AJ Lucas Group annual report 2007-08

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The Group has not yet determined the potential effect of the revised standard on the Group’s disclosures. • Revised AASB 123 Borrowing Costs removes the option to expense borrowing costs and requires that an entity capitalise borrowing costs directly attributable to the acquisition, construction or production of a qualifying asset as part of the cost of that asset. The revised AASB 123 will become mandatory for the Group’s 30 June 2010 financial statements and will constitute a change in accounting policy for the Group. In accordance with the transitional provisions the Group will apply the revised AASB 123 to qualifying assets for which capitalisation of borrowing costs commences on or after the effective date. The Group has not yet determined the potential effect of the revised standard on future earnings. • Revised AASB 127 Consolidated and Separate Financial Statements changes the accounting for investments in subsidiaries. Key changes include: the remeasurement to fair value of any previous/retained investment when control is obtained/lost, with any resulting gain or loss being recognised in profit or loss; and the treatment of increases in ownership interest after control is obtained as transactions with equity holders in their capacity as equity holders. The revised standard will become mandatory for the Group’s 30 June 2010 financial statements. The Group has not yet determined the potential effect of the revised standard on the Group’s financial report. • AASB 2008-1 Amendments to Australian Accounting Standard - Sharebased Payment: Vesting Conditions and Cancellations changes the measurement of share-based payments that contain non-vesting conditions. AASB 2008-1 becomes mandatory for the Group’s 30 June 2010 financial statements. The Group has not yet determined the potential effect of the amending standard on the Group’s financial report. 2. SEGMENT REPORTING Segment information is presented in respect of the Group’s business and geographical segments. The primary format, business segment, is based on the Group’s management and internal reporting structure. Segment results, assets and liabilities include items directly attributable to a segment as well as those that can be allocated on a reasonable basis. Unallocated items mainly comprise interest-earning assets and revenue, interest-bearing loans, borrowings and expenses, and corporate assets and expenses. Inter-segment pricing is determined on an arms length basis. Segment capital expenditure is the total cost incurred during the period to acquire segment assets that are expected to be used for more than one period. Business segments The Group comprises the following main business segments based on the Group’s reporting system: Drilling Drilling services for degasification of underground coal mines, recovery and commercialisation of coal seam gas and associated services and trenchless installation of pipes and conduits. Pipelines Construction and installation of pipelines including hydrostatic testing. Construction and infrastructure Construction and civil engineering, together with facilities management. 2008 $’000 Drilling 2007 $’000 2008 $’000 Pipelines 2007 $’000 Construction & infrastructure 2008 $’000 2007 $’000 Consolidated Total segment revenue 88,417 67,625 218,538 73,219 117,346 75,525 424,301 216,369 Segment result 7,112 6,121 19,591 3,965 3,107 414 29,810 10,500 Unallocated expenses (3,849) (4,559) Results from operating activities 25,961 5,941 Net finance costs (5,553) (1,763) Profit before tax 20,408 4,178 Income tax (expense)/benefit (6,940) 2,218 Net profit for the year 13,468 6,396 Depreciation and amortisation 10,970 8,480 386 357 95 129 11,451 8,966 Impairment of plant and equipment — 500 — — — — — 500 Impairment of intangibles — — — 1,786 — 993 — 2,779 Assets Segment assets 134,233 65,995 59,489 50,586 29,282 28,662 223,004 145,243 Unallocated assets 6,895 5,705 Total Assets 229,899 150,948 Liabilities Segment liabilities 115,903 61,816 25,913 35,203 18,055 22,307 159,871 119,326 Unallocated liabilities 4,868 1,184 Total Liabilities 164,739 120,510 Acquisitions of non-current assets 80,082 22,716 644 202 762 3 81,488 22,921 2008 $’000 2007 $’000 40 LUCAS group
Secondary reporting—geographical segments Geographical segment revenue and assets are based on the respective geographical location of customers and assets. Australia Asia/Pacific Consolidated 2008 2007 2008 2007 2008 2007 $’000 $’000 $’000 $’000 $’000 $’000 Revenue from customers 421,421 190,333 2,880 26,034 424,301 216,367 Other revenue — 2 — — — 2 Total revenue 421,421 190,335 2,880 26,034 424,301 216,369 Assets 226,902 148,939 2,997 2,009 229,899 150,948 Acquisitions of non-current assets 79,271 22,921 2,217 — 81,488 22,921 3. Financial income and expense Consolidated Company 2008 2007 2008 2007 $’000 $’000 $’000 $’000 Interest income 1,173 446 1,091 386 Dividend income — — 5,500 — Net foreign exchange gain 149 335 — — Financial income 1,322 781 6,591 386 Interest expense 6,875 2,544 5,076 1,055 Net foreign exchange loss — — 2 — Financial expenses 6,875 2,544 5,078 1,055 Net financing (costs)/income (5,553) (1,763) 1,513 (669) 4. Other expenses Consolidated Company 2008 2007 2008 2007 $’000 $’000 $’000 $’000 Profit before income tax has been arrived at after charging the following items: Depreciation of property, plant and equipment 6,074 4,838 — — Amortisation of: — Leased plant and equipment 2,605 2,121 — — Development expenditure 182 222 — — Contracts and customer relationships 2,590 1,785 — — 5,377 4,128 — — Total depreciation and amortisation 11,451 8,966 — — Movement in provision for doubtful debts — 143 — — Impairment of plant and equipment — 500 — — Impairment of intangible assets Goodwill — 993 — — Impairment of pipeline rights — 1,786 — 1,786 Total impairment expense — 3,422 — 1,786 5. Auditor’s Remuneration Consolidated Company 2008 $ 2007 $ 2008 $ 2007 $ Audit services Auditors of the Company—KPMG Audit and review of financial reports Australia 347,990 244,850 17,500 17,500 Overseas 7,120 4,866 — — 355,110 249,716 17,500 17,500 Other services Auditors of the Company—KPMG Taxation services 51,605 75,939 — — Other professional services 302,096 17,000 — — 353,701 92,939 — — a year of milestones 41
Page 1 and 2: AJ Lucas Group Limited Annual Repor
Page 3 and 4: 50 Years of Milestones Page 16 Fina
Page 5 and 6: Chairman’s letter What a year! Lu
Page 7 and 8: 2.5 +220% 8.0 Construction & infras
Page 9 and 10: The Brooklyn—Lara Gas Pipeline (l
Page 11 and 12: Left: A coal seam gas well at Glouc
Page 13 and 14: a year of milestones 11
Page 15 and 16: Hyundai Australia’s new HQ has an
Page 17 and 18: Three pipes this size in a trench i
Page 19 and 20: aj lucas group ltd financial report
Page 21 and 22: Company secretary Mr Nicholas Swan
Page 23 and 24: The Group has now appointed a numbe
Page 25 and 26: Indemnification and insurance of of
Page 27 and 28: Total $ Proportion of remuneration
Page 29 and 30: Analysis of share-based payments gr
Page 31 and 32: Lead auditor’s independence decla
Page 33 and 34: Statements of recognised income and
Page 35 and 36: statements of cash flows for the ye
Page 37 and 38: policies. Significant influence is
Page 39 and 40: Any subsequent period adjustments t
Page 41: The recoverable amount of an asset
Page 45 and 46: 2008 Number 2007 Number Weighted av
Page 47 and 48: 15. Intangible Development assets G
Page 49 and 50: Assets Liabilities Net 2008 $’000
Page 51 and 52: (b) Bond facilities provided by sur
Page 53 and 54: 21. PROVISIONS Consolidated Company
Page 55 and 56: c) Employee share acquisition plan:
Page 57 and 58: Risk management policies are establ
Page 59 and 60: Market risk Market risk is the risk
Page 61 and 62: Carrying amount $’000 Consolidate
Page 63 and 64: Guarantees and surety bonds Bank gu
Page 65 and 66: 31. KEY MANAGEMENT PERSONNEL DISCLO
Page 67 and 68: Options and rights over equity inst
Page 69 and 70: DIRECTORS’ DECLARATION 157 Church
Page 71 and 72: AUSTRALIAN Securities EXCHANGE ADDI
Page 73 and 74: a year of milestones 71
Page 75 and 76: credits Writing & management Ad Ver

AJ Lucas Group annual report 2007-08

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