Directors’ Report
COMPANY SECRETARY Rudy Sheriff was the Company Secretary during the period 1 July 2022 to 28 February 2023 when he resigned and left Saunders. Brett Gregory has been the Company Secretary from the date of his appointment on 28 February 2023 up to the date of this report. Brett is also Saunders Chief Financial Officer; he is a Chartered Accountant and holds a Bachelor of Commerce from the University of Wollongong. PRINCIPAL ACTIVITIES Saunders is a multi-disciplined engineering and construction company. During the financial year, the principal activities of the Group involved providing design, fabrication, construction, shutdown, maintenance, and industrial automation services to leading organisations across Australia and the Pacific Region. The Group performs these activities across the oil & gas, infrastructure, water, power, new energy, mining & minerals, and defence sectors.
The Directors present their report on Saunders International Limited (“Saunders” or the “Group”) for the financial year ended 30 June 2023 and the independent audit report thereon. In order to comply with the provisions of the Corporations Act 2001, the Directors report as follows: DIRECTORS The Directors as at the date of this Directors’ Report are: y Timothy Burnett (retired as Chairman 30 June 2023)
y Mark Benson y Greg Fletcher y Nick Yates (appointed Chairman 1 July 2023) y Brendan York (appointed 24 July 2023)
Unless stated otherwise the above-named directors held office during the whole of the financial year and since the end of the financial year up the date of this report.
REVIEW OF OPERATIONS
2023 $’000
2022 $’000
A summary of the revenues and results is as follows:
Revenue
200,886 14,151
129,955
Profit before income tax Income tax expense
9,379
(4,660)
(2,828)
Profit attributable to the members of Saunders International Limited
9,491
6,551
2023 $’000
2022 $’000 9,379
Reconciliation of profit before income tax to EBITDA (unaudited):
Profit before income tax Add: Net interest expense
14,151
265
106
Depreciation of owned and hire purchase assets
1,800 1,236
1,590
Depreciation of right of use assets
656
EBITDA
17,452
11,731
Saunders has strengthened its financial position at year end with net assets of $39.3 million, an increase of $7.3 million or 22.8% (2022: $32.0 million). At year end, the Group only had interest-bearing loans relating to leases. We anticipate cash will improve from $12.8 million at 30 June 2023 (2022: $36.7 million) upon finalising Project Caymus contract closure with our client in the coming months. With growth in larger project activity expected to continue into 2024, realisation of project margins will also further strengthen the Group’s cash reserves.
Saunders’ revenue for the year was $200.9 million, an increase of $70.9 million or 54.5% (2022: $130.0 million). The net profit after tax was $9.5 million, an improvement of $2.9 million or 43.9% (2022: $6.6 million), EBITDA was $17.5 million, an improvement of $5.8 million or 49.6% (2022: $11.7 million). Earnings per share for the year was 8.84 cents (2022: 6.24 cents).
Annual Report 2023 34
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