Acrow Group Annual Report 2022

FY2022 Annual Report · Acrow Group
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ASX Announcement 

27 September 2022 

FY22 ANNUAL REPORT RELEASE 

Acrow Formwork and Construction Services Limited (ASX: ACF) (“Acrow” or “the Company”) is 
pleased to release the Annual Report for Financial Year 2022. 

As noted at the time of the FY22 results release (23/08/22), the new financial year has 
commenced very strongly both in terms of actual trading results and secured new hire contracts, 
with the result in this important lead indicator up 97% on the same time last year. 

We look forward to providing an update at the Annual General Meeting, to be held on the 15th of 
November 2022. 

About Acrow 

-ENDS- 

Acrow Formwork and Construction Services Limited (ASX: ACF) provides engineered formwork, 
scaffolding and screen systems solutions as well as in-house engineering and industrial labour 
supply services to its construction sector clients.  

Acrow is made up of three distinct business divisions: Acrow Formwork and Scaffolding Pty Ltd, 
which hires high-quality scaffolding and provides bespoke engineered formwork for major 
building construction and infrastructure projects in Australia; Natform Pty Ltd, a specialist screen 
systems provider which designs and hires screen systems for the construction industry; and Uni-
span Australia Pty Ltd, a provider of formwork and scaffolding solutions, equipment and services, 
which is complemented by in-house engineering and industrial labour supply.  

Acrow currently operates in 10 locations across Australia and owns over 60,000 tonnes of 
formwork and scaffolding products. The Company has identified a number of near-term growth 
opportunities and is focused on growing its footprint in the civil infrastructure market of 
Australia’s east coast, with a particular focus on New South Wales and Victoria. To learn more, 
please visit: www.acrow.com.au  

For further information, please contact: 

Steven Boland  
Managing Director 
Ph: +61 (02) 9780 6500 

Andrew Crowther 
Chief Financial Officer 
Ph: +61 (02) 9780 6500 

Acrow Formwork and Construction Services Limited. C/- Level 5, 126 Phillip Street, Sydney NSW 2000  

Page 1 

 
 
 
 
 
 
 
 
2022

ANNUAL 
REPORT

Captions: 

Cover (main image) – Cross River Rail, Roma St, Brisbane QLD

Cover (bottom left) – Crown Casino, Barangaroo NSW

Cover (bottom middle) – Origin APLNG, QLD

Cover (bottom right) – Granville Place, Granville, NSW

Inside cover – Metro Tunnel CBD North, Melbourne, VIC

At the start of every great 
project since 1936. 

1

Acrow is a leading provider of smart integrated construction systems 
in Australia. This was Acrow’s ninth consecutive year of growth and we 
maintain a robust pipeline of opportunities for the future.

2022 Highlights

Total Revenue $m

EBITDA* $m

Earnings per Share* cents

40%

TO $148.3m

49%

TO $36.3m

18

19

20

21

22

65.3

71.0

87.0

105.7

148.3

13.2*

14.8*

19.5

24.3

18

19

20

21

22

36.3

57% CAGR

TO 7.2c

1.2

18

19

20

21

22

4.4

4.0

4.0

7.2

Revenue by Business Unit#

Revenue by Geography#

● Formwork53%

● Industrialservices

31%

● Commercial
scaffold 16%

● QLD56.1%

●  NSW 15.7%

● VIC13.2%

●  SA 4.8%

● WA5.9%

●  TAS 4.3%

$148.3

REVENUE

*Underlying  #Revenue includes sale of ex hire equipment

Contents

1 
2022 Highlights 
2 Chairman’sAddress
4 ManagingDirector’sReport
8

BusinessOverview

11  Safety
12 BoardofDirectors
14  Key Management Team 
15 FinancialReport

89 Directors’Declaration
90 IndependentAuditor’sReport
94 ShareholderInformation

2

Chairman’s Address

FY22 was a remarkable year which demonstrated the momentum 
that we have gained through the successful transformation of 
our business. 

Wehaveakeyroleasparticipantsinthebooming
Australian infrastructure sector through a unique 
productandserviceofferingthathasenabledusto
securelargepackagesofworkonmajorinfrastructure
projects nationally.

Acrowistodayaleadingproviderofsmartintegrated
construction systems for the civil infrastructure, 
industrialandcommercialsectors.

The outstanding performance of the 
company over the past twelve months 
confirms that our prudent decisions to invest 
in the platforms of our business – people, 
products and systems – are bearing fruit.

Itisourexpertiseinprovidingsophisticatedengineered
solutionsthatsetsusapart.Wehaveimprovedand
grownourcorebusinessesbycarefullyinvestinggrowth
capital and targeting east coast civil infrastructure 
projects.Thisclearlydefinedgrowthstrategyisbacked
byengineeringskills,high-qualitypeoplewithacreative
focusonfindingtherightsolutionsforcustomers,a
strongproductsetandanationalnetwork.

Thesecompetitiveadvantages,togetherwithstrong
performance,haveenabledustosecurehighmargin
workonAustralia’smarqueeinfrastructureprojectsand
industrialservicesworkthatshowcaseourskills.We
arecontinuingtoexploitthegrowthopportunitiesinthe
civilinfrastructuremarketandexpandourshareofthe
nationalindustrialservicesmarket.

Organic growth drives strong results
Thecompany’sstrongresultsreflectthatwehavebeen
strongstewardsofourassets,particularlyasthey
represententirelyorganicgrowth.Statutorynetprofit
increasedtoarecord$15.7million,anincreaseof296%
onthepreviousyear.Onanunderlyingbasis,which
excludessignificantitemsandshare-basedpayments,
netprofitwas$17.8million,up104%.Operatingcash
profitwas$23.0million,up97%.

Animportantfactorinourgrowthhasbeentheeffective
management of our supply chain despite the disruptions 
ofCOVID-19.Wehavedrivengrowthbytakingproducts

availableonlyinoneortwostatemarketsandselling
themnationallythroughourexpandedoperatingnetwork.

Underlyingearningspersharewere7.2cents,up79%on
thepreviousyear.Thisrepresentsacumulativeaverage
growthrateof57%overthefouryearssincelistingin
2018,showingthecompany’sconsistenttrackrecordof
profitgrowth.

Wehavearobustfinancialposition,withastrongbalance
sheetandcashflows.InFY22,cashflowfromoperations
was$18.9million,whichincludedaone-offincreasein
workingcapitalof$20milliontofacilitateproductsales
andfundindustrialservicesgrowth.Capitalexpenditure
fortheyearwas$21.1millionofwhichtwo-thirds
wereinvestedingrowth.Withsignificantexpansion
opportunitiesaheadweareinvestingaggressivelyin
our platform.

Theseopportunitiesincludemajorcivilinfrastructure
projectsacrossAustralianroad,rail,airportandmaritime
industriesaswellasindustrialsolutionsforcommercial
sectorssuchasenergyandmining.Asinfrastructure
developmentsaremulti-billiondollarprojectsbuiltover
manyyears,wecantenderforanincreasingsizeand
scopeofpackagesovertime,basedonourgrowing
engineeringskills,equipmentpoolandcapabilities.

Duringtheyearweraised$10.5millionthrougha
placementwhichhelpedfundgrowthinourindustrial
servicesandcivilformworkbusinesses.Wewere
delightedwiththestrongsupportforthecapitalraising
andthankourshareholdersfortheircontributions.

Wecontinuetotargetacquisitionswherebusinesses
shareanentrepreneurialcultureandcanbroadenour
platformandexpandourservices.Thiscomplements
organicgrowthand,afterbalancedate,weentered
anewmarketthroughaten-yearexclusivelicensing
arrangementwithNewZealandcompanyJacking
Systemsfortheirjumpformsystem.Wearebuildingthe
infrastructurethatwillsupporttheproductourselves,
whichbringstoourplatformoneofthemosttechnically
advancedandadaptablejumpformsystems.Theseare
usedtoconstructtheliftshaftcoreofabuilding,whichis
aleadingactivityonmulti-flooredconstruction.

104%

NPAT INCREASE
TO $17.8m

Acrow Annual Report 20223

Morrison Lane Yard, Beenleigh ,QLD

Dividend
Ourgoalistoincreasevalueforshareholderswhile
deliveringearningssufficientforfundinginvesting
activities and capital expenditure that support ongoing 
growth.TheBoard’sdividendpolicyistopaybetween
30%and50%ofoperatingcashprofit.Thestrength
ofourbusinessmodelandearningshaveenabledthe
Boardtodeclareanincreasedfinaldividendof1.5cents
pershare,60%franked.Thisbringstotaldividendsfor
theyearto2.7centspershare,42%franked,upfrom
1.9 centspershare,anincreaseof42%onlastyearand
representingapayoutof30%ofoperatingcashprofit.

Board changes
Duringtheyear,therewerechangestotheBoard.
Gregg Taylorsteppeddownatlastyear’sAnnualGeneral
MeetingandMargaretProkopretiredinDecember
2021.I wouldliketothankthemfortheirservicesto
the company.

WehavecontinuedourprocessofBoardrenewaladding
newdirectorswithrelevantskillsandexperienceto
guidetheevolvingneedsofourbusiness.Twonew
non-executivedirectorsjoinedusin2021,Melanie
AllibonandLaurieLefcourt.Botharewellsettledinand
contributingtotheBoardandcommittees.

Melanieisanexperiencedcompanydirectorwithan
extensivebackgroundinhumanresourcesandoperating
risk.ShehasheldseniorexecutiveroleswithNewcrest
Mining,SevenGroupHoldings,Amcor,PacificBrandsand

Foster’sGroupwithresponsibilityspanningAustralia,
USA,AsiaandtheUK.SheischairofASX-listedBoom
LogisticsLimited.

Lauriehasanextensivebackgroundinfinancial,strategic
andriskmanagement,particularlyintheresources,
construction,andinfrastructuresectors.Shehasheld
senior management and executive roles across Rio Tinto, 
QueenslandRail,SinopecOilandGas,andWigginsIsland
CoalTerminal.Sheisanexperiencednon-executive
directorandiscurrentlyontheboardsofAdvance
NanoTekLtdandSenterpriSYSLtd.

In closing
OnbehalfoftheBoard,IwouldliketothankSteven
BolandandhisleadershipteamaswellasallAcrow
employeesfortheirongoingachievement.

Significantprogresshasbeenmadetoprovideastrong
platformforthefuture.Wearebuildingthebusinessin
astructuredway,nurturingourgrowthengineswhile
investinginourpeople,equipment,ITsystemsand
technologytoensurethatastrongbackbonesupports
ourexpansion.Weareconfidentofcontinuingour
marketpenetrationmomentumand,withtailwinds
behindus,arefocusedonexploitingthegrowth
trajectoryahead.

Peter Lancken AM Chairman

2.7c

DIVIDEND PER SHARE 
UP 42% ON 2021

4

Managing Director’s Report

Since listing on the ASX nearly five years ago, Acrow has transformed 
into an engineering led business that provides exceptional solutions 
for the civil infrastructure and industrial markets. 

Cleardirectionandexecutiononstrategicpriorities
has achievedanoutstandingresultinFY22,with
strong growthinmainbusinesslinesacrossallstates
of Australia.

Wearefocusedondeliveringvalueforallkey
stakeholders,includingemployees,customersand
shareholders.IampleasedtoreportthatinFY22
AcrowachievedEBITDAof$36.3million,up49%from
$24.3 millioninthepreviousyear.Thisrepresentsa
compoundannualgrowthrateof29%overthefouryears
sinceFY18.

Importantly,overthatperiodwehaveachievedgrowth
whilealsoincreasingmargins.EBITDAmarginroseto
24.5%inFY22,upfrom20.2%inFY18demonstrating
improvingefficiency.Wearecommittedtoachieving
ourcustomers’priorities.Thesearetheprovisionof
robustengineeringsolutions,productquality,apositive
reputationfordelivery,andmostimportantlysafety.Our
abilitytomeetthesecriteriahasenabledustoachieve
strongrevenuegrowthwithimprovedmargins.

Ourbusinessisdifferentiatedbyhighqualityengineering
skillsandeffectivebespokesolutions.Engineeredsales
fromourformworkandindustrialservicesbusinesses
was87.8%oftotalgroupcontributioninFY22,up
38.2 percentagepointsfrom49.6%inFY18.

Revenueincreased40%to$148.3million,upfrom
$105.7 millioninthepreviousyearandmorethandouble
FY18revenue.Sincethen,theacquisitionsofNatform
andUni-spanhavebeenfullyintegrated.FY22showed
strongorganicgrowthreflectingarecordpipelineofwork
andthesecuringofnew,highrevenuecontracts.

Totalsalescontributionincreased32%to$81.4million.
Whileexpensesincreasedwithhigheractivity,we
exercisedstrongcostdisciplineandachievedbenefits
ofscale,with60%ofsalescontributiongrowthbeing
passedthroughtooperatingprofit.

Strong new hire contract growth 
Aswetakeadvantageofthetailwindsofthecurrent
nationbuildinginfrastructureboom,itisourengineering
team’scapabilitytodevelopinnovativeformworkand
industrialservicessolutionsthathasenabledusto

wintenderpackagesontransportinfrastructureand
industrialservicescontracts.

A key achievement in FY22 was securing 
record hire contracts of $50.4 million,  
up 28% on $39.3 million in the  
previous year. 

Newhirecontractsarethekeyshorttomediumterm
leadindicatorforourbusiness.Weareencouragedbya
strongsuccessrateofcirca50%onquotessubmitted
throughoutourFormworkbusinessandespeciallyon
marqueeinfrastructureprojects.

Acrow’sreputationforquality,safetyandservice
supportsusaswebidfornewworkpackages,which
coverworktobecompletedoverashorttomedium
termperiod.Theirsatisfactorycompletionpositionsus
welltosecuresucceedingpackagesandourpipelineis
extremelystrong.

Wecontinuetobenefitfromauniquerangeofproducts
andserviceswhicharenowbeinghiredandsold
acrossthecountry.Ourformworkdivisionhasgrown
significantlyacrossallstatessinceour2018listing.

This,togetherwiththecreativityofourengineering
solutions,hashelpedussecureformworkpackages
onmostofthemajortransportinfrastructureprojects
inAustralia.TheseincludeSydneyMetroandSydney
GatewayinNewSouthWales,theMelbourneMetro
TunnelandWestgatetunnelinVictoria,theBruce
HighwayupgradeandCrossRiverRailproject
in Queensland.

Investmentinourindustrialservicesdivision,which
providesarecurringearningsprofileforAcrow,has
alsobeenrewarded.Amongourkeyprojectswere
VisyAustralia’sTumutKraftpapermillshutdown,new
packagesonSnowyHydro2.0,theMountPiperpower
stationshutdown,maintenanceforOrigin’sSurat
Basin oilandgasfacilityandIncitecPivot’sPhosphate
Hillshutdown.

Formwork
Nationalformworkrevenuerose30%to$78.7 million
withsignificantgrowthinallstatemarkets.In
Queensland,ourlargestmarket,revenuegrew50%to

87.8%

OF TOTAL SALES WERE ENGINEERED SALES FROM 

FORMWORK AND INDUSTRIAL SOLUTIONS BUSINESSES

Acrow Annual Report 20225

UTAS Library, TAS

$29.3millionasweincreasedmarketshare.Operations
inWesternAustraliaalsogrewsignificantlyasweopened
newrevenuechannels,launchingproductspreviously
availableonlyontheeastcoast.

WeconsolidatedourmarketpositioninVictoria,where
wehavegoodprospectsforfurthergrowth,andinNew
SouthWaleswhichisAustralia’slargeststatemarket.
Havingbreachedthebarrierstoentryinthismarketwith
highprofilecontracts,weareconfidentoffurthergrowth.
ProgressinSouthAustraliaandTasmaniahascontinued.

Commercial scaffold
Commercialscaffoldrevenuesweresteadyaswe
increasedfocusondryhireandsmaller-scalework
withascalingdownoflabourandcartage.Thisdivision
providessustainable,strongfreecashflow.Ourbusiness
experiencedimprovementinNewSouthWalesand
Victoriaduringtheyear.Whilewecontinuetoexitlow
profitabilitycontracts,weremaincommittedtothis
cyclicalbusinessandanticipatesomeupwardsrate
improvementinthecomingyear.

Industrial services
Industrialservicesrevenuegrew110%to$45.6million
withstronggrowthfromexpansionintonewstates
andmarkets,includingtherenewableenergy,power
utilitiesandminingsectors.Productsaleswereboosted
byparticipationinlargeprojectsandlabourhiresales
alsoincreasedsignificantlywithagreaternumberof
key projects.

Havinginvested$4millioninspecialisedformwork
equipment,includingringlockandfurnacescaffold
kitstoservethehighlyengineeredMountPiper
shutdown,itwaspleasingthiscapitalinvestmenthas
providedastrongreturnenablingasignificantboostin
market share.

Balance sheet and cash flow
WehaveastrongbalancesheetandendedFY22withan
$11.2millionimprovementinnetcurrentassetssurplus.
Whilenetdebtincreasedby$10.4million,thisreflected
capitalinvestmenttofundgrowthandexpansionofour
business,andcompletionofthelastdeferredpayment
fortheUni-spanacquisition.Wearecontinuingto
invest to serve infrastructure and industrial services 
markets.Thishasbeenrewardedbystronggrowththat
hassignificantlyexceededourinternalgrowthcapital
expenditurehurdleof40%.Netgearing
increased1.5 percentagepointsto28.3%.

Inanunprecedentedyearinwhichsteps
weretakentominimisetheimpactof
supply chain and logistics challenges, 
inventoriesweremanagedtoreduce

49%

EBITDA INCREASE  
TO $36.3m

6

Managing Director’s Report (continued)

supplyrisks.Thishadasignificantone-offworking
capitalimpactof$20million.Ourworkingcapitaltosales
ratioisexpectedtostabiliseintherangeof18%to20%.

Duringtheyear,ourtimbersalesbusinesswas
transformedbyalackofsupplyintheAustralianmarket,
growingdemandandthewithdrawalofalternative
suppliers.Wehaveaveryreliablesupplychainwhichwas
abletooperateathighmargins,althoughworkingcapital
increasedduetoasignificantlagbetweeninitialpayment
andreceivingfundsonsales.

Acrow’sexpandedfinancefacilitiesallowsignificant
headroomtosupportfurthergrowth.Oureffectivetax
ratewas10%astaxpaidbybusinesseswasoffsetby
Acrow’scarryforwardtaxlosses.Frankingofdividends
willincreaseastaxlossesareconsumed.

An employer of choice
Peopleareourmostvaluableassetaswearebuilding
allaspectsofourbusinesstosupportgrowth.Thishas
included a heavy focus on succession planning and 
thecreationofnewrolestobroadenourcapability.Our
reputationasanindustry-leadingemployerofchoiceis
apowerfulassetasourhigh-qualitybrandhasenabled
ustoattracthigh-calibrepeople,allowingdepthinsenior
andmiddlemanagement.

We have developed an entrepreneurial and 
solutions-focusedculturethatbelievesinexceedingthe
relevantindustrialstandardsandsettingnewstandards
of excellence.

Akeypointofdifferenceisthestrengthofour
engineering,whichistechnicallyverystrongand
includessomeofAustralia’stoptemporaryformwork
engineeringtalent.Wehavetransformedthecompany
throughthecontinualbuildingofourengineeringteam,
whichhasmorethandoubledfrom15engineersin
April2018to32engineersattheendofFY22.Ourteam
isfocusedonachievingcommercialresultswithout
compromiseonproductqualityandsafety.Whilewe
haveindustry-leadingbestofbreedproducts,our
‘secretsauce’isthesmartwayourengineersworkfor
our customers.

Safetyisapriorityandweachieveda49%improvement
inthelosttimeinjuryfrequencyrate.Losttimeinjuries
improved33%inFY22.

Iwouldliketosincerelythankallofthemembersof
theAcrowfamilyfortheirabsolutecommitmentto
excellenceinourBusiness.

Expansion into jump form market
Afterbalancedate,wesecuredcontractsvaluedatcirca
$4milliontoprovidejumpformsontheCrossRiver
RailAlbertStreetundergroundstationandTheMonaco
apartmentsontheGoldCoast.Theseprojects,whichwill
becompletedinFY23,fasttrackourentryintoalucrative

andstrategicallyimportantmarket.Jumpformsystems
complementourformworkandscreensystemsproducts,
enhancingouropportunitiestobidforarangeofworks
onsuitablecommercialbuildings.

Weanticipatethatwewillgeneratefromthecapital
requiredtoservicetheprojectsareturnoninvestment
intheregionof70%,whichreflectsthecriticalnatureof
theengineeringwork.TheAustralianjumpformmarket
isestimatedtobeamulti-hundred-million-dollarindustry,
andweareconfidentofdevelopingthisnewrevenue
channelintoasustainable$20millionperyearbusiness
linewithinthreeyears.

Outlook
Wearedeliveringonourfuturegrowthtrajectory.The
positivemomentumofFY22hascontinuedinthefirst
twomonthsofFY23withthesecuringofhirecontracts
totalling$12million,up97%onthesameperiodlastyear.
Thisincludesexpectedincomefromnewlysecuredjump
formcontracts.

Government spending continues to provide a good range 
of opportunities, particularly in transport infrastructure, 
andourgrowingindustrialservicescapabilityhas
increasedthesizeofAcrow’saddressablemarkets.
Weanticipatefurtherpackagesofworkfromongoing
projectsincludingSnowyHydro2,MelbourneMetro
Rail,MelbourneWestgate,QldBruceHwyUpgradeand
BrisbaneCrossRiverRailamongstmanyothers.

Ourshorttomediumgrowthopportunitiesinclude
expansionofourindustrialservicesbusinessonthe
east coast into South Australian and Western Australian 
markets,wherewearetargetingnewcontracts.Weare
capitalisingonourmajorprojectexperiencetofurther
increasemarketshareintheNewSouthWalesand
Queenslandformworkcivilinfrastructuremarkets.Also,
weareleveragingouruniqueproductrangetoopen
newrevenuechannelsinstatemarkets.Ourinvestment
informworkandindustrialservicescapabilities
continuesasweexpandrevenuestreamsandimprove
opportunitiestocross-sellproductsandservices.

Weareconfidentoffuturegrowthandhaveprovided
guidanceforFY23:

	■ Revenueintherange$165million–$175million,an

increaseof15%onFY22;

	■ EBITDA(underlying)intherange$43million–

$44 million,a20%improvement;

	■ NPAT(underlying)intherange$21.5millionto

$22.5 million,anincreaseof23%.

Steven Boland 
CEO

Acrow Annual Report 20227

Case Study: Cross River Rail

PROJECT

CrossRiverRail

TECHNOLOGY

FormworkMKsystem
and SMK frames

LOCATION

Brisbane

CrossRiverRailisacriticalpublicinfrastructureproject
comprisinga10.2kilometreraillinewithfournewunderground
stations.Itincludes5.9kilometresoftwintunnelsunderthe
BrisbaneRiverandcentralbusinessdistrictwhichwillunlocka
bottleneckinBrisbane’stransportnetworkandimproveacross
southeastQueensland.

Acrow’ssolutionusedourMKSystemandSMKframesproducts
tocreatethewallsforthestationstructures.TheMKsystem
offers a highly versatile system for civil engineering applications 
thatneedhighload-bearingcapacity,whileourSMKframes
provideasingle-sidedformworksolutionwithatrussstructure
thatisflexible,allowingaccessontunnelprojects.Weusedsets
of10.875metrepre-assembledSMKframeswhichallowedthe
pourforthestationstructures’singlesidedwallsincluding,on
oneoccasion,enablingasingle10.3metrepourfrombasement
level4toabovebasementlevel2.

AsArrowassembledthefullheightframesoff-site,theworkand
spaceneededforon-siteconstructionwasgreatlyreduced.

Photo: Cross River Rail, 
Roma St, Brisbane, QLD

Acrow Annual Report 20228

Business Overview

FORMWORK

Overview

	■ Providesarangeofwallformingpanel,

pricepertonneperweek,orpricepercubic
metreperweek

soffitformingandconventionalsystemsfor
large and small construction equipment

	■ Bespokespecialformworkandclimbing
systemsprovidedforlarge projects

	■ Dryhiresformworkequipmentandprovides

the product that forms the temporary 
mould to support concrete structures 
during construction

	■ Dryhiresfalseworkequipmentusedto

supportsuspendedhorizontalstructures
during construction

	■ Products are generally manufactured 

overseas and imported

	■ Generates revenue through dry hire 

agreementsthataretypicallybasedona

FY22 Commentary

	■ Exceptionalgrowthwithexpandedproduct

andserviceofferingandcontribution
increases across all states and most 
businessunitsparticularlyQld(50%)and
WA(69%)

	■ Revenueup30%

	■ Continuedfocusonproductsaleswith

growthof26%whichcontributed48%of
formworkrevenue

Overview

	■ Highly experienced team and customer 

service ethic

	■ Generatesrevenuefromwethire

agreementsincludinghire,transport,labour
andconsumables

	■ At the forefront of scaffold service providers 
inQueenslandtotheindustrialsectorand
expanding interstate

	■ Fullturnkeysolutionfromdesigntosupply

and install

	■ Strong focus on the energy, pulp, paper, 

mining and industrial sectors

FY22 Commentary

	■

LargegrowthRebasedthisbusinessinto
the future 

	■ Revenueup110%andcontributionup53%

	■ Focusonindustriallabourthatincreased
156%withmarginremainingrelatively
stable(19.4%downfrom21.6%)

	■ ContinuedexpansionoutsideofQueensland

marketintoNSW,SAandTasmania

Overview

	■

Leadingdesignerandhirerofscreen
systems for the construction industry

	■ Providesscreen-basedformworksystems

whichsupporttheconstructionof
commercialhigh-risebuildingsandcivil
infrastructure,includingbridges,roadworks
and train stations

	■ Dry-hiremodelofferinghighlyengineered
solutionsforawiderangeofcustomers

	■ Engineeringcapabilitiesprovideakey

competitive advantage

INDUSTRIAL 
SERVICES

SCREENS

COMMERCIAL 
SCAFFOLD

Overview

	■ Providesaccesssolutionstobuilders

andbuildingcontractorswhenworkingat
heights

	■ Generatesrevenuethroughbothdryhire

andwethireagreements

	■ Dryhireagreementsaretypicallybasedon
apricepertonneperweek,overaminimum
of4weeks

	■ Wethireagreementsaretypicallybasedon

a contract sum encompassing equipment 

hire,transport,labourprovisionsandsupply
ofconsumables

	■ Solutionsofferedonbothawetanddry

basis

	■ Supportscommercialbuildingincluding
officeandhighrisedevelopments,
universities and schools, industrial 
buildings,hospitalsandretailcentre
developments

Acrow is a leading provider of engineered formwork solutions 
and scaffold hire in Australia. 

9

	■ Expandedtimbersaleswith
contributiongrowthof208%

	■ Keycontributingprojectsincluded

packagesonMelbourneMetroRail,
MelbourneWesternDistributor,
SydneyMetroRailincludingCrows
NestStation,BruceHighway
Highwayupgrade,CrossRiver
Rail, QLD

FY23 Strategy

	■ Transformational investment into 
JumpForms.10yearlicensing
agreementwithtwoinitialprojects

	■ GainmarketshareinNSWand
benefitfromcivilinfrastructure

developmentwithspecificfocuson
majorprojects.Snowy2.0,Sydney
GatewayandSydneyMetroWest

	■ Continuetobenefitfromupliftin

Queenslandinfrastructureactivityas
projectscontinuetorampup.Major
projectssuchasBruceHighway
upgrade,CrossRiverRailand
Inland Rail

	■ Continuetogrowinotherstates
throughexpansionofAcrow
product range

	■ Ongoing capital investment to 

support growth

	■ Capitalinvestmentof$4mduring

the year

	■ KeyprojectwinsincludeVisy,Snowy
Hydro, Mt Piper, Origin Surat Basin 
andIncitecPivot–PhosphateHill

	■ Expansionfurtherintonewmarkets
includingcoalfiredpowerstations,
hydropowerandmining

	■ Furthercapitalinvestmentto

supportgrowth

FY23 Strategy

	■ Continueexpansiononthe

east coast

	■ PushhardintoSAandWAmarkets
viatargetednewcontractwinsand
potential M&A

FY22 Commentary

FY23 Strategy

	■ Continuedsuccessacrosseast
coastmarkets,particularlyin
Queensland

	■ Totalrevenueandcontribution
relativelyflatduetoprojects
delayedduetoCovid19andfloods,
particularly in NSW

	■ Focusoncontinuedmarketshare
growthviainnovationandservice
capabilityespeciallyinQLD
and Victoria

	■ Capitaliseonprojectsdelayedin

NSW from 2022

FY22 Commentary

	■ Revenueandsalescontribution

stabilisedduringyear

	■

Increasedfocusondryhireand
smallerscalework.Thishas
included reduced contract and 
labourwork

	■ Marginshaveshowsignsof

improvementtowardstheendof
the year

	■ Thisisnowastrongfreecashflow

businesswithlittleinvestmentof
gear required

FY23 Strategy

	■ Continuingparticipationin

commercialprojects

	■ Hireratesincreasesandutilisationwill
becapitalisedoninthedryhiremarket

	■ Exitingthelabour/contractmarket

in commercial

10

Case Study: Rozelle Interchange

PROJECT

RozelleInterchange

TECHNOLOGY

FormworkRKSSystem
andFabrication

LOCATION

Sydney

Partneringwithcivilengineeringspecialiststocompletethree
ventshaftsontheRozelleInterchangewhichispartofthe
WestConnexSydneydevelopment,weusedAcrow’sRKSrail
climbingformworksystemtoconstructventilationshaftswith
differentradiuses,assistedbycranes.

Thedesigntofitthecircularshapeoftheshaftswasmanaged
byintroducingafabricatedsquarehollowsection(SHS)steelto
achievethecurvedshape.Thiswasconnectedtotheformwork
systemwithourproprietarySHSclamps.Bespoketailoringof
thecurvedsectionsmaintainedthefullrollbackpropertiesof
thesystem.

Ourformworksystemsarerobustandhighlyadaptable,which
allowedustoincreasethepourheightsfrom3metresto
3.6 metres,reducingthecyclesneededwhilststilljumping
theplatformswiththewallformsattachedandinrolledback
position.Thissimplebuteffectivesystemreducedthenumber
of‘specialitems’neededtocompletethetask,reducingcostand
allowingaqualitysurfacefinish.

Photo: Rozelle Vent Shafts, 
Rozelle, NSW

Acrow Annual Report 2022Safety

11

The health and safety of our people, customers and subcontractors 
is paramount. 

Acrow’ssafetycultureisbasedoncollaborationanda
sharedsenseofresponsibility.Wehaveamulti-tiered
processthatensuresouremployeesandsubcontractors
aretrainedandfollowindustryleadingsafework
practices.Employeeshaveaccesstohealthandsafety
informationfromAcrow’sSafetyManager,Headof
People&CultureandthroughtheAcrowintranet.Our
losttimeinjuryfrequencyratewaslowerwhileworking
anadditional152,000hourscomparedtoFY21.Other
safetykeyperformanceindicatorsremainedinlinewith
thepreviousyear.

Specificinitiativesandprogramsconductedin
FY22 included:

	■ Placementofadedicated,newSafetyManager

position

	■ Briefingonrecentdevelopmentsinhealthandsafety
fortheCEO,andtheExecutiveLeadershipteam

	■ Continuedgrowthofonlineinformationresourcesto
helpemployeesunderstandtheirresponsibilities

	■ Continuedevaluationandupdatingofallhealthand

safety related materials including procedures, policies 
andmanuals,acrossallAcrowlocations.

	■ FreeaccesstoRATtestsforCOVID-19,andvoluntary

influenzavaccinationsforemployees.

LOST TIME INJURY 
FREQUENCY RATE

18

19

20

21

22

2.4

6.0

5.9

11.6

19.7

Cross River Rail, Brisbane, QLD

Acrow Annual Report 202212

Board of Directors

Mr Peter Lancken AM 

Non-Executive Chairman 

Peterhasacareerspanningover30yearsinarangeofexecutiveanddirectorrolesin
equipmenthire,industrial,andrealestatecompanies.

HewasformerlytheManagingDirectorandNon-ExecutiveChairmanofKennardsHire
PtyLimited.

PetermanagedaneraofgrowthspanningtwodecadesatKennards,withsalesnow
exceeding$550millionfromanetworkofover200locations,andremainsonthe
BoardasaNon-ExecutiveDirector.

PeterisalsoaNon-ExecutiveDirectorofCrimestoppersNSWandwasNon-Executive
ChairmanofPropertylinkGroup(ASX:PLG)priortoitsacquisitioninApril2019.

PeterholdsaBachelorofEngineering(Civil)degreefromtheUniversityofNewSouthWales,isaFellowoftheInstitute
ofEngineersAustraliaandisafellowoftheAustralianInstituteofCompanyDirectors.

Mr Steven Boland 

Executive Director 

Steve’s30yearexecutivecareerincludesextensiveexperienceinoperational
managementandleadershipspanningwaste,sportsmanagementandhireinboth
Australia and the United Kingdom

StevenjoinedAcrowin2013andsincethenhasservedasitsChiefExecutive
Officer.StevenwaspreviouslytheCEOoftheMelbourneRebelsRugbyCluband
wasresponsibleforthestart-upphaseofaSuperRugbyprofessionalsporting
team.Previously,from2004to2010,StevenservedastheGlobalExecutiveDirector
(Recycling)ofVisyIndustries,andfrom2002to2004,StevenwastheExecutive
Director(CommercialWaste)ofVeoliaEnvironmentUK.

Mrs Melanie Allibon 

Non-Executive Director (Chair of the Remuneration & 
Nomination Committee)

Melaniehasanextensivebackgroundinhumanresourcesandoperatingriskprimarily
intheindustrialservices,mining,manufacturingandFMCGsectors.

ShehasheldseniorexecutiveroleswithNewcrestMining,SevenGroupHoldings,
Amcor,PacificBrandsandFoster’sGroupwithresponsibilityspanningAustralia,USA,
AsiaandtheUK.

Melaniehasbeenanonexecutivedirectorforthelast9yearsincludingBoom
LogisticsPtyLimitedforoverthreeyearsandChairsinceNovember2021.Melanieis
amemberofChiefExecutiveWomen,InternationalWomen’sForumandAICD.

Acrow Annual Report 202213

Mr David Moffat

Non-Executive Director

Appointed19September2019

Davidhasacareerspanningover35yearsintheconstructionindustry,mostrecently
withLipmanfor29years,priortohisresignationinDecember2018.From2013-2018,
DavidwastheManagingDirectoroftheLipmanGroupofCompanies.

In2019DavidfoundedCornerstone(NSW)PtyLtd,whereasManagingDirector,he
providesstrategicbusinessplanningandadvisoryservicestoSubcontractors,Head
ContractorsandClientswithintheconstructionindustry.

DavidbringswithhimkeycompetenciesinLeadership,ConstructionManagement,
InnovationandSafety.HeholdsaBachelorofEngineeringDegree(Civil)fromThe
UniversityofTechnology,Sydney(“UTS”).

Ms Laurie Lefcourt 
Non-ExecutiveDirector(ChairoftheAuditandRiskCommittee)

Lauriehasanextensivebackgroundinfinancial,strategicandriskmanagement,
particularlyintheresources,construction,andinfrastructuresectors.

ShehasheldseniormanagementandexecutiverolesacrossRioTinto,Queensland
Rail,SinopecOilandGas,andWigginsIslandCoalTerminal.

Lauriehasbeenanon-executivedirectorforthepast4yearsandiscurrentlyonthe
boardsof–AdvanceNanoTekLtd(ASX:ANO),andSenterpriSYSLtd(NSX:SPS).
LaurieisapastmemberontheboardofTamawoodLtd(ASX:TWD),theJabiruTown
DevelopmentAuthorityandCentralQueenslandUniversityCouncil.

Laurieholdsabachelor’sdegreeinfinanceandadministration,isafellowofthe
InstituteofCharteredAccountantsofAustraliaandNewZealandaswellasagraduate

oftheAustralianInstituteofCompanyDirectors.

Acrow Annual Report 202214

Key Management Team

Steven Boland 

Chief Executive Officer 

Asabove.

Andrew Crowther 

Chief Financial Officer 

AndrewjoinedAcrowinJuly2019.Hehasmorethan
20years’experiencehavingheldseniorfinancialand
chieffinancialofficerrolesatThornGroup,SFGLtd,BT
FinancialGroupandColonialFirstState.Hebringsa
breadthofindustryandpropertyinfrastructurefinance
expertisetoAcrow,includingworkinthepropertyfunds
andassetmanagement,superannuationandfinancial
advice,consumerfinanceandleasingandbusiness
financeindustries.

Jeffery Stewart 

National Sales & Marketing Manager 

JefferyjoinedAcrowin2011.Hispriorrolesinclude
RegionalManageranddirectorforAtlasSteelsinNew
Zealand,NationalMarketDevelopmentManageratAtlas
SpecialtyMetals,andMarketDevelopmentManagerfor
SmorgonSteelsMetalsDistribution.

Robert Parovel

Head of People & Culture

RobertjoinedAcrowinNovember2021,having
previouslyheldseniorHumanResourcepositionswith
HarscoCorporation,GCCServices,andWebuildGroup.
Havinglivedandworkedabroad,hehasextensive
experienceintheAsiaPacificandMiddleEastregions.

Matthew Caporella 

Chief Operating Officer 

Colin Fisher

General Manager (TAS)

MatthewjoinedAcrowin2012andrecentlypromoted
toChiefOperatingOfficerfromNationalManager–
EngineeringOperations.

ColinpreviouslyworkedatHoneywellBusinessSolutionsas
aGeneralManager.PriortoHoneywellBusinessSolutions
heworkedatVisyIndustriesastheGeneralManager,and
astheNationalOperationsManageratOnyxUKLimited.

Jan Pienaar 

General Manager (QLD) 

JanjoinedAcrowinDecember2018asGeneralManager,
Queensland.Hehasmorethan10years’management
experienceandwaspreviouslyNationalSalesmanager
atDokaFormworkAustralia,andbeforethatasGeneral
Manager(Formwork)atWacoKwikform.

Jurie Roetger 

National General Manager – Industrial Services 

JuriejoinedtheAcrowGroupaspartoftheUni-span
acquisitioninOctober2019.Hehasmorethan18years
industryexperience.HispreviousroleswiththeUni-span
GroupincludesScaffoldDesigner,ProjectManager,
North QueenslandManagerandNationalIndustrial
ServicesManager.

Peter Fehrenbach

General Manager (NSW) 

PeterjoinedAcrowinSeptember2021.Hehasover15 years
management experience, previously holding positions at 
BullivantsthatincludeNationalOperationsandSupplyChain
ManageraswellasRegionalBusinessManager(NSW,Vic
andSA).HealsoheldvariousSupplyChainleadershiproles
intheAustraliaPacificregionatOrica.

Jason Merjane

Natform Manager (NSW)

JasonjoinedNatformin2015andisresponsibleforthe
screensbusinessacrossthecountry.

Bill Goodall

General Manager (SA)

BilljoinedAcrowin2016.Billhasspentthelast16years
inmanagementrolesintheFormworkandScaffold
industryoperatinginNSW,SA,NT&WA.

Conan Godrich

General Manager (WA)

ConanbringsoveradecadeofexperiencewithAcrow.
HispriorrolesincludeAccountManager(Gnangara
Operations)atRinkerAustralia,andSalesandCustomer
ServiceatOneSteelReinforcing.

Carl Roetger

National Head of Procurement

CarljoinedAcrowinOctober2019astheNational
ProcurementManagerpreviouslybeingaCofounderand
DirectorofUni-spanGroupsince2001.PriortothisCarl
wastheCo-founderandJointMDofNu-formFormwork
andScaffoldinginSouthAfrica.

Eddie McInulty 

National Business Development Manager

EddiejoinedAcrowin2019andbrings20yearsof
experiencefrombothintheUKandAustralia,specialising
intheCivilEngineering&Infrastructureindustry.Previous
rolesincludeManagingDirectorforGHIFormworkAustralia,
NationalSalesManagerforUni-spanandpriorSales
ManagementroleswithPeriAustraliaandPeriUKLtd.

Acrow Annual Report 2022Financial Report

15

White Residences, Main Beach, QLD

Contents

16 Directors’Report
22 Auditor’sIndependence

Declaration

23 RemunerationReport–Audited

49 FinancialStatements
53 NotestotheConsolidated
FinancialStatements
89 Directors’Declaration

90 IndependentAuditor’sReport
94 ShareholderInformation
97 CorporateDirectory

Acrow Annual Report 202216

TheDirectorspresenttheirreport,togetherwiththeAnnualFinancialReportforAcrowFormworkandConstruction
ServicesLimited(AcrowortheCompany)anditscontrolledentities,fortheyearended30June2022,andtheAuditor’s
Reportthereon.

ThisreporthasbeenpreparedinaccordancewiththerequirementsoftheCorporationsAct2001andtheinformation
belowformspartofthisDirectors’Report:

DIRECTORS 
TheDirectorsoftheCompanyatanytimeduringorsincetheendofthefinancialyearare:

PeterLancken(Chairman)
StevenBoland(ChiefExecutiveOfficer)
DavidMoffat
MelanieAllibon(appointed1September2021)
LaurieLefcourt(appointed1October2021)
GreggTaylor(resigned22November2021)
MargaretProkop(resigned31December2021)

InformationonthecurrentdirectorsandshareholdingsarepresentedintheAnnualReportonpages12to13and
pages38to44respectively.Thisinformationincludesthequalifications,experience,andspecialresponsibilitiesof
each director.

DIRECTORS’ MEETINGS 
Thenumberofdirectors’meetingsandnumberofmeetingsattendedbyeachofthedirectorsoftheCompanyduring
thefinancialyearending30June2022are:

Board of Directors

Remuneration 
Nomination Committee

Audit and Risk 
Committee

No. held

No. 
attended

No. held

No. 
attended

No. held

No. 
attended

16

16

16

9

9

9

10

16

16

14

9

9

8

10

4

–

4

3

–

2

–

4

–

4

3

–

2

–

5

–

5

–

2

3

–

5

–

5

–

2

3

–

PeterLancken(Chairman)

StevenBoland(ChiefExecutiveOfficer)

DavidMoffat

MelanieAllibon

LaurieLefcourt

Gregg Taylor

MargaretProkop

MrDavidMoffatwasChairoftheRemunerationandNominationCommitteeupto16February2022andreplacedon
thatdatebyMsMelanieAllibon.

MrGreggTaylorwasChairoftheAuditandRiskCommitteeuptohisdateofresignationof22November2021and
replacedonthatdatebyMsLaurieLefcourt.

COMPANY SECRETARY 
MrLeeTamplinofAutomicGroupistheCompanySecretaryandhasover20years’experienceinthefinancialservices
industryinbothAustraliaandtheUK.HeisCompanySecretaryforseveralASXlisted,NSXlistedandProprietary
companiesacrossarangeofindustries.MrTamplinholdsaBA(Hons)FinancialServices(BournemouthUniversity
UnitedKingdom),aDiplomaofFinancialPlanning,isaGraduateoftheAustralianInstituteofCompanyDirectors,a
MemberoftheGovernanceInstituteofAustralia,andaMemberoftheAustralianInstituteofCompanyDirectors.

Directors’ Report for the year ending 30 June 2022Acrow Annual Report 202217

PRINCIPAL ACTIVITIES 
AcrowoperatesintheAustralianconstructionservices
industry,hiringformwork,falsework,scaffoldingand
screenequipmentandundertakessalesofformwork
andscaffoldingrelatedconsumables.Italsooperatesan
industrialservicesbusiness.

Theformworkoperationinvolvesthesupplyofthe
temporary mould that supports concrete structures in 
theirconstruction,whilstfalseworkequipmentisused
tosupportsuspendedhorizontalstructuresduring
construction.

Screen-basedformworksystemssupportthe
construction of civil infrastructure, commercial and 
residentialbuildings.

The industrial services operation supplies an industrial 
labourservicetocomplimentthescaffoldinghiretothe
energy,industrialandminingsectors.

The scaffolding operation supplies scaffolding equipment 
andaccesssolutionstobuildersandbuildingcontractors
whenworkingatheights.

OPERATING AND FINANCIAL REVIEW
TheAcrowbusinessperformedverystronglyforthe
12 monthsto30June2022.

Thebusinessstrategyre-basetowardsthevalueadded,
highlyengineeredcivilformworksolutionsmarketaswell
as an increased focus on equipment sales and expanding 
itsnewIndustrialServicesdivisiontranslatedtoalarge
increaseinprofitduringtheyear.

Financial performance:

Thecompanyachievedanetprofitaftertaxof$15.69m
up296%from2021profitof$3.96m.

Onanunderlyingbasis(refertotablebelow),thenet
profitaftertaxincreased104%from$8.71mto$17.81m.
Thekeyhighlightsfortheyearincluded:

	■ Grouprevenueincreased40%onpriorcomparative

period(“pcp”)to$148.3m(includingsalesof
ex-hiregear),attributabletoastrongtrading
performanceacrossalldivisionsandstates,ledby
IndustrialServices,up110%.Performancewasall
organically generated.

	■ Salescontributionincreased32%to$81.4m,driven
primarilybygrowthintheFormworkhirebusiness

	■ UnderlyingEBITDAincreased49%to$36.3mand

EBITDAmarginof24.5%increasedby1.5pptsfrom
pcp.Significantscalebenefitsarenowbeingachieved
wherebyexpensesareincreasingatamuchlower
ratethantheincreaseinsalescontribution.The
$19.9mincreaseinsalescontributionfrompcp
flowedthroughtoa$12.0mincreaseinEBITDAto
pcp.Thatis60%oftheincreaseinsalescontribution
flowedthroughtoEBITDA.

	■ UnderlyingNPATincreased104%from$8.7mpcp

to$17.8m.Effectivetaxratedeclinedfrom15%pcp
to10%assistedbycarryforwardtaxlosseswhich
havenotbeentakenupasanassetintheaccountsof
the company.

	■ StatutoryNPATincreased296%from$3.96m

to$15.69m,assistedbyasubstantialdeclinein
significantitemsandshare-basedpayments,down
55%to$2.1m.

Acrow Annual Report 202218

Financial performance table 

Statutory net profit after tax

Addbackshare-basedpayments

Addbackacquisition,integrationandrestructuringcosts

Addbackpre-acquisitiontaxexpense

Addbackpreacquisitionaccelerateddepreciation

Addbacknon-operatingnetinterest

Underlying net profit after tax

Addbackdepreciation

Addbackinterest

Addbacktaxexpense

EBITDA

Financial position:

Therewasanimprovementinnetcurrentassets
of$11.2mfromadeficitof$8.2mpcptoasurplus
of $3.0m.

Netdebtincreasedfrom$22.5min2021to$32.8m,
beingcash$3.0m(2021:$1.8m)lessdebtof$35.9m
(2021:$24.2m).Thiswaspredominantlydueto:

	■

	■

significantinvestmentexpenditureduringtheyear
includinggrowthcapitalexpenditureof$14.2mand
paymentofdeferredconsiderationofUni-span$3.5m.

expansionofoursalesandindustrialserviceslabour
businessesthatrequiredincreasesinourworking
capitalfacilities.

Netgearing(netdebt/(netdebt+equity))increased
from26.7%to28.3%.

Property,plantandequipmentincreasedfrom$83.0m
to$95.5mduetototalcapitalexpenditure(Growthand
Stay-in-Business)of$22.4m(2021:$17.4m)offsetby
depreciationandsaleswithawrittendownvalueof
$2.6m(2021:$4.6m).

Totalworkingcapitalincreasedby$20.7mto$32.8m
from$12.1mpcp.Thisincreasewastheresultof:

	■ anincreaseinoverallrevenueflowingthroughto
debtors’balancesof$34.4mfrom$24.6mpcp.

	■

strategicdecisiontakentoincreaseinventory
holdingstosecuresupplyandde-riskthedisruptions
tothesupplychainswhichalsoresultedin
increased prepayments.

2022 
$’000

15,694

1,165

954

–

–

–

17,813

13,070

3,467

1,962

2021 
$’000

3,963

2,246

1,150

670

384

300

8,713

11,179

2,948

1,509

36,312

24,349

Tradereceivablesdebtor’sdaysreducedfrom65days
to63daysduringtheyearhoweveriftheimpactof
negotiatedextendedsalesaretakenout,debtorsdays
increasedfrom56to60.Totalbaddebtswrittenoff,or
debtsindefaultandfullyprovidedfortotalled$0.8m(or
0.6%ofrevenue).Thepercentageofwriteoffstosales
isrelativelyconsistentwithpreviousyears.Thetotal
provisionforbaddebtswasincreasedduringtheyear
from$1.2mto$1.5m.

Furtherinformationontheoperatingandfinancialreview
iscontainedintheChairman’sandManagingDirector’s
Reviewonpages4to6ofthisAnnualReport.

Operating results:

RefertotheManagingDirector’sReportonpages4to6
ofthisAnnualReport.

DIVIDENDS
TheCompanypaida1.15centfrankeddividendpershare
beingatotalof$2.88mforthefinancialyearending
30June2021on25November2021.Sharestotalling
1,432,611wereissuedundertheDividendReinvestment
Planat$0.4437centspershareincludinga5%discount.

TheCompanypaidaninterim1.20cents20%franked
dividendpersharebeingatotalof$3.0mforthe
financialyearending30June2022on27May2022.
Sharestotalling706,181wereissuedundertheDividend
ReinvestmentPlanat$0.4575centspershareincluding
a2.5%discount.

Subsequenttoyearend,Directorsdeclaredafinal60%
frankeddividendof1.50cpson23August2022tobe

Directors’ Report for the year ending 30 June 2022Acrow Annual Report 2022 
 
 
 
19

Duringtheyear,743,400performancerightsthathad
previouslybeenissuedtoKMP’sundertheCompany’s
RightsPlanvestedwhenthevestingconditionswere
achieved.Atotalof908,600performancerightsrelating
to the same tranches did not meet vesting conditions 
andwereforfeited.

Otherthanabove,nonewsharerightsoroptionswere
issuedtoKeyManagementPersonnelorNon-executive
directorsduringtheyear.

SHARE RIGHTS
Atthedateofthisreport,Acrowhad6,860,000share
options outstanding relating to grants of deferred 
equitytoDirectorsandemployeesundertheprevious
Long-TermIncentivePlan.Thesehavearangeofvesting
datesthroughtoJuly2024.Duringtheyear50,000share
optionswerecancelledafterfailingtomeetvesting
criteriaandnonewereexercised.

7,901,708PerformanceRightswereissuedduringthe
yearwithvestingperiodsattheendofthefinancial
years2023and2024.Ifthevestingconditionsaremet
eachPerformanceRightcanbeexercisedintooneFully
PaidOrdinaryShareattheholder’sdiscretionuntilthe
expirydateof6June2037.ThePerformanceRights
wereissuedtoemployeesoftheCompanyunderthe
Company’sRightsPlanandformpartofthenewLong
TermVariableRemuneration(LTVR)oftheemployees.
PerformanceRightsissuedtoKMP’sareincludedin
this balance.

Afurther1,175,618PerformanceRightsweregranted
duringtheyearrelatingtothe30June2022vesting
periodand364,000werecancelledonterminated
employees.

359,000PerformanceRightswereissuedandvested
immediatelyfromtheplanrelatingtoashort-term
incentive.Thesewereexercisedduringtheyearinto
ordinaryshares.

3,526,620PerformanceRightsvestedduringtheyear
after meeting vesting criteria for the measurement period 
to30June2021and3,165,120wereexercisedinto
ordinaryshares.4,310,330PerformanceRightsrelating
tomeasurementperiodto30June2021wereforfeited
afternotachievingvestingcriteria.ThisincludesKMP
PerformanceRightsdetailedabove.

paidon30November2022.Thisdividendhasnotbeen
providedforinthisfinancialreport.

ENVIRONMENTAL REGULATIONS 
Acrow’soperationsarenotsubjecttosignificant
environmentalregulationsundertheCommonwealth
ofAustraliaandState/Territorylegislation.TheBoard
believesthatAcrowhasadequatesystemsinplaceto
manageitsenvironmentalresponsibilitiesandisnot
awareofanybreachofregulations.

TheGroupisalsosubjecttoenvironmentalregulation
inrespectofitsexplorationactivitiesinGhanabutnot
awareofanybreachofthoseregulations.

NO OFFICERS ARE FORMER 
AUDITORS 
NoofficeroftheCompanyhasbeenapartnerinanaudit
firm,oradirectorofanauditcompany,thatisanauditor
oftheCompanyduringtheyearorwassuchapartner
orDirectoratatimewhentheauditfirmortheaudit
companyundertookanauditoftheCompany.

NON-AUDIT SERVICES 
Allnon-auditservicesweresubjecttothecorporate
governanceproceduresadoptedbytheGroupand
havebeenreviewedbytheAuditandRiskCommittee
to ensure that they do not impact the integrity and 
objectivityoftheauditor.

Allthenon-auditservicesprovideddonotundermine
the general principles relating to auditor independence 
assetoutinAPES110CodeofEthicsforProfessional
Accountants,astheydidnotinvolvereviewingor
auditingtheauditor’sownwork,actinginamanagement
ordecision-makingcapacityfortheGroup,acting
asanadvocatefortheGrouporjointlysharingrisks
and rewards.

Detailsoftheamountspaidorpayabletotheauditorof
the Group, Grant Thornton and their related practices for 
auditandnon-auditservicesduringtheyeararesetin
note27.

SIGNIFICANT CHANGES IN THE 
STATE OF AFFAIRS 
TherewerenosignificantchangesintheGroup’sstate
of affairs.

REMUNERATION REPORT 
InformationonAcrow’sremunerationframeworkandthe
outcomes for the Group are included in the Remuneration 
ReportsectionofthisAnnualReport.

Duringtheyear,845,090performancerightswereissued
toKMP’sundertheCompany’sRightsPlan.

Acrow Annual Report 202220

Balanceofoutstandingrightsandoptionsasatyearend:

Performance rights

Options

Quantity 
outstanding

Weighted average 
exercise price

Expiry date

17,184,826

6,860,000

Nil

31July2035to
6 June2037

$0.47 13December2022
to16July2024

Loanfundedoptions

2,194,500

$0.20

26March2023

Forfurtherdetails,refertonote29ofthisAnnualReport.

LIKELY DEVELOPMENTS AND 
EXPECTED RESULTS
Forinformationaboutlikelydevelopmentsandexpected
resultsintheoperationsoftheCompany,refertothe
Chairman’sandManagingDirector’sReportsonpages2
to6ofthisAnnualReport.

INDEMNIFICATION OF DIRECTORS 
AND OFFICERS 
UnderthetermsofArticle35oftheCompany’s
Constitution,andtotheextentpermittedbylaw,the
CompanyhasindemnifiedthedirectorsoftheCompany
namedinthisDirectors’report,theCompanySecretaries,
andotherpersonsconcernedinortakingpartinthe
managementofAcrow.Theindemnityapplieswhen
personsareactingintheircapacityasofficersofthe
Companyinrespectof:

	■

Liabilitytothirdparties(otherthantheCompanyor
relatedbodiescorporate),iftherelevantofficerhas
actedingoodfaith;and

	■ Costsandexpensesofsuccessfullydefendinglegal

proceedingsinwhichreliefundertheCorporations Act 
2001isgrantedtotherelevantofficer.

The Group has not made any indemnity payment during 
theyear.

INSURANCE PREMIUMS 
Duringthefinancialyear,theCompanypaidapremium
of$229,896excludingGSTforDirectors’andOfficers’
LiabilityInsurancepolicy.Theinsuranceprovidescover
fortheDirectorsnamedinthisDirectors’Report,the
CompanySecretary,andofficersandformerDirectors
andofficersoftheCompany.Theinsurancealsoprovides
coverforpresentandformerDirectorsandofficersof
othercompaniesintheGroup.

CORPORATE GOVERNANCE 
STATEMENT 
This statement outlines the main corporate governance 
practicesinplacethroughoutthefinancialyearandcan
bereferredtoontheAcrowGroupwebsite:https://www.
acrow.com.au/investors/

EVENTS SUBSEQUENT TO THE END 
OF THE FINANCIAL YEAR 
EquipmentfinanceandTradefinancefacilitylimits
toreverton30September2022from$20,000,000
to$22,000,000andfrom$8,000,000to$6,000,000
respectively,peragreementmadeon10June2022.

Anewloanagreementforcapitalpurchaseswasdrawn
downinJuly2022.Theloanamountis$4,125,000,
maturesin3yearsfromcommencementdateand
repayableinfullbyJune2025.

Bankguaranteefacilityincreasedfrom$1,400,000
to$1,700,000byreducingtheoverdraftfacilityfrom
$6,600,000to$6,300,000.

FurtherEquipmentfinanceloansof$3,832,596were
drawn,repayableinfullatendofthreeyearsandTrade
financeloansof$1,688,639weredrawninandrepayable
infullwithin180days.

Aninsurancepremiumfinanceloanof$1,201,539.53
wasdrawnon22August2022repayableinfullby
22July2023.

On23August2022theDirectorsdeclareda60%
frankeddividendof1.5centspersharetobepaidon
30 November2022.DividendReinvestmentPlanis
availableforelection.Thedividendhasnotbeenprovided
forinthisfinancialreportasitwasnotdeclareduntil
after30June2022.

Directors’ Report for the year ending 30 June 2022Acrow Annual Report 202221

Otherthanthemattersnotedabove,therehasnotarisen
intheintervalbetweentheendofthefinancialyearand
thedateofthisDirectors’report,anyitem,transaction,
oreventofamaterialandunusualnaturelikely,inthe
opinionofthedirectorsoftheCompany,tosignificantly
affecttheoperationsofAcrow,theresultsofthose
operations,orthestateofaffairsofAcrowinfuture
financialyears.

ROUNDING OF AMOUNTS
AcrowFormworkandConstructionServicesLimited
isacompanyofthekindreferredtointheAustralian
SecuritiesandInvestmentsCommission(ASIC)
Corporations(RoundinginFinancial/Directors’Reports)
Instrument2016/191,dated24March2016andin
accordancewiththatLegislativeInstrument,amountsin
theConsolidatedFinancialStatementsandthisDirectors’
Reporthavebeenroundedofftothenearestdollar,
unlessstatedotherwise.

LEAD AUDITOR’S INDEPENDENCE 
DECLARATION 
Theleadauditor’sindependencedeclarationmade
undersection307CoftheCorporationsAct2001isset
out on page 22 of the Annual Report and forms part 
oftheDirectors’Reportforthefinancialyearended
30June2022.

SignedinaccordancewitharesolutionoftheDirectors:

Peter Lancken
Chairman

Sydney,27September2022

Steven Boland 
Director,ChiefExecutiveOfficer

Sydney,27September2022

Acrow Annual Report 202222

Grant Thornton Audit Pty Ltd 
Level 17 
383 Kent Street 
Sydney NSW 2000 
Locked Bag Q800 
Queen Victoria Building NSW 
1230 

T +61 2 8297 2400 

Auditor’s Independence Declaration  

To the Directors of Acrow Formwork and Construction Services Limited  

In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit 
of Acrow Formwork and Construction Services Limited for the year ended 30 June 2022, I declare that, to the 
best of my knowledge and belief, there have been: 

a  no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to 

the audit; and 

b  no contraventions of any applicable code of professional conduct in relation to the audit. 

Grant Thornton Audit Pty Ltd 
Chartered Accountants 

N P Smietana 
Partner – Audit & Assurance 

Sydney, 27 September 2022 

www.grantthornton.com.au 
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‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or 
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Auditor’s Independence Declaration  for the year ending 30 June 2022Acrow Annual Report 2022 
 
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
Remuneration Report – Audited fortheyearending30June2022

23

Letter from the Chair of the 

1 
Remuneration Committee 
IamdelightedtobringyouthisRemunerationReport
oftheAcrowGroupwhichoutlineskeyaspectsof
theremunerationpolicyandframeworkandthe
remunerationawardedthisyear.

Theinformationprovidedinthisreporthasbeenprepared
basedontherequirementsoftheCorporationsAct
2001andtheapplicableaccountingstandardsandhas
been audited.

The Board provides guidance and oversight to 
theremunerationstrategyandhasestablisheda
Remuneration&NominationCommitteetoensure
the remuneration strategy attracts and retains quality 
directorsandexecutives,fairlyandresponsibly
rewardsthem,isequitableandalignedtoshareholders’
interests, andcomplieswiththelawandhighstandards
ofgovernance.

TheRemunerationCommitteereviewsexecutive
remunerationtoensurethatitcontinuestoalignwith
Acrow’sstrategy,motivatesmanagement,reflectsmarket
bestpracticeandsupportthedeliveryofsustainable
long-termreturnstoshareholders.Aspartofthereview
process,wewillcontinuetoengagewithspecialised
advisorsandmajorshareholders.

Theremunerationreportreceivedoverwhelmingsupport
fromshareholdersatthe2021AGMwith99.36%ofvotes
infavourincludingproxy’sdiscretionof1.56%.

DuringtheFY2022reportingperiod,theRemuneration
Committeehasfocussedontheperformanceof
executivesindeliveringexpectedoutcomes.Wehave
also engaged external advisors to support the committee 
to identify those areas of remuneration policies, 
proceduresandpracticesthatwillrequireongoing
changeandimprovement.

Melanie Allibon
IndependentNon-ExecutiveDirector
ChairoftheRemunerationCommittee

2  Scope of the Remuneration 
Report and Individuals Classed 
as KMP
TheRemunerationReportsetsouttheprescribedkey
managementpersonnel(KMP)remunerationinformation
anddetailsinaccordancewithsection300Aofthe
CorporationsActandassociatedregulations,including
policies, procedures, governance, and factual practices 
asrequired.

Inaddition,AcrowFormworkandConstructionServices
Limited(Acrow,theCompany)hasdecidedtosetout
such further information as shareholders may require for 

themtoobtainanaccurateandcompleteunderstanding
oftheCompany’sapproachtotheremunerationofKMP.

KMParethenon-executivedirectors,theexecutive
directorsandemployeeswhohaveauthorityand
responsibilityforplanning,directingandcontrollingthe
activities of the consolidated entity, directly or indirectly 
duringanypartofthefinancialyear.Onthatbasis,the
followingroles/individualsareaddressedinthisreport:

Non-executive Directors (NEDs)

	■ MrPeterLancken,independentnon-executive

Chairmansince27March2018.

	■ MrDavidMoffat,independentnon-executivedirector
since19September2019,ChairofRemuneration
Committeefrom6October2020to16February2022.

	■ MsMelanieAllibon,independentnon-executive

directorfrom1September2021,Chairof
RemunerationCommitteefrom17February2022.

	■ MsLaurieLefcourt,independentnon-executive

directorsince1October2021,ChairofAudit&Risk
Committeefrom23November2021.

	■ MrGreggTaylor,independentnon-executivedirector
since11August2017,ChairoftheAudit&Risk
Committeesince6thOctober2020,resignedon
22 November2021.

Senior Executives Classified as KMP During the 
Reporting Period 

	■ MrStevenBoland,ChiefExecutiveOfficer(CEO)&

ExecutiveDirectorsince27March2018.

	■ MrAndrewCrowtherChiefFinancialOfficer(CFO)

since8July2019.

	■ MsMargaretProkop,ExecutiveDirectorsince
31 August2018,retiredon31December2021.

3  Context of KMP Remuneration 
for FY2022 and into FY2023 – 
unaudited

3.1  Context for Remuneration Governance 
during FY2022

The KMP remuneration structures that appear in this 
reportarelargelythosethatprevailedoverFY2022,asis
requiredbyregulation,butalsoaddressexpectationsfor
FY2023,tosomeextent.

The Board has further developed remuneration 
governance, policies and practices applied to KMP 
oftheCompany,aswellasotheremployeesasthe
businesshasandcontinuestomature.Thefollowing
outlinesimportantcontextforthedecisionsthatwere
madeinrelationtoremunerationfor/duringFY2022,the
outcomesofwhicharepresentedinthisreport.

Acrow Annual Report 202224

	■ Atotalof7,901,708performancerightswereissued
to executives and senior managers in the 12 months 
to30June2022forthe2023and2024years.The
issueshavethree-yearmeasurementperiods.

	■ Atotalof1,175,618performancerightswereissued
toexecutivesandseniormanagersand364,000
cancelledinthe12monthsto30June2022
forthe2022year.Thisissuehadathree-year
measurement period.

	■ Atotalof359,000performancerightswereissued

outoftheLTVRplantoseniorexecutivesandsenior
managersrelatingtoshorttermincentive.These
rightswerevestedimmediatelyandallexercisedby
30June2022.

	■ TheCompanyisfocussedondeliveringvaluefor
shareholdersbyexecutingonstrategyincluding:

– Becomingtheleadingengineeredformworksales
and hire equipment solutions provider in Australia

4.2  Remuneration Committee Charter

TheRemunerationCommitteeCharter(theCharter)
governstheoperationoftheRemunerationCommittee
(theCommittee).ItsetsouttheCommittee’sroleand
responsibilities,composition,structureandmembership
requirements.ThepurposeoftheCommitteeistoassist
theBoardby:

	■ Establishingappropriateprocessesregardingthe

reviewoftheperformanceofdirectors,committees
and the Board, and implementing them,

	■ Reviewingandmakingrecommendationstothe
Boardinrelationtotheremunerationpackages
ofSeniorExecutivesandnon-executivedirectors,
equity-basedincentiveplansandotheremployee
benefitprograms,

	■ Developingpolicies,proceduresandpracticesthat

willallowtheCompanytoattract,retainandmotivate
highcalibreexecutives,and

– Becometheleadingengineeredsolutionsprovider

	■ Ensuringaframeworkforaclearrelationshipbetween

totheAustralianIndustrialServicesmarket

keyexecutiveperformanceandremuneration.

– Concentratingonprofitableorganicgrowth

– Activelypursuingstrategicallysensible

acquisitionstoaccelerateprofitablegrowth

– TargethighROIorganicgrowthopportunities

across all states

4  Overview of Acrow’s 
Remuneration Governance Framework 
& Strategy

4.1 

Transparency and Engagement

TheCompanyseeksinputregardingthegovernance
ofKMPremunerationfromawiderangeof
sources, including:

	■ Shareholdersandotherstakeholders,

	■ RemunerationCommitteeMembers,

	■ Externalremunerationconsultants(ERCs),

	■ Other experts and professionals such as tax advisors 

andlawyers,and

	■ Companymanagementtounderstandrolesand

issuesfacingtheCompany.

ThefollowingoutlinesasummaryofAcrow’s
RemunerationFramework,includingpoliciesand
practicestotheextentdeveloped.Shareholderscan
accessanumberoftherelateddocumentsbyvisitingthe
investorsportalontheCompanywebsitewww.acrow.
com.au.Itisrecommendedthatshareholders,proxy
advisors and other interested parties consider all the 
availableinformation.

TheCommitteehastheauthoritytoobtainoutsidelegal
or other professional advice or assistance on any matters 
withinitstermsofreference.

Acrowrecognisestheimportanceofensuringthatany
recommendationsgiventotheCommitteeprovidedby
remuneration consultants are provided independently 
ofthosetowhomtherecommendationsrelate.Further
informationabouttheparametersunderwhichexternal
remunerationconsultantsareengagedisprovidedbelow.

4.3  Senior Executive Remuneration Policy

TheCompany’sseniorexecutiveremunerationpolicy
maybesummarisedasfollows:

	■ Remunerationforseniorexecutivesshouldbe

composedof:

– FixedPackageinclusiveofsuperannuation,

allowances,benefitsandanyapplicablefringe
benefitstax(FBT),

– Variableremunerationwhichisat-risk,creating
opportunityfortheCompanytopaylessthan
thepotentialvariableremunerationwhen
performanceexpectationshavenotbeenmet,and
whichispartlyanincentivetorewardexecutives
formeetingorexceedingexpectations,including:

• ShortTermIncentive(STI)orBonus

opportunitywhichprovidesarewardfor
performanceagainstannualobjectives,and

• LongTermVariableRemuneration(LTVR)
whichprovidesanequity-basedrewardfor
performance against indicators of shareholder 

Remuneration Report – Audited for the year ending 30 June 2022Acrow Annual Report 202225

benefitorvaluecreation,overamulti-year
period, and

–

Intotalthesumoftheelementswillconstitutea
totalremunerationpackage(TRP).

	■ Bothinternalrelativitiesandexternalmarketfactors

shouldbeconsidered,

	■ Totalremunerationpackages(TRPs,whichinclude
FixedPackageandincentives)shouldbestructured
withreferencetomarketpractices,thepracticesof
competitors for talent, and the circumstances of the 
Companyatthetime,

	■ Remunerationwillbemanagedwithinarangeto

allowfortherecognitionofindividualdifferencessuch
asthecalibreoftheincumbentandthecompetency
withwhichtheyfulfilarole(arangeof+/-20%is
specifiedinlinewithcommonmarketpractices),and

	■ Terminationbenefitswillgenerallybelimitedtothe
defaultamountallowedforundertheCorporations
Act(withoutshareholderapproval).

Changestoremunerationresultingfromannualreviews
aregenerallytobedeterminedinrelationto:

	■

externalbenchmarking,and/ormarketmovements,

	■ whethercurrentremunerationfortheincumbent
isaboveorbelowthepolicymidpoint/benchmark
–thosebelowthemidpointwilltendtoreceive
higher increases,

	■

thecompetenceoftheincumbentinfulfillingtheirrole
whichdeterminestheirpositioningwithinthepolicy
range–highercalibreincumbentsareintendedtobe
positioned higher in the range, and

	■ anychangestointernalrelativitiesrelatedtorole/
organisation design that have occurred since the 
previouslyreview.

4.4  Non-executive Director 
Remuneration Policy

TheNon-executiveDirectorremunerationpolicyapplies
tonon-executivedirectors(NEDs)oftheCompanyintheir
capacityasdirectorsandasmembersofcommittees,
andmaybesummarisedasfollows:

	■ Remunerationmaybecomposedof:

– Boardfees,

– Committeefees,

– Superannuation,

– Otherbenefits,and

– Equity(ifappropriateatthetime)

	■ Remunerationwillbemanagedwithintheaggregate
feelimit(AFL)orfeepoolapprovedbyshareholders
oftheCompany,notingthatequitydoesnotcount
towardstheAFLunlesscashremunerationis
sacrificedforagrantofequity,refersection9.The
companyhasoperatedundertheAFLthroughout
the year,

	■ TheBoardmayseekadjustmenttotheAFLinthe

caseoftheappointmentofadditionalNEDs,orshould
theAFLbecomeinsufficienttoattractorretainthe
appropriatecalibreofNEDs,

	■ Remunerationshouldbereviewedannually,

	■ Committeefeesmaybeusedtorecogniseadditional
contributionstotheworkoftheBoardbymembers
ofcommitteesincircumstancesthattheworkloadof
the Board is not equally shared, and

	■ TheBoardChairfeewillbesetasamultipleofthe
feespayabletootherNEDs,inrecognitionofthe
additionalworkloadassociatedwiththisrole.

4.5  Short-Term Incentive Policy

Theshort-termincentivepolicyoftheCompanyis
that an annual component of executive remuneration 
shouldbeat-riskandallowtheCompanytomodulate
thecostofemploymenttoalignwithindividualand
Companyperformancewhilemotivatingvaluecreation
for shareholders:

	■ TheSTIshouldbepaidincashanddeferralshould
not apply since there is a separate component of 
remuneration(theLTVR)whichisintendedtoaddress
long term outcomes,

	■ Non-executivedirectorsareexcluded

from participation,

	■ Aterminationofemploymentwilltriggeraforfeiture

ofsomeorallofunearnedSTIentitlements
depending upon the circumstances of the 
termination.TheBoardretainsdiscretiontotriggeror
accelerate payment or vesting of incentives provided 
thelimitationonterminationbenefitsasoutlinedin
theCorporationsActarenotbreached,and

	■ Shorttermawardsarelinkedtothemaindriversof

valuecreationatthegroup,businessunitorindividual
level,asmaybeappropriatetotheroleandsubjectto
Boarddecision.

Acrow Annual Report 202226

4.6 

Long-Term Incentive Policy

Thelong-termincentivepolicyoftheCompanyisthatacomponentofremunerationofexecutivesshouldbeat-risk
andlinkedtoequityintheCompanytoensurethattheinterestsofexecutivesarealignedwiththoseofshareholders,
andshareriskwithshareholders:

Long Term Variable Remuneration Plan (LTVR)

Aspect

Purpose

FormofEquity

Plan Rules, Offers and Comments

TheLTVRPlan’spurposeistoprovideanelementofat-riskremunerationthat
constitutespartofamarketcompetitivetotalremunerationpackageandaimsto
ensurethatSeniorExecutiveshavecommonlysharedgoalsrelatedtoproducing
relativelyhighreturnsforShareholders.OtherpurposesoftheLTVRPlanare
toassistSeniorExecutivestobecomeShareholders,provideacomponentof
remunerationtoenabletheCompanytocompeteeffectivelyforthecalibreoftalent
requiredforittobesuccessfulandtohelpretainemployees,therebyminimising
turnoverandstabilisingtheworkforcesuchthatinperiodsofpoorperformancethe
costislesser(appliestonon-marketmeasuresunderAASB2).

Asatbalancedate,theCompanyhadOptionsandLoanfundedsharesforthe
purposesoftheLTVRoutstandingalthoughnonewereissuedintheyear.

Thecurrentplaninoperationatbalancedateincludestheabilitytograntthe
followingRightstoEligibleEmployeeswhichincludesDirectorsandemployeesas
nominatedbytheBoard:

	■ ShareAwards,

	■ PerformanceRights,whicharesubjecttoperformancerelatedvesting

conditions,andwhichmaybesettleduponexercisebynewissuesoronmarket
purchase of ordinary fully paid Shares,

	■ Options,whicharesubjecttoanexerciseprice,andwhichtypicallyhaveno

intrinsicvaluewhengranted(exercisepriceisaroundtheShareprice),creating
anincentivetoincreaseSharepriceandgrowshareholdervalue.TheOptions
maybesettledas“CashlessExercise”inwhichcaseonexerciseoftheOptions
theCompanywillonlyallotandissueortransferthatnumberofPlanShares
totheParticipantthatareequalinvaluetothedifferencebetweentheExercise
PriceotherwisepayableinrelationtotheOptionsandthethenmarketvalueof
thePlanSharesasatthetimeoftheexercise.Optionsmayalsobesubjectto
performance related vesting conditions, and

	■

LoanfundedsharesandsharepurchaseLoans,wherebytheCompanyprovides
anon-recourse,interestfreeloantoexecutivestoacquirefullypaidordinary
shares,withanassociatedobligationtorepaythelesseroftheloanamount
andthevalueoftheSharesattheendofthetermoftheloan.Thisfunctions
effectivelythesameasanOption,withnointrinsicvalueatthetimethe
arrangementismade,howeverparticipantsholdSharesatanearlierstage.The
proceedsoftheloanmustbeusedtobuyshares.Astheonlyrecourseonthe
loansisthesharesandtherearevestingconditions,thearrangementhasbeen
accountedforasshareoptions,asrequiredunderaccountingstandards.

No dividends accrue to unvested Rights or Options, and no voting rights are 
attached,howeverdividendsdoaccruetovestedLoanFundedShares(alongwith
votingentitlements)whichmustbeputtowardsrepaymentoftheLoanifany
amountisoutstanding.

Remuneration Report – Audited for the year ending 30 June 2022Acrow Annual Report 202227

Long Term Variable Remuneration Plan (LTVR)

Aspect

PlanLimit

LTIValue

Measurement Period

Plan Rules, Offers and Comments

UnlesspriorShareholderApprovalisobtained,thenumberofAwardswhichmay
begrantedunderthisPlan(assumingallOptionsandPerformanceRightswere
exercised)mustnotatanytimeexceedinaggregate10%ofthetotalIssuedCapital
oftheCompanyatthedateofanyproposednewAwards.

TheBoardretainsdiscretiontodeterminetheLTVRtobeofferedeachyear,subject
toshareholderapprovalinrelationtoDirectors,whentheRightsaretobesettledin
theformofanewissueofCompanyshares.TheBoardmayalsoseekshareholder
approvalforgrantstoDirectorsinothercircumstances,atitsdiscretion.

FY2022 Invitations

Eligibleemployeesweregranted7,901,708performancerightsoverfourtranches
withatotalfairvalueof$3,325,303.Thesehavepotentialvestingsin2023
and 2024.

Eligibleemployeesweregranted1,175,618performancerightsovertwotranches
withatotalfairvalueof$436,229.Thesehavepotentialvestingsin2022.

Selectedseniorexecutivesandmanagerswereissued359,000performancerights
relatingtoshorttermincentiveswithatotalfairvalueof$150,780.

Three-yearMeasurementPeriodscombinedwithannualgrantswillproduce
overlappingcyclesthatwillpromoteafocusonproducinglongtermsustainable
performance/valueimprovementandmitigatestheriskofmanipulationand
short-termism(continuousimprovement).Becauseofthetimingofgrants,thelife
oftheRightmaybelessthan3yearsattimes,howeverthisdoesnotimpactthe
MeasurementPeriodoverwhichperformanceismeasured.

Performance,Vestingand
ForfeitureConditions

TheBoardhasdiscretiontosetVesting,PerformanceandForfeitureConditionsand
foreachInvitation.Whensuchconditionsarenotmet,theentitlementlapses.

FY2022 Invitations

Exceptasindicatedbelow,aparticipantmustremainemployedbytheCompany
duringtheMeasurementPeriodandtheperformanceconditionsmustbesatisfied
forLTVRtovest.

Retesting

RetestingisnotcontemplatedunderthePlanRules.

AmountPayableforGrants

ThetargetvalueofLTVRisincludedinassessmentsofremunerationbenchmarking
andpolicypositioning.Noamountispayablebyparticipantsforgrantsof
PerformanceRights.AnAcquisitionPricewillapplyinrespectofgrantsofLoan
FundedShares(withanaccompanyingloan)andmayalsoapplytograntsofShare
Awards,whichmayormaynothaveVestingConditions.Anyloanmustberepaid
priortotheendoftheLoanTerm,uptotheMarketValueoftheLoanFundedShares
(non-recourse).

FortheFY2018grant,LoanFundedShareswereofferedatapriceof20ceach,
beingthesharepriceatthetimeofthegrantcalculation,andaloanforthisamount
wasprovidedtotheParticipantforthisamountinrespectofeachLoanFunded
Sharesacquired.ThesesharesvestedinMarch2020withonly280,500exercisedto
balancedate.

NonewLoanFundedShareshavebeengrantedsinceFY2019.

Acrow Annual Report 202228

Long Term Variable Remuneration Plan (LTVR)

Aspect

Plan Rules, Offers and Comments

ExerciseofGrants

DisposalRestrictionsetc.

CessationofEmployment

ParticipantswillberequiredtosubmitanExerciseNoticeinrespectofPerformance
RightsandOptions,inordertoconvertthemtoShares,aswellasthepaymentof
theExercisePriceinrespectofeachOptionexercised.Noamountispayableby
KMPontheexerciseofPerformanceRights.

Optionsand/orPerformanceRightsgrantedunderthisPlanmaynotbeassigned,
transferred,encumberedwithaSecurityInterestinoroverthem,orotherwise
disposedofbyaParticipant,unlesstheconsentoftheBoardisobtained,ordueto
theforceoflawinthecaseofthedeathofaParticipant.TheBoardhasdiscretion
todeterminethedisposalrestrictionsattachingtoShareAwards,LoanFunded
SharesorPlanShares(resultingfromvestingandexerciseofgrants)aspartofthe
Invitationterms.

Intheeventofcessationofemploymentinthecircumstancesofa“BadLeaver”
(resignationorterminationforcause),allunvestedentitlementswillbeforfeited.
Inothercircumstances,thetreatmentofunvestedawardswillbedealtwithas
determinedbytheBoard.

InthecaseofoutstandingloansrelatedtoLoanFundedShares,aBadLeaver
mustrepaytheloanbythedateofthecessationofemployment.Inothercasesof
termination,theParticipantwillhavesixmonthsfromthedateofthetermination,
torepaytheloan.IftheserequirementsarenotsatisfiedtheLoanShares
are surrendered.

ChangeofControlofthe
Company(CoC)

IfintheopinionoftheBoardachangeofcontroleventhasoccurred,orislikely
to occur;

a) PerformanceRightsgrantedwillvesttotheextentthattheperformanceperiod
haselapsed,andtotheextentperformanceconditionshavebeenmet(may
involveapro-ratacalculation),withtheremainderlapsing,

b) Optionsmaybesubjecttoacceleratedvestinginthesolediscretionofthe

Board, and

c) ShareAwardsorLoanFundedShareswhichdonotvestwillautomaticallybe

surrenderedbytheParticipant,andanythatdonotlapse,andwhicharesubject
toanoutstandingloanwillbesubjecttotherequirementoftheloanbeingrepaid
bythedateoftheCoC.

FraudulentorDishonest
Actions

IftheBoardtakestheviewthataParticipanthasactedfraudulently,dishonestly,
orwilfullybreachestheirdutiestothegroup,theBoardhasdiscretiontodetermine
thatunvestedorunexercisedawardsareforfeited.

	■ TheLTVRshouldbebasedonPerformanceRights

orOptions(whichmayincludeLoanFundedShares
arrangements)thatproduceabenefitforParticipants
whenperformanceobjectivesaremet(whichmay
includeincreasingShareprice),

	■ The measurement period for long term incentives 

shouldbeatleasttwoyears,

	■ Aterminationofemploymentwilltriggeraforfeiture
ofsome,orallofthelong-termincentivesheldbyan
executiveinrespectofwhichperformanceconditions
andhurdleshavenotyetbeenmet,dependingupon
thecircumstancesofthetermination.TheBoard

retains discretion to trigger or accelerate payment 
or vesting of incentives provided the limitation on 
terminationbenefitsasoutlinedintheCorporations
Actarenotbreached.

4.7  Securities Trading Policy

TheCompany’sSecuritiesTradingPolicyappliesto
DirectorsandexecutivesclassifiedasKMP(including
theirrelativesandassociates),thoseemployeesworking
closelywithKMP,employeesnominatedbytheBoard,
oranyotheremployeeholdinginsideinformation.Itsets
outtheguidelinesfordealinginanytypeofCompany

Remuneration Report – Audited for the year ending 30 June 2022Acrow Annual Report 202229

Securitiesbypersonscoveredbythepolicy,andthe
requirementfortheCompanytobenotifiedwithin
2 businessdaysofanydealing.Italsosummarisesthe
lawrelatingtoinsidertradingwhichappliestoeveryone
atalltimes.Underthecurrentpolicy,thosecoveredby
thepolicymaynottradeduringa“blackoutperiod”or
whentheyholdinsideinformation(subjecttoexceptional
circumstances arrangements, see the policy on the 
Companywebsite).Thefollowingperiodsinayearare
“blackoutperiods”asdefinedinthepolicy:

	■ 2weekspriortothereleaseoftheCompany’shalf

year results,

	■ Fromthefinancialyearbalancedateuntil24hours
followingthereleaseoftheCompany’spreliminary
fullyearresults(Appendix4E),

	■ Within24hoursofreleaseofpricesensitive

informationtothemarket,and

	■ anotherdateasdeclaredbytheBoard(“ad-hoc”).

4.8  Executive Remuneration Engagement Policy 
and Procedure

TheCompanyhasadoptedanexecutiveremuneration
engagement policy and procedure to manage the 
interactionsbetweentheCompanyandexternal
remuneration consultants, to ensure their independence 
andthattheRemunerationCommitteewillhaveclarity
regardingtheextentofanyinteractionsbetween
managementandtheexternalremunerationconsultants.
ThispolicyenablestheBoardtostatewithconfidence
whethertheadvicereceivedhasbeenindependent,and
whythatviewisheld.ThePolicystatesthatexternal
remunerationconsultantsaretobeapprovedand
engagedbytheBoardbeforeanyadviceisreceived,and
thatsuchadvicemayonlybeprovidedtoanon-executive
director.Interactionsbetweenmanagementandthe
externalremunerationconsultantsmustbeapprovedand
willbeoverseenbytheRemunerationCommitteewhen
appropriate.Refertosection13.

4.9  Variable Executive Remuneration – The Short-Term Incentive Bonus Plan

Short Term Incentive Plan (STIP)

Aspect

Purpose

Measurement Period

AwardOpportunities

Performance Assessments 
andAwardOutcomes

AwardPayment

Plan Rules, Offers and Comments

Theshort-termincentivebonusplan’spurposeistogiveeffecttoanelementof
remuneration.Thiselementofremunerationreinforcesaperformancefocussed
culture,encouragesteamworkandco-operationamongexecutiveteammembers
andmaintainsastableexecutiveteambyhelpingretainkeytalent.Theseobjectives
aimtobeachievedbyasimpleplanthatrewardsparticipantsfortheirperformance
duringa12-monthperiod.

TheCompany’sfinancialyear(12months).Fortheyearended30June2022,the
measurementperiodwasfrom1July2021to30June2022.

TheCEOwasofferedanopportunityofupto50%ofFixedPackagewhichis
basedonachievingarangeofmeasurableKPI’swhicharepredominatelybased
onachievingProfitbeforeTaxtargetsandstrategicgoalsandmeetingsafety
standards.ForotherKMPExecutives,theirindividualKPI’saredeterminedbythe
CEOincollaborationwiththeBoard.

PerformanceassessmentsareundertakenbytheCEOinrelationtootherSenior
ExecutiveswhothenmakerecommendationstotheBoard,andbytheBoardin
relationtotheCEO.TheBoardhasdiscretiontovarytherecommendationsofthe
CEOindeterminingfinalawardoutcomes.

Assessmentsandawarddeterminationsareperformedfollowingtheendofthe
MeasurementPeriodandtheauditingofCompanyaccounts.Awardswillgenerally
bepaidincashintheSeptemberfollowingtheendoftheMeasurementPeriod.
TheyaretobepaidthroughpayrollwithPAYGtaxdeductedasappropriate.There
arelimitedsituationswhereawardsmaybesatisfiedthroughtheissueofequity.
Deferralhasnotbeenintroducedduetothemixofshorttermandlong-term
incentivesbeingappropriatelyweighted.

Acrow Annual Report 202230

Short Term Incentive Plan (STIP)

Aspect

Plan Rules, Offers and Comments

CessationofEmployment
DuringaMeasurement
Period

Intheeventofcessationofemploymentduetodismissalforcause,allentitlements
inrelationtotheMeasurementPeriodareforfeited.

Intheeventofcessationofemploymentduetoresignation,allentitlementsin
relationtotheMeasurementPeriodareforfeited,unlesstheterminationisclassified
as“goodleaver”inthediscretionoftheBoard,inwhichcasetheBoardmaymake
anawardatthetimeofthetermination,orassessoutcomesatthenormaltime,
followingthetermination.

ChangeofControl

IntheeventofaChangeofControlincludingatakeover,theBoardhasdiscretion
regardingthetreatmentofshort-termincentivebonusopportunities.

Fraud,GrossMisconduct
etc.

IftheBoardformstheviewthataParticipanthascommittedfraud,defalcationor
grossmisconductinrelationtotheCompanythenallentitlementsinrelationtothe
MeasurementPeriodwillbeforfeitedbythatparticipant.

4.10  Variable Executive Remuneration – Long Term Variable Remuneration Plan (LTVR) – 
Performance Rights

TheLTVRplanisanannualperformancerightsplantowhichselectedexecutivesandKMPareinvitedtoparticipate
attheBoard’sdiscretion.TheCompanycurrentlyhastwoLTVRplansrunningwhichsharethesamemethodbutdiffer
slightlyintheirhurdlesandvestingcriteriadetailedinthetablebelow.Allofthe2023and2024plansweregrantedin
theformofperformancerightsdirectlylinkedtotheperformanceoftheCompany,thereturnsgenerated,andrelative
increasesinshareholderwealth.Thisstructurewasusedtoensureappropriatealignmenttoshareholdervalueovera
specifiedtimeframe.

Long Term Variable Remuneration Plan (LTVR)

Aspect

Instrument

Purpose

Plan limit

Plan Rules, Offers and Comments

Performancerightsbeingarighttoreceiveasharesubjecttoperformanceand
vestingconditions.

Tomotivateexecutivestoachievethelong-termperformancetargets.

Performancerightsissuedfor2023and2024relyonCorporationsActSection708
relief–“SeniorManagers”.

Performancerightsissuedoutstandingfor2022wereissuedunderClassOrder
exemption14/1000.

Remuneration Report – Audited for the year ending 30 June 2022Acrow Annual Report 202231

Long Term Variable Remuneration Plan (LTVR)

Aspect

LTVRValue

Plan Rules, Offers and Comments

TheBoardretainsdiscretiontodeterminetheLTVRtobeofferedeachyear

2021 plan vested

Themeasurementperiodofthe2021planfinishedon30June2021.The
performanceoutcomeresultedin45%ofrightsonissuevesting.60%oftheEPS
rightsvestedand40%lapsed,TSRrightsdidnotmeetthresholdperformanceand
lapsed.Atotalof3,526,620werevestedduringtheyearwithallbut361,500being
exercisedintoordinarysharesasatthedateofthisreport.

KMPSteveBolandvested495,900rightsandsubsequentlyexercisedintoshares.
606,100rightsdidnotmeetperformancehurdlesandlapsed.

KMPAndrewCrowthervested247,500rightsandsubsequentlyexercisedinto
shares.302,500rightsdidnotmeetperformancehurdlesandlapsed.

2022 plan outstanding

Duringtheyearanadditional1,175,618performancerightswereissuedtosenior
executivesandmanagersatavalueof$436,229.Therewere364,000performance
rightscancelledduetoterminationofemployment.

Valuationofadditional2022performancerightsusedMonteCarlosimulationwith
inputsincluded:

	■ Exerciseprice:nil

	■ Sharepriceatgrantdateofbetween$0.42and$0.52

	■ Expectedpricevolatilitybetween30%and36%basedoncomparablecompanies

	■ Expecteddividendyieldbetween4.7%and5.8%

	■ Risk-freeinterestratebetween0.05%and0.08%

Thereare8,921,618performancerightsavailableforvestingatthedateof
this report.

KMPSteveBolandhas1,102,000rightsavailableforvesting.

KMPAndrewCrowtherhas550,000rightsavailableforvesting.

Short term incentive

Therewere359,000performancerightsissuedduringtheyearrelatingtoshortterm
incentivesforcertainseniorexecutivesandmanagersatavalueof$150,780.These
rightsvestedimmediatelywithnoperformanceconditionsandhavesubsequently
beenexercisedintoshares.

2023 plan Invitations 

Atotalof3,584,434performancerightshavebeengrantedinthe2023planwithnil
cancelledatthedateofthisreport.

KMPAndrewCrowtherhasbeenissued418,664performancerightsinthisplan
withatotalfairvalueof$184,322.

Acrow Annual Report 202232

Long Term Variable Remuneration Plan (LTVR)

Aspect

Plan Rules, Offers and Comments

LTVRValue(continued)

2024 plan Invitations 

Dividends

Tranches

Atotalof4,317,274performancerightshavebeengrantedinthe2024planwithnil
cancelledatthedateofthisreport.

KMPAndrewCrowtherhasbeenissued426,426performancerightsinthisplan
withatotalfairvalueof$172,576.

Valuationof2023and2024performancerightsusedMonteCarlosimulationwith
inputsincluded:

	■ Exerciseprice:nil

	■ Sharepriceatgrantdateof1June2022was$0.48

	■ Expectedpricevolatilitybetween14%and33%–basedon

comparable companies

	■ Expecteddividendyield5.1%

	■ Risk-freeinterestratebetween2.25%and3.6%

Nodividendsarepaidoraccruedonunvestedawards

2023 plan:

	■ 50%issuemeasuredonEarningspershare(EPS)criteriaspecifically“NPAT/

Weightedaveragenumberofsharesonissue”

	■ 50%issuemeasuredonTotalShareholderreturn(TSR)criteria.Thiscompares

thesharepriceanddividendsthroughthemeasurementperiodtotheASXsmall
industrialsindex.

2024 Plan:

	■ 50%issuemeasuredonEarningspershare(EPS)criteriaspecifically“NPAT/

Weightedaveragenumberofsharesonissue”

	■ 50%issuemeasuredonTotalShareholderreturn(TSR)criteria.Thiscompares

thesharepriceanddividendsthroughthemeasurementperiodtotheASXsmall
industrialsindex.

Remuneration Report – Audited for the year ending 30 June 2022Acrow Annual Report 202233

Long Term Variable Remuneration Plan (LTVR)

Aspect

Plan Rules, Offers and Comments

Performance hurdles

ThevestingoftheTSRPerformanceRightswillbedeterminedbyreferencetothe
followingscale,inrelationtotheMeasurementPeriod:

Performance Level

Company’s Annulised TSR Compared to 
the Annualised TSR of the ASX Small 
Industrials total Return Index

% of Tranche 
Vesting

StretchandAbove

IndexTSR+160%TSRCAGR

BetweenTarget
and Stretch

Target

BetweenThreshold
and Target

Threshold

BelowThreshold

>130%IndexTSR, 
<160%TSRCAGR

100%

Pro-rata

130%IndexTSR

50%

>IndexTSR,<130%TSRCAGR

Pro-rata

IndexTSR

<IndexTSR

0%

0%

TSRisthesumofSharepriceappreciationanddividends(assumedtobereinvested
inShares)duringtheMeasurementPeriod.Itisannualisedforthepurposesof
theabovevestingscale.CAGRisCompoundAnnualGrowthRate.TheCompany’s
annualisedTSRwillbecomparedwiththeannualisedTSRoftheIndex.

ThevestingofEPSPerformanceRightswillbedeterminedbyreferencetothe
followingscale,inrelationtotheMeasurementPeriod:

Performance Level

Earnings Per Share (EPS) CAGR

StretchandAbove

BetweenTarget
and Stretch

Target

BetweenThreshold
and Target

Threshold

BelowThreshold

20%

>10%,<20%

10%

>8%,<10%

8%

<8%

% of Tranche 
Vesting

100%

Pro-rata

50%

Pro-rata

0%

0%

EPSgrowthwillbecalculatedastheCAGRrequiredfortheEPSintheyear
immediately prior to the commencement of the Measurement Period to equal 
theEPSachievedinthefinalyearoftheMeasurementPeriod.TheEPSwillbe
calculatedasfollowsforeachyearofthecalculation:

Acrow Annual Report 202234

Long Term Variable Remuneration Plan (LTVR)

Aspect

Plan Rules, Offers and Comments

Performance hurdles 
(continued)

NPAT EPS ÷ Time Weighted Average Issued Shares

	■ NPATinanyperiodrelatingtotheplanwillbesignedoffbytheBoard.Thiswill

alsoinclude“base”capexbudgetedtoachievethebudgetedNPAT.

	■ AnycapexacquiredabovebudgetwillrequirethetargetNPATadjustedfor
therelevantmeasurementyearsatarequiredreturnof40%weightedpost
taxforthetimeavailable(i.e.abovebudgetcapex40%returntimeavailable
during year).

	■

IfanyM&Aactivityoccurs,theNPATwillbeadjustedinconsultationwith
the Board.

	■ TheBoardhasdiscretionregardingwhetherornottoapproveadjustments

relatingtoNPATateachmeasurementperiod.

Options and Loan funded shares granted before FY2021

ConditionsofissueshavebeenincludedinpreviousRemunerationreports.For
KMP’sthevestingconditionsincludeminimumserviceperiodofoneyeartofour
yearsandvarioussharepricetargetswithexercisepriceof20centsto50cents.

AndrewCrowtherhas600,000outof1,200,000unitsofoptions(allwithexercise
priceof40centsperunit)vestedbutremainunexercisedaftertwoyearsofservice
periodbeforereportingdate.Theremaining600,000unitsconsistoftwofurther
tranchesfurtherequaltranchesvestingoverthreeandfouryearsofserviceperiods.

Gateway

TSRandEPSPerformanceRightsarenotsubjecttoagate,however,vestingabove
TargetinanyyearswillbesubjecttotheBoardsdiscretionaryapproval.

Measurement Period and 
vesting dates

2023 Plan:1July2020to30June2023(3years)

2024 plan:1July2021to30June2024(3years)

Eachgrantistestedonthegrantperformancehurdlescriteriaattheendofthe
measurementperiod.

Vestingforeachsuccessfultrancheoccursonlyafterthesignedauditedfinancial
statementsarelodgedwiththeAustralianStockExchangerelevanttoeachplan.

Retesting

RetestingisnotcontemplatedunderthePlanRules.

Amountpayableforgrants

NoamountispayablebyparticipantsforgrantsofPerformanceRights

ExerciseofGrants

Performance Assessments 
andAwardOutcomes

AwardPayment

ParticipantswillberequiredtosubmitanExerciseNoticeinrespectofvested
performancerightsinordertoconvertthemtoShares.EachRighthasaTerm
of15 yearsfromtheGrantDateandifnotexercisedwithinthatTermtheRights
will lapse.

At the end of each performance period, the Remuneration and Nomination 
Committeeassessestherelevantperformancemeasuresanddeterminesthe
extenttowhichtheawardsshouldvest.Paymentismadebytheissuingortransfer
of shares.

Assessmentsandawarddeterminationsareperformedfollowingtheendofthe
MeasurementPeriodandtheauditingofCompanyaccounts.Awardswillgenerally
bepaidincashintheSeptemberfollowingtheendoftheMeasurementPeriod.
TheyaretobepaidthroughpayrollwithPAYGtaxdeductedasappropriate.There
arelimitedsituationswhereawardsmaybesatisfiedthroughtheissueofequity.
Deferralhasnotbeenintroducedduetothemixofshorttermandlong-term
incentivesbeingappropriatelyweighted.

Remuneration Report – Audited for the year ending 30 June 2022Acrow Annual Report 202235

Long Term Variable Remuneration Plan (LTVR)

Aspect

Plan Rules, Offers and Comments

CessationofEmployment
DuringaMeasurement
Period

ChangeofControl

Intheeventofcessationofemploymentduetodismissalforcause,allentitlements
inrelationtotheMeasurementPeriodareforfeited.

Intheeventofcessationofemploymentduetoresignation,allentitlementsin
relationtotheMeasurementPeriodareforfeited,unlesstheterminationisclassified
as“goodleaver”inthediscretionoftheBoard,inwhichcasetheBoardmaymake
anawardatthetimeofthetermination,orassessoutcomesatthenormaltime,
followingthetermination.

Ifachangeofcontroloccurspriortothevestingofanaward,thentheBoardmay
determineinitsabsolutediscretionwhetherallorsomeofaparticipant’sunvested
awardvest,lapse,isforfeited,orcontinues.

5  Proforma Executive Remuneration for FY2022 (non-statutory disclosure) 
– unaudited
ThedisclosuresrequiredundertheCorporationsAct(includingregulations)andpreparedinaccordancewith
applicableaccountingstandards,donotprovideshareholderswithanunderstandingoftheintendedremuneration
inagivenyear.Forexample,theLTVRdisclosedisnotreflectiveoftheremunerationopportunityfortheyearbeing
reportedon,duetotherequirementsofAASB2.Therefore,thefollowingtableisprovidedtoensurethatshareholders
haveanaccurateunderstandingoftheBoard’sintentionregardingtheremunerationofferedtoexecutivesduring
FY2022.Thevaluespresentedreflecttheremunerationforafullyeari.e.ignoringanypart-yearreportingimpact.

Position

Incumbent

Fixed Package 
including 
super1

Target STI2

LTVR 
Opportunity

Total Value 
of Package

ExecutiveDirectorand
ChiefExecutiveOfficer

Steven Boland

$553,519

$276,760

$247,922

$1,078,201

ChiefFinancialOfficer

AndrewCrowther

$327,818

$98,346

$93,706

$519,870

ExecutiveDirector

MargaretProkop(resigned
31December2021)

$83,345

–

–

$83,345

1 Packageincludescarallowanceandsuperannuation.

2 WithStevenBoland(CEO),STIiscappedat50%ofhispackage;withAndrewCrowther(CFO)STIiscappedat30%ofhispackagesubject

toachievingindividualKPIsandperformancetargets.

Acrow Annual Report 202236

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Remuneration Report – Audited for the year ending 30 June 2022Acrow Annual Report 2022 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
37

7  Performance Outcomes for FY2022

7.1  Company Performance

ThefollowingoutlinestheperformanceoftheCompanyovertheFY2016andFY2022periodinaccordancewiththe
requirementsoftheCorporationsAct:

Corporate Performance Measures

FY End Date

Revenue

Tax Share Price

Profit/
(loss) after 

Change in 
Share Price

Total 
Dividend 
per Share3

30June2022

$148,345,521 $15,694,168

30June2021

$105,743,623

$3,962,998

30June2020

$81,681,600

$3,013,023

30June2019

$68,858,910

$4,948,715

30June20181

$15,478,995 $10,510,658

$0.505

$0.375

$0.315

$0.300

$0.290

$0.130

$0.060

$0.015

$0.010

$0.170

30June2017

30June20162

$0

$0

$(613,395)

$0.120

$(0.06)

$8,468,607

$0.180

n/a

$0.024

$0.018

$0.010

$0.015

Nil

Nil

Nil

ST change in Shareholder 
Value over 1-year value 
(SP increase + Dividends)

Amount

$0.154

$0.078

$0.025

$0.025

$0.170

$(0.06)

n/a

%

41%

25%

8%

9%

142%

(33%)

n/a

1 Theabove30June2018representsthree-monthsconsolidatedresultsinceAcrow’sacquisitionoftheAcrowHoldingsGroupfromApril18

toJune2018.

2 TheCompanywasnotlistedbetweenJuly2013toApril2016andhencenofurtherhistoricalresultsprovided.

3 Dividendspaidarethecashamount(postfranking).

Links Between Performance and Reward 

7.2 
Including STI and LTVR Determinations

long-termmeasurementperiodandvestingconditions
thatareyettobecompleted/assessed.

TheremunerationofexecutiveKMPisintendedtobe
composedofthreepartsasoutlinedearlier,being:

	■ FixedPackage,whichisnotintendedtovarywith

performance,butwhichtendstoincreaseasthescale
ofthebusinessincreases(i.e.following success),

	■ STIwhichisintendedtovarywithindicatorsofannual

Companyandindividualperformance,and

	■

LTVRwhichisalsointendedtodeliveravariable
rewardbasedonlong-termmeasuresof
Company performance.

IfSTIisachieved,itispaidaftertheendofthefinancial
perioditrelatedto.Thislevelofpotentialawardwas
consideredappropriateundertheSTIprocessasitstood
atthetime,andstronglylinkedtoperformance.

FollowingtheendofFY2022,reportsontheCompany’s
activitiesduringtheyearwerepreparedforthe
Board.TheBoardthenassessedtheextenttowhich
expectationshadbeenmetorexceededinrelationto
theCompanyandeachrole,tocalculatethetotalaward
payable.ThisincludedassessedNPAT,underlying
EBITDAandEPSgrowth.

Duringthereportingperiod,grantsofequityweremade
inrelationtotheLTVRschemeaspartofremuneration
forFY2022butdidnotvestduetothepresenceofthe

Links Between Company Strategy 

7.3 
and Remuneration

TheCompanyintendstoattractthesuperiortalent
requiredtosuccessfullyimplementtheCompany’s
strategiesatareasonableandappropriatelyvariable
cost by:

	■ positioningFixedPackages(thefixedelement)

aroundrelevantmarketdatabenchmarkswhenthey
areundertaken,and

	■

supplementingtheFixedPackagewithat-risk
remuneration and incentives that motivate executive 
focuson:

– shorttomid-termobjectiveslinkedtothestrategy

via annual performance assessments, and

–

longtermvaluecreationforshareholdersby
linkingamaterialcomponentofremunerationto
those factors that shareholders have expressed 
shouldbethelong-termfocusofexecutivesand
theBoard,suchassharepriceappreciation.

Totheextentappropriate,theCompanylinks
strategic implementation and measures of success 
ofthestrategy, directlytoincentivesinthewaythat
performanceisassessed.

Acrow Annual Report 202238





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Acrow Annual Report 2022 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
48

12  Other Remuneration Related Matters
Thefollowingoutlinesotherremunerationrelatedmattersthatmaybeofinteresttostakeholders,intheinterestsof
transparencyanddisclosure:

	■ OtherthaninthecaseofgrantsofLoanFundedShares,therewerenoloanstoDirectorsorotherKMPatanytime

during the reporting period, and

	■ OthertransactionswithKMP:



Aswiththepreviousyear,theCompanyleasesanumberofindustrialandcommercialpropertiesfrom
MargaretProkop’spersonalcompanies(MRPProperty,MRPPropertyQLD&MRPSuperannuation)through
theNatformsubsidiaries.Rentalandrelatedout-goingpaymentstothesecompaniesamountedto$1,057,924
(2021: $852,581).

13  External Remuneration Consultant Advice
Duringthereportingperiod,theBoardengagedexternalremunerationconsultantstoprovideKMPremuneration
recommendationsrelatingtoremunerationpostthedateofthisreportincludingthelong-termvariableremuneration
referredtoinsubsequenteventsintheDirectorsReport.

TheBoardreviewedtherecommendationsfromtheexternalremunerationadvisordirectlyandindependent
ofexecutivemanagementandaresatisfiedtherecommendationsweremadefreeofundueinfluenceofthe
relevant KMP’s.

TheBoardhasadoptedapolicytogovernanysuchfutureengagements,thedetailsofwhichwillbedisclosedinfuture
RemunerationReportsshouldtheyarise.

EndofauditedRemunerationsReport.

Remuneration Report – Audited for the year ending 30 June 2022Acrow Annual Report 2022Financial Statements fortheyearending30June2022

49

Statement of Profit or Loss and other Comprehensive Income
fortheyearended30June2022

In dollars

Continuing operations

Revenue

Other income

Personnel expenses

Sub-contractlabourcosts

Inventorypurchased,netofchangesinfinishedgoods

Depreciation

ITandtelecommunicationexpenses

Freightcosts

Insuranceexpenses

Gain on fair value of derivatives

ContingentconsiderationrelatedtoUni-spanacquisition

Other expenses

Profit before finance costs and income tax

Financecosts

Profit before income tax

Incometaxexpense

Profit from continuing operations 

Other comprehensive income

Items that may be reclassified to profit / (loss)

Note

2022

2021

4

5

6

7

8

140,826,918

94,608,887

4,955,787

6,552,430

(51,875,934)

(36,585,402)

(18,039,520)

(16,646,962)

(31,642,371)

(18,276,344)

(13,070,352)

(11,563,598)

(1,641,245)

(1,542,961)

(1,975,256)

(1,664,296)

(1,090,449)

(813,199)

–

–

350,000

(148,264)

(5,278,112)

(4,822,433)

21,169,466

9,447,858

(3,513,116)

(3,305,705)

 17,656,350 

6,142,153

(1,962,182)

(2,179,155)

 15,694,168

3,962,998

Foreignoperations–foreigncurrencytranslationdifferences

1,431

(1,407)

Total comprehensive income for the year

15,695,599

3,961,591

Earnings per share from continuing operations 

BasicEPS(centspershare)

DilutedEPS(centspershare)

24

24

6.32

6.06

1.82

1.77

Theabovestatementshouldbereadinconjunctionwiththeaccompanyingnotes.

Acrow Annual Report 202250

Statement of Financial Position
asat30June2022

In dollars

Current assets

Cashandcashequivalents

Tradeandotherreceivables

Inventories

Contractassets

Prepayments and other assets

Assets held for sale

Total current assets

Non-current assets

Property, plant and equipment

Right-of-useleaseassets

Intangibleassets

Total non-current assets

Total assets

Current liabilities

Bankoverdraft

Tradepayables

Otherpayables

Employeebenefits

Leaseliabilities

Loansandborrowings

Currenttaxliabilities

Liabilitiesassociatedwithassetsheldforsale

Total current liabilities

Non-current liabilities 

Employeebenefits

Leaseliabilities

Loansandborrowings

Provisions

Deferredincometaxliability

Total non-current liabilities

Total liabilities

Net assets

Equity 

Issuedcapital

Reserves

Retained earnings

Total equity

Note

2022

2021

9

10

11

12

12

13

14

15

16

9

17

17

18

15

19

21

13

18

15

19

20

21

3,010,433

1,754,622

34,362,867

24,611,736

14,872,186

8,958,554

111,927

775,168

5,075,832

3,618,377

72,579

66,507

 57,505,824 

39,784,964

95,490,436

83,008,854

24,478,720

28,808,936

7,428,704

7,428,704

127,397,860

119,246,494

184,903,684

159,031,458

3,001,005

1,865,938

21,484,027

25,122,155

–

3,486,289

6,159,454

4,639,524

4,964,215

4,645,552

17,001,678

7,898,384

1,869,031

67,063

310,331

61,453

 54,546,473 

48,029,626

444,988

611,541

23,285,254

27,396,387

15,848,299

14,440,464

469,274

469,274

6,990,415

6,596,723

47,038,230 

49,514,389

 101,584,703 

97,544,015

 83,318,981 

61,487,443

58,310,046

46,703,384

3,059,423

3,026,437

21,949,512

11,757,622

83,318,981

61,487,443

Theabovestatementshouldbereadinconjunctionwiththeaccompanyingnotes.

Financial Statements for the year ending 30 June 2022Acrow Annual Report 202251

Statement of changes in equity
fortheyearended30June2022

In dollars

Share-
based 
option 
payments 
reserve

Foreign 
currency 
translation 
reserve

Share 
capital

Retained 
earnings Total equity

Balance at 30 June 2020

45,674,176

858,546

55,718

11,706,794

58,295,234

Total comprehensive income for the period

Profitfortheyear

Other comprehensive income

Total comprehensive income

Transactions with owners of the company 

Dividendspaidtoshareholders

–

–

–

–

Shares issued under dividend reinvestment 
plan(DRP)

766,913

–

–

–

–

–

Equitysettledsharebasepayments

–

2,245,520

Options exercised

262,295

(131,940)

–

3,962,998

3,962,998

(1,407)

–

(1,407)

(1,407)

3,962,998

3,961,591

–

–

–

–

(3,912,170)

(3,912,170)

–

–

–

766,913

2,245,520

130,355

Total transactions with owners of 
the company

1,029,208

2,113,580

–

(3,912,170)

(769,382)

Balance at 30 June 2021

46,703,384

2,972,126

54,311

11,757,622

61,487,443

Total comprehensive income for the period

Profitfortheyear

Other comprehensive income

Total comprehensive income

–

–

 – 

Transactions with owners of the company 

Shares issued net of transaction costs

9,897,173

Options & Performance Rights forfeited, 
writtenbacktoP&L

Options & Performance Rights failed to 
meetmarketcondition

Dividendspaidtoshareholders

–

–

–

Shares issued under dividend reinvestment 
plan("DRP"),netofcosts

951,671

–

–

– 

–

(409,120)

(398,910)

–

–

Equitysettledsharebasepayments

1,573,788

Transfer of option reserves to share capital

734,203

(734,203)

Proceeds from exercise of options,  
net of costs

Total transactions with owners of  
the company

23,615

–

–

15,694,168

15,694,168

1,431

–

1,431

1,431  15,694,168  15,695,599 

–

–

–

–

–

–

–

–

–

–

9,897,173

(409,120)

398,910

–

(5,901,188)

(5,901,188)

–

–

–

–

951,671

1,573,788

–

23,615

Balance at 30 June 2022

58,310,046

3,003,681

55,742

21,949,512

83,318,981

Theabovestatementshouldbereadinconjunctionwiththeaccompanyingnotes.

11,606,662

31,555

–

(5,502,278)

6,135,939

Acrow Annual Report 202252

Statement of Cash Flows
fortheyearended30June2022

In dollars

Note

2022

2021

Cash flows from operating activities

Receipts from customers

Receipts on lease revenue

Payments to suppliers and employees

Incometaxpaid

Net cash inflow from operating activities

Cash flows from investing activities

Proceeds from disposal of property, plant and equipment

Purchase of property, plant and equipment

Deferredpaymentonacquisitions

Net cash outflow from investing activities

Cash flows from finance activities

Proceeds from issue of shares

Capitalraisingcosts

Proceeds from exercise of options, net of costs

Proceedsfromborrowings

Repaymentofborrowings

Repaymentofleaseliabilities

DividendspaidnetofDRP

Financecostspaid

Net cash inflow/(outflow) from financing activities

Net increase/(decrease) in cash and cash equivalents

Cashandcashequivalentsasat1July2021

Effectofexchangeratefluctuationsoncashheld

Cash and cash equivalents at the end of the year

21

5

14

17

88,716,570

46,116,027

54,374,672

46,429,610

(131,718,641)

(79,665,777)

(9,790)

(556,302)

 11,362,811 

12,323,558

7,518,603

11,134,735

(22,378,490)

(17,409,883)

(3,582,656)

(3,567,944)

(18,442,543)

(9,843,092)

 10,500,000 

(602,826)

–

–

16,525

130,355

28,528,971

6,793,284

(18,017,843)

(6,272,932)

15

(5,145,257)

(4,198,952)

(4,942,427)

(3,145,257)

(3,136,668)

(3,136,790)

 7,200,475 

(9,830,292)

 120,743 

(7,349,826)

(111,316)

7,238,511

1 

(1)

 9,428 

(111,316)

Theabovestatementshouldbereadinconjunctionwiththeaccompanyingnotes.

Financial Statements for the year ending 30 June 2022Acrow Annual Report 2022Notes to the Consolidated  
Financial Statements fortheyearending30June2022

53

Contents

1 

2 

3 

4 

5 

6 

7 

8 

9 

Reporting entity 

Basis of preparation 

Significant accounting policies 

Revenue 

Other income 

Other expenses 

Finance costs 

Income tax expense 

Cash and cash equivalents 

10  Trade and other receivables 

11 

Inventories 

12  Prepayments and other assets 

13  Assets and liabilities held for sale 

14  Property, plant and equipment  

15  Leases 

16 

Intangible assets 

17  Trade and other payables 

18  Employee benefits  

19  Loans and borrowings 

20  Provisions 

21 

 Deferred income tax liability and  
tax liability 

22 

Issued capital 

23  Capital management 

24  Earnings per share 

25  Capital commitments 

26 

 Reconciliation of cash flows from 
operating activities 

27  Remuneration of auditors 

28 

 Key management personnel and 
related parties 

29  Share-based payments 

30  Financial risk management 

31  Group entities 

32  Operating segments 

33  Parent entity disclosures 

34  Deed of cross guarantee 

35  Subsequent events 

1.  Reporting entity
AcrowFormworkandConstructionServices
Limited(AcrowortheGroup)isalimitedcompany
incorporatedinAustraliaandwhosesharesaretraded
ontheAustralianSecuritiesExchangeundertheissuer
code “ACF”.

TheconsolidatedfinancialstatementsofAcrowforthe
yearended30June2022compriseoftheCompanyand
itscontrolledentities(theGroup).

TheGroupisafor-profitentityandisprimarilyinvolvedin
thehireandsaleoffalsework,formwork,scaffoldingand
screenequipment,andotherconstructionservices.

Acrow’sAnnualReportsforpriorreportingperiodsare
availableuponrequestfromtheGroup’sregisteredoffice
locatedatLevel5,126PhillipStreet,SydneyNSW2000,
Australiaoratwww.acrow.com.au.

2.  Basis of preparation

(a) 

Basis of accounting

Theconsolidatedfinancialstatementsaregeneral
purposefinancialstatementswhichhavebeenprepared
inaccordancewithAustralianAccountingStandards
(AASBs)adoptedbytheAustralianAccountingStandards
Board(AASB)andtheCorporationsAct2001.

Theconsolidatedfinancialstatementscomplywith
InternationalFinancialReportingStandards(IFRS)
adoptedbytheInternationalAccountingStandardsBoard
(IASB)andwereauthorisedforissuebytheBoardof
Directorson27September2022.

DetailsoftheGroup’ssignificantaccountingpoliciesare
includedinnote3.

(b) 

Basis of measurement

Theconsolidatedfinancialstatementshavebeen
preparedonaccrualbasisandarebasedonhistorical
costs,modifiedwhereapplicablebythemeasurementat
fairvalue.

(c) 

Functional and presentation currency

Theconsolidatedfinancialstatementsare
presentedinAustraliandollars,whichistheGroup’s
functional currency.

(d)  Use of estimates and judgements

Thepreparationofconsolidatedfinancialstatementsin
conformitywithAASBsrequiresmanagementtomake
judgements,estimatesandassumptionsthataffect
the application of accounting policies and the reported 
amountsofassets,liabilities,incomeandexpenses.
Actualresultsmaydifferfromtheseestimates.

Estimatesandunderlyingassumptionsarereviewedon
anongoingbasis.Revisionstoaccountingestimates

53

53

54

61

62

62

62

63

63

64

64

65

65

65

66

68

69

70

70

71

72

73

74

74

75

76

77

77

78

80

84

84

85

85

88

Acrow Annual Report 2022 
54

2.  Basis of preparation (continued)

arerecognisedintheperiodinwhichtheestimatesare
revisedandinanyfutureperiodsaffected.

Allinter-entitybalancesandtransactionsareeliminated
intheseconsolidatedfinancialstatements.

Inparticular,informationaboutsignificantareasof
estimations,uncertaintiesandcriticaljudgements
in applying accounting policies that have the most 
significanteffectontheamountsrecognisedinthe
consolidatedfinancialstatementsincludethefollowing:

Accounting estimate and judgements 

Note

Revenue

Incometaxexpense

Tradeandotherreceivables

Inventories

Property,plantandequipment

Leases

Intangibleassets

Employeebenefits

Provisions 

Deferredincometaxliability

Share-basedpayments

4

8

10

11

14

15

16

18

20

21

29

Theaccountingpoliciesbelowhavebeenapplied
consistently to all periods presented in these 
consolidatedfinancialstatementsandhavebeenapplied
consistentlybytheGroup.

(e) 

Comparative information

Whereapplicable,comparativeinformationis
reclassified tocomplywithdisclosurerequirementsand
improvecomparability.

(f) 

Rounding

Acrowisacompanyofthekindreferredtointhe
AustralianSecuritiesandInvestmentsCommission
(ASIC)Corporations(RoundinginFinancial/Directors’
Reports)Instrument2016/191,dated24March2016and
inaccordancewiththatLegislativeInstrument,amounts
intheseconsolidatedfinancialstatementshavebeen
roundedofftothenearestdollarandareshownassuch,
unlessstatedotherwise.

3.  Significant accounting policies

(a) 

Basis of consolidation

Theconsolidatedfinancialstatementshavebeen
preparedbyaggregatingthefinancialstatementsof
alltheentitiesthatcomprisetheGroup,beingAcrow
FormworkandConstructionServicesLimitedandits
controlledentities.

(i) 

Business combinations

Businesscombinationsareaccountedforusingthe
acquisitionmethodasattheacquisitiondate,whichis
thedateonwhichcontrolistransferredtotheGroup.

Controlisthepowertogovernthefinancialandoperating
policiesofanentitysoastoobtainbenefitsfromits
activities.Inassessingcontrol,theGrouptakesinto
consideration potential voting rights that currently 
are exercisable.

TheGroupmeasuresgoodwillattheacquisitiondateas:

	■

	■

thefairvalueoftheconsiderationtransferred;plus

therecognisedamountofanynon-controlling
interestsintheacquiree;plus,ifthebusiness
combinationisachievedinstages,thefairvalueof
theexistingequityinterestintheacquiree;less

	■

thenetrecognisedamount(generallyfairvalue)ofthe
identifiableassetsacquiredandliabilitiesassumed.

Whentheexcessisnegative,abargainpurchasegainis
recognisedimmediatelyinthestatementofprofitorloss.

The consideration transferred does not include amounts 
relatedtothesettlementofpre-existingrelationships.
Such amounts are generally recognised in the statement 
ofprofitorloss.

Costsrelatedtotheacquisition,otherthanthose
associatedwiththeissueofdebtorequitysecurities
thattheGroupincursinconnectionwithabusiness
combinationareexpensedasincurred.

Anycontingentconsiderationpayableisrecognised
atfairvalueattheacquisitiondate.Ifthecontingent
considerationisclassifiedasequity,itisnotremeasured,
andsettlementisaccountedforwithinequity,otherwise
subsequentchangestothefairvalueofthecontingent
considerationarerecognisedinthestatementofprofit
or loss.

(ii) 

Subsidiaries

SubsidiariesareentitiescontrolledbytheGroup.The
financialstatementsofsubsidiariesareincludedinthe
consolidatedfinancialstatementsfromthedatethat
controlcommencesuntilthedatethatcontrolceases.

(b) 

Foreign currency

Transactions in foreign currencies are translated to the 
functional currency of the Group at exchange rates at the 
datesofthetransactions.

Notes to the Consolidated  Financial Statements for the year ending 30 June 2022Acrow Annual Report 202255

Monetaryassetsandliabilitiesdenominatedinforeign
currencies at the reporting date are retranslated to the 
functionalcurrencyattheexchangerateatthatdate.

Theforeigncurrencygainor(loss)onmonetaryitemsis
thedifferencebetweenamortisedcostinthefunctional
currencyatthebeginningoftheperiod,adjustedfor
effective interest and payments during the period, and 
the amortised cost in foreign currency translated at the 
exchangerateattheendoftheyear.

Foreigncurrencydifferencesarisingonretranslation
arerecognisedinthestatementofprofitorloss,
exceptforqualifyingcashflowhedgestotheextent
thehedgeiseffective,whicharerecognisedinother
comprehensive income.

(c) 

(i) 

Financial instruments

Non-derivative financial assets

TheGroupinitiallyrecognisesreceivablesonthedate
thattheyareoriginated.Allotherfinancialassets
(includingassetsheldatfairvaluethroughprofitorloss)
arerecognisedinitiallyonthetradedateatwhichthe
Groupbecomesapartytothecontractualprovisionsof
theinstrument.

TheGroupderecognisesafinancialassetwhenthe
contractualrightstothecashflowsfromtheassetexpire,
or it transfers the rights to receive the contractual cash 
flowsonthefinancialassetinatransactioninwhich
substantiallyalltherisksandrewardsofownershipofthe
financialassetaretransferred.Anyinterestintransferred
financialassetsthatiscreatedorretainedbytheGroupis
recognisedasaseparateassetorliability.

Financialassetsandliabilitiesareoffsetandthenet
amountpresentedinthestatementoffinancialposition
when,andonlywhen,theGrouphasalegalrightto
offset the amounts and intends to either to settle 
onanetbasisortorealisetheassetandsettlethe
liability simultaneously.

TheGrouphasthefollowingnon-derivativefinancial
assets:receivablesandcashandcashequivalents.

Receivables

Areceivableisrecognisedwhenthegoodsare
collected or delivered as this is the point in time that the 
considerationisunconditionalbecauseonlythepassage
oftimeisrequiredbeforethepaymentisdue.

Receivablesarefinancialassetswithfixedor
determinablepaymentsthatarenotquotedinan
activemarket.Suchassetsarerecognisedinitially
atthetransactionpriceplusanydirectlyattributable
transactioncosts.Subsequenttoinitialrecognition,
receivablesaremeasuredatamortisedcostusingthe
effectiveinterestmethod,lessanyimpairmentlosses.

Cash and cash equivalents

Cashandcashequivalentscomprisecashatbank,cash
onhandandcashequivalents,netofbankoverdrafts.
Cashequivalentsrepresenthighlyliquidinvestments
whicharereadilyconvertibletocash.

(ii) 

Non-derivative financial liabilities

TheGroupinitiallyrecognisesdebtsecuritiesissued
onthedatethattheyareoriginated.Allotherfinancial
liabilities(includingliabilitiesheldatfairvaluethrough
profitorloss)arerecognizedinitiallyonthetradedate
atwhichtheGroupbecomesapartytothecontractual
provisionsoftheinstrument.

TheGroupderecognizesafinancialliabilitywhenits
contractualobligationsaredischargedorcancelled
or expire.

Financialliabilitiesarerecognizedinitiallyatfairvalue
plusanydirectlyattributabletransactioncosts.

Subsequenttoinitialrecognition,financialliabilitiesare
measured at amortised cost using the effective interest 
ratemethod.

Financialliabilitiescompriseloansandborrowings,trade
andotherpayables.

Bankoverdraftsthatarerepayableondemandandform
anintegralpartoftheGroup’scashmanagementare
included as a component of cash and cash equivalents 
forthepurposeofthestatementofcashflows.

(iii) 

Issued capital

Ordinary shares

Ordinarysharesareclassifiedasequity.Incremental
costsdirectlyattributabletotheissueofordinaryshares
and share options are recognised as a deduction from 
equity,netofanytaxeffects.

(d) 

(i) 

Property, plant and equipment

Recognition and measurement

Itemsofproperty,plantandequipmentaremeasuredat
cost less accumulated depreciation and accumulated 
impairmentlosses.

Costincludesexpenditurethatisdirectlyattributableto
theacquisitionoftheasset.Thecostofself-constructed
assetsincludesthecostofmaterialsanddirectlabour,
anyothercostsdirectlyattributabletobringingthe
assetstoaworkingconditionfortheirintendeduse,
the costs of dismantling and removing the items 
andrestoringthesiteonwhichtheyarelocated,and
capitalisedborrowingcosts(seebelow).

Costalsomayincludetransfersfromother
comprehensiveincomeofanygainor(loss)onqualifying
cashflowhedgesofforeigncurrencypurchasesof

Acrow Annual Report 202256

3.  Significant accounting policies (continued)

property,plantandequipment.Purchasedsoftwarethat
is integral to the functionality of the related equipment is 
capitalisedaspartofthatequipment.

When parts of an item of property, plant and equipment 
have different useful lives, they are accounted for as 
separateitems(majorcomponents)ofproperty,plant
andequipment.

Thegainsand(losses)ondisposalofanitemofproperty,
plantandequipmentaredeterminedbycomparingthe
proceedsfromdisposalwiththecarryingamountof
property, plant and equipment and are recognised net 
withinotherincomeorotherexpensesinthestatement
ofprofitorloss.

(iv) 

Hire equipment loss provision

A hire equipment loss provision is recognised to cover 
theexpectedlossofequipmentonhire.Theprovisionis
basedonhistoricalexperienceofunrecoverablelosses
incurredonthereturnofhireequipmentfromcustomers.

(e) 

(i) 

Intangible assets

Goodwill

Allbusinesscombinationsareaccountedforbyapplying
theacquisitionmethod.Goodwillrepresentsthe
differencebetweenthecostoftheacquisitionandthefair
valueofthenetidentifiableassetsacquired.Goodwillis
statedatcostslessanyaccumulatedimpairmentlosses.

(ii) 

Subsequent costs

(f) 

Inventories

The cost of replacing a component of an item of property, 
plant and equipment is recognised in the carrying 
amountoftheitemifitisprobablethatthefuture
economicbenefitsembodiedwithinthecomponent
willflowtotheGroup,anditscostcanbemeasured
reliably.Thecarryingamountofthereplacedpartis
derecognised.Thecostsoftheday-to-dayservicing
of property, plant and equipment are recognised in the 
statementofprofitorlossasincurred.

(iii) 

Depreciation

Depreciationisbasedonthecostofanassetlessits
residualvalue.Significantcomponentsofindividual
assets are assessed and if a component has a useful life 
that is different from the remainder of that asset, that 
componentisdepreciatedseparately.

Depreciationisrecognisedinthestatementofprofitor
lossonastraight-linebasisovertheestimateduseful
lives of each component of an item of property, plant 
and equipment.

Right-of-useleaseassetsaredepreciatedoverthe
shorteroftheleasetermandusefullife,onastraight-line
basis,unlessitisreasonablycertainthattheGroupwill
obtainownershipbytheendoftheleaseterm.

The expected useful lives for depreciation purposes are 
asfollows:

	■ Hireequipment

2–33years

	■

Leaseholdimprovements

overtheleaseterm

	■ Plantandequipment

2–20years

Depreciationmethods,usefullivesandresidualvalues
arereviewedateachfinancialyearendandadjusted
if appropriate.

Inventoriesaremeasuredatthelowerofcostandnet
realisablevalue.

Thecostofinventoriesisbasedontheweightedaverage
cost principle, and includes expenditure incurred in 
acquiring the inventories, production or conversion costs 
andothercostsincurredinbringingthemtotheirexisting
locationandcondition.

Netrealisablevalueistheestimatedsellingpriceinthe
ordinarycourseofbusiness,lesstheestimatedcostsof
completionandsellingexpenses.

(g) 

(i) 

Impairment

Non-derivative financial assets

Non-derivativefinancialassetscomprisetradeandother
receivablesandcashandcashequivalents.

Non-derivativefinancialinstrumentsexcludingfinancial
assetsatfairvalueinprofitorlossarerecognisedinitially
atfairvalueplustransactioncosts.Subsequenttoinitial
recognition,non-derivativefinancialassetsaremeasured
atamortisedcostlessimpairmentlosses.

AfinancialassetisrecognisediftheGroupbecomesa
partytothecontractualprovisionsoftheasset.

FinancialassetsarederecognisediftheGroup’s
contractualrightstothecashflowsfromthefinancial
assetsexpireoriftheGrouptransfersthefinancialasset
toanotherpartywithoutretainingcontrolorsubstantially
allrisksandrewardsoftheasset.

TheGrouprecognisesitsfinancialassetsat
either amortised cost or fair value, depending on 
thecontractualcashflowcharacteristicsofthe
financial assets.

TheclassificationoffinancialassetsthattheGroup
heldatthedateofinitialapplicationwasbasedonthe

Notes to the Consolidated  Financial Statements for the year ending 30 June 2022Acrow Annual Report 202257

factsandcircumstancesofthefinancialassetsheldat
that date.

Financialassetsrecognisedatamortisedcostare
measured using the effective interest method, net of 
anyimpairmentloss.Financialassetsotherthanthose
classifiedasfinancialassetsrecognisedatamortised
costaremeasuredatfairvaluewithanychangesinfair
valuerecognisedinthestatementofprofitorloss.

Forthepurposeofannualimpairmenttestingapplicable
togoodwill,suchintangibleassetsthatcannotbetested
individually are grouped together into the smallest group 
ofassetsthatgeneratescashinflowsfromcontinuing
usethatarelargelyindependentofthecashinflowsof
otherassetsorCGU.

Impairmentlossesarerecognisedinthestatementof
profitorloss.

Receivables 

Fortradereceivables,theGroupconductsanongoing
assessmentofexpectedcreditlosses(ECL)byanalysing
actual loss experience of the Group, arrears, and other 
inputssuchasexposureortiming.Theassessmentis
brokendowninto4sectorsincludingIndustrialServices,
CivilInfrastructure,Commercial,andResidential.These
sectors are then analysed in a set of 5 stages ranging 
fromcurrentlyduereceivablestoabove90-daysdue
receivables.TheGroupalsoseparatelyquantifies
receivablesduefromentitiesinliquidation/default.

ImpairmentlossesrecognisedinrespectofCGUsare
allocated to reduce the carrying amounts of assets in the 
CGU(orgroupofCGUs)onaproratabasis.

Impairmentlossesrecognisedinpriorperiodsare
assessed at each reporting date for any indications that 
thelosshasdecreasedornolongerexists.

Animpairmentlossisreversediftherehasbeen
a change in the estimates used to determine the 
recoverableamount.Animpairmentlossisreversedonly
totheextentthattheasset’scarryingamount

TheGroupprovidesforalossallowanceequivalenttothe
lifetime expected credit losses from initial recognition of 
thosereceivables.

doesnotexceedthecarryingamountthatwouldhave
beendetermined,netofdepreciationoramortisation,if
noimpairmentlosshadbeenrecognised.

LossesarerecognisedintheStatementofProfitorLoss
andOtherComprehensiveIncomeandreflectedinan
allowanceaccountagainsttradereceivables.

Whenasubsequenteventcausestheamountof
impairment loss to decrease, the decrease is reversed 
throughthestatementofProfitorlossandOther
ComprehensiveIncome.

(ii) 

Non-financial assets

ThecarryingamountsoftheGroup’snon-financial
assets, other than inventories and deferred tax assets, 
arereviewedateachreportingdatetodeterminewhether
there is any indication of impairment, and if any such 
indicationexists,thentheasset’srecoverableamount
is estimated.

Forintangibleassets,namelygoodwillthathave
indefiniteusefullivesorthatarenotyetavailableforuse,
therecoverableamountisestimatedeachyearatthe
sametime.

An impairment loss is recognised if the carrying amount 
ofanassetoritsrelatedcash-generatingunit(CGU)
exceedsitsestimatedrecoverableamount.

TherecoverableamountofanassetorCGUisthegreater
ofitsvalueinuseanditsfairvaluelesscoststosell.In
assessingvalueinuse,theestimatedfuturecashflows
arediscountedtotheirpresentvalueusingapre-tax
discountratethatreflectscurrentmarketassessments
ofthetimevalueofmoneyandtherisksspecificto
the asset.

(h) 

(i) 

Employee benefits

Defined contribution plans

Adefinedcontributionplanisapost-employmentbenefit
planunderwhichanentitypaysfixedcontributionsinto
aseparateentityandwillhavenolegalorconstructive
obligationtopayfurtheramounts.

Obligationsforcontributionstodefinedcontribution
plansarerecognisedasanemployeebenefitexpensein
thestatementofprofitorlossintheperiodsduringwhich
servicesarerenderedbyemployees.

Prepaidcontributionsarerecognisedasanassetto
the extent that a cash refund or a reduction in future 
paymentsisavailable.

Contributionstoadefinedcontributionplanthataredue
morethan12monthsaftertheendoftheperiodinwhich
the employees render the service are discounted to their 
presentvalue.

(ii) 

Other long-term employee benefits

TheGroup’snetobligationinrespectoflong-term
employeebenefitsotherthandefinedbenefitplansisthe
amountoffuturebenefitthatemployeeshaveearnedin
return for their service in the current and prior periods 
plusrelatedon-costs.

Thebenefitisdiscountedtodetermineitspresentvalue,
andthefairvalueofanyrelatedassetsisdeducted.

Acrow Annual Report 202258

3.  Significant accounting policies (continued)

The discount rate is the yield at the reporting date on 
highqualitycorporatebondsthathavematuritydates
approximatingthetermsoftheGroup’sobligations.

Thecalculationisperformedusingtheprojectedunit
creditmethod.

(iii) 

Termination benefits

Terminationbenefitsarerecognisedasanexpense
whentheGroupisdemonstrablycommitted,without
realisticpossibilityofwithdrawal,toaformaldetailed
plantoeitherterminateemploymentbeforethe
normal retirement date, or to provide termination 
benefitsasaresultofanoffermadetoencourage
voluntary redundancy.

Terminationbenefitsforvoluntaryredundanciesare
recognised as an expense if the Group has made an offer 
ofvoluntaryredundancy,itisprobablethattheofferwill
beaccepted,andthenumberofacceptancescanbe
estimatedreliably.

Ifterminationbenefitsarepayablemorethan12months
afterthereportingperiod,theterminationbenefitsare
discountedtotheirpresentvalue.

(iv) 

Short-term benefits

Short-termemployeebenefitobligationsaremeasured
onanundiscountedbasisandareexpensedasthe
relatedserviceisprovided.

Aliabilityisrecognisedfortheamountexpectedtobe
paidundershort-termcashbonusorprofit-sharing
plans if the Group has a present legal or constructive 
obligationtopaythisamountasaresultofpastservice
providedbytheemployeeandtheobligationcanbe
estimated reliably.

(v) 

Share-based payments

TheGroupprovidesbenefitstoselectedemployeesin
theformofshare-basedpaymenttransactions,whereby
employeesrenderservicesinexchangeforoptionsand/
orperformancerightsoverordinaryshares.

Thecostoftheshare-basedpaymentsismeasuredby
referencetothefairvalueatthedateatwhichtheyare
grantedandamortizedovertheexpectedvestingperiod
withacorrespondingincreaseinsharecapitalreserve.
Ifvestingperiodsorothervestingconditionsapply,the
expenseisallocatedoverthevestingperiod,basedonthe
bestavailableestimateofthenumberofshareoptions
expectedtovest.

Non-marketvestingconditionsareincludedin
assumptionsaboutthenumberofoptionsthatare
expectedtobecomeexercisable.Estimatesare
subsequentlyrevisedifthereisanyindicationthatthe

numberofshareoptionsexpectedtovestdiffersfrom
previousestimates.Anyadjustmenttocumulative
share-basedcompensationresultingfromarevisionis
recognisedinthecurrentperiod.Thenumberofvested
optionsultimatelyexercisedbyholdersdoesnotimpact
theexpenserecordedinanyperiod.Uponexercise
of share options, the proceeds received, net of any 
directlyattributabletransactioncosts,areallocatedto
share capital.

Thefairvalueofshare-basedpaymentsisappraised
atgrantdateinaccordancewithAASB2Share-based
Payments.Theseareindependentlydeterminedusing
a pricing model that considers the exercise price, the 
terms of the payment, the vesting and performance 
criteria,theimpactofthedilution,thenon-tradeable
nature of the payment, the share price at grant date, 
the expected price volatility of the underlying share, the 
comparativesharemarketindices,theexpecteddividend
yieldand the risk-freeinterestrateforthetermofthe
share-basedpayment.

(i) 

Provisions

A provision is recognised if, as a result of a past event, 
theGrouphasapresentlegalorconstructiveobligation
thatcanbeestimatedreliably,anditisprobablethatan
outflowofeconomicbenefitswillberequiredtosettle
the obligation.

Provisionsaredeterminedbydiscountingtheexpected
futurecashflowsatapre-taxratethatreflectscurrent
marketassessmentsofthetimevalueofmoneyandthe
risksspecifictotheliability.

Theunwindingofthediscountisrecognisedas
finance cost.

(i) 

Restructuring

Aprovisionforrestructuringisrecognisedwhenthe
Group has approved a detailed and formal restructuring 
plan, and the restructuring either has commenced or has 
beenannouncedpublicly.

Futureoperatinglossesarenotprovidedfor.

(ii) 

Onerous contracts

Aprovisionforonerouscontractsisrecognisedwhen
theexpectedbenefitstobederivedbytheGroupfroma
contractarelowerthantheunavoidablecostofmeeting
itsobligationsunderthecontract.

The provision is measured at the present value of 
theloweroftheexpectedcostofterminatingthe
contractandtheexpectednetcostofcontinuingwith
the contract.

Notes to the Consolidated  Financial Statements for the year ending 30 June 2022Acrow Annual Report 202259

Beforeaprovisionisestablished,theGrouprecognises
anyimpairmentlossontheassetsassociatedwith
that contract.

(iii)  Make good

Aprovisionformakegoodismeasuredatthepresent
value of the cost of restoring leased properties to their 
originalcondition,attheconclusionofthelease.

(j) 

Revenue

Acrowispredominatelyaprovideroffalsework,
formwork,scaffoldingandscreenequipmentforhireor
salewithrevenueprimarilygeneratedviadryhire,project
hireorsale.

The company generates revenue via provision of 
equipmenthire,servicesandthesalesofproduct.
Revenue generated from hire of equipment only is 
referredtoas“dryhire”revenue.

Projecthireor“wethire”revenueincludes“dryhire”
revenuepluslabourservices,cartageservices,
consumablesalesand/orotherserviceswhichare
recognisedovertimeasservicescanbestaged
progressivelyastheyarerendered.Theseformsof
contractsmayvaryinscope;however,allprojecthirehas
onecommonperformanceobligation,beingtheprovision
ofscaffoldingstructurestothecustomerwhichincludes
thescaffoldingequipment,thelabouroninstallation
anddismantling,cartage(transporttoandfromthe
customer)andanyancillarymaterialsthatarerequiredto
fulfilltheobligation.

Todeterminewhethertorecogniserevenue,theGroup
followsa5-stepprocess:

1) Identifyingthecontractwithacustomer

2) Identifyingtheperformanceobligations

3) Determiningthetransactionprice

4) Allocatingthetransactionpricetothe

performance obligations

5) Recognisingrevenuewhen/asperformance

obligation(s)aresatisfied.

(i) 

Hire of equipment

Falsework,formwork,scaffoldingandscreenequipment
arerentedtocustomersunderoperatingleaseswith
rentalperiodsaveragingsixmonthstolessthanoneyear.

Therentalcanbearrangedasdryhirewhereonly
equipment is provided to the customer and revenue is 
recognisedatfixedratesovertheperiodofhire;oraspart
ofaprojecthirewhereAcrowsupplieslabourandcartage
servicesbetweenwarehouseandbuildingsites.

Revenue recognition on equipment hire commences 
oncefalsework,formwork,scaffoldorscreenequipment

iseithercollectedbythecustomer,deliveredtothe
customeroronceascaffoldingstructurehasbeen
certifiedtobesafeandaccessgrantedtocustomersor
controlotherwisepassestoacustomer.

Revenueisrecognisedoverstraight-linebasesoverthe
lifeofthehireagreementsperAASB16Leases.

(ii) 

Labour and cartage services

Revenuefromprovidingscaffoldinglabourininstallation
anddismantling,andequipmentcartage,beingtransport
to and from the customer, are recognised at one or more 
pointsintimeasservicescanbestagedprogressivelyas
theyarerendered.

Revenueisrecognisedbasedontheactualservice
providedtotheendofthereportingperiodbecausethe
customerreceivesandusesthebenefitssimultaneously.

Labourandcartageservicesrevenuearerecognised
overtimeunderAASB15RevenuefromContracts
with Customers.

(iii) 

Consumable sales and other services

Revenue from sales are measured as the transaction 
pricenetofreturns,tradediscountsandvolumerebates.

Revenueisrecognisedwhencontrolofthegoodsor
servicesaretransferredtocustomerswhichisgenerally
upondeliverytoorcollectionbythecustomerdepending
onthecontractwiththecustomer.

Discountsarerecognisedasareductioninrevenueuntil
managementdeterminethatitishighlyprobablethatno
significantreversalofrevenuewilloccur.

Revenuerecognitionofconsumablesalesandother
servicesareatapointintimewhencontrolpasseswhich
is typically upon delivery or collection as under AASB 15 
RevenuefromContractswithCustomers.

(k) 

Finance income and finance costs

Financeincomecomprisesinterestincomeonfunds
deposited.Interestincomeisrecognisedasitaccrues
inthestatementofprofitorloss,usingtheeffective
interest method.

Financecostscompriseinterestexpensesonloans
andborrowings,leaseliabilitiesand,wherematerial,the
unwindingofthediscountonprovisions.

Borrowingcoststhatarenotdirectlyattributabletothe
acquisition, construction or production of a qualifying 
assetarerecognisedinthestatementofprofitorloss
usingtheeffectiveinterestmethod.

(l) 

Tax

Taxexpensecomprisescurrentanddeferredtax.
Currentanddeferredtaxarerecognisedinthe
statementofprofitorloss,excepttotheextentthatit

Acrow Annual Report 202260

3.  Significant accounting policies (continued)

relates to items recognised directly in equity or in other 
comprehensive income.

Currenttaxistheexpectedtaxpayableorreceivableon
thetaxableincomeor(loss)fortheyear,usingtaxrates
enactedorsubstantivelyenactedatthereportingdate,
andanyadjustmenttotaxpayableinrespectofprevious
years.Currenttaxpayablealsoincludesanytaxliability
arisingfromthedeclarationofdividends.

Deferredtaxisrecognisedinrespectoftemporary
differencesbetweenthecarryingamountsofassets
andliabilitiesforfinancialreportingpurposesandthe
amountsusedfortaxationpurposes.Deferredtaxis
not recognised for temporary differences on the initial 
recognitionofassetsorliabilitiesinatransactionthat
isnotabusinesscombinationandthataffectsneither
accountingnortaxableprofitor(loss).

Deferredtaxismeasuredatthetaxratesthatare
expectedtobeappliedtotemporarydifferenceswhen
theyreverse,basedonthelawsthathavebeenenacted
orsubstantivelyenactedbythereportingdate.

Deferredtaxassetsandliabilitiesareoffsetifthereisa
legallyenforceablerighttooffsetcurrenttaxliabilities
andassets,andtheyrelatetoincometaxesleviedby
thesametaxauthorityonthesametaxableentity,oron
differenttaxentities,buttheyintendtosettlecurrenttax
liabilitiesandassetsonanetbasisortheirtaxassets
andliabilitieswillberealisedsimultaneously.

A deferred tax asset is recognised for unused tax losses, 
taxcreditsanddeductibletemporarydifferences,tothe
extentthatitisprobablethatfuturetaxableprofitswillbe
availableagainstwhichtheycanbeutilised.

Deferredtaxassetsarereviewedateachreportingdate
andarereducedtotheextentthatitisnolongerprobable
thattherelatedtaxbenefitwillberealised.

(m)  Exploration and evaluation assets

Explorationandevaluationexpenditurerelatingtoanarea
ofinterestiscapitalisedwhereexplorationrightshave
beenobtained.

Theexpenditureisonlycarriedforwardtotheextentthat
theyareexpectedtoberecoupedthroughsuccessful
developmentandexploitationorsaleoftheareaorwhere
the exploration and evaluation activities have not reached 
astagewhichpermitsareasonableassessmentofthe
existenceofeconomicallyrecoverablereservesand
activeexplorationoperationsarecontinuing.

(n)  Goods and services tax

Revenue, expenses and assets are recognised net of the 
amountofgoodsandservicestax(GST),exceptwhere
theamountofGSTincurredisnotrecoverablefromthe
taxationauthority.Inthesecircumstances,theGSTis
recognised as part of the cost of acquisition of the asset 
oraspartoftheexpense.

Cashflowsincludedinthestatementofcashflowsare
onagrossbasis.TheGSTcomponentsofcashflows
arisingfrominvestingandfinancingactivitieswhichare
recoverablefromorpayabletotheATO,areclassifiedas
operatingcashflows.

(o) 

Lease accounting

The Group as a lessee

TheGroupmakestheuseofleasingarrangements
principallyfortheprovisionofthewarehouse/
officespace,forkliftequipment,motorvehiclesand
printers.TheGroupdoesnotenterintosaleand
leaseback arrangements.

Alltheleasesarenegotiatedonanindividualbasisand
containawidevarietyofdifferenttermsandconditions
suchaspurchaseoptionsandescalationclauses.The
Groupassesseswhetheracontractisorcontainsa
leaseatinceptionofthecontract.Aleaseconveysthe
righttodirecttheuseandobtainsubstantiallyallofthe
economicbenefitsofanidentifiedassetforaperiodof
timeinexchangeforconsideration.

Onlymotorvehicleleasecontractscontainboth
leaseandnon-leasecomponents.Thesenon-lease
componentsareusuallyassociatedwithservicingand
repaircontracts.

Measurement and recognition of leases as a lessee

At lease commencement date, the Group recognises a 
right-of-useassetandaleaseliabilityinitsconsolidated
statementoffinancialposition.Theright-of-useasset
ismeasuredatcost,whichismadeupoftheinitial
measurementoftheleaseliability,anyinitialdirect
costsincurredbytheGroup,anestimateofanycoststo
dismantle and remove the asset at the end of the lease, 
and any lease payments made in advance of the lease 
commencementdate(netofanyincentivesreceived).

TheGroupdepreciatestheright-of-useassetona
straight-linebasisfromtheleasecommencementdateto
theearlieroftheendoftheusefullifeoftheright-of-use
assetortheendoftheleaseterm.

Expenditureisnotsubjecttoamortisationbutis
assessedforimpairmentwhenfactsandcircumstances
suggest that the carrying amount may exceed its 
recoverableamount.

TheGroupalsoassessestheright-of-useasset
forimpairmentwhensuchindicatorsexist.Atthe
commencement date, the Group measures the lease 
liabilityatthepresentvalueoftheleasepaymentsunpaid

Notes to the Consolidated  Financial Statements for the year ending 30 June 2022Acrow Annual Report 202261

atthatdate,discountedusingtheGroup’sincremental
borrowingratebecauseastheleasecontractsare
negotiatedwiththirdpartiesitisnotpossibleto
determinetheinterestratethatisimplicitinthelease.

Theincrementalborrowingrateistheestimatedratethat
theGroupwouldhavetopaytoborrowthesameamount
overasimilarterm,andwithsimilarsecuritytoobtainan
assetofequivalentvalue.

Leasepaymentsincludedinthemeasurementofthe
leaseliabilityaremadeupoffixedpayments(including
insubstancefixed),variablepaymentsbasedonanindex
orrate,amountsexpectedtobepayableunderaresidual
value guarantee and payments arising from options 
reasonablycertaintobeexercised.

Subsequenttoinitialmeasurement,theliabilitywillbe
reducedbyleasepaymentsthatareallocatedbetween
repaymentsofprincipalandfinancecosts.Thefinance
cost is the amount that produces a constant periodic rate 
ofinterestontheremainingbalanceoftheleaseliability.

Theleaseliabilityisreassessedwhenthereisachange
intheleasepayments.Changesinleasepayments
arising from a change in the lease term or a change 
in the assessment of an option to purchase a leased 
asset.Therevisedleasepaymentsarediscountedusing
theGroup’sincrementalborrowingrateatthedateof
reassessmentwhentherateimplicitintheleasecannot
bereadily determined.

Theamountoftheremeasurementoftheleaseliabilityis
reflectedasanadjustmenttothecarryingamountofthe
right-of-useasset.Theexceptionbeingwhenthecarrying
amountoftheright-of-useassethasbeenreducedto
zerothenanyexcessisrecognisedinprofitorloss.

Paymentsunderleasescanalsochangewhenthereis
eitherachangeintheamountsexpectedtobepaidunder
residualvalueguaranteesorwhenfuturepayments
change through an index or a rate used to determine 
thosepayments,includingchangesinmarketrentalrates
followingamarketrentreview.

Theremeasurementoftheleaseliabilityisdealtwithbya
reductioninthecarryingamountoftheright-of-useasset
to reflect the full or partial termination of the lease for 
leasemodificationsthatreducethescopeofthelease.
Any gain or loss relating to the partial or full termination 
oftheleaseisrecognisedinprofitorloss.

Theright-of-useassetisadjustedforallotherlease
modifications.TheGrouphaselectedtoaccountforlow-
valueassetsusingthepracticalexpedients.Theseleases
relatetomobileITdevicessuchascomputermonitors,
laptopsandmobiletelephones.Insteadofrecognising
aright-of-useassetandleaseliability,thepaymentsin
relationtothesearerecognisedasanexpenseinprofitor
lossonastraight-linebasisovertheleaseterm.

The Group as a lessor 

AsalessortheGroupclassifiesitsleasesaseither
operatingorfinanceleases.Aleaseisclassifiedasa
financeleaseifittransferssubstantiallyalltherisksand
rewardsincidentaltoownershipoftheunderlyingasset
andclassifiedasanoperatingleaseifitdoesnot.

(p)  New accounting standards and 
interpretations not yet adopted

Therewerenonewaccountingstandards,interpretations
andamendmentssignificantlyimpactingtheGroupinthe
financialyearended30June2022.

4.   Revenue 

In dollars

Revenue from contracts with customers

Labourservicestransferredovertime

Cartageservicestransferredovertime

2022

2021

34,449,251

21,881,696

5,936,777

5,084,962

Consumablesalesandotherservicestransferredatapointintime

44,597,902

25,433,493

Revenue from operating leases

Hire of equipment

 84,983,930 

52,400,151

55,842,988

42,208,736

140,826,918

94,608,887

Acrow Annual Report 2022 
62

5.   Other income  

In dollars

Disposal of property, plant and equipment 

Proceeds

Writtendownvalue

Net gain on disposal of property, plant and equipment 

6.   Other expenses  

In dollars

Restructuring and due diligence expenses

Audit, tax and legal expenses

Doubtfuldebtexpense

Motor vehicle expenses

Plant & equipment operating expenses

Repair & maintenance

Travelling expenses

Utilities

Property costs

Others

7.   Finance costs

In dollars

Finance costs

Unwindinginterestondeferredconsideration

Interestexpenseonfinancialliabilities

Interestexpenseonleases

Borrowingcosts

Net finance costs from continuing operations

2022

2021

7,518,603

11,134,736

(2,562,816)

(4,582,306)

 4,955,787 

6,552,430

2022

2021

(748,453)

(950,314)

(837,125)

(730,548)

(650,000)

(150,466)

(347,101)

(390,391)

(402,058)

(340,170)

(339,708)

(283,715)

(419,487)

(267,598)

(779,347)

(651,873)

(217,698)

(155,347)

(537,135)

(902,011)

(5,278,112)

(4,822,433)

2022

2021

(33,960)

(168,915)

(1,833,618)

(1,255,498)

(1,509,802)

(1,675,195)

(135,736)

(206,097)

 (3,513,116)

(3,305,705)

Notes to the Consolidated  Financial Statements for the year ending 30 June 2022Acrow Annual Report 2022 
 
63

8.   Income tax expense 

In dollars

Currentincometaxexpense

Deferredincometaxexpense

Under provision for income tax in prior year

Income tax expense attributable to profit

2022

2021

(1,584,228)

625,040

(360,775)

(2,793,780)

(17,179)

(10,415)

(1,962,182)

(2,179,155)

Theprimafacietaxonprofitbeforeincometaxisreconciledtotheincometaxexpenseasfollows:

In dollars

Profit before income tax

2022

2021

17,656,350

6,142,153

Incometax(expense)usingtheGroup’sdomestictaxrate(30%)

(5,296,905)

(1,842,647)

Income tax effects of amounts which are not deductible / (taxable) in calculating 
taxable income:

Non-deductiblelossesonoverseasentities

Non-deductibleshare-basedpaymentexpense

Non-deductibleacquisitionexpense

Non-deductibleimpairmentexpense

Othernon-deductibleexpenses

(Under)provisionforincometaxinprioryear

Utilisation of prior year tax losses not previously recognised

Income tax expense attributable to profit

9.   Cash and cash equivalents 

In dollars

Cashatbank

Bankoverdraft

(288)

274

(349,400)

(673,656)

(31,644)

(17,989)

(17,209)

(17,179)

46,729

(15,656)

(60,311)

(10,415)

3,768,432

376,527

(1,962,182)

(2,179,155)

2022

2021

3,010,433

1,754,622

(3,001,005)

(1,865,938)

 9,428 

(111,316)

Acrow Annual Report 2022 
 
64

10.  Trade and other receivables 

In dollars

Tradereceivables

Expectedcreditlossprovision

Movement in the expected credit loss provision: 

In dollars

At 1 July

Openingbalance

Expectedcreditlossrecognisedduringtheyear

Receivableswrittenoff/(back)duringtheyear

Balance at 30 June

2022

2021

35,821,806

25,789,926

(1,458,939)

(1,178,190)

34,362,867

 24,611,736 

2022

2021

(1,178,190)

(1,196,940)

(650,000)

150,000

369,251

(131,250)

(1,458,939)

(1,178,190)

Current

More than 
30 days

More than 
60 days

More than 
90 days

Default

Total

2022

Expectedcreditlossrate

0.02%

0.30%

4.22%

15.98%

100.00%

Gross carrying amount 

17,237,806

11,002,000

2,161,000

4,867,517

553,483

35,821,806

Lifetimeexpectedcreditloss

3,448

33,006

91,194

777,808

553,483

1,458,939

2021

Expectedcreditlossrate

0.07%

1.40%

11.06%

16.82%

Gross carrying amount 

12,626,926

6,061,000

1,911,000

5,191,000

Lifetimeexpectedcreditloss

8,839

84,854

211,357

873,140

–

–

–

25,789,926

1,178,190

11.  Inventories 

In dollars

Finishedgoods

Provisionforslowmovingstock

2022

2021

15,146,338

9,025,959

(274,152)

(67,405)

14,872,186

8,958,554

Notes to the Consolidated  Financial Statements for the year ending 30 June 2022Acrow Annual Report 2022 
 
 
65

12.  Contract assets, prepayments and other assets   

In dollars

Contractassets

Current

Otherreceivables

Prepayments

13.  Assets and liabilities held for sale 

In dollars

Assetsclassifiedasheldforsale

Liabilitiesassociatedwithassetsheldforsale

2022

2021

111,927

775,168

 111,927 

775,168

807,617

608,339

4,268,215

3,010,038

 5,075,832 

 3,618,377 

2022

72,579

67,063

2021

66,507

61,453

AcrowcontinuestoexplorethedivestmentofNobleMineralResourcesGhanaLtd,whichownstheGroup’sexploration
andevaluationassetsinGhana.Thebusinessremainsnon-coretotheGroup,hasanimmaterialfinancialandlimited
managementimpacts.

14.  Property, plant and equipment

In dollars

Cost

Land and 
buildings

Plant and 
equipment

Hire 
equipment

Total

Balanceat1July2020

475,989

11,528,314

82,765,705

94,770,008

Additions

Disposals

–

–

1,595,706

15,814,177

17,409,883

(52,460)

(5,829,158)

(5,881,618)

Balance at 30 June 2021

475,989

13,071,560

92,750,724

106,298,273

Cost

Balanceat1July2021

475,989

13,071,560

92,750,724

106,298,273

Additions

Disposals

–

–

1,020,433

21,358,057

22,378,490

(42,457)

(2,950,875)

(2,993,332)

Balance at 30 June 2022

475,989

14,049,536

111,157,906

125,683,431

Depreciation and impairment losses

Balanceat1July2020

Depreciationfortheyear

Disposals

Hireequipmentlossadjustment

354,558

10,693,801

7,683,156

18,731,515

19,206

316,956

5,552,159

5,888,321

–

–

(34,752)

(1,264,561)

(1,299,313)

–

(31,104)

(31,104)

Balance at 30 June 2021

373,764

 10,976,005 

 11,939,650 

 23,289,419 

Acrow Annual Report 2022 
66

14.  Property, plant and equipment (continued)

In dollars

Balanceat1July2021

Depreciationfortheyear

Disposals

Hireequipmentlossadjustment

Land and 
buildings

Plant and 
equipment

Hire 
equipment

Total

373,764

10,976,005

11,939,650

23,289,419

17,467

500,611

6,869,271

7,387,349

–

–

(41,319)

(389,197)

(430,516)

–

(53,257)

(53,257)

Balance at 30 June 2022

391,231

 11,435,297 

 18,366,467 

 30,192,995 

Carrying amounts

At1July2020

At 30 June 2021

At1July2021

At 30 June 2022

121,431

834,513

75,082,549

76,038,493

102,225

2,095,555

80,811,074

83,008,854

102,225

2,095,555

80,811,074

83,008,854

84,758

2,614,239

92,791,439

95,490,436

Property, plant and equipment are at times sold prior to the end of its useful life either at the request of the customers 
orduetoloss.“LossonHire”revenuearechargedasOtherIncome(seenote5)wherethecustomersareliable.On
acquisitionofpropertyplantandequipmentthereisnointentiontodisposethroughsale.

15.  Leases
TheAcrowgroupleasesvariousproperties,forklifts,motorvehiclesandprinters.Propertyleasetermsareupto
10 yearsandoftenincludeextensionoptions,forkliftleasetermsareupto7years,motorvehicleleasetermsarefrom
1to3years,whilstallprintersarefora5-yearleaseterm.

Theprintersformonemasterleaseagreementwhileallotherleasesarenegotiatedonanindividualbasisandcontain
abroadrangeoftermsandconditions.

Leaseagreementsdonotimposeanycovenants,butleasedassetsmaynotbeusedassecurityfor
borrowing purposes.

Withtheexceptionofshort-termleasesandleasesoflow-valueunderlyingassets,eachleaseisreflectedinthe
consolidatedstatementoffinancialpositionasaright-of-useassetandaleaseliability.

Right-of-useassetsaremeasuredatcostandcomprise:

	■ Anyinitialdirectcostsincurredbythelessee;

	■ Anestimateofrestorationormakegoodcosts;

	■ Theamountoftheinitialmeasurementoftheleaseliability;and

	■ Anyleasepaymentsmadeatorbeforethecommencementdate,lessanyleaseincentivesreceived.

Extensionoptionsareonlyincludedintheleasetermiftheleaseisreasonablycertaintobeextended.Theassessment
isreviewedifasignificanteventorchangeincircumstanceoccurswhichaffectsthisassessmentandthatiswithin
thecontrolofthelessee.

Notes to the Consolidated  Financial Statements for the year ending 30 June 2022Acrow Annual Report 202267

Lease amounts recognised in the Statement of Financial Position:

In dollars

Right-of-use assets

Properties

Forkliftsandofficeequipment

Motor vehicles 

Total right-of-use assets 

Lease liabilities 

Current

Non-current

Total lease liabilities 

2022

2021

22,218,881

26,165,469

1,860,910

2,145,017

398,929

498,450

 24,478,720 

 28,808,936 

4,964,215

4,645,552

23,285,254

27,396,387

 28,249,469 

 32,041,939 

Additionstotheright-of-useassetsduringFY2022were$1,047,654(FY2021:$1,671,900).

Lease amounts recognised in the Statement of Profit or loss and Other Comprehensive Income:

In dollars

2022

2021

Depreciation charge for right-of-use assets: 

Properties 

Forkliftsandofficeequipment

Motor vehicles 

Total depreciation charge for right-of-use assets 

Leasepaymentsinclude:

4,765,763

4,843,914

646,144

555,296

271,098

276,066

 5,683,005

 5,675,276 

	■ Variableleasepaymentsthatarebasedonanindexorrate;

	■ Amountsexpectedtobepayablebythelesseeunderresidualvalueguarantees;

	■ TheexercisepriceofapurchaseoptionifAcrowisreasonablycertaintoexercisethatoption;

	■ Fixedpayments(includingin-substancefixedpayments),lessanyleaseincentivesreceivable;and

	■ Paymentofpenaltiesforterminatingthelease,iftheleasetermreflectsAcrowexercisingthatoption.

Leasepaymentsarediscountedusingtheinterestrateimplicitinthelease,ifdeterminableorattheGroup’s
incrementalborrowingrate.

In dollars

2022

2021

Lease amounts included in the Statement of cashflows

Leasepayments

Interestexpense(includedinfinancecosts)

Total amount paid

Expenses relating to low value asset leases 

5,145,257

4,198,952

1,509,802

1,675,195

6,655,059

5,874,147

138,788

125,249

Acrow Annual Report 202268

15.  Leases (continued)

Lease payments not recognised as liabilities 

TheGrouphaselectednottorecognisealeaseliabilityforlowvalueleases(whereanassetisvaluedatUSD5,000
orlowerperAASB16).Paymentsforthesearerecognisedonastraight-linebasisasanexpenseinthestatementof
profitorloss.

LowvalueassetsarepredominatelyportableITandtelecommunicationequipment.Theundiscountedcashflowson
theremainingleasetermatthereportingdateareasfollow:

In dollars

Lessthanoneyear

Betweenoneandfiveyears

16.  Intangible assets

In dollars

Goodwill

2022

2021

114,968

194,961

129,920

162,824

309,929

292,744

2022

2021

7,428,704

7,428,704

7,428,704

7,428,704

Allbusinesscombinationsareaccountedforbyapplyingtheacquisitionmethod.Goodwillrepresentsthedifference
betweenthecostoftheacquisitionandthefairvalueofthenetidentifiableassetsacquired.

Goodwillisstatedatcostslessanyaccumulatedimpairmentlosses.

Acrowannuallytestsgoodwillwithindefiniteusefullivesforimpairment.Anassetthatdoesnotgenerateindependent
cashflowsistestedforimpairmentaspartofacashgeneratingunit(CGU).

Wherethereisanimpairmentloss,itisrecognisedinthestatementofprofitorlosswhenthecarryingamountof
an assetexceedsitsrecoverableamount.Theasset’srecoverableamountisestimatedbasedonthehigherofits
value-in-useandfairvaluelesscoststosell.

TherecoverableamountofaCGUisdeterminedbasedonavalue-in-usecalculation.Thecalculationsusecashflow
projectionsbasedonaone-yearbudgetthathasbeenapprovedbytheboardofdirectorsandthenafour-yearforecast
approvedbythemanagement.Cashflowsbeyondthefive-yearperiod*areextrapolatedusingthecashflowsforyear
5andtheestimatedlong-termgrowthrates.

ThediscountrateusedistheGroup’sweightedaveragecostofcapital.Theterminalgrowthratereflectsthe
management’soutlookongrowth.ThediscountrateusedistheGroup’sweightedaveragecostofcapital.Theterminal
growthratereflectsthemanagement’soutlookongrowth.

In dollars

Averagegrowthrate1–5years

Terminalgrowthrate

Post-taxdiscountrate

2022

57.5%*

1%

10.6%

2021

5%

1%

10.7%

*

IncreaseinEBITfrom2022to2023is251%andbetween6.7%and12.5%forthefollowing4years.Thelargeincreaseinthe2023year
isduetocatchupsondelayscausedbyCOVIDandwetweatherconditionsintheeastcoastsin2022.Manyoftheseprojectshadeither
commencedlatein2022orwillcommencein2023,currentpipelinesprovetobestrongandwillcontinueinto2023.

Notes to the Consolidated  Financial Statements for the year ending 30 June 2022Acrow Annual Report 2022In dollars

Openinggoodwillbalance

Additions

Reductions

Closing balance

Allocation to CGU Groups   

In dollars

Natform companies

Other 

69

2022

2021

7,428,704

7,428,704

–

–

–

–

7,428,704

7,428,704

2022

2021

7,301,902

7,301,902

126,802

126,802

7,428,704

7,428,704

Impairment testing on Natform companies

Goodwillof$7,301,902wasrecordedat31August2018withrespecttotheacquisitionofNatformPtyLtdand
Natform(QLD)PtyLtd.TherecoverableamountofCGUwasdeterminedbasedonvalue-in-usecalculationswhich
requiretheuseofassumptions.Thecalculationsusecashflowprojectionsbasedonfinancialbudgetsapprovedby
managementcoveringafive-yearperiod.

Sensitivity

Managementhasmadejudgementsandestimatesinrespectofimpairmenttestingofgoodwill.Shouldthese
judgementsandestimatesnotoccur,thecarryingvalueofgoodwillmayvary.Anyreasonablechangeinthekey
assumptionsonwhichtheestimatesand/orthediscountratearebasedwouldnotcausethecarryingamountofthe
CGUtoexceedtherecoverableamount.

17. Trade and other payables  

In dollars

Current Trade payables

Tradepayables

Accrued expenses

Other payables

Natform deferred consideration 

Uni-spandeferredconsideration

Uni-spancontingentconsideration

2022

2021

12,344,200

19,562,215

9,139,827

5,559,940

 21,484,027 

 25,122,155 

–

–

–

–

–

3,338,025

148,264

3,486,289

Afinaldeferredpaymentof$3,374,370(withpresentvalueof$3,338,025atJune2021)andacontingentconsideration
of$148,264werepaidinSeptember2021totheUni-spanvendors.Thenafurtheradjustmentpaymentof$60,022
wasmadeinDecember2021asacontributiontoalegalmatterthatAcrowhastakenoversinceacquisition.Total
considerationspaidamountto$3,582,656fortheyear.

Acrow Annual Report 2022 
 
70

18.  Employee benefits   

In dollars

Current

Annual leave

Longserviceleave

Otheremployeebenefits

Non-current

Longserviceleave

2022

2021

2,377,838

1,891,263

1,913,103

1,639,784

1,868,513

1,108,477

 6,159,454 

4,639,524

444,988

611,541

444,988

611,541

Allemployeeshavedefinedcontributionplansforsuperannuationandtheexpenserecognisedduringtheyearwas
$3,334,148(2021:$2,476,487).

19.  Loans and borrowings

In dollars

Current

Non-current

Borrowings are represented by the following finance facilities:  

In dollars

Securedamortisingbusinessloanof$18,168,000

Equipmentfinancefacility,revolving3-yearlimitof$22.0m,temporarilyreducedto
$20.0m(30 Jun 21: $10.0m)with$2.0mtransferredtoTradefinancefacilityforthe
periodbetweenJunetoSeptember22.

Headroom

Tradefinancefacility,revolving180-daylimitof$6.0mtemporarilyincreasedto
$8.0m(30 Jun 21: $3.0m)with$2.0mtransferredfromEquipmentfinancefacility
fortheperiodbetweenJunetoSeptember22.

Headroom

Workingcapitalfacility,$8.4m(30 Jun 21: $5.0m)including$1.4mbankguarantee
(30 Jun 21: $1.4m),and$6.6mbankoverdraft(30 Jun 21: $3.6m)

Headroom

Borrowings utilised*

Headroom

Total accessible borrowing amount

2022

2021

17,001,678

7,898,384

15,848,299

14,440,464

32,849,977

22,338,848

2022

2021

11,483,000

14,423,000

13,450,245

6,381,357

6,549,755

3,618,643

7,916,732

1,534,491

83,268

1,465,509

4,336,853

3,171,866

3,663,147

1,828,134

37,186,830

25,510,714

 10,296,170

6,912,286

47,483,000

32,423,000

Notes to the Consolidated  Financial Statements for the year ending 30 June 2022Acrow Annual Report 202271

In dollars

Borrowings utilised and committed

Less:Bankoverdraftutilisedexcludedfromloansandborrowingsdisclosed
separatelyontheStatementofFinancialPosition

Less:Bankguaranteeutilisednotdrawn

Total Loans and Borrowings

2022

2021

37,186,830

25,510,714

(3,001,005)

(1,865,938)

(1,335,848)

(1,305,928)

32,849,977

22,338,848

*FY21amountshavebeenrecalculatedtoadjusttheheadroomandborrowingsutilisedrelatingtotheGroup’sbankoverdraft.

Allborrowingsaresecuredbyinterlockingguaranteeswhereeachcompanywithinthegroupjointlyandseverally
guaranteestherepaymentofloanstothelendinginstitution.Allloansaresecuredovertheassetsandinventoryof
the Group.

Covenantsarereviewedhalf-yearlywiththelender.TheGrouphascompliedwithalltherespectiveborrowing
covenantsthroughouttheyearended30June2022.ThecovenantmeasuresincludeDebtServiceCoverratio,Equity
ratioandFinancialDebttoEBITDAratio.

Interestratesonsecuredamortisedbusinessloansarevariableanddependentonprevailingmarketratesand
bank margins.

Allborrowingcostsincurredintheyearhavebeenexpensed.

20.  Provisions

In dollars

Makegood

2022

2021

469,274

469,274

469,274

469,274

Aprovisionformakegoodismeasuredatthepresentvalueofthecostofrestoringleasedpropertiestotheiroriginal
condition,attheconclusionofthelease.Nolongterm(greaterthan12months)newpropertyleasehadbeenentered
intoduringtheyearthatrequirefurtheraddition.

Acrow Annual Report 202272

21.  Deferred income tax liability and current income tax liability

In dollars

2022

2021

Deferred income tax liability movement during the year:

Openingbalanceat1July

Changestoestimatesfromprioryears

Provisions

Accruals

Property, plant and equipment

Revenue tax loss

Closing balance at 30 June

Income tax liabilities

Openingbalanceat1July

Changestoestimatesfromprioryears

Tax paid

Currenttaxliabilities

Carried forward unpaid tax liabilities

Unrecognised deferred tax assets

Deferred tax assets not recognised for the following items:

Revenue tax losses

Capitallosses

Temporary differences

6,596,723

4,727,900

32,919

–

(250,978)

(5,613,213)

74,124

(139,788)

537,627

7,333,145

–

288,679

6,990,415

6,596,723

310,332

556,301

(15,739)

–

(9,790)

(556,301)

1,584,228

310,332

1,869,031

310,332

11,200,229

15,475,859

202,441

202,441

(5,921,940)

(6,061,604)

5,480,730

9,616,696

While tax losses and temporary differences do not expire under current tax legislation, deferred tax assets have not 
beenrecognisedinrespectoftheseitemsascertainsubsidiarieshaveexperiencedanumberofyearswithouttaxable
incomeandthereforerecoveryisnotconsideredprobable.Thetaxlossesdonotexpireundercurrenttaxlegislation.

Thepotentialbenefitofthedeferredtaxassetinrespectoftaxlossescarriedforwardwillonlybeobtainedif:

(i) Thesubsidiariescontinuetoderivefutureassessableincomeofanatureandanamountsufficienttoenablethe

benefittoberealised;

(ii) Thesubsidiariescontinuetocomplywiththeconditionsfordeductibilityimposedbythelaw;

(iii)Nochangesintaxlegislationadverselyaffectthesubsidiariesinrealisingtheasset;and

(iv)Thesubsidiariespassthecontinuityofownershiptest,orthesamebusinesstestasoutlinedbytheAustralian

TaxationOffice.

Notes to the Consolidated  Financial Statements for the year ending 30 June 2022Acrow Annual Report 202273

22.  Issued capital 

In dollars

Number of shares

Onissueof1July

IssueofDRPshares(i)

Issueofsharesforcash(ii)

Sharesissuedthroughconversionofperformancerights(iii)

Exerciseofshareoptions(iv)

Exerciseofrestrictedrights(v)

2022

2021

219,377,208

216,039,534

2,138,792

2,183,021

27,631,579

3,165,120

–

–

280,500

1,154,653

359,000

–

252,952,199

219,377,208

(i) 1,432,611unitsofordinaryshareswereissuedat$0.4437persharefollowingthefinal2021dividenddeclarationon25November2021
pursuanttotheDividendReinvestmentPlan(DRP);706,181unitsofordinaryshareswereissuedat$0.4575persharefollowingthe
FY2022interimdividenddeclarationon27May2022alsopursuanttotheDRP.

(ii) 27,631,579unitsoffullypaidordinaryshareswereissuedat$0.38pershareviacapitalraisingon27July2021.

(iii)3,165,120unitsofordinaryshareswereissuedthroughconversionofperformancerightsgrantedunderLongTermVariableRemuneration

planinJuly2019.

(iv)280,500unitsofLoanFundedShareswereexercisedat$0.20persharewith$42,776loanrepaidimmediatelyafterapplying

accumulated dividend.

(v) 359,000unitsofRestrictedRightsweregrantedtoanumberofselectedemployeesinSeptember2021whichwereexercisedon

21 December2021.

The holders of these shares are entitled to receive dividends as declared from time to time and are entitled to one vote 
pershareatgeneralmeetingsoftheGroup.

Dividends

Dividenddistributionspayabletoequityshareholdersareincludedinotherliabilitieswhenthedividendshavebeen
approvedpriortothereportingdate.

ThefollowingdividendsweredeclaredandpaidbytheGroupduringtheyear:

In dollars

2022

2021

Dividends on ordinary shares declared and paid:

FY21:1.15centpershare(FY20:1.05centpershare)

–Paidincash

–PaidviaDRP

Interim dividend for the current reporting period:

FY22:0.75centpershare(FY21:0.75)

–Paidincash

–PaidviaDRP

2,239,483

1,875,228

635,683

399,287

2,702,944

1,270,029

323,078

367,626

5,901,188

3,912,170

Afullyfrankeddividendof$2,875,166fortheyearended30June2021waspaidon25November2021at1.15cents
persharewith1,432,611newsharesissuedaspartoftheDRP.

A20%frankedinterimdividendof$3,026,022forFY2021waspaidon27May2022at1.20centspersharewith
706,181newsharesissuedaspartoftheDRP.

Acrow Annual Report 2022 
74

22.  Issued capital (continued)

Subsequenttobalancedate,theDirectorsdeclaredadividendof1.50centspershare60%frankedon23August2022,
tobepaidon30November2022.

Frankingcreditbalancewas$2,393,015at30June2022(2021:$1,954,882).

Foreign currency translation reserve 

The foreign currency translation reserve is used to record exchange differences arising on translation of the Group 
entitiesthatdonothavefunctionalcurrencyofAUDdollarsandhavebeentranslatedforpresentationpurpose.

Share-based payments reserve

Theshare-basedpaymentsreserveisusedtorecognizethegrantdatefairvalueofsharesissuedtoemployeesand
directorsthathavenotyetvested.

23.  Capital management
ManagementmonitorsthecapitaloftheGroup,inordertomaintainagooddebttoequityratio,providethe
shareholderswithadequatereturnsandensurethattheGroupcanfunditsoperationsandcontinueasa
going concern.

TheGroup’sdebtandcapitalincludesordinarysharecapitalandborrowings.

Therearenoexternallyimposedcapitalrequirements.

ManagementeffectivelymanagestheGroup’scapitalbyassessingtheGroup’sfinancialrisksandadjustingitscapital
structureinresponsetochangesintheserisksandinthemarket.Theseresponsesincludethemanagementofdebt
levels,distributionstoshareholdersandshareissues.

24.  Earnings per share
BasicEPSiscalculatedbydividingprofitfortheyearattributabletoordinaryequityholdersoftheParentbythe
weightedaveragenumberofordinarysharesoutstandingduringtheyear.

DilutedEPSiscalculatedbydividingthenetprofitattributabletoordinaryequityholdersoftheParentbytheweighted
averagenumberofordinarysharesoutstandingduringtheyearplustheweightedaveragenumberofordinaryshares
thatwouldbeissuedonconversionofallthedilutivepotentialordinarysharesintoordinaryshares.

ThefollowingtablereflectstheincomeandsharedatausedinthebasicanddilutedEPScomputations:

In dollars

Earnings reconciliation

Profitexcludingsignificantitems

Netshare-basedpaymentsandsignificantitems*

Net profit after tax

2022

2021

17,812,912

8,712,829

(2,118,744)

(4,749,831)

15,694,168

3,962,998

*SignificantitemsarecomprisedofShare-basedpayments,restructuringandduediligenceexpensesasinnote6.

Notes to the Consolidated  Financial Statements for the year ending 30 June 2022Acrow Annual Report 202275

In dollars

Number of ordinary shares:

2022

2021

WeightedaveragenumberofordinarysharesusedinthecalculationofbasicEPS

248,515,534

217,558,863

WeightedaveragenumberofordinarysharesusedinthecalculationofdilutedEPS

258,794,953

224,511,742

Cents per share:

BasicEPSexcludingsignificantitems(centspershare)

DilutedEPSexcludingsignificantitems(centspershare)

BasicEPS(centspershare)

DilutedEPS(centspershare)

25.  Capital commitments

In dollars

Capital commitments

7.17

6.88

6.32

6.06

4.00

3.88

1.82

1.77

2022

2021

Capitalexpenditurecontractedforatthereportingdatebutnotrecognisedas
liabilitiesasfollows:

Plant and equipment

2,382,900

1,885,383

Acrow Annual Report 202276

26.  Reconciliation of cash flows from operating activities

In dollars

Cash flows from operating activities

Profit

Adjustments for:

–Depreciationandimpairment

–Depreciationonright-of-useassets

–Hireequipmentlossprovision

–(Gain)ondisposalofassets

–Share-basedpayment

–RemeasurementofsharesissuedonUni-spanacquisitions

–ContingentconsiderationrelatedtoUni-spanacquisition

–Taxexpense

Net changes in working capital:

–Otherfinancialassets

–Tradeandotherreceivables

–Inventories

–Contractassets

–Prepaymentsandotherassets

–Assetsheldforsale

–Tradeandotherpayables

–Provisionsandemployeebenefits

–Liabilitiesassociatedwithassetsheldforsale

–Currenttaxliabilities

Cash generated from operating activities

Financecosts

Net cash from operating activities

2022

2021

15,694,168

3,962,998

7,387,349

5,888,321

5,683,003

5,675,276

(53,257)

(31,104)

(4,955,787)

(6,552,430)

1,164,668

2,245,520

–

–

(350,000)

148,264

1,962,182

2,179,155

–

99,411

(9,751,131)

(7,597,076)

(5,913,632)

(3,380,809)

663,241

(655,701)

(1,457,455)

(1,382,604)

(6,072)

6,347

(3,918,210)

8,800,091

1,353,377

525,767

7,041

(7,271)

(9,790)

(556,302)

7,849,695

9,017,853

3,513,116

3,305,705

11,362,811

12,323,558

Notes to the Consolidated  Financial Statements for the year ending 30 June 2022Acrow Annual Report 202277

27. Remuneration of auditors
DuringtheyearthefollowingfeeswerepaidorpayableforservicesprovidedbyGrantThorntonAuditPtyLtd(GT)as
theauditoroftheparententity.

In dollars

Audit and review of financial reports

Group and controlled entities

Total audit and review of financial reports

Other assurance services

Other services

Tax advisory services

Tax compliance services

Total other non-audit services

Total services provided by GT

2022

2021

335,315

318,535

335,315

318,535

12,700

31,815

–

111,180

111,180

23,650

41,850

65,500

459,195

415,850

28.  Key management personnel and related parties
Keymanagementpersonnelarethosepersonshavingauthorityandresponsibilityofplanning,directingandcontrolling
theactivitiesoftheGroup,directlyorindirectly,includinganydirector,whetherexecutiveorotherwise,oftheGroup.

In dollars

	■ Shorttermemploymentbenefits

	■

Longtermemploymentbenefits

	■ Post-employmentbenefits

	■ Share-basedpayments

2022

2021

1,778,441

1,884,959

96,309

49,810

23,792

183,764

62,903

523,237

Total compensation paid to key management personnel

1,948,352

2,654,863

Other related party transactions

TheGroupleasesindustrialandcommercialpropertiesfromMargaretProkop’spersonalcompanies(MRPProperty
PtyLtd&MRPSuperannuationPtyLtd)throughtheNatformsubsidiaries.

MargaretProkopwaspreviouslyadirectorofNatformcompaniesanduponthesaleofNatformtoAcrow,Margaret
wasappointedasadirectoroftheGroup.Rentalandrelatedpropertypaymentstohercompaniesamountedto
$1,057,924(2021:$852,581).Leasetermsareupto8years.Balanceoutstandingat30June2022was$48,612(2021:
$6,635).MargaretProkopretiredfromtheboardon31December2021.

NatformengagedMargaretProkop’sbrother,theproprietorofNatPtyLtdtomanufactureandassemblescreensfor
Natform,theamountincurredfortheyearwas$961,079(2021:$1,235,128);balanceoutstandingat30June2022was
$12,496(2021:$132,394).AgreementwithNatPtyLtdterminatedon28May2022withallmanufacturingfunctions
sourcedinternallyandmanagedbyNatformemployeesgoingforward.

Allintercompanytransactionsbetweentheparententityandthesubsidiariesandamongstthesubsidiarieshavebeen
eliminatedonconsolidation.

Acrow Annual Report 202278

29.  Share-based payments
At30June2022theGrouphadthefollowingshare-based
paymentarrangements.

Loan Funded Shares

TheGroupcarriesforwardonlyLoanFundedShares
issuedin2018whereselectedemployeesanddirectors
oftheGrouphadbeengrantedaninterest-freeloan
tosubscribetosharesofAcrowFormworkand
ConstructionServicesLimited.

Theseloansarenon-recourseotherthantotheshares
heldbythatemployee/director,andtheproceedsofthe
loanmustbeusedtobuyshares.Astheonlyrecourseon
the loans is the shares and there are vesting conditions, 
thearrangementhasbeenaccountedforasshare
options,asrequiredunderaccountingstandards.

These options entitle the holders to receive dividends on 
ordinary shares of the Group, and these dividends are 
requiredtobeusedtorepaytheloansdescribedabove.

TheLoanFundedShareshavethefollowingterms:

(i) Dateofissue:27March2018

(ii) Loanterm:5years;

(iii)Interest:Nointerestispayable;and

(iv)Vestinghurdles:subjecttobeingacontinuous

employee or director of the Group for 2 years from 
thedateofissue,andthe20-day(atanypointover

thevestingperiod)volumeweightedaverageshare
price(“VWAP”)oftheGroup’ssharepriceexceeding
40centspershare(posttheshareconsolidation).
Thefairvalueatgrantdatewasdeterminedusingan
adjustedformoftheMonte-Carlomodelthatfactors
inmarketconditions.Thegrantdatefairvalueof
rightsgrantedintheyearwas$0.1071.

Allvestinghurdleshadbeenmetat27March2020.In
July2021,280,500unitsofLoanFundedOptionshad
beenexercisedat$0.20persharediscountedbydividend
accruedfrom$56,100to$42,776.Loanwasimmediately
settledincashbytheemployee.

Themodelinputsforthein-substanceoptionsgranted
hadincluded:

a) Exerciseprice$0.20

b) Sharepriceatgrantdate$0.20

c) Expectedpricevolatility75%–basedon

comparable companies

d) Expecteddividendyield0%

e) Risk-freeinterestrate2.41%

f) Expectedlife3years

Totalnumberofoutstandingloanfundedsharesat
30June2022were2,194,500units(30June2021:
2,475,000).

Reconciliation of outstanding loan funded share options:

Thenumberandweightedaverageexercisepricesofloanfundedoptionswereasfollows:

2022

2021

Number

2,475,000

–

280,500

2,194,500

Weighted average 
exercise price

$0.20

–

$0.20

$0.20

Number

2,475,000

–

–

Weighted average 
exercise price

$0.20

–

–

2,475,000

$0.20

Outstandingat1July

Granted during the year

Exercisedduringtheyear

Outstanding at 30 June 

Options

Nonewoptionshavebeenissuedduringtheyear.

InNovember2021,50,000unitswerecancelledduetofailuretomeetvestingcondition(being20-dayvolume
weightedaveragepriceof60centspershare)beforeexpirydate.

Totalnumberofoutstandingoptionsat30June2022were6,860,000units(30June2021:6,910,000).Balanceofall
outstandingoptionsatbalanceddateareasfollow:

Notes to the Consolidated  Financial Statements for the year ending 30 June 2022Acrow Annual Report 202279

Grant date

Expiry date

Exercise price

options Exercise price

2022

2021

Number of 

23November2016

23November2021

13December2017

13December2022

14January2019

14January2024

4March2019

4March2024

16July2019

16July2024

Balance at 30 June

Reconciliation of outstanding share options:

$0.20

$0.20

$0.50

$0.50

$0.40

–

200,000

5,100,000

360,000

1,200,000

6,860,000

$0.20

$0.20

$0.50

$0.50

$0.40

Number of 
options

 50,000

200,000

5,100,000

360,000

1,200,000

6,910,000

2022

2021

Number

6,910,000

–

–

(50,000)

6,860,000

Weighted average 
exercise price

Number

Weighted average 
exercise price

$0.47

9,323,000

–

–

$0.20

$0.47

–

(1,663,000)

(750,000)

6,910,000

$0.40

–

$0.20

–

$0.47

Outstandingat1July

Granted during the year

Exercisedduringtheyear

Forfeitedduringtheyear

Outstanding at 30 June 

Performance Rights

Asof30June2021,therewereatotalof15,946,950PerformanceRights(LTVR1-4)outstandingwhichweregranted
basedonEarningPerShare(EPS)andTotalShareholderReturn(TSR)performancehurdlesoverFY2021&FY2022.
Therearefourtranchesandtheirmovementsaresummarizedasfollow:

Long term variable incentives

LTVR 1

LTVR 2

LTVR 3

LTVR 4

Measurement period

Hurdle

FY2022

FY2022

FY2021

FY2021

TSR

EPS

TSR

EPS

Vestingstatusat30June2022

Unvested

Unvested

Lapsed

Vested

Outstandingasof1July

2,027,500

6,082,500

1,959,250

5,877,700

Grants/(cancellations)ofissues

202,905

608,713

–

–

Unvested or forfeiture

Vestedandexercisedasordinaryshares

–

–

–

–

Balance outstanding 30 June 2022

2,230,405

6,691,213

(1,959,250)

(2,351,080)

–

–

(3,165,120)

361,500

WithLTVR1-2,afurther1,175,618unitshavebeengrantedtoeligibleemployeesinSeptember2021andMarch2022,
and364,000unitshavebeencancelledonterminatedemployees,resultingin8,921,618rightsoutstandingatendof
June2022.

WithLTVR3,theGroupfailedtomeetTSRconditionsresultingincancellationofall1,959,250unitsissued.

WithLTVR4,theGroupmettheEPSperformanceconditionswith60%vestingrateresultingin3,526,620unitsvested
and2,351,080unitsforfeited.3,165,120unitsthatvestedhadbeenexercisedandconvertedtoordinaryshares,

Acrow Annual Report 202280

29.  Share-based payments (continued)

leavingabalanceof361,500unitsunexercisedatendof
June 2022.

Ashort-termincentiveissueof359,000rightswere
grantedtoeligibleemployees,vestedandexercisedas
ordinarysharesduringthereportingperiod.

On1June2022,TheGroupgranted7,901,708
performancerights(LTVR5-8)toeligibleemployeesover
twoplans,being3,584,434forFY2023and4,317,274for
FY2024,Eachyearisconsistedoftwotranches,oneon
EPSandoneonTSRperformancevestingconditionsof
equalnumberofunits.Ifthevestingconditionsaremet,
eachPerformanceRightcanbeexercisedintooneFully
PaidOrdinaryShareattheholder’sdiscretionuntilthe
expirydateof30June2037.ThePerformanceRights
wereissuedtoemployeesoftheCompanyunderthe
Company’sRightsPlanandformpartoftheLong-Term
VariableRemunerationoftheemployees.

iii. Above130%ofindexreturnuptoa

maximum of160%indexreturnthebalance
of theperformancerightswillvestonapro
ratabasis.

c. Theperformancerightswillbemeasuredbetween

1July2020and30June2023forthe2023
issueand1July2021and30June2024forthe
2024 issue.

The model inputs for the performance rights 
granted included:

a) Exerciseprice:nil

b) Sharepriceatgrantdateof1June2022was$0.48

c) Expectedpricevolatilitybetween14%and33%-based

oncomparablecompanies

d) Expecteddividendyield5.1%

Theperformancerightshavethefollowingterms:

e) Risk-freeinterestratebetween2.25%and3.6%

(i) Exerciseprice:nil;

(ii) Conversion:uponvesting,conversiontosharesona

1 for1basis;

(iii)Dividends:notentitleduntilperformancerightsare

exercised;

(iv)Vestinghurdles:

a. 50%ofeachissuemeasuredonEarningsper

share(EPS)criteriaspecifically“Netprofitaftertax
/Weightedaveragenumberofsharesonissue”.

i.

ii.

Athresholdcumulativereturnof8%is
requiredbelowwhichnovestingwilloccur.

Atargetreturnof10%willvest50%of
performancerightsandproratabetween
8% and10%

iii. Above10%returnuptoamaximumof

20% returnthebalanceoftheperformance
rightswillvestonaproratabasis.

b. 50%ofeachissuemeasuredonTotalShareholder
return(TSR)criteria.Thiscomparestheshare
price and dividends through the measurement 
periodtotheASXSmallIndustrialsIndex.

i.

ii.

Athresholdcumulativereturnequaltothe
marketisrequiredbelowwhichnovesting
will occur.

Atargetreturnof130%oftheindexTSR
willvest50%ofperformancerightsand
proratabetweenindexreturnand130%of
index return.

Totalnumberofoutstandingperformancerightson
30June2022were17,184,826units(30June2021:
15,946,950).

30.  Financial risk management
Risk management objectives and policies 

TheGroup’sactivitiesexposeittoavarietyoffinancial
risks:marketrisk(includingforeignexchangerisk,
interestraterisk),creditriskandliquidityrisk.The
Group’soverallriskmanagementprogramfocuses
ontheunpredictabilityoffinancialmarketsandseeks
tominimisepotentialadverseeffectsonthefinancial
performanceoftheGroup.

TheGroupusesderivativefinancialinstrumentssuch
asforeignexchangecontractstohedgecertainrisk
exposures.Derivativesareexclusivelyusedforeconomic
hedging purpose and are not used as speculative or 
tradinginstruments.

The Group uses different methods to measure different 
typesofrisktowhichitisexposed.Thesemethods
include sensitivity analysis in the case of interest rate, 
foreignexchangeandotherpricerisks,andaging
analysisforcreditrisk.

Therewasnoopenforeignexchangecontractat
30June2022and30June2021.

Fair value hierarchy

Thefairvalueoffinancialassetsandfinancialliabilities
mustbeestimatedforrecognitionandmeasurementor
fordisclosurepurposes.

Fairvalueinputsaresummarisedasfollows:

Notes to the Consolidated  Financial Statements for the year ending 30 June 2022Acrow Annual Report 202281

Level 1:Thefairvalueoffinancialinstrumentstraded
inactivemarkets(suchaspubliclytradedderivatives,
andtradingandavailable-for-salesecurities)isbasedon
quotedmarketpricesattheendofthereportingperiod.

Level 2:Thefairvalueoffinancialinstrumentsthat
arenottradedinanactivemarket(forexample,
over-the-counterderivatives)isdeterminedusing
valuationtechniqueswhichmaximisetheuseof
observablemarketdataandrelyaslittleaspossibleon
entityspecificestimates.Ifallsignificantinputsrequired
tofairvalueaninstrumentareobservable,theinstrument
isincludedinLevel2.

Level 3:Ifoneormoreofthesignificantinputsisnot
basedonobservablemarketdata,theinstrumentis
includedinLevel3.

Thefairvaluehierarchywasnotapplicablefortheyear
ended30June2022,astheGroupheldnofinancial
assetsorliabilitiesthatrequiredvaluation.

Fairvaluehierarchyisre-assessedannuallyforany
change in circumstance that may suggest a revised level 
beassignedtoatypeofbalancemeasuredatfairvalue.

TheGroup’sriskmanagementiscoordinatedby
management,inclosecooperationwiththeBoardof
Directors,andfocusesonactivelysecuringtheGroup’s
shorttomedium-termcashflowsbyminimisingthe
exposuretofinancialmarkets.

The Group does not actively engage in the trading of 
financialassetsforspeculativepurposes.Themost
significantfinancialriskstowhichtheGroupisexposed
aredescribedbelow.

Market risk analysis 

TheGroupisexposedtomarketriskthroughitsuseof
financialinstrumentsandspecificallytointerestrate
riskandcertainotherpricerisks,whichresultfromits
operatingactivities.

Exposure to currency risk

Asat30June2022theGroupheldthebelowAUDequivalentofforeigncurrencyrisksinUSD,EURandHKD:

Tradepayables

2,728,137

768,196

191,557

1,059,549

780,755

30 June 2022

30 June 2021

USD

EUR

HKD*

USD

EUR

Purchaseordersat30June

3,479,939

1,695,780

232,824

1,885,383

CashatBank

Net exposure

(59,369)

–

–

–

6,148,707

2,463,976

424,381

2,944,932

780,755

–

–

*TheGrouphadnoexposuretoHKDat30June2021.

Foreign currency sensitivity 

Apossiblestrengthening/(weakening)oftheUSD,EURortheHKDat30Junewouldhaveaffectedprofitorlossbythe
amounts(inAUD)shownbelow.Thisanalysisassumesthatallothervariablesremainconstantandignorestheimpact
offorecastpurchases.

In dollars

USD(10%movement)

EUR(10%movement)

HKD(10%movement)

Profit or loss

Strengthening

Weakening

558,973

223,998

38,580

(683,190)

(273,775)

(47,153)

Acrow Annual Report 202282

30.  Financial risk management (continued)

Interest rate risk 

InterestrateriskistheriskthatchangesininterestratesimpacttheGroup’sfinancialperformanceorthevalueofits
financialinstruments.

TheGroup’sinterestrateriskarisesfromitsoverdrafts,termloansandwhennewequipmentortradefinancesare
drawn.Drawdownandincreaseinoverdraftunderthecurrentdebtfacilityarepricedusingafloatinginterestrateplus
afixedmargin.

TheGroupdoesnotcurrentlyuseinterestratehedges.However,managementregularlyreviewsitsfunding
arrangements to ensure loans are competitively priced and access are maintained to necessary liquidity levels to 
servicetheGroup’soperationalactivities.

At30June2022theGrouphasthefollowingexposuretointerestratesonborrowings:

Fixed rate instruments 

Loansandborrowings

Variable rate instruments 

Loansandborrowings

Overdraft*

2022

2021

21,366,977

7,915,848

11,483,000

14,423,000

3,001,005

1,865,938

*FY2021valueshavebeenadjustedtoincludeoverdraftbalanceof$1,865,938at30June2021forconsistencyandcomparability.

Interest Rate Sensitivity 

At30June2022,theGroupheldinterestbearingloansof
$32,849,977(2021:$22,338,848)andabankoverdraftof
$3,001,005(2021:$1,865,938).

Anincreaseof100basispointsininterestrateson
variableinstrumentsatthereportingdatewouldhave
anegativeimpactof$155,723(2021:$167,644)onthe
netprofit,whereasadecreaseof100basispointswould
haveapositiveimpactof$143,611(2021:$155,373)on
thenetprofit.

Credit risk analysis 

Creditriskistheriskthatacounterpartyfailsto
dischargeanobligationtotheGroup.TheGroupis
exposedtothisriskprincipallythroughreceivables
fromcustomers.TheGroupleaseshireequipmentand
provides services to consumers pursuant to policies and 
procedures that are intended to ensure that there is no 
concentrationofcreditriskwithanyparticularindividual,
companyorotherentity.

TheGroup’sexposuretocreditriskisinfluencedmainly
bytheindividualcharacteristicsofeachcustomer.
However,managementalsoconsidersthefactorssuch
asmarketsegment,financialprofile,defaultriskofthe
industrysectorandcredithistoryofthecustomers.To
managethisrisk,theGrouphasapolicyforestablishing
creditapprovalsandlimitsunderwhicheachnew
customerisanalysedindividuallyforcreditworthiness

beforestandardpaymenttermsandlimitsaregranted.
Whereavailableatreasonablecost,externalcreditratings
and/orreportsoncustomersandothercounterparties
areobtainedandused.TheGroup’spolicyistodealonly
withcreditworthycounterparties.Thesummaryofthe
Group’stradereceivablesisavailableinnote10.

The Group conducts an ongoing assessment of expected 
creditlosses(ECL)byanalysingactuallossexperience
of the Group, arrears, and other inputs such as exposure 
ortiming.Theassessmentisbrokendowninto4 sectors
includingIndustrialServices,CivilInfrastructure,
Commercial,andResidential.Thesesectorsarethen
analysed in a set of 5 stages ranging from currently due 
receivablestoreceivablesdueinover90days.TheGroup
alsoseparatelyquantifiesreceivablesduefromentitiesin
liquidation/default.

Macroeconomic Scenarios

Expectedcreditlosses(“ECL”)areaprobability-weighted
estimate of credit losses over the expected life of the 
financialinstrument.TheGrouphasaprocessfor
incorporatingforwardlookingeconomicscenariosand
determiningtheprobabilityweightingsassignedtoeach
scenarioindeterminingtheoverallECL.TheGroup
preparesabase,bestandworst-casescenariosbasedon
economicvariables.

TheGrouphasincorporatedthisbyuseofa
managementoverlayoreconomicriskreserve.

Notes to the Consolidated  Financial Statements for the year ending 30 June 2022Acrow Annual Report 202283

Write-off policy 

TheGroupwritesofffinancialassetsinwholeorinpart,whenithasexhaustedallpracticalrecoveryeffortsand
hasconcludedthereisnoreasonableexpectationofrecovery.Indicatorsthatthereisnoreasonableexpectationof
recoveryinclude(i)ceasingenforcementactivityand(ii)wheretheGroup’srecoverymethodisforeclosingoncollateral
andthevalueofthecollateralsuchthatthereisnoreasonableexpectationoffullrecovery.

Liquidity risk analysis 

LiquidityriskistheriskthattheGroupmightbeunabletomeetitsobligations.

TheGroupmanagesitsliquidityneedsbymonitoringscheduleddebtservicingpaymentsforlong-termfinancial
liabilitiesaswellasforecastcashinflowsandoutflowsdueinday-to-daybusiness.Thedatausedforanalysingthese
cashflowsisconsistentwiththatusedinthecontractualmaturityanalysisbelow.

Liquidityneedsaremonitoredinvarioustimebands,onaday-to-dayandweek-to-weekbasis,aswellasonarolling
30-dayprojection.Long-termliquidityneedsfora180-dayanda360-daylookoutperiodareidentifiedmonthly.

Netcashrequirementsarecomparedtoavailableborrowingfacilitiestodetermineheadroomoranyshortfalls.This
analysisshowsthatavailableborrowingfacilitiesareexpectedtobesufficientoverthelookoutperiod.Refertonote19
forundrawnborrowingfacilities.

TheGroup’sobjectiveistomaintaincashtomeetitsliquidityrequirementsfor30-dayperiodsataminimum.Funding
forlong-termliquidityneedsisadditionallysecuredbyanadequateamountofcommittedcreditfacilities.

TheGroupconsidersexpectedcashflowsfromfinancialassetsinassessingandmanagingliquidityrisk,notablyits
cashresourcesandtradereceivables.

Thefollowingliquidityriskdisclosuresreflectallcontractuallyfixedrepaymentsandinterestresultingfromrecognised
financialliabilitiesandderivativesasof30June2022.Thetimingofcashflowsforliabilitiesisbasedonthe
contractualtermsoftheunderlyingcontract.

Contractual cash flow

Carrying 
Amount

Total

1 year or less

1 to 5 years

Over 5 years

2022

Non-derivative financial liabilities

Tradepayablesandaccrued
expenses

21,484,027

(21,484,027)

(21,484,027)

–

Loansandborrowings

32,849,977

(35,302,897)

(18,039,906)

(17,262,991)

–

–

Leaseliabilities

28,249,469

(33,556,109)

(6,392,739)

(19,481,318)

(7,682,052)

82,583,473

(90,343,033)

(45,916,672)

(36,744,309)

(7,682,052)

2021

Non-derivative financial liabilities

Deferredconsideration

3,486,289

(3,520,248)

(3,520,248)

–

Tradepayablesand
accrued expenses

25,122,155

(25,122,155)

(20,694,234)

(4,427,921)

Loansandborrowings

22,338,848

(24,289,195)

(8,626,267)

(15,662,928)

–

–

–

Leaseliabilities

32,041,939

(38,014,095)

(6,125,388)

(20,899,218)

(10,989,489)

82,989,231

(90,945,693)

(38,966,137)

(40,990,067)

(10,989,489)

Acrow Annual Report 202284

31.  Group entities
Theconsolidatedfinancialstatementsincludethefinancialstatementsofthefollowingwholly-ownedsubsidiaries:

AcrowHoldingsPtyLimited(a),(b)

AcrowFormworkandScaffoldingPtyLtd(a),(b)

NatformPtyLtd(a),(b)

Natform(QLD)PtyLtd(a),(b)

Uni-spanGroupPtyLtd(a),(b)

Uni-spanHeightSafetyPtyLtd(a),(b)

UnispanAustraliaPtyLtd(a),(b)

Uni-spanFormworkSolutionsPtyLtd(a),(b)

AcrowGroupInvestmentsPtyLtd(a),(b)

NobleMineralResourcesGhanaLimited

Place of 
incorporation

% Equity 
interest

NSW

NSW

NSW

QLD

QLD

QLD

QLD

QLD

NSW

Ghana

100%

100%

100%

100%

100%

100%

100%

100%

100%

100%

(a)ThesesubsidiarieshavebeengrantedrelieffromthenecessitytopreparefinancialreportsundertheoptionavailabletotheGroupunder

ASICCorporations(WhollyOwnedCompanies)Instrument2016/785.

(b)Thesesubsidiaries,alongwithAcrowFormworkandConstructionServicesLimited(theparententityoftheGroup),formtheDeedofCross

GuaranteeGroupdescribedfurtherfromnote34.

32.  Operating segments
TheGroup’soperatingsegmentisbasedontheinternalreportsthatarereviewedandusedbytheBoardofDirectors
andtheexecutivemanagementteam(beingtheChiefOperatingDecisionMakers(“CODM”))inassessingthefinancial
performanceandindeterminingtheallocationofresources.TheGroupoperatesinthebuildingconstructionmarket,
providingfalsework,formwork,scaffolding,screensandrelatedmaterialforhireandsales.Therearenooperating
segmentsforwhichdiscretefinancialinformationexists.Theprioryearsegmentdisclosureincludedanadditional
segmentbeingminingexploration.ThissegmentwasalegacyoftheCompanypriortoitscurrentoperations,
immaterialanddoesnotgetreportedseparatelytotheCODMthereforewasexcluded.

TheinformationreportedtotheCODM,onatleastmonthlybasis,istheconsolidatedresultsasshowninthe
statementofprofitorlossandothercomprehensiveincomeandstatementoffinancialposition.

Notes to the Consolidated  Financial Statements for the year ending 30 June 2022Acrow Annual Report 202233.  Parent entity disclosures

In dollars

Results of the parent entity

Profitfortheperiod

Total comprehensive income for the period

Financial position of the parent entity at year end

Currentassets

Non-currentassets

Total assets

Currentliabilities

Total liabilities

Net assets

Total equity of parent entity comprising:

Issuedcapital

Share-basedpaymentsreserve

Accumulated losses

Total equity

Movement to accumulated profits/(losses):

Opening balance at 1 July

DividendpaidandreinvestedthroughDRP

Writebackofcancelledperformancerights

Profitfortheperiod

Closing balance at 30 June

85

2022

2021

1,139,571

3,063,463

1,139,571

3,063,463

18,455

5,405

54,554,925

50,707,007

54,573,380

50,712,412

201,184

3,615,726

201,184

3,615,726

54,372,196

47,096,686

58,310,046

46,703,384

3,003,682

2,972,126

(6,941,532)

(2,578,824)

54,372,196

47,096,686

(2,578,824)

(1,730,117)

(5,901,188)

(3,912,170)

398,909

–

1,139,571

3,063,463

(6,941,532)

(2,578,824)

AccountingpoliciesoftheparentcompanyAcrowFormworkandConstructionServicesLimitedareconsistentwith
thegroupandsubsidiaries.

Investmentsinsubsidiariesareaccountedforatcostinthefinancialstatementsoftheparententity,theseare
reviewedannuallyforrecoverabilityatthereportingdate.

34.  Deed of cross guarantee
UnderthetermsofASICCorporations(WhollyownedCompanies)Instrument2016/785,certainwhollyowned
controlledentitieshavebeengrantedrelieffromtherequirementtoprepareauditedfinancialreports.

AcrowenteredintoanapprovedDeedofIndemnityon26June2018forthecross-guaranteeofliabilitieswithAcrow
FormworkandScaffoldingPtyLtdandAcrowHoldingsPtyLtd,thenon19December2018,anAssumptionDeedwas
executedtoincludenewlyformedentityAcrowGroupInvestmentsPtyLtdandacquiredcompanies,NatformPtyLtd
andNatform(QLD)PtyLtd.

Afurtherassumptiondeedwasexecutedon3May2020toincludethenewacquiredUni-spangroupofcompanies.

ThefollowingstatementofprofitorlossandstatementoffinancialpositioncomprisesAcrowanditscontrolled
entitieswhicharepartytotheDeedofCrossGuarantee,aftereliminatingalltransactionsbetweenpartiestotheDeed.

Acrow Annual Report 202286

34.  Deed of cross guarantee (continued)

Statement of Profit or Loss 

For the year ended 30 June 2022 

In dollars

Continuing operations

Revenue

Other income

Personnel expenses

Sub-contractlabourcosts

Inventorypurchased,netofchangesinfinishedgoods

Depreciation

ITandtelecommunicationexpenses

Freightcosts

Insuranceexpenses

Gain on fair value of derivatives

ContingentconsiderationrelatedtoUni-spanacquisition

Other expenses

Profit before net finance costs and income tax

Financecosts

Profit before income tax

Incometaxexpense

Profit from continuing operations 

Statement of Financial Position  

As at 30 June 2022 

In dollars

Current assets

Cashandcashequivalents

Tradeandotherreceivables

Inventories

Contractassets

Prepayments and other assets

Total current assets

2022

2021

140,826,918

94,608,887

4,955,787

6,552,430

(51,815,012)

(36,534,129)

(18,039,520)

(16,646,962)

(31,642,371)

(18,276,344)

(13,070,352)

(11,563,598)

(1,641,245)

(1,542,961)

(1,975,256)

(1,664,296)

(1,090,449)

(813,198)

–

–

350,000

(148,264)

(5,338,074)

(4,874,621)

21,170,426

9,446,944

(3,513,116)

(3,305,705)

17,657,310

6,141,239

(1,962,182)

(2,179,155)

 15,695,128 

3,962,085

2022

2021

3,010,318

1,754,516

34,362,867

24,611,736

14,872,186

8,958,554

111,927

775,168

5,075,832

3,618,377

57,433,130

39,718,351

Notes to the Consolidated  Financial Statements for the year ending 30 June 2022Acrow Annual Report 2022 
 
 
 
 
 
 
In dollars

Non-current assets

Property, plant and equipment

Right-of-useleaseassets

Intangibleassets

Total non-current assets

Total assets

Current liabilities

Bankoverdraft

Tradepayables

Otherpayables

Employeebenefits

Leaseliabilities

Loansandborrowings

Currenttaxliabilities

Total current liabilities

Non-current liabilities

Employeebenefits

Leaseliabilities

Loansandborrowings

Provisions

Deferredincometaxliability

Total non-current liabilities

Total liabilities

Net assets

Equity 

Issuedcapital

Share-basedpaymentsreserve

Retained earnings

Total equity

87

2022

2021

95,490,436

83,008,854

24,478,720

28,808,936

7,428,694

7,428,694

127,397,850

119,246,484

184,830,980

158,964,835

3,001,005

1,865,938

21,484,027

25,122,155 

–

3,486,289

6,159,454

4,639,524

4,964,215

4,645,552

17,001,678

7,898,384

1,869,031

310,331

54,479,410

47,968,173

444,988

611,541

23,285,254

27,396,387

15,848,299

14,440,464

469,274

469,274

6,990,415

6,596,723

47,038,230

49,514,389

101,517,640

97,482,562

83,313,340

61,482,273

58,310,046

46,703,384

3,003,681

2,972,126

21,999,613

11,806,763

83,313,340

61,482,273

Acrow Annual Report 202288

35.  Subsequent events
Changesonloanfacilitieseithereffectedoragreedafterbalancedate:

	■ EquipmentfinanceandTradefinancefacilitylimitstoreverton30September2022from$20,000,000to
$22,000,000andfrom$8,000,000to$6,000,000respectively,peragreementmadeon10June2022.

	■ Anewloanagreementforcapitalpurchases.Theloanamountis$4,125,000,maturesin3yearsfrom

commencementdateandrepayableinfullbyJune2025.

	■ Bankguaranteefacilityincreasedfrom$1,400,000to$1,700,000byreducingtheoverdraftfacilityfrom$6,600,000

to $6,300,000.

	■ FurtherEquipmentfinanceloansof$3,832,596weredrawn,repayableinfullatendofthreeyearsandTrade

financeloansof$1,688,639weredrawnandrepayableinfullwithin180days.

	■ Aninsurancepremiumfinanceloanof$1,201,540wasdrawnon22August2022repayableinfullby22July2023.

On23August2022theDirectorsdeclareda60%frankeddividendof1.5centspersharetobepaidon
30November2022.DividendReinvestmentPlanisavailableforelection.Thedividendhasnotbeenprovidedforinthis
financialreportasitwasnotdeclareduntilafter30June2022.

Otherthantheaboveevents,therehasnototherwisearisenbetween30June2022andthedateofthisreportany
item,transactionoreventofamaterialandunusualnaturelikely,intheopinionofthedirectorsoftheGroup,toaffect
significantlytheoperationsoftheGroup,theresultsofthoseoperations,orthestateoftheaffairsoftheGroupin
futurefinancialyears.

Notes to the Consolidated  Financial Statements for the year ending 30 June 2022Acrow Annual Report 202289

IntheopinionoftheDirectorsofAcrowFormworkandConstructionServicesLtd(theGroup):

(a) theconsolidatedfinancialstatementsandnotessetoutonpages49to88andtheRemunerationReportinthe

Directors’Report,setoutonpages23to48areinaccordancewiththeCorporationsAct2001,including:

(i) givingatrueandfairviewoftheGroup’sfinancialpositionasat30June2022andofitsperformance,forthe

financialyearendedonthatdate;and

(ii) complyingwithAustralianAccountingStandards,InternationalFinancialReportStandardsandthe

CorporationsRegulations2001;

(b) therearereasonablegroundstobelievethatthecompanywillbeabletopayitsdebtsasandwhentheybecome

dueandpayable.

(c) TherearereasonablegroundstobelievethatAcrowFormworkandConstructionServicesLimitedanditscontrolled

entitiesidentifiedinnote31willbeabletomeetanyobligationsorliabilitiestowhichtheyareormaybecome
subjectbyvirtueoftheDeedofCrossGuaranteebetweenAcrowFormworkandConstructionServicesLimitedand
itscontrolledentitiespursuanttoASICCorporations(Wholly-ownedCompanies)Instrument2016/785.

(d) TheDirectorshavebeengiventhedeclarationsrequiredbysection295AoftheCorporationsAct2001fromthe

ChiefExecutiveOfficerandtheChiefFinancialOfficerforthefinancialyearended30June2022.

SignedinaccordancewitharesolutionoftheDirectors:

Peter Lancken
Chairman

Sydney,27September2022

Steven Boland 
Director,ChiefExecutiveOfficer

Sydney,27September2022

Directors’ Declaration for the year ending 30 June 2022Acrow Annual Report 202290

Grant Thornton Audit Pty Ltd 
Level 17 
383 Kent Street 
Sydney NSW 2000 
Locked Bag Q800 
Queen Victoria Building NSW 
1230 

T +61 2 8297 2400 

Independent Auditor’s Report 

To the Members of Acrow Formwork and Construction Services Limited 

Report on the audit of the financial report 

Opinion 

We have audited the financial report of Acrow Formwork and Construction Services Limited (the Company) 
and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 
June 2022, the consolidated statement of profit or loss and other comprehensive income, consolidated 
statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes 
to the consolidated financial statements, including a summary of significant accounting policies, and the 
Directors’ declaration.  

In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 
2001, including: 

a  giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its performance 

for the year ended on that date; and  

b  complying with Australian Accounting Standards and the Corporations Regulations 2001. 

Basis for opinion 

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those 
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section 
of our report. We are independent of the Group in accordance with the auditor independence requirements 
of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical 
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence 
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled 
our other ethical responsibilities in accordance with the Code.  

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our 
opinion. 

www.grantthornton.com.au 
ACN-130 913 594 

Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389. 
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or 
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL). 
GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member 
firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one 
another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 
556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards 
Legislation. 

w 

Independent Auditor’s Report for the year ending 30 June 2022Acrow Annual Report 2022 
 
    
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
91

Key audit matters  

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of 
the financial report of the current period. These matters were addressed in the context of our audit of the financial 
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these 
matters.  

Key audit matter 

How our audit addressed the key audit matter 

Carrying value of goodwill (Note 16) 

As disclosed in Note 16, intangible assets comprise 
goodwill relating to the acquisition of Natform Pty Ltd 
and Natform (QLD) Pty Ltd which amounts to $7.3 
million.  

In accordance with AASB 136 Impairment of Assets, 
the Group is required to test the carrying value of 
goodwill annually. 

Management has tested goodwill for impairment by 
comparing the carrying value of the assets related to 
this cash-generating unit to a valuation model based 
on the value in use of these assets.  

We have determined this is a key audit matter as this 
assessment requires the exercise of significant 
judgement about forecasting future revenues and 
expenses, including discount rates applied to cash 
flows. 

Expected credit loss (Note 10) 

As disclosed in Note 10, the Group’s expected credit 
loss provision amounts to $1.5 million. 

In accordance with AASB 9 Financial Instruments, the 
Group is required to prepare an estimation of expected 
credit losses as at 30 June 2022. 

We have determined this is a key audit matter due to 
the inherent subjectivity involved in the Group making 
forward looking judgements in relation to the recovery 
of credit risk exposures. We further note there is an 
increased risk in relation to the recoverability of trade 
receivables in the current year due to the unstable 
environment in the construction industry resulting from 
the impact of the COVID-19 pandemic amongst other 
factors and the insolvency risk that may impact the 
Group’s customers. 

Our procedures included, amongst others: 

•  Enquiring with management to obtain and document 
an understanding of the processes and controls 
related to the assessment of impairment, including 
the calculation of the recoverable amount;  

•  Obtaining management’s value-in-use calculations 

to: 

−  Test the mathematical accuracy;  

−  Evaluate management’s ability to perform 
accurate estimates by comparing historical 
forecasting to actual results;  

−  Test forecast cash inflows and outflows; and  

−  Assess the discount rates applied to forecast 

future cash flows;  

•  Evaluating the value in use model against the 

requirements of AASB 136, including consultation 
with our internal valuation experts;  

•  Performing sensitivity analysis on the significant 

inputs and assumptions made by management in 
preparing the calculation; and  

•  Assessing the adequacy of financial report and 

accounting policy disclosures. 

Our procedures included, amongst others: 

•  Assessing the Group’s expected credit loss model at 
year end with respect to the requirements of the 
accounting standard AASB 9; 

•  Reviewing management’s memorandum and 

assessing the reasonableness of key assumptions 
used in their expected credit loss model; 

•  Testing the trade receivables ageing profile 

prepared by the Group for the purpose of placing 
reliance on the trade receivables ageing profile for 
our analysis; 

• 

 Assessing the Group’s identification of credit 
impaired trade receivables including the basis 
adopted by the Group in the identification;  

•  Challenging the identified trade receivables by 

taking into account past payment trends, industry 

Grant Thornton Australia Limited

2 

(cid:3)

Acrow Annual Report 2022 
 
 
 
92

data and observable data specific to the relevant 
customers and to customers that are more than 90 
days past due; 

•  Assessing the Group’s disclosures in relation to 

trade receivables’ credit risk, by comparing these 
disclosures to the requirements of the accounting 
standards. 

Information other than the financial report and auditor’s report thereon 

The Directors are responsible for the other information. The other information comprises the information included 
in the Group’s annual report for the year ended 30 June 2022 but does not include the financial report and our 
auditor’s report thereon.  

Our opinion on the financial report does not cover the other information and we do not express any form of 
assurance conclusion thereon.  

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing 
so, consider whether the other information is materially inconsistent with the financial report or our knowledge 
obtained in the audit or otherwise appears to be materially misstated.  

If, based on the work we have performed, we conclude that there is a material misstatement of this other 
information, we are required to report that fact. We have nothing to report in this regard.  

Responsibilities of the Directors for the financial report  

The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair 
view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal 
control as the Directors determine is necessary to enable the preparation of the financial report that gives a true 
and fair view and is free from material misstatement, whether due to fraud or error.  

In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a 
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of 
accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic 
alternative but to do so.  

Auditor’s responsibilities for the audit of the financial report  

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from 
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. 
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance 
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements 
can arise from fraud or error and are considered material if, individually or in the aggregate, they could 
reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.  

A further description of our responsibilities for the audit of the financial report is located at the Auditing and 
Assurance Standards Board website at:  http://www.auasb.gov.au/auditors_responsibilities/ar1_2020.pdf.This 
description forms part of our auditor’s report.  

(cid:3)

Grant Thornton Australia Limited

3 

(cid:3)

Independent Auditor’s Report for the year ending 30 June 2022Acrow Annual Report 2022 
 
 
93

Report on the remuneration report 

Opinion on the remuneration report 

We have audited the Remuneration Report included in pages 23 to 48 of the Directors’ report for the year 
ended 30 June 2022.  

In our opinion, the Remuneration Report of Acrow Formwork and Construction Services Limited, for the year 
ended 30 June 2022 complies with section 300A of the Corporations Act 2001. 

Responsibilities 

The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report 
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on the 
Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.  

Grant Thornton Audit Pty Ltd 
Chartered Accountants 

N P Smietana  
Partner – Audit & Assurance 

Sydney, 27 September 2022 

Grant Thornton Australia Limited

4 

(cid:3)

Acrow Annual Report 2022 
 
 
 
 
 
 
 
 
 
 
94

Additional Information for Listed Entities (Shareholder Information)
Theshareholderinformationsetoutbelowwasapplicableasat16September2022(Reporting Date).

Substantial Holders 

Top Holders

PERENNIALVALUEMANAGEMENTLIMITED

KENECOPROPERTYPTYLTD

Holding Distribution 

Analysisofnumbersofequityholdersbysizeofholding:

Ordinary Shares

Holding Ranges

above0uptoandincluding1,000

above1,000uptoandincluding5,000

above5,000uptoandincluding10,000

above10,000uptoandincluding100,000

above100,000

Totals

Unlisted Options

Holding Ranges

above0uptoandincluding1,000

above1,000uptoandincluding5,000

above5,000uptoandincluding10,000

above10,000uptoandincluding100,000

above100,000

Totals

Securities

25,172,301

13,086,667

%

9.90%

5.25%

Holders

Total Units

% Issued 
Share Capital

1,519

10,6554

488

276

1,325,170

228,1436

1,109

43,451,198

303

208,238,841

0.04%

0.52%

0.89%

17.01%

81.53%

3,695

255,403,199

100.00%

Holders

Total Units

% Issued 
Share Capital

–

–

–

–

9

–

–

–

–

–

–

–

–

6,860,000

100%

10

6,860,000

100.00%

Shareholder Information for the year ending 30 June 2022Acrow Annual Report 202295

Performance Rights 

Holding Ranges

above0uptoandincluding1,000

above1,000uptoandincluding5,000

above5,000uptoandincluding10,000

above10,000uptoandincluding100,000

above100,000

Totals

Holders

Total Units

% Issued 
Share Capital

–

–

–

11

33

44

–

–

–

–

–

–

754,012

16,747,688

4.31%

95.69%

17,501,700

100.00%

Basedonaclosingpricepersecurityof$0.515,thereare1,505holderswithanunmarketableholdingrepresentinga
total92,583shares,amountingto0.04%ofIssuedCapital.

Voting Rights

FullyPaidOrdinaryShares–onashowofhandseverymemberpresentatameetinginpersonorbyproxyshallhave
onevoteanduponapolleachsharehaveonevote.

OptionsandPerformanceRights–donothavevotingrights.

Securities subject to Voluntary Escrow 

Therearenosecuritiesvoluntarilyescrowed.

Unlisted Securities

UnlistedSecuritiesinclude:6,860,000unlistedoptionsand17,501,700performancerights.

Therearenoholdersofmorethan20%ineithertheoptionsorperformancerightclasses.

On-Market Buy-Back

TheCompanyisnotcurrentlyconductinganon-marketbuy-back.

Acrow Annual Report 202296

Top Holders

Twenty Largest Quoted Equity Security Holders

Thenamesofthetwentylargestholdersofquotedequitysecuritiesarelistedbelow:

Position Holder Name

1

2

3

4

5

6

7

8

9

10

11

12

13

14

15

16

17

18

19

20

NATIONALNOMINEESLIMITED

HSBCCUSTODYNOMINEES(AUSTRALIA)LIMITED

KENECOPROPERTYPTYLTD

JPMORGANNOMINEESAUSTRALIAPTYLIMITED

EVERGREENPARTNERSNO4LP

CITICORPNOMINEESPTYLIMITED

BONDSTREETCUSTODIANSLIMITED

MARGARETANNAPROKOP

NETWEALTHINVESTMENTSLIMITED

MRPPROPERTYPTYLTD

MRANDREWHAROLDKENNARD&MRSPRUDENCEALICEKENNARD


JOSAMBAPTYLTD

BONDSTREETCUSTODIANSLIMITED

MARYVILLEPTYLTD

WHOOSHKANOMINEESPTYLTD

DRACKAPTYLTD

MALCOLM&JUNEROSSINVESTMENTSPTYLTD

11BELGRAVIAPTYLTD

MRTIMOTHYJOHNEAKIN

BRUNDEEINVESTMENTSPTYLTD

Holding

17,775,955

15,381,933

13,086,667

12,610,535

12,351,252

11,049,866

9,000,000

7,126,209

6,148,691

4,751,043

3,039,474

2,500,000

2,206,192

2,204,326

2,184,976

2,148,554

2,091,132

2,085,256

1,469,692

1,437,065

% IC

6.96%

6.02%

5.12%

4.94%

4.84%

4.33%

3.52%

2.79%

2.41%

1.86%

1.19%

0.98%

0.86%

0.86%

0.86%

0.84%

0.82%

0.82%

0.58%

0.56%

Total

Total issued capital 

Other Information:

130,648,818

51.15%

255,403,199

100.00%

Therearenoissuesofsecuritiesapprovedforthepurposesofitem7ofsection611oftheCorporationsAct2001(Cth)
thathavenotyetbeencompleted.

Nosecuritieswerepurchasedon-marketduringthereportingperiodunderorforthepurposesofanemployee
incentive scheme or to satisfy the entitlements of the holders of options or other rights to acquire securities granted 
underanemployeeincentivescheme.

Shareholder Information for the year ending 30 June 2022Acrow Annual Report 2022 
 
97

SHARE REGISTRY
Automic Group
Level5,126PhillipStreet
Sydney NSW 2000

AUDITOR
GrantThorntonAuditPtyLtd
Level17,383KentStreet
Sydney NSW Australia 2000

ASX CODE
ACF

ACN
124893465

COMPANY
AcrowFormworkandConstructionServicesLimited

BOARD OF DIRECTORS
Mr Peter Lancken AM|Non-ExecutiveChairman

Mr Steven Boland|ExecutiveDirector

Ms Laurie Lefcourt|Non-ExecutiveDirector(Chairofthe
AuditandRiskCommittee)

Mrs Melanie Allibon|Non-ExecutiveDirector(Chairof
theRemunerationandNominationCommittee)

Mr David Moffat|Non-ExecutiveDirector

CHIEF FINANCIAL OFFICER
MrAndrewCrowther

COMPANY SECRETARY
MrLeeTamplin

REGISTERED OFFICE
c/-AutomicGroup
Level5,126PhillipStreet
Sydney NSW 2000

Corporate Directory for the year ending 30 June 2022Acrow Annual Report 2022www.acrow.com.au

Sydney | Brisbane | Gold Coast | Adelaide | Hobart | Launceston |  
Melbourne | Perth 

Nelligen Bridge  
Replacement, NSW