Annual Report
FINA NCIA L Y E A R 2023
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 technical services, 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 specialist technical services to the mining, energy and industrial sectors.
With a business model built on passion, knowledge, and commitment, every
decision is made with clients, employees and shareholders in mind.
Our Values
Backed by a 2,900+ 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
Luke Mader
Justin Nuich
Patrick Conway
Craig Burton
Company Secretary
Sarah Wilson
Executive Chairman & Founder
Executive Director & Chief Executive Officer
Executive Director
Non-Executive Director
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
Australia
National Australia Bank
100 St Georges Tce
Perth WA 6000
United States
UMB Bank
1670 Broadway
Denver CO 80202
Canada
RBC Royal Bank
20 King St West
Toronto M5H IC4
Auditors
BDO Audit (WA) Pty Ltd
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth WA 6000
Stock Exchange Listing
Australian Securities Exchange (ASX)
ASX Code: MAD
Company Websites
www.madergroup.com.au
www.madergroup.com
www.maderenergy.com
Contents
About Mader Group
Our Journey
Highlights
Made for Adventure
Chairman’s Letter
CEO's Report of Operations
Made for Impact
Made for our People
Three Gears
Directors’ Report
Remuneration Report - Audited
Auditor’s Independence Declaration
Consolidated Statement of Profit or 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 2023 ANNUAL REPORT
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About Mader Group
Mader Group Limited is a leading global provider of specialist technical
services across multiple industries. Powered by mechanically minded
specialists, the diversified group is dedicated to helping customers enhance
their operations through optimal fleet and plant performance.
Since 2005, Mader Group Limited (referred to
hereafter as Mader, Group or Company) has
grown and adapted to provide a wide range of
services, broadening its capacity and skillset
to comprehensively service a global network of
operations. Now servicing the mining, energy and
industrial sectors, Mader strategically tailors ‘tap
on, tap off’ technical services for more than 380
customers across 530+ locations worldwide.
Expanding its service fleet to more than 1,100
vehicles in FY23, Mader keeps heavy mobile
equipment and fixed infrastructure operating at
peak performance through in-field technical support,
major overhauls and repairs, preventative equipment
maintenance, training of maintenance teams and a
range of ancillary services.
The Company’s unique business model provides both
flexibility and stability to Mader and its customers
alike. With 2,900+ passionate employees, Mader is
able to mobilise highly specialised taskforces rapidly,
or as required, across Australia, Asia, Africa and
North America.
Headquartered in Perth, Western Australia,
Mader houses regional offices around the globe
ensuring easy access to local support for its valued
customers. Additionally, Mader has a world-class
maintenance centre in Perth which provides offsite
repairs, machine refurbishments and rebuilds,
specialised tool hire and a component exchange
program for operations throughout Australia.
2,900+
STAFF
Operating Worldwide
Specialist Maintenance
Mobile Plant
Equipment
Fixed
Infrastructure
Transport
& Logistics
Energy Sector
Power Generation
& Marine
2
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au Our Journey
2005 • Mader established by Executive Chairman, Luke Mader,
providing mechanical services to mining clients in the
Kimberley Region of Western Australia.
• Mader International launched as the business
expands globally to offer services in the major
mining regions of Africa and South East Asia.
2011
2015 • Ancillary division launched to supply complementary
services alongside core mechanical offerings.
• Expanded to Queensland, based out of Mackay.
• Employee headcount reached 500+.
• Expanded to offer services in New South Wales and South Australia.
• Started providing maintenance services for fixed infrastructure.
2017
2018 • Employee headcount reached 1,000+.
Fort Collins, Colorado.
• Expanded to the United States, based out of
• Mader lists on the Australian Securities Exchange (ASX).
• Mader Trade Upgrade Program launched to upskill Light Vehicle and
Heavy Road Transport Mechanics to Heavy Duty Diesel Mechanics.
2019
2020 • Mader celebrated 15-year anniversary.
Canonsburg, Pennsylvania.
• Mader opened offices in Reno, Nevada and
• Mader relocates from Mackay and opens an office in
Brisbane, Queensland.
• Justin Nuich appointed as Chief Executive Officer.
• Mader entered Canada, based out of Edmonton, Alberta.
• Organic start-up Mader Energy launched, based out of
Fort Worth, Texas.
2021
2022 • Mader’s Perth workshop moved to a new,
3,400m2 maintenance facility.
• Mader enhances two-way internal transfer program, Global Pathways.
• Mader continues to expand into multiple industry verticals; rail,
infrastructure maintenance, transport and logistics, energy, power
generation and marine.
2023
• Employee headcount reaches 2,900+.
MADER GROUP 2023 ANNUAL REPORT
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3
Highlights
" Mader’s operational strengths stem from a culture-led
business model that has been refined over many years.
It has empowered us to expand across multiple industry
verticals, whilst providing a superior service to customers
and unmatched career opportunities for our people.”
Justin Nuich,
Chief Executive Officer and Executive Director
Awards
Our People
2023 Finalist
30+ Specialist
Best Candidate Experience Initiative
Seek Talent Acquisition
Recognition (STAR) Awards
2022 Winner
Large Business of the Year
RISE Business Awards,
sponsored by Business News
2022 Winner
Employer of Choice
Australian Business Awards
2022 Excellence
Workplace Flexibility
Australian HR Awards
Skillsets
Supporting 380+ customers
across 8 countries
2,900+
Employees
Operating
Worldwide
200+ Apprentices
inducted throughout FY23
(in Trade Upgrade Program)
200+ Overseas
Transfers
Through unparalleled Global
Pathways Program
18 Years' Strong
Longstanding experience
and mining excellence
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MADER GROUP 2023 ANNUAL REPORT madergroup.com.au Our
Operations
1,100+
Service Vehicles
spanning four continents
530+
Locations
Providing technical
support across
more than 530
locations worldwide
380+Customers
Diverse network of customers
across multiple industries
25+ Services
Widening scope of specialist
services delivered globally
Industry
Verticals
Multiple
Operated in worldwide, with
a focus on optimising delivery
in these markets
8 Countries
Actively supporting
customers across
four continents
Organic start-ups
maturing
Canada and Mader Energy
experienced service and
geographical expansion
Our
Financials
$608.8M FY23
sales revenue
51%
FY23
revenue growth
$75.1M
56%
FY23 EBITDA
FY23
earnings* growth
$38.5M
FY23
NPAT
48%
FY23 NPAT*
growth
19.25
Basic earnings per share
FY23
~30% CAGR
Compound Annual
Growth Rate over 10 years
Low
Net Debt
and significant
financial flexibility
*Growth rates calculated based on FY22
adjusted results. See page 17 for calculation.
5
Alberta
Made for Adventure
Mader provides specialist technical services
across multiple industries throughout
Australia, Asia, Africa and the Americas.
Where We Work
Operations in FY23
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
S O U T H A U S T R A L I A
Roxby Downs
North Adelaide
North America
U S A
Alabama
Alaska
Arizona
Arkansas
California
Colorado
Florida
Georgia
Idaho
Illinois
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
Tanami Region
Gulf of Carpentaria
TA S M A N I A
Zeehan
Brisbane
Bowen Basin
Surat Basin
Far North Queensland
N E W S O U T H WA L E S
Hunter Valley
Gunnedah Basin
Riverina
Central and Far West
Indiana
Iowa
Kentucky
Louisiana
Massachusetts
Mississippi
Missouri
Montana
Nebraska
Nevada
New Mexico
North Carolina
North Dakota
Ohio
Oklahoma
Pennsylvania
South Carolina
Tennessee
Texas
Utah
West Virginia
Wyoming
Nevada
Asia
Indonesia
Mongolia
C A N A D A
Alberta
British Columbia
Philippines
Ontaria
Nunavut
North West Territories
Africa
Zambia
Oceania
Papua New Guinea
Christmas Island
Global Pathways
Connecting tradespeople
with incredible opportunities
across the world
Unmatched global
experiences across
four continents
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Alberta
Texas
Mongolia
Papua New Guinea
Queensland
Western Australia
Access to international
talent pools and the best
technicians worldwide
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Chairman’s Letter
Dear Shareholders, it’s hard to believe that after starting the business back in 2005 out of
my ute in the Kimberley, that I would be here today, as Executive Chairman and presenting
you Mader’s Annual Report for the financial year ended 30 June 2023 (FY23).
Before I comment on the year, I’d first like to thank
our outgoing Chairman, Mr. Jim Walker for his
valuable contribution to the Group during his tenure.
I have known Jim for more than 20 years, going back
to when I was an apprentice myself - and I couldn’t
think of anyone better suited to have guided the
business during its initial years as a publicly listed
company.
Having surpassed market guidance twice, this
year Mader reported $608.8 million in revenue,
representing 51% year on year growth. Our disruptive
business model continues to prove its effectiveness,
penetrating several new markets and regions to
deliver a ten-year compound annual growth rate of
30% - an exceptional result!
Our achievements would not be possible without
the hard work of our 2,900+ strong team, who work
around the clock to service our global customer base.
Although the days of greasy tools and sweaty engine
change outs are behind me, I know the hard work it
takes to get the job done, and for that, I am extremely
grateful for the commitment our people put in daily.
When I founded this business in 2005, it was my
goal to build a workplace that people would jump out
of bed for; one that promotes adventure, flexibility,
leadership and above-all, good times with even better
mates. I’m proud to say that I’ve seen this dream
become a reality over the last 18 years.
Luke Mader
Executive Chairman & Founder
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MADER GROUP 2023 ANNUAL REPORT madergroup.com.au We’re actively expanding our primary culture
programs, Global Pathways and Three Gears, which
are essential in upholding our foundational values.
Alongside 25 services in eight countries, every
individual has their own Mader story, largely shaped
by these programs, and rest assured – these are not
boring stories to tell!
As we continue to develop operations in North
America, our entry into Canada in particular has
been a standout for the financial year. Having been
involved in the start up of North America back in
2018, it is fantastic to see the team I worked with at
the time now taking their expertise across the border
to Canada and making it a success.
Whilst growth in North America has been exciting,
our Australian business continues to be our largest
contributor to the bottom line. With core mechanical
services still experiencing high demand, we are
diligently working to expand our ancillary offerings to
support customers across multiple industries.
For many years, market and geographical
diversification have been key priorities, with business
strength driven by our two-pronged objective of
diversifying revenue streams and offering enhanced
opportunities for our people. Backed by a proven
business model, a solid balance sheet and the
continued dedication of our incredible team, we are
primed for another remarkable year of success and
achievement.
On behalf of the Board, I would like to extend my
gratitude to our shareholders, customers and
workforce for their ongoing support. We have a
culture-led foundation, clear goals, and will continue
to challenge ourselves, set new benchmarks, create
unmatched opportunities for our people, and most
importantly, have fun along the way.
Yours sincerely,
Luke Mader
Executive Chairman & Founder
MADER GROUP 2023 ANNUAL REPORT
9
CEO's Report of Operations
As I reflect on the last financial year, I am immensely
proud of the significant achievements of the Mader
business; having successfully entered new markets
and regions, all whilst continuing to expand our core
service offering at a remarkable pace.
Our feats would not be possible without our
committed and hard-working team, and I would like
to extend my heartfelt appreciation to our 2,900+
Mader technicians around the world. Over the past
18 years, we have established a unique culture-
led, market-leading business that puts our people
first. Our people are our biggest asset, and we will
continue to invest in them, providing unmatched
global career options and lifestyle experiences.
Guided by a passionate leadership team with
extensive industry experience, I believe that we are
well-placed to navigate an ever-evolving landscape
with confidence.
Our commitment to continually diversifying service
offerings, industries and geographies has unlocked
new avenues for growth and strengthened our
position as an employer of choice. Today, we are right
where we want to be; leveraging our strong foothold
in key markets around the globe and creating more
opportunities for our people than ever before.
As we embark on the next chapter of our journey,
we remain focused on building a diversified global
services business, which will deliver exceptional
value to our stakeholders and shape a sustainable
future for Mader.
Safety is Paramount
Our goal of ‘zero harm’ remains an absolute priority
across all operations. We leave no stone unturned
in our commitment to creating a safe and secure
workplace for our employees, customers and
stakeholders.
Mr Justin Nuich
Executive Director & Chief Executive Officer
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MADER GROUP 2023 ANNUAL REPORT madergroup.com.au Throughout the year, Mader’s Total Recordable
Injury Frequency Rate improved by 14% year on
year, closing at 3.91 recordable injuries per million
hours worked. Whilst this has been a definitive
improvement, we will continue our unwavering
commitment towards zero harm. During the financial
year we continued to invest in preventative safety
systems and technology-based solutions to enhance
our safety culture at all levels and ensure our people
are protected to the highest standard.
Over the course of
the year we have:
Enhanced in-vehicle monitoring
systems across the global fleet
Tested fatigue and driver monitoring
systems to mitigate vehicle-based
risks
Launched a series of proactive
safety campaigns via the custom-built
Mader mobile app
Improved safety systems for efficient
incident reporting and investigations
Prioritised mental wellbeing and further
developed internal management's
understanding of mental health issues
Streamlined digital communication with
a focus on connectivity of our largely
remote workforce
The Financial Highlights
Our ability to apply our proven service delivery
model across multiple industry verticals and regions
demonstrates the strength of our unique value
proposition. The compounding effect of additional
revenue streams operating in parallel, has enabled us
to deliver the following financial results in FY23:
• Revenue of $608.8m, a 51% increase from
$402.1m in FY22
• EBITDA of $75.1 m delivered, up 56% from
$48.0m* in FY22
• NPAT of $38.5m, up 48% from $26.0m* in FY22
• Net debt of $42.7m, equating to net leverage of
0.57x
• Enhanced returns for shareholders with dividend
growth of 45%
In August 2022, Mader initially forecasted Group
revenue of at least $510 million and NPAT of at least
$33 million. Then, in October 2022, Mader upgraded
that guidance to revenue of at least $550 million and
NPAT of at least $35.5 million. Finally, in February
2023, Mader upgraded its financial guidance for a
second time, to revenue of at least $580 million and
NPAT of at least $37 million.
To surpass guidance that was twice upgraded,
delivering a 51% revenue growth year on year is an
incredible achievement. This result underscores the
Group’s ability to penetrate new and existing markets
and deliver strong sustainable growth, all whilst
remaining laser focused on safety and culture.
* Adjusted to remove impact of sale of associate. Net leverage is calculated based on adjusted EBITDA.
See page 17 for calculation of adjusted results.
MADER GROUP 2023 ANNUAL REPORT
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C E O ' S R E P O R T O F O P E R A T I O N S
Operational Milestones
Active in eight countries, we diligently expanded our
operations geographically and diversified our service
offerings to support over 380 customers across
more than 530 locations - backed by a dedicated
workforce of 2,900+ skilled technicians.
This strategic approach has enabled us to achieve
unprecedented growth and surpass all previous
revenue records, marking FY23 as another
exceptional year for the business.
Australia
Mader’s Australia segment performed strongly,
generating $468.5 million in revenue, a 37%
increase on FY22. The core mechanical business
experienced strong growth, with customer demand
for our specialist services sustained amid immense
structural skilled labour shortages. Demand for our
ancillary products increased, with industry verticals;
infrastructure maintenance, rail, road transport,
power generation and marine all experiencing growth
year on year.
North America
Operations in North America gained momentum,
reporting revenue of $132.2 million for the year
ended 30 June 2023, increasing by 164% on the
$50.0 million delivered in FY22 (146% increase on a
constant currency basis). In the United States, the
team focused on refining their service delivery model
and ensuring sustainable growth as the business unit
matures. Supporting new and existing customers,
the team provided mechanical and electrical services
across 32 states.
Performance in Canada exceeded expectations with
the team of 160+ technicians delivering support
across five provinces and territories. Growth can be
attributed to local recruitment efforts, and is further
enhanced by Mader’s Global Pathways program,
an unparalleled initiative that provides our skilled
technicians with career and adventure opportunities
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around the world. Central to our growth strategy, the
outlook for Canada remains extremely positive, with
significant further unmet demand in the region.
Mader Energy provided support across the United
States’ oil and gas sector, with the business unit
providing natural gas compressor maintenance
in multiple states. This organic start up remains
focused on developing meaningful customer
relationships and expanding its geographical service
delivery across a range of shale formations.
Rest of World (Africa and Asia)
Our Rest of World segment delivered $8.1 million in
revenue, a decrease of 20% vs the previous financial
year. Specialist support and training was delivered to
customers in five countries across Africa, Asia and
Oceania. Despite the decline in revenue, the business
unit is operating steadily and we remain focused
on strategically increasing growth as appropriate
opportunities and jurisdictions are identified.
Global business
highlights included:
Surpassing all previous revenue records
to report revenue of $608.8 million
Further refining our service delivery
model in diverse industries and regions
Experiencing high customer demand in
core mechanical and ancillary services
globally
Operations in Canada exceeding
expectations
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au Our People and Culture
When defining what sets Mader apart from others,
the answer is simple – it is our people. Our people,
who are fueled by their dedication and passion to
get the job done. Guided by our culture-led business
model we have continued to invest in our two culture
centered programs, Global Pathways and Three
Gears.
Creating global career and adventure opportunities,
Mader’s unparalleled Global Pathways program
expanded throughout the year, with the highly
sought-after program offering short and long-
term secondment opportunities in North America,
Africa and Asia. Designed to provide the best of
both work and play, many of our team kick-started
their journey and immersed themselves in new
cultures, challenged their skills and unlocked their full
potential.
Driven by a strong sense of adventure, our people
and their families enjoyed multiple trips and activities
created by our internal adventure division, Three
Gears. Currently unmatched in the industry, Three
Gears is a leading employee engagement program
that connects our people with the business, its
leadership and most importantly, each other. Crafting
some of the best adventures, our team enjoyed
canyoning, sailing, camping, hiking and much more.
We look forward to further expanding this program
across our global operations in the years to come.
These two culture programs, endless training
and development opportunities, and an extensive
employee benefits program has earned Mader
external recognition, winning Large Employer of the
Year at the 2022 RISE Business Awards, Employer
of Choice at the 2022 Australian Business Awards,
an Excellence Awarde for Workplace Flexibility at
the Australian HR Awards and most recently, named
finalists for Best Candidate Experience Initiative
at the 2023 SEEK Talent Acquisition Recognition
(STAR) Awards.
Investing in our people
and their careers included:
Fostering opportunity, growth, flexibility
and job diversity for our people
Creating overseas opportunities for
200+ employees via Global Pathways
A multitude of activities and trips
through adventure division Three Gears
Being recognised nationally for our
employee engagement programs
MADER GROUP 2023 ANNUAL REPORT
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"Mader continues
to diligently address
opportunities in new
markets; ultimately leading
to proactive solutions for
customers and fulfilling
careers for our people."
Justin Nuich
Executive Director & Chief Executive Officer
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MADER GROUP 2021 ANNUAL REPORT
madergroup.com.au
Strengthening our Workforce
Equipping the Community
Having formally introduced our Tools for Life
community engagement program last financial year,
we are pleased to have made significant strides
forward to support numerous volunteer, charity
and sponsorship initiatives. The wide-ranging,
global program is aimed at equipping individuals and
communities with the tools they need to succeed.
A highlight for the year was introducing our youth
engagement sessions, ‘Introduction to Mining’ for
local high school students at our Mader Maintenance
Centre in Perth. Dedicated to empowering the
next generation of technicians, we are proud to
be encouraging the future generation by giving
participants an exclusive insight into the endless
opportunities available within the industry.
Having raised funds for our charity partner, the
Kijilamatambo Primary School in Solwezi, Zambia
through the Strong Minds, Strong Mines boxing
event, I’m pleased to say that copping a few hits to
an already ordinary looking head was all for a good
cause, with the business raising just over $26,000
to go towards improving the quality of education for
the students. I really appreciate the team for getting
behind me, and I will reveal more about this exciting
project in the months to come!
Our success at Mader is in part attributed to the
guidance and vision provided by our exceptional
Management team. Many of our leaders have
been an integral part of the company since
inception, showcasing their commitment to
our values throughout their tenure. With their
long-term experience, they possess valuable
industry knowledge, strategic insight and a deep
understanding of our unique business model and
company culture, which they embed daily into
operations. Their dedication and expertise sets an
example for the entire business, and empowers our
workforce to strive for excellence and continuously
innovate.
We believe that continuous training and development
is key to building the most skilled technical
specialists. To achieve this, we invest significantly
into comprehensive training and leadership
development for our people. Our innovative Team
Leader program has proven to be instrumental in
transforming our people into exceptional leaders.
This program aims to empower our workforce with
the skills and qualities necessary to become reliable
mentors for our field teams. With a largely remote
workforce, equipping our people with the confidence
and abilities to lead and guide fosters a sense of
comradery and mutual support on site.
Further, our tailored Mader Trade Upgrade program
provides an opportunity for light vehicle and heavy
road transport mechanics to gain their heavy
mobile plant qualifications, with FY23 seeing more
than 60 apprentices graduate and join our existing
service lines throughout Australia. The program also
continues to address the skills shortage by feeding
trained technicians into the resources industry.
MADER GROUP 2023 ANNUAL REPORT
15
C E O ' S R E P O R T O F O P E R A T I O N S
Markets and Growth
It is an exciting time in the growth journey of Mader,
and it’s a privilege to have been a part of the process
to get here. The financial year saw the business
continue to grow as a global, diversified provider of
specialist technical services. We have doubled down
on our focus to extend our service delivery across
multiple industry verticals, operating with conviction
across the resources, energy, infrastructure
maintenance, transport and logistics, and power
generation and marine sectors.
Through service diversification, we can deliver
top-tier support across a range of markets and
regions and introduce new revenue streams to the
Group. Key to driving future growth, and ensuring
sustainability of the business, diversified operations
will create compounding returns for our shareholders,
with our long-term historical growth rate of around
30% year on year expected to continue into FY24
and beyond.
Central to our diversification strategy is geographical
expansion across North America. Having established
strong foundations in Canada for FY23, we look
forward to further growth as we expand our reach
across further provinces and territories, and venture
into various commodities.
Demand across the Canadian market remains largely
unfulfilled, presenting a significant opportunity for
the business, especially given the skilled labour
shortages in the region. Our business model has
been well-received to date and has bolstered our
confidence in the growth prospects available within
Canada.
Operations in the United States continue to evolve
as the company matures. We remain focused on
expanding our service offerings and volume of
labor to existing customers, whilst attracting new
customers and advancing our market share beyond
the 32 States we are currently working in. Organic
start up, Mader Energy will continue its dedication
to delivering field maintenance across a number
of large shale formations whilst exploring further
opportunities in the energy industry.
In the pursuit of building a large, resilient and
diversified global services provider, Mader has
conducted research into new and emerging markets
to assess the suitability of Mader's business model.
We will continue to do this, exploring the business
model’s viability in penetrating large addressable
markets, some of which are directly relevant to our
existing operations, and others further removed.
16
"When defining what
sets Mader apart from
others, the answer
is simple – it is our
people. Our people,
who are fueled by their
dedication and passion
to get the job done."
Justin Nuich
Executive Director & Chief Executive Officer
A Bright Future
Today, if we circled the globe, you would find
someone proudly wearing a Mader shirt on four
continents. From the snow in North America, tropics
in Asia or the Outback of Australia – our dedicated
team will be there.
Concluding another successful financial year, full
of new records, I’d like to again thank our people for
their passion for delivering a superior service. Our
people are more than just employees to us; they are
individuals who are empowered to shape their own
journey within and beyond the workplace. Without
their driving force and spirit of adventure, our
achievements would not be possible.
We remain committed to achieving our vision of
becoming a diversified, global services business –
chosen by our people, selected by customers and
backed by investors. Looking ahead we embrace the
bright future that awaits us, confident in our abilities
to seize opportunities, disrupt markets and provide a
culture-led workplace worthy of our people.
Yours sincerely,
Justin Nuich
Chief Executive Officer & Executive Director
*During FY22, the Group disposed of its investment in Western Plant Hire Limited. Therefore, the prior
corresponding periods reported results have been adjusted for this one off occurrence as follows:
A$'000
Reported Results
Less Sale of Associate
Adjusted Results
NPAT
27,945
(1,939)
26,006
EBIT
EBITDA
41,832
(2,921)
38,911
50,885
(2,921)
47,964
MADER GROUP 2023 ANNUAL REPORT
17
Made for Impact
Community Engagement
Some highlights this year included:
• Participating in the 2022 MACA Cancer 200: Ride
for Research and raising more than $75,000 for
cancer research at the Harry Perkins Institute.
• Mader's CEO, Justin Nuich lacing up for the
Strong Minds, Strong Mines boxing event, with
over $26,000 raised for charity partner, the
Kijilamatambo School in Solwezi, Zambia.
• Sponsoring the 2022 Happiness Gala as a Gold
Sponsor, helping to create a positive impact for
men’s mental health.
18
• Getting involved in the local community in
Queensland and sponsoring the Mount Isa
Rodeo, and Hunter Valley Charity Golf Day to
raise funds for the Westpac Rescue Helicopter.
• Providing sponsorship for the Heart Warrior
Open, an annual fundraising golf tournament
held in Phoenix, Arizona in support of the
Phoenix Children's Hospital.
“FY23 marked Mader’s seventh year participating in the Cancer
200: Ride for Research. We’re incredibly grateful for their
support, and for the valuable funds they have contributed to
lifesaving cancer research.”
Steve Currie, Corporate Partnerships Manager
(Harry Perkins Institute of Medical Research)
19
Made for Impact
Tools for Life
Our Tools for Life Program aims to
equip individuals and communities
with the tools they need to build a
better future and succeed in life.
Consisting of a series of volunteer, charity and
sponsorship initiatives, this program recognises
the opportunity the mining sector has to improve
socio-economic development.
With a strong focus on youth, education and
support to remote areas and disadvantaged
groups, our program aims to empower
communities, improve social dynamics and
lessen inequality across the globe.
20
“At Mader, we believe in showcasing the realities of being a
technician and offering students an exclusive chance to gain insight
into the rewarding aspects of a career in the mining sector.”
Charlotte Wagner, General Manager - HR & Training
(Mader Group)
Hero Project
Unlocking Youth Potential in Mining
•
Intro to Mining sessions were held at the Mader
Maintenance Centre in Perth for students in
year 10, 11 and 12 from local high schools.
• Sessions were led by expert Mader personnel
and guest speakers relevant to the industry.
• Students were given a facility tour, and learned
about the various equipment that is serviced in
the state-of-the-art workshop, before gaining
practical exposure on a CAT 3196 core engine.
21
Made for our People
The driving force behind our purpose as an organisation.
22
22
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au MADER GROUP 2023 ANNUAL REPORT 23
23
THREE GEARS
Our adventure division, Three Gears is all
about creating epic adventures with a
difference!
Kicking into gear, our team experienced
heart-pumping experiences, like abseiling,
hiking and mountain biking, mixed with
chilled-out moments of BBQ’s, ocean
swims and breath-taking sunsets!
24
2424 MADER GROUP 2023 ANNUAL REPORT
madergroup.com.au
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au “Our mantra is
simple. We bring
people together,
challenge theIR
limitS and have fun
whilst doing so.”
Ben Nash,
General Manager - Culture
(Mader Group)
15,780KM
Biked around islands
2,034
Snags consumed
845
Flights in a helicopter
36,400KM
Hiked in picturesque
locations
2,375KM
Traversed through
canyons
MADER GROUP 2023 ANNUAL REPORT
MADER GROUP 2023 ANNUAL REPORT
25
25
25
Directors' Report
The Directors submit their report with the financial report on the consolidated entity consisting of Mader Group
Limited (Mader) and the entities it controlled (Group) at the end of, or during, the year ended 30 June 2023 (FY23).
Directors
The following persons were directors of the Company (the Directors) at any time during the whole of the financial
year and up to the date of this report, unless otherwise stated.
Director Name Position
Luke Mader
Executive Chairman & Founder - Appointed Executive Chairman from Executive Director, effective 21
April 2023
Justin Nuich
Executive Director & Chief Executive Officer (CEO)
Patrick Conway Executive Director
Craig Burton
Non-Executive Director
Jim Walker
Non-Executive Chairman - Resigned effective 21 April 2023
LUKE MADER
EXECUTIVE
CHAIRMAN
JUSTIN NUICH
CHIEF EXECUTIVE
OFFICER
PATRICK CONWAY
EXECUTIVE
DIRECTOR
CRAIG BURTON
NON-EXECUTIVE
DIRECTOR
Principal Activities
The principal activities of Mader during the financial year was for the provision of specialist technical services
in the mining, energy and industrial sectors around the globe. The services provided include in-field technical
support, major overhauls and repairs, preventative equipment maintenance, training of maintenance teams,
and a range of ancillary services.
26
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au Overview and Financial Results
Mader generated revenue of $608.8 million, an increase of 51% versus the prior year. Relative to the increase in
demand for Mader’s services across Australia, revenue increased by 37% to $468.5 million. The North America
market generated $132.2 million in revenue, up 164% in comparison to the prior year of $50.0 million. Mader’s
Rest of World segment delivered services in Africa, Asia and Oceania, with revenue decreasing 20% to $8.1
million down from $10.1 million the prior year.
Similarly, the Group’s EBITDA grew 48% to $75.1 million in comparison with the prior year. EBITDA for the
Australian market was $57.0 million, an increase of 42% as opposed to the prior year of $40.1 million. In North
America, EBITDA grew to $23.2 million (up 131%) which was a result of the growth in revenue. The Rest of World
market contributed $1.1 million to the Group’s EBITDA decreasing 47% compared to the prior year.
As at 30 June 2023, Mader maintained its strong liquidity position with net cash inflows from operations for the
year of $41.1 million (2022: $35.4 million). Cash outflows from investing activities of $47.3 million is largely due to
the expansion of Mader's fleet of service vehicles. The Group’s net debt position as at 30 June 2023 was $42.7
million (2022: $26.7 million).
Dividends
On 21 August 2023, the Company declared a final fully franked dividend of 3.4 cents per share, taking total FY23
dividends to 5.8 cents per share fully franked, an increase of 45% from FY22. The record date is 20 September
2023 with a payment date of 4 October 2023.
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 FY22 Fully Franked
Interim FY23 Fully Franked
Final FY23 Fully Franked
Dividend Paid
Total Value
Payment Date
2.0 cents per share
2.4 cents per share
3.4 cents per share
$4.0m
$4.8m
$6.8m
27 September 2022
6 April 2023
4 October 2023
MADER GROUP 2023 ANNUAL REPORT
27
D I R E C T O R S ' R E P O R T
Operational Performance
Australia
North America
Australia continues to be the strongest contributor
to the Group’s revenue base, delivering $468.5 million
for the financial year ended 30 June 2023. The 37%
increase is impressive, and a record for the segment
as we continue to scale operations through service
diversification and geographic expansion. A tight
labour market, caused by a structural skills shortage
in Australia saw sustained demand for both core
mechanical and ancillary products across multiple
industry verticals.
Having been commissioned in the first quarter of the
financial year, our custom-built Mader Maintenance
Centre in Perth operated to nameplate capacity,
completing a number of major offsite rebuilds and
repairs for tier one mining customers. Experiencing
high customer demand, the 3,400m2 workshop has a
solid forward order book and will continue to expand
into FY24 and beyond.
Over FY23, more than 60 heavy-duty technicians
completed the tailored Mader Trade Upgrade
Program, effectively joining our existing teams out
in the field across Australia. Since the program’s
inception in 2018, more than 200 dual-trade
technicians have graduated with their Mobile Plant
Trade Certificates via programs in Western Australia
and Queensland.
Operations in North America delivered revenue of
$132.2 million for the year ended 30 June 2023, up
164% on the $50.0 million delivered in FY22 (146%
increase on a constant currency basis). In the United
States, our team supported a number of customers
across 32 states, increasing their volume of delivery
for both mechanical and electrical services.
Currently based in Edmonton, Alberta and with a
second operational office opening in Calgary in
early FY24, our new, organic start up in Canada
has exceeded expectations. Delivering incredible
revenue growth, demand in the region has been
unprecedented, with our team deployed throughout
five provinces and territories; amongst key mineral
producing regions.
Mader Energy was introduced in the previous
financial year to target the gas compression industry
across the United States. Based in Fort Worth, Texas,
the business unit has established itself in the new
sector and will continue to focus on diversifying its
customer base across a variety of shale formations.
Rest of World (Africa and Asia)
In FY23, Rest of World operations generated $8.1
million revenue, down 20% from the prior year, yet
maintained support and advisory services across
Asia, Africa, and Oceania. In Asia, we provided
maintenance support in Indonesia, Mongolia and
Philippines and in Oceania, Papua New Guinea. In
Africa, we completed technical advisory services
in Zambia. For FY24, we anticipate growth through
strategic planning, local partnerships, and business
development.
28
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au 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 is well positioned to address growth
opportunities and strong commodity markets
as they present, with a dedicated focus on
diversification to mitigate macro market risks and
enhance earnings potential.
The Group’s growth pillars seek to improve the
strength of its revenue base, with a dedicated focus
on service line, geographic and sector diversification
to effectively improve profit margins across existing
and emerging markets.
The Board is confident that Mader’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 new
and existing addressable markets.
Mader’s revenue growth is predominantly driven by
three factors:
•
Increase in demand in regions where Mader
already operates (both existing and new
customers). Mader believes significant revenue
growth potential remains in all regions in which
Mader currently operates;
• The continued diversification and scaling
of supplementary services in established
regions, such as Mader’s ancillary services and
infrastructure maintenance. These services are
complementary and add value to Mader’s core
capabilities in mechanical maintenance; and
• Sector and geographic diversification through
expansion to new addressable markets that suit
Mader’s business model, skillsets and/or abilities.
Mader'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.
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 2023
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 in the countries in which
Mader operates.
The Directors are not aware of any material breaches
of environmental regulations during the year or as at
the date of this report. The Group has met all of its
reporting requirements under the relevant legislation
during the year.
MADER GROUP 2023 ANNUAL REPORT
29
29
D I R E C T O R S ' R E P O R T
Information on current and prior Directors
LUKE MADER
MAICD
JUSTIN NUICH
MBA, GRAD DIP MAINTENANCE
PATRICK CONWAY
BBUS, CPA, GACG
MANAGEMENT
Experience and expertise: Justin has over
20 years’ experience in the mining and energy
industries in Australia and globally. Currently
Mader's Executive Director and CEO, Justin
is well versed with the business having sat on
the Board since January 2019. He formerly
held senior roles with Fortescue Metals
Group Limited (ASX: FMG), Mineral Resources
Limited (ASX: MIN) and BHP Group Ltd (ASX:
BHP).
Experience and expertise: Patrick has over
13 years’ experience in the mining and mining
services industries in Australia and globally.
Patrick has been with the Company for over
9 years and has previously held roles as CEO
and CFO. He currently plays a pivotal role in
influencing the Group’s strategic direction as
the Director Emerging Business.
Directorships held in other listed entities
Directorships held in other listed entities
• None
• None
Former directorships held in listed
companies in the last three years
Former directorships held in listed
companies in the last three years
• None
Special responsibilities
• Chair of the Audit and Risk Committee
• Member of the Nomination and
Remuneration Committee
Interest in securities
• 113,824 Ordinary Shares
• None
Special responsibilities
• Member of the Audit and Risk Committee
• Member of the Nomination and
Remuneration Committee
Interest in securities
• 191,081 Ordinary Shares
• 2,250,000 Performance Rights, on the
terms and conditions as set out in the
Notice of Meeting dated 7 September
2021.
• 1,000,000 Share Appreciation Rights,
on the terms and conditions as set out in
the Notice of Meeting dated 7 September
2021.
Experience and expertise: Founder of
Mader, Luke is trade qualified with 25
years’ experience in the mining services
industry. Luke leads Mader’s strategic
growth and development and has built
Mader into a leading global provider of
specialist technical services across
multiple industries. Luke formerly
completed a mechanical apprenticeship
for an Original Equipment Manufacturer
(OEM) before entering into a marketing
role and then identifying an underserviced
niche in the industry.
Directorships held in other listed entities
• None
Former directorships held in listed
companies in the last three years
• None
Special responsibilities
• Member of the Audit and Risk
Committee
• Member of the Nomination and
Remuneration Committee
Interest in securities
• 113,697,095 Ordinary Shares
30
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au
CRAIG BURTON
BJURIS, LLB, MAICD
Experience and expertise: Craig is a venture
capital investor in emerging projects and
businesses. He has a track record of
providing financing backing and strategic
advice to successful management teams and
start-up entrepreneurs.
Directorships held in other listed entities
• Grand Gulf Energy Limited from 16
September 2013 to current
Former directorships held in listed
companies in the last three years
• Cradle Resources Limited from
5 March 2019 to 12 October 2021
Special responsibilities
• Member of the Audit and Risk Committee
• Chair of the Nomination and
Remuneration Committee
Interest in securities
• 39,000,000 Ordinary Shares
JIM WALKER
GAICD, FAIM
RESIGNED 21 APRIL 2023
Experience and expertise: Jim has over 45
years’ experience in the resources sector.
He 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 currently Chairman of
Austin Engineering Ltd (ASX: ANG), State
Training Board (WA) and Motor Museum of
WA. Jim is a Non-Executive Director of M G
Kailis Pty Ltd. Jim is a member of the RAC
Council, Chair of RACWA Holdings Pty Ltd,
RAC Insurance Pty Ltd and RAC Finance
Ltd.
Directorships held in other listed entities
• Austin Engineering Limited from
8 July 2016 to current
Former directorships held in listed
companies in the last three years
• Australian Potash Limited from
15 August 2018 to 15 December 2021
• Macmahon Holdings Limited from
11 October 2013 to 27 June 2019
• MLG Oz Limited from
21 January 2021 to 21 April 2023
MADER GROUP 2023 ANNUAL REPORT
31
3232
MADER GROUP 2023 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 2023 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
Luke Mader
Justin Nuich
Patrick Conway
Craig Burton
Jim Walker1
7
7
7
7
6
1 Resigned as Chairman, effective 21 April 2023.
6
7
7
7
6
Company Secretary
2
2
2
2
2
2
2
2
2
2
2
2
2
2
1
2
2
2
2
1
SARAH WILSON
APPOINTED 23 AUGUST 2022
Sarah is an experienced company secretary with more than 10 years’ experience in governance and compliance.
She is an Executive Director of national corporate advisory firm Source Governance, and is currently company
secretary to a number of ASX listed companies with a strong focus on resources.
SHANNON COATES
APPOINTED 6 NOVEMBER 2018, RESIGNED 25 JULY 2023
Shannon is a qualified lawyer, Chartered Secretary and graduate of the AICD’s Company Directors course.
She has more than 25 years’ experience in corporate law and compliance, is an Executive Director of national
corporate advisory firm Emerson CoSec, and is currently company secretary to a number of ASX listed
companies with a strong focus on resources.
MADER GROUP 2023 ANNUAL REPORT
33
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 2023. 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'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
Luke Mader
Justin Nuich
Position
Term as KMP
Executive Chairman & Founder
Appointed Executive Chairman 21 April 2023
Executive Director & Chief Executive Officer Full financial year
Patrick Conway
Executive Director
Craig Burton
John Greville
Paul Hegarty
Jim Walker
Non-Executive Director
Chief Operating Officer
Chief Financial Officer
Non-Executive Chairman
Full financial year
Full financial year
Full financial year
Full financial year
Resigned 21 April 2023
Executive Remuneration
How we determine executive remuneration policies and structures
Four principles guide our decisions about executive remuneration at Mader:
• 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 Culture: drive leadership performance and behaviours that create a culture that promotes safety,
peformance, diversity and employee satisfaction.
How remuneration is governed
Mader has established a Nomination and Remuneration Committee (the Committee) to assist the Board 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 Senior Executives;
• Equity participation;
• Human resources policies; and
• Other matters referred to the Committee by the Board.
3 4
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au The Committee presently consists of Messrs 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 are set out below.
Feature
Description
Maximum opportunity
Executives can earn a pre-determined amount, which is agreed upon at the commencement of
each financial year.
Performance metrics
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
Compounding
annual revenue
growth and
minimum NPAT
threshold
Total recordable
injury frequency
rate (TRIFR)
Labour retention
rate
Not less than 25% p.a with
NPAT target agreed by the
board each financial year.
50%
Reflects improvements in
both revenue and cost control
<4.5 incidents per million
hours worked
Achieving appropriate labour
turnover rate as set by the
Board considering labour
market conditions
30%
20%
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
MADER GROUP 2023 ANNUAL REPORT
35
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
Variable remuneration - long-term incentives (LTI)
LTIs currently take the form of an equity incentive plan for eligible participants. The LTI offered to Executives forms
a key part of their remuneration and assists to align their interest with the long term interest of shareholders.
The purpose of the LTI is to reward Executives for attaining results over a long, measurable period and also as a
retention mechanism.
In accordance with the terms of the plan, as approved by the shareholders at the 2021 annual general meeting,
rights may be offered by the Board to Executives and are an entitlement to receive ordinary shares in the Company
upon satisfaction of applicable performance conditions. The Committee is responsible for determining the
achievement of the targets and whether the performance hurdles have been satisfied.
Features of the LTI plan are set out below.
Component
Description
Types of securities
The plan provides the Company with the ability to grant Performance Rights or Share
Appreciation Rights (Rights).
Type
Terms
Performance Rights
Each Performance Right constitutes a right to receive one
share upon satisfaction of the applicable vesting or exercise
conditions.
Share Appreciation Rights Each Share Appreciation Right constitutes a right to receive a
number of shares upon satisfaction of the applicable vesting or
exercise conditions. The number of shares granted is calculated
in accordance with the following formula:
• Resulting Value divided by the Subsequent Market Value;
• Resulting Value is defined as the Subsequent Market Value
less the market value of the share as at the date of grant;
• Subsequent Market Value is defined as the market value of a
share as at the date of exercise.
Grants
Vesting and exercise
Equity or cash settlement
Expiry
Lapse / forfeiture
Rights may be granted under the Equity Incentive Plan to eligible participants from time to
time at the absolute discretion of the Board. Luke Mader and non-executive directors are not
eligible to participate in the plan.
Rights will vest if and to the extent that any applicable performance, service and other
vesting conditions specified at the time of the grant are satisfied, deemed to be satisfied or
waived and the Company has given the participant a vesting notice.
The plan has the flexibility for vested Rights to be settled in either shares or cash. Cash
settlement will only be available if the Company sets out in the terms and conditions of an
invitation to participate in the plan that cash settlement is available.
Rights will be issued with an expiry date.
If a participant ceases employment, their vested and unvested Rights will automatically be
forfeited unless the Board determines otherwise.
Performance metrics
In line with the Group's long term strategic plan, the LTI rewards performance and
achievements through the following targets:
Type
Target
FY24 Performance Rights The Group achieves net profit after tax of $40 million
FY26 Performance Rights The Group achieves net profit after tax of $60 to $65 million
Share Appreciation Rights KMP to continue employment to 30 June 2024
36 MADER GROUP 2023 ANNUAL REPORT
madergroup.com.au
Non-Executive Director Remuneration
Mader'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 STI Plan and LTI Plan that has been disclosed
above.
The following table outlines the contractual terms of the executive service agreements:
Component
Luke Mader
Executive Directors
Senior Executives
Fixed Remuneration
Variable Remuneration
Allowances
Notice Period
$2,000 per day
worked
Range between $250,000 and
$600,000 per annum
Range between $400,000
and $650,000 per annum
None
None
As per STI scheme
As per STI scheme
May include motor vehicle
allowance
May include accommodation
allowance
6 months
Up to 6 months
Up to 6 months
Annual and Long Service Leave
None
Statutory requirements plus
17.5% annual leave loading
Statutory requirements plus
17.5% annual leave loading
Redundancies
None
Statutory requirements
May include 12 months payout
on change of control event
Relationship between Remuneration and Group Performance
Mader rewards the performance of KMPs with regard to the achievement of operational and financial targets
having regard to the duties, performance and contribution of the KMP during the financial year.
The table below sets out information about the Group’s earnings and movements in shareholder wealth for the
past five years up to and including the current financial year.
Net profit for the year ($’m)
Basic earnings per share (cents)
Diluted earnings per share (cents)
Total dividends ($'m)
Share price at end of year ($)
2023
38.5
19.25
18.21
11.6
5.70
2022
27.9
13.97
13.60
8.0
2.66
2021
2020
2019
19.3
9.67
9.67
6.0
0.85
17.5
8.75
8.75
7.3
0.78
14.9
8.77
8.77
11.1
-
MADER GROUP 2023 ANNUAL REPORT
37
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 2023 and 30 June 2022
Short-term employee benefits
Post-
employment
Long-term
benefits
Share Based
Payments
Salary
& fees
Short Term
incentives1
Non-
monetary2
Super-
annuation
Long service
leave
Performance
& Share
Appreciation
Rights
Total
remuneration
Perform-
ance
related
$
$
$
$
$
$
$
%
Non-executive directors
Jim Walker3
Craig Burton
Total Non-
executive
Directors
2023
2022
2023
2022
88,917
110,000
60,000
60,000
2023
148,917
2022
170,000
Executive directors
Luke Mader
2023
215,000
2022
198.500
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Justin Nuich
2023
624,203
500,000
67,718
2022
527,475
500,000
40,484
9,336
11,000
6,300
6,000
15,636
17,000
18,241
17,592
26,677
51,905
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
98,253
121,000
66,300
66,000
164,553
187,000
233,241
216,092
936,777
2,155,375
561,960
1,681,824
Patrick Conway 2023
260,564
250,000
2022
269,509
810,847
-
-
24,503
5,835
23,954
46,604
-
-
540,902
1,150,914
Senior executives
John Greville
2023
639,284
602,393
50,031
2022
288,309
1,142,749
Paul Hegarty
2023
399,725
400,000
2022
305,957
200,000
-
-
-
37,037
18,126
26,163
27,441
61,472
510,359
1,900,576
(5,327)4
99,602
1,543,459
-
-
236,216
1,062,104
140,960
674,358
Total Executive
Directors
and Senior
Executives
Total KMP
2023 2,138,776
1,752,393
117,749
132,620
67,307
1,683,352
5,892,197
2022 1,589,750
2,653,596
40,484
139,018
41,277
802,522
5,266,647
2023 2,287,693
1,752,393
117,749
148,257
67,307
1,683,352
6,056,751
2022 1,759,750
2,653,596
40,484
156,018
41,277
802,522
5,453,647
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, motor vehicle related expenses and accommodation allowances.
3 Resigned as Chairman, effective 21 April 2023.
4 Negative long service leave value is a result of more days taken than accrued during the year.
-
-
-
-
-
-
-
-
67
63
46
70
59
80
60
51
58
66
57
63
38
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au The table below shows the percentage of each Executives’ STI that was awarded or forfeited during the
financial year. It also shows the value of long-term incentives granted and exercised during the year.
Justin Nuich
Patrick Conway
John Greville
Paul Hegarty
Short-term Incentives
Long-term Incentives
Awarded
Forfeited
Granted
Exercised
%
100%
100%
100%
100%
%
$
$
-
-
-
-
-
-
1,007,391
-
-
-
-
-
Details of the rights issued during the year are as follows:
Rights series
Grant date
Expiry date
Method of valuation Fair value at grant
Share Appreciation Rights
9-Jan-2023
30-Jun-2024
Black Scholes
2.52
Shareholdings of Key Management Personnel
The number of shares in the Company held directly or indirectly during the financial year by each director and
KMP of the Group, including their related parties, are set out below.
Balance
1 July 2022
Granted as
remuneration
On market
purchase
Disposals/
Other changes
Balance
30 June 2023
Craig Burton
Luke Mader
Justin Nuich
Patrick Conway
John Greville
Paul Hegarty
Jim Walker1
Total
39,000,000
113,697,095
186,081
113,824
166,667
55,000
66,667
153,285,334
1 Resigned as Chairman, effective 21 April 2023.
-
-
-
-
-
-
-
-
-
-
5,000
-
-
-
-
-
-
-
-
-
-
(66,667)
39,000,000
113,697,095
191,081
113,824
166,667
55,000
-
5,000
(66,667)
153,223,667
The number of rights (Performance Rights and Share Appreciation Rights) held directly or indirectly during the
financial year by each director and KMP of the Group are set out below. All rights remain unvested as at the end
of the year.
Justin Nuich
Patrick Conway
John Greville
Paul Hegarty
Total
Balance
1 July 2022
3,250,000
-
750,000
1,150,000
5,150,000
Granted as
remuneration
-
-
400,000
-
400,000
Vested
Forfeited
-
-
-
-
-
-
-
-
-
-
Balance
30 June 2023
3,250,000
-
1,150,000
1,150,000
5,550,000
MADER GROUP 2023 ANNUAL REPORT
39
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
Loans to Key Management Personnel
There were no loans to Directors or Executives during the financial year ended 30 June 2023 (2022: Nil).
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. The services have been provided on normal commercial terms and conditions.
Transactions
Receivables
Payables
2023
2022
2023
2022
2023
2022
Related KMP
$
$
$
$
$
$
Services provided to
MLG Oz Limited
Services provided to
Austin Engineering Ltd
Services provided to
Western Plant Hire
Holdings Limited
Services provided by
Venture South Pty Ltd
Services provided to
Premium Plant Hire
Pty Ltd
Services provided to
L&A Trust
Services provided by
Naturaliste Aviation
Pty Ltd
Consultancy services
provided by Allscope
Holdings Pty Ltd
Jim Walker
4,612,393
3,316,744
1,572,8741
69,091
Jim Walker
34,579
114,452
Luke Mader2
Patrick Conway
-
561,761
Luke Mader
5,871
36,694
-1
-
-
5,143
11,0773
-
Luke Mader
328,521
310,078
31,562
77,524
Luke Mader
113,567
101,256
84,169
33,103
Justin Nuich
12,705
-
Justin Nuich
17,909
29,836
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
1 Balances are as at the date Jim Walker resigned as Chairman, effective 21 April 2023.
2 Luke Mader was a director of Western Plant Hire Holdings Limited and Patrick Conway was an alternate director for Luke Mader during the period of Mader's
investment in Western Plant Hire Holdings Limited.
3 Balance is as at the date Luke Mader and Patrick Conway resigned as director's of Western Plant Hire Holdings Limited.
Voting of Shareholders at Last Year's Annual General Meeting
Mader received more than 90% of "yes" votes on its remuneration report for the financial year ended
30 June 2022. The Company did not receive any specific feedback at the annual general meeting or
throughout the year on its remuneration practices.
End of audited remuneration report.
40
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au D I R E C T O R S ' R E P O R T
Shares Under Option
There were no unissued ordinary shares of Mader
Group Limited under option at the date of this report.
Indemnification and Insurance of Officers
and Auditors
The Company has executed a deed of access,
indemnity and insurance in favour of each Director
during the financial year. The indemnity deed
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 mainta in 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 directors are
satisfied that the provision of non-audit services
by the auditor did not compromise the auditor
independence requirements of the Corporation Act
2001 for the following reasons.
• all non-audit services have been reviewed by the
audit committee to ensure they do not impact the
impartiality and objectivity of the auditor, and
• none of the services undermine the general
principles relating to auditor independence as set
out in APES 110 Code of Ethics for Professional
Accountants.
Auditors Independence Declaration
The auditor’s independence declaration as required
under section 307C of the Corporations Act 2001 is
set out on page 42.
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.
Luke Mader
Executive Chairman & Founder
21 August 2023
MADER GROUP 2023 ANNUAL REPORT
41
Auditor’s Independent Declaration
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
DECLARATION OF INDEPENDENCE BY DEAN JUST TO THE DIRECTORS OF MADER GROUP LIMITED
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
As lead auditor of Mader Group Limited for the year ended 30 June 2023, I declare that, to the best of
my knowledge and belief, there have been:
Tel: +61 8 6382 4600
Fax: +61 8 6382 4601
www.bdo.com.au
1. No contraventions of the auditor independence requirements of the Corporations Act 2001 in
DECLARATION OF INDEPENDENCE BY DEAN JUST TO THE DIRECTORS OF MADER GROUP LIMITED
relation to the audit; and
2. No contraventions of any applicable code of professional conduct in relation to the audit.
As lead auditor of Mader Group Limited for the year ended 30 June 2023, I declare that, to the best of
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.
Dean Just
Director
BDO Audit (WA) Pty Ltd
Dean Just
Perth
Director
21 August 2023
BDO Audit (WA) Pty Ltd
Perth
21 August 2023
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.
42
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au MADER GROUP 2023 ANNUAL REPORT
43
43
4 44 4
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au Consolidated Statement of Profit or
Loss & Other Comprehensive Income
For the Year Ended 30 June 2023
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
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
Earnings per share
Basic earnings per share (cents per share)
Dilulted earnings per share (cents per share)
NOTE
4
5
5
5
4
6
8
8
2023
$’000
608,793
(472,942)
135,851
(20)
(2,405)
(77,724)
(263)
(3,542)
-
2,700
54,597
(16,089)
38,508
2022
$’000
402,084
(323,499)
78,585
(20)
(1,580)
(42,051)
187
(1,432)
532
6,179
40,400
(12,455)
27,945
1,951
40,459
1,955
29,900
19.25
18.21
13.97
13.60
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 2023 ANNUAL REPORT
45
Consolidated Statement of
Financial Position
As at 30 June 2023
NOTE
2023
$’000
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
Deferred tax liabilities
Borrowings
Total non-current liabilities
Total Liabilities
Net Assets
Equity
Issued capital
Reserves
Retained earnings
Total equity
11
12
13
14
12
6
15
16
6
17
6
17
18
19
2022
$’000
6,648
87,614
3,466
97,728
13,010
122,819
4,861
140,690
100,163
67,944
110
8,086
331
3,317
112,007
252,697
49,968
1,394
5,314
2,644
15,056
74,376
7,298
10,723
40,656
58,677
133,053
119,644
2
7,099
112,543
119,644
110
7,965
391
944
77,354
175,082
41,255
1,233
3,902
306
21,264
67,960
7,000
3,081
12,059
22,140
90,100
84,982
2
2,145
82,835
84,982
The above Consolidated Statement of Financial Position should be read in conjunction with the notes to the
financial statements.
46
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au Consolidated Statement of
Changes in Equity
For the Year Ended 30 June 2023
Issued
Capital
$’000
NOTE
Balance at 1 July 2022
Comprehensive income/(loss)
Profit for the year
Other comprehensive income for the year
Total comprehensive income/(loss) for the year
Dividends paid or provided for
Equity settled share based payments
Balance at 30 June 2023
9
20
2
-
-
-
-
-
2
Retained
Earnings
$’000
82,835
38,508
-
38,508
(8,800)
-
Foreign
Currency
Translation
$’000
Share
Based
Payments
$’000
Total
$’000
735
1,410
84,982
-
1,951
1,951
-
-
-
-
-
-
3,003
4,413
38,508
1,951
40,459
(8,800)
3,003
119,644
112,543
2,686
Issued
Capital
$’000
Retained
Earnings
$’000
NOTE
Foreign
Currency
Translation
$’000
Share
Based
Payments
$’000
Balance at 1 July 2021
Comprehensive income/(loss)
Profit for the year
Other comprehensive income for the year
Total comprehensive income/(loss) for the year
Dividends paid or provided for
Equity settled share based payments
Balance at 30 June 2022
9
20
2
-
-
-
-
-
2
61,890
(1,220)
27,945
-
27,945
(7,000)
-
-
1,955
1,955
-
-
82,835
735
-
-
-
-
-
1,410
1,410
Total
$’000
60,672
27,945
1,955
29,900
(7,000)
1,410
84,982
The above Consolidated Statement of Changes of Equity should be read in conjunction with the notes to the
financial statements.
MADER GROUP 2023 ANNUAL REPORT
47
Consolidated Statement
of Cash Flows
For the Year Ended 30 June 2023
Note
2023
$’000
2022
$’000
Cash flows from operating activities
Receipts from Customers
Payments to Suppliers & Employees
Interest Paid
Income Tax Paid
Net cash generated from Operating Activities
10
Cash flows from investing activities
Proceeds from Sale of Property, Plant & Equipment
Payments for Property, Plant & Equipment
Sale of Associates
Investments in Associates
Net cash used in Investing Activities
Cash flows from financing activities
Proceeds from Borrowings
Repayment of Borrowings
Payment of Dividends
Net cash (used in)/provided by Financing Activities
Net Cash Increase / (Decrease) in Cash and Cash Equivalents Held
Effect of Exchange Rates on Cash and Cash Equivalent Holdings
Cash and Cash Equivalents at Beginning of Financial Year
Cash and Cash Equivalents at End of Financial Year
630,949
(578,257)
(3,124)
(8,482)
41,086
422,748
(374,329)
(1,196)
(11,835)
35,388
242
73
(47,535)
(39,461)
-
-
8,400
(20)
(47,293)
(31,008)
42,559
(21,444)
(8,800)
12,315
6,108
254
6,648
13,010
20,235
(14,623)
(7,000)
(1,388)
2,992
447
3,209
6,648
The above Consolidated Statement of Cash Flows should be read in conjunction with the notes to the financial
statements.
48
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au Notes to the Consolidated
Financial Statements
For the Year Ended 30 June 2023
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 (IFRS) as issued by the
International Accounting Standards Board (IASB).
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 21 August 2023. 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 2023 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)
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,
50
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 other
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au comprehensive income or directly 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 2023 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
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
52
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 2023 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 measured 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.
MADER GROUP 2023 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
2.
Summary of Significant
Accounting Policies (continued)
(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
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
5 4
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.
(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,
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au the taxation authority is classified within operating
cash flows.
equity to profit or loss on disposal or partial
disposal of the net investment.
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.
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.
(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
MADER GROUP 2023 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
2.
Summary of Significant
Accounting Policies (continued)
(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.
56
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au (n) Share Based Payments
Equity settled share based payments to employees and others providing similar services are measured at
the fair value of the equity instruments at the grant date. The fair value excludes the effect of non-market
based vesting conditions. Details regarding the determination of the fair value of equity settled share based
transactions are set out in the Share Based Payments note.
The fair value determined at the grant date of the equity settled share based payments is expensed on a
straight line basis over the vesting period, based on the Group’s estimate of the number of equity instruments
expected to vest as a result of the effect of non-market based vesting conditions. The impact of the revision
of the original estimates, if any, is recognized in profit or loss such that the cumulative expense reflects the
revised estimate, with a corresponding adjustment to reserves.
Equity settled share based payment transactions with parties other than employees are measured at the fair
value of the goods or services received, except where that fair value cannot be estimated reliably, in which
case they are measured at the fair value of the equity instruments granted, measured at the date the enity
obtains the goods or the counterparty renders the service.
(o) 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 2022. Their adoption has not had any material impact on the disclosures or on the
amounts reported in these financial statements.
MADER GROUP 2023 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
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
AASB 2014-10 Amendments to Australia Accounting Standards – Sale or Contribution of
Assets between an investor and its Associate or Joint Venture, AASB 2015-10 Amendments
to Australian Accounting Standards – Effective Date of Amendments to AASB 10 and AASB
128, AASB 2017-5 Amendments to Australian Accounting Standards – Effective Date
of Amendments to AASB 10 and AASB 128 and Editorial Corrections and AASB 2021-7
Amendments to Australian Accounting Standards – Effective Date of Amendments to AASB 10
and AASB 128 and Editorial Corrections
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 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting
Policies and Definition of Accounting Estimates
AASB 2021-5 Amendments to Australian Accounting Standards – Deferred Tax related to
Assets and Liabilities arising from a Single Transaction
Effective for annual
reporting periods
beginning on or after
1 January 2025
1 January 2023
1 January 2023
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))
• Estimation of the number of equity instruments expected to vest as a result of the effect of non-market
based vesting conditions and valuation of the equity instruments (Note 2(n))
58 MADER GROUP 2023 ANNUAL REPORT
madergroup.com.au
4. Revenue
Operating revenue
Maintenance services
Hire recoveries
Direct expense recoveries
Total operating revenue
Timing of revenue recognition
At a point in time
Over time
Total operating revenue
Other income
Interest income
Gain on sale of associate
Other income
Total other income
5. Expenses
Expenses
Depreciation
Employee benefits expense
Share based payment expense
Finance costs
Interest expense
Other finance costs
2023
$’000
2022
$’000
545,924
374,242
369
62,500
183
27,659
608,793
402,084
62,500
546,293
608,793
27,659
374,425
402,084
1
-
2,699
2,700
-
3,354
2,825
6,179
2023
$’000
2022
$’000
16,955
405,103
3,003
9,053
279,039
1,410
3,124
418
1,196
236
MADER GROUP 2023 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
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 - current tax expense
Under/(over) provision in respect of prior year - deferred tax expense
Numerical reconciliation of income tax expense to prima facie tax payable
Profit before income tax
Tax at the Australian tax rate of 30% (2022: 30%)
Tax effect of amounts which are not deductible (taxable) in calculating taxable income:
• Differences in foreign tax rates
• Differences in state tax rates
• Other
Under/(over) provision in respect of prior year
(b) Deferred tax
Deferred tax assets
The balance comprises temporary differences attributed to:
• Lease liabilities
• Accrued expenses and provision
• Employee leave entitlements
• Share based payments
• Tax losses
• Other
Tax offset
Deferred tax liabilities
The balance comprises temporary differences attributed to:
• Accrued revenue and prepayment
• Right of use asset
• Property, plant and equipment
Tax offset
60
2023
$’000
2022
$’000
12,402
3,141
(2,281)
2,827
16,089
8,011
4,807
(363)
-
12,455
54,870
16,461
40,400
12,120
(1,304)
282
104
546
(263)
-
961
(363)
16,089
12,455
2,538
5,890
1,391
1,277
1,284
1,713
14,093
(10,776)
3,317
645
2,370
18,484
21,499
(10,776)
10,723
2,351
5,081
1,063
271
394
62
9,222
(8,278)
944
207
2,271
8,881
11,359
(8,278)
3,081
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au (c) Reconciliation
2023
Deferred tax assets
Lease liability
Accrued expenses and provision
Employee leave entitlements
Share based payments
Tax losses
Other
Deferred tax liabilities
Accrued revenue and prepayment
Right of use asset
Property, plant and equipment
2022
Deferred tax assets
Lease liabilities
Accrued expenses and provision
Employee leave entitlements
Share based payments
Tax losses
Other
Deferred tax liabilities
Accrued revenue and prepayment
Right of use asset
Property, plant and equipment
Other
Opening
balance
$’000
Recognised in
Profit or Loss
$’000
Charged to tax
provision
$’000
Closing
balance
$’000
2,351
5,081
1,063
271
394
62
9,222
207
2,271
8,881
11,359
1,018
2,175
937
-
480
462
5,072
-
1,009
1,442
(50)
2,401
187
809
328
1,006
890
1,651
4,871
438
99
9,603
10,140
1,333
2,906
126
271
(86)
(400)
4,150
207
1,262
7,439
50
8,958
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
2,538
5,890
1,391
1,277
1,284
1,713
14,093
645
2,370
18,484
21,499
2,351
5,081
1,063
271
394
62
9,222
207
2,271
8,881
-
11,359
MADER GROUP 2023 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
7. Segment Information
Management has determined that the strategic operating segments comprise of Australia, North America, 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 is as follows:
Australia
$’000
North
America
$’000
Rest of
World
$’000
Corporate
Total
$’000
$’000
427,238
111,198
7,488
369
-
40,878
20,975
468,485
132,173
3,016
24
471,501
132,197
56,950
23,202
(7,701)
(7,859)
49,249
15,343
(2,033)
(13,873)
33,343
(840)
(3,484)
11,019
-
647
8,135
(351)
7,784
1,096
(9)
1,087
(33)
(405)
649
-
-
-
-
545,924
369
62,500
608,793
11
11
2,700
611,493
(6,154)
(1,386)
(7,540)
75,094
(16,955)
58,139
(636)
(3,542)
1,673
(16,089)
(6,503)
38,508
150,519
80,929
84,027
40,905
5,607
966
12,543
252,696
10,253
133,053
2023
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
62
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au 2022
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
Australia
$’000
North
America
$’000
Rest of
World
$’000
Corporate
Total
$’000
$’000
319,960
45,316
8,966
183
21,818
341,961
3,304
-
4,695
50,011
128
-
1,146
10,112
(528)
-
-
-
-
374,242
183
27,659
402,084
3,275
6,179
345,265
50,139
9,584
3,275
408,263
40,089
(6,075)
34,014
(974)
(8,517)
24,523
10,057
(2,595)
7,462
(269)
(1,699)
5,494
2,062
(27)
2,035
(36)
(905)
1,094
(1,323)
(356)
(1,679)
(153)
(1,334)
(3,166)
50,885
(9,053)
41,832
(1,432)
(12,455)
27,945
114,492
67,438
46,582
10,159
7,029
2,792
5,014
7,746
173,117
88,135
8. Earnings Per Share (EPS)
Basic earnings per share (cents)
Diluted earnings per share (cents)
Earnings used in the calculation of basic and diluted earnings per share
Earnings used in the calculation of basic and diluted earnings per share
2023
19.25
18.21
$'000
38,508
2022
13.97
13.60
$'000
27,945
Weighted average number of ordinary shares
$'000
$'000
Weighted average number of ordinary shares used in the calculation of
basic earnings per share
Effect of dilutive potential ordinary shares
• Rights
Weighted average number of ordinary shares used in the calculation of
diluted earnings per share
200,000
200,000
11,489
5,500
211,489
205,500
MADER GROUP 2023 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
9. Dividends
Dividends paid
Dividends declared and paid during the year
• Final fully franked ordinary dividend for the year ended 30 June 2021 of 1.5 cents
per share paid on 28 September 2021 franked at the tax rate of 30%
•
Interim fully franked ordinary dividend for the year ended 30 June 2022 of 2.0 cents
per share paid on 23 March 2022 franked at the tax rate of 30%
• Final fully franked ordinary dividend for the year ended 30 June 2022 of 2.0 cents
per share paid on 27 September 2022 franked at the tax rate of 30%
•
Interim fully franked ordinary dividend for the year ended 30 June 2023 of 2.4 cents
per share paid on 6 April 2023 franked at the tax rate of 30%
2023
$’000
2022
$’000
-
-
4,000
4,800
8,800
3,000
4,000
-
-
7,000
Dividends declared after 30 June 2023
• The Company has resolved to declare a final fully franked ordinary dividend of 3.4
cents per share payable on 4 October 2023 franked at the tax rate of 30%
6,800
-
Franking account balance
Dividends declared and paid during the year
• Franking credits available for subsequent financial years as at 30 June
•
Imputation debits that will arise from the payments of dividends declared but not
recognised in the financial statements
Adjusted franking account balance
11,557
(2,914)
8,643
2,472
(1,714)
758
64
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au 10. Cash and Cash Equivalents
(a) Reconciliation of cash flow from operations with Profit after Income Tax
Profit for the year
Depreciation
Share of Profit from Associates
Disposal of Property, Plant and Equipment
Impact of Foreign Exchange
Share Based Payments
Gain on Sale of Associates
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
(b) Changes in liabilities arising from financing activities
Balance as at 1 July 2022
Financing cash flows
New leases
Other changes
Balance as at 30 June 2023
Balance as at 1 July 2021
Net financing cash inflows/(outflows)
New leases
Other changes
Balance as at 30 June 2022
2023
$’000
38,508
16,955
-
(269)
1,697
3,003
-
(35,205)
(1,335)
(2.373)
8,713
1,412
2,338
7,642
2022
$’000
27,945
9,053
(532)
(2)
1,507
1,410
(3,354)
(17,768)
(2,581)
4,128
17,746
1,344
(4,188)
680
41,086
35,388
Borrowings
$'000
Leases
$'000
33,322
22,389
-
-
55,711
27,159
6,163
-
-
33,322
8,234
(1,275)
1,707
25
8,691
3,683
(551)
5,119
(17)
8,234
Total
$'000
41,556
21,115
1,707
25
64,403
30,842
5,612
5,119
(17)
41,556
MADER GROUP 2023 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
11.
Trade and Other Receivables
Current
Trade receivables
Other receivables
Allowance for expected credit losses
2023
$’000
116,216
7,259
(656)
122,819
2022
$’000
84,493
3,759
(638)
87,614
Trade receivables are non-interest bearing and are generally on terms between 30 and 90 days. Refer to the
Financial Instruments note for further details on credit risk.
66
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au
12. Other Assets
Current
Prepayments
Other
Non-current
Other
2023
$’000
4,448
413
4,861
331
331
13. Property, Plant and Equipment
Buildings &
property
$’000
Office furniture
& equipment
$’000
Plant equipment
& motor vehicles
$’000
Capital work in
progress
$'000
30 June 2023
Cost
Accumulated depreciation
3,973
(512)
3,461
Movement in property, plant and equipment
At 1 July
Additions
Disposals
Depreciation expense
Foreign exchange
860
2,826
-
(227)
2
3,461
2,766
(1,548)
1,218
1,153
551
(8)
(486)
8
1,218
129,863
(48,203)
81,660
55,305
41,823
(1,879)
(14,646)
1,057
81,660
13,824
-
13,824
10,626
3,198
-
-
-
2022
$’000
3,323
143
3,466
391
391
Total
$’000
150,426
(50,263)
100,163
67,944
48,398
(1,887)
(15,359)
1,067
13,824
100,163
Buildings &
property
$’000
Office furniture
& equipment
$’000
Plant equipment
& motor vehicles
$’000
Capital work in
progress
$'000
30 June 2022
Cost
Accumulated depreciation
1,160
(300)
860
Movement in Property, Plant and Equipment
At 1 July
Additions
Disposals
Depreciation expense
Foreign exchange
417
514
(7)
(64)
-
860
2,230
(1,077)
1,153
898
511
-
(290)
34
1,153
86,923
(31,618)
55,305
35,607
29,182
(2,188)
(8,739)
1,443
55,305
10,626
-
10,626
-
10,626
-
-
-
10,626
Total
$’000
100,939
(32,995)
67,944
36,922
40,833
(2,195)
(9,093)
1,477
67,944
MADER GROUP 2023 ANNUAL REPORT
67
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
14. 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
2023
$’000
10,961
(2,875)
8,086
7,965
1,707
(1,596)
10
8,086
1,596
358
2,121
2022
$’000
9,759
(1,794)
7,965
3,499
5,119
(671)
18
7,965
671
152
1,152
The Group leases land and buildings for its offices and workshops under agreements of between 2 to 10 years
with, in some cases, options to extend. The leases have various escalation clauses. On renewal, the terms of the
leases are renegotiated.
15. Trade and Other Payables
Current
Trade payables
Accrued expenses
Other payables
Total
Trade payables are non-interest bearing and are normally settled on 30-day terms.
16. Provisions
Current
Employee entitlements
2023
$’000
7,691
21,920
20,357
49,968
2023
$’000
5,314
5,314
2022
$’000
7,135
18,527
15,593
41,255
2022
$’000
3,902
3,902
The current provision for employee benefits includes all unconditional entitlements where employees have
completed the required period of service and also those where employees are entitled to pro-rata payments in
certain circumstances. The entire amount is presented as current, since the consolidated entity does not have
an unconditional right to defer settlement. However, based on past experience, the consolidated entity does not
expect all employees to take the full amount of accrued leave or require payment within the next 12 months.
68
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au
17. Borrowings
Current
Secured borrowings – asset financing
Secured borrowings – working capital
Unsecured borrowings – other
Non-current
Secured borrowings - asset financing
Secured borrowings - working capital
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
Facilities available:
Secured borrowings – asset financing1
Secured borrowings – working capital1
Unsecured borrowings – other
2023
$’000
14,410
-
646
15,056
32,656
8,000
40,656
2023
$’000
47,066
8,000
646
55,712
73,089
39,530
112,619
120,155
47,530
646
168,331
2022
$’000
6,492
14,093
679
21,264
12,059
-
12,059
2022
$’000
18,551
14,093
679
33,323
23,626
28,810
52,436
42,177
42,903
679
85,759
1 Borrowings comprise (a) comitted and uncommited working capital facilities held with the Group's primary Australian lender and secondary US based lender,
and (b) asset facilities held with the Group's primary Australian lender and secondary lenders in Australia, Canada and the USA.
Australian based working capital facilities and relevant asset finance facilities are subject to a general security charge over the current and future assets
of the applicable obligor group but excluding security over specific assets financed by secondary lenders. Asset finance facilities held with secondary
lenders (both onshore and offshore) are subject to individual security arrangements over the assets financed and in some cases an ultimate parent entity
guarantee.
Borrowings held with the Group's primary lender are subject to an annual review and customary covenant reporting.
MADER GROUP 2023 ANNUAL REPORT
69
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
18.
Issued Capital
Issued Capital
Ordinary shares
30 June
2023
Number of
shares
30 June
2022
Number of
shares
200,000,000
200,000,000
30 June
2023
$’000
2
30 June
2022
$’000
2
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.
19. Reserves
Nature and purpose of reserves
(a) Foreign Currency Translation Reserve
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.
(b) Share Based Payments Reserve
The share based payments reserve is used to recognise the value of the vesting of equity settled share based
payments provided to employees, including key management personnel, as part of their remuneration.
20. Share Based Payments
Equity Settled Rights Plan
The Group has an equity incentive plan for eligible participants by offering them Performance Rights (PRs) and/or
Share Appreciation Rights (SARs). In accordance with the terms of the plan, as approved by the shareholders at
a previous annual general meeting, eligible participants include employees and certain Executive Directors of the
Group as declared by the Board from time to time.
In accordance with the plan, each performance right constitutes a right to receive one share and each share
appreciation right constitutes a right to receive a number of shares upon satisfaction of the applicable vesting or
exercise conditions. The number of shares granted for share appreciation rights is calculated in accordance with
the formula approved by the shareholders at the 2021 annual general meeting.
70
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au Details of the rights issued during the year are as follows. For vesting conditions for the rights issued, refer to the
Remuneration Report.
Performance Rights Series
Number
Grant Date
Expiry Date
Method of
Valuation
Fair Value at
Grant Date
Share Appreciation Rights
400,000
09-Jan-23
30-Jun-24
Black Scholes
FY26 Performance Rights
220,000
3 & 20-Oct-26
30-Jun-26
Black Scholes
2.52
2.59
The following assumptions were used:
Input
Dividend Yield (%)
Expected Volatility (%)
Risk Free Interest Rate (%)
Expected Life of Performance Rights (Years)
Rights Exercise Price (A$)
Share Price at Grant (A$)
Details of the rights outstanding as at the end of the year are as follows:
Number of Rights
Outstanding at beginning of year
Granted during the year
Forfeited during the year
Exercised during the year
Expired during the year
Outstanding at end of year
SARs
3.01
55.50
3.31
2.00
1.00
3.64
FY26 PRs
3.01
55.50
3.74
4.00
-
2.90
2023
2022
11,140,000
620,000
(120,000)
-
-
-
11,140,000
-
-
-
11,640,000
11,140,000
MADER GROUP 2023 ANNUAL REPORT
71
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
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.
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 debt obligations based on floating interest rates. Management minimizes 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.
72
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au 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
2023
Financial assets
Cash and cash equivalents
0.0%
Trade and other receivables
Financial Liabilities
Trade and other payables
Lease liabilities
Borrowings
-
-
4.3%
7.0%
2022
Financial assets
Cash and cash equivalents
0.0%
Trade and other receivables
Financial Liabilities
Trade and other payables
Lease liabilities
Borrowings
-
-
4.3%
3.9%
-
-
-
-
-
8,000
8,000
-
-
-
-
-
14,093
14,093
-
-
-
-
-
-
-
-
1,394
15,056
16,450
7,298
32,656
39,954
13,010
122,819
135,829
13,010
122,819
135,829
49,968
49,968
-
-
8,692
55,712
49,968
114,372
-
-
-
-
-
-
-
-
1,233
7,171
8,404
7,000
12,059
19,059
6,648
87,614
6,648
87,614
94,262
94,262
41,255
-
-
41,255
41,255
8,233
33,323
82,811
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 2023 ANNUAL REPORT
73
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, one customer 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.
The following table details the risk profile of trade and other receivables based on the Group’s provision matrix. As
the Group’s historical credit loss experience does not show significantly different loss patterns for different cus-
tomer segments, the provision for loss allowance based on past due status is not further distinguished between
the Group’s different customer segments.
Aging (Days)
Current
$'000
31-60
$'000
61-90
$'000
69,470
39,593
10,920
-
-
-
69,470
39,593
10,920
51,746
25,292
-
-
51,746
25,292
7,885
-
7,885
>91
$'000
3,494
(657)
2,837
3,329
(638)
2,691
Total
$'000
123,476
(657)
122,819
88,252
(638)
87,614
2023
Trade and other receivables
Expected loss allowance
2022
Trade and other receivables
Expected loss allowance
74
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au 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:
2023
Trade and other payables
Lease liabilities
Borrowings
2022
Trade and other payables
Lease liabilities
Borrowings
1 year or less
1 to 5 years
More than 5
years
Contractual
cash flows
Carrying
amount
$’000
$’000
$’000
$’000
$’000
49,968
1,841
25,175
76,984
41,255
1,565
22,997
65,817
-
9,858
35,277
45,135
-
6,487
11,059
17,546
-
753
-
753
-
1,417
-
1,417
49,968
12,452
60,452
122,872
41,255
9,469
34,056
84,780
49,968
8,691
55,712
114,371
41,255
8,234
33,323
82,812
22. Commitments and Contingencies
(a) Capital Expenditure Commitments
Capital Commitments
Committed at the reporting date but not recognised as liabilities:
• Property, plant and equipment
2023
$’000
2022
$’000
17,813
17,813
29,869
29,869
(b) Contingencies
Other than guarantees that are issued to third parties arising out of dealings in the normal course of
business, there are no contingent liabilities as at 30 June 2023 (2022 nil).
MADER GROUP 2023 ANNUAL REPORT
75
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
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
2023
$
2022
$
151,907
37,228
189,135
-
-
-
189,135
127,022
8,390
135,412
15,757
-
15,757
151,169
190,586
29,278
-
-
190,586
29,278
379,721
180,447
76
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au 24. Material Subsidiaries
The consolidated financial statements of the Group include the following material subsidiaries:
Mader Contracting Pty Ltd
Mader Queensland Pty Ltd
Mader Corporation
Mader Energy LLC
Mader Assets LLC
Mader Mining (Canada) Limited
Mader International Limited
Mader Gobi LLC
Mader Mechanical Limited
Mader PNG Limited
25. Parent Entity Information
Country of Incorporation
Australia
Australia
USA
USA
USA
Canada
Hong Kong
Mongolia
Zambia
Papua New Guinea
Current assets
Non-current assets
Total assets
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Issued capital
Reserves
Retained earnings
Total equity
% of Equity Interest
2023
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
2022
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
2023
$’000
2022
$’000
116
40,011
40,127
3,535
6,718
10,253
136
16,477
16,613
5,391
2,355
7,746
29,874
8,867
2
6,310
23,562
29,874
2
2,095
6,770
8,867
Profit after income tax for the year
25,592
2,372
26. Deed of Cross Guarantee
As at 30 June 2023 and/or 30 June 2022, the Group had not entered into a deed of cross guarantee in relation
to the debts of its subsidiaries.
MADER GROUP 2023 ANNUAL REPORT
7 7
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
28. 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
Share based payments
Total
2023
$’000
4,158
148
68
1,683
6,057
2022
$’000
4,454
156
41
803
5,454
Detailed remuneration disclosures are provided in the Remuneration Report.
(d) Loans and other transactions with key management personnel
Other than the transactions disclosed in the Remuneration Report, there were no loans to or other transactions
with Directors and executives during the financial year ended 30 June 2023 and 30 June 2022.
29. Events After the End of the Reporting Period
On 21 August 2023, the Company declared a final fully franked dividend of 3.4 cents per share. The total value of
the dividend payment is $6.8 million. The record date is 20 September 2023 with a payment date of 4 October
2023.
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.
787878
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au
Directors' 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 2023 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:
Luke Mader
Executive Chairman & Founder
Dated this 21st day of August 2023
MADER GROUP 2023 ANNUAL REPORT
79
Independent Audit Report
INDEPENDENT AUDITOR'S REPORT
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
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
Level 9, Mia Yellagonga Tower 2
5 Spring Street
Perth, WA 6000
PO Box 700 West Perth WA 6872
Australia
To the members of Mader Group Limited
INDEPENDENT AUDITOR'S REPORT
Report on the Audit of the Financial Report
Opinion
To the members of Mader Group Limited
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 2023, the
Report on the Audit of the Financial Report
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
of changes in equity and the consolidated statement of cash flows for the year then ended, and notes to
Opinion
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 2023, the
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
consolidated statement of profit or loss and other comprehensive income, the consolidated statement
Act 2001, including:
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’
Giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its financial
(i)
declaration.
performance for the year ended on that date; and
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
(ii)
Act 2001, including:
Basis for opinion
Giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its financial
(i)
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
performance for the year ended on that date; and
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
(ii)
Report section of our report. We are independent of the Group in accordance with the Corporations Act
2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110
Basis for opinion
Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
responsibilities in accordance with the Code.
Report section of our report. We are independent of the Group in accordance with the Corporations Act
We confirm that the independence declaration required by the Corporations Act 2001, which has been
2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110
given to the directors of the Company, would be in the same terms if given to the directors as at the
Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are
time of this auditor’s report.
relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical
responsibilities in accordance with the Code.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for
our opinion.
We confirm that the independence declaration required by the Corporations Act 2001, which has been
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 for
our audit of the financial report of the current period. These matters were addressed in the context of
our opinion.
our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide
a separate opinion on these matters.
Key audit 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.
80
80
MADER GROUP 2023 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 the
financial report.
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.
•
•
•
Performing analytical procedures to understand
movements and trends in revenue for comparisons
against expectations;
Testing the operating effectiveness of internal
controls surrounding revenue relating to the
existence of labour hours sold;
Assessing 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 report.
MADER GROUP 2023 ANNUAL REPORT
81
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 2023, 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.
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MADER GROUP 2023 ANNUAL REPORT madergroup.com.au
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report included in pages 34 to 40 of the directors’ report for the
year ended 30 June 2023.
In our opinion, the Remuneration Report of Mader Group Limited, for the year ended 30 June 2023,
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
Dean Just
Director
Perth,
21 August 2023
MADER GROUP 2023 ANNUAL REPORT
83
848484
MADER GROUP 2023 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 9 August 2023.
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
1,485
1,100
240
251
42
3,118
649,706
2,762,923
1,811,870
6,927,605
187,847,896
200,000,000
The number of shareholders holding less than a marketable parcel of ordinary shares is 62 (being 79 Shares as at
8 August 2023).
Performance Rights
The Company has 9,840,000 Performance Rights on issue. Performance Rights do not entitle the holders to
vote in respect of that Performance Right, nor participate in dividends, when declared, until such time as the
performance rights vest and are subsequently registered as ordinary shares.
Distribution of Performance Rights
The number of rights holders, 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 Rights
-
-
-
15
281
43
-
-
-
760,000
9,080,000
9,840,000
1 Mr Justin Nuich, as trustee for the J&C Nuich Family Trust, holds 2,250,000 performance rights comprising 22.87% of this class.
MADER GROUP 2023 ANNUAL REPORT
85
S H A R E H O L D E R I N F O R M A T I O N
Share Appreciation Rights
The Company has 1,800,000 Share Appreciation Rights on issue. Share Appreciation Rights do not entitle the
holders to vote in respect of that Share Appreciation Right, nor participate in dividends, when declared, until such
time as the Share Appreciation Rights vest and are subsequently registered as ordinary shares.
Distribution of Share Appreciation Rights
The number of rights holders, 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 Rights
-
-
-
-
31
3
-
-
-
-
1,800 ,000
1,800,000
1 Mr Justin Nuich, as trustee for the J&C Nuich Family Trust, holds 1,000,000 share appreciation rights comprising 55.56% of this class; Ms Joanna Kiernan,
the spouse of Mr Paul Hegarty, holds 400,000 share appreciation rights, comprising 22.22% of this class; Mrs Breanna Greville, the spouse of Mr John
Greville, holds 400,000 share appreciation rights, comprising 22.22% of this class.
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
1. Luke Mader, Amy Mader, and Maidment Bridge Farm Investments Pty Ltd1
2. Skye Alba Pty Ltd2
1 See ASX Announcement on 30 September 2019.
2 See ASX Announcement on 9 March 2021.
Number of Shares
% of Shares
112,000,000
40,000,000
56.00
20.00
86
MADER GROUP 2023 ANNUAL REPORT madergroup.com.au 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. CITICORP NOMINEES PTY LIMITED
5.
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
6. MS AMY MADER
7.
NATIONAL NOMINEES LIMITED
8. HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
9. GOTTERDAMERUNG PTY LIMITED
10. BNP PARIBAS NOMINEES PTY LTD
11. CAVES HOUSE HOLDINGS PTY LTD
12. UBS NOMINEES PTY LTD
13. MR GREGORY ROSS MADER + MRS IRENE THERESE MADER
14. W FAIRWEATHER & SON PTY LTD
15. HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
16. HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
17. WARBONT NOMINEES PTY LTD
18. GANG - GANG PTY LTD
19. BNP PARIBAS NOMS PTY LTD
20. BOND STREET CUSTODIANS LIMITED
Number of Shares % of Shares
63,750,000
42,500,000
39,000,000
11,159,348
6,874,815
5,750,000
3,005,622
2,859,760
2,138,000
1,408,116
1,390,000
806,306
600,000
475,000
426,671
410,675
335,134
330,000
322,354
307,095
31.88
21.25
19.50
5.58
3.44
2.88
1.50
1.43
1.07
0.70
0.70
0.40
0.30
0.24
0.21
021
0.17
0.17
0.16
0.15
Total
183,848,896
91.92
Securities Exchange Quotation
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 2023 financial year can be accessed at:
www.madergroup.com.au/investor-centre/corporate-governance
MADER GROUP 2023 ANNUAL REPORT
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MADER GROUP 2023 ANNUAL REPORT madergroup.com.au MADER GROUP 2023 ANNUAL REPORT
89
CANADA
Alberta
Edmonton Office
Suite 310
13220 St. Albert Trail
Edmonton, Alberta
Calgary Office
Suite 320
7326 10 Street Northeast
Calgary, Alberta
USA
Colorado
Fort Collins Office
2950 E. Harmony Road
Suite #220
Fort Collins, Colorado
Nevada
Reno Office
5470 Kietzke Lane
Suite #300
Reno, Nevada
Texas
Fort Worth Office
3116 W 6th Street
Fort Worth, Texas
AUSTRALIA
Western Australia
Head Office
Suite A1, Hkew Alpha Building
2 George Wiencke Drive
Perth Airport, Western Australia
Mader Maintenance Centre
43/49 Nardine Close
High Wycombe, Western Australia
Kalgoorlie Office
Unit 7
19 Cheetham Street
Kalgoorlie, Western Australia
Queensland
Brisbane Office
Level 2
1/485 Kingsford Smith Drive
Hamilton, Queensland
New South Wales
Singleton Office
Unit 5
108 John Street
Singleton, New South Wales
O
www.madergroup.com.au
www.madergroup.com
O
O www.maderenergy.com