AJ Lucas Group annual report 2007-08

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23. EMPLOYEE BENEFITS (cont) Share based payments The Company also issued rights to employees during the year under the terms of the Management Rights Plan. The rights were issued subject to the Group achieving minimum performance criteria and the recipients complying with employment conditions. Generally, these rights vest in three tranches commencing between one and three years after grant date and expiring two years after they vest. The fair value of the rights granted during the year were: Grant date 31 Aug 2007 Expiry date 31 Aug 2012 Share price on grant date $2.11 Exercise price — Expected volatility 49% - 56% Risk free interest rate 6.2% - 6.3% Expected dividend yield 2.8% Fair value per right $1.88 - $2.05 During the year ended 30 June 2008, the Group recognised as an expense $1,494,000 (2007: $108,000) in relation to share based payments. The fair value of the rights granted in previous years has been calculated using a Black-Scholes pricing model and allocated to each reporting period evenly over the period from grant date to vesting date. The value disclosed is the portion of the fair value of the rights allocated to this reporting period. The following factors and assumptions were used in determining the fair value of rights on grant date, for those share based payments granted in previous years: Grant date Nov 2006 June 2005 May 2004 Expiry date Nov 2011 May 2009 May 2009 Share price on grant date $1.08 $1.52 $1.66 Exercise price $1.10 Nil Nil Expected volatility 44% 39% 38% Risk free interest rate 5.7% 5.1% 5.6% Expected dividend yield 4.8% 5.6% 5.4% Fair value per right $0.25 $1.20 $1.29 Details of rights in aggregate over unissued ordinary shares at the beginning and ending of the reporting period and movements during the year are set out below. Grant date Exercise date on or after Expiry date Number of rights at beginning of year Rights issued Rights exercised Rights cancelled Number of rights at end of year On issue Consolidated & Company 2007 28 May 2004 30 Jun 2004 28 May 2009 222,000 — (132,000) — 90,000 90,000 28 May 2004 30 Jun 2005 28 May 2009 162,333 — (100,333) — 62,000 62,000 28 May 2004 30 Jun 2006 28 May 2009 24,000 — (2,000) — 22,000 22,000 27 June 2005 30 Jun 2005 28 May 2009 30,000 — — — 30,000 30,000 27 June 2005 30 Jun 2006 28 May 2009 30,000 — — — 30,000 30,000 27 June 2005 30 Jun 2007 28 May 2009 30,000 — — — 30,000 30,000 24 Nov 2006 24 Nov 2009 24 Nov 2011 550,000 — — — 550,000 — 31 Aug 2007 30 June 2010 30 June 2010 — 369,183 — — 369,183 369,183 31 Aug 2007 30 June 2011 30 June 2011 — 369,183 — — 369,183 — 31 Aug 2007 30 June 2012 31 Aug 2012 — 1,119,063 — — 1,119,063 — 23 Nov 2007 23 Nov 2010 23 Nov 2012 — 250,000 — — 250,000 250,000 1,048,333 2,107,429 (234,333) — 2,921,429 883,183 Vested b) Deferred share plan: The deferred share plan (DSP) is available to chosen directors, including non-executives, and employees to allow them to take a part of their annual remuneration in the form of shares in the Company. Shares vest from the date of issue but cannot be disposed of until the earlier of 10 years from the date of issue or the date their employment or service with the Group ceases. No shares (2007: 100,000) were issued during the year. 52 LUCAS group
c) Employee share acquisition plan: The employee share acquisition plan (ESAP) is available to all eligible employees to acquire ordinary shares in the Company for no consideration as a bonus component of their remuneration. The ESAP complies with current Australian tax legislation, enabling permanent employees to have up to $1,000 of free shares per annum, in respect of an employee share scheme, excluded from their assessable income. Employees must have been employed by any entity within the Group for a minimum period of one year to be eligible. Shares issued under the ESAP rank equally with other fully paid ordinary shares including full voting and dividend rights from the date they vest. No consideration for the shares is receivable from the employees. Shares are issued in the name of the participating employee and vest from the date of issue. However, they cannot be disposed of until the earlier of 3 years from the date of issue or the date their employment with the Group ceases. The Board has the discretion to vary this restriction. The ESAP has no conditions that could result in a recipient forfeiting ownership of shares. No shares were issued under this plan in either of the last two years and all shares previously issued under this plan were released from escrow in previous years. 24. CAPITAL AND RESERVES Reconciliation of movement in capital and reserves attributable to equity holders of the parent. Employee equity benefit reserve $’000 Translation reserve $’000 Share capital $’000 Retained earnings/ (accumulated losses) $’000 Total equity $’000 Consolidated Balance at 1 July 2006 704 — 29,236 (7,704) 22,236 Total recognised income and expense — 306 — 6,396 6,702 Issue of ordinary shares — — 1,419 — 1,419 Equity settled share based payments 81 — — — 81 Balance at 30 June 2007 785 306 30,655 (1,308) 30,438 Balance at 1 July 2007 785 306 30,655 (1,308) 30,438 Total recognised income and expense — 274 — 13,468 13,742 Dividends to equity holders — — — (3,273) (3,273) Issue of ordinary shares — — 23,382 — 23,382 Equity settled share based payments 871 — — — 871 Balance at 30 June 2008 1,656 580 54,037 8,887 65,160 Company Balance at 1 July 2006 — — 29,236 (7,073) 22,163 Total recognised income and expense — — — (1,209) (1,209) Issue of ordinary shares — — 1,419 — 1,419 Equity settled share based payments — — 81 — 81 Balance at 30 June 2007 — — 30,736 (8,282) 22,454 Balance at 1 July 2007 — — 30,736 (8,282) 22,454 Total recognised income and expense — — — 3,719 3,719 Dividends to equity holders — — — (3,273) (3,273) Issue of ordinary shares — — 23,382 — 23,382 Balance at 30 June 2008 — — 54,118 (7,836) 46,282 Nature and purpose of reserves Employee equity benefits reserve: The employee equity benefits reserve represents expense associated with equity settled compensation under the employee management rights plan. Translation reserve: The translation reserve comprises all foreign currency differences arising from the translation of the financial statements of foreign operations. a year of milestones 53
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 and 42: The recoverable amount of an asset
Page 43 and 44: Secondary reporting—geographical
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: 21. PROVISIONS Consolidated Company
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
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AJ Lucas Group annual report 2007-08

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