MACA Limited and its Controlled Entities‌

ABN 42 144 745 782

ASX Preliminary Final Report 30 June 2016 Lodged with the ASX under Listing Rule 4.3A MACA Limited and its Controlled Entities

ABN 42 144 745 782

ASX Preliminary Final Report 30 June 2016

Section

Table of Contents

Section 1

Commentary

Section 2

Results for Announcement to the Market

Section 3

Consolidated Statement of Profit and Loss and Other Comprehensive Income

Section 4

Consolidated Statement of Financial Position

Section 5

Consolidated Statement of Changes In Equity

Section 6

Consolidated Statement of Cash Flows

Section 7

Notes to the Preliminary Financial Report

Section 1 Commentary ‐ FY16 Results

MACA Limited is pleased to report it has delivered a Net Profit After Tax attributable to members of $24.2 million for the full year to 30 June 2016. Earnings before Interest, Tax, Depreciation and Amortisation ('EBITDA') was $90.7 million.

Financial and Operating Highlights
  • Revenue of $431.4 million

  • EBITDA of $90.7 million

  • Net Profit After Tax attributable to members of $24.2 million

  • Final dividend of 4.5 cents per share (fully franked) (Total for FY16 of 8.5 cps)

  • Order book of $1.160 billion as at June 2016

  • Strong balance sheet with a net cash position of $42.0 million

  • Net operating cash flow of $64.1 million

Results Summary

2016 FY Full Year Results

30 June 2016

30 June 2015

Movement

Revenue

$431.4m

$601.4m

(28%)

EBITDA

$90.7m

$138.2m

(34%)

EBIT

$34.3m

$79.1m

(57%)

Net Profit Before Tax

$33.6m

$77.6m

(57%)

Net Profit After Tax

$24.2m

$54.4m

(56%)

Contracted Work in Hand

$1,160m

$1,223m

(5%)

Operating Cash Flow

$64.1m

$136.5m

(53%)

Earnings per share ‐ basic

10.4 cents

24.0 cents

(57%)

Dividends per share (fully franked)

8.5 cents

39.5 cents 1

(78%)

1 Total dividends of 14.5 cents per share and a 25.0 cent per share Special Dividend was paid in FY15.

The MACA board has elected to pay a final dividend of 4.5 cents per share fully franked, taking the full year dividend to 8.5 cents per share fully franked.

The full year earnings result demonstrates the strength of MACA's business, despite what is still a very challenging operating environment for the mining and civil sectors. Operational activities have further rebalanced towards gold with MACA now working for MetalsX, Silver Lake Resources, repeat work with Doray Minerals, and also a new contract with Blackham Resources. The company has also commenced another project in Brazil for Avanco Resources in the first half. This increased geographical presence and experience, coupled with a strong balance sheet has MACA well placed to secure further opportunities.

The result is pleasing given the tough market conditions. Whilst the mining division has produced acceptable results the civil division has had a tough year with tendering costs higher in proportion to revenue and also restructuring costs for the civil divisions in both the Alliance Contracting and Services South East acquisitions. Civil recorded a pre tax loss for the full year of

$4 million, $3 million of which occurred in the first half. The profit before tax has also been impacted by approximately $10 million depreciation expense for equipment that has been idle during the year.

MACA continues to perform well across its broad spectrum of projects in the mining sector. During the period MACA continued operations at Rosemont, Garden Well and Moolart Well for Regis Resources, Abydos and Wodgina for Atlas Iron and for Beadell Resources Tucano project in Brazil. Projects commenced during the year were the Deflector project for Doray Minerals, the Central Murchison project for MetalsX, the Mount Monger project for Silver Lake Resources, the Matilda project for Blackham Resources, and the second project in Brazil for Avanco Resources at the Antas operation. Operations at Hinge for Karara Mining and Andy Well for Doray Minerals were closed during the second half with MACA successfully deploying personnel and some equipment to other MACA projects.

The commencement of the projects above, together with the Golden Grove operations with MMG Mining which has commenced subsequent to year end has enabled utilisation of otherwise idle equipment and importantly continued employment for personnel relocating from completed projects.

MACA's total workforce (including contractors) remains in excess of 1,050 people. A strong culture and commitment to the MACA brand has contributed to the successful delivery of quality projects. The ongoing commitment to our Engineering Graduate and Apprentice Programs continues to ensure we develop quality MACA employees.

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.

The civil sector within Western Australia has been extremely challenging for all participants in the industry with margins under pressure. This has led MACA to expand its civil activities beyond being a purely road and small civil infrastructure provider in Western Australia. In April 2016 we purchased 75% of Services South East Pty Ltd, a private company providing road asset and maintenance services in Victoria and South Australia. This acquisition was made in order to position us to take advantage of an expected increase in outsourcing of road asset management and maintenance in coming years and underpins our strategy to improve the financial performance, and reduce earnings volatility, of the civil division.

Operating Cash Flow and Capital Expenditure

Operating cash flow for the year ending 30 June 2016 was $64.1 million. Capital expenditure for the financial year was $34.8 million (excluding $20.8 million included in acquisitions) relating to plant, equipment and inventory primarily associated with the Avanco Resources Antas project. 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.

Final Dividend

The directors have determined to pay a fully franked final dividend of 4.5c per share with a record date of 5th September 2016 and payment date of 26th September 2016. After adjusting for the depreciation expense on idle equipment, this payout is consistent with the Board's targeted guideline and objective to both provide a return to shareholders and retain cash resources to pursue future growth opportunities. The total dividend paid during the year was $26.8 million (2015: $89.6 million including special dividend).

Events Subsequent to Balance Date

After balance date events included the following:

MACA has commenced a small mining services contract with MMG Mining at Golden Grove. The contract is worth approximately $5 million over a period of 6 months for the first stage of works.

No other matters or circumstances have arisen since the end of the financial year 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.

MACA Limited published this content on 23 August 2016 and is solely responsible for the information contained herein.
Distributed by Public, unedited and unaltered, on 22 August 2016 22:34:03 UTC.

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