FINANCIAL STATEMENTS 38 The Directors present their report on the consolidated entity consisting of McConnell Dowell Corporation Limited (the Company) and its controlled entities for the year ended 30 June 2021. Directors and company secretary The following persons were Directors of McConnell Dowell Corporation Limited during the financial year and up to the date of this report: Directors S.J. Flanagan (Chair), S.V. Cummins, D.J. Morrison, I Luck, A.H. Macartney, C.D. Lock. Company Secretary D.J. Morrison Principal activities The principal activity of the consolidated entity is infrastructure construction. There were no significant changes in the principal activities of the consolidated entity during the year. Consolidated result The June 2021 financial year was a successful year for McConnell Dowell with the business delivering an operational profit for the fourth consecutive year. The McConnell Dowell team continues to effectively navigate the complexities and challenges imposed by the COVID-19 pandemic and the underlying market opportunity across our footprint remains strong. Disciplined and consistent project delivery continues to underpin McConnell Dowell’s strong results with the portfolio overall returning on budget results. The business has reported significant growth in revenue, profit and cash position. Australia continues to be the primary driver of McConnell Dowell’s growth in FY21, with revenue more than doubling compared to the prior period on the back of work secured in FY20. Revenue in South East Asia grew 30% in FY21 and increased work in hand will drive continued revenue growth. Revenue for Built Environs decreased in FY21 due to a lack of new work previously won however momentum for the business is growing and new work has been won in Victoria for the first time. New work won and revenue were lower than expected in New Zealand, primarily due to delayed government investment as a result of the COVID-19 pandemic. McConnell Dowell’s proactive approach to cost management, coupled with its strong revenue growth has seen the company’s EBIT trend upwards as economies of scale are realised. The diversity of McConnell Dowell’s technical capability and market sector participation continues to benefit the organisation, and judicious business development and disciplined tendering resulted in new contract awards amounting to $1.5 billion, despite the delays in the award of some projects as a result of COVID-19 uncertainty. Dividends A dividend of $5 million (2020 – nil) was declared and paid during the year ended 30 June 2021 to the parent company shareholder. Significant changes in the state of affairs There were no significant changes in the state of affairs of the consolidated entity other than that referred to in the financial statements and notes following. Indemnification and insurance of directors and officers McConnell Dowell Corporation Limited, to the extent permitted by law, indemnifies each Director and Company Secretary of the entity and its subsidiaries against certain liabilities and legal costs incurred in the performance of their roles as directors and officers. The directors listed above, individuals who act as Director or Company Secretary of the Company’s subsidiaries and certain individuals who formerly held any of these roles also have the benefit of the indemnity, to the extent permitted by law. During the financial year the company paid an insurance premium insuring directors and officers of the consolidated entity for certain liabilities, legal costs and expenses that may be incurred in defending civil or criminal proceedings that may be brought against the officers in their capacity as officers of the entity and/or one of its subsidiaries. The directors and officers of the consolidated entity covered by the insurance policy, to the extent permitted by law, included the directors listed in this report and all other directors and company secretaries of the entity and its subsidiaries. The contract of insurance prohibits disclosure of the amount of the premium. Indemnification of auditors To the extent permitted by law, the Company has agreed to indemnify its auditors, Ernst & Young Australia, as part of the terms of its audit engagement agreement against claims by third parties arising from the audit (for an unspecified amount). No payment has been made to indemnify Ernst & Young Australia during or since the financial year. Safety and environmental regulations The consolidated entity is committed to the highest standard of environmental and workplace safety performance reasonably practicable. The consolidated entity’s performance in respect to its policies and procedures to ensure its obligations are met is reported to the Executive Committee (Exco). Directors' Report
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