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CIMIC Group Limited Annual Report 2016 |
Operating and Financial Review
FINANCIAL POSITION
(CONTINUED)
Investments accounted for using the equity method
Investments accounted for using the equity method were $616.5 million at 31 December 2016, a decrease of 42.5%, or $456.6 million,
compared to 31 December 2015. This decrease is partly due to Sedgman no longer being recognised as an associate, as well as the
divestment of Nextgen. The consolidated financial statements include the full consolidation of Sedgman since the Group gained control
on 23 February 2016.
Equity accounted investments include project related associates and joint ventures, such as the Transmission Gully PPP in New Zealand,
along with the Group’s holdings in HLG Contracting, Ventia and Macmahon. For HLG Contracting refer to the Financial Report, ‘Note 26:
Joint venture entities’.
Other investments
Other investments were $135.4 million at 31 December 2016, an increase of 7.7%, or $9.7 million, compared to 31 December 2015.
Deferred tax assets
Deferred tax assets were $310.1 million at 31 December 2016, an increase of $190.6 million, compared to 31 December 2015. This
includes deferred tax assets from the acquisition of UGL.
Property, plant and equipment
Property, plant and equipment was $1,355.7 million at 31 December 2016, an increase of 3.3%, or $42.9 million, compared to
31 December 2015. At 31 December 2016, an additional $466.9 million was financed by the Group under operating leases. Additions to
property, plant and equipment during the period included the fit-out of 177 Pacific Highway, North Sydney and job-costed tunnelling
machines for new projects. The balance includes property, plant and equipment acquired from the acquisition of UGL of $72.7 million,
and the effect of foreign exchange fluctuations of $41.6 million.
Intangibles
Intangibles were $1,125.9 million at 31 December 2016, an increase of 113.5%, or $598.5 million, compared to 31 December 2015.
Intangibles includes $914.0 million of goodwill. Additions to intangibles during FY16 included goodwill of $480.7 million and intangibles of
$70.6 million in relation to the acquisition of UGL, and $61.5 million of goodwill in relation to the acquisition of Sedgman.
CURRENT LIABILITIES
Trade and other payables
Trade and other payables were $4,721.1 million at 31 December 2016, an increase of 28.4%, or $1,045.4 million, compared to
31 December 2015. This figure includes $1,223.3 million (31 December 2016: $645.8 million) of amounts due to customers. The
remaining balance includes trade creditors, joint venture payables and other creditors.
Current tax liabilities
Current tax liabilities were $126.6 million at 31 December 2016, an increase of 55.7%, or $45.3 million, compared to 31 December 2015.
Provisions
Provisions were $333.3 million at 31 December 2016, an increase of 17.6%, or $49.9 million, compared to 31 December 2015. The
provision for employee benefits relates to wages and salaries, annual leave, long service leave, retirement benefits and deferred bonuses.
The increase is primarily due to recognising employee provisions in relation to the acquisition of UGL.
Liabilities associated with assets held for sale
Liabilities associated with assets held for sale were $nil at 31 December 2016. $48.7 million of finance leases that related to Arutmin were
repaid during the year.
NON-CURRENT LIABILITIES
Trade and other payables
Trade and other payables were $287.0 million at 31 December 2016, a decrease of 13.4%, or $44.6 million, compared to
31 December 2015.
Provisions
Provisions were $73.5 million at 31 December 2016, a decrease of 13.0%, or $11.0 million, compared to 31 December 2015. This figure
includes employee benefits relating to long service leave, retirement benefits and deferred bonuses.
EQUITY
Equity was $3,312.4 million as at 31 December 2016, a decrease of 19.5%, or $802.9 million, compared to 31 December 2015. The
reduction in equity during the year is primarily due to the impact of the share buy-back, as well as the acquisitions of UGL and Sedgman.
This is offset by the net impact of the profit for the year and dividends paid.
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