Maca : Half Year Accounts (22 pages)

MACA Limited and its Controlled Entities‌‌‌

ABN 42 144 745 782

Half Year Financial Report and Appendix 4D

31 December 2016

MACA Limited and its Controlled Entities

ABN 42 144 745 782

Half Yearly Financial Report 31 December 2016

Section	Table of Contents
Section 1	Commentary
Section 2	Results for Announcement to the Market - Appendix 4D
Section 3	Condensed Consolidated Statement of Profit and Loss and Other Comprehensive Income
Section 4	Condensed Consolidated Statement of Financial Position
Section 5	Condensed Consolidated Statement of Changes In Equity
Section 6	Condensed Consolidated Statement of Cash Flows
Section 7	Notes to the Financial Statements
Section 8	Directors' Declaration

Section 1 Commentary - HY17 accounts and Results Discussion

MACA Limited ('MACA') (ASX: MLD) is pleased to announce it has delivered a half year profit result with net profit after tax to December 2016 of $16.6 million (up 34% on pcp) on revenue of $242.5 million (up 16% on pcp). Earnings before Interest, Tax, Depreciation and Amortisation ('EBITDA') was $52.2 million (up 22% on pcp).

Financial and Operating Highlights

• Revenue up 16% to $242.5 million

• EBITDA up 22% to $52.2 million

• Net Profit After Tax attributable to members up 34% to $16.6 million

• Interim dividend of 4.5 cents per share (fully franked) (1H FY16 of 4.0 cps)

• Order book of $1.194 billion as at December 2016

• Strong balance sheet with a net cash position of $61.1 million

• Net operating cash flow of $43.6 million

Results Summary

FY17 Half Year Results	31 December 2016	31 December 2015	Movement
Revenue	$242.5m	$208.5m	16%
EBITDA	$52.2m	$42.9m	22%
EBIT	$26.1m	$16.4m	59%
Net Profit Before Tax	$25.0m	$16.1m	55%
Net Profit After Tax	$16.6m	$12.4m	34%
Contracted Work in Hand	$1,194m	$1,150m	-
Operating Cash Flow	$43.6m	$30.6m	42%
Earnings per share - basic	7.1 cents	5.3 cents	34%
Dividends per share (fully franked)	4.5 cents	4.0 cents	13%

The board has resolved to pay an interim dividend of 4.5 cents per share reflecting strong operating cash-flow generated over the period and a solid balance sheet position. The dividend will be fully franked and will be payable on 22 March 2017 to eligible shareholders who are recorded on the Company's register as at the record date of 9 March 2017.

MACA continues to perform well across its broad spectrum of projects in the mining sector in Western Australia. During the period MACA continued operations at Rosemont, Garden Well and Moolart Well for Regis Resources, the Central Murchison project for MetalsX, the Deflector project for Doray Minerals and the Matilda project for Blackham Resources. Operations at Mount Monger for Silver Lake Resources and the Golden Grove project for MMG Mining were closed during the second half with MACA successfully deploying personnel and some equipment to other MACA projects. The Abydos and Wodgina projects for Atlas Iron continued under the contractor collaboration model, making a postive contribution on higher iron ore prices.

Subsequent to year end the Deflector project for Doray Minerals has been completed.

The company's international operations in Brazil at the Beadell Resources Tucano project and Avanco Resources Antas project are delivering improved production performance with now more than two years experience in country, and we continue to pursue further opportunities as they arise.

The civil sector within Western Australia has been extremely challenging for all participants in the industry with margins remaining under pressure. The half year results have been impacted by a road project in Western Australia with several claims being pursued vigorously for which costs have been recognised, and the cost of maintaining a divisional overhead whilst growing the business from a lower revenue base. The Victorian Civil business has been successful in being awarded several small civil projects for commencement in the second half of the financial year.

The infrastructure business has won a small road maintenance contract in the Kimberley region that commenced in February and runs over a period of 2 years with extensions of a further 2 years available. The division continues to tender asset maintenance contracts with a recurring revenue stream.

In December MACA acquired 60% of Interquip Pty Ltd ('Interquip'), a privately-owned business providing end to end mineral processing solutions predominantly in Western Australia and the Northern Territory. The acquisition enables MACA to establish a Structural, Mechanical and Piping (SMP) offering within the mining industry. MACA sees many near term opportunities to grow the Interquip business utilising our strong balance sheet and to complement the current services we offer our client base.

MACA's total workforce (including contractors) remains in excess of 1,275 people. A strong culture and commitment to the MACA brand has contributed to the successful delivery of quality projects.

MACA remains committed to providing all of our employees and contractors with a safe place to work and we continually strive to ensure that safety remains a core focus within our business.

Operating Cash Flow and Capital Expenditure

Operating cash flow for the period ending 31 December was $43.6 million. Capital expenditure for the financial year was $14.5 million relating to plant and equipment. Capital equipment purchases were funded by a combination of cash and equipment finance contracts. The company did not enter into any off balance sheet financing arrangements.

Interim Dividend

The directors have determined to pay an fully franked interim dividend of 4.5c per share with a record date of 9 March 2017 and payment date of 22 March 2017. The total of dividends paid during the half was $10.479 million (2015: $17.5 million).

Events Subsequent to Balance Date

No matters or circumstances have arisen since the half year to December 2016 which significantly affected or may significantly affect the operations of the Group, the results of those operations, or the state of affairs of the Group in future financial years.

Future Developments and Prospects

MACA remains well placed to target a considerably improved pipeline of tenders in addition to the current $1.2 billion Work in Hand position. With an improvement in both mining activity and investor sentiment towards the sector MACA believes it is well placed to benefit from the continuation of this recovery and funding of projects. The Civil and Infrastructure markets remain challenging with ongoing margin pressure, however, there are significant revenue opportunities within the sector. At this stage MACA is expecting revenue for FY2017 to exceed $500 million. MACA is selectively identifying development opportunities and is well positioned to deliver quality services to customers in the mining, civil and infrastructure sectors.

MACA highly values its hard working and loyal employees. The Board would like to extend its thanks to them and all of our stakeholders who remain an essential part of our success.