2021
Annual Report
CONTENTS
01 2021 Highlights
02 Chairman’s Report
04 Business Overview
06 Managing Director’s Report
42 Consolidated Statement of
Comprehensive Income
43 Consolidated Statement of
Financial Position
44 Consolidated Statement of
14 Operating and Financial Review
Cash Flows
20 Health, Safety, Environment & Quality
45 Consolidated Statement of Changes
22 Our People
24 Board of Directors and Key
Management Team
26 Financial Report
27 Directors’ Report
41 Auditor’s Independence Declaration
in Equity
46 Notes to the Consolidated
Financial Statements
75 Directors’ Declaration
76 Independent Audit Report
80 ASX Additional Information
82 Company Directory
AT BOOM, we deliver safe lifting solutions, with
scale and precision, every time. Managing risk and
complexity with confidence – that’s the promise we
make to our customers.
2021 HIGHLIGHTS
Revenue $m
$182.7
$185.5
$173.3
EBITDA $m
$29.0
$23.8
$36.3
2019*
2020
2021
2019*
2020
2021
Operating Cash Flow before Tax $m
$25.0
$24.3
$25.9
Net Debt $m
$36.6
$29.4
$19.6
2019*
2020
2021
2019
2020
2021
Dividends cents
1.5
0.5
0.0
2019
2020
2021
* Converted for comparison with current AASB16 standard
Annual General
Meeting
Boom Logistics will hold its
2021 Annual General Meeting at
11.00am on Friday, 26 November
2021. Details will be provided in
the Notice of Meeting.
boomlogistics.com.au
1
Boom Logistics Annual Report 2021 CHAIRMAN’S
REPORT
The company has returned to profit and continued to
diversify during FY21.
The strategy is underpinned by capital
expenditure to support ongoing growth
and fleet renewal. We completed the year
with an improved return on capital, a strong
portfolio of work in progress and a sound
balance sheet. Each division – crane services,
projects and travel towers – performed well,
generating solid returns for the year.
It is pleasing to report a net profit of
$1.2 million, the first net profit since 2012
and the Board has resolved to pay a final
dividend for FY21, the third dividend since
FY20. This was a sound improvement on
the after-tax loss in FY20 which included
impacts from COVID-related delays to
projects and shutdown maintenance, a
one-off $4.45 million franking deficit tax
expense (which is being progressively
repaid over FY21 and FY22) and a
loss-making project.
Over the year, successes included completion
of a wind farm project at Moorabool South,
commencement of works for Snowy 2.0,
infrastructure work at Parramatta Light Rail
and a solid performance from travel towers
following restructure as a stand-alone
business two years ago.
We plan to develop business in sectors
which are benefiting from strong markets,
new technology rollout and federal
government spending. Our confidence that
this will maximise returns for the business
and its shareholders was reflected in the
decision to resolve to pay a final dividend of
1 cent per share, unfranked. This followed
an interim dividend of 0.5 cents, unfranked,
taking dividends for the year to 1.5 cents.
Net debt continues to be managed in the
range 20%-35% of total equity, and at 30
June 2021 was 26%. In December 2020,
we commenced a new three-year finance
facility on favourable terms. The company’s
net debt at 30 June 2021 was $29.4 million,
down from circa $50 million in 2016 and
reflective of a concerted effort to retire
older assets and debt to position the
company for future growth.
The company is now investing in assets to
support growth and reduce its fleet age,
after taking several years to consolidate
its financial position. The capital recycling
program supports investment in new crane
and travel tower assets which service
large projects and existing contracts, and
net capital expenditure for the year was
$14.7 million. This investment combines
the advantages of a modern, more capable
fleet with ongoing work – positioning
Boom Logistics to the forefront of its
industry. Our targeted capital investment
and a strong pipeline of business in mining,
telecommunications, infrastructure and
energy markets provides a sound foundation
for continued expansion of the business.
The company is building a stronger,
more modern platform, utilising the
opportunities provided by work such as
the Smelter Campaign Maintenance 2021
(SCM21) project at BHP Olympic Dam,
further shutdown prospects in central
Queensland and growth opportunities in
north-west Western Australia.
We continued to operate through the
pandemic which brought project delays and
restrictions on interstate travel and fly-in,
fly-out labour workforce. The health and
safety of our people remains our top priority
while meeting the business expectations
of our customers. Early action to improve
processes and protect staff has enabled
us to operate effectively despite COVID
constraints and challenges presented.
Across our business, mining maintenance
and resources activity was healthy in
Queensland, Western Australia and South
Australia. However, our mining services
1.5c
dividends to
shareholders in
FY21
2
Boom Logistics Annual Report 2021 continued growth, return on investment
and profitability. We have a capable team, a
sound balance sheet, and a strong pipeline
of opportunities. I look forward to Boom’s
continued progression over the years ahead.
Maxwell J Findlay
Chairman
Net profit
$1.2m
business experienced weakness in New
South Wales. Boom Logistics’ renewable
energy strength is in the construction
and maintenance of wind farms, which
represents more than one-third of
Australia’s renewable energy supply. Boom
has accumulated significant industry
expertise and a track record of successful
projects in the sector. In FY21, this sector
provided 23% of Boom Logistics’ revenue.
Another key sector is the infrastructure
market. Boom Logistics is providing
cranes and travel towers supporting the
development of projects such as Snowy 2.0
as the federal government invests to support
Australia’s infrastructure-led recovery from
the COVID-19 pandemic. We are also focused
on the telecommunications sector, where
mobile telecommunications infrastructure
requires significant investment to achieve
the deployment of 5G spectrum bands.
These are all large, sustainable markets that
provide scope for Boom Logistics to leverage
its national service capability and benefit
from capital recycling and investment in new
cranes and travel towers.
Our business is supported by the hard work
and dedication of our people. On behalf
of the board, I would like to thank Tony
Spassopoulos and the executive team as
they build a safe and strong culture across
our business.
The Board is undergoing significant change
and rejuvenation. Since this time last year,
Terry Francis and Jean-Pierre Buijtels have
retired and we appointed Stephen Grove
and Kieran Pryke as directors. Further board
renewal is planned. I take this opportunity
to announce my intention to retire from
the Board at the AGM in 2021 and to thank
Jack Hebiton for his many years of service
to Boom as he also retires at the AGM and
does not seek re-election.
As we enter a new year, the company is
positioned for future success. The Board
maintains positive expectations for
3
3
BUSINESS
OVERVIEW
Delivering lifting
solutions, with scale
and precision.
Travel towers
dd
Travel towers
4
Crane services
Key Operations
● Mining maintenance services
● Engineered specialised lifts
● Shutdown, industrial and programmed
maintenance services
● Major clients are in the mining sector
Projects
Key Operations
● Wind farm construction
● Bridge installations, rail and
infrastructure construction
● Energy and high voltage powerline
construction
● Wind farm maintenance programs
Travel towers
Key Operations
● Telecommunications – 5G and data network
upgrades and connections
● Transmission ‘string-line’ installation works
on wind farms
● Interconnector & power grid projects
● High voltage transmission line maintenance
readi
Key Operations
● Mining shutdown and maintenance
labour
● Oil and Gas maintenance services
● Construction, heavy industry and
windfarm specialised labour services
Boom Logistics Annual Report 2021 Total revenue
$173m
Revenue $m
$95.6
$94.4
$92.9
Achievements
● Contract renewals signed with
Outlook
● BHP Olympic Dam Smelter Campaign Maintenance
Anglo American, Australian Paper,
Coronado Curragh, FQM Australia
● Major shutdowns completed for
Boddington Gold, BMA, Bulga,
MTW and Australian Paper
(SCM21) project underway in 1H FY22
● Solid book of maintenance work and growth from new
customers in central Queensland and North West WA
● Pipeline of new business opportunities across the
mining and industrial sectors
2019
2020
2021
dd
Achievements
● Completion of Moorabool South
Outlook
● Significant projects underway including Bango wind
wind farm
farm and Snowy 2.0 continuing in 1H FY22
Revenue $m
$35.1
$38.0
$37.5
● Securing a new wind farm
construction project at Bango
● Commenced work at Snowy 2.0,
Parramatta Light Rail, Martinus Rail
and Armadale Road Bridge projects
● Strong pipeline of potential new business including
renewable energy and infrastructure projects
● Ongoing wind farm maintenance work with
opportunities to introduce new value-added services
2019
2020
2021
Achievements
● Installation of new 220kv
Outlook
● Strong pipeline of high voltage line stringing and
transmission line in the Pilbara
interconnector work
Revenue $m
$24.9
$26.8
$25.3
● Continued activity on wind farm,
mining and maintenance work
● Telecommunications sector
rectifications and upgrades
● Demand for telecommunications work remains
consistent, albeit affected by pandemic-related
constraints
● Continued renewable energy projects including
maintenance and upgrades to the electricity grid
2019
2020
2021
Achievements
● Activities constrained by
pandemic-related delays and
lockdowns
● readi supported Boom’s customers
at Olympic Dam, Boddington Gold
and Esso
Outlook
● readi continues to service mining maintenance and
industrial shutdown customers
Revenue $m
$27.1
$26.3
● readi is focussing on new customer opportunities in
construction and infrastructure sectors as COVID-
related constraints ease
$17.6
2019
2020
2021
5
Boom Logistics Annual Report 2021 MANAGING DIRECTOR’S
REPORT
In early 2020, we introduced a national safety reset program
to improve our work processes and establish a positive
safety culture across the business.
Lost Time Injury
Frequency Rate
(LTIFR) of
Zero
Total Recordable
Injury Frequency
Rate (TRIFR)
5.1
best safety
performance in
over a decade
During FY21, we had zero lost time injuries
and reported a total recordable injury
frequency rate (TRIFR) of 5.1 per million
hours worked, the lowest in more than a
decade, and an improvement on 8.0 (36%)
in the prior year.
The leadership team, managers and
supervisors increased their engagement
with our people in the field, also ensuring
the health and safety of our team during
the pandemic. Regular communication
with our employees on site has been an
essential step toward integrating safe
work processes in our operations. We built
‘safe workplace always’ into our thinking,
empowering our people with authority to
manage the job. This involved assessing
risks and implementing safe processes
across customer sites nationally.
Safe act observations frequency rate
(SAOFR) increased to 8,242, up from 6,450
in FY20, a 28% improvement on last year.
Safe Act Observation
Frequency Rate (SAOFR)
Total Recordable Injury
Frequency Rate (TRIFR)
8,242
8.6
8.0
6,450
3,888
5.1
2019
2020
2021
2019
2020
2021
6
The success of our safety transformation
program has allowed us to proactively
manage risk with confidence. Our positive
safety record underpins our capability,
supporting our bids to win new work.
Boom provides lifting solutions for our
customers, using small, medium-sized and
large-scale cranes and travel towers. Our
crews operate on a 24x7 basis providing
engineering services, supervision and
project management on mine, construction
and infrastructure sites. We install and
maintain wind farms across Australia,
manage the connection of power
transmission at height and support the 5G
mobile roll-out.
Our services require specialist experience,
precision and technical skill. Our workforce
of 445 permanent and 400 flexible
employees provides services for some of
Australia’s leading industrial businesses
from 14 depots around Australia.
Diversification to capture
recurring revenue
Our strategy to diversify services across
multiple sectors has seen us focus on the
mining and resources, renewable energy,
infrastructure and telecommunications
customers. These are strong, growing
markets where Boom can provide sector
expertise and high quality, differentiated
services. We continue to diversify our
business, targeting new recurring revenue
streams and positioning the company to
grow profitably in the future.
Financial overview
The company reported net profit
of $1.2 milion for FY21, following a
Boom Logistics Annual Report 2021
EBITDA
$36.3m
up 53%
disappointing prior year (FY20: net
loss $17.0 million). COVID-19 related
delays to projects and shutdown
maintenance continued as customers
reduced non-essential work and delayed
discretionary activity and costs. As a result,
revenue was $173.3 million, down 6.6%
from $185.5 million in the prior year.
EBITDA, however, increased to
$36.3 million, up 53% from $23.8 million in
FY20, and the return to profit is a turning
point for the company as EBIT improved
to $4.5 million in FY21 (FY20: loss of
$8.1 million).
Balance sheet and
cash flow
During the first half of FY21 the company
repaid debt. Following the purchase of new
assets, gearing has returned to the range
considered efficient for the company and at
30 June 2021 was 26%.
Return on capital employed improved to
2.5% in FY21 (FY20: -1.4%), and further
improvement is expected as newly
purchased assets begin to generate
returns. Cash flow from operating activities
before tax was higher at $25.9 million, up
$1.6 million on the prior year.
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.
7
CUSTOMERFOCUSEverything begins with the customerSAFETY ALWAYSContinue our journeytowards zero harmDEVELOPING OUR PEOPLECommittment toour futureRESPECTFor each other andall stakeholdersto do thingsLooking for new waysINNOVATIONto achieve our bestWorking togetherTEAM WORKBoom Logistics Annual Report 2021 Operating
Cashflow
before tax
$25.9m
up $1.6m
MANAGING DIRECTOR’S
REPORT (CONTINUED)
Business overview
The company implemented an
organisational restructure under which the
crane services and readi labour businesses
report to the chief operating officer. Travel
towers operates as a separate business
unit, servicing the telecommunications
and energy sectors. The projects division is
focused on wind farms, construction and
infrastructure work.
Crane services
Revenue decreased as supply chain
management issues and COVID-related
constraints disrupted activities. However,
work remained solid and maintenance
contract renewals were signed with the
Anglo American, Australian Paper, Coronado
Curragh and other organisations. Major
shutdown activities were completed for
Boddington Gold, Olympic Dam and in
Central Queensland.
A new contract to provide mining
maintenance services for FQM Australia has
extended our services into the nickel sector.
While a new supply contract was signed
at BHP’s Mt Arthur Coal, the Hunter Valley
market remained challenging, with price
competition affecting volume of work.
The company was awarded a major
shutdown, the Smelter Campaign
Maintenance 2021 (SCM21) project for BHP
Olympic Dam in May 2021. Mobilisation
of services has commenced for this
project, which is expected to generate
circa $15 million additional revenue and at
its peak will engage 150 Boom crew and
40 cranes. When the project completes
at the end of 2021, our assets will be
redeployed interstate on other activities.
Projects
The company completed a wind farm
project at Moorabool South, Victoria and
began another at Bango in the New South
Wales Southern Tablelands region later in
the year, compared to two projects running
simultaneously in the prior year. Renewable
energy is a key growth sector for Boom and
has also benefited from a greater share
of ongoing wind farm maintenance work
across the east coast of Australia.
We have built strong construction and
maintenance expertise around wind
farms. Our work requires crews skilled in
construction and maintenance, capable
of working at heights and managing the
lifting, rigging and mechanical experience.
Over twenty new wind farms are under
construction or expected to commence in
the next 2 years, and we are targeting this
sector for growth.
Work continues on the Snowy 2.0
project, where the company is supporting
construction of a 27-kilometre tunnel
linking major dams. Bridge installation,
rail and infrastructure construction are
all sectors where Boom plans to increase
its participation. Projects included the
Parramatta Light Rail, work for Martinus
Rail in Queensland and the Armadale Road
Bridge project in Western Australia.
Work continues on Snowy 2.0 where the
company is supporting construction of a
new renewable energy project.
8
Boom Logistics Annual Report 2021
Travel towers
Installation of the new 220kv transmission
line in the Western Australia Pilbara region
continues to progress, and the company
has benefited from strong demand
for high voltage string-line work. The
group’s work in the telecommunications
sector, where the company works with
Tier 1 and 2 contractors for the large
telecommunications organisations such
as Ericsson and Nokia, was constrained by
state government lockdowns. Demand,
however, remains consistent, supported
by the 5G and NBN rollout in metropolitan
areas, plus rectifications and upgrade
work to address ‘black spot’ mobile
reception areas.
Capital for growth
A central component of our strategy is
capital recycling, using a flexible asset
rental model which allocates fleet resources
and optimises performance for customers.
During FY21, we invested $14.7 million in
new crane and travel tower assets. The sale
of under-used assets, including 35 older
travel towers, raised $4.8 million.
Our capital recycling program equips our
fleet with new technology, improving
efficiency, reducing maintenance costs
and we invest in order to secure new and
ongoing work. We successfully improved
asset utilisation rates in FY21, crane
utilisation increased to 81% and travel
tower usage rose to 66%.
Management systems
The company continued to work closely
with customers during the pandemic
and followed government guidelines. We
responded to border restrictions and state
lockdowns being imposed at short notice,
which required careful management of
teams to ensure productivity and that
customer schedules were met.
Boom maintains cloud-based technologies
which enable us to manage work and
projects remotely. Upgrades to key
platforms continue to improve efficiencies,
cost management and workplace flexibility
across the business.
Total asset
utilisation
77%
up from 71%
9
Boom Logistics Annual Report 2021 MANAGING DIRECTOR’S
REPORT (CONTINUED)
The 22nd of December 2020 marked
20 years since the company was
incorporated and became Boom as we know
it today. Originally named ‘The Australian
Crane Company’ over the first few years,
the company acquired a range of businesses
in the crane and access industry.
Boom is now nationally recognised as an
industry leader servicing a diverse customer
base, and is a provider of choice for some
of Australia’s largest blue-chip companies.
We are proud of being known as a company
that provides quality services and the leader
of safety in our industry.
We would like to acknowledge the
contribution of all those people who have
helped make Boom what it is today and
are continuing to drive our success into
the future.
Our loyal and passionate employees are
the key to Boom’s success. We are proud
to have dedicated and skilled people who
consistently deliver on customer service
and safety.
Outlook
Our financial position is sound with
major growth prospects and we are well
positioned to take advantage of new
business opportunities.
The group continues to benefit from
a proactive capital recycling program
that aligns assets closely to customer
requirements. We are focusing on achieving
high rates of utilisation for our cranes and
travel towers. New assets will support
growth and enable recycling of older assets
and reduction of maintenance costs.
We expect revenue growth to resume
in FY22, supported by major works such
as SCM21 at BHP Olympic Dam, ongoing
construction work at Snowy 2.0, Bango
wind farm, and a major shutdown for BMA
at Goonyella Riverside. We have a solid
portfolio of work in the months ahead.
The company has a strong pipeline
for new business across mining
maintenance, energy, infrastructure and
telecommunications, with significant
prospects across state markets.
We are optimistic about further penetrating
the renewable energy market. Australia has
installed over 3,000 wind farm towers in
the past decade, and will install a further
2,000 in the next three years.
The federal and state governments are
investing in major infrastructure projects
over the next ten years. We are targeting
this market for growth on the back of
a successful track record over several
years including current projects such as
Snowy 2.0.
The group anticipates some labour
shortages and continued supply chain
constraints; however, we have put in place
programs to cover any potential ongoing
COVID-19 impacts.
I take this opportunity to thank the Board
for their support over the past year and
especially Max Findlay and Jack Hebiton,
who have announced their retirement. I
would like to acknowledge Jack for his vision
to establish Boom 20 years ago and Max for
his guidance and direction to return the
company to profit.
In closing, I would like to thank our people
for their willingness to adapt to changed
conditions and the achievements we
have made to improve our safety and
performance in the last year.
Tony Spassopoulos
Managing Director
Work commencing
on SCM21 project
for BHP Olympic
Dam, expected
$15m
additional revenue
in FY22
10
Boom Logistics Annual Report 2021 Case Study
PARRAMATTA LIGHT
RAIL PROJECT
Parramatta Light Rail is a twelve-kilometre rail line in
western Sydney, New South Wales, which is currently under
construction for transport NSW.
Boom Logistics provided heavy lift services
for the Parramatta Light Rail infrastructure
project in New South Wales, installing large
bridge girders and assisting construction
of the showpiece bridge over James
Ruse Drive.
A lift about to
commence
using a
750-tonne
capacity crane
11
Boom Logistics Annual Report 2021 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.
EQUIPMENT
OPERATIONAL
CAPABILITY
● A comprehensive and diverse fleet aligned to
● Highly experienced and trained workforce of
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.
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.
ENGINEERING
EXPERTISE
SAFETY & QUALITY
SYSTEMS
● Pre-lift customer site survey and analysis.
● Cultural alignment with our customer base, with
● Detailed engineering lift studies to drive safety,
an uncompromising safety focus.
efficiency and cost effectiveness.
● Transition to new international safety standard
● Project planning and project management.
● Wind farm construction including lifting,
mechanical and electrical installation and
maintenance.
ISO 45,001:2018 achieved.
● Confirmed certification to AS/NZS ISO
9001:2015.
● 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.
12
Boom Logistics Annual Report 2021 Case Study
HIGH VOLTAGE GRID AND
INTERCONNECTOR PROJECTS
Boom’s travel towers support power line connection and
interconnector upgrade works
Boom mobilises its large travel towers
across Australia to support projects
including the Qld-NSW interstate
connectors and connection of renewable
energy projects to the power grid. These
projects enable the sharing of power
generation across the national energy
market. Safety and reliability are essential
for Boom’s travel towers performing
work at heights. Boom’s work includes
supporting the replacement of power poles
and transmission line insulators.
Boom’s travel
towers worked
on wind
farms and
interconnector
upgrades
13
Boom Logistics Annual Report 2021 OPERATING AND
FINANCIAL REVIEW
Overview
The Group reported a net profit after tax of $1.2 million for the year ended 30 June 2021 (FY20: net loss after tax of $17.0 million). The
return to profitability is an important step for the Group with the result for the year considered solid given the on-going disruption
to operations caused by Covid-19. Mining maintenance shutdown work incurred delays and reductions in scope throughout the
year, infrastructure project delays were prevalent with the on-going effects of state government lockdowns delaying or cancelling
scheduled works.
Delivering a net profit in this environment is confirmation that the Group’s strategy is effective and that results are moving in the
right direction. The Group now has a flexible and lean cost base, a solid position in its key markets with strong pipelines and revenue
opportunities, access to debt capital and an established and proven flexible rental model to enable the group to deliver improved
returns on capital and grow profitably over the coming years.
Income statement
FY21 was an important year in the recent performance of the Group, recording a profit after tax of $1.2 million. With revenue
impacted by the difficult environment, costs were well managed as the Group focused on quality revenue, supporting our customers
and growing the opportunity for FY22.
Revenue
Operating Costs
Earnings Before Interest, Tax, Depreciation and Amortisation
Depreciation and Amortisation
Earnings Before Interest and Tax
Net Borrowing Costs
Net Profit/ (Loss) Before Tax
Net Profit/ (Loss) After Tax
30-Jun-21
$’m
30-Jun-20
$’m
173.3
(137.0)
36.3
(31.8)
4.5
(3.3)
1.2
1.2
185.5
(161.7)
23.8
(31.9)
(8.1)
(4.4)
(12.5)
(17.0)
Change
$’m
(12.2)
24.7
12.5
0.1
12.6
1.1
13.7
18.2
Revenue
Reported revenue was $173.3 million (FY20: $185.5 million).
Revenue was 6.6% down on the prior year as the Group focused
on quality revenue in key markets to generate improved
margins. On-going Covid restrictions contributed to lower
revenue with slower mining maintenance shutdown activity,
reductions in project scope, delays in infrastructure projects
and border restrictions and state government lockdowns
impacting volumes.
Earnings
Despite the lower recorded revenue, the renewed focus on
quality contracts and projects in key markets resulted in much
improved earnings before interest expense, tax, depreciation
and amortisation (EBITDA). EBITDA improved 53% to
$36.3 million in the year (FY20: $23.8 million). Earnings before
interest expense and tax (EBIT) improved significantly to
$4.5 million (FY20: loss of $8.1 million).
Importantly the improved EBIT and reduced borrowing costs
translated into a profit after tax of $1.2 million (FY20: loss of
$17.0 million). The return to profit is a turning point in the recent
history of the Company.
The Group has confidence in the outlook and that successful
execution of the strategy will further increase profitability and
generate improved returns on capital through:
● Diversifying revenue including both construction and
recurring maintenance work on wind farms and pursuing
the growing opportunity in energy projects associated with
improvements and upgrades to the electricity grid;
● Capitalising on the infrastructure pipeline over the coming
decade (albeit that Covid restrictions and customer
supply chain issues continue to delay projects in the
immediate term);
● Increasing recurring revenue in mining maintenance by
growing market share in the Central Queensland market
through our strong customer relationships in the region and
14
Boom Logistics Annual Report 2021 growing our revenue in Western Australia where the Group is
currently under represented.
Improved results from the execution of this strategy with
a clear pipeline of opportunities has given confidence to
invest in new capital equipment to grow our customer base,
margins and return on capital. The Group will also continue to
seek opportunities to diversify its earnings through aligned
services that will complement the capital intensive nature of
core operations.
Taxation
Income tax expense in the year was $nil as the Group utilised
franking deficit tax paid to offset income tax payable. In the
prior year a tax expense of $4.45 million was incurred which
related to a historic franking deficit tax liability. This amount
is being repaid in twenty-four monthly instalments under an
interest free payment plan agreed with the ATO in August 2020.
The first eleven payments under this plan were made in the
year with repayments being available to offset against future
taxable profits in addition to $103.7 million (gross) of tax losses
that are also available to offset against future taxable profits.
Cash flow
Cash flow provided by operating activities before tax was
$25.9 million (FY20: $24.3 million). This was a solid cash flow
result and reflected payment of circa $1.6 million in FY21 that
was deferred from FY20 with the agreement of suppliers as
a result of the onset of Covid-19. Operating cash flow in the
current year was further effected by the timing of projects
revenue and expenses:
● Debtors increased from the Bango wind farm project that
generated significant revenue in the last two months of
the year as the project increased to full productivity (cash of
$6.8 million from project invoices was received in July 2021).
This project will continue through the first half of FY22;
● Boom announced on 6 May 2021 that it had been awarded a
new contract at BHP Olympic Dam to support a major smelter
shutdown project (SCM21 project) commencing in August
2021. Preparation for the major works have begun and
mobilisation of people and equipment commenced in June
2021. Whilst the majority of costs incurred can be reimbursed
under the contract the associated cash had not yet been
received at year end; and
● Major mining maintenance shutdown works commenced
in Central Queensland in June for which debtors remained
unpaid at year end.
These year end debtor balances will be realised in the normal
course of business as the invoices become due for payment
in FY22.
Given the improving profitability of the Group and the strong
outlook in key markets the Group applied operating cash largely
to fund increased investment in new crane assets to support
the SCM21 project. The project is an important maintenance
task for BHP and Boom is pleased to partner with BHP on the
project to support its on-going operations and deepen our
relationship. The new cranes will be used on the project for
3 Year
finance facility
commenced
in December
2020
the first half of FY22 and
then transferred to other
regions to support growth
in key markets.
The Group was also able to
fund two half cent dividend
payments during the year.
The first payment, made
in October 2020 was deferred
from payment in April 2020
as a conservative measure during
the initial stages of the pandemic.
The second payment being the FY21
interim dividend paid in March 2021. In total
dividend payments of $4.3 million were paid to
shareholders during FY21.
The Group has resolved to pay a final FY21 dividend
of 1 cent per share. This dividend is expected to be paid
on 5 November 2021 to shareholders on the register at
30 September 2021.
Balance sheet
Net assets at 30 June 2021 were $112.7 million down from
$115.3 million at 30 June 2020. The movement reflects the profit
generated in the period offset by $4.3 million of dividends paid
to shareholders in the year.
Return on capital employed was 2.5% compared with negative
1.4% in the prior year. The return has improved as the Group
has maintained a tight cost base and focused on profitable
revenue opportunities.
Returns are forecast to further improve in FY22 as the capital
investment in assets made towards the end of FY21 begin
to generate a return. Assets will commence operation at
the SCM21 project in the first half of FY22 and will then be
reallocated across the fleet to support further growth in key
markets in the second half of FY22.
The increased net capital expenditure in FY21 of $14.7 million
has increased the balance sheet gearing net debt (interest
bearing borrowings plus finance lease liabilities less cash)/ total
equity to 26% (30 June 2020: 17%). This is within the Board
approved gearing range of 20%-35% and the Group maintains
considerable undrawn debt facilities.
Capital management
Boom is committed to delivering efficient capital management
outcomes that provide value to our shareholders, support our
customers, bring innovation to our service offering and maintain
the highest levels of safety performance.
Our strategy of diversifying revenue streams and increasing our
portion of recurring revenue in maintenance work is delivering
improved results. In order to continue to improve results Boom
is re-investing in its fleet of operating assets to meet the
highest standards of customer service. Investment in the fleet
is essential to maintain existing contracts and importantly to
deliver growth in our key markets:
15
Boom Logistics Annual Report 2021 OPERATING AND
FINANCIAL REVIEW (CONTINUED)
● Mining Maintenance – Boom continues to win market share
with mining and resources customers in key geographies,
being both major resource companies and other mining
services suppliers. These customers often have specific
requirements for assets deployed on contracts, being
equipment age or particular safety systems. It is essential
that Boom continues to invest in its fleet, upholding
the highest standards of safety for our people and
our customers.
● Energy Sector – The opportunities available in the energy
sector is a significant growth market for Boom. Access to
new equipment and additional capacity will allow Boom to
grow revenue in the energy market as significant electricity
grid upgrade projects are required over the coming years.
● Renewable Energy – Boom utilises its low capital rental
model to access large cranes suitable for the wind farm
construction and maintenance markets. The wind farm
construction pipeline remains strong over the next three
years with the maintenance market providing a growing
opportunity as more turbines are commissioned. The Group
is also expanding its service offering in the maintenance
market through the addition of low capital services.
● Infrastructure – The Group’s low capital, asset rental model
plays a central role in capturing growth in this market with
rented assets supported by smaller assets and people
sourced from Boom’s national depot footprint.
The increase in capital expenditure during the year was targeted
to deliver growth and improve returns on capital in Boom’s
key markets. Capital was invested during the year in assets to
support Olympic Dam’s FY22 program of works, and to deliver
growth in Western Australia and Central Queensland where new
revenue and contracts are being targeted. New large Bronto
travel tower assets were ordered and deposits paid to increase
capacity in the energy sector where Boom has identified a
significant growth opportunity. These assets will be delivered
through FY22 and will deliver immediate capacity and revenue
upon their arrival.
Significantly, in May 2021 Boom announced that it was
successful in securing a new contract at BHP Olympic Dam to
support a major smelter shutdown project that will commence
around August 2021. Boom is pleased to be able to partner
again with a major customer to deliver a significant project.
Boom committed to a number of new assets to service this
contract which will be required in addition to the fleet already
stationed at Olympic Dam to service Boom’s long term
maintenance contract.
The investment in new equipment will help to deliver $15 million
of new revenue in the first half of FY22. The equipment will
then be available to support new revenue and growth in key
markets in the second half of FY22.
Debt Facilities
The investment in the year was supported by the new finance
arrangements that the Group entered into in December 2020.
The new terms and conditions provide a secure committed
facility with tenure to December 2023, significant debt capacity
limits, no restrictive financial covenants and access to lower
interest rates and facility costs.
Balance Sheet Gearing
To maintain the equipment fleet the Group considers that
modest balance sheet leverage is appropriate. The Group’s
Board approved gearing range is 20%-35% where gearing is
defined as group interest bearing loans and borrowings plus
finance lease liabilities divided by total equity. At 30 June 2021
the gearing ratio was 26% (30 June 2020: 17%). The increase
to gearing was appropriate given the availability of long
term committed debt facilities and the strong pipeline of
opportunities in FY22, including the award of the major SCM21
shutdown contract.
The Group will target gearing around the middle of the approved
range although it may deviate from this in the short term
having consideration to:
● Outlook for the Group’s key markets and wider
economic circumstances;
● Customer requirements and opportunities to invest in new
equipment for growth that will provide an appropriate return
on capital invested;
● Acquisition opportunities that will complement and grow the
Group’s core activities in key markets;
● On-going requirement to replace and maintain the core fleet.
Current average age of fleet (including rented assets) is circa
10.7 years. The Group’s long term target is to maintain a fleet
with an average age below 10 years;
● Proceeds realised from on-going capital recycling of older
less productive equipment to reinvest in new assets with
enhanced technology and safety systems, reduce fleet
maintenance costs and increase overall fleet utilisation;
● Operating free cash flow1 generated by the Group in any
period; and
● Surplus operating free cash will be available to be returned
to shareholders.
The Group expects to generate sufficient surplus operating free
cash to maintain a consistent dividend to shareholders.
1 Operating free cash flow is defined as net cash provided by operating activities less net repayment of lease liabilities (included in cash flows from
financing activities).
16
Boom Logistics Annual Report 2021 The Group may deviate from the guidelines above to capitalise
on opportunities with superior returns on capital. Over the short
and medium term this approach will ensure that Boom is well
positioned to deliver sound risk adjusted returns to investors
through a combination of dividends and capital appreciation,
maintain a fleet of equipment to service our customers through
market cycles and contribute to a safe working environment for
our people and customers.
FY21 Review of operations
The Group had a solid year in an environment that continues
to be impacted by Covid-19. Restrictions had an impact across
the customer base with major impacts felt in the mining and
infrastructure sectors with telecommunications work in the
metro areas also impacted during periods of lockdown.
Mining and Resources
Revenue in mining and resources was down $5.0 million in
the year. Revenue was down across the sector as customers
reduced shutdown and project activity. This was particularly
the case in Central Queensland and in Western Australia where
site restrictions and labour shortages caused by border closures
impacted work planned by customers.
Despite the slowdown in project work regular maintenance
work was solid with Boom building on its strong relationship
with customers in the region. In Central Queensland Boom
invested in targeted asset purchases acquiring a new category
of crane to meet client demand and support our metallurgical
coal customers.
During the year the Group benefitted from extending and
expanding our relationship with Anglo American in the region.
The Group also secured a major project at Anglo’s Aquila mine
site to partner with Fenner Dunlop in the construction of a
new stacker conveyor with this project expected to complete
in 1H FY22. The investment in new equipment also supported
the Group’s ability to win a major shutdown project for BMA
that commenced at the end of June 2021 and will be completed
in the first quarter of FY22. After the successful completion of
this project Boom is then targeting further on-going recurring
revenue with this customer.
The Group has also consolidated its depots in Mackay and
Moranbah into a single location in Nebo, saving costs,
streamlining operations and positioning the Group to target
new customer sites and expand revenue.
New assets were also acquired during the year to target the
Western Australian region. The capital expenditure was used
to support the new two year maintenance contract signed with
FQM Australia (Nickel) in the year and to expand the revenue
generated in the iron ore markets in the north west.
This new revenue supporting customers in nickel and iron ore
further diversifies the Group’s exposure to commodities and
complements the long term maintenance contracts in the
south west held with gold and aluminium customers. The
contracts in the south west were particularly hard hit with
major scope changes to shutdowns and consequentially revenue
impacts as a result of Covid restrictions, border closures and
labour shortages.
Gearing Ratio
(net debt/
equity) at
26%
Work on contracts in the
Hunter Valley region of NSW
remained consistent during
the year with these thermal
coal customers operating a
maintenance cycle that relies
on smaller shutdowns. The
thermal coal market in the
Hunter Valley however remains
challenging with margins tight
as thermal coal customers seek to
reduce costs.
Revenue on our long term contract at
Olympic Dam was consistent with increasing
levels of activity on site in the second half of the
year in preparation for works on the major shelter
shutdown project.
This is a significant project and will generate an additional
$15 million of revenue in FY22 in addition to the Group’s
on-going long term maintenance contract for the site. The
award of the contract in May 2021 required Boom to commit
to the acquisition of new mobile cranes to service the project.
Boom’s fleet of cranes already on site will be required for the
on-going maintenance work.
Investment in the new fleet occurred in June 2021 with assets
being mobilised to site for commencement in the first quarter
of FY22. The new cranes will be utilised on the project and then
released to growth markets to drive new revenue in 2H FY22.
The Group maintained its strong performance in retaining key
contracts during the year and winning significant new project
work towards the end of the year at Olympic Dam and Central
Queensland that will benefit the FY22 results.
Wind, Energy and Utilities
Revenue in Wind, Energy and Utilities segment was down
$8.9m on the prior year. The decrease was largely due to lower
revenue from wind farm construction projects. In the prior year
the Group performed two fixed fee, full scope construction
projections including scope for lifting in addition to mechanical
and electrical completion. In the current year the focus was on
pursuing quality revenue in the segment to reduce risk.
In the first half of the current year the Group undertook a
project for lifting services at Moorabool wind farm in Victoria.
This project was successfully completed on a schedule of rates.
In March the Group commenced a project at Bango wind farm to
supply lifting services on a schedule of rates for GE Renewables.
This project is progressing well and will be completed towards
the end of the first half of FY22.
The Group’s approach to wind farm construction projects in
the year has been to undertake contracts with reduced scope
(compared with FY20) and consequently lower revenue, but
with risk minimised through the agreement of fee for service
contracts. The pipeline of wind farm construction remains
strong and will provide a profitable source of work over the
medium term.
In addition to the construction work Boom continued to grow its
revenue in the wind farm maintenance sector. Boom completed
17
Boom Logistics Annual Report 2021 OPERATING AND
FINANCIAL REVIEW (CONTINUED)
significant maintenance work in the year that involved
supplying large mobile assets and specialist crews to replace
damaged blades, change gearboxes, and replace pitch bearings.
The maintenance sector is a growing opportunity for the Group
with an expanding range of services being offered to clients to
complement the core services that utilise Boom’s skilled wind
farm crews and large cranes and travel towers.
The energy market is a growing opportunity and the Group has
eight Bronto travel towers on order to be delivered through FY22
to enhance its capabilities to service this market. A number of
projects are planned for FY22 and beyond as work to upgrade
the electricity grid progresses nationally and new renewable
energy projects are completed which require works to connect
them into substations.
In addition to the growing opportunity in wind farm
maintenance there is strong pipeline of work in energy projects
that typically utilise Boom’s fleet of large travel towers. During
the year Boom worked with Powerlines Plus to install a 220kv
transmission line in the Pilbara region. This has been a strong
partnership and Boom is well placed to secure additional work in
FY22 as well as similar major projects on the east coast.
Infrastructure and Construction
Revenue in the infrastructure and construction segment was up
$5.0 million.
During the year the Group has worked successfully at the Snowy
2.0 project assisting with the build and positioning of the
major tunnel boring machine that is being used to construct
18
Boom Logistics Annual Report 2021 the 27 kilometres of tunnels that will link the Tantangara and
Talbingo dams.
Other major work in the year included work on the Parramatta
Light Rail project, works in Queensland for Martinus Rail and
bridge works on the Armadale Road project in WA.
Project delays in this sector were frequent through the year as
customers suffered from supply chain delays which deferred
commitment to resources. Whilst this has been a frustration,
Boom has a pipeline of opportunities growing into FY22
and beyond and is well placed to capitalise on the growing
infrastructure segment as major new projects commence.
Boom’s flexible rental model provides access to new equipment
to deploy on infrastructure projects as these opportunities arise.
Industrial Maintenance
Revenue in the industrial maintenance segment was down
$1.1m on the prior year. Revenue was impacted by a reduction
of activity in the Group’s contracts in the Latrobe Valley in
Victoria and in its offshore maintenance contract in the Bass
Strait where Covid restrictions continued to limit the number of
people permitted on site.
360+
Cranes and
Travel Towers
Telecommunications
Revenue in the
telecommunications
and other segments was
down $2.2m on the prior
year. This segment was
impacted by the continued
state government Covid
lockdowns. Due to the more
transactional nature of the work
in this segment jobs were frequently
cancelled by customers as lockdowns
occurred periodically through the year. As
individual jobs in the telecommunications
sector tend to be discrete work packages the
customer has a larger ability to cancel or move the
job at short notice.
Activity in the sector remains high with the on-going 5G and
NBN rollout work providing a solid outlook for FY22.
19
Boom Logistics Annual Report 2021 HEALTH, SAFETY,
ENVIRONMENT AND QUALITY
Our HSEQ Goals
Boom’s three year HSEQ strategic plan was reviewed in FY21 and sets out the following goals for the company:
● To exceed client and other stakeholders’ HSEQ expectations by consistently providing benchmarked high quality and incident
free services.
● To establish a positive and proactive safety culture with well-trained and competent people who demonstrate Boom’s values and
exceptional safety leadership.
● To continue to develop and use excellent HSEQ processes and systems.
● To uphold best practice environmental standards.
Highlights
● Boom reported a Lost Time Injury Frequency Rate (LTIFR) of
● 2) Boom’s systems of work are aligned with international
zero at the end of FY21.
best practice for managing safety
● Boom reported a Total Recordable Injury Frequency Rate
(TRIFR) of 5.1 at the end of FY21, an improvement from
8.0 in FY20.
● Boom has continued a strong focus on Safety Leadership and
increased the Safe Act Observation Frequency Rate (SAOFR)
performance to 8,242 from 6,450 in the prior year.
● The company has successfully transitioned to the new
international safety standard ISO 45001: 2018. The standard
applies to depots for the crane and travel tower businesses
and being certified shows that:
● 3) Boom is able to provide clear evidence that our systems
of work are in use
● The company has continued Certification to AS/NZS ISO
9001:2015.
● Boom has developed a new Ground Conditions training video
in conjunction with Driver Safety Australia, Elevating Work
Platform Association of Australia (EWPA) and Crane Industry
Council of Australia (CICA) for the set up and use of both
travel towers and cranes that operate on outriggers. Boom
seeks to be an industry leader in safe work practices.
● 1) Boom’s systems of work meet an internationally
● Compliance with environmental management
recognised safety standard
obligations continues.
Safety Leadership Structure
The company takes 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 chief
executive officer and includes the general managers from
each business unit, senior management and the HSEQ
leadership team.
The SLT prioritises and monitors the safety environment
and safety improvement activities. The SLT is supported by
the Safety Management Team of safety professionals who
operate nationally.
20
Boom Logistics Annual Report 2021 Personal Commitment
All operational managers commit to a range of consultative and
interactive activities which reinforce their personal commitment
and our corporate commitment to Health and Safety.
Training
Boom’s operational training program contains a significant
safety leadership element for frontline supervisory personnel
and management which works to embed good workplace
safety as an operational discipline. The training emphasises
the importance of sustained and visible leadership through
employee engagement and safety interactions.
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
Observation
Frequency Rate
(SAOFR) improved
28%
● Improve systems /
procedures in line with
actions taken during the
COVID-19 pandemic.
● A cultural improvement
and leadership program
consistent with Boom’s
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.
● Review of the life saving rules program and the
Boom approach to risk management.
● Develop tools for the management of ground
conditions risks.
● Safe Act Observations and Safety Interactions which are
● Seek opportunities to introduce digital
transformation technology.
● Improved use of the hazard module in the myosh incident
management software.
● Review overall approach to sustainability.
Environment
Boom continues to meet its legal and community obligations in
environmental management.
● Boom’s environmental impact is managed through
procedures mostly directed at waste management. Disposal
of waste oil, batteries and tyres is undertaken 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.
Quality
The Company has continued Certification to AS/NZS ISO
9001:2015.
an informal risk management and assurance activity which
generates positive safety related discussions with employees
in the field.
● HSEQ Internal Audits, which include consultation and
discussion with employees.
● Involvement in consultative meetings (such as
safety committees), delivering toolbox talks and
pre-start meetings.
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 employees, customers and
the general public are free from harm when delivering lifting
solutions in complex and diverse operating environments.
The company’s ongoing emphasis on safety leadership, best practice
safety systems and “Safety Always” culture builds confidence and
trust with our customers and employees around the predictable,
reliable and consistent delivery of high value lifting solutions.
The focus of the three-year HSEQ Strategic Plans (2021-2023)
is on leadership, safe operation of plant and equipment to
ensure safety of our people and avoid damage to our plant
and employee wellbeing. The “One BOOM” HSEQ Management
System continues to be developed and enhanced.
The HSEQ Strategic Plan actions include:
● System improvements in the areas of lifting operations,
verification of competency, training, and contractor
management.
21
Boom Logistics Annual Report 2021
OUR PEOPLE
Boom continues
to invest in our
people to deliver
efficiencies and
develop leadership
across the
business.
Our IT platform
enables
remote
work
and
flexibility
Boom’s total workforce exceeded
800 people during FY21. We have
445 permanent employees, 80% of whom
directly provide services to customers –
including operators, supervisors, safety
professionals, engineers and sales
personnel, while the remainder comprise
management and functional support to
the business.
Our flexible workforce of over
400 employees enabled the company
to support projects and maintenance
shutdowns.
A vital element of our company culture and
drive for responsible growth is ensuring
that Boom is a safe place to work. We
recognise and reward performance, create
opportunities for our staff to develop and
provide support so they continue to thrive.
Leadership program
Boom recognises that people are critical
to its success and continues to invest to
deliver efficiencies and develop leadership
capability across the organisation
through internal and external training and
development activities. Our workforce
is well-trained so all employees work in
a safe and professional manner to the
standard and expectations of Boom and
its customers.
The company invests in the development
of its business leaders to maximise their
management potential. Training and
development of operational staff ensures
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.
Indigenous commitment
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.
Our National Indigenous Employment
Framework provides a basis for localised
strategies to generate work opportunities
and support Indigenous communities.
22
Boom Logistics Annual Report 2021 OUR PEOPLE
Training and
development
Boom has strengthened its
commitment to training of
employees through offering
traineeships and apprenticeships
within operational roles.
Boom’s e-Learning Centre provides
on-line induction and on-boarding
through its life saving rules and
compliance training. Our employee
survey invites employees to provide
candid feedback on their experience
in the workplace.
Gender equality
Boom is dedicated to growing a
rich culture, diverse workforce
and a work environment in which
every employee is treated fairly
and respectfully and given the
opportunity to contribute to
business success.
As part of our ongoing commitment,
Boom reviewed it’s gender equality
plan this year and continues to
promote gender equality throughout
the business.
Total
workforce
exceeds
800
23
Boom Logistics Annual Report 2021 BOARD OF DIRECTORS AND
KEY MANAGEMENT TEAM
Maxwell John Findlay
BEcon, FAICD (Independent, Non-executive Chairperson) (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 not held any other ASX listed public company Directorships. Mr. Findlay is Chairperson of
the Boom Logistics Risk 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 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. Ms. Allibon has held Non-executive
Director positions with the Australian Mines and Metals Association, and Melbourne Water
Corporation. 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. Ms. Allibon is Chairperson of the Boom Logistics
Nomination & Remuneration Committee.
Stephen Anthony Grove
(Non-independent, Non-executive Director) (appointed 6 November 2020)
Mr. Grove is Executive Chairman of the Grove Group of companies which, among other activities,
manufactures and hires more than 2,300 portable and relocatable buildings and other assets to
clients across Australia, primarily in the construction and educational classroom facilities sectors. He
founded the group in 1997 and owns 100% through related entities. Mr. Grove brings considerable
experience in the plant hire sector, together with general business, strategy and management
expertise to the Board. Since the date of appointment, Mr. Grove has not held any other ASX listed
public company Directorships.
24
Boom Logistics Annual Report 2021
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 Chairperson of the Health, Safety, Environment &
Quality Committee.
Kieran Pryke
BCom, FCPA (Independent, Non-executive Director) (appointed 8 February 2021)
Mr. Pryke has over 25 years’ experience in the property industry. He has been Chief Financial Officer of
General Property Trust, following nine years in Lendlease Corporation’s construction, development and
investment management divisions, and of Australand Property Group and Grocon Group. Currently
he is a non-executive director of Aventus Holdings Limited, where he chairs the audit, risk and
compliance committee, and a director of GFM Investment Management Limited. He is also a director
of Ozharvest Limited, the not-for-profit organisation which distributes surplus food to the needy.
Since the date of appointment, Mr. Pryke has held ASX listed public company Directorships with
Aventus Holdings Limited (current). Mr. Pryke is Chairperson of the Boom Logistics Audit Committee.
Ben Pieyre
Chief Operating Officer (appointed Chief Operating Officer on 4 January 2021)
Ben joined Boom in September 2019. He has worked in the crane hire industry since 2006 commencing
his career as a fleet controller before promotions into senior management. He has extensive
operational experience specializing in Civil Construction, Industrial Services and Maintenance Sectors,
as well as HR/IR and Engineering. Ben is currently the Vice president of the CICA board and Vice Chair
for the WA committee. Ben holds an Advance Diploma in Leadership and Management and French
qualifications in Business Management, Human Resources, Commerce and Marketing.
Tim Rogers
Chief Financial Officer, M.Phil (Criminology), MArts (Hons) (Economics & Law) (appointed
July 2015)
Prior to joining BOOM, Tim was the Group Chief Financial Officer for Crowe Horwath. An ASX listed
Company with over 100 office locations, Crowe Horwath is the 5th largest accounting services group
in Australasia. Prior to joining Crowe Horwath, Tim was a Director of Audit & Assurance at Deloitte
Touche Tomatsu. Tim has a wealth of finance and strategy experience.
Malcolm Ross
Company Secretary, 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 Hall & Wilcox Lawyers. In 2002, he
joined InterContinental Hotels Group Plc (FTSE-listed) based in Singapore where his final position was
Vice-President Legal and Associate General Counsel with responsibility for leading the legal function
in Asia Australasia.
25
Boom Logistics Annual Report 2021
FINANCIAL REPORT
27 Directors’ Report
29 Remuneration Report
41 Lead Auditor’s Independence
50 2 Revenue from Contracts
with Customers
Section D: Other Disclosures
64 14 Leases
51 3 Other Income and Expenses
66 15 Subsidiaries
Declaration
52 4 Income Tax
67 16 Deed of Cross Guarantee
42 Consolidated Statement of
Comprehensive Income
43 Consolidated Statement of
Financial Position
44 Consolidated Statement of
Cash Flows
45 Consolidated Statement of Changes
in Equity
Notes to the Consolidated
Financial Statements
46 About This Report
46 COVID-19 Impact on the Group
Section A: Financial Performance
47 1 Segment Reporting
54 5 Earnings Per Share
69 17 Parent Entity
54 6 Dividends
Section B: Operating Assets
and Liabilities
55 7 Property, Plant and Equipment
56 8 Impairment Testing of Assets
57 9 Reconciliation of the Net Cash
Flows from Operations with Net
Profit After Tax
57 10 Other Provisions and Liabilities
Section C: Funding Structures
58 11 Interest Bearing Loans
and Borrowings
70 18 Key Management Personnel
70 19 Share-based Payments
73 20 Commitments
73 21 Contingencies
73 22 Auditor’s Remuneration
73 23 Subsequent Events
74 24 New Accounting Policies
and Standards
75 Directors’ Declaration
76 Independent Auditor’s Report to
Members of Boom Logistics Limited
60 12 Financial Risk Management
80 ASX Additional Information
64 13 Contributed Equity
26
Boom Logistics Annual Report 2021 DIRECTORS’ REPORT
for the year ended 30 June 2021
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 2021.
DIRECTORS
The Directors of the Company at any time during or since the
end of the financial year are:
Maxwell John Findlay
Qualifications and biographies (see previous page)
Tony Spassopoulos
Qualifications and biographies (see previous page)
Melanie Jayne Allibon
Qualifications and biographies (see previous page)
Stephen Anthony Grove
Qualifications and biographies (see previous page)
Terence Alexander Hebiton
Qualifications and biographies (see previous page)
Kieran Pryke
Qualifications and biographies (see previous page)
Jean-Pierre Buijtels
MSc (International Business) (Non-independent,
Non-executive Director) (appointed 2 June 2017; resigned
27 November 2020)
Mr. Buijtels is the portfolio manager of Gran Fondo Capital,
a Dutch mutual fund. He is also involved in private equity
investments at Strikwerda Investments. 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). During the past three years, 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; resigned 27 November 2020)
Mr. Francis has over 20 years experience as a Non-executive
Director of infrastructure development companies including
Infrastructure Specialist Asset Management Limited, NBN
Limited, Southern and Eastern Integrated Transport Authority,
Emergency Services Telecommunications Authority. He
also advises business and government on infrastructure
development. Previously Mr. Francis was 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 was Chairperson of the Boom Logistics
Audit Committee.
Company Secretary
Malcolm Peter Ross
Qualifications and biographies (see previous page)
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
S.A. Grove
T.A. Hebiton
K. Pryke
Shares
Rights
Options
250,000
–
–
1,500,000
2,994,889
14,166,667
100,000
23,942,297
547,995
150,000
–
–
–
–
–
–
–
–
27
Boom Logistics Annual Report 2021 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:
Board of Directors
Audit Committee
Nomination and
Remuneration
Committee
Health, Safety,
Environment &
Quality Committee
Risk Committee
Name of Director
Held
Attended
Held
Attended
Held
Attended
Held
Attended
Held
Attended
M.J. Findlay
T. Spassopoulos
M.J. Allibon
S.A. Grovea
T.A. Hebiton
K. Prykea
J-P. Buijtelsb
T.C. Francisc
14
14
14
14
14
14
14
14
14
14
14
10
14
6
6
6
5
–
–
–
5
5
–
5
5
–
–
–
5
2
–
3
1
1
1
1
1
1
1
1
1
1
1
1
1
1
–
–
4
4
4
4
4
4
4
4
4
4
4
3
4
2
–
1
2
2
2
2
2
2
2
2
2
2
2
2
2
1
–
–
a Attended 100% of meetings eligible to attend from date of appointment.
b Attended 100% of meetings eligible to attend prior to resignation except for one Health, Safety, Environment & Quality Committee meeting.
c Attended 100% of meetings eligible to attend prior to resignation.
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 15 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.
Operating and Financial Review
A review of Group operations and results for the financial year
ended 30 June 2021 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.
28
DIRECTORS’ REPORTfor the year ended 30 June 2021Boom Logistics Annual Report 2021 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
Subsequent to 30 June 2021, the Board have resolved to
pay an unfranked final dividend of 1.0 cents per share
on 5 November 2021 to shareholders on the register at
30 September 2021. The estimated liability based on the
number of ordinary shares at year end is $4.278 million. The
dividend has not been provided for in the 30 June 2021 year end
financial statements.
Likely Developments and
Expected Results
The Directors expect performance to continue to improve as
a result of key project wins and building new revenue and
expanding services in key geographies and markets. Maintaining
tight control of costs will ensure new revenue is delivered at
improved margins and increase profit and return on capital.
The economic conditions created by COVID-19 remain a
challenge. There is consequently a degree of uncertainty
surrounding the ongoing pandemic and its impact. The Directors
are vigilant to this and are actively monitoring the situation.
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 2021
and future periods. There have been no significant known
breaches of any environmental regulations to which the Group
is subject.
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 2021 (“FY21”). 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 their review and
making recommendations:
● With regard to remuneration policies applicable to the
Directors, Executive KMP and employees generally;
● In relation to the remuneration of Directors and Executive
KMP;
● Of general remuneration principles, including incentive
schemes, bonuses and share plans that reward individual and
team performance;
29
Boom Logistics Annual Report 2021 ● With regard to termination policies and procedures for Directors and Executive KMP;
● In relation to the Group’s superannuation arrangements; and
● To the Board of Directors for the inclusion of the Remuneration Report in the Group’s annual report.
The Nomination and Remuneration Committee comprises a majority of independent 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.
Period as a KMP
All of FY21
From 4 January 2021
All of FY21
All of FY21
Health, Safety,
Environment
& Quality
Member
Member
Member
Chairperson
Member
Member
Member
Risk
Chairperson
Member
Member
Member
Member
Member
Member
Details of Key Management Personnel
The tables below set out the KMP and their movements during FY21.
Key Management Personnel (Executive)
Name
Title
Tony Spassopoulos
Chief Executive Officer & Managing Director
Ben Pieyre
Tim Rogersa
Malcolm Ross
Chief Operating Officer
Chief Financial Officer
General Counsel & Company Secretary
a Tim Rogers will resign as Chief Financial Officer effective from 27 August 2021.
Key Management Personnel (Non-executive Directors)
Name
Maxwell Findlay
Melanie Allibon
Stephen Grove
Terence Hebiton
Kieran Prykec
Positionb
Chairperson
Non-executive Director
Non-executive Director
Non-executive Director
Non-executive Director
Jean-Pierre Buijtelsd
Non-executive Director
Nomination &
Remuneration
Audit
Member
Member
–
–
Member
Chairperson
–
Chairperson
Member
Member
Member
Member
Member
Terrence Francisd
Non-executive Director
Chairperson
b All non-executive directors are independent, except for Stephen Grove and Jean-Pierre Buijtels who are not independent.
c Kieran Pryke was appointed Chairperson of the Audit Committee on 8 February 2021.
d Jean-Pierre Buijtels and Terrence Francis resigned from the Board and all Committees on 27 November 2020.
30
DIRECTORS’ REPORTfor the year ended 30 June 2021Boom Logistics Annual Report 2021 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 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.
Salary sacrifice rights plan
a)
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:
Short term incentive plan
b)
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.
Long term incentive plan
c)
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 performance hurdles based on three
independent measures comprising absolute earnings per share
(“EPS”), return on capital employed and key safety performance
metrics, which are measured at the end of the three year
performance period. The Board of Directors retains a discretion
to adjust the performance hurdles as required to ensure plan
participants are neither advantaged nor disadvantaged by
matters outside management’s control that materially affect
the performance hurdles (for example, by excluding one-off
non-recurrent items or the impact of significant acquisitions
or disposals).
31
Boom Logistics Annual Report 2021 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
Ben Pieyre
Tim Rogers
Chief Operating Officer
Chief Financial Officer
Malcolm Ross
General Counsel & Company Secretary
Fixed
Variable
FAR
600,000
350,000
339,433
283,467
STIP %
of FAR
LTIP %
of FAR
40%
30%
30%
20%
50%
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 profit/(loss) attributable to members of
Boom Logistics Limited
Dividends paid
Share price at financial year end
Earnings per share
Return on capital employed (Trading EBIT/
Capital Employed
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”). Market survey data
combined with individual performance appraisals determine
recommendations that go to the Board of Directors for approval.
This process occurs in September of each year and remuneration
adjustments take effect from October of that 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.
2021
$’000
2020
$'000
2019
$’000
2018
$’000
2017
$’000
$1,230
$4,278
$0.14
$0.00
($16,959)
($5,330)
($1,547)
($22,630)
$–
$0.11
$–
$0.15
($0.04)
($0.01)
$–
$0.24
($0.00)
$–
$0.09
($0.05)
2.5%
(1.4%)
1.5%
1.6%
(3.7%)
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 2021
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 October 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
32
DIRECTORS’ REPORTfor the year ended 30 June 2021Boom Logistics Annual Report 2021 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, return on capital employed and key safety performance
metrics measured at the end of the 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.
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 6 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.
33
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l
DIRECTORS’ REPORTfor the year ended 30 June 2021Boom Logistics Annual Report 2021
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 2021 are as follows:
Short Term
Post
Employment
Share-
based
Payments
Salary &
fees
Cash bonus
Other
Super-
annuation
All
Long Term
Annual &
long service
leaved
Non-Executive Directors
Maxwell Findlay
2021
2020
Melanie Allibon
2021
2020
Stephen Grove
2021
Terence Hebiton
2021
2020
Kieran Pryke
2021
Jean–Pierre Buitjelsa
Terrence Francis
2021
2020
130,000
123,500
65,000
61,780
42,302
65,000
61,750
25,729
–
27,083
61,750
Total Remuneration: Non–Executive Directors
2021
2020
355,114
308,780
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
12,350
11,733
6,175
5,869
4,019
6,175
5,866
2,444
–
3,088
5,866
34,251
29,334
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
Total
142,350
135,233
71,175
67,649
46,321
71,175
67,616
28,173
–
30,171
67,616
389,365
338,114
Total Remuneration: Non–Executive Directors and Executives – Group
2021
2020
1,450,664
1,210,641
97,413
57,832
61,732
59,592
121,751
245,208
60,903
2,037,671
104,273
238,743
(11,322)
1,659,759
a
Jean-Pierre Buijtels was not paid a Director’s fee in both FY2020 and FY2021. 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 $65,000 per financial year.
35
Boom Logistics Annual Report 2021 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
Stephen Grove
Terence Hebiton
Kieran Pryke
Ben Pieyre
Tim Rogers
Malcolm Ross
Shares
250,000
SSRP
Rights
–
STIP
Rights
–
LTIP
Options
–
1,500,000
2,275,260
719,629
14,166,667
100,000
23,942,297
547,995
150,000
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
–
224,728
3,083,333
903,787
367,967
–
–
354,903
2,677,188
Shareholdings of Directors and Executive KMP
Ordinary shares in held in Boom Logistics Limited (number)
30 June 2021
Non-executive & Executive Directors
Maxwell Findlay
Tony Spassopoulos
Melanie Allibon
Stephen Grove(ii)
Terence Hebiton
Kieran Pryke
Jean-Pierre Buijtels
Terrence Francis
Executives
Ben Pieyre
Tim Rogers
Malcolm Ross
Total
Balance at
start of year
Net change
other(i)
Balance at
end of year
250,000
1,500,000
100,000
–
–
–
250,000
1,500,000
100,000
22,442,297
1,500,000
23,942,297
547,995
–
–
185,745
–
150,000
n/a
n/a
547,995
150,000
n/a
n/a
–
–
–
–
–
–
–
–
–
25,026,037
1,650,000
26,490,292
(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. Balance at start of year represents shares held on date of director appointment.
36
DIRECTORS’ REPORTfor the year ended 30 June 2021Boom Logistics Annual Report 2021
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
Year
Grant date
Grant
number
Fair value
per right at
grant date
Exercise
date
Expiry date
Value of rights
granted during
the year
Tony Spassopoulos
Tim Rogers
2021
2020
2021
2020
24 Feb 21
440,649
$0.1362
24 Feb 22
24 Feb 31
26 Aug 20
24 Feb 21
26 Aug 20
612,784
124,642
173,333
$0.0979
26 Aug 21
26 Aug 30
$0.1362
24 Feb 22
24 Feb 31
$0.0979
26 Aug 21
26 Aug 30
$60,000
$60,000
$16,972
$16,972
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.
Rights to ordinary shares (number)
30 June 2021
Salary Sacrifice Rights
Balance at start of year
Granted during year:
Balance at end of year
Number of rights not yet granted
Grant date
Tony
Spassopoulos
Tim Rogers
Total
1,221,827
605,812
1,827,639
26 Aug 20
24 Feb 21
612,784
173,333
786,117
440,649
124,642
565,291
2,275,260
903,787
3,179,047
270,602
76,542
347,144
Number of rights not yet granted shows the potential rights to ordinary shares equivalent to the amount of salary sacrificed to 30
June 2021 since the most recent granting of rights under the salary sacrifice rights plan on 24 February 2021.
Determining the STIP Outcomes of the Executive KMP
For the FY2020 STIP, the following table shows the rights to ordinary shares granted to Executive KMP during the year.
Name
Year
Grant date
Tony Spassopoulos
Ben Pieyre
Tim Rogers
Malcolm Ross
2020
2020
2020
2020
10 Sep 20
10 Sep 20
10 Sep 20
10 Sep 20
Grant
number
249,698
224,728
228,838
99,095
Fair value
per right at
grant date
$0.1001
$0.1001
$0.1001
$0.1001
Exercise
date
Expiry date
10 Mar 21
10 Sep 30
10 Mar 21
10 Sep 30
10 Mar 21
10 Sep 30
10 Mar 21
10 Sep 30
Value of rights
granted during
the year
$25,000
$22,500
$22,912
$9,922
For the FY2021 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, with the exception of Mr Rogers’ FY21 STIP that will be
settled 100% in cash. The STIP will be paid after the announcement of the full year results and approval by the Board of Directors.
37
Boom Logistics Annual Report 2021 Name
Title
Tony Spassopoulos
Ben Pieyre
Tim Rogers
Chief Executive Officer &
Managing Director
Chief Operating Officer
Chief Financial Officer
Malcolm Ross
General Counsel & Company Secretary
Maximum
STIP
$
Weightinga
%
Settled in
Cash
$
Settled in
Rights
$
Total Cost
$
240,000
31.3%
37,500
37,500
75,000
105,000
101,830
56,693
20.0%
36.2%
44.1%
10,500
36,913
12,500
10,500
–
12,500
21,000
36,913
25,000
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 2021
STIP Rights
Balance at start of year
Granted during year:
Exercised during year
Balance at end of year
Grant date
Spassopoulos Ben Pieyre(i)
Tim Rogers
Tony
Malcolm
Ross
Total
469,931
–
230,158
255,808
955,897
10 Sep 20
249,698
224,728
228,838
99,095
802,359
–
–
(91,029)
–
(91,029)
719,629
224,728
367,967
354,903
1,667,227
(i) STIP was granted during the year prior to appointment as a KMP. Appointed as Chief Operating Officer on 4 January 2021.
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
that have not yet vested.
Name
Year
Grant
date
Grant
number
Vesting
date
Fair
value per
option
at grant
date
Exercise
price
Expiry
date
Value of
options
granted
during
the year
Vesting
bench-
mark
Tony Spassopoulos
2021
4 Dec 20 7,500,000 31 Aug 23
$0.0400
$0.159 30 Sep 23
Ben Pieyre
2021
4 Dec 20 1,750,000 31 Aug 23
$0.0400
$0.159 30 Sep 23
2020 29 Nov 19 6,666,667 31 Aug 22
$0.0450
$0.145 30 Sep 22
2020 29 Nov 19
1,333,333 31 Aug 22
$0.0450
$0.145 30 Sep 22
Tim Rogers
2021
4 Dec 20
1,697,165 31 Aug 23
$0.0400
$0.159 30 Sep 23
2020 29 Nov 19
1,508,591 31 Aug 22
$0.0450
$0.145 30 Sep 22
Malcolm Ross
2021
4 Dec 20 1,417,335 31 Aug 23
$0.0400
$0.159 30 Sep 23
2020 29 Nov 19 1,259,853 31 Aug 22
$0.0450
$0.145 30 Sep 22
(ii) $300,000
(ii) $300,000
(ii) $70,000
(ii) $60,000
(ii)
(ii)
(ii)
(ii)
$67,887
$67,887
$56,693
$56,693
(ii) The 2021 LTIP vesting benchmark consists of three independent vesting hurdles, each of which is measured at the end of the three year performance
period being 30 June 2023. The three performance hurdles are Earnings per Share of $0.04 or more (50% of eligible options), Return on Capital Employed
of 10% (25% of eligible options), Safety Performance: LTIFR < 1 and SAOFR > 6,500 (25% of eligible options) (2020 LTIP: Earnings per Share of $0.04 or
more (50% of eligible options), Return on Capital Employed of 10% (25% of eligible options), Safety Performance: LTIFR < 1 and SAOFR > 4,500 (25% of
eligible options)).
The FY2019 options allocated to the Executive KMP did not vest as their vesting conditions were not met. In accordance with the
LTIP rules, the FY2019 options were treated as lapsed at reporting date.
38
DIRECTORS’ REPORTfor the year ended 30 June 2021Boom Logistics Annual Report 2021 Options held in Boom Logistics
Limited (number)
30 June 2021
Tony Spassopoulos
Grant date
4 Dec 20
Balance at
start of year
Unvested
Granted
Lapsed
Forfeited
–
7,500,000
29 Nov 19
6,666,667
28 Nov 18
4,838,710
–
–
–
–
(4,838,710)
11,505,377
7,500,000
(4,838,710)
Ben Pieyre(i)
Tim Rogers
4 Dec 20
–
1,750,000
29 Nov 19
1,333,333
–
1,333,333
1,750,000
4 Dec 20
–
1,697,165
29 Nov 19
1,508,591
28 Nov 18
1,042,803
–
–
–
–
–
–
–
–
–
(1,697,165)
(1,508,591)
–
–
–
–
–
Balance at
end of year
Unvested
7,500,000
6,666,667
–
14,166,667
1,750,000
1,333,333
3,083,333
–
–
–
–
2,551,394
1,697,165
(1,042,803)
(3,205,756)
(1,042,803)
–
Malcolm Ross
4 Dec 20
–
1,417,335
29 Nov 19
1,259,853
28 Nov 18
887,777
–
–
–
–
(887,777)
2,147,630
1,417,335
(887,777)
–
–
–
–
1,417,335
1,259,853
–
2,677,188
Total
17,537,734
12,364,500
(6,769,290)
(3,205,756)
19,927,188
(i) LTIP options were granted prior to appointment as a KMP. Appointed as Chief Operating Officer on 4 January 2021.
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.
Lead Auditor’s Independence Declaration to the Directors
The auditor’s independence declaration is set out on page 41 and forms part of the directors’ report for the financial year ended
30 June 2021.
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:
Other assurance services
Taxation services
Other services
Total remuneration for non-audit services
$0
$21,602
$2,484
$24,086
39
Boom Logistics Annual Report 2021 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
Chairperson
Melbourne, 26 August 2021
Tony Spassopoulos
Managing Director
40
DIRECTORS’ REPORTfor the year ended 30 June 2021Boom Logistics Annual Report 2021
41
LEAD AUDITOR’S INDEPENDENCE DECLARATIONfor the year ended 30 June 2021Boom Logistics Annual Report 2021 Revenue
Other income
Salaries and employee benefits expense
Equipment service and supplies expense
Operating lease expense
Other expenses
Restructuring expense
Depreciation and amortisation expense
Depreciation expense – Right-of-use assets
Impairment expense
Profit / (loss) before financing expense and income tax
Financing expense
Financing expense – Lease liabilities
Profit / (loss) before income tax
Income tax expense
Note
2
3(a)
2021
$’000
2020
$’000
173,255
185,535
714
533
(87,731)
(98,013)
3(b)
(37,890)
(46,405)
(436)
3(b)
(11,536)
–
(16,189)
(15,667)
–
4,520
(2,055)
(1,235)
1,230
–
7
14
11(e)
14
4(a)
(1,033)
(14,134)
(718)
(16,515)
(15,392)
(1,902)
(8,044)
(2,835)
(1,633)
(12,512)
(4,447)
Net profit / (loss) attributable to members of Boom Logistics Limited
1,230
(16,959)
Other comprehensive income / (loss)
Items that may be reclassified subsequently to profit or loss
Cash flow hedges recognised in equity, net of tax
Other comprehensive income / (loss) for the year, net of tax
Total comprehensive income / (loss) for the year attributable to members of
Boom Logistics Limited
Basic earnings / (losses) per share (cents per share)
Diluted earnings / (losses) per share (cents per share)
130
130
(86)
(86)
1,360
(17,045)
0.3
0.3
(3.9)
(3.9)
5
5
The accompanying notes form an integral part of the Consolidated Statement of Comprehensive Income.
42
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOMEfor the year ended 30 June 2021Boom Logistics Annual Report 2021 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
Lease receivables
TOTAL CURRENT ASSETS
NON-CURRENT ASSETS
Property, plant and equipment
Right-of-use assets
Lease receivables
Deferred tax asset
TOTAL NON-CURRENT ASSETS
TOTAL ASSETS
CURRENT LIABILITIES
Trade and other payables
Interest bearing loans and borrowings
Lease liabilities
Employee provisions
Other provisions and liabilities
Derivative financial instruments
Income tax payable
TOTAL CURRENT LIABILITIES
NON-CURRENT LIABILITIES
Interest bearing loans and borrowings
Lease liabilities
Employee provisions
Other provisions and liabilities
Derivative financial instruments
Income tax payable
TOTAL NON-CURRENT LIABILITIES
TOTAL LIABILITIES
NET ASSETS
EQUITY
Contributed equity
Retained losses
Reserves
TOTAL EQUITY
Notes
2021
$’000
2020
$’000
2(b)
7
14
7
14
14
4(b)
11
14
4(c)
11
14
10
4(c)
2,347
42,915
2,639
–
437
2,131
34,552
3,486
3,136
1,176
48,338
44,481
122,654
25,619
–
11
148,284
196,622
15,570
23,609
15,733
9,122
5,762
93
2,224
72,113
361
8,483
497
2,248
–
185
11,774
83,887
112,735
124,196
22,788
437
67
147,488
191,969
11,952
4,309
11,592
8,461
7,526
184
4,447
48,471
14,166
11,531
395
2,083
49
–
28,224
76,695
115,274
13(a)
310,327
310,327
(200,608)
(197,560)
3,016
112,735
2,507
115,274
The accompanying notes form an integral part of the Consolidated Statement of Financial Position.
43
CONSOLIDATED STATEMENT OF FINANCIAL POSITIONas at 30 June 2021Boom Logistics Annual Report 2021 Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Interest paid
Interest paid – Lease liabilities
Interest received
Interest received – Lease receivables
Income tax (paid) / received
Net cash provided by operating activities
Cash flows from investing activities
Purchase of property, plant and equipment
Proceeds from the sale of property, plant and equipment
Net cash (used in) / provided by investing activities
Cash flows from financing activities
Payments for shares bought back
Payment of dividends
Proceeds from borrowings
Repayment of borrowings
Repayment of borrowings – Lease liabilities
Receipts from finance leases as lessor
Payment of transaction costs related to share buy-back and borrowings
Net cash (used in) financing activities
Net increase 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.
Note
2021
$’000
2020
$’000
14
14
9
6
14
184,349
205,898
(155,471)
(177,385)
(1,763)
(1,235)
8
59
(2,692)
(1,633)
7
110
(2,038)
4,450
23,909
28,755
(14,711)
4,820
(9,891)
(2,190)
4,610
2,420
–
(1,726)
(4,278)
11,821
(5,964)
(16,114)
1,176
(443)
–
–
(15,923)
(13,817)
978
(6)
(13,802)
(30,494)
216
2,131
2,347
681
1,450
2,131
44
CONSOLIDATED STATEMENT OF CASH FLOWSfor the year ended 30 June 2021Boom Logistics Annual Report 2021 Contributed
Equity
$’000
Retained
Losses
$’000
Retained
Profits
$’000
Notes
Cash Flow
Hedge
Reserve
$'000
Employee
Equity
Benefits
Reserve
$’000
Total
Equity
$’000
At 1 July 2019
Loss for the year
Other comprehensive loss
Total comprehensive loss
Transactions with owners in their
capacity as owners:
Cost of share based payments
19(b)
Share buy-back including transaction
costs and net of tax
(1,730)
At 30 June 2020
Profit for the year
Other comprehensive income
Total comprehensive income
Transactions with owners in their
capacity as owners:
Cost of share based payments
19(b)
Dividends paid
At 30 June 2021
312,057
(180,601)
–
–
–
–
(16,959)
–
(16,959)
–
–
310,327
(197,560)
–
–
–
–
–
–
–
–
–
(4,278)
–
–
–
–
–
–
–
1,230
–
1,230
–
–
(77)
–
(86)
(86)
–
–
2,493
133,872
–
–
–
(16,959)
(86)
(17,045)
177
177
–
(1,730)
(163)
2,670
115,274
–
130
130
–
–
–
–
–
1,230
130
1,360
379
–
379
(4,278)
310,327
(201,838)
1,230
(33)
3,049
112,735
The accompanying notes form an integral part of the Consolidated Statement of Changes in Equity.
45
CONSOLIDATED STATEMENT OF CHANGES IN EQUITYfor the year ended 30 June 2021Boom Logistics Annual Report 2021 About This Report
The financial report of Boom Logistics Limited and its
subsidiaries (“the Group”) for the year ended 30 June 2021 was
authorised for issue in accordance with a resolution of the Board
of Directors on 26 August 2021.
During FY21 the Group has continued to work with customers
to ensure that all health requirements are met including
restrictions on staff travel, maintaining cleaning processes
for equipment, maintaining social distancing protocols and
observing state government work from home orders for non-
essential staff.
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 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;
● impact of significant changes in Boom’s business; or
● aspects of the Group’s operations that are important to
future performance.
Disclosure of information that is not material may undermine
the usefulness of the financial report by obscuring
important information.
COVID-19 Impact on the Group
Since the onset of the COVID-19 global pandemic, which was
declared by the World Health Organisation on 11 March 2020,
the Group has been able to effectively manage its operations to
minimise disruption to the business.
The Group derives the majority of its revenue from the following
sectors: mining and resources; infrastructure and construction;
wind, energy and utilities; industrial maintenance; and
telecommunications which are designated as essential services
and have continued to operate throughout the year.
Whilst the pandemic and on-going uncertainty has created
challenges during the year the Group’s financial performance
improved in the period. The solid financial results achieved
reflected the impact of COVID on Group revenues in the
following areas:
● Mining and resources – customers reduced shutdown and
project activity as a result of site restrictions and labour
shortages caused by border closures which reduced revenue.
On-going maintenance activity on contracts continued
through the year.
● Infrastructure and Construction – project delays in this
sector were frequent throughout FY21 as customers suffered
from supply chain delays which deferred commitment to
resources. The Group was insulated from the worst impacts
with major assets employed at the Snowy 2.0 project for
the majority of the year. This project will also run through
1H FY22 and the Group’s pipeline of opportunities is growing
for FY22.
● Wind, Energy and Utilities –the Group provided lifting
services on two wind farm construction projects during the
year which were not affected by the pandemic. Projects in
wind farm maintenance and installation of power lines were
also completed and only minimally effected with movement
of the workforce restricted by border closures at various
times during the year.
● Industrial Maintenance – social distancing protocols reduced
revenue earned on the Group’s offshore maintenance
contract as the number of people permitted on site was
limited through the year.
● Telecommunications – this segment was impacted by state
government lockdowns resulting in delay or cancellation to
jobs. Accordingly, the Victorian depot suffered the greatest
impact during the year. Due to the more transactional nature
of this work individual jobs were cancelled at short notice.
The pandemic has also had an impact on international freight.
Shipping delays from Europe have delayed the arrival of new
large travel tower assets that were ordered during the year to
service growth opportunities in the energy sector. The assets
have been delayed by around two months and are now expected
to arrive in the second quarter of FY22.
The increased uncertainty and general economic environment
has prompted the Group to increase its general doubtful debt
provision by an additional $0.4 million at year end. This is a
prudent measure for perceived enhanced credit risk amongst
the Group’s smaller customers.
46
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSfor the year ended 30 June 2021Boom Logistics Annual Report 2021 Whilst the pandemic has increased uncertainty it has not materially impacted the Group or its assessment of going concern. The
Group has long term debt facilities committed to December 2023 with significant undrawn capacity. Further growth in cash flow and
earnings are forecast for FY22 which is underpinned with major works contracted for 1H FY22; SCM21 project at Olympic Dam, major
mining shutdown projects in Queensland for BMA and Fenner Dunlop, continued project work at Bango wind farm and at Snowy 2.0.
The directors believe that it remains appropriate to prepare the accounts on a going concern basis.
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.
47
Boom Logistics Annual Report 2021 Section A: Financial Performation (continued)
1.
Segment information
Segment Report (continued)
Year ended 30 June 2021
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
Profit before net interest and tax
Net interest
Income tax
Profit from continuing operations
Segment assets and liabilities
Segment assets
Segment liabilities
Additions to non-current assets
Lifting
Solutions
$’000
Labour
Services
$'000
Other*
$’000
Elimination
$’000
Consolidated
$’000
172,445
–
172,445
810
15,457
16,267
–
–
–
38,914
1,314
(4,566)
647
(31,178)
8,383
(3,190)
–
(53)
1,261
(5)
–
(625)
(5,191)
(28)
–
173,255
(15,457)
(15,457)
–
–
–
–
–
–
173,255
714
173,969
35,662
647
(31,856)
4,453
(3,223)
–
1,230
196,833
77,937
14,711
416
864
–
1,033
5,086
–
(1,660)
196,622
–
–
83,887
14,711
* Other represents centralised costs including national office and shared services.
48
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSfor the year ended 30 June 2021Boom Logistics Annual Report 2021 Year ended 30 June 2020
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
Impairment of right-of-use assets
Impairment of assets classified as held
for sale
(Loss)/profit before net interest and tax
Net interest
Income tax expense
Loss from continuing operations
Segment assets and liabilities
Segment assets
Segment liabilities
Additions to non-current assets
Lifting
Solutions
$’000
Labour
Services
$'000
Other*
$’000
Elimination
$’000
Consolidated
$’000
–
185,535
184,380
–
184,380
1,155
23,585
24,740
–
–
–
30,259
1,281
(5,590)
416
(30,999)
(305)
(75)
(1,827)
(2,531)
(4,303)
–
(53)
(2)
–
–
–
(855)
(411)
–
–
1,226
(6,856)
(7)
(41)
(23,585)
(23,585)
–
–
–
–
–
–
–
–
187,737
71,389
1,390
2,157
1,003
90
3,715
4,303
67
(1,640)
–
–
* Other represents centralised costs including national office and shared services.
–
185,535
533
186,068
25,950
416
(31,907)
(718)
(75)
(1,827)
(8,161)
(4,351)
(4,447)
(16,959)
191,969
76,695
1,547
49
Boom Logistics Annual Report 2021 Section A: Financial Performation (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 2021
Mining & resources
Wind, energy, & utilities
Infrastructure & construction
Industrial maintenance
Telecommunications
Other
Total revenue from contracts with customers
Timing of revenue recognition
Services transferred over time
Year ended 30 June 2020
Mining & resources
Wind, energy, & utilities
Infrastructure & construction
Industrial maintenance
Telecommunications
Other
Note
(i)
Lifting
Solutions
$’000
Labour
Services
$'000
Consolidated
$’000
81,480
39,403
23,105
17,984
9,894
579
172,445
–
26
106
331
–
347
810
81,480
39,429
23,211
18,315
9,894
926
173,255
172,445
810
173,255
86,466
48,368
17,928
18,732
11,817
1,069
38
17
309
656
–
135
86,504
48,385
18,237
19,388
11,817
1,204
Total revenue from contracts with customers
184,380
1,155
185,535
Timing of revenue recognition
Services transferred over time
184,380
1,155
185,535
(i) Under AASB 15, the Group has assessed that the rendering of services under certain contracts contained embedded lease arrangements. As the lessor,
these arrangements are accounted for as operating leases and totalled $1.184 million (2020: $1.184 million).
(b)
Contract balances
Trade and other receivables
Contract assets
Total trade receivables, contract assets and other receivables
Note
(ii)
2021
$’000
35,595
7,320
42,915
2020
$'000
31,944
2,608
34,552
(ii) 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.
50
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSfor the year ended 30 June 2021Boom Logistics Annual Report 2021 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 using either the equipment hire and labour rate models (schedule of
rates) or the stage of completion of the contract, as specified in the contracts. 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) Other income
Profit on disposal of plant and equipment
Profit / (loss) on disposal of plant and equipment – Right-of-use assets
Interest income
Interest income – Lease receivables
Total other income
(b) 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
Total equipment services and supplies expense
Employee related
Insurance and compliance
IT and communications
Occupancy
Other overheads
Total other expense
2021
$’000
2020
$'000
583
64
8
59
714
10,376
2,855
9,383
2,176
6,336
1,949
1,440
3,375
37,890
1,876
3,501
2,367
1,057
2,735
465
(49)
7
110
533
10,235
5,194
8,906
3,791
6,797
1,760
2,202
7,520
46,405
2,738
4,304
2,727
1,175
3,190
11,536
14,134
51
Boom Logistics Annual Report 2021 Section A: Financial Performation (continued)
4.
Income tax
(a) Income tax expense
Current income tax
Current income tax expense
Adjustments in respect of current income tax of previous years
Deferred income tax
Relating to origination and reversal of temporary differences
A reconciliation between tax expense and accounting profit / (loss) before income tax
is as follows:
Accounting profit/(loss) before tax from continuing operations
At the Group's statutory income tax rate of 30% (2020: 30%)
Expenditure not allowable for income tax purposes
Current year losses for which no deferred tax asset is recognised
Previously unrecognised tax credits now recouped to reduce current tax expense
Other reimbursable costs (on-charged to customers)
Other equipment services and supplies
Income tax expense
4(c)
Note
2021
$’000
2020
$'000
–
–
–
–
1,230
369
52
–
(421)
–
–
–
4,449
–
(2)
4,447
(12,512)
(3,754)
53
1,565
–
2,136
4,447
4,447
(b) Deferred income tax
Year ended 30 June 2021
– 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)
Year ended 30 June 2020
– Employee leave provisions
– Allowance for impairment on financial assets
– Liability accruals
– Restructuring provisions
– Tax losses
52
Opening
Balance
$’000
Recognised
in Income
Statement
$'000
Recognised
in Equity
$’000
Closing
Balance
$'000
2,657
334
1,606
12
4,272
(8,884)
70
67
2,536
173
448
246
6,408
229
(49)
(600)
5
(372)
787
–
–
121
161
1,158
(234)
(2,136)
–
–
–
–
–
–
(56)
(56)
–
–
–
–
–
2,886
285
1,006
17
3,900
(8,097)
14
11
2,657
334
1,606
12
4,272
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSfor the year ended 30 June 2021Boom Logistics Annual Report 2021 – Plant and equipment
– Derivative financial instruments
Net deferred tax asset / (liabilities)
Opening
Balance
$’000
(9,816)
33
28
Recognised
in Income
Statement
$'000
Recognised
in Equity
$’000
932
–
2
–
37
37
Closing
Balance
$'000
(8,884)
70
67
Income tax payable
(c)
Income tax payable represents the remaining franking deficit tax that is being paid in twenty four interest free equal monthly
instalments from August 2020 to July 2022. As at 30 June 2021, of the $2.038 million of income tax instalments paid to date,
$0.857 million was utilised to offset the income tax payable arising from the financial year results.
Tax losses
(d)
The Group has total tax losses of $31.165 million tax effected (2020: $31.101 million). $3.900 million of these losses have been
recognised on balance sheet and $27.265 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 and are in addition to the franking deficit tax payments that can also be used to offset future
tax payable.
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 tax funding and
sharing agreements 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.
53
Boom Logistics Annual Report 2021 Section A: Financial Performation (continued)
5. Earnings Per Share
Basic earnings per share amounts are calculated by dividing net profit or loss 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 or loss 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 profit/(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 calculated diluted
earnings per share
Number of ordinary shares at financial year end
Note
2021
$’000
2020
$'000
1,230
(16,959)
No. of shares
427,774,207
431,555,802
(i)
–
–
427,774,207
431,555,802
427,774,207
427,774,207
(i) Dilutive securities are options granted to employees under the long term incentive plan and included in the calculation of diluted earnings per share
assuming all vesting conditions are met.
6. Dividends
The Company paid unfranked dividends of 0.5 cents per share on 2 October 2020 and 16 April 2021 totalling $4.278 million.
Dividends proposed and not recognised as a liability
The Board have resolved to pay an unfranked final dividend of 1.0 cents per share on 5 November 2021 to shareholders on the
register at 30 September 2021. The estimated liability based on the number of ordinary shares at year end is $4.278 million. The
dividend has not been provided for in the 30 June 2021 year end financial statements.
54
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSfor the year ended 30 June 2021Boom Logistics Annual Report 2021 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
Rental
Equipment
$’000
Motor
Vehicles
$'000
Note
Machinery,
Furniture,
Fittings &
Equipment
$’000
Freehold
Land &
Buildings
$’000
Total
$’000
Year ended 30 June 2021
Opening carrying amount
Additions
Disposals
Transfers
Depreciation charge for the year
Closing carrying amount
At cost
Accumulated depreciation
Closing carrying amount
Year ended 30 June 2020
Opening carrying amount
Additions
Disposals
Transfers
Depreciation charge for the year
Closing carrying amount
At cost
Accumulated depreciation
Closing carrying amount
2,648
955
1,562
124,196
(i)
119,031
14,695
(744)
715
(14,834)
118,863
294,871
(176,008)
118,863
7
(34)
1
(696)
1,926
19,113
(17,187)
1,926
145,000
4,078
1,100
(3,762)
(8,455)
(14,852)
119,031
282,670
(163,639)
119,031
32
(686)
(34)
(742)
2,648
20,103
(17,455)
2,648
9
(3)
1
(540)
422
6,203
(5,781)
422
1,319
415
(16)
38
(801)
955
6,263
(5,308)
955
–
–
–
14,711
(781)
717
(119)
(16,189)
1,443
3,120
122,654
323,307
(1,677)
(200,653)
1,443
122,654
1,682
152,079
–
–
–
(120)
1,562
3,120
1,547
(4,464)
(8,451)
(16,515)
124,196
312,156
(1,558)
(187,960)
1,562
124,196
(i) Additions during the year included $2.9 million of instalment payments for the manufacture of travel tower assets that are expected to arrive in the
second quarter of FY2022.
Property, plant and equipment with a carrying amount of $122.654 million (2020: $124.196 million) is pledged as securities for current
and non-current interest bearing loans and borrowings as disclosed in note 11.
Assets classified as held for sale
There were no assets classified as held for sale at 30 June 2021.
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 less any accumulated
impairment losses.
55
Boom Logistics Annual Report 2021 Property, Plant and Equipment (continued)
Section B: Operating Assets and Liabilities (continued)
7.
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.
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.
Impairment Testing of Assets
8.
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”).
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 2021 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 24 June 2021. 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”.
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.
56
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSfor the year ended 30 June 2021Boom Logistics Annual Report 2021 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 2021.
9. Reconciliation of the Net Cash Flows from Operations with Net Profit /
(Loss) After Tax
Net profit / (loss) after tax
Non cash items
Depreciation and amortisation of non-current assets
Impairment of non-current assets
Borrowing costs – amortisation
Net profit on disposal of non-current assets
Share based payments
Changes in assets and liabilities
(Increase)/decease in trade receivables, contract assets and other receivables
(Increase)/decrease in inventories, prepayments and other assets
(Increase)/decrease in current and deferred tax balances
Increase/(decrease) in trade and other payables
Increase/(decrease) in provisions and other liabilities
Net cash flow from operating activities
Note
11(e)
3
19(b)
2021
$’000
2020
$'000
1,230
(16,959)
31,856
–
292
(647)
379
(8,363)
(75)
(1,982)
3,618
(2,399)
31,907
1,902
143
(416)
177
972
1,981
8,858
(1,208)
1,398
23,909
28,755
10. Other Provisions and Liabilities
Other provisions and liabilities include accruals for PAYG, GST, wages, superannuation and payroll tax. The balance also includes
provision for make good costs on leases of $1.145 million (2020: $2.824 million) which principally relates to shipment costs of
returning leased equipment, including onshore transportation costs.
57
Boom Logistics Annual Report 2021 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. Interest Bearing Loans and Borrowings
Current
Other loans
Prepaid borrowing costs
Total current interest bearing loans and borrowings
Non current
Other loans
Secured bank loans
Prepaid borrowing costs
Total non-current interest bearing loans and borrowings
Total interest bearing loans and borrowings
Note
2021
$’000
2020
$'000
(i)
23,967
4,309
(358)
–
23,609
4,309
(i)
361
–
–
361
23,970
9,238
5,000
(72)
14,166
18,475
(i) Other loans includes an amortising loan with $4.618 million disclosed as current and $0.361 million disclosed as non-current. The loan expires in
August 2022.
Other current loans also includes the receivables finance facility that has a committed facility limit to December 2023. The drawings made under the
committed facility limit are however revolving in nature and accordingly, the debt of $19.349 million outstanding under the facility at year end has been
disclosed as a current liability. Amounts outstanding under the facility are not required to be repaid until December 2023 at the end of the facility term.
Debt facility refinancing
(a)
The Group completed the refinance and consolidation of its syndicated bank and receivables finance facilities into a new agreement
with a single financier. The new facilities were executed on 23 December 2020 for a term of 3 years and comprise of the following:
● Receivables finance facility with a credit limit of $56 million (subject to the availability of a percentage of eligible trade
receivables). The facility incurs a fixed fee and floating interest on funds drawn; and
● Asset finance facility with a credit limit of $22 million. The facility incurs a fixed interest rate on funds drawn.
The existing $35 million asset finance facility comprising finance and operating leases was left in place. Expiry dates of loans under
this facility vary from July 2022 (extended from previous expiry of August 2021) to May 2024.
Covenant position
(b)
The Group was in compliance with all financial and non-financial banking covenants throughout the reporting period and as at
30 June 2021. The new facilities that commenced in December 2020 are not subject to any financial covenants.
Assets pledged as security
(c)
Fixed and floating charges are held over all of the Group’s assets, including cash at bank, trade receivables, contract assets and
other receivables.
58
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSfor the year ended 30 June 2021Boom Logistics Annual Report 2021 Weighted
average
interest rate
Year of
maturity
n/a
n/a
7.95% December 2023
5.92%
July 2022
Currency
AUD
AUD
AUD
(d)
Terms and debt repayment schedule
Syndicated debt
Trade receivables loan
Finance arrangement
Prepaid borrowing costs
Total interest bearing liabilities
(e)
Financing expense
Interest expense
Borrowing costs – amortisation (non-cash)
Borrowing costs – other
Total financing expense
(f)
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
Carrying Amount
2021
$’000
–
19,349
4,979
(358)
23,970
2021
$’000
1,178
292
585
2,055
–
113,000
113,000
–
31,759
31,759
–
67,907
67,907
2020
$'000
5,000
4,147
9,400
(72)
18,475
2020
$'000
1,862
143
830
2,835
1,000
75,000
76,000
–
21,740
21,740
1,000
44,792
45,792
Total facilities consist of $56 million receivables finance facility, $22 million chattel mortgage facility, and $35 million asset
finance facility.
Of the $56 million receivables finance facility, $19.3 million was drawn with a further $3.3 million utilised by bank guarantees.
$33.4 million of the undrawn facility was available subject to the availability of eligible debtors which was $1.3 million at
reporting date.
The $22 million chattel mortgage facility was undrawn at reporting date.
Of the $35 million asset finance facility, $12.4 million was drawn including $7.4 million of finance leases. A further $10.1 million was
utilised by operating leases. $12.5 million was undrawn at reporting date.
59
Boom Logistics Annual Report 2021 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.
Section C: Funding Structures (continued)
Interest Bearing Loans and Borrowings (continued)
11.
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.
Credit risk
(a)
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.
60
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSfor the year ended 30 June 2021Boom Logistics Annual Report 2021 At reporting date, the credit risk exposure on the Group’s trade receivables and contract assets using a provision matrix is as follows:
Year ended 30 June 2021
0 – 30 days
31 – 60 days
61 – 90 days
91 – 120 days
+120 days
Year ended 30 June 2020
0 – 30 days
31 – 60 days
61 – 90 days
91 – 120 days
+120 days
Trade
Receivables*
$'000
Contract
Assets*
$’000
ECL Rate
Total
$’000
Loss
Allowance
$’000
0.20%
0.25%
0.75%
7.50%
20.00%
0.20%
0.25%
0.75%
7.50%
20.00%
22,323
7,320
29,643
6,663
4,960
1,840
470
–
–
–
–
6,663
4,960
1,840
470
36,256
7,320
43,576
17,771
5,976
5,798
1,285
1,408
2,608
20,379
–
–
–
–
5,976
5,798
1,285
1,408
32,238
2,608
34,846
56
15
34
125
85
315
37
14
40
88
256
435
* Trade receivables and contact assets are net of specific transactions totalling $0.234 million (2020: $0.539 million) that have been fully provided and
excluded from above general provision calculation.
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
Impairment loss recognised
Amounts written-off and/or written back
Balance at 30 June
Note
(i)
2021
$’000
1,114
378
(543)
949
2020
$'000
577
802
(265)
1,114
(i) The allowance for impairment of $0.949 million comprises a specific provision of $0.234 million (2020: $0.539 million), $0.315 million calculated from
the provision matrix (2020: $0.435 million), and an additional allowance of $0.400 million in excess (2020: $0.140 million in excess) of the allowance
calculated using the provision matrix above. The additional amount is to allow for a perceived temporary increase in the risk profile as a result of the
uncertain economic environment at 30 June 2021.
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.
61
Boom Logistics Annual Report 2021 Financial Risk Management (continued)
Liquidity risk
Section C: Funding Structures (continued)
12.
(b)
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 operating leases,
finance leases and trade receivables loan. At 30 June 2021, the Group’s balance sheet gearing ratio was 26% (interest bearing loans
and borrowing plus finance lease liabilities less cash / total equity) (2020: 17%). Allowing for the additional operating lease liabilities
recognised in accordance with AASB 16, the Group’s balance sheet gearing ratio was 41% (2020: 34%).
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.
Carrying
amount
$’000
Contractual
cash flows
$’000
6 mths
or less
$'000
6-12 mths
$’000
1-2 years
$’000
2-5 years
$’000
Year ended 30 June 2021
Trade and other payables
Derivatives
Income tax payable
Other loans
Lease liabilities
Year ended 30 June 2020
Trade and other payables
Derivatives
Income tax payable
Other loans
Secured bank loans
Lease liabilities
93
2,409
24,328
24,216
66,616
11,952
233
4,447
13,547
5,000
23,123
15,570
(15,570)
(15,570)
(93)
(2,409)
(26,914)
(25,455)
(73)
(1,112)
–
(20)
(1,112)
(12,555)
(12,555)
(7,734)
(7,734)
(70,441)
(37,044)
(21,421)
(11,952)
(233)
(4,447)
(14,892)
(5,383)
(26,337)
(11,952)
(123)
(4,447)
(2,571)
(121)
(7,545)
–
(61)
–
(2,571)
(121)
(5,978)
(8,731)
58,302
(63,244)
(26,759)
–
–
(185)
(1,335)
(5,752)
(7,272)
–
(49)
–
(9,750)
(5,141)
(8,055)
(22,995)
–
–
–
(469)
(4,235)
(4,704)
–
–
–
–
–
(4,759)
(4,759)
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.
62
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSfor the year ended 30 June 2021Boom Logistics Annual Report 2021 Market risk
(c)
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:
Carrying amount
2021
$’000
2020
$'000
(12,410)
(12,410)
(17,593)
(17,593)
2,347
(19,349)
(17,002)
2,131
(4,147)
(2,016)
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”.
Fixed rate instruments
Financial liabilities
Variable rate instruments
Financial assets – cash at bank and on hand
Financial liabilities
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.
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 $0.596 million
(2020: $0.499 million) and the forward exchange contracts
had a fair value of $0.047 million payable (2020: $0.104 million
payable) at 30 June 2021.
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.
63
Boom Logistics Annual Report 2021 Section C: Funding Structures (continued)
13. Contributed Equity
(a) Issued and paid up capital
Beginning of the financial year
Shares bought back on-market and cancelled
Buy-back transaction costs
Tax credits recognised directly in equity
End of the financial year
2021
No. of
shares
$'000
2020
No. of
shares
$'000
427,774,207
310,327
439,193,800
312,057
–
–
–
–
–
–
(11,419,593)
(1,726)
–
–
(6)
2
427,774,207
310,327
427,774,207
310,327
All issued shares are fully paid. Fully paid ordinary shares carry one vote per share and carry the right to dividends.
Capital management
(b)
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 impacts on the Group’s
budgets and forecasts. The Group monitors capital on the basis of the balance sheet gearing ratio. This ratio is calculated as net
debt divided by total equity as disclosed in note 12(b).
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. Leases
Group as a lessee
The Group has commercial leases on certain plant and equipment, motor vehicles and property. These lease contracts have typically
fixed terms of 1 to 5 years but may have extension options. Lease terms are negotiated on an individual basis and contain a wide
range of different terms and conditions.
The impact of leases on the financial statements for the period is as follows:
Statement of Comprehensive Income
Depreciation expense of right-of-use assets
Interest expense on lease liabilities
Interest income on sublease of right-of-use assets
Gains or (losses) on termination of leases
Rent expense – short-term leases and leases of low value assets
Total amounts recognised in profit or loss
Statement of Cash Flows
Net cash flows from operating activities
Net cash flows from financing activities
64
2021
$’000
2020
$'000
(15,667)
(15,392)
(1,235)
(1,633)
59
64
(436)
(17,215)
110
(49)
(1,033)
(17,997)
14,938
12,839
(14,938)
(12,839)
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSfor the year ended 30 June 2021Boom Logistics Annual Report 2021 Right-of-use Assets
Rental
Equipment
$’000
Motor
Vehicles
$’000
Other
Equipment
$’000
Land &
Buildings
$’000
Lease
Receivables
$’000
Lease
Liabilities
$'000
Total
$'000
Statement of Financial
Position
Year ended 30 June 2021
Opening carrying amount
Additions
Terminations
10,436
16,063
–
5,637
1,649
(39)
Depreciation expense
(8,484)
(2,500)
Impairment expense
Receipts / payments
–
–
–
–
Closed carrying amount
18,015
4,747
Year ended 30 June 2020
Opening carrying amount
Additions
Terminations
10,982
7,469
–
4,961
3,360
(24)
Depreciation expense
(8,015)
(2,660)
Impairment expense
Receipts / payments
–
–
–
–
Closed carrying amount
10,436
5,637
70
–
(5)
(53)
–
–
13
6,645
1,017
(187)
22,788
18,729
(231)
(4,630)
(15,667)
–
–
–
–
2,845
25,619
122
10,068
1,317
(4)
26,133
12,150
(28)
(4,661)
(15,392)
(75)
–
(75)
–
6,645
22,788
4
–
(56)
–
–
70
1,613
–
–
–
–
(1,176)
437
654
1,937
–
–
–
23,123
17,503
(295)
–
–
(16,114)
24,216
26,763
10,156
(24)
–
–
(978)
1,613
(13,772)
23,123
Recognition and measurement
Leases are recognised as a right-of-use asset and a
corresponding lease liability at the date at which the leased
asset is available for use. The right-of-use asset is depreciated
over the lease term on a straight-line basis. The lease payment
is allocated between the lease liability and interest expense. The
interest expense is charged to profit or loss over the lease term.
Right-of-use assets are measured at cost comprising
the following:
● the amount of the initial measurement of lease liability;
● any initial direct costs; and
● restoration costs.
Lease liabilities are measured at the present value of lease
payments to be made over the lease term discounted using
the interest rate implicit in the lease. If that rate cannot be
determined, the Group’s incremental borrowing rate is used,
being the rate that the Group would have to pay to borrow the
funds necessary to obtain an asset of similar value in a similar
economic environment with similar terms and conditions. The
present value of lease payments include:
● fixed payments;
● variable lease payments that are based on an index or a rate;
● amounts expected to be payable under residual value
guarantees;
● the exercise price of a purchase option if reasonably certain
to exercise the option; and
● payments of penalties for terminating the lease.
In determining the lease term, management considers all facts
and circumstances that create an economic incentive to exercise
an extension option. Extension options are only included in the
lease term if the lease is reasonably certain to be extended.
Payments associated with short-term leases and leases of
low-value assets are recognised on a straight-line basis as an
expense in profit or loss.
Group as a lessor
The Group has several property, plant and equipment leases
that were sub-let and classified as finance leases and
recognised as Lease receivables. The sub-leases have terms of
between 2 to 3 years.
65
Boom Logistics Annual Report 2021 Section D: Other Disclosures (continued)
14.
The maturity analysis of lease receivables showing the undiscounted lease payments to be received after the reporting date is
as follows:
Leases (continued)
– within one year
– after one year but not more than five years
Total undiscounted lease receivable
– future finance income
Net lease receivable
15. Subsidiaries
AKN Pty Ltd
Sherrin Hire Pty Ltd
Shutdown Staffing Pty Ltd
Boom Logistics (VIC) Pty Ltd
Boom Logistics Projects Pty Ltd
Boom Renewables Pty Ltd
2021
$’000
443
–
443
(6)
437
2020
$'000
1,234
443
1,677
(64)
1,613
Equity interest
Country of
incorporation
2021
%
2020
%
Australia
Australia
Australia
Australia
Australia
Australia
100
100
100
100
100
100
100
100
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.
66
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSfor the year ended 30 June 2021Boom Logistics Annual Report 2021 16. 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 statements of comprehensive income and financial position 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
Depreciation expense – Right-of-use assets
Impairment expense
Financing expense
Financing expense – Lease liabilities
Profit / (loss) before income tax
Income tax benefit / (expense)
Net profit / (loss) for the year
Retained losses at the beginning of the year
Dividends provided for or paid
Retained losses at the end of the year
Net profit / (loss) for the year
Other comprehensive income / (loss)
Cash flow hedges recognised in equity
Other comprehensive income / (loss) for the year, net of tax
Total comprehensive income / (loss) for the year
Closed Group
2021
$’000
2020
$'000
163,790
176,038
406
295
(78,220)
(91,135)
(38,737)
(44,364)
(401)
(11,527)
–
(15,507)
(15,518)
–
(2,146)
(1,226)
914
27
941
(1,007)
(9,255)
(709)
(15,859)
(15,235)
(1,902)
(2,835)
(1,618)
(7,586)
(4,331)
(11,917)
(203,827)
(191,910)
(4,278)
–
(207,164)
(203,827)
941
(11,917)
130
130
(86)
(86)
1,071
(12,003)
67
Boom Logistics Annual Report 2021 Section D: Other Disclosures (continued)
16. Deed of Cross Guarantee (continued)
Consolidated Statement of Financial Position
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
Lease receivables
Total current assets
Non-current assets
Investments
Deferred tax asset
Property, plant and equipment
Right-of-use assets
Lease receivables
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Interest bearing loans and borrowings
Lease liabilities
Employee provisions
Other provisions and liabilities
Derivative financial instruments
Income tax payable
Total current liabilities
Non-current liabilities
Payables
Interest bearing loans and borrowings
Lease liabilities
Employee provisions
Other provisions and liabilities
Derivative financial instruments
Income tax payable
Total non-current liabilities
Total liabilities
Net assets
68
Closed Group
2021
$’000
2020
$'000
2,329
40,896
2,430
–
437
2,115
33,029
3,443
3,136
1,176
46,092
42,899
599
523
117,851
25,540
–
599
552
118,682
22,587
438
144,513
142,858
190,605
185,757
14,934
23,609
15,733
8,628
5,649
93
2,224
70,869
1,899
361
8,407
492
2,214
–
185
13,558
84,427
11,323
4,309
11,592
7,704
7,387
184
4,447
46,946
1,808
14,165
11,336
383
2,064
49
–
29,805
76,751
106,178
109,006
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSfor the year ended 30 June 2021Boom Logistics Annual Report 2021 Equity
Contributed equity
Retained losses
Reserves
Total equity
17. 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) / profit after tax for the year
Dividends provided for or paid
Total comprehensive (loss) / income for the year
Closed Group
2021
$’000
2020
$'000
310,326
310,326
(207,164)
(203,827)
3,016
2,507
106,178
109,006
2021
$’000
2020
$'000
43,842
43,138
234,581
231,990
72,611
48,606
116,475
108,204
310,327
310,327
3,016
2,507
(195,237)
(189,048)
118,106
123,786
(1,911)
(4,278)
(1,781)
21,445
–
21,359
69
Boom Logistics Annual Report 2021 Section D: Other Disclosures (continued)
18. 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
2021
$
2020
$
1,609,809
1,328,065
121,751
60,903
–
104,273
(11,322)
–
245,208
238,743
2,037,671
1,659,759
Refer to the Remuneration Report in the Directors’ Report for detailed compensation disclosure on key management personnel.
Related party transactions
During the year, the Group entered into hire contracts with Grove (Aust) Pty Ltd for the provision of mobile cranes services. Mr.
Stephen Grove is Executive Chairman and owner of Grove (Aust) Pty Ltd. The services performed totalled $112,368 and is based on
normal commercial terms and conditions.
19. 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
Average
exercise price
per option
No. of
rights
No. of
options
$0.1434
1,827,639
$0.1827
2,302,798
$0.1522
26,214,991
$0.1139
1,351,408
–
–
–
–
–
–
$0.1001
$0.1353
1,141,493
(960,321)
–
–
–
–
$0.1586
18,463,135
–
–
$0.1643
(9,760,588)
$0.1522
(5,687,756)
$0.1309
3,179,047
$0.1631
2,483,970
$0.1522
29,229,782
At start of period
Granted during the period
Exercised during the period
Lapsed during the period
Forfeited during the period
At end of period
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
70
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSfor the year ended 30 June 2021Boom Logistics Annual Report 2021 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 performance hurdles based on three independent measures comprising absolute earnings per share (“EPS”),
return on capital employed and key safety performance metrics, which are measured at the end of the three year performance
period. The Board of Directors retains a discretion to adjust the performance hurdles as required to ensure plan participants are
neither advantaged nor disadvantaged by matters outside management’s control that materially affect the performance hurdles
(for example, by excluding one-off non-recurrent items or the impact of significant acquisitions or disposals).
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
2021
2020
2019
4 December 2020
29 November 2019
28 November 2018
31 August 2023
31 August 2022
31 August 2021
30 September 2023 30 September 2022
30 September 2021
$0.155
$0.040
$0.159
$0.145
$0.045
$0.145
$0.165
$0.062
$0.164
2.8 years
2.8 years
2.8 years
47%
0.12%
3.20%
47%
0.65%
0%
55%
2.07%
0%
71
Boom Logistics Annual Report 2021 Section D: Other Disclosures (continued)
19. Share-based Payments (continued)
(a)
Carrying values
Salary Sacrifice Rights Plan
Short Term Incentive Plan
Long Term Incentive Plan
Total employee equity benefits reserve
2021
$’000
907
856
1,286
3,049
Expenses arising from share-based payment transactions
(b)
Total expenses arising from share-based payment transactions recognised during the financial year are as follows:
Rights issued under employee rights plans
Options issued under employee option plan
Note
9
2021
$’000
212
167
379
2020
$'000
753
798
1,119
2,670
2020
$'000
230
(53)
177
Legacy employee incentive schemes
(c)
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. These plans are expected to be wound up in the next 12 months.
Employee share plan share holdings
(d)
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
At end of period
2021
Number
of shares
2020
Number
of shares
1,480,089
1,969,131
960,321
544,317
(722,457)
(1,033,359)
1,717,953
1,480,089
At 30 June 2021, the employee share plans also hold 6,693,777 ordinary shares (2020: 7,654,098) that are un-allocated to employees.
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.
72
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSfor the year ended 30 June 2021Boom Logistics Annual Report 2021 20. Commitments
(a)
Capital expenditure contracted for at reporting date but not recognised in the financial statements are as follows:
Capital commitments
Property, plant and equipment
– within one year
The assets will be delivered progressively over the next 12 months.
2021
$’000
2020
$'000
12,304
–
21. Contingencies
Contingent liabilities
Performance guarantees totalling $0.736 million (2020: $0.736 million) have been provided in relation to wind farm construction
projects which will expire by 1 May 2022. In addition, other bank guarantees totalling $2.532 million (2020: $3.529 million) have been
provided to landlords and work cover authority. There are no other contingent liabilities identified at reporting date.
22. Auditor’s Remuneration
During the year the following fees were paid or payable for services provided by KPMG Australia:
Audit and review services
– audit and review of financial statements
Assurance services
– other assurance services
Other services
– taxation services
– other services
Total other services
Total remuneration of KPMG Australia
2021
$
2020
$
306,878
234,099
–
46,575
21,602
2,484
24,086
330,964
50,848
–
50,848
331,522
23. Subsequent Events
Subsequent to 30 June 2021, the Board have resolved to pay an unfranked final dividend of 1.0 cents per share on 5 November 2021
to shareholders on the register at 30 September 2021. The estimated liability based on the number of ordinary shares at year end is
$4.278 million. The dividend has not been provided for in the 30 June 2021 year end financial statements.
73
Boom Logistics Annual Report 2021 Section D: Other Disclosures (continued)
24. New Accounting Policies and Standards
(a)
The principal accounting policies adopted in the preparation of the financial report are consistent with those of the previous financial
year, with no new accounting standards impacting the Group during the period.
Changes in accounting policies
New accounting standards and interpretations not yet adopted
(b)
There were no new standards, amendments to standards and interpretations not yet adopted that impacted the Group in the period
of initial application.
74
NOTES TO THE CONSOLIDATED FINANCIAL STATEMENTSfor the year ended 30 June 2021Boom Logistics Annual Report 2021 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 42 to 74, and the Remuneration Report in the
Directors’ Report, set out on pages 29 to 39, 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 2021 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 46 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 15 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 2021.
Signed in accordance with a resolution of the Directors:
Maxwell Findlay
Chairperson
Melbourne, 26 August 2021
Tony Spassopoulos
Managing Director
75
DIRECTORS’ DECLARATIONfor the year ended 30 June 2021Boom Logistics Annual Report 2021
INDEPENDENT AUDITOR’S REPORT
for the year ended 30 June 2021
76
INDEPENDENT AUDITOR’S REPORTfor the year ended 30 June 2021Boom Logistics Annual Report 2021 77
Boom Logistics Annual Report 2021 78
INDEPENDENT AUDITOR’S REPORTfor the year ended 30 June 2021Boom Logistics Annual Report 2021 79
Boom Logistics Annual Report 2021 ASX ADDITIONAL INFORMATION
for the year ended 30 June 2021
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 5 August 2021.
Distribution of Equity Securities
(a)
The number of shareholders, by size of holding, in each class of share are:
1 – 1,000
1,001 – 5,000
5,001 – 10,000
10,001 – 100,000
100,001 and over
The number of shareholders holding less than a marketable parcel of shares are:
Substantial Holders
(b)
Substantial holders in the Company are set out below:
Collins St Asset Management
Castle Point Funds Management
Rorema Beheer B.V.
Greig & Harrison Pty Ltd
Grove Investment Group Pty Ltd
Ordinary shares
Number
of holders
Number
of shares
253
677
543
41,138
2,358,001
4,278,602
1,197
42,746,112
332 378,350,354
3,002 427,774,207
457
506,813
Listed ordinary shares
Number
of shares
Percentage
of ordinary
shares
50,049,802
37,615,645
35,380,332
33,823,181
22,097,309
11.7%
8.8%
8.3%
7.9%
5.2%
80
ASX ADDITIONAL INFORMATIONfor the year ended 30 June 2021Boom Logistics Annual Report 2021 Twenty Largest Shareholders
(c)
The names of the twenty largest holders of quoted shares are:
1
2
3
4
5
6
7
8
9
10
11
12
13
SANDHURST TRUSTEES LTD
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