McConnell Dowell 2019 Annual Review

43 Annual Review 2019 the expected results of operations were included herein, and the omission of such information is hereby disclosed. Events subsequent to balance date No significant events have occurred subsequent to balance date. Rounding The amounts contained in this report and in the financial report have been rounded to the nearest thousand dollars (where rounding is applicable) and where noted ($’000’s) under the option available to the company under ASIC Corporations (Rounding in Financial/Directors’ Reports) Instrument 2016/191. The company is an entity to which the Corporations Instrument applies. Non-audit services The following non-audit services were provided by the entity’s auditor, Ernst & Young Australia. The directors are satisfied that the provision of non-audit services is compatible with the general standard of independence for auditors imposed by the Corporations Act 2001 . The nature and scope of each type of non-audit service provided means that auditor independence was not compromised. Ernst & Young Australia has not received or are not due to receive any amounts for the provision of non-audit services. Auditor independence declaration The company has obtained an Auditor’s Independence Declaration from Ernst & Young Australia. The Auditor’s Independence Declaration is located on the following page. The annual financial statements which appear on pages 45 – 94 were approved by the directors by resolution dated 6 September 2019 and are signed on their behalf. Going concern and liquidity In determining the appropriate basis of preparation of thefinancial statements, the Directors are required to consider whether the Group can continue in operational existence for the foreseeable future. The Company enters the 30 June 2020 financial year with increased levels of work in hand of $1,153m compared with $760m as at 30 June 2018 following significant project wins in Australia, New Zealand and Singapore. The company also has more than $1.0bn of opportunities (based on current contract value) that are in sole source negotiations or in Early Contractor Involvement stage and therefore it is probable these will be converted into contracted projects. The Directors have reviewed business plans and detailed financial budgets for the year ending 30 June 2020 and beyond which indicate significant construction opportunities ahead. The construction markets of Australia, New Zealand and South East Asia are healthy, and the Company expects to continue winning work in the coming years to further grow the order book. The Group has opportunities to further improve cash resources from claim settlements. The Group has also confirmed financial support from its ultimate parent company, Aveng Limited covering a minimum of 12 months from the date of these financial statements subject to consents that the Directors do not consider would be unduly withheld if required. The detailed financial budgets and business plans that are being implemented by management indicate that the Group will have sufficient cash resources for the foreseeable future. The Company has met its banking covenants for 30 June 2019 and forecasts indicate no breaches in the upcoming financial quarters. The Group retains the support of its lenders, guarantee providers, and insurance bonding providers. The Directors have considered the business plans and detailed financial budgets, including all available information, and whilst significant estimates and judgements including the impacts of the wider economic environment are always required, the Directors are of the opinion that the going concern assumption is appropriate in the preparation of the financial statements. S. V. Cummins Director 6th September 2019 D. J. Morrison Director 6th September 2019