CIVMEC LIMITED
(ACN 672 407 171)
CONDENSED INTERIM CONSOLIDATED FINANCIAL STATEMENTS FOR THE
SIX MONTHS ENDED 31 DECEMBER 2024
TABLE OF CONTENTS
- Condensed interim consolidated statement of profit or loss and other
comprehensive income | 1 | |
B. | Condensed interim statements of financial position | 2 |
C. | Condensed interim statements of changes in equity | 3 |
D. | Condensed interim consolidated statement of cash flows | 5 |
E. | Notes to the condensed interim consolidated financial statements | 6 |
F. | Other Information Required by Listing Rule Appendix 7.2 | 24 |
CIVMEC LIMITED
Condensed Interim Consolidated Financial Statements for the six months ended 31 December 2024
Page | 1
- Condensed interim consolidated statement of profit or loss and other comprehensive income
Group | ||||
6 months ended | ||||
31 December | 31 December | |||
Note | 2024 | 2023 | ||
A$'000 | A$'000 | |||
Revenue | 4 | 502,861 | 492,346 | |
Cost of sales | (447,078) | (432,055) | ||
Gross profit | 55,783 | 60,291 | ||
Other income | 5 | 1,452 | 1,976 | |
Administrative expenses | (16,779) | (14,185) | ||
Finance costs | (2,989) | (2,965) | ||
Profit before income tax | 5 | 37,467 | 45,117 | |
Income tax expense | 7 | (10,974) | (13,224) | |
Profit for the period | 26,493 | 31,893 | ||
Profit attributable to: | ||||
Owners of the Company | 26,493 | 31,894 | ||
Non-controlling interest | - | (1) | ||
26,493 | 31,893 | |||
Total comprehensive income attributable to: | ||||
Owners of the Company | 26,493 | 31,894 | ||
Non-controlling interest | - | (1) | ||
26,493 | 31,893 | |||
Earnings per share attributable to equity holders | ||||
of the Company (cents per share): | ||||
| Basic | 8 | 5.21 | 6.29 |
| Diluted | 8 | 5.15 | 6.23 |
CIVMEC LIMITED
Condensed Interim Consolidated Financial Statements for the six months ended 31 December 2024
Page | 2
- Condensed interim statements of financial position
Group | Company | ||||
As at | As at | As at | As at | ||
Note | 31 December | 30 June | 31 December | 30 June | |
2024 | 2024 | 2024 | 2024 | ||
A$'000 | A$'000 | A$'000 | A$'000 | ||
ASSETS | |||||
Current assets | |||||
Cash and cash equivalents | 37,006 | 88,457 | 3 | 2 | |
Trade and other receivables | 97,080 | 94,602 | 37,313 | 57,597 | |
Contract assets | 198,756 | 173,588 | - | - | |
Other current assets | 2,727 | 1,393 | - | - | |
Income tax receivable | 329 | - | 329 | - | |
335,898 | 358,040 | 37,645 | 57,599 | ||
Non-current assets | |||||
Investment in subsidiaries | - | - | 7,579 | 7,579 | |
Property, plant and equipment | 531,565 | 532,840 | - | - | |
Investment properties | 11 | 18,588 | 18,459 | - | - |
Intangible assets | 10 | 10 | - | - | |
Deferred tax assets | 1,383 | 968 | - | 72 | |
551,546 | 552,277 | 7,579 | 7,651 | ||
TOTAL ASSETS | 887,444 | 910,317 | 45,224 | 65,250 | |
LIABILITIES AND EQUITY | |||||
Current liabilities | |||||
Trade and other payables | 127,408 | 153,149 | 301 | 2,012 | |
Contract liabilities | 55,042 | 49,292 | - | - | |
Lease liabilities | 5,755 | 5,944 | - | - | |
Borrowings | 12 | - | 8,000 | - | - |
Income tax payable | - | 7,462 | - | 7,462 | |
Provisions | 15,961 | 18,455 | - | - | |
204,166 | 242,302 | 301 | 9,474 | ||
Non-current liabilities | |||||
Lease liabilities | 54,854 | 51,353 | - | - | |
Borrowings | 12 | 60,000 | 56,000 | - | - |
Provisions | 646 | 493 | - | - | |
Deferred tax liabilities | 70,454 | 71,951 | - | - | |
185,954 | 179,797 | - | - | ||
TOTAL LIABILITIES | 390,120 | 422,099 | 301 | 9,474 | |
Capital and Reserves | |||||
Share capital | 13 | 29,908 | 29,918 | 29,908 | 29,918 |
Treasury shares | - | (10) | - | (10) | |
Asset revaluation reserve | 160,219 | 160,219 | - | - | |
Other reserves | 12,273 | 11,862 | 7,915 | 7,504 | |
Retained earnings | 295,185 | 286,490 | 7,100 | 18,364 | |
Total equity attributable to the | |||||
Owners of the Company | 497,585 | 488,479 | 44,923 | 55,776 | |
Non-controlling interest | (261) | (261) | - | - | |
TOTAL EQUITY | 497,324 | 488,218 | 44,923 | 55,776 | |
TOTAL LIABILITIES AND EQUITY | 887,444 | 910,317 | 45,224 | 65,250 |
CIVMEC LIMITED
Condensed Interim Consolidated Financial Statements for the six months ended 31 December 2024
Page | 3
- Condensed interim statements of changes in equity
Other reserves | ||||||||||
Equity- | ||||||||||
settled | ||||||||||
Asset | employee | Non- | ||||||||
Share | Treasury | revaluation | Merger | benefits | Other | Retained | controlling | |||
capital | shares | reserve | reserve | reserve | reserves | earnings | Total | interest | Total | |
GROUP | A$'000 | A$'000 | A$'000 | A$'000 | A$'000 | A$'000 | A$'000 | A$'000 | A$'000 | A$'000 |
Balance as at 1 July 2024 | 29,918 | (10) | 160,219 | 7,578 | 4,007 | 277 | 286 | 488,479 | (261) | 488,218 |
Profit for the period | - | - | - | - | - | - | 26,493 | 26,493 | - | 26,493 |
Other comprehensive income for | ||||||||||
the period: | - | - | - | - | - | - | - | - | - | - |
Total comprehensive income for | ||||||||||
the period | - | - | - | - | - | - | 26,493 | 26,493 | - | 26,493 |
Recognition of share based | ||||||||||
payment | - | - | - | - | 411 | - | - | 411 | - | 411 |
Dividends paid | - | - | - | - | - | - | (17,798) | (17,798) | - | (17,798) |
Cancellation of treasury shares | (10) | 10 | - | - | - | - | - | - | - | - |
Balance as at 31 December 2024 | 29,908 | - | 160,219 | 7,578 | 4,418 | 277 | 295,185 | 497,585 | (261) | 497,324 |
Balance as at 1 July 2023 | 29,807 | (10) | 129,577 | 7,578 | 3,642 | 277 | 249,999 | 420,870 | (261) | 420,609 |
Profit for the period | - | - | - | - | - | - | 31,894 | 31,894 | (1) | 31,893 |
Other comprehensive income for | ||||||||||
the period: | - | - | - | - | - | - | - | - | - | - |
Total comprehensive income for | ||||||||||
the period | - | - | - | - | - | - | 31,894 | 31,894 | (1) | 31,893 |
Share options exercised: | ||||||||||
issuance of new ordinary | ||||||||||
shares | 111 | - | - | - | - | - | - | 111 | - | 111 |
Recognition of share based | ||||||||||
payment | - | - | - | - | 225 | - | - | 225 | - | 225 |
Dividends paid | - | - | - | - | - | - | (15,228) | (15,228) | - | (15,228) |
Balance as at 31 December 2023 | 29,918 | (10) | 129,577 | 7,578 | 3,867 | 277 | 266,665 | 437,872 | (262) | 437,610 |
CIVMEC LIMITED
Condensed Interim Consolidated Financial Statements for the six months ended 31 December 2024
Page | 4
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Condensed interim statements of changes in equity
(continued)
Other reserves | |||||||
Equity- | |||||||
settled | |||||||
employee | |||||||
Share | Treasury | Merger | benefits | Other | Retained | ||
capital | shares | reserve | reserve | reserves | earnings | Total | |
COMPANY | A$'000 | A$'000 | A$'000 | A$'000 | A$'000 | A$'000 | A$'000 |
Balance as at 1 July 2024 | 29,918 | (10) | 7,578 | 4,007 | (4,081) | 18,364 | 55,776 |
Profit for the period | - | - | - | - | - | 6,534 | 6,534 |
Other comprehensive income for the period: | - | - | - | - | - | - | - |
Total comprehensive income for the period | - | - | - | - | - | 6,534 | 6,534 |
Recognition of share based payment | - | - | - | 411 | - | - | 411 |
Dividends paid | - | - | - | - | - | (17,798) | (17,798) |
Cancellation of treasury shares | (10) | 10 | - | - | - | - | - |
Balance as at 31 December 2024 | 29,908 | - | 7,578 | 4,418 | (4,081) | 7,100 | 44,923 |
Balance as at 1 July 2023 | 29,807 | (10) | 7,578 | 3,642 | (3,335) | 631 | 38,313 |
Profit for the period | - | - | - | - | - | 28,277 | 28,277 |
Other comprehensive income for the period: | - | - | - | - | - | - | - |
Total comprehensive income for the period | - | - | - | - | - | 28,277 | 28,277 |
Share options exercised: issuance of new ordinary shares | 111 | - | - | - | - | - | 111 |
Recognition of share based payment | - | - | - | 225 | - | - | 225 |
Dividends paid | - | - | - | - | - | (15,228) | (15,228) |
Balance as at 31 December 2023 | 29,918 | (10) | 7,578 | 3,867 | (3,335) | 13,680 | 51,698 |
CIVMEC LIMITED
Condensed Interim Consolidated Financial Statements for the six months ended 31 December 2024
Page | 5
- Condensed interim consolidated statement of cash flows
Group | |||
6 months ended | |||
31 December | 31 December | ||
Note | 2024 | 2023 | |
A$'000 | A$'000 | ||
Cash Flows from Operating Activities | |||
Profit before income tax | 37,467 | 45,117 | |
Adjustment for: | |||
Depreciation of property, plant and equipment and investment | |||
properties - leasehold land | 5 | 10,609 | 9,838 |
Gain on disposal of property, plant and equipment | (14) | (79) | |
Finance cost | 4,811 | 4,687 | |
Interest income | (932) | (1,786) | |
Expense arising on equity-settled share based payments | 411 | 225 | |
Foreign exchange differences | 79 | 73 | |
Operating cash flow before working capital changes | 52,431 | 58,075 | |
Changes in working capital: | |||
(Increase)/decrease in trade and other receivables | (2,478) | 74,958 | |
Increase in contract assets | (25,167) | (29,467) | |
(Increase)/decrease in other current assets | (1,334) | 354 | |
Decrease in trade and other payables | (26,178) | (2,080) | |
Increase in contract liabilities | 5,750 | 11,288 | |
Decrease in provisions | (2,341) | (1,946) | |
Cash generated from operations | 683 | 111,182 | |
Interest received | 932 | 1,786 | |
Finance cost paid | (3,619) | (3,433) | |
Income tax refund | - | 1,781 | |
Income taxes paid | (20,677) | (11,939) | |
Net cash (used in)/generated from operating activities | (22,681) | 99,377 | |
Cash Flows from Investing Activities | |||
Proceeds from sale of property, plant and equipment | 75 | 96 | |
Purchase of property, plant and equipment | 10 | (3,390) | (10,874) |
Net cash used in investing activities | (3,315) | (10,778) | |
Cash Flows from Financing Activities | |||
Proceeds from borrowings | 37,800 | 7,500 | |
Repayment of borrowings | (41,800) | (4,000) | |
Repayment of principal lease liabilities | (3,657) | (4,232) | |
Proceeds from share options exercised | - | 111 | |
Dividend paid | (17,798) | (15,228) | |
Net cash used in financing activities | (25,455) | (15,849) | |
Net (decrease)/increase in cash and cash equivalents | (51,451) | 72,750 | |
Cash and cash equivalents at the beginning of the period | 88,457 | 70,381 | |
Cash and cash equivalents at the end of the period | 37,006 | 143,131 |
CIVMEC LIMITED
Condensed Interim Consolidated Financial Statements for the six months ended 31 December 2024
Page | 6
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Notes to the condensed interim consolidated financial statements
1 Company information
Civmec Limited (the "Company") is incorporated and domiciled in Australia and its shares are publicly traded on the Australian Stock Exchange and the Singapore Exchange. These condensed interim consolidated financial statements as at and for the six months ended 31 December 2024 comprise the Company and its subsidiaries (collectively, the Group). The primary activity of the Company is that of an investment holding company.
The principal activities of the Group include heavy engineering, shipbuilding, modularisation, SMP (structural, mechanical, piping), EIC (electrical, instrumentation and control), precast concrete, site civil works, industrial insulation, maintenance, surface treatment, refractory and access solutions.
Organisational Restructure
On 27 October 2023, Civmec Singapore Limited (formerly known as Civmec Limited, domiciled in Singapore) entered into an implementation agreement with Civmec Limited (formerly known as Civmec Australia Limited, domiciled in Australia) with the intention to change the domicile of the head company of the Civmec Group from Singapore to Australia. The Change of Domicile (the 'Restructure') was achieved by way of a scheme of arrangement in accordance with Section 210 of the Companies Act 1967 of Singapore. The Shareholders' scheme became effective on 4 September 2024.
The Restructure was accounted for as a reverse acquisition in the Civmec Group consolidated financial statements as at 31 December 2024, with Civmec Singapore Limited identified as the acquirer in accordance with AASB 3 Business Combinations and SFRS(I) 3 Business Combinations. Accordingly, these condensed interim consolidated financial statements reflect a continuation of the Civmec Group.
- Material accounting policies
- Basis of preparation
These condensed interim consolidated financial statements of Civmec Limited (the "Company") and its subsidiaries (the "Group") for the six-month period ended 31 December 2024:
- have been prepared in accordance with the requirements of the Corporations Act 2001 and Australian Accounting Standard AASB 134: Interim Financial Reporting and Singapore Financial Reporting standards (International) SFRS(I) 1-34: Interim Financial Reporting.
- do not include all the information and disclosures required in the annual financial statements.
- should be read in conjunction with the Group's audited consolidated financial statements for the year ended 30 June 2024.
- presented in Australian dollars (AUD or A$) unless otherwise stated.
- were approved by the Board of Directors on 12 February 2025.
CIVMEC LIMITED
Condensed Interim Consolidated Financial Statements for the six months ended 31 December 2024
Page | 7
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Notes to the condensed interim consolidated financial statements (continued)
2 Material accounting policies (continued)
- Accounting policies
The same accounting policies and methods of computation have been followed in these condensed interim consolidated financial statements as were applied in the 2024 Civmec Annual Report. The Group has considered the implications of new and amended Accounting Standards, but determined that their application to the financial statements is either not relevant or not material.
The Restructure involved the transfer of certain assets and entities between companies within the wider Civmec Group. From an accounting perspective, since these transfers were between wholly owned entities, they are considered common control transactions. The Group's accounting policy for such transfers is to apply book value accounting. This policy choice did not have a material impact on the Group's profit and loss or equity when the assets were transferred as part of the Restructure.
- Use of estimates, assumptions and judgements
The preparation of the condensed interim consolidated financial statements requires management to make judgements, estimates and assumption that affect the application of policies and reported amounts of assets, liabilities, income and expenses. The estimates and associated assumptions are based on historical experience and various other factors that are believed to be reasonable under the circumstances, the results of which form the basis of making judgments about carrying values of assets and liabilities that are not readily apparent from other sources. Actual results may differ from these estimates.
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 2024.
- Critical judgements in applying the Group's accounting policies
Information about critical judgements in applying accounting policies that have the most significant effect on the amounts recognised in the financial statements is included in the following notes:
Impairment of trade and other receivables and contract assets
The Group applies the simplified approach to provide for the ECL ("Expected Credit Losses") for all trade receivables and contract assets at an amount equal to the lifetime ECL. ECLs are a probability weighted estimate (based on the Group's historical experience) measured as the present value of all cash shortfalls on default financial assets considering both quantitative and qualitative information and analysis. Factors considered in individual assessment are geographical regions, payment history, past due status and term.
CIVMEC LIMITED
Condensed Interim Consolidated Financial Statements for the six months ended 31 December 2024
Page | 8
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Notes to the condensed interim consolidated financial statements (continued)
2 Material accounting policies (continued)
- Use of judgements and estimates (continued)
- Critical judgements in applying the Group's accounting policies (continued)
Construction contract revenue
Construction contract revenue is recognised over time by reference to the Group's progress towards completion of the contract. The measure of progress is determined based on the proportion of contract costs incurred to date to the estimated total contract costs ("input method"). Costs incurred that are not related to the contract or that do not contribute towards satisfying a performance obligation ("PO") are excluded from the measure of progress and instead are expensed as incurred.
Construction contract revenue comprises the initial amount of revenue agreed in the contract and variations in contract work to the extent that is highly probable that a significant reversal in the amount of the cumulative revenue will not occur.
In estimating the variable consideration for contract revenue, the Group uses the expected value amount method to estimate the transaction price. The expected value is the sum of probability-weighted amounts in a range of possible consideration amounts. Management has relied on historical experience and the work of experts, analysed by customers and nature of scope of work, from prior years.
Management has exercised judgement in applying the constraint on the estimated variable consideration that can be included in the transaction price. For variations claims, management has determined that a portion of the estimated variable consideration is subject to the constraint as, based on past experience with the customers, it is highly probable that a significant reversal in the cumulative amount of revenue recognised will occur, and therefore will not be recognised as revenue.
Legal proceedings
The Group is exposed to the risk of claims and litigation which can arise for various reasons, including changes in scope of work, delay and disputes etc. Given the nature of the business, variation orders, additional works and prolongation costs are common. As some of these items could be subjective and hence contentious in nature, the Group may from time to time be involved in adjudication or legal processes.
In making its judgment as to whether it is probable that any such adjudication decisions or litigation will result in a liability and whether any such liability can be measured reliably, management relies on past experience and the opinion of legal advisors and technical experts.
In making that overall judgment, management has included in its consideration the likely outcome of the claims. Although an adverse outcome of those claims could have a material adverse impact on the financial position of the Group, management have taken the view that such a material adverse outcome is very unlikely.