Annual Report
FINA NCIA L Y E A R 2021
M A DER GR OUP L IMI T ED
A BN 51 159 3 40 397
Our Purpose
We are dedicated to exceeding the expectations of our clients whilst
providing superior maintenance, a great workplace for our people and
enhanced returns to our investors.
Our Vision
We will continue to grow and build our reputation as a world class provider of
heavy equipment maintenance to mining and civil companies. With a business
model built on passion, knowledge, and commitment to the industry, every
decision is made with clients, employees and shareholders in mind.
Our Values
Backed by a 1,600+ strong team of dynamic and skilled individuals, our rapid
growth is a testament to our core values. Central to all of our operations and
decision-making, our core values drive us to achieve project objectives with
outstanding customer service.
t
S A F E T Y
i
O N E T E A M
E
I N N O V A T E
We make it our priority to ensure we
do everything in our power to keep
ourselves and those around us safe.
We are stronger together. Comradery
echoes loudly throughout our
business. We learn together, we
succeed together, we grow together.
We think differently, we think
bigger, we encourage new ideas
and continuously adapt to industry
evolution and change.
i
m
p
P E R F O R M
F A M I LY/ F U N
I N T E G R I T Y
Driven to succeed, we are mechanically
minded and solution focused. We take
pride in our unique blend of passion,
experience and industry know-how.
Our culture is the foundation of our
business. We continue to cultivate a
nurturing, transparent and mutually
respectful workplace.
We hold ourselves to the highest
standards, constantly keeping
ourselves and each other accountable.
Corporate Directory
Directors
James (Jim) Walker
Non-Executive Chairman
Luke Mader
Executive Director
Justin Nuich
Executive Director and Chief Executive Officer
Patrick Conway
Executive Director
Craig Burton
Non-Executive Director
Company Secretary
Shannon Coates
Registered Office And Principal Place Of Business
Hkew Alpha Building
2 George Wiencke Drive
Perth Airport WA 6105
Share Registry
Computershare Investor Services Pty Ltd
Level 11, 172 St Georges Terrace
Perth WA 6000
Bankers
National Australia Bank Limited
Level 13, 100 St Georges Terrace
Perth WA 6000
Auditors
BDO Audit (WA) Pty Ltd
Level 1, 38 Station Street
Subiaco WA 6008
Stock Exchange Listing
Australian Securities Exchange (ASX)
ASX Code: MAD
Company Websites
www.madergroup.com.au
www.madergroup.com
Contents
About Mader Group
Global Reach
Chairman’s Report
CEO's Review of Operations
Community Engagement
Highlights
Directors’ Report
Remuneration Report - Audited
Auditor’s Independence Declaration
Consolidated Statement of Profit and Loss
and Other Comprehensive Income
Consolidated Statement of Financial Position
Consolidated Statement of Changes in Equity
Consolidated Statement of Cash Flows
Notes to the Consolidated Financial Statements
Directors’ Declaration
Independent Audit Report
Shareholder Information
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MADER GROUP 2021 ANNUAL REPORT
1
Make light work of
heavy equipment maintenance
Mader Group is a leading, global equipment
maintenance provider, powered by
mechanically minded specialists.
22
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au About Mader Group
Mader Group Limited (Mader Group) is a leading, global equipment
maintenance provider, powered by mechanically minded specialists.
The diversified group is dedicated to helping customers achieve
exceptional machine availability and productivity targets through optimal
fleet and plant performance.
Established in 2005 and listed on the ASX in 2019,
Mader Group is a solution-driven business that
provides strategically tailored maintenance for heavy
mobile equipment and fixed infrastructure in various
industries across the globe.
Over its 16 years of operation, Mader Group has
gained experience throughout Australia, Asia, Africa
and the Americas, growing and adapting to provide a
wide range of maintenance services, each delivered
in a flexible ‘tap on, tap off’ manner to 370+ sites and
240+ customers worldwide.
The Company’s unique business model provides
both stability and fluidity to Mader Group and its
customers alike, in all markets. With a workforce
of 1,600+ passionate employees, the business has
the capacity to mobilise technicians rapidly, or as
required, deploying a highly specialised workforce
for in-field support (trade qualified specialists with
service vehicles and diagnostic tooling), major
overhauls and repairs, preventative equipment
maintenance, training of maintenance teams, and a
range of other ancillary services.
Expanding its service fleet to more than 700 vehicles
in FY21, the Group continues to grow its capacity
to comprehensively service a global network of
operations and a widening customer base that
includes a diverse portfolio of blue-chip owner miners
and tier one contractors, including many of the major
names in mining.
Headquartered in Perth, Western Australia, Mader
Group houses regional offices across Australia, the
United States, Africa and Asia, ensuring easy access
to local support for its valued customers. Mader
Group also has a workshop in Perth which provides
offsite repairs, machine refurbishments, specialised tool
hire, component rebuilds and a component exchange
program for mining and civil operations throughout
Australia.
1,600+
STAFF
Operating Worldwide
MADER GROUP 2021 ANNUAL REPORT
3
Global Reach
Mader Group provides premium support to mining and
civil customers throughout Australia, Asia, Africa and
the Americas.
Operations in FY21
Q U E E N S L A N D
N O R T H E R N T E R R I T O R Y
Brisbane
Bowen Basin
Surat Basin
Far North Queensland
N E W S O U T H WA L E S
Hunter Valley
Gunnedah Basin
Southern NSW
Central and Far West
Riverina
Colorado
Pennsylvania
West Virginia
South Carolina
Montana
California
Tanami Region
Gulf of Carpentaria
V I C T O R I A
Bendigo
TA S M A N I A
Zeehan
Asia
Mongolia
Laos
Papua New Guinea
Africa
Mauritania
Zambia
Australia
W E S T E R N A U S T R A L I A
Pilbara
Kimberley
Goldfields
Mid West
South West
Perth and surrounds
S O U T H A U S T R A L I A
Roxby Downs
Port Augusta
Coober Pedy
USA
Arizona
Tennessee
Nevada
Illinois
Alaska
Wyoming
Florida
Texas
4
Global
Australia
5
Chairman’s Report
Dear Shareholders, welcome to Mader Group’s Annual Report
for the financial year ended 30 June 2021 (FY21).
As our operations make a robust return to pre-COVID
growth levels, we remember the journey it has taken
to get here. From the red dirt of Western Australia’s
Pilbara outback to the mountainous terrain of
Colorado, the outlook has been the same – charted
with the remnants of a worldwide pandemic.
Closing off the financial year at a historical high, our
hard work has paid off. We are proud to announce
another record performance and important milestone
as Mader Group exceeded $300 million in revenue
for the first time. Irrespective of the challenges of
the year passed, we have continued to grow our
operations with an ethos of comradery and top tier
workmanship echoed throughout the business.
A laser focus on our people, culture and reputation
has earnt us a loyal and dedicated team who have
stuck with us through the thick of unprecedented
times. Against a backdrop of uncertainty, our
workforce of more than 1,600 showed great
resillience and stood unified, working hard and fast
to ensure customers are supported, and similarly,
looking out for one another in the field.
The tap on, tap off nature of our services has proved
advantageous over the financial year, as we’ve learnt
to navigate border changes quickly, efficiently and
safely. We are particularly proud of our inhouse
team of coordinators who have demonstrated their
strengths in reactive mobilisation with a quickly
changing landscape to meet customers’ demands.
We’ve built strong and enduring relationships with
a large network, that allows us to stand where we
are today - equipped and ready for success. We
continue to grow strongly and have further solidified
our leading position as the largest independent
maintenance provider for heavy mobile equipment in
Australia, with ambition to become an international
household name.
Jim Walker
Non-Executive Chairman
6
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au continued passion and determination. As the
Chairman of Mader Group and on behalf of my
fellow Directors, I welcome you to read our
FY21 Annual Report.
Yours faithfully
Jim Walker
Non-Executive Chairman
We’ve come a long way since our initial public
offering on the Australian Securities Exchange
in October 2019, continuing to deliver on results
irrespective of evolving markets. The relatively
low capital intensity of the business coupled with
sustained efficiency and a diversified service mix
has enabled Mader Group to pay dividends to its
shareholders whilst continuing to achieve growth.
Mader Group distributed $6 million to shareholders in
fully franked dividends over the financial year, to the
value of 3.0 cents per share.
Ending the year on a high, we commemorate a
number of key milestones achieved throughout the
business, including our boundless expansion across
North America which will see us enter Canada in the
coming months. We consider North America well
suited to the Mader business model and look forward
to advancing our operations in the region.
In Australia, we added 65 tradespeople to our
Trade Upgrade Program over the year, bringing
the program’s total to 92 since inception. With
candidates eager to broaden their skillsets across
Australia, we expanded the program’s reach to
Queensland with significant levels of interest
displayed from many keen to gain a foothold into the
mining industry.
We also welcomed a number of fresh faces to our
leadership team. This includes Mr Justin Nuich who
was appointed Chief Executive Officer (CEO) in
January 2021 and Mr Paul Hegarty, appointed Chief
Financial Officer (CFO) in September 2020. Both
bring a wealth of experience to Mader Group with
their significant value clearly reflected in our solid
end of year results.
In closing, I would like to extend our thanks and
appreciation to the leadership team, employees,
shareholders, clients and suppliers for their
MADER GROUP 2021 ANNUAL REPORT
7
CEO's Review of Operations
We believe that exceeding the expectations of our
clients whilst providing superior maintenance; a great
and safe workplace for our people; and enhanced
returns to our investors - is the ultimate measure of
our success.
As I review our operations for the financial year
ending 30 June 2021, it’s clear to see that this
mindset is central to all of our activities and decision-
making. It’s what drives us to take our operations to
the next level and is reflected in our strong financial
performance as we close the year on a high.
The success of any business starts with its people
and culture. Each page of this Annual Report reflects
a business underpinned by an exceptional team
culture and workforce alive with positivity and drive.
Since commencing as Chief Executive Officer (CEO)
and Executive Director in January 2021 (former
Non-Executive Director and Board Member) I have
been welcomed into the new role with open arms,
diving straight into the detail of this fast paced
and incredibly unique business. I’d like to thank the
team at Mader Group and our valued customers and
shareholders for their overwhelming support.
Safety is Paramount
Success is about more than generating earnings, it’s
about keeping our people and our customers safe.
The health, safety and wellbeing of our people is at
the forefront of everything we do. Mader Group’s
Total Recordable Injury Frequency Rate (TRIFR)
remained steady throughout the year at 6 injuries
per million hours worked.
Our pursuit of our zero harm goal is relentless,
including the ongoing development of our internal
safety systems. We have rolled out several initiatives
that empower our people to make the right decisions
and bring us closer to achieving our goal of zero
harm.
Mr Justin Nuich
Executive Director and Chief Executive Officer
8
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au During the financial year, we:
Operational Performance
• Expanded our Mader Day Program, raising safety
awareness and encouraging positive safety
behaviours for internal staff across Australia.
•
•
Invested in the safety of our people through the
roll out of in-vehicle monitoring systems for Mader
Group's service fleets across the globe.
Increased meaningful leadership interactions in
the field and operational efficiency through our
Field Leadership Program.
• Enhanced employee engagement on our safety
focused mobile app.
• Developed our custom-built employee mobile
app to offer multi-level communication including
regional broadcasts and alerts. Our app connects
our remote and mobile workforce and provides
employees access to integrated safety systems.
The Financial Highlights
Our full year financial results reflect strong revenue
and profit growth across the business. In summary:
• Record revenue of $304 million delivered, up 11.2%
from $274 million in FY20.
• EBITDA of $36 million, up 8.2% from $33 million in
FY20.
• NPAT of $19 million, up 10.5% from $18 million in
FY20.
• Net debt of $24 million, up 29.7% from $18 million
at the close of FY20.
• Shareholders received $6 million in fully franked
dividends, to the value of 3.0 cents per share. This
included a final payment for FY20 activities, paid
in September 2020.
• A final dividend for FY21 activities declared, to be
paid on the 28 September 2021, to the value of 1.5
cents per share, fully franked.
Over the financial year, Mader Group grew its staff
base to more than 1,600, providing 3.4 million hours
of maintenance services to a diverse network of
over 240 customers across more than 370 sites.
High demand for our services and enhanced internal
systems contributed to our performance, as we
delivered flexible, fit for purpose and cost-effective
maintenance solutions to our customers across
seven countries.
It gives me great pleasure to report record revenue
of more than $304 million generated across the
Group earnings of $19 million. Backed by a strong
balance sheet, increased cashflow, low capital
intensity, significant global and local growth
opportunities, Mader Group is well positioned to
continue this growth trajectory into FY22.
Markets and Growth
Mader Group has grown and adapted to deliver its
services across a wide range of markets, with its
proven business model successfully rolled out more
than 20 times across new service areas and regions.
A range of complementary specialist services are
being delivered alongside our cornerstone offering
of mechanical maintenance for heavy mobile
equipment.
This financial year, we placed a dedicated focus
on expanding our ancillary and infrastructure
maintenance divisions, seeing strong growth across
both service lines. We also introduced a number of
new services including specialist drill and excavator
services, power generation support, marine
vessel support and professional support roles for
maintenance planning and scheduling.
We opened the financial year in two countries due
to the impacts of COVID-19, however the Group has
made a steady return to its international operations
MADER GROUP 2021 ANNUAL REPORT
9
C E O ' S R E V I E W O F O P E R A T I O N S
and closed the year in seven countries including
Australia, the United States of America, Mongolia,
Laos, Papua New Guinea, Zambia and Mauritania.
Preparations for operational delivery into Canada are
now also complete with service vehicles primed to
support inaugural operations.
Australia
Activity levels in Australia were strong with $273
million generated for the year ending 30 June
2021, up 10.7% as compared to $247 million in
FY20. Growth was underpinned by the continued
geographical expansion of the Company’s service
areas and the continued scaling of a range of
complementary and value add services to Mader
Group’s core offering of mechanical maintenance.
Across the market, Mader Group provided specialised
contract labour for the maintenance of heavy mobile
and fixed plant equipment in mining and civil industries.
The Company’s skilled workforce provided a range of
services including rostered labour, highly responsive
field support (trade qualified specialists with service
vehicles and diagnostic tooling), shutdown teams for
major overhauls and a range of ancillary services. Mader
Group also has a workshop in Perth which provides
offsite repairs, machine refurbishments, specialised tool
hire, component rebuilds and a component exchange
program for mining and civil operations throughout
Australia.
Mader Group’s Australian operations introduced several
new services including climate control maintenance
for heavy mobile equipment; high-level white collar
support roles for maintenance planning and scheduling;
EMV (Equipped Manual Vehicle) installations to upgrade
Autonomous Hauling Systems; power generation
station support; and equipment maintenance for marine
vessels and port infrastructure. The Company increased
revenue generated from its existing ancillary services
by 20.6% and infrastructure maintenance by 24.3%.
Mader Group’s Trade Upgrade Program (an integrated
training platform which upskills Light Vehicle and
Road Transport Mechanics into qualified Heavy Duty
Diesel Mechanics) inducted 65 new candidates into its
program during the financial year, bringing the program’s
intake to 92 tradespeople since inception in late 2019.
In response to a tightening labour market and increased
customer demand, Mader Group made the decision to
expand the program nationally, delivering training both in
Western Australia and Queensland.
During the period, Mader Group secured a 25% equity
interest in Western Plant Hire (WPH) for $3.5 million.
WPH is a mobile plant hire provider with a broad client
base in Western Australia. Through this strategic, long
term investment, Mader Group hopes to leverage the
market positions of both companies to deliver enhanced
service offerings and improved operational efficiency.
Headquartered in Perth (WA), the Australian Group have
regional offices in Kalgoorlie (WA), Brisbane (QLD) and
Adelaide (SA). During the financial year, the East Coast
management team closed its regional offices in Mackay
(QLD) and Hunter Valley (NSW) relocating each team to
a central hub in Brisbane (QLD). The new facility location
provided added flexibility and mobility for the Group’s
Eastern State operations and a unified leadership
structure whilst remaining geographically close to
customers and workforce in both regions.
10
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au North America
Rest of World (Africa, Asia and Latin America)
Revenue generated in the United States increased
to $24 million for the year ending 30 June 2021, up
75.0% as compared to $14 million in FY20 (94.6%
increase excluding AUD/USD foreign exchange
movements). Mader Group strengthened its position
by broadening its customer base and regional
service areas to deliver heavy mobile equipment
maintenance. During the financial year, Mader Group
was active in 14 states including a number of the
country’s top mineral producing centres.
Supporting several major customers in the resources
industry, the Group’s USA operations were active in
strong commodity markets primarily gold, copper and
zinc. Services provided include rostered labour, highly
responsive field support (trade qualified technicians
with service vehicles), shutdown teams for major
overhauls and training of maintenance teams.
Headquartered in Fort Collins, Colorado, the Group’s
USA operations have regional offices in Canonsburg,
Pennsylvania and Reno, Nevada. During the financial
year, Mader Group committed additional human
resources to local office operations to assist with
recruitment and customer acquisition, attributing its
continued expansion to the strong recruitment of
local, high quality labour which represents 90%+ of
the total US workforce.
Mader Group also executed a fleet expansion plan
to facilitate projected growth. Its service fleet has
increased to 80+ specialised mine spec crane trucks.
The fleet will also support the Company’s entry into
Canada as service delivery to the region becomes
operational.
During the onset of COVID-19, Mader Group made
the decision to withdraw its expatriate workforce
from Africa and Asia in April 2020. Subsequently, the
Group commenced FY21 with no operational activity
or revenue in this reporting segment.
Plans to re-enter international markets were
implemented in Q1 FY21 with the division selectively
re-engaging customers in former areas of operation.
Whilst demand for Mader’s services internationally
remained high, new opportunities were assessed
on a case-by-case basis to protect the health and
wellbeing of our employees and customers.
During the financial year, the Company provided
limited services in Africa and Asia with small
teams mobilised to provide breakdown support,
preventative maintenance and training of
maintenance teams. By the close of FY21,
Mader Group ramped up its international services
to deliver recurring scopes of work in five countries,
comprising Papua New Guinea, Mongolia, Laos,
Zambia and Mauritania.
The Mader International division has regional offices
in Ulaanbaatar, Mongolia and Solwezi, Zambia. Mader
Group generated $7 million in revenue for the year
ending 30 June 2021, down 47.0% as compared
to $13 million in FY20. Although the segment saw
a fall in revenue vs PCP; activity levels regained
momentum quarter on quarter.
MADER GROUP 2021 ANNUAL REPORT
11
"Mader Group has expanded
its operations in line
with its growth strategy,
increasing its revenue base
and delivering value to
shareholders without raising
external capital."
Justin Nuich, Chief Executive
Officer and Executive Director
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MADER GROUP 2021 ANNUAL REPORT
madergroup.com.au
C E O ' S R E V I E W O F O P E R A T I O N S
Our People and Culture
Returns to Shareholders
Through years of investment in our people and
culture, we have built a transparent, flexible and
inclusive workplace that provides employees with
the guidance, empowerment and prospects to be as
successful as they can. Today, the business employs
over 1,600 people globally - many of which would
commend Mader Group on its team culture, access to
global career opportunities, family-focus, leadership
pathways and unrivaled job variety and flexibility.
We lead the market in crafting purpose driven
careers and innovative employee benefits to keep
our people happy and engaged. Our workplace
programs have won us an Award of Excellence in the
Employer of Choice (>1,000 Employees) category
at the 2020 Australian HR Awards, and a loyal
workforce that have stuck with us through the
challenges of the past year.
Equipping the Community
Our community engagement program is global and
evolving, with a dedicated focus on the regions
we operate in. We strive to equip individuals and
communities with the tools they need to succeed
in life, through our involvement in a broad scope of
community projects, events, charity and volunteer
initiatives.
This multifaceted and impactful program also
includes a component that supports our industry's
superstars of tomorrow through varied support to
local TAFE Institutes and high schools, commonly
those based in key mining regions.
Over the financial year, Mader Group has expanded
its operations in line with its growth strategy,
increasing its revenue base and delivering value to
shareholders without raising external capital. Two
payments of fully franked dividends were declared to
shareholders for the FY21 period, totaling $6 million,
each to the value of 1.5 cents per share. This includes
a final dividend for the period, declared on 23 August
2021 and set to be paid to Shareholders on the
28 September 2021. Dividends distributed for the
period, represent a payout ratio of 31%.
Looking Ahead
I’d like to commend the Mader Group team for their
continued hard work and outstanding achievements
throughout the year. Looking forward, I am optimistic
about Mader Group’s future as we build on our
technical strengths and explore a number of new
growth opportunities ahead. Whilst the gears in our
expansion plan are turning, the key drivers behind
our success remain unchanged. We penetrate
new markets with a proven business model and a
powerful focus on our people, safety and culture. Our
team is more unified and adaptable than ever and I
look forward to seeing what we can achieve in the
financial year to come.
Yours sincerely
Justin Nuich
CEO and Executive Director
MADER GROUP 2021 ANNUAL REPORT
13
Community Engagement
Our global community engagement
program aims to equip individuals
and communities with the tools
they need to succeed in life.
This includes a contingent targeted at supporting
the industry’s superstars of tomorrow such as
youth living in remote mining regions or entering
trades in the maintenance sector.
Other areas of the program include involvement
in community projects, sponsorships, charity
and volunteer initiatives to drive positive change.
Centered around providing support to the regions
we operate in, this program plays a key role in
shaping the communities around us.
Some highlights this year included:
• A partnership with Nevada Gold Mines a
locally based businesses in Elko, Nevada, to
donate Chromebooks to students struggling
to gain access to digital learning during
COVID-19;
• The donation of protective workwear,
valedictory award prizes and other resources
to select high schools and TAFE institutes in
Western Australia and New South Wales;
• Sponsorship of the Desert to Reef Fishing
Tournament raising important funds for the
WA Police Legacy in the Pilbara, Western
Australia, providing financial support to the
children and families of police officers killed
or seriously injured in the line of duty; and
• A series of volunteer efforts supporting
youth in need through Ronald McDonald
House Charities and Dismantle programs in
Perth, Western Australia.
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"We love having the Mader team volunteer in our Home for Dinner Program.
By participating in the Home for Dinner Program, Mader Group is helping
create a home away from home experience for regional WA families in our
care" Joshua Lawrence, Partnerships Manager (RMHC WA)
The program also provides a fantastic platform
for employees to submit and implement their own
ideas, connect with the local community and have
fun whilst doing so. We believe that this helps our
people foster a sense of purpose and belonging
that is critical to maintaining a fulfilled, engaged and
productive workforce.
"We are grateful to Mader Group
for their involvement at the 2021
Desert to Reef Fishing Tournament.
Companies like Mader make an
incredible difference to the quality
of life in our community and in this
case, particularly to the families
impacted by the dangers of frontline
Policework."
Constable Kiel Hebden
Newman Police
15
Highlights
" High demand for our services and enhanced internal
systems contributed to our performance, as we delivered
flexible, fit for purpose and cost-effective maintenance
solutions to our customers across seven countries."
Justin Nuich,
Chief Executive Officer and Executive Director
Awards
Our People
3.4M Hrs Worked
Maintenance labour services
delivered to over 240 customers
1,600+
Employees
Operating
Worldwide
98 Apprentices
in training throughout FY21
(incl. Trade Upgrade Program)
16 Years Strong
Longstanding experience and
mining excellence
2021 Winner
Most Trusted Mining and
Civil Contractor Award
Australian Enterprise Awards
2020 Winner
Employer of Choice
Excellence Award
Australian HR Awards
16
Our
Operations
700+
Service Vehicles
spanning four continents
370+
Mine Sites
Providing maintenance across
more than 370 mine sites
240+
Diverse network of
customers worldwide
20+ Services
Widening scope of
specialist services
delivered globally
7 Countries
Actively supporting
customers across
four continents
Our
Financials
$304.3M
FY21
sales revenue
11.2%
FY21
revenue growth
$35.7M
FY21 EBITDA
8.2%
FY21
earnings growth
$19.3M
FY21
NPAT
10.5%
FY21 NPAT
growth
9.67c
Basic and diluted earnings
per share FY21
25% CAGR
Compound Annual
Growth Rate over 5 years
Low
Net Debt
and significant
financial flexibility
17
Directors' Report
The Directors submit their report with the financial report on the consolidated entity (referred to hereafter as
“Mader Group” or “Group”) consisting of Mader Group Limited (the “Company”) and the entities it controlled at the
end of, or during, the year ended 30 June 2021 (FY21).
Directors
The following persons were directors of the Company (the Directors) at any time during or since the end of the
financial year and up to the date of this report. Directors were in office for this period unless otherwise stated.
Director Name
Position
Jim Walker
Luke Mader
Justin Nuich
Non-Executive Chairman
Executive Director
Executive Director & Chief Executive Officer (CEO)
Appointed as CEO 28 January 2021
Patrick Conway
Executive Director
Craig Burton
Non-Executive Director
Resigned as CEO 28 January 2021
Principal Activities
The principal activities of Mader Group during the financial year were the provision of specialised labour and
support for the maintenance of heavy mobile equipment and fixed infrastructure in the resources sector in
Australia and internationally. The services provided include maintenance labour, field support (site labour with
support vehicles and tooling), shutdown teams for major overhauls, offsite repairs and component rebuilds,
training of maintenance teams, and a range of other ancillary services.
18
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au Overview and Financial Results
Information on the operations and the Group’s business strategies is set out in the Chief Executive Officer's
Report on pages 8 to 13.
Mader Group generated revenue of $304.3 million, an increase of 11.2% versus the prior year. In Australia,
Revenue increased by 10.7% to $273.3 million, reflecting the demand for Mader Group’s services in all regions.
The North America market generated $24.2 million in revenue, up 75.0% in comparison to the prior year of
$13.8 million with Mader Group’s Rest of World market decreasing 47.0% in revenue to $6.8 million.
Similarly, the Group’s EBITDA grew 8.2% to $35.7 million in comparison with the prior year. EBITDA for the
Australian market was $29.4 million, an increase of 10.7% as opposed to the prior year of $29.2 million. In North
America, EBITDA grew to $6.8 million (121.3%) which was a result of the growth in revenue. The Rest of World
market contributed $2.2 million to the Group’s EBITDA increasing 5.3% compared to the prior year.
As at 30 June 2021, Mader Group maintained its strong liquidity position with net cash inflows from operations
for the year of $16.2 million (2020: $20.4 million). Cash outflows from investing activities of $14.8 million is
mainly due to the expansion of Mader Group's fleet of service vehicles. The Group’s net debt position as at 30
June 2021 was $23.9 million (2020: $18.5 million).
Dividends
On 23 August 2021, the Company declared a final fully franked dividend of 1.5 cents per share. The total
value of the final dividend payment is $3.0m. The record date is 7 September 2021 with a payment date of 28
September 2021.
A summary of the dividends that have been paid or declared during or in relation to the financial year is set
out below:
Dividend Type
Final FY20 Fully Franked
Interim FY21 Fully Franked
Final FY21 Fully Franked
Dividend Paid
Total Value
Payment Date
1.5 cents per share
1.5 cents per share
1.5 cents per share
$3.0m
$3.0m
$3.0m
17 September 2020
17 March 2021
28 September 2021
MADER GROUP 2021 ANNUAL REPORT
19
D I R E C T O R S ' R E P O R T
Significant Changes in the State of Affairs
There have been no significant changes in the state
of affairs of the Group that occurred during the
financial year not otherwise disclosed in this report
or the financial statements.
Future Developments
Mader Group is well placed to take advantage of
growth opportunities and strong commodity markets
as they present with a dedicated focus on customer
service and regional diversification to mitigate macro
market risks and enhance earnings potential.
The Group seeks to improve the quality of its revenue
base through quality service delivery, operational
efficiency and strengthened profit margins across
existing and emerging markets. Its global expansion
strategy is centred around achieving sustainable
growth whilst upholding its positive workplace
culture and world class reputation.
The Board is confident that Mader Group’s leading
market position will enable the business to
continue to grow through the ongoing attraction
of high quality and suitably skilled people and the
penetration of existing and new resource projects.
Mader Group’s revenue growth is predominantly
driven by three factors:
•
Increase in demand in regions where Mader
Group already operates (both existing and new
customers). Mader Group believes significant
revenue growth potential remains in all regions in
which Mader Group currently operates;
• Expansion to new addressable markets where use
of heavy mobile equipment is significant or where
markets complement Mader Group’s business
model, service offerings, skill sets and/or abilities;
and
• The continued diversification and scaling
of supplementary services in established
regions, such as Mader Group’s ancillary
services and infrastructure maintenance.
These services are complementary and add
value to Mader Group’s core capabilities in
mechanical maintenance.
20
The Group sees a continuance of the current
trends in its business and strong macro trends
with growth momentum expected to be maintained
through strategic diversification in large existing and
emerging markets.
Growth in industry demand is affected by:
• The outlook and impacts of COVID-19 in the near
to mid-term;
• Total commodity production (more production
means more machine stock);
• The average age of existing machinery stock (older
machines means more maintenance); and
• The extent to which mining companies outsource
maintenance workforce requirements.
The Group’s specific growth strategies include:
• Replicating the business model in new areas;
• Continuing to diversify by commodity;
• Being an employer of choice;
• Continuing to maintain and develop new customer
relationships; and
• Continuing to expand its range of service offerings
and markets entered.
Mader Group's economic performance and future
prospects are subject to a number of risks which
may impact its business and which include the
Group’s ability to maintain its culture; maintaining
quality of work and delivery; occupational health,
safety and environment; potential downturn in
the resources industry; loss of key personnel;
management of growth; ability to win new work; the
Group’s large casual workforce; changes to industrial
relations policy or labour laws; reliance on key
customers and projects; foreign operations; increase
in labour costs; increased competition; labour
shortages; decline in the trend towards outsourcing
maintenance activities; customer pricing risk, and
capital requirements for growth.
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au Events Subsequent to the
End of the Financial Year
Apart from the Company declaring a dividend as
set out above, there have been no other matters or
circumstances that have arisen since 30 June 2021
that has 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.
Environmental Regulation and Performance
The operations of the Group are subject to various
environmental regulations under the Commonwealth,
State and Territory legislation.
The Directors are not aware of any breaches of
environmental regulations during the year or as at
the date of this report. The Group has met all its
reporting requirements under the relevant legislation
during the year and continually aims to improve its
environmental performance.
MADER GROUP 2021 ANNUAL REPORT
21
D I R E C T O R S ' R E P O R T
Information on current Directors
JIM WALKER
GAICD, FAIM
Experience and Expertise
Jim has over 45 years’ experience in the resources sector and was the
former Managing Director of WesTrac and a Director of Seven Group
Holdings and National Hire Group. Jim was formerly the Non-Executive
Chairman of Macmahon Holdings Ltd (ASX: MAH) having been a member
of the Macmahon board since 2013. Jim is also Chairman of Austin
Engineering Ltd (ASX: ANG), MLG OZ Ltd (ASX: MLG), Australian Potash Ltd
(ASX: APC), State Training Board, WA Motor Museum, RACWA Holdings Pty
Ltd and RAC Insurance Pty Ltd. Jim has also been a past State and National
President of the Australian Institute of Management.
Directorships held in other
listed entities
Special responsibilities
• Member of the Audit and Risk
• Australian Potash Limited from
Management Committee
• Member of the Nomination
and Remuneration Committee
Interest in shares and options
• 66,667 Ordinary Shares
15 August 2018 to current
• Austin Engineering Limited from
8 July 2016 to current
• MLG Oz Limited from 21 January
2021 to current
Former directorships held in
listed companies in the last
three years
• Macmahon Holdings Limited (11
October 2013 to 27 June 2019)
• Seeing Machines Limited (19
May 2014 to 13 December 2018)
22
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au LUKE MADER
Experience and Expertise
Founder of Mader Group, Luke is trade qualified with 20 years’ experience
in the mining services industry. Luke has built Mader Group to over 1,600+
employees after realising an underserviced ‘niche’ in the industry while working
in marketing for an Original Equipment Manufacturer (OEM). Luke has forged
an impressive reputation across major mining regions of Australia and now the
world. Luke leads Mader Group’s strategic growth and development to foster
global expansion.
Directorships held in other
listed entities
• None
Former directorships held in
listed companies in the last
three years
Special responsibilities
• Member of the Audit and Risk
Management Committee
• Member of the Nomination and
Remuneration Committee
Interest in shares and options
• None
• 113,697,095 Ordinary Shares
JUSTIN NUICH
MBA, GRAD DIP MAINTENANCE MANAGEMENT
Experience and expertise
Justin has over 20 years’ experience in the mining and oil and gas industries
in Australia and globally. Currently Mader Group's Executive Director and CEO,
Justin is well versed with the business having sat on the Board since October
2018. He formerly held senior roles with Fortescue Metals Group Limited
(ASX: FMG), Mineral Resources Limited (ASX: MIN) and BHP Group Ltd (ASX:
BHP).
Directorships held in other
listed entities
• None
Former directorships held in
listed companies in the last
three years
Special responsibilities
• Member of the Audit and Risk
Management Committee
• Member of the Nomination and
Remuneration Committee
Interest in shares and options
• None
• 181,881 Ordinary Shares
MADER GROUP 2021 ANNUAL REPORT
23
D I R E C T O R S ' R E P O R T
Information on current Directors (continued)
PATRICK CONWAY
BBUS, CPA, GACG
Experience and Expertise
Formerly the CEO and CFO of Mader Group, Patrick has been with the Company
for over 7 years and has a background in Public Practice accounting and
business advisory including 4 years’ experience with a West African gold
development project.
Directorships held in other
listed entities
• None
Former directorships held in
listed companies in the last
three years
Special responsibilities
• Chair of the Audit and Risk
Management Committee
• Member of the Nomination and
Remuneration Committee
Interest in shares and options
• None
• 113,824 Ordinary Shares
CRAIG BURTON
BJURIS, LLB, MAICD
Experience and expertise
Craig is a venture capital investor in emerging companies, projects and
businesses. Craig has a track record of providing financing backing and
strategic advice to successful business teams and start-up entrepreneurs.
Directorships held in other
listed entities
Special responsibilities
• Member of the Audit and Risk
• Cradle Resources Limited from
Management Committee
5 March 2019 to current
• Grand Gulf Energy Limited from
16 September 2013 to current
Former directorships held in
listed companies in the last
three years
• Capital Drilling Limited (1 January
2009 - 31 August 2018)
• Chair of the Nomination and
Remuneration Committee
Interest in shares and options
• 40,000,000 Ordinary Shares
24
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au Directors’ meetings
The number of meetings of the Company’s Board of Directors and of each Board committee held during the year
ended 30 June 2021 and the number of meetings attended by each Director were as follows:
Director’s
Meeting
Audit and
Risk Committee
Nomination and
Remuneration Committee
Eligible
to attend
Attended
Eligible
to attend
Attended
Eligible
to attend
Attended
Jim Walker
Luke Mader
Justin Nuich
Patrick Conway
Craig Burton
5
5
5
5
5
Company Secretary
5
5
5
5
4
2
2
2
2
2
2
2
2
2
2
-
-
-
-
-
-
-
-
-
-
SHANNON COATES
LLB, BA (JUR), AGIA, ACIS, GAICD
Ms Coates holds a Bachelor of Law from Murdoch University and has over 20 years’ experience in corporate
law and compliance. She is a Chartered Secretary and currently acts as Company Secretary to a number of
ASX-listed companies.
Ms Coates is a Director of Perth-based corporate advisory firm Evolution Corporate Services, which specialises
in the provision of company secretarial and corporate advisory services to ASX-listed companies.
MADER GROUP 2021 ANNUAL REPORT
25
Remuneration Report - Audited
Overview
The Directors of Mader Group Limited present the Remuneration Report (the Report) for the Company and its
controlled entities for the year ended 30 June 2021. This Report forms part of the Directors’ Report and has
been audited in accordance with section 300A of the Corporations Act 2001. The Report details the remuneration
arrangements for Mader Group’s Key Management Personnel (KMP) being:
• Non-Executive Directors
• Executive Directors and Senior Executives (collectively the Executives)
KMP are those persons who, directly or indirectly, have authority and responsibility for planning, directing and
controlling the major activities of the Group and the Company. The table below outlines the KMP of the Company
and their movements during the financial year:
Name
Jim Walker
Craig Burton
Luke Mader
Justin Nuich
Position
Non-Executive Chairman
Non-Executive Director
Executive Director
Term as KMP
Full financial year
Full financial year
Full financial year
Executive Director/Chief Executive Officer Full financial year, Appointed as CEO 28 Jan 2021
Patrick Conway
Executive Director
Full financial year, Resigned as CEO 28 Jan 2021
John Greville
Paul Hegarty
Lili Lim
Chief Operating Officer
Chief Financial Officer
Chief Financial Officer
Full financial year
Appointed on 4 September 2020
Ceased on 4 September 2020
Executive Remuneration
How we determine executive remuneration policies and structures
Four principles guide our decisions about executive remuneration at Mader Group:
• Fairness: provide a fair level of reward to all employees;
• Transparency: build a culture of achievement by transparent links between reward and performance;
• Alignment: promote mutually beneficial outcomes by aligning employee, customer, shareholder interests; and
• Mader Group Culture: drive leadership performance and behaviours that create a culture that promotes safety,
diversity and employee satisfaction.
How remuneration is governed
Mader Group has established a Nomination and Remuneration Committee (the Committee) to assist the Directors
in fulfilling its corporate governance responsibilities. The Committee provides advice, recommendations and
assistance to the Directors with respect to:
• Remuneration policies for Non-Executive Directors;
• Remuneration policies for Executive Directors;
• Remuneration policies for Executive Management;
• Equity participation;
• Human resources policies; and
• Other matters referred to the Committee by the Directors.
26
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au R E M U N E R A T I O N R E P O R T - A U D I T E D
The Committee presently consists of Messrs Jim Walker, Craig Burton, Justin Nuich, Luke Mader and Patrick
Conway. Mr Burton acts as the Chairman of the Committee.
The Committee may, when it considers necessary or appropriate, obtain advice from external consultants or
specialists in relation to remuneration related matters at the Company’s expense. During the financial year the
Company did not engage any such advisors.
Elements of executive remuneration
Fixed remuneration
Executive fixed remuneration is competitively structured and may include cash, superannuation and other
non-financial benefits. Non-financial benefits generally consist of items to enable the effective discharge of
the executive’s duties and may include the provision of motor vehicles, mobile phones and computers. Fixed
remuneration is designed to reward the Executive for their relevant skills, experience and qualifications with
reference to their role.
Variable remuneration - short-term incentives (STI)
STIs currently take the form of a cash bonus which is paid to Executives following the end of the financial year.
The Committee is responsible for determining the achievement of the targets and whether a bonus amount is
paid. The Committee will consider the Executive’s performance and contributions in making their determination.
Features of the STI plan is set out below.
Feature
Description
Maximum opportunity
Performance metrics
Executives can earn up to 3.33% of the increase in Statutory Net Profit Before Tax for the
financial year, when compared to financial year in which the Executive commenced with
the Group.
The STI metrics align with the Group’s strategic targets as follows:
• Economic profit is a core component and aligns to growth in shareholder’s wealth;
• Attract and retain qualified, experienced and high calibre executives rewarding long term
commitment to the Group
• Reward performance and achievement of the Group’s strategic targets
Metric
Target
Weighting
Reason for selection
Net profit before
tax
Total recordable
injury frequency
rate (TRIFR)
Retention rate
No target is set.
<5 incidents per million hours
worked.
20% reduction in the
turnover rate when compared
to the prior reporting period.
50%
30%
20%
Reflects improvements in
both revenue and cost control
Our people operating safely
both in our and our client’s
environments is paramount
Staff retention is core to
maintaining a safe, well
trained workforce
Variable remuneration - long-term incentives (LTI)
There is currently no long-term incentive plan in place as the Committee believes the current remuneration
structure is aligned to the Group’s long-term strategic targets.
MADER GROUP 2021 ANNUAL REPORT
27
Non-Executive Director Remuneration
Mader Group’s Non-Executive Director fee policy is designed to attract and retain high calibre directors
who can discharge the roles and responsibilities required in terms of good governance, strong oversight,
independence and objectivity. The fees reflect the demands and responsibilities of the Directors whilst
incurring a cost which is acceptable to shareholders. Directors currently do no receive any additional fees
for participation in Board Committees.
The Committee reviews non-executive directors’ remuneration annually against comparable companies and
may consider advice from external advisors if deemed necessary. Non-Executive director fees are determined
within an aggregated non-executive director fee pool limit of $300,000 per annum.
Executive Service Agreements
Each KMP has entered into a service agreement with the Company. All KMP are entitled to receive payment in
lieu of notice of any accrued statutory entitlement (i.e. annual leave and long service leave) on cessation of their
employment. In addition, all KMP are entitled to participate in the STIP and LTIP that has been disclosed above.
The following table outlines the contractual terms of the executive service agreements:
Component
Luke Mader
Executive Directors
Senior Executives
$2,000 per day
worked
Range between $250,000 and
$400,000
Range between $200,000
and $270,000
Fixed Remuneration
Variable Remuneration
Allowances
None
None
Notice Period
6 months
Annual and Long Service Leave
None
As per STI scheme
As per STI scheme
May include motor vehicle
allowance
None
Range between 5 weeks and 6
months
6 months
Statutory requirements plus
17.5% annual leave loading
Statutory requirements plus
17.5% annual leave loading
Redundancies
None
Statutory requirements
May include 12 months payout
on change of control event
Relationship between Remuneration and Group Performance
Mader Group rewards the performance of KMPs with regard to the achievement of operational and financial
targets having regard to the duties, performance and contribution of the KMP during the financial year.
The table below sets out information about the Group’s earnings and movements in shareholder wealth for the
past five years up to and including the current financial year.
Net profit for the year ($’m)
Basic and diluted earnings per share (cents)
Total dividends ($’m)
Share price at end of year (cents)
2021
2020
2019
19.3
9.67
6.0
0.85
17.5
8.75
7.3
0.78
14.9
8.77
11.1
-
2018
11.4
6.68
3.0
-
2017
6.2
3.65
Nil
-
28 MADER GROUP 2020 ANNUAL REPORT
madergroup.com.au
MADER GROUP 2020 ANNUAL REPORT
29
R E M U N E R A T I O N R E P O R T - A U D I T E D
Remuneration of KMP for the Years Ended 30 June 2021 and 30 June 2020
Short-term employee benefits
Post-
employment
Long-term
benefits
Salary
& fees
Short Term
incentives1
Non-
monetary2
Super-
annuation
Long service
leave
Total
remuneration
Perform-
ance
related
$
$
$
$
$
$
%
Non-executive
directors
Jim Walker
Craig Burton
Justin Nuich3
2021
2020
2021
2020
2021
2020
110,000
110,000
60,000
60,000
30,000
60,000
Total Non-executive
Directors
2021
200,000
2020
230,000
Executive directors
Luke Mader
2021
200,000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Justin Nuich3
Patrick Conway4
Senior executives
155,000
183,972 200,000
10,004
2020
2021
2020
2021
-
-
267,783
237,013
2020
264,679
192,775
John Greville
2021
228,038
347,051
Paul Hegarty5
Lili Lim6
2020
2021
2020
2021
2020
233,621
288,127
181,802
72,000
-
35,647
-
-
178,368
108,227
-
-
-
-
-
-
-
-
10,450
10,450
5,700
5,700
-
-
16,150
16,150
17,687
11,071
12,731
-
22,973
20,089
21,018
19,771
17,474
-
3,106
18,858
-
-
-
-
-
-
-
-
-
-
-
-
-
4,894
-
-
-
-
-
120,450
120,450
65,700
65,700
30,000
60,000
216,150
246,150
217,687
166,071
406,707
-
527,769
477,543
601,001
541,519
271,276
-
38,753
305,453
Total Executive and
Senior Directors
Total KMP
2021
1,097,242 856,064
10,004
94,989
4,894
2,063,193
2020
831,668
589,129
-
2021
1,297,242 856,064
10,004
2020 1,061,668
589,129
-
69,789
111,139
85,939
-
1,490,586
4,894
2,279,343
-
1,736,736
1 Short-term incentives relate to cash bonuses provided under the Group’s STI plan
2 Non-monetary benefits relate to the provision of motor vehicles and motor vehicle related expenses.
3 Ceased as Non-executive Director and appointed as CEO on 28 January 2021
4 Ceased as CEO on 28 January 2021
5 Appointed on 4 September 2020
6 Ceased on 4 September 2020
30
-
-
-
-
-
-
-
-
-
-
49
-
45
40
58
53
27
-
-
35
41
40
38
34
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au The table below shows the percentage of each Executives’ STI that was awarded or forfeited during the
financial year.
2021
Justin Nuich
Patrick Conway
John Greville
Paul Hegarty
Short-term Incentives
Awarded
Forfeited
100%
50%
50%
100%
-
50%
50%
-
Key Management Personnel Equity Holding
The number of fully paid ordinary shares of the Company, held directly, indirectly or beneficially, in which the KMP
has a relevant interest for the year ended 30 June 2021 are as follows. None of the shares were held nominally
by any of the KMP.
Jim Walker
Craig Burton
Luke Mader
Justin Nuich
Patrick Conway
John Greville
Paul Hegarty
Lili Lim
Total
Balance
1 July
2020
66,667
39,800,000
113,307,095
66,700
113,824
166,667
-
-
153,520,953
Granted as
remuneration
On market
purchase
Other
changes
-
-
-
-
-
-
-
-
-
-
200,000
390,000
115,181
-
-
55,000
-
760,181
-
-
-
-
-
-
-
-
-
Balance
30 June
2021
66,667
40,000,000
113,697,095
181,881
113,824
166,667
55,000
-
154,281,134
Loans to Key Management Personnel
There were no loans to Directors or Executives during the financial year ended 30 June 2021.
MADER GROUP 2021 ANNUAL REPORT
31
R E M U N E R A T I O N R E P O R T - A U D I T E D
Other Transactions and Balances with KMP and their Related Parties
The following transactions occurred and were outstanding at reporting date in relation to transactions with
related parties:
2021
Services provided to
MLG Oz Limited
Services provided by
Venture South Pty Ltd
Services provided to
Western Plant Hire
Holdings Limited
Services provided
to Salt Lake Potash
Limited
Consultancy services
provided by Allscope
Holdings Pty Ltd
Related KMP
Jim Walker
Luke Mader
Luke Mader
Patrick Conway1
Justin Nuich
Justin Nuich
Transactions
Receivables
Payables
2021
$'000
3,281
83
345
62
9
2020
$'000
2021
$'000
2020
$'000
2021
$'000
2020
$'000
-
-
-
-
-
551
-
189
622
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1 Luke Mader is a director of Western Plant Hire Holdings Limited and Patrick Conway is an alternate director for Luke Mader.
2 Balance is as at the date Justin Nuich became CEO of the Group.
End of audited remuneration report.
32
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au Shares Under Option
Auditors Independence Declaration
There were no unissued ordinary shares of Mader
Group Limited under option at the date of this report.
The auditor’s independence declaration as required
under section 307C of the Corporations Act 2001 is
set out on page 34.
Indemnification and Insurance of Officers
and Auditors
Rounding
The Company is a company of the kind referred to
in ASIC Corporations Instrument 2016/191 issued
by the Australian Securities and Investments
Commission dated 24 March 2016, and in
accordance with the Corporations Instrument,
amounts in this report have been rounded off to the
nearest thousand dollars, unless otherwise stated.
This directors’ report is made in accordance with a
resolution of Directors, pursuant to Section 298(2)(a)
of the Corporations Act 2001.
Jim Walker
Non-Executive Chairman
23 August 2021
The Company has executed a deed of access,
indemnity and insurance in favour of each Director
during the financial year. The indemnity requires
the Company to indemnify each Director for
liability incurred by the Director as an officer of the
Company subject to the restrictions prescribed
in the Corporations Act 2001. The deed also gives
each Director a right of access to Board papers and
requires the Company to maintain insurance cover
for the Directors.
The Company has not otherwise, during or since
the end of the financial year, except to the extent
permitted by law, indemnified or agreed to indemnify
an officer or auditor of the Company or of any related
body corporate against a liability incurred as such an
officer or auditor.
Proceedings on Behalf of the Company
No person has applied to the Court under section
237 of the Corporations Act 2001 for leave to bring
proceedings on behalf of the Company, or to intervene
in any proceedings to which the Company is a party,
for the purpose of taking responsibility on behalf of
the Company for all or part of those proceedings.
Non-Audit Services
Details of the amounts paid or payable to the
auditor for non-audit services provided during the
financial year by the auditor are outlined in Note
23 to the financial statements.
The Directors are satisfied that the provision of
non-audit services is compatible with the general
standard of independence of auditors imposed by
the Corporations Act 2001. The nature and scope
of each type of non-audit services provided means
the auditor’s independence was not compromised.
MADER GROUP 2021 ANNUAL REPORT
33
Auditor’s Independent Declaration
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY PHILLIP MURDOCH TO THE DIRECTORS OF MADER GROUP
LIMITED
As lead auditor of Mader Group Limited for the year ended 30 June 2021, I declare that, to the best of
DECLARATION OF INDEPENDENCE BY PHILLIP MURDOCH TO THE DIRECTORS OF MADER GROUP
my knowledge and belief, there have been:
LIMITED
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
relation to the audit; and
As lead auditor of Mader Group Limited for the year ended 30 June 2021, I declare that, to the best of
2. No contraventions of any applicable code of professional conduct in relation to the audit.
my knowledge and belief, there have been:
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
This declaration is in respect of Mader Group Limited and the entities it controlled during the period.
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
This declaration is in respect of Mader Group Limited and the entities it controlled during the period.
Phillip Murdoch
Director
Phillip Murdoch
BDO Audit (WA) Pty Ltd
Director
Perth, 23 August 2021
BDO Audit (WA) Pty Ltd
Perth, 23 August 2021
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
3 4 MADER GROUP 2020 ANNUAL REPORT
madergroup.com.au
MADER GROUP 2021 ANNUAL REPORT
35
35
3636
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au Consolidated Statement of Profit or
Loss & Other Comprehensive Income
For the Year Ended 30 June 2021
Revenue
Cost of sales
Gross profit
Distribution expense
Marketing expenses
Administration expenses
Other operating expenses
Finance costs
Share of profit from associates
Other income
Profit before income tax
Income tax expense
Profit for the year
NOTE
4
5
5
5
6
2021
$’000
304,300
(245,925)
58,375
(199)
(1,171)
(30,446)
(152)
(1,427)
1,004
795
26,779
(7,437)
19,342
2020
$’000
273,547
(218,804)
54,743
(246)
(813)
(27,104)
(532)
(1,735)
-
598
24,911
(7,407)
17,504
Other comprehensive income/(loss)
Items that may be reclassified to profit or loss
Exchange differences arising on translation of foreign operations
Total comprehensive income for the year
(787)
18,555
724
18,228
Earnings per share
Basic and diluted earnings per share (cents per share)
8
9.67
8.75
The above Consolidated Statement of Profit or Loss and Other Comprehensive Income should be read in
conjunction with the notes to the financial statements.
MADER GROUP 2021 ANNUAL REPORT
37
Consolidated Statement of
Financial Position
As at 30 June 2021
Current assets
Cash and cash equivalents
Trade and other receivables
Other assets
Total current assets
Non-current assets
Property, plant and equipment
Investment in associates
Right of use of asset
Other assets
Deferred tax assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Lease liabilities
Provisions
Tax liabilities
Borrowings
Total current liabilities
Non-current liabilities
Lease liabilities
Provisions
Deferred tax liabilities
Borrowings
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Retained earnings
Total equity
NOTE
11
12
13
14
15
12
6
16
17
6
18
17
6
18
19
20
2021
$’000
3,209
67,881
956
72,046
2020
$’000
6,456
55,521
1,241
63,218
36,922
32,542
4,651
3,499
320
5,072
50,464
122,510
21,543
549
1,670
4,494
19,037
47,293
3,134
888
2,401
8,122
14,545
61,838
60,672
2
(1,220)
61,890
60,672
57
2,587
335
2,008
37,529
100,747
18,898
491
1,307
3,227
13,777
37,700
2,096
599
1,097
11,138
14,930
52,630
48,117
2
(433)
48,548
48,117
The above Consolidated Statement of Financial Position should be read in conjunction with the notes to the
financial statements.
38
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au
Consolidated Statement of
Changes in Equity
For the Year Ended 30 June 2021
Issued
Capital
$’000
NOTE
Balance at 1 July 2020
Comprehensive income/(loss)
Profit for the year
Other comprehensive income/ (loss) for the year
Total comprehensive income/ (loss)for the year
Transactions with owners,
in their capacity as owners
Dividends paid or provided for
Total transactions with owners
Balance at 30 June 2021
9
2
-
-
-
-
-
2
Issued
Capital
$’000
NOTE
Balance at 1 July 2019
Comprehensive income/(loss)
Profit for the year
Other comprehensive income/ (loss) for the year
Total comprehensive income/ (loss)for the year
Transactions with owners,
in their capacity as owners
Dividends paid or provided for
Total transactions with owners
Balance at 30 June 2020
9
2
-
-
-
-
-
2
Retained
Earnings
$’000
48,548
Reserves
$’000
(433)
Total
$’000
48,117
19,342
(787)
18,555
Total
$’000
34,169
17,504
724
18,228
-
(787)
(787)
-
724
724
-
-
(6,000)
(6,000)
61,890
(1,220)
60,672
Retained
Earnings
$’000
35,324
Reserves
$’000
(1,157)
19,342
-
19,342
(6,000)
(6,000)
17,504
-
17,504
(4,280)
(4,280)
-
-
(4,280)
(4,280)
48,548
(433)
48,117
The above Consolidated Statement of Changes of Equity should be read in conjunction with the notes to the
financial statements.
MADER GROUP 2021 ANNUAL REPORT
39
Consolidated Statement
of Cash Flows
For the Year Ended 30 June 2021
Cash flows from operating activities
Receipts from customers
Payments to suppliers and employees
Interest received
Finance costs
Income tax paid
Net cash provided by operating activities
Cash flows from investing activities
Proceeds from sale of plant and equipment
Payments for plant and equipment
Investment in associates
Net cash (used in) investing activities
Cash flows from financing activities
Payments of dividends
Payment of borrowings
Proceeds from borrowings
Net cash provided by/(used in) financing activities
Net increase/(decrease) in cash held
Net foreign exchange difference
Cash at the beginning of the financial year
Cash at the end of the financial year
NOTE
2021
$’000
2020
$’000
321,132
272,994
(296,206)
(244,508)
10
19
(862)
(7,928)
16,155
58
(11,232)
(3,591)
(14,765)
(6,000)
(11,176)
12,867
(4,309)
(2,919)
(328)
6,456
3,209
7
(1,736)
(6,356)
20,401
1,108
(13,969)
-
(12,861)
(4,280)
(12,702)
12,849
(4,133)
3,407
-
3,049
6,456
The above Consolidated Statement of Cash Flows should be read in conjunction with the notes to the financial
statements.
40
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au Notes to the Consolidated
Financial Statements
For the Year Ended 30 June 2020
1. Corporate Information
These financial statements are general purpose
financial statements which have been prepared
in accordance with the Corporations Act 2001,
Accounting Standards and other authoritative
pronouncements issued by the Australian
Accounting Standards Board (“AASB”), and comply
with other requirements of the law.
Compliance with Australian Accounting Standards
ensures that the financial statements and notes
of the Group comply with International Financial
Reporting Standards (FRS) as issued by the
International Accounting Standards Board (ASB).
Consequently, this financial report has been
prepared in accordance with and complies with IFRS
as issued by the IASB.
The financial statements comprise the consolidated
financial statements of the Group and were
authorised for issue in accordance with a resolution
of the board of directors dated 23 August 2021. For
the purposes of preparing the consolidated financial
statements, the Company is a for-profit entity.
These financial statements are presented in
Australian Dollars ($). Foreign operations are
included in accordance with policies set out in
note 2. In addition, the financial statements have
been prepared on a historical cost basis. Historical
costs are generally based on the fair value of
the consideration given in exchange for goods
and services. Fair value is the price that would
be received to sell an asset or paid to transfer a
liability in an orderly transaction between market
participants at the measurement date, regardless
of whether that price is directly observable or
estimated using another valuation technique.
The Company is a company of the kind referred to
in ASIC Corporations Instrument 2016/191 issued
by the Australian Securities and Investments
Commission dated 24 March 2016, and in
accordance with the Corporations Instrument,
amounts in this report have been rounded off to the
nearest thousand dollars, unless otherwise stated.
2.
Summary of Significant
Accounting Policies
(a) Going Concern
The Directors have, at the time of approving the
financial statements, a reasonable expectation that
the Group have adequate resources to continue the
operational existence for the foreseeable future.
Thus, they continue to adopt the going concern basis
of accounting in preparing the financial statements.
(b) Basis of Consolidation
The consolidated financial statements comprises the
financial statements of the Company and the entities
controlled by the Company (its subsidiaries). Control
is achieved when the Company has:
• Power over the investee (i.e. existing rights that
give it the current ability to direct the relevant
activities of the investee)
• Exposure, or rights, to variable returns from its
involvement with the investee
• The ability to use its power over the investee to
affect its returns
The Company reassesses whether or not it controls
an investee if facts and circumstances indicate
that there are changes to one or more of the three
elements of control listed above. Consolidation of
a subsidiary begins when the Company obtains
control over the subsidiary and ceases when the
Company loses control of the subsidiary. The results
of subsidiaries acquired or disposed of during the
year are included in the profit and loss from the
date of the Company gains control until the date the
Company ceases to control the subsidiary.
Profit or loss and each component of other
comprehensive income are attributed to the equity
holders of the parent of the Group and to the non-
controlling interests, even if this results in the
non-controlling interests having a deficit balance.
All intra-group assets and liabilities, equity, income,
expense and cash flows relating to transactions
between members of the Group are eliminated in full
on consolidation.
MADER GROUP 2021 ANNUAL REPORT
41
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
2.
Summary of Significant
Accounting Policies (continued)
A change in the ownership interest of a subsidiary,
without a loss of control, is accounted for as an
equity transaction. If the Company loses control
over a subsidiary, it derecognises the related assets
(including goodwill), assets, liabilities and other
components of equity, with any resultant gain or
loss resulting from the difference between the
consideration received and the net financial position
of the subsidiary is recognised in profit or loss.
(c) Income Tax
Current income tax
Current income tax assets and liabilities are
measured at the amount expected to be recovered
from or paid to the taxation authorities. The tax
rates and tax laws used to compute the amount are
those that are enacted or substantively enacted at
the reporting date in the countries where the Group
operates and generates taxable income.
Current income tax relating to items recognised
directly in equity is recognised in equity and not
in the Statement of Profit or Loss. Management
periodically evaluates positions taken in the tax
returns with respect to situations in which applicable
tax regulations are subject to interpretation and
establishes provisions where appropriate.
Deferred tax
Deferred tax is provided using the liability method
on temporary differences between the tax bases of
assets and liabilities and their carrying amounts for
financial reporting purposes at the reporting date.
Deferred tax liabilities are recognised for all taxable
temporary differences, except:
• When the deferred tax liabilities arises from the
initial recognition of goodwill or asset or liability in
a transaction that is not a business combination
and, at the time of the transaction, affects neither
the accounting profit nor taxable profit or loss.
•
In respect of taxable temporary differences
associated with investments in subsidiaries,
42
associates and interests in joint arrangements,
when the timing of reversal of the temporary
differences can be controlled and it is probable
that the temporary differences will not reverse in
the foreseeable future.
Deferred tax assets are recognised for all deductible
temporary differences, the carry forward of unused
tax credits and any unused tax losses. Deferred
tax assets are recognised to the extent that it is
probable that taxable profit will be available against
which the deductible temporary differences, and the
carry forward of unused tax credits and unused tax
losses can be utilised, except:
• When the deferred tax assets relating to the
deductible temporary difference arises from initial
recognition of an asset or liability in a transaction
that is not a business combination and, at the time
of the transaction, affects neither the accounting
profit nor taxable profit or loss.
•
In respect to deductible temporary differences
associated with investments in subsidiaries,
associates and interest in joint arrangements,
deferred tax assets are recognised only to the
extent that it is probable that the temporary
differences will reverse in the foreseeable future
and taxable profit will be available against which
the temporary differences can be utilised.
The carrying amount of deferred tax assets is
reviewed at each reporting date and reduced to the
extent that it is no longer probable that sufficient
taxable profit will be available to allow all or part of
the deferred tax asset to be utilised. Unrecognised
deferred tax assets are re-assessed at each
reporting date and are recognised to the extent that
it has become probable that future taxable profits
will allow the deferred tax asset to be recovered.
Deferred tax assets and liabilities are measured
at the tax rates that are expected to apply in the
year when the asset is realised or the liability is
settled, based on tax rates (and tax laws) that
have been enacted or substantively enacted at
the reporting date.
Deferred tax items are recognised in correlation to
the underlying transaction either in OCI or directly
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au in equity.
The Group offsets deferred tax assets and deferred
tax liabilities if and only if it has a legally enforceable
right to set off current tax assets and current tax
liabilities and the deferred tax assets and deferred
tax liabilities relate to income taxes levied by the
same taxation authority on either the same taxable
entity or different taxable entities which intend
either to settle current tax liabilities and assets on
a net basis, or to realise the assets and settle the
liabilities simultaneously, in each future period in
which significant amounts of deferred tax liabilities or
assets are expected to be settled or recovered.
(d) Property, Plant and Equipment
Each class of plant and equipment is carried at cost
or fair value less, where applicable, any accumulated
depreciation and impairment losses. Freehold land is
not depreciated.
Plant and equipment
Plant and equipment are measured on a cost
basis. At each reporting date, the Group reviews
the carrying amounts of its property, plant and
equipment to determine whether there is any
indication that those assets have suffered an
impairment loss. If any such indication exists, the
recoverable amount of the asset is estimated to
determine the extent of the impairment loss (if
any). Where the asset does not generate cash
flows that are independent from other assets, the
Group estimates the recoverable amount of the
cash-generating units for which a reasonable and
consistent allocation basis can be identified.
The recoverable amount is the higher of fair value
less costs of disposal and value in use. In assessing
value in use, the estimated future cash flows are
discounted to their present value using a pre-
tax discount rate that reflects current market
assessments of the time value of money and the
risks specific to the asset for which the estimates of
future cash flows have not been adjusted.
If the recoverable amount of an asset (or cash-
generating unit) is estimated to be less than its
carrying amount, the carrying amount of the
asset (or cash-generating unit) is reduced to
its recoverable amount. An impairment loss is
recognised immediately in profit or loss. Where an
impairment loss subsequently reverses, the carrying
amount of the asset (or cash-generating unit) is
increased to the revised estimate of its recoverable
amount, but so that the increased carrying amount
does not exceed the carrying amount that would
have been determined had no impairment loss
been recognised for the asset (or cash-generating
unit) in prior years. A reversal of impairment loss is
recognised immediately in profit or loss to the extent
that it eliminates the impairment loss which has been
recognised for the asset in prior years.
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. The gains or loss on
disposal or retirement of the asset is determined
by comparing proceeds with the carrying amount.
These gains or losses are included in the Statement
of Profit or Loss and Other Comprehensive Income.
Depreciation
Depreciation is recognised so as to write off the cost
(other than freehold land) less their residual values
over the useful lives, using the diminishing value
method. The depreciation rates used for each class
of depreciable assets are as follows:
Class of fixed assets
Depreciation rate
Computer equipment
Office furniture and fittings
Motor vehicles
Plant and equipment
37.5%
10 – 40%
20 – 30%
10 – 30%
The assets’ residual values and useful lives are
reviewed, and adjusted if appropriate, at each
balance date.
An asset’s carrying amount is written down
immediately to its recoverable amount if the asset’s
carrying amount is greater than its estimated
recoverable amount.
MADER GROUP 2021 ANNUAL REPORT
43
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
2.
Summary of Significant
Accounting Policies (continued)
Gains and losses on disposals are determined by
comparing proceeds with the carrying amount.
These gains or losses are included in the Statement
of Profit or Loss and Other Comprehensive Income.
When revalued assets are sold, amounts included
in the revaluation reserve relating to that asset are
transferred to retained earnings.
(e) Leases
Right of use assets
A right of use asset is recognised at the
commencement date of a lease. The right of use
asset is measured at cost, which comprises the
initial amount of the lease liability, adjusted for,
as applicable, any lease payments made at or
before the commencement date net of any lease
incentives received, any initial direct costs incurred,
an estimate of costs expected to be incurred for
dismantling and removing the underlying asset, and
restoring the asset.
Right of use assets are depreciated on a straight-
line basis over the unexpired period of the lease or
the estimated useful life of the asset, whichever
is the shorter. Where the Group expects to obtain
ownership of the leased asset at the end of the lease
term, the depreciation is over its estimated useful
life. Right of use assets are subject to impairment or
adjusted for any remeasurement of lease liabilities.
The Group determines whether a right of use asset is
impaired and accounts for any identified impairment
loss as described in the ‘Property, Plant and
Equipment’ policy above.
The Group has elected not to recognise a right of use
asset and corresponding lease liability for short-term
leases with terms of 12 months or less and leases of
low-value assets. Lease payments on these assets
are expensed to profit or loss as incurred.
Lease liabilities
A lease liability is recognised at the commencement
date of a lease. The lease liability is initially
recognised at the present value of the lease
4 4
payments to be made over the term of the lease,
discounted using the interest rate implicit in the
lease or, if that rate cannot be readily determined, the
Group’s incremental borrowing rate. Lease payments
comprise of fixed payment less any lease incentives
receivable, variable lease payments that depends
on an index or a rate, amounts expected to be paid
under residual value guarantees, exercise price of
a purchase option when the exercise of the option
is reasonably certain to occur, and any anticipated
termination penalties. The variable lease payments
that do not depend on an index or a rate are
expensed in the period in which they are incurred.
Lease liabilities are measured at amortised cost
using the effective interest method. The carrying
amounts are remeasured if there is a change in
the following:
• future lease payments arising from a change in an
index or a rate used
• residual guarantee
•
lease term
• certainty of a purchase option
• termination penalties
When a lease liability is remeasured, an adjustment
is made to the corresponding right of use asset, or to
the profit or loss if the carrying amount of the right
of use asset is fully written down.
(f)
Financial Instruments
Financial assets and financial liabilities are
recognised in the Group’s Statement of Financial
Position when the Group becomes a party to the
contractual provisions of the instrument.
Financial assets and financial liabilities are initially
measured at fair value, except for trade receivables
that do not have a significant financing component
which are measured at transaction price. Transaction
costs that are directly attributable to the acquisition
or issue of financial assets and financial liabilities
(other than financial assets and liabilities at fair value
through profit or loss) are added to or deducted
from the fair value of the financial assets or financial
liabilities, as appropriate, on initial recognition.
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au Transaction costs attributable to the acquisition of
financial assets or financial liabilities at fair value
through profit or loss are recognised immediately in
profit or loss.
Financial assets
All regular way purchases or sales of financial assets
are recognised and derecognised on a trade date
basis. Regular way purchases or sales are purchases
or sales of financial assets that require delivery
of assets within the time frame established by
regulation or convention in the marketplace.
All recognised financial assets are measured
subsequently in their entirety at either amortised
cost or fair value, depending on the classification of
financial assets.
The effective interest method is a method of
calculating the amortised cost of a debt instrument
and of allocating interest income over the relevant
period. For financial assets other than assets
that are credit-impaired on initial recognition, the
effective interest rate is the rate that exactly
discounts estimated cash receipts, excluding
expected credit losses, through the expected life of
the debt instrument or where appropriate a shorter
period to the gross carrying amount of the debt
instrument on initial recognition.
The amortised cost of a financial asset is the amount
at which the financial asset is measure at initial
recognition minus the principal repayments, plus
the cumulative amortisation using the effective
interest method of any difference between that
initial amount and the maturity amount, adjusted for
any loss allowance. The gross carrying amount of a
financial asset is the amortised costs of a financial
asset before adjusting for any loss allowance.
Interest income is recognised in profit or loss and is
included in the ‘Other Revenue’ line item.
The Group derecognises a financial asset only
when the contractual rights to the cash flows from
the asset expire, or when it transfers the financial
asset and substantially all the risks and rewards
of ownership of the asset to another entity. If the
Group neither transfers nor retains substantially all
the risks and rewards of ownership and continues
to control the transferred asset, the Group
recognises its retained interest in the asset and an
associated liability for amounts it may have to pay.
On derecognition of a financial asset measured at
amortised costs, the difference between the asset’s
carrying amount and the sum of the consideration
received and receivable is recognised in profit or loss.
Financial liabilities
Debt and equity instruments are classified
as either financial liabilities or as equity in
accordance with the substance of the contractual
arrangements and the definitions of a financial
liability and an equity instrument.
An equity instrument is any contract that evidences
a residual interest in the assets of an entity after
deducting all of its liabilities. Equity instruments
issued by the Group are recognised at the proceeds
received, net of direct issue costs.
All financial liabilities are measured subsequently at
amortised cost using the effective interest method.
The effective interest method is a method of
calculating the amortised cost of a financial liability
and of allocating interest expense over the relevant
period. The effective interest rate is the rate that
exactly discounts estimated future cash payments
(including all fees and points paid or received that
form an integral part of the effective interest rate,
transaction costs and other premiums or discounts)
through the expected life of the financial liability, or
(where appropriate) a shorter period, to the amortised
cost of a financial liability.
The Group derecognises financial liabilities when, and
only when, the Group’s obligations are discharged,
cancelled or have expired. The difference between
the carrying amount of the financial liability
derecognised and the consideration paid and payable
is recognised in profit or loss.
(g) Impairment of Financial Assets
The Group recognises a loss allowance for expected
credit losses (“ECLs”) on lease receivables, trade
receivables and contract assets. The amount of ECLs
MADER GROUP 2021 ANNUAL REPORT
45
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
is updated at each reporting date to reflect changes
in credit risk since initial recognition of the respective
financial instrument.
The ECLs are estimated using a provision matrix
based on the Group’s historical credit loss
experience, adjusted for factors that are specific
to the debtors, general economic conditions and an
assessment of both the current as well as forecast
direction of conditions at the reporting date, including
time value of money where appropriate.
In assessing whether the credit risk has increased
significantly since initial recognition, the Group
compares the risk of a default occurring at the
reporting date with the risk of a default occurring
at the date of initial recognition. In making this
assessment, the Group considers both quantitative
and qualitative information that is reasonable and
supportable, including historical experience and
forward-looking information that is available without
undue cost or effort. Forward-looking information
considered includes the future prospects of the
industries in which the Group’s debtors operate,
obtained from economic expert reports, financial
analysts, government bodies, relevant think-
tanks and other similar organisations, as well as
consideration of various external sources of actual
and forecast economic information that relate to the
Group’s core operations.
The Group regularly monitors the effectiveness of
the criteria used to identify whether there has been
a significant increase in credit risk and revises them
as appropriate to ensure that the criteria are capable
of identifying significant increase in credit risk before
the amount becomes past due.
The Group writes off a financial asset when there
is information indicating that the debtor is in severe
financial difficulty and there is no realistic prospect
of recovery, e.g. when the debtor has been placed
under liquidation or has entered into bankruptcy
proceedings. Financial assets written off may still be
subject to enforcement activities under the Group’s
recovery procedures, considering legal advice where
appropriate. Any recoveries made are recognised in
profit or loss.
46
(h) Short-Term and Other Long-Term Employee
Benefits
A liability is recognised for benefits accruing to
employees in respect of wages and salaries, annual
leave and sick leave in the period the related
service is rendered at the undiscounted amount of
the benefits expected to be paid in exchange for
that service.
Liabilities recognised in respect of other long-term
employee benefits are measured at the present
value of the estimated future cash outflows
expected to be made by the Group in respect
of services provided by employees up to the
reporting date.
(i)
Cash and Cash Equivalents
Cash and cash equivalents include cash on
hand, deposits held at call with banks and
other short-term highly liquid investments with
original maturities of three months or less. Bank
overdrafts are shown within financial liabilities in
current liabilities on the Statement of Financial
Position.
(j)
Goods and Services Tax (GST)
Revenues, expenses and assets are recognised net
of the amount of GST, except where the amount of
GST incurred is not recoverable from the taxation
authority. In these circumstances the GST is
recognised as part of the costs of acquisition of
the asset or as part of an item of the expense.
Receivables and payables in the Statement of
Financial Position are shown inclusive of GST. The net
amount of GST recoverable from, or payable to, the
tax authority is included within ‘Other Receivables
or Other Payables’ in the Statement of Financial
Position.
Cash flows are presented in the Statement of
Cash Flows on a gross basis. The GST component
of cashflows arising from investing and financing
activities which is recoverable from, or payable to,
the taxation authority is classified within operating
cash flows.
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au For the purpose of presenting consolidated financial
statements, the assets and liabilities of the Group’s
foreign operations are translated at exchange rates
prevailing on the reporting date. Income and expense
items are translated at the average exchange rates
for the period, unless exchange rates fluctuate
significantly during that period, in which case the
exchange rates at the date of transactions are used.
Exchange differences arising, if any, are recognised
in other comprehensive income and accumulated in
a foreign exchange translation reserve (attributed to
non-controlling interests as appropriate).
On the disposal of a foreign operation (i.e. disposal of
the Group’s entire interest in a foreign operation, or
a disposal involving loss of control over a subsidiary
that includes a foreign operation of which the
retained interest becomes a financial asset), all the
exchange differences accumulated in a foreign
exchange translation reserve in respect of that
operation attributable to the owners of the Company
are reclassified to profit or loss.
(k) Borrowing Costs
Borrowing costs directly attributable to the
acquisition, construction or production of an asset
that necessarily takes a substantial period of time to
get ready for its intended use or sale are capitalised
as part of the cost of the asset. All other borrowing
costs are recognised in profit or loss in the year in
which they occur.
(l)
Foreign Currency Translation
In preparing the financial statements of the
Group entities, transactions in currencies other
than the entity’s functional currency (foreign
currencies) are recognised at the rates of exchange
prevailing on the dates of the transactions. At
each reporting date, monetary assets and liabilities
that are denominated in foreign currencies are
retranslated at the rates prevailing at that date.
Non-monetary Items carried at fair value that are
denominated in foreign currencies are translated
at the rates prevailing at the date when the fair
value was determined. Non-monetary items that
are measured in terms of historical cost in a foreign
currency are not retranslated.
Exchange differences are recognised in profit or loss
in the period in which they arise except for:
• Exchange differences on foreign currency
borrowings relating to assets under construction
for future productive use, which are included in the
cost of those assets when they are regarded as
an adjustment to interest costs on those foreign
currency borrowings
• Exchange differences on monetary items
receivable from or payable to a foreign operation
for which settlement is neither planned nor likely
to occur in the foreseeable future (therefore
forming part of the net investment in the foreign
operation), which are recognised initially in other
comprehensive income and reclassified from
equity to profit or loss on disposal or partial
disposal of the net investment.
MADER GROUP 2021 ANNUAL REPORT
47
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
2.
Summary of Significant
Accounting Policies (continued)
In addition, in relation to a partial disposal of a
subsidiary that includes a foreign operation that
does not result in the Group losing control over the
subsidiary, the proportionate share of accumulated
exchange differences are re-attributed to non-
controlling interests and are not recognised in profit
or loss. For all other partial disposals (i.e. partial
disposals of associates or joint arrangements that
do no result in the Group losing significant influence
or joint control), the proportionate share of the
accumulated exchange differences is reclassified
to profit or loss.
(m) Revenue Recognition
The Group derives revenue from labour hire
and support and maintenance services to the
mining sector. Revenue is measured based on the
consideration to which the Group expects to be
entitled in a contract with a customer and excludes
amounts collected on behalf of third parties. The
Group recognises revenue when it transfers control
of a product or service to a customer.
Services revenue
Contracts entered into can cover services which
may involve various different processes or servicing
of related assets. Where these processes and
activities are highly interrelated, and the Group
provides a significant service of integration for
these activities, they are taken as one performance
obligation. The transaction price is allocated across
each performance obligation based on contracted
prices. Variable consideration may be included in
the transaction price. The performance obligation is
fulfilled over time as the Group enhances the assets
which the customer controls, for which the Group
has no alternative use and has a right to payment for
performance to date.
Revenue is recognised in the accounting period
in which services are rendered. Customers are in
general invoiced for an amount that is calculated
based on agreed contract terms in accordance
with stand-alone selling prices for each
performance obligation.
48
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au (n) Adoption of New and Amended Standards and Interpretations
Impact of the initial application of new and amended Standards that are effective for the current year
In the current year, the Group has applied a number of amendments to the Australian Standards and
Interpretations issued by the Australian Standards Board (“AASB”) that are effective for an annual period that
begins on or after 1 July 2020. Their adoption has not had any material impact on the disclosures or on the
amounts reported in these financial statements.
Amending Standard
Description
AASB 2018-7
Amendments to
Australian Accounting
Standards – Definition
of Material
The Group has adopted these amendments for the first time in the current year. The
amendments make the definition of material in AASB 101 easier to understand and are not
intended to alter the underlying concept of materiality in Australian Accounting Standards. The
concept of ‘obscuring’ material information with immaterial information has been included as part
of the new definition.
The threshold for materiality influencing users has been changed from ‘could influence’ to ‘could
reasonably be expected to influence’. The definition of material in AASB 108 has been replaced
by a reference to the definition of material in AASB 101. In addition, the Standard also amends
other Australian Accounting Standards and the Conceptual Framework that contain a definition
of ‘material’ or refer to the term ‘material’ to ensure consistency.
AASB 2019-1
Amendments to
Australian Accounting
Standards – References
to the Conceptual
Framework
The Group has adopted the amendments included in AASB 2019-1 for the first time in the
current year. The amendments include consequential amendments to affected Australian
Accounting Standards, Interpretations and other pronouncements to reflect the issuance of the
Conceptual Framework for Financial Reporting (the “Conceptual Framework”) by the AASB.
The amendments include:
• Framework or to clarify which version is being referenced. These amendments apply to for-
profit private sector entities that have public accountability and are required by legislation
to comply with Australian Accounting Standards and other for-profit entities that voluntarily
elect to apply the new Conceptual Framework
• Permit other entities to continue using the Conceptual Framework adopted by the AASB
AASB 2019-5
Amendments to
Australian Accounting
Standards – Disclosure
of the Effect of New
IFRS Standards Not Yet
Issued in Australia
This standard makes amendments to AASB 1054 Additional Australian Disclosures by adding
a disclosure requirement for an entity intending to comply with IFRS Standards to disclose the
information specified in AASB 108 Accounting Policies, Changes in Accounting Estimates and
Errors on the potential effect of an IFRS standard that has not yet been issued by the AASB. The
Group has adopted these amendments for the first time in the current year.
MADER GROUP 2021 ANNUAL REPORT
49
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
2.
Summary of Significant Accounting Policies (continued)
New and revised Australian Accounting Standards and Interpretations on issue but not yet effective.
At the date of authorisation of the financial statements, the Group has not applied the following new and
revised Australian Accounting Standards, Interpretations and amendments that have been issued but are not
yet effective:
Standard / amendment
AASB2014-10 Amendments to Australia Accounting Standards – Sale or Contribution of Assets
between an investor and its Associate or Joint Venture and AASB 2015-10 Amendments to
Australian Accounting Standards – Effective Date of Amendments to AASB10 and AASB 128
AASB 2020-1 Amendments to Australian Accounting Standards – Classification of Liabilities as
Current or Non-Current and AASB 2020-6 Amendments to Australian Accounting Standards –
Classification of Liabilities as Current or Non-Current – Deferral of Effective Date
AASB 2020-3 Amendments to Australian Accounting Standards – Annul Improvements 2018-
2020 and Other Amendments
AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting
Policies and Definition of Accounting Estimates
Effective for annual
reporting periods
beginning on or after
1 January 2022
1 January 2022
1 January 2022
1 January 2023
In addition, at the date of authorisation of the financial statements, the following IASB Standards and IFRS
Interpretations Committee Interpretations were on issue but not yet effective, but for which Australian
equivalent Standards and Interpretations have not yet been issued:
Standard / amendment
Deferred Tax related to Assets and Liabilities arising from a Single Transaction – Amendments to
IAS 12
Effective for annual
reporting periods
beginning on or after
1 January 2023
3. Critical Accounting Judgements and Key Sources of Estimation Uncertainty
In applying the Group’s accounting policies, which are described above, management are required to make
judgements that have a significant impact on the amounts recognised and to make estimates and assumptions
about the carrying amounts of assets and liabilities that are not readily apparent from other sources. The
estimates and associated assumptions are based on historical experience and other factors that are considered
to be relevant. Actual results may differ from these estimates.
The estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates
are recognised in the period in which the estimate is revised if the revision affects only that period, or in the
period of the review and future periods if the revision affects both current and future periods.
The following are the critical judgements and estimations that management have made in the process of applying
the Group’s accounting policies and that have the most significant effect on the amounts recognised in the
financial statements:
• Assessment and impairment of property, plant and equipment (Note 2(d))
• Estimation of expected useful lives of property, plant and equipment (Note 2(d))
• Estimation of allowance for expected credit losses on financial assets (Note 2(g))
50 MADER GROUP 2020 ANNUAL REPORT
madergroup.com.au
4. Revenue
Operating Revenue
Maintenance services
Hire recoveries
Direct expense recoveries
Total operating revenue
Other income
Interest income
Other income
Total other income
5. Expenses
Expenses
Depreciation
Employee benefits expense
IPO costs
Finance costs
Interest expense
Other finance costs
2021
$’000
2020
$’000
288,170
260,434
992
15,139
1,793
11,320
304,300
273,547
19
777
795
6
592
598
2021
$’000
2020
$’000
7,526
216,287
-
6,602
168,602
856
1,143
284
1,519
216
MADER GROUP 2021 ANNUAL REPORT
51
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
6. Tax
(a) Income tax expense
Components of income tax expense
Current income tax expense
Deferred tax expense
Under/(over) provision in respect of prior year
Numerical reconciliation of income tax expense to prima facie tax payable
Profit before income tax
Tax at the Australian tax rate of 30% (2020 - 30%)
Tax effect of amounts which are not deductible (taxable) in calculating taxable income:
• Non-deductible expenses
• Differences in foreign tax rates
• Other
Under / (over) provision in prior year
(b) Deferred tax
Deferred tax assets:
The balance comprises temporary differences attributed to:
• Lease liabitity
• Accrued expenses and provision
• Employee leave entitlements
• Tax losses
• Other
Deferred tax liabilities
The balance comprises temporary differences attributed to:
• Accrued revenue and prepayment
• Right of use asset
• Property, plant and equipment
• Other
2021
$’000
2020
$’000
10,125
(1,760)
(928)
7,437
26,779
8,034
38
(334)
627
(928)
7,437
1,018
2,175
937
480
462
5,072
-
1,009
1,442
(50)
2,401
7,102
404
(99)
7,407
24,911
7,473
34
(306)
305
(99)
7,407
-
853
578
217
360
2,008
4
-
1,093
-
1,097
52
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au (c) Reconciliations
2021
Deferred tax assets
Lease liability
Accrued expenses and provision
Employee leave entitlements
Tax losses
Other
Deferred tax liabilities
Accrued revenue and prepayment
Right of use asset
Property, plant and equipment
Other
2020
Deferred tax assets
Accrued expenses and provision
Employee leave entitlements
Tax losses
Other
Deferred tax liabilities
Accrued revenue and prepayment
Property, plant and equipment
Other
Opening
balance
$’000
Recognised in
Profit or Loss
$’000
Charged to tax
provision
$’000
Closing
balance
$’000
-
853
578
217
360
2,008
4
-
1,093
-
1,097
889
293
159
555
1,896
45
504
-
549
1,018
1,322
359
263
102
3,064
(4)
1,009
349
(50)
1,304
138
34
34
(25)
181
(35)
625
(4)
586
-
-
-
-
-
-
-
-
-
-
-
(174)
251
24
(170)
(69)
(6)
(36)
4
(38)
1,018
2,175
937
480
462
5,072
-
1,009
1,442
(50)
2,401
853
578
217
360
2,008
4
1,093
-
1,097
MADER GROUP 2021 ANNUAL REPORT
53
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
7. Segment Information
Management has determined that the strategic operating segments comprise of Australia, United States, Rest
of World and Corporate. These reporting segments provide a balanced view of cross-operational performance
across business units, recognising and compensating for inter-regional differences in relation to technical
methodologies and processes, the cost of labour, the existence of competition and differing customer
requirements that may affect product pricing.
Segment information provided to the Chief Executive Officer for the year ended 30 June 2021 is as follows:
Australia
$’000
United
States
$’000
Rest of
World
$’000
Corporate
Total
$’000
$’000
260,154
22,057
5,959
991
12,166
930
-
2,140
16
-
833
(173)
274,241
24,213
6,619
29,390
(5,909)
23,481
(1,062)
(6,013)
16,406
6,772
(1,271)
5,501
(168)
(1,033)
4,300
2,217
(39)
2,178
(30)
(898)
1,250
-
-
-
22
22
(2,647)
(307)
(2,954)
(167)
507
(2,614)
288,170
991
15,139
795
305,095
35,732
(7,526)
28,206
(1,427)
(7,437)
19,342
92,622
50,173
15,701
5,795
4,818
1,361
8,065
3,205
121,206
60,534
2021
Financial performance
Maintenance services
Hire recoveries
Direct expense recoveries
Other revenue
Revenue
EBITDA
Depreciation and amortisation
EBIT
Finance costs
Income tax (expense)/benefit
Net profit after tax
Other Segment Information
Assets
Liabilities
5 4
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au 2020
Financial performance
Maintenance services
Hire recoveries
Direct expense recoveries
Other revenue
Revenue
EBITDA
Depreciation and amortisation
EBIT
Finance costs
Income tax (expense)/benefit
Net profit after tax
Other Segment Information
Segment assets
Segment liabilities
Australia
$’000
United
States
$’000
Rest of
World
$’000
Corporate
Total
$’000
$’000
235,868
12,096
12,470
1,793
9,247
350
-
1,730
3
-
343
231
247,258
13,829
13,044
29,193
(5,335)
23,858
(1,199)
(6,875)
15,784
3,059
(914)
2,145
(156)
(469)
1,520
2,106
(58)
2,048
7
(388)
1,667
-
-
-
14
14
(1,332)
(295)
(1,627)
(165)
325
(1,467)
260,434
1,793
11,320
598
274,145
33,026
(6,602)
26,424
(1,513)
(7,407)
17,504
75,598
44,187
6,933
5,655
10,255
1,153
7,961
1,635
100,747
52,630
8. Earnings Per Share (EPS)
Basic and diluted earnings per share (cents)
2021
$’000
9.67
2020
$’000
8.75
Net profit used in the calculation of basic and diluted earnings per share ($’000)
19,342
17,504
Weighted average number of shares used in the calculation of basic and diluted EPS
(shares)
200,000
200,000
MADER GROUP 2021 ANNUAL REPORT
55
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
9. Dividends
Dividends paid
Dividends declared and paid during the year
• Final fully franked ordinary dividend for the year ended 30 June 2019 franked at the
tax rate of 30%
•
Interim fully franked ordinary dividend for the year ended 30 June 2020 of 1.5 cents
per share paid on 17 September 2020 franked at the tax rate of 30%
• Final fully franked ordinary dividend for the year ended 30 June 2020 of 1.5 cents
per share paid on 17 September 2020 franked at the tax rate of 30%
•
Interim fully franked ordinary dividend for the year ended 30 June 2021 of 1.5 cents
per share paid on 17 March 2021 franked at the tax rate of 30%
2021
$’000
2020
$’000
-
-
3,000
3,000
6,000
2,000
2,280
-
-
4,280
Dividends declared after 30 June 2021
• The Company has resolved to declare a final fully franked ordinary dividend of 1.5
cents per share payable on 28 September 2021 franked at the tax rate of 30%
3,000
-
Franking account balance
Dividends declared and paid during the year
• Franking credits available for subsequent financial years as at 30 June 2021
•
Imputation debits that will arise from the payments of dividends declared but not
recognised in the financial statements
• Adjusted franking account balance
5,472
(1,286)
4,186
1,186
-
1,186
56
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au 10. Cash and Cash Equivalents
Reconciliation of cash flow from operations with Profit after Income Tax
Profit for the year
Depreciation
Share of profit from associates
Gain/(loss) on disposal of property, plant and equipment
Impact of foreign exchange
Change in assets and liabilities:
(Increase)/Decrease in trade and other receivables
(Increase)/Decrease in other assets
(Increase)/Decrease in deferred tax assets
(Decrease)/Increase in trade and other payables
(Decrease)/Increase in provisions
(Decrease)/Increase in tax liability
(Decrease)/Increase in deferred tax liability
Net cash flow from operating activities
11. Trade and Other Receivables
Trade receivables
Other receivables
Allowance for expected credit losses
2021
$’000
2020
$’000
19,342
7,526
(1,004)
3
(455)
(12,360)
298
(1,759)
2,645
652
1,267
-
16,155
2021
$’000
67,499
700
(318)
67,881
17,504
6,602
-
(36)
-
(555)
63
(112)
(4,993)
764
616
548
20,401
2020
$’000
53,946
1,630
(55)
55,521
Trade receivables are non-interest bearing and are generally on terms between 30 and 90 days.
MADER GROUP 2021 ANNUAL REPORT
57
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
12. Other Assets
Current
Prepayments
Other
Non-current
Other
2021
$’000
877
79
956
320
320
13. Property Plant and Equipment
Buildings and
property
$’000
Office furniture
and equipment
$’000
Plant equipment and
motor vehicles
$’000
2021
Cost
Accumulated depreciation
Movement in property, plant and equipment
At 1 July 2020
Additions
Disposals
Depreciation
650
(233)
417
483
19
-
(85)
417
1,744
(846)
898
794
364
(34)
(226)
898
59,060
(23,453)
35,607
31,265
10,914
(94)
(6,478)
35,607
Buildings and
property
Office furniture
and equipment
Plant equipment
and motor vehicles
$’000
$’000
$’000
2020
Cost
Accumulated depreciation
Movement in property, plant and equipment
At 1 July 2019
Additions
Disposals
Depreciation
58
631
(148)
483
530
31
-
(78)
483
1,409
(621)
788
782
189
-
(177)
794
48,246
(16,975)
31,271
24,935
13,776
(1,704)
(5,742)
31,265
2020
$’000
1,074
167
1,241
335
335
Total
$’000
61,454
(24,532)
36,922
32,542
11,297
(128)
(6,789)
36,922
Total
$’000
50,286
(17,744)
32,542
26,247
13,996
(1,704)
(5,997)
32,542
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au
14. Investment in Associates
Country of Incorporation
2021
2020
% of Equity Interest
Western Plant Hire Holdings Limited
Australia
25%
-
In the current year, Mader Group acquired a 25% equity interest in Western Plant Hire Holdings Limited for cash
consideration of $3.5m. Transaction costs associated with the investment were not material. The associate
is accounted for using the equity method in these consolidated financial statements as set out in the Group’s
accounting policies. The summarised financial information in respect of the associate is set out below and
represents the amounts in the associate’s financial statements prepared in accordance with the Australian
Accounting Standards.
Statement of Financial Position
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Issued capital
Retained earnings
Total equity
Statement of Financial Performance
Revenue
Profit for the year
Other comprehensive income
Total comprehensive income
Reconciliation to carrying amount of interest:
Net assets of associate
Proportion of the Group’s ownership interest
Goodwill
Associates that are not individually material
Carrying amount of Group’s Interest
2021
$’000
12,907
42,416
55,323
14,876
24,008
38,884
16,439
8,965
7,474
16,439
17,268
4,048
-
4,048
16,439
4,110
393
148
4,651
2020
$’000
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
57
57
MADER GROUP 2021 ANNUAL REPORT
59
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
15. Right of Use Assets
Buildings and property:
Cost
Accumulated depreciation
Opening balance
Additions
Depreciation expense
Foreign exchange
Amounts recognised in profit or loss:
Depreciation expense on right of use asset
Interest expense on lease liabilities
Expense relating to short-term leases or low value assets
16. Trade and Other Payables
Trade payables
Accrued expenses
Other payables
Trade payables are non-interest bearing and are normally settled on 30-day terms.
17. Provisions
Current
Provision for annual leave
Non-current
Provision for long service leave
60
2021
$’000
4,884
(1,385)
3,499
2,587
1,641
(737)
8
3,499
737
145
283
2021
$’000
1,970
10,364
9,209
21,543
2020
$’000
3,216
(629)
2,587
3,092
-
(505)
-
2,587
505
126
218
2020
$’000
1,659
7,617
9,622
18,898
2021
$’000
2020
$’000
1,670
1,670
888
888
1,307
1,307
599
599
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au 18. Borrowings
Current
Secured borrowings – asset financing
Secured borrowings – working capital
Unsecured borrowings – Other
Non-current
Secured borrowings – asset financing
Unsecured borrowings – Other
The Group has access to the following lines of credit:
Facilities used:
Secured borrowings – asset financing
Secured borrowings – working capital
Unsecured borrowings – Other
Facilities not used:
Secured borrowings – asset financing
Secured borrowings – working capital
Unsecured borrowings – Other
Facilities available:
Secured borrowings – asset financing1
Secured borrowings – working capital1
Unsecured borrowings – Other
2021
$’000
2020
$’000
7,616
10,689
732
19,037
7,730
392
8,122
2021
$’000
15,346
10,689
1,124
27,159
9,654
28,972
-
7,751
5,638
388
13,777
10,618
520
11,138
2020
$’000
18,369
5,638
908
24,915
-
16,362
-
38,626
16,362
25,000
39,660
1,124
65,784
18,369
22,000
908
41,277
1 In the current reporting period, $25m of the asset financing and $40m of the working capital facilities are part
of a multi borrower facility which is subject to a yearly annual review and financial covenants measured on the
reporting dates of 31 December and 30 June. In addition, there is a general security charge over the current
and future assets of the obligor group of Mader Group. As at 30 June 2021, the Group is in compliance with its
financial covenants.
MADER GROUP 2021 ANNUAL REPORT
61
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
19. Issued Capital
Issued Capital
200,000,000
200,000,000
2
30 June
2021
Number of
shares
30 June
2020
Number of
shares
30 June
2021
$’000
30 June
2020
$’000
2
Ordinary shares
Fully paid ordinary shares carry one vote per share and entitle the holder to participate in dividends and the
proceeds on the winding up of the company in proportion to the number of and amounts paid on the shares
held. The fully paid ordinary shares have no par value and the Company does not have a limit on the amount of
authorised capital.
20. Reserves
Nature and purpose of reserves
The foreign currency translation reserve is used to record exchange differences arising from the translation of
foreign operations with functional currencies other than those of the presentation currency of these financial
statements.
21. Financial Instruments
Financial risk management objectives
In common with all other businesses, the Group is exposed to risks that arise from its use of financial instruments
which include foreign currency risk, interest rate risk, credit risk and liquidity risk. This note describes the Group’s
objectives, policies and processes for managing those risks and the methods used to measure them. Further
quantitative information in respect of these risks is presented throughout these financial statements.
The Group’s principal financial liabilities comprise borrowings, lease liabilities and trade and other payables. The
main purpose of these financial liabilities is to finance the Group’s operations. The Group’s principal financial
assets include trade and other receivables and cash and cash equivalents that derive directly from its operations.
The overall risk management program focuses on the unpredictability of financial markets and seeks to minimise
potential adverse effects on the financial performance of the business. Different methods are used to measure
different types of risk to which the Group is exposed to. These methods include age analysis in the case of credit
risk and monitoring market rates in the case of interest rate risk.
Risk management is carried out by the finance function under principles and parameters approved by the Board
of Directors. The finance function identifies and evaluates financial risks in close co-operation with the Group’s
operating units.
Foreign currency risk
The Group operates internationally and undertakes transactions denominated in foreign currencies, primarily with
respect to the US dollar. Consequently, exposures to exchange rate fluctuations arise as a result of transactions
that are denominated in a currency other than the Group’s functional currency. To minimise the risk, management
utilises a natural hedge by ensuring both the customer contracts and recoverable costs are denominated in the
same foreign currency. As a result, the impact to the profit or loss would be immaterial.
62
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au Interest rate risk
Interest rate risk is the risk that the fair value of future cash flows of a financial instrument will fluctuate because
of changes in market interest rates. The Group’s exposure to the risk of changes in market interest rates relates
primarily to the Group’s long-term debt obligations based on floating interest rates. Manages the interest rate
risk by having a balanced portfolio of fixed and variable rate loans and borrowings and analyses its interest rate
exposure on an ongoing basis.
Fixed interest rate maturing within
Weighted
average
interest rate
Floating
interest rate
$’000
1 year or less
$’000
Over 1 year
$’000
Non-interest
bearing
$’000
Total
$’000
2021
Financial assets
Cash and cash equivalents
5.4%
Trade and other receivables
Financial Liabilities
Trade and other payables
Lease liabilities
Borrowings
-
-
4.3%
3.3%
2020
Financial assets
Cash and cash equivalents
4.5%
Trade and other receivables
Financial Liabilities
Trade and other payables
Lease liabilities
Borrowings
-
-
4.3%
6.8%
3,209
-
3,209
-
-
10,689
10,689
6,456
-
6,456
-
-
5,638
5,638
-
-
-
-
-
-
-
-
549
8,348
8,897
3,134
8,123
11,257
-
67,881
67,881
21,543
-
-
3,209
67,881
71,090
21,543
3,683
27,159
21,543
52,385
-
-
-
-
491
8,139
8,630
-
-
-
-
2,096
11,138
-
55,521
55,521
6,456
55,521
61,977
18,898
-
-
18,898
2,587
24,915
13,234
18,898
46,400
A sensitivity analysis has not been disclosed in relation to the floating interest rate financial instruments as the
net results of a reasonable change in interest rates has been determined to be immaterial to the profit or loss.
MADER GROUP 2021 ANNUAL REPORT
63
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
Credit risk
Credit risk is the risk that a counterparty will not meet its obligation under a financial instrument or customer
contract, leading to a financial loss. The Group is exposed to credit risk from its operating activities (primarily
trade receivables) and from its financing activities, including deposits with banks and financial institutions. The
credit risk associated with the Group’s financing activities is limited because counterparties are banks with high
credit ratings assigned by international credit-rating agencies.
As the Group’s activities are largely focused on the mining and mining services industry, its credit risk for
trade receivables is concentrated in this sector. The Group’s exposure to credit risk for trade receivables is
influenced mainly by the individual characteristics of each customer. However, management also considers
the demographics of the Group’s customer base, including the default risk of the industry and country in which
customers operate. To further minimise the Group’s credit risk exposure, transactions are entered into with a
number of key operators within the resources industry. During the financial year two customers individually
contributed greater than 10% of group revenue.
Individual risk exposures are set for customers in accordance with specified limits established by management
based on independent credit reports, financial information, credit references and the Group’s credit and trading
history with the customer. Outstanding trade receivables are regularly monitored with focus being placed on
customers that exceed their credit terms and who are not within the specified limits established by management.
Refer to the ‘Trade and Other Receivables’ note for further details on the expected credit loss allowance
recognised. The maximum exposure to credit risk, without considering the value of any collateral or other
security, in the event that other parties fail to perform their obligations is the carrying amount of the financial
assets as indicated in the Statement of Financial Position.
Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations when they fall due. The
Group’s objective is to maintain a balance between continuity of funding and flexibility through the use of its
available financing facilities. The Group has established a number of policies and processes for managing liquidity
risks which include:
• maintaining adequate borrowing and finance facilities
• monitoring the maturity profiles of financial assets and liabilities in order to match inflows and outflows
The table below summarises the maturity profile of the Group’s financial liabilities based on contractual
undiscounted payments:
1 year or
lesss
$’000
1 to 5 years
5 years or
mores
Contractual
cash flows
Carrying
amount
$’000
$’000
$’000
$’000
21,543
697
19,362
41,602
18,898
491
13,918
33,307
-
2,657
8,224
10,881
-
2,096
11,077
13,173
-
947
-
947
-
-
-
-
21,543
4,301
27,586
53,430
18,898
2,587
24,995
46,480
21,543
3,683
27,159
52,385
18,898
2,587
24,915
46,400
2021
Trade and other payables
Lease liabilities
Borrowings
2020
Trade and other payables
Lease liabilities
Borrowings
64
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au 22. Commitments and Contingencies
(a) Capital Expenditure Commitments
Capital Commitments
Committed at the reporting date but not recognised as liabilities:
• Property, plant and equipment
(b) Contingencies
There is no contingent assets or liabilities as at 30 June 2021 (2020: nil).
23. Auditors’ Remuneration
BDO Audit (WA) Pty Ltd and related network firms
Audit and review of financial statements
• Group
• Subsidiaries
Non-audit services
• Taxation compliance services
• Consulting services
Total services provided by BDO
Remuneration of other auditors and their related network firms
Audit and review of financial statements
• Subsidiaries
Non-audit services
• Taxation compliance services
Total services provided by other auditors
Total auditor’s remuneration
2021
$’000
2020
$’000
15,438
15,438
-
-
2021
$
2020
$
104,892
17,125
122,017
44,260
-
44,260
166,277
112,000
30,000
142,000
141,948
45,021
186,969
328,969
30,798
21,573
-
30,798
6,330
27,903
197,075
356,872
MADER GROUP 2021 ANNUAL REPORT
65
N O T E S T O T H E F I N A N C I A L S T A T E M E N T S
24. Subsidiaries
The consolidated financial statements of the Group include:
Country of Incorporation
2021
2020
% of Equity Interest
Mader Contracting Pty Ltd
Mader Queensland Pty Ltd
Mader Services Pty Ltd
Mader Plant Hire Pty Ltd
Mader Corporation
Australia
Australia
Australia
Australia
USA
Neto Crystal Worldwide Company Limited
British Virgin Islands
Mader International Limited
Global Maintenance Solutions Pte Ltd
MI Mechanical Limited
Mader Gobi LLC
Mader Mechanical Limited
Mader Chile SPA
Mader DRC SARLU
Mader Mining (Canada) Limited
Mader PNG Limited
25. Parent Entity Information
Hong Kong
Singapore
Mauritius
Mongolia
Zambia
Chile
Democratic Republic of Congo
Canada
Papua New Guinea
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Issued capital
Retained earnings
Total equity
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
2021
$’000
859
13,856
14,715
2,089
301
2,390
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
2020
$’000
1,111
4,130
5,241
2,740
-
2,740
12,325
2,501
1
12,324
12,325
1
2,500
2,501
Profit/(Loss) after income tax for the year
15,430
(3,256)
66
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au
26. Deed of Cross Guarantee
As at 30 June 2021 and 30 June 2020, the Group has not entered into a deed of cross guarantee in relation to
the debts of its subsidiaries.
27. Related Party Information
(a) Parent entity
The parent entity is Mader Group Limited, which is incorporated in Australia.
(b) Subsidiaries
Interests in subsidiaries are disclosed in the note ‘Subsidiaries’.
(c) Key management personnel compensation
Short-term employee benefits
Post-employment benefits
Other long-term benefits
2021
$’000
2,163
111
5
2,279
2020
$’000
1,619
86
32
1,737
Detailed remuneration disclosures are provided in the Remuneration Report.
(d) Loans and other transactions with key management personnel
There were no loans to or other transactions with Directors and executives during the financial year ended 30
June 2021.
28. Events After the End of the Reporting Period
On 23 August 2021, the Company declared a final fully franked dividend of 1.5 cents per share. The total value
of the dividend payment is $3.0m. The record date is 7 September 2021 with a payment date of 28 September
2021.
Other than the matter described above, there have been no other matters or circumstances that have arisen
after the reporting period that have 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 periods.
MADER GROUP 2021 ANNUAL REPORT
67
6868
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au Director’s Declaration
In the Directors opinion:
1. The financial statements, comprising the consolidated statement of profit or loss and other comprehensive
income, consolidated statement of financial position, consolidated statement of cash flows, consolidated
statement of changes in equity and accompanying notes are in accordance with the Corporations Act 2001,
including:
(a) Complying with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements; and
(b) Giving a true and fair view of the Group’s financial position as at 30 June 2021 and of the performance for
the financial year ended on that date.
2. The financial statements and notes also comply with International Financial Reporting Standards as disclosed
in Note 1.
3. The remuneration disclosures contained in the Remuneration Report in the Directors’ Report comply with
section 300A of the Corporations Act 2001.
4. There are reasonable grounds to believe that the Group will be able to pay its debts as and when they become
due and payable.
The Directors have been given the declarations required by section 295A of the Corporations Act 2001.
This declaration is made in accordance with a resolution of the Board of Directors and is signed on behalf of the
Directors by:
Jim Walker
Non-Executive Chairman
Dated this 23rd day of August 2021
MADER GROUP 2021 ANNUAL REPORT
69
Independent Audit Report
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
INDEPENDENT AUDITOR'S REPORT
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
To the members of Mader Group Limited
INDEPENDENT AUDITOR'S REPORT
Report on the Audit of the Financial Report
To the members of Mader Group Limited
Opinion
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
38 Station Street
Subiaco, WA 6008
PO Box 700 West Perth WA 6872
Australia
We have audited the financial report of Mader Group Limited (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2021, the
Report on the Audit of the Financial Report
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
Opinion
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
to the financial report, including a summary of significant accounting policies and the directors’
We have audited the financial report of Mader Group Limited (the Company) and its subsidiaries (the
declaration.
Group), which comprises the consolidated statement of financial position as at 30 June 2021, the
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes
Act 2001, including:
to the financial report, including a summary of significant accounting policies and the directors’
(i)
declaration.
Giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
financial performance for the year ended on that date; and
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
(ii)
Act 2001, including:
Giving a true and fair view of the Group’s financial position as at 30 June 2021 and of its
financial performance for the year ended on that date; and
Basis for opinion
(i)
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
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
(ii)
Report section of our report. We are independent of the Group in accordance with the Corporations
Basis for opinion
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)
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
ethical responsibilities in accordance with the Code.
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
We confirm that the independence declaration required by the Corporations Act 2001, which has been
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
given to the directors of the Company, would be in the same terms if given to the directors as at the
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
time of this auditor’s report.
ethical responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
We confirm that the independence declaration required by the Corporations Act 2001, which has been
for our opinion.
given to the directors of the Company, would be in the same terms if given to the directors as at the
Key audit matters
time of this auditor’s report.
Key audit matters are those matters that, in our professional judgement, were of most significance in
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
our audit of the financial report of the current period. These matters were addressed in the context of
for our opinion.
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
Key audit matters
a separate opinion on these 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.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
BDO Audit (WA) Pty Ltd ABN 79 112 284 787 is a member of a national association of independent entities which are all members of BDO Australia Ltd ABN 77 050 110 275,
an Australian company limited by guarantee. BDO Audit (WA) Pty Ltd and BDO Australia Ltd are members of BDO International Ltd, a UK company limited by guarantee, and
form part of the international BDO network of independent member firms. Liability limited by a scheme approved under Professional Standards Legislation.
70 MADER GROUP 2020 ANNUAL REPORT
madergroup.com.au
Revenue Recognition
Key audit matter
How the matter was addressed in our audit
Revenue is disclosed in Note 2(m) and Note 4 of the
Our audit procedures included but were no limited to
financial report.
the following:
Revenue is generated from multiple streams and across
different geographic locations.
This area is a key audit matter as revenue is one of the
key drivers to the Group’s performance and there is a
significant volume of transactions included in revenue.
•
•
•
Assessing the Group’s revenue recognition
policy’s for compliance with AASB 15 Revenue
from Contract with Customers
Performing analytical procedures to understand
movements and trends in revenue for
comparisons against expectations;
Obtaining and evaluating credit notes issued
post year end and performing cut-off testing to
ensure revenue transactions around year end
have been recorded in the correct reporting
period;
•
Agreeing, for a sample of revenue transactions,
the amounts recorded by the Group to
supporting documentation to confirm the
existence and accuracy of the revenue
recognised and to consider whether the
transaction was recorded in the correct period;
and
•
Assessing the adequacy of the relevant
disclosures within the financial statements.
MADER GROUP 2021 ANNUAL REPORT
71
I N D E P E N D E N T A U D I T R E P O R T
I N D E P E N D E N T A U D I T R E P O R T
Other information
The directors are responsible for the other information. The other information comprises the
information in the Group’s annual report for the year ended 30 June 2021, but does not include the
financial report and the auditor’s report thereon.
Our opinion on the financial report does not cover the other information and we do not express any
form of assurance conclusion thereon.
In connection with our audit of the financial report, our responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent with the financial
report or our knowledge obtained in the audit or otherwise appears to be materially misstated.
If, based on the work we have performed, we conclude that there is a material misstatement of this
other information, we are required to report that fact. We have nothing to report in this regard.
Responsibilities of the directors for the Financial Report
The directors of the Company are responsible for the preparation of the financial report that gives a
true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001
and for such internal control as the directors determine is necessary to enable the preparation of the
financial report that gives a true and fair view and is free from material misstatement, whether due to
fraud or error.
In preparing the financial report, the directors are responsible for assessing the ability of the group 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 has 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 (http://www.auasb.gov.au/Home.aspx) at:
https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf
This description forms part of our auditor’s report.
72
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included on pages 26 to 32 of the directors’ report for the
year ended 30 June 2021.
In our opinion, the Remuneration Report of Mader Group Limited, for the year ended 30 June 2021,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit (WA) Pty Ltd
Phillip Murdoch
Director
Perth, 23 August 2021
MADER GROUP 2021 ANNUAL REPORT
73
7474
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au Shareholder Information
Additional information required by the Australian Securities Exchange and not shown elsewhere in this report is
as follows. The information is current as at 6 August 2021.
Distribution of Ordinary Shares
The number of shareholders, by size of holding, are:
Range
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Total
Number of holders
Number of shares
179
491
211
355
47
1,283
106,495
1,354,592
1,608,503
10,890,306
186,040,104
200,000,000
The number of shareholders holding less than a marketable parcel of ordinary shares is 47 (being 511 Shares as
at 6 August 2021).
Voting Rights
All ordinary shares carry one vote per share without restriction.
Restricted Securities
There are no restricted securities on issue.
Substantial Shareholders
The names of substantial shareholders who have notified the Company in accordance with section 671B of the
Corporations Act 2001 are:
Name
Number of shares
% of shares
1. Luke Mader, Amy Mader, and Maidment Bridge Farm Investments Pty Ltd1
112,000,000
2. Skye Alba Pty Ltd2
40,000,000
56.00%
20.00%
1 See ASX Announcement on 30 September 2019.
2 See ASX Announcement on 9 March 2021.
MADER GROUP 2021 ANNUAL REPORT
75
S H A R E H O L D E R I N F R O M A T I O N
Twenty Largest Shareholders
The names of the twenty largest registered holders of quoted ordinary shares are:
Name
1. MAIDMENT BRIDGE FARM INVESTMENTS PTY LTD
2. MR LUKE BENJAMIN MADER
3. SKYE ALBA PTY LTD
4. HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
5. MS AMY MADER
6. CITICORP NOMINEES PTY LIMITED
7.
8.
NATIONAL NOMINEES LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
9. GOTTERDAMERUNG PTY LIMITED
10. CAVES HOUSE HOLDINGS PTY LTD
11. BNP PARIBAS NOMINEES PTY LTD
12. B & R JAMES INVESTMENTS PTY LIMITED
13. HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
14. MR GREGORY ROSS MADER + MRS IRENE THERESE MADER
15. MR CHARLES DENTON KOCH
16. ROSALEA PTY LTD
17. BOND STREET CUSTODIANS LIMITED
18. BOTSIS HOLDINGS PTY LTD
19. GANG - GANG PTY LTD
20. W FAIRWEATHER & SON PTY LTD
Total
Securities Exchange Quotation
Number of shares
% of shares
63,750,000
42,500,000
40,000,000
9,556,444
5,750,000
5,474,555
4,185,454
2,939,174
1,848,000
1,390,000
824,966
600,000
426,671
420,000
400,000
350,000
307,095
300,000
300,000
300,000
31.88
21.25
19.00
4.78
2.88
2.74
2.09
1.47
1.00
0.92
0.70
0.41
0.30
0.21
0.21
0.20
0.18
0.15
0.15
0.15
181,622,359
90.81
The Company’s ordinary shares are listed on the Australian Securities Exchange (Code: MAD). The Home
Exchange is Perth.
On-market Share Buy-back
There is no current on-market buy-back.
Corporate Governance Statement
The Company’s Corporate Governance Statement for the 2021 financial year can be accessed at:
www.madergroup.com.au/investor-centre/corporate-governance
76
MADER GROUP 2021 ANNUAL REPORT madergroup.com.au WA
Perth Head Office
QLD
Brisbane Office
USA
Fort Collins Office
a
v
admin@madergroup.com.au
+61 8 9353 3393
a
v
admin@madergroup.com.au
+61 7 3059 6140
a
v
admin@madergroup.com
+1 970 889 1298
Perth Workshop
a
v
workshop@madergroup.com.au
+61 8 9353 3393
Kalgoorlie Office
a
v
admin@madergroup.com.au
+61 8 9353 3393
SA
Adelaide Office
a
v
admin@madergroup.com.au
+61 488 551 909
Reno Office
a
v
admin@madergroup.com
+1 970 889 1298
Cononsburg Office
a
v
admin@madergroup.com
+1 970 889 1298
O
www.madergroup.com.au