Text supplied here is automatically extracted form the PDF and is not to be relied on for accuracy.
CORPORATE DIRECTORY - GLOBAL CONSTRUCTION SERVICES LIMITED
DIRECTORS
SAM MANGIONE
NON-EXECUTIVE CHAIRMAN
ENZO GULLOTTI
MANAGING DIRECTOR
DAVID KIGGINS
DIRECTOR
GEORGE CHIARI
DIRECTOR
COMPANY SECRETARY
GABRIEL CHIAPPINI
REGISTERED OFFICE
2 REDCLIFFE ROAD REDCLIFFE WESTERN AUSTRALIA 6104
TELEPHONE: +61 8 9479 7990 FACSIMILE: +61 8 9479 7789 WEBSITE: WWW.GCS-GROUP.COM.AU
ACN: 104 662 259 ABN: 81 104 662 259
AUDITORS
BDO KENDALLS AUDIT & ASSURANCE (WA) PTY LTD 128 HAY STREET SUBIACO WESTERN AUSTRALIA 6008
BANKERS
WESTPAC BANKING CORPORATION 109 ST GEORGEÕS TERRACE PERTH WESTERN AUSTRALIA 6000
SOLICITORS
KITTO & KITTO BARRISTERS & SOLICITORS 19 HOWARD STREET PERTH WESTERN AUSTRALIA 6000
STOCK EXCHANGE
THE COMPANYÕS SECURITIES ARE QUOTED ON THE OFFICIAL LIST OF THE AUSTRALIAN SECURITIES EXCHANGE LTD, THE HOME EXCHANGE BEING AUSTRALIAN SECURITIES EXCHANGE (PERTH) LIMITED.
2 THE ESPLANADE PERTH WESTERN AUSTRALIA 6000
ASX CODE
GCS
SHARE REGISTRY
COMPUTERSHARE INVESTOR SERVICES PTY LTD LEVEL 2, RESERVE BANK BUILDING 45 ST GEORGEÕS TERRACE PERTH
WESTERN AUSTRALIA 6000
TELEPHONE: +61 8 9323 2000 1300 55 70 10 (WITHIN AUSTRALIA)
FOR ANY CHANGE IN PERSONAL DETAILS, PLEASE CONTACT COMPUTERSHARE.
TABLE OF CONTENTS
FINANCIAL HIGHLIGHTS
1
CORPORATE HIGHLIGHTS
1
LETTER FROM CHAIRMAN AND MANAGING DIRECTOR
2
BOARD OF DIRECTORS
6
PHILOSOPHY AND OBJECTIVES
7
THE COMPANY
8
PRODUCTS AND SERVICES
10
CAPABILITIES AND COMPETENCIES
12
HEALTH AND SAFETY
12
QUALITY ASSURANCE
14
ENVIRONMENT
14
COMMUNITY
16
CORPORATE GOVERNANCE
18
FINANCIAL REPORT
29
È
THE DIRECTORS ARE PLEASED TO REPORT A STRONG RESULT IN WHAT HAS BEEN ONE OF THE MOST CHALLENGING AND UNCERTAIN ECONOMIC ENVIRONMENTS EVER SEEN
FINANCIAL HIGHLIGHTS
¥ THE GCS GROUP DELIVERED A STRONG EARNINGS RESULT OF $10.8 MILLION (2008: $9.8M) ON GROUP REVENUE FOR THE YEAR OF $85.6 MILLION, AN INCREASE OF 22% OVER THE PRIOR YEAR (2008: $69.1M).
¥ EBITDA INCREASED TO $23.2 MILLION (2008: $19.4M) WITH THE MARGIN REMAINING CONSISTENT AT 27.1% (2008: 27.7%).
¥ EBIT OF $17.9 MILLION (2008: $15.8M) AT 20.9% MARGIN WHICH IS SLIGHTLY REDUCED FROM THE PRIOR YEAR (2008: 22.5%) AND PBT OF $14.2M(2008:$14.1M). THEYIELDFOR2009IS12.7%(2008:14.0%).
¥ TOTAL DIVIDEND PAID FOR THE YEAR OF 6.5 CENTS, FULLY FRANKED - $5,373K. THE DIVIDEND REINVESTMENT PLAN WAS APPLIED TO THE FINAL DIVIDEND AT 88.0 CENTS PER SHARE, GENERATING A STRONG PARTICIPATION RATE OF 31.2%.
¥ ON 17 SEPTEMBER 2009 THE COMPANY PLACED 2,272,728 SHARES AT 88.0 CENTS, THE SAME PRICE AS THE SHARES ISSUED UNDER THE DRP FOR THE FULL YEAR DIVIDEND PAID ON 29 SEPTEMBER 2009.
¥ ADOPTING THE TAX CONSOLIDATION REGIME RESULTED IN A REFUND OF $3.15M, RECEIVED IN APRIL 2009.
CORPORATE HIGHLIGHTS
¥ THE COMMERCIAL DIVISION HAS PERFORMED WELL SECURING SIGNIFICANT CONTRACTS, INCLUDING THE BROOKFIELD MULTIPLEX CITY SQUARE PROJECT IN THE PERTH CBD VALUED AT $24 MILLION, AND HAS COMMENCED WORK ON STAGE 2 OF THE CLAREMONT QUARTER REDEVELOPMENT FOR BROOKFIELD MULTIPLEX - VALUED AT $18 MILLION - WHICH IS EXPECTED TO BE COMPLETED WITHIN 15 MONTHS FROM JUNE 2009.
¥ NEWAVE, THE GROUPÕS CONCRETE CONTRACTING BUSINESS ACQUIRED IN FY08, HAS OUT-PERFORMED INITIAL EXPECTATIONS AND ACHIEVED ITS $2M EARN-OUT REQUIREMENT AFTER ONLY 10 MONTHS OF TRADING UNDER GCS OWNERSHIP.
¥ THE GROUP LAUNCHED GCS HIRE, A GENERAL PLANT HIRE OPERATION, TO SUPPORT ITS EXISTING CUSTOMER BASE. THE BUSINESS HAS EXPANDED AND NOW HAS OPERATIONAL SITES IN BASSENDEAN, REDCLIFFE, KWINANA, BUNBURY AND BUSSELTON.
¥ THE RESIDENTIAL DIVISION HAS PERFORMED AS EXPECTED, DELIVERING RESULTS IN LINE WITH ITS SALES TARGETS HOWEVER THIS MARKET SECTOR HAS EXPERIENCED INCREASED MARGIN PRESSURE IN THE SECOND HALF OF THE FINANCIAL YEAR, CONDITIONS THAT ARE EXPECTED TO CONTINUE IN THE FIRST HALF OF FY10. LEVELS OF SUCCESS IN SECURING NEW BUSINESS AND RETAINING EXISTING CUSTOMERS REMAIN CONSISTENT WITH MANAGEMENT EXPECTATIONS AND A SIMILAR RESULT IS EXPECTED IN FY10.
¥ THE RESOURCES & INDUSTRIAL SERVICES DIVISION HAS DELIVERED A GOOD RESULT WITH GCS NORTHWEST CONTINUING TO DELIVER ABOVE THE INITIAL MANAGEMENT EXPECTATION. IT IS WELL ESTABLISHED AND STRATEGICALLY POSITIONED TO TAKE ADVANTAGE OF THE SIGNIFICANT PIPELINE OF NEW OPPORTUNITIES IN THE NORTHWEST.
¥ POST BALANCE DATE THE GROUP EXERCISED ITS OPTIONS TO INCREASE ITS HOLDING IN COASTAL HIRE PTY LTD TO 87.5% AND ITS INTEREST IN GCS SITE SERVICES PTY LTD TO 100%.
1
