More annual reports from Southcross Energy Partners LP:
2023 ReportANNUAL REPORT
2023
Southern Cross Electrical Engineering Limited
ABN: 92 009 307 046
ASX: SXE
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
01
02
03
04
06
10
12
16
22
29
80
82
CO N T E N TS PAG E
2023 Highlights
Chairman’s Report
About SCEE Group
Our Businesses
Our Markets
Sustainability
Managing Director’s Review
Directors’ Report
Remuneration Report
Financial Statements
ASX Additional Information
Corporate Directory
2023 H I G H L I G H TS
Record Financial Results
Revenue
$464.7m
Record EBITDA
$38.2m
FY23
FY22
FY21
Record NPAT
$20.1m
FY23
FY22
FY21
Record Cash
$77.7m
FY23
FY22
FY21
$464.7m
$553.3m
$370.2m
FY23
FY22
FY21
$38.2m
$35.3m
$29.6m
Fully Franked Dividends
5.0cps
$20.1m
$15.3m
$13.8m
FY23
FY22
FY21
5.0cps
5.0cps
4.0cps
Record Order Book
$610m
$77.7m
$53.1m
$51.0m
FY23
FY22
FY21
$610m
$565m
$430m
Operational Highlights
Lost Time Injury (“LTI”) free
across the group in FY23
Workforce over 1,400 employees
and growing again
Electrification and decarbonisation
exposures offer huge opportunities
Recurring revenues
now over 35% of activity
Record profits
for all three acquired Trivantage
businesses
Actively exploring acquisition
targets
offering further diversification
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
1
SCEE GROUP – ANNUAL REPORT 2023
C H A I R M A N ’S R E P O RT
It gives me great pleasure to report that the SCEE Group has delivered record profitability in 2023 with
EBITDA of $38.2m, EBIT of $29.6m and NPAT of $20.1m.
We have also ended the year with a record cash
balance of $77.7m and a record order book of
$610m. Our healthy balance sheet and significant
work in hand puts us in a very strong position as
we enter what I anticipate will be a period of great
opportunity for our group.
The electrification and decarbonisation of the
economy is gathering pace and will continue
to do so as deadlines for achieving net zero
commitments approach and the demand for
renewable electricity increases significantly. As a
leading national electrical contractor we expect
to play a significant role in delivering a wide range
of decarbonisation initiatives across our markets
as well as supporting our clients in meeting
the demand for the commodities required for
decarbonisation.
It has been pleasing to see recurring revenues
increasing as a percentage of revenue in recent
years to now make up over 35% of our activity.
This has been given increased momentum by
the 2021 acquisition of the Trivantage businesses
which continue to outperform expectations, each
delivering record results in the current year.
The success of Trivantage, together with our
previous acquisitions of Heyday and Datatel, has
not only strengthened and diversified our group,
but also demonstrated our ability to deliver value
accretive acquisitions. We are actively exploring
further acquisition targets offering increased
geographic diversification and new capabilities.
The Board has resolved to pay a final fully franked
dividend of 4.0 cents per share and paid a fully
franked interim dividend of 1.0 cents per share in
April. Our fully franked full year dividend yield of
7.5% continues our track record of delivering strong
returns to shareholders.
On behalf of the Board I would like to close by
acknowledging the hard work and commitment of
all the teams within the SCEE Group without whom
these record results would not have been possible.
Derek Parkin
Chairman
29 August 2023
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
2
SCEE GROUP – ANNUAL REPORT 2023
A B O U T S C E E G R O U P
Southern Cross Electrical Engineering Limited (‘SCEE Group’) was founded
in 1978 and listed in 2007 (ASX:SXE).
Over time we have grown to be a leading national
provider of specialised electrical, instrumentation,
maintenance and communication services and are
diversified across three broad sectors of resources,
commercial and infrastructure. Our diversification
has been supported by a successful track record
of acquiring value accretive businesses: Datatel
in 2016, Heyday in 2017 and the Trivantage Group
(S.J. Electric, SEME Solutions and Trivantage
Manufacturing) in 2020. We are positioned to
service the electrification and decarbonisation
initiatives shaping our markets.
Recurring revenue and earnings
growth
Diversified across markets and
operations
Long-standing blue-chip client
base
Positioned for Electrification and
decarbonisation themes
Track record of successful
acquisitions
Financial strength and dividend
yield
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
3
SCEE GROUP – ANNUAL REPORT 2023
A B O U T S C E E G R O U P
OUR BUSINESSES
SCEE Electrical is the original operating business
of the SCEE Group, historically focussed on
resources and industrial projects, but more recently
diversified into transport, infrastructure, defence,
utilities and renewables.
To find out more visit www.sceeelectrical.com.au
Datatel is a Perth based electrical contractor and
communications specialist, delivering high-end
commercial fit outs, and providing services to the
office, retail, education, health, government and
transport sectors.
To find out more visit www.datatel.com.au
Heyday is a NSW and ACT-based electrical
contractor undertaking commercial building
construction and fit-outs, and servicing the office,
retail, hotel, high-rise residential, education, health,
transport, industrial and data centre sectors.
To find out more visit www.heyday5.com.au
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
4
SCEE GROUP – ANNUAL REPORT 2023
A B O U T S C E E G R O U P
OUR BUSINESSES
S.J. Electric is a national provider of electrical and
maintenance services to supermarkets, and the
retail, commercial and water sectors.
To find out more visit www.sjelectric.com.au
SEME Solutions provides electronic and
physical security services to the resources, law-
enforcement, custodial, industrial, commercial
building and health sectors.
To find out more visit www.seme.com.au
Trivantage Manufacturing is a leading
manufacturer of packaged electrical solutions
including premium quality switchboards, kiosk
substations and switchrooms, covering low to
high voltage capabilities across the infrastructure,
resource and commercial sectors.
To find out more visit www.trivantage.com.au
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
5
SCEE GROUP – ANNUAL REPORT 2023
A B O U T S C E E G R O U P
OUR MARKETS
COMMERCIAL
We recognise that commercial developments are
often bespoke and require significant expertise in
optimising design and construction. In addition,
clients often require buildings and precincts remain
operational during construction. We work closely
with our clients and the public to ensure seamless
operations continue while the project is delivered
safely.
We remain abreast of the latest technologies
and industry standards and pride ourselves on
developing and installing smart and energy
efficient solutions.
To find out more visit
www.scee.com.au/markets/commercial
SCEE Group has the expertise in designing,
supplying, installing and maintaining a wide
range of commercial building electrical and utility
services.
These include a comprehensive range of
electrical infrastructure, building controls,
energy management, security, communications,
networking and structured cabling systems.
We work closely with leading property developers
and builders on new builds and with interior design
and other specialists on fit-outs, refurbishments
and upgrades.
Our focus in the commercial property sector
includes:
• Offices
• Shopping centres, supermarkets and retail
• Multi-storey residential developments
• Hotels l Sporting, recreation and leisure facilities
• Warehouses
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
6
SCEE GROUP – ANNUAL REPORT 2023
A B O U T S C E E G R O U P
OUR MARKETS
RESOURCES
SCEE Group provides electrical, instrumentation
and communication services to the mining and oil
and gas sectors.
In the mining sector, we have broad exposure to
many commodities including iron ore, gold, lithium,
zinc, copper and nickel.
We have extensive experience in the delivery of
electrical projects at some of Australia’s largest
mining and mineral processing sites.
Our capability covers the entire construction
life-cycle from establishing first power sources
at greenfield sites, through to constructing and
commissioning major ore handling, processing and
transport infrastructure and decommissioning of
operations.
We also specialise in designing and installing
electrical, communications and security services to
operational centres, mine and camp utilities and
administrative buildings, and telecommunication
services that support the control and
management of mine and transport operations.
Under various framework arrangements we have
teams of electricians at clients’ facilities supporting
and maintain their operations.
In the oil and gas sector we offer solutions for
LNG upstream and downstream facilities, and for
petrochemical refineries.
To find out more visit
www.scee.com.au/markets/resources
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
7
SCEE GROUP – ANNUAL REPORT 2023
A B O U T S C E E G R O U P
OUR MARKETS
INFRASTRUCTURE
SCEE Group recognises the important role that
the Federal, State and Local governments play
in developing and providing infrastructure to
enhance and protect the lives of all Australians.
We work alongside some of Australia’s leading
contractors in the construction and maintenance
of publicly funded infrastructure and assets in:
• Transport including road, rail, air and port
facilities
• Defence facilities and installations
• Social infrastructure including hospitals, medical
• Education including universities, colleges and
schools
• Government facilities
• Telecommunications and datacentres
• Energy, renewables and utilities
We are also members of various works panels in
these sectors.
Our flexibility and adaptive commercial approach
enables us to competitively bid and deliver these
critical works.
clinics, aged care and prisons
To find out more visit
www.scee.com.au/markets/infrastructure
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
8
SCEE GROUP – ANNUAL REPORT 2023
A B O U T S C E E G R O U P
OUR MARKETS
ELECTRIFICATION AND DECARBONISATION
SCEE Group is well positioned to leverage
opportunities across the electrification and
decarbonisation chain including:
Supporting the decarbonisation of resources
operations such as battery, solar and wind projects
for multiple mining companies;
Assisting meeting the demand for commodities
required for global decarbonisation including
lithium, copper, nickel, hydrogen developments;
and
Offering our services across a diverse and growing
range of electrification and decarbonisation
initiatives including solar farms, recycling plants,
refrigeration power efficiencies, green buildings
design optimisation and electric vehicle charging
systems.
To find out more visit
www.scee.com.au/markets/decarbonisation
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
9
SCEE GROUP – ANNUAL REPORT 2023
A B O U T S C E E G R O U P
SUSTAINABILITY
SCEE Group is dedicated to achieving sustainable and profitable growth while upholding our
environmental, social, and community responsibilities. Our approach to sustainability encompasses:
ENVIRONMENT
We seek to promote best environmental practices
within our areas of operation through our policies
and procedures. Highlights include:
• Environmental Management Systems accredited
to ISO 14001
• We continue to voluntarily monitor our GHG
emissions and maintain a low emissions base.
Our FY23 operational emissions (Scope 1 and 2)
totalled 3,288tCO2-e
• Contributing to the decarbonisation of Australia
through our delivery of renewables, recycling
and energy efficiency projects
HE ALTH AND SAFETY
We consider the wellbeing of our people to be
of paramount importance and are committed to
providing a workplace that achieves zero harm.
Highlights include:
• Health and Safety Management Systems are
accredited to ISO 45001
• 5 Star Commitment safety approach addressing
the highest critical risk areas
• Lost Time Injury (LTI) free across the Group’s
operations in FY23
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
10
SCEE GROUP – ANNUAL REPORT 2023
A B O U T S C E E G R O U P
SUSTAINABILITY
PEOPLE AND COMMUNITY
We are committed to providing a safe workplace
for our people and investing in their growth. We
engage with the communities in which we operate
seeking to create a positive legacy through
maximising local employment opportunities.
Highlights include:
• Dedicated Health and Wellbeing Advisor and
access to an Employee Assistance Provider
• Regular training and development opportunities
• Diversity Policy encouraging and supporting
diversity in our workforce
• Indigenous Employment Policy facilitating
sustainable employment opportunities
• Human Rights Policy and Modern Slavery
Statement
CORPORATE GOVERNANCE
The SCEE Group has a Board-endorsed Corporate
Governance Framework aimed at ensuring the
business is managed effectively and ethically and
that risks are appropriately identified, monitored
and addressed. Highlights include:
• Experienced and appropriately structured
Board and Committees
• Code of Conduct governing our dealings with
stakeholders
• Anti-Bribery and Corruption and Whistleblower
Policies
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
11
SCEE GROUP – ANNUAL REPORT 2023
M A N AG I N G D I R E CTO R’S R E V I E W
In 2023 SCEE Group has delivered record profitability and enters the 2024 financial year with a record
cash balance and record order book.
Results for the year ended 30 June 2023
• Commercial – revenue for the year was
Revenue for the year of $464.7m was down 16%
on the prior year’s record revenue. Major resources
projects at Rio Tinto Gudai-Darri and MARBL
JV Kemerton Lithium Plant were successfully
completed in the first half and anticipated new
accommodation village security awards were either
reduced or received later than anticipated.
Recurring revenues from services, maintenance and
framework agreements accounted for over 35% of
current year activity.
Revenue contribution by sector was as follows:
• Resources – revenue for the year was $168.8m,
compared to $282.5m in the prior year due to the
Gudai-Darri and Kemerton projects completing
in the first half. The BHP Villages Security project,
which utilised capabilities across the group,
was also completed during the year. The Juwi
Northern Goldfields Solar, Rio Tinto Tom Price
Battery Storage and BHP Port Debottlenecking
projects are ongoing and progressing well.
General works continued for Rio Tinto and BHP
and under framework agreements at the Sino
Iron and Newmont Boddington mine sites.
$154.9m, compared to $166.9m in the prior
year. Construction activity in NSW continued
to experience some weather impacts in the
early part of the year but is now increasing. Key
contributions in the year came from Trivantage’s
national supermarket services business and
the Sandstone Education Building project and
the Commonwealth Bank Place Sydney North
Building fitout in Sydney.
• Infrastructure – revenue for the period was
$141.0m, up from $103.9m in the prior year. Activity
on the Multiplex Western Sydney International
Airport project is ramping up with considerable
scope growth already received. Other key
projects in the sector included the Sydney Metro
Pitt Street Station and University of Western
Sydney Bankstown City Campus projects in
NSW, the Ergon Energy Queensland Service
Agreement and the supply of the Westgate
Tunnel switchboards in Victoria.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
12
SCEE GROUP – ANNUAL REPORT 2023
M A N AG I N G D I R E CTO R’S R E V I E W
Gross profit for the year of $76.3m was up on the
prior year gross profit of $72.5m. Gross margins
increased from 13.1% in FY22 to 16.4% in the current
year due to solid project performances and
successful close-outs of major resources projects.
Overheads were $39.8m compared to $38.3m in
the prior year.
EBITDA for the year of $38.2m was up 8.1% and EBIT
of $29.6m was up 10.7% on the prior year.
Net profit after tax of $20.1m was up 31.6% on
the prior year NPAT of $15.3m and included $2.1m
amortisation of intangibles relating to the FY21
acquisition of Trivantage (FY22 amortisation:
$2.2m).
The Board has declared a fully franked final
dividend of 4.0 cents per share to be paid on 11
October 2023. A fully franked 1.0 cent per share
interim dividend was paid in April 2023. The fully
franked dividend yield for the year was 7.5% based
on the share price at 30 June 2023.
The year end cash balance of $77.7m was a record
for the group and represented a 46.3% increase
on the prior year. The increase was driven by
the record profits and return of working capital
from completed major resources projects and
was achieved despite total dividend payments
of $12.7m during the year (net of dividend
reinvestment plan participation) and funding the
penultimate acquisition payment for Trivantage of
$5.7m in the period. The group remains debt free.
The three Trivantage businesses SJ Electric, SEME
Solutions and Trivantage Manufacturing each
delivered record profits in the current year which
resulted in the acquisition earn-out targets being
achieved in full. The final deferred consideration
payment of $7.3m will be made in September 2023.
Health, Safety and Environment
Delivering our work safely is of paramount
importance and we are proud of our strong safety
culture. We were Lost Time Injury (“LTI”) free across
the group’s operations in FY23 and our SCEE
Electrical business is now over 19 years LTI free.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
13
SCEE GROUP – ANNUAL REPORT 2023
M A N AG I N G D I R E CTO R’S R E V I E W
We continue to voluntarily monitor our greenhouse
gas emissions and maintain a low emissions
base. In FY23, our operational emissions (Scope
1 and 2) totalled 3,288tCO2-e, significantly below
the National Greenhouse and Energy Reporting
(“NGER”) scheme mandatory reporting threshold of
50,000tCO2-e.
Outlook
The group enters 2024 with a record order book
of $610m, up 8% on the prior year. Notable awards
in the year included the Atlassian HQ Building
electrical services contract, Shoalhaven Hospital
redevelopment project and multiple data centres
in NSW. We have recently secured a number of
accommodation village security upgrade projects
in Queensland which will again utilise capabilities
from across the group. We continue to secure
regular works under our key framework agreements
including various supermarket roll-outs.
The infrastructure sector continues to be the
largest component of the order book. The
Western Sydney International Airport project
will run for several years and has already seen
significant scope increases with further growth
anticipated. The Sydney Metro Pitt Street Station
project is ongoing with further opportunities on
the Sydney Metro programme. The Shoalhaven
Hospital redevelopment project will ramp up
during the year. We continue to see a high
volume of data centre developments in NSW
and we are positioning in the medium term for
the commencement of spending ahead of the
Brisbane Olympics. The broader infrastructure
pipeline remains strong with record levels of
infrastructure spend sanctioned across Australia.
In the commercial sector activity in NSW has
picked up after being impacted by coronavirus
and weather in the prior year. The Atlassian HQ
Building electrical services contract was secured
during the year and the Sydney Central Precinct
Renewal Program and Technology Hub is expected
to generate multiple commercial opportunities
for Heyday in the coming years. For Trivantage,
activity levels in the sector are expected to remain
high with the major supermarkets continuing to
invest heavily in efficiencies, store renewals and
new store formats.
Activity in the resources sector is expected to
remain at lower levels in the first half before
increasing again as recent and anticipated
awards ramp up. A number of large construction
opportunities are emerging past FY24.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
14
SCEE GROUP – ANNUAL REPORT 2023
M A N AG I N G D I R E CTO R’S R E V I E W
The Trivantage Manufacturing business opened
a second switchboard manufacturing facility in
Victoria during the year in order to capitalise on
increasing demand for their products.
Tendering across the group’s sectors remains at
a high level with a strong opportunity pipeline
extending well beyond FY24.
The electrification and decarbonisation of the
Australian and global economies present the
group with opportunities across all the sectors
in which it operates. The group is exposed to
these opportunities through three avenues, being
supporting the decarbonisation of resources
operations, assisting in meeting the demand for
commodities required for decarbonisation, and
offering services across a diverse and growing
range of initiatives including green buildings, solar
farms, refrigeration power and electric vehicle
charging systems.
The group continues to monitor and manage
the broader economic environment. There have
been no material impacts on our operations from
inflationary cost pressures or labour market issues
to date.
In FY24 we are targeting revenue of around $500m
and similar EBITDA to FY23 with growth anticipated
in FY25 and beyond.
Strategy
SCEE Group primarily sees itself as an electrical
contractor diversified across the resources,
commercial and infrastructure markets.
Our growth strategy continues to be to deepen
our presence in those sectors and broaden our
geographic diversity through expanding our
core competencies and adding adjacent and
complementary capabilities, either organically or
by acquisition.
We have increasing exposure to service and
maintenance style work with recurring revenues
now over 35% of activity.
We are actively exploring acquisition targets
offering further geographic diversification and new
capabilities.
We are positioned to service the decarbonisation
and electrification initiatives shaping our markets.
Conclusion
I am delighted to have been able to report a
record-breaking year for the SCEE Group where
we achieved our highest ever profits, cash balance
and order book.
Moving into FY24 we have visibility of a strong
pipeline of work across our markets and expect
the electrification and decarbonisation of the
economy to present significant opportunity for all
of our businesses for many years.
I was pleased to see Trivantage continue to
exceed our expectations with all three businesses
delivering record results in the current year
ensuring that the vendors will receive their full
earn-out consideration. We continue to pursue
further acquisitions aligned with our growth and
diversification strategy.
I would like to take this opportunity to thank
our employees across the SCEE Group for their
contribution to our record results and I thank
our clients and shareholders for their continued
support.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
15
SCEE GROUP – ANNUAL REPORT 2023
B OA R D O F D I R E CTO RS
Your Directors submit their report for Southern Cross Electrical Engineering Limited (“SCEE Group” or
“the Company”) for the year ended 30 June 2023.
Directors
The names and details of the Company’s Directors in office during the financial year and until the date of this report
are as follows. Directors were in office for this entire period unless otherwise stated.
Derek Parkin OAM
Graeme Dunn
Simon Buchhorn
INDEPENDENT CHAIRMAN
AND NON-EXECUTIVE DIRECTOR
MANAGING DIRECTOR AND CHIEF
EXECUTIVE OFFICER
INDEPENDENT
NON-EXECUTIVE DIRECTOR
Derek is a Fellow and life member
of Chartered Accountants
Australia and New Zealand
(“CAANZ”) and a Fellow of the
Australian Institute of Company
Directors.
Derek’s accounting experience
has spanned over 50 years and
four continents. He was most
recently Professor of Accounting
at the University of Notre Dame
Australia, having previously been
an assurance partner with Arthur
Andersen and Ernst & Young.
Derek is a past national Board
member of CAANZ’s predecessor
body in Australia, the Institute of
Chartered Accountants Australia
(“ICAA”) and has served on a
number of the ICAA’s national and
state advisory committees. In 2011,
he was a recipient of the ICAA’s
prestigious Meritorious Service
Award and in 2015 was awarded
the Medal of the Order of Australia
for services to accountancy.
Derek is the Chairman of the Audit
and Risk Management Committee
and a member of the Nomination
and Remuneration Committee.
Graeme has over 30 years
international experience in
heavy civil infrastructure, mining,
oil & gas and building projects.
Graeme’s strong technical
knowledge, coupled with his
extensive executive management
experience, has seen him hold
senior management positions
throughout Australasia and the
Middle East.
Graeme has a Bachelor of
Civil Engineering from the
University of Sydney, an MBA
from the University of Southern
Queensland and has completed
the Senior Executive Program
from the London School of
Business. He is also a graduate
of the Australian Institute of
Company Directors.
Simon has a comprehensive
understanding of SCEE Group’s
operations having been
employed by the Company for
over 30 years prior to retiring in
2014.
During this time he worked in a
number of key positions across
the business including over 6
years as Chief Operating Officer
and a period as interim Chief
Executive Officer. He was also the
General Manager of SCEE Group’s
LNG focused joint venture KSJV.
Simon brings to the Board
significant experience in electrical
contracting and operational
performance both domestically
and internationally. He is also
a graduate of the Australian
Institute of Company Directors.
Simon is a member of the
Audit and Risk Management
Committee and was a member
of the Nomination and
Remuneration Committee until 30
August 2022.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
16
SCEE GROUP – ANNUAL REPORT 2023
B OA R D O F D I R E CTO RS
Karl Paganin
INDEPENDENT
NON-EXECUTIVE DIRECTOR
Karl has over 15 years of
senior executive experience in
investment banking, specialising
in transaction structuring, equity
capital markets, mergers and
acquisitions and providing
strategic management advice to
listed public companies. Prior to
that, Karl was Director of Major
Projects and Senior Legal Counsel
for Heytesbury Pty Ltd (the private
company of the Holmes à Court
family) which was the proprietor
of John Holland Group Pty Ltd.
Karl is the Chairman of the
Nomination and Remuneration
Committee and was a member of
the Audit and Risk Management
Committee until 30 August 2022.
Karl is also the Non-Executive
Chairman of ASX listed Veris
Limited.
Paul Chisholm
NON-EXECUTIVE DIRECTOR
Paul has over 40 years of
experience in the electrical
industry. Paul was a significant
shareholder and Chairman of
Trivantage Holdings Pty Ltd prior
to the acquisition by SCEE Group
in December 2020. He was the
founder of SCADA Group Pty Ltd
which was a global company
servicing the energy, mining,
utility and defence sectors with
automation and control products
and services solutions. Paul has
also been the Chairman of a
number of private companies and
is an advisor for private equity
funds.
Paul has been a member of the
Audit and Risk Management
Committee and of the
Nomination and Remuneration
Committee since 30 August 2022.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
17
SCEE GROUP – ANNUAL REPORT 2023
E X E C U T I V E O F F I C E RS
Chris Douglass
CHIEF FINANCIAL OFFICER AND
COMPANY SECRETARY
Prior to joining SCEE Group in
2011 Chris was the Chief Financial
Officer at Pacific Energy Ltd and
has previously held a number of
senior finance roles with Clough
Ltd.
Chris, a Chartered Accountant
and member of the Governance
Institute of Australia, commenced
his finance career with Deloitte.
Prior to his time with Deloitte,
Chris qualified and practiced as
a solicitor in London.
Colin Harper
COMPANY SECRETARY
Colin has over 20 years of
experience in public company
finance and governance and
is a Chartered Accountant and
member of the Governance
Institute of Australia.
Prior to joining SCEE Group
in 2012 Colin was the Chief
Financial Officer and Company
Secretary of an ASX listed oil &
gas exploration company and
previously worked for EY in both
Australia and the UK.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
18
SCEE GROUP – ANNUAL REPORT 2023
D I R E CTO R’S R E P O RT
Directors’ interests
As at the date of this report, the relevant interests of the directors in the shares and rights or options over shares
issued by the Company are as follows:
Director
Derek Parkin
Graeme Dunn1
Simon Buchhorn
Karl Paganin
Paul Chisholm
Ordinary shares
130,666
2,021,993
800,000
1,726,844
2,758,460
Rights over ordinary
shares
-
2,414,783
-
-
-
Options over ordinary
shares
-
-
-
-
-
1. Included in the Performance Rights held by Graeme Dunn are 804,614 2021 Performance Rights which have been performance
tested on finalising the 2023 results and it has been determined that 100% of these 2021 Performance Rights have vested.
Directors’ meetings
The number of Directors’ meetings and meetings of committees of Directors held and attended by each of the
Directors of the Company during the financial year are:
Director
Derek Parkin
Graeme Dunn
Simon Buchhorn
Karl Paganin
Paul Chisholm
Board Meetings
Attended
16
16
16
15
14
Held
16
16
16
16
16
Audit and Risk
Management Committee
Meetings
Attended
4
-
4
-
3
Held
4
-
4
1
3
Nomination and
Remuneration Committee
Meetings
Attended
2
-
1
2
1
Held
2
-
1
2
1
The number of meetings held represents the time the director held office and was a member of the committee
during the year.
Principal Activities
The principal activities during the year of the entities within the consolidated group were the provision of electrical,
instrumentation, communications and maintenance services to a diverse range of sectors across Australia.
Significant Changes in the State of Affairs
There have been no significant changes in the state of affairs of the Company or consolidated group during this
financial year.
Operating and Financial Review
A review of operations of the consolidated group during the financial year, the results of those operations and the
likely developments in the operations are set out in the Managing Director’s Review on page 12.
Operating results for the year were:
Contract revenue
Profit after income tax from continuing operations
Dividends
Declared and paid during the period (fully franked at 30%)
Final franked dividend for 2022
Interim franked dividend for 2023
Declared after balance date and not recognised as a liability (fully franked at 30%)
Final franked dividend for 2023
2023
$’000
464,708
20,091
2022
$’000
553,280
15,269
Cents per
share
Total amount
$’000
4.0
1.0
4.0
10,441
2,614
10,460
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
19
SCEE GROUP – ANNUAL REPORT 2023
D I R E CTO R’S R E P O RT
Significant Events after Balance Sheet Date
There are no matters or circumstances that have arisen since the end of the financial year which significantly
affected or may significantly affect the operations of the consolidated entity, the results of those operations, or the
state of affairs of the consolidated entity in subsequent financial years.
Likely Developments and Expected Results
Other than as referred to in this report, further information as to the likely developments in the operations of
the consolidated entity would, in the opinion of the directors, be likely to result in unreasonable prejudice to the
consolidated entity.
Environmental Regulation
The operations of the Group are subject to the environmental regulations that apply to our clients. During 2023 the
Group complied with the regulations.
Share Options and Performance Rights
At the date of this report there are no unissued ordinary shares of the Company under options.
During the reporting period 1,010,666 shares were issued from the exercise of options or performance rights
previously granted as remuneration.
Further details are contained in note 26 to the financial statements.
Indemnification and Insurance of Directors and Officers
During or since the end of the financial year, the Company has paid premiums in respect of a contract insuring all
the directors of the Company against a liability incurred in their role as directors of the Company, except where:
a)
b)
the liability arises out of conduct involving a wilful breach of duty; or
there has been a contravention of Sections 182 or 183 of the Corporations Act 2001.
The total amount of insurance contract premiums paid was $349,515 (2022: $328,814).
Proceedings on Behalf of the Company
No person has applied for leave of Court to bring proceedings on behalf of the Company or intervene in any
proceedings to which the Company is a party for the purpose of taking responsibility on behalf of the Company for
all or any part of those proceedings.
The Company was not a party to any such proceedings during the year.
Non-audit Services
There were no non-audit services provided by the external auditors during the year.
Auditor’s Independence Declaration
The lead auditor’s independence declaration is set out on page 79 and forms part of the Directors’ report for the
financial year ended 30 June 2023.
Remuneration Report
The Remuneration Report is set out on pages 22 to 28 and forms part of this report.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
20
SCEE GROUP – ANNUAL REPORT 2023
D I R E CTO R’S R E P O RT
Rounding off
The Company is of a kind referred to in ASIC Instrument 2016/191 dated 24 March 2016 and in accordance with that
Class Order amounts in the consolidated financial statements and Directors’ report have been rounded off to the
nearest thousand dollars, unless otherwise stated.
Signed in accordance with a resolution of the directors.
Derek Parkin
Chairman
29 August 2023
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
21
SCEE GROUP – ANNUAL REPORT 2023
R E M U N E R AT I O N R E P O RT – AU D I T E D
This Remuneration Report outlines the Director and executive remuneration arrangements of the Group in
accordance with the requirements of the Corporations Act 2001 and its Regulations. For the purposes of this report
Key Management Personnel (“KMP”) of the Group are defined as those persons having authority and responsibility
for planning, directing and controlling the major activities of the Company and the Group, directly or indirectly,
including any Director (whether executive or otherwise) of the parent Company.
Nomination and Remuneration Committee
The Nomination and Remuneration Committee of the Board of Directors is responsible for determining and reviewing
remuneration arrangements for the directors and executives.
The Nomination and Remuneration Committee assesses the appropriateness of the nature and amount of
remuneration of executives on a periodic basis by reference to relevant employment market conditions with the
overall objective of ensuring maximum stakeholder benefit from the retention of a high quality, high performing
Director and executive team.
Remuneration Structure
In accordance with best practice corporate governance, the structure of executive and non-executive
remuneration is separate and distinct.
Executive Remuneration
Objective
The Group aims to reward executives with a level and mix of remuneration commensurate with their position and
responsibilities within the Group so as to:
appropriate benchmarks;
• attract, motivate and retain highly skilled executives;
• reward executives for Group, business and individual performance against targets set by reference to
• align the interests of executives with those of shareholders; and
• ensure remuneration is competitive by market standards.
Structure
The Company has entered into contracts of employment with the Managing Director and the executives. These
contracts contain some or all of the following key elements:
• Fixed remuneration;
• Variable remuneration - Short term incentive (“STI”); and
• Variable remuneration - Long term incentive (“LTI”).
The nature, amount and proportion of remuneration that is performance related for each executive is set out in
Table 1.
Fixed Remuneration
Executives are given the opportunity to receive their fixed remuneration in a variety of forms including cash and
fringe benefits such as motor vehicles. It is intended that the manner of payment chosen will be optimal for the
recipient without undue cost for the Group.
Fixed remuneration is reviewed annually by the Nomination and Remuneration Committee. There are no guaranteed
base pay increases for any executive. For the 2023 financial year, the Committee approved an increase to
KMP remuneration commensurate with the growth in the size and scope of the Group’s operations and their
consequential responsibilities in recent years. Details of remuneration received in the 2023 financial year can be
found in Table 1 of this report.
Variable Remuneration – Short Term Incentive (“STI”)
The objective of the Group STI program is to link the achievement of the Group’s short term operational targets with
the remuneration received by the executives charged with meeting those targets. The total potential STI available is
set at a level so as to provide sufficient incentive to the executive to achieve the operational targets and such that
the cost to the Group is reasonable in the circumstances.
Graeme Dunn and Chris Douglass are the only KMPs who participate in the Group STI program and in the 2023
financial year STI scheme could earn up to a maximum of 75% of their fixed remuneration. Actual STI payments
granted to each executive depend on the extent to which specific targets as set at the beginning of the financial
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
I
O
N
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
22
SCEE GROUP – ANNUAL REPORT 2023
R E M U N E R AT I O N R E P O RT – AU D I T E D
year are met. The targets consist of a number of Key Performance Indicators (“KPIs”) covering both financial and
non-financial measures of performance.
For the year ended 30 June 2023, the financial KPIs accounted for 70% of the executive team’s STI and were
achievable on outperforming specific targets for profit and order book.
The non-financial KPIs accounted for 30% of the executive team’s STI and comprised the achievement of strategic
objectives. The strategic objectives were chosen to align with the key drivers for the short term success of the
business and provide a framework for delivering long term value.
The assessment of performance against KPIs is based on the audited financial results for the Company. For each
component of the STI against a KPI no award is made where performance falls below the minimum threshold for
that KPI. The Nomination and Remuneration Committee recommends the STI to be paid to the individuals to the
Board for their approval. For the 2023 financial year STI it has been determined that 86% of the available bonus
will vest.
Variable Remuneration – Long Term Incentive (“LTI”)
The objective of the LTI plan is to retain and reward the members of the executive management team in a manner
which aligns this element of remuneration with the creation of shareholder wealth.
LTI grants to executives are delivered at the discretion of the Nomination and Remuneration Committee in the form
of performance rights or share options under the Senior Management Long Term Incentive Plan, which was last
approved by shareholders at the 2021 Annual General Meeting.
Graeme Dunn and Chris Douglass are the only KMPs who participate in the LTI plan and in the 2023 financial year
LTI scheme were issued with performance rights equal to 75% of their fixed remuneration converted at the 5 day
volume weighted average price of the Company’s ordinary shares at the start of the three year performance period.
The Key Performance Indicators (“KPIs”) used to measure performance for these incentives are earnings per share
growth and absolute total shareholder return. These KPIs are measured over a three year performance period and
were chosen because they are aligned to shareholder wealth creation. For each component of the LTI against a KPI
no award is made where performance falls below the minimum threshold for that KPI.
The Nomination and Remuneration Committee assesses the performance against KPIs and recommends the
LTI vesting to the Board for their approval. For the 2021 financial year performance rights, which have been
performance tested at 30 June 2023, it has been determined that 100% of the available performance rights will
vest. Under the terms of the LTI Plan up to 50% of vested performance rights may be exercised for cash at the
participant’s discretion with the balance exercised for ordinary shares in the Company.
Non-Executive Director Remuneration
Objective
The Board seeks to set aggregate remuneration at a level that provides the Group with the ability to attract and
retain Non-Executive Directors of the highest calibre, whilst incurring a cost that is acceptable to shareholders.
Structure
The Constitution and the ASX Listing Rules specify that the aggregate remuneration of Non-Executive Directors shall
be determined from time to time by a general meeting. The aggregate remuneration as approved by shareholders
at the annual general meeting held on 26 November 2008 is $600,000 per year.
The Non-Executive Director fee structure is reviewed annually. The Board considers external market surveys as well
as the fees paid to Non-Executive Directors of comparable companies in our sector when undertaking the annual
review process. Non-Executive Director fees were increased during the year to reflect the growth in the size and
scope of the Group’s operations in recent years. Prior to this, the most recent increase in Chairman’s fees was in 2016
and in 2012 for other Non-Executive Director fees.
Effective 1 January 2023 the annual fee paid to the Chairman of the Board is $144,796 plus superannuation at the
statutory rate (previously $110,000 plus superannuation). The annual fee paid to other Non-Executive Directors
is $90,498 per annum plus superannuation at the statutory rate (previously $80,000 plus superannuation). No
additional fees are paid to Directors who sit on Board Committees.
The Non-Executive Directors do not receive retirement benefits, nor do they participate in any incentive programs.
The remuneration paid to Non-Executive Directors in the year is detailed in Table 1 of this report.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
I
O
N
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
23
SCEE GROUP – ANNUAL REPORT 2023
R E M U N E R AT I O N R E P O RT – AU D I T E D
Consequences of performance on shareholder wealth
In considering the impact of the Group’s performance on shareholder wealth and the related rewards earned by
executives, the Nomination and Remuneration Committee had regard to the following measures over the years
below:
Profit attributable to owners of the company
Dividends declared and paid during the year
Change in share price
Return on capital employed
2023
$’000
20,091
13,055
14%
15%
2022
$’000
15,269
12,982
9%
13%
2021
$’000
13,761
7,428
23%
11%
2020
$’000
10,870
7,042
(19%)
10%
2019
$’000
12,713
7,022
(24%)
12%
Table 1 Remuneration of Key Management Personnel
Details of the nature and amount of each major element of remuneration of each director of the Company and
each of the named Company executives who are key management personnel are:
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
I
O
N
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
24
SCEE GROUP – ANNUAL REPORT 2023
R E M U N E R AT I O N R E P O RT – AU D I T E D
Short-term
Post-
employment
Salary &
fees
$
STI
cash
bonus1
$
Non-
monetary
benefits
$
Superannuation
benefits
$
Total
$
Share-
based
payments
Options
and
rights2
$
Non-Executive Directors
Derek Parkin,
Chairman
2023
126,729
2022
110,000
Simon
Buchhorn
2023
2022
85,047
80,000
Karl Paganin 2023
85,047
Paul
Chisholm
2022
2023
2022
80,000
85,047
80,000
Executive Directors
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
126,729
110,000
85,047
80,000
85,047
80,000
85,047
80,000
2023
742,500 498,031
- 1,240,531
Graeme
Dunn
2022
643,750 324,180
David
Hammond3
2023
2022
-
82,853
-
-
13,306
11,000
8,930
8,000
8,930
8,000
8,930
8,000
27,500
27,500
-
82,853
8,285
-
-
-
-
-
967,930
-
563,151
Executives
Chris
Douglass –
CFO
Total 2023
Total 2022
Total
$
140,035
121,000
93,977
88,000
93,977
88,000
93,977
88,000
-
-
-
-
-
-
-
-
364,938 1,632,969
298,953 1,294,383
-
-
-
91,138
% of
remuneration
that is
performance
related
-
-
-
-
-
-
-
-
53%
48%
-
-
53%
48%
45%
39%
2023
432,500 297,457
2022
370,800 192,351
729,957
27,500
215,220
972,677
1,556,870 795,488
1,447,403 516,531
- 2,352,358
- 1,963,934
27,500
95,096
98,285
173,725
764,376
580,158 3,027,612
472,678 2,534,897
1.
The STI cash bonus payable in respect of a financial year is determined after the results for the year have been audited and
performance reviews are completed and approved by the Nomination and Remuneration Committee and Board. The value
recognised in Table 1 represents the cash payment in respect of the prior year, less the amount accrued in the prior year, plus
the accrual for the current year entitlement.
2. The fair value of the performance rights with market related vesting conditions were valued using a Monte Carlo simulation
model. The use of a Monte Carlo Simulation model simulates multiple future price projections for both SCEE Group shares and
the shares of the peer group against which they are tested. The performance rights with non-market related vesting conditions
were valued using the Black-Scholes option model. The values derived from these models are allocated to each reporting
period evenly over the period from grant date to vesting date. The amount recognised as an expense is adjusted to reflect the
number of awards for which the related service and non-market performance conditions are expected to be met, such that
the amount ultimately recognised as an expense is based on the number of awards that meet the related service and non-
market performance conditions at the vesting date. The value disclosed in Table 1 is the fair value of the performance rights
recognised in the financial year.
3. David Hammond retired from the Board on 5 November 2021 and ceased to be a Group level KMP from this date, although he
continues in his role as an executive of the Heyday business. Remuneration disclosed in Table 1 is for the period 1 July 2021 to 5
November 2021.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
I
O
N
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
25
SCEE GROUP – ANNUAL REPORT 2023
R E M U N E R AT I O N R E P O RT – AU D I T E D
Employment Contracts
The following executives have non-fixed term employment contracts. The company may terminate the employment
contract by providing the other party notice as follows:
Executive
Graeme Dunn
Chris Douglass
Notice Period
6 months
6 months
The Group retains the right to terminate a contract immediately by making a payment in lieu of the notice period.
An executive may be terminated immediately for a breach of their employment conditions. Upon termination the
executive is entitled to receive their accrued annual leave and long service leave together with any superannuation
benefits. There are no other termination payment entitlements.
Options and rights over equity instruments
The movement during the reporting period in the number of options and rights over ordinary shares in Southern
Cross Electrical Engineering Limited held, directly, indirectly or beneficially, by each key management person,
including their related parties, is as follows:
Performance Rights over equity instruments
Executive
Graeme Dunn
Chris Douglass
Held at
30 June
2022
2,113,241
1,225,738
3,338,979
Granted as
remuneration
1,004,348
Vested and
exercised1
(688,750)
Forfeited
(14,056)
600,000
(395,800)
(8,078)
Held at
30 June
2023
2,414,783
1,421,860
1,604,348
(1,084,550)
(22,134)
3,836,643
Vested and
exercisable at
30 June 2023
-
-
-
1. Graeme Dunn elected to exercise 50% of his vested 2020 performance rights for cash and 50% for ordinary shares in accordance
with the LTI Plan Rules. Chris Douglass elected to exercise 100% of his vested 2020 performance rights for ordinary shares.
Performance rights granted as remuneration in 2023
During the period performance rights over ordinary shares in the company were granted as remuneration to KMP.
These performance rights will vest subject to the meeting of performance set out below. Details on performance
rights that were granted during the period are as follows:
Executive
Graeme Dunn1
Instrument
2023 Rights
Number
502,174
Fair value per
performance
right at grant
date ($)
0.37
Exercise
price per
performance
right ($)
0.00
Grant
date
4/11/22
Performance
testing date
30/6/25
Expiry
Date
4/11/26
Graeme Dunn2
2023 Rights
502,174
4/11/22
Chris Douglass1
2023 Rights
300,000
4/11/22
Chris Douglass2
2023 Rights
300,000
4/11/22
0.58
0.37
0.58
0.00
0.00
0.00
30/6/25
4/11/26
30/6/25
4/11/26
30/6/25
4/11/26
1,604,348
1. Performance rights granted with Absolute TSR as the vesting condition
2. Performance rights granted with EPS growth as the vesting condition
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
I
O
N
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
26
SCEE GROUP – ANNUAL REPORT 2023
R E M U N E R AT I O N R E P O RT – AU D I T E D
2023 Financial Year Performance Rights
Up to 100% of the allocated performance rights may vest, subject to the achievement of the performance
conditions as set out below. The key terms of the performance rights are:
• To be performance tested over a three year period from 1 July 2022 to 30 June 2025 (“Performance Period”);
• No performance rights will vest until 30 June 2025;
• Performance testing criteria are 50% against Absolute Total Shareholder Return (“TSR”) performance, and 50%
• Expiry on the 4th anniversary of the grant date unless an earlier lapsing date applies.
against Earnings Per Share (“EPS”) performance; and
The TSR formula is:
((Share Price at Test Date – Share Price at Start Date) + (Dividends Received))/Share Price at Start Date
TSR will be assessed against targets for threshold performance of 8% per annum compounded over the
Performance Period and for stretch performance of 12% per annum compounded over the Performance Period. The
vesting schedule is as follows for TSR performance over the Performance Period:
Less than 8% per annum compounded
8% per annum compounded
0% vesting
50% vesting
Between 8% and 12% per annum compounded
Pro-rata vesting between 50% and 100%
At or above 12% per annum compounded
100% vesting
EPS performance will be measured in the 2025 financial year. For the purposes of performance testing the
Performance Rights, EPS in the 2025 financial year will be the Basic EPS for the year, as prescribed by the accounting
standards and set out in the Company’s Financial Reports, adjusted to remove the following non-cash items from
the calculation of profit or loss attributable to ordinary shareholders in the year, in order to reflect the company’s
underlying profitability:
(a) amortisation of acquired intangibles;
(b) unwinding of interest on deferred acquisition consideration payments;
(c) adjustments to the assessment of deferred consideration payable; and
(d) acquisition costs.
EPS, as described above, will be assessed against targets for threshold performance of 9.70 cents per share in the
2025 financial year and for stretch performance of 10.82 cents per share in the 2025 financial year. The vesting
schedule is as follows for EPS performance in the 2025 financial year:
Less than 9.70 cents per share
9.70 cents per share
0% vesting
50% vesting
Between 9.70 and 10.82 cents per share
Pro-rata vesting between 50% and 100%
At or above 10.82 cents per share
100% vesting
Under the terms of the LTI Plan up to 50% of vested performance rights may be exercised for cash at the
participants discretion with the balance exercised for one ordinary share per vested performance right.
Where a participant ceases employment prior to the vesting of their share options or performance rights, the share
options or performance rights are forfeited unless in the event of retirement, permanent disablement or death the
Board, at their absolute discretion, waive the exercise and vesting conditions associated with the performance
rights or allow the performance rights to continue to be assessed over the original performance assessment period.
In the event of a change of control of the Company, all options and performance rights that have not lapsed may
be exercised.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
I
O
N
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
27
SCEE GROUP – ANNUAL REPORT 2023
R E M U N E R AT I O N R E P O RT – AU D I T E D
Details of equity incentives affecting current and future remuneration
Details of the vesting profiles of the rights and options held by each key management person are as follows:
Executive
Graeme Dunn
Instrument
2020 Rights
Number Grant Date
8/11/19
702,806
% vested
in year
98%
% forfeited
in year
2%
Performance
testing date
30/6/22
Expiry
Date
8/11/23
2021 Rights (A)
2022 Rights (B)
804,614
605,821
2023 Rights (C)
1,004,348
Chris Douglass
2020 Rights
2021 Rights (A)
2022 Rights (B)
2023 Rights (C)
403,878
462,383
359,477
600,000
4/12/20
5/11/21
4/11/22
8/11/19
4/12/20
5/11/21
4/11/22
-
-
-
98%
-
-
-
-
-
-
2%
-
-
-
30/6/23
4/12/24
30/6/24
5/11/25
30/6/25
5/11/26
30/6/22
8/11/23
30/6/23
4/12/24
30/6/24
5/11/25
30/6/25
5/11/26
A. 50% of the 2021 performance rights have TSR as the vesting condition with a threshold target of 8% per annum compounded
and a stretch target of 12% per annum compounded. These performance rights have a fair value of $0.31 each. 50% of the 2021
performance rights have EPS growth as the vesting condition with a threshold target of 5.62 cents per share and a stretch
target of 6.27 cents per share. These performance rights have a fair value of $0.48 each. The 2021 financial year performance
rights have been performance tested at 30 June 2023 and it has been determined that 100% of the available performance
rights will vest.
B. 50% of the 2022 performance rights have TSR as the vesting condition with a threshold target of 8% per annum compounded
and a stretch target of 12% per annum compounded. These performance rights have a fair value of $0.41 each. 50% of the 2021
performance rights have EPS growth as the vesting condition with a threshold target of 8.57 cents per share and a stretch
target of 9.55 cents per share. These performance rights have a fair value of $0.61 each.
C. The vesting conditions and fair values of the 2023 performance rights are set out on page 27.
Movements in shares
The movement during the reporting period in the number of ordinary shares in Southern Cross Electrical Engineering
Limited held, directly, indirectly or beneficially, by each key management person, including their related parties, is as
follows.
Ordinary shares
Directors
Derek Parkin1
Graeme Dunn2
Simon Buchhorn
Karl Paganin3
Paul Chisholm
Executives
Chris Douglass2
Held at
30 June 2022
Additions
Disposals
Other
Held at
30 June 2023
121,134
1,677,618
800,000
1,595,201
2,758,460
9,532
344,375
-
131,643
-
1,649,866
395,800
-
-
-
-
-
-
-
-
-
-
-
-
130,666
2,021,993
800,000
1,726,844
2,758,460
2,045,666
1. Shares acquired through participation in the Company’s Dividend Reinvestment Plan.
2. Shares acquired on exercise of vested FY20 performance rights.
3. Shares acquired through on market purchase and participation in the Company’s Dividend Reinvestment Plan.
Transactions with key management personnel
There were no transactions between the company and Key Management Personnel during the year. There are no
loans between the company and Key Management Personnel.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
I
O
N
R
E
P
O
R
T
F
I
N
A
N
C
A
L
I
S
T
A
T
E
M
E
N
T
S
28
SCEE GROUP – ANNUAL REPORT 2023
F I N A N C I A L STAT E M E N TS CO N T E N TS PAG E
Consolidated Statement of
Comprehensive Income
Consolidated Balance Sheet
Consolidated Statement of Changes in Equity
Consolidated Statement of Cashflows
Notes to the Financial Statements
1. Reporting entity
2. Basis of preparation
3. Segment reporting
4. Contract revenue
5. Other income
6. Employee benefits expenses
7. Depreciation and amortisation expenses
8. Finance income and expenses
9. Income tax expense
10. Earnings per share
11. Cash and cash equivalents
12. Trade and other receivables
13. Inventories
14. Contract assets
15. Property, plant and equipment
16. Right-of-use assets
30
31
32
33
34
34
35
36
37
37
37
37
38
39
39
40
40
40
41
42
17. Intangible assets
18. Trade and other payables
19. Lease liability
20. Provisions
21. Deferred acquisition consideration
22. Capital and reserves
23. Financial instruments
24. Investments in subsidiaries
25. Interest in joint operations
26. Share-based payments
27. Reconciliation of cash flows from
operating activities
28. Contingencies
29. Subsequent events
30. Auditor’s remuneration
31. Parent entity disclosures
32. Related parties
33. Significant accounting policies
34. Determination of fair values
Director’s Declaration
Independent Auditor’s Report
Lead Auditor’s Independence Declaration
42
43
44
44
44
45
46
51
52
52
55
56
56
56
57
57
58
70
72
73
79
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
29
SCEE GROUP – ANNUAL REPORT 2023
CONSOLIDATED STATEMENT OF COMPREHENSIVE INCOME
FOR THE YEAR ENDED 30 JUNE 2023
Contract revenue
Contract expenses
Gross profit
Other income
Employee benefits expenses
Occupancy expenses
Administration expenses
Depreciation expense
Amortisation expense
Amortisation of customer contracts and relationships
Other expenses from ordinary activities
Profit from operations
Finance income
Finance expenses
Change in fair value of deferred acquisition consideration
Net finance expense
Profit before tax
Income tax expense
Profit from continuing operations
Other comprehensive income
Items that are or may be reclassified to the profit and loss
Other comprehensive income net of income tax
Total comprehensive income
Total comprehensive income attributable to:
Owners of the Company
Earnings per share:
Basic earnings per share (cents)
Diluted earnings per share (cents)
NOTE
4
5
6
7
7
7
8
8
21
9
2023
$’000
464,708
(388,448)
76,260
1,695
(22,983)
(2,365)
(10,995)
(3,622)
(2,919)
(2,113)
(3,407)
29,551
1,241
(1,757)
-
(516)
2022
$’000
553,280
(480,776)
72,504
1,101
(21,900)
(2,558)
(10,625)
(3,513)
(2,981)
(2,172)
(3,168)
26,688
12
(2,067)
(2,253)
(4,308)
29,035
22,380
(8,944)
20,091
-
-
20,091
(7,111)
15,269
-
-
15,269
20,091
15,269
10
10
7.69
7.61
6.10
6.01
The above statement of comprehensive income should be read in conjunction with the accompanying notes.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
30
SCEE GROUP – ANNUAL REPORT 2023
CONSOLIDATED BALANCE SHEET
FOR THE YEAR ENDED 30 JUNE 2023
Assets
Current assets
Cash and cash equivalents
Trade and other receivables
Inventories
Prepayments
Total current assets
Non-current assets
Property, plant and equipment
Right-of-use assets
Intangible assets
Total non-current assets
Total assets
Liabilities
Current liabilities
Trade and other payables
Lease liability
Provisions
Deferred acquisition consideration
Tax payable
Total current liabilities
Non-current liabilities
Lease liability
Provisions
Deferred acquisition consideration
Deferred tax liability
Total non-current liabilities
Total liabilities
Net assets
Equity
Share capital
Reserves
Retained earnings
Total equity
NOTE
2023
$’000
2022
$’000
11
12
13
15
16
17
18
19
20
21
9
19
20
21
9
22
77,652
103,906
1,256
4,850
53,083
155,586
1,386
1,176
187,664
211,231
9,950
10,096
110,724
130,770
318,434
85,969
2,626
18,239
7,305
10,349
10,700
10,614
112,961
134,275
345,506
115,727
2,145
20,198
5,641
153
124,488
143,864
7,792
879
-
3,176
11,847
136,335
182,099
116,651
811
64,637
182,099
8,816
752
7,105
10,681
27,354
171,218
174,288
115,953
743
57,592
174,288
The above balance sheet should be read in conjunction with the accompanying notes.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
31
SCEE GROUP – ANNUAL REPORT 2023
CONSOLIDATED STATEMENT OF CHANGES IN EQUITY
FOR THE YEAR ENDED 30 JUNE 2023
Share
Capital
$’000
Retained
Earnings
$’000
Share Based
Payments
Reserve
$’000
Deferred
acquisition
payment
Reserve
$’000
Translation
Reserve
$’000
Total
Equity
$’000
Balance as at 1 July 2021
109,967
55,160
1,060
5,500
(514)
171,173
Total comprehensive income for the year
Profit for the year
Total comprehensive income
-
-
Transactions with owners, recorded directly in equity
Dividends
Dividend re-investment, net
Deferred acquisition payment
Performance rights (net of tax)
Equity-settled share-based
payment
Total transactions with owners
Balance as at 30 June 2022
-
270
5,495
221
-
5,986
115,953
15,269
15,269
(12,982)
-
-
145
-
(12,837)
57,592
-
-
-
-
-
(447)
644
197
1,257
Balance as at 1 July 2022
115,953
57,592
1,257
Total comprehensive income for the year
Profit for the year
Total comprehensive income
-
-
20,091
20,091
Transactions with owners, recorded directly in equity
Dividends
Dividend re-investment, net
Performance rights (net of tax)
Equity-settled share-based
payment
Total transactions with owners
-
306
392
-
698
Balance as at 30 June 2023
116,651
(13,055)
-
9
-
(13,046)
64,637
-
-
-
-
(586)
654
68
1,325
-
-
-
-
(5,500)
-
-
(5,500)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
15,269
15,269
(12,982)
270
(5)
(81)
644
(12,154)
(514)
174,288
(514)
174,288
-
-
-
-
-
-
-
20,091
20,091
(13,055)
306
(185)
654
(12,280)
(514)
182,099
The above statement of changes in equity should be read in conjunction with the accompanying notes.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
32
SCEE GROUP – ANNUAL REPORT 2023
CONSOLIDATED STATEMENT OF CASH FLOWS
FOR THE YEAR ENDED 30 JUNE 2023
Cash flows from operating activities
Cash receipts from customers
Cash paid to suppliers and employees
Interest received
Interest paid
Income taxes paid
Net cash from operating activities
Cash flows from investing activities
Payment of deferred acquisition consideration
Proceeds from the sale of assets
Acquisition of property, plant and equipment
Acquisition of intangible asset
Net cash used in investing activities
Cash flows from financing activities
Dividends paid
Payment of lease liabilities principal
Net cash used in financing activities
Increase in cash and cash equivalents
Cash and cash equivalents at beginning of period
Cash and cash equivalents at 30 June
NOTE
27
21
15
17
22
11
2023
$’000
556,758
(502,024)
1,241
(1,551)
(6,253)
48,171
(5,647)
894
(3,280)
-
(8,033)
(12,749)
(2,820)
(15,569)
24,569
53,083
77,652
2022
$’000
606,733
(561,804)
12
(1,734)
(13,533)
29,674
(10,000)
1,449
(3,225)
(256)
(12,032)
(12,694)
(2,871)
(15,565)
2,077
51,006
53,083
The above cash flow statement should be read in conjunction with the accompanying notes.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
33
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
1. Reporting entity
Southern Cross Electrical Engineering Limited (“the Company”, “the parent”) is a company incorporated and
domiciled in Australia. The company’s shares are publicly traded on the Australian Securities Exchange.
The consolidated financial statements for the year ended 30 June 2023 comprise the Company and its subsidiaries
(together referred to as the “Group” and individually as “Group entities”). The Group is a for-profit entity and the
nature of the operations and principal activities of the Group are described in the Directors’ Report.
2. Basis of preparation
(a) Statement of compliance
The consolidated financial report is a general purpose financial report which has been prepared in accordance
with Australian Accounting Standards (“AASBs”) (including Australian Accounting Interpretations) adopted by
the Australian Accounting Standards Board (AASB) and the Corporations Act 2001. The consolidated financial
report of the Group complies with International Financial Reporting Standards (“IFRSs”) and interpretations
adopted by the International Accounting Standards Board (“IASB”). A listing of new standards and
interpretations not yet adopted is included in note 33(w).
These financial statements have been rounded to the nearest thousand dollars where permitted by ASIC
Instrument 2016/191 dated 24 March 2016.
The consolidated financial statements were authorised for issue by the Board of Directors on 29 August 2023.
(b) Basis of measurement
The consolidated financial statements have been prepared on the historical cost basis except as set out below:
• Share-based payment arrangements are measured at fair value.
• Assets and liabilities acquired in a business combination are initially recognised at fair value.
The methods used to measure fair values are discussed further in note 34.
(c) Functional and presentation currency
(i) Functional and presentation currency
Both the functional and presentation currency of Southern Cross Electrical Engineering Limited and its
Australian subsidiaries are Australian Dollars ($). The functional currency for the Peruvian subsidiary is Soles.
Overseas functional currencies are translated to the presentation currency (see below).
(ii) Transactions and balances
Transactions in foreign currencies are initially recorded in the functional currency by applying the exchange
rates ruling at the date of the transaction. Monetary assets and liabilities denominated in foreign currencies
are translated at the rate of exchange ruling at the balance sheet date.
Non-monetary items that are measured in terms of historical cost in a foreign currency are translated using
the exchange rate as at the date of the initial transaction. Non-monetary items measured at fair value in a
foreign currency are translated using the exchange rates at the date when the fair value was determined.
(iii) Translation of Group Entities functional currency to presentation currency
The results of the overseas subsidiaries are translated into Australian Dollars as at the date of each
transaction. Assets and liabilities are translated at exchange rates prevailing at balance sheet date.
Exchange variations resulting from the translation are recognised in other comprehensive income and
presented in the foreign currency translation reserve in equity.
(d) Use of estimates and judgements
The preparation of financial statements in conformity with AASBs requires management to make judgements,
estimates and assumptions that affect the application of accounting policies and the reported amounts of
assets, liabilities, income and expenses. Actual results may differ from these estimates.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
34
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
2. Basis of preparation (continued)
(d) Use of estimates and judgements (continued)
The significant judgements made by management in applying the Group’s accounting policies and the
key sources of estimation uncertainty were the same as those that applied to the consolidated financial
statements as at and for the year ended 30 June 2022.
Estimates and underlying assumptions are reviewed on an ongoing basis. Revisions to accounting estimates are
recognised in the period in which the estimate is revised and in any future periods affected. Information about
these accounting estimates is included in the following notes:
• Note 4, 14 and 33 (n) – estimation of total contract cost and measurement of variable consideration;
• Note 15, 17 and 33 (k) – recoverable amount for testing property, plant and equipment and goodwill;
• Note 16, 19, and 33 (g) – initial and subsequent measurement of Right-of-use (“ROU”) assets and Lease
• Note 21 and 33 (u) – measurement of deferred consideration; and
• Note 26 – measurement of share-based payments.
liability;
Critical judgements in applying accounting policies that have the most significant effect on the amounts
recognised in the financial statements relate to contract revenue (note 33(n) and 4) and contract assets (note
33(i) and 14).
Details of the Group’s accounting policies are included in notes 33 and 34.
3. Segment reporting
Revenue is principally derived by the Group from the provision of electrical, instrumentation and communications
services through construction and services contracts to customers in the following sectors: Commercial, Resources,
and Infrastructure.
The Group identified its operating segments based on the internal reports that are reviewed and used by
the Managing Director in assessing performance and in determining the allocation of resources. Financial
information about each of these operating segments is reported to the Managing Director on a recurring basis.
The Group provides its services through the three key segments of SCEE Electrical, Heyday, and Trivantage.
The directors believe that the aggregation of the operating segments is appropriate as to differing extents they:
• have similar economic characteristics;
• perform similar services using similar business processes;
• provide their services to a similar client base;
• have a centralised pool of shared assets and services; and
• operate in similar regulatory environments.
All segments have therefore been aggregated to form one operating segment.
In presenting information on the basis of geographical location, segment revenue, based on the geographical
location of customers, and segment assets, based on the geographical location of the assets, are all located in
Australia.
No customers generated more than 10% of the Group’s Australian segment revenue during the year (2022: $181.2
million generated from two customers, each contributing more than 10% of the Group’s revenue).
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
35
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
4. Contract revenue
Disaggregated revenue information
NOTE
Operating sectors
Commercial
Resources
Infrastructure
Total Revenue
Revenue type
Construction revenue
Services revenue
Total revenue
Timing of revenue recognition
Products and services transferred over time
Revenue from contracts with customers
Contract balances
Trade receivables
Contract assets
2023
$’000
154,869
168,838
141,001
464,708
318,265
146,443
464,708
2022
$’000
166,922
282,484
103,874
553,280
403,625
149,655
553,280
464,708
464,708
553,280
553,280
12
14
39,004
68,240
107,244
67,189
87,233
154,422
Trade receivables are non-interest bearing and are generally on 30 to 45 days term. In 2023, $0.2m
(2022: $0.4m) was recognised as provisions for expected credit losses on trade receivables.
Contract assets and revenue includes contract modifications recognised in accordance with the Group’s
accounting policy (note 33(n)(iii)) for which amounts are not yet finalised with the customer.
The following amounts are included in revenue from contracts for the year ended 30 June 2023:
Revenue recognised as a contract liability in prior period
38,620
33,504
Unsatisfied Performance Obligations
Transaction price expected to be recognised in future years for unsatisfied performance obligations at 30 June
2023:
Construction revenue
Services revenue
385,770
127,408
513,178
360,691
136,281
496,972
In line with the Group’s accounting policy described in Note 33 (n), the transaction price expected to be recognised
in future years excludes variable consideration that is constrained.
The average duration of contracts is given below. However, some contracts will vary from these typical lengths.
Revenue is typically earned over these varying timeframes:
Construction revenue
Services revenue
1 to 4 years
up to 5 years
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
36
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
5. Other income
Other income
Apprenticeship incentive
Net gain/(loss) on disposals
Other
6. Employee benefits expenses
Remuneration, bonuses and on-costs
Superannuation contributions
Amounts provided for employee entitlements
Share-based payments expense
NOTE
26
2023
$’000
558
486
651
1,695
(18,235)
(2,402)
(1,692)
(654)
(22,983)
2022
$’000
581
(227)
747
1,101
(17,138)
(2,112)
(2,006)
(644)
(21,900)
The above employee benefits expenses do not include employee benefits expenses recorded within contract
expenses. Employee benefits included in contract expenses were $124.2m (2022: $189.8m). The total employee
benefits expense is therefore $147.2m (2022: $211.7m).
7. Depreciation and amortisation expenses
Buildings
Leasehold improvements
Plant and equipment
Motor vehicles
Office furniture and equipment
Total depreciation expense for the year
Amortisation of ROU asset
Amortisation of customer contract intangibles
Amortisation of intellectual property
Total amortisation expense for the year
8. Finance income and expenses
Interest income on bank deposits
Finance income
Bank charges
Bank guarantee fees
Deferred consideration
Lease liability interest
Other
Finance expenses
Change in fair value of deferred acquisition consideration
Net finance expense
(17)
(225)
(1,234)
(1,133)
(1,013)
(3,622)
(2,795)
(2,113)
(124)
(5,032)
1,241
1,241
(485)
(462)
(206)
(535)
(69)
(1,757)
-
(516)
(17)
(241)
(1,068)
(1,116)
(1,071)
(3,513)
(2,872)
(2,172)
(109)
(5,153)
12
12
(631)
(558)
(333)
(486)
(59)
(2,067)
(2,253)
(4,308)
15
16
17
17
21
21
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
37
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
9.
Income tax expense
(a)
Income Statement
Current tax expense
Current period
Over provision from prior year
Deferred tax expense
Origination and reversal of temporary differences
(Under)/Over provision from prior year
Income tax expense reported in the income statement
2023
$’000
2022
$’000
(16,677)
228
(16,449)
7,759
(254)
(8,944)
(8,357)
377
(7,980)
619
250
(7,111)
(b) Reconciliation between tax expense and pre-tax accounting profit
Accounting profit before income tax
29,035
22,380
Income tax expense using the Company’s domestic tax rate of 30%
(8,711)
(6,714)
(Under)/Over provision from prior year
Share based payments
Non-deductible deferred consideration interest
Non-deductible change in fair value of deferred consideration
Other
Income tax expense reported in the income statement
The applicable effective tax rates are:
(26)
(196)
(61)
-
50
(8,944)
30.8%
627
(193)
(100)
(676)
(55)
(7,111)
31.8%
Deferred tax assets and
liabilities
Deferred tax liabilities
Retentions receivable
Contract assets
Right-of-use assets
Intangible assets
Property, plant and equipment
Deferred tax assets
Provisions
Employee entitlements
Property, plant and equipment
Unearned revenue
Lease liability
Tax losses
Other
Net deferred tax liabilities
Balance Sheet
Income Statement
Equity
2023
$’000
2022
$’000
2023
$’000
2022
$’000
2023
$’000
2022
$’000
(12)
-
12
(13,008)
(20,448)
(7,440)
(3,029)
(2,305)
(729)
(3,183)
(2,976)
(397)
(154)
(671)
332
(60)
3,088
785
(627)
154
(19,083)
(27,004)
(7,921)
3,340
387
7,541
-
4,648
3,232
-
99
1,534
6,073
-
4,485
3,320
235
676
15,907
(3,176)
16,323
(10,681)
1,147
(1,468)
-
(163)
88
235
577
416
(7,505)
(1,461)
256
19
(2,185)
(807)
(235)
204
(4,209)
(869)
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
-
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
38
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
10. Earnings per share
Basic earnings per share
The calculation of basic earnings per share at 30 June 2023 was based on the profit attributable to ordinary
shareholders of $20,091,000 (2022: $15,269,000) and a weighted average number of ordinary shares outstanding of
261,117,991 (2022: 250,458,122), calculated as follows:
Profit attributable to ordinary shareholders
Profit for the period
Weighted average number of ordinary shares
Issued ordinary shares at 1 July
Effective new balance resulting from issue of shares in the year
Weighted average number of ordinary shares at 30 June
NOTE
22
2023
$’000
20,091
2022
$’000
15,269
2023
260,006,961
2022
248,050,102
1,111,030
2,408,020
261,117,991
250,458,122
Diluted earnings per share
The calculation of diluted earnings per share at 30 June 2023 was based on the profit attributable to ordinary
shareholders of $20,091,000 (2022: $15,269,000) and a weighted average number of ordinary shares outstanding
after adjustment for the effects of all dilutive potential ordinary shares of 263,972,062 (2022: 253,950,769) as follows:
Profit attributable to ordinary shareholders (diluted)
Profit for the period
Weighted average number of ordinary shares (diluted)
Weighted average number of ordinary shares for basic earnings per share
Effect of dilution:
Share options and performance rights on issue
Weighted average number of ordinary shares at 30 June
11. Cash and cash equivalents
Bank balances
Short term deposits
Cash and cash equivalents in the statement of cash flows
2023
$’000
20,091
2022
$’000
15,269
2023
261,117,991
2022
250,458,122
2,854,071
3,492,647
263,972,062
253,950,769
2023
$’000
77,652
-
77,652
2022
$’000
33,113
19,970
53,083
The effective interest rate on cash and cash equivalents was 2.16% (2022: 0.03%); these deposits are either at call or
on short term deposit.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
39
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
12. Trade and other receivables
Trade receivables
Sundry debtors
Provision for impairment of trade receivables
Contract assets
Retentions
2023
$’000
39,004
265
(414)
65,010
41
103,906
2022
$’000
67,189
1,339
(197)
87,233
22
155,586
14
Trade receivables are non-interest bearing and are generally on 30 to 45 day terms. The provision for impairment
of trade receivables relates to expected credit losses and is used to record impairment losses. When the Group is
reasonably certain that no recovery of the amount owing is possible, the amount is considered irrecoverable and is
written off against the financial asset directly. The Group will continue to strongly pursue all debts provided for.
The movement in the allowance for impairment in respect of Trade receivables during the year was as follows:
Balance at start of year
Impairment losses recognised
Write-offs
Amounts recovered
Balance at 30 June
197
217
-
-
414
112
396
(46)
(265)
197
The ageing of trade receivables and the related provision for expected credit losses are detailed in note 23. All
write-offs of bad debts are made when there is no reasonable expectation of recovering the contractual cash
flows.
13. Inventories
Raw materials and consumables – cost
14. Contract assets
Costs incurred to date
Recognised profit
Progress billings
1,256
1,386
280,970
82,271
(298,231)
65,010
386,412
75,116
(374,295)
87,233
Contract assets represents the unbilled amount expected to be collected from customers for contract work
performed to date. Cost includes all expenditure directly related to specific projects. Recognised profit is based
on the percentage completion method and is determined using the costs incurred to date and the total forecast
contract costs.
The timing of cash inflows for contract assets is dependent on the status of processes underway to gain
acceptance from customers as to the enforceability of recognised modifications resulting from contractual claims
and variations. The Group pursues various options with customers to accelerate the inflow of cash which can
include, but are not limited to, negotiations, security of payment adjudications and arbitration involving the support
of legal counsel and external consultants. Accordingly, there remains a risk that settlement of contract assets takes
longer than 12 months. Contract assets, for which revenue was earned longer than 12 months ago and for which
cash is yet to be received, is $32.8m (2022: $43.3m).
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
40
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
15. Property, plant and equipment
Land
and
Buildings
$’000
NOTE
Leasehold
Improvements
$’000
Plant and
equipment
$’000
Motor
Vehicles
$’000
Office
Furniture and
Equipment
$’000
Total
$’000
Cost
Balance at 1 July 2021
Additions
Disposals
Balance at 30 June 2022
Balance at 1 July 2022
Additions
Disposals
Balance at 30 June 2023
Depreciation
Balance at 1 July 2021
Depreciation for the year
7
Disposals
Balance at 30 June 2022
Balance at 1 July 2022
Depreciation for the year
7
Disposals
Balance at 30 June 2023
Carrying amounts
At 30 June 2022
At 30 June 2023
916
-
-
916
916
-
-
916
(218)
(17)
-
(235)
(235)
(17)
-
(252)
681
664
3,283
467
(1,546)
2,204
2,204
180
-
2,384
(1,474)
(241)
869
(846)
(846)
(225)
-
19,505
843
(3,524)
16,824
16,824
829
(1,550)
16,103
(15,732)
(1,068)
2,789
(14,011)
(14,011)
(1,234)
1,252
(1,071)
(13,993)
12,080
1,266
(2,377)
10,969
10,969
1,767
(1,286)
11,450
(8,196)
(1,116)
2,129
(7,183)
(7,183)
(1,133)
1,176
(7,140)
12,033
47,817
649
(118)
3,225
(7,565)
12,564
43,477
12,564
43,477
504
3,280
-
(2,836)
13,068
43,921
(9,533)
(35,153)
(1,071)
(3,513)
102
5,889
(10,502)
(32,777)
(10,502)
(32,777)
(1,013)
(3,622)
-
2,428
(11,515)
(33,971)
1,358
1,313
2,813
2,110
3,786
4,310
2,062
1,553
10,700
9,950
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
41
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
16. Right-of-use assets
The Group leases assets including property, motor vehicles and office furniture and equipment. Information about
leased assets for which the Group is a lessee is presented below:
Land and
Buildings
$’000
NOTE
Motor
Vehicles
$’000
Office
Furniture and
Equipment
$’000
Opening carrying amount at 1 July 2021
Additions
Remeasurement
Amortisation charged for the year
Derecognition during the year (net)
Closing carrying amount at 30 June 2022
Opening carrying amount at 1 July 2022
Additions
Remeasurement
Amortisation charged for the year
Closing carrying amount at 30 June 2023
7
7
7,633
5,064
1,261
(2,545)
(970)
10,443
10,443
1,958
216
(2,659)
9,958
298
-
29
(255)
-
72
72
-
-
(65)
7
61
-
110
(72)
-
99
99
103
-
(71)
131
17.
Intangible assets – goodwill, customer contracts and relationships, and other
Total
$’000
7,992
5,064
1,400
(2,872)
(970)
10,614
10,614
2,061
216
(2,795)
10,096
Customer
Contracts
and
Relationships
$’000
NOTE
Goodwill
$’000
111,432
-
111,432
111,432
-
111,432
(8,390)
-
(8,390)
(8,390)
-
(8,390)
19,749
-
19,749
19,749
-
19,749
(9,127)
(2,172)
(11,299)
(11,299)
(2,113)
(13,412)
7
7
Other
$’000
Total
$’000
1,383
256
1,639
1,639
-
1,639
(61)
(109)
(170)
(170)
(124)
(294)
132,564
256
132,820
132,820
-
132,820
(17,578)
(2,281)
(19,859)
(19,859)
(2,237)
(22,096)
103,042
103,042
8,450
6,337
1,469
1,345
112,961
110,724
Cost
Balance as at 1 July 2021
Additions
Balance as at 30 June 2022
Balance as at 1 July 2022
Additions
Balance as at 30 June 2023
Amortisation
Balance as at 1 July 2021
Amortisation
Balance as at 30 June 2022
Balance as at 1 July 2022
Amortisation
Balance as at 30 June 2023
Carrying amounts
At 30 June 2022
At 30 June 2023
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
42
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
17.
Intangible assets – goodwill, customer contracts and relationships, and other (continued)
Impairment testing for cash-generating units containing goodwill
For the purpose of impairment testing, goodwill is allocated to the Group’s cash generating units (“CGUs”) which
represent the lowest level within the Group at which goodwill is monitored for internal management purposes.
The aggregate carrying amounts of goodwill allocated to each CGU are as follows:
SCEE Electrical
Heyday
Trivantage
2023
$’000
21,082
52,697
29,263
103,042
2022
$’000
21,082
52,697
29,263
103,042
The recoverable amounts of the above CGUs were based on their value in use with the Group performing its annual
impairment test in June 2023. The carrying amount of the operating CGUs were determined to be lower than their
recoverable amounts and therefore no impairment charge has been recognised.
Value in use was determined by preparing five year discounted cash flow forecasts and extrapolating the cash
flows beyond the terminal year using a terminal growth-rate. The calculation of value in use was based on the
following key assumptions:
wins, and independent research on the markets in which the CGUs operate.
• Cash flows were projected based on past experience, actual operating results, known and expected contract
• The five year cash flow estimates used in assessments for all CGU’s were based on Board approved budgets for
the year ending 30 June 2024. Compound average annual growth assumptions thereafter are SCEE Electrical
1.0% (2022: -1.4%), Heyday 2.6% (2022: 2.1%), and Trivantage 1.7% (2022: -0.9%) per annum for each future year.
The terminal value assumes perpetual growth of 2.5% (2022: 2.5%).
• The margins included in the projected cash flow are similar to those achieved historically over the past 5 years.
• A pre-tax discount rate between 12.6% and 14.6% (2022: between 12.9% and 13.2%) was applied. This discount
rate was estimated based on past experience and industry average weighted cost of capital.
Sensitivity to changes in assumptions
Management believes that any reasonable change in the key assumptions for the Heyday and Trivantage
segments would not cause the carrying value to exceed its recoverable amount. SCEE Electrical is able to withstand
a reduction in revenue forecasts or a reduction in gross margin forecast of up to 2.5% before carrying value exceeds
its recoverable amount.
All three CGUs can withstand the high end of the discount rate range without causing the carrying value to exceed
its recoverable amount.
18. Trade and other payables
Trade payables
Contract liabilities
Accrued expenses
Goods and services tax payable
Retentions payable
25,063
36,867
20,726
2,416
897
85,969
31,448
41,068
40,218
2,339
654
115,727
Due to the short-term nature of these payables, their carrying value is assumed to approximate their fair value.
The Group’s exposure to currency and liquidity risk related to trade and other payables is disclosed in note 23.
Contract liabilities
Current
Unearned revenue
36,867
41,068
Unearned revenue arises when the Company has invoiced the client in advance of performing the contracted
services. Contract liabilities fluctuate based on progress of completion of contracts.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
43
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
19. Lease liability
Current portion
Non-current portion
2023
$’000
2,626
7,792
10,418
2022
$’000
2,145
8,816
10,961
The average remaining lease term for the leased assets per underlying asset class as at 30 June 2023 are as
follows:
Land and building
Motor vehicles
Office equipment
20. Provisions
Current
Annual leave
Long service leave
Other employee leave
Other
Non-current
Long service leave
2023
(in years)
3.43
0.50
1.90
2022
(in years)
2.63
0.61
2.44
2023
$’000
12,630
3,455
2,062
92
18,239
879
879
2022
$’000
14,013
3,474
2,656
55
20,198
752
752
A provision has been recognised for employee entitlements relating to long service leave. In calculating the present
value of future cash flows in respect of long service leave, the probability of long service leave being taken is based
on historical data. The measurement and recognition accounting policy relating to employee benefits have been
included in note 33(l) to this report.
21. Deferred acquisition consideration
Current portion
Non-current portion
Balance at 30 June
Deferred acquisition consideration movements
Balance at 1 July
Finance costs
Change in fair value of deferred acquisition consideration (i)
Payments
Balance at 30 June
2023
$’000
7,305
-
7,305
12,746
206
-
(5,647)
7,305
2022
$’000
5,641
7,105
12,746
20,160
333
2,253
(10,000)
12,746
(i) In 2022, the directors reassessed the expected achievement of earn out targets for the 2023 financial year
associated with the acquisition of Trivantage Group, resulting in an increase in recognised deferred acquisition
consideration to the maximum amount payable under the Share Purchase Agreement. The corresponding
expense was recognised as a finance cost in the Consolidated Statement of Comprehensive Income.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
44
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
22. Capital and reserves
Share capital
Ordinary shares
Issued and fully paid
Movements in shares on issue
2023
2022
Number
$’000
Number
$’000
261,498,933
116,651
260,006,961
115,953
Balance at the beginning of the financial year
260,006,961
115,953
248,050,102
109,967
Exercise of employee performance rights, net of
transaction costs
Issue of ordinary shares under the dividend
reinvestment plan, net of transaction costs
Shares issued for the acquisition of Trivantage
Group, net of transaction costs
1,010,666
481,306
392
306
389,242
446,698
-
-
11,120,919
Balance at the end of the financial year
261,498,933
116,651
260,006,961
221
270
5,495
115,953
The Company does not have authorised capital or par value in respect of its issued shares. All shares have voting
rights and rights to dividends.
Translation reserve
The translation reserve comprises all foreign currency differences arising from the translation of the financial
statements of foreign operations.
Deferred consideration payment reserve
In 2022, the Group issued $5.5 million of ordinary shares to the selling shareholders of the Trivantage Group following
Trivantage Group successfully achieving a predetermined earnings before interest and tax target.
Share based payments reserve
The share based payments reserve records the fair value of share based payments provided to employees.
Dividends
Dividends recognised in the current year by the Group are:
Total amount
Date of payment
Cents per share
$’000
Franked
2023
Final 2022 ordinary
Interim dividend
Total amount
2022
Final 2021 ordinary
Interim dividend
Total amount
4.0
1.0
4.00
1.00
10,441
2,614
13,055
10,382
2,600
12,982
Franked
Franked
12 October 2022
5 April 2023
Franked
Franked
22 October 2021
13 April 2022
Franked dividends declared or paid during the year were franked at the tax rate of 30%.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
45
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
22. Capital and reserves (continued)
Declared after end of year
Subsequent to 30 June 2023, a dividend of 4.00 cents per share in the amount of $10.5 million, including dividends
paid to shares anticipated to be issued in respect of vested and exercisable performance rights, was proposed by
the directors. The dividend has not been provided in the financial statements.
Franking account balance
Company
2023
$’000
32,347
2022
$’000
31,688
The above available amounts are based on the balance of the dividend franking account at year-end adjusted for:
(a) franking credits that will arise from the payment of the current tax liabilities; and
(b) franking debits that will arise from the payment of dividends recognised as a liability at the year end.
The ability to utilise the franking credits is dependent upon there being sufficient available profits to declare
dividends.
23. Financial instruments
Overview
The Group has exposure to the following risks from their use of financial instruments:
• Credit risk
• Liquidity risk
• Market risk
This note presents information about the Group’s exposure to each of the above risks, their objectives, policies and
processes for measuring and managing risks, and the management of capital. Further quantitative disclosures are
included throughout this financial report.
The Board of Directors has overall responsibility for the establishment and oversight of the risk management
framework. The Board has established an Audit and Risk Management Committee, which is responsible for
overseeing how management monitors risk and for reviewing the adequacy of the risk management framework in
relation to the risks faced by the Group. The committee reports regularly to the Board of Directors on its activities.
Risk management policies are established to identify and analyse the risks faced by the Group, to set appropriate
risk limits and controls and to monitor risks and adherence to limits. Risk management policies and systems are
reviewed regularly to reflect changes in market conditions and the Group’s activities. The Group, through its training
and management standards and procedures, aims to develop a disciplined and constructive control environment
in which all employees understand their roles and obligations in relation to the management and mitigation of
these risks.
Credit risk
Credit risk is the risk of financial loss to the Group if a customer or counterparty to a financial instrument fails to
meet its contractual obligations and arises principally from the Group’s receivables from customers including
contract assets.
Exposure to credit risk
The carrying amount of the Group’s financial assets represents the maximum credit exposure. The Group’s maximum
exposure to credit risk at the reporting date was:
Cash and cash equivalents
Trade and sundry receivables (net of provision for impairment)
Contract assets
Carrying amount
2023
$’000
77,652
38,896
68,240
2022
$’000
53,083
68,353
87,233
184,788
208,669
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
46
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
23. Financial instruments (continued)
Credit risk (continued)
Cash
The Group’s cash and cash equivalents are held with major banks and financial institutions.
Trade receivables and contract assets
The Group’s exposure to credit risk is influenced mainly by the individual characteristics of each customer and
contract with customer. Geographically, the concentration of credit risk is within Australia and, by industry, the
concentration is within the commercial, infrastructure and resources sectors.
When entering into new customer contracts for service, the Group only enters into contracts with credit-worthy
companies. Management monitors the Group’s exposure on a monthly basis. In monitoring customer credit risk,
customers are grouped according to their credit characteristics, including whether they are an individual or legal
entity, aging profile, maturity and existence of previous financial difficulties.
The Group does not require collateral in respect of trade receivables and contract assets. The Group utilises trade
credit insurance against certain customers to reduce the Group’s exposure to credit risk.
The Group’s maximum exposure to credit risk for trade receivables and contract assets at the reporting date by
geographic region was:
Australia
Impairment losses
Carrying amount
2023
$’000
107,136
107,136
2022
$’000
155,586
155,586
The ageing of the Group’s trade receivables and contract assets at the reporting date was:
Contract assets – not past due
NOTE
14
Trade Receivables:
Not past due
Past due 0-30 days
Past due 30-60 days
Past due 60 days and less than 1 year
More than 1 year
Allowance for
Impairment
2023
$’000
-
Gross
2023
$’000
65,010
Gross
2022
$’000
87,233
Allowance for
Impairment
2022
$’000
-
31,120
5,433
846
1,325
586
39,310
104,320
-
-
-
-
(414)
(414)
(414)
54,565
10,057
2,298
1,421
209
68,550
155,783
-
-
-
-
(197)
(197)
(197)
The provision of $414,000 relates to expected credit losses. Impairment provision related to specific debts that are
more than one year overdue pertains to a small number of customers. The Group continues to strongly pursue all
debts provided for.
The Group has established an allowance for impairment that represents their expected credit losses in respect of
trade receivables and contract assets.
The Group recognises a provision for impairment related to expected credit losses (“ECLs”) for trade receivables,
contract assets and other debt financial assets not held at fair value through profit or loss. ECLs are based on the
difference between the contractual cash flows due in accordance with the contract and all the cash flows that the
Group expects to receive, discounted at an approximation of the original effective interest rate.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
47
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
23. Financial instruments (continued)
Credit risk (continued)
Impairment losses (continued)
For trade receivables and contract assets, the Group applies a simplified approach in calculating ECLs. Therefore
the Group does not track changes in credit risk but instead recognises a loss allowance based on lifetime ECLs at
each reporting date. The Group uses a provision matrix to calculate the ECLs. The provision matrix is established
based on the Group’s historically observed default rates. The Group calibrates the matrix to adjust historical credit
loss experience with forward looking factors specific to debtors and the economic environment where appropriate.
At every reporting date, historical default rates are updated and changes in the forward-looking estimates are
analysed.
The assessment of the correlation between historical observed default rates, forecast of economic conditions and
ECLs is a significant estimate. The amount of ECLs is sensitive to changes in circumstances and of forecasts in
economic conditions. The Group’s historical credit loss experience and forecast of economic conditions may also
not be representative of customer’s actual default in the future.
The Group considers a financial asset’s potential for default when contractual payments are more than 120 days
past due, factoring in other qualitative indicators where appropriate. Exception shall apply to financial assets
that relate to entities under common controls or covered by letter of credit or credit insurance. However, in certain
cases the Group may also consider a financial asset to be in default when internal or external information indicates
that the Group is unlikely to receive the outstanding contractual amounts in full before taking into account any
credit enhancements held by the Group. A financial asset is written off when there is no reasonable expectation of
recovering the contractual cash flows.
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
approach to managing liquidity is to ensure, as far as possible, that it will always have sufficient liquidity to meet
its liabilities when due, under both normal and stressed conditions, without incurring unacceptable losses or risking
damage to the Group’s reputation.
The Group uses project costing to assess the cash flows required for each project currently underway and entered
into. Cash flow is monitored by management using rolling forecasts and annual budgets that are reviewed monthly
at Board level.
The following are the contractual maturities of financial liabilities, including estimated interest payments and
excluding the impact of netting agreements:
Carrying
amount
$’000
Contractual
cash flows
$’000
6 months
or less
$’000
More than
6 months
up to 1
year
$’000
More than
1 year up
to 2 years
$’000
More than
2 years
up to 5
years
$’000
More
than 5
years
$’000
30 June 2023
Non-derivative financial
liabilities
Trade and other
payables
Deferred consideration
Lease liability
30 June 2022
Non-derivative financial
liabilities
Trade and other
payables
Deferred consideration
Lease liability
49,102
7,305
10,418
66,825
74,659
12,746
10,961
98,366
49,102
7,305
12,232
68,639
48,222
7,305
1,517
57,044
74,659
13,001
12,483
73,871
5,667
1,237
100,143
80,775
880
-
1,525
2,405
788
-
1,129
1,917
-
-
2,378
2,378
-
7,334
2,123
9,457
-
-
4,584
4,584
-
-
2,228
2,228
-
-
-
-
5,285
5,285
2,709
2,709
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
48
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
23. Financial instruments (continued)
Market Risk
Market risk is the risk that changes in market prices, such as foreign exchange rates, interest rates and equity
prices will affect the Group’s income or the value of its holdings of financial instruments. The objective of market
risk management is to manage and control market risk exposures within acceptable parameters, while optimising
the return.
Currency risk
The Group is exposed to currency risk on sales, purchases and borrowings that are denominated in a currency other
than the functional currency in which they are measured. The Group has no material currency risk exposures at 30
June 2023 or 30 June 2022.
In respect of other monetary assets and liabilities denominated in foreign currencies, the Group ensures that its
net exposure is kept to an acceptable level by buying or selling foreign currencies at spot rates when necessary to
address short-term imbalances.
Interest rate risk
Profile
At the reporting date the interest rate profile of the Company’s and the Group’s interest-bearing financial
instruments was:
Variable rate instruments
Financial assets
Carrying amount
2023
$’000
2022
$’000
77,652
53,083
Fair value sensitivity analysis for fixed rate instruments
The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss.
Therefore, a change in interest rates at the reporting date would not affect profit or loss.
Cash flow sensitivity analysis for variable rate instruments
A change of 100 basis points in interest rates at the reporting date would have increased (decreased) equity
and profit or loss by the amounts shown below. This analysis assumes that all other variables, in particular foreign
currency rates, remain constant. The analysis is performed on the same basis as 2023.
30 June 2023
Variable rate instruments
Cash flow sensitivity (net)
30 June 2022
Variable rate instruments
Cash flow sensitivity (net)
Profit or loss
Equity
100bp increase
$’000
100bp decrease
$’000
100bp increase
$’000
100bp decrease
$’000
1,172
1,172
1,082
1,082
(1,172)
(1,172)
(1,082)
(1,082)
-
-
-
-
-
-
-
-
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
49
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
23. Financial instruments (continued)
Interest rate risk (continued)
Fair values
Fair values versus carrying amounts
The fair values of financial assets and liabilities materially equates to the carrying values shown in the balance sheet.
Other Price Risk
The Group is not directly exposed to any other price risk.
Capital Management
The Board’s policy is to maintain a strong capital base so as to maintain investor, creditor and market confidence
and to sustain future development of the business.
The Group intends to make an annual distribution to shareholders in the form of fully franked dividends, subject to
the Group’s financial results in a given year, general business and financial conditions, the Group’s taxation position,
its working capital and future capital expenditure requirements, the availability of sufficient franking credits and any
other factors the Board considers relevant.
There were no changes in the Group’s approach to capital management during the year.
The Group is not subject to externally imposed capital requirements.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
50
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
24. Investments in subsidiaries
The consolidated financial statements include the financial statements of Southern Cross Electrical Engineering Ltd
and the subsidiaries listed in the following table.
Southern Cross Electrical Engineering (WA) Pty Ltd (i)
S&DH Enterprises Pty Ltd (i)
FMC Corporation Pty Ltd (i)
Southern Cross Electrical Engineering (Australia) Pty Ltd (i)
Hazquip Australia Pty Ltd (i)
Datatel Communications Pty Ltd (i)
Heyday5 Pty Ltd (i)
Electrical Data Projects Pty Ltd (i)
Trivantage Holdings Pty Ltd (i)
Trivantage Group Pty Ltd (i)
Trivantage Pty Ltd (i)
S.J. Electric Group Pty Ltd (i)
S.J. Electric Group (NSW) Pty Ltd (i)
S.J. Electric Group (QLD) Pty Ltd (i)
S.J. Electric (SA) Pty Ltd (i)
S.J. Electric (VIC) Pty Ltd (i)
S.J. Electric (WA) Pty Ltd (i)
Seme Solutions Pty Ltd (i)
Group CCTV Pty Ltd (i)
Central Control Sheetmetal Pty Ltd (i)
Positive Systems Pty Ltd (i)
Ladd Electric Pty Ltd (i)
SCEE Electrical Pty Ltd (i)(ii)
Southern Cross Electrical Engineering Ghana Pty Ltd
Cruz Del Sur Ingeniería Electra (Peru) S.A
Southern Cross Electrical Engineering Tanzania Pty Ltd
Country of
Incorporation
Australia
Equity Interest (%)
2023
100
2022
100
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Australia
Ghana
Peru
Tanzania
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
100
-
100
100
100
(i) These wholly-owned subsidiaries have entered into a deed of cross guarantee with Southern Cross Electrical Engineering
Limited pursuant to ASIC Corporations (wholly-owned companies) Instrument 2016/785 (Instrument) and are relieved of the
requirement to prepare and lodge an audited financial and Directors’ report.
(ii) SCEE Electrical Pty Ltd was incorporated on 29 September 2022.
a) Deed of cross guarantee
The parties to a deed of cross guarantee for the Group as listed in note 24 represent a “majority group” for the
purposes of the Instrument, as the parties not subject to the Instrument are non-trading entities. A separate
consolidated statement of comprehensive income and consolidated balance sheet of the parties to the deed
of cross guarantee have not been disclosed separately as it is not materially different to those of the Group.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
51
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
25. Interest in joint operations
At 1 July 2022, the Group had a 50% interest in KSJV Unincorporated and KSJV Australia Pty Ltd. These joint
arrangements were accounted for as joint operations. During the year the Joint Venture Agreement and
Shareholder Agreement in respect of these entities have been terminated by mutual consent and the entities
deregistered.
The Group’s share of the underlying assets and liabilities as at 30 June 2023 and 2022 and revenues and expenses
of the joint operations for the year ended 30 June 2023 and 2022, which are proportionally consolidated in the
consolidated financial statements, are not material.
26. Share-based payments
(a) Expense recognised in profit or loss
Share based payments expenses for the year comprises:
2023 Performance Rights
2022 Performance Rights
2021 Performance Rights
2020 Performance Rights
(i)
(ii)
(iii)
2023
$’000
(279)
(151)
(224)
-
(654)
2022
$’000
-
(225)
(224)
(195)
(644)
The amount recognised is adjusted to reflect the number of awards for which the related service and non-market
performance conditions are expected to be met, such that the amount ultimately recognised is based on the
number of awards that meet the related service and non-market performance conditions at the vesting date.
(i) 2023 Performance Rights
During the year Performance Rights were offered to key management personnel and senior management under
the terms of the Senior Management Long Term Incentive Plan. The terms and conditions of the Performance
Rights are as follows.
Grant date / employees entitled
Performance rights issued to senior
management on 4 November 2022
Performance rights issued to key
management on 4 November 2022
Total /performance rights granted
Number of
instruments
421,756
1,604,348
2,026,104
Vesting conditions
Employed on 30 June 2025 and exceed
performance hurdle
Employed on 30 June 2025 and exceed
performance hurdle
Performance
period
36 months
36 months
During the year 223,930 of the granted 2023 Performance Rights were forfeited.
Up to 100% of the allocated performance rights may vest, subject to the achievement of the performance
conditions. The key terms of the performance rights are as set out below:
• Performance testing over a three-year period from 1 July 2022 to 30 June 2025 (“Performance Period”);
• No performance rights will vest until 30 June 2025, other than in circumstances as set out below;
• Performance testing criteria are 50% against Absolute Total Shareholder Return (“TSR”) performance, and 50%
• Expiry on the 4th anniversary of the grant date unless an earlier lapsing date applies.
against Earnings Per Share (“EPS”) performance; and
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
52
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
26. Share-based payments (continued)
(a) Expense recognised in profit or loss (continued)
The TSR formula is:
((Share Price at Test Date – Share Price at Start Date) + (Dividends Received))/Share Price at Start Date
TSR will be assessed against targets for threshold performance of 8% per annum compounded over the
Performance Period and for stretch performance of 12% per annum compounded over the Performance Period.
The vesting schedule is as follows for TSR performance over the Performance Period:
Less than 8% per annum compounded
8% per annum compounded
0% vesting
50% vesting
Between 8% and 12% per annum compounded
Pro-rata vesting between 50% and 100%
At or above 12% per annum compounded
100% vesting
EPS performance will be measured in the 2025 financial year. For the purposes of performance testing the
Performance Rights, EPS in the 2025 financial year will be the Basic EPS for the year, as prescribed by the accounting
standards and set out in the Company’s Financial Reports, adjusted to remove the following non-cash items from
the calculation of profit or loss attributable to ordinary shareholders in the year, in order to reflect the company’s
underlying profitability:
(a) amortisation of acquired intangibles;
(b) unwinding of interest on deferred acquisition consideration payments;
(c) adjustments to the assessment of deferred consideration payable; and
(d) acquisition costs.
EPS, as described above, will be assessed against targets for threshold performance of 9.70 cents per share in the
2025 financial year and for stretch performance of 10.82 cents per share in the 2025 financial year. The vesting
schedule is as follows for EPS performance in the 2025 financial year:
Less than 9.70 cents per share
10.82 cents per share
Between 9.70 and 10.82 cents per share
At or above 10.82 cents per share
0% vesting
50% vesting
Pro-rata vesting between 50% and 100%
100% vesting
Under the terms of the LTI Plan up to 50% of vested performance rights may be exercised for cash at the
participants discretion with the balance exercised for one ordinary share per vested performance right.
Where a participant ceases employment prior to the vesting of their share options or performance rights, the share
options or performance rights are forfeited unless in the event of retirement, permanent disablement or death the
Board, at their absolute discretion, waive the exercise and vesting conditions associated with the performance
rights or allow the performance rights to continue to be assessed over the original performance assessment period.
In the event of a change of control of the Company, all options and performance rights that have not lapsed may
be exercised.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
53
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
26. Share-based payments (continued)
(a) Expense recognised in profit or loss (continued)
(ii) 2022 Performance Rights
There were 1,317,170 financial year 2022 Performance Rights on issue at 1 July 2022. No 2022 Performance Rights
were granted, none vested and 224,052 were forfeited during the year.
The 2022 Performance Rights will be performance tested over a three-year period from 1 July 2021 to 30 June
2024. The hurdles used to determine performance are Absolute Total Shareholder Return (TSR) and Earnings per
Share (EPS) performance.
(iii) 2021 Performance Rights
There were 1,719,954 financial year 2021 Performance Rights on issue at 1 July 2021. No 2021 Performance Rights
were granted, none vested and none were forfeited during the year.
The 2021 Performance Rights will be performance tested over a three-year period from 1 July 2020 to 30 June
2023. The hurdles used to determine performance are Absolute Total Shareholder Return (TSR) and Earnings
per Share (EPS) performance. Subsequent to the year end it has been determined that 100% of the 2021
Performance Rights have vested.
(b) Measurement of fair values
The fair value of the TSR Performance Rights has been measured using the Monte-Carlo simulation. The EPS
Performance Rights have been measured using the Binomial Tree Methodology.
The inputs used in the measurement of the fair values at grant date were as follows:
The performance rights issued were granted in one tranche as follows:
Grant date
Vesting date
Share price at grant date
Expected life
Volatility
Risk free interest rate
Dividend yield
Fair value of TSR component
Fair value of EPS component
2023
4 November 2022
2022
5 November 2021
30 June 2025
30 June 2024
$0.67
2.7 years
32%
3.29%
5.9%
$0.37
$0.58
$0.55
2.7 years
36%
0.82%
5.7%
$0.41
$0.61
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
54
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
26. Share-based payments (continued)
(c) Reconciliation of outstanding performance rights
The number of performance rights under the programmes were as follows:
Outstanding at 1 July
Granted during the year
Exercised during the year (i)
Forfeited or withdrawn during the year(ii)
Outstanding at 30 June
Vested and exercisable at 30 June
2023
2022
Number of rights Number of rights
4,232,908
4,539,453
2,026,104
(1,472,282)
(478,029)
4,615,246
-
1,317,170
(505,313)
(505,312)
4,539,453
-
(i) The performance rights exercised during the year were the financial year 2020 Performance Rights which were performance
tested on finalisation of the 2022 financial year results with 98% of these performance rights vesting. Included in the total are
461,616 performance rights which were exercised for cash.
(ii) The performance rights forfeited during the year were the financial year 2020 Performance Rights which did not achieve the
vesting conditions and performance rights in respect of the 2022 and 2023 financial years which were forfeited as the vesting
conditions are incapable of being achieved due to cessation of employment.
Subsequent to 30 June 2023, the vesting conditions in respect of the 2021 Performance Rights have been
performance tested and it has been determined that all 1,719,954 of the 2021 Performance Rights have vested.
27. Reconciliation of cash flows from operating activities
Profit for the year
Adjustments for:
Depreciation and amortisation
Loss/(profit) on sale of property, plant and equipment and other
Equity-settled share-based payment transactions
Other
(Increase)/decrease in assets:
Trade and other receivables
Inventories
Prepayments
Increase/(decrease) in liabilities:
Trade and other payables
Provisions and employee benefits
Deferred acquisition consideration
Income tax payable
Deferred income tax
Net cash from operating activities
2023
$’000
20,091
8,654
(486)
654
(185)
51,680
130
(3,674)
(29,758)
(1,832)
206
10,196
(7,505)
48,171
2022
$’000
15,269
8,666
227
644
(40)
(2,929)
410
(87)
8,679
2,667
2,586
(5,551)
(869)
29,674
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
55
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
28. Contingencies
The directors are of the opinion that provisions are not required in respect of these matters, as it is not probable
that a future sacrifice of economic benefits will be required or the amount is not capable of reliable measurement.
Bank Guarantees and Surety Bonds
2023
$’000
56,583
2022
$’000
63,018
Bank Guarantees and Surety Bonds are provided to customers for safeguarding contract performance. Total
bank guarantee facilities at 30 June 2023 were $49.7 million (2022: $50.4 million) and the unused portion was $19.0
million (2022: $17.2 million). These facilities are subject to annual review. Total surety bonds facilities at 30 June 2023
were $65.5 million (2022: $66.2 million) and the unused portion was $39.6 million (2022: $36.3 million). These facilities
are subject to annual review. The Group is restricted to drawing down at any one time to a maximum capacity
of $100.0m combined across its bank guarantee and bond facilities meaning there was a headroom of bank
guarantee and surety bond capacity of $43.4m at 30 June 2023 (2022: $36.9m). All facilities are set to mature
prior to 30 June 2024. It is management’s intention to review these facilities at maturity so as to maintain a level
appropriate to support the ongoing business of the Group.
Other contingent liabilities
The Group is currently managing a number of claims and a voluntary mediation process in relation to construction
contracts. The directors are of the opinion that disclosure of any further information relating to these claims and
mediation process would be prejudicial to the interests of the Group.
29. Subsequent events
Dividend declared
On 29 August 2023 the Directors of Southern Cross Electrical Engineering Limited declared a final dividend on
ordinary shares in respect of the 2023 financial year. The total amount of the dividend is $10.5 million, which
represents a fully franked final dividend of 4 cents per share. This dividend has not been provided for in the 30 June
2023 financial statements. The Southern Cross Electrical Engineering Limited Dividend Reinvestment Plan will apply
to the dividend.
Otherwise, there are no matters or circumstances that have arisen since the end of the financial year which
significantly affected or may significantly affect the operations of the consolidated entity, the results of those
operations, or the state of affairs of the consolidated entity in subsequent financial years.
30. Auditor’s remuneration
Remuneration of KPMG Australia as the auditor of the parent entity for:
- Auditing or reviewing the financial report
500
500
475
475
For the financial year ending 30 June 2023, the auditor for the Group is engaged by the parent company.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
56
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
31. Parent entity disclosures
As at, and throughout, the financial year ending 30 June 2023 the parent company of the consolidated entity was
Southern Cross Electrical Engineering Limited.
Result of the parent entity
Profit for the period
Total comprehensive loss for the period
Financial position of parent entity at year end
Current assets
Total assets
Current liabilities
Total liabilities
Total equity of the parent entity comprising:
Share capital
Reserves
Accumulated profits/(losses)
Total Equity
Parent entity contingencies:
2023
$’000
49,979
49,979
22,675
159,076
(8,580)
(37,426)
116,651
990
4,009
121,650
2022
$’000
1,240
1,240
96,391
243,226
(134,340)
(159,276)
115,953
922
(32,925)
83,950
The parent entity has contingent liabilities which are included in note 28. At 30 June 2023, there were in existence
guarantees of performance of a subsidiary.
32. Related parties
Transactions with key management personnel
(i) Key management personnel compensation
Key management personnel compensation comprised the following:
Short-term employee benefits
Post-employment benefits
Share-based payments
2,352
95
580
3,027
1,964
98
473
2,535
Compensation of the Group’s key management personnel includes salaries, short term incentives and
non-cash benefits from a long-term incentive scheme (see note 26 (a)(i)).
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
57
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
33. Significant accounting policies
The accounting policies applied by the Group in this financial report are the same as those applied by the Group in
its consolidated financial report as at and for the year ended 30 June 2022.
The Group did not early adopt any standard, interpretation or amendment that has been issued but is not yet effective.
The Group did not adopt any new standard and amendments or interpretation to standards from 1 July 2022 which
had a material effect on the financial position or performance of the Group.
(a) Basis of consolidation
(i) Subsidiaries
Subsidiaries are entities controlled by the Group. The Group controls an entity when it is exposed to, or
has rights to, variable returns from its involvement with the entity and has the ability to affect these returns
through power over the entity. The financial statements of subsidiaries are included in the consolidated
financial statements from the date that control commences until the date control ceases. The accounting
policies of subsidiaries have been changed when necessary to align them with the policies adopted by the
Group.
(ii) Interest in a joint arrangement
The Group has interests in joint arrangements which are classified as joint operations, which are jointly
controlled entities, whereby the ventures have a contractual arrangement that establishes joint control
over the economic activity of the entities. The Group recognises its right to the underlying assets and
obligations for liabilities and are accounted for by recognising the share of those assets and liabilities. The
Group combines its proportionate share of each of the assets, liabilities, income and expenses which are
accounted for by separately recognising the Group’s share of underlying assets and liabilities of the joint
arrangement with similar items, line by line, in its consolidated financial statements.
(iii) Transactions eliminated on consolidation
Intra-group balances and any unrealised income and expenses arising from intra-group transactions are
eliminated in preparing the consolidated financial statements. Unrealised gains arising from transactions
with equity accounted investees are eliminated against the investments to the extent of the Group’s interest
in the investee. Unrealised losses are eliminated in the same way as unrealised gains, but only to the extent
that there is no evidence of impairment.
(b) Foreign currency
(i) Foreign currency transactions
Transactions in foreign currencies are translated to the respective functional currencies of Group entities
at exchange rates at the dates of the transactions. Monetary assets and liabilities denominated in foreign
currencies at the reporting date are retranslated to the functional currency at the foreign exchange rate at
that date. The foreign currency gain or loss on monetary items is the difference between amortised cost in
the functional currency at the beginning of the period, adjusted for effective interest and payments during
the period, and the amortised cost in foreign currency translated at the exchange rate at the end of the
period. Non-monetary assets and liabilities denominated in foreign currencies that are measured at fair
value are retranslated to the functional currency at the exchange rate at the date that the fair value was
determined. Foreign currency differences arising on retranslation are recognised in profit or loss.
(ii) Foreign operations
The assets and liabilities of foreign operations, including goodwill and fair value adjustments arising on
acquisition, are translated to Australian dollars at exchange rates at the reporting date. Income and expenses
of foreign operations are translated to Australian dollars at exchange rates at the dates of the transactions.
Foreign currency differences are recognised in other comprehensive income and presented in the foreign
currency translation reserve. When a foreign operation is disposed of, in part or in full, the relevant amount in
the foreign currency translation reserve is transferred to profit or loss.
Foreign exchange gains and losses arising from a monetary item receivable from or payable to a foreign
operation, the settlement of which is neither planned nor likely in the foreseeable future, are considered to
form part of a net investment in a foreign operation and are recognised in other comprehensive income and
presented in the foreign currency translation reserve in equity.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
58
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
33. Significant accounting policies (continued)
(c) Cash and cash equivalents
Cash and cash equivalents in the balance sheet comprise cash at bank and on hand and short-term deposits
with an original maturity of three months or less that are readily convertible to known amounts of cash and
which are subject to an insignificant risk of changes in fair value.
For the purposes of the Statement of Cash Flows, cash and cash equivalents consist of cash and cash
equivalents as defined above, net of outstanding bank overdrafts.
(d) Financial instruments
(i) Non-derivative financial assets
The Group initially recognises non-derivative financial assets on the date that they are originated. All other
financial assets (including assets designated at fair value through profit or loss) are recognised initially on
the trade date at which the Group becomes a party to the contractual provisions of the instrument.
The Group derecognises a financial asset when the contractual rights to the cash flows from the asset
expire, or it transfers the rights to receive the contractual cash flows on the financial asset in a transaction
which substantially all the risks and rewards of ownership of the financial asset are transferred. Any interest
in transferred financial assets that is created or retained by the Group is recognised as a separate asset or
liability.
Financial assets and liabilities are offset and the net amount presented in the balance sheet when, and
only when, the Group has a legal right to offset the amounts and intends either to settle on a net basis
or to realise the asset and settle the liability simultaneously.
Financial liabilities are recognised initially at fair value plus any directly attributable transaction costs.
Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the
effective interest rate method.
The Group has the following non-derivative financial assets:
• Financial assets at amortised cost
• Cash and cash equivalents
Financial assets at amortised cost
• Financial assets at amortised cost are receivables with fixed or determinable payments that are not
quoted in an active market. Such assets are recognised initially at fair value plus any directly attributable
transaction costs. Subsequent to initial recognition, these financial assets are measured at amortised
cost using the effective interest method, less any impairment losses.
• Financial assets at amortised cost comprise trade and other receivables (see note 12).
(ii) Non-derivative financial liabilities
Financial liabilities are recognised initially on the trade date at which the Group becomes party to the
contractual provisions of the instrument. The Group derecognises a financial liability when its contractual
obligations are discharged or cancelled or expire. Financial assets and liabilities are offset and the net
amount presented in the balance sheet when, and only when, the Group has a legal right to offset
the amounts and intends either to settle on a net basis or to realise the asset and settle the liability
simultaneously.
Financial liabilities are recognised initially at fair value plus any directly attributable transaction costs.
Subsequent to initial recognition, these financial liabilities are measured at amortised cost using the
effective interest rate method.
The Group’s non-derivative financial liabilities comprise Lease liability, Deferred acquisition consideration
and Trade and other payables.
(iii) Share capital
Ordinary shares
Ordinary shares are classified as equity. Incremental costs directly attributable to the issue of ordinary
shares and share options are recognised as a deduction from equity, net of any tax effects.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
59
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
33. Significant accounting policies (continued)
(e) Property, plant and equipment
(i) Recognition and measurement
Items of property, plant and equipment are measured at cost less accumulated depreciation and
accumulated impairment losses.
Cost includes expenditure that is directly attributable to the acquisition of the asset. The cost of self-
constructed assets includes the cost of materials and direct labour, any other costs directly attributable to
bringing the asset to a working condition for its intended use, and the costs of dismantling and removing
the items and restoring the site on which they are located. Purchased software that is integral to the
functionality of the related equipment is capitalised as part of that equipment. Borrowing costs related to
the acquisition or construction of qualifying assets are recognised as part of the asset.
When parts of an item of property, plant and equipment have different useful lives, they are accounted for
as separate items of property, plant and equipment.
Gains and losses on disposal of an item of property, plant and equipment are determined by comparing the
proceeds from disposal with the carrying amount of property, plant and equipment and are recognised net
within “Other income” in profit or loss.
(ii) Subsequent costs
The cost of replacing part of an item of property, plant and equipment is recognised in the carrying
amount of the item if it is probable that the future economic benefits embodied within the part
will flow to the Group and its cost can be measured reliably. The carrying amount of the replaced
part is derecognised. The costs of the day-to-day servicing of property, plant and equipment are
recognised in profit or loss as incurred.
(iii) Depreciation
Depreciation is calculated over the depreciable amount, which is the cost of an asset, or other amount
substituted for cost, less its residual value.
Depreciation is recognised in profit or loss on a diminishing value basis over the estimated useful life of each
part of an item of property, plant and equipment, since this most closely reflects the expected pattern of
consumption of the future economic benefits embodied in the asset.
Leasehold assets are depreciated over the shorter of the lease term and their useful lives unless it
is reasonably certain that the Group will obtain ownership by the end of the lease term. Land is not
depreciated.
The estimated useful lives for the current and comparative periods are as follows:
Buildings
Leasehold improvements
Plant and equipment
Motor vehicles
Office furniture and fittings
40 years
3 – 40 years
2 – 20 years
2 – 10 years
2 – 20 years
Depreciation methods, useful lives and residual values are reviewed at each reporting date.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
60
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
33. Significant accounting policies (continued)
(f)
Intangible assets
(i) Goodwill
Goodwill is measured at cost less accumulated impairment losses. The Group measures goodwill at the
acquisition date as:
• the fair value of the consideration transferred; plus
• the recognised amount of any non-controlling interests in the acquiree; plus
• if the business combination is achieved in stages, the fair value of the existing equity interest in the
• the net recognised amount (generally fair value) of the identifiable assets acquired and liabilities assumed.
acquiree; less
(ii) Other intangible assets
Other intangible assets that are acquired by the Group and have finite useful lives are measured at cost
less accumulated amortisation and accumulated impairment losses.
(iii) Subsequent expenditure
Subsequent expenditure is capitalised only when it increases the future economic benefits embodied in
the specific asset to which it relates. All other expenditure including expenditure on internally generated
goodwill and brands is recognised in profit or loss as incurred.
(iv) Amortisation
Amortisation is calculated over the cost of the asset, or another amount substituted for cost, less its residual
value.
Amortisation is recognised in profit or loss on a straight-line basis over the estimated useful lives of
intangible assets, other than goodwill, from the date that they are available for use, since this most closely
reflects the expected pattern of consumption of the future economic benefits embodied in the asset. The
estimated useful lives for the current period are as follows:
• Customer contracts
2023
2022
1 – 5 years
1 – 5 years
Amortisation methods, useful lives and residual values are reviewed at each financial year-end and
adjusted if appropriate.
(g) Leases
The Group recognises lease assets and lease liabilities in accordance with AASB 16 - Leases for accounting its
leases previously classified as operating leases other than those leases with short-term, i.e. twelve months or
less, and/or of low-value, i.e. less than $7,000.
Leased assets
The right-of-use asset recognised by the Group comprise the initial measurement of the related lease liability,
any lease payments made at or before the commencement of the contract, less any lease incentives received
and any direct costs. Costs incurred by the Group to dismantle the asset, restore the site or restore the asset
are included in the cost of the right-of-use asset.
Subsequently, right-of-use asset is measured at cost less any accumulated amortisation and impairment losses
and adjusted for certain remeasurements of the lease liability. The Group amortises the right-of-use assets on
a straight-line basis from the lease commencement date to the end of the useful life of the underlying asset or
the end of the lease term, whichever is earlier.
If the recoverable amount of a right-of-use asset is less than its carrying value, an impairment charge is
recognised in the profit or loss and the carrying value of the asset is written down to its recoverable amount.
Short-term or low-value operating leases subject to recognition exemption under AASB 16 are not
recognised in the Balance Sheet. The costs incurred during the period related to these leases are
recognised in the profit or loss.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
61
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
33. Significant accounting policies (continued)
(g) Leases (continued)
Lease liabilities
The lease liability is initially measured at the present value of the lease payments that are not paid at
the commencement date, discounted by using the rate implicit in the lease. If this rate cannot be readily
determined, the Group uses its incremental borrowing rate.
The lease liability is separately disclosed on the statement of financial position. The liabilities which will be
repaid within twelve months are recognised as current and the liabilities which will be repaid in excess of
twelve months are recognised as non-current. The lease liability is subsequently measured by reducing the
balance to reflect the principal lease repayments made and increasing the carrying amount by the interest
on the lease liability.
The Group remeasures the lease liability and makes an adjustment to the right-of-use asset in the following
instances:
• The term of the lease has been modified or there has been a change in the Group’s assessment of the
purchase option being exercised, in which case the lease liability is remeasured by discounting the revised
lease payments using a revised discount rate; or
• 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 by discounting the revised lease payments using a revised discount
rate; or
• The lease payments are adjusted due to changes in the index or a change in expected payment under a
guaranteed residual value, in which cases the lease liability is remeasured by discounting the revised lease
payments using the initial discount rate.
However, if a change in lease payments is due to a change in a floating interest rate, a revised discount rate is
used.
Lease and non-lease components of a contract are accounted for separately. Non-lease components of the
lease payments are expensed as incurred and are not included in determining the present value.
The Group determines the lease term as the non-cancellable term of the lease, together with any periods
covered by an option to extend the lease if it is reasonably certain to be exercised, or any periods covered by
an option to terminate the lease, if it is reasonably certain not to be exercised.
The Group has the option, under some of its leases to lease the assets for additional periods. The Group
applies judgement in evaluating whether it is reasonably certain to exercise the option to renew and considers
all relevant factors that create an economic incentive for it to exercise the renewal. After the commencement
date, the Group reassesses the lease term if there is a significant event or change in circumstances that is
within its control and affects its ability to exercise (or not to exercise) the option to renew.
(h)
Inventories
Inventories are measured at the lower of cost and net realisable value. The cost of inventories is based on
the first-in first-out principle, and includes expenditure incurred in acquiring the inventories, production or
conversion costs and other costs incurred in bringing them to their existing location and condition. In the case
of work in progress, cost includes an appropriate share of production overheads based on normal operating
capacity.
Net realisable value is the estimated selling price in the ordinary course of business, less the estimated costs of
completion and selling expenses.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
62
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
33. Significant accounting policies (continued)
(i) Contract assets
Contract assets represents construction work equal to the gross unbilled amount expected to be collected
from customers for contract work performed to date. It is measured at cost plus profit recognised to date (note
33(n)) less progress billings and recognised losses. Cost includes all expenditure related directly to projects
and an allocation of fixed and variable overheads incurred in the Group’s contract activities based on normal
operating capacity.
If payments received from customers exceed the income recognised, then the difference is presented as
contract liabilities in Trade and other payables on the balance sheet.
Payments from customers are received based on a billing schedule or milestone basis, as established in our
contracts.
(j) Assets held for sale
Non-current assets, or disposal groups comprising assets and liabilities, are classified as held-for-sale if it is
highly probable that they will be recovered primarily through sale rather than through continuing use.
Such assets, or disposal groups, are generally measured at the lower of their carrying amount and fair
value less costs to sell. Any impairment loss on a disposal group is allocated first to goodwill, and then
to the remaining assets and liabilities on a pro rata basis, except that no loss is allocated to inventories,
financial assets, deferred tax assets, employee benefit assets which continue to be measured in
accordance with the Group’s other accounting policies. Impairment losses on initial classification as held-
for-sale and subsequent gains and losses on re-measurement are recognised in profit or loss.
Once classified as held-for-sale, intangible assets and property, plant and equipment are no longer amortised
or depreciated, and any equity-accounted investee is no longer equity accounted.
(k) Impairment
(i) Financial assets
A financial asset not carried at fair value through the profit or loss is assessed at each reporting date to
determine whether there is objective evidence that it is impaired. A financial asset is impaired if objective
evidence indicates that a loss event has occurred after the initial recognition of the asset, and that the loss
event had a negative effect on the estimated future cash flows of the asset that can be estimated reliably.
Objective evidence that a financial asset (including equity securities) is impaired can include default or
delinquency by a debtor, restructuring of an amount due to the Group on terms that the Group would not
consider otherwise, indications that a debtor or issuer will enter bankruptcy and the disappearance of an
active market for a security. In addition, for an investment in an equity security, a significant or prolonged
decline in its fair value below its cost is objective evidence of impairment.
The Group considers evidence of impairment for receivables at both a specific asset level and collective
level (see note 23). All individually significant receivables are assessed for specific impairment. All individually
significant receivables found not to be specifically impaired are then collectively assessed for any
impairment that has been incurred but not yet identified. Receivables that are not individually significant
are collectively assessed for impairment by grouping together receivables with similar risk characteristics.
In assessing collective impairment, the Group uses historical trends of the probability of default, timing of
recoveries and the amount of loss incurred, adjusted for management’s judgement as to whether current
forward-looking economic and credit conditions are such that actual losses are likely to be greater or less
than suggested by historical trends (see note 23).
An impairment loss in respect of a financial asset measured at amortised cost is calculated as the
difference between its carrying amount and the present value of the estimated future cash flows,
discounted at the original effective interest rate. Losses are recognised in profit or loss and reflected in an
allowance account against receivables. When a subsequent event causes the amount of impairment loss to
decrease, the decrease in impairment loss is reversed through profit or loss.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
63
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
33. Significant accounting policies (continued)
(k)
Impairment (continued)
(ii) Non-financial assets
The carrying amounts of the Group’s non-financial assets, other than inventories and deferred tax assets,
are reviewed at each reporting date to determine whether there is any indication of impairment. If any such
indication exists, then the asset’s recoverable amount is estimated. For goodwill, the recoverable amount is
estimated each year at the same time.
The recoverable amount of an asset or cash-generating unit is the greater of its value in use and its fair
value less costs to sell. In assessing value in use, the estimated future cash flows are discounted to their
present value using a pre-tax discount rate that reflects current market assessments of the time value
of money and the risks specific to the asset. For the purpose of impairment testing, assets are grouped
together into the smallest group of assets that generates cash inflows from continuing use that are largely
independent of the cash inflows of other assets or groups of assets (a “cash-generating unit”). The goodwill
acquired in a business combination, for the purpose of impairment testing, is allocated to the cash-
generating units that are expected to benefit from the synergies of the combination.
An impairment loss is recognised if the carrying amount of an asset or its cash-generating unit exceeds its
recoverable amount. Impairment losses are recognised in profit or loss. Impairment losses recognised based
on cash-generating units are allocated first to reduce the carrying amount of any goodwill allocated to the
units and then to reduce the carrying amount of the other assets in the units on a pro rata basis.
An impairment loss in respect of goodwill is not reversed. In respect of other assets, impairment losses
recognised in prior periods are assessed at each reporting date for any indications that the loss has
decreased or no longer exists. An impairment loss is reversed if there has been a change in the estimates
used to determine the recoverable amount. An impairment loss is reversed only to the extent that the
asset’s carrying amount does not exceed the carrying amount that would have been determined, net of
depreciation or amortisation, if no impairment loss had been recognised.
(l) Employee benefits
(i) Long-term benefits
The Group’s net obligation in respect of long-term employee benefits is the amount of future benefit
that employees have earned in return for their service in the current and prior periods plus related on-
costs. These benefits are then discounted to determine their present value. The discount rate is the yield
at the reporting date on high quality corporate bonds or government bonds that have maturity dates
approximating the terms of the Group’s obligations and that are denominated in the same currency in
which the benefits are expected to be paid. The calculation is performed using the Projected Unit Credit
Method.
(ii) Termination benefits
Termination benefits are recognised as an expense when the Group is demonstrably committed, without
realistic possibility of withdrawal, to a formal detailed plan to either terminate employment before the
normal retirement date or to provide termination benefits as a result of an offer made to encourage
voluntary redundancy. Termination benefits for voluntary redundancies are recognised as an expense if the
Group has made an offer encouraging voluntary redundancy, it is probable that the offer will be accepted,
and the number of acceptances can be estimated reliably.
(iii) Short-term benefits
Short-term employee benefit obligations are measured on an undiscounted basis and are expensed as the
related service is provided.
A liability is recognised for the amount expected to be paid under short-term cash bonus or profit-sharing
plans if the Group has a present legal or constructive obligation to pay this amount as a result of past
service provided by the employee and the obligation can be estimated reliably.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
64
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
33. Significant accounting policies (continued)
(l) Employee benefits (continued)
(iv) Share-based payment transactions
The fair value of performance rights and share options granted to employees is recognised at grant date
as an employee expense, with a corresponding increase in equity, over the period that the employees
become unconditionally entitled to the performance rights and share options. The amount recognised
as an expense is adjusted to reflect the number of awards for which the related service and non-market
performance conditions are expected to be met, such that the amount ultimately recognised as an
expense is based on the number of awards that meet the related service and non-market performance
conditions at the vesting date.
(m) Provisions
A provision is recognised if, as a result of a past event, the Group has a present legal or constructive obligation
that can be estimated reliably, and it is probable that an outflow of economic benefits will be required to settle
the obligation. Provisions are determined by discounting the expected future cash flows at a pre-tax rate
that reflects current market assessments of the time value of money and the risks specific to the liability. The
unwinding of the discount is recognised as finance cost.
(n) Revenue
Revenue recognition accounting policy
The Group applies two approaches to recognising revenue to contracts with customers: either at a point in
time or over time, depending on the manner the customer obtains control of the goods or services. Revenue is
recognised over time if one of the following is met:
• The customer simultaneously receives and consumes the benefits as the Group performs;
• The customer controls the asset as the Group creates or enhances it; or
• The Group’s performance does not create an asset for which the Group has an alternative use and there is a
right to payment for the performance to date.
Revenue from contracts is recognised in a manner that depicts the transfer of promised goods or services to
customers in an amount that reflects the consideration to which the group expects to be entitled in exchange
for the goods or services. The following are the steps in determining revenue from contracts as prescribed by
the Five (5) Step Revenue Recognition Model introduced by AASB 15:
1)
Identify the contract(s) with a customer
2) Identify the performance obligations in the contract
3) Determine the transaction price
4) Allocate the transaction price to the performance obligations in the contract
5) Recognise revenue when (or as) the entity satisfies a performance obligation
Judgement is required in determining the timing of the transfer of control, at a point in time or over time, as well
as in each of the five enumerated steps in the revenue recognition model above.
(i) Construction revenue
The benefits being provided by the Group’s construction work transfer to the customer as the work is
performed and as such revenue is recognised over the duration of the project based on percentage
complete. Percentage complete is generally measured according to the proportion of contract costs
incurred for work performed to date relative to the estimated total contract costs (input method). If this
would not be representative of the stage of completion, then it is measured by reference to surveys of work
performed (output method).
When it is probable that total contract costs will exceed total contract revenue, the unavoidable loss is
recognised as an expense immediately.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
65
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
33. Significant accounting policies (continued)
(n) Revenue (continued)
(ii) Services revenue
The Group performs maintenance and other services for a variety of different sectors. Typically, under the
performance obligations of a service contract, the customer consumes and receive the benefit of the
service as it is provided. As such, service revenue is recognised over time as the services are provided.
(iii) Contract modifications
Revenue in relation to modifications, such as a change in the scope or price (or both) of the contract, are to
be included in the contract price when it is approved by the parties to the contract and the modification
is enforceable. Approval of a contract modification can be in writing, by oral agreement or implied by
customary business practices.
Revenue estimated and recognised in relation to claims and variations is only included in the contract price
to the extent that it is highly probable that a significant reversal in the amount recognised will not occur.
In making this assessment the Group considers a number of factors, including the nature of the claim, formal
or informal acceptance by the customer of the validity of the claim, the stage of negotiations, assessments
by independent experts and the historical outcome of similar claims to determine whether the enforceable
and “highly probable” thresholds have been met.
(iv) Performance obligations
Revenue is allocated to each performance obligation and recognised as the performance obligation is
satisfied which may be at a point in time or over time.
AASB 15 requires a detailed and technical approach to identify the different revenue streams (i.e. performance
obligations) in a contract. This is done by identifying the different activities that are being undertaken and
then aggregating only those where the different activities are significantly integrated or highly interdependent.
Revenue is to be continuously recognised, on certain contracts over time, as a single performance obligation
when the services are part of a series of distinct goods and services that are substantially integrated with the
same pattern of transfer.
The term over which revenue may be recognised is limited to the period for which the parties have
enforceable rights and obligations. When the customer can terminate a contract for convenience (without a
substantive penalty), the contract term and related revenue is limited to the termination period.
The Group has elected to apply the practical expedient to not adjust the total consideration over the
contract term for the effect of a financing component if the period between the transfer of services to
the customer and the customer’s payment for these services is expected to be one year or less.
(v) Variable consideration
Variable consideration includes performance or other incentive fees or penalties associated with
contracts. If the consideration in the contract includes a variable amount, the Group estimates the
amount of the consideration to which it is entitled in exchange for transferring the goods and services
to the customer. The variable consideration is estimated at contract inception and constrained to the
extent that it is highly probable that a significant reversal in the amount recognised will not occur when
the associated uncertainty with the variable consideration is subsequently resolved.
All revenue is stated net of the amount of goods and services tax (GST).
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
66
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
33. Significant accounting policies (continued)
(o) Finance income and expenses
Finance income comprises interest income on funds invested. Interest income is recognised as it accrues in
profit or loss, using the effective interest method.
Finance expenses comprise interest expense on borrowings, bank charges and lease payments. Borrowing
costs that are not directly attributable to the acquisition, construction or production of a qualifying asset are
recognised in profit or loss using the effective interest rate method.
Foreign currency gains and losses are reported on a net basis.
(p) Income tax
Income tax expense comprises current and deferred tax. Income tax expense is recognised in profit or loss
except to the extent that it relates to items recognised directly in equity, in which case it is recognised in
equity. Current tax is the expected tax payable on the taxable income for the year, using tax rates enacted or
substantively enacted at the reporting date, and any adjustment to tax payable in respect of previous years.
Deferred tax is recognised using the balance sheet method, providing for temporary differences between the
carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for taxation
purposes. Deferred tax is not recognised for the following temporary differences: the initial recognition of assets
or liabilities in a transaction that is not a business combination and that affects neither accounting nor taxable
profit, and differences relating to investments in subsidiaries and jointly controlled entities to the extent that
it is probable that they will not reverse in the foreseeable future. In addition, deferred tax is not recognised for
taxable temporary differences arising on the initial recognition of goodwill. Deferred tax is measured at the tax
rates that are expected to be applied to the temporary differences when they reverse, based on the laws that
have been enacted or substantively enacted by the reporting date. Deferred tax assets and liabilities are offset
if there is a legally enforceable right to offset current tax liabilities and assets and they relate to income taxes
levied by the same tax authority on the same taxable entity, or on different tax entities, but they intend to settle
current tax liabilities and assets on a net basis or their tax assets and liabilities will be realised simultaneously.
A deferred tax asset is recognised to the extent that it is probable that future taxable profits will be available
against which the temporary difference can be utilised. Deferred tax assets are reviewed at each reporting
date and are reduced to the extent that it is no longer probable that the related tax benefit will be realised.
Additional income taxes that arise from the distribution of dividends are recognised at the same time as the
liability to pay the related dividend is recognised.
(q) Goods and services tax
Revenue, expenses and assets are recognised net of the amount of goods and services tax (“GST”), except
where the amount of GST incurred is not recoverable from the taxation authority. In these circumstances, the
GST is recognised as part of the cost of acquisition of the asset or as part of the expense.
Receivables and payables are stated with the amount of GST included. The net amount of GST recoverable
from, or payable to, the ATO is included as a current asset or liability in the balance sheet.
Cash flows are included in the statement of cash flows on a gross basis. The GST components of cash flows
arising from investing and financing activities which are recoverable from, or payable to, the ATO are classified
as operating cash flows.
(r) Earnings per share
The Group presents basic and diluted earnings per share (“EPS”) data for its ordinary shares. Basic EPS is
calculated by dividing the profit or loss attributable to ordinary shareholders of the Company by the weighted
average number of ordinary shares outstanding during the period. Diluted EPS is determined by adjusting
the profit or loss attributable to ordinary shareholders and the weighted average number of ordinary shares
outstanding for the effects of all dilutive potential ordinary shares, which comprise
performance rights and share options granted to employees.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
67
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
33. Significant accounting policies (continued)
(s) Segment reporting
An operating segment is a component of the Group that engages in business activities from which it may
earn revenues and incur expenses, including revenues and expenses that relate to transactions with any of the
Group’s components. All operating segments’ operating results are reviewed regularly by the Group’s Managing
Director to make decisions about resources to be allocated to the segment and assess its performance, and for
which discrete financial information is available.
Segment results that are reported to the Managing Director include items directly attributable to a segment as
well as those that can be allocated on a reasonable basis.
Segment capital expenditure is the total cost incurred during the period to acquire property, plant and
equipment, and intangible assets other than goodwill.
(t) Financial guarantees
Financial guarantee contracts are initially measured at their fair values and subsequently measured at the
higher of:
• the loss allowance determined in accordance with AASB 9 Financial Instruments; and
• the amount initially recognised less, when appropriate, the cumulative amount of income recognised in
accordance with AASB 15 Revenue from Contracts with Customers.
The fair value of financial guarantee contracts has been assessed using a probability weighted discounted
cash flow approach. The probability has been based on:
• the likelihood of the guaranteed party defaulting in a period;
• the proportion of the exposure that is not expected to be recovered due to the guaranteed party
• the maximum loss exposed if the guaranteed party were to default.
defaulting; and
(u) 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 at the acquisition-date of
the fair values of assets transferred by the Group, liabilities incurred by the Group to the former owners of the
acquiree and the equity instruments 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 liabilities or assets 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 Payment at the acquisition date; and
• 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.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
68
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
33. Significant accounting policies (continued)
(u) Business combinations (continued)
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.
Non-controlling interests that are present ownership interests and entitle their holders to a proportionate
share of the entity’s net assets in the event of liquidation may be initially measured either at fair value or at
the non-controlling interests’ proportionate share of the recognised amounts of the acquiree’s identifiable net
assets. The choice of measurement basis is made on a transaction-by-transaction basis. Other types of non-
controlling interests are measured at fair value or, when applicable, on the basis specified in another Standard.
Where the consideration transferred by the Group in a business combination includes assets or liabilities
resulting from a contingent consideration arrangement, the contingent consideration is measured at
its acquisition-date fair value. Changes in the 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.
The subsequent accounting for changes in the fair value of 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. Contingent consideration that is classified as an asset or liability
is remeasured at subsequent reporting dates in accordance with AASB 9 Financial Instruments, or AASB 137
Provisions, Contingent Liabilities and Contingent Assets, as appropriate, with the corresponding gain or loss
being recognised in profit or loss.
Where a business combination is achieved in stages, the Group’s previously held equity interest in the acquiree
is remeasured to fair value at the acquisition date (i.e. the date when the Group attains control) 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.
(v) Government grants
Government grants are recognised only when there is reasonable assurance that the Group will comply with
the conditions attaching to them and the grants will be received. When the grant relates to an expense item,
it is recognised as income over the period necessary to match the grant on a systematic basis to the costs
that it is intended to compensate. When the grant relates to an asset, it is recognised as deferred income and
released to income in equal amounts over the expected useful life of the related asset.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
69
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
33. Significant accounting policies (continued)
(w) New standards and interpretations issued but not yet effective
The new standards and amendments to standards and interpretations effective for annual reporting periods
beginning after 30 June 2023, such as those disclosed below, have not been applied in preparing these
consolidated financial statements. The Group intends to adopt these new standards and amendment to
standards and interpretations, if applicable, when they become effective:
Amendments to Australian Accounting Standards:
AASB 2014-10 Sale or Contribution of Assets between an Investor and its Associate or Joint Venture
AASB 2020-1 Classification of Liabilities as Current or Non-current
AASB 2021-2 Disclosure of Accounting Policies and Definition of Accounting Estimates
AASB 2021-5 Deferred Tax related to Assets and Liabilities arising from a Single Transaction
AASB 2021-6 Disclosure of Accounting Policies: Tier 2 and Other Australian Accounting Standards
AASB 2021-7
Editorial Corrections to Accounting standards and Repeal of Superseded and Redundant
Statements
AASB 2022-5 Lease Liability in a Sale and Leaseback
AASB 2022-6 Non-current Liabilities with Covenants
AASB 2023-1 Supplier Finance Arrangements
The Group has yet to determine the likely impact of these new standards and amendments to standards.
34. Determination of fair values
A number of the Group’s accounting policies and disclosures require the determination of fair value, for both
financial and non-financial assets and liabilities. Fair values have been determined for measurement and/or
disclosure purposes based on the following methods. Where applicable, further information about the assumptions
made in determining fair values is disclosed in the notes specific to that asset or liability.
(i) Property, plant and equipment
The fair value of property, plant and equipment recognised as a result of a business combination is the
estimated amount for which a property could be exchanged on the date of acquisition between a willing buyer
and a willing seller in an arm’s length transaction after proper marketing wherein the parties had each acted
knowledgeably, prudently and without compulsion. The fair value of items of plant, equipment, fixtures and
fittings are determined using market comparison technique and cost technique. The valuation model considers
quoted market prices for similar items when available and depreciated replacement cost when appropriate.
(ii)
Inventories
The fair value of inventories acquired in a business combination is determined based on its estimated selling
price in the ordinary course of business less the estimated costs of disposal including a reasonable profit margin
for the selling effort.
(iii) Trade and other receivables
The fair value of trade and other receivables acquired in a business combination, including contract asset as
well as service concession receivables, is estimated as the present value of future cash flows, discounted at the
market rate of interest at the reporting date.
(iv) Non-derivative financial liabilities
Fair value, if required for disclosure purposes, is calculated based on the present value of future principal and
interest cash flows, discounted at the market rate of interest at the reporting date. For finance leases the
market rate of interest is determined by reference to similar lease agreements.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
70
SCEE GROUP – ANNUAL REPORT 2023
N OT E S TO T H E F I N A N C I A L STAT E M E N TS
34. Determination of fair values (continued)
(v) Share-based payment transactions
The fair value of employee performance rights and share options is measured using an appropriate pricing
model. Measurement inputs include share price on measurement date, exercise price of the instrument,
expected volatility (based on weighted average historic volatility adjusted for changes expected due to
publicly available information), weighted average expected life of the instruments (based on historical
experience and general holder behaviour), expected dividends, and the risk-free interest rate (based on
government bonds). Service and non-market performance conditions attached to the transactions are
not taken into account in determining fair value.
(vi) Customer contracts and relationships
The fair value of customer contracts and relationships acquired in a business combination is estimated as the
present value of future cash flows, discounted at the market rate of interest at the acquisition date.
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
71
SCEE GROUP – ANNUAL REPORT 2023
D I R E CTO RS’ D E C L A R AT I O N
1.
In the opinion of the directors of Southern Cross Electrical Engineering Limited (the “Company”):
a. The consolidated financial statements and notes, and the Remuneration report in the Directors’ Report, are 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 2023 and of its performance for the
financial year ended on that date; and
ii. complying with Australian Accounting Standards (including the Australian Accounting Interpretations) and
the Corporations Regulations 2001; and
b. the financial report also complies with International Financial Reporting Standards as disclosed in note 2(a); and
c. there are reasonable grounds to believe that the Company will be able to pay its debts as and when they
become due and payable.
2.
3.
The directors have been given the declarations required by Section 295A of the Corporations Act 2001 from the
managing director and chief financial officer for the financial year ended 30 June 2023.
At the date of this declaration, there are reasonable grounds to believe that the Company and the group
entities identified in Note 24 will be able to meet any obligations or liabilities to which they are or may become
subject to by virtue of the Deed of Cross Guarantee between the Company and those group entities pursuant
to ASIC Corporations (Wholly owned Companies) Instrument 2016/785.
This declaration is made in accordance with a resolution of the Board of Directors.
Signed in accordance with a resolution of the directors:
Derek Parkin
Chairman
29 August 2023
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
72
SCEE GROUP – ANNUAL REPORT 2023
I N D E P E N D E N T AU D I T R E PO RT TO T H E M E M B E RS O F SOU T H E R N CROSS
E L ECT R I CA L E N G I N E E R I N G L I M I T E D
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
73
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Independent Auditor’s Report To the shareholders of Southern Cross Electrical Engineering Limited Report on the audit of the Financial Report Opinion We have audited the Financial Report of Southern Cross Electrical Engineering Limited (the Company). In our opinion, the accompanying Financial Report of the Company is in accordance with the Corporations Act 2001, including: • Giving a true and fair view of the Group’s financial position as at 30 June 2023 and of its financial performance for the year ended on that date; and • Complying with Australian Accounting Standards and the Corporations Regulations 2001. The Financial Report comprised: • Consolidated balance sheet as at 30 June 2023; • Consolidated statement of comprehensive income, Consolidated statement of changes in equity, and Consolidated statement of cash flows for the year then ended; • Notes including a summary of significant accounting policies; and • Directors’ Declaration. The Group consists of the Company and the entities it controlled at the year-end or from time to time during the financial year. Basis for opinion We conducted our audit in accordance with Australian Auditing Standards. We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion. 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 fulfilled our other ethical responsibilities in accordance with the code. Key Audit Matters The Key Audit Matters we identified are: • Recognition of Contract Revenue; and • Value of Goodwill. 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. SCEE GROUP – ANNUAL REPORT 2023
I N D E P E N D E N T AU D I T R E PO RT TO T H E M E M B E RS O F SOU T H E R N CROSS
E L ECT R I CA L E N G I N E E R I N G L I M I T E D
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
74
Recognition of Contract Revenue ($464.7 million) Refer to Note 4 to the Financial Report – Contract Revenue The key audit matter How the matter was addressed in our audit Recognition of Contract revenue is a key audit matter due to the: • Significance of revenue to the financial statements; and • Large number of customer contracts with numerous estimation events that may occur over the course of the contract's life. This results in complex and judgemental revenue recognition from rendering of services and construction contracts. Therefore, significant audit effort is required to gather sufficient appropriate audit evidence for revenue recognition. We focused on the Group's assessment of the following elements of revenue recognition for rendering of services and construction contracts, as applicable: • The Group's determination of contractual entitlement and assessment of the probability of customer approval of changes in scope and/or price. The Group's consideration of the enforceability or approval of the modification of the terms of a contract may include evidence that is written, oral, or implied by customary business practice and may include involvement from the Group’s legal, time and cost experts. The Group's determination of modifications requires a degree of judgement and can drive different accounting treatments, increasing the risk of inappropriately recognising revenue; • Estimating total expected costs at initiation of the customer contract, which have a high level of estimation uncertainty; and • Revisions to total expected costs for certain events or conditions that occur during the performance of the contract, or are expected to occur to complete the customer contract, which is difficult to estimate. Our procedures included: • Understanding the Group’s contract revenue accounting process; • We read key contracts and other underlying documentation such as customer correspondence to evaluate the inputs to the Group’s calculation of revenue; • We tested a sample of revenue transactions by agreeing it to documentation to support the satisfaction of the performance obligations; • We tested a sample of unbilled contract assets by agreeing to documentation to support the satisfaction of the performance obligations; • For key contracts where revenue is recognised on a percentage of completion basis, we assessed the total expected cost estimates by (1) obtaining an understanding of the activities required to complete the customer contract from the Group’s contract teams, (2) analysing the costs of those activities compared to recent project cost trends and prices, (3) testing a sample of committed expenditure to underlying documentation, and (4) using our knowledge of the contract characteristics to challenge the completeness of costs and activities; • We evaluated the Group's assessment of when a modification to the contract scope and/or price for variations and claims is approved and enforceable. This included assessing underlying records, legal documents, and customer correspondence; • We assessed the Group's estimation of variations and claims by comparing underlying evidence such as customer correspondence and reports from the Group’s time and cost experts (where applicable) for consistency with contract terms. We recalculated the amount of revenue including the modifications to the contract. We compared the recalculated amounts against the amounts recorded by the Group; SCEE GROUP – ANNUAL REPORT 2023
I N D E P E N D E N T AU D I T R E PO RT TO T H E M E M B E RS O F SOU T H E R N CROSS
E L ECT R I CA L E N G I N E E R I N G L I M I T E D
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
75
• We evaluated the Group's legal, time and cost experts' reports received on contentious matters to assess the recognition of variations and claims under the revenue accounting standard. We checked the consistency of this to the inclusion or not of an amount in the Group’s estimates used for revenue recognition; • We assessed the scope, competency, and objectivity of the legal, time and cost experts engaged by the Group; • We evaluated the Group’s ability to recover outstanding variation and claim amounts not yet settled with customers by assessing the status of contract negotiations, historical recoveries and expert reports obtained by the Group; • We tested significant credit notes recognised post year end to check the Group’s recognition of revenue in the correct period; and • We assessed the appropriateness of the disclosures in Notes 4, 14, 18 and 33(n). Value of Goodwill ($103.0 million) Refer to Note 17 to the Financial Report – Intangible assets - goodwill and customer contracts The key audit matter How the matter was addressed in our audit We focused on the Group’s annual testing of Goodwill for impairment as a key audit matter due to the size of the balance, being 32% of total assets. We focused on the significant forward-looking assumptions the Group applied in their value in use models for the SCEE Electrical, Heyday and Trivantage cash generating units (CGUs), including: • The valuation models are sensitive to changes in forecast revenues and margins which could reduce or remove available headroom, and increases the possibility of goodwill being impaired. This drives additional audit effort specific to their feasibility within the Group’s strategy; and Our procedures included: • Considering the Group’s determination of the level at which goodwill is tested based on our understanding of the operations of the Group’s business and how independent cash inflows were generated, against the requirements of the accounting standards; • Considering the appropriateness of the value in use method applied by the Group to perform the annual test of goodwill for impairment against the requirements of the accounting standards. We assessed the integrity of the value in use models used, including the accuracy of the underlying calculation formulas. We, along with our modelling specialists, assessed the methodology applied in the value in use models used; SCEE GROUP – ANNUAL REPORT 2023
I N D E P E N D E N T AU D I T R E PO RT TO T H E M E M B E RS O F SOU T H E R N CROSS
E L ECT R I CA L E N G I N E E R I N G L I M I T E D
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
76
• Discount rates - these are complicated in nature and vary according to the conditions and environment the specific CGUs are subject to from time to time. The Group’s modelling is sensitive to changes in the discount rate. We involve our valuation specialists with the assessment. • Challenging the feasibility of the Group’s revenue and margin assumptions within the forecast cash flows in light of varying competitive conditions in the markets in which the Group operates. We compared growth rates and terminal growth rates to published studies of industry trends and historical trends. We further assessed forecast cash flows against the secured value of work for those respective years and the level of secured work at similar times in previous years. We used our knowledge of the Group, their past performance, business and customers, and our industry experience; • Comparing the forecast cash flows contained in the value in use models to Board approved forecasts; • Assessing the accuracy of previous Group forecasting to inform our evaluation of forecasts included in the value in use models. We applied increased scepticism to current period forecasts in areas where previous forecasts were not achieved and/or where future uncertainty is greater or volatility is expected; • Considering the sensitivity of the models by varying key assumptions, such as forecast revenue, margins, terminal growth rates and discount rates, within a reasonable possible range. We did this to identify those CGUs with a higher risk of impairment and to focus our further procedures; • Working with our valuation specialists, we independently developed a discount rate range considered comparable using publicly available market data for comparable entities, adjusted by risk factors specific to the Group and the industry it operates in; • Working with our valuation specialists, we considered the deficiency of market capitalisation to the net assets of the Group, having regard to valuation cross checks; and We assessed the Group's disclosures of the quantitative and qualitative considerations in relation to the valuation of goodwill, by comparing these disclosures to our understanding obtained from our testing and the requirements of the accounting standards. SCEE GROUP – ANNUAL REPORT 2023
I N D E P E N D E N T AU D I T R E PO RT TO T H E M E M B E RS O F SOU T H E R N CROSS
E L ECT R I CA L E N G I N E E R I N G L I M I T E D
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
77
Other Information Other Information is financial and non-financial information in Southern Cross Electrical Engineering Limited’s annual reporting which is provided in addition to the Financial Report and the Auditor’s Report. The Directors are responsible for the Other Information. Our opinion on the Financial Report does not cover the Other Information and, accordingly, we do not express an audit opinion or any form of assurance conclusion thereon, with the exception of the Renumeration Report and our related assurance opinion. In connection with our audit of the Financial Report, our responsibility is to read the Other Information. In doing so, we 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. We are required to report if we conclude that there is a material misstatement of this Other Information, and based on the work we have performed on the Other Information that we obtained prior to the date of this Auditor’s Report we have nothing to report. Responsibilities of the Directors for the Financial Report The Directors are responsible for: • Preparing the Financial Report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001; • Implementing necessary internal control to enable the preparation of a Financial Report that gives a true and fair view and is free from material misstatement, whether due to fraud or error; and • Assessing the Group and Company’s ability to continue as a going concern and whether the use of the going concern basis of accounting is appropriate. This includes disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless they either intend to liquidate the Group and Company or to cease operations, or have no realistic alternative but to do so. Auditor’s responsibilities for the audit of the Financial Report Our objective is: • 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 Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error. They 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 the Financial Report. A further description of our responsibilities for the audit of the Financial Report is located at the Auditing and Assurance Standards Board website at: https://www.auasb.gov.au/admin/file/content102/c3/ar1_2020.pdf This description forms part of our Auditor’s Report. SCEE GROUP – ANNUAL REPORT 2023
I N D E P E N D E N T AU D I T R E PO RT TO T H E M E M B E RS O F SOU T H E R N CROSS
E L ECT R I CA L E N G I N E E R I N G L I M I T E D
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
78
Report on the Remuneration Report Opinion In our opinion, the Remuneration Report of Southern Cross Electrical Engineering Limited for the year ended 30 June 2023, complies with Section 300A of the Corporations Act 2001. Directors’ 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 responsibilities We have audited the Remuneration Report included in the pages 22 to 28 of the Directors’ report for the year ended 30 June 2023. Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards. KPMG R Gambitta Partner Perth 29 August 2023 SCEE GROUP – ANNUAL REPORT 2023
L E A D AU D I TO R’S I N D E P E N D E N CE D ECL A R AT I O N
H
I
G
H
L
I
G
H
T
S
C
H
A
I
R
M
A
N
’
S
R
E
P
O
R
T
A
B
O
U
T
S
C
E
E
G
R
O
U
P
M
D
R
E
V
I
E
W
D
I
R
E
C
T
O
R
S
’
R
E
P
O
R
T
R
E
M
U
N
E
R
A
T
O
N
I
R
E
P
O
R
T
F
I
N
A
N
C
I
A
L
S
T
A
T
E
M
E
N
T
S
79
KPMG, an Australian partnership and a member firm of the KPMG global organisation of independent member firms affiliated with KPMG International Limited, a private English company limited by guarantee. All rights reserved. The KPMG name and logo are trademarks used under license by the independent member firms of the KPMG global organisation. Liability limited by a scheme approved under Professional Standards Legislation. Lead Auditor’s Independence Declaration under Section 307C of the Corporations Act 2001 To the Directors of Southern Cross Electrical Engineering Limited I declare that, to the best of my knowledge and belief, in relation to the audit of Southern Cross Electrical Engineering Limited for the financial year ended 30 June 2023 there have been: i. No contraventions of the auditor independence requirements as set out in the Corporations Act 2001 in relation to the audit; and ii. No contraventions of any applicable code of professional conduct in relation to the audit. KPMG R Gambitta Partner Perth 29 August 2023 SCEE GROUP – ANNUAL REPORT 2023
ASX A D D I T I O N A L I N F O R M AT I O N
Additional information required by the ASX Limited Listing Rules and not disclosed elsewhere in this report is set out
below. The information is current at 22 August 2023.
Distribution of equity security holders
Category
1 - 1,000
1,001 - 5,000
5,001 - 10,000
10,001 - 100,000
100,001 and over
Number of equity security holders
Ordinary shares
Performance rights
479
1,089
635
1,576
211
3,990
-
-
-
-
4
4
The number of shareholders holding less than a marketable parcel of ordinary shares is 219.
Twenty largest shareholders
Category
Frank Tomasi Nominees Pty Ltd
Continue reading text version or see original annual report in PDF format above