strategic approach to the assessment of M&A opportunities
to ensure that they add value to shareholders.
GROWING SHAREHOLDER RETURNS
The full year saw a 25% increase in our
Net Profit Before Tax (NPBT) result to
$11.6 million, compared with the NPBT of $9.2 million in the prior period. The Board has declared a final fully franked dividend of 4 cents per share (cps), with a record date of 13 September 2017 and payment date of 13 October 2017. This brings the total dividends declared for FY17 to 7 cps (up 16.7% on the 6 cps in FY16.)
PERFORMANCE AND INCREASED OUTREACH LEADS TO STRONGER INVESTOR RELATIONSHIPS
During the year, the market again recognised SRG's strong performance with the share price increasing 33% from $0.98 per share on 1 July 2016
to a close of $1.30 per share on 30 June 2017. We have significantly outperformed the market in terms of growing SRG's value. Looking back three years from 30 June 2017, our market capitalisation had grown 2.3 times to $83.4m.
FOUNDATION 2015 | DEVELOPMENT 2016-2019 | MARKET LEADERSHIP 2020+ |
Develop vision / strategy Drive Zero Harm Right structure / capability Develop brand / value proposition Rigorous review mechanisms in place Formalise relationships with key stakeholders Drive improvement / efficiency Resolve legacy issues | Execute strategy Projects delivered above green sheet Secure specialised civil projects of scale Organic growth in target markets Growth in complementary services / markets Selective acquisitions to accelerate growth Brand recognition | Zero Harm industry leader Global complex service partner of choice Strong brand Employer of choice ASX top 200 Consistent performance Above market returns Diversified international specialist contractor |
02 SRG Annual Report 2017
SRG Limited published this content on 28 August 2017 and is solely responsible for the information contained herein.
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