Financial Statements 2022 39 LIKELY DEVELOPMENTS AND EXPECTED RESULTS OF COMPANY In the opinion of the directors, it would prejudice the interests of the company if any further information on likely reasonable and material developments in the operations of the company and the expected results of operations were included herein, and the omission of such information is hereby disclosed. EVENTS SUBSEQUENT TO BALANCE DATE Refer to note 27 - Events 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 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. KPMG Australia has not received or are not due to receive the any amounts for the provision of non-audit services. AUDITOR INDEPENDENCE DECLARATION The company has obtained an Auditor’s Independence Declaration from KPMG Australia. The Auditor’s Independence Declaration is located on the following page. The annual financial statements which appear on pages 39 to 89 were approved by the directors by resolution dated 22 August 2022 and are signed on their behalf. GOING CONCERN AND LIQUIDITY In determining the appropriate basis of preparation of the financial statements, the Directors are required to consider whether the Company can continue in operational existence for the foreseeable future. In concluding this assessment, the Directors have taken the following considerations into account: The Company enters FY23 with increased levels of work in hand of $2.5 billion following significant project wins in Australia and New Zealand / Pacific. At the balance sheet date the Company also has more than $2.5 billion 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 the business plans and detailed financial budgets for the year ending 30 June 2023 and beyond, as well as preparing cash flow forecasts covering at least 12 months from the date of these annual financial statements. The construction markets of Australia and New Zealand are healthy, and the Company expects to continue winning work in the coming years to further grow the order book. The preparation of budgets, plans and forecasts include consideration of the impact of the COVID-19 pandemic. This included management’s responses to the effects thereof. Whilst management has taken action to address these effects, this pandemic continues to evolve and represents a risk to the achievement of these budgets, plans and forecasts. Management will continue to monitor and respond to the circumstances as these emerge. The budgets, plans and forecasts have, together with the assumptions used, been interrogated, and approved by the Directors. These detailed financial budgets plan and forecasts that are being implemented by management indicate that the Group will have sufficient liquidity resources for the foreseeable future. The Company has met its banking covenants for 30 June 2022 resulting in no breaches at the year-end period and current forecasts do not indicate any 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, detailed financial budgets and updated forecasts, including all available information, and whilst significant estimates and judgements including the impacts of the wider economic environment (including COVID-19 specifically) are always and will continue to be required, the Directors are of the opinion that the going concern assumption is appropriate in the preparation of the financial statements. S. V. Cummins D. J. Morrison Director Director 22 August 2022 22 August 2022
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