Austal Ships Austal Usa Image Marine Oceanfast
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AUSTAL LIMITED CONCISE REPORT 2002 AUSTAL SHIPS AUSTAL USA IMAGE MARINE OCEANFAST The Directors’ Report, Concise Financial Report and Independent Audit 2002/2003 CALENDAR OF EVENTS Report contained within the document represent a Concise Report. ANNUAL GENERAL MEETING The 2002 Concise Report has been derived from Austal Limited’s 2002 The Annual General Meeting of shareholders will be held at 3.00 pm on Annual Report. The financial statements included in the Concise Report 15th October 2002 at the Fremantle Sailing Club, “Success Harbour”, cannot be expected to provide as full an understanding of Austal Limited’s Marine Terrace, Fremantle, Western Australia. financial performance, financial position and financing and investing activities as provided by the 2002 Annual Report. 2002 ANNUAL REPORT A copy of the Austal Limited’s 2002 Annual Report, together with the Independent Audit Report, is available to all shareholders, and will be sent to shareholders without charge upon request. The financial statements can be requested by telephone on +61 8 9410 1111. AUSTAL LIMITED CONCISE REPORT 2002 ABN 73 009 250 266 Chairman’s Report 3 Management Discussion and Analysis 4 Profile of Directors 12 Directors’ Report 14 Statement of Financial Position 17 Statement of Financial Performance 18 Statement of Cashflows 19 Notes to the Financial Statements 20 Directors’ Declaration 21 Corporate Governance 22 Independent Audit Report 23 Shareholder Information 24 Corporate Directory 25 C HAIRMAN’ S R EPORT J OHN R OTHWELL - EXECUTIVE C HAIRMAN Strategically, the year has been very satisfying and I am confident that techniques with a view to capitalising on future US military needs. The we now have the building blocks in place for ongoing growth and a recent appointment of a new Chief Executive Officer with military secure future for the Company. experience will assist in this process. Austal Ships has experienced phenomenal success with the Due to the success of our Auto Express range of vessels, our market introduction of fast ferry technology to military applications. The 101 share of vehicle-passenger ferries is anticipated to increase once the metre vehicle-passenger ferry, “WestPac Express”, is now operating current world surplus stocks of these vessels depletes. Our ongoing under long-term charter to the US Military and continues to exceed strategy of broadening Austal’s product base also continues to deliver expectations. We anticipate a number of orders from the US Defence in results. the foreseeable future as a consequence of the success of this vessel. In a difficult climate, we have secured orders for cruise yachts, vehicle- Austal Ships’ short-listing for a major Royal Australian Navy patrol boat passenger and passenger-only ferries, and luxury motor yachts. At the tender confirms the Company as a credible potential military supplier same time we have delivered successful vessels to the ferry, live-aboard and confirms that our defence portfolio is expanding to meet the needs tourism and crew/supply sectors and have made significant advances in of the military market. the defence market. Three years after the acquisition of Oceanfast, and with a solid We have the structures in place throughout the Company to ensure that management team in place, the company is now a world-class we grow and move forward confidently. Positive opportunities exist for manufacturer of luxury motor yachts. This foundation provides an increased market share in the large ferry, military vessel, patrol boat and opportunity to substantially increase our market share in this business luxury motor yacht sectors and we will continue to grasp these area. opportunities with great enthusiasm. Image Marine is performing well and expertise in the construction of On behalf of the Board of Directors, I would like to thank all Austal an expanding range of vessel types bodes well for future orders from a group employees and shareholders for their ongoing dedication and growing customer base. commitment to the company. January 2002 marked the successful delivery of Austal USA’s first vessels and the Alabama based shipyard is establishing itself in the US domestic market. Austal USA is perfectly positioned to achieve the long-term business strategies of expanding its capabilities and production JOHN ROTHWELL - EXECUTIVE CHAIRMAN 3 M ANAGEMENT D ISCUSSION AND A NALYSIS B OB M C K INNON - MANAGING D IRECTOR The group’s profit performance has improved considerably compared Financial Summary with the previous year and is in line with the prospectus forecast. 2002 2001 Year ending 30 June $M $M This financial year, one large vehicle ferry was substantially completed and the placement of the 101 metre stock boat with the US Marines Revenue 343.6 194.5 contributed significantly to the improved earnings for the current year. In addition, orders were received for 10 smaller vessels and one luxury EBITDA 37.9 6.2 motor yacht. Depreciation & Amortisation (4.4) (4.2) EBIT 33.5 2.0 Product diversification has enabled the group to maintain its workforce Net Interest Received 1.6 1.1 despite the reduction in large ferry contracts. Operating Profit Before Tax 35.1 3.1 Tax Benefit / (Expense) (5.9) 10.7 Whilst the market for large vehicle-passenger ferries remains lower than Operating Profit After Tax 29.3 13.8 desired, overall enquiry levels have increased and other products such Outside Equity Interests 1.1 0.7 as Oceanfast’s luxury motor yachts, the smaller Image Marine live- Net Profit After Tax and OEI 30.4 14.5 aboards, passenger-only catamarans and cruise yachts have all helped to compensate for the low level of activity in the global market for the % EBIT / Sales 10.0 1.1 large ferries. Earnings Per Share (cps) 16.3 9.1 The phasing out of the Bounty (Ships) Act 1980 in Australia and similar Net Assets 134.6 83.6 assistance in the OECD countries, has not had a significant impact on Return on Equity 22.6 17.3 the results for the year nor the group’s competitiveness in the market. During the year the company raised $32.1 million capital through the A favourable outcome of the Australian Taxation Office audit on issue of 32,082,903 shares, which was used to undertake major capital Research and Development expenditure has resulted in a further $1.3 projects and provide additional working capital. Projects undertaken million write back of the tax provision. In addition, the use of tax losses during the year include the new slipway facilities for Oceanfast and the has reduced the tax charge for the year by $4.8 million. purchase of land for future expansion. 4 M ANAGEMENT D ISCUSSION AND A NALYSIS Ferries and Cruise Yachts The 39 metre boutique cruise catamaran for Hotel Properties Limited, Since commencing operation with the US Marines in July 2001, the 101 reported in the last annual report, has now been constructed and metre “WestPac Express” has exceeded all operational expectations and departed for the Maldives in early August. Two river catamarans were is delivering strategic and cost advantages to US defence. The success of delivered to Portuguese operator, Transtejo in September 2001, adding this vessel places Austal at the forefront of this market, positioning the a new product line to Image Marine’s build expertise. company to capitalise on future opportunities for fast ferry applications in global defence markets. A 22 metre catamaran for a private owner was launched just after year end and represents another successful aspect of the group’s In September 2001, Venezuelan ferry operator, Conferry, placed an diversification strategy. order for an 86 metre vehicle-passenger catamaran. This is the customer’s second contract with Austal and was delivered to Conferry Luxury Motor Yachts shortly after year end. Oceanfast continues to increase its share of the luxury motor yacht market and now has four of these high value vessels on order. During During the 2001/2002 financial year, several new orders were secured the year, Oceanfast delivered its first luxury motor yacht since being demonstrating the diversity of Austal’s product range. acquired by Austal. This has led to numerous enquiries from potential customers and recognition of the high quality and standard of The 56 metre vehicle-passenger ferry, “Fares Al Salam”,was delivered to Oceanfast yachts. an Egyptian ferry operator in April 2002. The vessel is the beginning of a fleet upgrade for the client and is the first newbuild from the A 54 metre full displacement steel hull motor yacht and a 56.6 metre Australian high-speed ferry industry for this region. full displacement steel hull motor yacht currently under construction are due to be delivered in 2003. An order for three 47.5 metre passenger catamarans for Hong Kong, secured in October 2001, re-introduces Austal into the Chinese market. Greg Norman’s 69.5 metre expedition yacht, “Aussie Rules”, is now These vessels were ordered by New World First Ferry of Hong Kong, nearing completion and is expected to set a new benchmark in motor one of the largest ferry operators in the Asia Pacific region. yacht construction. In May this year, Austal was awarded a contract for two catamarans for In November 2001, Oceanfast, secured a new order for a 52 metre ferry operator, OVDS of Norway. The contract is Austal’s second for (170ft) luxury motor yacht for a new Oceanfast client. The vessel will be Norway and was won in very competitive circumstances, including delivered towards the end of the 2003 calendar year. competition from local Norwegian shipyards. The growth in production of luxury motor yachts has increased Austal’s presence in the cruise yacht market has also been further training costs and led to manufacturing inefficiencies during the year.