AJ Lucas Group Limited Annual Report 1999

More documents

Recommendations

Info

APIA PresidentAndrew Lukasaddressing anAPIA conference inMelbourne.A year as APIApresidentThe Australian pipelineindustry isexpanding rapidlywith thousands ofkilometres of pipelineson the drawingboard. Competitionamong pipeline ownersand sellers of gasis promoted andencouraged.APIA, the AustralianPipeline Industry Association,facilitatesindustry liaison withgovernment and providesa forum for networking every part ofthe sector – suppliers, engineers, contractorsand owners .This year, APIA has moved from a part-timesecretariat in Melbourne to permanentheadquarters in Canberra. This is staffed bya very professional team led by an executivedirector who’s an acknowledged expert inthe industry.APIA is focused on making it easier forinvestors to build and own more pipelines.Good progress is being made. We haveworked successfully with state and federalgovernments to streamline Native Titleapprovals and pipeline licensing.We have initiated research and developmentwhich has already saved millions of dollarsof capital cost.APIA has focused on safety and the environment,with many standard guidelinesproduced and more to come.In short, APIA, like the industry it represents,is growing in an exciting environmentof opportunity we haven’t seen in Australiabefore.Andrew LukasPresident, APIAManaging Director, AJ Lucas Group LimitedThe four eras of Lucas (so far)The beginnings 1957The business was started by civil engineerAndrew Lukas (Snr). The first contract wasextending the water mains on Sydney’sNorth Shore for the Water Board.Through the 1960s Lucas was a key contractorfor water and sewer infrastructure inSydney, working on major land releases.Extending into oil and gas 1975Andrew Lukas (Jnr) joined the business,bringing his US pipeline experience. Lucasfocused on the gas industry which wasexpanding rapidly. For Hartogen and BridgeOil we built oil and gas gathering systems.This side of the business continued to growto its current position as a leader in the constructionof gas pipelines in Australia.Also during this era, considerable work wasobtained in oil and chemical tank farms.Pioneering directional drilling 1989In the late 1980s, Lucas pioneered directionaldrilling in Australia.Lucas has led the industry in Australia eversince – in technology, equipment and projectscompleted. Internationally, we haveworked successfully in Sri Lanka, PapuaNew Guinea, Malaysia and now Hong Kong.Telecommunicationsand total solutions 1999This latest era is a particularly exciting one.Earlier this year Lucas listed on theAustralian Stock Exchange.Outsourcing is now common in the infrastructureindustry as companies focus ontheir core businesses.Our new division, Lucas Networks, hasmade a successful entry into telecommunicationswith major Telstra contracts.Our role in infrastructure now spans water,energy and telecommunications. Our experienceand understanding of infrastructureand technology puts us in an ideal positionto work effectively in these now-deregulatedand rapidly expanding industries.PAGE 8
AJ Lucas Group Limited (formerly AJ Lucas Contractors Pty Limited)and its controlled entities. ACN 060 309 104Concise Financial Report for the year ended 30 June 1999Corporate governance statementThis statement outlines the main Corporate Governancepractices that were put in place upon the conversion ofAJ Lucas Group Limited to a public company on 28 May1999. These practices are dealt with under the followingheadings:• Board of directors and its committees• Business risk• Internal control framework• Ethical standardsBoard of directors and its committeesThe Board is responsible for the overall CorporateGovernance of the consolidated entity including its strategicdirection, establishing goals for management andmonitoring the achievement of these goals. To assist in theexecution of its responsibilities, the Board has establisheda number of Board Committees including an AuditCommittee and a Finance Committee. These committeeshave written mandates and operating procedures, whichare reviewed on a regular basis. The effectiveness of eachcommittee is also constantly monitored. The Board hasalso established a framework for the management of theconsolidated entity including a system of internal control,a business risk management process and the establishmentof appropriate ethical standards.Composition of the BoardThe names of the directors of the Company in office atthe date of this Statement are set out in the Directors’Report on page 12 of this financial report.The composition of the Board is determined using thefollowing principles:• The Board should comprise five directors. Thisnumber may be increased where it is felt that additionalexpertise is required in specific areas, orwhen an outstanding candidate is identified.• The Chair of the Board may either be an executive ornon-executive director.• The Board should comprise directors with a broadrange of expertise both nationally and internationally.The composition of the Board is reviewed on an annualbasis by the Chair to ensure that the Board has theappropriate mix of expertise and experience. When avacancy exists, through whatever cause, or where it isconsidered that the Board would benefit from the servicesof a new director with particular skills, the Board mayappoint a director who must stand for election at thenext general meeting of shareholders.The terms and conditions of appointment and retirement ofnon-executive directors are set out in a letter of appointment.The performance of all directors is reviewed by theChair each year.Director educationThe consolidated entity has a formal process to educatenew directors about the nature of the business, currentissues, the corporate strategy and the expectations of theconsolidated entity concerning performance of directors.Directors also have the opportunity to visit consolidatedentity facilities and meet with management to gain a betterunderstanding of business operations.Directors’ dealings in Company sharesCompany policy permits directors to acquire shares inthe Company. Directors must notify the Company secretarybefore they sell or buy shares in the Company.Independent professional adviceEach director has the right to seek independent professionaladvice at the consolidated entity’s expense.However, prior approval of the Chair is required, whichwould not be unreasonably withheld.Audit CommitteeThe Audit Committee was established in July 1999. Therole of the Audit Committee has been documented in aCharter, which is approved by the Board of Directors. Inaccordance with this Charter, all members of theCommittee must be non-executive directors. The role ofthe Committee will be to advise on the establishmentand maintenance of a framework of internal control andappropriate ethical standards for the management of theconsolidated entity.It also gives the Board of Directors additional assuranceregarding the quality and reliability of financial informationprepared for use by the Board in determiningpolicies or for inclusion in the financial report.The members of the Audit Committee are:Mr Martin Green (Chairman)Mr Garry O’MeallyMr Ian Stuart-RobertsonThe external auditors, Chief Executive Officer and ChiefFinancial Officer are invited to Audit Committee meet-PAGE 9
Page 1 and 2: AJ Lucas Group LimitedACN 060 309 1
Page 3 and 4: AJ Lucas Group LimitedIntroducing L
Page 5 and 6: Lucas’ Herculesdirectional drilli
Page 7 and 8: Apart from its technical and commer
Page 9: winning two regions of NSW in Telst
Page 13 and 14: cessfully minimise vulnerabilities
Page 15 and 16: inated in foreign currencies. It is
Page 17 and 18: Directors’ interestsThe relevant
Page 19 and 20: Discussion and analysis of the bala
Page 21 and 22: Discussion and analysis of the stat
Page 23 and 24: GuaranteesThe consolidated entity h
Page 25 and 26: Shareholder informationShareholding
Page 27 and 28: Writing, design & production by Ad

AJ Lucas Group Limited Annual Report 1999

You also want an ePaper? Increase the reach of your titles

Delete template?

Save as template?