Duratec : December 2021 Half Year Financial Report including App 4D

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APPENDIX 4D

DURATEC LIMITED

ABN 94 141 614 075

RESULTS FOR ANNOUNCEMENT TO THE MARKET

The current reporting period is the half‐year ended 31 December 2021 and the prior reporting period is the half‐year ended 31 December 2020

	Dec-21	Dec-20
	$'000	$'000	%
Revenue from ordinary activities	130,883	124,063	5%
Profit from ordinary activities after tax attributable to members	726	4,642	84%

Net tangible assets per share

	Dec-21	Dec-20
Net tangible asset backing per ordinary share (cents per share)	10.13	9.34

Dividends

The board resolved to pay a Final 2021 dividend of 1.5 cents per share (fully franked). The total dividend of $3.6 million was paid on 13 October 2021.

Since the end of the reporting period, the Directors have declared an Interim 2022 dividend of 0.5 cents per share (fully franked), to be paid on 10 May 2022. The Ex-Dividend date will be 12 April 2022 and the record date for payment will be 13 April 2022.

Dividend Reinvestment Plan

The Group's dividend reinvestment plan (DRP) was activated for the Final 2021 dividend and applies to the Interim 2022 dividend. The DRP is optional and offers ordinary shareholders in Australia the opportunity to acquire fully paid ordinary shares without transactions costs. Shares issued under the DRP will be derived from new issued ordinary shares. The shares will rank equally with other ordinary shares already on issue. The new shares will be issued at a price equal to the average (rounded to the nearest cent) of the daily volume weighted average market price of Duratec Ltd shares sold in the ordinary course of trading on the ASX over a period of 10 trading days beginning on the day after the relevant dividend record date, discounted by 5%, rounded to 4 decimal places. The last date for the receipt of an election notice for participation in the DRP in relation to the Interim 2022 dividend is 14 April 2022.

To elect to participate in the DRP, visithttps://www.computershare.com.au/easyupdate/dur

Explanation of results

This information is contained in the Half‐Year Results Announcement and Half‐Year Results Presentation.

Control gained or lost over entities during the period

There have been no gains or losses of control over entities in the period ended 31 December 2021.

Details of associates & JV arrangements

For

		Reporting entity's
		percentage holding
		Reporting	Previous
Name	Relationship	period	period
		%	%
Fortec Australia Pty Ltd 1	Associate	-	-
DDR Australia Pty Ltd	Associate	49	49
Duratec Ertech JV 2	Joint Arrangement	50	50

Contribution to profit / (loss)

(where material)

Reporting	Previous
period	period
$'000	$'000
-	149

80860

NANA

• On 31 August 2020 Duratec Limited disposed of its 40% interest in Fortec Australia Pty Ltd by way of a dividend in‐specie to its shareholders.

• The joint arrangement listed above is classified as a joint operation and is not a separate legal entity. Duratec Ertech JV is a contractual arrangement between participants for the sharing of costs and outputs and Duratec Limited's share is proportionately consolidated in its financial accounts.

Audit report

This report is based on the interim financial report which has been independently reviewed and is not subject to qualifications.

For personal use only

Duratec Limited

ABN 94 141 614 075

Interim Financial Report

31 December 2021

Corporate Directory

For personal use only

Registered Office & Principal Place of Business

108 Motivation Drive, Wangara

Western Australia 6065

Contact Details

Phone:	[phone]
E-mail:	[e-mail]
Internet:	www.duratec.com.au

Directors

Martin Brydon	Non-Executive Director, Chairman
Robert (Phil) Harcourt	Executive Director, Managing Director
Chris Oates	Executive Director, General Manager
Gavin Miller	Non-Executive Director

Company Secretary

Dennis Wilkins

Share Registry

Computershare Investor Services Pty Limited

Level 11, 172 St George's Terrace, Perth

Western Australia 6000

Share Trading Facilities

The Company's ordinary shares are listed on the Australian Securities Exchange (Code: DUR) The Home exchange is Perth.

Auditor

RSM Australia Partners

Level 32, Exchange Tower, 2 The Esplanade, Perth

Western Australia 6000

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For personal use only

Contents

Directors' Report

Auditor's Independence Declaration

Consolidated Statement of Profit or Loss and Other Comprehensive Income Consolidated Statement of Financial Position

Consolidated Statement of Changes in Equity Consolidated Statement of Cash Flows Notes to the Financial Statements Directors' Declaration

Independent Auditor's Report

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Directors' Report

The Directors of Duratec Limited present their report, together with the consolidated financial statements of Duratec Limited ABN 94 141 614 075 ("the Company" or "Duratec") and the entities it controlled (together referred to as "the Group" or the "consolidated entity") at the end of, or during, the half-year ended 31 December 2021.

Directors and Company Secretary

Name / Position	Period of Directorship
Martin Brydon	Appointed 1 September 2020
Non-Executive Chairman
Robert (Phil) Harcourt	Appointed 26	August 2010
Executive Director, Managing Director
Christopher Oates	Appointed 26	August 2010
Executive Director - General Manager
Gavin Miller
Non-Executive Director	Appointed 14	April 2010
Dennis Wilkins	Appointed 1 September 2020
Company Secretary

Principal Activities

The principal activities of the consolidated entity during the period were the provision of assessment, protection, remediation and refurbishment services to a broad range of assets, in particular steel and concrete infrastructure. No significant change in the nature of these activities occurred during the period.

Review of operations

For the six months ended 31 December 2021, the consolidated entity generated revenues of $130.9m, an increase of 5.5% on the previous corresponding period. Profit after income tax for the six-month period was $0.7m, a decrease of 84% on the previous corresponding period.

	Dec-21	Dec-20
	$'000	$'000
Revenue from contracts with customers	130,883	124,063
Profit after income tax	726	4,642

Significant changes in state of affairs

There were no significant changes in the consolidated entity's state of affairs during the financial half-year.

Rounding of amounts

The Company is of a kind referred to in Corporations Instrument 2016/191, issued by the Australian Securities and Investments Commission, relating to 'rounding-off'. Amounts in this report have been rounded off in accordance with that Corporations Instrument to the nearest thousand dollars, or in certain cases, the nearest dollar.

Auditor's independence declaration

A copy of the auditor's independence declaration as required under section 307C of the Corporations Act 2001 is set out immediately after this Directors' report.

This report is made in accordance with a resolution of Directors, pursuant to section 306(3)(a) of the Corporations Act 2001.

On behalf of the Directors,

Robert (Phil) Harcourt

Managing Director

28 February 2022

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