2022 ANNUAL REPORT WHEN IT
HAS TO BE
DONE RIGHT
SRG Global is a diversified industrial services
company. We bring an engineering mindset
to deliver critical services for major industry
through our asset maintenance, mining services
and engineering and construction businesses
to solve complex problems across the entire
asset lifecycle.
CONTENTS
SRG GLOBAL LTD ABN 81 104 662 259
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SRG GLOBAL 2022 ANNUAL REPORT 3
SRG GLOBAL 2022 ANNUAL REPORT THIS IS
US
WHO WE ARE
We are a diversified
industrial services
company
WHAT WE DO
We bring an engineering
mindset to deliver
critical services for
major industry
OUR VISION
The most sought-after
diversified industrial
services business
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SRG GLOBAL 2022 ANNUAL REPORT
OPERATING SEGMENTS
OUR
OPERATING
SEGMENTS
Asset Maintenance
Mining Services
Engineering and Construction
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SRG GLOBAL 2022 ANNUAL REPORT ASSET MAINTENANCE
The most sought-after asset
maintenance capability
The Asset Maintenance segment continued its sustained growth in FY22
with numerous long-term contract awards and extensions.
What we do
Core Services
SRG Global bring an engineering mindset, a large scale
multi-disciplinary workforce and the access solutions to
make maintaining critical infrastructure and industrial
assets easier. We are an embedded partner to our
clients delivering continuous maintenance services,
large scale shutdown solutions and sustaining capital
projects. The breadth of our skills and capabilities
means asset owners only have to deal with one
contractor, which significantly reduces risk, time, cost
and complexity. SRG Global is a contractor with the
diverse technical know-how, the workforce and all the
access equipment needed to sustain or extend the life
of any critical asset.
Integrated Maintenance Services
Mechanical, electrical and plumbing for fixed plant maintenance.
Access Solutions
Scaffold and rope access.
Industrial Services
Industrial cleaning, paint and blast, NDT and insulation and lagging.
Refractory
Installation of refractory, gunning and casting of refractory products
and installation of refractory anchors.
Remediation Services
Protective coatings, waterproofing, concrete repair and
strengthening.
Civil Maintenance
Maintenance of tailings storage facilities and other ancillary
site infrastructure.
Key Projects
• Fortescue Metals Group - maintenance and shutdown contract at Iron Bridge mine site
• Rio Tinto - access and refractory services at QAL alumina refinery
• Meridian Energy - multi-disciplinary services contract for renewable energy infrastructure in NZ
Key Clients
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SRG GLOBAL 2022 ANNUAL REPORT ASSET MAINTENANCE
SRG GLOBAL 2022 ANNUAL REPORT
7
MINING SERVICES
Applying our technology and
data driven approach to optimise
mining productivity
SRG Global’s Mining Services segment achieved a strong financial result in FY22 due
to excellent operational execution and asset utilisation, as well as securing a number
of long-term contracts that will underpin this segment and provide a platform to grow.
What we do
Core Services
SRG Global is the only drill and blast contractor
that offers an integrated range of complementary
technical services to significantly improve safety and
productivity on a mine site. Working with our quality
clients, SRG Global applies our custom-built software
‘Orbix’ to provide a uniquely adaptive approach to
drilling and blasting, optimising productivity and asset
utilisation. We are dynamic in how we work, executing
drilling programs with precision and responding
confidently to challenges that arise in the open pit
each day. SRG Global is continually investigating
safer and more innovative ways of working, and
re-engineering our machines to improve performance
for each customer’s mine site.
Production Drill and Blast
Production drilling, pre-split drilling, blasting services,
explosives supply and management, drill and equipment hire.
Specialist Drilling services
Reverse circulation grade control, high reach drilling,
geotech specialist drilling and horizontal depressurisation
(dewatering) drilling.
Specialist Geotech
Geotechnical investigation, instrument installation, rope
access services, mine wall support and remediation, rockfall
protection systems, depressurisation, ground support
product manufacture and supply.
Key Projects
• Northern Star, KCGM gold operations, WA - geotechnical ground support, rock fall protection
systems, depressurisation drilling and rope access services
• SIMEC Mining, iron ore operations, SA – drill and blast services
• Navarre Minerals, Mt Carlton gold mine, QLD - drill and blast services
Key Clients
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SRG GLOBAL 2022 ANNUAL REPORT MINING SERVICES
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SRG GLOBAL 2022 ANNUAL REPORT ENGINEERING AND CONSTRUCTION
Bringing an engineering mindset to
deliver critical services
SRG Global’s Engineering and Construction segment continued to deliver solid results in
FY22 across key areas of specialist civil and engineering, facades and structure packages.
What we do
SRG Global’s Engineering and Construction team solve
problems to construct both more efficiently and cost
effectively by providing specialist technical expertise,
innovative technology and equipment and a highly
skilled workforce. We provide specialist engineering,
construction services for complex structures in
key markets including dams, bridges, mine site
infrastructure, wind farms, aviation and tanks as well as
specialist facade and structural construction with repeat,
tier one clients. Decades of experience across all forms
of iconic infrastructure has allowed us to develop the
innovative techniques and the specialised tools needed
to make any infrastructure project less complex.
Core Services
Civil / Infrastructure
Complex structures, dam construction and strengthening,
bridges, tanks, windfarms, mine site infrastructure, civil
maintenance and remediation, aviation and marine
infrastructure.
Engineered Products
Structural products, architectural and façade products,
post-tensioning products, reinforcing products and ground
stabilisation products.
Specialist Facades
Facade design and construction, curtain wall facade design
and certification and facade installation.
Structures West
End to end delivery of structural concrete construction.
Key Projects
• Transport for NSW – New England Highway upgrade at Bolivia Hill
• Water Corporation – Design and construction of 20ML post tensioned tank in Karratha, WA
• Elizabeth Quay waterfront precinct – Structural concrete and façades packages for One the
Esplanade for Multiplex and Elizabeth Quay West for D&C Corporation
• BCI Minerals – Civil construction of large scale evaporation ponds and other site infrastructure
for the Mardie Salt and Potash project in the North West of WA
Key Clients
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SRG GLOBAL 2022 ANNUAL REPORT ENGINEERING AND CONSTRUCTION
SRG GLOBAL 2022 ANNUAL REPORT
11
CHAIRMAN’S REPORT
Going from strength to strength
at SRG Global
It is my pleasure to present the 2022 SRG Global Limited Annual Report.
During the 2022 financial year we have continued to take significant
steps forward in our strategic journey and in positioning the Company
for long-term sustainable growth and success into the future. The Board
is extremely pleased with the way our people continue to step up to
every challenge and opportunity, and in doing so have delivered another
excellent outcome for our shareholders.
SRG Global’s vision is to be the “most
sought-after” company in the areas
in which we operate. Our strategic
transformation to a truly diversified
industrial services business is delivering
results and the Board and I would like
to sincerely thank all our people for
their commitment and dedication to
SRG Global.
STRONG FOUNDATION FOR
CONTINUED GROWTH
SRG Global’s strategic transformation
to a company with two thirds annuity
style earnings has delivered both
protection and opportunity in a difficult
broader macro environment. It has also
provided the solid platform on which
to grow our business as we continue
to bring our engineering mindset to
the delivery of critical services for
major industry. Moving forward, we
will continue to focus on opportunities
with quality clients who value our fully
integrated service offering / specialist
skill set and are aligned with our
commercial framework. This will further
cement our market leading position
across the many diverse market sectors
and geographies in which we operate.
Our strong foundation has been built
through developing relationships,
building capability and importantly
successfully delivering projects for our
blue-chip clients. This combined with
the leadership and capabilities of our
strong and stable Board, Executive and
Management team are the catalyst for
our positive and consistent returns.
I would like to acknowledge SRG
Global’s Managing Director, David
Macgeorge and his Executive team
who continue to successfully lead and
execute our strategy through creating
an environment and culture that
enables people to be the “best that
they can be”. The Company is in the
strongest position it has been in my
time with the business and is extremely
well positioned for the future.
BOARD AND GOVERNANCE
On a personal level I would like to
thank the Board of Directors for their
ongoing support and contribution over
the last 12 months. I am pleased with
the way that the Board is operating and
interacting with the broader business
to ensure our continued success and
to keep delivering increased returns to
our shareholders.
I would particularly like to acknowledge
Peter Brecht who is retiring from the
Board at our AGM in October. Peter has
made a significant contribution to SRG
Global in the last eight years. I thank
Peter for the support and guidance he
has provided the Company and wish
him well in all future endeavours.
In FY22, we welcomed Amber Banfield
to the Board. Amber has made a terrific
contribution to the company in her
short time with the business and she
brings a unique and diverse set of skills
which is highly complementary to the
rest of the Board.
We continue to monitor and assess the
skillset and composition of the Board
and I am confident the Board
we have in place has an excellent mix
of expertise and experience to take
SRG Global into the future.
OUR FUTURE
SRG Global is very well positioned
to continue to execute our growth
strategy over the next few years in a
disciplined and measured way. As we
build SRG Global, we will always remain
focused on delivering strong returns to
our shareholders and quality outcomes
for our clients. I firmly believe that we
are on the right path and have the
right people, capabilities, strategy and
culture to take us on the next phase
of our journey which will be highly
rewarding for both our people and
our shareholders.
In closing and on behalf of the Board,
I extend my appreciation to all our
people and shareholders for their
ongoing support and I am looking
forward to an exciting future ahead
for SRG Global.
Peter McMorrow
Non-Executive Chairman
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SRG GLOBAL 2022 ANNUAL REPORT CHAIRMAN’S REPORT (CONTINUED)
Live for the
challenge
Smarter
together
We live to solve problems and have the
Individually, we’re all pretty smart but
courage to challenge the status quo and
when we pool our resources and work
what’s considered possible.
together as one, we’re capable of taking
on the world.
WHAT WE
STAND FOR
Never
give up
Have each
other’s backs
We’re doers. We are resilient and
We’re stronger as one team.
relentlessly pursue excellence in everything
We look out for each other and keep
we do. 100% accountability, zero excuses.
each other out of harm’s way.
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SRG GLOBAL 2022 ANNUAL REPORT MANAGING DIRECTOR’S REPORT
Our strategic transformation to a truly
diversified industrial services business
is delivering results
The 2022 financial year has been another transformational year for
SRG Global in executing our strategy and continuing to deliver increased
shareholder value. Our strategic transformation to a truly diversified
industrial services business is delivering exceptional results against
a challenging macroeconomic environment and demonstrates the
resilience of our business model.
I am incredibly proud of our people and their dedication and commitment
to delivering our strategy. The result of their collective efforts is
testament to how far we as a company and as a team have come.
Our continued strong performance is
underpinned by excellent operational
execution. Importantly I would like to
acknowledge the significant efforts of
our people and their ability to deliver
in a way that is core to SRG Global –
we live for the challenge, are smarter
together, never give up and have each
other’s backs. We are now very well
positioned for the future and ultimately
becoming the company that I know
we can be.
OUR PEOPLE
Our people are the key to our success
and are the ultimate drivers of SRG
Global. I would like to thank all our
people for their significant efforts
over the past year and our strong
FY22 performance is the result of
their dedication, discipline and focus
to deliver both operationally and
strategically.
Importantly, our strong culture has
been the foundation that has allowed
us to thrive in what has been a very
challenging operating environment.
I could not be more proud of how
our team has come together as
“one business-one team” to drive
our success.
We have grown our business to over
2,600 people and I am particularly
pleased with the diversity of our team.
We continue to attract and retain our
people who are motivated by working
at SRG Global where they have both a
voice and the opportunity to make a
difference in what we do.
Our commitment to making a positive
contribution in the communities in
which we operate is embedded in
the way we do business. This year we
have been involved in a broad range
of initiatives that promote community,
diversity and development. Our
relationship with the Njamal people
through our established JV Company,
Bugarrba, has been successful in
securing further works that provide
sustainable employment opportunities
for Aboriginal People. We have made
good progress on our Reconciliation
Action Plan and advanced our
long-term commitments to
strengthening our relationships
with Aboriginal People.
ZERO HARM
Zero Harm is a journey that never ends
and I often refer to it as the glass ball in
business that you can never drop.
Our established Zero Harm
Committees operate at all levels within
the business including at Board level.
This drives our Zero Harm culture by
setting clear goals, giving employees
the skills and training they need and
encouraging people at all levels to be
involved in our Zero Harm journey.
This year we have implemented various
health and safety initiatives including
leadership and training programs. We
continually invest in new technology
and equipment enhancements to set
standards that go beyond compliance.
Pleasingly, our TRIFR has improved by
42% during the year. That noted, I will
never be satisfied until it is zero and we
will relentlessly pursue Zero Harm in
everything we do.
OUR STRATEGIC TRANSFORMATION
SRG Global is realising the benefits
of the implementation of our
clear strategy. Strong operational
performance, sustained margin
improvement, new contract wins
and a strategic acquisition have
characterised FY22 for the Company.
I am particularly pleased that we
have transitioned the business towards
annuity earnings and are now a truly
diversified industrial services company.
Our FY22 financial performance is
clear evidence of the strength and
diversity of our business which
has provided both protection and
opportunity in a challenging broader
macro environment.
During the year SRG successfully
acquired WBHO Infrastructure, a civil
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SRG GLOBAL 2022 ANNUAL REPORT MANAGING DIRECTOR’S REPORT (CONTINUED)
MULTI-DISCIPLINARY SERVICES CONTRACT, PILBARA WA.
services and maintenance company
with whom we have worked in
partnership previously. The acquisition
provides complementary and further
annuity-style earnings and positive
exposure to a diverse range of sectors
including mining, transport, renewable
energy, infrastructure and aviation. I
would like to acknowledge and thank
the WBHO Infrastructure people for
the way they have embraced and
further strengthened SRG Global and
the way we do business.
Going into the new financial year, the
Company has record Work in Hand of
$1.3b, which is up 30% on FY21, and
has us well positioned for long-term
sustainable growth.
RECORD WORK IN HAND
$1b
30 JUNE 2021
D i v e r s e C a p a b i
i t y
l
Diverse Sectors
$1.3b
30 JUNE 2022
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SRG GLOBAL 2022 ANNUAL REPORT MANAGING DIRECTOR’S REPORT (CONTINUED)
OPERATIONAL REVIEW
Asset Maintenance Services
For FY22 the Asset Maintenance
Services segment delivered revenue
of $214.8m (2021: $186.9m) and EBITDA
of $25.2m (2021: $22.0m).
The Asset Maintenance Service segment
continued its sustained growth in FY22
with numerous long-term contract
awards and extensions. Encouragingly
the majority of contract wins were
through existing clients, clear evidence
that our relationship-based approach
to delivery enables us to grow by doing
more with our current clients. Examples
of these include the following:
Mining Sector
• 5-year maintenance and shutdown
contract with FMG Iron Bridge JV
at Iron Bridge Mine Site;
• 5-year multi-disciplinary services
term contract for scaffold services
with FMG port operations and
facilities (through SRG Global
Aboriginal JV ‘Bugarrba’);
• 3-year contract for shutdown
maintenance services with
Roy Hill; and
• 3-year maintenance contract for
major nickel and cobalt operations
in the Goldfields region of WA.
Dairy Sector
• 3-year contract for specialist
engineered access services with
Fonterra in NZ.
Utilities Sector
• 1-year extension to existing
specialist industrial services
contract with Transpower NZ.
Refinery - Oil Sector
• 1-year extension to existing
industrial services contract
for Refining NZ.
Refinery - Alumina Sector
• 18-month contract for shutdown
scaffolding services at Rio Tinto’s
QAL alumina refinery; and
• 18-month contract for access and
refractory services at Rio Tinto’s
QAL alumina refinery.
Manufacturing Sector
• Maintenance contract for specialist
refractory installation for Visy
Industries Australia.
Renewable Energy Sector
• 7-year multi-disciplinary services
contract with Meridian Energy
in NZ.
Energy Sector
• 5-year contract for scaffold and
specialist industrial services with
NRG Gladstone.
These contracts represent another
significant step forward in our strategy
to expand services with blue-chip clients
across multiple industries and build
on our portfolio of annuity / recurring
earnings agreements.
Further to the 5-year multi-disciplinary
services contract SRG Global is
delivering across FMG’s mine, rail and
port infrastructure, we have also secured
an additional five-year master agreement
for maintenance and shutdown services
across its new Iron Bridge magnetite
project in Western Australia. This award
is a strong endorsement of our ability
to maintain critical assets through our
diversified industrial services offering.
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FMG FACILITIES, PILBARA REGION OF WA
SRG GLOBAL 2022 ANNUAL REPORT MANAGING DIRECTOR’S REPORT (CONTINUED)
SUPERPIT MINE SITE, WA
Our geographic expansion into the
Gladstone region provides access
to a deep pool of opportunities in
a concentrated location. The initial
success we have achieved in this key
oil and gas and industrial refining
region through applying our integrated
multi-disciplinary maintenance services
model to a targeted group of blue-chip
clients provides an additional platform
for growth through our highly scalable
business model.
Going forward, we continue to build
competitive advantage by maturing our
technology and data analytics offerings
through our engineering mindset. These
proven bespoke offerings provide a
point of difference to our overall end-to-
end asset lifecycle service offering and
contribute to making SRG Global the
most sought-after diversified industrial
services business.
Mining Services
For FY22 the Mining Services
segment delivered revenue of $114.0m
(2021: $90.9m) and EBITDA of $23.9m
(2021: $20.0m). Our strong financial
result is due to excellent operational
execution and asset utilisation with
our quality clients in the gold and iron
ore sectors in our Production Drill
and Blast business, combined with
our Geotech business unit’s strategic
shift to focus exclusively in the
mining sector.
Mining Services has maintained
strong operational performance
and has secured several significant
contract extensions and new contracts
throughout the year. These recent
awards underpin our business through
production based long-term contracts
and provide a platform to grow
organically with our client base in this
sector. Examples of these include:
• 5-year term contract for
geotechnical ground support,
rock fall protection systems,
depressurisation drilling and
rope access services at Northern
Star’s KCGM gold operations in WA;
• 5-year term contract with SIMEC
Mining iron ore operations in SA;
• 2-year term contract with Evolution
Mining to provide specialist drill and
blast services, RC grade control
drilling and geotechnical ground
support services at the Cowal gold
mine in NSW;
• 2-year term contract with Navarre
Minerals to provide specialist drill
and blast services and RC grade
control drilling at the Mt Carlton
gold mine in QLD; and
• 6-month contract with RED 5 to
provide specialist drill and blast
services and explosives supply at
the Great Western gold mine in WA.
The Northern Star contract continues
SRG Global’s 25+year history at the
Kalgoorlie Super Pit and provides a
platform to further strengthen our
relationship to deliver critical services
(from other SRG Global business units)
across Northern Star’s operations.
Continuing demand for our integrated
drill and blast capability is driven by
our technology-led approach. Our
in-house developed analytics software
‘Orbix’ has matured and strengthened
to maximise data driven insights that
improve decision making, for both
SRG Global and our clients. Working
collaboratively with our clients, we fully
integrate this service offering into our
clients’ data systems and use the data
driven insights to better plan, deliver,
monitor and optimise the delivery of
these critical services and ultimately
enhance our clients’ operations.
The overall Mining Services business
has a strong order book and is in a
position to grow long-term recurring
revenue streams with quality
clients whose production-based
sites operate at the low end of the
industry cost curve.
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SRG GLOBAL 2022 ANNUAL REPORT MANAGING DIRECTOR’S REPORT (CONTINUED)
NEW ENGLAND HIGHWAY UPGRADE AT BOLIVIA HILL, NSW
Engineering and Construction
For FY22 the Engineering and
Construction segment delivered
revenue of $315.4m (2021: $291.7m)
and EBITDA of $22.8m (2021: $19.0m).
The Engineering and Construction
segment continued to deliver
strong results whilst refocusing the
business in the remediation and
civil maintenance markets and also
making good progress on exiting
non-core businesses.
The Civil business in Australia
performed strongly across a diverse
range of sectors, applying our
engineering led approach to the
delivery of bridges, tanks and dams.
The capabilities of our Civil team were
recognised at the CCF NSW’s Earth
Awards ($75M to $150M category)
for their work on the New England
Highway Upgrade at Bolivia Hill, NSW.
Additionally our focus on the marine
infrastructure sector resulted in the
successful delivery of multiple projects
in this space.
Strong commodity prices are
contributing to the positive outlook in
the resources sector, whilst investment
in government funded infrastructure
remains buoyant. Through the
acquisition of WBHO Infrastructure,
the Company has increased its
exposure to the resources, renewable
energy and aviation sectors. As part
of this transaction we also secured
the highest possible national road and
bridge accreditation (R5/B4), which
will now allow SRG Global to tender
for any major road and bridge project
nationally. Importantly we will also
continue to selectively pursue
projects that adopt a collaborative
contracting model.
Our international operations were
successfully scaled back in FY22,
in particular to minimise potential
COVID-19 related impacts. In FY23, the
business will recommence assessing
opportunities internationally where our
specialist capabilities can be applied,
specifically in dams, bridges and tanks.
The Structures West business
performed strongly delivering
landmark projects within Elizabeth
Quay and Capital Square in Perth.
Importantly, the business secured a
number of contracts in the burgeoning
defence sector, which is our first
significant entry into this space
and which will provide significant
opportunities across not only
Engineering and Construction but also
our broader business moving forward.
The Specialist Facades business is
a true market leader in its field with
many tier 1 projects across Australia
with key repeat clients in sectors
ranging from health, education,
defence, retail, commercial, hospitality
and high rise residential. The business
performed strongly in FY22 and now
has record work in hand with clear
visibility of further opportunities that
will position us well for the next three
to four years.
The Engineered Products business
continues to grow both domestically
and internationally. In FY22 we
relocated our manufacturing
operations from Brisbane to a purpose-
built facility in Sydney which will
provide supply chain, operational
and logistics benefits to SRG Global.
I believe this business has the
ability to grow both organically and
inorganically within clients, sectors and
geographies that we know and operate
in today. Importantly, this business has
a low risk profile that is aligned with
the SRG Global business model.
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SRG GLOBAL 2022 ANNUAL REPORT MANAGING DIRECTOR’S REPORT (CONTINUED)
PORT HEDLAND, PILBARA WA
KEEPIT DAM, NSW
SRG GLOBAL 2022 ANNUAL REPORT
19
MANAGING DIRECTOR’S REPORT (CONTINUED)
FINANCIAL STRENGTH
Our underlying FY22 EBITDA result
of $57.2m, after excluding one-off
transaction costs of $1m for the
WBHO Infrastructure acquisition
is above our previously upgraded
guidance range of $54m to $57m.
This is 22% higher than the FY21
result which is a terrific outcome.
SRG Global’s continued strong margin
performance has been underpinned
by excellent operational execution.
Our EBITDA margin performance of
8.9% is 8% higher than FY21 and is
clear evidence of our ability to win
and execute contracts with quality
clients under the right commercial
terms. This has been achieved despite
the challenging macroeconomic
environment we have been operating in.
SRG Global is in a robust financial
position with available funds of
$127.7m. Importantly, the Company
generated excellent operating cash
flow in FY22 with EBITDA to Cash
Conversion of 106%, and this being
despite acquiring WBHO Infrastructure
for $15.1m and net investment of $18.4m
in capital expenditure in the period. Our
overall net cash position improved 68%
to $20.5m and continues our strong
track record of cash generation.
The strength of our balance sheet
provides the foundation to fund our
future growth plans. This enables
the Company to be agile when
opportunities present themselves,
such as the WBHO Infrastructure
acquisition, and therefore provides a
strategic advantage in the market.
We will continue to invest in the
business for growth as well as continue
to reward our shareholders with above
market returns whilst maintaining
financial strength and discipline.
The Board has also resolved to pay a
final dividend of 1.5 cent per share fully
franked, bringing the full year total to
3.0 cents per share and representing a
50% increase on last year.
WINDFARM MAINTENANCE, NZ
20
SRG GLOBAL 2022 ANNUAL REPORT MANAGING DIRECTOR’S REPORT (CONTINUED)
WELL POSITIONED FOR LONG - TERM
SUSTAINABLE GROWTH
SRG Global has completed the
strategic transformation to a truly
diversified industrial services company
with a business model and risk profile
that puts us in a strong position
for sustainable growth in FY23 and
beyond. The Company has record
Work in Hand of $1.3b with two
thirds annuity-style earnings and
positive exposure to broader macro-
economic growth drivers across the
asset maintenance, industrial and
mining sectors as well as significant
investment in the infrastructure and
construction sectors.
Our strategic transformation is only
possible through the collective efforts
of our people and I would like to once
again acknowledge all 2,600 SRG
Global employees for the way they
have contributed to our success.
I am sure this will continue in FY23 as
we live for the challenge, are smarter
together, never give up and have
each other’s backs.
I would like to thank Peter Brecht for
his support and guidance in the past
eight years and wish him all the best
for the future.
In closing, I extend my appreciation
to our shareholders for their continued
support and look forward to continuing
to deliver on what is an exciting future
ahead of us.
David Macgeorge
Managing Director
OPPORTUNITY PIPELINE
40%
40%
$6b
30 June 2022
20%
Asset Maintenance
Mining Services
Engineering & Construction
BUSINESS MIX
TRANSITIONED TO
ANNUITY/RECURRING
EARNINGS
LEADERSHIP HORIZON
Zero Harm / ESG industry leader and recognised employer /
partner of choice
Domestic / International growth in Engineered Products across all
SRG operating segments
Selective strategic acquisitions to complement capability / footprint
Consistent, above market shareholder returns (EPS and TSR)
80% annuity / recurring and 20% project-based earnings
GROWTH HORIZON
Step change growth in recurring Asset Maintenance Services
Innovation and selective growth in Mining Services
Targeted growth in Civil Infrastructure Construction / Remediation
Specialist services and products in Building Construction with key
repeat clients
67% annuity / recurring and 33% project-based earnings
21
SRG GLOBAL 2022 ANNUAL REPORT Directors’ Report
The Directors present their report on the consolidated entity consisting of SRG Global Limited (the ‘Company’ or ‘SRG
Global’) and the entities it controlled (the ‘Group’) at the end of, or during the year ended 30 June 2022.
DIRECTORS
The names and details of the Company’s Directors in office during the financial year and until the date of this report are set
out below. Directors were in office for the entire period unless otherwise stated.
Name
Peter McMorrow
David Macgeorge
Peter Brecht
Michael Atkins
Amber Banfield
Non-Executive Chairman
Managing Director
Non-Executive Director
Non-Executive Director
Non-Executive Director
Full Financial Year
Full Financial Year
Full Financial Year
Full Financial Year
Appointed 25 October 2021
EXPERIENCE, QUALIFICATIONS AND
RESPONSIBILITIES
Peter McMorrow
Non-Executive Chairman
Peter McMorrow joined the Board of SRG Global as
Deputy Chairman in September 2018 and was appointed
Chairman on 26 November 2019. Prior to this, Peter was a
Director of SRG Limited (‘SRG’) from 2010 and moved into
the role of Chairman in July 2014. He is also a member
of the SRG Global Audit Committee and Remuneration
& Nomination Committee.
Peter has over forty years’ project and executive experience
and is a respected leader in the infrastructure and resources
industries. Encompassing a wide variety of large and
complex infrastructure projects both overseas and within
Australia, his industry knowledge extends to all facets of
engineering, project identification, winning and delivery as
well as management of dynamic, profitable and long lasting
business operations.
Prior to joining SRG, Peter was Managing Director of
Leighton Contractors from 2004 to 2010. Under his
guidance, Leighton Contractors expanded considerably
with turnover increasing to over $5 billion and the workforce
increasing fourfold to approximately 10,000 employees.
Peter was previously a Board Member for Valmec Limited
until October 2021.
Peter is an advocate for health and safety and brings a
strong zero harm vision to both SRG Global and the industry
in which it operates.
David Macgeorge
Managing Director
David Macgeorge was appointed Managing Director of
SRG Global in September 2018. Prior to this, David held the
role of Managing Director for SRG Limited since May 2014.
David has extensive senior executive experience in
contracting, logistics, infrastructure and mining service
industries and has a strong record of leading business
transformations, driving value creation and growth through
a unique understanding of strategy, customer focus and
shareholder returns.
Prior to joining SRG, David held senior executive roles
with BIS Industries, Cleanaway and CHEP (a subsidiary
of Brambles). He also provided consultancy to Leighton
Contractors.
22
David holds a Bachelor of Business and has completed the
Senior Executive Management program at INSEAD Business
School in France.
Peter Brecht
Non-Executive Director
Peter Brecht joined the Board of SRG Global in September
2018. Prior to this, he had been a Non-Executive Director for
SRG Limited since September 2014. Peter is the Chairman of
the SRG Global Remuneration & Nomination Committee.
Peter has more than thirty five years’ experience in the
construction industry, previously serving as the Managing
Director - Construction Australia for Lendlease, CEO
of Bilfinger Berger Australia and Managing Director of
Abigroup.
Peter is a Board member of Fulton Hogan Limited. He has
been a Member of the Australian Institute of Company
Directors since 2000.
Michael Atkins
Non-Executive Director
Michael joined the SRG Global Board as a Non-Executive
Director in September 2018 and is Chairman of the SRG
Global Audit Committee. Prior to this, Michael was Non-
Executive Director on the Board of SRG Limited from 2014
to 2018.
Michael was a founding partner of a national Australian
Chartered Accounting practice from 1979 to 1987 and was a
Fellow of the Institute of Chartered Accountants in Australia.
Since 1987 he has been both an executive and non-executive
director of numerous publicly listed companies with
operations in Australia, USA, South East Asia and Africa.
Michael was previously a Senior Advisor - Corporate
Finance at Canaccord Genuity (Australia) Limited until
November 2021. Michael is currently a Non- Executive
Chairman of Australian listed companies Legend Mining
Limited and Castle Minerals Limited. Michael is also
currently a Non-Executive Director of Australian listed
company Warrego Energy Limited. Michael was non-
executive Chairman of Azumah Resources Limited until
his resignation in December 2019.
Michael is a Fellow of the Australian Institute of
Company Directors.
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Directors’ Report (CONTINUED)
Amber Banfield
Non-Executive Director
Amber joined the SRG Global Board as a Non-Executive
Director on 25 October 2021 and is a member of the SRG
Global Remuneration and Nomination Committee. Amber was
previously a member of the Audit Committee.
Amber brings valuable experience in transformational growth
supporting the customers, markets and sectors serviced by
SRG Global, as well as additional skills in sustainability and
new energy markets. For more than 20 years Amber held
management positions with Worley Limited (ASX: WOR),
supporting its growth to become the world’s largest energy
and resources engineering services provider with 48,000
employees across almost 50 countries globally. Her roles at
Worley related to operations, strategy, sustainability,
mergers and acquisitions, servicing the sectors of mining,
infrastructure, oil & gas, hydrogen, solar and wind power.
More recently, Amber has consulted to leading resource
and energy companies providing strategy and project
development support to energy transition, decarbonisation
and sustainability-related investments. Amber is also a Non-
Executive Director of Perseus Mining, an ASX/TSX-listed
international gold miner, Non-Executive Director of Leo
Lithium, an ASX-listed lithium developer and is on the Board
of the Western Australian Football Commission, responsible
for the governance of Australian football in WA.
Amber holds a Bachelor of Engineering (Environmental)
degree and a Master of Business Administration, both
awarded by the University of Western Australia.
COMPANY SECRETARIES
Name
Roger Lee
Judson Lorkin
Roger Lee
Chief Financial Officer & Joint Company Secretary
Full Financial Year
Appointed 27 August 2021
Roger was appointed CFO & Company Secretary for SRG Global in September 2018. Prior to this, Roger held the role of CFO
& Company Secretary for SRG Limited since July 2014 and brings over twenty five years’ experience in senior and executive
management in Australia. Roger is a qualified CPA and is a graduate of the University of Western Australia in Commerce,
majoring in Finance and Accounting.
Judson Lorkin
Group Financial Controller & Joint Company Secretary
Judson was appointed Group Financial Controller & Company Secretary on 27 August 2021. Judson joined SRG Global in
2016 as the Group Manager for Corporate Development. Prior to SRG Global, Judson held senior roles in investment banking,
corporate finance and capital markets advisory.
Judson is a Fellow of the Governance Institute of Australia (formerly Chartered Secretaries Australia), holds a Graduate
Diploma in Applied Finance (Corporate Finance) and qualified as an Actuary (AIAA).
DIRECTORS’ SHAREHOLDINGS
The following table sets out each Directors’ relevant interest in shares, debentures and rights or options in shares or debentures
of the Company as at the date of this report.
Name
P McMorrow
D Macgeorge
P Brecht
M Atkins
A Banfield
Fully Paid Ordinary Shares
Number
Performance Rights
Number
12,500,000
6,625,889
2,150,541
1,000,000
-
-
3,712,500
-
-
-
MEETINGS OF DIRECTORS
The number of meetings of SRG Global’s Board of Directors and each Board Committee held during the year ended 30 June
2022 and the number of meetings attended by each Director was:
Board of Directors
meetings
Meetings of committees
Audit Committee
Name
P McMorrow
D Macgeorge
P Brecht
M Atkins
A Banfield
Eligible
Attended
Eligible
Attended
9
9
9
9
6
9
9
9
9
6
3
-
-
3
1
3
-
-
3
1
Remuneration & Nomination
Attended
Eligible
2
-
2
-
-
2
-
2
-
-
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FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT
Directors’ Report (CONTINUED)
PRINCIPAL ACTIVITIES
During the financial period, the principal continuing activities
of the Group consisted of delivering a suite of engineering-
led specialist asset maintenance, mining services and
engineering and construction services across the entire
asset lifecycle.
LIKELY DEVELOPMENTS AND EXPECTED
RESULTS IN OPERATIONS
Information on likely developments in the operations of the
Group and the expected results of operations has not been
included in this report as the Directors believe it would likely
result in unreasonable prejudice to the Group.
ENVIRONMENTAL REGULATIONS
The operations of the Group are subject to environmental
regulation under country, state, and territory legislation.
The Directors are not aware of any breaches of
environmental regulations during the year or as at the
date of this report. The Company has met all its reporting
requirements under the relevant legislation during the
year and continually aims to improve its environmental
performance.
The Company does not currently meet the thresholds of the
National Greenhouse and Energy Reporting Act 2007 and is
therefore not currently subject to its reporting requirements.
PROCEEDINGS ON BEHALF OF THE COMPANY
No proceedings have been brought on behalf of the
Company, nor have any applications been made in respect
of the Company under Section 237 of the Corporations
Act 2001.
CORPORATE GOVERNANCE
The Board is committed to achieving the highest standards
of corporate governance. The Board reviews and improves
its policies and procedures to ensure they are effective for
the Group and fulfill the expectations of stakeholders. The
Board’s Corporate Governance Statement can be located on
the Company’s website via the following URL: http://www.
srgglobal.com.au/who-we-are/corporate-governance/.
DIVIDENDS
The Board has declared the following dividends in relation
to the 2022 financial year:
• A final, fully franked $6.687m dividend (1.5 cents per
share) on 23 August 2022. The record date for this
dividend is 9 September 2022 with payment to be
made on 13 September 2022.
• An interim, fully franked $6.687m (1.5 cents per share)
dividend on 22 February 2022. This dividend was paid
on 28 April 2022.
The total fully franked dividends declared by the
Company in relation to the 2022 financial year are
$13.374m (3.0 cents per share).
SIGNIFICANT CHANGES IN STATES OF AFFAIRS
Other than the acquisition of WBHO Infrastructure during
the financial year, there have been no other significant
changes in the state of affairs of the Group.
OVERVIEW AND FINANCIAL RESULTS
Information on the operations and financial position of the
Group and its business strategies is set out in the Managing
Director’s Report on pages 14 to 21.
MATTERS SUBSEQUENT TO THE END OF
FINANCIAL YEAR
On 5 July 2022 the Group secured a five-year term
contract with Iron Bridge operations. Iron Bridge is an
unincorporated join venture between Fortescue Metals
Group subsidiary FMG Iron Bridge and Formosa Steel IB.
The Contract is a master agreement for maintenance and
shutdown services to provide rope access and electrical
maintenance requirements across its new magnetite project
in Western Australia. On 5 July 22, the Group also secured a
maintenance contract with Visy Industries Australia for the
provision of specialist refractory installation, incorporating
multiple skilled trades at their Adelaide glass manufacturing
facility. The combined value of the Iron Bridge and Visy
Industries contracts is ~$100m.
On 19 July 2022 the Group secured engineering, maintenance
and civil services contract with existing Tier 1 clients valued
at ~$80m. This includes a two-year civil services term
contract with South32 at Worsley Alumina operations in
Western Australia, a three-year marine remediation contract
with Fremantle Ports at the Kwinana bulk jetty in Western
Australia, and an earthworks and civil services contract
extension to BCI Minerals Limited at the Mardie Salt and
Potash project in Western Australia.
On 26 July 2022 the Group secured a five-year term contract
with Northern Star Resources Limited at its Kalgoorlie
Consolidated Gold Mine (“KCGM”) gold operations in
Western Australia. The scope of works includes the provision
of geotechnical ground support, rock fall protection systems,
depressurisation drilling and rope access services. Also on
26 July 2022, the Group secured a seven-year term contract
with Meridian Energy Limited to maintain its hydro and
wind assets across New Zealand. The scope of works
includes the provision of painting/coatings, rope access,
engineering, general asset maintenance and repair services.
The Northern Star and Meridian Energy Limited contracts
are valued at ~$90m.
On 23 August 2022 the Group announced a final, fully
franked dividend of 1.5c per share. The record date for this
dividend is 9 September 2022 with payment to be made on
13 September 2022.
Other than those detailed above, no matter or circumstance
has arisen since 30 June 2022 that has significantly
affected, or may significantly affect the consolidated
entity’s operations, the results of those operations, or the
consolidated entity’s state of affairs in future financial years.
24
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Directors’ Report (CONTINUED)
REMUNERATION REPORT (AUDITED)
1. OVERVIEW
The directors of SRG Global Limited present the Remuneration Report (the ‘Report’) for the Company and its controlled
entities for the year ended 30 June 2022. 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 the Company’s key
management personnel (‘KMP’):
• 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 year ended 30 June 2022.
Term as KMP
Full financial year
Full financial year
Full financial year
Appointed 25 October 2021
Name
Position
Non-executive directors
P McMorrow
Non-Executive Chairman
Non-Executive Director
Non-Executive Director
Non-Executive Director
P Brecht
M Atkins
A Banfield
Executive directors
D Macgeorge
Executives
R Lee
N Combe
J Thomas
D Williamson
Managing Director
Full financial year
Chief Financial Officer / Company Secretary
Full financial year
Executive General Manager - Construction and Engineering Full financial year
Executive General Manager - Mining & Chair of Zero Harm Resigned 31 December 2021
Executive General Manager - Asset Maintenance
Chief Operating Officer - Asset Maintenance and Mining
& Chair of Zero Harm
Till 31 December 2021
From 1 January 2022
P Dawson
Executive General Manager - Building
Full financial year
25
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Directors’ Report (CONTINUED)
2. EXECUTIVE REMUNERATION FRAMEWORK
2.1 Executive remuneration policy
The objective of a variable STI remuneration is to link the
achievement of the Company’s operational targets with
the remuneration received by the executives charged with
meeting those targets. The Company’s STI objectives are to:
The Company’s remuneration policy ensures that executives
are rewarded fairly and responsibly in accordance with the
market, having regard to the following:
• Motivate senior executives to achieve the short-term
annual objectives linked to Company success and
shareholder value creation
• Remuneration levels are set at a level that ensures the
• Create a strong link between performance and reward
Company can attract and retain qualified, experienced,
and high-quality executives
• Fixed remuneration is structured at a level that reflects
the executives’ duties and responsibilities
• Remuneration packages are structured to encourage
improved performance and to align the employee’s
interests with the short-term and long-term objectives
of the Company
• The Company benchmarks remuneration packages at
least annually to ensure competitive positioning within
the market
• Short-term incentives are designed to incentivise individual
contributions to achieving results.
2.2 Executive remuneration framework
The Company rewards executives with a level and
mix of remuneration appropriate to their positions,
responsibilities and performance, in a manner that aligns
with the Company’s strategy. Executives receive fixed
remuneration and variable remuneration (as applicable),
consisting of short and long-term incentive opportunities.
Executive remuneration levels are reviewed annually by the
Remuneration and Nomination Committee with reference
to the remuneration framework, guiding principles and
market movements.
2.3 Elements of Remuneration
2.3.1. Fixed remuneration
Executive fixed remuneration is competitively structured
and comprises the fixed component of the remuneration
package. The fixed component may include cash,
superannuation, and non-financial benefits to comprise
the employee’s total employee cost. 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 notebooks.
Fixed remuneration is designed to reward the Executive for:
• The scope of the executive’s role
• The executive’s skills, experience and qualifications
• Individual performance.
2.3.2. Short-term incentives (STI’s)
The Company has implemented a short-term incentive
plan during the 2022 financial year. Executives had the
opportunity to earn a discretionary annual incentive award,
delivered in the form of cash.
• Share Company success with the executives that
contribute to it
• Create a component of the employment cost that is
responsive to short and medium term changes in the
circumstances of the Company
STI’s currently take the form of a cash bonus. The key
STI measures for the Company in the 2022 financial year
consist of a number of targets tied to the performance on
SRG Global’s major contracts - namely safety performance,
financial performance, scheduling performance, and
customer satisfaction. The STI is currently a discretionary
‘bonus’ arrangement and its quantum is determined by the
Remuneration and Nomination Committee.
The Remuneration and Nomination Committee is responsible
for determining the achievement of targets and assessing as
to whether a bonus amount is paid. The committee also has
the discretion to adjust short-term incentives downwards or
make no payments in response to unexpected or unintended
circumstances and where market issues dictate such a
decision. Any STI payments to KMP during the 2022 financial
year were based on achieving strategic and / or business
objectives.
2.3.3. Long-term incentives (LTI’s)
The LTI offered to the 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 the Executives for attaining results over a long
measurable period and for staying with the organisation.
The LTI is a share-based plan consisting of Performance
Rights and / or Options (collectively “Rights and Options”)
which have pre-determined vesting conditions. The LTI was
approved by Shareholders at the Annual General Meeting on
27 November 2018.
Under the LTI, Rights and Options may be offered to
eligible persons as determined by the Board and are an
entitlement to receive ordinary shares in the Company.
Subject to satisfaction by eligible persons of specific criteria
set by the Board, the Rights and Options are granted at no
cost. Upon vesting of the Rights and Options, shares will
be automatically issued or transferred to the participant
unless the Company is in a “Blackout Period” (as defined in
the Company’s Securities Trading Policy) or the Company
determines in good faith that the issue or transfer of
shares may breach the insider trading provisions of the
Corporations Act or the Securities Trading Policy, in which
case, the Company will issue or transfer the shares as soon
as reasonably practical thereafter.
The LTI scheme is designed to create a strong link between
the Company’s performance and the KMPs’ performance.
26
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Directors’ Report (CONTINUED)
3. HOW REMUNERATION IS GOVERNED
3.1 Remuneration and Nomination Committee
The objective of the Remuneration and Nomination
Committee is to make recommendations on policies,
strategies, and structures on compensation arrangements
for directors and executives. The committee is charged with
the development and review of the Company’s remuneration
framework which:
• Recommends remuneration levels for directors and
executives
• Proposes non-executive director fees
• Establishes incentive plans which apply to executives
• Devises key performance indicators to align remuneration
and incentives to performance and achievement
• Formulates identification of talent, development, retention,
and succession planning strategies for key executives
Fixed remuneration is reviewed annually by the Remuneration
and Nomination Committee.
Refer to the Corporate Governance Statement on the
Company’s website for further information on the role of
the Nomination and Remuneration Committee.
3.2 Remuneration consultants
During the year ended 30 June 2022, the Company did not
engage the services of a remuneration consultant in respect
of its remuneration matters. The Company reserves the right
to engage with a remuneration consultant to provide market
analysis and benchmarking guidelines.
3.3 Voting and comments made at the Company’s
last Annual General Meeting
The Company received 83.92% of ‘yes’ votes on its
Remuneration Report for the financial year ended 30 June
2021. The Company received no specific feedback on its
Remuneration Report at the Annual General Meeting.
3.4 Securities trading policy
The Company’s Securities Trading Policy applies to all non-
executive directors and executives. The Securities Trading
Policy prohibits KMP from dealing in the Company’s securities
while in possession of non-publicly available information
relevant to the Company.
The Company’s Securities Trading Policy is available on the
Corporate Governance section of the Company’s website.
27
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Directors’ Report (CONTINUED)
3.5 Executive employment / service agreements
Each KMP has entered into an employment contract with the Company. All KMP are entitled to receive payment in lieu of
notice of any accrued statutory entitlement (i.e. annual and long service leave) on cessation of their employment. In addition,
all KMP are entitled to participate in the STIP and LTIP that has been disclosed in Note 2.3 of the remuneration report.
The following table outlines the contractual terms of the employment contracts:
Component
Fixed Remuneration
Contract Term
Notice Period
Annual Leave
Managing Director
Senior Executives
$975,500
Ongoing
6 months
Range between $555,553 and $600,000
Ongoing
1-6 months
20 days per annum
20-30 days per annum
4. OVERVIEW OF NON-EXECUTIVE DIRECTOR REMUNERATION
The Board seeks to set aggregate fees paid to a level which reflects the responsibilities and demands made on non-executive
directors and provides the ability to attract and retain directors of the highest calibre, whilst incurring a cost which is
acceptable to shareholders.
The Remuneration and Nomination Committee reviews non-executive directors’ remuneration annually against comparable
companies. The Remuneration and Nomination Committee may also consider advice from external advisors if deemed
necessary.
Non-executive director fees are determined within an aggregate non-executive director fee pool limit of $900,000 per
annum. The amount of aggregate remuneration sought to be approved by shareholders and the manner in which it is
apportioned amongst non-executive directors is evaluated by the Remuneration and Nomination Committee annually.
The remuneration of non-executive directors for the year ended 30 June 2022 is detailed in section 7.2 of this report.
5.
SHARE-BASED COMPENSATION
Performance Rights
Performance rights may be granted under the Company Performance Rights (Plan). The Plan is designed to align the interest
of employees to shareholders in the Company and for staff retention purposes. The terms of the Plan are disclosed in note 30
to the financial statements
On 5 November 2021, a total of 11,890,000 performance rights (convertible into one ordinary share per right) were
issued to key management personnel and certain employees, subject to the terms of the Plan. Of the approved amount
of performance rights, 4,870,000 were deemed to be granted in the year as terms and conditions had been agreed. The
remaining 7,020,000 performance rights will be deemed to be granted once the relevant terms and conditions of the
performance rights have been agreed between the company and the relevant parties. The performance rights are subject to
the satisfaction of performance hurdles which are based on achieving agreed profit targets and an increase in the earnings
per share and shareholder return targets. The performance rights are also subject to a continuous service requirement.
Please refer to Note 7.3 of the remuneration report for the performance rights issued to key management personnel.
There are also no unissued ordinary shares of the Company under option at 30 June 2022.
6. OVERVIEW OF COMPANY PERFORMANCE
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. The following information relates to SRG Global Limited for the
comparative periods.
Profit / (loss) for the year attributable to owners ($’000)
Share price at end of the year (cents)
Basic EPS (cents)
Total dividends (cents per share)
2018
13,623
0.71
6.4
4.50
2019
9,839
0.50
2.3
1.5
2020
(29,403)
0.21
(6.7)
1.0
2021
12,053
0.51
2.7
2.0
2022
20,132
0.61
4.5
3.0
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FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Directors’ Report (CONTINUED)
7. DETAILS OF REMUNERATION
7.1 Executive KMP remuneration for the years ended 30 June 2022 and 30 June 2021
Short-term benefits
Post-
employment
Long-term
benefits
Share-based
payments
Financial
Year
Cash salary,
fees and
annual leave
provision
Short-term
incentives(1)
Non-
monetary
benefits(2)
Super-
annuation
Long service
leave
Performance
rights
Total
remuneration
Performance
related
$
$
Executive Directors
D Macgeorge
2022
1,052,482
997,500
2021
888,385
681,126
Senior Executives
R Lee
2022
633,444
479,375
N Combe
J Thomas(3)
2021
2022
2021
2022
2021
536,084
300,496
566,109
250,000
522,945
200,000
248,206
-
407,486
217,300
D Williamson
2022
562,979
300,000
P Dawson(4)
Total
Executive
KMP
2021
2022
2021
488,380
309,375
573,378
300,000
531,510
175,000
2022
3,636,598
2,326,875
2021
3,374,790
1,883,297
$
-
-
-
-
-
-
-
-
-
-
-
-
-
-
$
$
$
$
23,568
28,997
270,298
2,372,845
21,694
23,714
50,236
1,665,155
27,500
16,242
119,556
1,276,117
25,000
28,443
21,530
911,553
25,000
22,870
40,600
904,579
25,000
-
19,740
(52,542)
25,000
19,801
-
-
-
747,945
215,404
669,587
23,568
25,000
-
-
97,464
984,011
17,941
840,696
27,500
19,496
(21,167)
899,207
25,000
23,331
(124,044)
630,797
146,876
35,063
506,751
6,652,163
146,694
95,289
(34,337)
5,465,733
%
53
44
47
35
32
27
-
32
40
39
31
8
43
34
(1) Short-term incentives relate to discretionary cash bonuses that are linked to the achievement of the Company’s operational targets.
(2) Non-monetary benefits relate to the provision of motor vehicles and motor vehicle related expenses.
(3) Resigned on 31 December 2021. The negative amount of long service leave is due to leave balance paid out at resignation.
(4) The negative amount of share-based payments is due to performance rights lapsed during the year.
7.2 Non-executive remuneration for the years ended 30 June 2022 and 30 June 2021
Short-term benefits
Post-employment
Financial Year
Cash salary and fees
Superannuation
Total Remuneration
P McMorrow
P Brecht
M Atkins
A Banfield(1)
Total Non-Executive KMP
(1) Appointed on 25 October 2021.
2022
2021
2022
2021
2022
2021
2022
2021
2022
2021
$
192,500
170,000
121,364
115,068
121,364
115,068
86,667
-
521,895
400,136
$
-
-
12,136
10,932
12,136
10,932
-
-
24,272
21,864
$
192,500
170,000
133,500
126,000
133,500
126,000
86,667
-
546,167
422,000
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FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Directors’ Report (CONTINUED)
7.3 Shareholdings of KMP
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. There were no shares granted during the reporting period as
compensation.
Balance as at
30 June 2021
Received on
exercise of rights
Purchased
Net change
other
Balance as at
30 June 2022
Non-Executive Directors
P McMorrow
P Brecht
M Atkins
A Banfield
Executive Directors
D Macgeorge
Senior Executives
R Lee
N Combe
J Thomas(1)
D Williamson
P Dawson
12,335,727
2,150,541
1,000,000
-
6,571,389
3,653,451
1,099,933
739,123
52,000
5,691,945
-
-
-
-
-
-
-
-
-
-
164,273
-
-
-
54,500
-
-
-
-
-
-
-
-
-
-
-
-
(739,123)
12,500,000
2,150,541
1,000,000
-
6,625,889
3,653,451
1,099,933
-
-
52,000
233,055
5,925,000
(1) J Thomas held 591,123 shares in the Company as at his resignation date of 31 December 2021.
The number of performance rights held directly or indirectly during the financial year by each director and KMP of the Group
are set out below.
Balance as at
30 June 2021
Granted in
the year
Lapsed in
the year
Net change
other
Balance as at
30 June 2022
Executive Directors
D Macgeorge
Senior Executives
R Lee
N Combe
D Williamson
P Dawson
1,400,000
2,400,000
(87,500)
600,000
1,200,000
(37,500)
-
500,000
700,000
800,000
900,000
400,000
-
(31,250)
(150,000)
-
-
-
-
-
3,712,500
1,762,500
800,000
1,368,750
950,000
No other KMP’s have been granted performance rights in the current financial year except as disclosed above.
7.4 Other transactions with KMP
The following transactions occurred and were outstanding at reporting date in relation to transactions with related parties:
• Properties from which the Group’s operations are performed are
rented from Portovenere Investments Pty Ltd, a company related
to Paul Dawson
• Fees paid for professional services provided by Wandarra (WA)
Pty Ltd, a company related to Peter McMorrow
End of Audited Remuneration Report
30
Transactions
Receivables
Payables
2022
$
2022
$
2022
$
(30,449)
(45,000)
-
-
-
-
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Directors’ Report (CONTINUED)
INDEMNITY AND INSURANCE OF DIRECTORS AND OFFICERS
The Company has indemnified the Directors and Officers of the Company for costs incurred, in their capacity as a director or
executive, for which they may be held personally liable, except where there is a lack of good faith.
During the financial year, the Company paid a premium in respect of a contract to insure the Directors and Officers of
the Company against a liability to the extent permitted by the Corporations Act 2001. The contract of insurance prohibits
disclosure of the nature of liability and the amount of the premium.
INDEMNITY AND INSURANCE OF AUDITORS
The Company has not, during or since the end of the financial year, indemnified or agreed to indemnify the auditor of the
Company or any related entity against a liability incurred by the auditor.
During the financial year, the Company has not paid a premium in respect of a contract to insure the auditor of the Company or
any related entity.
NON-AUDIT SERVICES
For the current financial year, the total amounts paid or payable to the auditor of the parent entity for non-audit services was
$nil (2021: $nil). This is outlined in Note 7 to the financial statements.
The Directors are satisfied that the provision of non-audit services during the financial year, by the auditor (or by another
person or firm on the auditor’s behalf), is compatible with the general standard of independence for auditors imposed by the
Corporations Act 2001.
The Directors are of the opinion that the services as disclosed in Note 7 to the financial statements do not compromise the
external auditor’s independence requirements of the Corporations Act 2001 for the following reasons:
• all non-audit services have been reviewed and approved to ensure that they do not impact the integrity 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 issued by the Accounting Professional and Ethical Standards Board, including reviewing or
auditing the auditor’s own work, acting in a management or decision-making capacity for the Company, acting as advocate
for the Company or jointly sharing economic risks and rewards.
ROUNDING OF AMOUNTS
The Company is of a kind referred to in ASIC Corporations (Rounding in Financials / Directors’ Reports) Instrument 2016/191,
dated 24 March 2016, and in accordance with that Corporations Instrument, amounts in this report have been rounded off to
the nearest thousand dollars, unless otherwise stated.
AUDITOR’S INDEPENDENCE DECLARATION
A copy of the Auditor’s Independence Declaration as required under Section 307C of the Corporations Act 2001 is set out on
page 32.
This Directors’ Report is made in accordance with a resolution of directors, pursuant to Section 298(2)(a) of the Corporations
Act 2001.
Peter McMorrow
Non-Executive Chairman
23 August 2022
31
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Auditor’s Independence 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 PHILLIP MURDOCH TO THE DIRECTORS OF SRG GLOBAL
LIMITED
As lead auditor of SRG Global Limited for the year ended 30 June 2022, 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
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 SRG Global Limited and the entities it controlled during the period.
Phillip Murdoch
Director
BDO Audit (WA) Pty Ltd
Perth, 23 August 2022
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.
32
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Directors’ Declaration
FOR THE YEAR ENDED 30 JUNE 2022
SRG GLOBAL LIMITED ABN 81 104 662 259
AND CONTROLLED ENTITIES
DIRECTORS’ DECLARATION
The Directors of the Company declare that:
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
and:
(a)
comply with Accounting Standards, the Corporations Regulations 2001 and other mandatory
professional reporting requirements; and
(b) give a true and fair view of the Group’s financial position as at 30 June 2022 and of the performance
for the year ended on that date of the Group.
2.
In the directors’ opinion, there are reasonable grounds to believe that the Company will be able to pay its
debts as and when they become due and payable.
3. At the date of this declaration there are reasonable grounds to believe that the members of the extended
closed group identified in note 25 will be able to meet any obligations or liabilities to which they are, or may
become, subject by virtue of the Deed of Cross Guarantee described in note 25.
4. Note 1 to the financial statements confirms that the financial statements also comply with International
Financial Reporting Standards (‘IFRS’) as issued by the International Accounting Standards Board.
5. 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 for and on behalf of
the directors by:
Peter McMorrow
Non-Executive Chairman
23 August 2022
33
SRG GLOBAL 2022 ANNUAL REPORT Independent Auditor’s Report
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
INDEPENDENT AUDITOR'S REPORT
To the members of SRG Global Limited
Report on the Audit of the Financial Report
Opinion
We have audited the financial report of SRG Global Limited (the Company) and its subsidiaries (the
Group), which comprises the consolidated statement of financial position as at 30 June 2022, the
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 the financial report, including a summary of significant accounting policies and the directors’
declaration.
In our opinion the accompanying financial report of the Group, is in accordance with the Corporations
Act 2001, including:
(i)
Giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its
financial performance for the year ended on that date; and
(ii)
Complying with Australian Accounting Standards and the Corporations Regulations 2001.
Basis for opinion
We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under
those standards are further described in the Auditor’s responsibilities for the audit of the Financial
Report section of our report. We are independent of the Group in accordance with the Corporations
Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s
APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code)
that are relevant to our audit of the financial report in Australia. We have also fulfilled our other
ethical responsibilities in accordance with the Code.
We 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
time of this auditor’s report.
We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis
for our opinion.
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.
34
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Independent Auditor’s Report (CONTINUED)
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.
Revenue Recognition
Key audit matter
How the matter was addressed in our audit
The Group has several material revenue streams in the
Our procedures included, but were not limited to the
form of construction revenue, services revenue,
following:
products revenue and rental revenue.
The core principle of AASB 15: Revenue from contracts
with customers, is that an entity should recognise
revenue to depict the transfer of promised goods or
services to customers at an amount that reflects the
consideration to which the entity expects to be
entitled for those goods or services.
In the case of construction revenue, revenues are
recognised by reference to the stage of completion of
the contract activity.
The Group recognises in contract assets and contract
receivables progressive measurement of the value to
customers of goods and services transferred and
valuation of work completed as well as amounts
invoiced to customers. The recognition of these
amounts is based on management’s assessment of the
expected amounts recoverable.
As disclosed in Note 1(c), the principles under AASB 15
involve significant judgment and estimates and thus,
there is a risk that revenue has not been recognised in
accordance with the standard.
•
•
•
•
•
Assessing the appropriateness of management’s
revenue recognition policy, ensuring that the
policy is in accordance with the five step model
adopted by the relevant Australian Accounting
Standard, AASB 15;
Understanding and documenting the processes
and controls used by the Group in recognising
construction contract costs and for estimating the
costs to complete construction projects;
Testing the operating effectiveness of internal
controls designed by the Group in recognising
revenue over time;
Evaluating management’s ability to accurately
forecast construction costs and estimate costs to
complete projects by assessing the accuracy of
historic forecast against actual results;
Enquiring with management on the progress of
the Group’s major projects to obtain an
understanding of the projects’ stage of
completion, any material contract variations and
the remaining forecast financial performance of
the project against management’s initial
assessment;
•
Performing analytical procedures on contracting
revenue recorded during the year by setting
expectations based upon each project’s stage of
completion and the respective contract price;
35
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Independent Auditor’s Report (CONTINUED)
Key audit matter
How the matter was addressed in our audit
•
•
Agreeing a sample of costs incurred to supporting
documentation, including testing the appropriate
allocation to the correct project. We also
evaluated payments made subsequent to
reporting date to assess whether costs were
accrued in the correct period; and
Assessing the adequacy of the related disclosures
in Note 1(c), 2 and 29.
Acquisition of WBHO Infrastructure Pty Ltd
Key audit matter
How the matter was addressed in our audit
As disclosed in Note 26 of the financial report, the
Our procedures included, but were not limited to the
Group acquired the Western Australian business of
following:
WBHO Infrastructure Pty Ltd out of Voluntary
Administration in March 2022.
The accounting for this acquisition is a key audit
matter as it involved estimation and judgement in
determining the consideration paid and the fair value
of net assets acquired.
•
•
•
•
•
•
Reviewing the Deed of Company Arrangement
(“DOCA”) to understand the terms and conditions
and confirming our understanding of the
transaction;
Comparing the assets and liabilities recognised on
acquisition against the executed DOCA and the
historical financial information of the acquired
business;
Obtaining a copy of the external valuation report
to assess the determination of the fair value of
plant and equipment acquired;
Assessing the independence and competence of
management’s specialists who valued the plant
and equipment;
Challenging management’s cash flow forecasts
for customer relationship intangible assets and
comparing key assumptions to historic results and
underlying contract terms; and
Assessing the adequacy of the related disclosures
in Note 1(b) and 26.
36
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Independent Auditor’s Report (CONTINUED)
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 2022, 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.
37
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Independent Auditor’s Report (CONTINUED)
Report on the Remuneration Report
Opinion on the Remuneration Report
We have audited the Remuneration Report on pages 25 to 30 of the directors’ report for the year
ended 30 June 2022.
In our opinion, the Remuneration Report of SRG Global Limited, for the year ended 30 June 2022,
complies with section 300A of the Corporations Act 2001.
Responsibilities
The directors of the Company are responsible for the preparation and presentation of the
Remuneration Report in accordance with section 300A of the Corporations Act 2001. Our responsibility
is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with
Australian Auditing Standards.
BDO Audit (WA) Pty Ltd
Phillip Murdoch
Director
Perth, 23 August 2022
38
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Consolidated Statement of Profit or Loss
and other Comprehensive Income
FOR THE YEAR ENDED 30 JUNE 2022
Revenue
Other income
Construction, servicing and contract costs
Employee benefits expense
Other expenses
Equity accounted investment results
Depreciation expense
Amortisation expense
Finance expenses
Profit before income tax
Income tax expense
Net profit for the period
Other comprehensive income
Exchange differences arising on translation of foreign operations
Fair value movement of cash flow hedging
Total comprehensive income for the year, net of tax
Earnings per share attributable to members of the parent entity
Basic earnings per share (cents per share)
Diluted earnings per share (cents per share)
Note
2022
$’000
2021
$’000
2
3
4
4
3
5
9
9
644,241
2,214
569,541
1,119
(304,840)
(262,247)
(23,137)
(2)
(23,052)
(3,620)
(2,563)
26,994
(6,862)
20,132
(1,798)
(209)
18,125
(277,368)
(226,942)
(19,292)
(6)
(21,922)
(4,013)
(2,499)
18,618
(6,565)
12,053
(41)
209
12,221
2022
2021
4.5
4.5
2.7
2.7
The above statement should be read in conjunction with the notes to the financial statements.
39
SRG GLOBAL 2022 ANNUAL REPORT
Consolidated Statement
of Financial Position
AS AT YEAR ENDED 30 JUNE 2022
Current Assets
Cash and cash equivalents
Trade and other receivables
Contract assets
Inventories
Other current assets
Derivative financial instrument asset
Equity accounted investments
Current tax assets
Total current assets
Non-current assets
Property, plant and equipment
Right of use assets
Intangible assets
Contract assets
Deferred tax assets
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Contract liabilities
Borrowings
Right of use liabilities
Current tax liabilities
Provisions
Total current liabilities
Non-current liabilities
Borrowings
Right of use liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Retained earnings
Total Equity
Note
2022
$’000
2021
$’000
23
10
10
11
25(c)
12
15
13
10
17
14
10
16
15
18
16
15
18
19
20
59,302
97,876
60,756
18,714
2,902
2,410
130
160
242,250
104,343
17,275
102,641
1,557
16,497
242,313
46,236
86,501
55,726
14,868
2,799
342
121
-
206,593
81,542
20,339
104,587
1,869
27,999
236,336
484,563
442,929
122,396
33,116
13,983
7,654
-
32,402
209,551
24,792
10,860
4,794
40,446
106,484
20,571
15,347
8,253
503
26,087
177,245
18,640
13,096
7,147
38,883
249,997
216,128
234,566
226,801
218,096
6,927
9,543
234,566
218,096
8,149
556
226,801
The above statement should be read in conjunction with the notes to the financial statements.
40
SRG GLOBAL 2022 ANNUAL REPORT
Consolidated Statement of
Financial Changes in Equity
FOR THE YEAR ENDED 30 JUNE 2022
Share
capital
$’000
Reverse
acquisition
reserve
$’000
Total
issued
capital
$’000
Retained
earnings
$’000
Share-
based
payments
reserve
$’000
Foreign
currency
translation
reserve
$’000
Hedging
Reserve
$’000
Total
equity
$’000
Balance at 1 July 2020
306,576
(88,480)
218,096
(4,809)
8,570
(429)
Profit for the year
Other comprehensive income
Total comprehensive income
Transactions with owners in
their capacities as owners
Issue of ordinary shares, net of
transaction costs
Share-based payments
Dividends paid
Transfer to retained earnings
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
Balance at 30 June 2021
306,576
(88,480)
218,096
12,053
-
12,053
-
-
(6,688)
-
556
-
-
-
-
(160)
-
-
-
(41)
(41)
-
-
-
-
-
-
209
209
221,428
12,053
168
12,221
-
-
-
-
-
(160)
(6,688)
-
8,410
(470)
209
226,801
Balance at 1 July 2021
306,576
(88,480)
218,096
556
8,410
(470)
209
226,801
-
-
-
-
(1,798)
(1,798)
-
20,132
(209)
(209)
(2,007)
18,125
Profit for the year
Other comprehensive income
Total comprehensive income
Transactions with owners in
their capacities as owners
Issue of ordinary shares, net of
transaction costs
Share-based payments
Dividends paid
Transfer to retained earnings
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
20,132
-
20,132
-
-
(11,145)
-
-
785
-
-
-
-
-
-
Balance at 30 June 2022
306,576
(88,480)
218,096
9,543
9,195
(2,268)
The above statement should be read in conjunction with the notes to the financial statements.
-
-
-
-
-
-
785
(11,145)
-
234,566
41
SRG GLOBAL 2022 ANNUAL REPORT
Consolidated Statement
of Cash Flows
FOR THE YEAR ENDED 30 JUNE 2022
Receipts from customers
Interest received
Payments to suppliers & employees
Interest paid
Income tax refund/(paid)
Cash inflow from operating activities
Payments for property, plant & equipment
Proceeds from sale of property, plant & equipment
Payment for acquisition of subsidiary, net of cash
Payment for intangible assets
Cash outflow from investing activities
Proceeds from borrowings
Repayment of borrowings
Payment of dividends
Cash outflow from financing activities
Net cash increase 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
Note
2022
$’000
2021
$’000
705,686
618,218
18
9
(645,985)
(558,065)
23(a)
26
(2,581)
3,979
61,117
(18,722)
2,456
(15,142)
(2,154)
(33,562)
21,060
(24,457)
(11,145)
(14,542)
(2,508)
(2,483)
55,171
(18,086)
2,184
-
(1,416)
(17,318)
23,831
(34,598)
(8,918)
(19,685)
13,013
18,168
53
46,236
(38)
28,106
Cash and cash equivalents at end of financial year
23
59,302
46,236
The above statement should be read in conjunction with the notes to the financial statements.
42
SRG GLOBAL 2022 ANNUAL REPORT
Notes to the Financial Statements
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES
General information
SRG Global Limited (the Company) is a for-profit public company listed on the Australian Securities Exchange Limited (ASX)
and is incorporated in Australia. The Company is primarily involved in engineering, mining, maintenance and construction
contracting.
The consolidated financial statements of the Company comprise the Company and its controlled entities (‘Consolidated
Group’ or ‘Group’) and the Consolidated Entity’s interest in associates and joint arrangements. The separate financial
statements of the parent entity, SRG Global Limited, have not been presented within this financial report as permitted by
the Corporations Act 2001.
The consolidated financial statements were authorised for issue by the Board of Directors on the date of signing the
accompanying Directors’ Declaration.
Basis of preparation
These financial statements are general purpose financial statements and have been prepared in accordance with applicable
Australian Accounting Standards, Australian Accounting Interpretations, and other authoritative pronouncements of the
Australian Accounting Standards Board (AASB), and the Corporations Act 2001. The consolidated financial statements also
comply with the International Financial Reporting Standards (IFRS) as issued by the International Accounting Standards
Board (IASB).
Any new, revised or amended Accounting Standards and Interpretations that have been issued but not yet mandatory have
not been early adopted. Details of these new, revised or amended Accounting Standards and Interpretations that have been
issued but not yet mandatory are set out in Note 1(w).
Historical Cost Convention
The financial statements have been prepared on an accruals basis with the exception of cash flow information, and are based
on historical costs, modified where applicable, by the measurement at fair value of selected non-current assets, financial
assets and financial liabilities.
Presentation
The consolidated financial statements are presented in Australian dollars, which is the Company’s functional and presentation
currency. All values presented in the financial statements have been rounded to the nearest thousand dollars (‘$000) unless
otherwise stated, in accordance with ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191.
Foreign currency
The functional currency of each of the Group’s entities is measured using the currency of the primary economic environment
in which that entity operates. As at the reporting date, the assets and liabilities of overseas subsidiaries are translated into
Australian dollars using the exchange rates at the reporting date and the income statements are translated at the average
exchange rates for the year. Retained profits are translated at the exchange rates prevailing at the date of the transaction.
Transactions in foreign currencies are initially recorded in the functional currency at the exchange rates ruling at the date
of the transaction. Foreign currency monetary items are translated at the year-end exchange rate. Non-monetary items
measured at historical cost continue to be carried at the exchange rate at the date of the transaction. Non-monetary items
measured at fair value are reported at the exchange rate at the date when the fair values were determined.
Exchange differences arising on the translation of foreign operations are transferred directly to the Group’s foreign currency
translation reserve in the statement of financial position. These differences are recognised in the statement of profit or loss
and other comprehensive income, in the period when the operation is disposed.
43
SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Key accounting estimates and judgements
In applying Australian Accounting Standards, management is required to make judgements, estimates and form assumptions
that affect the application of accounting policies and reported amounts presented herein. On an ongoing basis, management
evaluate estimates and judgements incorporated into the financial statements based on historical knowledge and best
available current information. Estimates assume a reasonable expectation of future events and are based on current trends
and economic data, obtained both externally and within the consolidated group.
The following key estimates and judgements were relevant to the Group for the financial year:
-
Determination of a project’s stage of completion requires an estimate of expenses incurred to date as a percentage
of total estimated costs. Key assumptions regarding costs to complete include estimations of labour, technical costs,
impact of delays and productivity. These estimates are performed by qualified professionals within the project teams.
Estimation of allowance for expected credit losses on financial assets and liabilities (Note 32)
Assessment and impairment of intangible assets (Note 13)
Employee long-term entitlements (Note 18)
Recovery of deferred tax assets and provision for income tax (Note 17)
Determination of variable consideration on revenue (Note 1c)
Determination of lease term and incremental borrowing rate (Note 1u)
Determination of fair value of net assets acquired in a business combination (Note 26)
Determination of the fair value of share-based payments (Note 30)
-
-
-
-
-
-
-
-
Accounting policies
This note provides all significant accounting policies adopted in the preparation of these consolidated financial statements.
These policies have been consistently applied to all the years presented, unless otherwise stated.
(a) Principles of consolidation
Subsidiaries
Subsidiaries are all entities (including structured entities) controlled by the Company. The Group controls an entity
when the Group is exposed to, or has rights to, variable returns from its involvement with the entity and has the ability
to affect those returns through its power to direct the activities of the entity.
The consolidated financial statements are prepared by consolidating the financial statements of all entities within the
Group as defined in AASB 10 Consolidated Financial Statements. The consolidated financial statements include the
information and results of each subsidiary from the date on which the Company obtains control and until such time
as the Company ceases to control such entity. The acquisition method of accounting is used to account for business
combinations by the Group.
In preparing the consolidated financial statements, all inter-company balances and transactions, income and expenses
and profits and losses resulting from intra-Group transactions have been eliminated. Accounting policies of subsidiaries
have been changed where necessary to ensure consistency with the policies adopted by the Group.
Associates
Associates are entities over which the Group has significant influence but not control or joint control. Significant
influence is presumed to exist when the Group owns between 20% and 50% of the voting power of another entity.
Investments in associates are accounted for using the equity method, after initially being recognised at cost.
Joint arrangements
Under AASB 11 Joint Arrangements, investments in joint arrangements are classified as either joint operations or joint
ventures depending on the contractual rights and obligations each investor has, rather than the legal structure of the
joint arrangement. The Group has assessed the nature of its joint arrangements and determined to have both joint
operations and joint ventures.
-
-
Joint operations - The Group recognises its direct right, and its share of, jointly held assets, liabilities, revenues
and expenses of joint operations. These have been incorporated in the financial statements under the appropriate
headings. Details of joint operations are set out in Note 25(b).
Joint ventures - Interests in joint ventures are accounted for using the equity method, after initially being
recognised at cost. Details of joint ventures are set out in Note 25(c).
Equity method of accounting
Under the equity method of accounting, the investments are initially recognised at cost and adjusted thereafter to
recognise the Group’s share of the post-acquisition profits or losses of the investee in profit or loss, and the Group’s
share of movements in other comprehensive income of the investee in other comprehensive income. Investments in
associates are carried in the statement of financial position at cost plus post-acquisition changes in the Group’s
share of net assets of the associates. Dividends received or receivable from associates reduce the carrying amount
of the investment.
44
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
FOR THE YEAR ENDED 30 JUNE 2022
NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
When the Group’s share of losses in an equity-accounted investment equals or exceeds its interest in the associate,
including any other unsecured long-term receivables, the Group does not recognise further losses, unless it has incurred
obligations or made payments on behalf of the associate.
Unrealised gains arising from transactions with associates and jointly controlled entities are eliminated to the extent of
the Group’s interest in the entity with adjustments made to the ‘Investments accounted for using the equity method’ and
‘Share of profit of equity accounted investees’ accounts. Unrealised losses are eliminated in the same way as unrealised
gains, but only to the extent that there is no evidence of impairment.
Accounting policies of the equity-accounted investees have been changed where necessary to ensure consistency with
the policies adopted by the Group. The carrying amount of equity-accounted investments is tested for impairment in
accordance with the policy described in Note 1(q).
Changes in ownership interests
When the Group ceases to have control, joint control or significant influence, any retained interest in the entity is
remeasured to its fair value with the change in carrying amount recognised in profit or loss. This fair value becomes the
initial carrying amount for the purposes of subsequently accounting for the retained interest as an associate, joint venture
or financial asset. In addition, any amounts previously recognised in other comprehensive income in respect of that entity
are accounted for as if the Group had directly disposed of the related assets or liabilities. This may mean that amounts
previously recognised in other comprehensive income are reclassified to profit or loss.
If the ownership interest in a joint venture or an associate is reduced but joint control or significant influence is retained,
only a proportionate share of the amounts previously recognised in other comprehensive income are reclassified to profit
or loss where appropriate.
(b) Business Combinations
Acquisitions of businesses are accounted for using the acquisition method. The consideration transferred in a business
combination is measured at fair value, which is calculated as the sum of the acquisition-date fair values of assets
transferred by the Group, liabilities incurred by the Group to the former owners of the acquiree and the equity interest
issued by the Group in exchange for control of the acquiree. Acquisition-related costs are recognised in profit or loss
as incurred.
At the acquisition date, the identifiable assets acquired and the liabilities assumed are recognised at their fair value at the
acquisition date, except that:
-
-
-
-
-
Deferred tax assets or liabilities and assets or liabilities related to employee benefit arrangements are recognised
and measured in accordance with AASB 112 Income Taxes and AASB 119 Employee Benefits respectively
Liabilities or equity instruments related to share-based payment arrangements of the acquiree or share-based
payment arrangements of the Group entered into to replace share-based payment arrangements of the acquiree are
measured in accordance with AASB 2 Share-Based Payments at the acquisition date (see below)
Assets (or disposal groups) that are classified as held for sale in accordance with AASB 5 Non-current Assets Held
for Sale and Discontinued Operations are measured in accordance with that Standard
Right-of-use asset assets and lease liabilities for leases are recognised in accordance with AASB 16, except that
right-of use assets and leases are not recognised for leases for which the lease term ends within 12 months of the
acquisition date, or for which the underlying asset is of low value
Reacquired rights are recognised as an intangible asset on the basis of the remaining contractual term of the related
contract regardless of whether market participants would consider potential contractual renewals when measuring
fair value.
Goodwill is measured as the excess of the sum of the consideration transferred, the amount of any non-controlling
interests in the acquiree, and the fair value of the acquirer’s previously held equity interest in the acquiree (if any) over the
net of the acquisition-date amounts of the identifiable assets acquired and the liabilities assumed. If, after reassessment,
the net of the acquisition-date amounts of the identifiable assets acquired and liabilities assumed exceeds the sum of the
consideration transferred, the amount of any non-controlling interests in the acquiree and the fair value of the acquirer’s
previously held interest in the acquiree (if any), the excess is recognised immediately in profit or loss as a bargain
purchase gain.
When the consideration transferred by the Group in a business combination includes contingent consideration
arrangement, the contingent consideration is measured at its acquisition-date fair value and included as part of
the consideration transferred in a business combination. Changes in fair value of the contingent consideration that
qualify as measurement period adjustments are adjusted retrospectively, with corresponding adjustments against
goodwill. Measurement period adjustments are adjustments that arise from additional information obtained during the
‘measurement period’ (which cannot exceed one year from the acquisition date) about facts and circumstances that
existed at the acquisition date.
45
SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The subsequent accounting for changes in the fair value of the contingent consideration that do not qualify as
measurement period adjustments depends on how the contingent consideration is classified. Contingent consideration
that is classified as equity is not remeasured at subsequent reporting dates and its subsequent settlement is accounted
for within equity. Other contingent consideration is remeasured to fair value at subsequent reporting dates with
changes in fair value recognised in profit or loss.
When a business combination is achieved in stages, the Group’s previously held interests in the acquired entity are
remeasured to its acquisition-date fair value and the resulting gain or loss, if any, is recognised in profit or loss.
Amounts arising from interests in the acquiree prior to the acquisition date that have previously been recognised
in other comprehensive income are reclassified to profit or loss, where such treatment would be appropriate if that
interest were disposed of.
If the initial accounting for a business combination is incomplete by the end of the reporting period in which the
combination occurs, the Group reports provisional amounts for the items for which the accounting is incomplete.
Those provisional amounts are adjusted during the measurement period (see above), or additional assets or liabilities
are recognised, to reflect new information obtained about facts and circumstances that existed as of the acquisition
date that, if known, would have affected the amounts recognised as of that date.
(c) Revenue
The Group operates two main revenue streams throughout various geographical locations – Construction and Services.
Construction Revenue
The Group derives revenue from construction of buildings and civil projects globally. The construction of each project is
generally taken as one performance obligation. Where contracts are entered with several performance obligations, the
total transaction price is allocated to each performance obligation based on stand-alone selling prices.
As per normal practice, the transaction price of a project is fixed at the start containing bonus and penalty elements
based on performance construction criteria known as variable consideration.
The performance obligation is fulfilled over time and as such revenue is recognised over time. As work is performed on
the assets being constructed, they are controlled by the customer and have no alternative use for the Group.
Revenue earned is recognised on the measured input of each process based on resources consumed per appraisals that
are agreed with the customer on a regular basis.
Services Revenue
Maintenance and other services are performed by the Group for a variety of industries. 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.
Variable Consideration
Contracts may include performance bonuses or penalties assessed against the timeliness or cost effectiveness of work
completed or other performance related KPIs. Revenue recognition of variable consideration is only satisfied when
there are no uncertainties to its entitlement, this is known as the “constraint” requirements.
The Group assess the constraint requirements on a periodic basis when estimating the variable consideration to be
included in the transaction price. The estimate is based on all available information including historic performance.
Where modifications to contracts are made, the transaction price is updated to reflect these. Where the modification
price is not confirmed, an estimate is made of the amount of revenue to recognise whilst also considering the constraint
requirement.
Transaction Price and Contract Modifications
The transaction price is the amount of consideration to which the Company expects to be entitled to under the
customer contract and which is used to value total revenue and is allocated to each performance obligation.
The determination of this amount includes both ‘fixed consideration’, (for example the agreed lump sum, aggregated
schedule of rates or pricing for services) and ‘variable consideration.
46
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
The main variable consideration elements are claims (contract modifications) and consideration for optional works and
provisional sums, each of which need to be assessed. Contract modifications are changes to the contract approved by the
parties to the contract. When determining whether approval has been granted by the parties to the contract, the Group
takes into consideration factors including, but not limited to, contract terms, customary business practices, the status of
the negotiation process, the ability to enforce the other party and expert legal opinion.
A contract modification may exist even though the parties to the contract may not have finalised the scope or price (or
both) of the modification. Contract modifications may include a claim, which is an amount that the contractor seeks to
collect as reimbursement for costs incurred (and/or to be incurred) due to reasons or events that could not be foreseen
and are not attributable to the contractor, for more work performed (and/or to be performed) or variations that were not
formalised in the contract scope.
The right to income from a contract modification shall be provided to the extent the agreement with the customer creates
enforceable rights and obligations. Once the enforceable right has been identified, the Group applies the guidance given
in AASB 15 in relation to variable consideration. This requires an assessment that it is highly probable that there will not be
a significant reversal of this revenue in the future.
Costs to Obtain and Fulfil a Contract
Costs incurred during the tender/bid process are expensed, unless they are incremental to obtaining the contract and
the Group expects to recover those costs or where they are explicitly chargeable to the customer regardless of whether
the contract is obtained. The incremental costs of obtaining a contract are those costs that an entity incurs to obtain a
contract with a customer that it would not have incurred if the contract had not been obtained.
Financing Components
The Group does not expect to have any contracts where the period between the transfer of the promised goods or
services to the customer represents a financing component. Consequently, the Group does not adjust any of the
transaction prices for the time value of money.
(d) Finance costs
Finance costs are recognised as expenses in the period in which they are incurred, except where they are directly
attributable to the acquisition, construction or production of an asset. The capitalisation rate used to determine the
amount of finance costs to be capitalised is the weighted average interest rate on the Group’s borrowings outstanding
during the period.
(e)
Income tax
The Group is subject to income taxes in Australia and other jurisdictions around the world in which the entities within the
Group operates.
Income tax expense (income)
The income tax expense (income) on profit or loss for the year comprises current and deferred tax expense (income).
Current income tax expense (income) is the tax payable (receivable) on the taxable income for the period, using tax rates
enacted at the reporting date, and any adjustments to tax payable in respect of previous years. Deferred income tax
expense (income) reflects movements in deferred tax assets and liabilities attributable to temporary differences between
the tax base of assets and liabilities and their carrying amounts in the financial statements, as well as unused tax losses.
Current and deferred tax expense (income) are recognised in profit or loss, except when they relate to items that are
recognised in other comprehensive income or directly in equity, in which case, the current and deferred tax expense
(income) are also recognised in other comprehensive income or directly in equity respectively. Where current tax or
deferred tax expense (income) arises from the initial accounting for a business combination, the tax effect is included in
the accounting for the business combination
Deferred tax assets (liabilities)
Deferred tax assets and liabilities are ascertained based on temporary differences arising between the tax bases of assets
and liabilities and their carrying amounts in the financial statements. Deferred tax assets also result where the amounts
have been fully expensed but future tax deductions are available. No deferred income tax will be recognised from the
initial recognition of an asset or liability, excluding a business combination, where there is no effect on accounting or
taxable profit or loss.
Deferred tax assets relating to temporary differences and unused tax losses are recognised only to the extent that it is
probable that future taxable profit will be available against which the benefits of the deferred tax asset can be utilised.
The carrying amount of deferred tax assets is reviewed at the end of each reporting period and reduced to the extent that it
is no longer probable that sufficient taxable profits will be available to allow all or part of the asset to be recovered.
47
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Where temporary differences exist in relation to investments, subsidiaries, branches, associates and joint ventures,
deferred tax assets and liabilities are not recognised where the timing of the reversal of the temporary difference can be
controlled and it is not probable that the reversal will occur in the foreseeable future.
Deferred tax assets and liabilities are offset where there is a legally enforceable right to offset current tax assets and
liabilities and when the deferred tax balances relate to the same taxation authority. Current tax assets and liabilities are
offset where the entity has a legally enforceable right to offset and intends either to settle on a net basis, or to realise the
asset and settle the liability simultaneously.
The head entity and the controlled entities in the tax consolidated group continue to account for their own current and
deferred tax amounts. In addition to its own current and deferred tax amounts, the head entity also recognised current
tax liabilities (assets) and the deferred tax assets arising from unused tax losses and unused tax credits assumed from
controlled entities in the tax consolidated group.
Members of the Group have entered into a tax funding agreement. Under the funding agreement, the allocation of tax
within the Group is based on a group allocation. The tax funding agreement requires payments to/from the head entity
to be recognised via an inter-company receivable (payable) which is at call.
(f) Goods and services tax (GST)
Revenue, 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, it is recognised as part of the
cost of acquisition of the asset, or as an expense; or
for receivables and payables which are recognised inclusive of GST.
-
The net amount of GST recoverable from, or payable to, the taxation authority is included as part of receivables or
payables in the statement of financial position.
Cash flows are included in the cash flow statement on a gross basis. The GST component of cash flows arising from
investing and financing activities, which is recoverable from, or payable to, the taxation authority is classified as
operating cash flows.
Commitments and contingencies are disclosed net of the amount of GST receivable from, or payable to, the taxation
authority.
(g) Earnings per share
Basic earnings per share
Basic earnings per share is determined by dividing the profit attributable to equity holders of the Group, excluding any
costs of servicing equity other than ordinary shares, by the weighted average number of ordinary shares outstanding
during the reporting period, adjusted for bonus elements in ordinary shares issued during the period.
Diluted earnings per share
Diluted earnings per share adjusts the figures used in the determination of basic earnings per share to take into account
the after income tax effect of interest and other financial costs associated with dilutive potential ordinary shares and
the weighted average number of shares outstanding plus the weighted average number of ordinary shares that would
be issued on the conversion of all potential ordinary shares into ordinary shares.
(h) Fair value of assets and liabilities
When an asset or liability, financial or non-financial, is measured at fair value for recognition or disclosure purposes,
the fair value is based on the price that would be received to sell an asset or paid to transfer a liability in an orderly (i.e.
unforced) transaction between market participants at the measurement date. It assumes that the transaction will take
place either in the principal market or in the absence of a principal market, in the most advantageous market.
Fair values are categorised into different levels in a fair value hierarchy based on the inputs used in the valuation
techniques as follows:
-
-
-
Level 1: quoted prices (unadjusted) in active markets for identical assets or liabilities
Level 2: inputs other than quoted prices included in Level 1 that are observable for the asset or liability, either
directly (i.e. as prices) or indirectly (i.e. derived from prices)
Level 3: inputs for the asset or liability that are not based on observable market date (unobservable inputs).
(i) Cash and cash equivalents
Cash and cash equivalents are measured and carried at amortised cost. Cash and cash equivalents include cash
on hand, deposits held at call with financial institutions, other short-term highly liquid investments that are readily
convertible to known amounts of cash and which are subject to an insignificant risk of changes in value, and bank
overdrafts with original maturities of three months or less.
48
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(j) Trade and other receivables
Trade and other receivables are initially recognised at transaction price and subsequently measured and carried at
amortised cost. Collectability of trade receivables is made on an ongoing basis and when there is objective evidence
that the Group will not be able to collect the receivable, allowances for credit losses are recognised. These losses are
recognised in the income statement. The simplified approach is used.
(k)
Inventories
Inventories are measured at the lower of cost and net realisable value.
Cost
Cost includes direct materials, direct labour, other direct variable costs and allocation production overheads necessary to
bring inventories to their present location and condition, based on normal operating capacity of the production facilities.
The cost of manufacturing inventories and work-in-progress are assigned to inventories using the weighted average cost
method. Costs arising from exceptional wastage are expensed as incurred.
Net realisable value
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of
completion and selling expenses.
Allowances are recorded for inventory considered to be excess or obsolete.
(l) Property, plant and equipment
Land is measured at cost. Buildings and all other property, plant and equipment are measured at cost less accumulated
depreciation and impairment losses. Costs include expenditures that are directly attributable to the acquisition of the
asset and may also include transfers from equity of any gains or losses on qualifying cash flow hedges of foreign currency
purchases of property, plant and equipment.
Subsequent costs
Subsequent costs are included in the asset’s carrying amount or recognised as a separate asset, as appropriate, only
when it is probable that the future economic benefits associated with the item will flow to the Group and the cost of the
item can be measured reliably. The carrying amount of any component accounted for as a separate asset is derecognised
when replaced. All other repairs and maintenance costs are charged to profit or loss during the reporting period in which
they are incurred.
Depreciation
Land is not depreciated. Depreciation of major mining equipment is calculated on machine hours worked over their
estimated useful life. Leasehold improvements and leased assets are depreciated over the shorter of the lease terms or
their useful lives. Items in the course of construction or not yet in service are not depreciated. Depreciation on the other
assets are recognised in profit or loss on a straight-line basis over the estimated useful life of the asset.
The following useful lives are used in the calculation of depreciation:
-
-
-
-
Buildings and leasehold improvements 3 – 50 years
3 – 10
years
Office and computer equipment
years
3 – 8
Motor vehicles
3 – 40 years
Plant and rental equipment
The depreciation methods, assets’ residual values and useful lives are reviewed, and adjusted if appropriate, at the end of
each reporting period.
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.
Derecognition
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. Gains and losses on disposals are calculated as the difference
between the net disposal proceeds and the asset’s carrying amount and are included in the statement of profit or loss
and other comprehensive income in the year that the item is derecognised. Any revaluation reserve relating to sold assets
is transferred to retained earnings.
(m)
Intangibles
Goodwill
Goodwill and goodwill on consolidation are initially recorded at the amount by which the purchase price for a business
combination exceeds the fair value attributed to the interest in the net fair value of identifiable assets, liabilities and
contingent liabilities at the date of acquisition. Goodwill on acquisition of subsidiaries is included in intangible assets.
49
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT
Notes to the Financial Statements (CONTINUED)
NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Goodwill is not amortised but is assessed annually for impairment or more frequently if the facts or circumstances indicate
a potential impairment and is carried at cost less accumulated impairment losses. Goodwill is allocated to cash-generating
units for the purpose of impairment assessment. Information about impairment assessment of intangibles is set out in
Note 13. Gains and losses on the disposal of an entity include the carrying amount of goodwill relating to the entity sold.
Customer Relationships
Customer relationships are acquired as part of the business combination. They are recognised at their fair value at the
date of acquisition and are subsequently amortised on a straight-line based on the timing of projected cash flows of the
contracts over their estimated useful lives.
(n) Trade and other payables
Trade creditors and other payables are non-interest bearing and are initially recognised at fair value and subsequently
carried at amortised cost. They represent liabilities for goods and services provided to the Group prior to the end of the
financial year that remained unpaid and arise when the Group becomes obliged to make future payments in respect of
the purchase of these goods and services. Settlement of these liabilities are in line with normal commercial terms.
(o)
Interest bearing liabilities
All loans and borrowings are initially recognised at fair value less directly attributable transaction costs. Subsequently,
interest bearing liabilities are then stated at amortised cost with any difference between cost and redemption value
being recognised in the statement of profit and loss over the period of the borrowings on an effective interest basis.
All interest bearing liabilities are classified as current liabilities unless the Group has an unconditional right to defer
settlement of the liability for at least 12 months after the reporting date.
(p) Provisions
Provisions are recognised when the Group has a present legal or constructive obligation that can be estimated reliably
as a result of past event, for which it is probable that an outflow of economic benefits will result and be required to
settle the obligation. The amount recognised as a provision is the best estimate of the consideration required to settle
the present obligation at the reporting date, taking into account the risks and uncertainties surrounding the obligation.
If the time value of money is material, provisions are discounted using a current pre-tax rate specific to the liability. The
increase in the provision resulting from the passage of time is recognised as a finance cost.
Employee Benefits
The provision for employee entitlements to wages, salaries and annual and long service leave represents the amount
which the Group has a present obligation to pay resulting from employees’ services provided up to the reporting date.
-
-
Short-term Employee Benefits - Employee benefits expected to be settled within 12 months are measured at their
nominal values using the remuneration rate expected to apply at the time of settlement.
Long-term Employee Benefits - Employee benefits which are not expected to settle within 12 months are
measured at the present value of the estimated future cash flows to be made of those benefits. Information about
long-term employee benefits measurement is set out in Note 18(b).
Onerous Contracts
A provision for onerous contracts is recognised when the expected benefits to be derived from a contract are less than
the unavoidable cost of meeting its obligations under the contract. The provision is measured at the present value of
the lower of the expected cost of terminating the contract and the expected net cost of continuing with the contract.
(q) Financial instruments
Financial instruments are recognised when the Group becomes a party to the contractual provisions to the instrument.
Financial instruments for the Group include cash and cash equivalents, trade and other receivables, trade and other
payables, interest-bearing financial liabilities and equity investments not held for trading. The initial recognition and
classification of subsequent measurement are set out within the relevant accounting policy.
Impairment
At the end of each reporting period, the Group assesses whether there is objective evidence that a financial instrument
has been impaired. Impairment losses are recognised in the statement of profit or loss. Impairment loss is measured as
the difference between the asset’s carrying amount and the present value of estimated future cash flows (excluding
future credit losses that have not been incurred) discounted at the financial asset’s original effective interest rate.
Derecognition
Financial assets are derecognised where the contractual rights to receipt of cash flows expires or the asset is
transferred to another party whereby the entity no longer has any significant continuing involvement in the risks
and benefits associated with the asset. Financial liabilities are derecognised where the related obligations are either
discharged, cancelled or expired.
The difference between the carrying value of the financial liability extinguished or transferred to another party and the
fair value of consideration paid, including the transfer of non-cash assets or liabilities assumed, is recognised in profit
or loss.
50
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
(r) Share capital
Ordinary share capital
Issued and paid up capital is recognised at the fair value of the consideration received by the Group. Incremental
costs directly attributable to the issue of new shares or options are shown in equity as a deduction, net of tax, from
the proceeds.
Dividends
A provision for dividends is not recognised as a liability unless the dividends are declared on or before the
reporting date.
(s) Equity-settled compensation
Share-based compensation benefits are provided to employees in the form of options and performance rights in
exchange for the rendering of services under an employee share plan. The cost of equity-settled transactions is
recognised as an expense with a corresponding increase in equity over the vesting period.
(t) Government grants
Government grants relating to costs are deferred and recognised in profit or loss over the period necessary to match
them with the costs that they are intended to compensate.
Government grants that are receivable as compensation for expenses or losses already incurred or for the purpose of
giving immediate financial support to the Group with no future related costs are recognised in profit or loss in the period
in which they become receivable.
(u) Leases
The Group leases various offices, warehouses, equipment and cars. Lease contracts are typically made for fixed periods
of 3 to 10 years but may have extension options. Lease terms are negotiated on an individual basis and contain a wide
range of different terms and conditions. The lease agreements do not impose any covenants, but leased assets may not
be used as security for borrowing purposes.
The Group recognises a right-of-use asset and a corresponding lease liability with respect to all lease arrangements in
which it is the lessee, except for short-term leases (defined as leases with a term of 12 months or less) and leases of low
value assets. For these leases, the Group recognises the lease payments as an operating expense on a straight-line basis
over the term of the lease.
The lease liability is initially measured at the present value of the lease payments that are not paid at the commencement
date using the Group’s incremental borrowing rate. Lease payments included in the measurement of the lease liability
comprise:
-
-
-
-
-
Fixed lease payments (including in-substance fixed payments), less any lease incentives receivable;
Variable lease payments that depend on an index or rate, initially measured using the index or rate at
commencement date;
The amount expected to be payable by the lessee under residual value guarantees;
The exercise price of purchase options, if the lessee is reasonably certain to exercise the options; and
Payments of penalties for terminating the lease, if the lease term reflects the exercise of an option to terminate
the lease
The lease liability is subsequently measured by increasing the carrying amount to reflect interest on the lease liability
(using the effective interest method) and by reducing the carrying amount to reflect these payments.
The group remeasures the lease liability (and makes a corresponding adjustment to the related right-of-use asset)
whenever:
-
-
-
The lease term has changed or there is a significant event or change in circumstances resulting in a change in the
assessment of exercise of a purchase option, in which case the liability is remeasured by discounting the revised
lease payments using a revised discount rate.
The lease payments change due to changes in an index or a change in expected payment under a guaranteed
residual value, in which case the lease liability is remeasured by discounting the revised lease payments using an
unchanged discount rate (unless the lease payments change is due to a change in a floating interest rate, in which
case a revised discount rate is used).
A lease contract is modified and the lease modification is not accounted for as a separate lease, in which case
the lease liability is remeasured based on the lease term of the modified lease by discounting the revised lease
payments using a revised discount rate at the effective date of the modification.
The right-of-use assets comprise the initial measurement of the corresponding lease liability, lease payments made at
or before the commencement day, less any lease incentives received and any initial direct costs. They are subsequently
measured at cost less accumulated depreciation and impairment loss.
51
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 1. STATEMENT OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)
Right-of-use assets are depreciated over the shorter period of lease term and useful life of the right-of-use asset. If a
lease transfers ownership of the underlying asset of the cost of the right-of-use asset reflects that the Group expects to
exercise a purchase option, the related right-of-use asset is depreciated over the useful life of the underlying asset. The
depreciation starts at the commencement date of the lease.
The Group applies AASB 136 to determine whether a right-of-use asset is impaired and accounts for any identified
impairment loss as described in the ‘Property, Plant and Equipment” policy.
Variable rents that do not depend on an index or rate are not included in the measurement of the lease liability and the
right-of-use asset. The related payments are recognised as an expense in the period in which the event or condition that
triggers those payments occurs and are included in the line “Other Expenses” in profit or loss.
(v) Derivative Financial Instruments
Derivatives are initially recognised at fair value on the date a derivative contract is entered into and are subsequently
remeasured to their fair value at each reporting date. The accounting for subsequent changes in fair value depends on
whether the derivative is designated as a hedging instrument, and if so, the nature of the item being hedged.
Cash flow hedges
Cash flow hedges are used to cover the consolidated group’s exposure to variability in cash flows that are attributable
to particular risks associated with a recognised asset or liability or a firm commitment which could affect profit or
loss. The effective portion of the gain or loss on the hedging instrument is recognised in other comprehensive income
through the cash flow hedges reserve in equity, whilst the ineffective portion is recognised in profit or loss. Amounts
taken to equity are transferred out of equity and included in the measurement of the hedged transaction when the
forecast transaction occurs.
Cash flow hedges are tested for effectiveness on a regular basis both retrospectively and prospectively to ensure that
each hedge is highly effective and continues to be designated as a cash flow hedge. If the forecast transaction is no
longer expected to occur, the amounts recognised in equity are transferred to profit or loss.
(w) New Accounting Standards and Interpretations Adopted
The Group has adopted all of the new and amended Accounting Standards and Interpretations issued by the AASB
that are relevant to the Group and effective for the current annual reporting period. The adoption of the standards and
interpretations has no material impact on the financial report.
(x) New Accounting Standards and Interpretations Issued but not yet Effective
Australian Accounting Standards and Interpretations that have recently been issued or amended but are not yet
mandatory, have not been early adopted by the Group for the annual reporting period ended 30 June 2022. The
Group’s assessment of the impact of these new or amended Accounting Standards and Interpretations, most relevant
to the Group, are set out below.
The following new or amended Accounting Standards and Interpretations are not expected to have a significant impact
on the Group’s consolidated financial statements:
•
•
•
•
•
AASB 2020-1 Amendments to Australian Accounting Standards – Classification of Liabilities as Current or
Non-current
AASB 2020-3 Amendments to Australian Accounting Standards – Annual Improvements 2018-2020 and
Other Amendments
AASB 2021-2 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies and
Definition of Accounting Estimates
AASB 2021-5 (issued June 2021) Amendments to Australian Accounting Standards – Deferred Tax related to
Assets and Liabilities arising from a Single Transaction
AASB 2021-6 Amendments to Australian Accounting Standards – Disclosure of Accounting Policies: Tier 2
and Other Australian Accounting Standards
52
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 2. REVENUE
Revenue from contracts with customers is disaggregated by major service lines and is in line with the Group’s reportable
segments (See Note 29).
Construction revenue
Services revenue
NOTE 3. OTHER INCOME / FINANCE EXPENSES
Other income
Property rental income
Freight and other income
Finance expenses
Interest on right of use liabilities
Other finance expenses
NOTE 4. DEPRECIATION AND AMORTISATION
Depreciation
Buildings and leasehold improvements
Office and computer equipment
Motor vehicles
Plant and rental equipment
Right of use assets
Total depreciation expense
Amortisation
Customer relationships
Software
Depreciation and amortisation rates are set out in Note 1(l), 1(m) and 1(u).
2022
$’000
2021
$’000
315,396
328,845
644,241
291,741
277,800
569,541
2022
$’000
2021
$’000
195
2,019
2,214
814
1,749
2,563
264
855
1,119
778
1,721
2,499
2022
$’000
2021
$’000
312
821
3,530
9,975
14,638
8,414
23,052
3,590
30
3,620
319
1,051
3,004
9,117
13,491
8,431
21,922
4,013
-
4,013
53
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT
Notes to the Financial Statements (CONTINUED)
NOTE 5.
INCOME TAX EXPENSE
This note provides all analysis of the Group’s income tax expense:
(a)
Income tax expense
Current tax expense
Deferred tax expense / (benefit) (see Note 17)
(Over) / under provision in respect to prior year
Income tax benefit
(b) Numerical reconciliation of income tax benefit to prima facie tax payable
Profit for the year
Tax at the Australian rate of 30% (2021 - 30%)
Tax effect of amounts which are not deductible (taxable) in calculating taxable income:
-
-
-
-
Increase in income tax expense due to non-tax deductible items
Non-deductible losses on overseas entities
Difference in overseas tax rate
Sundry items
Amount (over) / under provided in prior year
Income tax expense attributable to entity
(c) Amounts recognised directly in equity
2022
$’000
2021
$’000
693
7,071
(902)
6,862
26,994
8,098
(211)
(35)
(86)
(2)
(902)
6,862
799
5,892
(126)
6,565
18,618
5,585
287
45
774
-
(126)
6,565
Aggregate current and deferred tax arising in the financial year and not recognised in the net profit or loss but directly
credited (debited) to equity is as follows:
Share-based payments
2022
$’000
-
2021
$’000
-
NOTE 6. KEY MANAGEMENT PERSONNEL COMPENSATION
The remuneration disclosures of directors and other members of KMP during the year are provided in Section 7 of the
Remuneration Report designated as audited and forming part of the Directors’ Report.
2022
$
2021
$
6,485,368
5,658,223
35,063
171,148
506,751
95,289
168,558
(34,337)
7,198,330
5,887,733
Short-term employee benefits
Long service leave
Post-employment benefits
Share-based payments
54
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 7. AUDITORS’ REMUNERATION
During the year, the following fees were paid or payable for services provided by the auditors of the parent entity, its related
practices and non-related audit firms:
Remuneration of the auditor of the parent entity(1)
Audit or review of the financial statements
Remuneration of parent entity auditor’s network firms(1)
Audit or review of the financial statements
Remuneration of other auditors of subsidiaries
Audit or review of the financial statements
Non-assurance related services
- tax compliance
(1) The auditor of the parent entity is BDO Audit (WA) Pty Ltd (2021: BDO Audit (WA) Pty Ltd).
2022
$
2021
$
342,816
302,500
342,816
302,500
56,044
78,313
15,015
13,785
2,897
17,912
3,628
17,413
55
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 8. CAPITAL MANAGEMENT
(a) Risk Management
Management controls the capital of the Group in order to maintain a sustainable debt to equity ratio, generate long-
term shareholder value and ensure that the Group can fund its operations and continue as a going concern. The Group’s
debt and capital include ordinary share capital and financial liabilities, supported by financial assets. The Group is not
subject to any externally imposed capital requirements, except for Corporations Act 2001 Chapter 6 in relation to take
over provisions and ASX listing rules Chapter 7 on 15% placement cap on new equity raising.
Management effectively manages the Group’s capital by assessing the Group’s financial risks and adjusting its capital
structure in response to changes in these risks and in the market. These responses include the management of debt
levels, distributions to shareholders and share issues.
Net cash / (debt)
Net debt is calculated as the total secured borrowings less cash and cash equivalents.
(b) Dividends
Distributions paid
The amounts paid, provided or recommended by way of dividend by the parent
entity are:
-
-
-
-
Final fully franked ordinary dividend for the year ended 30/06/2020 of 0.5 cents
per share paid on 21/10/2020 franked at the tax rate of 30%
Interim fully franked ordinary dividend for the year ended 30/06/2021 of 1.0 cent
per share paid on 28/04/2021 franked at the tax rate of 30%
Final fully franked ordinary dividend for the year ended 30/06/2021 of 1.0 cent
per share paid on 21/10/2021 franked at the tax rate of 30%
Interim fully franked ordinary dividend for the year ended 30/06/2022 of 1.5 cents
per share paid on 28/04/2022 franked at the tax rate of 30%
Dividends declared after 30 June 2022
(i) The Directors have resolved to declare a final fully franked ordinary dividend of
1.5 cents per share payable on 13/09/2022, franked at the tax rate of 30%.
Franking account balance
(ii) Balance of franking account at year end adjusted for franking credits arriving from
payment of provision for income tax, dividends recognised as receivables and
franking debits arising from payment of dividends and franking credits that may
be prevented from distribution in subsequent financial years.
Subsequent to year end, the franking account would be reduced by the proposed
dividend as follows:
-
Dividend declared post year end
2022
$’000
20,527
2021
$’000
12,249
2022
$’000
2021
$’000
-
-
4,458
6,687
2,230
4,458
-
-
11,145
6,688
6,687
6,687
-
-
17,823
16,936
(2,866)
14,957
(1,911)
15,025
56
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 9. EARNINGS PER SHARE
Profit attributable to members of the parent entity
WANOS used in the calculation of basic EPS (shares)
WANOS used in the calculation of diluted EPS (shares)
Earnings per share
Basic (cents per share)
Diluted (cents per share)
NOTE 10. TRADE AND OTHER RECEIVABLES
Trade receivables(a)
Other receivables(b)
Provision for doubtful debts
Net balance sheet position for ongoing construction contracts:
Current contract assets(c)
Non-current contract assets(c)
Current contract liabilities(c)
2022
20,132
2021
12,053
445,796,415
445,796,415
451,229,035
450,096,415
4.5
4.5
2.7
2.7
2022
$’000
2021
$’000
104,358
90,400
393
(6,875)
97,876
1,569
(5,468)
86,501
60,756
1,557
(33,116)
29,197
127,073
55,726
1,869
(20,571)
37,024
123,525
(a) Trade receivables
Trade receivables are amounts due from customers for goods sold or services performed in the ordinary course
of business. Collection of the amounts is expected within one year or less and therefore have been classified as
current assets.
(b) Other receivables
These amounts generally arise from transactions outside the usual operating activities of the Group. Collateral is not
normally obtained.
(c) Contract assets and contract liabilities
Contract assets are balances due from customers as work is performed and therefore a contract asset is recognised over
the period in which the performance obligation is fulfilled. This represents the entity’s right to consideration for the goods
and services transferred to date. Amounts are generally reclassified to trade receivables when these have been certified
or invoiced to a customer. Contract liabilities arise when payment is received prior to work being performed.
(d) Risk exposure
Information about the Group’s exposure to credit risk, foreign currency risk and interest rate risk can be found in Note 32.
57
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 11.
INVENTORIES
Raw materials and stores at cost
Finished goods
Work in progress and materials on site
2022
$’000
4,918
9,019
4,777
18,714
2021
$’000
5,185
5,351
4,332
14,868
Provision for obsolete stock was included in this amount of $nil (2021: $nil).
NOTE 12. PROPERTY, PLANT AND EQUIPMENT
Building &
Leasehold
Improvements
Office &
Computer
Equipment
Motor
Vehicles
Plant &
Rental
Equipment
Capital
Work in
Progress
Total
$’000
$’000
$’000
$’000
$’000
$’000
Land
$’000
Year Ended 30 June 2022
Opening net book amount
1,557
2,260
1,470
11,246
Additions
Assets acquired through business
combination
Disposals
Depreciation charge
Foreign exchange differences
-
-
(513)
-
-
472
887
1,778
64,114
15,545
895
81,542
40
18,722
110
(196)
(312)
(12)
106
5,078
14,572
247
20,113
(4)
(13)
(437)
(821)
(3,530)
(9,975)
(1)
(2)
(218)
-
-
-
(1,163)
(14,638)
(233)
Closing net book amount
1,044
2,322
1,637
14,557
83,601
1,182 104,343
As at 30 June 2022
Cost
Accumulated depreciation
Accumulated impairment
1,044
4,386
7,714
30,147
153,589
1,182
198,062
-
-
(2,064)
(6,077)
(15,590)
(69,988)
-
-
-
-
-
-
(93,719)
-
Net book amount
1,044
2,322
1,637
14,557
83,601
1,182 104,343
Year Ended 30 June 2021
Opening net book amount
Additions
Disposals
Depreciation charge
Foreign exchange differences
1,885
-
(328)
-
-
2,576
2,348
10,559
384
(387)
(319)
6
205
(29)
4,301
(599)
(1,051)
(3,004)
(3)
(11)
60,715
13,646
(1,108)
(9,117)
(22)
1,172
79,255
68
18,604
(345)
(2,796)
-
-
(13,491)
(30)
Closing net book amount
1,557
2,260
1,470
11,246
64,114
895
81,542
As at 30 June 2021
Cost
Accumulated depreciation
Accumulated impairment
1,557
-
-
4,375
(2,115)
-
6,952
23,741
127,204
895
164,724
(5,482)
(12,495)
(63,090)
-
-
-
-
-
(83,182)
-
Net book amount
1,557
2,260
1,470
11,246
64,114
895
81,542
58
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 13. INTANGIBLES
Year ended 30 June 2022
Opening net book amount
Additions
Transfers
Impairment charge
Amortisation charge
Foreign exchange differences
Closing net book amount
As at 30 June 2022
Cost
Accumulated amortisation and impairment
Net book amount
Year ended 30 June 2021
Opening net book amount
Additions
Impairment charge
Amortisation charge
Foreign exchange differences
Closing net book amount
As at 30 June 2021
Cost
Accumulated amortisation and impairment
Net book amount
Goodwill
$’000
Customer
Relationships
$’000
Software
$’000
Total
$’000
89,827
13,344
-
-
-
-
(442)
89,385
-
-
-
(3,590)
(38)
9,716
1,416
2,154
-
-
(30)
-
104,587
2,154
-
-
(3,620)
(480)
3,540
102,641
114,154
(24,769)
89,385
29,115
(19,399)
9,716
3,570
(30)
3,540
146,839
(44,198)
102,641
89,886
17,364
-
-
-
(59)
89,827
-
-
(4,013)
(7)
13,344
-
1,416
-
-
-
107,250
1,416
-
(4,013)
(66)
1,416
104,587
114,596
(24,769)
89,827
29,153
(15,809)
13,344
1,416
-
1,416
145,165
(40,578)
104,587
59
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 13. INTANGIBLES (CONTINUED)
Impairment disclosures of non-financial assets
At the end of each reporting period, the Group reviews the carrying values of its tangible and intangible assets to determine
whether there is any indication that those assets have been impaired. If such an indication exists, the recoverable amount
of the asset, being the higher of the asset’s fair value less costs to sell and value in use, is compared to the asset’s carrying
value. Any excess of the asset’s carrying value over its recoverable amount is expensed to the statement of profit or loss.
Where it is not possible to estimate the recoverable amount of an individual asset, the Group estimates the recoverable
amount of the cash-generating unit to which the asset belongs.
Goodwill is allocated to cash-generating units which are based on the Group’s reporting segments:
Allocation of intangible assets to Cash-Generating Unit (CGU) groups
30 June 2022
30 June 2021
Engineering and
Construction
$’000
Asset
Maintenance
$’000
57,930
58,451
39,993
43,542
Mining
Services
$’000
1,178
1,178
Total
$’000
99,101
103,171
The recoverable amount of a CGU is determined based on value-in-use calculations which require the use of assumptions.
These calculations use discounted cash flow projections based on financial budgets approved by management covering a
three year period.
The discount rate used is the Group’s weighted average cost of capital.
The same growth rate is applied across all CGU’s and reflect the long-term average growth rate and management’s outlook
on growth.
Significant estimate: Key assumptions used for value-in-use calculations
Engineering and Construction
Asset Maintenance
Mining Services
Long-term growth rate
Pre-tax discount rate
2022
%
2.00%
2.00%
2.00%
2021
%
2.00%
2.00%
2.00%
2022
%
12.29%
12.29%
12.29%
2021
%
12.29%
12.29%
12.29%
Sensitivity
Management believe that any reasonably possible change in the key assumptions on which the recoverable amount based in
all the CGU’s would not cause the remaining carrying amount to exceed its recoverable amount.
Impairment expense
The Group performs its impairment test on an annual basis. The Group considers the relationship between its market
capitalisation and its book value, among other factors when reviewing indicators of impairment. As a result of the impairment
testing process, no impairment is recognised for the year ended 30 June 2022 (2021: no impairment recognised).
NOTE 14. TRADE AND OTHER PAYABLES
Current
Trade payables
Other payables and accrued expenses
2022
$’000
2021
$’000
79,491
42,905
63,231
43,253
122,396
106,484
Information about the Group’s exposure to currency and liquidity risks is included in Note 32.
60
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT
Notes to the Financial Statements (CONTINUED)
NOTE 15. LEASES
The recognised right of use liabilities are as follows:
Current right of use liability
Non-current right of use liability
Total right of use liabilities
The recognised right of use assets relate to the following types of assets:
Properties
Equipment and vehicles
Total right of use assets
2022
$’000
7,654
10,860
18,514
2021
$’000
8,253
13,096
21,349
17,029
246
17,275
19,852
487
20,339
Additions to the right-of-use assets during the year was $5,349,000 (2021: $2,797,000).
Extension Options
Certain leases contain extension options exercisable by the Group. These extension options are exercisable only by the Group
and not by the lessors. The Group assesses, at lease commencement, whether it is reasonably certain to exercise the extension
options, and where it is reasonably certain, the extension period has been included in the lease liability. The Group reassesses
whether it is reasonably certain to exercise the options if there is a significant event or significant change in circumstances
within its control.
NOTE 16. BORROWINGS
Current
Secured borrowings - Term facility
Secured borrowings - Asset financing
Other borrowings - Insurance premium funding
Non-current
Secured borrowings - Term facility
Secured borrowings - Asset Financing
The carrying amount of non-current assets pledged as first security are:
Plant, motor vehicles and equipment over which hire purchase contracts apply
Total amount
(a) Hire purchase finance
2022
$’000
2021
$’000
3,000
10,983
-
13,983
2,250
22,542
24,792
3,000
10,941
1,406
15,347
5,250
13,390
18,640
37,482
37,482
31,916
31,916
Hire purchase liabilities are effectively secured as the rights to the leased assets recognised in the financial statements
revert to the lessor in the event of default.
(b) Fair value
The fair value of borrowings is not materially different from the carrying value since interest payable on these borrowings
are either close to current market rates or the borrowings are of a short term nature.
61
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 17. DEFERRED TAX BALANCES
(a) Deferred tax assets
The balance comprises temporary differences attributed to:
Provisions
Share-based payments
Payables
Tax losses
Other
Total deferred tax assets
(b) Deferred tax liabilities
The balance comprises temporary differences attributed to:
Property Plant and Equipment
Debtors retention
Intangible assets
Total deferred tax liabilities
Net deferred tax assets/(liabilities)
(c) Reconciliations
2022
$’000
2021
$’000
12,503
291
1,888
13,514
1,030
29,226
9,233
993
2,503
12,729
16,497
9,551
55
1,219
22,810
2,345
35,980
3,142
871
3,968
7,981
27,999
Opening
Balance
$’000
Recognised in
Profit or Loss
$’000
(Over)/Under
Previous Years
$’000
Foreign exchange
differences
$’000
Closing
Balance
$’000
(3,142)
9,551
55
(3,968)
(871)
1,219
22,810
2,345
27,999
3,798
8,915
-
(4,387)
(1,179)
(37)
1,414
24,380
(799)
1,563
33,668
(3,922)
1,549
236
972
163
414
(6,351)
(132)
(7,071)
(5,679)
(526)
54
443
308
37
(195)
(1,177)
-
843
(5,892)
(2,169)
1,403
-
493
(285)
255
(2,945)
(1,183)
(4,431)
(1,322)
1,223
1
-
-
-
-
(366)
747
(15)
268
-
-
-
-
-
-
-
-
-
61
(61)
-
(24)
-
-
-
(27)
52
(46)
(45)
(9,233)
12,503
291
(2,503)
(993)
1,888
13,514
1,030
16,497
(3,142)
9,551
55
(3,968)
(871)
-
1,219
22,810
-
2,345
27,999
2022
Deferred tax assets / (liabilities)
in relation to:
Property, plant and equipment
Provisions
Share-based payments
Intangibles
Debtors retention
Payables
Tax losses
Other
2021
Deferred tax assets / (liabilities)
in relation to:
Property, plant and equipment
Provisions
Share-based payments
Intangibles
Debtors retention
Prepayments
Payables
Tax losses
Accrued Revenue
Other
62
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 17. DEFERRED TAX BALANCES (CONTINUED)
Significant judgment: recoverability of deferred tax assets
The deferred tax assets include an amount of $13,514,000 which relates to carried-forward tax losses. The group has concluded that
the deferred assets will be recoverable using the estimated future taxable income based on the approved business plans and budgets.
The losses can be carried forward indefinitely and have no expiry date.
NOTE 18. PROVISIONS
Current
Employee benefit provisions(a)
Lease provisions(c)
Other
Non-current
Employee benefit provisions(b)
Lease provisions(c)
Other
2022
$’000
2021
$’000
29,278
20,606
1,286
1,838
1,604
3,877
32,402
26,087
3,552
942
300
4,794
3,394
2,223
1,530
7,147
(a) Employee benefit provisions
The employee benefit provisions cover the Group’s liability for long service leave and annual leave.
The current portion of this liability includes all of the accrued annual leave, the unconditional entitlements to long service
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 of the provision of $29,278,000 (2021: $20,606,000) is presented
as current, since the group does not have an unconditional right to defer settlement for any of these obligations. However,
based on past experience, the Group does not expect all employees to take the full amount of accrued leave or require
payment within the next 12 months.
(b) Significant estimate: Provision for long-term employee benefits
In determining the employee entitlements relating to long service leave, consideration is given to employee wage
increases and the probability that the employee may satisfy any vesting requirements. Those cash flows are discounted
using market yields on Government bonds with terms to maturity that match the expected timing of cash flows
attributable to employee benefits.
(c) Lease provisions
$1,601,000 (2021: $3,381,000) of the liability is assumed as part of the business combination in a prior period for the fair
valuation of GCS’ lease agreements due to the leases’ terms being unfavourable relative to market terms. The market
value of rentals for these properties are lower than the rental terms agreed by GCS to lease the properties and therefore a
liability is recognised.
$627,000 (2021: $446,000) of onerous lease provisions assumed as part of the business combination in the prior period
for discount provided for a sub-lease, as the unavoidable costs of meeting the obligations under the contract exceed the
economic benefits expected to be received under it.
63
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 19. ISSUED CAPITAL
Share capital
Ordinary shares fully paid
Balance as at 1 July 2020
Balance as at 30 June 2021
Balance as at 30 June 2022
(a) Ordinary shares
2022
2021
Shares
$’000
Shares
445,796,415
218,096
445,796,415
$’000
218,096
Number of
shares
Total
$‘000
445,796,415
218,096
445,796,415
218,096
445,796,415
218,096
Fully paid ordinary shares carry one vote per share and entitle the holder to participate in dividends and the proceeds
on winding up of the Company in proportion to the number of shares held. Ordinary shares have no par value and the
Company does not have a limit on the amount of authorised capital.
(b) Options
No new options were issued in the current financial year.
(c) Performance rights
On 5 November 2021, a total of 11,890,000 performance rights were issued. See Note 30 for further discussions on
share-based payments.
NOTE 20. RESERVES
Nature and purpose of reserves
(a) Share-based payment reserve
The share-based payment 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.
(b) Asset revaluation surplus
The asset revaluation surplus includes the net revaluation increments and decrements arising from the revaluation of
non-current assets in accordance with Australian Accounting Standards.
(c) Foreign currency translation reserve
The foreign currency translation reserve records exchange differences arising on the translation of foreign operations
with functional currencies other than those of the presentation currency of these financial statements. Refer to
accounting policy Note 1.
(d) Reverse acquisition reserve
As a result of reverse acquisition accounting, a new equity account is created as a component of equity. This account
called ‘Reverse acquisition reserve’ is similar in nature to share capital. The Reverse acquisition reserve is not available
for distribution. This equity account represents a net adjustment for the replacement of the legal parent’s (SRG Global)
equity with that of the deemed acquirer (SRG Limited).
(e) Hedging Reserve - cash flow hedges
The reserve is used to recognise the effective portion of the gain or loss of cash flow hedge instruments that is
determined to be an effective hedge.
64
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 21. COMMITMENTS
Capital commitments
Committed at the reporting date but not recognised as liabilities, payable:
- Plant and equipment
Total capital commitments
2022
$’000
2021
$’000
4,890
4,890
1,102
1,102
NOTE 22. CONTINGENT ASSETS AND LIABILITIES
Certain claims arising out of construction and services contracts have been made by controlled entities in the ordinary course
of business. These claims are confidential in nature and may involve adjudication, arbitration or litigation. In accordance with
Australian Accounting Standards, due to the uncertainty in relation to the quantum and timing of the resolution of these claims,
no amounts have been recognised in the financial statements in relation to these matters.
The Group’s bank guarantees and bond facilities’ limits and drawdowns are disclosed in Note 31.
NOTE 23. CASH AND CASH EQUIVALENTS
Cash at bank and in hand
(a) Reconciliation of profit for the year to net cash from operating activities
Profit for the year
Depreciation and amortisation
Share-based payment
Earnings from equity accounted investment
(Gain)/loss on disposal of property, plant and equipment
Unrealised foreign exchange
Fair value adjustment to derivatives
Changes in assets:
-
-
-
-
-
-
(Increase)/decrease in trade and other receivables
(Increase)/decrease in contract assets
(Increase)/decrease in inventories
(Increase)/decrease in other assets
(Increase)/decrease in current tax assets
(Increase)/decrease in deferred tax assets
Changes in liabilities
-
-
-
-
(Decrease)/increase in trade and other payables
(Decrease)/increase in contract liabilities
(Decrease)/increase in provisions
(Decrease)/increase in tax liability
2022
$’000
59,302
59,302
2021
$’000
46,236
46,236
2022
$’000
2021
$’000
20,132
26,672
785
2
(1,060)
(1,564)
(2,067)
(11,377)
(4,719)
(3,700)
(80)
(160)
11,503
15,908
12,545
(1,200)
(503)
12,053
25,935
(160)
6
(174)
374
-
948
(16,319)
652
1,292
-
5,669
20,104
4,685
2,080
(1,974)
Cash Inflow from Operating Activities
61,117
55,171
65
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 23. CASH AND CASH EQUIVALENTS (CONTINUED)
(b) Non-cash financing and investing activities
Right of use assets recognised under AASB 16
(c) Reconciliation of liabilities arising from financing activities
2022
Borrowings
Asset financing liabilities
Lease liabilities
2021
Borrowings
Asset financing liabilities
Lease liabilities
2022
$’000
2021
$’000
5,349
2,797
Opening
Balance
$’000
Financing
Cash Flows
$’000
New/Extended
Leases
$’000
9,651
24,337
21,349
55,337
10,498
26,073
26,736
63,307
(4,401)
9,188
(8,184)
(3,397)
(847)
(1,736)
(8,184)
(10,767)
-
-
5,349
5,349
-
-
2,797
2,797
Closing
Balance
$’000
5,250
33,525
18,514
57,289
9,651
24,337
21,349
55,337
NOTE 24. PARENT ENTITY FINANCIAL INFORMATION
The table represents the legal parent entity, which is SRG Global Limited.
Financial Position
Assets
Current assets
Non-current assets
Total assets
Liabilities
Current liabilities
Non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Profit reserve
Accumulated losses
Total equity
Financial Performance
Loss for the year
Other comprehensive income
Total comprehensive loss for the year
2022
$’000
2021
$’000
1,800
95,641
97,441
14,364
119,176
133,540
32,544
9,811
42,355
35,039
11,275
46,314
55,086
87,226
158,010
18,255
45,479
(166,658)
55,086
158,010
17,470
56,623
(144,877)
87,226
22,829
-
22,829
3,857
-
3,857
With the exception of matters noted in Notes 21 and 22, there were no contingent liabilities, guarantees or capital
commitments of the parent entity not otherwise disclosed in these financial statements.
66
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 25. PARTICULARS RELATING TO CONTROLLED ENTITIES
(a) Group accounts include a consolidation of the following:
Entity
SRG Global Limited(1)
Controlled companies
CASC Contracting Pty Ltd
SRG Global Assets Pty Ltd(1)
SRG Global CASC Pty Ltd(1)
SRG Global Facades (NSW) Pty Ltd(1)
SRG Global Facades (QLD) Pty Ltd(1)
SRG Global Facades (VIC) Pty Ltd(1)
SRG Global Facades (WA) Pty Ltd(1)
SRG Global Facades (Western) Pty Ltd(1)
SRG Global Facades Pty Ltd(1)
SRG Global Infrastructure Pty Ltd (1) (3)
Carr Civil Contracting Pty Ltd(3)
SRG Global Integrated Services Pty Ltd(1)
SRG Global Investments Pty Ltd(1)
SRG Global Structures (VIC) Pty Ltd(1)
SRG Global Structures (WA) Pty Ltd(1)
Structural Systems Middle East LLC(2)
NASA Structural Systems LLC(2)
SRG Contractors US, Inc.
SRG Employee Share Trust
SRG Global (Australia) Limited(1)
SRG Global Building (Northern) Pty Ltd(1)
SRG Global Building (Southern) Pty Ltd(1)
SRG Global Building (Western) Pty Ltd(1)
SRG Global Civil Pty Ltd(1)
SRG Global Corporate (Australia) Pty Ltd(1)
SRG Global International Holdings Pty Ltd(1)
SRG Global IP Pty Ltd(1)
SRG Global Mining (Australia) Pty Ltd(1)
SRG Global Products Pty Ltd(1)
SRG Global Services (Australia) Pty Ltd(1)
SRG Global Services (Western) Pty Ltd(1)
SRG Global Group (NZ) Ltd
SRG Global (NZ) Ltd
SRG Global Asset Services (NZ) Ltd
SRG Global Remediation Services (NZ) Ltd
SRG Global Refractory Services (NZ) Ltd
SRG Global Asset Services (Taranaki) Ltd
Total Bridge Services Limited
Bugarrba PJV Pty Ltd
SRG Global Industrial Services Pty Ltd(1)
Red Ore Drill and Blast Pty Ltd
The following entities are in the process of deregistration
SRG Contractors Doha LLC(2)
SRG Contractors Muscat LLC(2)
SRG Hong Kong Limited
SRG International Holdings Pte. Ltd
Country of
Incorporation
Principal Activity
Australia
Corporate Services
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
UAE
UAE
USA
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
New Zealand
Australia
Australia
Australia
Qatar
Oman
Hong Kong
Singapore
Dormant
Construction
Construction
Construction
Construction
Construction
Construction
Dormant
Construction
Construction
Dormant
Asset Services
Dormant
Construction
Construction
Construction
Construction
Dormant
Trust
Corporate Services
Construction
Construction
Construction
Construction
Corporate Services
Dormant
Dormant
Mining Services
Construction
Asset Services
Asset Services
Asset Services
Asset Services
Asset Services
Asset Services
Asset Services
Asset Services
Asset Services
Asset Services
Construction
Dormant
Dormant
Dormant
Dormant
Dormant
Ownership Interest Held by
the Group
2022
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
49%
49%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
50%
49%
-
-
49%
49%
100%
100%
2021
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
0%
0%
100%
100%
100%
100%
49%
49%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
100%
50%
49%
100%
50%
49%
49%
100%
100%
(1) Controlled entities subject to ASIC Corporation (Wholly-owned Companies) Instrument 2016/785.
(2) In accordance with current foreign ownership restrictions in the United Arab Emirates (UAE), these entities have a fifty one percent participation
by UAE nationals. This participation incurs a fixed fee and has no right to the profits or liability for the debts of the entity.
(3) These entities were acquired during the period. Refer to further details of business acquisition in Note 26.
67
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 25. PARTICULARS RELATING TO CONTROLLED ENTITIES (CONTINUED)
Pursuant to ASIC Corporation (Wholly-owned Companies) Instrument 2016/785, relief has been granted to these controlled entities of
SRG Global Limited from the Corporations Act 2001 requirements for preparation, audit and publication of accounts. As a condition
of the ASIC Corporation (Wholly-owned Companies) Instrument 2016/785, SRG Global Limited and the controlled entities should
become parties to a Deed of Cross Guarantee, also known as “The Closed Group”. The effect of the deed is that SRG Global Limited has
guaranteed to pay any deficiency in the event of winding up of these controlled entities. The controlled entities have also given a similar
guarantee in the event that SRG Global Limited is wound up. The deed was made on 21 June 2019. A revocation deed was also made on
21 June 2019 for parties that were in the previous Deed of Cross Guarantee prior to the GCS and SRG merger. An assumption deed was
made on 1 April 2022 to join SRG Global Infrastructure Pty Ltd as a party to the Deed of Cross Guarantee.
The following are the consolidated totals for the Closed Group relieved under the deed:
Financial information in relation to:
Statement of profit or loss and other comprehensive income:
Profit before income tax
Income tax expense
Profit for the year
Other comprehensive income
Total comprehensive income for the year
Statement of financial position:
Current assets
Cash and cash equivalents
Trade and other receivables
Contract assets
Inventories
Other current assets
Derivative financial instrument asset
Total current assets
Non-current assets
Property, plant and equipment
Right of use assets
Intangible assets
Non-Current Contract Assets
Deferred tax assets
Related party loan receivables
Investments
Total non-current assets
Total assets
Current liabilities
Trade and other payables
Contract liabilities
Borrowings
Right of use liabilities
Current tax liabilities
Provisions
Total current liabilities
Non-current liabilities
Borrowings
Right of use liabilities
Provisions
Total non-current liabilities
Total liabilities
Net assets
Equity
Issued capital
Reserves
Retained earnings
Total equity
68
2022
$’000
2021
$’000
24,132
(6,186)
17,946
-
17,946
20,717
(6,755)
13,962
-
13,962
50,452
89,044
58,122
18,042
2,693
2,410
220,763
97,402
15,327
86,599
1,557
16,459
8,352
44,699
270,395
491,158
118,081
32,422
13,822
6,719
61
30,501
201,606
24,670
9,811
4,721
39,202
240,808
250,350
218,096
9,195
23,059
250,350
37,468
73,004
52,782
14,003
2,624
342
180,223
73,752
17,720
87,716
1,869
27,337
18,639
36,658
263,691
443,914
98,891
18,378
15,189
7,289
125
24,168
164,040
18,348
11,407
7,147
36,902
200,942
242,972
218,096
8,617
16,259
242,972
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 25. PARTICULARS RELATING TO CONTROLLED ENTITIES (CONTINUED)
(b) Joint operations
The Company’s subsidiary, TBS Farnsworth, has a 50% share of Total Bridge Services, a joint operation with WSP New
Zealand Ltd and Fulton Hogan Ltd. The principal activity of which is maintaining the Auckland Harbour Bridge.
The Company’s subsidiary, SRG Global Civil Pty Ltd, has a 50% share of an unincorporated joint operation with Georgiou
Group Pty Ltd. The principal activity of which is upgrading the New England Highway - Bolivia Hill Upgrade in New South
Wales.
The Company’s subsidiary, SRG Global Civil Pty Ltd, has a 50% share of an unincorporated joint operation with WBHO
Infrastructure Pty Ltd. The principal activity of which is constructing a grade-separated interchange at Wanneroo Road
and Ocean Reef Road. The joint operation became 100% owned by the company following its acquisition of WBHO
Infrastructure on 31 March 2022.
The Company’s subsidiary, SRG Global Integrated Services Pty Ltd, has a 49% share of Bugarrba PJV Pty Ltd, a joint
operation with Walganbung Services Group Pty Ltd. The principal activity of which is for the provision of asset services on
the land and for the benefit of the Njamal Traditional Owners.
(c) Joint ventures
Set out below are the joint ventures of the Group as at 30 June 2022 which, in the opinion of the Directors, are material to
the Group.
Traylor SRG, LLC(a)
USA
50% Equity Method
Place of
business
% of ownership
interest
Measurement
method
Carrying
amount
2022
$’000
130
Carrying
amount
2021
$’000
121
(a) Incorporated Joint Venture in USA.
NOTE 26. BUSINESS COMBINATION
On 14 March 2022, SRG Global Limited (‘SRG Global’ or ‘the Company’) signed a Sales Implementation Deed (‘SID’) to acquire
WBHO Infrastructure’s Western Australia business out of Voluntary Administration for $15.1 million. The acquisition was
structured by Deed of Company Arrangement (‘DOCA’) and it was approved at the second meeting of creditors of WBHO
Infrastructure Pty Ltd (now SRG Global Infrastructure Pty Ltd) on 30 March 2022. The acquisition was completed on 31 March
2022 with the Company acquiring 100% of voting equity interests. There were no contingent considerations arising from the
acquisition. As the acquisition was structured by DOCA, calculations of the Group revenue and Group profit had the acquisition
been completed on the first day of the financial year could not be performed reliably.
Details of the purchase consideration and the fair value of net assets acquired are as follows:
Assets
Inventories
Other current assets
Property, plant and equipment
Total assets
Liabilities
Trade and other payables
Provisions
Total liabilities
Net assets acquired
Goodwill arising on acquisition
Total purchase consideration - cash
Fair Value
$’000
158
32
20,114
20,304
1,460
3,702
5,162
15,142
-
15,142
Estimates and judgments were made in determining the fair value of property, plant and equipment.
From the date of acquisition, the acquired business has contributed $24,160,000 of revenue and $1,213,000 of earnings before
interest, taxes, depreciation and amortisation (‘EBITDA’) of the Group.
Acquisition and integration-related costs of approximately $1,000,000 are included in administrative expenses in the
consolidated statement of profit or loss and in operating cash flows in the consolidated statement of cash flows.
69
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT
Notes to the Financial Statements (CONTINUED)
NOTE 27. RELATED PARTY INFORMATION
(a) Subsidiaries
Interest in subsidiaries are set out in Note 25.
(b) Key Management Personnel compensation
Key Management Personnel compensation is disclosed in Note 6.
In addition during the financial year, the following type of transactions have also been entered into with key management
personnel of the Group.
(c) Transactions with related parties
Purchases of goods and services from entities controlled by key management
personnel
2022
$
2021
$
75,449
39,824
(d) Outstanding balances arising from sales / purchases of goods and services with related parties as at reporting date
Current payables (purchases of goods and services)
2022
$
-
2021
$
6,884
In prior year, no provisions have been raised in relation to any outstanding balances, and no expense has been
recognised in respect of bad or doubtful debts due from related parties.
NOTE 28. EVENTS SUBSEQUENT TO REPORTING DATE
On 5 July 2022 the Group secured a five-year term contract with Iron Bridge Operations. Iron Bridge is an unincorporated
join venture between Fortescue Metals Group subsidiary FMG Iron Bridge and Formosa Steel IB. The Contract is a Master
Agreement for Maintenance and Shutdown Services to provide rope access and electrical maintenance requirements across
its new magnetite project in Western Australia. On 5 July 22, the Group also secured a maintenance contract with Visy
Industries Australia for the provision of specialist refractory installation, incorporating multiple skilled trades at their Adelaide
glass manufacturing facility. The combined value of the Iron Bridge and Visy Industries contracts is ~$100m.
On 19 July 2022 the Group secured engineering, maintenance and civil services contract with existing Tier 1 clients valued
at ~$80m. This includes a two-year civil services term contract with South32 at the Worsley Alumina operations in Western
Australia, a three-year marine remediation contract with Fremantle Ports at the Kwinana Bulk Jetty in Western Australia,
and an earthworks and civil services contract extension to BCI Minerals Limited at the Mardie Salt and Potash Project in
Western Australia.
On 26 July 2022 the Group secured a five-year term contract with Northern Star Resources Limited at its Kalgoorlie
Consolidated Gold Mine (“KCGM”) gold operations in Western Australia. The scope of works includes the provision of
geotechnical ground support, rock fall protection systems, depressurisation drilling and rope access services. Also on
26 July 2022, the Group secured a seven-year term contract with Meridian Energy Limited to maintain its hydro and wind
assets across New Zealand. The scope of works includes the provision of painting/coatings, rope access, engineering, general
asset maintenance and repair services. The Northern Star and Meridian Energy Limited contracts are valued at ~$90m.
On 23 August 2022 the Group announced a final, fully franked dividend of 1.5c per share. The record date for this dividend is
9 September 2022 with the payment to be made on 13 September 2022.
Other than the matters described above, no other matter or circumstance has arisen since 30 June 2022 that has significantly
affected, or may significantly affect the Group’s operations, the results of those operations, or the Group’s state of affairs in
future financial years.
70
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 29. SEGMENT RESULTS
Description of segments
Management has determined that strategic decision making is facilitated and enhanced by evaluation of operations on the
customer segments of Asset Maintenance, Mining Services and Engineering and Construction. For each of the strategic
operating segments, the Managing Director reviews internal management reports on a regular basis.
The Group is managed primarily on the basis of product category and service offerings as the diversification of the Group’s
operations have inherently different risk profiles and performance assessment criteria. Operating segments are therefore
determined on the same basis.
The following summary describes the operation in each of the Group’s reportable segments:
Asset Maintenance segment
Our operations in the Asset Maintenance segment consist of supplying integrated services to customers across the entire
asset life cycle. Services provided span multiple sectors including oil and gas, energy, major infrastructure, offshore,
mining, power generation, water treatment plants, commissioning, decommissioning, shutdowns, and civil works.
Contracts vary in length from short to long-term.
Mining Services segment
The Mining Services segment services mining clients and provides comprehensive ground solutions including production
drilling, ground and slope stabilisation, design engineering and monitoring services. Contracts vary in length from short
to long-term.
Engineering and Construction segment
Our operations in the Engineering and Construction segment consist of supplying integrated products and services to
customers involved in the construction of complex infrastructure. These typically include bridges, dams, office towers,
high rise apartments, shopping centres, hotels, car parks, recreational buildings, and hospitals. Contracts are typically
medium to long-term.
71
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 29. SEGMENT RESULTS (CONTINUED)
The Managing Director assesses the performance of the operating segments based on a measure of adjusted EBITDA. This
measurement excludes certain non-recurring expenditures which are of an isolated nature such as equity settled share-based
payments and corporate activities pertaining to the overall Group including the treasury function which manages the cash
and funding arrangements of the Group. During the financial year, no customer has contributed more than 10% of the total
revenue for the Group.
Segment information provided to the Managing Director for the year ended 30 June 2022 is as follows:
Segment revenues and results
30 June 2022
Construction revenue
Services revenue
Revenue from external customers
EBITDA
Depreciation
Amortisation
Finance costs
Equity accounted investment results
Asset
Maintenance
Mining
Services
Engineering and
Construction
$’000
$’000
$’000
Corporate
$’000
Total
$’000
-
214,842
214,842
25,161
(8,394)
(3,590)
(554)
-
-
315,396
114,003
114,003
23,918
-
315,396
22,845
(6,834)
(6,298)
-
(323)
-
-
(458)
(2)
-
-
-
(15,693)
(1,526)
(30)
(1,228)
-
315,396
328,845
644,241
56,231
(23,052)
(3,620)
(2,563)
(2)
Profit before income tax
12,623
16,761
16,087
(18,477)
26,994
-
186,944
186,944
22,028
(6,983)
(3,587)
(479)
-
10,979
-
291,741
90,856
90,856
20,029
-
291,741
18,943
(6,663)
(6,353)
-
(471)
-
(426)
(493)
(6)
-
-
-
(13,942)
(1,923)
-
(1,056)
-
12,895
11,665
(16,921)
(6,862)
20,132
291,741
277,800
569,541
47,058
(21,922)
(4,013)
(2,499)
(6)
18,618
(6,565)
12,053
Income tax expense
Profit after income tax
30 June 2021
Construction revenue
Services revenue
Revenue from external customers
EBITDA
Depreciation
Amortisation
Finance costs
Equity accounted investment results
Profit before income tax
Income tax expense
Profit after income tax
72
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 29. SEGMENT RESULTS (CONTINUED)
Segment assets and liabilities
30 June 2022
Segment assets
Segment liabilities
30 June 2021
Segment assets
Segment liabilities
Revenue from external customers
Asset
Maintenance Mining Services
Engineering and
Construction
$’000
$’000
$’000
Corporate
$’000
159,036
43,800
47,274
30,945
235,073
143,319
149,108
57,900
50,199
29,051
189,646
109,621
43,180
31,933
53,976
19,556
Total
$’000
484,563
249,997
442,929
216,128
Australia
International
Group
2022
$’000
596,601
2021
$’000
507,457
2022
$’000
47,640
2021
$’000
62,084
2022
$’000
644,241
2021
$’000
569,541
NOTE 30. SHARE-BASED PAYMENTS
The SRG Global Performance Rights Plan (the “Plan”) was approved by shareholders at the AGM held on 27 November 2018
and provides for the issue of performance rights to assist in the recruitment, retention, and motivation of eligible persons of
the Company. Under the Plan, the Board may issue eligible persons with performance rights to acquire shares in the future.
The vesting of all performance rights is subject to performance hurdles and service conditions being met. A 24-month escrow
period restricting the conversion of the performance rights to fully paid ordinary shares may be imposed at the discretion of
the board of directors. Vested performance rights expire on 30 June 2028.
On 5 November 2021, a total of 11,890,000 performance rights (convertible into one ordinary share per right) were issued to
key management personnel and certain employees, subject to the terms of the Plan. Of the approved amount of performance
rights, 4,870,000 were deemed to be granted in the year as terms and conditions had been agreed. The remaining 7,020,000
performance rights will be deemed to be granted once the relevant terms and conditions of the rights have been agreed
between the company and the relevant parties. The performance rights are subject to the satisfaction of performance hurdles
which are based on achieving agreed profit targets and an increase in the earnings per share and shareholder return targets.
The performance rights are also subject to a continuous service requirement
The following share-based payment arrangements were issued during the 30 June 2022 financial period:
Performance rights series Number Grant date
Expiry date
Method of valuation Fair value at grant date (AUD)
Tranche 1e
Tranche 1f
Tranche 1g
Tranche 1h
Tranche 1i
Tranche 1j
Tranche 1k
Tranche 1l
830,000
05-Nov-21
30-Jun-28
Black-Scholes
830,000
05-Nov-21
30-Jun-28
Monte Carlo Simulation
1,605,000 05-Nov-21
30-Jun-28
Black-Scholes
1,605,000 05-Nov-21
30-Jun-28
Monte Carlo Simulation
1,767,500
1,767,500
1,742,500
1,742,500
N/A
N/A
N/A
N/A
30-Jun-28
30-Jun-28
30-Jun-28
30-Jun-28
N/A
N/A
N/A
N/A
0.47
0.22
0.44
0.19
N/A
N/A
N/A
N/A
The valuation was performed using the Black-Scholes model for Rights that are subject to non-market conditions and for
Rights that are subject to an Absolute Shareholder Return (ASR), the Monte Carlo Simulation was utilised:
Input
Dividend yield (%)
Expected volatility (%)
Risk free interest rate (%)
Value
4.9% - 5.39%
45%
0.2% - 0.45%
Expected life of performance rights (years)
0.65 – 1.65 years
Rights exercise price (A$)
Discount for lack of marketability (%)
-
5.88%
73
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT
Notes to the Financial Statements (CONTINUED)
NOTE 30. SHARE-BASED PAYMENTS (CONTINUED)
In addition to the above, 1,450,000 performance rights which were previously issued on 26 November 2019, were granted
during the 30 June 2022 financial period:
Performance rights series
Tranche 1c
Number Grant date
01-July-21
725,000
Expiry date
30-Jun-25
Method of valuation Fair value at grant date (AUD)
0.45
Black-Scholes
Tranche 1d
725,000
01-July-21
30-Jun-25 Monte Carlo Simulation
0.21
Input
Dividend yield (%)
Expected volatility (%)
Risk free interest rate (%)
Expected life of performance rights (years)
Rights exercise price (A$)
Discount for lack of marketability (%)
Value
5%
45%
0.01%
1 year
-
6%
Furthermore, the following share-based payment arrangements were in existence during the current year:
Performance rights series
Number Grant date
Expiry date
Method of valuation Fair value at grant date (AUD)
Tranche 1a
Tranche 1b
Tranche 2c
725,000
26-Nov-19
30-Jun-25
Black-Scholes
725,000
26-Nov-19
30-Jun-25 Monte Carlo Simulation
700,000
26-Nov-19
Lapsed in
current year
Black-Scholes
Tranche 2d
700,000
26-Nov-19
30-Jun-25
Black-Scholes
No performance rights were exercised during the year (none in prior year).
NOTE 31. FINANCING ARRANGEMENTS
The consolidated Group has access to the following lines of credit:
Total facilities available
Bank overdraft (1)
Hire purchase facility (1)
Other facilities (1)
Bank guarantee facility (1)
Surety bond facility(2)
Facilities used at the end of the reporting period:
Bank overdrafts (1)
Hire purchase facility (1)
Other facilities (1)
Bank guarantee facility (1)
Surety bond facility (2)
Facilities not used at the end of the reporting period:
Bank overdrafts (1)
Hire purchase facility (1)
Other facilities (1)
Bank guarantee facilities (1)
Surety bond facility(2)
74
0.325
0.048
0.325
0.309
2022
$’000
2021
$’000
1,500
60,000
45,750
20,000
130,000
257,250
-
33,525
5,357
11,778
72,267
122,927
1,500
26,475
40,393
8,222
57,733
134,323
1,500
50,000
52,158
20,000
125,663
249,321
-
22,329
11,945
10,717
71,135
116,126
1,500
27,671
40,213
9,283
54,528
133,195
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 31. FINANCING ARRANGEMENTS (CONTINUED)
(1) Multi-option facility
As at reporting date, the Group has used $50,660,000 of its multi-option facility limit of $127,250,000. The multi-option facility is
a comprehensive borrowing facility which includes bank overdraft, hire purchase, letter of credit, corporate credit card and bank
guarantees.
(2) Surety bonds
The Group has a $130,000,000 insurance bond facility with various parties (30 June 2021: $125,663,000). This facility has been
utilised to provide security in connection with certain projects. The amount of insurance bonds issued under this facility as at
30 June 2022 is $72,267,000 (30 June 2021: $71,135,000).
NOTE 32. FINANCIAL INSTRUMENTS
Significant accounting and risk management policies
Details of the significant accounting policies and methods adopted, including the criteria for recognition, the basis of
measurement and the basis on which income and expenses are recognised, in respect of each class of financial asset and
financial liability are disclosed in Note 1 to the financial statements.
Treasury risk management
The Group’s activities expose it to a variety of financial risk, market risk (including currency risk, interest rate risk and other
price risk), credit risk and liquidity risk. Management, consisting of Senior Executives of the Group meet on a regular basis to
analyse risk exposure, and to evaluate treasury management strategies in the context of the most recent economic conditions
and forecasts. Risk management is carried out by the Board of Directors, who evaluate and agree upon risk management
policies and objectives.
The Group uses different methods to measure different types of risk to which it is exposed. These methods include sensitivity
analysis in the case of interest rate and aging analysis for credit risk.
(a) Liquidity risk
Liquidity risk is the risk that the Group will not be able to meet its financial obligations as they fall due. The Group’s
manages liquidity risk by maintaining adequate reserves, banking facilities and by continuously monitoring forecast and
actual cash flows and matching the maturity profiles of financial assets and liabilities. The Group’s financial arrangements
are disclosed in Note 31. Maturity of the Group’s financial liabilities are as follows:
1 year or less
1 - 2 years
2 - 5 years
$’000
$’000
$’000
More than
5 years
$’000
Total cash
flow
$’000
Carrying
amount
$’000
2022
Borrowings
Hire purchase liabilities
Lease liabilities
Trade and other payables
2021
Borrowings
Hire purchase liabilities
Lease liabilities
Trade and other payables
3,000
11,387
7,896
79,491
2,333
10,152
6,995
-
-
14,898
5,009
-
101,774
19,480
19,907
4,406
9,238
8,513
63,231
5,424
8,493
9,174
-
-
8,351
4,956
-
85,388
23,091
13,307
-
-
-
-
-
-
-
-
-
-
5,333
36,437
19,900
79,491
141,161
9,830
26,082
22,643
63,231
5,250
33,525
18,514
79,491
136,780
9,656
24,331
21,349
63,231
121,786
118,567
75
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT
Notes to the Financial Statements (CONTINUED)
NOTE 32. FINANCIAL INSTRUMENTS (CONTINUED)
(b) Foreign exchange risk
Foreign currency risk is the risk that the value of a financial commitment, a recognised asset or liability will fluctuate
due to changes in foreign currency rates. The Group is exposed to foreign exchange risk in abroad projects executed
by local subsidiaries. In managing exposure to foreign exchange risk, the group has entered into a number of forward
foreign exchange contracts. At 30 June 2022, the fair value of these contracts was $2,410,000 (2021: $342,000).
There is a natural hedge in place to the extent project costs are materially of the same foreign currency.
The major exchange rates relevant to the Group are as follows:
Average year ended
30/06/2022
As at
30/06/2022
Average year ended
30/06/2021
As at
30/06/2021
AUD$ / USD$
AUD$ / AED$
AUD$ / CNH$
AUD$ / NZD$
0.73
2.66
4.69
1.07
0.69
2.53
4.62
1.11
0.75
2.74
4.94
1.07
0.75
2.76
4.85
1.07
The Group’s exposure to material foreign exchange risk at reporting date was as follows, based on carrying amounts in
AUD$’000:
2022
Cash and cash equivalents
Trade and other receivables
Trade and other payables
2021
Cash and cash equivalents
Trade and other receivables
Trade and other payables
USD$
$’000
46
1,189
(95)
1,140
1,887
1,541
(501)
2,927
AED$
$’000
3,179
1,369
(52)
4,496
2,289
2,953
(799)
4,443
CNH$
$’000
-
-
(22,241)
(22,241)
-
-
(9,200)
(9,200)
NZD$
$’000
4,474
6,275
(4,334)
6,415
6,447
9,003
(6,240)
9,210
Total
$’000
7,699
8,833
(26,722)
(10,190)
10,623
13,497
(16,740)
7,380
Based on the carrying amounts exposed to foreign currencies, had the Australian dollar weakened by 5%/strengthened
by 5% against these foreign currencies with all other variables held constant, the Group’s profit or loss would have been
$450,428 higher/$497,842 lower (2021: $359,180 lower/$396,989 higher). The percentage change is the expected
overall volatility of the significant currencies, which is based on management’s assessment of reasonable possible
fluctuations taking into consideration movements over the last financial year and the spot rate at each reporting date.
.
76
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Notes to the Financial Statements (CONTINUED)
NOTE 32. FINANCIAL INSTRUMENTS (CONTINUED)
(c)
Interest rate risk
The Group’s exposure to the risk of changes in market interest rates relates primarily to the Group’s long-term debt
obligations that have floating interest rates. The Group has a mixture of variable and fixed interest rate financial
instruments to manage its interest cost.
The Group’s exposure to interest rate risk, effective weighted average interest rate, contractual settlement terms of a
fixed period of maturity as well as management’s expectation of settlement period for financial instruments are set
out below.
Weighted
Average
Interest
Rate
Floating
Interest
Rate
Fixed Interest Rate Maturing Within
1 year
or less
Over 1 year
to 5 years
More than
5 years
Non-interest
bearing
%
$’000
$’000
$’000
$’000
$’000
Total
$’000
2022
Financial assets
Cash and cash equivalents
0.82%
59,302
Trade and other receivables
Derivative
-
-
-
-
59,302
Financial liabilities
Trade and other payables
-
-
-
-
-
-
-
-
-
-
-
-
Borrowings
Lease liabilities
2021
Financial assets
3.67%
3.16%
(8,109)
(10,073)
(20,593)
-
(7,654)
(10,860)
(8,109)
(17,727)
(31,453)
Cash and cash equivalents
0.10%
46,236
Trade and other receivables
Derivative
Financial liabilities
Trade and other payables
Borrowings
Lease liabilities
-
-
-
-
-
46,236
-
-
-
-
-
-
-
-
-
-
-
3.32%
3.15%
(10,252)
(10,345)
(13,390)
-
(8,253)
(13,096)
(10,252)
(18,598)
(26,486)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
59,302
97,876
97,876
2,410
2,410
100,286
159,588
(79,491)
(79,491)
-
-
(38,775)
(18,514)
(79,491)
(136,780)
-
46,236
86,501
86,501
342
342
86,843
133,079
(63,231)
(63,231)
-
-
(33,987)
(21,349)
(63,231)
(118,567)
As at 30 June 2022, a sensitivity analysis has not been disclosed in relation to the floating interest deposits for the Group, as
the net results of a reasonable possible change in interest rates have been determined to be immaterial to the statement of
profit or loss and other comprehensive income.
77
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT
Notes to the Financial Statements (CONTINUED)
NOTE 32. FINANCIAL INSTRUMENTS (CONTINUED)
(d) Credit risk
Credit risk is the risk of financial loss to the Group if a customer of counterparty to a financial instrument fails to meet its
contractual obligations.
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, foreign exchange transactions and other financial
instruments.
As a result of the diverse range of services and geographical spread covered by the Group, the Group does not have
a concentration of credit risk to any one customer. Whilst the Group does have a broad risk to lead contractors in the
construction industry generally, this is managed on a ‘customer by customer’ basis, taking into account ratings from
credit agencies, trade references and payment history where there is pre-existing relationship with that entity. The
compliance with credit limits by customers is regularly monitored by management. The credit risk on liquid funds and
derivative financial instruments is limited because the counterparties are banks with high credit ratings assigned by
international credit-rating agencies.
The Group has established a loss allowance of trade receivables at an amount equal to lifetime expected credit losses
(ECL). The ECLs on trade receivables are estimated using a provision matrix based on historical credit loss experience and
any available forward-looking estimates available as at reporting date.
Set out below is the information about the credit risk exposure at 30 June 2022 on the Group’s trade receivables for
which lifetime expected credit losses are recognised:
30 June 2022
Trade and other receivables and
contract assets ($,000)
ECL allowance
30 June 2021
Trade and other receivables and
contract assets ($,000)
ECL allowance
Current
31-60 Days
61-90 Days
90 Days+
Total
Aging
140,459
(75)
16,140
(593)
3,458
-
7,007
(6,207)
167,064
(6,875)
118,449
(31)
19,020
(90)
4,124
(352)
7,971
(4,995)
149,564
(5,468)
The reconciliation in ECL allowance is as follows:
Movement in ECL allowance provided for receivables
Opening loss allowance - calculated under AASB 9
Net movement of expected credit loss
Receivables written off during the period as uncollectable
Closing balance as at 30 June 2022
2022
$’000
2021
$’000
(5,468)
(1,407)
-
(9,195)
1,893
1,834
(6,875)
(5,468)
78
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT
Notes to the Financial Statements (CONTINUED)
NOTE 32. FINANCIAL INSTRUMENTS (CONTINUED)
(e) Fair value
Net fair values of financial assets and liabilities are determined by the Group on the following basis:
Monetary financial assets and financial liabilities not readily traded in an organised financial market are determined by
valuing them at the present value of contractual future cash flows on amounts due from customers (reduced for expected
credit losses) or due to suppliers. Cash flows are discounted using standard valuation techniques at the applicable market
yield having regard to the timing of cash flows. With the exception of the fair value differences arising on the Group’s
fixed interest rate financial liabilities, as discussed in the analysis of interest rate risk above, the carrying amounts of all
financial instruments disclosed above are at their approximate net fair values.
AASB 9 Financial Instruments: Disclosures requires disclosure of fair value measurements by level of the following fair
value measurement hierarchy:
(i)
(ii)
quoted prices (unadjusted) in active markets for identical assets or liabilities (Level 1)
inputs other than quoted prices included within Level 1 that are observable for the asset or liability, either directly
(as prices) or indirectly (derived from prices) (Level 2)
(iii)
inputs for the asset or liability that are not based on observable market data (unobservable inputs) (Level 3)
The following table presents the Group’s financial assets and liabilities measured and recognised at fair value.
Level 1
$’000
Level 2
$’000
Level 3
$’000
Total
$’000
2022
Financial assets
Derivative
Financial liabilities
Provisions
2021
Financial assets
Derivative
Financial liabilities
Provisions
2,410
-
2,410
342
-
342
-
-
-
-
-
-
2,410
(418)
(418)
(418)
1,992
-
342
(2,235)
(2,235)
(2,235)
(1,893)
There were no transfers between levels during the period. The Group’s policy is to recognise transfers into and out of fair
value hierarchy levels as at the end of the reporting period.
79
FOR THE YEAR ENDED 30 JUNE 2022SRG GLOBAL 2022 ANNUAL REPORT Shareholder Information
Additional ASX Information
This additional ASX information is required to be included in this Annual Report by ASX under Listing Rule 4.10. This information is
not provided elsewhere in this report and is applicable as at 19 August 2022.
Ordinary share capital
SRG Global Limited’s issued share capital is comprised of 445,796,415 fully paid ordinary shares, held by 3,466 individual
shareholders. At any meeting of shareholders fully paid ordinary shares carry one vote per share and the rights to dividends.
Distribution of shareholders and their holdings
Number of holders
Ordinary shares
Size of holding
1 to
1,000
356
1,001, to
5,000
900
5,001 to
10,000
517
10,001 to
100,000
1,387
100,001 to
(MAX)
306
Total
3,466
105,982
2,538,857
4,069,428
47,491,176
391,590,972
445,796,415
There were 277 holders with less than a marketable parcel of fully paid ordinary shares.
Substantial holders
The number of shares held by substantial holders, as disclosed in substantial shareholding notices provided to the Company are set
out below:
Shareholder
Mitsubishi UFG Financial Group, Inc
Perennial Value Management Limited
Ryder Capital Limited
Twenty largest shareholders
CITICORP NOMINEES PTY LIMITED
J P MORGAN NOMINEES AUSTRALIA PTY LIMITED
NATIONAL NOMINEES LIMITED
HSBC CUSTODY NOMINEES (AUSTRALIA) LIMITED
SANDHURST TRUSTEES LTD
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