Leighton Holdings Limited Concise Annual Report 2003
Total Page:16
File Type:pdf, Size:1020Kb
2003 powered by people leighton leighton holdings limited concise annual report 01 Minimum requirements: 12 x CD-ROM drive or above MacOS 9.1, OS X 10.2 or later Display 800 x 600, 16bit Colour Macintosh PowerPC, G3 or above Speakers more than 64 MB Ram Web Browser to connect to the Leighton 12 x CD-ROM drive or above web site Display 800 x 600, 16bit Colour If the disc does not start automatically on a QuickTime Version 4 or later PC navigate to the Leighton executable file on Web Browser to connect to the Leighton the CD identifiable by the Leighton logo icon. web site or There is no automatic start for Macintosh Windows 98, ME, NT, 2000, XP computers – double click the icon to play. Pentium III or above more than 64 MB Ram 16bit Soundcard why the focus on people? The Leighton Group is renowned for its industry leading approach to business, its unique and diverse capabilities and its ethical and responsible approach to getting the job done. But there’s more to us than that and the foundation of our reputation, financial strength and continued growth is our people — all 15,236 of them. In this year’s Annual Report we want to focus on our greatest asset, our people. We’ve done this for a number of reasons, primarily though to give our shareholders and stakeholders a glimpse of what goes on behind scenes within the Group. It’s a chance for us to highlight our people’s skills and expertise on some major projects. Rather than concentrate on the engineering outcome of those projects, we have instead focused on a selection of the unique individuals who help turn these projects into reality. They are only part of the team however, and it is this coming together of skills and personalities that drives our performance. Our people operate in multi-skilled teams from strategic planning and financial management, right through to the physical design, construction and operations and maintenance of a completed project. We have a diverse and versatile pool of talent that overcomes complex challenges on a daily basis. Our people are loyal, hard working and honest and it is these characteristics which helps set our Group apart. The Group is powered by its people. They are the key to our success. Cover photo Parramatta Rail Link New South Wales, Thiess 02 Leighton Who Are We? What Do We Do? Leighton Holdings Limited is the parent company of Leighton Group companies offer a broad range of project Leighton Holdings Limited ACN 004 482 982 Australia’s largest project development and contracting development and contracting services and skills to public ABN 57 004 482 982 group. Founded in Victoria in 1949, the organisation has and private sector clients from a wide range of industries. Notice of Annual General Meeting 2003 grown from a small, privately owned civil engineering firm Project development skills – community infrastructure, To: The Shareholders into a dynamic group that includes Thiess, Leighton property or resources-based – and project management of Contractors, Leighton Asia, John Holland and Leighton construction and property developments complement the Notice is hereby given that the Annual General Meeting of the Properties. With over 15,200 employees, the Group’s Group’s contracting activities. These activities include members of Leighton Holdings Limited will be held at the operations are spread all around the Asia-Pacific region on engineering and building construction, contract mining, Four Seasons Hotel Sydney at 199 George Street, Sydney, on projects in Australia, Hong Kong, Indonesia, Malaysia, environmental services, operations and maintenance, and Thursday 6 November 2003, at 10.00 am. Singapore, the Philippines, Thailand, Vietnam, China, Taiwan, facilities management. Key resources include an Sri Lanka and New Zealand. Leighton Holdings is listed on the experienced, long-serving management team, a strong A separate Notice of Meeting and Proxy Form is enclosed. Australian Stock Exchange and has its head office in Sydney. balance sheet and the largest fleet of mobile plant and During the course of the meeting, a short presentation on the equipment in Australia. Group’s operations will be given by Wal King AM, Chief Executive Officer. All present are invited to join the Directors for light refreshments after the meeting. LEIGHTON HOLDINGS LIMITED CONCISE ANNUAL REPORT 2003 03 experienced Having people with the right blend of skills The Duta Plaza (Avenue K) project required and capabilities is vital in our industry, an experienced team to organise the especially on highly complex projects such as construction financing, the construction Duta Plaza (Avenue K), a major retail, program, and rehabilitation of existing commercial and residential development in abandoned structures at the site. Thanks the heart of Kuala Lumpur, comprising two to the team’s diverse experience and breadth apartment towers, a seven-storey retail of capability these major challenges were podium and six storeys of basement parking. overcome and the project commenced quicker than anticipated, much to the delight A team of almost 50 staff from Leighton Asia of the client, City Properties Sdn Bhd. (Southern) are responsible for managing the construction of the first phase of the project, which includes the full retail podium and basement parking. Engineers and designers, as well as key IT and administration support staff, form the core of the Leighton Asia team, combining their local knowledge and experience of the operating environment with their proven specialist skills. 04 Duta Plaza (Avenue K) Retail and Commercial Development, Malaysia, Leighton Asia (Southern) 2 1 operating 3 1 corporate report company activity financial report 05 year in review 21 the group’s 47 directors’ statutory report corporate 07 from the chairman operating companies 54 concise financial report 09 chief executive’s report 23 thiess 64 shareholder information 11 financial management 27 leighton contractors 66 directory and offices report 13 operations analysis 31 john holland 15 values in action 35 leighton asia (northern) 39 leighton asia (southern) 41 leighton properties LEIGHTON HOLDINGS LIMITED CONCISE ANNUAL REPORT 2003 05 — Strong underlying performance for the year — Net profit after tax of $140 million including Nextgen write-off — Dividend up by 5% to 44 cents per share — Balance sheet remains strong with total assets of $2.2 billion — Net cash of $371 million a source of competitive advantage — Work in hand maintained at record $9.7 billion — Number of large construction opportunities still emerging in Australia year — Workload to support revenue growth for next few years in review — Expect improved result for shareholders in 2003/04 06 2003 2002 % $'000 $'000 change Operating Revenue – Group 4,848,540 4,979,581 -3 – Joint Ventures 597,327 240,612 +148 Other Revenue 174,369 55,264 +215 Total Revenue 5,620,236 5,275,457 +7 New Contracts, Extensions & Variations 6,802,221 5,552,432 +23 Value of Work in Hand# 9,662,240 8,371,040 +15 Profit from ordinary activities before tax* 209,797 227,285 -8 Income Tax (71,565) (59,450) +20 Profit from ordinary activities after tax 140,014 169,222 -17 Total Capital and Reserves* 856,312 789,259 +8 Total Assets 2,162,526 2,317,774 -7 Cash net of Borrowings 371,135 524,017 -29 Undrawn Facilities and Guarantees 421,969 435,281 -3 Earnings per Ordinary Share 51.7¢ 63.1¢ -18 Dividends per Ordinary Share 44.0¢ 42.0¢ +5 * Excludes outside equity interests # Includes Joint Ventures Moorvale Coal Mine, City of Casey Waste Services, Subiaco Waste Water Odour Light Rail Transit System, Queensland, Victoria, Control System, Tuen Mun and Tin Shui Wai, Leighton Contractors Thiess Services Western Australia, Hong Kong, John Holland Leighton Asia (Northern) LEIGHTON HOLDINGS LIMITED CONCISE ANNUAL REPORT 2003 07 Overview issues such as risk management and ethics, and The focus of this year’s Annual Report is our The Company has again demonstrated its is intent on assessing and safeguarding the major asset, our people, their skills, experience financial strength, achieving a record interests of the Group’s stakeholders, namely and commitment. We strive to provide fulfilling construction profit, which was reduced after shareholders, clients, employees and the roles for our people in a safety conscious absorbing a significant write-off on Nextgen, community. environment that is benchmark setting within producing a profit after tax of $140 million. We remain proactive in terms of corporate our challenging industry. We place the utmost This result represents a return on average governance reporting, reviewing our existing importance on their health and safety, and the shareholders’ funds of 17%, which puts systems and procedures, improving where Board closely monitors performance in this area. Leighton in the upper quartile of listed required to allow us to move towards complying Outlook Australian companies. Dividends have been with the ASX Corporate Governance Council’s The outlook for the next three years is a increased by 5% to 44 cents per share new best practice recommendations. To meet particularly strong one for the Group with a fully franked. these recommendations, our Audit Committee healthy long-term base of work spread across The award of a number of high profile has been restructured to exclude Executive our diverse business units, both within Australia projects in the land transport, building, and Directors. The Chairman of the Audit Committee and Asia. We anticipate an increase in profit civil engineering sectors, together with is a Non-executive Director, and as a qualified for the coming financial year, more in line with the acquisition of the Transfield Construction chartered accountant brings specialist skills and our historical growth trajectory. business by John Holland have provided a experience to the role. In accordance with I would like to extend my appreciation to my substantial boost to work in hand which stands the ASX reporting recommendations, the 2003 Board colleagues for their efforts during at a record $9.7 billion.