SI Annual Report 2016

Saunders International Limited
Directors’ Report
DIRECTORS’ REPORT
The Directors present their report on Saunders International Limited (“Saunders” or “Company”) for the financial year ended
30 June 2016 and the independent audit report thereon.
DIRECTORS
The following persons are directors of Saunders International Limited:
Timothy Burnett
Mark Benson (Appointed 10 Aug 2015)
Malcolm McComas
Gregory Fletcher (Appointed 1 Jul 2015)
John Power (Resigned 12 Nov 2015)
The above named directors held office during the whole of the financial year and since the end of the financial year, unless
otherwise noted.
COMPANY SECRETARY
Steven Dadich was Company Secretary during the whole year and up to the date of this report.
PRINCIPAL ACTIVITIES
During the financial year, the principal activities of Saunders were the design, construction and maintenance of steel storage
tanks and the project management of ancillary facilities.
REVIEW OF OPERATIONS
A Summary of the revenues and results is as follows:-
2016
$’000
2015
$’000
Revenue 41,828 43,954
Profit before income tax 3,705 6,324
Income tax expense (814) (1,893)
Profit attributable to the member of Saunders International Limited 2,891 4,431
Operating and Financial Review
During the 2016 financial year, Saunders’ revenue was $41.8 million. This represents a 4.8% decrease on the prior year
(2015: $44.0 million). The decrease in revenue and margin is attributed to the continuing delay in the release of major projects
in the Engineering Construction business and margin pressure caused by increased competition.
The activities of Saunders were generally Australia wide and the revenue was generated across all states and territories (except
the ACT and Tasmania).
The net profit after tax decreased by 34.8% to $2.9 million (2015: $4.4 million).
Basic earnings per share were 3.68 cents, a 34.8% decrease on FY2015 (5.64 cents).
Cash flows from operating activities were $1.6 million, a 70.0% decrease on FY2015 ($5.2M).
The directors consider the Company to be in a strong financial position at year end with cash and cash equivalent of $14.3
million (FY2015 $17.9 million). The cash and cash equivalents of 30 June 2016 is equivalent to 18.23 cents per share and the
Company has no interest bearing debt.
Trade and other receivables and trade and other payables are in line with relative stages of projects and contracts
at year end.
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