DIRECTORS’ REPORT (cont.)
We will continue focusing on our strategic growth trajectory and delivering on that growth. This includes increasing our support of the Defence, Oil and Gas and Infrastructure sectors, while positioning the company to increasingly secure opportunities in the New Energy sector. As this sector grows, Saunders will be ready to provide the comprehensive, full asset lifecycle solutions that will be required. The acquisition of Automation IT in 2023 will further enhance our capabilities across industrial automation and technology solutions and contribute to Saunders’ increasing ability to provide fully integrated service offerings to our clients. After bolstering our project delivery and executive teams with experienced personnel during 2023, we start the new year well positioned to take advantage of opportunities across our services and sectors. Our disciplined approach to contracting is ensuring our projects are protected from the risks of increasing costs, constrained logistics and The Group’s total workforce managed by Saunders was 422 at 30 June 2023 (2022: 352). Saunders remain focused on investing in people and capability to ensure the achievement of our vision and strategic objectives. The directors wish to take this opportunity to thank the entire Saunders Team for their continued dedication in safely delivering the financial results through another challenging year. SAFETY & ENVIRONMENT inclement weather. EMPLOYEES The Group is committed to the safety of our people, clients and the communities in which we operate. During the year, Saunders TRIFR12 was 1.68, a 13% improvement over the prior year (2022: TRIFR12 1.93). The Group recorded a lost time injury in 2023, after reporting in 2022 a zero lost time injury free record for in excess of 4.3 million hours. The environment remains a key focus for the Group, and we will be focusing heavily on improving our sustainability and climate change initiatives in the next year. The Group recognises the material environmental and social risks that are relevant to its activities and takes action to manage those risks. Working with major international organisations including bp, Ampol and Lendlease provides the ability to not only support them to achieve their bold sustainability targets, but to have insight into their plans to do so. We’re leveraging these learnings to define our own Environment, Social and Governance sustainability targets across the Group. EARNINGS PER SHARE The basic and diluted earnings per share is calculated using the weighted average number of shares. This shows the basic earnings per share of 8.84 cents (2022: 6.24 cents) and diluted earnings per share of 8.71 cents (2022: 6.07 cents).
The record revenue performance of the Group over the past 12 months is due to a combination of strong operational execution of projects across the Group and increased opportunities in the markets within which the Group operates. Key Highlights y Safety performance remained strong in 2023 even as we grew our employee numbers to record levels through the delivery of Project Caymus, achieving a TRIFR12 1 metric of 1.68 (2022: TRIFR12 1.93). y The Group gained the Federal Safety Commissioner (FSC) and Defence Industry Security Program (DISP) accreditations during the last 12 months. This will enable us to tender for larger head contract infrastructure and defence projects funded directly or indirectly by the Australian Federal Government. y Saunders announced the acquisition of Automation IT in May 2023 which will further expand and diversify our operations into technology‐based infrastructure (following the August 2021 acquisition of PlantWeave) and further expand Saunders’ capabilities across industrial automation and technology solutions. y Secured three projects with values in excess of $40m each in the last 12 months, including the Western Sydney Airport Aviation Fuel Terminal for Multiplex, bp’s renewable fuels tank refurbishment project at Kwinana in Western Australia and a project for Quantem to more than double diesel storage capacity at its Pelican Point terminal in Adelaide, South Australia. y Leading Australian contractor for the construction and installation of geodesic dome roofs for storage tanks, with 12 roofs installed over 2023. y Secured a $10 million increase to the Bank Guarantee facility since 30 June 2022. The now $40 million limit across our bank guarantee and surety facilities will support our current order book and the strong pipeline of opportunities. y Continued focus on Environmental, Social and Governance matters across the Group 1 TRIFR12 is the number of occurrences of injury for each 200,000 hours worked. OUTLOOK Saunders Work in Hand at 30 June 2023 was $159.1 million (2022: $192.9 million) and had increased to $201.0 million at 31 July 2023. Tendering activity shows the value of live tenders as at 31 July 2023 was $442 million, while the pipeline (yet to be tendered) is at $1.2 billion. This strong pipeline of opportunities reflects the Group’s diversification across each of the operating sectors and represents a mix of new and existing customers.
Annual Report 2023 35
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