2024
annual report
Annual Report 2024
1
contents
About GenusPlus Group
2
Our Capabilities
4
Highlights
8
Chairman’s Review
10
Managing Director’s Report
12
Sustainability
14
Financial Report
20
Corporate Directory
104
Annual Report 2024
1
GenusPlus Group LTD
Built on a bedrock of three generations of
accumulated family expertise, today the
GenusPlus Group is a leading ASX-listed
provider of critical infrastructure services to
a blue-chip client base.
We provide an integrated service delivered through
key complementary businesses to our clients in the
resources, power, utilities, and telecommunications
sectors across Australia.
powering up Australia
connecting the future
through
- innovative power solutions,
- power infrastructure capabilities,
- end-to-end communications
infrastructure
Annual Report 2024
GenusPlus Group LTD
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2
our services
We cover the full project life-cycle, from design and engineering to commissioning and decommissioning of power
infrastructure assets. Our expertise crosses multiple sectors and our teams are experienced operators in both brownfield
and greenfield sites across Australia.
connecting the future through
innovative power solutions
construction
shutdowns & maintenance
design & engineering
decommissioning
testing & commissioning
feasibility study
GenusPlus Group LTD
2
connecting the future
About Genus
GenusPlus Group (ASX:GNP) is an end to end service provider for
essential power and communications infrastructure.
We provide an integrated service
delivered through key complementary
businesses to our clients in the
resources, power, utilities, and
telecommunications sectors across
Australia.
Built on a bedrock of three generations
of accumulated family expertise, today
the GenusPlus Group is a leading ASX-
listed provider of critical infrastructure
services to a blue-chip client base.
We enable customers to integrate new
generation technology into traditional
networks and support emerging
networking solutions, meeting the
demands of a carbon neutral economy;
and helping to lead the transition
to Australia’s clean future through
delivering complex, nationally-
significant projects.
Annual Report 2024
GenusPlus Group LTD
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4
Our capabilities
Generating Source
Solar
Power Station/
E&I Construction
Wind
Battery Storage/
Hybrid Solutions
Terminal
Substations
Zone
Substations
Transmission
Infrastructure
Distribution
Infrastructure
Overhead
Transmission
Infrastructure
Overhead
Distribution
Infrastructure
Underground
Transmission
Infrastructure
Underground
Distribution
Infrastructure
Terminal
Substations
Zone
Substations
1
2
3
4
5
Primary Customer
Connection
Primary Customer
Connection
6
Our team optimises every stage of an
asset’s lifecycle, ensuring certainty
with the lowest risk and whole-of-
life cost. We draw on experience
to continually develop advanced
solutions which position projects to
transition as technology develops.
Our clients include Australia’s largest
electricity utilities, infrastructure
developers, telecommunications
networks and major mining
companies. We have delivered
projects throughout Australia and
across metropolitan, regional &
remote areas.
Annual Report 2024
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power infrastructure
capabilities
GenusPlus Group LTD
4
from the generating source to connection
GenusPlus Group LTD
6
Annual Report 2024
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•
Complete network designs
•
Line route selection & optimisation
•
Experienced field delivery capability
•
Field services from planning & design through
to construction & maintenance
•
Direct ploughing & optic fibre installation
•
Directional drilling
•
Trenching
•
Cable hauling & cable jointing
•
Pit & pipe installation
•
Asset installation
Networks:
From Concept To Construction
Civil & Infrastructure
Construction
•
Field services covering site acquisition,
engineering & and design (SAED), construction
& install
•
Extending mobile construction capability to
grow into mobile blackspots, 5G and beyond
Mobile & Wireless
Infrastructure
•
Dedicated Workforce Operations Centre and field
management platform (WFM)
•
Data analytics toolsets
•
Virtual assessment, technician mobility apps
•
Proprietary app connecting to customers
Digital Solutions
Our capabilities
communications
infrastructure capabilities
Our turnkey communications solutions
span the full asset lifecycle from
feasibility, engineering design, site
acquisition, logistics, procurement,
construction and integration through
to operations and maintenance.
We focus on improving asset
performance and reducing the
risk associated with disruption to
operations.
GenusPlus Group LTD
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end-to-end communications capability.
Annual Report 2024
GenusPlus Group LTD
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8
2024 highlights
we're a team of
dedicated industry
professionals
$519 million
Orderbook of $519 million
and strong tendered pipeline of $2 billion
$251 million
Expected recurring revenue forecast
for FY2025 up 12% on FY2024
$551 million
Record Revenue of $551 million
Up 24% on PCP
$19.3 million
Record NPAT of $19.3m
Up 44% on PCP
$45.3 million
Record Normalised EBITDA of $45.3 million
Up 23% on PCP
$101 million
Record cash balance of $101 million
Up 116% on PCP
Our target of building a comprehensive
service offering across our three segments
– from coast to coast – is based on our clear
foundational principle of pursuing organic
growth while integrating strategic acquisitions.
Annual Report 2024
GenusPlus Group LTD
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10
chairman's
review
A record-breaking year, as the
energy transition accelerates
Genus produced an outstanding
financial result this year, driven
by increased activity across each
of our operational segments. Our
diversification and growth strategy
remains firmly on track, and our record
order book and tender pipeline provide
an increasingly solid foundation for
future organic growth.
Revenue for the year stood at a record
$551 million while normalised EBITDA
increased by 23.2% to $45.3 million.
This result reflects solid performances
across all our business segments
and the progression of a number of
landmark projects.
Our East Coast footprint remains a
cornerstone of Genus’ growth plans,
with operations in the region now
representing 35% of group revenue as
renewable infrastructure development
in these markets accelerates. This
expansion marks the achievement of
a number of key strategic goals – and
we expect to continue to generate
strong growth through leveraging an
unprecedented pipeline of renewables
and transmission projects.
Strength through organic and
acquisitional growth
Our target of building a comprehensive
service offering across our three
segments – from coast to coast – is
based on our clear foundational
principle of pursuing organic growth
while integrating strategic acquisitions.
Each of these opportunities are
carefully considered to ensure they
strengthen our geographical spread
and take advantage of the significant
infrastructure investment in new &
existing markets.
This year we have demonstrated our
ability to maximise the capabilities
of previously stand-alone operations
in target markets which represented
value and scalability. The Genus-PFA
business alone – delivering innovative
pole maintenance & reinforcement
solutions through our acquisition of
Pole Foundations Australia - has been
awarded a number of major asset-
upgrade contracts; which in turn help to
maintain strong relationships with our
growing Utilities client base.
As noted last year, the restructuring
of our Industrial Services business in
FY2022 was a key strategic initiative
to drive improved results in this
segment. With FY24 Revenue up 94%
on the previous corresponding period,
Industrial Services is ideally placed
to capitalise on future opportunities,
particularly in the renewable energy
sector.
The foundations of our Communications
business remain firmly in place to
enable Genus to take advantage of the
large ongoing spend in this segment.
Having turned this business from loss
making to trading profitably by the
end of FY24, we intend to grow both
Revenue & EBIT in 2024/25 and beyond
through a combination of organic and
strategic acquisitions.
This proven approach - when
combined with cementing our existing
relationships with key clients - has
elevated Genus’ capacity to deliver
while allowing us to tender for contracts
which represent a step-change in
market perception.
Genus has always been an innovative,
adaptable company – and we are scaling and
rapidly evolving to deliver the infrastructure
needed to power Australia’s sustainable future.
Connecting the Future. Together.
We have continued to secure key
contract wins in line with our strategy
across our three segments of
Infrastructure, Industrial Services and
Communications.
Our Joint Venture partnership with
Acciona to deliver the HumeLink East
transmission project is progressing to
plan. This is a new 500kV transmission
line in Southern NSW will connect
Snowy Hydro's 2.0 expansion to
the network; as part of a $10 billion
transmission upgrade helping to
drive the National Energy Market’s
renewables transition.
This is a clear demonstration that
the market recognises Genus’ ability
to consistently provide the skills and
expertise required to complete complex
energy projects as an increasing
number are being presented the market
Other key contract wins through the
year include a $50 million award to
deliver a major program of maintenance
& network upgrade works for
Western Power; a contract to develop
transmission infrastructure supporting
Fortescue’s decarbonisation plan; and
a $50 million contract with ACCIONA
Energia for the Aldoga 275kV Solar
Farm substation design & construction
works in Queensland. This flagship
solar development will contribute
significantly to the Queensland
Government’s target of achieving 50 per
cent renewable energy by 2030.
Having completed Stage 1 of the
Kwinana Battery Energy Storage
System (KBESS1) for Synergy last year,
we continue to make good progress
toward completion of Stage 2 - which
positions us well for more utility-scale
battery opportunities across the nation.
Delivering for shareholders
The Board has declared a fully franked
final dividend of 2.5 cents per share
(cps), up from 2.0 cps last year.
As was the case in the previous
financial year, we remain focused on
maintaining a strong balance sheet to
support growth both organically and
by strategic acquisition where we see
good value.
An industry-leading safety culture
Our focus on safety and the conduct
of safety-awareness initiatives
throughout the year have continued
to strengthen our safety culture
and deliver improvements in our
performance. This is demonstrated by
our Total Recordable Injury Frequency
Rate (“TRIFR”) per million man hours
worked, of 2.7 at 30 June 2024 –
improving on our internal target of 2.8.
The Group’s Lost Time Injury Frequency
Rate (“LTIFR”) was again zero, which
is a direct result of the dedication and
expertise of our teams in the field. Our
expanding workforce continues to be
built on experienced professional staff,
highly skilled trades people, a network
of trades-based workshops and
specialised subcontractors.
Today the Group directly employs over
1,000 people including 89 apprentices/
trainees and graduates. We will always
prioritise direct employment of our
people – it not only helps us control
risk, but also plays a significant role in
protecting and growing our proactive
culture; which is one of our key
strategic pillars.
A strong growth platform
Our record performance this year puts
the company in an exceptional financial
position, with a cash balance of $101
million (up 116%) and net cash of $77.3
million; with the Group’s cash position
increasing 244% compared to the
previous year.
This continues to position us for organic
and strategic acquisition opportunities
focused on increasing our existing scale
and geographic reach.
Powering australia’s sustainable
future
With an extremely strong tender
pipeline of approximately $2 billion;
recurring revenue at $251 million per
annum; plus order book standing at
$519 million; budget and opportunity
leads in excess of $3 billion; and
a workforce exceeding 1,000, our
growing and diversified company is
well placed to reach new heights in the
years to come.
Australia’s energy transition is
accelerating – the milestone projects
we’ve secured during the year, along
with our healthy tender pipeline are a
clear demonstration that our growth
strategy positions us well to play an
active and major role in this expanding
pipeline of infrastructure opportunities
across Australia
The extraordinary commitment and
dedication of our people drives our
teams to go above and beyond, finding
creative solutions to every challenge. I
thank you all.
Finally, as always I would like to thank
you, our shareholders, for continuing
to be an integral part of our growth
ambitions - and I trust you will continue
to share in our future success.
Simon High
Chairman
The market recognises Genus’ ability to
consistently provide the skills and expertise
required to complete complex energy projects.
Annual Report 2024
GenusPlus Group LTD
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12
managing director's
review
A strong growth platform
FY2024 has seen Genus generate
a record financial result, reaching
further into both new and established
markets on the back of a substantial
integration of acquisitions and
consolidation of internal management
systems, procedures and organisational
structures. This performance has been
driven by the extraordinary dedication
& effort of our people, who now number
over 1,000; and is a clear reflection
of the strength of the markets and
industries in which we operate.
The diversification that we continue to
build into the business has helped us
maintain strong profitability. East coast
revenue has grown to 35% during 2024
(2023: 34%) and the Group delivered
record NPAT of 19.3m up 43.7%.
The Group’s continued focus on both
acquisitive and organic growth along
with diversification of recurring revenue
streams underpin the benefits we can
deliver to clients and our shareholders,
predominantly through increased
capacity, financial strength and
security.
This expansion in capability and access
to a greater forward pipeline has driven
a strong order book, which is again
supplemented by the traditionally
robust recurring revenue base that we
generate across the business.
A performance underpinned by
strong operational success
This year has seen Genus secure a
number of milestone projects across
the business. Our EPC delivery of
Balance of Plant and BESS installation
at the landmark Melbourne Renewable
Energy Hub continues apace, with a
recent visit from Federal and Victorian
Government Ministers marking arrival
of the first of over 400 Tesla Megapack
Battery units. We were also proud to
complete Electrical & Instrumentation
work at the 100MW North Star Junction
Solar Farm in the Pilbara region of WA,
delivering our first major utility-scale
solar asset. Anticipated recurring works
for major utilities across Australia will
continue to provide ongoing revenue in
the years ahead.
With these foundations in place the
Group was able to deliver a year of
unprecedented growth. From Revenue
of $551 million, normalised EBITDA
was up 23.2% to $45.3 million.
Our Communications team continues
its 3-year Master Module Agreement
with nbn under which Genus will
deliver the N2P Evolution Module to
deploy additional fibre infrastructure;
including the provision of specialist
planning, design and construction of
nbn broadband infrastructure. This
remains a key opportunity alongside our
ongoing contract with Telstra to grow
the Communications business. The
foundations of the division are in place
to enable Genus to take advantage
of significant forecast spend in the
communications industry.
The Group has a strong cash position
increasing Cash at bank to a record
$101 million at 30 June 2024, up 116%
on FY2023. Net cash is up to $82.8
million, up 111.6%.
Continuing our reconciliation
journey
On the back of proudly publishing
our first Reflect Reconciliation Action
Plan (RAP) last year - reaffirming our
commitment to actively work toward
reconciliation with Aboriginal and
Torres Strait Islander peoples – Genus
has continued to identify positive
engagement opportunities; and we
remain focused on creating tangible
outcomes for our Aboriginal and Torres
Strait Islander colleagues, partners and
communities.
Our RAP includes practical actions
that will drive Genus’ contribution to
reconciliation both internally and in the
communities in which we operate.
This year, Genus was a proud sponsor
of the Nunga Screen program - an
annual short-films initiative put
together by Country Arts SA, which
began streaming nationally for the
first time in 2024. Nunga Screen is
dedicated to bringing communities
together to share in culture and engage
in conversation with Aboriginal and
Torres Strait Islander peoples.
Our people
As ever, our success is dependent
on the extraordinary effort, capability
and commitment of our people. Their
dedication and support enables us to
continue to deliver smart, innovative
solutions across our diverse sectors,
which forms a significant part of Genus’
competitive advantage.
Investing in the next generation of
employees is integral to the continued
success of our business and the wider
industry. Our successful apprenticeship
program has expanded as we continue
to invest in the growth, development,
education and training for young
graduates, apprentices and trainees.
We currently support the career
ambitions of 89 apprentices, graduates
and trainees, which is building a
strong foundation of future skilled
tradespeople.
Powering up Australia.
We’re proud of our journey and even
prouder of where we’re going. With
every project, every partnership, and
every person we hire, we’re building a
company that stands for something
real.
With industry tailwinds gaining
momentum, Genus is forecasting
this underlying momentum to deliver
at least 20% growth in EBITDA in
FY2025. We expect to return to strong
growth in the medium term with a large
pipeline of renewables and transmission
projects to drive the business.
We expect to see continued growth
from our east coast operations and
an increase in recurring revenue in
FY2025; forecast at $251 million, up
12% on FY2024 actual results. The
increased focus on the power network
around Australia should continue
to yield significant opportunities
during the coming decades as the
system undergoes an accelerated
from traditional energy sources to
established and emerging renewable
technologies.
David Riches
Managing Director
FY2024
$
FY2023
$
Change
%
Revenue
551,189,613
444,178,894
24.1%
EBITDA1
44,875,648
33,666,128
Non-recurring transactions2
460,601
3,124,369
Normalised EBITDA3
45,336,249
36,790,497
23.2%
Depreciation & Amortisation4
(11,592,040)
(11,875,275)
Normalised EBIT-A5
33,744,208
24,915,222
35.4%
Amortisation of acquisition intangibles
(3,262,211)
(3,337,917)
EBIT
30,021,397
18,452,936
Profit for the year
19,262,036
13,405,524
NPAT-A6
21,545,583
15,742,065
36.9%
Note: The table contains non-IFRS measures that are unaudited but derived from audited FY2024 Financial Statements. These measures are
presented to provide shareholders with further insight into the Group’s performance.
1
EBITDA is earnings before interest, tax, depreciation and amortisation.
2
Non-recurring transactions relate to Acquisition costs, ECM Claim profits and Restructuring costs.
3
Normalised EBITDA is EBITDA plus Non-recurring transactions
4
Depreciation & amortisation excludes amortisation of acquisition intangibles.
5
Normalised EBIT-A is Normalised EBITDA less depreciation and amortisation (excluding amortisation of acquisition intangibles).
6
NPAT-A is Profit for the year plus amortisation of acquisition intangibles adjusted for tax effect at 30%.
The diversification we have built into the
business has helped maintain strong profitability
throughout the Group; Australia’s networks are
evolving, and we’re ready.
Annual Report 2024
GenusPlus Group LTD
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14
innovative people, delivering
results through expertise
Sustainability
GenusPlus Group LTD
16
Annual Report 2024
17
Sustainability
SHEQ
With over 1,000 people working across
Australia, it is essential for Genus to
have a robust approach to health,
safety and environment.
Our goal is to ensure that those
influenced by our work (including
employees, subcontractors, and the
general public) go home safely, every
day. This approach to health and safety
is embodied in the Group’s “Think Safe.
Work Safe. Home Safe.” message.
In October 2023, Genus received the
Work Health & Safety Foundation’s
Worker’s Compensation & Injury
Management Award – welcome
recognition of the tireless effort our
SHEQ team displays each and every
day.
We have established and implemented
an integrated safety, health,
environment, and quality (SHEQ)
management system that provides
the framework for how these areas are
managed.
We will continue to maintain our triple-
ISO Management System certification
(45001, 14001 & 9001) and to further
streamline our Group-wide SHEQ
management system.
Genus is currently developing a Climate
Transition Strategy & Greenhouse Gas
emissions framework. This will capture
emissions data to enable us to report in
accordance with anticipated legislation
changes.
To mitigate the structural challenges of
predominantly high-risk work and rapid
growth, our SHEQ team is focused on
identifying our critical risks based on
our Safety Non-Negotiables.
These Safety Non-Negotiables were
established to increase awareness
and understanding of critical risks and
control measures; provide a clear set of
standards that are easily understood by
all; and ultimately create an awareness
to help prevent serious workplace
injury and fatality. These safety non-
negotiables are communicated at
inductions, and regularly referred to
during toolboxes, health, and safety
communications and during incident
investigations.
Milestones achieved during FY24
include:
0
LTIFR
at 30 June 2024
2.7
TRIFR
at 30 June 2024 of 2.7
(exceeding our internal target of 2.8)
Safety is everything here at Genus.
Our people are our strength; they bring hard-earned experience and
dedication to every project we undertake.
Community
We’re proud to be a part of the
projects that keep Australia moving
forward – but we are equally dedicated
to supporting the progress of the
communities in which we operate by
extending aid through contributions,
grants, and sponsorships to
organisations that play a pivotal role in
their development.
Our dedication goes beyond local
sourcing, reflecting our commitment
to nurturing the growth and well-
being of the communities we serve.
Through our financial contributions,
we actively participate in initiatives
that make a meaningful difference in
these communities' development and
prosperity.
We foster employee engagement
in local community endeavours by
encouraging participation in volunteer
activities and endorsing attendance at
community events. Over the past year,
our employees have actively engaged
in a range of community initiatives,
including:
•
HumeLink East Project art
unveiling during team visit
to Ngunnawal Country: The
HumeLink East project, spanning
Wiradjuri, Gundungarra, and
Ngunnawal Country in NSW,
demonstrates a commitment
to honouring the Traditional
Custodians of the land. The
project's leadership team which
included the Genus team, joint
venture partner ACCIONA and
the Client TransGrid, embarked
on a cultural learning journey
on Ngunnawal Country in Yass,
facilitated by Wiradjuri artist Luke
Penrith.
•
Australian Breast Cancer
Research - In celebration of
Women's Health Month, Genus
enthusiastically participated in
supporting this important cause
by inviting all staff to wear pink to
work.
In addition to promoting
awareness through attire, Genus
took further steps to contribute to
cancer research.
We created a donation page,
with all proceeds dedicated
to funding research across
the spectrum of cancer, from
prevention to treatment and cure.
To demonstrate its commitment,
Genus pledged to match the total
amount donated by the Genus
Team, doubling the impact of
the contributions made by its
employees.
connecting
the future.
together.
GenusPlus Group LTD
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Annual Report 2024
19
Sustainability
People & Culture
At Genus, we believe in the power of
people - and we invest in ours because
they make our success possible.
Our people-first culture - underpinned
by core values of safety, integrity,
collaboration and mateship - remains a
crucial piece of the Group’s competitive
advantage.
Genus’ business is built on the efforts
and capability of its employees and
we firmly believe that support and
development of our workforce remain a
priority in delivering our critical services.
Investing in the future generation of
employees continues to be integral
to our continued success. Genus
believes in realising and developing
talent with a structured and supported
Apprenticeship Program. We currently
support the career ambitions of 89
apprentices, trainees and graduates
across the business who will form
the foundation of our future skilled
tradespeople.
The attraction of high calibre
employees is an ongoing challenge
and there continues to be a very
competitive employment market for
skilled professionals. Combined with
a continued focus on people-related
productivity improvements, Genus will
continue to invest in the acquisition,
development and retention of key
capability and talent to enable the
Company to successfully achieve
its vision and to maintain this vital
competitive advantage.
We remain committed to investing in
our employees through generating
opportunities to grow on personal and
professional levels, through varied
learning and development programmes
for apprentices, trades, operational,
professional and managerial employees.
This creates a significant pipeline of
talent throughout the Company.
Our diversity policies promote respect
and fair treatment for all employees,
and we seek to create an all-inclusive
workplace where our people are
encouraged regardless of age, gender,
ethnicity, disability, sexual orientation
or religion.
Our commitment to building a diverse
workforce is evident in all aspects
of employee engagement including
recruitment, professional development,
promotion and remuneration.
Our people are our strength; they bring hard-earned experience and
dedication to every project we undertake.
connecting
the future.
together.
Our commitment to building a diverse
workforce is evident in all aspects
of employee engagement including
recruitment, professional development,
promotion and remuneration.
Annual Report 2024
GenusPlus Group LTD
21
20
financial
report
2024
connecting the future
through innovative
power solutions
contents
Directors’ Report
22
Auditor’s Independence Declaration
38
Corporate Governance Statement
39
Consolidated Statement of Profit or Loss and Other Comprehensive Income
40
Consolidated Statement of Financial Position
41
Consolidated Statement of Changes in Equity
42
Consolidated Statement of Cash Flows
43
Notes to the Consolidated Financial Statements
44
Directors Declaration
96
Independent Auditor’s Report
98
Powering up Australia -
from inspiration to operation
22
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
22
Annual Report 2024
23
Directors’ Report
Directors’ Report
The directors present their report together with the financial statements on the consolidated entity, consisting of GenusPlus
Group Ltd and its controlled entities (the Company or Group) for the year ended 30 June 2024.
Directors’ details
The names and details of the Company’s directors in office during the financial year and until the date of this report are set out
below. Directors of the Company were in office for the entire period unless otherwise stated.
Mr David Riches
David Riches is the Managing Director and CEO of the Group. David is the founder of GenusPlus Group Pty Ltd and is a third-
generation recognised industry expert. David has led the business growth with a successful year on year track record.
During the past three years he has not served as a director of any other listed companies.
Mr Paul Gavazzi
Paul Gavazzi is a Non-Executive Director and the Chair of the Audit and Risk Committee, and a member of the Remuneration
and Nominations Committees. Paul has over 40 years’ experience as a practising lawyer in commercial law, specialising in
construction, projects and infrastructure. Paul was formerly senior partner of a large national law firm, and founder of the firm’s
Construction, Projects and Infrastructure Group. He is also the founder & Managing Director of Solve Global Pty Limited, a
company that plans, manages, predicts and solves high-stakes commercial disputes using data-based analytics and strategic
problem solving. Paul is an associate of the Chartered Institute of Arbitrators (UK), member of the Society of Construction Lawyers
and member of the Australian Institute of Company Directors.
During the past three years he has not served as a director of any other listed companies.
Mr Simon High
Simon High is the Non-Executive Chairman of the Group. Simon is a qualified Civil Engineer, Fellow of the Institute of Engineers
Australia and Fellow of the Australian Institute of Company Directors.
Simon has over 45 years’ experience globally in the Oil & Gas, Mining and Industrial Infrastructure industries. Simon held Senior
Executive roles with Kvaerner Oil & Gas, United Construction, Clough Ltd, Southern Cross Electrical Engineers and Ausgroup Ltd.
During the past three years he has not served as a director of any other listed companies.
Mr José Martins
José Martins is a Non-Executive Director and a member of the Audit and Risk Committee and Chair of the Remuneration and
Nominations Committee. He brings over 25 years’ experience in the financial management of public and private companies. Jose
is a former CFO of ASX listed Ausdrill Ltd, Macmahon Holdings Ltd and Alliance Mining Commodities.
During the past three years he has also served as a director of the following listed companies: Atlas Pearls Ltd (ASX: ATP).
Company Secretaries
Damian Wright is the Chief Financial Officer and Joint Company Secretary of GenusPlus Group Ltd. Damian has held senior finance
positions including CFO and Company Secretary for private and ASX listed entities. Damian holds a Degree in Commerce, and is a
fellow of CPA Australia and a fellow of the Governance Institute of Australia.
Strati Gregoriadis (BA, LLB, MBA) is the General Counsel and Joint Company Secretary of GenusPlus Group Ltd. Strati has
previously, for a number of years, held General Counsel & Company Secretary roles with ASX listed entities.
Interests in the shares and options of the Company and related bodies corporate
As at the date of this report, the interests of the directors in the shares and options of GenusPlus Group Ltd were:
Director
Number of
ordinary shares
Interest in
options
David Riches
93,583,947
-
Simon High
304,167
-
José Martins
100,000
-
Paul Gavazzi
204,167
-
Principal activities
Genus is a specialist power and communications infrastructure and services provider operating across Australia. With years of
practical experience across Australia, we design, build and maintain electrical transmission and distribution networks, substations
and battery systems.
We enable customers to integrate new generation technology into traditional networks and support emerging networking
solutions, meeting the demands of a carbon neutral economy.
Capitalising on our expertise in power networks and using the world’s best knowledge and technology, we also specialise in
delivering integrated, efficient and scalable communication network solutions, including network design, and fixed and wireless
infrastructure supported by real time network management expertise and capability.
There have been no significant changes in the nature of these activities during the year.
Review of operations and financial results
A summary of the key financial performance metrics for the current financial year (FY2024) is provided below, with comments on
significant movements compared to the financial year ended 30 June 2023.
The Group reported total revenue of $551,189,613, compared to $444,178,894 in FY2023, a 24.1% increase. The growth during the
period was driven by increased activity across all 3 segments. The Group benefitted from favourable market conditions particularly
in the Industrial Services segment which saw an increase in activity in the new energy sector.
The higher revenue resulted in an increase in the Normalised EBITDA to $45.3 million, 23.2% higher than FY2023 ($36.8 million).
Note: EBITDA is a non-IFRS measure that is unaudited but derived from audited FY2024 Financial Statements. This measure is
presented to provide shareholders with further insight into the Group’s performance.
Depreciation and Amortisation of $14.9 million, was down 2.4% from FY2023 of $15.2 million. While interest costs rose during the
period, this was more than offset by increased interest income which resulted in net finance costs reducing 27.8% to $1 million,
from $1.4 million in FY2023.
The net profit of the Group for the financial year after providing for income tax amounted to $19,262,038, an increase of 44.2%
compared to $13,405,524 in FY2023.
The overall strong FY2024 results has created a solid platform for future strong growth with significant progress made to position
the Group to be an active participant in the transition to renewable energy.
The diversification that is being built into the business has helped maintain strong profitability of the Group. East coast revenue
has grown to 35% during 2024 (2023: 34%).
The Group has a strong cash position increasing Cash at bank to $101 million at 30 June 2024, up from $46.7 million in FY2023.
Net cash (cash and cash equivalents less bank debts, excluding right-of-use debts) is up to $77.3 million compared to $22.4
million in 2023.
The Group’s net assets increased by $16,190,309 which reflects earnings in the year net of dividend payments.
The acquisitions which occurred during the year are in line with the Group’s strategy to strengthen its geographical position and
to take advantage of significant infrastructure investment in new markets. Refer to Note 36.
A comparison of the Group’s performance from continuing operations is set out below:
FY2024
$
FY2023
$
Change
%
Revenue
551,189,613
444,178,894
24.1%
EBITDA1
44,875,648
33,666,128
Non-recurring transactions2
460,601
3,124,369
Normalised EBITDA3
45,336,249
36,790,497
23.2%
Depreciation & Amortisation4
(11,592,040)
(11,875,275)
Normalised EBIT-A5
33,744,208
24,915,222
35.4%
Amortisation of acquisition intangibles
(3,262,211)
(3,337,917)
EBIT
30,021,397
18,452,936
Profit for the year
19,262,036
13,405,524
NPAT-A6
21,545,583
15,742,065
36.9%
Note: The table contains non-IFRS measures that are unaudited but derived from audited FY2024 Financial Statements. These measures are
presented to provide shareholders with further insight into the Group’s performance.
1.
EBITDA is earnings before interest, tax, depreciation and amortisation.
2.
Non-recurring transactions relate to Acquisition costs, ECM Claim profits and Restructuring costs.
3.
Normalised EBITDA is EBITDA plus Non-recurring transactions
4.
Depreciation & amortisation excludes amortisation of acquisition intangibles.
5.
Normalised EBIT-A is Normalised EBITDA less depreciation and amortisation (excluding amortisation of acquisition intangibles).
6.
NPAT-A is Profit for the year plus amortisation of acquisition intangibles adjusted for tax effect at 30%.
24
GENUSPLUS GROUP LTD
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Directors’ Report
Directors’ Report
Pipeline
The Group continues to achieve significant growth in its business underpinned by existing contracted work, recurring revenue
from regular clients, and anticipated revenue from its existing tender pipeline of works.
Revenue from recurring works including long term customer/panel revenue and revenue from long term supply & maintenance
contracts, and the current outstanding orderbook for FY2025 has grown and the platform is there for the Group to sustain
continued growth.
In addition to the tendered pipeline there are further significant budgets and opportunities in progress. Work on initial budgets for
clients, which are not yet at formal tender stage, is common in our industry and helps provide Genus with insights into the long
term requirements for its services.
Genus is seeing the pipeline for the transition of the Australian transmission network grow substantially. In addition to the major
investment in the transmission network and battery storage around Australia, Genus is well positioned to construct connections
to the new transmission network from new energy power sources and renewable energy zones.
Outlook
Strong momentum generated in FY2024 provides a solid base to support earnings growth in FY2025. Genus expects to continue
its strong growth in the medium term with a large pipeline of renewables and transmission projects to drive medium to long term
growth in the business.
The Group expects to see continued growth from its east coast operations and increase in services revenue in FY2025. The
increase focus on the power network around Australia should see significant opportunities present during the coming 10-20 years
as the network goes through a substantial transition from traditional energy source of coal to generation from new and renewable
energy.
Growth Strategy
Significant investment has been put into growing the east coast presence of Genus to be positioned for the substantial
investment required to the power network over the next 10-20 years. Substantial progress has been made by Genus in expanding
the business into the much larger east coast markets, which now represents 35% of revenue of the business. During the year
the company acquired 100% of Prasinus Energy Services Pty Ltd in Victoria. The acquisition of Prasinus is aligned to the Group’s
geographic growth strategy by expanding its service offering within the growing Eastern Australian market and marks the first
permanent operations within Victoria. The finalisation of the Blue Tongue Energy acquisition enables GenusPlus to further its
service offerings in the battery energy storage and renewables sectors.
Genus Communications was awarded a 3-year Master Module Agreement with nbn in July 2023 pursuant to which nbn has
awarded the N2P Evolution Module to deploy additional fibre infrastructure for nbn which includes the provision of specialist
planning, design and construction of nbn broadband infrastructure. This is a key opportunity alongside Genus’ contract
with Telstra to grow the Communications business. The foundations of the business remain in place to enable Genus to take
advantage of the large ongoing spend in the communications industry.
To effectively serve our clients across the nation and establish ourselves as the contractor of choice, we are committed to
investing in the specialised plant and equipment necessary for our operations.
We remain receptive towards further M&A opportunities to continue our growth trajectory through acquisitions and organically
into new geographical locations and service offerings, expanding our national footprint.
Significant changes in the state of affairs
Other than noted elsewhere in this report, there were no significant changes in the state of affairs of GenusPlus Group that
occurred during the year.
Dividends
The Board has resolved to declare a dividend in respect of the year ended 30 June 2024 of 2.5 cents per share fully franked (30
June 2023: 2.0 cents per share fully franked) for a total of $4,443,124. (30 June 2023: $3,554,499). The ex-Dividend Date for this
dividend will be 1 October 2024, the Record Date is 2 October 2024 and the Payment Date will be 1 November 2024.
Events arising since the end of the reporting period
On 26 August 2024, the Directors declared a final fully franked dividend of 2.5 cents per share with a record date of 2 October
2024 and a payment date of 1 November 2024. The total dividend payable is an aggregate of $4,443,124.
Other than the matter mentioned above, no matters or circumstances have arisen since the end of the financial year which
significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs
of the Group in future financial years.
Likely developments
The Group will continue to seek opportunities to provide its services in installation, construction and maintenance of power and
communication systems across Australia.
The Group’s strategy includes:
•
Continuing to replicate its successful business model to penetrate the large east coast markets, including growing its
strategic acquisitions in Victoria, Tasmania, NSW and QLD;
•
Pursue substation and battery energy system projects, utilising the ability to be more selective on projects given the
strength of the Genus brand;
•
Taking advantage of the expected growth in electrical network infrastructure spending by public and private utility
companies in Australia;
•
Taking advantage of the expected growth in resources sector activity and related electrical network infrastructure
construction;
•
Continuing to maintain and grow its recurring works including long term customer/panel revenue and revenue from long
term supply & maintenance contracts to provide a stable base line of year on year revenue;
•
Continuing to grow the Communications business in the large telecommunications sector;
•
Continuing to maintain and develop new customer relationships;
•
Continuing to maintain Genus’ culture and significant investment into staff training; and
•
Continuing to maintain its diversification between the Government utilities and the private sectors.
Risk Management
In managing risk, Genus has adopted a proactive approach aligned with ISO31000 and the Corporate Governance Principles and
Recommendations 4th Edition of the ASX Corporate Governance Council.
Genus endeavours to strike the correct balance between managing risks and making effective risk-reward decisions. Given the
breadth, scale and geographies of Genus’ operations, Genus is exposed to a wide range of factors which have the potential to
impact it. It has controls in place to attempt to manage and mitigate risks where it is practicable and efficient to do so, although
there is no guarantee that these efforts will be successful. Below is an overview of:
(i)
some key material risks Genus is exposed to which could potentially have a material adverse impact on the financial
condition and results of Genus’ operations; and
(ii)
how it manages those risks. These risks are not set out in any particular order and are not intended as an exhaustive list of all
the uncertainties and risks Genus is or may be exposed to.
Winning New Work and Competition
Genus’ performance is impacted by its ability to win and complete new contracts. Any failure by Genus to continue to win new
contracts will impact its financial performance and position. Genus operates in a competitive market against domestic and
international suppliers, and there is a risk that due to competitor actions and market pressures Genus’ pricing may come under
pressure.
Genus endeavours to secure and sustain high-quality projects supported by strong financial and commercial practices, with a
disciplined approach to pricing. Nevertheless, there exists inherent unpredictability in pricing projects due to the risks prevalent
in our operating environment. Genus is focusing on promoting and building its brand, and on delivering to its customers through
excellent service delivery.
26
GENUSPLUS GROUP LTD
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Annual Report 2024
27
Directors’ Report
Directors’ Report
Financial
Maintaining financial stability is crucial for Genus’ long-term success, and a failure by Genus to maintain this financial stability
could adversely impact its operations and financial performance.
Genus actively monitors and manages financial risks through prudent financial planning, budgeting, and risk assessment
processes. Genus continuously evaluates market conditions, manages currency risks, and maintain robust financial controls
and reporting mechanisms. By adhering to these procedures, Genus aims to safeguard its financial performance and ensure the
sustainable growth of its business.
Liquidity Risk
This refers to the potential inability of Genus to meet its financial obligations when they become due. This risk can arise from
factors such as counterparty risk, underperforming projects, and challenges in efficiently managing cash.
Genus manages this risk by monitoring scheduled debt servicing payments for long-term financial liabilities as well as forecast
cash inflows and outflows due in day-to-day business, and with a comprehensive insurance program providing protection against
key risks and losses.
Further information can be found in Note 39 of this Annual Financial Report.
Financing Risk
Genus has financing facilities with external financiers. A default under any of these facilities could result in withdrawal of financial
support or an increase in the cost of financing. Genus manages this risk by monitoring banking covenants regularly and reporting
to the financiers quarterly. Regular meetings are held with the financiers to keep them abreast of the Group performance where
existing and new facility requirements are discussed.
Bank Guarantee and Insurance Bond Facilities
Genus’ customers often require Genus to provide security in the form of bank guarantees or insurance bonds. As Genus wins
more and larger contracts, its bank guarantee and insurance bond facilities are reduced and this could constrain or inhibit Genus
in taking on new work.
Genus manages this risk through early engagement and negotiation with the providers of its facilities, seeking new or additional
facilities as required, and actively managing the return of outstanding guarantees and bonds.
Project Delivery, Margins and Operations
Execution and delivery of projects involves judgement regarding the planning, development and operation of complex operating
facilities and equipment. Genus’ operations, cash flows and liquidity could be affected if the resources or time needed to complete
a project are miscalculated, if it fails to meet contractual obligations, or if it encounters delays or unspecified conditions. Cost
overruns, unfavourable contract outcomes, serious or continued operational failure, adverse industrial relations outcomes,
disruption at key facilities, disruptions to information and communication systems or a safety incident have the potential to have
an adverse financial impact. Genus is also exposed to input costs through its operations, such as the cost of fuel and energy
sources, equipment and personnel. To the extent that these costs cannot be passed on to customers in a timely manner, or at all,
Genus’ financial performance could be adversely affected.
Genus employs project management methodologies to ensure timely and efficient completion of projects while maintaining high-
quality standards. It continuously evaluates project risks, employs project risk mitigation strategies, and monitors project progress
closely. By implementing effective project controls and optimising operational efficiencies, Genus aims to deliver projects within
budget and protect its margins.
Labour Cost and Availability
Genus’ growth and profitability may be limited by loss of key operating personnel, inability to recruit and retain skilled and
experienced employees or by increases in compensation costs. The growth of activity in the power sector has increased demand
for quality resources, creating a tightening market and upward pressures to secure skilled leaders, professionals and personnel.
The Group mitigates these risks by taking a proactive and adaptable approach. The Group regularly plans workforce requirements,
utilising human resource management software to streamline processes to track workforce data, and through contingency
planning, and training and internal promotion. It continues to work on embedding its values, desired organisational culture, and
Code of Conduct throughout the Group as it carefully selects and promotes leaders who demonstrate the desired skill, values and
behaviours that underpin its brand.
Contract Pricing Risk
If relevant internal processes are not complied with or if Genus materially underestimates the cost of providing services,
equipment, or plant, there is a risk of a negative impact on its financial performance.
Genus has strong internal tendering and commercial review processes aimed at ensuring relevant costs and commercial risks are
identified and priced into its bids.
Interruption to operations
Operations can be interrupted due to factors beyond Genus’ control, including prolonged heavy rainfall or cyclones, geological
instability, accidents or unsafe conditions, equipment breakdowns, industrial relations issues and scarcity of materials and
equipment. Interruptions to existing operations or delays in commencing operations may result in lost revenue and, in some
circumstances, additional costs for Genus, adversely affecting Genus’ business, results of operations, and financial condition.
Genus also depends on its clients’ assessments of the financial viability of their projects, ensuring they have access to sufficient
funding to meet project working capital and debt covenant requirements. If a client fails to obtain sufficient funding or meet its
working capital or debt covenant requirements, the client may scale back or cancel its contract with Genus, adversely impacting
Genus’ financial performance.
Genus mitigates these risks by looking to agree contract terms and conditions to ensure operational interruptions outside of
Genus’ control are appropriately priced into the tender, or relief under the contract terms and conditions is prescribed to ensure
fair and equitable outcomes. Genus works closely with its clients to understand their issues and identify opportunities where
Genus can assist in minimising the impact of the identified issues.
Health and Safety
Genus may experience incidents, including life-changing events which have the potential to cause physical or psychological
harm. This could result in the loss of a contract, have an adverse impact to Genus’ reputation, and potentially difficulty in winning
new work.
Genus is committed to providing a systematic process to manage risks around health and safety. Health and Safety is the
first item discussed at Board and other internal meetings, regular safety audits are undertaken, and it has ongoing employee
engagement initiatives to promote a strong safety culture. Genus has established a Health, Safety, Environment and Quality
(SHEQ) management system aligned with the Australian standards. The systems encompass various key aspects:
•
Integration of psychosocial hazards into operational risk management practices, ensuring comprehensive identification and
mitigation of potential risks.
•
Provision of appropriate training, supervision, and resources to promote a safe working environment.
•
Implementation of High-Risk Standards and verification processes to establish a framework for managing high-risk incidents
that could lead to severe injuries or fatalities.
•
Regular review and audit of SHEQ processes and controls to ensure ongoing effectiveness and compliance.
•
Monitoring of periodic SHEQ reporting and SHEQ bulletins at the Group level to identify trends, areas for improvement, and to
take prompt action when necessary.
Cyber Security
The potential for cyber security attacks, misuse and release of sensitive information are ongoing and real risks to Genus.
Genus has been reviewing and in the process of implementing and upgrading a number of cybersecurity measures to protect
its IT infrastructure, networks, and sensitive data. These measures include investing in systems and infrastructure, firewalls,
encryption protocols, regular vulnerability assessments, and employee training on data security best practices, and implementing:
•
Information security management systems to ensure comprehensive protection and management of information assets.
•
Utilisation of anti-malware and endpoint detection and response software to detect and prevent malicious activities on our
systems.
•
Implementation of multi-factor authentication to add an extra layer of security by requiring multiple forms of identification
for access.
•
Developing business resilience plans that specifically address cyber-related scenarios to ensure continuity of operations in
the event of an incident.
28
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GenusPlus Group Ltd
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Annual Report 2024
29
Climate Change and Carbon Emissions
The transition to a low-carbon economy with heightened focus on carbon emissions and the significant increased regulation
and focus in these areas has resulted in growing pressure on companies to disclose their measures for identifying and managing
climate related risks.
Genus will seek continual improvements in energy efficiency across its business to understand and reduce the carbon intensity of
operations and is reviewing and gathering data required for reporting.
Social, legal and compliance
Genus is subject to a broad range of laws, regulations and standards in the jurisdictions in which it operates. Changes in laws
and regulations, and non-compliance due to inadequate processes or systems or by people and /or through conduct could lead
to losses and liabilities, reputational damage and business interruption. Failure to meet the increasing expectations of Genus’
stakeholders could impact future plans, reputation and its ability to operate. Failure to comply with regulatory requirements or
take satisfactory corrective action in response to adverse inspection findings could result in enforcement actions. Genus operates
in a regulated environment with the potential for significant penalties for non-compliance with applicable laws and regulations.
Amendments to current laws and regulations governing operations or more stringent implementation of laws and regulations
could adversely impact Genus, including increased expenses, capital expenditure and costs. Genus is also dependent on various
technical and financial accreditations to operate the business, including safety accreditations, quality assurance standards,
technical accreditations and financial accreditations. Any failure to maintain or comply with accreditation can impact Genus’
eligibility to participate in certain projects and sectors.
Genus mitigates this through: monitoring regulatory and legislative changes that impact the organisation and ensuring Genus
is monitoring and up to date with its compliance obligations and modifying procedures and protocols to meet its regulatory
obligations; embedding its values and Code of Conduct and associated policies, which are covered in mandatory training; its
whistleblower policy and procedure; Modern Slavery risk management including supplier risk assessment process and annual
reporting through the Modern Slavery Statement; and, its Reconciliation Action Plan.
Unfavourable changes in the business environment or operating conditions
Key assumptions relating to the operating environment (including potential disruption events) and/or budget forecasts may prove
to be incorrect.
Genus mitigates this through identifying and managing strategic and emerging risks and as part of the risk management
framework; continued review and management of its cost base; continuous financial model review and evaluation; and,
consideration of the macroeconomic environment.
Dependency on third parties and critical supply chains
Delays and disruption could be experienced with supply chains due to the impact of macroeconomic factors on supply chains and
logistics.
Genus mitigates this by monitoring the macroeconomic environment which could impact its operations and supply chains and
looking to agree contract terms and conditions to ensure operational interruptions outside of Genus’ control are appropriately
priced into the tender, or relief under the contract terms and conditions is prescribed to ensure fair and equitable outcomes.
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 is as follows:
Board Meetings
Audit and Risk
Committee
Remuneration and
Nominations Committee
Other Committees
Board Member
A
B
A
B
A
B
A
B
David Riches
21
21
n/a
n/a
3
2
n/a
n/a
Simon High
21
21
2
2
n/a
n/a
3
3
Paul Gavazzi
21
20
2
2
3
3
3
3
José Martins
21
20
2
2
3
3
3
3
Where:
Column A: is the number of meetings the Director was entitled to attend
Column B: is the number of meetings the Director attended
Performance Rights Over Unissued Shares and Options
At 30 June 2024 there are 3,196,492 Performance Rights outstanding (FY2023: Nil). Details of Performance Rights granted to
Executives as part of their remuneration are set out in their Remuneration Report.
No options over issued shares or interests in the Group were granted during or since the end of the financial year and there were
no options outstanding at the date of this report.
Remuneration Report (audited)
The Directors of GenusPlus Group Ltd (the Group) present the Remuneration Report for Non-Executive Directors, Executive
Directors and other Key Management Personnel, prepared in accordance with the Corporations Act 2001 and the Corporations
Regulations 2001.
The Remuneration Report is set out under the following main headings:
a
Principles used to determine the nature and amount of remuneration
b
Details of remuneration
c
Share-based remuneration
d
Bonuses included in remuneration
e
Performance rights held by key management personnel
f
Shares held by key management; and
g
Other transactions with key management personnel and their related parties
a
Principles used to determine the nature and amount of remuneration
The principles of the Group’s executive strategy and supporting incentive programs and frameworks are:
•
to align rewards to business outcomes that deliver value to shareholders;
•
to drive a high performance culture by setting challenging objectives and rewarding high performing individuals; and
•
to ensure remuneration is competitive in the relevant employment market place to support the attraction, motivation
and retention of executive talent
GenusPlus Group Ltd has structured a remuneration framework that is market competitive and complementary to the
reward strategy of the Group.
The Board has established a Nomination and Remuneration Committee which operates in accordance with its charter as
approved by the Board and is responsible for determining and reviewing compensation arrangements for the Directors and
the Executive Team.
The Committee has engaged independent remuneration consultants to provide any necessary information to assist in the
discharge of its responsibilities (refer to the disclosures below).
The remuneration structure that has been adopted by the Group consists of the following components:
•
fixed remuneration being annual salary; and
•
short term incentives, being employee share schemes and bonuses
The Nomination and Remuneration Committee assess the appropriateness of the nature and amount of remuneration on
a periodic basis by reference to recent employment market conditions with the overall objective of ensuring maximum
stakeholder benefit from the retention of a high quality Board and Executive Team.
The payment of bonuses, share options and other incentive payments are reviewed by the Nomination and Remuneration
Committee annually as part of the review of executive remuneration and a recommendation is put to the Board for
approval. All bonuses, options and incentives must be linked to pre-determined performance criteria.
Directors’ Report
Directors’ Report
30
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
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Annual Report 2024
31
Remuneration Report (audited) (continued)
Short Term Incentive (STI)
GenusPlus Group Ltd performance measures involve the use of annual performance objectives, metrics, performance appraisals
and continuing emphasis on living the Company values.
The performance measures are set annually after consultation with the Directors and executives and are specifically tailored to
the areas where each executive has a level of control. The measures target areas the Board believes hold the greatest potential for
expansion and profit and cover financial and non-financial measures.
The Key Performance Indicators (KPIs) for the Executive Team are summarised as follows:
Performance areas
•
financial: operating profit and earnings per share; and
•
non-financial: strategic goals set by each individual business unit based on job descriptions
The STI Program incorporates only cash components for the Executive Team and other employees.
The Board may, at its discretion, award bonuses for exceptional performance in relation to each person’s pre-agreed KPIs.
Long Term Incentive (LTI)
The Company considered that it was desirable to adopt two new employee incentive schemes pursuant to which the Company
can issue Equity Securities to attract, motivate and retain key Directors, employees and consultants and provide them with the
opportunity to participate in the future growth of the Company. The LTI schemes were approved by shareholders at the Annual
General Meeting of the company held 24 November 2023.
Under the Plans, the Board may offer to eligible persons the opportunity to subscribe for such number of Equity Securities in the
Company as the Board may decide and on the terms set out in the rules of the Plans.
The purpose of the employee securities incentive plan is to:
(a)
assist in the reward, retention and motivation of Eligible Participants;
(b)
link the reward of Eligible Participants to Shareholder value creation; and
(c)
align the interests of Eligible Participants with shareholders of the Group, by providing an opportunity to Eligible Participants
to receive an equity interest in the Company in the form of Securities.
Voting and comments made at the Company’s last Annual General Meeting
GenusPlus Group Ltd held its Annual General meeting on 24 November 2023. There were no adverse comments from the vote on
the Remuneration Report for the financial year ending 30 June 2023.
Consequences of performance on shareholder wealth
In considering the Group’s performance and benefits for shareholder wealth, the Board have regard to the following indices in
respect of the current financial year and the previous two financial years:
Item
2024
2023
2022
EPS (cents)
10.8
7.6
8.4
Dividends (cents per share)
2.5
2.0
1.8
Net profit ($’000)
19,262
13,405
13,556
Share price 30 June ($)
2.06
1.12
1.27
Remuneration Report (audited) (continued)
b
Details of remuneration
Details of the nature and amount of each element of the remuneration of each Key Management Personnel (KMP) of GenusPlus Group Ltd are shown in the table below:
Director and other Key
Management Personnel
Short-term
employee benefits
Post-employment
benefits
Long-term
benefits
Performance
based % of
remuneration
Employee
Year
Cash salary
and fees
Cash
bonus
Non-monetary
benefits
Superannuation
Long service
leave
Termination
benefits
Share-based
payments
Total
Executive Directors
$
$
$
$
$
$
$
$
David Riches
CEO and
Managing Director
2024
373,738
197,532
-
27,399
48,298
-
-
646,967
30.5%
2023
335,908
-
-
25,292
10,750
-
-
371,950
-
Non-executive Directors
Simon High
Chairman
2024
119,961
-
-
13,196
-
-
-
133,157
-
2023
102,500
-
-
10,763
-
-
-
113,263
-
José Martins
Independent
2024
77,283
-
-
8,501
-
-
-
85,784
-
2023
65,000
-
-
6,825
-
-
-
71,825
-
Paul Gavazzi
Independent
2024
77,283
-
-
8,501
-
-
-
85,784
-
2023
65,250
-
-
6,851
-
-
-
72,101
-
2024 Total
2024
648,265
197,532
-
57,597
48,298
-
-
951,692
20.8%
2023 Total
2023
568,658
-
-
49,731
10,750
-
-
629,139
-
Directors’ Report
Directors’ Report
32
GENUSPLUS GROUP LTD
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Annual Report 2024
33
Remuneration Report (audited) (continued)
b
Details of remuneration (continued)
The relative proportions of remuneration that are linked to performance and those that are fixed are as follows:
Employee
Fixed
remuneration
(%)
At risk:
Short Term
Incentives (STI)
(%)
Executive Directors
David Riches
43
57
Other Key Management Personnel
Damian Wright
61
39
Michael Green
61
39
George Lloyd
61
39
Strati Gregoriadis
72
28
Hasan Murad
61
39
Remuneration and other terms of employment for the Executive Directors and other Key Management Personnel are
formalised in a Service Agreement. The major provisions of the agreements relating to remuneration are set out below:
Employee
Base salary
(including super)
($)
Term of
agreement
Notice
period
David Riches
453,200
Unspecified
Six months
Damian Wright
352,400
Unspecified
Three months
Michael Green
315,570
Unspecified
Three months
George Lloyd
342,122
Unspecified
Six months
Strati Gregoriadis
350,000
Unspecified
Three months
Hasan Murad
356,897
Unspecified
Three months
Directors’ Report
Directors’ Report
Remuneration Report (audited) (continued)
b
Details of remuneration (continued)
Director and other Key
Management Personnel
Short-term
employee benefits
Post-employment
benefits
Long-term
benefits
Performance
based % of
remuneration
Employee
Year
Cash salary
and fees
Cash
bonus
Non-monetary
benefits
Superannuation
Long service
leave
Share-based
payments
Total
Other Key Management Personnel
$
$
$
$
$
$
$
Damian Wright
CFO & Joint Company
Secretary
2024
310,575
142,893
-
27,399
17,107
54,699
552,673
35.8%
2023
272,921
99,254
-
25,292
8,835
-
406,302
24.4%
Michael Green
EGM Corporate Services
2024
288,170
136,617
16,185
27,399
4,803
52,245
525,419
35.9%
2023
259,582
94,800
-
25,280
11,141
-
390,803
24.3%
George Lloyd,
EGM National Business
Development
2024
314,073
145,402
10,715
27,399
16,244
56,658
570,491
35.4%
2023
297,144
107,193
-
25,292
7,976
-
437,605
24.5%
Strati Gregoriadis
General Counsel & Joint
Company Secretary
2024
321,077
89,250
-
27,399
-
24,837
462,563
24.7%
2023
138,654
-
-
12,646
-
-
151,300
0.0%
Hasan Murad
EGM Commercial
2024
329,133
197,889
24,179
27,399
6,854
35,812
621,266
37.6%
2023
320,000
114,554
-
25,292
-
-
459,846
24.9%
2024 Total
2024
1,563,028
712,051
51,079
136,995
45,008
224,251
2,732,412
34.3%
2023 Total
2023
1,288,301
415,801
-
113,802
27,952
-
1,845,856
22.5%
34
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
34
Annual Report 2024
35
Remuneration Report (audited) (continued)
c
Share-based remuneration
No member of the Key Management Personnel has an entitlement to be paid in shares.
d
Bonuses included in remuneration
Details of the short-term incentive cash bonuses awarded as remuneration to each key management personnel, the
percentage of the available bonus that was paid in the financial year, and the percentage that was forfeited because the
person did not meet the service and performance criteria is set out below. No part of the bonus is payable in future years.
Employee
Included in
remuneration
($)
Percentage
vested during
the year
Percentage
forfeited during
the year
Executive Directors
David Riches
197,532
40.66
59.34
Other Key Management Personnel
Damian Wright
142,893 70.78
29.22
Michael Green
136,617 72.94
27.06
George Lloyd
145,402
71.22
28.78
Strati Gregoriadis
89,250 42.76 57.24
Hasan Murad
197,889 92.50
7.50
e
Performance rights held by key management personnel
Long term incentive (LTI)
During the year key management personnel were granted a long-term incentive based on the follow details:
•
Absolute Total Shareholder Return (ATSR): The ATSR is calculated as the compound annual growth rate over the
performance period based on the 30 day volume weighted average price (“VWAP”) up to and including the start and
finish dates of the period.
Tranche A
Tranche B
SAR
1 July 2023 to 30 June 2025
1 July 2023 to 30 June 2026
1 July 2023 to 30 June 2027
ATSR
Vest %
ATSR
Vest %
Less than 8%
0%
Less than 8%
0%
Less than 0%
0%
Between 8%
and 12%
Pro rata allocation
between 50%
and 100%
Between 8% and
12%
Pro rata allocation
between 50% and
100%
Between 0%
and 50%
Pro rata allocation
between 0% and
100%
More than 12%
100%
More than 12%
100%
More than 50%
100%
Initial VWAP
1.04
Initial VWAP
1.04
Initial share price
1.12
Target
Target
Target
8%
1.21
8%
1.31
0%
1.12
12%
1.30
12%
1.46
50%
1.68
The proportion of Tranche A and Tranche B LTI Performance Rights that vest is based on the ATSR over the respective
performance periods.
There is a service condition that the key management personnel must be employed at the date of vesting for automatic
receipt of the shares. If they are not employed at the date of vesting, the board may, at its discretion, elect to award the
shares to the key management personnel.
The ATSR targets for Tranche A & Tranche B exclude dividends If dividends are paid then the target price needs to be
adjusted.
Remuneration Report (audited) (continued)
e
Performance rights held by key management personnel (continued)
The number of performance rights to acquire shares in the Company held during the 2024 reporting period by each of the
key management personnel of the Group; including their related parties are set out below. No options are held by Directors.
Employee
Grant date
Balance
at 1 July
2023
Number
granted
Vested
Lapsed
Held at 30
June 2024
Expiry date
David Riches
Tranche A
Performance Rights
-
-
-
-
-
-
-
Tranche B
Performance Rights
-
-
-
-
-
-
-
Share Appreciation
Performance Rights
-
-
-
-
-
-
-
Damian Wright
Tranche A
Performance Rights
19 February
2024
-
92,193
-
-
92,193
1 July 2027
Tranche B
Performance Rights
19 February
2024
-
98,933
-
-
98,933
1 July 2027
Share Appreciation
Performance Rights
19 February
2024
-
199,136
-
-
199,136
1 July 2028
Michael Green
Tranche A
Performance Rights
19 February
2024
-
88,056
-
-
88,056
1 July 2027
Tranche B
Performance Rights
19 February
2024
-
94,494
-
-
94,494
1 July 2027
Share Appreciation
Performance Rights
19 February
2024
-
190,200
-
-
190,200
1 July 2028
George Lloyd
Tranche A
Performance Rights
19 February
2024
-
95,494
-
-
95,494
1 July 2027
Tranche B
Performance Rights
19 February
2024
-
102,476
-
-
102,476
1 July 2027
Share Appreciation
Performance Rights
19 February
2024
-
206,267
-
-
206,267
1 July 2028
Strati Gregoriadis
Tranche A
Performance Rights
19 February
2024
-
63,081
-
-
63,081
1 July 2027
Tranche B
Performance Rights
19 February
2024
-
67,693
-
-
67,693
1 July 2027
Share Appreciation
Performance Rights
19 February
2024
-
-
-
-
-
1 July 2028
Hasan Murad
Tranche A
Performance Rights
19 February
2024
-
60,360
-
-
60,360
1 July 2027
Tranche B
Performance Rights
19 February
2024
-
64,774
-
-
64,774
1 July 2027
Share Appreciation
Performance Rights
19 February
2024
-
130,378
-
-
130,378
1 July 2028
All awards are equity settled.
Directors’ Report
Directors’ Report
36
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
36
Annual Report 2024
37
f
Shares held by key management personnel
The number of ordinary shares in the Company during the 2024 reporting period held by each of the Group’s key
management personnel, including their related parties, is set out below:
Employee
Balance at
start of year
Granted as
remuneration
Other changes
Held at the end of
reporting period
Year ended 30 June 2024
David Riches
93,583,947
-
-
93,583,947
Simon High
304,167
-
-
304,167
José Martins
100,000
-
-
100,000
Paul Gavazzi
204,167
-
-
204,167
Damian Wright
72,917
-
-
72,917
Michael Green
130,208
-
-
130,208
George Lloyd
1,626,042
-
-
1,626,042
Strati Gregoriadis
-
-
-
-
Hasan Murad
72,917
-
-
72,917
None of the shares included in the table above are held nominally by key management personnel.
Loans to key management personnel
The Group allows its employees to take up limited short-term loans to fund merchandise and other purchases through the
Group’s business contacts. This facility is also available to the Group’s key management personnel. No member of the key
management personnel received a loan during the reporting period.
The Group does not have an allowance account for receivables relating to outstanding loans and has not recognised any
expense for impaired receivables during reporting period.
There were no individuals with loans above $100,000 during the financial year.
End of audited Remuneration Report.
Environmental regulations
The Group’s operations are subject to the environmental regulations that apply to our clients.
There have been no significant breaches during the period covered by this report.
Indemnities given to, and insurance premiums paid for, auditors and officers
Insurance of officers
During the year, GenusPlus Group Ltd paid a premium to insure officers of the Group. The officers of the Group covered by the
insurance policy include all Directors.
The liabilities insured are legal costs that may be incurred in defending civil or criminal proceedings that may be brought against
the officers in their capacity as officers of the Group, and any other payments arising from liabilities incurred by the officers in
connection with such proceedings, other than where such liabilities arise out of conduct involving a wilful breach of duty by the
officers or the improper use by the officers of their position or of information to gain advantage for themselves or someone else to
cause detriment to the Group.
Details of the amount of the premium paid in respect of insurance policies are not disclosed as such disclosure is prohibited under
the terms of the contract.
The Group has not otherwise, during or since the end of the financial year, except to the extent permitted by law, indemnified or
agreed to indemnify any current or former officer of the Group against a liability incurred as such by an officer.
Indemnity of auditors
The Group has agreed to indemnify its auditors, Grant Thornton Audit Pty Ltd, to the extent permitted by law, against any claim
by a third party arising from the Group’s breach of its agreement. The indemnity requires the Group to meet the full amount of any
such liabilities including a reasonable amount of legal costs.
Non-audit services
During the year, Grant Thornton, the Company’s auditors, performed certain other services in addition to their statutory audit
duties.
The Board has considered the non-audit services provided during the year by the auditor and, in accordance with written advice
provided by resolution of the Audit and Risk Committee, is satisfied that the provision of those non-audit services during the
year is compatible with, and did not compromise, the auditor independence requirements of the Corporations Act 2001 for the
following reasons:
•
all non-audit services were subject to the corporate governance procedures adopted by the Company and have been
reviewed by the Audit and Risk Committee to ensure they do not impact upon the impartiality and objectivity of the auditor
•
the non-audit services do not undermine the general principles relating to auditor independence as set out in APES 110 Code
of Ethics for Professional Accountants (including Independence Standards), as they did not involve reviewing or auditing the
auditor’s own work, acting in a management or decision-making capacity for the Company, acting as an advocate for the
Company or jointly sharing risks and rewards
Details of the amounts paid to the auditors of the Company, Grant Thornton, and its related practices for audit and non-audit
services provided during the year are set out in Note 33 to the financial statements.
Proceedings on behalf of Group
No person has applied for leave of Court to bring proceedings on behalf of the Group or intervene in any proceedings to which the
Group is a party for the purpose of taking responsibility on behalf of the Group for all or any part of those proceedings.
The Group was not a party to any such proceedings during the year.
Auditor’s Independence Declaration
A copy of the Auditor’s Independence Declaration as required under section 307C of the Corporations Act 2001 is set out on
page 38 and forms part of this Directors’ Report.
Signed in accordance with a resolution of the Board of Directors.
David Riches
Director, 26 August 2024
Directors’ Report
Directors’ Report
38
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
38
Annual Report 2024
39
Auditor’s Independence Declaration
Grant Thornton Audit Pty Ltd
Level 43 Central Park
152-158 St Georges Terrace
Perth WA 6000
PO Box 7757
Cloisters Square
Perth WA 6850
T +61 8 9480 2000
www.grantthornton.com.au
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL).
GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member
firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one
another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127
556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
Auditor’s Independence Declaration
To the Directors of GenusPlus Group Ltd
In accordance with the requirements of section 307C of the Corporations Act 2001, as lead auditor for the audit
of GenusPlus Group Ltd for the year ended 30 June 2024, I declare that, to the best of my knowledge and belief,
there have been:
a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to
the audit; and
b no contraventions of any applicable code of professional conduct in relation to the audit.
Grant Thornton Audit Pty Ltd
Chartered Accountants
B P Steedman
Partner – Audit & Assurance
Perth, 26 August 2024
Corporate Governance Statement
The Corporate Governance Statement is available on GenusPlus Group’s website at www.genus.com.au/who-we-are/corporate-
governance.
Corporate Governance Principles and Recommendations
The ASX Corporate Governance Council sets out best practice corporate governance recommendations, including practices
and suggested disclosures. Listing Rule 4.10.3 requires disclosure for companies on the extent to which they comply with these
recommendations, and if not, to give reasons for not following them.
Unless otherwise indicated, the best practice recommendations of the ASX Corporate Governance Council, including corporate
governance practices and suggested disclosures, have been adopted by Genus for the year ended 30 June 2024.
Genus expects to lodge its annual Corporate Governance Statement and Appendix 4G with its full Annual Report to shareholders
at the end of September 2024.
Corporate Governance
Genus is committed to a governance culture that aims to protect shareholder rights, effectively manage risk, enhance disclosure
and transparency (both within the company and to external stakeholders) and facilitate the effective functioning of the board.
We believe that by operating with a strong focus on corporate governance, we will enhance Genus’ sustainable long-term
performance and value creation for all stakeholders. The Board of Directors is responsible for Genus’ corporate governance
framework, which ensures that the Company’s obligations and responsibilities to its various stakeholders are fulfilled. The
Company’s 2024 Corporate Governance Statement, to be released to shareholders towards the end of September 2024, will report
on Genus’ governance practices. Genus has in place charters, policies, and procedures (published on our website) which are
reviewed and revised as appropriate to reflect changes in law and developments in corporate governance.
The Board’s Risk & Audit Committee is responsible for monitoring the effectiveness of the Group’s risk management framework.
40
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
40
Annual Report 2024
41
Consolidated Statement of Profit or Loss and Other Comprehensive Income
For the year ended 30 June 2024
Notes
2024
$
2023
$
Revenue
6
551,189,613
444,178,894
Other income
7
4,023,969
3,690,452
Employee benefits
28
(172,752,470)
(140,657,388)
Raw materials and consumables expenses
(151,127,263)
(125,597,200)
Contractors and labour hire expenses
(155,738,291)
(119,167,019)
Motor vehicle expenses
(17,831,954)
(13,969,192)
Depreciation expense
21
(14,854,251)
(15,213,191)
Other expenses
9
(12,887,955)
(14,812,420)
Operating profit
30,021,398
18,452,936
Share of results of joint ventures
(11,583)
(212,093)
Share of results of associates
-
(401,442)
Finance income
11
872,934
186,990
Other (losses) and gains
10
(1,312,328)
215,401
Finance costs
11
(1,855,260)
(1,548,058)
Profit before income tax
27,715,161
16,693,734
Income tax expense
12
(8,453,123)
(3,288,210)
Profit for the year
19,262,038
13,405,524
Other comprehensive income for the year
Items that may be reclassified subsequently to profit or loss:
Exchange differences on monetary items denominated in foreign currency
(net of tax)
-
(146,908)
Total comprehensive income for the year
19,262,038
13,258,616
Profit for the year attributable to
Owners of the company
19,262,038
13,258,616
Earnings per share
Basic earnings per share (cents)
13
10.84
7.56
Diluted earnings per share (cents)
13
10.65
7.56
This statement should be read in conjunction with the notes to the financial statements.
Consolidated Statement of Financial Position
As at 30 June 2024
Notes
2024
$
2023
$
Current assets
Cash and cash equivalents
15
100,966,681
46,737,238
Trade and other receivables
16
52,023,295
56,948,784
Contract assets
17
39,472,365
37,595,573
Inventories
19
2,840,598
3,796,472
Financial assets
18
326,741
326,741
Other assets
20
6,640,405
5,439,866
Total current assets
202,270,085
150,844,674
Non-current assets
Financial assets
18
847,261
1,130,376
Interests in joint ventures
-
2,874,206
Property, plant and equipment
21
25,429,474
18,247,524
Right-of-use assets
22
28,642,619
23,258,391
Intangible assets
24
30,960,959
31,063,401
Total non-current assets
85,880,313
76,573,898
Total assets
288,150,398
227,418,572
Current liabilities
Trade and other payables
25
75,097,353
50,993,122
Contract liabilities
26
33,384,790
16,876,882
Financial liabilities
27
1,580,000
1,580,000
Lease liabilities
22
10,317,098
9,007,690
Current tax liabilities
12
4,648,381
6,725,475
Employee benefits
28
13,493,866
8,607,305
Provisions
65,754
50,000
Total current liabilities
138,587,242
93,840,474
Non-current liabilities
Financial liabilities
27
2,700,000
4,280,000
Lease liabilities
22
14,655,827
12,861,963
Deferred tax liabilities
12
10,012,890
10,550,113
Employee benefits
28
377,997
909,889
Provisions
650,000
-
Total non-current liabilities
28,396,714
28,601,965
Total liabilities
166,983,956
122,442,439
Net assets
121,166,442
104,976,133
Equity
Issued capital
29
55,265,025
55,265,025
Reserves
30
(7,577)
(490,350)
Retained earnings
65,908,994
50,201,458
Total equity
121,166,442
104,976,133
This statement should be read in conjunction with the notes to the financial statements.
42
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
42
Annual Report 2024
43
Consolidated Statement of Changes in Equity
For the year ended 30 June 2024
Notes
Share
capital
$
Retained
earnings
$
Share based
payment
reserve
$
Corporate
Restructure
Reserve
$
Foreign
currency
translation
reserve
$
Total
$
Balance at 1 July 2022
53,789,037
39,977,478
-
(511,834)
168,392
93,423,073
Profit for the year
-
13,405,524
-
-
-
13,405,524
Other comprehensive
income
-
-
-
-
(146,908)
(146,908)
Total comprehensive income for
the year
-
13,405,524
-
-
(146,908)
13,258,616
Transactions with owners
in their capacity as
owners:
share issues pursuant
to a business
combination
29
923,902
-
-
-
-
923,902
deferred tax
adjustments in Equity
558,074
-
-
-
-
558,074
dividend paid
31
-
(3,181,544)
-
-
-
(3,181,544)
share issue costs
(5,988)
-
-
-
-
(5,988)
1,475,988
(3,181,544)
-
-
-
(1,705,556)
Sub-total
1,475,988
10,223,980
-
-
(146,908)
11,553,060
Balance at 30 June 2023
55,265,025
50,201,458
-
(511,834)
21,484
104,976,133
Balance at 1 July 2023
55,265,025
50,201,458
-
(511,834)
21,484
104,976,133
Profit for the year
-
19,262,038
-
-
-
19,262,038
Rounding
-
(3)
-
-
-
(3)
Total comprehensive income for
the year
-
19,262,035
-
-
-
19,262,035
Transactions with owners
in their capacity as
owners:
dividend paid
31
-
(3,554,499)
-
-
-
(3,554,499)
LTI performance rights
-
-
482,773
-
-
482,773
-
(3,554,499)
482,773
-
-
(3,071,726)
Sub-total
-
15,707,536
482,773
-
-
16,190,309
Balance at 30 June 2024
55,265,025
65,908,994
482,773
(511,834)
21,484
121,166,442
This statement should be read in conjunction with the notes to the financial statements.
Consolidated Statement of Cash Flows
For the year ended 30 June 2024
Notes
2024
$
2023
$
Operating activities
Receipts from customers
614,824,463
507,229,739
Payments to suppliers and employees
(521,366,737)
(477,044,403)
Income tax refund / (paid)
(10,621,153)
8,966,552
Net cash provided by operating activities
32
82,836,573
39,151,888
Investing activities
Proceeds from sale of property, plant and equipment
1,346,095
2,712,638
Purchase of property, plant and equipment
(13,933,408)
(5,697,192)
Net loans paid by / (loans to) associated and joint venture entities
-
(195,165)
Acquisition of subsidiaries (net of cash)
36
(3,229,144)
(4,132,995)
Net cash used in investing activities
(15,816,457)
(7,312,714)
Financing activities
Proceeds from borrowings
4,571,705
2,900,000
Repayments of borrowings
(1,880,000)
(2,210,000)
Receipts of sub-lease instalments
291,976
289,335
Payment of lease liabilities principal
(11,237,529)
(9,274,224)
Dividends paid
(3,554,499)
(3,181,544)
Interest received
872,934
186,990
Finance costs
(1,855,260)
(1,548,058)
Net cash provided by / (used in) financing activities
(12,790,673)
(12,837,501)
Net change in cash and cash equivalents held
54,229,443
19,001,673
Cash and cash equivalents at beginning of financial year
46,737,238
27,882,473
Effect of exchange rate fluctuations on cash held
-
(146,908)
Cash and cash equivalents at end of financial year
15
100,966,681
46,737,238
This statement should be read in conjunction with the notes to the financial statements.
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
44
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
44
Annual Report 2024
45
1.
Nature of operations
GenusPlus Group Ltd and its subsidiaries’ (the Group) principal activities include the construction and maintenance of
transmission and distribution power lines and substations servicing the Western Australian, Queensland, New South Wales,
Tasmanian and Victorian power networks as well as providing specialist engineering, testing and commissioning services to the
electrical and communications industries.
2.
Basis of preparation
The consolidated general purpose financial statements of the Group have been prepared in accordance with the requirements of
the Corporations Act 2001, Australian Accounting Standards (“AASBs”) and other authoritative pronouncements of the Australian
Accounting Standards Board (AASB). Compliance with Australian Accounting Standards results in full compliance with the
International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards Board (IASB). GenusPlus
Group Ltd is a for-profit entity for the purpose of preparing the financial statements.
GenusPlus Group Ltd is the Group’s Ultimate Parent Company. GenusPlus Group Ltd is an ASX listed Public Company (ASX Code:
GNP) incorporated and domiciled in Australia. The address of its registered office and its principal place of business is Level 1, 63 –
69 Abernethy Road, Belmont, Australia.
The consolidated financial statements for the year ended 30 June 2024 were approved and authorised for issue by the Board of
Directors on 26 August 2024.
Historical cost convention
The financial statements have been prepared under the historical cost convention, except for, where applicable, the revaluation of
financial assets and liabilities at fair value through profit or loss, financial assets at fair value through other comprehensive income,
investment properties, certain classes of property, plant and equipment and derivative financial instruments.
Critical accounting estimates
The preparation of the financial statements requires the use of certain critical accounting estimates. It also requires management
to exercise its judgement in the process of applying the consolidated entity's accounting policies. The areas involving a higher
degree of judgement or complexity, or areas where assumptions and estimates are significant to the financial statements, are
disclosed in Note 4.
3.
Changes in accounting policies
3.1
New standards adopted as at 1 July 2023
The Group has adopted all the new and revised Standards and Interpretations issued by the Australian Accounting
Standards Board (AASB) that are relevant to its operations and effective for an accounting period that begins on or after
1 July 2023.
AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and Definition of
Accounting Estimates
The application of the amendments did not have a material impact on the Group's consolidated financial statements, as the
amendments are already included in the Group’s existing accounting policies.
Amendments to AASB 101: Classification of Liabilities as Current or Non-current
The amendment specify the requirements for classifying liabilities as current or non-current. The amendments clarify:
•
What is meant by a right to defer settlement
•
That a right to defer must exist at the end of the reporting period
•
That classification is unaffected by the likelihood that an entity will exercise its deferral right.
•
That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability
not impact its classification
The amendments are effective for annual reporting periods beginning on or after 1 January 2023 and must be applied
retrospectively. The new standard did not have a material impact on the Group’s consolidated financial statements.
3.
Changes in accounting policies (continued)
3.1
New standards adopted as at 1 July 2023 (continued)
AASB 2021-5 Amendments to AASB 1 & AASB 112 - Deferred Tax related to Assets and Liabilities arising from a
Single Transaction
The amendments are effective for annual reporting periods beginning on or after 1 January 2023 and must be applied
retrospectively. The new standard did not have a material impact on the Group’s consolidated financial statements.
AASB 2022-7 Editorial Corrections to Australian Accounting Standards and Repeal of Superseded and
Redundant Standards
This is a repeal of standards that have already been replaced and are either superseded or redundant. Therefore, there is no
material impact on the Group’s consolidated financial statements.
AASB 2023-2 Amendments to Australian Accounting Standards – International Tax Reform – Pillar Two Model Rules
The amendments are effective for annual reporting periods beginning on or after 1 January. The new standard did not have
a material impact on the Group’s consolidated financial statements.
3.2
Standards, amendments and interpretations to existing Standards that are not yet effective and have not been adopted
early by the Group
The following new accounting standards and interpretations have been published that are not mandatory for 30 June 2024
reporting periods, have not been early adopted by the Group, and are as follows:
Amendments 2020-1 and 2022-6 relating to AASB 101: Classification of Liabilities as Current or Non-current
The amendment specify the requirements for classifying liabilities as current or non-current. The amendments clarify:
•
What is meant by a right to defer settlement
•
That a right to defer must exist at the end of the reporting period
•
That classification is unaffected by the likelihood that an entity will exercise its deferral right
•
That only if an embedded derivative in a convertible liability is itself an equity instrument would the terms of a liability
not impact its classification
The amendments are effective for annual reporting periods beginning on or after 1 January 2023 and must be applied
retrospectively. The Group's assessment of the impact of the new standard is not expected to have a material impact on
the entity in future reporting periods.
AASB 101 Presentation of Financial Statements
AASB 18 replaces AASB 101 as the standard describing the primary financial statements and sets out requirements for the
presentation and disclosure of information in AASB-compliant financial statements. Amongst other changes, it introduces
the concept of the “management-defined performance measure” to financial statements and requires the classification of
transactions presented within the statement of profit or loss within one of five categories – operating, investing, financing,
income taxes, and discontinued operations. It also provides enhanced requirements for the aggregation and is aggregation
of information.
When the standard is first adopted for the year ending 30 June 2028, there will be no material impact on the financial
statements.
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
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4.
Statement of accounting policies
Parent entity information
In accordance with the Corporations Act 2001, these financial statements present the results of the consolidated entity only.
Supplementary information about the parent entity is disclosed in Note 41.
Basis of consolidation
The Group financial statements consolidate those of the Parent Company and all of its subsidiaries and joint arrangements as
of 30 June 2024. The parent controls a subsidiary or joint arrangement if it is exposed, or has rights, to variable returns from
its involvement with the subsidiary and has the ability to affect those returns through its power over the subsidiary or joint
arrangement. All subsidiaries have a reporting date of 30 June. The joint arrangements have reporting dates of 31 December
and 30 June. Joint arrangements with 31 December year ends provide all relevant financial information for 30 June as per their
contract.
All transactions and balances between Group companies are eliminated on consolidation, including unrealised gains and losses
on transactions between Group companies. Where unrealised losses on intra-group asset sales are reversed on consolidation,
the underlying asset is also tested for impairment from a group perspective. Amounts reported in the financial statements of
subsidiaries have been adjusted where necessary to ensure consistency with the accounting policies adopted by the Group.
Profit or loss and other comprehensive income of subsidiaries acquired or disposed of during the year are recognised from the
effective date of acquisition, or up to the effective date of disposal, as applicable.
Non-controlling interests, presented as part of equity, represent the portion of a subsidiary’s profit or loss and net assets that is
not held by the Group. The Group attributes total comprehensive income or loss of subsidiaries between the owners of the parent
and the non-controlling interests based on their respective ownership interests.
Business combinations
The acquisition method of accounting is used to account for business combinations regardless of whether equity instruments or
other assets are acquired.
The consideration transferred is the sum of the acquisition-date fair values of the assets transferred, equity instruments issued or
liabilities incurred by the acquirer to former owners of the acquiree and the amount of any non-controlling interest in the acquiree.
For each business combination, the non-controlling interest in the acquiree is measured at either fair value or at the proportionate
share of the acquiree's identifiable net assets. All acquisition costs are expensed as incurred to profit or loss.
On the acquisition of a business, the consolidated entity assesses the financial assets acquired and liabilities assumed for
appropriate classification and designation in accordance with the contractual terms, economic conditions, the consolidated
entity's operating or accounting policies and other pertinent conditions in existence at the acquisition-date.
Where the business combination is achieved in stages, the consolidated entity remeasures its previously held equity interest
in the acquiree at the acquisition-date fair value and the difference between the fair value and the previous carrying amount is
recognised in profit or loss.
Contingent consideration to be transferred by the acquirer is recognised at the acquisition-date fair value. Subsequent changes
in the fair value of the contingent consideration classified as an asset or liability is recognised in profit or loss. Contingent
consideration classified as equity is not remeasured and its subsequent settlement is accounted for within equity.
The difference between the acquisition-date fair value of assets acquired, liabilities assumed and any non-controlling interest in
the acquiree and the fair value of the consideration transferred and the fair value of any pre-existing investment in the acquiree is
recognised as goodwill. If the consideration transferred and the pre-existing fair value is less than the fair value of the identifiable
net assets acquired, being a bargain purchase to the acquirer, the difference is recognised as a gain directly in profit or loss by the
acquirer on the acquisition-date, but only after a reassessment of the identification and measurement of the net assets acquired,
the non-controlling interest in the acquiree, if any, the consideration transferred and the acquirer's previously held equity interest
in the acquirer.
Business combinations are initially accounted for on a provisional basis. The acquirer retrospectively adjusts the provisional
amounts recognised and also recognises additional assets or liabilities during the measurement period, based on new information
obtained about the facts and circumstances that existed at the acquisition-date. The measurement period ends on either the
earlier of (i) 12 months from the date of the acquisition or (ii) when the acquirer receives all the information possible to determine
fair value.
4.
Statement of accounting policies (continued)
Joint arrangements
Joint arrangements are arrangements in which two or more parties have joint control. Joint control is the contractual agreed
sharing of control of the arrangement which exists only when decisions about the relevant activities require unanimous consent
of the parties sharing control. Joint arrangements are classified as either a joint operation or joint venture, based on the rights and
obligations arising from the contractual obligations between the parties to the arrangement.
To the extent the joint arrangement provides the Group with rights to the individual assets and obligations arising from the joint
arrangement, the arrangement is classified as a joint operation, and as such the Group recognises its:
•
assets, including its share of any assets held jointly;
•
liabilities, including its share of any liabilities incurred jointly;
•
revenue from the sale of its share of the output arising from the joint operation;
•
share of revenue from the sale of the output by the joint operation; and
•
expenses, including its share of any expenses incurred jointly.
To the extent the joint arrangement provides the Group with rights to the net assets of the arrangement, the investment is
classified as a joint venture and accounted for using the equity method.
Joint arrangements acquired which are deemed to be carrying on a business are accounted for applying the principles of AASB 3
Business Combinations. Joint arrangements which are not deemed to be carrying on a business are treated as asset acquisitions.
Segment reporting
Operating segments are presented using the 'management approach', where the information presented is on the same basis
as the internal reports provided to the Chief Operating Decision Makers ('CODM'). The CODM is responsible for the allocation of
resources to operating segments and assessing their performance.
Revenue from contracts with customers
The Group recognises revenue when a customer obtains control of the goods or services, in accordance with AASB 15 Revenue
from contracts with customers. Revenue is measured at the fair value of the consideration received or receivable. Determining the
timing of the transfer of control: either at a point in time or over time requires judgement.
Revenue is recognised over time if one of the following is met:
•
The customer simultaneously receives and consumes the benefits as the Group performs;
•
The customer controls the asset as the Group creates or enhances it; or
•
The Group’s performance does not create an asset for which the Group has an alternative use and there is a right to payment
for the performance to date.
To determine whether to recognise revenue, the Group follows the 5-step revenue recognition model introduced by AASB 15
Revenue from contracts with customers:
1.
Identifying the contract(s) with a customer
2.
Identifying the performance obligations in the contract
3.
Determining the transaction price
4.
Allocating the transaction price to the performance obligations in the contract
5.
Recognising revenue when/as performance obligation(s) are satisfied.
The Group often enters into transactions involving a range of the Group’s products and services. In all cases, the total transaction
price for a contract is allocated amongst the various performance obligations based on their relative stand-alone selling prices.
The transaction price for a contract excludes any amounts collected on behalf of third parties.
The Group recognises contract liabilities for consideration received in respect of unsatisfied performance obligations and
reports these amounts as contract liabilities in the statement of financial position (see Note 26). Similarly, if the Group satisfies
a performance obligation before it receives the consideration, the Group recognises either a contract asset or a receivable
in its statement of financial position, depending on whether something other than the passage of time is required before the
consideration is due.
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
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4.
Statement of accounting policies (continued)
Revenue from contracts with customers (continued)
Construction Contracts
Revenue from construction contracts is recognised when the benefits transfer to the customer as the work is performed and as
such revenue is recognised over the duration of the project according to the percentage of costs completed, or input method.
Under this method revenue is calculated based on the proportion of the contract costs incurred for work performed to date
relative to the estimated total contract costs. Revenue recognised under this method is derived from projects containing one
performance obligation.
Services revenue
Revenue from the provision of services is recognised as the service is provided. Typically, under the performance obligations of
a service contract, the customer consumes and receives the benefit of the service as it is provided. As such, service revenue is
recognised over time as the services are provided, with each service a separate performance obligation. The transaction price is
allocated to each obligation based on standalone selling prices.
Work order revenue generated in the Communications division is recognised at a point in time as the customer receives the
benefit once the work has been completed. The transaction price is calculated based on a schedule of rates which define the price
of the ticket of work.
Transaction price and contract modifications
The transaction price is the amount of consideration to which the company expects to be entitled to under the customer contract
and which is used to value total revenue and is allocated to each performance obligation. The determination of this amount
includes “fixed remuneration”, (for example lump sum) and “variable consideration”.
The main variable consideration elements are claims (contract modifications) and consideration for optional works and provisional
sums each of which needs to be assessed. Contract modifications are changes to the contract approved by the parties to the
contract.
The Group applies the guidance given in AASB 15 in relation to variable consideration. The estimate of variable consideration can
only be recognised to the extent that it is highly probable that there will not be a significant reversal of revenue in the future.
The measurement of additional consideration arising from claims is subject to a high level of uncertainty, both in terms of the
amount that customers will pay and the collection times, which usually depend on the outcome of negotiations between the
parties or decisions taken by judicial/arbitration bodies. The Group considers all relevant aspects in circumstances such as the
contract terms, business in negotiating practices of the sector, the Group’s historical experiences with similar contracts and
consideration of those factors that affect the variable consideration that are out of control of the Group or other supporting
evidence when making the above decision.
Loss making contracts
A provision for onerous contracts is measured at the present value of the lower of the expected cost of terminating the contract
and the expected net cost of continuing with the contract, which is determined based on the incremental costs of fulfilling the
obligation under the contract and an allocation of other costs directly related to fulfilling the contract. The provision is recognised
in full in a period in which the loss-making contract is identified under AASB 137 Provisions, Contingent Liabilities and Contingent
Assets.
Under AASB 137, the assessment of whether a provision needs to be recognised takes place at the contract level. In addition,
when two or more contracts entered into at or near the same time are required to be combined for accounting purposes, AASB
15 requires the Group to perform the assessment of whether the contract is onerous at the level of the combined contracts. The
Group also notes that the amount of loss accrued in respect of a loss contract under AASB 137 takes into account an appropriate
allocation of construction overheads.
4.
Statement of accounting policies (continued)
Goodwill
Goodwill represents the future economic benefits arising from a business combination that are not individually identified and
separately recognised. See Business combinations (above) for information on how goodwill is initially determined. Goodwill is
carried at cost less accumulated impairment losses. Refer to impairment testing in Note 24 for a description of impairment testing
procedures.
Property, plant and equipment
Land and buildings held for use in the production or supply of goods or services, or for administrative purposes, are stated in the
statement of financial position at cost, less any recognised impairment loss.
Properties held for production, supply or administrative purposes, or for purposes not yet determined, are carried at cost, less any
recognised impairment loss. Cost includes professional fees and, for qualifying assets, borrowing costs capitalised in accordance
with the Group’s accounting policy. Depreciation of these assets, on the same basis as other property assets, commences when
the assets are ready for their intended use.
Freehold land is not depreciated.
Fixtures and equipment are stated at cost less accumulated depreciation and accumulated impairment losses.
Depreciation is recognised so as to write off the cost or valuation of assets (other than freehold land and properties under
construction) less their residual values over their useful lives, using the straight-line method. The estimated useful lives, residual
values and depreciation method are reviewed at the end of each reporting period, with the effect of any changes in estimate
accounted for on a prospective basis.
The depreciation rates used for each class of depreciable assets are:
Class of fixed asset
Depreciation rate
Buildings:
10%
Leasehold improvements:
10% - 33%
Plant and equipment:
10% - 33%
Furniture, fixtures and fittings:
10% - 33%
Tools and low value assets
18.8% - 33%
Software and technology
33%
Motor vehicles
10% - 25%
Depreciation rates and methods shall be reviewed at least annually and, where changed, shall be accounted for as a change in
accounting estimate. Where depreciation rates or methods are changed, the net written down value of the asset is depreciated
from the date of the change in accordance with the new depreciation rate or method. Depreciation recognised in prior financial
years shall not be changed, that is, the change in depreciation rate or method shall be accounted for on a ‘prospective’ basis.
Assets held under leases are depreciated over their expected useful lives on the same basis as owned assets. However, when
there is no reasonable certainty that ownership will be obtained by the end of the lease term, assets are depreciated over the
shorter of the lease term and their useful lives.
An item of property, plant and equipment is derecognised upon disposal or when no future economic benefits are expected to
arise from the continued use of the asset. Any gain or loss arising on the disposal or retirement of an item of property, plant and
equipment is determined as the difference between the sales proceeds and the carrying amount of the asset and is recognised in
profit or loss.
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
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4.
Statement of accounting policies (continued)
Leased assets
The Group as lessee
For any new contracts entered into, the Group considers whether a contract is or contains a lease. A lease is defined as a
‘contract, or part of a contract, that conveys the right to use an asset (the underlying asset) for a period of time in exchange for
consideration’. To apply this definition the Group assesses whether the contract meets three key evaluations which are whether:
•
the contract contains an identified asset, which is either explicitly identified in the contract or implicitly specified by being
identified at the time the asset is made available to the Group
•
the Group has the right to obtain substantially all of the economic benefits from use of the identified asset throughout the
period of use, considering its rights within the defined scope of the contract
•
the Group has the right to direct the use of the identified asset throughout the period of use. The Group assess whether it
has the right to direct ‘how and for what purpose’ the asset is used throughout the period of use.
Measurement and recognition of leases as a lessee
In respect of leased assets, at lease commencement date the Group recognises a right-of-use asset and a lease liability on the
balance sheet. The right-of-use asset is measured at cost, which is made up of the initial measurement of the lease liability, any
initial direct costs incurred by the Group, an estimate of any costs to dismantle and remove the asset at the end of the lease, and
any lease payments made in advance of the lease commencement date (net of any incentives received). All other leased assets
are recorded under property, plant and equipment according to the category of asset.
The Group depreciates the right-of-use assets on a straight-line basis from the lease commencement date to the earlier of the
end of the useful life of the right-of-use asset or the end of the lease term. The Group also assesses the right-of-use asset for
impairment when such indicators exist.
At the commencement date, the Group measures the lease liability at the present value of the lease payments unpaid at that
date, discounted using the interest rate implicit in the lease if that rate is readily available or the Group’s incremental borrowing
rate.
Lease payments included in the measurement of the lease liability are made up of fixed payments (including in substance fixed),
variable payments based on an index or rate, amounts expected to be payable under a residual value guarantee and payments
arising from options reasonably certain to be exercised.
The right-of-use assets are presented as a separate line in the consolidated statement of financial position.
Subsequent to initial measurement, the liability will be reduced for payments made and increased for interest. It is remeasured to
reflect any reassessment or modification, or if there are changes in in-substance fixed payments.
When the lease liability is remeasured, the corresponding adjustment is reflected in the right-of-use asset, or profit and loss if the
right-of-use asset is already reduced to zero.
The Group has elected to account for short-term leases and leases of low-value assets using the practical expedients. Instead of
recognising a right-of-use asset and lease liability, the payments in relation to these are recognised as an expense in profit or loss
on a straight-line basis over the lease term.
The lease liability is presented as a separate line in the consolidated statement of financial position.
4.
Statement of accounting policies (continued)
Impairment testing of goodwill, other intangible assets and property, plant and equipment
For impairment assessment purposes, assets are grouped at the lowest levels for which there are largely independent cash
inflows (cash-generating units). As a result, some assets are tested individually for impairment and some are tested at cash-
generating unit level. Goodwill is allocated to those cash-generating units that are expected to benefit from synergies of the
related business combination and represent the lowest level within the Group at which management monitors goodwill.
Cash-generating units to which goodwill has been allocated (determined by the Group’s management as equivalent to its
operating segments) are tested for impairment at least annually. All other individual assets or cash-generating units are tested for
impairment whenever events or changes in circumstances indicate that the carrying amount may not be recoverable.
An impairment loss is recognised for the amount by which the asset’s or cash-generating unit’s carrying amount exceeds
its recoverable amount, which is the higher of fair value less costs to sell and value-in-use. To determine the value-in-use,
management estimates expected future cash flows from each cash-generating unit and determines a suitable interest rate in
order to calculate the present value of those cash flows.
The data used for impairment testing procedures are directly linked to the Group’s latest approved budget, adjusted as necessary
to exclude the effects of future reorganisations and asset enhancements. Discount factors are determined individually for each
cash-generating unit and reflect management’s assessment of respective risk profiles, such as market and asset-specific risks
factors.
Impairment losses for cash-generating units reduce first the carrying amount of any goodwill allocated to that cash-generating
unit. Any remaining impairment loss is charged pro rata to the other assets in the cash-generating unit. With the exception of
goodwill, all assets are subsequently reassessed for indications that an impairment loss previously recognised may no longer
exist. An impairment charge is reversed if the cash-generating unit’s recoverable amount exceeds its carrying amount.
Financial instruments
Recognition and derecognition
Financial assets and financial liabilities are recognised when the Group becomes a party to the contractual provisions of the
financial instrument.
Financial assets are derecognised when the contractual rights to the cash flows from the financial asset expire, or when
the financial asset and substantially all the risks and rewards are transferred. A financial liability is derecognised when it is
extinguished, discharged, cancelled or expires.
Classification and initial measurement
Financial assets are initially measured at fair value adjusted for transaction costs (where applicable).
Financial assets are classified into the following categories:
•
amortised cost
•
fair value through profit or loss (FVTPL)
•
fair value through other comprehensive income (FVOCI)
In the periods presented, the Group does not have any financial assets categorised as FVOCI.
The classification is determined by both:
•
the entity’s business model for managing the financial asset
•
the contractual cash flow characteristics of the financial asset.
All income and expenses relating to financial assets that are recognised in profit or loss are presented within finance costs, or
finance income, except for impairment of trade receivables which is presented within other expenses.
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
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4.
Statement of accounting policies (continued)
Financial instruments (continued)
Subsequent measurement of financial assets
Financial assets at amortised cost
Financial assets are measured at amortised cost if the assets meet the following conditions (and are not designated as FVTPL):
•
they are held within a business model whose objective is to hold the financial assets and collect its contractual cash flows
•
the contractual terms of the financial assets give rise to cash flows that are solely payments of principal and interest on the
principal amount outstanding
After initial recognition, these are measured at amortised cost using the effective interest method. Discounting is omitted where
the effect of discounting is immaterial. The Group’s cash and cash equivalents, trade and most other receivables fall into this
category of financial instruments.
Financial assets at fair value through profit or loss (FVTPL)
Financial assets that are held within a different business model other than ‘hold to collect’ or ‘hold to collect and sell’ are
categorised at fair value through profit and loss. Further, irrespective of business model financial assets whose contractual cash
flows are not solely payments of principal and interest are accounted for at FVTPL.
This category also contains an equity investment. The Group accounts for the investment at FVTPL and did not make the
irrevocable election to account for the investment in Volt Group Ltd (ASX:VPR) at fair value through other comprehensive income
(FVOCI). The fair value was determined in line with the requirements of AASB 9, which does not allow for measurement at cost.
Assets in this category are measured at fair value with gains or losses recognised in profit or loss. The fair values of financial assets
in this category are determined by reference to active market transactions or using a valuation technique where no active market
exists.
Impairment of financial assets
AASB 9’s impairment requirements use forward-looking information to recognise expected credit losses – the ‘expected credit
loss (ECL) model’. Instruments within scope include loans and other debt-type financial assets measured at amortised cost and
FVOCI, trade receivables, contract assets recognised and measured under AASB 15 and loan commitments and some financial
guarantee contracts (for the issuer) that are not measured at fair value through profit or loss.
The Group considers a broader range of information when assessing credit risk and measuring expected credit losses, including
past events, current conditions, reasonable and supportable forecasts that affect the expected collectability of the future cash
flows of the instrument.
In applying this forward-looking approach, a distinction is made between:
•
financial instruments that have not deteriorated significantly in credit quality since initial recognition or that have low credit
risk (‘Stage 1’) and
•
financial instruments that have deteriorated significantly in credit quality since initial recognition and whose credit risk is not
low (‘Stage 2’).
•
‘Stage 3’ would cover financial assets that have objective evidence of impairment at the reporting date.
‘12-month expected credit losses’ are recognised for the first category while ‘lifetime expected credit losses’ are recognised for
the second category.
Measurement of the expected credit losses is determined by a probability-weighted estimate of credit losses over the expected
life of the financial instrument.
4.
Statement of accounting policies (continued)
Investments in associates and joint ventures
An associate is an entity over which the Group has significant influence and that is neither a subsidiary nor an interest in a joint
venture. Significant influence is the power to participate in the financial and operating policy decisions of the investee but is not
control or joint control over those policies.
A joint venture is a joint arrangement whereby the parties that have joint control of the arrangement have rights to the net assets
of the joint arrangement. Joint control is the contractually agreed sharing of control of an arrangement, which exists only when
decisions about the relevant activities require unanimous consent of the parties sharing control.
The results and assets and liabilities of associates or joint ventures are incorporated in these financial statements using the equity
method of accounting, except when the investment is classified as held for sale, in which case it is accounted for in accordance
with ‘AASB 5 - Non-current assets held for sale and discontinued operations’.
Under the equity method, an investment in an associate or a joint venture is recognised initially in the consolidated statement
of financial position at cost and adjusted thereafter to recognise the Group’s share of the profit or loss and other comprehensive
income of the associate or joint venture. When the Group’s share of losses of an associate or a joint venture exceeds the Group’s
interest in that associate or joint venture (which includes any long-term interests that, in substance, form part of the Group’s net
investment in the associate or joint venture), the Group discontinues recognising its share of further losses. Additional losses are
recognised only to the extent that the Group has incurred legal or constructive obligations or made payments on behalf of the
associate or joint venture.
An investment in an associate or a joint venture is accounted for using the equity method from the date on which the investee
becomes an associate or a joint venture. On acquisition of the investment in an associate or a joint venture, any excess of the cost
of the investment over the Group’s share of the net fair value of the identifiable assets and liabilities of the investee is recognised
as goodwill, which is included within the carrying amount of the investment. Any excess of the Group’s share of the net fair value
of the identifiable assets and liabilities over the cost of the investment, after reassessment, is recognised immediately in profit or
loss in the period in which the investment is acquired.
The requirements of AASB 136 are applied to determine whether it is necessary to recognise any impairment loss with respect to
the Group’s investment in an associate or a joint venture. When necessary, the entire carrying amount of the investment (including
goodwill) is tested for impairment in accordance with AASB 136 as a single asset by comparing its recoverable amount (higher
of value in use and fair value less costs of disposal) with its carrying amount. Any impairment loss recognised is not allocated to
any asset, including goodwill that forms part of the carrying amount of the investment. Any reversal of that impairment loss is
recognised in accordance with AASB 136 to the extent that the recoverable amount of the investment subsequently increases.
The Group discontinues the use of the equity method from the date when the investment ceases to be an associate or a joint
venture. When the Group retains an interest in the former associate or a joint venture and the retained interest is a financial
asset, the Group measures the retained interest at fair value at that date and the fair value is regarded as its fair value on initial
recognition in accordance with AASB 9. The difference between the carrying amount of the associate or a joint venture at the date
the equity method was discontinued, and the fair value of any retained interest and any proceeds from disposing of a part interest
in the associate or a joint venture is included in the determination of the gain or loss on disposal of the associate or joint venture.
In addition, the Group accounts for all amounts previously recognised in other comprehensive income in relation to that associate
on the same basis as would be required if that associate had directly disposed of the related assets or liabilities. Therefore, if a
gain or loss previously recognised in other comprehensive income by that associate or joint venture would be reclassified to profit
or loss on the disposal of the related assets or liabilities, the Group reclassifies the gain or loss from equity to profit or loss (as a
reclassification adjustment) when the associate or joint venture is disposed of.
When the Group reduces its ownership interest in an associate or a joint venture but the Group continues to use the equity
method, the Group reclassifies to profit or loss the proportion of the gain or loss that had previously been recognised in other
comprehensive income relating to that reduction in ownership interest if that gain or loss would be reclassified to profit or loss on
the disposal of the related assets or liabilities.
When a Group entity transacts with an associate or a joint venture of the Group, profits and losses resulting from the transactions
with the associate or joint venture are recognised in the Group’s consolidated financial statements only to the extent of interests
in the associate or joint venture that are not related to the Group.
The Group applies AASB 9, including the impairment requirements, to long-term interests in an associate or joint venture to
which the equity method is not applied and which form part of the net investment in the investee. Furthermore, in applying AASB
9 to long-term interests, the Group does not take into account adjustments to their carrying amount required by ‘AASB 128 –
Investments in associates and joint ventures’ (i.e. adjustments to the carrying amount of long-term interests arising from the
allocation of losses of the investee or assessment of impairment in accordance with AASB 128).
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
54
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
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Annual Report 2024
55
4.
Statement of accounting policies (continued)
Investments in associates and joint ventures (continued)
Trade and other receivables and contract assets and liabilities
Contract assets
A contract asset is initially recognised for revenue earned from construction and maintenance services when the receipt of
consideration is conditional on client acceptance of the successful completion or installation of the underlying contractual
obligation. Upon such notification, the amount recognised as contract assets is reclassified as trade receivables.
Trade receivables
A receivable is recognised if an amount of consideration that is unconditional is due from the customer (i.e. only the passage of
time is required before payment of the consideration is due).
Contract liabilities
A contract liability is recognised if a payment is received or a payment is due (whichever is earlier) from a customer before the
Group transfers the related goods or services. Contract liabilities are recognised as revenue when the Group performs under the
contract (i.e. transfers control of the related goods or services to the customer.)
Impairment of contract assets and liabilities and trade receivables
The Group makes use of a simplified approach in accounting for trade and other receivables as well as contract assets and records
the loss allowance as lifetime expected credit losses. These are the expected shortfalls in contractual cash flows, considering the
potential for default at any point during the life of the financial instrument. In calculating, the Group uses its historical experience,
external indicators and forward-looking information to calculate the expected credit losses using a provision matrix.
The Group assess impairment of trade receivables on a collective basis as they possess shared credit risk characteristics they
have been grouped based on the days past due. Refer to Note 39 for a detailed analysis of how the impairment requirements of
AASB 9 are applied.
Classification and measurement of financial liabilities
The Group’s financial liabilities include borrowings, trade and other payables and derivative financial instruments.
Financial liabilities are initially measured at fair value, and, where applicable, adjusted for transaction costs unless the Group
designated a financial liability at fair value through profit or loss.
Subsequently, financial liabilities are measured at amortised cost using the effective interest method except for derivatives and
financial liabilities designated at FVTPL, which are carried subsequently at fair value with gains or losses recognised in profit or
loss (other than derivative financial instruments that are designated and effective as hedging instruments).
All interest-related charges and, if applicable, changes in an instrument’s fair value that are reported in profit or loss are included
within finance costs or finance income.
Taxation
Tax consolidation
The Company and its wholly-owned Australian resident entities are members of a tax-consolidated group under Australian tax
law. The Company is the head entity within the tax-consolidated group. In addition to its own current and deferred tax amounts,
the Company also recognises the current tax liabilities and assets and deferred tax assets arising from unused tax losses and
relevant tax credits of the members of the tax-consolidated group.
Amounts payable or receivable under the tax-funding arrangement between the Company and the entities in the tax consolidated
group are determined using a ‘separate taxpayer within group’ approach to determine the tax contribution amounts payable or
receivable by each member of the tax-consolidated group. This approach results in the tax effect of transactions being recognised
in the legal entity where that transaction occurred, and does not tax effect transactions that have no tax consequences to the
group. The same basis is used for tax allocation within the tax-consolidated group.
4.
Statement of accounting policies (continued)
Current tax
The tax currently payable is based on taxable profit for the year. Taxable profit differs from profit before tax as reported in the
statement of profit or loss and other comprehensive income because of items of income or expense that are taxable or deductible
in other years and items that are never taxable or deductible. The Company’s current tax is calculated using tax rates that have
been enacted or substantively enacted by the end of the reporting period. Adjustments are made for transactions and events
occurring within the tax-consolidated group that do not give rise to a tax consequence for the Company or that have a different
tax consequence at the level of the entity.
Deferred tax
Deferred tax is recognised on temporary differences between the carrying amounts of assets and liabilities in the financial
statements and the corresponding tax bases used in the computation of taxable profit. Deferred tax liabilities are generally
recognised for all taxable temporary differences. Adjustments are made for transactions and events occurring within the tax-
consolidated group that do not give rise to a tax consequence for the Company or that have a different tax consequence at the
level of the entity.
Deferred tax assets are generally recognised for all deductible temporary differences to the extent that it is probable that taxable
profits will be available against which those deductible temporary differences can be utilised. Such deferred tax assets and
liabilities are not recognised if the temporary difference arises from the initial recognition (other than in a business combination)
of assets and liabilities in a transaction that affects neither the taxable profit nor the accounting profit. In addition, deferred tax
liabilities are not recognised if the temporary difference arises from the initial recognition of goodwill.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it is no
longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
Deferred tax assets and liabilities are measured at the tax rates that are expected to apply in the period in which the liability is
settled or the asset realised, based on tax rates (and tax laws) that have been enacted or substantively enacted by the end of the
reporting period. The measurement of deferred tax liabilities and assets reflects the tax consequences that would follow from the
manner in which the Company expects, at the end of the reporting period, to recover or settle the carrying amount of its assets
and liabilities.
Deferred tax assets and liabilities are offset when there is a legally enforceable right to set off current tax assets against current
tax liabilities and when they relate to income taxes levied by the same taxation authority and the Company intends to settle its
current tax assets and liabilities on a net basis.
Current and deferred tax for the year
Current and deferred tax are recognised in profit or loss, except when they relate to items that are recognised in other
comprehensive income or directly in equity, in which case the current and deferred tax are also recognised in other
comprehensive income or directly in equity, respectively. Where current tax or deferred tax arises from the initial accounting for a
business combination, the tax effect is included in the accounting for the business combination.
Management has applied a risk weighted measurement to the tax treatments used in the Group and has determined that there is
no change required under IFRIC 23 Uncertainty over Income Tax Treatments.
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
56
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GenusPlus Group Ltd
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Annual Report 2024
57
4.
Statement of accounting policies (continued)
Equity, reserves and dividend payments
Share capital represents the fair value of shares that have been issued. Any transaction costs associated with the issuing of
shares are deducted from share capital, net of any related income tax benefits.
Other components of equity include the following:
•
Corporate restructure reserve: comprises amounts recognised upon the introduction of a new ultimate parent entity.
•
Foreign currency translation reserve: comprises amounts recognised upon translation of amounts denominated in foreign
currencies ($USD) into the presentation currency ($AUD)
Retained earnings include all current and prior period retained profits.
Dividend distributions payable to equity shareholders are included in other liabilities when the dividends have been declared by
the Board prior to the reporting date.
All transactions with owners of the parent are recorded separately within equity.
Share-based payment transactions
The Group provides remuneration to certain employees, including Directors, of the Group in the form of share-based payment
transactions, whereby employees render services in exchange for shares or rights over shares (‘equity-settled transactions’).
The cost of these equity-settled transactions is measured by reference to the fair value at the date at which they are vested. The
fair value is measured using a the Black Scholes option pricing model and Monte Carlo Simulations, that take into account the
terms and conditions on which the instruments were granted and the current likelihood of achieving the specified target. Further,
the cost of equity-settled transactions is recognised, over the vesting period.
Provisions
Provisions are recognised when the Group has a present obligation (legal or constructive) as a result of a past event, it is probable
that the Group will be required to settle the obligation, and a reliable estimate can be made of the amount of the obligation.
The amount recognised as a provision is the best estimate of the consideration required to settle the present obligation at the end
of the reporting period, taking into account the risks and uncertainties surrounding the obligation. When a provision is measured
using the cash flows estimated to settle the present obligation, its carrying amount is the present value of those cash flows
(where the effect of the time value of money is material).
When some or all of the economic benefits required to settle a provision are expected to be recovered from a third party, a
receivable is recognised as an asset if it is virtually certain that reimbursement will be received and the amount of the receivable
can be measured reliably.
Onerous contracts
Present obligations arising under onerous contracts are recognised and measured as provisions. An onerous contract is
considered to exist where the Group has a contract under which the unavoidable costs of meeting the obligations under the
contract exceed the economic benefits expected to be received under it.
Earnings per share
Basic earnings per share
Basic earnings per share is calculated by dividing the profit attributable to the owners of GenusPlus Group Ltd, excluding any
costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding during the
financial year, adjusted for bonus elements in ordinary shares issued during the financial year.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account the
after income tax effect of interest and other financing costs associated with dilutive potential ordinary shares and the weighted
average number of shares assumed to have been issued for no consideration in relation to dilutive potential ordinary shares.
4.
Statement of accounting policies (continued)
Dividends
Dividends are recognised when declared during the financial year and no longer at the discretion of the company.
Significant management judgement in applying accounting policies and estimation uncertainty
When preparing the Group’s consolidated financial statements, management makes a number of judgements, estimates and
assumptions about the recognition and measurement of assets, liabilities, revenue and expenses.
Critical judgements, estimates and assumptions
The preparation of the financial statements requires management to make judgements, estimates and assumptions that affect
the reported amounts in the financial statements. Management continually evaluates its judgements and estimates in relation to
assets, liabilities, contingent liabilities, revenue and expenses. Management bases its judgements, estimates and assumptions
on historical experience and on other various factors, including expectations of future events, management believes to be
reasonable under the circumstances. The resulting accounting judgements and estimates will seldom equal the related actual
results. The judgements, estimates and assumptions that have a significant risk of causing a material adjustment to the carrying
amounts of assets and liabilities (refer to the respective notes) within the next financial year are discussed below.
Construction contract revenue
Recognised amounts of construction contract revenues and related receivables reflect management’s best estimate of each
contract’s outcome and stage of completion. For more complex contracts in particular, costs to complete and contract profitability
are subject to significant estimation uncertainty.
Impairment of non-financial assets and goodwill
In assessing impairment, management estimates the recoverable amount of each asset or cash generating unit based on
expected future cash flows and uses an interest rate to discount them. Estimation uncertainty relates to assumptions about
future operating results and the determination of a suitable discount rate.
Calculation of loss allowance
When measuring expected credit losses(ECL), the Group uses reasonable and supportable forward looking information, which is
based on assumptions for the future movement of different economic drivers and how these drivers will affect each other.
Loss given default is an estimate of the loss arising on default. It is based on the difference between the contractual cash
flows due and those that the lender would expect to receive, taking into account cash flows from collateral and integral credit
enhancements.
Probability of default constitutes a key input in measuring ECL. Probability of default is an estimate of the likelihood of default over
a given time horizon, the calculation of which includes historical data, assumptions and expectations of future conditions.
The Group maintains insurance against Domestic Trade Credit defaults and therefore considers the risk of loss to be minimal.
Fair value measurements and valuation processes
Some of the Group's assets and liabilities are measured at fair value for financial reporting purposes.
In estimating the fair value of an asset or a liability, the Group uses market-observable data to the extent it is available.
Business combinations
Management uses valuation techniques in determining the fair values of the various elements of a business combination.
Particularly, the fair value of contingent consideration is dependent on the outcome of many variables that affect future
profitability.
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
58
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Annual Report 2024
59
5.
Segment Reporting
Management currently identifies the Group’s three business lines as its operating segments: infrastructure, communications, and industrial. The Group’s Chief Operating Decision Maker
(CODM) is its chief executive, who monitors the performance of these operating segments as well as deciding on the allocation of resources to them. Segment performance is monitored
using adjusted segment operating results.
Each of these operating segments is managed separately as each requires different technologies, marketing approaches and other resources. All inter-segment transfers are carried out at
arm’s length prices based on prices charged to unrelated customers in stand-alone sales of identical goods and services.
The revenues and profit generated by each of the Group’s operating segments and segment assets and liabilities are summarised as follows:
Year to 30 June 2024
Infrastructure
$
Communication
$
Industrial
$
Total
Segments
$
Other /
Eliminations
$
Total
$
Revenues
328,946,580
71,173,341
151,565,562
551,685,483
-
551,685,483
Inter-segment
7,089,227
418,880
1,055,747
8,563,854
(8,563,854)
-
Segment revenues
336,035,807
71,592,221
152,621,309
560,249,337
(8,563,854)
551,685,483
Employment expenses
(101,062,019)
(15,972,767)
(44,603,024)
(161,637,810)
-
(161,637,810)
Consumables and materials used
(96,382,270)
(6,995,959)
(47,239,585)
(150,617,814)
-
(150,617,814)
Contractors and labour hire expenses
(70,513,971)
(45,951,644)
(48,301,411)
(164,767,026)
8,563,854
(156,203,172)
Motor vehicle expenses
(15,841,936)
(833,571)
(1,062,698)
(17,738,205)
-
(17,738,205)
Depreciation and amortisation expenses
(10,077,325)
(2,408,734)
(407,257)
(12,893,316)
-
(12,893,316)
Other expenses
(16,403,799)
(3,142,934)
(3,430,899)
(22,977,632)
-
(22,977,632)
Segment Profit before Income Tax
25,754,487
(3,713,388)
7,576,435
29,617,534
-
29,617,534
Assets
222,291,228
23,890,143
46,482,258
292,663,629
(12,741,692)
279,921,937
Liabilities
125,289,018
25,437,677
41,408,652
192,135,347
(1,829,429)
190,305,918
5.
Segment Reporting (continued)
Year to 30 June 2023
Infrastructure
$
Communication
$
Industrial
$
Total
Segments
$
Other /
Eliminations
$
Total
$
Revenues
310,771,373
62,212,510
71,195,011
444,178,894
-
444,178,894
Inter-segment
9,199,125
48,174
7,461,107
16,708,406
(16,708,406)
-
Segment revenues
319,970,498
62,260,684
78,656,118
460,887,300
(16,708,406)
444,178,894
Employment expenses
(87,145,681)
(14,562,448)
(29,196,668)
(130,904,797)
-
(130,904,797)
Consumables and materials used
(93,607,242)
(6,606,731)
(25,101,120)
(125,315,093)
-
(125,315,093)
Contractors and labour hire expenses
(77,426,413)
(40,492,935)
(18,101,922)
(136,021,270)
16,708,406
(119,312,864)
Motor vehicle expenses
(14,085,152)
(585,890)
(789,654)
(15,460,696)
-
(15,460,696)
Depreciation and amortisation expenses
(12,958,588)
(1,930,768)
(478,252)
(15,367,608)
-
(15,367,608)
Other expenses
(15,024,211)
(2,008,036)
(3,294,260)
(20,326,507)
-
(20,326,507)
Segment Profit before Income Tax
19,723,211
(3,926,124)
1,694,242
17,491,329
-
17,491,329
Assets
183,235,340
16,514,472
9,767,236
209,517,048
(11,524,033)
197,993,015
Liabilities
100,404,103
15,638,572
10,449,299
126,491,974
(3,280,885)
123,211,089
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
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GENUSPLUS GROUP LTD
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60
Annual Report 2024
61
5.
Segment Reporting (continued)
The totals presented for the Group’s operating segments reconcile to the key financial figures as presented in its consolidated
financial statements as follows:
Note
2024
$
2023
$
Revenues
Total reportable segment revenues
551,685,483
444,178,894
Other segment revenues
23,492,614
21,509,363
Elimination of intersegment revenues
(19,468,645)
(17,818,911)
Group Revenues
555,709,452
447,869,346
Profit or loss
Total reportable segment operating profit
29,617,536
17,491,329
Other segment profit
Employment expenses
(10,482,512)
(8,395,026)
Consumables and materials used
(269,114)
(121,680)
Contractors and labour hire expenses
(30,990)
(728)
Motor vehicle expenses
(93,761)
(65,425)
Depreciation and amortisation expenses
(1,938,273)
(2,277,344)
Other expenses
(8,572,132)
(9,691,926)
Elimination of intersegment profits
21,790,642
21,513,735
Group operating profit
30,021,398
18,452,935
Share of profit of associates
-
(401,442)
Share of profit of joint ventures
(11,583)
(212,093)
Finance costs
872,934
(1,548,058)
Other gains / (losses)
(1,312,328)
215,401
Finance income
(1,855,260)
186,990
Group profit before tax
27,715,161
16,693,733
Assets
Total reportable segment assets
292,663,628
197,993,015
Other segment assets
16,881,117
61,379,305
Elimination of inter-segment assets
(21,394,347)
(31,953,748)
Group assets
288,150,398
227,418,572
Liabilities
Total reportable segment liabilities
192,135,347
123,211,089
Other segment liabilities
14,669,307
10,397,753
Elimination of inter-segment liabilities
(39,820,698)
(11,166,403)
Group liabilities
166,983,956
122,442,439
6.
Revenue
The Group’s revenue disaggregated by type is as follows:
Note
2024
$
2023
$
Construction
408,272,748
305,341,500
Services
142,916,865
138,837,394
551,189,613
444,178,894
The Group’s revenue disaggregated by pattern of revenue recognition is as follows:
Construction
Services
Note
2024
$
2023
$
2024
$
2023
$
Products and services
Transferred over time
408,272,748
305,341,500
105,805,865
97,795,450
Transferred at a point in time
-
-
37,111,000
41,041,944
408,272,748
305,341,500
142,916,865
138,837,394
Note
2024
$
2023
$
Contract balances
Trade receivables
16
49,362,910
54,623,086
Contract assets
17
39,472,365
37,595,573
88,835,275
92,218,659
Trade receivables are non-interest bearing and are generally on 30 to 90 day terms. In 2024 ($76,606) (2023: $38,069) was
recognised as provision for expected credit losses on trade receivables.
Contract assets and revenue includes contract modifications recognised in accordance with the Group’s accounting policy for
which amounts are not yet finalised with customers.
7.
Other income
Note
2024
$
2023
$
Net gain on disposal of property, plant and equipment
464,047
1,343,236
Insurance claims and recoveries
273,748
280,732
Apprenticeship training subsidies
382,389
889,898
Bad debt recovered
2,223,000
-
Other income
680,785
1,176,586
4,023,969
3,690,452
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
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63
8.
Joint arrangements
Details of material joint arrangements
Details of each of the Group’s material joint arrangements at the end of the reporting period are as follows:
Name of joint arrangement
Principal activity
Place of incorporation
Proportion of ownership
interest held by the Group
2024
2023
Acciona Genus Joint
Arrangement
The engineering,
procurement, construction
and commissioning of a
high-voltage electricity
transmission line and
associated infrastructure
ACA Central, NSW
25%
-
Samsung Genus Joint
Arrangement
Design and build of a
battery energy storage
system
Melbourne, VIC
30%
-
Note: During 2023, Blue Tongue Energy Pty Ltd was a joint arrangement. Blue Tongue Energy Pty Ltd was fully acquired on 28 July 2023.
Acciona Genus Joint Arrangement
During FY24, the Group entered into a joint arrangement with Acciona Construction Pty Ltd for the construction of the HumeLink
East project in New South Wales. The Group holds 25% ownership of the joint arrangement. The parties to the contract have
agreed to establish an unincorporated and fully integrated joint venture. Each party may contract jointly and severally with the
client for performance of the works.
The legal form of the joint arrangement and terms of the contract satisfies the requirements of AASB 11 Joint Arrangements
(para14-15). The parties would be considered joint operators, and the joint arrangement would be considered a joint operation
for the purposes of the standard. Accordingly, all accounting should be undertaken per the requirements of AASB11, on a
proportionate basis by each of the parties to the joint arrangement.
The Group’s interest in Acciona Genus Joint Arrangement is accounted for using the proportional consolidation method in the
consolidated financial statements. The following table illustrates the summarised financial information of the Group’s investment
in Acciona Genus Joint Arrangement.
Acciona Genus Joint Arrangement
Note
2024
2023
Summarised Financial Information
Current assets
21,749,797
-
Non current assets
3,760
-
Current liabilities
(21,086,164)
-
Equity
667,393
-
Acciona Genus Joint Arrangement
Note
2024
$
2023
$
Revenue
31,066,570
-
Depreciation and amortisation
-
-
Interest expense
-
-
Income tax expense
(264,604)
-
Profit and total comprehensive income (100%)
931,997
-
Profit and total comprehensive income (25%)
232,999
-
Elimination of unrealised profit on downstream sales
-
-
Group’s share of total comprehensive income
232,999
-
No dividends were received from Acciona Genus Joint Arrangement during the year ended 30 June 2024.
8.
Joint arrangements (continued)
Samsung Genus Joint Arrangement
During FY24, the Group entered into a joint arrangement with Samsung C&T Corporation for the construction of the Melbourne
Renewable Energy Hub – Stage 1A project located in Plumpton Victoria. The Group holds 30% ownership of the joint arrangement.
The parties to the contract have agreed to establish an unincorporated and fully integrated joint venture. Each party may contract
jointly and severally with the client for performance of the works.
The legal form of the joint arrangement and terms of the contract satisfies the requirements of AASB11 (para14-15). The parties
would be considered joint operators, and the joint arrangement would be considered a joint operation for the purposes of the
standard. Accordingly, all accounting should be undertaken per the requirements of AASB11, on a proportionate basis by each of
the parties to the joint arrangement.
The Group’s interest in Samsung Genus Joint Arrangement is accounted for using the proportional consolidation method in the
consolidated financial statements. The following table illustrates the summarised financial information of the Group’s investment
in Samsung Genus Joint Arrangement.
Samsung Genus Joint Arrangement
Note
2024
$
2023
$
Summarised Financial Information
Current assets
36,631,599
-
Non current assets
88,505
-
Current liabilities
(35,081,132)
-
Non-current liabilities
(28,392)
-
Equity
1,610,580
-
Samsung Genus Joint Arrangement
Note
2024
$
2023
$
Revenue
32,880,476
-
Depreciation and amortisation
(3,983)
-
Interest expense
-
-
Income tax expense
(689,505)
-
Profit and total comprehensive income (100%)
1,972,829
-
Profit and total comprehensive income (30%)
591,849
-
Elimination of unrealised profit on downstream sales
-
-
Group’s share of total comprehensive income
591,849
-
No dividends were received from Samsung Genus Joint Arrangement during the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
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Annual Report 2024
65
9.
Other expenses
Note
2024
$
2023
$
Other expenses recognised during the period
Insurance
4,710,098
6,131,787
Consultancy, legal and other professional fees
2,249,531
1,413,511
Computer, and other ICT expenses
965,759
1,267,210
Occupancy costs
1,163,470
1,247,017
Stamp duty – acquisition of Pole Foundations
126,690
948,370
Travel, accommodation and entertainment
928,112
794,591
Corporate communications and sponsorships
247,399
314,665
Administrative expenses
2,220,303
1,989,051
Other expenses
276,593
706,218
Total other expenses
12,887,955
14,812,420
10.
Other gains and losses
Note
2024
$
2023
$
Other gains and losses recognised during the period
Net gain arising on financial liabilities designated as at FVTPL
-
601,000
Net (loss) arising on financial assets mandatorily measured as at FVTPL
(1,288,470)
(461,000)
Net foreign exchange gain (loss)
(23,858)
115,664
Other gains and (losses)
-
(40,263)
Total other gains and losses
(1,312,328)
215,401
11.
Finance costs and finance income
Finance income for the reporting periods consist of the following:
Note
2024
$
2023
$
Interest income from cash and cash equivalents
842,743
138,575
Interest on leases
30,191
48,415
872,934
186,990
Finance costs for the reporting periods consist of the following:
Interest expenses for borrowings at amortised cost:
Bank loans
265,398
279,088
Lease liabilities
22
1,310,847
957,051
Total interest expense
1,576,245
1,236,139
Other finance costs
Bank fees and charges
260,833
298,283
Borrowing costs
18,182
13,636
Total other finance costs
279,015
311,919
Total finance costs
1,855,260
1,548,058
12.
Income tax expense
The major components of tax expense and the reconciliation of the expected tax expense based on the domestic effective tax
rate of GenusPlus Group Ltd at 30% (2023: 30%) and the reported tax expense in profit or loss are as follows:
Reconciliation between tax expense and pre-tax accounting profit
Note
2024
$
2023
$
Profit before tax
27,715,161
16,693,733
Domestic tax rate for GenusPlus Group Ltd
30%
30%
Expected tax expense
8,314,548
5,008,120
Adjustment for tax-exempt income:
-
(180,300)
Adjustment for non-deductible expenses:
17,901
227,110
Adjustments in the current year in relation to the current tax of prior years
120,674
(1,766,720)
Actual tax expense
8,453,123
3,288,210
Tax expense comprises:
Income tax expense
7,641,145
7,660,030
Adjustments in relation the current tax of prior years
1,349,200
(4,773,496)
Origination and reversal of temporary differences
(537,222)
401,676
Income tax expense reported in the income statement
8,453,123
3,288,210
The applicable effective tax rates are:
30.5%
19.7%
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
66
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
66
Annual Report 2024
67
12.
Income tax expense (continued)
(a)
Recognised deferred tax assets and liabilities
Deferred income tax balances relate to the following:
1 July
2022
$
Recognised in
profit and loss
$
30 June
2023
$
Recognised in
profit and loss
$
30 June 2024
$
Deferred tax liabilities
Contract assets
(13,817,747)
2,539,075
(11,278,672)
(3,673,299)
(14,951,971)
Trade and other receivables
(97,436)
120,232
22,796
(41,124)
(18,328)
Right-of-use assets
(6,984,928)
7,411
(6,977,517)
(426,211)
(7,403,728)
Customer relationships
(2,557,504)
974,547
(1,582,957)
737,545
(845,412)
Other current assets
(454,926)
43,586
(411,340)
365,551
(45,789)
(23,912,541)
3,684,851
(20,227,690)
(3,037,538)
(23,265,228)
Deferred tax assets
Financial assets
(340,747)
322,361
(18,386)
21,861
3,475
Trade and other payables
-
-
-
295,322
295,322
Other current assets
108,812
(108,812)
-
-
-
Property, plant and
equipment
(781,927)
(323,167)
(1,105,094)
6,072,120
4,967,026
Accrued expenses
150,000
(150,000)
-
-
-
Contract liabilities
4,079,690
(4,079,690)
-
-
-
Lease liabilities
6,599,371
(38,475)
6,560,896
(4,067,492)
2,493,404
Statutory liabilities
696,429
45,593
742,022
310,748
1,052,770
Employee benefits
2,711,333
231,634
2,942,967
1,218,592
4,161,559
Blackhole expenditure
420,005
108,166
528,171
(253,221)
274,950
Transferred tax losses
110,235
(88,079)
22,156
(22,156)
-
Borrowing costs
10,902
(6,057)
4,845
(1,013)
3,832
13,764,103
(4,086,526)
9,677,577
3,574,761
13,252,338
(10,148,438)
(401,675)
(10,550,113)
537,223
(10,012,890)
All deferred tax assets (including tax losses and other tax credits) have been recognised in the statement of financial position.
(b)
Current Income tax
Note
2024
$
2023
$
Income tax payable
4,648,381
6,725,475
13.
Earnings per share
Both the basic and diluted earnings per share have been calculated using the profit attributable to shareholders of the parent
company (GenusPlus Group Ltd) as the numerator, i.e. no adjustments to profits were necessary during the year ended 30 June
2024 and 30 June 2023.
Note
2024
$
2023
$
Profit for the period
19,262,038
13,405,524
The weighted average number of shares for the purpose of calculation of diluted earnings per share can be reconciled to the
weighted average number of ordinary shares used in the calculation of basic earnings per share as follows:
Note
2024
No.
2023
No.
Weighted average number of shares used in basic earnings per share
177,724,948
177,277,319
Shares deemed to be issued for no consideration
3,196,492
-
Weighted average number of shares used in diluted earnings per share
180,921,440
177,277,319
Earnings per share (basic)
10.84
7.56
Earnings per share (diluted)
10.65
7.56
14.
Share-based payment arrangements
At 30 June 2024, the Group had the following share-based payment arrangements.
Performance rights
On 19 February 2024, the Group granted performance rights to key management personnel. Upon vesting, each performance right
entitles the holder to one ordinary share of GenusPlus Group Ltd (ASX:GNP). The vesting conditions and number of rights granted
are detailed as follows; all performance rights are to be settled by the physical delivery of shares.
Security
Number
Details
Key vesting conditions
Exercise
price
Expiry
date
Retention
Performance
Rights
35,914
Unlisted performance rights issued
for nil consideration each exercisable
into one ordinary share at any
time between meeting the vesting
condition and the expiry date
The holder remaining continuously
employed (or otherwise engaged)
by the Company up to and including
30 June 2027
Nil
1 July
2028
Tranche A LTI
Performance
Rights
920,231
Unlisted performance rights issued
for nil consideration each exercisable
into one ordinary share at any
time between meeting the vesting
condition and the expiry date
Proportional vesting based on the
Absolute Total Shareholder Return
(“ATSR”), for the period from 1 July
2023 to 30 June 2025 (the “Tranche
A Performance Period”)
Nil
1 July
2027
Tranche B LTI
Performance
Rights
987,513
Unlisted performance rights issued
for nil consideration each exercisable
into one ordinary share at any
time between meeting the vesting
condition and the expiry date
Proportional vesting based on the
ATSR, for the period from 1 July 2023
to 30 June 2026 (the “Tranche B
Performance Period”)
Nil
1 July
2027
Share
Appreciation
Performance
Rights
1,252,834
Unlisted performance rights issued
for nil consideration each exercisable
into one ordinary share at any
time between meeting the vesting
condition and the expiry date
A proportion will vest based on the
share price growth from 1 July 2023
to 30 June 2027.
Nil
1 July
2028
There is a service condition that the key management personnel must be employed at the date of vesting for automatic receipt
of the shares. If they are not employed at the date of vesting, the board may, at its discretion, elect to award the shares to the key
management personnel.
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
68
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
68
Annual Report 2024
69
14.
Share-based payment arrangements (continued)
Measurement of fair values
Equity-settled share-based payment arrangements
The fair value of the performance rights were measured using the Black Scholes formula and Monte Carlo simulation. Service and
non-market performance conditions attached to the arrangements were not taken into account in measuring the fair value.
The inputs used in the measurement of the fair values at grant date of the equity-settled share-based payment plans were as
follows:
Security
Retention
Performance Rights
Tranche A
Performance Rights
Tranche A
Performance Rights
Share appreciation
Performance Rights
Vesting condition
Non-market
ATSR
ATSR
Share price appreciation
Methodology
Black Scholes
Monte Carlo
Monte Carlo
Monte Carlo
Iterations
n/a
100,000
100,000
100,000
Grant date
16 February 2024
19 February 2024
19 February 2024
19 February 2024
Measurement date
n/a
30 June 2025
30 June 2026
30 June 2027
Expiry date
1 July 2028
1 July 2027
1 July 2027
1 July 2028
Share price at grant
date ($)
1.390
1.410
1.410
1.410
Initial VWAP ($)
n/a
1.036
1.036
n/a
Initial share price ($)
n/a
n/a
n/a
n/a
Exercise price ($)
nil
nil
nil
nil
Risk-free rate (%)
3.771
3.752
3.752
3.752
Volatility (%)
38.27
38.26
38.26
38.26
Dividend yield (%)
1.430
1.410
1.410
1.410
Fair value per
Performance,
Right, rounded ($)
1.3057
1.0050
0.9294
0.9240
Number
35,914
920,231
987,513
1,252,834
Total value ($)
46,893
924,832
917,795
1,157,619
Expected volatility has been based on an evaluation of the historical volatility of the Company’s share price, particularly over the
historical period commensurate with the expected term. The expected term of the instruments has been based on historical
experience and general option holder behaviour.
14.
Share-based payment arrangements (continued)
Reconciliation of outstanding performance rights
The number and value of performance rights under each award were as follows at 30 June:
Employee
Number of options
Fair value per
performance right ($)
Tranche A Performance Rights
Outstanding 1 July 2023
-
-
Granted
920,231
1.01
Exercised
-
-
Forfeited
-
-
Outstanding 30 June 2024
920,231
1.01
Tranche B Performance Rights
Outstanding 1 July 2023
-
-
Granted
987,513
0.93
Exercised
-
-
Forfeited
-
-
Outstanding 30 June 2024
987,513
0.93
Share Appreciation Performance Rights
Outstanding 1 July 2023
-
-
Granted
1,252,834
0.92
Exercised
-
-
Forfeited
-
-
Outstanding 30 June 2024
1,252,834
0.92
Retention Performance Rights
Outstanding 1 July 2023
-
-
Granted
35,914
1.31
Exercised
-
-
Forfeited
-
-
Outstanding 30 June 2024
35,914
1.31
Expense recognised in profit and loss
2024
$
2023
$
Performance rights
482,773
-
15.
Cash and cash equivalents
Note
2024
$
2023
$
Cash at bank and in hand
Australian Dollar ($AUD) – unrestricted
100,682,744
46,452,195
Australian Dollar ($AUD) – held as guarantee1
283,937
285,043
Total cash and cash equivalents
100,966,681
46,737,238
1
In accordance with certain contractual arrangements, agreed amounts of cash at bank are held in guarantee to meet ongoing
performance obligations.
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
70
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
70
Annual Report 2024
71
16.
Trade and other receivables
Note
2024
$
2023
$
Current
Trade receivables, gross
49,569,568
54,753,138
Allowance for expected credit losses
(206,658)
(130,052)
Trade receivables
49,362,910
54,623,086
Other receivables
2,660,385
2,325,698
Total cash and cash equivalents
52,023,295
56,948,784
Trade receivables are non-interest bearing and are generally on 30 to 90 day terms. The Group has a policy of only dealing with
credit worthy customers. The expected credit losses on trade receivables are estimated by reference to past default experience
of the debtors and an analysis of the debtor’s current financial position, adjusted for factors that are specific to the debtors,
general economic conditions of the industry in which the debtors operate and an assessment of both the current as well as the
forecast direction of conditions at the reporting date. When the Group is reasonably certain that no recovery of the amount owing
is possible, the amount is considered irrecoverable and written off against the financial asset directly. Once an item is considered
uncollectable, all other amounts relating to the same customer are then also assessed for recoverability. The Group will continue
to strongly pursue all debts provided for. Due to their short-term nature, the net carrying value of trade receivables is considered
a reasonable approximation of fair value.
Allowance for expected credit losses
The consolidated entity has recognised a loss of $76,606 (2023: $38,069) in profit or loss in respect of the expected credit losses
for the year ended 30 June 2024.
Expected credit loss rate
Carrying amount
Allowance for expected
credit losses
Note
2024
$
2023
$
2024
$
2023
$
2024
$
2023
$
Consolidated
Not overdue
Nil
Nil
34,011,795
45,750,383
-
-
0 to 3 months overdue
Nil
Nil
7,485,242
4,387,410
-
-
3 to 6 months overdue
Nil
Nil
2,467,106
932,080
-
-
Over 6 months overdue
3.69%
3.53%
5,605,425
3,683,265
(206,658)
(130,052)
49,569,568
54,753,138
(206,658)
(130,052)
The majority of customers of the Group consist of tier 1 miners and industrial services business and government trading entities.
Accordingly, the calculation of expected credit losses is maintained at a relatively low level due to the infrequent nature of default
by any of these customers.
The movement in the allowance for expected credit losses in respect of Trade receivables during the year was as follows:
Note
2024
$
2023
$
Movement in provision for expected credit losses
Balance at start of year
(130,052)
(91,983)
Impairment losses recognised
(76,606)
(38,069)
Debts written off during the year
-
-
Balance at 30 June
(206,658)
(130,052)
17.
Contract assets
Note
2024
$
2023
$
Current
Contract assets
39,472,365
37,595,573
Total contract assets
39,472,365
37,595,573
Contract assets represents the unbilled amounts expected to be collected from customers for contract work performed to date.
The contract assets are transferred to trade receivables when the rights have become unconditional. This usually occurs when
the Group issues an invoice in accordance with contractual terms to the customer.
Remaining performance obligations
The remaining performance obligations balances for both 30 June 2024 and 30 June 2023 presented above relate to the revenue
expected to be recognised from ongoing construction type contracts which were not wholly performed at each of those dates.
18.
Financial assets and liabilities
Categories of financial assets and liabilities
Note 4 provides a description of each category of financial assets and financial liabilities and the related accounting policies. The
carrying amounts of financial assets and financial liabilities in each category are as follows:
30 June 2024
Note
Amortised cost
$
Fair value
through profit
or loss
$
Total
$
Financial assets
Cash and cash equivalents
15
100,966,681
-
100,966,681
Trade and other receivables
16
52,023,295
-
52,023,295
Current finance lease receivable
326,741
-
326,741
Listed equity securities (a)
-
691,500
691,500
Non-current finance lease receivable (a)
110,403
-
110,403
Non-current other financial assets (a)
45,358
-
45,358
Total financial assets
153,472,478
691,500
154,163,978
(a) Non-current financial assets comprises loans to associates, listed equity securities and non-current finance lease receivables valued
at $847,261.
30 June 2024
Note
Other liabilities
amortised cost
$
Other liabilities
fair value
through profit
or loss
$
Total
$
Financial liabilities
Bank borrowings
27
1,580,000
-
1,580,000
Leases
22
10,317,098
-
10,317,098
Trade and other payables
25
75,097,353
-
75,097,353
Non-current - bank borrowings
27
2,050,000
-
2,050,000
Non-current - leases
22
14,655,827
-
14,655,827
Non-current contingent consideration
-
650,000
650,000
Total financial liabilities
103,700,278
650,000
104,350,278
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
72
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
72
Annual Report 2024
73
18.
Financial assets and liabilities (continued)
30 June 2023
Note
Amortised cost
$
Fair value
through profit
or loss
$
Total
$
Financial liabilities
Cash and cash equivalents
15
46,737,238
-
46,737,238
Trade and other receivables
16
56,948,784
-
56,948,784
Current finance lease receivable
326,741
-
326,741
Listed equity securities (a)
-
461,000
461,000
Non-current finance lease receivable (a)
402,379
-
402,379
Non-current other financial assets (a)
266,997
-
266,997
Total financial liabilities
104,682,139
461,000
105,143,139
(b) Non-current financial assets comprises loans to associates, listed equity securities and non-current finance lease receivables valued at $1,130,376.
30 June 2023
Note
Other liabilities
amortised cost
$
Other liabilities
fair value
through profit
or loss
$
Total
$
Financial liabilities
Bank borrowings
27
1,580,000
-
1,580,000
Leases
22
9,007,690
-
9,007,690
Trade and other payables
25
50,993,122
-
50,993,122
Non-current - bank borrowings
27
4,280,000
-
4,280,000
Non-current - leases
22
12,861,963
-
12,861,963
Total financial liabilities
78,722,775
-
78,722,775
A description of the Group’s financial instrument risks, including risk management objectives and policies is given in Note 39.
Financial assets at fair value through profit or loss (FVTPL).
Financial assets at FVTPL include the equity investment in Volt Group Ltd (ASX:VPR). The Group accounts for the investment at
FVTPL and did not make the irrevocable election to account for it at FVOCI.
Note
2024
$
2023
$
Listed investment in Volt Group Ltd (VPR)
691,500
461,000
691,500
461,000
Borrowings
Borrowings include the following financial liabilities:
2024
$
Current
2023
$
2024
$
Non-current
2023
$
At amortised cost
Bank borrowings
1,580,000
1,580,000
2,700,000
4,280,000
Total borrowings
1,580,000
1,580,000
2,700,000
4,280,000
Bank borrowings are secured by a floating charge over the assets of the Group (see Note 27). Current interest rates are variable and
average 4.44% (2023: 4.40%). The carrying amount of the other bank borrowings is considered to be a reasonable approximation of
the fair value.
Other financial instruments
The carrying amount of the following financial assets and liabilities is considered a reasonable approximation of fair value:
•
trade and other receivables
•
cash and cash equivalents
•
trade and other payables.
19.
Inventories
Note
2024
$
2023
$
Current
At cost:
Raw materials and stores
2,840,598
3,796,472
Total inventories
2,840,598
3,796,472
20.
Other assets
Note
2024
$
2023
$
Current
Prepayments
6,364,290
5,279,570
Security deposits
276,115
160,296
Total other assets
6,640,405
5,439,866
On an annual basis, the Group undertakes a risk assessment and re-insurance against material risks identified and for assets held
by the Group. This assessment is generally completed prior to the conclusion of the financial reporting period, with new policies in
place at the reporting date which cover the following year. Pre-paid insurance at 30 June 2024, covers the period to April 2025.
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
74
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
74
Annual Report 2024
75
21.
Property, plant and equipment
For the year ended
30 June 2024
Land and
buildings
$
Leasehold
improvements
$
Motor
vehicles
$
Plant and
equipment
$
Furniture,
fixtures and
fittings
$
Software and
technology
$
Tooling and
low value
assets
$
PPE not
available for
use1
$
Total
$
Gross carrying amount
Balance at 1 July 2023
1,209,912
645,612
18,724,539
23,973,094
589,835
3,125,670
731,763
-
49,000,425
Additions
-
54,524
3,982,676
5,442,513
50,035
123,398
393,278
3,886,984
13,933,408
Acquisition through business
combinations
-
-
1,667,890
-
-
-
-
-
1,667,890
Disposals
-
-
(831,791)
(1,325,142)
-
-
-
-
(2,156,933)
Balance at 30 June 2024
1,209,912
700,136
23,543,314
28,090,465
639,870
3,249,068
1,125,041
3,886,984
62,444,790
Depreciation and impairment
Balance at 1 July 2023
(434,216)
(255,966)
(9,851,021)
(17,297,924)
(447,629)
(1,823,954)
(642,191)
-
(30,752,901)
Disposals
-
-
542,222
843,775
-
-
-
-
1,385,997
Depreciation
(146,905)
(92,364)
(2,776,376)
(3,607,960)
(73,587)
(800,775)
(150,445)
-
(7,648,412)
Balance at 30 June 2024
(581,121)
(348,330)
(12,085,175)
(20,062,109)
(521,216)
(2,624,729)
(792,636)
-
(37,015,316)
Carrying amount 30 June
2024
628,791
351,806
11,458,139
8,028,356
118,654
624,339
332,405
3,886,984
25,429,474
1
At 30 June 2024, there is plant that has been purchased, and is currently being shipped. The first delivery was delivered on 17 July 2024.
21.
Property, plant and equipment (continued)
For the year ended 30 June 2023
Land and
buildings
$
Leasehold
improvements
$
Motor
vehicles
$
Plant and
equipment
$
Furniture,
fixtures and
fittings
$
Software and
technology
$
Tooling and
low value
assets
$
Total
$
Gross carrying amount
Balance at 1 July 2022
761,120
608,404
14,199,230
25,047,242
573,928
2,782,460
703,046
44,675,430
Additions
14,592
37,208
1,608,764
1,060,162
22,564
378,647
32,353
3,154,290
Acquisition through business combinations
-
-
2,415,000
411,000
-
-
-
2,826,000
Re-classification1
-
-
1,120,997
(1,275,072)
(3,957)
3,957
-
(154,075)
Re-classification from right of use assets
434,200
-
1,668,535
220,091
-
-
-
2,322,826
Disposals
-
-
(2,287,987)
(1,490,329)
(2,700)
(39,394)
(3,636)
(3,824,046)
Balance at 30 June 2023
1,209,912
645,612
18,724,539
23,973,094
589,835
3,125,670
731,763
49,000,425
Depreciation and impairment
Balance at 1 July 2022
(153,454)
(182,207)
(8,939,254)
(15,793,301)
(358,929)
(1,044,932)
(528,247)
(27,000,324)
Disposals
-
-
1,464,485
1,278,771
772
18,822
3,636
2,766,486
Re-classification
-
-
(39,258)
39,258
-
-
-
-
Re-classification from right of use assets
(165,858)
-
(981,932)
(125,691)
-
-
-
(1,273,481)
Depreciation
(114,904)
(73,759)
(1,355,062)
(2,696,961)
(89,472)
(797,844)
(117,580)
(5,245,582)
Balance at 30 June 2023
(434,216)
(255,966)
(9,851,021)
(17,297,924)
(447,629)
(1,823,954)
(642,191)
(30,752,901)
Carrying amount 30 June 2023
775,696
389,646
8,873,518
6,675,170
142,206
1,301,716
89,572
18,247,524
1
Assets acquired as part of the Pole Foundations business combination in 2022 that were previously recorded as plant and equipment have been re-classified as motor vehicles. Other items of intellectual
property acquired from Pole Foundations Australia have been re-classified as intangibles (Note 24).
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
76
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
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Annual Report 2024
77
21.
Property, plant and equipment (continued)
All depreciation and impairment charges are included within depreciation, amortisation and impairment of non-financial assets.
Total depreciation and amortisation recognised during the reporting period:
Note
2024
$
2023
$
Depreciation
Buildings
146,905
114,904
Leasehold improvements
92,364
73,759
Motor vehicles
2,776,376
1,355,062
Plant and equipment
3,607,961
2,696,961
Furniture, fixtures and fittings
73,587
89,472
Software and technology
800,775
797,844
Tooling and low value assets
150,445
117,580
Total depreciation expense for the year
7,648,413
5,245,582
Depreciation – right of use assets
22
3,943,628
6,629,692
Amortisation – intellectual property and customer contracts
3,262,210
3,337,917
Total depreciation and amortisation
14,854,251
15,213,191
The net assets of the Group have been pledged as security for the Group’s other bank borrowings (see Note 27).
22.
Leases
Lease liabilities are presented in the statement of financial position as follows:
Note
2024
$
2023
$
Current
10,317,098
9,007,690
Non-current
14,655,827
12,861,963
Total leases
24,972,925
21,869,653
Group as a lessee
The Group has lease contracts for land and buildings and for various items of plant and equipment and motor vehicles used in
its operations. Leases of plant and equipment and motor vehicles generally have lease terms between 3 and 5 years after which
ownership of the underlying asset passes to the Group. Leases over land and buildings have lease terms of between 1 and 10
years. The Groups obligations under its leases are secured by the lessor title to the leased assets.
The Group also has certain leases of office equipment with low value. The Group applies the ‘short-term lease’ and ‘lease of low-
value assets’ recognition exemptions for these leases.
22.
Leases (continued)
Set out below are the carrying amounts of right-of-use assets and the movement during the period:
Note
2024
$
2023
$
Right-of-use assets – Land and Buildings
As at 1 July
2,624,838
6,188,709
Additions
4,705,308
962,547
Adjustments related to changes in lease conditions 1
-
213,868
Re-classified to property, plant and equipment (land and buildings) 2
-
(268,342)
Depreciation expense
(2,204,208)
(2,120,562)
De-recognised during the period 3
(272,820)
(2,351,382)
As at 30 June
4,853,118
2,624,838
Right-of-use assets – Plant and Equipment
As at 1 July
8,451,574
7,624,232
Additions
60,559
3,435,302
Disposal
-
(149,638)
Re-classification to property, plant & equipment 2
-
(94,399)
Depreciation expense
(601,870)
(2,363,923)
As at 30 June
7,910,263
8,451,574
Right-of-use asset – Motor Vehicles
As at 1 July
12,181,979
9,470,151
Additions
4,834,810
5,705,842
Disposals
-
(162,204)
Re-classification to property, plant & equipment 2
-
(686,603)
Depreciation expense
(1,137,551)
(2,145,207)
As at 30 June
15,879,238
12,181,979
Total Right-Of-Use Assets
28,642,619
23,258,391
1
Increase resulting from a change in the monthly lease payable to the owner.
2
Re-classification relating to the payout of the applicable finance lease agreement.
3
Leases surrendered during the period or re-classified as finance lease receivable from a sub-lease arrangement.
The following are the amounts recognised in profit or loss:
Note
2024
$
2023
$
Depreciation of right-of-use assets
3,943,628
6,629,692
Interest expense on right-of-use asset lease liabilities
1,310,848
957,051
Expense relating to short-term leases
1,633,394
2,591,077
6,887,870
10,177,820
The group had total cash outflows for leases of $11,237,529 in 2024 (2023: $9,274,224). The Group also had non-cash additions
and other adjustments to right-of-use assets and lease liabilities of $9,603,403 in 2024 (2023: $10,317,559).
The Group does not face a significant liquidity risk with regards to its lease liabilities. Lease liabilities are monitored within the
Group treasury function.
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
78
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
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Annual Report 2024
79
23.
Commitments
The group is committed to incurring other capital expenditure of $27,681,933 (2023: Nil). These commitments are expected to be
settled in the 2025 financial year.
24.
Intangible assets
The movements in the net carrying amount of intangible assets is as follows:
Note
2024
$
2023
$
Goodwill
Balance 1 July
19,614,788
19,540,788
Acquired through business combinations
36
3,159,767
74,000
Balance 30 June
22,774,555
19,614,788
Accumulated impairment losses
-
-
Accumulated amortisation
-
-
Carrying amount at 30 June
22,774,555
19,614,788
Customer contracts
Balance 1 July
9,004,000
9,043,890
Acquired through joint arrangement
-
-
Disposals
-
(39,890)
Balance 30 June
9,004,000
9,004,000
Accumulated amortisation
(4,073,701)
(2,404,434)
Carrying amount at 30 June
4,930,299
6,599,566
Other intellectual property
Balance 1 July
7,320,821
7,166,476
Re-classified from property, plant and equipment
-
154,345
Balance 30 June
7,320,821
7,320,821
Accumulated amortisation
(4,064,716)
(2,471,774)
Carrying amount at 30 June
3,256,105
4,849,047
Total intangible assets
30,960,959
31,063,401
No adjustments to Goodwill were recognised during the reporting period.
Customer contracts and other intellectual property are amortised over their estimated useful lives, which is on average 11 years
(customer contracts) and 9 years (intellectual property).
Impairment testing
For the purpose of annual impairment testing, goodwill is allocated to the following cash-generating units, which are the units
expected to benefit from the synergies of the business combinations in which the goodwill arises. Effective 30 June 2024 the
Company made changes to its cash-generating units which are now consistent with the operating segments as this allocation is
consistent with the management of the business.
Note
2024
$
2023
$
Infrastructure
20,255,531
19,485,416
Industrial Services
2,519,025
129,372
Communications
-
-
Goodwill allocation at 30 June
22,774,556
19,614,788
24.
Intangible assets (continued)
The recoverable amounts of the cash-generating units were determined based on value-in-use calculations, covering a five-
year forecast, followed by an extrapolation of expected cash flows for the units’ remaining useful lives using the growth rates
determined by management. The present value of the expected cash flows of each segment is determined by applying a suitable
discount rate.
Growth rates
Discount rates
2024
2023
2024
2023
Infrastructure
2%
3%
12%
12%
Industrial Services
2%
3%
12%
12%
Communications
-
-
-
-
Growth rates
The growth rates reflect the long-term average growth rates for the business of the segments and the markets they operate in.
Sensitivity
As disclosed in Note 4, the directors have made judgements and estimates in respect of impairment testing of goodwill. Should
these judgements and estimates not occur the resulting goodwill carrying amount may decrease. The impairment assessment is
sensitive to movements in key assumptions including the discount rate applied and EBITDA margin. Management has performed
sensitivity analysis for these variables to determine if reasonable changes in the assumptions would cause the carrying amount of
the above CGUs to exceed their recoverable amount.
Under the existing assumptions, impairment of either the Genus Infrastructure or Industrial Services Division cash generating
units is not expected.
Discount rates
The discount rates reflect appropriate adjustments relating to market risk and specific risk factors of each unit.
Cash flow assumptions
Genus Infrastructure and Industrial Services Division’s
Management’s key assumptions include stable profit margins, based on past experience in this market. The Group’s management
believes that this is the best available input for forecasting this mature market. Cash flow projections reflect stable profit margins
achieved immediately before the budget period. No expected efficiency improvements have been taken into account and prices
and wages reflect publicly available forecasts of inflation for the industry.
25.
Trade and other payables
Note
2024
$
2023
$
Unsecured liabilities:
Trade payables
28,002,684
25,966,393
Goods and services tax payable
1,629,177
1,962,464
Accrued wages
4,319,725
2,934,745
Sundry payables and accrued expenses
41,145,767
20,129,520
Total trade and other payables
75,097,353
50,993,122
All amounts are short-term. The carrying values of trade payables and other payables are considered to be a reasonable
approximation of fair value.
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
80
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
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Annual Report 2024
81
26.
Contract liabilities
Note
2024
$
2023
$
Short-term advances for construction services
33,384,790
16,876,882
33,384,790
16,876,882
Advances received for construction contract work represent customer payments received in advance of performance (contract
liabilities) that are expected to be recognised as revenue in the next financial year. The amounts recognised in respect of
construction contracts are expected to be utilised within the next reporting period. The balance relating to advances for materials
decreased during the period as the related aspects of the contracts were performed. Advances in relation to construction services
increased during the period due to the increase in the Group’s customer base, and the prepaid revenue received.
27.
Other financial liabilities
Note
2024
$
2023
$
Secured borrowings – at amortised cost
Bank loan – secured
Current
1,580,000
1,580,000
Non-current
2,700,000
4,280,000
4,280,000
5,860,000
The bank debt facility comprises term loans with quarterly principal repayments with maturity dates between two and five years.
The group has an overdraft/trade finance facility with a limit of $10,000,000 with $10,000,000 available at 30 June 2024.
The group has an equipment finance facility with Commonwealth Bank of Australia Pty Ltd (CBA) with a limit of $7,000,000 (FY23
- $7,000,000) with $2,598,383 available at 30 June 2024 (FY23 - $3,574,000).
The group has an equipment finance facility with Toyota Asset Finance with a limit of $20,000,000 (FY23 - $12,000,000) with
$11,111,000 available at 30 June 2024 (FY23 - $2,760,000).
The group has an equipment finance facility with Australia and New Zealand Banking Group Limited (ANZ) with a limit of
$4,000,000 (FY23 - $4,000,000) with $2,000,000 available at 30 June 2024 (FY23 - $2,000,000).
The group has an equipment finance facility with Westpac Banking Corporation (WBC) with a limit of $2,000,000 (FY23 –
$2,000,000) with $745,000 available at 30 June 2024 (FY23 - $745,000)
The bank debt is secured by a General Security Agreement of the group. Under the agreement, the Group is required to satisfy
financial metrics that demonstrate its ongoing financial health and viability. These covenants relate to the Group’s ability to meet
debt service cover, gross leverage and liquidity ratios and tangible net worth thresholds. The Group was not in breach of any loan
agreements permitting the lender to demand accelerated repayments at year end, nor did any breach occur during the year. The
Group was not in default of any loans payable recognised at year end during the year.
Contingent consideration
As part of the agreement to purchase 50% of Blue Tongue Energy Pty Ltd (Blue Tongue) contingent consideration of $350,000
has been deferred, contingent on Genus receiving revenue from customers that was due at the date of acquisition. As at the date
of signing, no further progress has been made in obtaining the outstanding revenue.
28.
Employee benefits
Employee benefits expense
Expenses recognised for employee benefits are analysed below:
Note
2024
$
2023
$
Salaries and wages
132,948,230
115,216,595
Superannuation
11,038,442
9,347,134
Amounts provided for employee entitlements
14,692,579
6,497,396
Short term incentives
3,882,708
1,574,974
Other allowances and expenses
10,190,511
8,021,289
Employee benefits expense
172,752,470
140,657,388
Employee benefits
The liabilities recognised for employee benefits consist of the following amounts:
Note
2024
$
2023
$
Current
Annual leave
6,956,448
6,012,936
Long service leave
1,167,355
640,388
Other short term employee benefits
5,370,063
1,953,981
13,493,866
8,607,305
Non-current
Long service leave
377,997
909,889
Total employee benefits
13,871,863
9,517,194
The current portion of these liabilities represents the groups obligations to which the employee has a current legal entitlement.
These liabilities arise mainly from accrued annual leave entitlement at reporting date and for employees who have satisfied the
service eligibility for long service leave – usually 10 years.
29.
Share capital
The share capital of the Group consists only of fully paid ordinary shares; the shares do not have a par value. Ordinary shares
participate in dividends and the proceeds on winding up of the Group in proportion to the number of shares held.
2024
Shares
2023
Shares
2024
$
2023
$
Beginning of the year
177,724,948
176,752,420
55,265,025
53,789,037
Shares issued as part of a business combination1
-
972,528
-
923,902
Deferred tax adjustments
-
-
-
558,074
Share issue costs
-
-
-
(5,988)
Total contributed equity at 30 June
177,724,948
177,724,948
55,265,025
55,265,025
1
972,528 shares were issued as part consideration for the acquisition of Blue Tongue Energy Pty Ltd on 15 December 2022.
Each share has the same right to receive dividend and the repayment of capital and represents one vote at the Shareholders’
Meeting of GenusPlus Group Ltd.
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
82
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
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Annual Report 2024
83
30.
Reserves
Notes
Share Based
Payment
Reserve
$
Foreign
Currency
Translation
reserve
$
Corporate
Restructure
reserve
$
Total
$
Balance at 1 July 2022
-
168,392
(511,834)
(343,442)
Movements in asset values measured in
foreign currencies that will subsequently
be re-classified to profit or loss
-
(146,908)
-
(146,908)
Balance at 30 June 2023
-
21,484
(511,834)
(490,350)
Balance at 1 July 2023
-
21,484
(511,834)
(490,350)
Issue of LTI performance rights
482,773
-
-
482,773
Balance at 30 June 2024
482,773
21,484
(511,834)
(7,577)
Corporate restructure reserve
The corporate reconstruction reserve recorded the transaction on the introduction of a new ultimate parent entity.
Foreign currency translation reserve
The foreign currency translation reserve records the un-recognised gains / (losses) incurred on translation of monetary items held
in US Dollars ($USD). The balance will be subsequently reported in profit and loss when the underlying value of the monetary item
(accounts payable) is settled.
31.
Dividends on equity instruments
Year ended 30 June 2024
Year ended 30 June 2023
Cents
per share
Total
$
Cents
per share
Total
$
Recognised amounts
Fully paid ordinary shares
Final dividend
2.5
4,443,124
2.0
3,554,499
On 3 November 2023, a dividend of 2.0c per share was paid to the holders of fully paid ordinary shares in respect of the financial
year ended 30 June 2023.
On 26 August 2024, the directors declared a fully franked dividend of 2.5 cents per share to the holders of fully paid ordinary
shares in respect of the financial year ended 30 June 2024. At the time of reporting, the dividend of $4,443,124 was unpaid. The
record date is 2 October 2024 and the payment date is 1 November 2024.
Distributions made and proposed
2024
$
2023
$
Franking credit balance
The amount of franking credits available for the subsequent financial year are:
Franking account balances as at the end of the financial year at 30% (2023: 30%)
20,551,288
11,082,528
32.
Reconciliation of cash flows
Reconciliation of cash flows from operating activities
2024
$
2023
$
Cash flows from operating activities
Profit after income tax
19,262,038
13,405,524
Non-cash flows in profit:
Gain on disposal of plant and equipment
(575,159)
(1,345,062)
Depreciation and amortisation
14,854,251
15,213,191
Share based payments – net of other share issue costs
482,773
(Increase)/decrease in value of investments reported at FVTPL
(230,500)
461,000
Share of results of associates and joint ventures
11,585
613,536
Net finance costs
982,326
1,361,068
Other fair value (gains)/losses
1,528,970
(594,681)
Changes in assets and liabilities:
Decrease/(increase) in trade and other receivables
7,540,715
20,062,832
Decrease / (increase) in other assets
(2,460,721)
(3,856,987)
(Increase) / decrease in inventories
1,527,397
(67,669)
(Decrease)/increase in trade and other payables
39,912,898
(6,100,864)
Net cash provided by operating activities
82,836,573
39,151,888
33.
Auditor remuneration
During the financial year the following fees were paid or payable for services provided by Grant Thornton, the auditor of the
company, its network firms and unrelated firms:
Note
2024
$
2023
$
Auditing services – Grant Thornton
Audit or review of the financial statements
395,000
235,000
Other services – Grant Thornton
Tax services
86,519
112,025
Other non-assurance services
3,910
9,845
Total auditor’s remuneration
485,429
356,870
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
84
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
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Annual Report 2024
85
34.
Related party transactions
The Group’s related parties include its key management personnel, related parties of its key management personnel, and others
as described below.
Unless otherwise stated, none of the transactions incorporate special terms and conditions and no guarantees were given or
received. Outstanding balances are usually settled in cash.
Transactions with related parties
As part of normal business operations, the Group undertakes construction work through associated entities, as well as leasing
rental properties. A summary of these transactions is included below.
2024
$
2023
$
Services provided by related parties
Pastoral Plus (Director D Riches)
1,078,021
565,626
Partum Engineering (Director D Riches)
6,577,772
9,893,117
Matt Riches and Dave Riches (Director D Riches)
737,440
623,177
Dave Riches (Director D Riches)
52,462
56,834
Edge People Management (Director D Riches)
131,328
108,833
Maali Group Pty Ltd
-
2,011,379
Services provided to related parties
Pastoral Plus (Director D Riches)
-
1,100
Blue Tongue Energy Pty Ltd (Associate)
-
68,098
Maali Group Pty Ltd
-
227,068
Partum Engineering (Director D Riches)
1,540
-
All services were contracted at arms’ length basis.
Amounts due to related parties at reporting date
Pastoral Plus (Director D Riches)
34,870
49,161
Partum Engineering (Director D Riches)
360,597
994,898
Edge People Management (Director D Riches)
9,077
15,623
Maali Group Pty Ltd
-
56,143
Amounts due to related parties at reporting date
Pastoral Plus (Director D. Riches)
-
-
Blue Tongue Energy Pty Ltd
-
566,656
Maali Group Pty Ltd
-
146,876
Partum Engineering (Director D Riches)
1,540
-
All amounts outstanding at reporting date were included in accounts payable or accounts receivable, and settled in accordance
with commercial terms.
Transactions with key management personnel
Key management of the Group are the Non-Executive members of the Group’s Board of Directors, the Group’s Chief Executive
Officer and the other members of the Executive team reporting to the Managing Director. Key management personnel
remuneration includes the following expenses:
Salaries including bonuses
2,625,572
2,272,760
Long service leave
93,306
38,702
Superannuation
194,591
163,535
Total remuneration
2,913,469
2,474,997
35.
Contingent assets and contingent liabilities
The Group has no contingent assets.
There were no material warranty or legal claims brought against the Group during the year. Unless recognised as a provision,
management considers these claims to be unjustified and the probability that they will require settlement at the Group’s expense
to be remote.
2024
$
2023
$
Estimates of the potential financial effect of contingent liabilities that may become payable:
Secured guarantee to company's bankers supported by a floating charge over the Group assets
31,731,181
30,151,730
Surety bonds secured by the Group assets
38,386,445
30,924,322
70,117,626
61,076,052
The CBA guarantee facility has a limit of $120,000,000 (2023 - $60,000,000).
The Surety bond facilities have a limit of $90,000,000 (2023 - $60,000,000).
36.
Acquisitions and disposals
Businesses acquired
During the year ended 30 June 2024, the Group acquired the issued share capital of Prasinus Energy Services Pty Ltd and
completed the acquisition of the remaining 50% of Blue Tongue Energy Pty Ltd.
The acquisition of Prasinus is aligned to the Group’s geographic growth strategy by expanding its service offering within the
growing Eastern Australian market and marks the first operations within Victoria. The finalisation of the Blue Tongue Energy
acquisition enables GenusPlus to further its service offerings in the battery energy storage and renewables sectors. Details of the
acquisitions are as follows:
Purchase of remaining 50% of Blue Tongue Energy Pty Ltd
On 31 July 2023, GenusPlus Group Ltd finalised the acquisition of the remaining 50% ownership in Blue Tongue Energy Pty Ltd.
The acquisition has been completed on a step-acquisition basis, with the prior investment in Blue Tongue Energy fair-valued at
the date of acquisition. An impairment loss of $1.5M has been recognised in the operating result.
Purchase of Prasinus Energy Services Pty Ltd
On 1 November 2023, GenusPlus Group Ltd through its wholly owned subsidiary Genus Infrastructure Pty Ltd acquired all shares
in Prasinus Energy Services Pty Ltd.
In relation to the acquisition of Prasinus Energy, the Group has performed a final assessment of the fair value of the assets and
liabilities as at the date of acquisition. For the purposes of the balance sheet, the assets and liabilities have been recorded at their
provisional fair values. Under Australian Accounting Standards, the Group has up to 12 months from the date of acquisition to
complete its initial acquisition accounting.
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
86
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
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Annual Report 2024
87
36.
Acquisitions and disposals (continued)
Blue Tongue Energy
$
Prasinus Energy
$
Cash
150,000
2,375,000
Intercompany receivables settled as part of acquisition
833,653
-
Transferred in January 2024
-
549,361
Deferred consideration
350,000
300,000
Fair value interest in the company as revalue
1,333,653
-
Total
2,667,306
3,224,361
Assets acquired and liabilities assumed at the date of acquisition
Cash and cash equivalents
55,444
50,000
Trade and other receivables
806,530
1,650,478
Property, plant and equipment
327,094
1,945,776
Inventory
-
375,000
Other assets
744,061
58,235
Goodwill
2,389,653
555,246
Trade and other payables
(995,705)
(537,792)
Employee entitlements
-
(301,022)
Other liabilities
(659,771)
(571,560)
Total
2,667,306
3,224,361
Net cash outflow on acquisition of businesses
Consideration paid in cash
(150,000)
(2,375,000)
Less: Cash and cash equivalents acquired
55,444
50,000
Total
(94,556)
(2,325,000)
Note: Goodwill of $214,868 was recognised in relation to the final L&M Powerlines earn out payment
37.
Interests in subsidiaries
Composition of the Group
Set out below details of the subsidiaries held directly by the Group:
Country of
Incorporation
Percentage Ownership
2024
2023
Parent Entity:
GenusPlus Group Ltd (a)
Australia
Subsidiaries:
Genus Infrastructure Pty Ltd
Australia
100%
100%
Diamond Underground Services Pty Ltd
Australia
100%
100%
Proton Power Pty Ltd
Australia
100%
100%
Complete Cabling and Construction Pty Ltd
Australia
100%
100%
Proton Technical Services Pty Ltd
Australia
100%
100%
Genus Infrastructure (Qld) Pty Ltd
Australia
100%
100%
Genus Fleet Management Pty Ltd
Australia
100%
100%
KEC Power Pty Ltd
Australia
100%
100%
Genus Infrastructure (NSW) Pty Ltd
Australia
100%
100%
ECM Consultancy Pty Ltd
Australia
100%
100%
Genus Renewables Pty Ltd
Australia
100%
100%
Connect Engineering Pty Ltd
Australia
100%
100%
Connect Infrastructure Pty Ltd
Australia
100%
100%
Connect Infrastructure Construction Pty Ltd
Australia
100%
100%
Genus PFA Pty Ltd
Australia
100%
100%
Blue Tongue Energy Pty Ltd (b)
Australia
100%
50%
Genus Infrastructure (VIC) Pty Ltd (c)
Australia
100%
-
(a)
GenusPlus Group Ltd was incorporated on 6 July 2017.
(b)
The remaining 50% ownership in Blue Tongue Energy was acquired on 28 July 2023.
(c)
Prasinus Energy Services Pty Ltd was acquired on 10 November 2023. This entity was renamed Genus Infrastructure (VIC) Pty Ltd on
8 July 2024.
38.
Deed of cross guarantee
Basis of Preparation
Pursuant to ASIC Corporations (Wholly owned Companies) Instrument 2016/785 the wholly-owned subsidiaries listed below are
relieved from the Corporations Act 2001 requirements for preparation, audit and lodgement of financial reports, and Directors’
reports.
It is a condition of the Instrument that the Company and each of the subsidiaries enter into a Deed of Cross Guarantee. The effect
of the Deed is that the Company 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. If a winding up occurs under other provisions of the Act, the
Company will only be liable in the event that after six months any creditor has not been paid in full. The subsidiaries have also
given similar guarantees in the event that the Company is wound up.
The subsidiaries subject to the Deed are:
•
Complete Cabling and Construction Pty Ltd
•
Connect Engineering Pty Ltd
•
Connect Infrastructure Pty Ltd
•
Connect Infrastructure Construction Pty Ltd
•
Genus Digital Pty Ltd
•
Genus Fleet Management Pty Ltd
•
Genus Infrastructure Pty Ltd
•
Genus Infrastructure (NSW) Pty Ltd
•
Genus Infrastructure (Qld) Pty Ltd
•
Genus PFA Pty Ltd
•
Genus Renewables Pty Ltd
•
Genus Services Pty Ltd
•
KEC Power Pty Ltd
•
Proton Power Pty Ltd
•
Proton Technical Services Pty Ltd
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
88
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
88
Annual Report 2024
89
39.
Financial risk management
Risk management objectives and policies
The Group is exposed to various risks in relation to financial instruments. The Group’s financial assets and liabilities by category are
summarised in Note 18. The main types of risks are market risk, credit risk and liquidity risk.
The Group’s risk management is coordinated at its headquarters, in close cooperation with the Board of Directors, and focuses on
actively securing the Group’s short to medium-term cash flows by minimising the exposure to financial markets. Long-term financial
investments are managed to generate lasting returns. The Group does not actively engage in the trading of financial assets for
speculative purposes nor does it write options. The most significant financial risks to which the Group is exposed are described
below.
Market risk analysis
The Group is exposed to market risk through its use of financial instruments and specifically to currency risk, interest rate risk and
certain other price risks, which result from both its operating and investing activities.
Foreign currency sensitivity
Most of the Group’s transactions are carried out in Australian Dollars (AUD). Exposures to currency exchange rates arise from the
Group’s sales and purchases denominated in US-Dollars (USD). The Group holds a bank account in USD for this purpose. The Group’s
exposure to foreign currency risk is minimal. No USD balances were held at 30 June 2024.
Interest rate sensitivity
The Group’s policy is to minimise interest rate cash flow risk exposures on long-term financing. Longer-term borrowings are therefore
usually at fixed rates. At 30 June 2024, the Group is exposed to changes in market interest rates through bank borrowings at variable
interest rates. Other borrowings are at fixed interest rates. The exposure to interest rates for the Group’s money market funds is
considered low as the Group currently holds more funds on deposit in interest bearing accounts than is owed in bank borrowings.
The following table illustrates the sensitivity of profit and equity to a reasonably possible change in interest rates of +/- 2.00%
(2023: +/- 2%). These changes are considered to be reasonably possible based on observation of current market conditions. The
calculations are based on a change in the average market interest rate for each period, and the financial instruments held at each
reporting date that are sensitive to changes in interest rates. All other variables are held constant.
Profit for the year
Equity
$
+2% / +2%
$
-2% / -2%
$
+2% / +2%
$
-2% / -2%
30 June 2024
720,320
(720,320)
720,320
(720,320)
30 June 2023
225,090
(225,090)
225,090
(225,090)
Other price risk sensitivity
The Group is exposed to other price risk in respect of the investment in Volt Group Limited (ASX: VPR).
For the listed investment in Volt Group Limited, an average volatility of 50% has been observed during 2024 (2023: 50%). Volatility
at the lower end of this scale is considered a suitable basis for estimating how profit or loss and equity would have been affected by
changes in market risk that were reasonably possible at the reporting date due to the relatively low volumes traded. If the quoted
stock price for VPR increased or decreased by that amount, profit or loss and equity would have changed by $345,750 (2023:
$230,500).
The investment in VPR is considered a long-term, strategic investment. In accordance with the Group’s policies, no specific hedging
activities are undertaken in relation to this investment. The investment is continuously monitored and voting rights arising from the
equity instrument are utilised in the Group’s favour.
39.
Financial risk management (continued)
Credit risk analysis
Credit risk is the risk that a counterparty fails to discharge an obligation to the Group. The Group is exposed to credit risk from
financial assets including cash and cash equivalents held at banks, trade and other receivables and contract assets.
The Group’s maximum exposure to credit risk is limited to the carrying amount of financial assets recognised at the reporting date,
as summarised below:
Classes of financial assets
2024
$
2023
$
Carrying amounts:
cash and cash equivalents
100,966,681
46,737,238
trade and other receivables
52,023,295
56,948,784
152,989,976
103,686,022
Credit risk management
The credit risk is managed on a group basis based on the Group’s credit risk management policies and procedures.
Cash and cash equivalents
The Group’s cash and cash equivalents are held with major reputable financial institutions.
Trade receivables
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer. The demographics of
the Group’s customer base, including the default risk of the industry and country in which the customers operate, has less of an
influence on credit risk. Geographically, the concentration of credit risk is within Australia and, by industry, the concentration is
within the commercial infrastructure and resources industries.
The Group continuously monitors defaults of customers and other counterparties, identified either by individual or group and
incorporates this information into its credit risk controls. The Group’s policy is to deal only with creditworthy counterparties. The
ongoing credit risk is managed through regular review of ageing analysis, together with credit limits per customer.
The Group does not require collateral in respect of trade receivables and contract assets.
To mitigate the impact of any single credit default, the Group maintains a policy of Trade Credit Insurance that provides protection
in the event of default.
The Group’s management considers that all the above financial assets that are not impaired or past due for each of the reporting
dates under review are of good credit quality.
Notes to the Consolidated Financial Statements
For the year ended 30 June 2023
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
90
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
90
Annual Report 2024
91
39.
Financial risk management (continued)
Credit risk analysis (continued)
Impairment losses
The ageing of the Group’s trade and other receivables at the reporting date was:
Note
Gross
2024
$
Allowance for
Impairment
2024
$
Gross
2023
$
Allowance for
Impairment
2023
$
Other receivables – not past due
16
2,660,385
-
2,325,698
-
Trade receivables:
Current
34,011,795
-
45,750,383
-
Less than 90 days
7,485,242
-
4,387,410
-
Greater than 91 days
8,072,531
(206,658)
4,615,345
(130,052)
16
49,569,568
(206,658)
54,753,138
(130,052)
52,229,953
(206,658)
57,078,836
(130,052)
The provision of $206,658 relates to expected credit losses of a small number of debtors based on the past default experience
of the debtors combined with analysis of the debtor’s current financial position. The Group continues to strongly pursue all debts
provided for. The majority of un-impaired debtors exceeding one year relate to retention claims that are not due. The debtor aging
is relative to the date of the original invoice claim against which the retention is held.
The Group has established an allowance for impairment that represents their expected credit losses in respect of trade
receivables and contract assets.
The Group recognises a provision for impairment related to expected credit losses (“ECLs”) for trade receivables. ECLs are based
on the difference between the contractual cash flows due in accordance with the contract and all the cash flows that the Group
expects to receive, discounted at an approximation of the original effective interest rate.
For trade receivables, the Group applies a simplified approach in calculating ECLs. Therefore, the Group does not track changes
in credit risk, but instead recognises a loss allowance based on lifetime ECLs at each reporting date. The Group uses a provision
matrix to calculate the ECLs. The provision matrix is established based on the Group’s historically observed default rates. The
Group calibrates the matrix to adjust historical credit loss experience with forward looking factors specific to debtors and the
economic environment where appropriate. At every reporting date, historical default rates are updated and changes in the
forward-looking estimates are analysed.
The assessment of the correlation between historical observed default rates, forecast of economic conditions and ECLs is a
significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecasts in economic conditions. The
Group’s historical credit loss experience and forecast of economic conditions may also not be representative of customer’s actual
default in the future.
The Group considers a financial asset’s potential for default when contractual payments are more than 120 days past due,
factoring in other qualitative indicators where appropriate. Exception shall apply to financial assets that relate to entities under
common controls or covered by letter of credit or credit insurance. However, in certain cases, the Group may also consider a
financial asset to be in default when internal or external information indicates that the Group is unlikely to receive the outstanding
contractual amounts in full before taking into account any credit enhancements held by the Group. A financial asset is written off
when there is no reasonable expectation of recovering the contractual cash flows.
39.
Financial risk management (continued)
Liquidity risk analysis
Liquidity risk is the risk that the Group might be unable to meet its obligations. The Group manages its liquidity needs by
monitoring scheduled debt servicing payments for long-term financial liabilities as well as forecast cash inflows and outflows
due in day-to-day business. The data used for analysing these cash flows is consistent with that used in the contractual maturity
analysis below. Liquidity needs are monitored in various time bands, on a week-to-week basis, as well as on the basis of a rolling
30-day projection. Long-term liquidity needs for a 180 to 360 day lookout period are identified monthly. Net cash requirements
are compared to available borrowing facilities in order to determine headroom or any shortfalls. This analysis shows that available
borrowing facilities are expected to be sufficient over the lookout period.
The Group’s objective is to maintain cash and marketable securities to meet its liquidity requirements for 30-day periods at a
minimum. This objective was met for the reporting periods. Funding for long-term liquidity needs is additionally secured by an
adequate amount of committed credit facilities and the ability to sell long-term financial assets.
The Group considers expected cash flows from financial assets in assessing and managing liquidity risk, in particular its cash
resources and trade receivables. The Group’s existing cash resources and trade receivables (see Note 16) significantly exceed the
current cash outflow requirements. Cash flows from trade and other receivables are all contractually due within three months.
As at 30 June 2024, the Group’s non-derivative financial liabilities have contractual maturities as summarised below:
Current
Non-current
Within 6 months
$
6-12 months
$
1-5 years
$
5+ years
$
30 June 2024
Secured borrowings
750,000
750,000
2,780,000
-
Leases
5,975,746
5,309,731
13,687,448
-
Trade and other payables
42,463,886
-
-
-
Contingent consideration payable
650,000
-
-
-
Total
49,839,632
6,059,731
16,467,448
-
This compares to the maturity of the Group’s non-derivative financial liabilities in the previous reporting periods as follows:
Current
Non-current
Within 6 months
$
6-12 months
$
1-5 years
$
5+ years
$
30 June 2023
Secured borrowings
790,000
790,000
4,280,000
-
Leases
4,635,762
4,371,928
12,861,963
-
Trade and other payables
50,993,122
-
-
-
Total
56,418,884
5,161,928
17,141,963
-
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
Notes to the Consolidated Financial Statements
For the year ended 30 June 2024
92
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
92
Annual Report 2024
93
40.
Capital management policies and procedures
The Group’s capital management objectives are:
•
to ensure the Group’s ability to continue as a going concern
•
to provide an adequate return to shareholders by pricing products and services commensurately with the level of risk.
The Group monitors capital on the basis of the carrying amount of equity plus its bank loans and other financial liabilities, less
cash and cash equivalents as presented on the face of the statement of financial position.
The Group’s goal in capital management is to ensure compliance with the Group’s covenants relating to its commercial financing
arrangements. These covenants measure the Group’s Debt Service Cover, Gross Leverage and Liquidity Ratios, as well as requiring
maintenance of a minimum Tangible Net Worth. The Group has met all its covenant obligations, since the commercial loan was
taken out.
Management assesses the Group’s capital requirements in order to maintain an efficient overall financing structure while avoiding
excessive leverage. The amounts managed as capital by the Group for the reporting periods under review are summarised as
follows:
2024
$
2023
$
Total equity
121,236,426
104,976,133
Financial liabilities
22,780,798
21,836,048
Cash and cash equivalents
(100,966,681)
(46,737,238)
Capital
43,050,543
80,074,943
Total equity
121,236,426
104,976,133
Borrowings
22,780,798
21,836,048
Overall financing
144,017,224
126,812,181
Capital-to-overall financing ratio
0.30
0.63
The ratio decrease during 2024 is primarily a result of additional cash at bank held at year end compared to the previous reporting
period.
41.
Parent entity information
Information relating to GenusPlus Group Ltd (the Parent Entity):
2024
$
2023
$
Statement of financial position
Current assets
5,114,657
8,572,332
Total assets
41,742,737
38,407,717
Current liabilities
(1,831,275)
(9,361,840)
Total liabilities
12,481,415
(14,765,133)
Net assets
54,224,152
53,172,849
Issued capital
55,265,025
55,265,025
Retained earnings
(1,110,857)
(2,092,176)
Total equity
54,154,168
53,172,849
Statement of profit or loss and other comprehensive income
(Loss) for the year
(2,325,537)
(2,390,224)
Total comprehensive income
(2,325,537)
(2,390,224)
The Parent Entity had no capital commitments at year end (2023:$Nil).
42.
Events after the reporting date
On 26 August 2024, the Directors declared a final fully franked dividend of 2.5 cents per share with a record date of 2 October
2024 and a payment date of 1 November 2024. The total dividend payable is an aggregate of $4,443,124.
Other than those mentioned above, no matters or circumstances have arisen since the end of the financial year which significantly
affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group
in future financial years.
43.
Group details
The registered office and principal place of business of the Group is:
GenusPlus Group Ltd
Level 1, 63 – 69 Abernethy Road
Belmont WA 6104
94
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
94
Annual Report 2024
95
Consolidated entity disclosure statement
Consolidated entity disclosure statement (continued)
Basis of Preparation
This Consolidated Entity Disclosure Statement (CEDS) has been prepared in accordance with the Corporations Act 2001 and
includes required information for each entity that was part of the consolidated entity as at the end of the financial year.
Consolidated entity
This CEDS includes only those entities consolidated as at the end of the financial year in accordance with AASB 10 Consolidated
Financial Statements (AASB 10).
Determination of Tax Residency
Section 295 (3A) of the Corporations Act 2001 defines tax residency as having the meaning in the Income Tax Assessment Act
1997. The determination of tax residency involves judgment as there are currently several different interpretations that could be
adopted, and which could give rise to a different conclusion on residency
In determining tax residency, the consolidated entity has applied the following interpretations
Australian tax residency
The consolidated entity has applied current legislation and judicial precedent, including having regard to the Tax Commissioner's
public guidance.
Foreign tax residency
Where necessary, the consolidated entity has used independent tax advisers in foreign jurisdictions to assist in its determination
of tax residency to ensure applicable foreign tax legislation has been complied with.
Partnerships and Trusts
Australian tax law does not contain specific residency tests for partnerships and trusts. Generally, these entities are taxed on a
flow-through basis so there is no need for a general residence test. There are some provisions which treat trusts as residents for
certain purposes but this does not mean the trust itself is an entity that is subject to tax.
Additional disclosures on the tax status of partnerships and trusts have been provided where relevant.
Name of entity
Type of
entity
Trustee,
partner, or
participant
in joint
venture
% of
share
capital
held
Country of
incorporation
Australian
resident
of foreign
resident (for tax
purpose)
Foreign tax
jurisdiction(s)
of foreign
residents
Genus Infrastructure Pty Ltd
Limited
Company
n/a
100%
Australia
Australia
n/a
Genus Services Pty Ltd
Limited
Company
n/a
100%
Australia
Australia
n/a
Proton Power Pty Ltd
Limited
Company
n/a
100%
Australia
Australia
n/a
Complete Cabling and
Construction Pty Ltd
Limited
Company
n/a
100%
Australia
Australia
n/a
Proton Technical Services
Pty Ltd
Limited
Company
n/a
100%
Australia
Australia
n/a
Genus Infrastructure (Qld)
Pty Ltd
Limited
Company
n/a
100%
Australia
Australia
n/a
Genus Fleet Management
Pty Ltd
Limited
Company
n/a
100%
Australia
Australia
n/a
KEC Power Pty Ltd
Limited
Company
n/a
100%
Australia
Australia
n/a
Genus Infrastructure (NSW)
Pty Ltd
Limited
Company
n/a
100%
Australia
Australia
n/a
ECM Consultancy Pty Ltd
Limited
Company
n/a
100%
Australia
Australia
n/a
Genus Renewables Pty Ltd
Limited
Company
n/a
100%
Australia
Australia
n/a
Connect Engineering Pty Ltd Limited
Company
n/a
100%
Australia
Australia
n/a
Connect Infrastructure Pty
Ltd
Limited
Company
n/a
100%
Australia
Australia
n/a
Connect Infrastructure
Construction Pty Ltd
Limited
Company
n/a
100%
Australia
Australia
n/a
Genus PFA Pty Ltd
Limited
Company
n/a
100%
Australia
Australia
n/a
Blue Tongue Energy Pty Ltd
Limited
Company
n/a
100%
Australia
Australia
n/a
Genus Infrastructure (VIC)
Pty Ltd
Limited
Company
n/a
100%
Australia
Australia
n/a
Samsung Genus Joint
Venture
Limited
Company
Participant in
joint venture
30%
Australia
Australia
n/a
Acciona Genus Joint
Venture
Limited
Company
Participant in
joint venture
25%
Australia
Australia
n/a
96
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
96
Annual Report 2024
97
ASX Additional Information
as at 21 August 2024
Directors’ Declaration
In accordance with a resolution of the directors of GenusPlus Group Limited, I state that:
In the opinion of the directors:
(a) the financial statements and notes of GenusPlus Group Limited for the financial year ended 30 June 2024 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 2024 and of its performance for
the year ended on that date; and
(ii) complying with Accounting Standards and the Corporations Regulations 2001;
(b) the financial statements and notes also comply with International Financial Reporting Standards as disclosed in Note 2;
(c) there are reasonable grounds to believe that the Company will be able to pay its debts as and when they become due and
payable; and
(d) the consolidated entity disclosure statement on page 91 is true and correct as at 30 June 2024.
This declaration has been made after receiving the declarations required to be made to the directors by the chief executive officer
and chief financial officer in accordance with section 295A of the Corporations Act 2001 for the financial year ended 30 June
2024.
On behalf of the board
David Riches
Director
Dated the 26th day of August 2024
Distribution of equity security holders
Ordinary Shares
Category
1 – 1,000
107,191
1,001 – 5,000
787,467
5,001 – 10,000
1,197,254
10,001 – 100,000
9,977,246
100,001 and over
165,655,790
Total
177,724,948
Twenty largest shareholders
Number of
ordinary shares
held
Percentage of
capital held
MR DAVID WILLIAM RICHES
78,922,947
44.41%
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
18,136,447
10.20%
CITICORP NOMINEES PTY LIMITED
12,952,605
7.29%
MATTHEW STEVEN RICHES & DAVID WILLIAM RICHES
12,800,000
7.20%
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
5,173,353
2.91%
MR NEIL DOUGLAS RAE & MRS MELANIE MICHELLE RAE & MR SIMEON DAVID RAE
2,392,344
1.35%
CC RANKINE PTY LTD
2,316,765
1.30%
BJ FRASER PTY LTD
2,316,765
1.30%
UBS NOMINEES PTY LTD
2,166,602
1.22%
WILLIAM TAYLOR NOMINEES PTY LTD
2,148,684
1.21%
ARROCHAR PTY LTD
2,000,000
1.13%
CARJAY INVESTMENTS PTY LTD
1,966,221
1.11%
DAVE RICHES PTY LTD
1,861,000
1.05%
PATRICK LLOYD PTY LTD
1,600,000
0.90%
GEORGE LLOYD PTY LTD
1,600,000
0.90%
MR KEMPER SHAW
1,578,327
0.89%
MR KENNETH JOSEPH HALL
1,550,000
0.87%
MR WILLIAM JAMES BEAMENT
1,196,172
0.67%
SANDINI PTY LTD
1,000,000
0.56%
PRECISION OPPORTUNITIES FUND LTD
1,000,000
0.56%
154,678,232
87.03%
Substantial shareholders
Number
The number of shares held by substantial shareholders and their associates are set out below:
David William Riches; Matthew Steven Riches & David William Riches atf Dave Riches & Matt Riches Unit A/C;
Dave Riches Pty Ltd atf Dave Riches Family A/C
93,583,947
98
GENUSPLUS GROUP LTD
GenusPlus Group Ltd
98
Annual Report 2024
99
Independent Auditor’s Report
For the year ended 30 June 2024
Independent Auditor’s Report
For the year ended 30 June 2024
Grant Thornton Audit Pty Ltd
Level 43 Central Park
152-158 St Georges Terrace
Perth WA 6000
PO Box 7757
Cloisters Square
Perth WA 6850
T +61 8 9480 2000
www.grantthornton.com.au
ACN-130 913 594
Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389.
‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or
refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL).
GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member
firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one
another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127
556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards
Legislation.
Independent Auditor’s Report
To the Members of GenusPlus Group Ltd
Report on the audit of the financial report
Key audit matters
Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of
the financial report of the current period. These matters were addressed in the context of our audit of the financial
report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these
matters.
Opinion
We have audited the financial report of GenusPlus Group Ltd (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2024, the
consolidated statement of profit or loss and other comprehensive income, consolidated statement of
changes in equity and consolidated statement of cash flows for the year then ended, and notes to the
consolidated financial statements, including material accounting policy information, the consolidated entity
disclosure statement and the directors’ declaration.
In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act
2001, including:
a giving a true and fair view of the Group’s financial position as at 30 June 2024 and of its performance
for the year ended on that date; and
b complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those
standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section
of our report. We are independent of the Group in accordance with the auditor independence requirements
of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical
Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence
Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled
our other ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our
opinion.
Key audit matter
How our audit addressed the key audit matter
Revenue Recognition – Note 6
The Group’s revenues from fixed price construction
contracts ($236 million) are recognised over time, with
the amount determined by the percentage of costs
completed.
Revenue is recognised in accordance with AASB 15
Revenue from Contracts with Customer based on:
•
The determination of the completion and
measurement of performance obligations under
each contract;
•
The estimation for construction contract inputs
(costs) including costs remaining and the expected
margins earned on the contracts; and
•
The determination of contingency and variation
estimates, including the probability of approval for
changes in price and scope
This area is a key audit matter due to the high level of
estimation and management judgement required to
determine the revenue recognised from each contract
that includes contract variations and claims.
Our procedures included, amongst others:
•
Understanding and documenting the design of
internal controls over project costings and estimating
costs to complete construction projects;
•
Testing the operating effectiveness of project cost
controls designed for determining the revenue
recognised over time utilising the percentage of
completion method;
•
Reviewing significant contracts, including agreeing
key terms and conditions to contracts along with any
variations or contingencies requiring to be
recognised;
•
Testing a sample of costs to verify that the
allocation to projects is appropriate;
•
Reviewing management assumptions in determining
the stage of completion, total contract price, costs
incurred and estimated costs to complete to
supporting documentation;
•
Recalculating the stage of completion based on
costs to date proportionate to forecasted costs,
including testing a sample of progress billings and
contract costs to assess the allocation to revenue,
contract assets and liabilities is appropriate and
consistent with the requirements of AASB 15;
•
Assessing estimated costs to complete through
discussion with project managers and challenging
the key assumptions connected to the stage of
completion method, including potential disputes and
claims relating to variations to the original contract
terms and agreeing to underlying support;
•
Assessing variations to historical recoveries and
supporting documentation for claims made for price
and scope changes; and
•
Assessing the adequacy of the Group’s presentation
and disclosures in the financial statements.
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Independent Auditor’s Report
For the year ended 30 June 2024
Goodwill – Note 24
The Group recognised goodwill totalling $22.7 million
at 30 June 2024 across 3 cash-generating units
(CGUs).
Goodwill is required to be assessed for impairment
annually by management as prescribed in AASB 136
Impairment of Assets.
Management performs annual impairment testing per
AASB 136 to determine whether the CGUs’
recoverable amount is greater than its carrying value,
utilising either the greater of fair value less costs to sell
or its value in use.
The Group uses a discounted cash flow model for the
value-in-use approach to determine the recoverable
amount. In doing so, management considers the
following key inputs;
•
forecasted budgeted financial performance;
•
estimated growth rates;
•
working capital adjustments;
•
estimated capital expenditure;
•
discount rate; and
•
terminal value.
This area is a key audit matter due to the significant
balance carried by the Group that management has
assessed using estimates and judgement
Our procedures included, amongst others:
•
Understanding management’s process and
controls for determining the - CGUs, the calculation
of the recoverable amount for each CGU, and the
goodwill impairment assessment.
•
Evaluating the value-in-use models against the
requirements of AASB 136;
•
Challenging the appropriateness of management’s
revenue and cost forecasts by comparing the
forecasted cash flows to actual growth rates
achieved historically;
•
Reviewing management’s value-in-use calculations
by:
−
Testing the mathematical accuracy of the
calculations;
−
Evaluating the forecast cash inflows and
outflows to be derived by the CGUs assets for
reasonableness;
−
Comparing estimates and judgements for growth
rates to available market and industry data;
−
Assessing the discount rates applied to forecast
future cash flows for reasonableness with
assistance from internal valuation specialists;
−
Performing sensitivity analysis on the significant
inputs and assumptions made by management
in preparing its calculation; and
•
Assessing the adequacy of financial report
disclosures.
Information other than the financial report and auditor’s report thereon
The Directors are responsible for the other information. The other information comprises the information included
in the Group’s annual report for the year ended 30 June 2024, but does not include the financial report and our
auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any form of
assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information and, in doing
so, consider whether the other information is materially inconsistent with the financial report or our knowledge
obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this other
information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the Directors for the financial report
The directors of the Company are responsible for the preparation of:
a) the financial report that gives a true and fair view in accordance with Australian Accounting Standards
and the Corporations Act 2001 (other than the consolidated entity disclosure statement); and
b) the consolidated entity disclosure statement that is true and correct in accordance with the
Corporations Act 2001, and for such internal control as the directors determine is necessary to enable
the preparation of:
i) the financial report that gives a true and fair view and is free from material misstatement, whether due
to fraud or error; and
ii) the consolidated entity disclosure statement that is true and correct and is free of misstatement,
whether due to fraud or error.
In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a
going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of
accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic
alternative but to do so.
Auditor’s responsibilities for the audit of the financial report
Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from
material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion.
Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance
with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in the aggregate, they could
reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.
A further description of our responsibilities for the audit of the financial report is located at the Auditing and
Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1_2020.pdf.This
description forms part of our auditor’s report.
Report on the remuneration report
Responsibilities
The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report
in accordance with section 300A of the Corporations Act 2001. Our responsibility is to express an opinion on
the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.
Grant Thornton Audit Pty Ltd
Chartered Accountants
B P Steedman
Partner – Audit & Assurance
Perth, 26 August 2024
Opinion on the remuneration report
We have audited the Remuneration Report included in pages 29 to 36 of the Directors’ report for the
year ended 30 June 2024.
In our opinion, the Remuneration Report of GenusPlus Group Ltd, for the year ended 30 June 2024
complies with section 300A of the Corporations Act 2001.
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Corporate Directory
Directors
Simon High
Chairman
Independent Non-Executive Director
David Riches
CEO and Managing Director
José Martins
Independent Non-Executive Director
Paul Gavazzi
Independent Non-Executive Director
Company Secretary
Damian Wright
Strati Gregoriadis
Auditors
Grant Thornton Audit Pty Ltd
Central Park
Level 43, 152-158 St Georges Terrace
Perth WA 6000
Share Registry
Link Market Services Ltd
Level 12, QV1 Building
250 St Georges Terrace
Perth WA 6000
T: +61 8 9211 6670
Registered Office
GenusPlus Group Ltd
Level 1, 63-69 Abernethy Road
Belmont WA 6104
ASX Code: GNP
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