SRG Global : Appendix 4D & 1H FY22 Half Year Report

For personal use only

For personal use only

Table of Contents

Appendix 4D Information	3
Directors' Report	4
Auditor's Independence Declaration	6
Half-Year Report	7
Directors' Declaration	17
Independent Auditor's Review Report	18
Corporate Directory	20

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Appendix 4D Information for ASX

For the Half-Year Ended 31 December 2021

The following information is provided to ASX in accordance with Listing Rule 4.2A.3. This information should be read in conjunction with SRG Global Limited's Financial Report for the half-year ended 31 December 2021 as contained herein.

Name of entity

SRG Global Limited ('Company'; 'Group' or 'SRG Global'), ABN 81 104 662 259

Details of reporting period

6-month period ended

Reporting period			31 December 2021
Previous corresponding period			31 December 2020
Results for announcement to the market				2020
For the six months ended 31 December			2021
		%	$000's	$000's
Revenue from ordinary activities	Up	5	296,774	283,299
EBITDA	Up	32	27,036	20,509
EBIT(A) (1)	Up	69	15,921	9,437
NPAT(A) (2)	Up	102	10,089	4,977
Profit before tax	Up	113	12,909	6,062
Profit from ordinary activities after tax attributable to members	Up	147	8,830	3,572
Net profit for the period attributable to members	Up	147	8,830	3,572
Earnings per share (basic)	Up	148	2.0¢	0.8¢
Net tangible assets per security (basic)	Up	35	28.6¢	21.2¢

1. Earnings before interest, tax and amortisation of customer contracts
2. Net profit before amortisation of customer contracts and after tax

Dividends & distributions			Franked
	Amount per		Amount per
	security		security
Reporting period	1.5¢		1.5¢
Interim dividend for the six months ended 31 December 2021
Previous corresponding period	1.0¢		1.0¢
Interim dividend for the six months ended 31 December 2020
Dividend reinvestment plan
SRG Global does not have a dividend reinvestment plan.

Half-year information given to ASX under listing rule 4.2A.3

This interim financial report does not include all the notes of the type normally included in an annual financial report. Accordingly, this report should be read in conjunction with the annual financial report for the year ended 30 June 2021 and any public announcements made during the reporting period by the Company in accordance with the continuous disclosure requirements of the ASX Listing Rules and the Corporations Act 2001.

3 SRG GLOBAL APPENDIX 4D & HALF-YEAR REPORT

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Directors' Report

For the Half-Year Ended 31 December 2021

The Directors submit their report for the half-year ended 31 December 2021 for the Group, consisting of SRG Global Limited and its controlled entities.

Directors

The names of the Company's directors in office during the half-year and until the date of this report are set out below. Directors were in office for the entire period unless otherwise stated.

Non-Executive Chairman	Peter McMorrow
Managing Director	David Macgeorge
Non-Executive Director	Peter Brecht
Non-Executive Director	Michael Atkins
Non-Executive Director	Amber Banfield (Appointed 25 October 2021)

Company Secretaries

The names of the Company Secretaries in office during the half-year and until the date of this report are set out below. Company Secretaries were in office for the entire period unless otherwise stated.

Roger Lee

Judson Lorkin (Appointed 27 August 2021)

Principal Activities

During the half-year, the principal continuing activities of the consolidated entity consisted of delivering a suite of engineering-led specialist asset maintenance, mining services and construction services across the entire asset lifecycle.

Review of Operations

Asset Services Segment

The Asset Services segment involves Specialist Maintenance and Access Solutions. Specialist Maintenance includes highly skilled specialist maintenance services focussing on refractory, oil & gas, industrial assets and transport and marine infrastructure. Access Solutions includes comprehensive structural and technical access solutions targeting the mining and resources, oil & gas, offshore marine and industrial locations. Contracts are typically long term in nature.

For the six months ended 31 December 2021 the Asset Services segment generated revenues of $100.8m, an increase of 17.3% on the previous corresponding period. EBITDA for the six-month period was $11.6m, an increase of 14.0% on the previous corresponding period.

Mining Services Segment

The Mining Services segment involves Production Drill & Blast and Specialist Geotech. Production Drill & Blast includes an integrated range of complementary production drill & blast services working across multiple commodities including gold, precious metals and iron ore. Specialist Geotech includes highly technical specialist ground and slope stabilisation services for all mining services applications. Contracts are typically long term in nature.

For the six months ended 31 December 2021 the Mining Services segment generated revenues of $53.1m, an increase of 23.8% on the previous corresponding period. EBITDA for the six-month period was $11.4m, an increase of 14.7% on the previous corresponding period.

Construction Segment

The Construction segment involves Civil & Engineering and Specialist Building. Civil & Engineering includes specialist engineering, post-tensioning and construction services for complex structures in key markets including dams, bridges, windfarms and tanks.

4 SRG GLOBAL APPENDIX 4D & HALF-YEAR REPORT

For personal use only

Directors' Report

For the Half-Year Ended 31 December 2021

Construction Segment (continued)

Specialist Building includes specialist facade and structural construction and remediation services with repeat, tier one clients across multiple sectors. Contracts are typically medium term in nature.

For the six months ended 31 December 2021 the Construction segment generated revenues of $142.8m, a decrease of 7.5% on the previous corresponding period. EBITDA for the six-month period was $11.1m, an increase of 51.2% on the previous corresponding period.

Matters subsequent to the end of the half-year financial results

On 10 February 2022, the Group secured a $150m contract with OneSteel Manufacturing (SIMEC Mining). The scope of services includes providing specialist drill and blast services at SIMEC Mining's iron ore operations in South Australia. The contract is for the duration of five years with contract services commencing immediately.

On 15 February 2022, the Group secured a $11m contract with the Victorian Department of Transport to complete the Latrobe River Bridge Replacement project. The project will run for approximately 14 months commencing immediately.

On 17 February 2022, the Group was awarded three Mining Services contracts valued at $60m relating to the provision of drill and blast services, RC grade control drilling, geotechnical ground support services and explosives supply. These contracts include a two-year term contract with Evolution Mining at Cowal gold mine in NSW, a two-year term contract with Navarre Minerals at Mt Carlton gold mine in QLD and a six-month contract with RED 5 at Great Western gold mine in WA.

On 22 February 2022, the Company declared an interim fully franked dividend of 1.5c per share. The Record Date for this dividend is 10 March 2022 and the payment is scheduled for 28 April 2022.

No other matter or circumstance has arisen since 31 December 2021 that has significantly affected, or may significantly affect the consolidated entity's operations, the results of those operations, or the Group's state of affairs in future financial years other than the matters above.

Dividends

On Tuesday, 22 February 2022, the Company declared an interim 1.5c per share, fully franked dividend (2020: 1c per share fully franked). The Record Date for this dividend is 10 March 2022 with payment to be made on 28 April 2022.

Auditors' Independence Declaration

The auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set on the next page and forms part of the Directors' Report for the half-year ended 31 December 2021.

Rounding

The Company is a company of the kind referred to in ASIC Corporations (Rounding in Financials / Directors' Reports) Instrument 2016/91, dated 24 March 2016, and in accordance with that Corporations Instrument amounts in the interim financial report are rounded off to the nearest thousand dollars ($'000), unless otherwise indicated.

This report is made in accordance with a resolution of the directors, pursuant to Section 306(3) of the Corporations Act 2001.

Peter McMorrow

Non-Executive Chairman

Perth, 22 February 2022

5 SRG GLOBAL APPENDIX 4D & HALF-YEAR REPORT