preliminary final report & june quarterly update - Leighton Holdings

Commentary on the Results continued
for the year ended 30 June 2011
Leighton Properties produced a segment loss of $99.6 million (2010: loss $73.4 million), reflecting the impact of write-downs of
development properties due to subdued recovery of property markets. Leighton Properties will maintain its strategic focus on
commercial and residential markets to ensure it is positioned to benefit from the upswing.
The Company recorded a tax benefit for the year of $85.2 million. No tax benefit arises in relation to segment losses in HLG.
The review by the ATO of the Group’s claim under the R&D concession has been resolved and net $76.1 million has been
recognised as a benefit in the current year.
The Group continues to maintain a strong balance sheet which provides the depth and flexibility necessary to tender large,
complex projects, providing working capital, investing in plant and equipment, and pursuing new opportunities. Managing the
Group’s capital requirements remains a core discipline underpinning future growth and strategic direction. The Group has
maintained a strong capital base with shareholders’ equity of $2.3 billion, gross cash of $1.4 billion and undrawn cash and
guarantee facilities of around $1.2 billion. During the year the Group raised $757.9 million in a 1 for 9 rights issue.
The debt profile of the Group has continued to be restructured to a longer term maturity, reducing our reliance on short term
financial markets, with the Group issuing a further US$350.0 million of Guaranteed Senior Notes during the year. The value of
the Group’s owned property, plant and equipment now stands at $2.6 billion. The Group has operating and finance lease
facilities available to provide additional capacity and flexibility for the financing and risk management of its plant fleet. The
value of major plant and equipment under operating leases is $0.9 billion and under finance leases is $0.3 billion.
On 29 June Devine Limited became a subsidiary and the Group’s balance sheet includes the consolidation of the Devine,
Hamilton Harbour and Townsville joint venture assets and liabilities. The gross assets consolidated were $683.1 million with
liabilities of $338.9 million. The Group’s share of the result for Devine for the year ending 30 June 2011 has been equity
accounted.
The loss per share of 133.1 cents compares to earnings per share of 204.6 cents in 2010. As a result of the loss, the directors
announced that no final dividend would be paid (85 cents per share fully franked last year). A fully franked interim dividend of
60 cents per share was declared at the half year (65 cents per share fully franked last year).
Leighton Holdings Limited
Appendix 4E and Consolidated Preliminary Final Report for the Year Ended 30 June 2011 4