AJ Lucas Group annual report 2007-08

More documents

Recommendations

Info

25. FINANCIAL INSTRUMENTs (cont) At reporting date the Group and the Company had the following variable rate borrowings: Weighted average interest rate % 30 June 2008 30 June 2007 Balance $’000 Weighted average interest rate % Balance $’000 Consolidated Bank overdraft 11.75 (867) 10.10 (5,663) Other borrowings 10.25 (5,077) 9.16 (4,629) Deferred subsidiary acquisition consideration 10.50 (7,226) — — Bank loans 7.93 (37,692) — — Net exposure to cash flow interest rate risk (50,862) (10,292) Company Bank loans 7.93 (22,000) — — Net exposure to cash flow interest rate risk (22,000) — Fair value sensitivity analysis for fixed rate instruments The Group does not account for any fixed rate financial assets and liabilities at fair value through profit or loss, therefore a change in interest rates at the reporting date would not effect profit or loss for the Group or the Company. Cash flow sensitivity analysis for variable rate instruments A change of 100 basis points in interest rates at the reporting date would have increased/(decreased) equity and profit or loss by $859,704 for the Group (2007: $221,415) and $331,000 for the Company (2007: $nil). This analysis assumes that all other variables, in particular foreign currency rates, remain constant. The analysis is performed consistently from year to year. Other market price risk: Equity price risk arises from available-for-sale equity securities held in a quoted corporation. The Group’s investment is managed on an individual basis and all buy and sell decisions are approved by the Risk Management Committee. Fair values Fair values versus carrying amounts: The fair values of financial assets and liabilities, together with the carrying amounts shown in the balance sheet, are as follows: Carrying amount $’000 Consolidated Fair value $’000 Carrying amount $’000 Company Fair value $’000 2008 Bank balances 16,612 16,612 5,519 5,519 Trade and other receivables 56,912 56,912 6,064 6,064 Investments 26,156 29,020 26,879 29,743 Trade and other payables (83,074) (83,074) (632) (632) Bank overdraft (867) (867) — — Other borrowings (5,077) (5,077) — — Deferred subsidiary acquisition consideration (8,726) (8,726) — — Bank loans (37,692) (37,692) (22,000) (22,000) Lease liabilities (17,944) (17,944) — — Convertible notes (726) (726) (726) (726) Loans from subsidiaries — — (29,361) (29,361) (54,426) (51,562) (14,257) (11,393) 58 LUCAS group
Carrying amount $’000 Consolidated Fair value $’000 Carrying amount $’000 Company Fair value $’000 2007 Bank balances 18,222 18,222 13,512 13,512 Trade and other receivables 30,906 30,906 66 66 Investments 63 63 1,260 1,260 Trade and other payables (66,319) (66,319) (84) (84) Bank overdraft (5,663) (5,663) — — Other borrowings (4,629) (4,629) — — Deferred subsidiary acquisition consideration (4,000) (4,000) — — Bank loans — — — — Lease liabilities (9,407) (9,407) — — Convertible notes (24,188) (24,188) (24,188) (24,188) Loans from subsidiaries — — (16,217) (16,217) (65,015) (65,015) (25,651) (25,651) The following methods and assumptions are used in estimating the fair values of financial instruments: • Loans and borrowings, and finance leases—present value of future principal and interest cash flow, discounted at the market rate of interest at the reporting date • Trade and other receivables and payables—carrying amount equals fair value 26. INTERESTS IN JOINT VENTURES Contribution to Joint venture name Principal activities Participation interest operating results of the Group 2008 % 2007 % 2008 $’000 2007 $’000 Amec Spie Capag Lucas Engineering, design, procurement & construction of pipeline 50 50 121 157 Lucas Molopo Exploration for methane gas 70 70 — — Eastern Pipeline Alliance Pipe laying and related construction activities 46.8 47.5 16,340 4,848 Included in the assets and liabilities of the Group are the following assets and liabilities employed in the joint ventures. Consolidated 2008 $’000 2007 $’000 Company 2008 $’000 Assets Current assets Cash and cash equivalents 3,270 493 — — Trade and other receivables 15,079 40 — — Other 131 — — — Construction work in progress 5,615 28,791 — — Total current assets 24,095 29,324 — — Non-current assets Exploration assets 1,582 6,175 — — Intangible development assets 14,462 — — — Total assets 40,139 35,499 — — Liabilities Current liabilities Trade and other payables 16,018 24,068 — — Total liabilities 16,018 24,068 — — 2007 $’000 The exploration and intangible development assets relates to the Group’s interests in the Gloucester and Surat Basins. The recoverability of their carrying amounts is dependent of the successful development and commercial exploitation or sale of the respective area of interest. a year of milestones 59
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 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: Market risk Market risk is the risk
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
show all

AJ Lucas Group annual report 2007-08

Create successful ePaper yourself

Delete template?

Save as template?