2019
ANNUAL REPORT
CORPORATE DIRECTORY
OUR COMPANY
DIRECTORS
SHARE REGISTER
Computershare Investor Services
Pty Ltd
452 Johnston Street
Abbotsford, Victoria, 3067
Investor Enquiries 1300 850 505
ANNUAL GENERAL MEETING
Friday, 22 November 2019
at 11:00am
KPMG
Tower Two, Collins Square
727 Collins Street
Melbourne, Victoria, 3000
Date of publication: 21 August 2019
Maxwell J Findlay (Chairman)
Tony Spassopoulos
Melanie Allibon
Jean-Pierre JAM Buijtels
Terrence C Francis
Terence A Hebiton
COMPANY SECRETARY
Malcolm Ross
REGISTERED OFFICE
Suite B Level 1,
55 Southbank Boulevard
Southbank Vic 3006
Telephone (03) 9207 2500
Fax (03) 9207 2400
INTERNET ADDRESS
www.boomlogistics.com.au
CONTENTS
Corporate Directory
Operating and Financial Review
Chairman’s Report
Highlights
Managing Director’s Report
Company Performance
Our People & Systems
Our Health, Safety, Environment & Quality
Corporate Governance
Directors’ Report
Remuneration Report
Auditor’s Independence Declaration
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Audit Report to Members of Boom Logistics Limited
ASX Additional Information
ii
II
BOOM LOGISTICS ANNUAL REPORT 2019
Boom Logistics Limited (“Boom” or “the
Company”) and its controlled entities is
an Australian industrial services group
(“the Group”) that provides superior
crane logistics, labour and lifting
solutions for customers in the mining
and resources, wind, energy and utilities,
infrastructure, industrial maintenance
and telecommunications sectors.
At Boom, we deliver the full package
of engineering know-how, specialised
lifting equipment and multi-skilled
teams required to safely manage the
lifting of large scale and complex tasks
for infrastructure, construction and
shutdown maintenance customers.
The Company seeks to be
recognised by our customers,
employees, communities and
shareholders as the supplier of high-
value, reliable lifting solutions and labour
services without injury.
OUR PURPOSE
To safely and profitably grow our
business through the provision of
innovative customer lifting solutions and
specialised labour hire services in the
markets we serve to deliver returns and
value to our shareholders.
OUR VISION
To be recognised as the industry leader
in the provision of lifting services to the
Australian market.
OUR VALUES
The Boom values underpin and define
the way we do business.
• Customer Focus – everything begins
with the customer.
• Safety Always – continue our journey
towards zero harm.
• Developing our People –
commitment to our future.
• Teamwork – working together to
•
achieve our best.
Innovation – looking for new ways to
do things.
• Respect – for each other and all
stakeholders.
The Boom values are an
uncompromising foundation of our
organisation, guiding our decisions,
our behaviours and the way we do
business to maximise returns for our
shareholders.
ii
5
5
6
8
12
18
22
25
28
31
45
46
47
48
49
50
80
81
85
BOOM LOGISTICS ANNUAL REPORT 2019
400
760
permanent Boom
employees and over
casual personnel of which the
majority are engaged by readi
250
cranes in all sizes, from 5 tonne up to
750 tonne
120 travel towers, from
12 metres up to 70 metres
A fleet of elevated work platforms
and support transport
13 depots across
Australia
A database of over
10,000 people available
through readi to service our
customers’ labour requirements
DELIVER LIFTING
SOLUTIONS, WITH SCALE
AND PRECISION, EVERY
TIME. MANAGING SAFETY
AND COMPLEXITY WITH
CONFIDENCE – THAT’S
THE PROMISE WE MAKE
TO OUR CUSTOMERS
BOOM LOGISTICS ANNUAL REPORT 2019
1
1
BOOM LOGISTICS ANNUAL REPORT 2019 OUR VALUE PROPOSITION
As a large-scale lifting project specialist, we seek to deliver innovation for our customers,
build shareholder value and ensure safety excellence. We continue to build our leading
reputation in the market as a trusted lifting, construction and maintenance solutions
partner for large scale infrastructure.
Boom’s customer value proposition is based on total lifting solutions and specialised
labour services involving:
EQUIPMENT
• A comprehensive and diverse fleet aligned to customer requirements in mining
and resources, wind, energy, utilities, infrastructure, industrial maintenance and
telecommunications.
• Well maintained fleet with maintenance records and Key Performance Indicator
reporting for customers.
OPERATIONAL CAPABILITY
• Highly experienced and trained workforce of supervisors, crane operators, riggers
and travel tower operators.
• Operational resources and infrastructure to support customers in our core markets.
• Planned and configured services involving operators, cranes, transport, travel towers
and other assets to meet complex customer requirements.
• The readi labour hire business delivers an integrated labour solution to both existing
and new customers. It currently supplies support to key Boom contracts and
continues to focus on expanding its offering of multiple trades and skills to external
customers.
ENGINEERING EXPERTISE
• Pre-lift customer site survey and analysis.
• Detailed engineering lift studies to drive safety, efficiency and cost effectiveness.
• Project planning and project management.
• Wind farm construction including lifting, mechanical and electrical installation and
maintenance.
SAFETY & QUALITY SYSTEMS
• Cultural alignment with our customer base, with an uncompromising safety focus.
• AS/NZS ISO 4801:2001 certification and transition to AS/NZS ISO 9001:2015
•
achieved.
Investment to drive continuous improvement in our safety systems, processes and
organisation.
The Group’s distinctive and comprehensive value proposition provides a solid platform
for future growth to maximise returns to shareholders.
2
BOOM LOGISTICS ANNUAL REPORT 2019 BOOM’S CUSTOMER
VALUE PROPOSITION
IS BASED ON TOTAL
LIFTING SOLUTIONS
AND SPECIALISED
LABOUR SERVICES
BOOM LOGISTICS ANNUAL REPORT 2019
3
3
BOOM LOGISTICS ANNUAL REPORT 2019 TO BE RECOGNISED
AS THE INDUSTRY
LEADER IN THE
PROVISION OF LIFTING
SERVICES TO THE
AUSTRALIAN MARKET
44
BOOM LOGISTICS ANNUAL REPORT 2019
BOOM LOGISTICS ANNUAL REPORT 2019 OPERATING AND FINANCIAL REVIEW
CHAIRMAN’S REPORT
On behalf of the Board, I would like to present the Boom
Logistics Limited (“Boom”) annual report for the financial year
ended 30 June 2019 (“FY19”).
The 2019 financial year was one of significant consolidation
and restructuring for Boom as the leadership transitioned to
our new Managing Director and Chief Executive Officer, Tony
Spassopoulos at the end of Q1, FY19.
Boom delivered a statutory revenue result of $183m which led
to a net loss of $5.3m compared with a loss of $1.5 million in
FY18. The FY19 result was impacted by operating challenges
including a significant industrial relations dispute in NSW.
During FY19, a key capital management initiative to deliver value to shareholders was
the on-market buy back announced on 21 November 2018 to purchase and cancel
up to 10% of issued share capital over the next 12 months. I am pleased to report
the Company bought back 35.7m shares on-market and through a minimum holding
buyback equating to 7.5% of issued capital in the period to 30 June 2019. The Board
intends to continue with the on-market buy back following the release of FY19 results.
Boom successfully refinanced its loan facilities with an extended term and increased
debt capacity in January 2019 thereby improving Boom’s operational flexibility and ability
to execute further capital management initiatives in 2020. However, Boom remains
constrained under its loan facilities to paying dividends from net profits.
Boom continues to focus on improving return on capital through efficient capital
allocation. This was executed in FY19 by leasing a number of large cranes and
redeploying owned assets across the business to support growth. Older and under-
utilised cranes have been sold, thus reducing the average fleet age.
In our crane lifting business we are confident that contract wins in FY19 in the wind farm
sector and the renewal of long-standing contracts with key customers in mining maintenance
have positioned the crane business for improved volume and profitability in FY20.
The travel towers business was restructured during the year by expanding its sales team
to seize growth opportunities while reducing overhead through downsizing and closing
unprofitable depots and rationalising the travel towers fleet. The travel towers business is
now positioned to improve profitability and continue to support its core customers in the
mobile telecommunications and power sectors.
Our readi business has grown to become the main source of labour hire for Boom and is
now focused on growth through the supply of specialised labour to external customers.
The Board is delighted to welcome Melanie Allibon who has been appointed as an
independent Non-Executive Director. Ms. Allibon’s appointment reinforces our focus on
remuneration, industrial relations and safety, as well as enhancing our capability with
regards to human resources best practices. Ms. Allibon’s particular expertise in industrial
relations and human resources across the industrial services sector is expected to bring
extensive and valuable experience to Boom and enhance the Board’s overall mix of skills,
knowledge and capabilities.
Looking ahead, the business has completed considerable restructuring and consolidation
initiatives in FY19 and we expect this will underpin an improved operating result in FY20.
Finally, I would like to thank my fellow directors, together with our hard-working team,
led by Tony Spassopoulos. We look forward to overseeing their efforts to ensure Boom
continues on this path of progress and success.
Maxwell J Findlay
Chairman
5
BOOM LOGISTICS ANNUAL REPORT 2019
OPERATING AND FINANCIAL REVIEW
HIGHLIGHTS
HEALTH, SAFETY,
QUALITY &
ENVIRONMENT
FINANCIAL &
OPERATIONS
MARKETS &
GROWTH
PEOPLE & SYSTEMS
6
n Reported a Total Recordable Injury Frequency Rate (TRIFR) of 8.6 at the end of the year and
over 3.2 million labour hours worked without a Lost Time Injury (LTI).
n Continued to deploy the three-year HSEQ Strategic Plan with focus on improving lifting
operations, verification of competency, training planning, assurance, induction and
transport activities.
n Maintained certification to AS/NZS 4801:2001, AS/NZS ISO 9001:2015, OHSAS 18001:2007.
Compliance with environmental management obligations continued with success.
n Extended our values to include innovation and respect, with an unwavering focus on safety,
our people, our customers and teamwork.
n Share buy-back program commenced. 35.7 million shares (7.5% of share capital) purchased
and cancelled in FY19.
n Delivered improved free cash flow of $8.8 million up from $8.4 million in FY18.
n Net debt reduced to $36.6 million (30 June 2018: $37.3 million).
n New long term finance facilities negotiated with increased debt capacity, reduced funding
costs and increased tenure with banks to January 2022.
n Reported revenue of $182.7 million (FY18: $183.1 million).
n Trading EBIT of $2.8 million (FY18: $2.9 million).
n Net loss after tax $5.3 million (FY18: loss of $1.5 million).
n FY19 results significantly impacted by industrial dispute in NSW.
n Strategic review of the travel towers business completed which effectively positions the
business to deliver improved returns in FY20 from a lower overhead base and rationalised
operating fleet and expanded sales team.
n The operating environment remained solid in each of the Group’s key industry sectors.
n Mining and Resources revenue was down $12.7 million on FY18 due to industrial action in
the Hunter Valley and non-recurrence of project work at BHP Olympic Dam. The business
renewed key maintenance contracts with BMA, Yancoal, Alcoa and Newmont Boddington
Gold. Demand from resources customers in Central Queensland has remained robust.
n Wind, Energy and Utilities successfully grew revenue by $8.3 million in FY19, as the wind
farm market remained strong and the pipeline continued to grow. Equipment delivered strong
utilisation and Boom was involved in turbine maintenance on four of Australia’s largest gas
turbine power stations.
n Infrastructure revenue was similar to FY18 however the sector presents opportunity buoyed
by major infrastructure projects in Melbourne in FY20.
n Industrial Maintenance delivered modest growth in revenue of $1.6 million. The Group is
focused on supplying readi specialised labour hire across its customer base, building on the
ongoing provision of labour to the oil and gas sector in Bass Strait.
n Telecommunications revenue increased by $3.1 million in FY19 securing key contracts with
tier two suppliers.
n 80% of Boom’s permanent workforce directly interfaces with or provides a service to customers
including operators, supervisors, safety professionals, engineers and sales personnel.
n The total number of Boom employees was 1187 at 30 June 2019.
n Boom increased its flexible workforce and as at 30 June 2019, has over 760 casual and fixed
term employees. The majority of these employees are engaged through readi.
n The business continued to invest in its people to deliver efficiencies and develop leadership
across the organization, through internal and external training and development activities.
n Boom is delivering a Certificate IV in Frontline Leadership and Management course to
90 employees.
BOOM LOGISTICS ANNUAL REPORT 2019 BOOM CONTINUES TO
EXPAND INTO NEW HIGH
GROWTH MARKETS,
WITH REVENUE
FROM WIND, ENERGY,
INFRASTRUCTURE AND
TELECOMMUNICATIONS
SECTORS
BOOM LOGISTICS ANNUAL REPORT 2019
7
7
BOOM LOGISTICS ANNUAL REPORT 2019 OPERATING AND FINANCIAL REVIEW
MANAGING DIRECTOR’S REPORT
TRAVEL TOWERS
The travel towers business recorded
revenue of $24.9 million in FY19,
improving by 24% on last year. The
large travel towers were put to work
on the 5G network rollout for our
telecommunications customers and
generated $13 million for FY19. With
major contracts in place, the 5G roll
out is expected to continue throughout
FY20. As previously announced, Boom
undertook a strategic review of the
travel towers business during the year.
As a result, several depots have been
restructured to reduce overhead costs
and fifty-five small under-utilised
and obsolete travel tower assets have
been sold.
READI
Our readi business continued to fulfil its
role as a major labour supplier for Boom’s
customers during shutdowns. The focus
is now on securing new external revenue
through the Boom customer network in
the oil and gas, mining, construction and
infrastructure sectors. Direct labour hire
revenue from Boom and readi contracts
was $27.1 million for FY19, representing
12% growth over FY18. We see capacity
tightening in the labour market and readi
is well placed to supply customers with
specialised labour hire, which is expected
to provide a profitable non-capital revenue
stream for Boom in FY20.
Throughout the year we continued
to invest in our people. Key initiatives
undertaken include the commencement
of a leadership training program for our
frontline employees and managers.
Progress is being made on a youth and
apprenticeship training program for
riggers and operators, with Queensland
to commence by the end of 2019. This
new program is aiming to attract the
“leaders of tomorrow” who can grow in
the business and forge a career path in
our industry.
as some mine sites have now opted for
multiple supplier arrangements to ensure
continuity of crane services supply.
The crane services revenue growth
was solid in Central Queensland, a
14% increase on last year. Growth
was underpinned by increased
mining maintenance works with our
key contracted customers at BMA,
Coronado, Glencore and Anglo Coal.
Boom continued to build scale and scope
around its existing depot infrastructure
from major contractors in the region such
as Downer, Thiess and Hastings Deering.
In South Australia, a new EBA at Olympic
Dam was agreed for the next three years,
which is aligned with the current contract
with BHP. In Western Australia, we
renewed major contracts with Alcoa and
Newmont Boddington Gold for a further
three years and five years, respectively.
PROJECTS
Boom Projects continued to expand
into new, high-growth markets, with
revenue from the wind farm, energy and
infrastructure sectors contributing $35.1m
revenue in FY19, a 55% increase on
FY18. We completed the Mt Gellibrand
wind farm project during the year and
were successful in securing two important
contracts with GE Coopers Gap and
Goldwind Cattle Hill. The value of these
new projects is $30 million revenue over
FY19 and FY20, with work expected
to be completed on both projects in
December 2019.
Our fleet of heavy lift large mobile cranes
are also pursuing bridge, rail and civil
infrastructure works, a sector with high
growth prospects in FY20.
Travel Towers
14%
$25m
Labour Hire
15%
$27m
FY19
Projects
19%
$35m
Crane Services
52%
$96m
The last 12 months can be best
described as a year of establishing new
foundations to deliver sustainable profit
growth and returns to shareholders. We
have positioned our business for growth
in the mining resources sector, wind
farm and large-scale infrastructure and
construction projects. We are working
towards expanding the business into new
markets, adding new services and we
continue to build our leading reputation
as a trusted lifting solutions partner.
During the year, Boom achieved two
years and over 3.2 million working hours,
without a Lost Time Injury (LTI) and a Total
Recordable Injury Frequency Rate (TRIFR)
of 8.6. Our goal is to lead the industry
on safety performance. Safety is always
our priority at Boom, as we continue our
journey towards zero harm.
The 2019 financial results were below
expectations. Boom delivered a trading
EBITDA of $20.1 million and trading
EBIT of $2.8 million in FY19. The NSW
industrial action impacted these results
by $4.5 million.
CRANE SERVICES
Crane services revenue of $95.6m
was 18% below last year, impacted by
industrial action in NSW in FY19 and
the non-recurrence of a major project at
Olympic Dam in FY18, which together
represented $20m revenue.
The industrial action in NSW was
resolved by agreeing to significant labour
cost increases. Boom is now rebuilding
its presence in the Hunter Valley region
after closing the Newcastle depot
which became an unviable business
with the higher cost of labour and the
Singleton depot has been restructured.
Redundancy and restructuring costs at
both depots have been incurred. We are
pursuing new customers in the region
8
BOOM LOGISTICS ANNUAL REPORT 2019 OUTLOOK
Boom is in a good position for FY20
and making positive progress towards
diversifying its business with new value-
added services and targeting new growth
markets.
Achieving profitable revenue growth,
providing value-added services to
customers and delivering returns to
shareholders will remain a priority for the
business.
Market conditions in the resources sector
remain solid, which are likely to drive
increasing maintenance and support
higher levels of activity. We remain
focused on sustainable growth in the
mining sector and supplying new services
to our customers such as engineering
solutions, maintenance programs and
specialised labour skills.
With the strong pipeline of wind farm
projects, growing infrastructure sector
work and expansion of the 5G rollout
for telecommunications clients, the
outlook for FY20 is positive. The focus
is on improving labour productivity and
margins, increasing asset utilisation and
limiting capital expenditure to achieve a
solid return on capital for shareholders.
I would like to take this opportunity to
thank all our customers, suppliers, debt
providers and shareholders who have
supported us this past financial year.
In conclusion, I extend my thanks to our
dedicated employees for their continued
focus on safety and our customers. We
have loyal and passionate people in our
company who are committed to Boom’s
success.
Tony Spassopoulos
Managing Director
ACHIEVING PROFITABLE
REVENUE GROWTH
PROVIDING VALUE
ADDED SERVICES
TO CUSTOMERS AND
DELIVERING RETURNS
TO SHAREHOLDERS
WILL REMAIN A
PRIORITY FOR THE
BUSINESS
BOOM LOGISTICS ANNUAL REPORT 2019
9
9
BOOM LOGISTICS ANNUAL REPORT 2019 180
160
140
120
100
80
60
40
20
0
TIP HEIGHT 180M
HUB HEIGHT 115M
A380
WINGSPAN
79.5M
2000
2010
2014
2018
SUCCESSFUL IN
SECURING MAJOR
CONTRACTS WITH A
$415 MILLION WIND
FARM SALES PIPELINE
TO TENDER OVER THE
NEXT 3 YEARS
10
10
BOOM LOGISTICS ANNUAL REPORT 2019
BOOM LOGISTICS ANNUAL REPORT 2019 GE RENEWABLES: A STRONG PARTNERSHIP CREATING
VALUE IN QUEENSLAND
Coopers Gap Wind Farm will be one
of Australia’s largest wind farms upon
completion. It is a project that symbolises
our spirit of endeavour. The Coopers
Gap Wind Farm will have a capacity of
453 MW and produce around 1,510,000
MWh of renewable energy, powering
approximately 264,000 average
Australian homes.
Coopers Gap Wind Farm is 250 km north-
west of Brisbane near Cooranga North,
between Dalby and Kingaroy. The site
is located on land that is mainly used for
cattle grazing and other farming activities.
Boom was awarded the contract to
undertake the lifting, mechanical and
electrical installation of 56 wind turbine
generators (WTGs) on the Coopers Gap
wind farm. Our work is scheduled for
completion at the end 2019.
Boom delivered a Liebherr LG1750 tonne
mobile crane for this project to perform
the major lifts which are up to 115 metres
high. In addition to the main crane, this
project utilises five other mobile cranes on
site from the Boom fleet, including a 450
tonne Grove GMK7450 and has a project
team of 40 people.
There were unique challenges to
overcome with fluctuating weather
patterns and high wind speeds,
challenging terrain, and the wide
geographic spread of the towers.
Despite these project complexities, Boom
continues to deliver on time and on budget,
with a consistent focus on health and
safety, delivering best-in-class engineering
skills and advice, and superior wind farm
construction experience. We are proud to
showcase our capabilities and contribute to
local industry, communities and economies
in Queensland.
BOOM LOGISTICS ANNUAL REPORT 2019
11
11
BOOM LOGISTICS ANNUAL REPORT 2019 OPERATING AND FINANCIAL REVIEW
COMPANY PERFORMANCE
OVERVIEW
The Group reported a net loss after tax of $5.3 million for the year ended 30 June 2019
million (FY18: net loss of $1.5 million). As noted in the Managing Director’s Report, the
Group’s underlying trading EBIT performance was similar to the prior year.
The year was significantly impacted by an industrial dispute in the first half of the year,
and project delays in the second half of the year. The prior year included a significant
project at BHP Olympic Dam that did not recur.
Boom’s flexible asset rental model allows the Group access to new capital assets to win
new contracts and deliver growth with low capital requirements. The Group will continue
to grow its low capital specialised labour hire business, readi, targeting infrastructure
markets in the capital cities as well as expanding the successful partnership it has
developed in the oil and gas industry.
Boom’s continued focus on capital discipline will allow both growth and capital
management initiatives to continue in FY20 as the Company is focused on delivering
returns to shareholders.
INCOME STATEMENT
Revenue from Services
Operating Costs
Trading EBITDA
Depreciation and Amortisation
Trading EBIT
Net Borrowing Costs
Trading Net Loss After Tax
Non-Trading Income
Non-Trading Expenses
(Loss)/Profit on Sale of Assets
Impairments to Property, Plant
and Equipment
Net Loss After Tax
Statutory EBIT
Statutory EBITDA
FINANCIAL PERFORMANCE
30-Jun-19
$’m
30-Jun-18
$’m
Change
%
-0.2%
0.4%
-4.7%
-4.9%
-3.4%
182.7
(162.6)
20.1
(17.3)
2.8
(3.7)
(0.9)
1.6
(2.0)
(2.0)
(2.0)
(5.3)
(1.6)
15.7
183.1
(162.0)
21.1
(18.2)
2.9
(4.0)
(1.1)
0.0
(0.6)
0.1
0.0
(1.5)
2.4
20.6
Revenue
Reported revenue of $182.7 million was in line with the prior year, with Boom
delivering revenue growth in the wind, energy and utilities, industrial maintenance
and telecommunications sectors, and only a slight decrease in revenue from the
infrastructure and construction sector, however this growth was largely offset by the
adverse impact of the industrial action in the mining and resources sector.
Earnings
Statutory earnings before interest expense, tax, depreciation and amortisation (EBITDA)
was $15.7 million (FY18: $20.6 million) whilst statutory earnings before interest expense
and tax (EBIT) was a loss of $1.6 million (FY18: profit of $2.4 million).
In terms of trading EBIT, the Group reported $2.8 million in trading EBIT for FY19, only
marginally down on the FY18 result of $2.9 million.
On behalf of the Board, I present a
review of Boom’s performance for the
year ended 30 June 2019.
Boom is focused on sustainable growth
in each of its key markets, that is, mining
and resources, wind energy and utilities,
infrastructure and construction, industrial
maintenance and telecommunications.
The review sets out the Group’s
operational performance for the 2019
financial year, together with a review of
operations, an update on the operating
environment and outlook for each of
Boom’s key industry sectors.
The review should be read in conjunction
with the financial statements, which are
presented on pages 27 to 84 of this
annual report.
Tim Rogers
Chief Financial Officer
12
BOOM LOGISTICS ANNUAL REPORT 2019
CONTINUE TO
BUILD OUR LEADING
REPUTATION IN
THE MARKET AS A
TRUSTED LIFTING,
CONSTRUCTION
AND MAINTENANCE
SOLUTIONS PARTNER
BOOM LOGISTICS ANNUAL REPORT 2019
13
13
BOOM LOGISTICS ANNUAL REPORT 2019 OPERATING AND FINANCIAL REVIEW
COMPANY PERFORMANCE CONT.
Trading EBIT is before recognising
the following non-trading income and
expenses:
• Non-trading income of $1.6 million
relating to the re-imbursement of
legal costs incurred in relation to the
18m Glove and Barrier legal claim.
The Group was awarded $2.7 million
in FY17 in settlement of the claim
with the related legal expenses being
awarded by the court in FY19.
• Non-trading expenses of $2.0 million
relating to:
– $0.7m of redundancy costs
incurred in NSW as a result of
the required restructuring of the
business post-industrial action in
the second quarter of the year;
– $0.4m of redundancy and other
costs incurred in the restructure
of the travel tower business
to improve profitability of the
business by reducing depot
overheads and operating fleet
costs;
– $0.2m of legal costs incurred
in the now closed 18m Glove
and Barrier matter with a total
of $1.6m of fees expended over
the course of the case being
reimbursed; and
– $0.7m of remuneration payable
in relation the retirement of the
former Managing Director.
• Loss on sale of assets of $2.0 million
from the sale of 55 underperforming,
obsolete smaller travel tower assets.
Assets were sold in the second half of
the year at auction values which will
enable the business to operate from
smaller depot locations with reduced
ongoing maintenance commitments
and lower operating costs going
forward.
Impairment to damaged crane of $1.0
million as a result of damage incurred
to the boom of a 500t crane in the
first half of the year. The crane has
been repaired and returned to the
fleet at the start of FY20.
Impairment of $1.0 million to the
owned depot property in Newman.
•
•
FY19 REVIEW OF OPERATIONS
Boom’s FY19 results were impacted by
the following significant events:
Impact of industrial action
•
Industrial action in NSW in the second
quarter of FY19 impacted revenues
and profitability.
• The Newcastle crane business
the higher labour cost was not
sustainable for the business.
• The impact of the strike continued
in the Hunter Valley through the
third quarter with customers
moving to dual suppliers. Whilst the
fourth quarter showed improved
performance, one major customer
has not resumed service which will
have an on-going impact.
• The impact of the industrial action to
the Hunter Valley business for the full
year was a circa $10 million decline in
revenue and $4.5 million loss in EBIT.
Project Delays
During FY19 the Group commenced
two wind farm construction projects.
Both projects experienced delays to their
expected start dates due to a number
of site access and weather delays.
Therefore, the FY19 projects did not
deliver to expectations, with a greater
than anticipated portion of the project
activity to be completed in FY20.
Travel Towers Business
Restructure
The travel towers business has
undergone significant change and
improvement during the FY19 year. The
travel towers business was restructured
at the beginning of FY19. Its management
is now able to focus on travel tower
customers and growing in the markets
that the travel towers business currently
services.
A strategic review was successfully
completed during the second half of
the year and the business underwent a
comprehensive restructure, positioning
it for improved profitability in FY20. In
particular, the travel tower operating fleet
was rationalised and depot overheads
reduced through:
• Closure of the Tasmanian depot with
Tasmanian based operations now
managed through the Melbourne
depot;
• Reduction of depot costs by moving
to a smaller depot site in Adelaide and
co-locating its depot with the crane
business in Perth;
• Rationalisation of non-customer
facing roles with greater use of shared
services across the business to drive
efficiencies;
• Reduction of maintenance and other
operating costs resulting from a
smaller fleet; and
• Greater use of outsourced services to
The travel towers business is now
well placed to meet the demands of
its customers. FY20 is expected to
deliver improved profitability in the
telecommunications sector, as the 5G
network roll out program continues, and
with growth in other key customers in the
power and utilities sector.
Cash Flow
Cash flow strengthened during the year
delivering $13.2 million of operating cash
flow, up $1.8 million on the prior year.
Cash flow from investing activities was
positively impacted by the sale of travel
towers during the second half of the
year as well as the sale of a number of
older, mostly small capacity crane assets.
The asset sales realised $6.3 million of
proceeds, with a further $1.2 million of
proceeds to be received post year end.
Capital expenditure during the year
included investment in smaller capacity
mobile crane assets to service contracts,
transport assets to support the
mobilisation of assets brought in under
the Group’s flexible asset rental model,
and on-going expenditure on routine ten-
year inspections.
The resulting free cash flow of $8.8
million (FY18: $8.4 million) generated
during the year enabled the Company to
fund the share buy-back program which
commenced during the year.
Capital Management
During the year the Group commenced
capital management initiatives
demonstrating the Company’s
commitment to disciplined capital
allocation with a focus on driving
shareholder returns.
During FY19 the Company bought back a
total of 35.7 million shares or 7.5% of the
share capital:
• 1.1 million shares were acquired
through a minimum holding buy-back
program; and
• 34.6 million shares were acquired
through an on-market buy-back
program.
The $6.0 million cost of the share buy
backs completed in the year was funded
from free cash flow. A further 11.4 million
shares are available to buy back under the
current on market buy-back program.
was closed with jobs lost because
complete routine maintenance.
14
BOOM LOGISTICS ANNUAL REPORT 2019 BOOM’S SERVICE DELIVERY
MODEL INCLUDES OPERATORS
CRANES, TRAVEL TOWERS,
SPECIALISED LABOUR,
AND OTHER ASSETS TO
MEET COMPLEX CUSTOMER
REQUIREMENTS
BOOM LOGISTICS ANNUAL REPORT 2019
15
15
BOOM LOGISTICS ANNUAL REPORT 2019 OPERATING AND FINANCIAL REVIEW
COMPANY PERFORMANCE CONT.
Balance Sheet
The balance sheet further strengthened
during the year with net current assets
increasing to $15.2 million (FY18: $14.1
million) and net debt reducing to $36.6
million (FY18: $37.3 million).
Return on Capital Employed (trading
EBIT/ Capital Employed) at 1.5% (FY18:
1.6%) was marginally down on the prior
year. The Group will continue to focus on
improving returns on capital employed
through FY20 and will continue to strictly
manage capital.
The Group’s model to rent larger assets
allows the business to bring in new crane
assets to match revenue opportunities
as they arise. The asset rental model
minimises the requirement for capital
expenditure, protects free cash flow
and allows the Group to maintain a
conservatively geared balance sheet
whilst maintaining the capability to tender
for new profitable work.
Debt Management and
Financing
During the year the Group extended
its finance facilities with its lenders on
improved terms. The new facilities provide
additional flexibility with an extended term,
increased debt capacity to support growth
and reduced funding costs.
The new finance package comprises:
• $20 million, three-year syndicated
loan facility expiring January 2022;
• $20 million, three-year trade
receivables facility expiring January
2022; and
• $35 million asset finance facility,
including new finance and operating
lease facilities with the previous
amortising loan facility rolled over on
new terms. This facility amortises to
a $5 million residual balance at
August 2021.
Operating Environment
The operating environment remained
strong in each of the Group’s key industry
sectors.
Mining and Resources
Revenue was down $12.7 million on
FY18 in this sector due mainly to the
impact of the NSW industrial action in
the current year and the non-repeat of
a major shut-down at Olympic Dam in
the prior year that contributed circa $10
million revenue in FY18.
In light of the changes to the market and
customer practices in NSW, the Group
relocated a number of assets from the
Hunter Valley region to the Cattle Hill
wind farm and the growing Queensland
region to improve asset utilisation and
profitability.
Demand from resources customers in
Queensland was robust during the period
and delivered significant growth to the
Group.
In Western Australia and South Australia
shutdown and general maintenance
activity was steady throughout the year
underpinned by long-standing customers
engaging Boom at BHP Olympic Dam,
Alcoa and Newmont Boddington
Gold sites.
The Group is pleased to report that it
renewed key maintenance contracts with
BMA, Yancoal, Newmont Boddington
Gold and Alcoa in the period.
Outlook
The Group expects resources revenue
to remain solid in FY20 and is pursuing
further growth in the following regions:
• Hunter Valley: targeting new
customers in the region who may
be seeking a second supplier or are
seeking to change their incumbent
supplier as these suppliers are
required to renegotiate their labour
agreements over the coming months;
• Central Queensland: targeting
new customers and mine sites
in the Moranbah region to further
strengthen and expand the Group’s
footprint in the region; and
• North West: the new mine
construction projects in the North
West are providing an opportunity
to re-enter the North West market
during FY20.
Wind, Energy and Utilities
Boom successfully grew revenue by $8.3
million in FY19 in this sector with key
highlights as follows:
• Boom is currently carrying out
contracts for construction of two
wind farms that will continue through
the first half of FY20.
• The Group successfully performed
maintenance work at ten windfarms
during FY19;
• Continued involvement in turbine
maintenance on four of Australia’s
largest gas turbine power stations;
• Completion of several projects to
string high voltage cables from wind
farm towers to electrical substations;
and
• Supply of cranes and travel towers for
routine maintenance works to utilities
businesses.
Outlook
The wind farm market remains strong
and will continue to grow in FY20. Boom
maintains a strong pipeline of wind farm
construction projects for FY20 and is
targeting to win an additional wind farm
project in the second half of the year. Boom
is expanding its service capacity in wind
farm maintenance with a further rented 750
tonne mobile crane asset to service new
and current customers in South Australia
and Victoria. The travel towers business is
working on opportunities to leverage our
relationships to win projects which connect
wind farms to electrical sub-stations.
Infrastructure and Construction
Revenue in this sector was slightly down
$0.4 million on FY18. Boom derives its
revenue in this sector from higher value
niche projects such as bridge builds and
rail works.
Outlook
Boom expects this sector to remain
strong in FY20, buoyed by major
infrastructure projects, and is targeting
the Melbourne market as a new, growth
opportunity for FY20.
Industrial Maintenance
This sector delivered slight growth in
revenue of $1.6 million for FY19. The
Group completed a large shutdown
project in the Latrobe Valley in the
first half of the year. This project offset
the foregone on-going revenue from
a customer of the Newcastle crane
business, which closed during the year.
Outlook
The Group is contracted to supply
specialist labour to the oil and gas platforms
on Bass Strait. Boom’s specialised
labour hire business, readi, supplies the
labour to Boom to fulfil the contract. This
arrangement has been successful over
the last two years and the Group is now
focussed on expanding this service offering
to other customers in the industry.
Telecommunications
Revenue derived from this sector
increased by $3.1 million in FY19. The
telecommunications market is mainly
serviced by the Group’s travel tower
business.
Outlook
The Group has contracts with the big
‘tier two’ contractors and expects the
telecommunications market to continue
growing as the 5G roll-out program
accelerates in FY20.
16
BOOM LOGISTICS ANNUAL REPORT 2019 DEMAND FROM
OUR RESOURCE
AND RENEWABLE
CUSTOMERS IS
EXPECTED TO
REMAIN STRONG
BOOM LOGISTICS ANNUAL REPORT 2019
17
17
BOOM LOGISTICS ANNUAL REPORT 2019 OUR PEOPLE & SYSTEMS
By improving flexible working
arrangements and building the readi
business, Boom is able to deliver on
customer expectations to provide skilled
and qualified people to perform work
safely and professionally as required by
the customer.
Our workforce is well trained and on-
boarded to ensure all employees work
in a safe, professional manner to the
standards and expectations of Boom and
its customers.
Boom’s managers work closely with
our employees to regularly identify
areas where workplace efficiencies and
improvements can be made.
In the coming financial year, the business
will continue to invest in its people to
deliver efficiencies and develop leadership
across the business. This will be achieved
through formal internal and external
training and development initiatives.
INDIGENOUS PROGRAM
We recognise the traditional rights of
Indigenous peoples and acknowledge
their right to maintain their cultures,
identities, traditions and customs.
Boom will continue to support
communities and its customers in
developing Indigenous Programs in
remote locations of Australia. Boom’s
National Indigenous Employment
Framework provides a basis for localised
strategies to generate work opportunities
and support indigenous communities.
TRAINING & DEVELOPMENT
Throughout the year, Boom engaged
an external training provider to deliver
a Certificate IV in Leadership and
Management to 90 employees across the
business. The program provides practical
skills to develop strong and impactful
leaders.
The e-Learning Centre continues to
support our people and improvement
of capability within the Company.
Boom’s on-line induction, Life Saving
Rules and compliance training through
the e-Learning Centre provide a
comprehensive platform for on-boarding.
Together with the New Employee Survey
conducted within the first three months of
employment, Boom ensures employees
are given every opportunity to succeed
and provide candid feedback to enhance
their journey.
BOOM CONTINUES
TO INVEST IN OUR
PEOPLE TO DELIVER
EFFICIENCIES AND
DEVELOP LEADERSHIP
ACROSS THE BUSINESS
A vital component of how we drive
responsible growth is ensuring that
Boom is a great and safe place to work.
We deliver on this commitment by
recognising and rewarding performance,
ensuring an inclusive and safe workplace,
creating opportunities for our employees
to develop and support our employees
so they continue to thrive.
We recognise that our people are critical
to our success. We don’t believe in taking
short-cuts or putting business before our
people’s safety.
HIGHLIGHTS
• Boom continues to invest in our
business leaders to ensure they
effectively manage their people to
realise the Company’s full potential.
• Boom continues to invest in training
and development for its operational
staff to ensure operating tickets are
maintained, safety standards are
upheld, customer site inductions
are current, and verification of
competency is undertaken to meet
the needs of our customers.
• Boom is continually focussing on
sustainable labour models that
increase workplace flexibilities and
efficiencies resulting in a positive
impact on profitability and the security
of employment.
readi is developing robust systems to
support the recruitment, on-boarding
and management of our people
engaged in our specialised labour
supply business.
•
• Boom received over 70 customer
commendations for the quality of our
people and our work.
OVERVIEW
Boom’s workforce includes over 400
permanent employees across a range
of disciplines as at 30 June 2019.
The majority of Boom’s permanent
workforce directly interfaces with,
or provides a service to, customers
including: operators, supervisors, safety
professionals, engineers and sales
employees. The remaining permanent
workforce comprises management and
functional support.
At 30 June 2019, the total combined
number of Boom employees was
1187. Boom had over 760 casual and
fixed-term employees. The majority of
these employees are engaged through
readi, Boom’s specialised labour supply
business.
18
BOOM LOGISTICS ANNUAL REPORT 2019 BOOM LOGISTICS ANNUAL REPORT 2019
19
19
BOOM LOGISTICS ANNUAL REPORT 2019 CELEBRATING STRONG LOCAL
RELATIONSHIPS: NEW CRANE NAMED
AFTER THE GHUNGALOU NATION
20
20
BOOM LOGISTICS ANNUAL REPORT 2019
BOOM LOGISTICS ANNUAL REPORT 2019 GHUNGALOU NATION PEOPLE
Boom is proud to count two Ghungalou
men on the local Blackwater team.
The team were delighted to host a
traditional welcome and smoking
ceremony for the naming of the newest
crane to arrive in their fleet. The crane
is a 300-tonne capacity all-terrain crane
and is the biggest crane based in Central
Queensland and is ready to undertake
the very biggest of lifting tasks.
The idea to name the crane was hatched
through discussions with the local
indigenous population to name it after
the Ghungalou Nation. Boom worked
closely with the Ghungalou Aboriginal
Corporation and was granted permission
to name and decorate the crane with
some very special artwork, the totem of
a rock wallaby that represents the men of
the tribe who traditionally travel to work.
The Ghungalou people own the area
bound by the Dawson Rover in the
East, the Comet River in the West, the
Mackenzie River in the North and Bigge
Range to the South. This is the land and
its traditional owners who Boom want
to honour and pay tribute through the
naming of the crane.
This event was an important symbol
that affirms our commitment to the
Ghungalou Nation people, who are the
traditional owners of the land in which we
are fortunate to work.
21
BOOM LOGISTICS ANNUAL REPORT 2019 OUR HEALTH, SAFETY, ENVIRONMENT & QUALITY
Personal Commitment
All operational managers commit to a
range of consultative and interactive
activities which reinforce their personal
commitment and Boom’s corporate
commitment to Health and Safety. Key
metrics are measured and recorded in the
corporate HSEQ management database
and included in the monthly HSEQ
Report to the Board.
Measurable activities include:
• Safe Act Observations and Safety
Interactions which are an informal risk
management and assurance activity
which generates positive safety-
related discussions with employees in
the field;
• HSEQ Internal Audits. These audits
include consultation and discussion
with employees; and
Involvement in consultative meetings
(such as Safety Committees),
delivering toolbox talks, delivering pre-
start meetings.
•
Training
Boom’s operational training program
contains a significant safety leadership
element for frontline supervisory
personnel and management that works
to embed good workplace safety as
an operational discipline. The training
emphasizes the importance of sustained
and visible leadership through employee
engagement and safety interactions.
HIGHLIGHTS
• Boom reported a Total Recordable
Injury Frequency Rate (TRIFR) of 8.6
at the end of the financial year.
• The Leadership Program described
in the Training and Development
section of this report also builds
on the principles behind the
Safety Interactions undertaken by
management in recent years and
help leaders with their day to day
responsibilities and promotes the
value of visible leadership.
• Boom maintained AS/NZS
4801:2001, OHSAS 18001:2007 and
AS/NZS ISO 9001:2015 Certifications.
Boom is actively pursuing transition
to the new international Safety
Standard ISO 45001. Compliance
with environmental management
obligations has also continued.
SAFETY LEADERSHIP STRUCTURE
At Boom, we take a four-tiered approach
to safety leadership.
Health, Safety, Environment &
Quality (HSEQ) Committee
The HSEQ Committee, a sub-committee
of the Board, meets quarterly and
considers all aspects of Boom’s
safety environment. A summary of the
committee’s responsibilities is set out in
the Corporate Governance Statement.
Safety Leadership Team (SLT)
The Safety Leadership Team is chaired by
Boom’s CEO and Managing Director and
includes the General Manager HSEQ,
General Managers from each business
unit and the HSEQ leadership team.
The SLT prioritises and monitors
our safety environment and safety
improvement activities. The SLT is
supported by our team of safety
professionals that operate nationally.
CULTURAL ALIGNMENT
WITH OUR CUSTOMER
BASE, WITH AN
UNCOMPROMISING
SAFETY FOCUS
22
BOOM LOGISTICS ANNUAL REPORT 2019 BOOM LOGISTICS ANNUAL REPORT 2019
23
23
BOOM LOGISTICS ANNUAL REPORT 2019 OUR HEALTH, SAFETY, ENVIRONMENT & QUALITY CONT.
ENVIRONMENT
Boom continues to meet its community
expectations and legal obligations in
relation to environmental management.
Boom complies with the National
Greenhouse and Energy Reporting
Act 2007.
• Boom Environmental procedures
are mostly directed at waste
management. Disposal of waste oil,
batteries and tyres is by licensed
disposal agents.
• Boom has procedures and
equipment to manage runoff and
spills. Onsite work is conducted in
accordance with client procedures
and regulations.
• Energy usage minimisation initiatives
are in place.
• The current 3-year HSEQ Strategic
Plan includes a review to ensure
Boom meets the expectations of
ISO14001, but there is currently no
plan to be certified to this standard.
QUALITY
The Company has continued Certification
to AS/NZS ISO 9001:2015.
OUR SAFETY GOALS
Boom’s Health, Safety, Environment &
Quality (HSEQ) goals underpin our
vision to:
• Exceed client and other stakeholders’
HSEQ expectations by consistently
providing benchmarked high quality
and incident free services;
– Boom’s internal audit processes
ensure a robust examination
of performance and practice.
Internal audits by a range of
operational managers support
a sharing of insights across the
business. Audits are monitored
and reported;
– Safety incidents are investigated
by an operational manager.
Actions arising from each
investigation are logged in the
corporate incident management
system and tracked to completion.
Investigation outcomes are
monitored, reported and
communicated widely;
• Establish a positive and proactive
safety culture with well-trained and
competent people who demonstrate
Boom’s values and exceptional safety
leadership;
– The Leadership Program teaches
skills to foster a positive safety
culture. Improvements are
measured with leading indicators;
– All personnel have induction
and training programs to ensure
they build and maintain skills
and compliance obligations.
Compliance is measured and
reported; and
• Continue to develop and use excellent
HSEQ processes and systems.
SAFETY
Boom’s safety performance continues to
be a key operational focus with emphasis
on risk management, leadership and
assurance. Our goal is to ensure our
employees and customers are free from
harm when we deliver lifting solutions,
with scale and precision, in a complex
and diverse operating environment.
Ensuring the safety and wellbeing of
our people is an operational discipline
that differentiates Boom from our
competitors. It is a key component of
our value proposition and strengthens
our relationships with our customers and
employees alike.
Boom’s ongoing emphasis on safety
leadership, best practice safety systems
and our “Safety Always” culture builds
confidence and trust with our customers
and employees around the predictable,
reliable and consistent delivery of high
value lifting solutions.
Boom’s three-year HSEQ Strategic Plan
(2018–2020) was refreshed in FY19.
The focus of the refreshed strategic plan
is leadership, assurance and employee
wellbeing. The “One Boom” HSEQ
Management System continues to be
developed and enhanced.
HSEQ Strategic Plan actions include:
• System improvements in the areas
of lifting operations, verification of
competency, training, assurance,
inductions and transport activities;
• A cultural improvement and
leadership program consistent
with the Boom belief that excellent
leadership improves all aspects
of our business including HSEQ
performance;
• A wellbeing program aimed at
improving and maintaining the health
of employees during their career in
the industry;
• Review of the Boom approach to
sustainability and community;
• Review of the existing maintenance
•
system documentation; and
Improved use of the hazard module
in the myosh incident management
software.
Certification to AS/NZS 4801:2001
and OHSAS 18001: 2007 have been
maintained.
24
BOOM LOGISTICS ANNUAL REPORT 2019 CORPORATE GOVERNANCE
OUR BOARD OF DIRECTORS
Maxwell John Findlay
(72)
BEcon, FAICD
Independent, Non-
Executive Chairman
APPOINTED
18 JULY 2016
Tony Spassopoulos
(54)
BBus (Management),
MBA
Managing Director
APPOINTED 20
SEPTEMBER 2018
Melanie Jayne Allibon
(54)
MAICD
Independent, Non-
Executive Director
APPOINTED
19 JUNE 2019
Jean-Pierre Johannes
Andreas Maria
Buijtels (36)
MSc (International
Business)
Non-Independent,
Non-Executive Director
APPOINTED 2 JUNE
2017
Terrence Charles
Francis (73)
DBus (hon. causa), BE
(Civil), MBA, FIE Aust,
FAICD, FFin
Independent, Non-
Executive Director
APPOINTED 13
JANUARY 2005
Terence Alexander
Hebiton (68)
Independent, Non-
Executive Director
APPOINTED 22
DECEMBER 2000
BOOM LOGISTICS ANNUAL REPORT 2019
25
25
BOOM LOGISTICS ANNUAL REPORT 2019 CORPORATE GOVERNANCE CONT.
OUR EXECUTIVE TEAM
Tony Spassopoulos
Managing Director &
Chief Executive Officer
Tim Rogers
Chief Financial Officer
Malcolm Ross
General Counsel and
Company Secretary
26
26
BOOM LOGISTICS ANNUAL REPORT 2019
BOOM LOGISTICS ANNUAL REPORT 2019 ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED
30 JUNE 2019
TABLE OF CONTENTS
Description
Directors’ Report
Remuneration Report
Lead Auditor’s Independence Declaration
Consolidated Statement of Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Cash Flows
Consolidated Statement of Changes in Equity
About This Report
Section A: Financial Performance
1
2
3
4
5
6
Segment Reporting
Revenue from Contracts with Customers
Other Income and Expenses
Income Tax
Earnings Per Share
Dividends
Section B: Operating Assets and Liabilities
7
8
9
10 Commitments
Property, Plant and Equipment
Impairment Testing of Assets
Reconciliation of the Net Cash Flows from Operations with Net Loss After Tax
Section C: Funding Structures
11 Net Debt
12 Financial Risk Management
13 Contributed Equity
Section D: Other Disclosures
14 Subsidiaries
15 Deed of Cross Guarantee
16 Parent Entity
17 Key Management Personnel
18 Share-based Payments
19 Contingencies
20 Auditor’s Remuneration
21 Subsequent Events
22 New Accounting Policies and Standards
Directors’ Declaration
Independent Auditor’s Report to Members of Boom Logistics Limited
ASX Additional Information
Page
28
31
45
46
47
48
49
50
51
51
53
54
55
57
57
58
58
60
61
61
63
63
65
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27
BOOM LOGISTICS ANNUAL REPORT 2019 DIRECTORS’ REPORT
Your Directors present their report on the consolidated entity (referred to hereafter as “the Group”) consisting of Boom Logistics Limited
(“Boom Logistics” or “the Company”) and the entities it controlled for the financial year ended 30 June 2019.
DIRECTORS
The Directors of the Company at any time during or since the end of the financial year are:
Maxwell John Findlay BEcon, FAICD (Independent, Non-executive Chairman) (appointed 18 July 2016)
Mr. Findlay was Managing Director and Chief Executive of industrial services company Programmed Group from 1990 until his
retirement from executive life in 2008. Since retiring as an executive, Mr. Findlay has engaged in various non-executive roles in industrial
services, engineering and government. He is currently Chairman of the Snowy Mountains Engineering Corporation and was previously
Director of EVZ Limited and The Royal Children’s Hospital. During the past three years, Mr. Findlay has held ASX listed public company
Directorships with EVZ Limited (2008 to 2017) and Skilled Group Ltd (2010 to 2015). Mr. Findlay is Chairman of the Boom Logistics
Risk Committee and Nomination & Remuneration Committee.
Tony Spassopoulos BBus (Management), MBA (Managing Director) (appointed 20 September 2018)
Mr. Spassopoulos has over 30 years experience in the equipment hire, industrial services, and the pallet/container pooling industries.
Prior to joining the Company, Mr. Spassopoulos was Director/General Manager of CHEP Asia Pacific – Reusable Plastics Containers
business and held other senior management positions during his 19 years in the Brambles Group. He joined the Company in 2008
and served as Director of Sales and Marketing and more recently Chief Operating Officer prior to his appointment as Managing
Director. During the past three years, Mr. Spassopoulos has not held any other ASX listed public company Directorships.
Melanie Jayne Allibon MAICD (Independent, Non-executive Director) (appointed 19 June 2019)
Ms. Allibon has an extensive background in human resources and operating risk, primarily in the manufacturing, FMCG, mining
and industrial services sectors. She has held senior executive positions with Newcrest Mining, Seven Group Holdings, Pacific
Brands, Amcor, Fosters Group and BHP. Ms. Allibon has held non-executive director positions with the Australian Mines and Metals
Association, Melbourne Water Corporation and Ardoch Youth Foundation Ltd. She is currently a member of World Vision’s Business
Advisory Council, Chief Executive Women and the International Women’s Forum. During the past three years, Ms. Allibon has not held
any other ASX listed public company Directorships.
Jean-Pierre Buijtels MSc (International Business) (Non-independent, Non-executive Director) (appointed 2 June 2017)
Mr. Buijtels is the portfolio manager of Gran Fondo Capital, a Dutch mutual fund. Since 2007 he has been investing in private equity and
public equity at 3i, Gimv and Strikwerda Investments. He has been involved at board level at several companies, currently as observer at
Constellation Software Netherlands Holding Coöperatief U.A (a subsidiary of Constellation Software Inc. and the indirect owner of Total
Specific Solutions). Since the date of appointment, Mr. Buijtels has not held any other ASX listed public company Directorships.
Terrence Charles Francis DBus (hon. causa), BE (Civil), MBA, FIE Aust, FAICD, FFin (Independent, Non-executive Director)
(appointed 13 January 2005)
Mr. Francis is currently a Non-executive Director of the Infrastructure Specialist Asset Management Limited (appointed 29 September
2006). He has over 20 years experience on government and private sector boards and he advises business and government on
infrastructure development. Previously Mr. Francis was Vice President of Continental Illinois Bank, Executive Director of Deutsche Bank
Australia, and Chief Executive Officer of Bank of America in Australia. During the past three years, Mr. Francis has not held any other
ASX listed public company Directorships. Mr. Francis is Chairman of the Boom Logistics Audit Committee.
Terence Alexander Hebiton (Independent, Non-executive Director) (appointed 22 December 2000)
Mr. Hebiton commenced his commercial career in the rural sector. In 1989, he acquired various business interests associated with
land and property rental developments. He is currently a Director of a number of private companies. He was a principal of Alpha Crane
Hire, one of the founding entities of Boom Logistics. Mr. Hebiton was the CEO of Boom Logistics at its formation and ceased being an
Executive Director in 2004. During the past three years, Mr. Hebiton has not held any other ASX listed public company Directorships.
Mr. Hebiton is Chairman of the Health, Safety, Environment & Quality Committee.
Brenden Clive Mitchell BSc (Chem), BBus (Multidiscipline) (Managing Director) (appointed 1 May 2008) (retired 20 September 2018)
Mr. Mitchell worked for over ten years leading multifaceted and multi-location businesses for Brambles in Australia and the UK. He has
previous experience in the fast moving consumer goods sector and upon moving to Brambles, Mr. Mitchell held senior positions in the
equipment hire and the high compliance waste industry. Mr. Mitchell’s last position for Brambles was leading the capital and people
intensive municipal business in the UK with revenue of $550 million and 6,000 employees. During the past three years, Mr. Mitchell has
not held any other ASX listed public company Directorships.
COMPANY SECRETARY
Malcolm Peter Ross BBus, LLB, LLM, GradDipACG, FGIA (appointed Company Secretary 22 September 2014)
Mr Ross joined the Company on 7 November 2011 as General Counsel and in addition to those responsibilities was appointed
Company Secretary on 22 September 2014. Following admission as a solicitor in Victoria in 1997, he worked with Harwood Andrews
and then Hall & Wilcox Lawyers. In 2002, he joined InterContinental Hotels Group Plc (FTSE-listed) based in Singapore where his final
position was Vice-President and Associate General Counsel with responsibility for leading the legal function across Asia Australasia.
28
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 DIRECTORS’ REPORT (continued)
DIRECTORS’ INTERESTS IN THE SHARES AND OPTIONS OF THE COMPANY
As at the date of this report, the interests of the Directors in the shares, rights and options of Boom Logistics Limited were:
Name
M.J. Findlay
T. Spassopoulos
M.J. Allibon
J-P. Buijtels a
T.C. Francis
T.A. Hebiton
Shares
250,000
1,500,000
-
-
185,745
547,995
Rights
-
743,220
-
-
-
-
Options
-
6,818,131
-
-
-
-
a Mr. Buijtels is employed by Rorema Beheer B.V., the fund manager (the Fund Manager) of the fund Gran Fondo Capital (the
Fund) which holds 35,380,332 shares in Boom Logistics Limited (the Company). Mr. Buijtels’ remuneration is partly linked to the
performance of the Fund, which is influenced by the performance of the shares of the Company as long as the Fund holds shares
in the Company. Mr. Buijtels holds a minority economic interest of less than 5% of the units of the Fund and thereby indirectly an
economic interest in the Company as long as the Fund holds shares in the Company. The Fund is open-ended and Mr. Buijtels
can redeem his units in the Fund against their net asset value minus redemption fee at each transaction day of the Fund. Mr.
Buijtels is not a director of the Fund Manager, and does not have the power to exercise votes, control the exercise of votes,
dispose of or control the disposal of the Fund’s shares in the Company. However, he can influence the decision-making process of
the director of the Fund Manager in his capacity as its portfolio manager.
DIRECTORS MEETINGS
The number of meetings of Directors (including meetings of committees of Directors) held during the year and the number of meetings
attended by each Director was as follows:
Name of
director
M.J. Findlay
T. Spassopoulos a
M.J. Allibon a
J-P. Buijtels
T.C. Francis
T.A. Hebiton
B.C. Mitchell b
Board of Directors
Audit Committee
Nomination and
Remuneration
Committee
Health, Safety,
Environment &
Quality Committee
Risk Committee
Held
13
11
1
13
13
13
2
Attended
13
11
1
13
13
13
2
Held
5
-
-
-
5
5
-
Attended
5
-
-
-
5
5
-
Held
1
1
-
1
1
1
-
Attended
1
1
-
1
1
1
-
Held
4
3
-
4
4
4
1
Attended
4
3
-
3
4
4
1
Held
3
2
-
3
3
3
1
Attended
3
2
-
3
3
3
1
a Attendance from date of appointment
b Attendance prior to retirement
CORPORATE STRUCTURE
Boom Logistics is a company limited by shares that is incorporated and domiciled in Australia. Boom Logistics Limited has prepared
a consolidated financial report incorporating the entities that it controlled during the financial year, which are listed in note 14 to the
financial statements.
INDEMNIFICATION AND INSURANCE
The Company has entered into Deeds of Access, Indemnity and Insurance with each of the Directors and the Company Secretary, under
which the Company indemnifies, to the extent not precluded by law from doing so, those persons against any liability they incur in or arising
out of discharging their duties. No indemnity has been granted to an auditor of the Group in their capacity as auditor.
During the financial year, the Company has paid an insurance premium for the benefit of the Directors and officers of the Company
in accordance with common commercial practice. The insurance policy prohibits disclosure of the liability insured and the amount of
the premium.
NATURE OF OPERATIONS AND PRINCIPAL ACTIVITIES
During the year, the principal activity of the Group was the provision of lifting solutions and specialised labour services.
29
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 DIRECTORS’ REPORT (continued)
OPERATING AND FINANCIAL REVIEW
A review of Group operations and results for the financial year ended 30 June 2019 is set out in the operating and financial review
section of the Annual Report and in the accompanying financial statements.
CORPORATE GOVERNANCE
The Group recognises the need for the highest standards of corporate behaviour and accountability. The Directors of Boom Logistics
have accordingly followed the recommendations set by the ASX Corporate Governance Council. For further information on corporate
governance policies adopted by Boom Logistics Limited, refer to our website: www.boomlogistics.com.au/about-us/corporate-
governance and annual reports.
SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS
There have been no significant changes in the state of affairs other than that reported in the Operating and Financial Review section
disclosed above.
SIGNIFICANT EVENTS AFTER THE BALANCE DATE
The Directors are not aware of any other matter or circumstance that has arisen since 30 June 2019 that has significantly affected or
may significantly affect the operations of the Group in subsequent financial years, the results of those operations or the state of affairs
of the Group in future financial years.
LIKELY DEVELOPMENTS AND EXPECTED RESULTS
The Directors expect performance to improve as a result of building new revenue and expanding services in key geographies and
markets and further capitalising on the operational leverage that persists within Boom’s cost structure leading to improving margins.
The Directors are cognisant of the requirement to continuously disclose material matters to the market. At this time, other than
the matters addressed in this financial report there are no matters sufficiently advanced or at a level of certainty that would require
disclosure.
ENVIRONMENTAL REGULATION AND PERFORMANCE
The Board confirms that the Group has adequate systems and processes in place to manage and comply with environmental
regulations as they apply to the Group. This includes the National Greenhouse and Energy Reporting Act 2007 which requires the
Group to report energy consumption and greenhouse gas emissions for the 12 months ended 30 June 2019 and future periods.
There have been no significant known breaches of any environmental regulations to which the Group is subject.
30
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 DIRECTORS’ REPORT (continued)
REMUNERATION REPORT – AUDITED
The Directors of Boom Logistics Limited present the Remuneration Report for the Company and the Group for financial year ended
30 June 2019 (“FY19”). This report outlines the remuneration arrangements in place for non-executive directors (“NEDs”) and the
Managing Director and Senior Executives (“Executive KMP”).
Key management personnel (“KMP”) are those persons who, directly or indirectly, have authority and responsibility for planning,
directing and controlling the major activities of the Company and Group.
Principles of Remuneration Practices
The Group’s remuneration practices are designed to maintain alignment with business strategy, shareholder interests and business
performance whilst ensuring remuneration is appropriate. The Executive KMP remuneration framework and KMP remuneration is
reviewed annually by the Board with the assistance of the Nomination & Remuneration Committee.
In conducting the Executive KMP remuneration review, the following principles are applied:
• Monitoring against external competitiveness, as appropriate using independent market survey data comparing the Group’s
•
remuneration levels against industry peers in terms of comparable job size and responsibility;
Internal equity, ensuring Executive KMP remuneration across the Group is based upon a clear view of the scope of individual
positions and the respective responsibilities;
• A meaningful “at risk” component with entitlement dependent on achieving Group and individual performance targets set by the
Board of Directors and aligned to the Group’s strategy; and
• Reward for performance represents a balance of annual and longer term targets.
Nomination and Remuneration Committee
The Group is committed to ensuring remuneration is informed by market data and linked to the Group’s strategy and performance. In
doing so, the Board of Directors rely on the advice provided by the Nomination and Remuneration Committee including the review and
making recommendations:
• With regard to remuneration policies applicable to the Directors, Executive KMP and employees generally;
•
• Of general remuneration principles, including incentive schemes, bonuses and share plans that reward individual and team
In relation to the remuneration of Directors and Executive KMP;
performance;
• With regard to termination policies and procedures for Directors and Executive KMP;
•
• To the Board of Directors for the inclusion of the Remuneration Report in the Group’s annual report.
In relation to the Group’s superannuation arrangements; and
The Nomination and Remuneration Committee comprises a majority of independent directors and is chaired by the Chairman of the
Board of Directors. From time to time, the Nomination and Remuneration Committee also draws upon advice and market survey data
from external consultants in discharging its responsibilities.
Details of Key Management Personnel
The tables below set out the KMP and their movements during FY19.
Key Management Personnel (Executive)
Name
Title
Period as a KMP
Tony Spassopoulos *
Chief Executive Officer & Managing Director
All of FY19
Brenden Mitchell
Former Chief Executive Officer & Managing Director
Retired 20 September 2018
Tim Rogers
Malcolm Ross
Shane Stafford
Chief Financial Officer
General Counsel & Company Secretary
General Manager – readi
All of FY19
All of FY19
Resigned 30 June 2019
* Tony Spassopoulos was appointed Chief Executive Officer & Managing Director on 20 September 2018. Prior to this date, he was
the Chief Operating Officer which was still a KMP role.
31
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 DIRECTORS’ REPORT (continued)
REMUNERATION REPORT – AUDITED (CONTINUED)
Key Management Personnel (Non-executive Directors)
Name
Maxwell Findlay
Melanie Allibon b
Position a
Chairman
Non-executive Director
Jean-Pierre Buijtels
Non-executive Director
Audit
Member
-
-
Terrence Francis
Terence Hebiton
Non-executive Director
Non-executive Director
Chairman
Member
Committees
Nomination &
Remuneration
Health, Safety,
Environment &
Quality
Risk
Chairman
Member
Chairman
-
Member
Member
Member
-
Member
Member
Chairman
-
Member
Member
Member
a All non-executive directors are independent, except for Jean-Pierre Buijtels who is not independent.
b Melanie Allibon was appointed on 19 June 2019 and consequently, memberships of Board committees have yet to be determined
at 30 June 2019.
Remuneration Arrangements of Executive Key Management Personnel
In the normal course of business, remuneration comprises fixed remuneration (fixed annual reward) and variable or “at risk”
remuneration incentives. The Group’s revised remuneration structure for the Executive KMP comprises two main components:
Fixed annual reward
This element comprises base salary, any fringe benefits (e.g. motor vehicle allowance) and employer contributed superannuation.
Executive KMP have scope to vary the components that make up their FAR and can tailor their salary package to suit individual
requirements.
a) Salary sacrifice rights plan
Eligible executives will be permitted to salary sacrifice a portion of their pre-tax fixed annual remuneration to acquire equity in the
form of rights to fully paid ordinary shares in the Company.
Each right is a right to acquire one ordinary share in the Company. The exact number of rights to be granted is based on the
amount of salary sacrificed and the 5 day volume weighted average price prior each month. Rights do not carry any dividend or
voting rights. Rights will be granted twice a year following the announcement of the half-year and full-year results or in any event,
within twelve months of the Annual General Meeting (“AGM”). Rights will have a twelve month exercise restriction commencing
from the relevant grant dates. The rights to ordinary shares equivalent to the amount salary sacrificed in the period from the most
recent grant date will be granted following the announcement of the full-year results.
Variable remuneration
The Group has a number of variable remuneration arrangements as follows:
b) Short term incentive plan
Eligible executives will have the opportunity to receive short term incentives subject to meeting performance hurdles over the
financial year. 50% of the STIP outcome achieved for the financial year will be delivered in cash and 50% will be delivered in equity
in the form of rights to ordinary shares in the Company.
Each right is a right to acquire one ordinary share in the Company. The exact number of rights to be granted is based on 50% of
the STIP outcome divided by the 5 day volume weighted average price after the release of full year results. Rights do not carry any
dividend or voting rights. Rights will be granted following the announcement of the full-year results or in any event, within twelve
months of the AGM. Rights will have a six month exercise restriction commencing from the grant date.
The objectives of this plan are to:
• Focus Executive KMP on key annual business goals and reinforce the link between performance and reward;
• Allow scope to recognise exceptional performance through a sliding scale of reward;
• Encourage teamwork as well as individual performance in meeting annual goals; and
• Align reward with the Group’s values.
32
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT – AUDITED (CONTINUED)
Remuneration Arrangements of Executive Key Management Personnel (continued)
Variable remuneration (continued)
c) Long term incentive plan
Eligible executives will be granted options to acquire ordinary shares in the Company, subject to performance hurdles and some or
all may vest at the end of the three year period if the performance hurdles are met.
Each option is a right to acquire one ordinary share in the Company (or an equivalent cash amount) subject to payment of the
exercise price. The exact number of options to be granted will be the LTIP award divided by the option valuation using a Binomial
valuation methodology prior to grant date. The option exercise price is calculated based on the 5 day volume weighted average
price prior to the grant date. Options do not carry any dividend or voting rights. Options will be granted within twelve months of the
Annual General Meeting.
Options are subject to a performance hurdle based on absolute Earnings Per Share (“EPS”), which is measured over a three
year performance period. An absolute EPS hurdle must be achieved at the end of year three for any options to vest. The Board
of Directors retains a discretion to adjust the EPS hurdle as required to ensure plan participants are neither advantaged nor
disadvantaged by matters outside management’s control that materially affect absolute EPS (for example, by excluding one-off
non-recurrent items or the impact of significant acquisitions or disposals).
The following table shows the potential annual remuneration packages for Executive KMP during the financial year.
Name
Title
Tony Spassopoulos Chief Executive Officer & Managing Director
Brenden Mitchell
Former Chief Executive Officer & Managing Director
Tim Rogers
Chief Financial Officer
Malcolm Ross
General Counsel & Company Secretary
Shane Stafford
General Manager – readi
Fixed
FAR
600,000
675,000
323,269
275,211
257,115
Variable
STIP % of FAR
LTIP % of FAR
40%
40%
20%
20%
30%
50%
45%
20%
20%
20%
Consequences of Performance on Shareholder Wealth
In considering the Group’s performance and benefits for shareholder wealth, the Nomination and Remuneration Committee have
regard to the following indices in respect of the current and previous financial years.
Net loss attributable to members of
Boom Logistics Limited
Dividends paid
Share price at financial year end
Earnings per share
2019
2018
2017
2016
2015
$’000
$’000
$’000
$’000
$’000
$(5,330)
$(1,547)
$(22,630)
$(30,219)
$(36,874)
$-
$-
$-
$-
$-
$0.15
$0.24
$0.09
$0.08
$0.12
$(0.01)
$(0.00)
$(0.05)
$(0.06)
$(0.08)
Return on capital employed (Trading EBIT/Capital Employed)
1.5%
1.6%
(3.7%)
(3.4%)
(2.0%)
33
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT – AUDITED (CONTINUED)
Remuneration Review
The review of KMP and general staff remuneration is conducted annually through a formal process.
KMP remuneration is reviewed by the Nomination and Remuneration Committee of the Board of Directors with input from the
Chief Executive Officer (“CEO”) in respect of KMP reporting directly to him. Market survey data provided combined with individual
performance appraisals to determine recommendations go to the Board of Directors for approval. This process occurs in June of each
year and remuneration adjustments take effect from the beginning of each financial year.
The Nomination and Remuneration Committee has direct responsibility for reviewing CEO performance against targets set by the
Board of Directors and recommending to the Board of Directors appropriate adjustments to his remuneration package.
Staff reviews are similarly conducted by the relevant Executives and General Managers, with overview from the CEO.
CEO & Managing Director Remuneration
Mr. Spassopoulos has an employment contract that has no fixed term. Both the Company and Mr. Spassopoulos are entitled to
terminate the employment contract on six month’s written notice, except in the case of serious misconduct or neglect of duty.
Contractual arrangements relating to a redundancy event are set out below.
Mr. Spassopoulos’ remuneration package as at 30 June 2019 comprised the following components:
• FAR of $600,000 per annum, inclusive of allowances and superannuation contributions in line with the Superannuation Guarantee
legislation. Mr. Spassopoulos’ FAR is reviewed annually effective 1 July each year taking into account the Group’s performance,
industry and economic conditions and personal performance.
– Mr. Spassopoulos has elected to salary sacrifice 20% of his FAR for rights to ordinary shares in the Company equating to an
annual value of $120,000;
• STIP equivalent to 40% of his FAR upon achievement of performance conditions set by the Board of Directors on an annual basis.
50% of the STIP outcome achieved for the financial year will be delivered in cash and 50% will be delivered in equity in the form of
rights to ordinary shares in the Company. The cash payment of any bonus under the STIP will take place after the annual audit of
the Group’s financial report which typically occurs in the first half of the following financial year. No STIP is awarded if performance
conditions are not met; and
• LTIP equivalent to 50% of his FAR is allocated in options of the Company with a performance hurdle based on absolute EPS over
a three year performance period subject to shareholder approval at the Company’s Annual General Meeting.
If his employment is terminated on the grounds of redundancy or where a diminution in responsibility occurs, Mr. Spassopoulos will be
entitled to receive:
• The lesser of the maximum amount permitted by the Corporations Act and 12 months pay calculated in accordance with his FAR
at the date of redundancy or diminution;
• Vested employee entitlements;
• STIP rights that have vested and if not exercised the exercise restrictions will be lifted. Where employment ceased prior to the STIP
outcome being determined, the Board of Directors may at its discretion determine a pro-rated STIP based on the proportion of the
performance period that has elapsed at the time of cessation. To the extent the relevant performance conditions are satisfied, the
STIP award will be paid in cash and no rights will be allocated;
• LTIP options that have vested. Where employment ceased before the options vest, unvested options will continue “on-foot”
and will be tested following the end of the original vesting date, and vesting to the extent that the relevant conditions have been
satisfied (ignoring any service related conditions);
In the event a termination payment is made, no payment in lieu of notice will be made.
•
The Board of Directors also have a broader discretion to apply any other treatment that it deems appropriate in the circumstances.
In the event that Mr. Spassopoulos was to be summarily dismissed, he would be paid for the period served prior to dismissal and any
accrued leave entitlements. Mr. Spassopoulos would not be entitled to the payment of any bonus under the STIP or LTIP.
Mr. Spassopoulos is subject to restrictive covenants upon cessation of his employment for a maximum period of one year.
34
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 DIRECTORS’ REPORT (continued)
REMUNERATION REPORT – AUDITED (CONTINUED)
Former CEO & Managing Director Remuneration on Retirement
Upon his retirement, Mr. Mitchell received all accrued entitlements in accordance with his contract including a retirement termination
payment of $675,000 which is based on his annual base pay. All entitlements provided to Mr. Mitchell under his retirement
arrangements are within the termination benefits limits prescribed by the Corporations Act 2001.
Mr. Mitchell will not be entitled to receive a short-term or long-term incentive in relation to the 2019 financial year. Mr. Mitchell’s long-
term incentives in relation to the 2017 financial year and 2018 financial year (tranche 1 and 2 only) will continue on foot and will vest to
the extent that the applicable conditions have been achieved at the end of the applicable vesting period.
Other Executive KMP (standard contracts)
All other Executive KMP have contracts with no fixed term. Either the Company or the Executive KMP may terminate the Executive
KMP employment agreement by providing three months written notice or providing payment in lieu of the notice period (based upon
the fixed component of the Executive KMP remuneration). If employment is terminated on the grounds of redundancy, in addition to
the notice period, all other Executive KMP will be entitled to receive up to 12 months pay calculated in accordance with their FAR.
On termination by notice of the Company or the Executive KMP, any STIP and LTIP that have vested will be awarded. Where
employment ceased prior to the STIP outcome being determined or LTIP options vest, the treatment will be the same as that disclosed
in the CEO & Managing Director Remuneration section above.
The Company may terminate the contract at any time without notice if serious misconduct has occurred. Where termination with
cause occurs, the Executive KMP is only entitled to that proportion of remuneration that is fixed, and only up to the date of termination.
On termination with cause, any unvested STIP rights and LTIP shares or options will lapse.
35
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 DIRECTORS’ REPORT (continued)
REMUNERATION REPORT – AUDITED (CONTINUED)
Total Remuneration of Executive KMP
Details of the cost to the Group relating to Executive KMP remuneration for the year ended 30 June 2019 are set out below.
Short Term
Post
Employment
Share-based Payments b
Long Term
Salary sacrificed rights
Total
Employee
Benefits
Expense
Total
performance
related
Cash
salary
Cash
bonus
a
Other
Super-
annuation
Retirement
benefits
Not
granted
Granted
STIP rights c
LTIP
shares &
options
Annual &
long service
leave d
3,569
14,275
27,827
27,827
24,000
69,280
421,539
394,038
-
135,000
Executives
Tony Spassopoulos (Chief Executive Officer
& Managing Director)
2019
2018
Brenden Mitchell (former Chief Executive
Officer & Managing Director)
125,184
2019
2018
428,237
Tim Rogers (Chief Financial Officer)
2019
2018
Malcolm Ross (General Counsel and
Company Secretary)
2019
2018
Shane Stafford (General Manager – readi)
2019
2018
Total Remuneration: Executives
2019 1,289,611
2018 1,518,153
262,321
247,577
247,367
244,014
233,200
204,287
41,474
270,987
-
14,834
11,009
21,376
6,465
30,497
45,079
47,910
3,001
-
5,617
1,404
5,065
4,404
25,000
25,000
-
-
40,000
15,000
65,000
-
24,000
69,280
7,510
78,080
33,276
(2,522)
668,152
675,983
8.3%
32.0%
16,667
25,000
675,000
-
-
67,500
33,750
135,000
-
135,000
(165,348)
176,080
16,435
(17,116)
705,257
1,098,976
-
40.6%
25,000
25,000
24,714
24,167
24,574
22,817
-
-
-
-
-
-
10,776
9,332
20,108
18,658
6,465
30,497
(9,981)
34,563
(5,805)
4,712
320,414
405,240
0.9%
23.6%
-
-
-
-
11,009
21,375
(9,364)
30,459
6,591
4,246
294,327
345,637
4.3%
21.2%
-
6,696
5,022
13,390
-
14,832
(41,168)
29,167
(8,181)
18,911
219,064
326,338
-
18.0%
115,955
121,984
675,000
-
50,776
98,528
123,880
167,048
41,474
270,984
(218,351)
348,349
42,316 2,207,214
8,231 2,852,174
-
-
Refer to note 18 for further details.
a Other represents motor vehicle allowance and novated lease payments.
b Share-based payments represent a combination of rights, shares and options in Boom Logistics Limited granted under the
remuneration structures. Only the expense relating to the period has been recognised in accordance with the accounting policy
disclosed in note 18.
c Rights awarded as part of the STIP are expected to be granted after the announcement of the full year results and not later than 31
August 2019.
d Long term annual leave and long service leave amounts represent the net movement in balance sheet leave provisions recognised in
the statement of comprehensive income during the financial year.
36
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT – AUDITED (CONTINUED)
Non-executive Director Fees
Non-executive Director fees are determined by reference to external survey data, taking account of the Group’s relative size and
business complexity. No additional payments are made for serving on Board Committees. In addition, non-executive Directors have no
entitlement to STIP, no equity incentives are offered and no retirement benefits are payable. The maximum aggregate sum for non-
executive Director remuneration of $400,000 was approved by shareholders at the 2004 Annual General Meeting. There has been no
increase to the NED fee pool since 2004.
Details of non-executive Directors’ remuneration for the year ended 30 June 2019 are as follows:
Short Term
Post
Employment
Share-based
Payments
Long
Term
Total
Salary
& fees
Cash bonus
Other
Super-
annuation
Retirement
benefits
All
Annual &
long service
leave
Non-Executive Directors
Maxwell Findlay
2019
2018
128,750
120,000
-
-
Melanie Allibon
2019
2,137
-
Jean-Pierre Buijtels a
Terrence Francis
2019
2018
Terence Hebiton
2019
2018
64,375
60,000
64,375
60,000
-
-
-
-
-
-
-
-
-
-
-
Total Remuneration: Non-Executive Directors
2019
2018
259,637
240,000
-
-
-
-
Total Remuneration: Non-Executive Directors and
Executives – Group
2019
2018
1,549,248
1,758,153
41,474
270,987
45,079
47,910
12,231
11,400
203
6,116
5,700
6,116
5,700
24,666
22,800
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
140,981
131,400
2,340
70,491
65,700
70,491
65,700
284,303
262,800
140,621
675,000
(2,221)
42,316
2,491,517
144,784
-
884,909
8,231
3,114,974
a Jean-Pierre Buijtels is not paid a Director’s fee. Instead, the Company pays for his travel and accommodation costs whilst attending
Board of Director and committee meetings in Australia up to a maximum of $65,700 per financial year.
37
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT – AUDITED (CONTINUED)
Equity Instruments Held by KMP
Summary of equity instruments held by KMP at reporting date are as follows:
Name
Max Findlay
Tony Spassopoulos
Melanie Allibon
Jean-Pierre Buijtels
Terrence Francis
Terence Hebiton
Tim Rogers
Malcolm Ross
Shares
SSRP Rights
STIP Rights
LTIP Options
250,000
1,500,000
-
-
185,745
547,995
-
-
-
427,162
-
316,058
-
6,818,131
-
-
-
-
-
-
-
-
-
-
-
-
388,637
-
188,709
185,232
1,914,149
1,651,191
Shareholdings of Directors and Executive KMP
Ordinary shares held in Boom
Logistics Limited (number)
30 June 2019
Non-Executive & Executive Directors
Maxwell Findlay
Tony Spassopoulos
Melanie Allibon
Jean-Pierre Buijtels a
Terrence Francis (ii)
Terence Hebiton
Brenden Mitchell b
Executives
Tim Rogers
Malcolm Ross
Shane Stafford
Total
Received on
exercise of
salary sacrifice
rights
Received on
exercise of
STIP rights
Balance at
start of year
Net change
other (i)
Balance at
end of year
250,000
1,081,565
-
-
185,745
547,995
3,057,235
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
418,435
-
-
-
-
-
-
-
-
250,000
1,500,000
-
-
185,745
547,995
3,057,235
-
-
-
5,122,540
-
-
418,435
5,540,975
(i) These amounts represent ordinary shares purchased or sold directly or indirectly by the directors and executives during the
financial year. These transactions have no connection with their roles and responsibilities as employees of the Group.
(ii) Includes shares held under a nominee or a related party.
a Mr. Buijtels is employed by Rorema Beheer B.V., the fund manager (the Fund Manager) of the fund Gran Fondo Capital (the
Fund) which holds 35,380,332 shares in Boom Logistics Limited (the Company). Mr. Buijtels’ remuneration is partly linked to
the performance of the Fund, which is influenced by the performance of the shares of the Company as long as the Fund holds
shares in the Company. Mr. Buijtels holds a minority economic interest of less than 5% of the units of the Fund and thereby
indirectly an economic interest in the Company as long as the Fund holds shares in the Company. The Fund is open-ended and
Mr. Buijtels can redeem his units in the Fund against their net asset value minus redemption fee at each transaction day of the
Fund. Mr. Buijtels is not a director of the Fund Manager, and does not have the power to exercise votes, control the exercise of
votes, dispose of or control the disposal of the Fund’s shares in the Company. However, he can influence the decision-making
process of the director of the Fund Manager in his capacity as its portfolio manager.
b Mr. Mitchell’s shareholding balance is as at date of resignation on 20 September 2018.
38
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT – AUDITED (CONTINUED)
SSRP Outcomes of the Executive KMP
The following table shows the rights to ordinary shares granted to Executive KMP during the financial year under the salary sacrifice
rights plan.
Name
Tony Spassopoulos
Brenden Mitchell
Tim Rogers
Shane Stafford
Grant
number
Fair value
per right at
grant date
Exercise
date
Grant date
25 Feb 19
308,451
$0.1793
25 Feb 20
17 Aug 18
118,711
$0.2069
17 Aug 19
17 Aug 18
490,958
$0.2069
17 Aug 19
25 Feb 19
85,968
$0.1793
25 Feb 20
17 Aug 18
67,876
$0.2069
17 Aug 19
25 Feb 19
7,720
$0.1793
25 Feb 20
17 Aug 18
48,703
$0.2069
17 Aug 19
Year
2019
2018
2018
2019
2018
2019
2018
Expiry date
25 Feb 29
17 Aug 28
17 Aug 28
25 Feb 29
17 Aug 28
25 Feb 29
17 Aug 28
Value of
rights
granted
during the
year
$55,000
$25,000
$101,250
$15,442
$13,998
$1,674
$10,044
SSRP rights are granted twice per annum during the trading window following the release of the half-year and full year results.
Amounts are salary sacrificed monthly and are held until granting of rights during a trading window.
The following table shows the potential rights to ordinary shares not yet granted to Executive KMP equivalent to the amount of salary
sacrificed to 30 June 2019 since the most recent granting of rights under the salary sacrifice rights plan.
Name
Tony Spassopoulos
Tim Rogers
Year
2019
2019
Number of
rights
not yet
granted
Value of
rights
not yet
granted
254,051
$40,000
68,439
$10,776
39
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 DIRECTORS’ REPORT (continued)
REMUNERATION REPORT – AUDITED (CONTINUED)
SSRP Outcomes of the Executive KMP (continued)
Rights to ordinary
shares (number)
30 June 2019
Salary Sacrifice Rights
Tony Spassopoulos
Brenden Mitchell
Tim Rogers
Shane Stafford
Grant date
Balance at
start of year
Granted
during year
Exercised
Balance at
end of year
25 Feb 19
17 Aug 18
17 Aug 18
22 Feb 18
29 Aug 17
23 Feb 17
25 Feb 19
17 Aug 18
22 Feb 18
29 Aug 17
23 Feb 17
25 Feb 19
17 Aug 18
22 Feb 18
29 Aug 17
23 Feb 17
-
-
-
-
525,326
896,095
623,592
308,451
118,711
427,162
490,958
-
-
-
(490,958)
(525,326)
(896,095)
(623,592)
2,045,013
490,958
(2,535,971)
-
-
74,201
118,524
42,068
234,793
-
-
52,995
85,919
45,547
85,968
67,876
-
-
-
153,844
7,720
48,703
-
-
-
-
-
-
-
-
-
-
-
(52,995)
(85,919)
(45,547)
-
-
-
308,451
118,711
427,162
-
-
-
-
-
85,968
67,876
74,201
118,524
42,068
388,637
7,720
48,703
-
-
-
Total
2,464,267
1,128,387
(2,720,432)
872,222
184,461
56,423
(184,461)
56,423
40
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 DIRECTORS’ REPORT (continued)
REMUNERATION REPORT – AUDITED (CONTINUED)
Determining the STIP Outcomes of the Executive KMP
For the FY2018 STIP, the following table shows the rights to ordinary shares granted to Executive KMP during the year.
Name
Tony Spassopoulos
Brenden Mitchell
Tim Rogers
Malcolm Ross
Shane Stafford
Grant
number
Fair value
per right at
grant date
Exercise
date
Grant date
7 Sep 18
316,058
$0.2192
7 Mar 19
7 Sep 18
615,876
$0.2192
7 Mar 19
7 Sep 18
139,129
$0.2192
7 Mar 19
7 Sep 18
7 Sep 18
97,514
$0.2192
7 Mar 19
67,669
$0.2192
7 Mar 19
Year
2018
2018
2018
2018
2018
Expiry date
7 Sep 28
7 Sep 28
7 Sep 28
7 Sep 28
7 Sep 28
Value of
rights
granted
during the
year
$69,280
$135,000
$30,497
$21,375
$14,832
For the FY2019 STIP, the Nomination and Remuneration Committee conducted a review of the Executive KMP performance against
their set targets which resulted in the following potential maximum STIP being awarded to the Executive KMP. The STIP will be settled
50% in cash and 50% in rights to ordinary shares in the Company after the announcement of the full year results and approval by the
Board of Directors.
Name
Title
Tony Spassopoulos
Chief Executive Officer & Managing Director
Tim Rogers
Malcolm Ross
Shane Stafford
Chief Financial Officer
General Counsel & Company Secretary
General Manager – readi
Maximum
STIP
$
240,000
64,654
55,042
77,135
Weightinga
%
20.0%
20.0%
40.0%
0.0%
Total
Cost
$
48,000
12,930
22,018
0
a Weighting represents the percentage of total STIP entitlement awarded to Executive KMPs based on their financial, safety and
individual performance targets.
Rights to ordinary
shares (number)
30 June 2019
STIP Rights
Tony Spassopoulos
Brenden Mitchell
Tim Rogers
Malcolm Ross
Shane Stafford
Grant date
Balance at
start of year
Granted
during year
Exercised
Balance at
end of year
-
316,058
7 Sep 18
7 Sep 18
7 Sep 18
27 Sep 17
7 Sep 18
27 Sep 17
7 Sep 18
27 Sep 17
-
-
-
49,580
49,580
-
87,718
87,718
-
121,743
121,743
316,058
615,876
139,129
-
139,129
97,514
-
97,514
67,669
-
(615,876)
-
-
-
-
-
-
(67,669)
(121,743)
67,669
(189,412)
-
139,129
49,580
188,709
97,514
87,718
185,232
-
-
-
Total
259,041
1,236,246
(805,288)
689,999
41
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
DIRECTORS’ REPORT (continued)
REMUNERATION REPORT – AUDITED (CONTINUED)
Determining the LTIP Outcomes of the Executive KMP
Set out below are options granted to the Executive KMP under the LTIP during the year including those granted in previous years.
Name
Year Grant date
Grant
number Vesting date
Fair
value per
option
at grant
date
Exercise
price
Expiry date
Vesting
Benchmark
Value of
options
granted
during the
year
Tony Spassopoulos 2019
28 Nov 18
4,838,710
31 Aug 21
$0.0620
$0.164
30 Sep 21 EPS > $0.03
$300,000
Brenden Mitchell
Tim Rogers
Malcolm Ross
2018
2017
2018
2017
2019
2018
2017
2019
2018
30 Nov 17
1,979,421
31 Aug 20
$0.0700
$0.212
30 Sep 20
$0.025 EPS
$138,559
4 Nov 16
2,932,473
31 Aug 19
$0.0450
$0.108
4 Sep 19
$0.020 EPS
$131,961
30 Nov 17
4,339,286
31 Aug 20
$0.0700
$0.212
30 Sep 20
$0.025 EPS
$303,750
4 Nov 16
6,750,000
31 Aug 19
$0.0450
$0.108
4 Sep 19
$0.020 EPS
$303,750
28 Nov 18
1,042,803
31 Aug 21
$0.0620
$0.164
30 Sep 21 EPS > $0.03
30 Nov 17
871,346
31 Aug 20
$0.0700
$0.212
30 Sep 20
$0.025 EPS
4 Nov 16
1,303,293
31 Aug 19
$0.0450
$0.108
4 Sep 19
$0.020 EPS
28 Nov 18
887,777
31 Aug 21
$0.0620
$0.164
30 Sep 21 EPS > $0.03
30 Nov 17
763,414
31 Aug 20
$0.0700
$0.212
30 Sep 20
$0.025 EPS
2017
4 Nov 16
1,152,947
31 Aug 19
$0.0450
$0.108
4 Sep 19 $0.020 EPS
Shane Stafford
2019
28 Nov 18
829,403
31 Aug 21
$0.0620
$0.164
30 Sep 21 EPS > $0.03
2018
30 Nov 17
706,360
31 Aug 20
$0.0700
$0.212
30 Sep 20 $0.025 EPS
2017
4 Nov 16
1,066,778
31 Aug 19
$0.0450
$0.108
4 Sep 19 $0.020 EPS
$64,654
$60,994
$58,648
$55,042
$53,439
$51,883
$51,423
$49,445
$48,005
The FY2017 options allocated to the Executive KMP did not vest as their vesting conditions were not met. In accordance with the LTIP
rules, the FY2017 options were treated as lapsed at reporting date.
42
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 DIRECTORS’ REPORT (continued)
REMUNERATION REPORT – AUDITED (CONTINUED)
Determining the LTIP Outcomes of the Executive KMP (continued)
Grant date
28 Nov 18
30 Nov 17
4 Nov 16
30 Nov 17
4 Nov 16
28 Nov 18
30 Nov 17
Options held in Boom Logistics
Limited (number)
30 June 2019
Tony Spassopoulos
Brenden Mitchell
Tim Rogers
Malcolm Ross
Shane Stafford
Balance at
start of year
Unvested
Granted
Lapsed
Forfeited
-
4,838,710
1,979,421
2,932,473
-
-
-
-
(2,932,473)
4,911,894
4,838,710
(2,932,473)
-
-
-
-
Balance at
end
of year
Unvested
4,838,710
1,979,421
-
6,818,131
4,339,286
6,750,000
11,089,286
-
-
-
-
(1,446,429)
2,892,857
(6,750,000)
-
-
(6,750,000)
(1,446,429)
2,892,857
-
1,042,803
871,346
4 Nov 16
1,303,293
28 Nov 18
30 Nov 17
763,414
4 Nov 16
1,152,947
-
887,777
-
-
(1,303,293)
-
-
(1,152,947)
2,174,639
1,042,803
(1,303,293)
1,916,361
887,777
(1,152,947)
-
-
-
-
-
-
-
-
1,042,803
871,346
-
1,914,149
887,777
763,414
-
1,651,191
28 Nov 18
30 Nov 17
706,360
4 Nov 16
1,066,778
-
829,403
1,773,138
829,403
-
-
-
-
(829,403)
(706,360)
(1,066,778)
(2,602,541)
-
-
-
-
-
-
-
-
-
-
Total
21,865,318
7,598,693
(12,138,713)
(4,048,970)
13,276,328
Share Trading Policy
The Group Securities Trading Policy applies to all NEDs and Executive KMP. The policy prohibits KMP from dealing in the Company
securities while in possession of material non-public information relevant to the Group.
43
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 DIRECTORS’ REPORT (continued)
LEAD AUDITOR’S INDEPENDENCE DECLARATION TO THE DIRECTORS
The auditor’s independence declaration is set out on page 45 and forms part of the directors’ report for the financial year ended 30
June 2019.
NON-AUDIT SERVICES
The following non-audit services were provided by KPMG Australia, the Company’s auditor. The Directors are satisfied that the
provision of non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act
2001. The nature and scope of each type of non-audit service provided means that auditor independence was not compromised.
KPMG Australia received or are due to receive the following amounts for the provision of non-audit services:
Taxation services
Other services
Total remuneration for non-audit services
$82,778
$0
$82,778
PROCEEDINGS ON THE BEHALF OF THE COMPANY
No person has applied to the Court under section 237 of the Corporations Act 2001 for leave to bring proceedings on behalf of the
Company, or to intervene in any proceedings to which the Company is a party, for the purpose of taking responsibility on behalf of the
Company for all or part of those proceedings.
No proceedings have been brought or intervened in on behalf of the Company with leave of the Court under section 237 of the
Corporations Act 2001.
ROUNDING
The amounts contained in this report and in the financial report are presented in Australian dollars and have been rounded to the
nearest $1,000 (where rounding is applicable) under the option available under ASIC Corporations Instrument 2016/191. The Group is
of a kind to which the Corporations Instrument applies.
Signed in accordance with a resolution of the Directors.
Maxwell Findlay
Chairman
Melbourne, 21 August 2019
Tony Spassopoulos
Managing Director
44
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 Lead Auditor’s Independence Declaration under
Section 307C of the Corporations Act 2001
To the Directors of Boom Logistics Limited
I declare that, to the best of my knowledge and belief, in relation to the audit of Boom Logistics Limited for
the financial year ended 30 June 2019 there have been:
i.
ii.
no contraventions of the auditor independence requirements as set out in the
Corporations Act 2001 in relation to the audit; and
no contraventions of any applicable code of professional conduct in relation to the audit.
KPMG
Andrew Hounsell
Partner
Melbourne
21 August 2019
KPMG, an Australian partnership and a member firm of the KPMG
network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity.
Liability limited by a scheme approved under
Professional Standards Legislation.
45
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
Year Ended 30 June 2019
Revenue
Other income
Salaries and employee benefits expense
Equipment service and supplies expense
Operating lease expense
Other expenses
Restructuring expense
Depreciation and amortisation expense
Impairment expense
Note
2
3(a)
3(b)
3(b)
8
2019
$’000
2018
$’000
182,722
183,046
4,242
(96,579)
(44,446)
(11,972)
(15,159)
(1,117)
(17,340)
(1,975)
170
(94,678)
(48,992)
(6,476)
(12,053)
(370)
(18,203)
-
Loss / (profit) before financing expense and income tax
(1,624)
2,444
Financing expense
Loss before income tax
Income tax benefit
11(f)
(3,706)
(3,991)
(5,330)
(1,547)
4(a)
-
-
Net loss attributable to members of Boom Logistics Limited
(5,330)
(1,547)
Other comprehensive loss
Items that may be reclassified subsequently to profit or loss
Cash flow hedges recognised in equity, net of tax
Other comprehensive loss for the year, net of tax
Total comprehensive loss for the year attributable
to members of Boom Logistics Limited
(17)
(17)
(60)
(60)
(5,347)
(1,607)
Basic losses per share (cents per share)
Diluted losses per share (cents per share)
5
5
(1.2)
(1.2)
(0.3)
(0.3)
The accompanying notes form an integral part of the Consolidated Statement of Comprehensive Income.
46
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
CONSOLIDATED STATEMENT OF FINANCIAL POSITION
As at 30 June 2019
CURRENT ASSETS
Cash and cash equivalents
Trade receivables, contract assets and other receivables
Inventories, prepayments and other current assets
Assets classified as held for sale
Income tax receivable
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
Deferred tax asset
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Interest bearing loans and borrowings
Employee provisions
Other provisions and liabilities
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Interest bearing loans and borrowings
Employee provisions
Other provisions and liabilities
Derivative financial instruments
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Retained losses
Reserves
TOTAL EQUITY
Note
2019
$’000
2018
$’000
4(c)
7
4(b)
11
11
1,450
35,524
5,282
250
4,450
1,670
37,067
1,882
815
4,450
46,956
45,884
152,079
28
167,488
7
152,107
167,495
199,063
213,379
13,868
5,167
8,147
4,539
14,594
3,131
9,178
4,844
31,721
31,747
32,709
307
344
110
35,443
257
657
85
33,470
36,442
65,191
68,189
133,872
145,190
13(a)
312,057
(180,601)
2,416
318,065
(174,871)
1,996
133,872
145,190
The accompanying notes form an integral part of the Consolidated Statement of Financial Position.
47
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
CONSOLIDATED STATEMENT OF CASH FLOWS
Year Ended 30 June 2019
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Interest paid
Interest received
Income tax paid
Note
2019
$’000
2018
$’000
203,836
(187,269)
(3,333)
11
-
194,568
(179,586)
(3,539)
8
-
Net cash provided by operating activities
9
13,245
11,451
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from the sale of property, plant and equipment
Net cash (used in) investing activities
Cash flows from financing activities
Payments for shares bought back
Proceeds from borrowings
Repayment of borrowings
Payment of transaction costs related to share buy-back and borrowings
Net cash (used in) financing activities
Net decrease in cash and cash equivalents
Cash and cash equivalents at the beginning of the period
Cash and cash equivalents at the end of the period
The accompanying notes form an integral part of the Consolidated Statement of Cash Flows.
(10,765)
6,346
(5,516)
2,442
(4,419)
(3,074)
(5,978)
14,135
(16,959)
(244)
-
4,979
(13,844)
-
(9,046)
(8,865)
(220)
1,670
(488)
2,158
1,450
1,670
48
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
Year Ended 30 June 2019
Note
Issued
Capital
$’000
Retained
Earnings
Cash Flow
Hedge
Reserve
Employee
Equity
Benefits
Reserve
$’000
$’000
$’000
Total
Equity
$’000
318,065
(173,324)
-
1,123
145,864
-
-
-
-
18(b)
(1,547)
-
(1,547)
-
(60)
(60)
-
-
-
(1,547)
(60)
(1,607)
-
-
933
933
318,065
(174,871)
(60)
2,056
145,190
At 1 July 2017
Loss for the year
Other comprehensive loss
Total comprehensive loss
Transactions with owners in their
capacity as owners:
Cost of share based payments
At 30 June 2018
Adjustment on initial application of
AASB 9
12(a)
-
(400)
Adjusted balance at 1 July 2018
318,065
(175,271)
Loss for the year
Other comprehensive loss
Total comprehensive loss
Transactions with owners in their
capacity as owners:
Cost of share based payments
Share buy-back including transaction
costs and net of tax
18(b)
13(a)
-
-
-
-
(6,008)
(5,330)
-
(5,330)
-
-
-
(60)
-
(17)
(17)
-
-
-
(400)
2,056
144,790
-
-
-
(5,330)
(17)
(5,347)
437
437
-
(6,008)
At 30 June 2019
312,057
(180,601)
(77)
2,493
133,872
The accompanying notes form an integral part of the Consolidated Statement of Changes in Equity.
49
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS
Year Ended 30 June 2019
ABOUT THIS REPORT
The financial report of Boom Logistics Limited and its subsidiaries (“the Group”) for the year ended 30 June 2019 was authorised for
issue in accordance with a resolution of the Board of Directors on 21 August 2019.
Boom Logistics Limited is a company domiciled in Australia and limited by shares incorporated in Australia whose shares are publicly
traded on the Australian Stock Exchange.
The Group is a for-profit entity and the nature of its operations and principal activities are described in note 1.
The financial report is a general purpose financial report which has been prepared in accordance with Australian Accounting Standards
(AASBs) adopted by the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The consolidated financial
report complies with International Financial Reporting Standards (IFRSs) and interpretations adopted by the International Accounting
Standards Board (IASB).
The financial report has been prepared in accordance with the historical cost convention rounded to the nearest thousand dollars
($’000) in accordance with ASIC Corporations Instrument 2016/191 unless otherwise stated, except for derivative financial instruments
and assets classified as held for sale which are measured at fair value. The financial report is presented in Australian dollars which is
the Company’s functional currency.
Boom’s Directors have included information in this report that they deem to be material and relevant to the understanding of the
financial report. Disclosure may be considered material and relevant if the dollar amount is significant due to size or nature, or the
information is important to understand the:
• Group’s current year results;
•
• aspects of the Group’s operations that are important to future performance.
impact of significant changes in Boom’s business; or
Disclosure of information that is not material may undermine the usefulness of the financial report by obscuring important information.
Accounting policies and critical accounting judgements applied to the preparation of the financial report have been moved to where
the related accounting balance or financial statement matter is discussed.
50
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION A: FINANCIAL PERFORMANCE
This section provides the information that is most relevant to understanding the financial performance of the Group during the financial year.
1. SEGMENT REPORTING
Description of operating segments
Management has determined the operating segments based on the reports reviewed by the Chief Operating Decision Maker
(“CODM”) to make decisions about resource allocation and to assess performance. The CODM who is responsible for allocating
resources and assessing performance of the operating segments is the Managing Director and CEO.
The business is considered from a product perspective and has two reportable segments:
•
“Lifting Solutions”, which consists of all lifting activities including the provision of cranes, travel towers, access equipment and all
associated services; and
“Labour Hire”, which includes the provision of skilled labour with a wide range of trades, such as, electricians, boiler makers,
mechanics, plus the traditional crane and travel tower operators, riggers, truck drivers.
•
The segment information provided to the CODM is measured in a manner consistent with that of the financial statements.
All inter-segment sales are carried out at arm’s length prices.
Note
Lifting
Solutions
Labour
Services
Other *
Elimination Consolidated
$’000
$’000
$’000
$’000
$’000
Segment information
Year ended 30 June 2019
Segment revenue
Total external revenue
Inter-segment revenue
Total segment revenue
Other income
Total revenue and other income
Segment result
Operating result
Net profit on disposal of property, plant and
equipment
Depreciation and amortisation
Restructuring expense
Employee benefit expense – retirement
provision
Impairment of property, plant and equipment
Net interest
Income tax benefit
Loss from continuing operations
Segment assets and liabilities
Segment assets
Segment liabilities
180,516
-
2,206
22,543
180,516
24,749
-
-
-
-
(22,543)
(22,543)
3(a)
26,669
1,076
(6,263)
(2,010)
(16,771)
(1,117)
-
(1,975)
-
(8)
-
-
-
-
(561)
-
(675)
-
182,722
-
182,722
4,242
186,964
21,482
(2,010)
(17,340)
(1,117)
(675)
(1,975)
(1,635)
(3,695)
-
(5,330)
-
-
-
-
-
-
-
(Loss) / profit before net interest and tax
4,796
1,068
(7,499)
191,159
58,492
1,949
928
7,704
5,771
(1,749)
-
199,063
65,191
Additions to non-current assets
12,461
-
464
-
12,925
* Other represents centralised costs including national office and shared services.
51
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION A: FINANCIAL PERFORMANCE (CONTINUED)
1. SEGMENT REPORTING (CONTINUED)
Segment information (continued)
Note
Lifting
Solutions
Labour
Services
Other *
Elimination Consolidated
Year ended 30 June 2018
$’000
$’000
$’000
$’000
$’000
Segment revenue
Total external revenue
Inter-segment revenue
Total segment revenue
Other income
Total revenue and other income
Segment result
Operating result
Net profit on disposal of property, plant and
equipment
Depreciation and amortisation
Restructuring expense
Net interest
Income tax benefit
Loss from continuing operations
Segment assets and liabilities
Segment assets
Segment liabilities
180,372
-
2,674
19,530
180,372
22,204
-
-
-
-
(19,530)
(19,530)
3(a)
26,974
1,269
(7,396)
155
(17,681)
(310)
-
(8)
-
7
(514)
(60)
183,046
-
183,046
170
183,216
20,847
162
(18,203)
(370)
2,436
(3,983)
-
(1,547)
-
-
-
-
-
Profit / (loss) before net interest and tax
9,138
1,261
(7,963)
205,699
62,448
2,849
866
7,576
4,875
(2,745)
-
213,379
68,189
Additions to non-current assets
5,380
-
1,140
-
6,520
* Other represents centralised costs including national office and shared services.
52
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION A: FINANCIAL PERFORMANCE (CONTINUED)
2. REVENUE FROM CONTRACTS WITH CUSTOMERS
(a) Disaggregation of revenue from contracts with customers
Boom Logistics Limited is domiciled in Australia and all core revenue is derived from customers within Australia. The Group derives
revenue from the transfer of services over time in the following industry segments:
Industry segment
Year ended 30 June 2019
Mining & resources
Wind, energy, & utilities
Infrastructure & construction
Industrial maintenance
Telecommunications
Other
Lifting
Solutions
Labour
Services Consolidated
$’000
$’000
$’000
87,333
34,161
23,822
20,896
13,176
1,128
44
-
951
1,200
-
11
87,377
34,161
24,773
22,096
13,176
1,139
Total revenue from contracts with customers
180,516
2,206
182,722
Timing of revenue recognition
Services transferred over time
Year ended 30 June 2018
Mining & resources
Wind, energy, & utilities
Infrastructure & construction
Industrial maintenance
Telecommunications
Other
180,516
2,206
182,722
98,750
25,898
24,992
19,343
10,037
1,352
1,335
-
148
1,190
-
1
100,085
25,898
25,140
20,533
10,037
1,353
Total revenue from contracts with customers
180,372
2,674
183,046
Timing of revenue recognition
Services transferred over time
(b) Contract balances
Trade and other receivables
Contract assets
Total trade receivables, contract assets and other receivables
180,372
2,674
183,046
Note
(i)
2019
$’000
29,382
6,142
2018
$’000
36,352
715
35,524
37,067
(i) Contract assets relate to the Group’s right to consideration for work completed but not billed at the reporting date. The contract
assets are transferred to trade receivables when the rights become unconditional. This usually occurs when the Group issues the
invoices to the customers.
53
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION A: FINANCIAL PERFORMANCE (CONTINUED)
2. REVENUE FROM CONTRACTS WITH CUSTOMERS (CONTINUED)
Recognition and measurement
Revenue from the hire of lifting/access equipment, labour and other services provided is recognised where the right to be
compensated for the services can be reliably measured. This typically occurs when the job dockets or timecards are approved by the
customers. If the services under a single arrangement are rendered in different reporting periods, then the consideration is allocated on
a relative fair value basis.
Revenue from the installation of wind towers is recognised by reference to the stage of completion of the contract. The stage of
completion is measured by reference to work completed on each stage of a wind tower unit calculated as a percentage of the total
wind towers included under the contract.
The total consideration in the services above is allocated based on their standalone selling prices. The stand-alone selling prices are
determined based on the list prices at which the Group sells the services in separate transactions. The fair value and the stand-alone
selling prices of both types of services are considered broadly similar.
Key estimate and judgement
Determining the stage of completion requires an estimate of the wind tower units completed to date as a percentage of the total wind
tower units under the contract. Where variations and claims are made to the contract, assumptions are made regarding the probability
that the customer will approve the variations and claims and the amount of revenue that will arise. Changes in these estimation
methods could have a material impact on the financial statements.
3. OTHER INCOME AND EXPENSES
(a)
(b)
Other income
Profit on disposal of plant and equipment
Interest income
Insurance settlement
Legal settlement
Expenses
External equipment hire
External labour hire
Maintenance
Fuel
External transport
Employee travel and housing
Other reimbursable costs (on-charged to customers)
Other equipment services and supplies
2019
$’000
2018
$’000
-
11
2,589
1,642
4,242
10,249
3,895
9,957
3,459
8,199
2,275
1,517
4,895
162
8
-
-
170
8,385
9,398
11,703
3,598
7,527
1,053
3,429
3,899
Total equipment services and supplies expense
44,446
48,992
Employee related
Insurance and compliance
IT and communications
Occupancy
Other overheads
Loss on disposal of plant and equipment
Total other expense
54
3,397
3,839
2,633
1,322
1,958
2,010
3,736
2,611
2,244
1,494
1,968
-
15,159
12,053
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION A: FINANCIAL PERFORMANCE (CONTINUED)
4.
(a)
INCOME TAX
Income tax benefit
Current income tax
Current income tax expense / (benefit)
Adjustments in respect of current income tax of previous years
Deferred income tax
Relating to origination and reversal of temporary differences
2019
$’000
2018
$’000
134
(120)
(14)
-
10
(10)
-
-
A reconciliation between tax benefit and the accounting loss before income tax
is as follows:
Accounting loss before tax from continuing operations
(5,330)
(1,547)
At the Group’s statutory income tax rate of 30% (2018: 30%)
Expenditure not allowable for income tax purposes
Adjustments in respect of current income tax of previous years
Current year losses for which no deferred tax asset is recognised
Derecognition of tax losses recognised in previous years
Income tax benefit
(1,599)
35
(120)
569
1,115
-
(464)
40
(10)
70
364
-
Opening
Balance
Recognised
in Income
Statement
Recognised
in Equity
$’000
$’000
$’000
Closing
Balance
$’000
(b)
Deferred income tax
Year ended 30 June 2019
– Employee leave provisions
– Allowance for impairment on financial assets
– Liability accruals
– Restructuring provisions
– Tax losses
– Plant and equipment
– Derivative financial instruments
2,831
123
735
38
7,523
(11,269)
26
(295)
50
(287)
208
(1,115)
1,453
-
Net deferred tax asset / (liabilities)
7
14
Year ended 30 June 2018
– Employee leave provisions
– Allowance for impairment on financial assets
– Liability accruals
– Restructuring provisions
– Tax losses
– Plant and equipment
– Derivative financial instruments
Net deferred tax asset / (liabilities)
2,360
141
224
112
7,887
(10,743)
-
(19)
471
(18)
511
(74)
(364)
(526)
-
-
-
-
-
-
-
-
7
7
-
-
-
-
-
-
26
26
2,536
173
448
246
6,408
(9,816)
33
28
2,831
123
735
38
7,523
(11,269)
26
7
55
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION A: FINANCIAL PERFORMANCE (CONTINUED)
4.
INCOME TAX (CONTINUED)
Income tax receivable
(c)
Income tax receivable represents the anticipated tax refund in respect of the FY2019 year of $4.450 million (2018: $4.450 million)
which was paid prior to 30 June 2019 to offset a franking deficit position at that time. The prepayment of tax instalments will continue
until the franking deficit is permanently extinguished.
(d) Tax losses
The Group has total tax losses of $29.537 million tax effected (2018: $28.968 million). $6.408 million of these losses have been
recognised on balance sheet and $23.129 million has not been recognised as a deferred tax asset based on an assessment of the
probability that sufficient taxable profit will be available to allow the tax losses to be utilised in the near future. The unused tax losses
remain available indefinitely.
Recognition and measurement
Current tax assets and liabilities for the current and prior periods are measured at the amount expected to be recovered from or
paid to the taxation authorities. The tax rates and tax laws used to compute the amount are those that are enacted or substantively
enacted by the balance sheet date.
Deferred tax is provided on all temporary differences at the balance sheet date between the tax bases of assets and liabilities and their
carrying amounts for financial reporting purposes.
Deferred tax assets and liabilities are recognised for all deductible / taxable temporary differences except where they arise from the
initial recognition of an asset or liability in a transaction that is not a business combination and, at the time of the transaction, affects
neither the accounting profit nor taxable profit or loss.
The carrying amount of deferred tax assets is reviewed at each balance sheet date and reduced to the extent that it is no longer
probable that sufficient taxable profit will be available to allow all or part of the deferred tax asset to be utilised.
Unrecognised deferred tax assets are reassessed at each balance sheet date and are recognised to the extent that it has become
probable that future taxable profit will allow the deferred tax asset to be recovered.
Income taxes relating to items recognised directly in equity are recognised in equity and not in the statement of comprehensive
income.
Tax consolidation legislation
Boom Logistics Limited and its wholly-owned Australian controlled entities have implemented the tax consolidation legislation.
The head entity, Boom Logistics Limited, and the controlled entities in the tax consolidated group have entered into a tax funding
agreement such that each entity in the tax consolidated group recognises the assets, liabilities, revenues and expenses in relation to its
own transactions, events and balances only.
Key estimate and judgement
Deferred tax assets are recognised for deductible temporary differences and unused tax losses only if it is probable that future taxable
profits will be available to utilise those temporary differences and losses, and the losses continue to be available having regard to their
nature and timing of origination. Judgement is required to determine the amount of deferred tax assets that can be recognised based
upon the likely timing and the level of future taxable profits. Utilisation of tax losses also depends on the ability of the Group to satisfy
certain tests at the time the losses are recouped.
56
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION A: FINANCIAL PERFORMANCE (CONTINUED)
5. EARNINGS PER SHARE
Basic earnings per share amounts are calculated by dividing net profit for the year attributable to ordinary equity holders of the parent
by the weighted average number of ordinary shares outstanding during the year.
Diluted earnings per share amounts are calculated by dividing the net profit for the year attributable to ordinary equity holders of the
parent by the weighted average number of ordinary shares outstanding during the year plus the weighted average number of ordinary
shares that would be issued on the conversion of all the dilutive potential ordinary shares into ordinary shares.
The following reflects the income and share data used in the calculation of basic and diluted earnings per share:
Net loss after tax
Weighted average number of ordinary shares used in calculating basic
earnings per share
Effect of dilutive securities:
– employee share awards
Adjusted weighted average number of ordinary shares used in
calculating diluted earnings per share
Number of ordinary shares at financial year end
Note
2019
$’000
2018
$’000
(5,330)
(1,547)
No. of shares
462,894,795
474,868,764
(i)
-
-
462,894,795 474,868,764
439,193,800 474,868,764
(i) The total number of granted rights and options at 30 June 2019 and 30 June 2018 were excluded from the diluted weighted
average number of ordinary shares calculation as their effect was anti-dilutive.
6. DIVIDENDS
There were no dividends paid or proposed during the year.
The amount of franking credits available for the subsequent financial year are:
– Franking credits as at the end of the financial year at 30% (2018: 30%)
2
2
– Franking deficits that will arise from the receipt of income tax receivable as at the
end of the financial year
4(c)
(4,450)
(4,450)
(4,448)
(4,448)
57
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION B: OPERATING ASSETS AND LIABILITIES
This section provides information relating to the key operating assets used and liabilities incurred to support delivering the financial
performance of the Group.
7.
PROPERTY, PLANT
AND EQUIPMENT
Year ended 30 June 2019
Opening carrying amount
Additions
Disposals
Transfers
Impairment
Depreciation charge for the year
Note
Rental
Equipment
Motor
Vehicles
Machinery,
Furniture,
Fittings &
Equipment
Freehold
Land &
Buildings
$’000
$’000
$’000
$’000
Total
$’000
(i)
8
159,559
11,395
(8,642)
(676)
(975)
(15,661)
3,896
885
(76)
282
-
(909)
1,228
645
(68)
162
-
(648)
2,805
-
-
(1)
(1,000)
(122)
167,488
12,925
(8,786)
(233)
(1,975)
(17,340)
Closing carrying amount
145,000
4,078
1,319
1,682
152,079
At cost
Accumulated depreciation
Closing carrying amount
316,839
(171,839)
21,534
(17,456)
5,932
(4,613)
3,120
(1,438)
347,425
(195,346)
145,000
4,078
1,319
1,682
152,079
Year ended 30 June 2018
Opening carrying amount
Additions
Disposals
Transfers
Depreciation charge for the year
169,121
4,261
(213)
1,608
(15,218)
4,879
998
(140)
185
(2,026)
699
1,261
(59)
164
(837)
2,927
-
-
-
(122)
177,626
6,520
(412)
1,957
(18,203)
Closing carrying amount
159,559
3,896
1,228
2,805
167,488
At cost
Accumulated depreciation
Closing carrying amount
350,753
(191,194)
19,855
(15,959)
6,011
(4,783)
3,120
(315)
379,739
(212,251)
159,559
3,896
1,228
2,805
167,488
(i) Disposals during the year totalled $9.584 million which comprises $8.786 million from property, plant and equipment
and $0.798 million from assets classified as held of sale. At reporting date, $1.2 million (2018: $nil) of proceeds from sale
had not been received and are disclosed in “Inventories, prepayments and other current assets” on the Consolidated
Statement of Financial Position.
58
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION B: OPERATING ASSETS AND LIABILITIES (CONTINUED)
7. PROPERTY, PLANT AND EQUIPMENT (CONTINUED)
Property, plant and equipment with a carrying amount of $148.341 million (2018: $167.488 million) is pledged as securities for current
and non-current interest bearing loans and borrowings as disclosed in note 11. Additionally, plant and equipment held under finance
leases with a carrying value of $3.738 million (2018: $nil) is pledged as security against the finance lease contracts.
Assets classified as held for sale
The balance in the Group’s assets classified as held for sale account at 30 June 2019 is $0.250 million (2018: $0.815 million). All
assets classified as assets held for sale have been reviewed to ensure they are being carried at their recoverable amount less any
selling costs.
Recognition and measurement
Property, plant and equipment are measured at cost less accumulated depreciation and any accumulated impairment losses. Cost
includes expenditure that is directly attributable to the acquisition of the asset. Land is measured at cost.
When a major overhaul is performed on an asset, the cost is recognised in the carrying amount of property, plant and equipment
only if the major overhaul extends the expected useful life of the asset or if the continuing operation of the asset is conditional upon
incurring the expenditure. Similarly, when each major inspection is performed, its cost is recognised in the carrying amount of property,
plant and equipment as a replacement only if it is eligible for capitalisation. The cost of the day-to-day servicing or the replacement of
consumable parts of property, plant and equipment is recognised in profit or loss as incurred.
Depreciation is recognised in the statement of comprehensive income on a straight line basis over the estimated useful life of each part
of an item of property, plant and equipment as follows:
Buildings
Mobile Cranes
Travel Towers
Access and Ancillary Equipment
Vehicles
Office and Workshop Equipment
Leasehold Improvements
Computer Equipment
20 Years
10 to 15 Years
10 to 20 Years
10 Years
5 to 10 Years
3 to 10 Years
Lease term
3 to 5 Years
Depreciation methods, useful lives and residual values are reviewed at each reporting date and at more regular intervals when there is
an indicator of impairment or when deemed appropriate.
Gains or losses on sale of property, plant and equipment are included in the statement of comprehensive income in the year the asset
is disposed of.
Key estimate and judgement
The Group determines the estimated useful lives of assets and related depreciation charges for its property, plant and equipment
based on the accounting policy stated above. These estimates are based on projected capital equipment lifecycles for periods up to
twenty years based on useful life assumptions.
Residual values are determined based on the value the Group would derive upon ultimate disposal of the individual piece of property,
plant and equipment at the end of its useful life. The achievement of these residual values is dependent upon the second hand
equipment market at any given point in the economic cycle.
Management will increase the depreciation charge where useful lives are less than previously estimated lives or there is indication that
residual values can not be achieved.
59
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION B: OPERATING ASSETS AND LIABILITIES (CONTINUED)
8.
IMPAIRMENT TESTING OF ASSETS
Recognition and measurement
The carrying amounts of the Group’s non-financial assets, other than deferred tax assets and inventories, are reviewed at each
reporting date to determine whether there is any indication of impairment. If any such indication exists then the asset’s recoverable
amount is estimated.
For the purpose of impairment testing, assets are grouped together into the smallest group of assets that generates cash inflows from
continuing use that are largely independent of the cash inflows from other assets or groups of assets (the “cash-generating unit”).
Following the appointment of Tony Spassopoulos as CEO and Managing Director in the first half of 2019 financial year the Group has
completed the re-organisation and rationalisation of its reporting and operating structure. The Group’s asset hire businesses have been
organised by region under a responsible regional General Manager.
Consequently, the CGUs have been changed to a metropolitan region that services principally telecommunication, power and utilities
customers under national service agreements requiring travel tower assets. In the other regions, being East Coast, Southern and
Western Australia, service contracts within and across regions generally use a bundle of asset types with assets of the same capacity
generally interchangeable.
The labour hire business is maintained as a separate operating segment and CGU. Each region is supported by shared regional
resources in addition to national shared services comprising business development, fleet management, information technology,
finance and administration services. In making this change to CGU classification no prior period impairment risk has arisen.
The recoverable amount of an asset or cash-generating unit or a group of cash-generating units is the greater of its value in use and its
fair value less costs of disposal. In assessing value in use, the estimated future cash flows are discounted to their present value using a
post-tax discount rate that reflects current market assessments of the time value of money and the risks specific to the asset.
An impairment loss is recognised if the carrying amount of an asset, cash-generating unit or a group of cash-generating units exceeds
its recoverable amount. Impairment losses are recognised in the statement of comprehensive income. Impairment losses recognised
in respect of cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the units and then to
reduce the carrying amount of the other assets in the unit (group of units) on a pro rata basis.
Key estimate and judgement
The carrying values of the CGU’s fixed assets were tested at 30 June 2019 by reference to management’s assessment of their fair
value less costs of disposal. Fair value was determined after considering information from a variety of sources including a valuation of
all cranes and travel tower assets obtained from an independent valuer dated 31 May 2019. The Group did not make any allowance
for costs to sell as they were deemed immaterial given the Group’s in house expertise and track record of successful asset sales. The
Group has classified the assessment as Level 2 in the fair value hierarchy (as per AASB 13) where “inputs other than quoted prices in
active markets that are observable for the asset either directly or indirectly”.
The independent valuation supported the carrying value of the CGU’s crane and travel tower assets as stated in the consolidated
statement of financial position. The evaluation is consistent with the Group’s assessment of the economic environment, lengthening
lead times for new equipment and second hand asset values. Consequently, no impairment adjustment to the carrying value of
operating fleet was considered necessary at 30 June 2019. An impairment charge of $1.975 million was recognised in the period of
which $0.975 million related to damage incurred to one particular crane asset that will be repaired and placed back into service, and
$1.0 million related to land and building in Newman Western Australia further to an assessment of the fair value of similar properties in
the region based on recent sale values. The carrying value of the land and building post impairment is $1.682 million.
60
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION B: OPERATING ASSETS AND LIABILITIES (CONTINUED)
Note
2019
$’000
2018
$’000
9.
RECONCILIATION OF THE NET CASH FLOWS FROM OPERATIONS WITH NET LOSS AFTER TAX
Net loss after tax
(5,330)
(1,547)
Non cash items
Depreciation and amortisation of non-current assets
Impairment of property, plant and equipment
Borrowing costs – amortisation
Net loss/(profit) on disposal of property, plant and equipment
Share based payments
11(f)
3
18(b)
Changes in assets and liabilities
Decrease / (increase) in trade receivables, contract assets and other receivables
(Increase) in inventories, prepayments and other assets
(Increase) in current and deferred tax balances
(Decrease) / increase in trade and other payables
(Decrease) / increase in provisions and other liabilities
17,340
1,975
373
2,010
437
1,143
(2,181)
(21)
(948)
(1,553)
18,203
-
330
(162)
933
(6,695)
(47)
(27)
175
288
Net cash flow from operating activities
13,245
11,451
10. COMMITMENTS
(a)
Operating leases commitments
The Group has entered into commercial leases on certain plant and equipment, motor vehicles
and property. These leases have terms ranging from 1 to 5 years.
Minimum lease payments
– within one year
– after one year but not more than five years
Aggregate operating lease expenditure contracted for at reporting date
(b)
Finance leases commitments
The Group has finance lease commitments for certain plant and equipment for periods
between 4 to 5 years:
– within one year
– after one year but not more than five years
Total minimum lease payments
future finance charges
–
Net liability
11(d)
13,646
14,239
6,569
8,514
27,885
15,083
741
3,677
4,418
(692)
3,726
193
224
417
(24)
393
61
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION B: OPERATING ASSETS AND LIABILITIES (CONTINUED)
10. COMMITMENTS (CONTINUED)
(c)
Capital commitments
There is no capital expenditure contracted for at reporting date but not recognised in the
financial statements:
Property, plant and equipment
– within one year
2019
$’000
2018
$’000
-
-
1,829
1,829
Recognition and measurement
Operating lease payments are recognised as an expense in the statement of comprehensive income on a straight line basis over the
lease term.
Finance lease payments are apportioned between finance charges and reduction of the lease liability so as to achieve a constant
rate of interest on the remaining balance of the liability. Finance charges are recognised in financing expenses in the statement of
comprehensive income.
62
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION C: FUNDING STRUCTURES
This section provides information relating to the Group’s funding structure and its exposure to financial risk, how they affect the Group’s
financial position and performance and how the risks are managed.
11. NET DEBT
Current
Other loans
Total current interest bearing liabilities
Non current
Other loans
Secured bank loans
Prepaid borrowing costs
Total non-current interest bearing liabilities
Total interest bearing liabilities
Less: cash and cash equivalents
Net debt
2019
$’000
2018
$’000
5,167
3,131
5,167
3,131
21,923
11,000
(214)
30,831
5,000
(388)
32,709
35,443
37,876
38,574
(1,450)
(1,670)
36,426
36,904
(a)
Debt facilities
At reporting date, the Group had the following debt facilities:
• $20 million, 3 year syndicated loan facility expiring on January 2022. The facility attracts a floating interest rate. The facility
limit amortises by between $nil and $2.5 million at each six month period on 1 January and 1 July dependant on the
earnings leverage ratio reported at the end of the preceding quarter. The Group does not expect any amortisation to apply to
the facility;
• $20 million, 3 year trade receivables loan facility expiring on January 2022. The facility incurs a fixed fee and floating interest
on funds drawn. There is no amortisation required over the life of this facility;
• $35 million asset finance facility with De Lage Landen, comprising finance and operating leases with varying expiry dates from
August 2021 to May 2024. The facility attracts fixed interest rates and drawn amounts amortise over a period of 2 to 5 years.
(b)
Covenant position
The Group was in compliance with all financial and non-financial banking covenants throughout the reporting period and as
at 30 June 2019.
(c)
Assets pledged as security
Fixed and floating charges are held over all of the Group’s assets, including cash at bank, trade receivables, contract assets
and other receivables, and assets classified as held for sale.
63
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION C: FUNDING STRUCTURES (CONTINUED)
11. NET DEBT (CONTINUED)
(d)
Terms and debt repayment schedule
Weighted
average
interest rate
Year of
maturity
Currency
AUD
AUD
AUD
AUD
4.71%
8.46%
5.98%
6.22%
January 2022
January 2022
2023 to 2024
August 2021
Syndicated debt
Trade receivables loan
Finance lease
Finance arrangement
Prepaid borrowing costs
Total interest bearing liabilities
(e)
Financing facilities available
At reporting date, the following financing facilities had been negotiated and were available:
Total facilities:
– bank overdraft
– bank loans and borrowings
Facilities drawn at reporting date:
– bank overdraft
– bank loans and borrowings
Facilities undrawn at reporting date:
– bank overdraft
– bank loans and borrowings
(i)
2019
$’000
2018
$’000
Carrying amount
11,000
7,617
3,726
15,747
(214)
5,000
13,856
393
19,713
(388)
37,876
38,574
2019
$’000
2018
$’000
1,000
75,000
1,000
51,356
76,000
52,356
-
38,090
-
38,962
38,090
38,962
1,000
28,619
1,000
12,394
29,619
13,394
(i) $7.2 million of the $35 million asset finance facility was undrawn at reporting date. $19.5 million was drawn as disclosed
above with a further $8.3 million utilised by operating lease commitments.
In addition, the Group has an existing $10.5 million working capital facility arrangement with National Australia Bank for letters
of credit, bank guarantees and credit card facilities. As at 30 June 2019, $7.609 million (2018: $5.487 million) was utilised.
(f)
Financing expense
Interest expense
Borrowing costs – amortisation (non-cash)
Borrowing costs – other
Total financing expense
64
2,521
373
812
2,855
330
806
3,706
3,991
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION C: FUNDING STRUCTURES (CONTINUED)
11. NET DEBT (CONTINUED)
Recognition and measurement
All loans and borrowings are initially recognised at fair value of the consideration received less directly attributable transaction costs. After
initial recognition, interest bearing loans and borrowings are subsequently measured at amortised cost using the effective interest method.
Gains and losses are recognised in the statement of comprehensive income when the liabilities are derecognised.
The fair value of all borrowings approximates their carrying amount at reporting date as the impact of any market discounting is not
significant.
12. FINANCIAL RISK MANAGEMENT
The Board of Directors has overall responsibility for the oversight of the Company’s risk management framework including the
identification and management of material business, financial and regulatory risks. Management reports regularly to the Risk
Committee and the Board of Directors on relevant activities.
Risk management guidelines have been further developed to identify and analyse the risks faced by the Group, to set appropriate risk
limits and controls, and to monitor risks and adherence to limits. Risk management guidelines are regularly reviewed to reflect changes
in market conditions and the Group’s activities.
The Group has exposure to the following risks from its use of financial instruments:
• Credit risk;
• Liquidity risk; and
• Market risk.
(a) Credit risk
Credit risk arises from the financial assets of the Group, which comprise cash and cash equivalents, trade receivables, contract
assets and other receivables, and derivative instruments. The Group’s exposure to credit risk arises from potential default of
the counter party, with a maximum exposure equal to the carrying amount of these instruments. Exposure at balance date is
addressed in each applicable note.
The Group’s policy is to trade with recognised, creditworthy third parties. It is the Group’s practice that all customers who wish
to trade on credit terms are subject to credit verification procedures. In addition, receivable balances are monitored on an
ongoing basis with the result that the Group’s exposure to bad debts is not significant.
Trade receivables and contract assets
The Group applies the simplified approach to measuring expected credit losses (“ECL”) which uses a lifetime expected loss
allowance for all trade receivables and contract assets.
To measure the expected credit losses, trade receivables and contract assets have been grouped based on shared credit
risk characteristics and the days past due. The contract assets relate to unbilled work in progress and have substantially the
same risk characteristics as the trade receivables for the same types of contracts. The Group has therefore concluded that the
expected loss rates for trade receivables are a reasonable approximation of the loss rates for the contract assets.
The Group established a provision matrix based on the historical credit loss experience and adjusted for forward looking factors
specific to the debtors and the economic environment. The Group considers trade receivables and contract assets are at
risk when contractual payments are 120 days past invoice date, subject to other internal or external information that indicate
otherwise.
Collectability is reviewed on an ongoing basis. Debts which are known to be uncollectible are written off by reducing the carrying
amount directly. An allowance for impairment is used when there is objective evidence that the Group will not be able to collect
all amounts due according to the original terms of the receivables.
65
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION C: FUNDING STRUCTURES (CONTINUED)
12. FINANCIAL RISK MANAGEMENT (CONTINUED)
(a) Credit risk (continued)
At reporting date, the credit risk exposure on the Group’s trade receivables and contract assets using a provision matrix is as follows:
30 June 2019
Current
30 days
60 days
90 days
120 days
+120 days
ECL
Rate
Trade
Receivables *
$’000
Contract
Assets
$’000
Total
$’000
Loss
Allowance
$’000
0.20%
0.25%
0.25%
0.75%
7.50%
20.00%
16,055
6,142
22,197
3,472
3,389
4,151
739
1,082
-
-
-
-
-
3,472
3,389
4,151
739
1,082
28,888
6,142
35,030
41
8
8
28
50
197
332
* Trade receivables are net of specific transactions totalling $0.245 million that have been fully provided and excluded from
above general provision calculation.
Other receivables of $0.8 million (2018: $nil) related to the unpaid portion of the legal settlement as disclosed in note 3(a). The
legal settlement was awarded by the court and is not considered a credit risk.
The movement in the allowance for impairment in respect of trade receivables and contract assets during the financial year is
as follows:
Balance at 1 July under AASB 139
Adjustment on initial application of AASB 9
Balance at 1 July under AASB 9
Impairment loss recognised
Amounts written-off and/or written back
Balance at 30 June
2019
$’000
409
400
809
257
(489)
577
Recognition and measurement
Trade receivables and contract assets are recognised initially at fair value and subsequently measured at amortised cost
using the effective interest method, less any allowance for impairment. Trade receivables are generally due for settlement within
30 – 90 days.
The amount of the impairment loss is recognised in the statement of comprehensive income within other expenses. When
a trade receivable or contract asset for which an allowance for impairment had been recognised becomes uncollectible in a
subsequent period, it is written off against the allowance account. Subsequent recoveries of amounts previously written off are
credited against other expenses in the statement of comprehensive income.
66
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION C: FUNDING STRUCTURES (CONTINUED)
12. FINANCIAL RISK MANAGEMENT (CONTINUED)
(b)
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s approach
to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet its financial obligations
as they fall due under both normal and stressed conditions without incurring unacceptable losses or damage to the Group’s
reputation. In order to meet these requirements management estimates the cash flows of the Group on a weekly, monthly and
three year rolling basis.
The Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of bank overdrafts,
bank loans, finance leases and trade receivables loan. At 30 June 2019, the Group’s balance sheet gearing ratio was 27% (net
debt / total equity) (2018: 25%).
The table below represents the undiscounted contractual settlement terms for financial liabilities based on the remaining period
at the reporting date to the contractual maturity date.
30 June 2019
Carrying
amount
Contractual
cash flows
$’000
$’000
6 mths
or less
$’000
Trade and other payables
13,868
(13,868)
(13,868)
110
(110)
(14)
6–12
mths
$’000
-
(28)
1–2
years
$’000
-
(46)
2–5
years
$’000
-
(23)
27,090
(30,409)
(3,577)
(3,577)
(7,153)
(16,103)
Secured bank loans
11,000
(12,186)
(230)
(230)
(459)
(11,268)
52,068
(56,573)
(17,689)
(3,835)
(7,658)
(27,394)
30 June 2018
Carrying
amount
Contractual
cash flows
$’000
$’000
6 mths
or less
$’000
Trade and other payables
14,594
(14,594)
(14,594)
85
(85)
(38)
6–12
mths
$’000
-
(27)
1–2
years
$’000
-
(20)
2–5
years
$’000
-
-
33,569
(38,042)
(2,611)
(2,611)
(18,283)
(14,537)
Secured bank loans
5,000
(5,265)
(132)
(132)
(5,001)
-
53,248
(57,986)
(17,375)
(2,770)
(23,304)
(14,537)
Recognition and measurement
Trade and other payables represent liabilities for goods and services provided to the Group prior to the end of financial year
which are unpaid. The amounts are unsecured and are usually payable within 60 days of recognition.
67
Derivatives
Other loans
Derivatives
Other loans
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION C: FUNDING STRUCTURES (CONTINUED)
12. FINANCIAL RISK MANAGEMENT (CONTINUED)
(c) Market risk
Market risk is the risk that changes in interest rates and foreign exchange rates will affect the Group’s income or the value of its
holdings of financial instruments.
Interest rate risk
At the reporting date, the interest rate profiles of the Group’s interest bearing financial instruments were:
Fixed rate instruments
Financial liabilities
Variable rate instruments
Financial assets – cash at bank and on hand
Financial liabilities
Note
(i)
(i)
Carrying amount
2019
$’000
2018
$’000
(19,473)
(20,106)
(19,473)
(20,106)
1,450
(18,617)
1,670
(18,856)
(17,167)
(17,186)
(i) Fixed and variable rate instruments represent interest bearing loans and borrowings of $38.090 million (2018: $38.962
million) as disclosed in note 11.
The Group’s main interest rate risk arises from short and long-term borrowings. Borrowings issued at variable rates expose the
Group to cash flow interest rate risk. This risk is managed by taking into consideration the current and expected future debt
profile, expectations regarding future interest rate movements, the mix between variable and fixed rate borrowings and the
potential to hedge against negative outcomes by entering into interest rate swaps.
In respect of variable rate instruments, a change of 100 basis points up or down in interest rates would have decreased or
increased the Group’s profit and loss before tax by $171,670 (2018: $171,860).
The Group will continue to monitor debt levels and assess the need to enter into further interest rate swap contracts, or other
derivative instruments, based on forecast debt levels and prevailing market conditions at that time.
Foreign exchange rate risk
Foreign exchange risk arises when future commercial transactions and recognised liabilities are denominated in a currency that
is not the entity’s functional currency. The Group has transactional currency exposures arising from operating lease of plant and
equipment denominated in Euros.
In order to protect against exchange rate movements, the Group has entered into forward exchange contracts to purchase
Euros. These contracts are hedging highly probable forecasted transactions and are timed to mature when payments are
scheduled to be made. The forward exchange contracts are considered to be fully effective cash flow hedges and any gain or
loss on the contracts is taken directly to equity.
The Group’s exposure to foreign exchange rate risk at reporting date, expressed in Australian dollars, was $0.299 million (2018:
$0.137 million) and the forward exchange contracts had a fair value of $0.018 million payable (2018: $0.085 million payable).
Sensitivity
Movements in the Australian dollar against the Euro would not result in a material difference to the balances stated in the
consolidated statements of changes in equity and comprehensive income.
68
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION C: FUNDING STRUCTURES (CONTINUED)
12. FINANCIAL RISK MANAGEMENT (CONTINUED)
(c) Market risk (continued)
Recognition and measurement
Derivatives designated as hedging instruments are classified as cash flow hedges.
At the inception of each hedging transaction, the Group documents the relationship between the hedging instruments and
hedged items, its risk management objectives and its strategy for undertaking the hedge transactions. The Group also
documents its assessment, both at hedge inception and on an ongoing basis, of whether the derivatives that are used in
hedging transactions have been and will continue to be highly effective in offsetting changes in fair value or cash flows of
hedged items.
The effective portion of changes in the fair value of the derivatives that are designated and qualify as cash flow hedges is
recognised in other comprehensive income and accumulated in the cash flow hedge reserve in equity. The gain or loss relating
to the ineffective portion is recognised immediately in profit or loss.
The Group does not speculate in the trading of derivative instruments.
Derivatives are carried at fair value and categorised as level 2 in the fair value hierarchy under AASB 13 where “inputs other than
quoted prices in active markets that are observable for the asset either directly or indirectly”.
13. CONTRIBUTED EQUITY
(a)
Issued and paid up capital
Note
2019
No. of
shares
$’000
2018
No. of
shares
$’000
Beginning of the financial year
Shares bought back on-market and cancelled
Buy-back transaction costs
Tax credits recognised directly in equity
(i)
474,868,764
(35,674,964)
-
-
318,065
(5,978)
(44)
14
474,868,764
-
-
-
318,065
-
-
-
End of the financial year
439,193,800
312,057
474,868,764
318,065
(i) During the financial year, Boom purchased and cancelled 35,674,964 ordinary shares as a result of the following share
buy-back schemes. The total cost, including transaction costs, was $6,022,000. These costs were deducted from
contributed equity.
• Minimum share holding buy-back of 1,094,557 ordinary shares priced at $0.22 per share. This share buy-back
scheme has been completed.
• On market share buy-back of 34,580,407 ordinary shares priced between $0.15 and $0.19 per share. This share buy-
back scheme is currently on going and is expected to be completed by 5 December 2019 or earlier if the maximum
number of shares being 46 million shares is bought back prior to that date.
All issued shares are fully paid. Fully paid ordinary shares carry one vote per share and carry the right to dividends.
69
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION C: FUNDING STRUCTURES (CONTINUED)
13. CONTRIBUTED EQUITY (CONTINUED)
(b) Capital Management
For the purposes of capital management, capital includes issued capital and all other equity reserves attributable to the equity
holders of the parent. The primary objective of the Group’s capital management policy is to maximise shareholder value.
The Group manages its capital structure and makes adjustments in light of changes in economic conditions and the
requirements of the financial covenants included in its agreements with financiers. Adjustments to the Group’s capital structure
can be made subject to meeting the restrictions included in the Group’s financing agreements. These require the Group to
maintain the ratio of gross debt to trading EBITDA at less than 2.5 times with the aggregate total of distributions not exceeding
$15 million over the term of the facilities (to January 2022). Further, the total value of dividends paid in any financial year must
not exceed 50% of the net profit after tax earned in the prior financial year.
The Group monitors capital on the basis of the balance sheet gearing ratio. This ratio is calculated as net debt divided by total
equity. At 30 June 2019, the Group’s balance sheet gearing ratio was 27% (2018: 25%). The Group’s policy is to maintain a
gearing ratio of between 20%-30%.
The Group’s capital management, amongst other things, aims to ensure that it meets its financial covenants. The Group will
also manage its capital structure through returns to shareholders, as economic conditions and trading results improve.
SECTION D: OTHER DISCLOSURES
This section provides additional financial information that is required by the Australian Accounting Standards and management
considers relevant for shareholders.
14. SUBSIDIARIES
Name
AKN Pty Ltd
Sherrin Hire Pty Ltd
Shutdown Staffing Pty Ltd
Boom Logistics (VIC) Pty Ltd
Country of
incorporation
Australia
Australia
Australia
Australia
Equity interest
2019
%
100
100
100
100
2018
%
100
100
100
100
Boom Logistics Limited is the ultimate parent company.
Recognition and measurement
The consolidated financial statements comprise the financial statements of Boom Logistics Limited and its subsidiaries as at
30 June each year.
Subsidiaries are entities controlled by the Group. Control exists when the Group is exposed to, or has rights to, variable returns from its
involvement with the entity and has the ability to affect those returns through its power to direct the activities of the entity. The financial
statements of subsidiaries are included in the consolidated financial statements from the date that control commences until the date
that control ceases. The accounting policies of subsidiaries have been changed when necessary to align them with the policies
adopted by the Group.
In the parent company financial statements, investments in subsidiaries are carried at cost less impairments.
The acquisition method of accounting is used to account for the acquisition of subsidiaries by the Group.
Intra-group balances, and any unrealised income and expenses arising from intra-group transactions, are eliminated in preparing the
consolidated financial statements.
70
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION D: OTHER DISCLOSURES (CONTINUED)
15. DEED OF CROSS GUARANTEE
Pursuant to ASIC Corporations Instrument 2016/785 (“Corporations Instrument”), the wholly owned subsidiaries listed below are
relieved from the Corporations Act 2001 requirements for preparation, audit and lodgement of financial reports and Directors’ report.
It is a condition of the Corporations Instrument that Boom Logistics Limited and each of the subsidiaries enter into a Deed of Cross
Guarantee. The effect of the Deed is that Boom Logistics Limited guarantees to each creditor payment in full of any debt in the event
of winding up of any of the subsidiaries under certain provisions of the Corporations Act 2001. The subsidiaries have also given similar
guarantees in the event that Boom Logistics Limited is wound up.
The subsidiaries subject to the Deed are:
• Sherrin Hire Pty Ltd (party to the Deed on 6 December 2005);
• AKN Pty Ltd (party to the Deed on 3 November 2006 by virtue of a Deed of Assumption);
• Shutdown Staffing Pty Ltd (party to the Deed on 23 November 2007 by virtue of a Deed of Assumption);
and together with Boom Logistics Limited, represent a “Closed Group” for the purposes of the Corporations Instrument.
The consolidated statement of comprehensive income and balance sheet of the entities that are members of the “Closed Group” are
as follows:
Consolidated Statement of Comprehensive Income
Revenue
Other income
Salaries and employee benefits expense
Equipment service and supplies expense
Operating lease expense
Other expenses
Restructuring expense
Depreciation and amortisation expense
Impairment expense
Financing expenses
Loss before income tax
Income tax benefit
Net loss for the year
Other comprehensive loss
Cash flow hedges recognised in equity
Other comprehensive loss for the year, net of tax
Total comprehensive loss for the year
Retained losses at the beginning of the year
Adjustment on initial application of AASB 9
Retained losses at the end of the year
CLOSED GROUP
2019
$’000
2018
$’000
170,980
170,210
4,242
(88,391)
(42,374)
(11,750)
(15,351)
(1,117)
(16,573)
(1,975)
(4,251)
(6,560)
164
162
(86,051)
(46,512)
(6,235)
(11,584)
(370)
(17,068)
-
(4,447)
(1,895)
138
(6,396)
(1,757)
(17)
(17)
(60)
(60)
(6,413)
(1,817)
(185,114)
(400)
(183,357)
-
(191,910)
(185,114)
71
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION D: OTHER DISCLOSURES (CONTINUED)
15. DEED OF CROSS GUARANTEE (CONTINUED)
CLOSED GROUP
2019
$’000
2018
$’000
1,435
34,111
5,282
250
4,450
1,659
35,524
1,875
151
4,450
45,528
43,659
599
5,350
145,585
599
5,165
160,198
151,534
165,962
197,062
209,621
13,515
5,167
7,214
4,404
14,131
3,131
8,222
4,785
30,300
30,269
10,736
32,709
300
344
110
7,967
35,443
253
657
85
44,199
44,405
74,499
74,674
122,563
134,947
312,057
(191,910)
2,416
318,065
(185,114)
1,996
122,563
134,947
Consolidated Statement of Financial Position
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories, prepayments and other current assets
Assets classified as held for sale
Income tax receivable
Total current assets
Non-current assets
Investments
Deferred tax asset
Property, plant and equipment
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Interest bearing loans and borrowings
Employee provisions
Other provisions and liabilities
Total current liabilities
Non-current liabilities
Payables
Interest bearing loans and borrowings
Employee provisions
Other provisions and liabilities
Derivative financial instruments
Total non-current liabilities
Total liabilities
Net assets
Equity
Contributed equity
Retained losses
Reserves
Total equity
72
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION D: OTHER DISCLOSURES (CONTINUED)
16. PARENT ENTITY
The individual financial statements for the parent entity show the following aggregate amounts:
Statement of financial position
Current assets
Total assets
Current liabilities
Total liabilities
Equity
Contributed equity
Reserves
Retained losses
Total equity
Net loss after tax for the year
Total comprehensive loss for the year
17. KEY MANAGEMENT PERSONNEL
Summary of key management personnel compensation in the following categories is as follows:
Short-term employee benefits
Post employment benefits
Other long term benefits
Retirement benefits
Share based payments
Total compensation
2019
$’000
2018
$’000
40,772
231,430
28,075
127,450
39,171
244,142
28,682
123,359
312,057
2,416
(210,493)
318,065
1,996
(199,278)
103,980
120,783
(10,815)
(4,698)
(10,832)
(4,758)
2019
$
2018
$
1,635,801
140,621
42,316
675,000
(2,221)
2,077,050
144,784
8,231
-
884,909
2,491,517
3,114,974
Refer to the Remuneration Report in the Directors’ Report for detailed compensation disclosure on key management personnel.
73
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION D: OTHER DISCLOSURES (CONTINUED)
18. SHARE-BASED PAYMENTS
Three employee incentive schemes are in place to assist in attracting, retaining and motivating key employees as follows:
• Salary sacrifice rights plan;
• Short term incentive plan; and
• Long term incentive plan.
Information with respect to the number of rights and options allocated under the employee incentive schemes are as follows:
Salary Sacrifice
Rights Plan
Short Term Incentive Plan
Long Term Incentive Plan
Average fair
value per
right
No. of
rights
Average fair
value per
right
No. of
rights
Average
exercise
price per
option
No. of
options
$0.1326
2,464,267
$0.1008
1,313,227
$0.1483
28,636,852
$0.1971
1,128,387
$0.2192
2,397,878
$0.1643
10,728,789
$0.1583
(2,720,432)
$0.1767
(1,286,680)
-
-
-
-
-
-
-
-
-
-
$0.1080 (16,486,178)
$0.1748
(4,048,970)
At start of period
Granted during the period
Exercised during the period
Lapsed during the period
Forfeited during the period
At end of period
$0.1358
872,222
$0.1776
2,424,425
$0.1869
18,830,493
Salary sacrifice rights plan
Eligible executives will be permitted to salary sacrifice a portion of their pre-tax fixed annual remuneration to acquire equity in the form
of rights to fully paid ordinary shares in the Company.
Each right is a right to acquire one ordinary share in the Company. The exact number of rights to be granted is based on the amount
of salary sacrificed and the 5 day volume weighted average price prior each month. Rights do not carry any dividend or voting rights.
Rights will be granted twice a year following the announcement of the half-year and full-year results or in any event, within twelve
months of the Annual General Meeting (“AGM”). Rights will have a twelve month exercise restriction commencing from the relevant
grant dates. The rights to ordinary shares equivalent to the amount salary sacrificed in the period from the most recent grant date will
be granted following the announcement of the full-year results.
Short term incentive plan
Eligible executives will have the opportunity to receive short term incentives subject to meeting performance hurdles over the financial
year. 50% of the STIP outcome achieved for the financial year will be delivered in cash and 50% will be delivered in equity in the form
of rights to ordinary shares in the Company.
Each right is a right to acquire one ordinary share in the Company. The exact number of rights to be granted is based on 50% of
the STIP outcome divided by the 5 day volume weighted average price after the release of full year results. Rights do not carry any
dividend or voting rights. Rights will be granted following the announcement of the full-year results or in any event, within twelve
months of the AGM. Rights will have a six month exercise restriction commencing from the grant date.
Long term incentive plan
Eligible executives will be granted options to acquire ordinary shares in the Company, subject to performance hurdles and some or all
may vest at the end of the three year period if the performance hurdles are met.
Each option is a right to acquire one ordinary share in the Company (or an equivalent cash amount) subject to payment of the exercise
price. The exact number of options to be granted will be the LTIP award divided by the option valuation using a Binomial valuation
methodology prior to grant date. The option exercise price is calculated based on the 5 day volume weighted average price prior to
the grant date. Options do not carry any dividend or voting rights. Options will be granted within twelve months of the Annual General
Meeting. Options are subject to a performance hurdle based on absolute Earnings Per Share (“EPS”), which is measured over a three
year performance period. An absolute EPS hurdle must be achieved at the end of year three for any options to vest. The Board of
Directors retains a discretion to adjust the EPS hurdle as required to ensure plan participants are neither advantaged nor disadvantaged
by matters outside management’s control that materially affect absolute EPS (for example, by excluding one-off non-recurrent items or the
impact of significant acquisitions or disposals).
74
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION D: OTHER DISCLOSURES (CONTINUED)
18. SHARE-BASED PAYMENTS (CONTINUED)
Long term incentive plan (continued)
Options granted have the following details and assumptions:
Grant date
Vesting date
Expiry date
Share price at grant date
Fair value at grant date
Exercise price
Expected life
Expected price volatility of Boom’s shares
Risk-free interest rate
Expected dividend yield
(a) Carrying values
Salary Sacrifice Rights Plan
Short Term Incentive Plan
Long Term Incentive Plan
Total employee equity benefits reserve
2019
2018
2017
28 November 2018
30 November 2017
4 November 2016
31 August 2021
31 August 2020
31 August 2019
30 September 2021
30 September 2020
4 September 2019
$0.165
$0.062
$0.164
2.8 years
55%
2.07%
0%
$0.200
$0.070
$0.212
2.8 years
55%
1.87%
0%
Note
$0.115
$0.045
$0.108
2.8 years
55%
1.66%
0%
2019
$’000
600
721
1,172
2018
$’000
425
196
1,435
2,493
2,056
(b) Expenses arising from share-based payment transactions
Total expenses arising from share-based payment transactions recognised during the financial year are as follows:
Shares issued under previous employee share schemes
Rights issued under employee rights plans
Options issued under employee option plan
-
700
(263)
437
(14)
461
486
933
9
(c) Legacy employee incentive schemes
Two existing legacy employee incentive schemes are still in place but have been discontinued with only the ordinary shares
vested in previous financial years remaining in the share plans.
75
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION D: OTHER DISCLOSURES (CONTINUED)
18. SHARE-BASED PAYMENTS (CONTINUED)
(d)
Employee share plan share holdings
Information with respect to the number of ordinary shares issued and allocated under the employee share plans is as follows:
At start of period
–
issued for nil consideration (including unallocated shares in the employee
share schemes allocated during the year)
– sold / transferred during the year
–
lapsed during the year
At end of period
2019
Number of
shares
2018
Number of
shares
6,196,367
10,287,439
3,615,352
(3,186,957)
(4,655,631)
339,573
(759,593)
(3,671,052)
1,969,131
6,196,367
Recognition and measurement
The cost of these equity settled transactions with employees is measured by reference to the fair value at the date at which they are
granted using an appropriate valuation model.
In valuing equity settled transactions, the performance conditions are all non-market measures and as such, are not taken into
account in determining the fair values of the options.
The cost of equity settled transactions is recognised, together with a corresponding increase in equity, over the period in which the
performance and/or service conditions are fulfilled, ending on the date on which the relevant employees become fully entitled to the
award (the vesting period).
No expense is recognised for awards that do not ultimately vest.
19. CONTINGENCIES
Contingent liabilities
Performance guarantees totalling $3.436 million have been provided in relation to wind farm construction projects of which $2.700
million will expire within a year and the remainder by 1 May 2022. In addition, other bank guarantees totalling $4.040 million have
been provided to landlords and work cover authority. There are no other contingent liabilities identified at reporting date.
20. AUDITOR’S REMUNERATION
During the year the following fees were paid or payable for services provided by KPMG Australia:
Audit services
– audit and review of financial statements
Taxation, due diligence and other services
–
taxation services
Total remuneration of KPMG Australia
76
2019
$
2018
$
287,546
200,131
82,778
24,857
370,324
224,988
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION D: OTHER DISCLOSURES (CONTINUED)
21. SUBSEQUENT EVENTS
The Directors are not aware of any other matter or circumstance that has arisen since 30 June 2019 that has significantly affected or
may significantly affect the operations of the Group in subsequent financial years, the results of those operations or the state of affairs
of the Group in future financial years.
22. NEW ACCOUNTING POLICIES AND STANDARDS
(a)
Changes in accounting policies
The principal accounting policies adopted in the preparation of the financial report are consistent with those of the previous
financial year, except for the adoption of the new accounting standards AASB 15 Revenue from Contracts with Customers
and AASB 9 Financial Instruments. The nature and effect of these new accounting standards are disclosed below.
Standards
AASB 15 Revenue from Contracts with Customers
Nature of change
AASB 15 establishes a comprehensive framework for determining whether, how much and when revenue
is recognised. It replaces existing revenue recognition guidance, including AASB 118 Revenue, AABS 111
Construction Contracts and IFRIC 13 Customer Loyalty Programmes. It provides a five step model that
applies to all customer contracts and it aims to better reflect the consideration that an entity expects to
receive from customers in exchange for its goods and services.
The new standard is based on the principle that revenue is recognised when control of a good or service
transfers to a customer.
Effective date
Mandatory for financial years commencing on or after 1 January 2018.
Impact
The Group elected to use the modified retrospective approach in adopting the new standard which
means that the cumulative impact has been recognised in retained earnings as of 1 July 2018 for
customer contracts that were not completed at the date of initial application and that comparatives have
not been restated.
Rendering of services
Pre AASB 15, revenue from the hire of lifting/access equipment, labour and other services provided was
recognised where the right to be compensated for the services could be reliably measured. This typically
occurs when the job dockets or timecards were approved by the customers. If the services under a single
arrangement were rendered in different reporting periods, then the consideration was allocated on a
relative fair value basis.
Construction contracts
Pre AASB 15, revenue from the installation of wind towers was recognised by reference to the stage of
completion. The stage of completion was measured by reference to the wind tower units completed to
date as a percentage of the total wind tower units under the contract. When the contract outcome cannot
be measured reliably, revenue was recognised only to the extent that the expenses incurred are eligible to
be recovered.
Under AASB 15, the total consideration in the services above is allocated based on their stand-alone
selling prices. The stand-alone selling prices are determined based on the list prices at which the Group
sells the services in separate transactions.
Based on the Group’s assessment, the fair value and the stand-alone selling prices of both types of
services above are broadly similar. Consequently, at the date of initial application, there were no significant
differences in the timing of revenue recognition for these services which required the restatement of
opening retained earnings as of 1 July 2018.
77
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION D: OTHER DISCLOSURES (CONTINUED)
22. NEW ACCOUNTING POLICIES AND STANDARDS (CONTINUED)
(a)
Changes in accounting policies (continued)
Standards
AASB 9 Financial Instruments
Nature of change
AASB 9 replaces the existing guidance in AASB 139 Financial Instruments: Recognition and
Measurement. AASB 9 includes revised guidance on the classification and measurement of financial
instruments, including a new expected credit loss model for calculating impairment on financial assets,
and the new general hedge accounting requirements. It also carries forward the guidance on recognition
and de-recognition of financial instruments from AASB 139.
Effective date
Mandatory for financial years commencing on or after 1 January 2018.
The Group elected to use the modified retrospective approach in adopting the new standard which
means that the cumulative impact has been recognised in retained earnings as of 1 July 2018 and that
comparatives have not been restated.
Impairment
The new standard did not have a significant impact on the classification and measurement of the Group’s
financial assets with the exception of impairment losses on trade receivables and contract assets. The
new standard replaces the incurred loss approach with a forward looking expected credit loss (“ECL”)
approach in measuring impairment losses.
The Group has applied the simplified approach and recorded lifetime expected losses on all trade
receivables and contract assets.
The Group established a provision matrix based on the historical credit loss experience and adjusted for
forward looking factors specific to the debtors and the economic environment. The Group considers trade
receivables and contract assets are in default when contractual payments are 90 days past due, subject
to other internal or external information that indicate otherwise.
Based on the assessments undertaken, the impairment losses on trade receivables increased by
$0.4 million and opening retained earnings as of 1 July 2018 was restated as such.
Hedge accounting
The new hedge accounting rules will align the accounting for hedging instruments more closely with the
Group’s risk management practices. As a general rule, more hedge relationships might be eligible for
hedge accounting, as the standard introduces a more principles-based approach.
At the date of initial application, all the Group’s existing hedging relationships were eligible to be treated as
continuing hedging relationships. Consistent with prior periods, the Group has continued to designate the
change in fair values of the entire forward contracts in the Group’s cash flow hedge relationships and, as
such, the adoption of the new hedge accounting rules had no significant impact on the Group’s financial
statements.
Impact
78
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTS (continued)
Year Ended 30 June 2019
SECTION D: OTHER DISCLOSURES (CONTINUED)
22. NEW ACCOUNTING POLICIES AND STANDARDS (CONTINUED)
(b)
New accounting standards and interpretations not yet adopted
The following standards, amendments to standards and interpretations have been identified as those which may impact
the Group in the period of initial application. They are not yet effective and not adopted by the Group in preparing this
financial report.
New standards
AASB 16 Leases
Nature of change
The standard removes the classification of leases as either operating leases or finance leases for the
lessee, effectively treating all leases as finance leases. This will effectively move all off-balance sheet
operating leases onto the balance sheet that is similar to current finance lease accounting.
Effective date
Mandatory for financial years commencing on or after 1 January 2019.
Impact
The Group intends to adopt the standard using the modified retrospective (option 2) approach which
means that the cumulative impact of the adoption will be recognised in retained earnings as of 1 July
2019 and that comparatives will not be restated.
The Group has completed a preliminary assessment of the potential impact on the consolidated financial
statements resulting from the application of AASB 16 with respect to existing operating leases for
continuing operations as a lessee.
The standard will have an impact on key financial measures such as EBITDA, EBIT and net assets, due
to the standard replacing straight line operating lease expenses with a depreciation charge for the lease
asset and interest expense for the lease liability.
The actual impact of applying AASB 16 on the financial statements in the period of initial application
will depend on future economic conditions, including the Group’s borrowing rate at 1 July 2019, the
composition of the Group’s operating lease portfolio at that date, the Group’s latest assessment of
whether it will exercise any lease renewal options and the extent to which the Group chooses to use
practical expedients and recognition exemptions.
Based on the information currently available at reporting date, the Group estimates the impact of AASB 16
adoption at 1 July 2019 as follows:
• Right-of-Use asset of approximately $26.8 million;
• Lease liabilities of approximately $23.9 million;
• Make good provision and prepaid setup cost adjustment of approximately $2.9 million.
From a lessor perspective, the Group notes that there may be an impact from possible newly identified
embedded leases within contracts under AASB 16 and is working through the impact assessment.
79
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 DIRECTORS’ DECLARATION
1. In the opinion of the Directors of Boom Logistics Limited (“the Company”):
(a) the Consolidated Financial Statements and notes that are set out on pages 46 to 79, and the Remuneration Report in the
Directors’ Report, set out on pages 31 to 43, are in accordance with the Corporations Act 2001, including:
(i) giving a true and fair view of the Consolidated Entity’s financial position as at 30 June 2019 and of its performance for the
financial year ended on that date; and
(ii) complying with Accounting Standards, (including the Australian Accounting Interpretations) and Corporations Regulations
2001; and
(b) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and
payable.
2. The Directors draw attention to page 50 to the Consolidated Financial Statements which includes a statement of compliance with
International Financial Reporting Standards.
3. There are reasonable grounds to believe that the Company and the group entities identified in note 14 will be able to meet any
obligations or liabilities to which they are or may become subject to by virtue of the Deed of Cross Guarantee between the
Company and those group entities pursuant to ASIC Corporations Instrument 2016/785.
4. The Directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the chief executive
officer and chief financial officer for the financial year ended 30 June 2019.
Signed in accordance with a resolution of the Directors:
Maxwell Findlay
Chairman
Melbourne, 21 August 2019
Tony Spassopoulos
Managing Director
80
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 This is the original version of the audit report over the financial statements signed by the
directors on 21 August 2019. Page references should be read as follows to reflect the correct
references now that the financial statements have been presented in the context of the annual
report in its entirety: page references with respect to our Report on the Remuneration Report
as set out in the Directors’ report, should be updated to read pages 31 to 43.
Independent Auditor’s Report
To the shareholders of Boom Logistics Limited
Report on the audit of the Financial Report
Opinion
We have audited the Financial Report of
Boom Logistics Limited (the Company).
In our opinion, the accompanying
Financial Report of the Company is in
accordance with the Corporations Act
2001, including:
giving a true and fair view of the
Group's financial position as at 30
June 2019 and of its financial
performance for the year ended on
that date; and
complying with Australian Accounting
Standards and the Corporations
Regulations 2001.
The Financial Report comprises:
Consolidated statement of financial position as at 30
June 2019
Consolidated statement of comprehensive income,
Consolidated statement of changes in equity, and
Consolidated statement of cash flows for the year then
ended
Notes including a summary of significant accounting
policies
Directors' Declaration.
The Group consists of the Company and the entities it
controlled at the year-end or from time to time during the
financial year.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit
evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.
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 Corporations Act 2001 and the ethical
requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for
Professional Accountants (the Code) that are relevant to our audit of the Financial Report in Australia. We
have fulfilled our other ethical responsibilities in accordance with the Code.
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.
This matter was 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 this matter.
KPMG, an Australian partnership and a member firm of the KPMG
network of independent member firms affiliated with KPMG
International Cooperative (“KPMG International”), a Swiss entity.
Liability limited by a scheme approved under
Professional Standards Legislation.
81
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
82
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 Other Information
Other Information is financial and non-financial information in Boom Logistics Limited’s annual reporting
which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are
responsible for the Other Information.
Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not
express an audit opinion or any form of assurance conclusion thereon, with the exception of the
Remuneration Report and our related assurance opinion.
In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In
doing so, we 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.
We are required to report if we conclude that there is a material misstatement of this Other Information,
and based on the work we have performed on the Other Information that we obtained prior to the date of
this Auditor’s Report we have nothing to report.
Responsibilities of the Directors for the Financial Report
The Directors are responsible for:
preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting
Standards and the Corporations Act 2001
implementing necessary internal control to enable the preparation of a Financial Report that gives a
true and fair view and is free from material misstatement, whether due to fraud or error
assessing the Group and Company's ability to continue as a going concern and whether the use of the
going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters
related to going concern and using the going concern basis of accounting unless they either intend to
liquidate the Group and Company or to cease operations, or have no realistic alternative but to do so.
Auditor’s responsibilities for the audit of the Financial Report
Our objective is:
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 Australian Auditing Standards will always detect a material misstatement when it exists.
Misstatements can arise from fraud or error. They 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 the 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.pdf.
This description forms part of our Auditor’s Report.
83
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019
84
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 ASX ADDITIONAL INFORMATION
Additional information required by the Australian Stock Exchange Ltd and not shown elsewhere in this report is as follows.
The information is current as at 19 August 2019.
(a) Distribution of Equity Securities
The number of shareholders, by size of holding, in each class of share are:
1
1,001
5,001
10,001
100,001
-
-
-
-
and over
1,000
5,000
10,000
100,000
The number of shareholders holding less than a marketable parcel of
shares are:
(b)
Twenty Largest Shareholders
The names of the twenty largest holders of quoted shares are:
1
2
3
4
5
6
7
8
9
10
11
12
13
14
15
16
17
18
19
20
HSBC Custody Nominees (Australia) Limited
J P Morgan Nominees Australia Pty Limited
National Nominees Limited
BNP Paribas Noms (NZ) Ltd
BNP Paribas Nominees Pty Ltd
Grove Investment Group Pty Ltd
BNP Paribas Nominees Pty Ltd
Horrie Pty Ltd
CPU Share Plans Pty Ltd
Horrie Pty Ltd
Hillmorton Custodians Pty Ltd
Kismar Pty Ltd
Gwynvill Trading Pty Ltd
Morgan Stanley Australia Securities (Nominee) Pty Limited
Taverners No 11 Pty Ltd
Luton Pty Ltd
Neweconomy Com Au Nominees Ptd Limited <900 Account>
S I J Nominees Pty Ltd
Citicorp Nominees Pty Limited
Stoneyville Pty Ltd
Top twenty shareholders
Remainder
Total
Ordinary shares
Number of
holders
Number of
shares
250
761
610
1,331
351
47,706
2,656,723
4,799,757
47,354,798
384,334,816
3,303
439,193,800
597
923,523
Listed ordinary shares
Number of
shares
Percentage
of ordinary
shares
53,516,551
47,540,775
38,312,525
26,205,598
20,720,376
8,680,889
6,509,034
5,769,505
5,482,774
5,000,000
4,594,776
4,000,000
3,965,411
3,758,286
3,221,007
2,837,005
2,818,068
2,800,253
2,794,782
2,760,559
251,288,174
187,905,626
12.2%
10.8%
8.7%
6.0%
4.7%
2.0%
1.5%
1.3%
1.2%
1.1%
1.0%
0.9%
0.9%
0.9%
0.7%
0.6%
0.6%
0.6%
0.6%
0.6%
57.2%
42.8%
439,193,800
100.0%
85
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 ASX ADDITIONAL INFORMATION (continued)
(c)
Substantial Holders
Substantial holders in the Company are set out below:
Rorema Beheer B.V.
Greig & Harrison Pty Ltd
Paradice Investment Management Pty Ltd
Castle Point Funds Management
Forager Funds Management Pty Ltd
(d)
Voting Rights
Listed ordinary shares
Number of
shares
35,380,332
33,823,181
33,395,384
26,476,306
22,543,977
Percentage
of ordinary
shares
8.1%
7.7%
7.6%
6.0%
5.1%
All ordinary shares (whether fully paid or not) carry one vote per share without restriction.
(e) Unquoted Securities
There are 3,296,647 rights granted under the Executive Remuneration Plan outstanding held by 23 holders.
There are 18,830,493 options granted under the Executive Remuneration Plan outstanding held by 10 holders.
86
BOOM LOGISTICS LIMITEDA.B.N. 28 095 466 961BOOM LOGISTICS ANNUAL REPORT 2019 Suite B Level 1, 55 Southbank Boulevard
SOUTHBANK VIC 3006
Telephone (03) 9207 2500
Fax (03) 9207 2400
www.boomlogistics.com.au
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BOOM LOGISTICS ANNUAL REPORT 2019