ASX Announcement

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27 September 2022

FY22 ANNUAL REPORT RELEASE

Acrow Formwork and Construction Services Limited (ASX: ACF) (“Acrow” or “the Company”) is pleased to release the Annual Report for Financial Year 2022.

As noted at the time of the FY22 results release (23/08/22), the new financial year has commenced very strongly both in terms of actual trading results and secured new hire contracts, with the result in this important lead indicator up 97% on the same time last year.

We look forward to providing an update at the Annual General Meeting, to be held on the 15[th] of November 2022.

-ENDS-

About Acrow

Acrow Formwork and Construction Services Limited (ASX: ACF) provides engineered formwork, scaffolding and screen systems solutions as well as in-house engineering and industrial labour supply services to its construction sector clients.

Acrow is made up of three distinct business divisions: Acrow Formwork and Scaffolding Pty Ltd, which hires high-quality scaffolding and provides bespoke engineered formwork for major building construction and infrastructure projects in Australia; Natform Pty Ltd, a specialist screen systems provider which designs and hires screen systems for the construction industry; and Unispan Australia Pty Ltd, a provider of formwork and scaffolding solutions, equipment and services, which is complemented by in-house engineering and industrial labour supply.

Acrow currently operates in 10 locations across Australia and owns over 60,000 tonnes of formwork and scaffolding products. The Company has identified a number of near-term growth opportunities and is focused on growing its footprint in the civil infrastructure market of Australia’s east coast, with a particular focus on New South Wales and Victoria. To learn more, please visit: www.acrow.com.au

For further information, please contact:

Steven Boland Managing Director Ph: +61 (02) 9780 6500

Andrew Crowther Chief Financial Officer Ph: +61 (02) 9780 6500

Acrow Formwork and Construction Services Limited. C/- Level 5, 126 Phillip Street, Sydney NSW 2000

Page 1

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ANNUAL 2022 REPORT

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Captions: Cover (main image) – Cross River Rail, Roma St, Brisbane QLD Cover (bottom left) – Crown Casino, Barangaroo NSW Cover (bottom middle) – Origin APLNG, QLD

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At the start of every great project since 1936.

Acrow is a leading provider of smart integrated construction systems in Australia. This was Acrow’s ninth consecutive year of growth and we maintain a robust pipeline of opportunities for the future.

2022 Highlights

Total Revenue $m EBITDA* $m

Earnings per Share* cents

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40% 49%
TO $148.3m TO $36.3m
18 65.3 18 13.2
19 71.0 19 14.8
20 87.0 20 19.5
21 105.7 21 24.3
22 148.3 22 36.3
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Revenue by Business Unit[#] Revenue by Geography[#]

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● �Formwork� 53% ● QLD� 56.1%
● �Industrial�services� ● NSW 15.7%
31%
● VIC� 13.2%
● �Commercial�
● SA 4.8%
scaffold 16%
● �WA� 5.9%
● TAS 4.3%
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57% CAGR
TO 7.2c
18 1.2
19 4.4
20 4.0
21 4.0
22 7.2
$148.3
REVENUE
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*Underlying[#] Revenue includes sale of ex hire equipment

1 2022 Highlights 2 Chairman’s�Address 4 Managing�Director’s�Report� 8 �Business�Overview

11 Safety

12��Board�of�Directors�

14 Key Management Team

15�Financial�Report�

89�Directors’�Declaration�

90�Independent�Auditor’s�Report�

94�Shareholder�Information�

Chairman’s Address

FY22 was a remarkable year which demonstrated the momentum that we have gained through the successful transformation of our business.

We�have�a�key�role�as�participants�in�the�booming� Australian infrastructure sector through a unique product�and�service�offering�that�has�enabled�us�to� secure�large�packages�of�work�on�major�infrastructure� projects nationally.

Acrow�is�today�a�leading�provider�of�smart�integrated� construction systems for the civil infrastructure, industrial�and�commercial�sectors.

The outstanding performance of the company over the past twelve months confirms that our prudent decisions to invest in the platforms of our business – people, products and systems – are bearing fruit.

It�is�our�expertise�in�providing�sophisticated�engineered� solutions�that�sets�us�apart.�We�have�improved�and� grown�our�core�businesses�by�carefully�investing�growth� capital and targeting east coast civil infrastructure projects.�This�clearly�defined�growth�strategy�is�backed� by�engineering�skills,�high-quality�people�with�a�creative� focus�on�finding�the�right�solutions�for�customers,�a� strong�product�set�and�a�national�network.�

These�competitive�advantages,�together�with�strong� performance,�have�enabled�us�to�secure�high�margin� work�on�Australia’s�marquee�infrastructure�projects�and� industrial�services�work�that�showcase�our�skills.�We� are�continuing�to�exploit�the�growth�opportunities�in�the� civil�infrastructure�market�and�expand�our�share�of�the� national�industrial�services�market.

Organic growth drives strong results

The�company’s�strong�results�reflect�that�we�have�been� strong�stewards�of�our�assets,�particularly�as�they� represent�entirely�organic�growth.�Statutory�net�profit� increased�to�a�record�$15.7�million,�an�increase�of�296%� on�the�previous�year.�On�an�underlying�basis,�which� excludes�significant�items�and�share-based�payments,� net�profit�was�$17.8�million,�up�104%.�Operating�cash� profit�was�$23.0�million,�up�97%.

An�important�factor�in�our�growth�has�been�the�effective� management of our supply chain despite the disruptions of�COVID-19.�We�have�driven�growth�by�taking�products�

available�only�in�one�or�two�state�markets�and�selling� them�nationally�through�our�expanded�operating�network.

Underlying�earnings�per�share�were�7.2�cents,�up�79%�on� the�previous�year.�This�represents�a�cumulative�average� growth�rate�of�57%�over�the�four�years�since�listing�in� 2018,�showing�the�company’s�consistent�track�record�of� profit�growth.

We�have�a�robust�financial�position,�with�a�strong�balance� sheet�and�cash�flows.�In�FY22,�cash�flow�from�operations� was�$18.9�million,�which�included�a�one-off�increase�in� working�capital�of�$20�million�to�facilitate�product�sales� and�fund�industrial�services�growth.�Capital�expenditure� for�the�year�was�$21.1�million�of�which�two-thirds� were�invested�in�growth.�With�significant�expansion� opportunities�ahead�we�are�investing�aggressively�in� our platform.�

These�opportunities�include�major�civil�infrastructure� projects�across�Australian�road,�rail,�airport�and�maritime� industries�as�well�as�industrial�solutions�for�commercial� sectors�such�as�energy�and�mining.�As�infrastructure� developments�are�multi-billion�dollar�projects�built�over� many�years,�we�can�tender�for�an�increasing�size�and� scope�of�packages�over�time,�based�on�our�growing� engineering�skills,�equipment�pool�and�capabilities.

During�the�year�we�raised�$10.5�million�through�a� placement�which�helped�fund�growth�in�our�industrial� services�and�civil�formwork�businesses.�We�were� delighted�with�the�strong�support�for�the�capital�raising� and�thank�our�shareholders�for�their�contributions.

We�continue�to�target�acquisitions�where�businesses� share�an�entrepreneurial�culture�and�can�broaden�our� platform�and�expand�our�services.�This�complements� organic�growth�and,�after�balance�date,�we�entered� a�new�market�through�a�ten-year�exclusive�licensing� arrangement�with�New�Zealand�company�Jacking� Systems�for�their�jump�form�system.�We�are�building�the� infrastructure�that�will�support�the�product�ourselves,� which�brings�to�our�platform�one�of�the�most�technically� advanced�and�adaptable�jump�form�systems.�These�are� used�to�construct�the�lift�shaft�core�of�a�building,�which�is� a�leading�activity�on�multi-floored�construction.

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NPAT INCREASE TO $17.8m

104%

Morrison Lane Yard, Beenleigh ,QLD

Dividend

Our�goal�is�to�increase�value�for�shareholders�while� delivering�earnings�sufficient�for�funding�investing� activities and capital expenditure that support ongoing growth.�The�Board’s�dividend�policy�is�to�pay�between� 30%�and�50%�of�operating�cash�profit.�The�strength� of�our�business�model�and�earnings�have�enabled�the� Board�to�declare�an�increased�final�dividend�of�1.5�cents� per�share,�60%�franked.�This�brings�total�dividends�for� the�year�to�2.7�cents�per�share,�42%�franked,�up�from� 1.9 cents�per�share,�an�increase�of�42%�on�last�year�and� representing�a�payout�of�30%�of�operating�cash�profit.

Board changes

During�the�year,�there�were�changes�to�the�Board.� Gregg Taylor�stepped�down�at�last�year’s�Annual�General� Meeting�and�Margaret�Prokop�retired�in�December� 2021.�I would�like�to�thank�them�for�their�services�to� the company.

We�have�continued�our�process�of�Board�renewal�adding� new�directors�with�relevant�skills�and�experience�to� guide�the�evolving�needs�of�our�business.�Two�new� non-executive�directors�joined�us�in�2021,�Melanie� Allibon�and�Laurie�Lefcourt.�Both�are�well�settled�in�and� contributing�to�the�Board�and�committees.

Melanie�is�an�experienced�company�director�with�an� extensive�background�in�human�resources�and�operating� risk.�She�has�held�senior�executive�roles�with�Newcrest� Mining,�Seven�Group�Holdings,�Amcor,�Pacific�Brands�and�

Foster’s�Group�with�responsibility�spanning�Australia,� USA,�Asia�and�the�UK.�She�is�chair�of�ASX-listed�Boom� Logistics�Limited.

Laurie�has�an�extensive�background�in�financial,�strategic� and�risk�management,�particularly�in�the�resources,� construction,�and�infrastructure�sectors.�She�has�held� senior management and executive roles across Rio Tinto, Queensland�Rail,�Sinopec�Oil�and�Gas,�and�Wiggins�Island� Coal�Terminal.�She�is�an�experienced�non-executive� director�and�is�currently�on�the�boards�of�Advance� NanoTek�Ltd�and�SenterpriSYS�Ltd.

In closing

On�behalf�of�the�Board,�I�would�like�to�thank�Steven� Boland�and�his�leadership�team�as�well�as�all�Acrow� employees�for�their�ongoing�achievement.�

Significant�progress�has�been�made�to�provide�a�strong� platform�for�the�future.�We�are�building�the�business�in� a�structured�way,�nurturing�our�growth�engines�while� investing�in�our�people,�equipment,�IT�systems�and� technology�to�ensure�that�a�strong�backbone�supports� our�expansion.�We�are�confident�of�continuing�our� market�penetration�momentum�and,�with�tailwinds� behind�us,�are�focused�on�exploiting�the�growth� trajectory�ahead.�

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Peter Lancken AM Chairman

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DIVIDEND PER SHARE UP 42% ON 2021

2.7c

Managing Director’s Report

Since listing on the ASX nearly five years ago, Acrow has transformed into an engineering led business that provides exceptional solutions for the civil infrastructure and industrial markets.

win�tender�packages�on�transport�infrastructure�and� industrial�services�contracts.

Clear�direction�and�execution�on�strategic�priorities� has achieved�an�outstanding�result�in�FY22,�with� strong growth�in�main�business�lines�across�all�states� of Australia.�

A key achievement in FY22 was securing record hire contracts of $50.4 million, up 28% on $39.3 million in the previous year.

We�are�focused�on�delivering�value�for�all�key� stakeholders,�including�employees,�customers�and� shareholders.�I�am�pleased�to�report�that�in�FY22� Acrow�achieved�EBITDA�of�$36.3�million,�up�49%�from� $24.3 million�in�the�previous�year.�This�represents�a� compound�annual�growth�rate�of�29%�over�the�four�years� since�FY18.

New�hire�contracts�are�the�key�short�to�medium�term� lead�indicator�for�our�business.�We�are�encouraged�by�a� strong�success�rate�of�circa�50%�on�quotes�submitted� throughout�our�Formwork�business�and�especially�on� marquee�infrastructure�projects.�

Importantly,�over�that�period�we�have�achieved�growth� while�also�increasing�margins.�EBITDA�margin�rose�to� 24.5%�in�FY22,�up�from�20.2%�in�FY18�demonstrating� improving�efficiency.�We�are�committed�to�achieving� our�customers’�priorities.�These�are�the�provision�of� robust�engineering�solutions,�product�quality,�a�positive� reputation�for�delivery,�and�most�importantly�safety.�Our� ability�to�meet�these�criteria�has�enabled�us�to�achieve� strong�revenue�growth�with�improved�margins.�

Acrow’s�reputation�for�quality,�safety�and�service� supports�us�as�we�bid�for�new�work�packages,�which� cover�work�to�be�completed�over�a�short�to�medium� term�period.�Their�satisfactory�completion�positions�us� well�to�secure�succeeding�packages�and�our�pipeline�is� extremely�strong.

We�continue�to�benefit�from�a�unique�range�of�products� and�services�which�are�now�being�hired�and�sold� across�the�country.�Our�formwork�division�has�grown� significantly�across�all�states�since�our�2018�listing.�

Our�business�is�differentiated�by�high�quality�engineering� skills�and�effective�bespoke�solutions.�Engineered�sales� from�our�formwork�and�industrial�services�businesses� was�87.8%�of�total�group�contribution�in�FY22,�up� 38.2 percentage�points�from�49.6%�in�FY18.

This,�together�with�the�creativity�of�our�engineering� solutions,�has�helped�us�secure�formwork�packages� on�most�of�the�major�transport�infrastructure�projects� in�Australia.�These�include�Sydney�Metro�and�Sydney� Gateway�in�New�South�Wales,�the�Melbourne�Metro� Tunnel�and�Westgate�tunnel�in�Victoria,�the�Bruce� Highway�upgrade�and�Cross�River�Rail�project� in Queensland.

Revenue�increased�40%�to�$148.3�million,�up�from� $105.7 million�in�the�previous�year�and�more�than�double� FY18�revenue.�Since�then,�the�acquisitions�of�Natform� and�Uni-span�have�been�fully�integrated.�FY22�showed� strong�organic�growth�reflecting�a�record�pipeline�of�work� and�the�securing�of�new,�high�revenue�contracts.

Total�sales�contribution�increased�32%�to�$81.4�million.� While�expenses�increased�with�higher�activity,�we� exercised�strong�cost�discipline�and�achieved�benefits� of�scale,�with�60%�of�sales�contribution�growth�being� passed�through�to�operating�profit.

Investment�in�our�industrial�services�division,�which� provides�a�recurring�earnings�profile�for�Acrow,�has� also�been�rewarded.�Among�our�key�projects�were� Visy�Australia’s�Tumut�Kraft�paper�mill�shutdown,�new� packages�on�Snowy�Hydro�2.0,�the�Mount�Piper�power� station�shutdown,�maintenance�for�Origin’s�Surat� Basin oil�and�gas�facility�and�Incitec�Pivot’s�Phosphate� Hill�shutdown.

Strong new hire contract growth

As�we�take�advantage�of�the�tailwinds�of�the�current� nation�building�infrastructure�boom,�it�is�our�engineering� team’s�capability�to�develop�innovative�formwork�and� industrial�services�solutions�that�has�enabled�us�to�

Formwork

National�formwork�revenue�rose�30%�to�$78.7 million� with�significant�growth�in�all�state�markets.�In� Queensland,�our�largest�market,�revenue�grew�50%�to�

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OF TOTAL SALES WERE ENGINEERED SALES FROM FORMWORK AND INDUSTRIAL SOLUTIONS BUSINESSES

87.8%

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5
UTAS Library, TAS
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$29.3�million�as�we�increased�market�share.�Operations� in�Western�Australia�also�grew�significantly�as�we�opened� new�revenue�channels,�launching�products�previously� available�only�on�the�east�coast.�

We�consolidated�our�market�position�in�Victoria,�where� we�have�good�prospects�for�further�growth,�and�in�New� South�Wales�which�is�Australia’s�largest�state�market.� Having�breached�the�barriers�to�entry�in�this�market�with� high�profile�contracts,�we�are�confident�of�further�growth.� Progress�in�South�Australia�and�Tasmania�has�continued.

Industrial services

Industrial�services�revenue�grew�110%�to�$45.6�million� with�strong�growth�from�expansion�into�new�states� and�markets,�including�the�renewable�energy,�power� utilities�and�mining�sectors.�Product�sales�were�boosted� by�participation�in�large�projects�and�labour�hire�sales� also�increased�significantly�with�a�greater�number�of� key projects.

Having�invested�$4�million�in�specialised�formwork� equipment,�including�ring�lock�and�furnace�scaffold� kits�to�serve�the�highly�engineered�Mount�Piper� shutdown,�it�was�pleasing�this�capital�investment�has� provided�a�strong�return�enabling�a�significant�boost�in� market share.�

Commercial scaffold

Commercial�scaffold�revenues�were�steady�as�we� increased�focus�on�dry�hire�and�smaller-scale�work� with�a�scaling�down�of�labour�and�cartage.�This�division� provides�sustainable,�strong�free�cash�flow.�Our�business� experienced�improvement�in�New�South�Wales�and� Victoria�during�the�year.�While�we�continue�to�exit�low� profitability�contracts,�we�remain�committed�to�this� cyclical�business�and�anticipate�some�upwards�rate� improvement�in�the�coming�year.�

Balance sheet and cash flow

We�have�a�strong�balance�sheet�and�ended�FY22�with�an� $11.2�million�improvement�in�net�current�assets�surplus.� While�net�debt�increased�by�$10.4�million,�this�reflected� capital�investment�to�fund�growth�and�expansion�of�our� business,�and�completion�of�the�last�deferred�payment� for�the�Uni-span�acquisition.�We�are�continuing�to� invest to serve infrastructure and industrial services markets.�This�has�been�rewarded�by�strong�growth�that� has�significantly�exceeded�our�internal�growth�capital� expenditure�hurdle�of�40%.�Net�gearing� increased�1.5 percentage�points�to�28.3%.

In�an�unprecedented�year�in�which�steps� were�taken�to�minimise�the�impact�of� supply chain and logistics challenges, inventories�were�managed�to�reduce�

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EBITDA INCREASE TO $36.3m

49%

Managing Director’s Report (continued)

supply�risks.�This�had�a�significant�one-off�working� capital�impact�of�$20�million.�Our�working�capital�to�sales� ratio�is�expected�to�stabilise�in�the�range�of�18%�to�20%.�

During�the�year,�our�timber�sales�business�was� transformed�by�a�lack�of�supply�in�the�Australian�market,� growing�demand�and�the�withdrawal�of�alternative� suppliers.�We�have�a�very�reliable�supply�chain�which�was� able�to�operate�at�high�margins,�although�working�capital� increased�due�to�a�significant�lag�between�initial�payment� and�receiving�funds�on�sales.�

Acrow’s�expanded�finance�facilities�allow�significant� headroom�to�support�further�growth.�Our�effective�tax� rate�was�10%�as�tax�paid�by�businesses�was�offset�by� Acrow’s�carry�forward�tax�losses.�Franking�of�dividends� will�increase�as�tax�losses�are�consumed.

An employer of choice

People�are�our�most�valuable�asset�as�we�are�building� all�aspects�of�our�business�to�support�growth.�This�has� included a heavy focus on succession planning and the�creation�of�new�roles�to�broaden�our�capability.�Our� reputation�as�an�industry-leading�employer�of�choice�is� a�powerful�asset�as�our�high-quality�brand�has�enabled� us�to�attract�high-calibre�people,�allowing�depth�in�senior� and�middle�management.�

We have developed an entrepreneurial and solutions-focused�culture�that�believes�in�exceeding�the� relevant�industrial�standards�and�setting�new�standards� of excellence.�

A�key�point�of�difference�is�the�strength�of�our� engineering,�which�is�technically�very�strong�and� includes�some�of�Australia’s�top�temporary�formwork� engineering�talent.�We�have�transformed�the�company� through�the�continual�building�of�our�engineering�team,� which�has�more�than�doubled�from�15�engineers�in� April�2018�to�32�engineers�at�the�end�of�FY22.�Our�team� is�focused�on�achieving�commercial�results�without� compromise�on�product�quality�and�safety.�While�we� have�industry-leading�best�of�breed�products,�our� ‘secret�sauce’�is�the�smart�way�our�engineers�work�for� our customers.

Safety�is�a�priority�and�we�achieved�a�49%�improvement� in�the�lost�time�injury�frequency�rate.�Lost�time�injuries� improved�33%�in�FY22.

I�would�like�to�sincerely�thank�all�of�the�members�of� the�Acrow�family�for�their�absolute�commitment�to� excellence�in�our�Business�.

Expansion into jump form market

After�balance�date,�we�secured�contracts�valued�at�circa� $4�million�to�provide�jump�forms�on�the�Cross�River� Rail�Albert�Street�underground�station�and�The�Monaco� apartments�on�the�Gold�Coast.�These�projects,�which�will� be�completed�in�FY23,�fast�track�our�entry�into�a�lucrative�

and�strategically�important�market.�Jump�form�systems� complement�our�formwork�and�screen�systems�products,� enhancing�our�opportunities�to�bid�for�a�range�of�works� on�suitable�commercial�buildings.

We�anticipate�that�we�will�generate�from�the�capital� required�to�service�the�projects�a�return�on�investment� in�the�region�of�70%,�which�reflects�the�critical�nature�of� the�engineering�work.�The�Australian�jump�form�market� is�estimated�to�be�a�multi-hundred-million-dollar�industry,� and�we�are�confident�of�developing�this�new�revenue� channel�into�a�sustainable�$20�million�per�year�business� line�within�three�years.

Outlook

We�are�delivering�on�our�future�growth�trajectory.�The� positive�momentum�of�FY22�has�continued�in�the�first� two�months�of�FY23�with�the�securing�of�hire�contracts� totalling�$12�million,�up�97%�on�the�same�period�last�year.� This�includes�expected�income�from�newly�secured�jump� form�contracts.

Government spending continues to provide a good range of opportunities, particularly in transport infrastructure, and�our�growing�industrial�services�capability�has� increased�the�size�of�Acrow’s�addressable�markets.� We�anticipate�further�packages�of�work�from�ongoing� projects�including�Snowy�Hydro�2,�Melbourne�Metro� Rail,�Melbourne�Westgate�,�Qld�Bruce�Hwy�Upgrade�and� Brisbane�Cross�River�Rail�amongst�many�others�.

Our�short�to�medium�growth�opportunities�include� expansion�of�our�industrial�services�business�on�the� east coast into South Australian and Western Australian markets,�where�we�are�targeting�new�contracts.�We�are� capitalising�on�our�major�project�experience�to�further� increase�market�share�in�the�New�South�Wales�and� Queensland�formwork�civil�infrastructure�markets.�Also,� we�are�leveraging�our�unique�product�range�to�open� new�revenue�channels�in�state�markets.�Our�investment� in�formwork�and�industrial�services�capabilities� continues�as�we�expand�revenue�streams�and�improve� opportunities�to�cross-sell�products�and�services.�

We�are�confident�of�future�growth�and�have�provided� guidance�for�FY23:

Revenue�in�the�range�$165�million�–�$175�million,�an� increase�of�15%�on�FY22;
EBITDA�(underlying)�in�the�range�$43�million�–� $44 million,�a�20%�improvement;
NPAT�(underlying)�in�the�range�$21.5�million�to� $22.5 million,�an�increase�of�23%.

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Steven Boland

CEO

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Case Study: Cross River Rail

PROJECT

Cross�River�Rail

TECHNOLOGY

Formwork�MK�system� and SMK frames

Cross�River�Rail�is�a�critical�public�infrastructure�project� comprising�a�10.2�kilometre�rail�line�with�four�new�underground� stations.�It�includes�5.9�kilometres�of�twin�tunnels�under�the� Brisbane�River�and�central�business�district�which�will�unlock�a� bottleneck�in�Brisbane’s�transport�network�and�improve�across� south�east�Queensland.

Acrow’s�solution�used�our�MK�System�and�SMK�frames�products� to�create�the�walls�for�the�station�structures.�The�MK�system� offers a highly versatile system for civil engineering applications that�need�high�load-bearing�capacity,�while�our�SMK�frames� provide�a�single-sided�formwork�solution�with�a�truss�structure� that�is�flexible,�allowing�access�on�tunnel�projects.�We�used�sets� of�10.875�metre�pre-assembled�SMK�frames�which�allowed�the� pour�for�the�station�structures’�single�sided�walls�including,�on� one�occasion,�enabling�a�single�10.3�metre�pour�from�basement� level�4�to�above�basement�level�2.�

As�Arrow�assembled�the�full�height�frames�off-site,�the�work�and� space�needed�for�on-site�construction�was�greatly�reduced.

LOCATION

Brisbane

Photo: Cross River Rail, Roma St, Brisbane, QLD

Business Overview

FORMWORK

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INDUSTRIAL SERVICES

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SCREENS

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COMMERCIAL SCAFFOLD

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Overview

Provides�a�range�of�wall�forming�panel,� soffit�forming�and�conventional�systems�for� large and small construction equipment
Dry�hires�formwork�equipment�and�provides� the product that forms the temporary mould to support concrete structures during construction
Dry�hires�falsework�equipment�used�to� support�suspended�horizontal�structures� during construction
Products are generally manufactured overseas and imported
Generates revenue through dry hire agreements�that�are�typically�based�on�a�

Overview

Highly experienced team and customer service ethic
Generates�revenue�from�wet�hire� agreements�including�hire,�transport,�labour� and�consumables
At the forefront of scaffold service providers in�Queensland�to�the�industrial�sector�and� expanding interstate
Full�turnkey�solution�from�design�to�supply� and install

Overview

Leading�designer�and�hirer�of�screen� systems for the construction industry
Provides�screen-based�formwork�systems� which�support�the�construction�of� commercial�high-rise�buildings�and�civil� infrastructure,�including�bridges,�roadworks� and train stations

Overview

Provides�access�solutions�to�builders� and�building�contractors�when�working�at� heights
Generates�revenue�through�both�dry�hire� and�wet�hire�agreements
Dry�hire�agreements�are�typically�based�on� a�price�per�tonne�per�week,�over�a�minimum� of�4�weeks

price�per�tonne�per�week,�or�price�per�cubic� metre�per�week

Bespoke�special�formwork�and�climbing� systems�provided�for�large projects

FY22 Commentary

Exceptional�growth�with�expanded�product� and�service�offering�and�contribution� increases across all states and most business�units�particularly�Qld�(50%)�and� WA�(69%)
Revenue�up�30%
Continued�focus�on�product�sales�with� growth�of�26%�which�contributed�48%�of� formwork�revenue
Strong focus on the energy, pulp, paper, mining and industrial sectors

FY22 Commentary

Large�growth�Rebased�this�business�into� the future
Revenue�up�110%�and�contribution�up�53%
Focus�on�industrial�labour�that�increased� 156%�with�margin�remaining�relatively� stable�(19.4%�down�from�21.6%)
Continued�expansion�outside�of�Queensland� market�into�NSW,�SA�and�Tasmania
Dry-hire�model�offering�highly�engineered� solutions�for�a�wide�range�of�customers
Engineering�capabilities�provide�a�key� competitive advantage

hire,�transport,�labour�provisions�and�supply� of�consumables

Solutions�offered�on�both�a�wet�and�dry� basis
Supports�commercial�building�including� office�and�high�rise�developments,� universities and schools, industrial buildings,�hospitals�and�retail�centre� developments
Wet�hire�agreements�are�typically�based�on� a contract sum encompassing equipment

Acrow is a leading provider of engineered formwork solutions and scaffold hire in Australia.

development�with�specific�focus�on� major�projects.�Snowy�2.0,�Sydney� Gateway�and�Sydney�Metro�West

Expanded�timber�sales�with� contribution�growth�of�208%
■ Key�contributing�projects�included� packages�on�Melbourne�Metro�Rail,� Melbourne�Western�Distributor,� Sydney�Metro�Rail�including�Crows� Nest�Station,�Bruce�Highway� Highway�upgrade,�Cross�River� Rail, QLD
Continue�to�benefit�from�uplift�in� Queensland�infrastructure�activity�as� projects�continue�to�ramp�up.�Major� projects�such�as�Bruce�Highway� upgrade,�Cross�River�Rail�and� Inland Rail
Continue�to�grow�in�other�states� through�expansion�of�Acrow� product range
■ Ongoing capital investment to support growth

FY23 Strategy

Transformational investment into Jump�Forms.�10�year�licensing� agreement�with�two�initial�projects
Gain�market�share�in�NSW�and� benefit�from�civil�infrastructure�
Capital�investment�of�$4m�during� the year
Expansion�further�into�new�markets� including�coal�fired�power�stations,� hydro�power�and�mining
Key�project�wins�include�Visy,�Snowy� Hydro, Mt Piper, Origin Surat Basin and�Incitec�Pivot�–�Phosphate�Hill
Further�capital�investment�to� support�growth

FY23 Strategy

Continue�expansion�on�the� east coast�
Push�hard�into�SA�and�WA�markets� via�targeted�new�contract�wins�and� potential M&A

FY22 Commentary

FY23 Strategy

Continued�success�across�east� ■ Focus�on�continued�market�share� coast�markets,�particularly�in� growth�via�innovation�and�service� Queensland� capability�especially�in�QLD�
■ Total�revenue�and�contribution� and Victoria relatively�flat�due�to�projects� ■ Capitalise�on�projects�delayed�in� delayed�due�to�Covid�19�and�floods,� NSW from 2022 particularly in NSW
FY22 Commentary ■ This�is�now�a�strong�free�cashflow� ■ Revenue�and�sales�contribution� business�with�little�investment�of� gear required
stabilised�during�year
■ Increased�focus�on�dry�hire�and� FY23 Strategy smaller�scale�work.�This�has� ■ Continuing�participation�in�
included reduced contract and commercial�projects
labour�work ■ Hire�rates�increases�and�utilisation�will�
■ Margins�have�show�signs�of� be�capitalised�on�in�the�dry�hire�market
improvement�towards�the�end�of� ■ Exiting�the�labour/contract�market�
the year in commercial

FY22 Commentary

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Case Study: Rozelle Interchange

PROJECT

Rozelle�Interchange

TECHNOLOGY

Formwork�RKS�System� and�Fabrication

Partnering�with�civil�engineering�specialists�to�complete�three� vent�shafts�on�the�Rozelle�Interchange�which�is�part�of�the� WestConnex�Sydney�development,�we�used�Acrow’s�RKS�rail� climbing�formwork�system�to�construct�ventilation�shafts�with� different�radiuses,�assisted�by�cranes.

The�design�to�fit�the�circular�shape�of�the�shafts�was�managed� by�introducing�a�fabricated�square�hollow�section�(SHS)�steel�to� achieve�the�curved�shape.�This�was�connected�to�the�formwork� system�with�our�proprietary�SHS�clamps.�Bespoke�tailoring�of� the�curved�sections�maintained�the�full�roll�back�properties�of� the�system.

Our�formwork�systems�are�robust�and�highly�adaptable,�which� allowed�us�to�increase�the�pour�heights�from�3�metres�to� 3.6 metres,�reducing�the�cycles�needed�whilst�still�jumping� the�platforms�with�the�wall�forms�attached�and�in�rolled�back� position.�This�simple�but�effective�system�reduced�the�number� of�‘special�items’�needed�to�complete�the�task,�reducing�cost�and� allowing�a�quality�surface�finish.

LOCATION

Sydney

Photo: Rozelle Vent Shafts, Rozelle, NSW

Safety

The health and safety of our people, customers and subcontractors is paramount.

Acrow’s�safety�culture�is�based�on�collaboration�and�a� shared�sense�of�responsibility.�We�have�a�multi-tiered� process�that�ensures�our�employees�and�subcontractors� are�trained�and�follow�industry�leading�safe�work� practices.�Employees�have�access�to�health�and�safety� information�from�Acrow’s�Safety�Manager,�Head�of� People�&�Culture�and�through�the�Acrow�intranet.�Our� lost�time�injury�frequency�rate�was�lower�while�working� an�additional�152,000�hours�compared�to�FY21.�Other� safety�key�performance�indicators�remained�in�line�with� the�previous�year.�

Specific�initiatives�and�programs�conducted�in� FY22 included:

Placement�of�a�dedicated,�new�Safety�Manager� position
Briefing�on�recent�developments�in�health�and�safety� for�the�CEO,�and�the�Executive�Leadership�team�
Continued�growth�of�online�information�resources�to� help�employees�understand�their�responsibilities�
Continued�evaluation�and�updating�of�all�health�and� safety related materials including procedures, policies and�manuals,�across�all�Acrow�locations.�
Free�access�to�RAT�tests�for�COVID-19,�and�voluntary� influenza�vaccinations�for�employees.

LOST TIME INJURY FREQUENCY RATE

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18 19.7
19 6.0
20 2.4
21 11.6
22 5.9
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Cross River Rail, Brisbane, QLD
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Board of Directors

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Mr Peter Lancken AM

Non-Executive Chairman

Peter�has�a�career�spanning�over�30�years�in�a�range�of�executive�and�director�roles�in� equipment�hire,�industrial,�and�real�estate�companies.�

He�was�formerly�the�Managing�Director�and�Non-Executive�Chairman�of�Kennards�Hire� Pty�Limited.�

Peter�managed�an�era�of�growth�spanning�two�decades�at�Kennards,�with�sales�now� exceeding�$550�million�from�a�network�of�over�200�locations,�and�remains�on�the� Board�as�a�Non-Executive�Director.�

Peter�is�also�a�Non-Executive�Director�of�Crimestoppers�NSW�and�was�Non-Executive� Chairman�of�Propertylink�Group�(ASX:PLG)�prior�to�its�acquisition�in�April�2019.�

Peter�holds�a�Bachelor�of�Engineering�(Civil)�degree�from�the�University�of�New�South�Wales,�is�a�Fellow�of�the�Institute� of�Engineers�Australia�and�is�a�fellow�of�the�Australian�Institute�of�Company�Directors.

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Mr Steven Boland

Executive Director

Steve’s�30�year�executive�career�includes�extensive�experience�in�operational� management�and�leadership�spanning�waste,�sports�management�and�hire�in�both� Australia and the United Kingdom

Steven�joined�Acrow�in�2013�and�since�then�has�served�as�its�Chief�Executive� Officer.�Steven�was�previously�the�CEO�of�the�Melbourne�Rebels�Rugby�Club�and� was�responsible�for�the�start-up�phase�of�a�Super�Rugby�professional�sporting� team.�Previously,�from�2004�to�2010,�Steven�served�as�the�Global�Executive�Director� (Recycling)�of�Visy�Industries,�and�from�2002�to�2004,�Steven�was�the�Executive� Director�(Commercial�Waste)�of�Veolia�Environment�UK.

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Mrs Melanie Allibon

Non-Executive Director (Chair of the Remuneration & Nomination Committee)

Melanie�has�an�extensive�background�in�human�resources�and�operating�risk�primarily� in�the�industrial�services,�mining,�manufacturing�and�FMCG�sectors.�

�She�has�held�senior�executive�roles�with�Newcrest�Mining,�Seven�Group�Holdings,� Amcor,�Pacific�Brands�and�Foster’s�Group�with�responsibility�spanning�Australia,�USA,� Asia�and�the�UK.�

Melanie�has�been�a�non�executive�director�for�the�last�9�years�including�Boom� Logistics�Pty�Limited�for�over�three�years�and�Chair�since�November�2021.�Melanie�is� a�member�of�Chief�Executive�Women,�International�Women’s�Forum�and�AICD.�

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Mr David Moffat

Non-Executive Director

Appointed�19�September�2019

David�has�a�career�spanning�over�35�years�in�the�construction�industry,�most�recently� with�Lipman�for�29�years,�prior�to�his�resignation�in�December�2018.�From�2013-2018,� David�was�the�Managing�Director�of�the�Lipman�Group�of�Companies.

In�2019�David�founded�Cornerstone�(NSW)�Pty�Ltd,�whereas�Managing�Director,�he� provides�strategic�business�planning�and�advisory�services�to�Subcontractors,�Head� Contractors�and�Clients�within�the�construction�industry.

David�brings�with�him�key�competencies�in�Leadership,�Construction�Management,� Innovation�and�Safety.�He�holds�a�Bachelor�of�Engineering�Degree�(Civil)�from�The� University�of�Technology,�Sydney�(“UTS”).

Ms Laurie Lefcourt

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Non-Executive�Director�(Chair�of�the�Audit�and�Risk�Committee)

Laurie�has�an�extensive�background�in�financial,�strategic�and�risk�management,� particularly�in�the�resources,�construction,�and�infrastructure�sectors.�

She�has�held�senior�management�and�executive�roles�across�Rio�Tinto,�Queensland� Rail,�Sinopec�Oil�and�Gas,�and�Wiggins�Island�Coal�Terminal.

Laurie�has�been�a�non-executive�director�for�the�past�4�years�and�is�currently�on�the� boards�of�–�Advance�NanoTek�Ltd�(ASX:ANO),�and�SenterpriSYS�Ltd�(NSX:SPS).� Laurie�is�a�past�member�on�the�board�of�Tamawood�Ltd�(ASX:�TWD),�the�Jabiru�Town� Development�Authority�and�Central�Queensland�University�Council.

Laurie�holds�a�bachelor’s�degree�in�finance�and�administration,�is�a�fellow�of�the� Institute�of�Chartered�Accountants�of�Australia�and�New�Zealand�as�well�as�a�graduate� of�the�Australian�Institute�of�Company�Directors.

Key Management Team

Steven Boland

Chief Executive Officer

As�above.�

Andrew Crowther

Chief Financial Officer

Andrew�joined�Acrow�in�July�2019.�He�has�more�than� 20�years’�experience�having�held�senior�financial�and� chief�financial�officer�roles�at�Thorn�Group,�SFG�Ltd,�BT� Financial�Group�and�Colonial�First�State.�He�brings�a� breadth�of�industry�and�property�infrastructure�finance� expertise�to�Acrow,�including�work�in�the�property�funds� and�asset�management,�superannuation�and�financial� advice,�consumer�finance�and�leasing�and�business� finance�industries.�

Matthew Caporella

Chief Operating Officer

Matthew�joined�Acrow�in�2012�and�recently�promoted� to�Chief�Operating�Officer�from�National�Manager�–� Engineering�Operations.�

Jeffery Stewart

National Sales & Marketing Manager

Jeffery�joined�Acrow�in�2011.�His�prior�roles�include� Regional�Manager�and�director�for�Atlas�Steels�in�New� Zealand,�National�Market�Development�Manager�at�Atlas� Specialty�Metals,�and�Market�Development�Manager�for� Smorgon�Steels�Metals�Distribution.�

Robert Parovel

Head of People & Culture

Robert�joined�Acrow�in�November�2021,�having� previously�held�senior�Human�Resource�positions�with� Harsco�Corporation,�GCC�Services,�and�Webuild�Group.� Having�lived�and�worked�abroad,�he�has�extensive� experience�in�the�Asia�Pacific�and�Middle�East�regions.�

Colin Fisher

General Manager (TAS)

Colin�previously�worked�at�Honeywell�Business�Solutions�as� a�General�Manager.�Prior�to�Honeywell�Business�Solutions� he�worked�at�Visy�Industries�as�the�General�Manager,�and� as�the�National�Operations�Manager�at�Onyx�UK�Limited.

Jan Pienaar

General Manager (QLD)

Jan�joined�Acrow�in�December�2018�as�General�Manager,� Queensland.�He�has�more�than�10�years’�management� experience�and�was�previously�National�Sales�manager� at�Doka�Formwork�Australia,�and�before�that�as�General� Manager�(Formwork)�at�Waco�Kwikform.�

Bill Goodall

General Manager (SA)

Bill�joined�Acrow�in�2016.�Bill�has�spent�the�last�16�years� in�management�roles�in�the�Formwork�and�Scaffold� industry�operating�in�NSW,�SA,�NT�&�WA.

Conan Godrich

Jurie Roetger

National General Manager – Industrial Services

Jurie�joined�the�Acrow�Group�as�part�of�the�Uni-span� acquisition�in�October�2019.�He�has�more�than�18�years� industry�experience.�His�previous�roles�with�the�Uni-span� Group�includes�Scaffold�Designer,�Project�Manager,� North Queensland�Manager�and�National�Industrial� Services�Manager.�

Peter Fehrenbach

General Manager (NSW)

Peter�joined�Acrow�in�September�2021.�He�has�over�15 years� management experience, previously holding positions at Bullivants�that�include�National�Operations�and�Supply�Chain� Manager�as�well�as�Regional�Business�Manager�(NSW,�Vic� and�SA).�He�also�held�various�Supply�Chain�leadership�roles� in�the�Australia�Pacific�region�at�Orica.

Jason Merjane

Natform Manager (NSW)

Jason�joined�Natform�in�2015�and�is�responsible�for�the� screens�business�across�the�country.

General Manager (WA)

Conan�brings�over�a�decade�of�experience�with�Acrow.� His�prior�roles�include�Account�Manager�(Gnangara� Operations)�at�Rinker�Australia,�and�Sales�and�Customer� Service�at�OneSteel�Reinforcing.

Carl Roetger

National Head of Procurement

Carl�joined�Acrow�in�October�2019�as�the�National� Procurement�Manager�previously�being�a�Co�founder�and� Director�of�Uni-span�Group�since�2001.�Prior�to�this�Carl� was�the�Co-founder�and�Joint�MD�of�Nu-form�Formwork� and�Scaffolding�in�South�Africa.�

Eddie McInulty

National Business Development Manager

Eddie�joined�Acrow�in�2019�and�brings�20�years�of� experience�from�both�in�the�UK�and�Australia,�specialising� in�the�Civil�Engineering�&�Infrastructure�industry.�Previous� roles�include�Managing�Director�for�GHI�Formwork�Australia,� National�Sales�Manager�for�Uni-span�and�prior�Sales� Management�roles�with�Peri�Australia�and�Peri�UK�Ltd.�

Financial Report

White Residences, Main Beach, QLD

16�Directors’�Report� 49��Financial�Statements 90�Independent�Auditor’s�Report� 22��Auditor’s�Independence� 53��Notes�to�the�Consolidated� 94�Shareholder�Information� Declaration Financial�Statements 97�Corporate�Directory� 23�Remuneration�Report�–�Audited 89�Directors’�Declaration�

Directors’ Report for the year ending 30 June 2022

The�Directors�present�their�report,�together�with�the�Annual�Financial�Report�for�Acrow�Formwork�and�Construction� Services�Limited�(Acrow�or�the�Company)�and�its�controlled�entities,�for�the�year�ended�30�June�2022,�and�the�Auditor’s� Report�thereon.�

This�report�has�been�prepared�in�accordance�with�the�requirements�of�the�Corporations�Act�2001�and�the�information� below�forms�part�of�this�Directors’�Report:�

DIRECTORS

The�Directors�of�the�Company�at�any�time�during�or�since�the�end�of�the�financial�year�are:

Peter�Lancken�(Chairman)� Steven�Boland�(Chief�Executive�Officer)� David�Moffat� Melanie�Allibon�(appointed�1�September�2021) Laurie�Lefcourt�(appointed�1�October�2021)� Gregg�Taylor�(resigned�22�November�2021)� Margaret�Prokop�(resigned�31�December�2021)�

Information�on�the�current�directors�and�shareholdings�are�presented�in�the�Annual�Report�on�pages�12�to�13�and� pages�38�to�44�respectively.�This�information�includes�the�qualifications,�experience,�and�special�responsibilities�of� each director.�

DIRECTORS’ MEETINGS

The�number�of�directors’�meetings�and�number�of�meetings�attended�by�each�of�the�directors�of�the�Company�during� the�financial�year�ending�30�June�2022�are:

				Remuneration	Remuneration	Audit and Risk	Audit and Risk
	Board of	Directors		Nomination	Committee	Committee
			No.		No.		No.
	No. held		attended	No. held	attended	No. held	attended
PeterLancken(Chairman)	16		16	4	4	5	5
StevenBoland(ChiefExecutiveOffcer)	16		16	–	–	–	–
DavidMoffat	16		14	4	4	5	5
MelanieAllibon	9		9	3	3	–	–
LaurieLefcourt	9		9	–	–	2	2
Gregg Taylor	9		8	2	2	3	3
MargaretProkop	10		10	–	–	–	–

Mr�David�Moffat�was�Chair�of�the�Remuneration�and�Nomination�Committee�up�to�16�February�2022�and�replaced�on� that�date�by�Ms�Melanie�Allibon.�

Mr�Gregg�Taylor�was�Chair�of�the�Audit�and�Risk�Committee�up�to�his�date�of�resignation�of�22�November�2021�and� replaced�on�that�date�by�Ms�Laurie�Lefcourt.

COMPANY SECRETARY

Mr�Lee�Tamplin�of�Automic�Group�is�the�Company�Secretary�and�has�over�20�years’�experience�in�the�financial�services� industry�in�both�Australia�and�the�UK.�He�is�Company�Secretary�for�several�ASX�listed,�NSX�listed�and�Proprietary� companies�across�a�range�of�industries.�Mr�Tamplin�holds�a�BA�(Hons)�Financial�Services�(Bournemouth�University� United�Kingdom),�a�Diploma�of�Financial�Planning,�is�a�Graduate�of�the�Australian�Institute�of�Company�Directors,�a� Member�of�the�Governance�Institute�of�Australia,�and�a�Member�of�the�Australian�Institute�of�Company�Directors.

PRINCIPAL ACTIVITIES

Acrow�operates�in�the�Australian�construction�services� industry,�hiring�formwork,�falsework,�scaffolding�and� screen�equipment�and�undertakes�sales�of�formwork� and�scaffolding�related�consumables.�It�also�operates�an� industrial�services�business.

The�formwork�operation�involves�the�supply�of�the� temporary mould that supports concrete structures in their�construction,�whilst�falsework�equipment�is�used� to�support�suspended�horizontal�structures�during� construction.

Screen-based�formwork�systems�support�the� construction of civil infrastructure, commercial and residential�buildings.

The industrial services operation supplies an industrial labour�service�to�compliment�the�scaffolding�hire�to�the� energy,�industrial�and�mining�sectors.

The scaffolding operation supplies scaffolding equipment and�access�solutions�to�builders�and�building�contractors� when�working�at�heights.

OPERATING AND FINANCIAL REVIEW

The�Acrow�business�performed�very�strongly�for�the� 12 months�to�30�June�2022.�

The�business�strategy�re-base�towards�the�value�added,� highly�engineered�civil�formwork�solutions�market�as�well� as an increased focus on equipment sales and expanding its�new�Industrial�Services�division�translated�to�a�large� increase�in�profit�during�the�year.

Financial performance:

The�company�achieved�a�net�profit�after�tax�of�$15.69m� up�296%�from�2021�profit�of�$3.96m.�

On�an�underlying�basis�(refer�to�table�below),�the�net� profit�after�tax�increased�104%�from�$8.71m�to�$17.81m.� The�key�highlights�for�the�year�included:

Group�revenue�increased�40%�on�prior�comparative� period�(“pcp”)�to�$148.3m�(including�sales�of� ex-hire�gear),�attributable�to�a�strong�trading� performance�across�all�divisions�and�states,�led�by� Industrial�Services,�up�110%.�Performance�was�all� organically generated.
Sales�contribution�increased�32%�to�$81.4m,�driven� primarily�by�growth�in�the�Formwork�hire�business
■ Underlying�EBITDA�increased�49%�to�$36.3m�and� EBITDA�margin�of�24.5%�increased�by�1.5ppts�from� pcp.�Significant�scale�benefits�are�now�being�achieved� whereby�expenses�are�increasing�at�a�much�lower� rate�than�the�increase�in�sales�contribution.�The� $19.9m�increase�in�sales�contribution�from�pcp� flowed�through�to�a�$12.0m�increase�in�EBITDA�to� pcp.�That�is�60%�of�the�increase�in�sales�contribution� flowed�through�to�EBITDA.
Underlying�NPAT�increased�104%�from�$8.7m�pcp� to�$17.8m.�Effective�tax�rate�declined�from�15%�pcp� to�10%�assisted�by�carry�forward�tax�losses�which� have�not�been�taken�up�as�an�asset�in�the�accounts�of� the company.
Statutory�NPAT�increased�296%�from�$3.96m� to�$15.69m,�assisted�by�a�substantial�decline�in� significant�items�and�share-based�payments,�down� 55%�to�$2.1m.�

Directors’ Report for the year ending 30 June 2022

Financial performance table

Financial performance table
2022	2021
$’000	$’000
Statutory net proft after tax 15,694	3,963
Addbackshare-basedpayments 1,165	2,246
Addbackacquisition,integrationandrestructuringcosts 954	1,150
Addbackpre-acquisitiontaxexpense –	670
Addbackpreacquisitionaccelerateddepreciation –	384
Addbacknon-operatingnetinterest –	300
Underlying net proft after tax 17,813	8,713
Addbackdepreciation 13,070	11,179
Addbackinterest 3,467	2,948
Addbacktaxexpense 1,962	1,509
EBITDA 36,312	24,349

Financial position:

There�was�an�improvement�in�net�current�assets� of�$11.2m�from�a�deficit�of�$8.2m�pcp�to�a�surplus� of $3.0m.�

Net�debt�increased�from�$22.5m�in�2021�to�$32.8m,� being�cash�$3.0m�(2021:�$1.8m)�less�debt�of�$35.9m� (2021:�$24.2m).�This�was�predominantly�due�to:

significant�investment�expenditure�during�the�year� including�growth�capital�expenditure�of�$14.2m�and� payment�of�deferred�consideration�of�Uni-span�$3.5m.
expansion�of�our�sales�and�industrial�services�labour� businesses�that�required�increases�in�our�working� capital�facilities.�

Net�gearing�(net�debt�/�(net�debt�+�equity))�increased� from�26.7%�to�28.3%.�

Property,�plant�and�equipment�increased�from�$83.0m� to�$95.5m�due�to�total�capital�expenditure�(Growth�and� Stay-in-Business)�of�$22.4m�(2021:�$17.4m)�offset�by� depreciation�and�sales�with�a�written�down�value�of� $2.6m�(2021:�$4.6m).

Total�working�capital�increased�by�$20.7m�to�$32.8m� from�$12.1m�pcp.�This�increase�was�the�result�of:

an�increase�in�overall�revenue�flowing�through�to� debtors’�balances�of�$34.4m�from�$24.6m�pcp.
strategic�decision�taken�to�increase�inventory� holdings�to�secure�supply�and�de-risk�the�disruptions� to�the�supply�chains�which�also�resulted�in� increased prepayments.

Trade�receivables�debtor’s�days�reduced�from�65�days� to�63�days�during�the�year�however�if�the�impact�of� negotiated�extended�sales�are�taken�out,�debtors�days� increased�from�56�to�60.�Total�bad�debts�written�off,�or� debts�in�default�and�fully�provided�for�totalled�$0.8m�(or� 0.6%�of�revenue).�The�percentage�of�write�offs�to�sales� is�relatively�consistent�with�previous�years.�The�total� provision�for�bad�debts�was�increased�during�the�year� from�$1.2m�to�$1.5m.

Further�information�on�the�operating�and�financial�review� is�contained�in�the�Chairman’s�and�Managing�Director’s� Review�on�pages�4�to�6�of�this�Annual�Report.

Operating results:

Refer�to�the�Managing�Director’s�Report�on�pages�4�to�6� of�this�Annual�Report.

DIVIDENDS

The�Company�paid�a�1.15�cent�franked�dividend�per�share� being�a�total�of�$2.88m�for�the�financial�year�ending� 30�June�2021�on�25�November�2021.�Shares�totalling� 1,432,611�were�issued�under�the�Dividend�Reinvestment� Plan�at�$0.4437�cents�per�share�including�a�5%�discount.

The�Company�paid�an�interim�1.20�cents�20%�franked� dividend�per�share�being�a�total�of�$3.0m�for�the� financial�year�ending�30�June�2022�on�27�May�2022.� Shares�totalling�706,181�were�issued�under�the�Dividend� Reinvestment�Plan�at�$0.4575�cents�per�share�including� a�2.5%�discount.

Subsequent�to�year�end,�Directors�declared�a�final�60%� franked�dividend�of�1.50cps�on�23�August�2022�to�be�

paid�on�30�November�2022.�This�dividend�has�not�been� provided�for�in�this�financial�report.

ENVIRONMENTAL REGULATIONS

Acrow’s�operations�are�not�subject�to�significant� environmental�regulations�under�the�Commonwealth� of�Australia�and�State/Territory�legislation.�The�Board� believes�that�Acrow�has�adequate�systems�in�place�to� manage�its�environmental�responsibilities�and�is�not� aware�of�any�breach�of�regulations.�

The�Group�is�also�subject�to�environmental�regulation� in�respect�of�its�exploration�activities�in�Ghana�but�not� aware�of�any�breach�of�those�regulations.

NO OFFICERS ARE FORMER AUDITORS

No�officer�of�the�Company�has�been�a�partner�in�an�audit� firm,�or�a�director�of�an�audit�company,�that�is�an�auditor� of�the�Company�during�the�year�or�was�such�a�partner� or�Director�at�a�time�when�the�audit�firm�or�the�audit� company�undertook�an�audit�of�the�Company.�

NON-AUDIT SERVICES

All�non-audit�services�were�subject�to�the�corporate� governance�procedures�adopted�by�the�Group�and� have�been�reviewed�by�the�Audit�and�Risk�Committee� to ensure that they do not impact the integrity and objectivity�of�the�auditor.�

All�the�non-audit�services�provided�do�not�undermine� the general principles relating to auditor independence as�set�out�in�APES�110�Code�of�Ethics�for�Professional� Accountants,�as�they�did�not�involve�reviewing�or� auditing�the�auditor’s�own�work,�acting�in�a�management� or�decision-making�capacity�for�the�Group,�acting� as�an�advocate�for�the�Group�or�jointly�sharing�risks� and rewards.�

Details�of�the�amounts�paid�or�payable�to�the�auditor�of� the Group, Grant Thornton and their related practices for audit�and�non-audit�services�during�the�year�are�set�in� note�27.

SIGNIFICANT CHANGES IN THE STATE OF AFFAIRS

There�were�no�significant�changes�in�the�Group’s�state� of affairs.

During�the�year,�743,400�performance�rights�that�had� previously�been�issued�to�KMP’s�under�the�Company’s� Rights�Plan�vested�when�the�vesting�conditions�were� achieved.�A�total�of�908,600�performance�rights�relating� to the same tranches did not meet vesting conditions and�were�forfeited.�

Other�than�above,�no�new�share�rights�or�options�were� issued�to�Key�Management�Personnel�or�Non-executive� directors�during�the�year.

SHARE RIGHTS

At�the�date�of�this�report,�Acrow�had�6,860,000�share� options outstanding relating to grants of deferred equity�to�Directors�and�employees�under�the�previous� Long-Term�Incentive�Plan.�These�have�a�range�of�vesting� dates�through�to�July�2024.�During�the�year�50,000�share� options�were�cancelled�after�failing�to�meet�vesting� criteria�and�none�were�exercised.�

7,901,708�Performance�Rights�were�issued�during�the� year�with�vesting�periods�at�the�end�of�the�financial� years�2023�and�2024.�If�the�vesting�conditions�are�met� each�Performance�Right�can�be�exercised�into�one�Fully� Paid�Ordinary�Share�at�the�holder’s�discretion�until�the� expiry�date�of�6�June�2037.�The�Performance�Rights� were�issued�to�employees�of�the�Company�under�the� Company’s�Rights�Plan�and�form�part�of�the�new�Long� Term�Variable�Remuneration�(LTVR)�of�the�employees.� Performance�Rights�issued�to�KMP’s�are�included�in� this balance.

A�further�1,175,618�Performance�Rights�were�granted� during�the�year�relating�to�the�30�June�2022�vesting� period�and�364,000�were�cancelled�on�terminated� employees.�

359,000�Performance�Rights�were�issued�and�vested� immediately�from�the�plan�relating�to�a�short-term� incentive.�These�were�exercised�during�the�year�into� ordinary�shares.

3,526,620�Performance�Rights�vested�during�the�year� after meeting vesting criteria for the measurement period to�30�June�2021�and�3,165,120�were�exercised�into� ordinary�shares.�4,310,330�Performance�Rights�relating� to�measurement�period�to�30�June�2021�were�forfeited� after�not�achieving�vesting�criteria.�This�includes�KMP� Performance�Rights�detailed�above.

REMUNERATION REPORT

Information�on�Acrow’s�remuneration�framework�and�the� outcomes for the Group are included in the Remuneration Report�section�of�this�Annual�Report.�

During�the�year,�845,090�performance�rights�were�issued� to�KMP’s�under�the�Company’s�Rights�Plan.�

Directors’ Report for the year ending 30 June 2022

Balance�of�outstanding�rights�and�options�as�at�year�end:

	Quantity	Weighted average
	outstanding	exercise price	Expiry date
Performance rights	17,184,826	Nil	31July2035to
			6 June2037
Options	6,860,000	$0.47	13December2022
			to16July2024
Loanfundedoptions	2,194,500	$0.20	26March2023

For�further�details,�refer�to�note�29�of�this�Annual�Report.

LIKELY DEVELOPMENTS AND EXPECTED RESULTS

For�information�about�likely�developments�and�expected� results�in�the�operations�of�the�Company,�refer�to�the� Chairman’s�and�Managing�Director’s�Reports�on�pages�2� to�6�of�this�Annual�Report.

INDEMNIFICATION OF DIRECTORS AND OFFICERS

Under�the�terms�of�Article�35�of�the�Company’s� Constitution,�and�to�the�extent�permitted�by�law,�the� Company�has�indemnified�the�directors�of�the�Company� named�in�this�Directors’�report,�the�Company�Secretaries,� and�other�persons�concerned�in�or�taking�part�in�the� management�of�Acrow.�The�indemnity�applies�when� persons�are�acting�in�their�capacity�as�officers�of�the� Company�in�respect�of:�

Liability�to�third�parties�(other�than�the�Company�or� related�bodies�corporate),�if�the�relevant�officer�has� acted�in�good�faith;�and�
Costs�and�expenses�of�successfully�defending�legal� proceedings�in�which�relief�under�the� Corporations Act 2001 �is�granted�to�the�relevant�officer.�

The Group has not made any indemnity payment during the�year.

INSURANCE PREMIUMS

During�the�financial�year,�the�Company�paid�a�premium� of�$229,896�excluding�GST�for�Directors’�and�Officers’� Liability�Insurance�policy.�The�insurance�provides�cover� for�the�Directors�named�in�this�Directors’�Report,�the� Company�Secretary,�and�officers�and�former�Directors� and�officers�of�the�Company.�The�insurance�also�provides� cover�for�present�and�former�Directors�and�officers�of� other�companies�in�the�Group.�

CORPORATE GOVERNANCE STATEMENT

This statement outlines the main corporate governance practices�in�place�throughout�the�financial�year�and�can� be�referred�to�on�the�Acrow�Group�website:�https://www. acrow.com.au/investors/

EVENTS SUBSEQUENT TO THE END OF THE FINANCIAL YEAR

Equipment�finance�and�Trade�finance�facility�limits� to�revert�on�30�September�2022�from�$20,000,000� to�$22,000,000�and�from�$8,000,000�to�$6,000,000� respectively,�per�agreement�made�on�10�June�2022.�

A�new�loan�agreement�for�capital�purchases�was�drawn� down�in�July�2022.�The�loan�amount�is�$4,125,000,� matures�in�3�years�from�commencement�date�and� repayable�in�full�by�June�2025.�

Bank�guarantee�facility�increased�from�$1,400,000� to�$1,700,000�by�reducing�the�overdraft�facility�from� $6,600,000�to�$6,300,000.

Further�Equipment�finance�loans�of�$3,832,596�were� drawn,�repayable�in�full�at�end�of�three�years�and�Trade� finance�loans�of�$1,688,639�were�drawn�in�and�repayable� in�full�within�180�days.�

An�insurance�premium�finance�loan�of�$1,201,539.53� was�drawn�on�22�August�2022�repayable�in�full�by� 22�July�2023.�

On�23�August�2022�the�Directors�declared�a�60%� franked�dividend�of�1.5�cents�per�share�to�be�paid�on� 30 November�2022.�Dividend�Reinvestment�Plan�is� available�for�election.�The�dividend�has�not�been�provided� for�in�this�financial�report�as�it�was�not�declared�until� after�30�June�2022.

Other�than�the�matters�noted�above,�there�has�not�arisen� in�the�interval�between�the�end�of�the�financial�year�and� the�date�of�this�Directors’�report,�any�item,�transaction,� or�event�of�a�material�and�unusual�nature�likely,�in�the� opinion�of�the�directors�of�the�Company,�to�significantly� affect�the�operations�of�Acrow,�the�results�of�those� operations,�or�the�state�of�affairs�of�Acrow�in�future� financial�years.

ROUNDING OF AMOUNTS

Acrow�Formwork�and�Construction�Services�Limited� is�a�company�of�the�kind�referred�to�in�the�Australian� Securities�and�Investments�Commission�(ASIC)� Corporations�(Rounding�in�Financial/Directors’�Reports)� Instrument�2016/191,�dated�24�March�2016�and�in� accordance�with�that�Legislative�Instrument,�amounts�in� the�Consolidated�Financial�Statements�and�this�Directors’� Report�have�been�rounded�off�to�the�nearest�dollar,� unless�stated�otherwise.�

LEAD AUDITOR’S INDEPENDENCE DECLARATION

The�lead�auditor’s�independence�declaration�made� under�section�307C�of�the�Corporations�Act�2001�is�set� out on page 22 of the Annual Report and forms part of�the�Directors’�Report�for�the�financial�year�ended� 30�June�2022.�

Signed�in�accordance�with�a�resolution�of�the�Directors:

==> picture [148 x 25] intentionally omitted <==

Peter Lancken

Chairman

Sydney,�27�September�2022

==> picture [79 x 27] intentionally omitted <==

Steven Boland

Director,�Chief�Executive�Officer Sydney,�27�September�2022

Auditor’s Independence Declaration

for the year ending 30 June 2022

==> picture [138 x 27] intentionally omitted <==

Grant Thornton Audit Pty Ltd Level 17 383 Kent Street Sydney NSW 2000 Locked Bag Q800 Queen Victoria Building NSW 1230 T +61 2 8297 2400

Auditor’s Independence Declaration

To the Directors of Acrow Formwork and Construction Services Limited

In accordance with the requirements of section 307C of the Corporations Act 2001 , as lead auditor for the audit of Acrow Formwork and Construction Services Limited for the year ended 30 June 2022, I declare that, to the best of my knowledge and belief, there have been:

a no contraventions of the auditor independence requirements of the Corporations Act 2001 in relation to the audit; and

b no contraventions of any applicable code of professional conduct in relation to the audit.

==> picture [119 x 36] intentionally omitted <==

Grant Thornton Audit Pty Ltd Chartered Accountants

==> picture [124 x 36] intentionally omitted <==

N P Smietana Partner – Audit & Assurance Sydney, 27 September 2022

www.grantthornton.com.au

ACN-130 913 594

Grant Thornton Audit Pty Ltd ACN 130 913 594 a subsidiary or related entity of Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389. ‘Grant Thornton’ refers to the brand under which the Grant Thornton member firms provide assurance, tax and advisory services to their clients and/or refers to one or more member firms, as the context requires. Grant Thornton Australia Limited is a member firm of Grant Thornton International Ltd (GTIL). GTIL and the member firms are not a worldwide partnership. GTIL and each member firm is a separate legal entity. Services are delivered by the member firms. GTIL does not provide services to clients. GTIL and its member firms are not agents of, and do not obligate one another and are not liable for one another’s acts or omissions. In the Australian context only, the use of the term ‘Grant Thornton’ may refer to Grant Thornton Australia Limited ABN 41 127 556 389 ACN 127 556 389 and its Australian subsidiaries and related entities. Liability limited by a scheme approved under Professional Standards Legislation.

7491071 4

Remuneration Report – Audited for�the�year�ending�30�June�2022

1 Letter from the Chair of the Remuneration Committee

I�am�delighted�to�bring�you�this�Remuneration�Report� of�the�Acrow�Group�which�outlines�key�aspects�of� the�remuneration�policy�and�framework�and�the� remuneration�awarded�this�year.

The�information�provided�in�this�report�has�been�prepared� based�on�the�requirements�of�the�Corporations�Act� 2001�and�the�applicable�accounting�standards�and�has� been audited.

The Board provides guidance and oversight to the�remuneration�strategy�and�has�established�a� Remuneration�&�Nomination�Committee�to�ensure� the remuneration strategy attracts and retains quality directors�and�executives,�fairly�and�responsibly� rewards�them,�is�equitable�and�aligned�to�shareholders’� interests, and�complies�with�the�law�and�high�standards� of�governance.

The�Remuneration�Committee�reviews�executive� remuneration�to�ensure�that�it�continues�to�align�with� Acrow’s�strategy,�motivates�management,�reflects�market� best�practice�and�support�the�delivery�of�sustainable� long-term�returns�to�shareholders.�As�part�of�the�review� process,�we�will�continue�to�engage�with�specialised� advisors�and�major�shareholders.

The�remuneration�report�received�overwhelming�support� from�shareholders�at�the�2021�AGM�with�99.36%�of�votes� in�favour�including�proxy’s�discretion�of�1.56%.

During�the�FY2022�reporting�period,�the�Remuneration� Committee�has�focussed�on�the�performance�of� executives�in�delivering�expected�outcomes.�We�have� also engaged external advisors to support the committee to identify those areas of remuneration policies, procedures�and�practices�that�will�require�ongoing� change�and�improvement.

Melanie Allibon

Independent�Non-Executive�Director Chair�of�the�Remuneration�Committee

2 Scope of the Remuneration Report and Individuals Classed as KMP

The�Remuneration�Report�sets�out�the�prescribed�key� management�personnel�(KMP)�remuneration�information� and�details�in�accordance�with�section�300A�of�the� Corporations�Act�and�associated�regulations,�including� policies, procedures, governance, and factual practices as�required.

In�addition,�Acrow�Formwork�and�Construction�Services� Limited�(Acrow,�the�Company)�has�decided�to�set�out� such further information as shareholders may require for

them�to�obtain�an�accurate�and�complete�understanding� of�the�Company’s�approach�to�the�remuneration�of�KMP.�

KMP�are�the�non-executive�directors,�the�executive� directors�and�employees�who�have�authority�and� responsibility�for�planning,�directing�and�controlling�the� activities of the consolidated entity, directly or indirectly during�any�part�of�the�financial�year.�On�that�basis,�the� following�roles/individuals�are�addressed�in�this�report:

Non-executive Directors (NEDs)

Mr�Peter�Lancken,�independent�non-executive� Chairman�since�27�March�2018.
Mr�David�Moffat,�independent�non-executive�director� since�19�September�2019,�Chair�of�Remuneration� Committee�from�6�October�2020�to�16�February�2022.
Ms�Melanie�Allibon,�independent�non-executive� director�from�1�September�2021,�Chair�of� Remuneration�Committee�from�17�February�2022.
Ms�Laurie�Lefcourt,�independent�non-executive� director�since�1�October�2021,�Chair�of�Audit�&�Risk� Committee�from�23�November�2021.
Mr�Gregg�Taylor,�independent�non-executive�director� since�11�August�2017,�Chair�of�the�Audit�&�Risk� Committee�since�6th�October�2020,�resigned�on� 22 November�2021.

Senior Executives Classified as KMP During the Reporting Period

Mr�Steven�Boland,�Chief�Executive�Officer�(CEO)�&� Executive�Director�since�27�March�2018.
Mr�Andrew�Crowther�Chief�Financial�Officer�(CFO)� since�8�July�2019.
Ms�Margaret�Prokop,�Executive�Director�since� 31 August�2018,�retired�on�31�December�2021.

3 Context of KMP Remuneration for FY2022 and into FY2023 – unaudited

3.1 Context for Remuneration Governance during FY2022

The KMP remuneration structures that appear in this report�are�largely�those�that�prevailed�over�FY2022,�as�is� required�by�regulation,�but�also�address�expectations�for� FY2023,�to�some�extent.�

The Board has further developed remuneration governance, policies and practices applied to KMP of�the�Company,�as�well�as�other�employees�as�the� business�has�and�continues�to�mature.�The�following� outlines�important�context�for�the�decisions�that�were� made�in�relation�to�remuneration�for/during�FY2022,�the� outcomes�of�which�are�presented�in�this�report.

Remuneration Report – Audited for the year ending 30 June 2022

A�total�of�7,901,708�performance�rights�were�issued� to executives and senior managers in the 12 months to�30�June�2022�for�the�2023�and�2024�years.�The� issues�have�three-year�measurement�periods.
A�total�of�1,175,618�performance�rights�were�issued� to�executives�and�senior�managers�and�364,000� cancelled�in�the�12�months�to�30�June�2022� for�the�2022�year.�This�issue�had�a�three-year� measurement period.
A�total�of�359,000�performance�rights�were�issued� out�of�the�LTVR�plan�to�senior�executives�and�senior� managers�relating�to�short�term�incentive.�These� rights�were�vested�immediately�and�all�exercised�by� 30�June�2022.
The�Company�is�focussed�on�delivering�value�for� shareholders�by�executing�on�strategy�including:
–�Becoming�the�leading�engineered�formwork�sales� and hire equipment solutions provider in Australia
–�Become�the�leading�engineered�solutions�provider� to�the�Australian�Industrial�Services�market
–�Concentrating�on�profitable�organic�growth
–�Actively�pursuing�strategically�sensible� acquisitions�to�accelerate�profitable�growth
–�Target�high�ROI�organic�growth�opportunities� across all states

4 Overview of Acrow’s

Remuneration Governance Framework & Strategy

4.1 Transparency and Engagement

The�Company�seeks�input�regarding�the�governance� of�KMP�remuneration�from�a�wide�range�of� sources, including:

Shareholders�and�other�stakeholders,
Remuneration�Committee�Members,
External�remuneration�consultants�(ERCs),
Other experts and professionals such as tax advisors and�lawyers,�and
Company�management�to�understand�roles�and� issues�facing�the�Company.

The�following�outlines�a�summary�of�Acrow’s� Remuneration�Framework,�including�policies�and� practices�to�the�extent�developed.�Shareholders�can� access�a�number�of�the�related�documents�by�visiting�the� investors�portal�on�the�Company�website�www.acrow. com.au.�It�is�recommended�that�shareholders,�proxy� advisors and other interested parties consider all the available�information.

4.2 Remuneration Committee Charter

The�Remuneration�Committee�Charter�(the�Charter)� governs�the�operation�of�the�Remuneration�Committee� (the�Committee).�It�sets�out�the�Committee’s�role�and� responsibilities,�composition,�structure�and�membership� requirements.�The�purpose�of�the�Committee�is�to�assist� the�Board�by:

Establishing�appropriate�processes�regarding�the� review�of�the�performance�of�directors,�committees� and the Board, and implementing them,
Reviewing�and�making�recommendations�to�the� Board�in�relation�to�the�remuneration�packages� of�Senior�Executives�and�non-executive�directors,� equity-based�incentive�plans�and�other�employee� benefit�programs,
Developing�policies,�procedures�and�practices�that� will�allow�the�Company�to�attract,�retain�and�motivate� high�calibre�executives,�and
Ensuring�a�framework�for�a�clear�relationship�between� key�executive�performance�and�remuneration.

The�Committee�has�the�authority�to�obtain�outside�legal� or other professional advice or assistance on any matters within�its�terms�of�reference.�

Acrow�recognises�the�importance�of�ensuring�that�any� recommendations�given�to�the�Committee�provided�by� remuneration consultants are provided independently of�those�to�whom�the�recommendations�relate.�Further� information�about�the�parameters�under�which�external� remuneration�consultants�are�engaged�is�provided�below.

4.3 Senior Executive Remuneration Policy

The�Company’s�senior�executive�remuneration�policy� may�be�summarised�as�follows:

Remuneration�for�senior�executives�should�be� composed�of:
–�Fixed�Package�inclusive�of�superannuation,� allowances,�benefits�and�any�applicable�fringe� benefits�tax�(FBT),
–�Variable�remuneration�which�is�at-risk,�creating� opportunity�for�the�Company�to�pay�less�than� the�potential�variable�remuneration�when� performance�expectations�have�not�been�met,�and� which�is�partly�an�incentive�to�reward�executives� for�meeting�or�exceeding�expectations,�including:
- •� Short�Term�Incentive�(STI)�or�Bonus� opportunity�which�provides�a�reward�for� performance�against�annual�objectives,�and
- •� Long�Term�Variable�Remuneration�(LTVR)� which�provides�an�equity-based�reward�for� performance against indicators of shareholder

benefit�or�value�creation,�over�a�multi-year� period, and

–�In�total�the�sum�of�the�elements�will�constitute�a� total�remuneration�package�(TRP).
Both�internal�relativities�and�external�market�factors� should�be�considered,
Total�remuneration�packages�(TRPs,�which�include� Fixed�Package�and�incentives)�should�be�structured� with�reference�to�market�practices,�the�practices�of� competitors for talent, and the circumstances of the Company�at�the�time,
Remuneration�will�be�managed�within�a�range�to� allow�for�the�recognition�of�individual�differences�such� as�the�calibre�of�the�incumbent�and�the�competency� with�which�they�fulfil�a�role�(a�range�of�+/-�20%�is� specified�in�line�with�common�market�practices),�and
Termination�benefits�will�generally�be�limited�to�the� default�amount�allowed�for�under�the�Corporations� Act�(without�shareholder�approval).

Changes�to�remuneration�resulting�from�annual�reviews� are�generally�to�be�determined�in�relation�to:

external�benchmarking,�and/or�market�movements,
whether�current�remuneration�for�the�incumbent� is�above�or�below�the�policy�midpoint/benchmark� –�those�below�the�midpoint�will�tend�to�receive� higher increases,�
the�competence�of�the�incumbent�in�fulfilling�their�role� which�determines�their�positioning�within�the�policy� range�–�higher�calibre�incumbents�are�intended�to�be� positioned higher in the range, and
any�changes�to�internal�relativities�related�to�role/ organisation design that have occurred since the previously�review.

4.4 Non-executive Director Remuneration Policy

The�Non-executive�Director�remuneration�policy�applies� to�non-executive�directors�(NEDs)�of�the�Company�in�their� capacity�as�directors�and�as�members�of�committees,� and�may�be�summarised�as�follows:

Remuneration�may�be�composed�of:
–�Board�fees,
Remuneration�will�be�managed�within�the�aggregate� fee�limit�(AFL)�or�fee�pool�approved�by�shareholders� of�the�Company,�noting�that�equity�does�not�count� towards�the�AFL�unless�cash�remuneration�is� sacrificed�for�a�grant�of�equity,�refer�section�9.�The� company�has�operated�under�the�AFL�throughout� the year,
The�Board�may�seek�adjustment�to�the�AFL�in�the� case�of�the�appointment�of�additional�NEDs,�or�should� the�AFL�become�insufficient�to�attract�or�retain�the� appropriate�calibre�of�NEDs,
Remuneration�should�be�reviewed�annually,
Committee�fees�may�be�used�to�recognise�additional� contributions�to�the�work�of�the�Board�by�members� of�committees�in�circumstances�that�the�workload�of� the Board is not equally shared, and
The�Board�Chair�fee�will�be�set�as�a�multiple�of�the� fees�payable�to�other�NEDs,�in�recognition�of�the� additional�workload�associated�with�this�role.

4.5 Short-Term Incentive Policy

The�short-term�incentive�policy�of�the�Company�is� that an annual component of executive remuneration should�be�at-risk�and�allow�the�Company�to�modulate� the�cost�of�employment�to�align�with�individual�and� Company�performance�while�motivating�value�creation� for shareholders:

The�STI�should�be�paid�in�cash�and�deferral�should� not apply since there is a separate component of remuneration�(the�LTVR)�which�is�intended�to�address� long term outcomes,
Non-executive�directors�are�excluded� from participation,
A�termination�of�employment�will�trigger�a�forfeiture� of�some�or�all�of�unearned�STI�entitlements� depending upon the circumstances of the termination.�The�Board�retains�discretion�to�trigger�or� accelerate payment or vesting of incentives provided the�limitation�on�termination�benefits�as�outlined�in� the�Corporations�Act�are�not�breached,�and
Short�term�awards�are�linked�to�the�main�drivers�of� value�creation�at�the�group,�business�unit�or�individual� level,�as�may�be�appropriate�to�the�role�and�subject�to� Board�decision.
–�Committee�fees,
–�Superannuation,
–�Other�benefits,�and
–�Equity�(if�appropriate�at�the�time)

Remuneration Report – Audited for the year ending 30 June 2022

4.6 Long-Term Incentive Policy

The�long-term�incentive�policy�of�the�Company�is�that�a�component�of�remuneration�of�executives�should�be�at-risk� and�linked�to�equity�in�the�Company�to�ensure�that�the�interests�of�executives�are�aligned�with�those�of�shareholders,� and�share�risk�with�shareholders:

Long Term Variable Remuneration Plan (LTVR)

Aspect	Plan Rules, Offers and Comments
Purpose	TheLTVRPlan’spurposeistoprovideanelementofat-riskremunerationthat
	constitutespartofamarketcompetitivetotalremunerationpackageandaimsto
	ensurethatSeniorExecutiveshavecommonlysharedgoalsrelatedtoproducing
	relativelyhighreturnsforShareholders.OtherpurposesoftheLTVRPlanare
	toassistSeniorExecutivestobecomeShareholders,provideacomponentof
	remunerationtoenabletheCompanytocompeteeffectivelyforthecalibreoftalent
	requiredforittobesuccessfulandtohelpretainemployees,therebyminimising
	turnoverandstabilisingtheworkforcesuchthatinperiodsofpoorperformancethe
	costislesser(appliestonon-marketmeasuresunderAASB2).
	Asatbalancedate,theCompanyhadOptionsandLoanfundedsharesforthe
	purposesoftheLTVRoutstandingalthoughnonewereissuedintheyear.
FormofEquity	Thecurrentplaninoperationatbalancedateincludestheabilitytograntthe
	followingRightstoEligibleEmployeeswhichincludesDirectorsandemployeesas
	nominatedbytheBoard:

■	ShareAwards,
■	PerformanceRights,whicharesubjecttoperformancerelatedvesting
	conditions,andwhichmaybesettleduponexercisebynewissuesoronmarket
	purchase of ordinary fully paid Shares,
■	Options,whicharesubjecttoanexerciseprice,andwhichtypicallyhaveno
	intrinsicvaluewhengranted(exercisepriceisaroundtheShareprice),creating
	anincentivetoincreaseSharepriceandgrowshareholdervalue.TheOptions
	maybesettledas“CashlessExercise”inwhichcaseonexerciseoftheOptions
	theCompanywillonlyallotandissueortransferthatnumberofPlanShares
	totheParticipantthatareequalinvaluetothedifferencebetweentheExercise
	PriceotherwisepayableinrelationtotheOptionsandthethenmarketvalueof
	thePlanSharesasatthetimeoftheexercise.Optionsmayalsobesubjectto
	performance related vesting conditions, and

	theCompanywillonlyallotandissueortransferthatnumberofPlanShares totheParticipantthatareequalinvaluetothedifferencebetweentheExercise PriceotherwisepayableinrelationtotheOptionsandthethenmarketvalueof thePlanSharesasatthetimeoftheexercise.Optionsmayalsobesubjectto performance related vesting conditions, and
■	LoanfundedsharesandsharepurchaseLoans,wherebytheCompanyprovides
	anon-recourse,interestfreeloantoexecutivestoacquirefullypaidordinary
	shares,withanassociatedobligationtorepaythelesseroftheloanamount
	andthevalueoftheSharesattheendofthetermoftheloan.Thisfunctions
	effectivelythesameasanOption,withnointrinsicvalueatthetimethe
	arrangementismade,howeverparticipantsholdSharesatanearlierstage.The
	proceedsoftheloanmustbeusedtobuyshares.Astheonlyrecourseonthe
	loansisthesharesandtherearevestingconditions,thearrangementhasbeen
	accountedforasshareoptions,asrequiredunderaccountingstandards.
No	dividends accrue to unvested Rights or Options, and no voting rights are
attached,howeverdividendsdoaccruetovestedLoanFundedShares(alongwith
votingentitlements)whichmustbeputtowardsrepaymentoftheLoanifany
amountisoutstanding.

Long Term Variable Remuneration Plan (LTVR)

Aspect		Plan Rules, Offers and Comments
PlanLimit		UnlesspriorShareholderApprovalisobtained,thenumberofAwardswhichmay
		begrantedunderthisPlan(assumingallOptionsandPerformanceRightswere
		exercised)mustnotatanytimeexceedinaggregate10%ofthetotalIssuedCapital
		oftheCompanyatthedateofanyproposednewAwards.
LTIValue		TheBoardretainsdiscretiontodeterminetheLTVRtobeofferedeachyear,subject
		toshareholderapprovalinrelationtoDirectors,whentheRightsaretobesettledin
		theformofanewissueofCompanyshares.TheBoardmayalsoseekshareholder
		approvalforgrantstoDirectorsinothercircumstances,atitsdiscretion.
		FY2022 Invitations
		Eligibleemployeesweregranted7,901,708performancerightsoverfourtranches
		withatotalfairvalueof$3,325,303.Thesehavepotentialvestingsin2023
		and 2024.
		Eligibleemployeesweregranted1,175,618performancerightsovertwotranches
		withatotalfairvalueof$436,229.Thesehavepotentialvestingsin2022.
		Selectedseniorexecutivesandmanagerswereissued359,000performancerights
		relatingtoshorttermincentiveswithatotalfairvalueof$150,780.
Measurement Period		Three-yearMeasurementPeriodscombinedwithannualgrantswillproduce
		overlappingcyclesthatwillpromoteafocusonproducinglongtermsustainable
		performance/valueimprovementandmitigatestheriskofmanipulationand
		short-termism(continuousimprovement).Becauseofthetimingofgrants,thelife
		oftheRightmaybelessthan3yearsattimes,howeverthisdoesnotimpactthe
		MeasurementPeriodoverwhichperformanceismeasured.
Performance,Vestingand		TheBoardhasdiscretiontosetVesting,PerformanceandForfeitureConditionsand
ForfeitureConditions		foreachInvitation.Whensuchconditionsarenotmet,theentitlementlapses.
		FY2022 Invitations
		Exceptasindicatedbelow,aparticipantmustremainemployedbytheCompany
		duringtheMeasurementPeriodandtheperformanceconditionsmustbesatisfed
		forLTVRtovest.
Retesting		RetestingisnotcontemplatedunderthePlanRules.
AmountPayableforGrants		ThetargetvalueofLTVRisincludedinassessmentsofremunerationbenchmarking
		andpolicypositioning.Noamountispayablebyparticipantsforgrantsof
		PerformanceRights.AnAcquisitionPricewillapplyinrespectofgrantsofLoan
		FundedShares(withanaccompanyingloan)andmayalsoapplytograntsofShare
		Awards,whichmayormaynothaveVestingConditions.Anyloanmustberepaid
		priortotheendoftheLoanTerm,uptotheMarketValueoftheLoanFundedShares
		(non-recourse).
		FortheFY2018grant,LoanFundedShareswereofferedatapriceof20ceach,
		beingthesharepriceatthetimeofthegrantcalculation,andaloanforthisamount
		wasprovidedtotheParticipantforthisamountinrespectofeachLoanFunded
		Sharesacquired.ThesesharesvestedinMarch2020withonly280,500exercisedto
		balancedate.
		NonewLoanFundedShareshavebeengrantedsinceFY2019.

Remuneration Report – Audited for the year ending 30 June 2022

Long Term Variable Remuneration Plan (LTVR)

Aspect	Plan Rules, Offers and Comments
ExerciseofGrants	ParticipantswillberequiredtosubmitanExerciseNoticeinrespectofPerformance
	RightsandOptions,inordertoconvertthemtoShares,aswellasthepaymentof
	theExercisePriceinrespectofeachOptionexercised.Noamountispayableby
	KMPontheexerciseofPerformanceRights.
DisposalRestrictionsetc.	Optionsand/orPerformanceRightsgrantedunderthisPlanmaynotbeassigned,
	transferred,encumberedwithaSecurityInterestinoroverthem,orotherwise
	disposedofbyaParticipant,unlesstheconsentoftheBoardisobtained,ordueto
	theforceoflawinthecaseofthedeathofaParticipant.TheBoardhasdiscretion
	todeterminethedisposalrestrictionsattachingtoShareAwards,LoanFunded
	SharesorPlanShares(resultingfromvestingandexerciseofgrants)aspartofthe
	Invitationterms.
CessationofEmployment	Intheeventofcessationofemploymentinthecircumstancesofa“BadLeaver”
	(resignationorterminationforcause),allunvestedentitlementswillbeforfeited.
	Inothercircumstances,thetreatmentofunvestedawardswillbedealtwithas
	determinedbytheBoard.
	InthecaseofoutstandingloansrelatedtoLoanFundedShares,aBadLeaver
	mustrepaytheloanbythedateofthecessationofemployment.Inothercasesof
	termination,theParticipantwillhavesixmonthsfromthedateofthetermination,
	torepaytheloan.IftheserequirementsarenotsatisfedtheLoanShares
	are surrendered.
ChangeofControlofthe	IfintheopinionoftheBoardachangeofcontroleventhasoccurred,orislikely
Company(CoC)	to occur;
	a)PerformanceRightsgrantedwillvesttotheextentthattheperformanceperiod
	haselapsed,andtotheextentperformanceconditionshavebeenmet(may
	involveapro-ratacalculation),withtheremainderlapsing,
	b)Optionsmaybesubjecttoacceleratedvestinginthesolediscretionofthe
	Board, and
	c)ShareAwardsorLoanFundedShareswhichdonotvestwillautomaticallybe
	surrenderedbytheParticipant,andanythatdonotlapse,andwhicharesubject
	toanoutstandingloanwillbesubjecttotherequirementoftheloanbeingrepaid
	bythedateoftheCoC.
FraudulentorDishonest	IftheBoardtakestheviewthataParticipanthasactedfraudulently,dishonestly,
Actions	orwilfullybreachestheirdutiestothegroup,theBoardhasdiscretiontodetermine
	thatunvestedorunexercisedawardsareforfeited.

The�LTVR�should�be�based�on�Performance�Rights� or�Options�(which�may�include�Loan�Funded�Shares� arrangements)�that�produce�a�benefit�for�Participants� when�performance�objectives�are�met�(which�may� include�increasing�Share�price),
The measurement period for long term incentives should�be�at�least�two�years,
A�termination�of�employment�will�trigger�a�forfeiture� of�some,�or�all�of�the�long-term�incentives�held�by�an� executive�in�respect�of�which�performance�conditions� and�hurdles�have�not�yet�been�met,�depending�upon� the�circumstances�of�the�termination.�The�Board�

retains discretion to trigger or accelerate payment or vesting of incentives provided the limitation on termination�benefits�as�outlined�in�the�Corporations� Act�are�not�breached.

4.7 Securities Trading Policy

The�Company’s�Securities�Trading�Policy�applies�to� Directors�and�executives�classified�as�KMP�(including� their�relatives�and�associates),�those�employees�working� closely�with�KMP,�employees�nominated�by�the�Board,� or�any�other�employee�holding�inside�information.�It�sets� out�the�guidelines�for�dealing�in�any�type�of�Company�

Securities�by�persons�covered�by�the�policy,�and�the� requirement�for�the�Company�to�be�notified�within� 2 business�days�of�any�dealing.�It�also�summarises�the� law�relating�to�insider�trading�which�applies�to�everyone� at�all�times.�Under�the�current�policy,�those�covered�by� the�policy�may�not�trade�during�a�“blackout�period”�or� when�they�hold�inside�information�(subject�to�exceptional� circumstances arrangements, see the policy on the Company�website).�The�following�periods�in�a�year�are� “blackout�periods”�as�defined�in�the�policy:

2�weeks�prior�to�the�release�of�the�Company’s�half� year results,
From�the�financial�year�balance�date�until�24�hours� following�the�release�of�the�Company’s�preliminary� full�year�results�(Appendix�4E),
Within�24�hours�of�release�of�price�sensitive� information�to�the�market,�and
another�date�as�declared�by�the�Board�(“ad-hoc”).

4.8 Executive Remuneration Engagement Policy and Procedure

The�Company�has�adopted�an�executive�remuneration� engagement policy and procedure to manage the interactions�between�the�Company�and�external� remuneration consultants, to ensure their independence and�that�the�Remuneration�Committee�will�have�clarity� regarding�the�extent�of�any�interactions�between� management�and�the�external�remuneration�consultants.� This�policy�enables�the�Board�to�state�with�confidence� whether�the�advice�received�has�been�independent,�and� why�that�view�is�held.�The�Policy�states�that�external� remuneration�consultants�are�to�be�approved�and� engaged�by�the�Board�before�any�advice�is�received,�and� that�such�advice�may�only�be�provided�to�a�non-executive� director.�Interactions�between�management�and�the� external�remuneration�consultants�must�be�approved�and� will�be�overseen�by�the�Remuneration�Committee�when� appropriate.�Refer�to�section�13.

4.9 Variable Executive Remuneration – The Short-Term Incentive Bonus Plan

Short Term Incentive Plan (STIP)

Aspect		Plan Rules, Offers and Comments
Purpose		Theshort-termincentivebonusplan’spurposeistogiveeffecttoanelementof
		remuneration.Thiselementofremunerationreinforcesaperformancefocussed
		culture,encouragesteamworkandco-operationamongexecutiveteammembers
		andmaintainsastableexecutiveteambyhelpingretainkeytalent.Theseobjectives
		aimtobeachievedbyasimpleplanthatrewardsparticipantsfortheirperformance
		duringa12-monthperiod.
Measurement Period		TheCompany’sfnancialyear(12months).Fortheyearended30June2022,the
		measurementperiodwasfrom1July2021to30June2022.
AwardOpportunities		TheCEOwasofferedanopportunityofupto50%ofFixedPackagewhichis
		basedonachievingarangeofmeasurableKPI’swhicharepredominatelybased
		onachievingProftbeforeTaxtargetsandstrategicgoalsandmeetingsafety
		standards.ForotherKMPExecutives,theirindividualKPI’saredeterminedbythe
		CEOincollaborationwiththeBoard.
Performance Assessments		PerformanceassessmentsareundertakenbytheCEOinrelationtootherSenior
andAwardOutcomes		ExecutiveswhothenmakerecommendationstotheBoard,andbytheBoardin
		relationtotheCEO.TheBoardhasdiscretiontovarytherecommendationsofthe
		CEOindeterminingfnalawardoutcomes.
AwardPayment		Assessmentsandawarddeterminationsareperformedfollowingtheendofthe
		MeasurementPeriodandtheauditingofCompanyaccounts.Awardswillgenerally
		bepaidincashintheSeptemberfollowingtheendoftheMeasurementPeriod.
		TheyaretobepaidthroughpayrollwithPAYGtaxdeductedasappropriate.There
		arelimitedsituationswhereawardsmaybesatisfedthroughtheissueofequity.
		Deferralhasnotbeenintroducedduetothemixofshorttermandlong-term
		incentivesbeingappropriatelyweighted.

Remuneration Report – Audited for the year ending 30 June 2022

Short Term Incentive Plan (STIP)

Aspect	Plan Rules, Offers and Comments
CessationofEmployment	Intheeventofcessationofemploymentduetodismissalforcause,allentitlements
DuringaMeasurement	inrelationtotheMeasurementPeriodareforfeited.
Period	Intheeventofcessationofemploymentduetoresignation,allentitlementsin
	relationtotheMeasurementPeriodareforfeited,unlesstheterminationisclassifed
	as“goodleaver”inthediscretionoftheBoard,inwhichcasetheBoardmaymake
	anawardatthetimeofthetermination,orassessoutcomesatthenormaltime,
	followingthetermination.
ChangeofControl	IntheeventofaChangeofControlincludingatakeover,theBoardhasdiscretion
	regardingthetreatmentofshort-termincentivebonusopportunities.
Fraud,GrossMisconduct	IftheBoardformstheviewthataParticipanthascommittedfraud,defalcationor
etc.	grossmisconductinrelationtotheCompanythenallentitlementsinrelationtothe
	MeasurementPeriodwillbeforfeitedbythatparticipant.

4.10 Variable Executive Remuneration – Long Term Variable Remuneration Plan (LTVR) – Performance Rights

The�LTVR�plan�is�an�annual�performance�rights�plan�to�which�selected�executives�and�KMP�are�invited�to�participate� at�the�Board’s�discretion.�The�Company�currently�has�two�LTVR�plans�running�which�share�the�same�method�but�differ� slightly�in�their�hurdles�and�vesting�criteria�detailed�in�the�table�below.�All�of�the�2023�and�2024�plans�were�granted�in� the�form�of�performance�rights�directly�linked�to�the�performance�of�the�Company,�the�returns�generated,�and�relative� increases�in�shareholder�wealth.�This�structure�was�used�to�ensure�appropriate�alignment�to�shareholder�value�over�a� specified�timeframe.

Long Term Variable Remuneration Plan (LTVR)

Aspect	Plan Rules, Offers and Comments
Instrument	Performancerightsbeingarighttoreceiveasharesubjecttoperformanceand
	vestingconditions.
Purpose	Tomotivateexecutivestoachievethelong-termperformancetargets.
Plan limit	Performancerightsissuedfor2023and2024relyonCorporationsActSection708
	relief–“SeniorManagers”.
	Performancerightsissuedoutstandingfor2022wereissuedunderClassOrder
	exemption14/1000.

Long Term Variable Remuneration Plan (LTVR)

Aspect		Plan Rules, Offers and Comments
LTVRValue		TheBoardretainsdiscretiontodeterminetheLTVRtobeofferedeachyear
		2021 plan vested
		Themeasurementperiodofthe2021planfnishedon30June2021.The
		performanceoutcomeresultedin45%ofrightsonissuevesting.60%oftheEPS
		rightsvestedand40%lapsed,TSRrightsdidnotmeetthresholdperformanceand
		lapsed.Atotalof3,526,620werevestedduringtheyearwithallbut361,500being
		exercisedintoordinarysharesasatthedateofthisreport.
		KMPSteveBolandvested495,900rightsandsubsequentlyexercisedintoshares.
		606,100rightsdidnotmeetperformancehurdlesandlapsed.
		KMPAndrewCrowthervested247,500rightsandsubsequentlyexercisedinto
		shares.302,500rightsdidnotmeetperformancehurdlesandlapsed.

2022 plan outstanding

During�the�year�an�additional�1,175,618�performance�rights�were�issued�to�senior� executives�and�managers�at�a�value�of�$436,229.�There�were�364,000�performance� rights�cancelled�due�to�termination�of�employment.

Valuation�of�additional�2022�performance�rights�used�Monte�Carlo�simulation�with� inputs�included:

Exercise�price:�nil
Share�price�at�grant�date�of�between�$0.42�and�$0.52
Expected�price�volatility�between�30%�and�36%�based�on�comparable�companies
Expected�dividend�yield�between�4.7%�and�5.8%�
Risk-free�interest�rate�between�0.05%�and�0.08%

There�are�8,921,618�performance�rights�available�for�vesting�at�the�date�of� this report.

KMP�Steve�Boland�has�1,102,000�rights�available�for�vesting.

KMP�Andrew�Crowther�has�550,000�rights�available�for�vesting.

Short term incentive

There�were�359,000�performance�rights�issued�during�the�year�relating�to�short�term� incentives�for�certain�senior�executives�and�managers�at�a�value�of�$150,780.�These� rights�vested�immediately�with�no�performance�conditions�and�have�subsequently� been�exercised�into�shares.

2023 plan Invitations

A�total�of�3,584,434�performance�rights�have�been�granted�in�the�2023�plan�with�nil� cancelled�at�the�date�of�this�report.

KMP�Andrew�Crowther�has�been�issued�418,664�performance�rights�in�this�plan� with�a�total�fair�value�of�$184,322.

Remuneration Report – Audited for the year ending 30 June 2022

Long Term Variable Remuneration Plan (LTVR)

Aspect	Plan Rules, Offers and Comments
LTVRValue(continued)	2024 plan Invitations
	Atotalof4,317,274performancerightshavebeengrantedinthe2024planwithnil
	cancelledatthedateofthisreport.
	KMPAndrewCrowtherhasbeenissued426,426performancerightsinthisplan
	withatotalfairvalueof$172,576.
	Valuationof2023and2024performancerightsusedMonteCarlosimulationwith
	inputsincluded:
	■ Exerciseprice:nil
	■ Sharepriceatgrantdateof1June2022was$0.48
	■ Expectedpricevolatilitybetween14%and33%–basedon
	comparable companies
	■ Expecteddividendyield5.1%
	■ Risk-freeinterestratebetween2.25%and3.6%
Dividends	Nodividendsarepaidoraccruedonunvestedawards
Tranches	2023 plan:
	■ 50%issuemeasuredonEarningspershare(EPS)criteriaspecifcally“NPAT/
	Weightedaveragenumberofsharesonissue”
	■ 50%issuemeasuredonTotalShareholderreturn(TSR)criteria.Thiscompares
	thesharepriceanddividendsthroughthemeasurementperiodtotheASXsmall
	industrialsindex.

2024 Plan:

■	50%issuemeasuredonEarningspershare(EPS)criteriaspecifcally“NPAT/
	Weightedaveragenumberofsharesonissue”
■	50%issuemeasuredonTotalShareholderreturn(TSR)criteria.Thiscompares
	thesharepriceanddividendsthroughthemeasurementperiodtotheASXsmall
	industrialsindex.

Long Term Variable Remuneration Plan (LTVR)

Aspect	Plan Rules, Offers and Comments
Performance hurdles	ThevestingoftheTSRPerformanceRightswillbedeterminedbyreferencetothe followingscale,inrelationtotheMeasurementPeriod: Performance Level Company’s Annulised TSR Compared to the Annualised TSR of the ASX Small Industrials total Return Index % of Tranche Vesting
	StretchandAbove IndexTSR+160%TSRCAGR 100%
	BetweenTarget and Stretch >130%IndexTSR, <160%TSRCAGR Pro-rata
	Target 130%IndexTSR 50%
	BetweenThreshold and Target >IndexTSR,<130%TSRCAGR Pro-rata
	Threshold IndexTSR 0%
	BelowThreshold <IndexTSR 0%

TSR�is�the�sum�of�Share�price�appreciation�and�dividends�(assumed�to�be�reinvested� in�Shares)�during�the�Measurement�Period.�It�is�annualised�for�the�purposes�of� the�above�vesting�scale.�CAGR�is�Compound�Annual�Growth�Rate.�The�Company’s� annualised�TSR�will�be�compared�with�the�annualised�TSR�of�the�Index.

The�vesting�of�EPS�Performance�Rights�will�be�determined�by�reference�to�the� following�scale,�in�relation�to�the�Measurement�Period:

		% of Tranche
Performance Level	Earnings Per Share (EPS) CAGR	Vesting
StretchandAbove	20%	100%
BetweenTarget	>10%,<20%	Pro-rata
and Stretch
Target	10%	50%
BetweenThreshold	>8%,<10%	Pro-rata
and Target
Threshold	8%	0%
BelowThreshold	<8%	0%

EPS�growth�will�be�calculated�as�the�CAGR�required�for�the�EPS�in�the�year� immediately prior to the commencement of the Measurement Period to equal the�EPS�achieved�in�the�final�year�of�the�Measurement�Period.�The�EPS�will�be� calculated�as�follows�for�each�year�of�the�calculation:

Remuneration Report – Audited for the year ending 30 June 2022

Long Term Variable Remuneration Plan (LTVR)

Aspect	Plan Rules, Offers and Comments
Performance hurdles	NPAT EPS ÷ Time Weighted Average Issued Shares
(continued)	■ NPATinanyperiodrelatingtotheplanwillbesignedoffbytheBoard.Thiswill
	alsoinclude“base”capexbudgetedtoachievethebudgetedNPAT.
	■ AnycapexacquiredabovebudgetwillrequirethetargetNPATadjustedfor
	therelevantmeasurementyearsatarequiredreturnof40%weightedpost
	taxforthetimeavailable(i.e.abovebudgetcapex40%returntimeavailable
	during year).
	■ IfanyM&Aactivityoccurs,theNPATwillbeadjustedinconsultationwith
	the Board.
	■ TheBoardhasdiscretionregardingwhetherornottoapproveadjustments
	relatingtoNPATateachmeasurementperiod.
	Options and Loan funded shares granted before FY2021
	ConditionsofissueshavebeenincludedinpreviousRemunerationreports.For
	KMP’sthevestingconditionsincludeminimumserviceperiodofoneyeartofour
	yearsandvarioussharepricetargetswithexercisepriceof20centsto50cents.
	AndrewCrowtherhas600,000outof1,200,000unitsofoptions(allwithexercise
	priceof40centsperunit)vestedbutremainunexercisedaftertwoyearsofservice
	periodbeforereportingdate.Theremaining600,000unitsconsistoftwofurther
	tranchesfurtherequaltranchesvestingoverthreeandfouryearsofserviceperiods.
Gateway	TSRandEPSPerformanceRightsarenotsubjecttoagate,however,vestingabove
	TargetinanyyearswillbesubjecttotheBoardsdiscretionaryapproval.
Measurement Period and	2023 Plan:1July2020to30June2023(3years)
vesting dates	2024 plan:1July2021to30June2024(3years)
	Eachgrantistestedonthegrantperformancehurdlescriteriaattheendofthe
	measurementperiod.
	Vestingforeachsuccessfultrancheoccursonlyafterthesignedauditedfnancial
	statementsarelodgedwiththeAustralianStockExchangerelevanttoeachplan.
Retesting	RetestingisnotcontemplatedunderthePlanRules.
Amountpayableforgrants	NoamountispayablebyparticipantsforgrantsofPerformanceRights
ExerciseofGrants	ParticipantswillberequiredtosubmitanExerciseNoticeinrespectofvested
	performancerightsinordertoconvertthemtoShares.EachRighthasaTerm
	of15 yearsfromtheGrantDateandifnotexercisedwithinthatTermtheRights
	will lapse.
Performance Assessments	At the end of each performance period, the Remuneration and Nomination
andAwardOutcomes	Committeeassessestherelevantperformancemeasuresanddeterminesthe
	extenttowhichtheawardsshouldvest.Paymentismadebytheissuingortransfer
	of shares.
AwardPayment	Assessmentsandawarddeterminationsareperformedfollowingtheendofthe
	MeasurementPeriodandtheauditingofCompanyaccounts.Awardswillgenerally
	bepaidincashintheSeptemberfollowingtheendoftheMeasurementPeriod.
	TheyaretobepaidthroughpayrollwithPAYGtaxdeductedasappropriate.There
	arelimitedsituationswhereawardsmaybesatisfedthroughtheissueofequity.
	Deferralhasnotbeenintroducedduetothemixofshorttermandlong-term
	incentivesbeingappropriatelyweighted.

Long Term Variable Remuneration Plan (LTVR)

Aspect		Plan Rules, Offers and Comments
CessationofEmployment		Intheeventofcessationofemploymentduetodismissalforcause,allentitlements
DuringaMeasurement		inrelationtotheMeasurementPeriodareforfeited.
Period		Intheeventofcessationofemploymentduetoresignation,allentitlementsin
		relationtotheMeasurementPeriodareforfeited,unlesstheterminationisclassifed
		as“goodleaver”inthediscretionoftheBoard,inwhichcasetheBoardmaymake
		anawardatthetimeofthetermination,orassessoutcomesatthenormaltime,
		followingthetermination.
ChangeofControl		Ifachangeofcontroloccurspriortothevestingofanaward,thentheBoardmay
		determineinitsabsolutediscretionwhetherallorsomeofaparticipant’sunvested
		awardvest,lapse,isforfeited,orcontinues.

5 Proforma Executive Remuneration for FY2022 (non-statutory disclosure) – unaudited

The�disclosures�required�under�the�Corporations�Act�(including�regulations)�and�prepared�in�accordance�with� applicable�accounting�standards,�do�not�provide�shareholders�with�an�understanding�of�the�intended�remuneration� in�a�given�year.�For�example,�the�LTVR�disclosed�is�not�reflective�of�the�remuneration�opportunity�for�the�year�being� reported�on,�due�to�the�requirements�of�AASB2.�Therefore,�the�following�table�is�provided�to�ensure�that�shareholders� have�an�accurate�understanding�of�the�Board’s�intention�regarding�the�remuneration�offered�to�executives�during� FY2022.�The�values�presented�reflect�the�remuneration�for�a�full�year�i.e.�ignoring�any�part-year�reporting�impact.

		Fixed Package
		including		LTVR	Total Value
Position	Incumbent	super1	Target STI2	Opportunity	of Package
ExecutiveDirectorand	Steven Boland	$553,519	$276,760	$247,922	$1,078,201
ChiefExecutiveOffcer
ChiefFinancialOffcer	AndrewCrowther	$327,818	$98,346	$93,706	$519,870
ExecutiveDirector	MargaretProkop(resigned	$83,345	–	–	$83,345
	31December2021)

1��Package�includes�car�allowance�and�superannuation.

2��With�Steven�Boland�(CEO),�STI�is�capped�at�50%�of�his�package;�with�Andrew�Crowther�(CFO)�STI�is�capped�at�30%�of�his�package�subject� to�achieving�individual�KPIs�and�performance�targets.

Remuneration Report – Audited for the year ending 30 June 2022

6 Vested/Awarded Incentives and Remuneration Outcomes in Respect of the Completed FY2022 Period (non-statutory disclosure) – Unaudited Thestatutorydisclosurerequirementsandaccountingstandardsmakeitdiffcultforshareholderstoobtainaclearunderstandingofwhattheactualremuneration outcomesforexecutiveswereinrelationtoagivenreportingperiod.Thefollowingtablebringstheseoutcomesbacktotheyearofperformanceoutcometowhich theawardoutcomerelates,andwhichisthereportingperiod,i.e.LTIispresentedasbeingpartoftheremunerationfortheyearduringwhichperformancetesting was completed. STI and LTI Outcomes Position Incumbent Fixed Package including super1 Temporary relocation2 Actual STI3 STI vested % STI forfeited % LTVR Value4 Total Value of Package Gains/Losses on Vested LTI from Change in Value During Vesting Period5	ExecutiveDirectorand ChiefExecutiveOffcer Steven Boland $553,519 $97,072 $276,760 100% 0% $108,156 $1,035,507 $98,621	ChiefFinancialOffcer AndrewCrowther $327,818 – $93,926 96% 4% $41,283 $463,027 $61,917	ExecutiveDirector MargaretProkop(resigned 31December2021) $83,345 – – – – – $83,345 –	1Packagepaidincludescarallowanceandsuperannuation. 2IncludestemporaryaccommodationthatceasedinNovember2021. 3ThisisthevalueofthetotalSTIawardcalculatedandpayablefollowingtheendoftheFY2022. 4OnlyLTIsthatvestedandexercisedinFY2022havebeendisclosedintheabove.ForStevenBoland,495,900unitsofperformancerightswerevestedandexercisedasshares;andfor Andrew Crowther,247,500unitsperformancerightswerevestedandexercisedasshares. 5ThisisthenumberofLTIrightsthatvestedinFY2022,multipliedbythe5-dayVWAPsharepriceonthedateofvestinglessthegrantvalue. Detailsregardingtheassessmentsofperformancethatgaverisetotheshort-termincentivebonusoutcomesforFY2022aregivenbelow.

7 Performance Outcomes for FY2022

7.1 Company Performance

The�following�outlines�the�performance�of�the�Company�over�the�FY2016�and�FY2022�period�in�accordance�with�the� requirements�of�the�Corporations�Act:�

Corporate Performance Measures

								ST change in	Shareholder
				Proft/ (loss) after		Change in	Total Dividend	Value over 1-year value (SP increase + Dividends)
FY	End Date		Revenue	Tax	Share Price	Share Price	per Share3	Amount	%
30	June2022	$148,345,521		$15,694,168	$0.505	$0.130	$0.024	$0.154	41%
30	June2021	$105,743,623		$3,962,998	$0.375	$0.060	$0.018	$0.078	25%
30	June2020		$81,681,600	$3,013,023	$0.315	$0.015	$0.010	$0.025	8%
30	June2019		$68,858,910	$4,948,715	$0.300	$0.010	$0.015	$0.025	9%
30	June20181		$15,478,995	$10,510,658	$0.290	$0.170	Nil	$0.170	142%
30	June2017		$0	$(613,395)	$0.120	$(0.06)	Nil	$(0.06)	(33%)
30	June20162		$0	$8,468,607	$0.180	n/a	Nil	n/a	n/a

1��The�above�30�June�2018�represents�three-months�consolidated�result�since�Acrow’s�acquisition�of�the�Acrow�Holdings�Group�from�April�18� to�June�2018.
2��The�Company�was�not�listed�between�July�2013�to�April�2016�and�hence�no�further�historical�results�provided. 3��Dividends�paid�are�the�cash�amount�(post�franking).

7.2 Links Between Performance and Reward Including STI and LTVR Determinations

The�remuneration�of�executive�KMP�is�intended�to�be� composed�of�three�parts�as�outlined�earlier,�being:

Fixed�Package,�which�is�not�intended�to�vary�with� performance,�but�which�tends�to�increase�as�the�scale� of�the�business�increases�(i.e.�following success),
STI�which�is�intended�to�vary�with�indicators�of�annual� Company�and�individual�performance,�and
LTVR�which�is�also�intended�to�deliver�a�variable� reward�based�on�long-term�measures�of� Company performance.

If�STI�is�achieved,�it�is�paid�after�the�end�of�the�financial� period�it�related�to.�This�level�of�potential�award�was� considered�appropriate�under�the�STI�process�as�it�stood� at�the�time,�and�strongly�linked�to�performance.

Following�the�end�of�FY2022,�reports�on�the�Company’s� activities�during�the�year�were�prepared�for�the� Board.�The�Board�then�assessed�the�extent�to�which� expectations�had�been�met�or�exceeded�in�relation�to� the�Company�and�each�role,�to�calculate�the�total�award� payable.�This�included�assessed�NPAT,�underlying� EBITDA�and�EPS�growth.�

During�the�reporting�period,�grants�of�equity�were�made� in�relation�to�the�LTVR�scheme�as�part�of�remuneration� for�FY2022�but�did�not�vest�due�to�the�presence�of�the�

long-term�measurement�period�and�vesting�conditions� that�are�yet�to�be�completed/assessed.�

7.3 Links Between Company Strategy and Remuneration

The�Company�intends�to�attract�the�superior�talent� required�to�successfully�implement�the�Company’s� strategies�at�a�reasonable�and�appropriately�variable� cost by:

positioning�Fixed�Packages�(the�fixed�element)� around�relevant�market�data�benchmarks�when�they� are�undertaken,�and
supplementing�the�Fixed�Package�with�at-risk� remuneration and incentives that motivate executive focus�on:
–�short�to�mid-term�objectives�linked�to�the�strategy� via annual performance assessments, and
–�long�term�value�creation�for�shareholders�by� linking�a�material�component�of�remuneration�to� those factors that shareholders have expressed should�be�the�long-term�focus�of�executives�and� the�Board,�such�as�share�price�appreciation.

To�the�extent�appropriate,�the�Company�links� strategic implementation and measures of success of�the�strategy, directly�to�incentives�in�the�way�that� performance�is�assessed.

Remuneration Report – Audited for the year ending 30 June 2022

Name Instrument Number Held at 1 July 2021 Granted FY22 Forfeited Vested and Exercised Vested and Remaining Unexercised Purchase/ (Disposal) Others Number held at 30 June 2022 Number Date Granted Number Number Number Number Number Number Number	Steven Boland EscrowedShares – – – – – – – – – LoanShares 510,000 – – – – – – – 510,000 Options – – – – – – – – – Performance Rights 2,204,000 – – (606,100) (495,900) – – – 1,102,000 Unrestricted Shares* 3,551,326 – – – 495,900 – 379,980 97,356 4,524,562	AndrewCrowther EscrowedShares – – – – – – – – – LoanShares – – – – – – – – – Options 1,200,000 – – – – 600,000 – – 1,200,000 Performance Rights 1,100,000 01-Jun-22 845,090 (302,500) (247,500) – – – 1,395,090 Unrestricted Shares – – – – 247,500 – – 13,074 260,574	MargaretProkop (resigned31 December2021) EscrowedShares – – – – – – – – – LoanShares – – – – – – – – – Options – – – – – – – – – Performance Rights – – – – – – – – – Unrestricted Shares 11,281,287 – – – – – – 595,965 11,877,252	TOTALS 19,846,613 845,090 (908,600) – 600,000 379,980 706,395 20,869,478

Name Instrument Number Held at 1 July 2021 Granted FY22 Forfeited Vested and Exercised Vested and Remaining Unexercised Purchase/ (Disposal) Others Number held at 30 June 2022 Number Date Granted Number Number Number Number Number Number Number	PeterLancken EscrowedShares – – – – – – – – – LoanShares 525,000 – – – – – – – 525,000 Options – – – – – – – – – Performance Rights – – – – – – – – – Unrestricted Shares 11,112,493 – – – – – – – 11,112,493	Gregg Taylor (resigned22 November2021) EscrowedShares – – – – – – – – – LoanShares 90,000 – – – – – – – 90,000 Options 200,000 – – – – – – – 200,000 Performance Rights – – – – – – – – – Unrestricted Shares 753,464 – – – – – – – 753,464	DavidMoffat EscrowedShares – – – – – – – – – LoanShares – – – – – – – – – Options – – – – – – – – – Performance Rights – – – – – – – – – Unrestricted Shares 416,208 – – – – – – – 416,208	MelanieAllibon (appointed 1 September 2021) EscrowedShares – – – – – – – – – LoanShares – – – – – – – – – Options – – – – – – – – – Performance Rights – – – – – – – – – Unrestricted Shares – – – – – – 200,000 – 200,000

Remuneration Report – Audited for the year ending 30 June 2022

Name Instrument Number Held at 1 July 2021 Granted FY22 Forfeited Vested and Exercised Vested and Remaining Unexercised Purchase/ (Disposal) Others Number held at 30 June 2022 Number Date Granted Number Number Number Number Number Number Number	LaurieLefcourt (appointed 1 October2021) EscrowedShares – – – – – – – – – LoanShares – – – – – – – – – Options – – – – – – – – – Performance Rights – – – – – – – – – Unrestricted Shares – – – – – – 10,000 – 10,000	TOTALS 13,097,165 – – – – – 210,000 – 13,307,165	8.2 Value of equities granted as remuneration Executives Onlyselectedemployeeshavebeengrantedperformancerightsunderthelong-termvariableremuneration(LTVR)planduringtheyearwhichwerevaluedatcostsas showninthebelowtable. 2022 Equity Grants Type Grant Date Expiry Date Fair Value per Unit Number of Units Total Value at Grant Value Expensed in Previous Years Value Expensed in FY22 Max Value to be Expensed in Future Years Min Value to be Expensed in Future Years Name Role	Steven Boland Executive Directorand ChiefExecutive Offcer LoanShares 27-Mar-18 27-Mar-23 0.1071 510,000 $54,621 $54,621 – – – Performance Rights 30-Nov-20 31-Jul-35 0.2321 275,500 $63,944 $30,554 $33,390 – – 30-Nov-20 31-Jul-35 0.2226 826,500 $183,979 $87,910 $96,069 – – 30-Nov-20 31-Jul-35 0.2352 275,500 $64,798 $64,798 ($64,798) – – 30-Nov-20 31-Jul-35 0.2181 826,500 $180,260 $180,260 ($72,104) – –

2022 Equity Grants Type Grant Date Expiry Date Fair Value per Unit Number of Units Total Value at Grant Value Expensed in Previous Years Value Expensed in FY22 Max Value to be Expensed in Future Years Min Value to be Expensed in Future Years Name Role	Andrew Crowther ChiefFinancial Offcer Options 16-Jul-19 16-Jul-24 0.0361 300,000 $10,843 $10,843 – – – 16-Jul-19 16-Jul-24 0.0561 300,000 $16,816 $16,447 $369 – – 16-Jul-19 16-Jul-24 0.0710 300,000 $21,301 $13,896 $7,094 $311 $311 16-Jul-19 16-Jul-24 0.0826 300,000 $24,782 $12,128 $6,191 $6,463 $6,463 Performance Rights 31-Jul-20 31-Jul-35 0.1727 137,500 $23,746 $11,347 $12,399 – – 31-Jul-20 31-Jul-35 0.1696 412,500 $69,960 $33,429 $36,531 – – 31-Jul-20 31-Jul-35 0.1744 137,500 $23,980 $23,980 ($23,980) – – 31-Jul-20 31-Jul-35 0.1668 412,500 $68,805 $68,805 ($27,522) – – Performance Rights 01-Jun-22 30-Jun-37 0.4289 209,332 $89,788 – $6,615 $83,173 $83,173 01-Jun-22 30-Jun-37 0.4516 209,332 $94,534 – $6,950 $87,584 – 01-Jun-22 30-Jun-37 0.3801 213,213 $81,034 – $3,092 $77,942 $77,942 01-Jun-22 30-Jun-37 0.4293 213,213 $91,542 – $3,497 $88,045 –	TOTALS 5,859,090 $1,164,733 $609,018 $23,793 $343,518 $167,889

Remuneration Report – Audited for the year ending 30 June 2022

2021 Equity Grants Type Grant Date Expiry Date Fair Value per Unit Number of Units Total Value at Grant Value Expensed in Previous Years Value Expensed in FY21 Max Value to be Expensed in Future Years Min Value to be Expensed in Future Years Name Role	Steven Boland Executive Directorand ChiefExecutive Offcer LoanShares 27-Mar-18 27-Mar-23 0.1071 510,000 $54,621 $54,621 – – – Performance Rights 30-Nov-20 31-Jul-35 0.2321 275,500 $63,944 – $30,554 $33,390 $33,390 30-Nov-20 31-Jul-35 0.2226 826,500 $183,979 – $87,910 $96,069 – 30-Nov-20 31-Jul-35 0.2352 275,500 $64,798 – $64,798 – – 30-Nov-20 31-Jul-35 0.2181 826,500 $180,260 – $180,260 – –	Andrew Crowther ChiefFinancial Offcer Options 16-Jul-19 16-Jul-24 0.0361 300,000 $10,843 $10,369 $474 – – 16-Jul-19 16-Jul-24 0.0561 300,000 $16,816 $8,051 $8,396 $369 $369 16-Jul-19 16-Jul-24 0.0710 300,000 $21,301 $6,802 $7,094 $7,405 $7,405 16-Jul-19 16-Jul-24 0.0826 300,000 $24,782 $5,937 $6,191 $12,654 $12,654 Performance Rights 31-Jul-20 31-Jul-35 0.1727 137,500 $23,746 – $11,347 $12,399 $12,399 31-Jul-20 31-Jul-35 0.1696 412,500 $69,960 – $33,429 $36,531 – 31-Jul-20 31-Jul-35 0.1744 137,500 $23,980 – $23,980 – – 31-Jul-20 31-Jul-35 0.1668 412,500 $68,805 – $68,805 – –	TOTALS 5,014,000 $807,835 $85,780 $523,238 $198,817 $66,217

2022 Equity Grants Type Grant Date Expiry Date Fair Value per Unit Number of Units Total Value at Grant Value Expensed in Previous Years Value Expensed in FY22 Max Value to be Expensed in Future Years Min Value to be Expensed in Future Years Name Role	PeterLancken Independent Non-executive Chairman LoanShares 27-Mar-18 27-Mar-23 0.1071 525,000 $56,228 $56,228 – – –	Gregg Taylor (resigned 22 November 2021) Independent Non-executive Director LoanShares 27-Mar-18 27-Mar-23 0.1071 90,000 $9,639 $9,639 – – – Options 13-Dec-17 13-Dec-22 0.0874 200,000 $17,485 $17,485 – – –	TOTALS 815,000 $83,352 $83,352 – – –	NoNEDhavebeengrantedoptionsinFY2021. 2021 Equity Grants Type Grant Date Expiry Date Fair Value per Unit Number of Units Total Value at Grant Value Expensed in Previous Years Value Expensed in FY21 Max Value to be Expensed in Future Years Min Value to be Expensed in Future Years Name Role	PeterLancken Independent Non-executive Chairman LoanShares 27-Mar-18 27-Mar-23 0.1071 525,000 $56,228 $56,228 – – – Options 27-Mar-18 27-Mar-21 0.0805 350,000 $28,175 $28,175 – – – Performance Rights 27-Mar-18 27-Mar-21 0.2000 2,625,000 $525,000 $525,000 – – –	Gregg Taylor Independent Non-executive Director LoanShares 27-Mar-18 27-Mar-23 0.1071 90,000 $9,639 $9,639 – – – Options 13-Dec-17 13-Dec-20 0.0708 200,000 $14,169 $14,169 – – – Options 13-Dec-17 13-Dec-22 0.0874 200,000 $17,485 $17,485 – – – Options 27-Mar-18 27-Mar-21 0.0805 59,997 $4,830 $4,830 – – – Performance Rights 27-Mar-18 27-Mar-21 0.2000 450,000 $90,000 $90,000 – – –

Remuneration Report – Audited for the year ending 30 June 2022

2021 Equity Grants Type Grant Date Expiry Date Fair Value per Unit Number of Units Total Value at Grant Value Expensed in Previous Years Value Expensed in FY21 Max Value to be Expensed in Future Years Min Value to be Expensed in Future Years Name Role	JoshuaMay (resigned 9 October2021) Independent Non-executive Director LoanShares 27-Mar-18 27-Mar-23 0.1071 450,000 $48,195 $48,195 – – – Options 27-Mar-18 27-Mar-21 0.0805 300,000 $24,150 $24,150 – – – Performance Rights 27-Mar-18 27-Mar-21 0.2000 2,250,000 $450,000 $450,000 – – –	TOTALS 7,499,997 $1,267,871 $1,267,871 – – –	9 NED Fee Policy Rates for FY2022 and FY2023, and Fee Limit TheRemunerationandNominationsCommitteetookadvicefromanexternalremunerationconsultantthatwasnottheauditor,andtheseadjustmentshavebeen implementedtoensurewecontinuetoattractthehighesttalentintheDirectorpool. ThetotalannualfeeforFY2022was$471,000whichremainsundertheannualfeeslimit(AFLorfeepool)of$500,000whichwasapprovedbyshareholdersaspartof theconstitutionoftheCompanysincere-listinginApril2018 ThefollowingtableoutlinestheNEDfeepolicyratesthatwereapplicableforthe2022year. Director Directors Fees/Executive Remuneration	Chairperson $136,000 Other $80,000 ChairofAudit&RiskCommittee Additional $10,000 ChairofRemunerationCommittee Additional $10,000

Short-Term Sub-total Post employ- ment Other long term Share-based payments Total % performance based Name Role Salary STI Non-cash Rights Options	Steven Boland Executive Directorand ChiefExecutive Offcer $529,951 $276,760 $97,072 $903,783 $23,568 $67,404 ($7,443) – $987,312 27%	Andrew Crowther ChiefFinancial Offcer $305,000 $93,926 – $398,926 $22,818 $28,905 $17,582 $13,653 $481,884 26%	Margaret Prokop (resigned 31 December 2021) Executive Director $79,922 – $1,584 $81,506 $3,424 – – – $84,930 –	Total KMP $914,873 $370,686 $98,656 $1,384,215 $49,810 $96,309 $10,139 $13,653 $1,554,126	STIof$370,686isforFY2022,payableinFY2023.

Remuneration Report – Audited for the year ending 30 June 2022

Short-Term Sub-total Post employ- ment Other long term Share-based payments Total % performance based Name Role Salary STI Non-cash Rights Options	Steven Boland Executive Directorand ChiefExecutive Offcer $529,951 $275,822 $243,247 $1,049,020 $21,694 $107,997 $363,521 – $1,542,233 41%	Andrew Crowther ChiefFinancial Offcer $300,000 $53,350 $856 $354,206 $21,694 $27,814 $137,560 $22,156 $563,430 38%	Margaret Prokop Executive Director $205,427 – $7,749 $213,176 $19,515 $47,952 – – $280,643 –	Total KMP $1,035,378 $329,172 $251,852 $1,616,402 $62,903 $183,764 $501,081 $22,156 $2,386,305	STIof$329,172wasforFY2021,paidinFY2022. 10.2 NED Remuneration Remunerationreceivedbynon-executivedirectorsinFY2022andFY2021aredisclosedbelow: FY2022 Short-Term Share-based payments Total % performance based Name Role Salary Rights Options	PeterLancken Chairman $135,993 – – $135,993 – GreggTaylor(resigned22November2021) IndependentNED $37,500 – – $37,500 – DavidMoffat IndependentNED $84,583 – – $84,583 – MelanieAllibon(appointed1September2021) IndependentNED $70,317 – – $70,317 – LaurieLefcourt(appointed1October2021) IndependentNED $65,833 – – $65,833 –	Total NED $394,226 – – $394,226

Short-Term Share-based payments Total % performance based Name Role Salary Rights Options	PeterLancken Chairman $109,996 – – $109,996 – Gregg Taylor IndependentNED $70,000 – – $70,000 – JoshuaMay(resigned6Oct2020) IndependentNED $18,561 – – $18,561 – DavidMoffat IndependentNED $70,000 – – $70,000 –	Total NED $268,557 – – $268,557	11 Employment Terms for Key Management Personnel 11.1 Service Agreements AsummaryofcontracttermsinrelationtoexecutiveKMPispresentedbelow: Period of Notice Termination Payments Name Position Held at Close of FY2022 Employing Company Duration of Contract From Company From KMP	Steven Boland ExecutiveDirectorand ChiefExecutiveOffcer AcrowFormworkand ConstructionServicesLimited Open-ended 6months 6months Upto6 months' Total Remuneration*	AndrewCrowther ChiefFinancialOffcer AcrowFormworkand ConstructionServicesLimited Open-ended 6months 6months Upto6 months' Total Remuneration*	MargaretProkop(resigned 31December2021) ExecutiveDirector AcrowFormworkand ConstructionServicesLimited Open-ended 6months 6months Upto6 months' Total Remuneration*	*Thetreatmentofincentivesinthecaseofterminationisaddressedinseparatesectionsofthisreportthatgivedetailsofincentivedesign. OnappointmenttotheBoard,allnon-executivedirectorsenterintoaserviceagreementwiththeCompanyintheformofaletterofappointment.Thelettersummarises theBoardpoliciesandterms,includingcompensationrelevanttotheoffceofthedirector.Nocontractsapplytotheappointmentofnon-executiveKMP.

Remuneration Report – Audited for the year ending 30 June 2022

12 Other Remuneration Related Matters

The�following�outlines�other�remuneration�related�matters�that�may�be�of�interest�to�stakeholders,�in�the�interests�of� transparency�and�disclosure:

Other�than�in�the�case�of�grants�of�Loan�Funded�Shares,�there�were�no�loans�to�Directors�or�other�KMP�at�any�time� during the reporting period, and
Other�transactions�with�KMP:

As�with�the�previous�year,�the�Company�leases�a�number�of�industrial�and�commercial�properties�from� Margaret�Prokop’s�personal�companies�(MRP�Property,�MRP�Property�QLD�&�MRP�Superannuation)�through� the�Natform�subsidiaries.�Rental�and�related�out-going�payments�to�these�companies�amounted�to�$1,057,924� (2021: $852,581).

13 External Remuneration Consultant Advice

During�the�reporting�period,�the�Board�engaged�external�remuneration�consultants�to�provide�KMP�remuneration� recommendations�relating�to�remuneration�post�the�date�of�this�report�including�the�long-term�variable�remuneration� referred�to�in�subsequent�events�in�the�Directors�Report.

The�Board�reviewed�the�recommendations�from�the�external�remuneration�advisor�directly�and�independent� of�executive�management�and�are�satisfied�the�recommendations�were�made�free�of�undue�influence�of�the� relevant KMP’s.

The�Board�has�adopted�a�policy�to�govern�any�such�future�engagements,�the�details�of�which�will�be�disclosed�in�future� Remuneration�Reports�should�they�arise.

End�of�audited�Remunerations�Report.

Financial Statements for�the�year�ending�30�June�2022

Statement of Profit or Loss and other Comprehensive Income

for�the�year�ended�30�June�2022

In dollars	Note	2022	2021
Continuing operations
Revenue	4	140,826,918	94,608,887
Other income	5	4,955,787	6,552,430
Personnel expenses		(51,875,934)	(36,585,402)
Sub-contractlabourcosts		(18,039,520)	(16,646,962)
Inventorypurchased,netofchangesinfnishedgoods		(31,642,371)	(18,276,344)
Depreciation		(13,070,352)	(11,563,598)
ITandtelecommunicationexpenses		(1,641,245)	(1,542,961)
Freightcosts		(1,975,256)	(1,664,296)
Insuranceexpenses		(1,090,449)	(813,199)
Gain on fair value of derivatives		–	350,000
ContingentconsiderationrelatedtoUni-spanacquisition		–	(148,264)
Other expenses	6	(5,278,112)	(4,822,433)
Proft before fnance costs and income tax		21,169,466	9,447,858
Financecosts	7	(3,513,116)	(3,305,705)
Proft before income tax		17,656,350	6,142,153
Incometaxexpense	8	(1,962,182)	(2,179,155)
Proft from continuing operations		15,694,168	3,962,998
Other comprehensive income
Items that may be reclassifed to proft / (loss)
Foreignoperations–foreigncurrencytranslationdifferences		1,431	(1,407)
Total comprehensive income for the year		15,695,599	3,961,591
Earnings per share from continuing operations
BasicEPS(centspershare)	24	6.32	1.82
DilutedEPS(centspershare)	24	6.06	1.77

The�above�statement�should�be�read�in�conjunction�with�the�accompanying�notes.

Financial Statements for the year ending 30 June 2022

Statement of Financial Position

as�at�30�June�2022

In dollars	Note	2022	2021
Current assets
Cashandcashequivalents	9	3,010,433	1,754,622
Tradeandotherreceivables	10	34,362,867	24,611,736
Inventories	11	14,872,186	8,958,554
Contractassets	12	111,927	775,168
Prepayments and other assets	12	5,075,832	3,618,377
Assets held for sale	13	72,579	66,507
Total current assets		57,505,824	39,784,964
Non-current assets
Property, plant and equipment	14	95,490,436	83,008,854
Right-of-useleaseassets	15	24,478,720	28,808,936
Intangibleassets	16	7,428,704	7,428,704
Total non-current assets		127,397,860	119,246,494
Total assets		184,903,684	159,031,458
Current liabilities
Bankoverdraft	9	3,001,005	1,865,938
Tradepayables	17	21,484,027	25,122,155
Otherpayables	17	–	3,486,289
Employeebenefts	18	6,159,454	4,639,524
Leaseliabilities	15	4,964,215	4,645,552
Loansandborrowings	19	17,001,678	7,898,384
Currenttaxliabilities	21	1,869,031	310,331
Liabilitiesassociatedwithassetsheldforsale	13	67,063	61,453
Total current liabilities		54,546,473	48,029,626
Non-current liabilities
Employeebenefts	18	444,988	611,541
Leaseliabilities	15	23,285,254	27,396,387
Loansandborrowings	19	15,848,299	14,440,464
Provisions	20	469,274	469,274
Deferredincometaxliability	21	6,990,415	6,596,723
Total non-current liabilities		47,038,230	49,514,389
Total liabilities		101,584,703	97,544,015
Net assets		83,318,981	61,487,443
Equity
Issuedcapital		58,310,046	46,703,384
Reserves		3,059,423	3,026,437
Retained earnings		21,949,512	11,757,622
Total equity		83,318,981	61,487,443

The�above�statement�should�be�read�in�conjunction�with�the�accompanying�notes.

Statement of changes in equity

for�the�year�ended�30�June�2022

		Share-
		based	Foreign
		option	currency
	Share	payments	translation	Retained
In dollars	capital	reserve	reserve	earnings	Total equity
Balance at 30 June 2020	45,674,176	858,546	55,718	11,706,794	58,295,234
Total comprehensive income for the period
Proftfortheyear	–	–	–	3,962,998	3,962,998
Other comprehensive income	–	–	(1,407)	–	(1,407)
Total comprehensive income	–	–	(1,407)	3,962,998	3,961,591
Transactions with owners of the company
Dividendspaidtoshareholders	–	–	–	(3,912,170)	(3,912,170)
Shares issued under dividend reinvestment
plan(DRP)	766,913	–	–	–	766,913
Equitysettledsharebasepayments	–	2,245,520	–	–	2,245,520
Options exercised	262,295	(131,940)	–	–	130,355
Total transactions with owners of
the company	1,029,208	2,113,580	–	(3,912,170)	(769,382)
Balance at 30 June 2021	46,703,384	2,972,126	54,311	11,757,622	61,487,443
Total comprehensive income for the period
Proftfortheyear	–	–	–	15,694,168	15,694,168
Other comprehensive income	–	–	1,431	–	1,431
Total comprehensive income	–	–	1,431	15,694,168	15,695,599
Transactions with owners of the company
Shares issued net of transaction costs	9,897,173	–	–	–	9,897,173
Options & Performance Rights forfeited,
writtenbacktoP&L	–	(409,120)	–	–	(409,120)
Options & Performance Rights failed to
meetmarketcondition	–	(398,910)	–	398,910	–
Dividendspaidtoshareholders	–	–	–	(5,901,188)	(5,901,188)
Shares issued under dividend reinvestment
plan("DRP"),netofcosts	951,671	–	–	–	951,671
Equitysettledsharebasepayments		1,573,788	–	–	1,573,788
Transfer of option reserves to share capital	734,203	(734,203)	–	–	–
Proceeds from exercise of options,
net of costs	23,615	–	–	–	23,615
Total transactions with owners of
the company	11,606,662	31,555	–	(5,502,278)	6,135,939
Balance at 30 June 2022	58,310,046	3,003,681	55,742	21,949,512	83,318,981

The�above�statement�should�be�read�in�conjunction�with�the�accompanying�notes.

Financial Statements for the year ending 30 June 2022

Statement of Cash Flows

for�the�year�ended�30�June�2022

In dollars	Note	2022	2021
Cash fows from operating activities
Receipts from customers		88,716,570	46,116,027
Receipts on lease revenue		54,374,672	46,429,610
Payments to suppliers and employees		(131,718,641)	(79,665,777)
Incometaxpaid	21	(9,790)	(556,302)
Net cash infow from operating activities		11,362,811	12,323,558
Cash fows from investing activities
Proceeds from disposal of property, plant and equipment	5	7,518,603	11,134,735
Purchase of property, plant and equipment	14	(22,378,490)	(17,409,883)
Deferredpaymentonacquisitions	17	(3,582,656)	(3,567,944)
Net cash outfow from investing activities		(18,442,543)	(9,843,092)
Cash fows from fnance activities
Proceeds from issue of shares		10,500,000	–
Capitalraisingcosts		(602,826)	–
Proceeds from exercise of options, net of costs		16,525	130,355
Proceedsfromborrowings		28,528,971	6,793,284
Repaymentofborrowings		(18,017,843)	(6,272,932)
Repaymentofleaseliabilities	15	(5,145,257)	(4,198,952)
DividendspaidnetofDRP		(4,942,427)	(3,145,257)
Financecostspaid		(3,136,668)	(3,136,790)
Net cash infow/(outfow) from fnancing activities		7,200,475	(9,830,292)
Net increase/(decrease) in cash and cash equivalents		120,743	(7,349,826)
Cashandcashequivalentsasat1July2021		(111,316)	7,238,511
Effectofexchangeratefluctuationsoncashheld		1	(1)
Cash and cash equivalents at the end of the year		9,428	(111,316)

The�above�statement�should�be�read�in�conjunction�with�the�accompanying�notes.

Notes to the Consolidated

Financial Statements for�the�year�ending�30�June�2022

1	Reporting entity	53
2	Basis of preparation	53
3	Signifcant accounting policies	54
4	Revenue	61
5	Other income	62
6	Other expenses	62
7	Finance costs	62
8	Income tax expense	63
9	Cash and cash equivalents	63
10	Trade and other receivables	64
11	Inventories	64
12	Prepayments and other assets	65
13	Assets and liabilities held for sale	65
14	Property, plant and equipment	65
15	Leases	66
16	Intangible assets	68
17	Trade and other payables	69
18	Employee benefts	70
19	Loans and borrowings	70
20	Provisions	71
21	Deferred income tax liability and
	tax liability	72
22	Issued capital	73
23	Capital management	74
24	Earnings per share	74
25	Capital commitments	75
26	Reconciliation of cash fows from
	operating activities	76
27	Remuneration of auditors	77
28	Key management personnel and
	related parties	77
29	Share-based payments	78
30	Financial risk management	80
31	Group entities	84
32	Operating segments	84
33	Parent entity disclosures	85
34	Deed of cross guarantee	85
35	Subsequent events	88

1. Reporting entity

Acrow�Formwork�and�Construction�Services� Limited�(Acrow�or�the�Group)�is�a�limited�company� incorporated�in�Australia�and�whose�shares�are�traded� on�the�Australian�Securities�Exchange�under�the�issuer� code “ACF”.�

The�consolidated�financial�statements�of�Acrow�for�the� year�ended�30�June�2022�comprise�of�the�Company�and� its�controlled�entities�(the�Group).�

The�Group�is�a�for-profit�entity�and�is�primarily�involved�in� the�hire�and�sale�of�falsework,�formwork,�scaffolding�and� screen�equipment,�and�other�construction�services.�

Acrow’s�Annual�Reports�for�prior�reporting�periods�are� available�upon�request�from�the�Group’s�registered�office� located�at�Level�5,�126�Phillip�Street,�Sydney�NSW�2000,� Australia�or�at�www.acrow.com.au.

2. Basis of preparation

(a) Basis of accounting

The�consolidated�financial�statements�are�general� purpose�financial�statements�which�have�been�prepared� in�accordance�with�Australian�Accounting�Standards� (AASBs)�adopted�by�the�Australian�Accounting�Standards� Board�(AASB)�and�the�Corporations�Act�2001.�

The�consolidated�financial�statements�comply�with� International�Financial�Reporting�Standards�(IFRS)� adopted�by�the�International�Accounting�Standards�Board� (IASB)�and�were�authorised�for�issue�by�the�Board�of� Directors�on�27�September�2022.

Details�of�the�Group’s�significant�accounting�policies�are� included�in�note�3.

(b) Basis of measurement

The�consolidated�financial�statements�have�been� prepared�on�accrual�basis�and�are�based�on�historical� costs,�modified�where�applicable�by�the�measurement�at� fair�value.

(c) Functional and presentation currency

The�consolidated�financial�statements�are� presented�in�Australian�dollars,�which�is�the�Group’s� functional currency.�

(d) Use of estimates and judgements

The�preparation�of�consolidated�financial�statements�in� conformity�with�AASBs�requires�management�to�make� judgements,�estimates�and�assumptions�that�affect� the application of accounting policies and the reported amounts�of�assets,�liabilities,�income�and�expenses.� Actual�results�may�differ�from�these�estimates.�

Estimates�and�underlying�assumptions�are�reviewed�on� an�ongoing�basis.�Revisions�to�accounting�estimates�

Notes to the Consolidated Financial Statements for the year ending 30 June 2022

2. Basis of preparation (continued)

are�recognised�in�the�period�in�which�the�estimates�are� revised�and�in�any�future�periods�affected.�

In�particular,�information�about�significant�areas�of� estimations,�uncertainties�and�critical�judgements� in applying accounting policies that have the most significant�effect�on�the�amounts�recognised�in�the� consolidated�financial�statements�include�the�following:

Accounting estimate and judgements	Note
Revenue	4
Incometaxexpense	8
Tradeandotherreceivables	10
Inventories	11
Property,plantandequipment	14
Leases	15
Intangibleassets	16
Employeebenefts	18
Provisions	20
Deferredincometaxliability	21
Share-basedpayments	29

The�accounting�policies�below�have�been�applied� consistently to all periods presented in these consolidated�financial�statements�and�have�been�applied� consistently�by�the�Group.

(e) Comparative information

Where�applicable,�comparative�information�is� reclassified to�comply�with�disclosure�requirements�and� improve�comparability.�

(f) Rounding

Acrow�is�a�company�of�the�kind�referred�to�in�the� Australian�Securities�and�Investments�Commission� (ASIC)�Corporations�(Rounding�in�Financial/Directors’� Reports)�Instrument�2016/191,�dated�24�March�2016�and� in�accordance�with�that�Legislative�Instrument,�amounts� in�these�consolidated�financial�statements�have�been� rounded�off�to�the�nearest�dollar�and�are�shown�as�such,� unless�stated�otherwise.�

3. Significant accounting policies

(a) Basis of consolidation

The�consolidated�financial�statements�have�been� prepared�by�aggregating�the�financial�statements�of� all�the�entities�that�comprise�the�Group,�being�Acrow� Formwork�and�Construction�Services�Limited�and�its� controlled�entities.�

All�inter-entity�balances�and�transactions�are�eliminated� in�these�consolidated�financial�statements.

(i) Business combinations

Business�combinations�are�accounted�for�using�the� acquisition�method�as�at�the�acquisition�date,�which�is� the�date�on�which�control�is�transferred�to�the�Group.�

Control�is�the�power�to�govern�the�financial�and�operating� policies�of�an�entity�so�as�to�obtain�benefits�from�its� activities.�In�assessing�control,�the�Group�takes�into� consideration potential voting rights that currently are exercisable.

The�Group�measures�goodwill�at�the�acquisition�date�as:

the�fair�value�of�the�consideration�transferred;�plus
the�recognised�amount�of�any�non-controlling� interests�in�the�acquiree;�plus,�if�the�business� combination�is�achieved�in�stages,�the�fair�value�of� the�existing�equity�interest�in�the�acquiree;�less
the�net�recognised�amount�(generally�fair�value)�of�the� identifiable�assets�acquired�and�liabilities�assumed.

When�the�excess�is�negative,�a�bargain�purchase�gain�is� recognised�immediately�in�the�statement�of�profit�or�loss.

The consideration transferred does not include amounts related�to�the�settlement�of�pre-existing�relationships.� Such amounts are generally recognised in the statement of�profit�or�loss.

Costs�related�to�the�acquisition,�other�than�those� associated�with�the�issue�of�debt�or�equity�securities� that�the�Group�incurs�in�connection�with�a�business� combination�are�expensed�as�incurred.

Any�contingent�consideration�payable�is�recognised� at�fair�value�at�the�acquisition�date.�If�the�contingent� consideration�is�classified�as�equity,�it�is�not�remeasured,� and�settlement�is�accounted�for�within�equity,�otherwise� subsequent�changes�to�the�fair�value�of�the�contingent� consideration�are�recognised�in�the�statement�of�profit� or loss.

(ii) Subsidiaries

Subsidiaries�are�entities�controlled�by�the�Group.�The� financial�statements�of�subsidiaries�are�included�in�the� consolidated�financial�statements�from�the�date�that� control�commences�until�the�date�that�control�ceases.

(b) Foreign currency

Transactions in foreign currencies are translated to the functional currency of the Group at exchange rates at the dates�of�the�transactions.�

Monetary�assets�and�liabilities�denominated�in�foreign� currencies at the reporting date are retranslated to the functional�currency�at�the�exchange�rate�at�that�date.�

The�foreign�currency�gain�or�(loss)�on�monetary�items�is� the�difference�between�amortised�cost�in�the�functional� currency�at�the�beginning�of�the�period,�adjusted�for� effective interest and payments during the period, and the amortised cost in foreign currency translated at the exchange�rate�at�the�end�of�the�year.�

Foreign�currency�differences�arising�on�retranslation� are�recognised�in�the�statement�of�profit�or�loss,� except�for�qualifying�cash�flow�hedges�to�the�extent� the�hedge�is�effective,�which�are�recognised�in�other� comprehensive income.

(c) Financial instruments (i) Non-derivative financial assets

The�Group�initially�recognises�receivables�on�the�date� that�they�are�originated.�All�other�financial�assets� (including�assets�held�at�fair�value�through�profit�or�loss)� are�recognised�initially�on�the�trade�date�at�which�the� Group�becomes�a�party�to�the�contractual�provisions�of� the�instrument.�

The�Group�derecognises�a�financial�asset�when�the� contractual�rights�to�the�cash�flows�from�the�asset�expire,� or it transfers the rights to receive the contractual cash flows�on�the�financial�asset�in�a�transaction�in�which� substantially�all�the�risks�and�rewards�of�ownership�of�the� financial�asset�are�transferred.�Any�interest�in�transferred� financial�assets�that�is�created�or�retained�by�the�Group�is� recognised�as�a�separate�asset�or�liability.�

Financial�assets�and�liabilities�are�offset�and�the�net� amount�presented�in�the�statement�of�financial�position� when,�and�only�when,�the�Group�has�a�legal�right�to� offset the amounts and intends to either to settle on�a�net�basis�or�to�realise�the�asset�and�settle�the� liability simultaneously.

The�Group�has�the�following�non-derivative�financial� assets:�receivables�and�cash�and�cash�equivalents.�

Receivables

A�receivable�is�recognised�when�the�goods�are� collected or delivered as this is the point in time that the consideration�is�unconditional�because�only�the�passage� of�time�is�required�before�the�payment�is�due.

Receivables�are�financial�assets�with�fixed�or� determinable�payments�that�are�not�quoted�in�an� active�market.�Such�assets�are�recognised�initially� at�the�transaction�price�plus�any�directly�attributable� transaction�costs.�Subsequent�to�initial�recognition,� receivables�are�measured�at�amortised�cost�using�the� effective�interest�method,�less�any�impairment�losses.�

Cash and cash equivalents

Cash�and�cash�equivalents�comprise�cash�at�bank,�cash� on�hand�and�cash�equivalents,�net�of�bank�overdrafts.� Cash�equivalents�represent�highly�liquid�investments� which�are�readily�convertible�to�cash.

(ii) Non-derivative financial liabilities

The�Group�initially�recognises�debt�securities�issued� on�the�date�that�they�are�originated.�All�other�financial� liabilities�(including�liabilities�held�at�fair�value�through� profit�or�loss)�are�recognized�initially�on�the�trade�date� at�which�the�Group�becomes�a�party�to�the�contractual� provisions�of�the�instrument.�

The�Group�derecognizes�a�financial�liability�when�its� contractual�obligations�are�discharged�or�cancelled� or expire.

Financial�liabilities�are�recognized�initially�at�fair�value� plus�any�directly�attributable�transaction�costs.�

Subsequent�to�initial�recognition,�financial�liabilities�are� measured at amortised cost using the effective interest rate�method.

Financial�liabilities�comprise�loans�and�borrowings,�trade� and�other�payables.

Bank�overdrafts�that�are�repayable�on�demand�and�form� an�integral�part�of�the�Group’s�cash�management�are� included as a component of cash and cash equivalents for�the�purpose�of�the�statement�of�cash�flows.�

(iii) Issued capital

Ordinary shares

Ordinary�shares�are�classified�as�equity.�Incremental� costs�directly�attributable�to�the�issue�of�ordinary�shares� and share options are recognised as a deduction from equity,�net�of�any�tax�effects.�

(d) Property, plant and equipment

(i) Recognition and measurement

Items�of�property,�plant�and�equipment�are�measured�at� cost less accumulated depreciation and accumulated impairment�losses.�

Cost�includes�expenditure�that�is�directly�attributable�to� the�acquisition�of�the�asset.�The�cost�of�self-constructed� assets�includes�the�cost�of�materials�and�direct�labour,� any�other�costs�directly�attributable�to�bringing�the� assets�to�a�working�condition�for�their�intended�use,� the costs of dismantling and removing the items and�restoring�the�site�on�which�they�are�located,�and� capitalised�borrowing�costs�(see�below).�

Cost�also�may�include�transfers�from�other� comprehensive�income�of�any�gain�or�(loss)�on�qualifying� cash�flow�hedges�of�foreign�currency�purchases�of�

Notes to the Consolidated Financial Statements for the year ending 30 June 2022

3. Significant accounting policies (continued)

property,�plant�and�equipment.�Purchased�software�that� is integral to the functionality of the related equipment is capitalised�as�part�of�that�equipment.

When parts of an item of property, plant and equipment have different useful lives, they are accounted for as separate�items�(major�components)�of�property,�plant� and�equipment.

The�gains�and�(losses)�on�disposal�of�an�item�of�property,� plant�and�equipment�are�determined�by�comparing�the� proceeds�from�disposal�with�the�carrying�amount�of� property, plant and equipment and are recognised net within�other�income�or�other�expenses�in�the�statement� of�profit�or�loss.

(ii) Subsequent costs

The cost of replacing a component of an item of property, plant and equipment is recognised in the carrying amount�of�the�item�if�it�is�probable�that�the�future� economic�benefits�embodied�within�the�component� will�flow�to�the�Group,�and�its�cost�can�be�measured� reliably.�The�carrying�amount�of�the�replaced�part�is� derecognised.�The�costs�of�the�day-to-day�servicing� of property, plant and equipment are recognised in the statement�of�profit�or�loss�as�incurred.

(iii) Depreciation

Depreciation�is�based�on�the�cost�of�an�asset�less�its� residual�value.�Significant�components�of�individual� assets are assessed and if a component has a useful life that is different from the remainder of that asset, that component�is�depreciated�separately.

Depreciation�is�recognised�in�the�statement�of�profit�or� loss�on�a�straight-line�basis�over�the�estimated�useful� lives of each component of an item of property, plant and equipment.�

Right-of-use�lease�assets�are�depreciated�over�the� shorter�of�the�lease�term�and�useful�life,�on�a�straight-line� basis,�unless�it�is�reasonably�certain�that�the�Group�will� obtain�ownership�by�the�end�of�the�lease�term.�

The expected useful lives for depreciation purposes are as�follows:

■	Hireequipment	2–33years
■	Leaseholdimprovements	overtheleaseterm
■	Plantandequipment	2–20years

Depreciation�methods,�useful�lives�and�residual�values� are�reviewed�at�each�financial�year�end�and�adjusted� if appropriate.

(iv) Hire equipment loss provision

A hire equipment loss provision is recognised to cover the�expected�loss�of�equipment�on�hire.�The�provision�is� based�on�historical�experience�of�unrecoverable�losses� incurred�on�the�return�of�hire�equipment�from�customers.

(e) Intangible assets

(i) Goodwill

All�business�combinations�are�accounted�for�by�applying� the�acquisition�method.�Goodwill�represents�the� difference�between�the�cost�of�the�acquisition�and�the�fair� value�of�the�net�identifiable�assets�acquired.�Goodwill�is� stated�at�costs�less�any�accumulated�impairment�losses.

(f) Inventories

Inventories�are�measured�at�the�lower�of�cost�and�net� realisable�value.�

The�cost�of�inventories�is�based�on�the�weighted�average� cost principle, and includes expenditure incurred in acquiring the inventories, production or conversion costs and�other�costs�incurred�in�bringing�them�to�their�existing� location�and�condition.�

Net�realisable�value�is�the�estimated�selling�price�in�the� ordinary�course�of�business,�less�the�estimated�costs�of� completion�and�selling�expenses.

(g) Impairment

(i) Non-derivative financial assets

Non-derivative�financial�assets�comprise�trade�and�other� receivables�and�cash�and�cash�equivalents.�

Non-derivative�financial�instruments�excluding�financial� assets�at�fair�value�in�profit�or�loss�are�recognised�initially� at�fair�value�plus�transaction�costs.�Subsequent�to�initial� recognition,�non-derivative�financial�assets�are�measured� at�amortised�cost�less�impairment�losses.�

A�financial�asset�is�recognised�if�the�Group�becomes�a� party�to�the�contractual�provisions�of�the�asset.

Financial�assets�are�derecognised�if�the�Group’s� contractual�rights�to�the�cash�flows�from�the�financial� assets�expire�or�if�the�Group�transfers�the�financial�asset� to�another�party�without�retaining�control�or�substantially� all�risks�and�rewards�of�the�asset.�

The�Group�recognises�its�financial�assets�at� either amortised cost or fair value, depending on the�contractual�cash�flow�characteristics�of�the� financial assets.�

The�classification�of�financial�assets�that�the�Group� held�at�the�date�of�initial�application�was�based�on�the�

facts�and�circumstances�of�the�financial�assets�held�at� that date.�

Financial�assets�recognised�at�amortised�cost�are� measured using the effective interest method, net of any�impairment�loss.�Financial�assets�other�than�those� classified�as�financial�assets�recognised�at�amortised� cost�are�measured�at�fair�value�with�any�changes�in�fair� value�recognised�in�the�statement�of�profit�or�loss.

Receivables

For�trade�receivables,�the�Group�conducts�an�ongoing� assessment�of�expected�credit�losses�(ECL)�by�analysing� actual loss experience of the Group, arrears, and other inputs�such�as�exposure�or�timing.�The�assessment�is� broken�down�into�4�sectors�including�Industrial�Services,� Civil�Infrastructure,�Commercial,�and�Residential.�These� sectors are then analysed in a set of 5 stages ranging from�currently�due�receivables�to�above�90-days�due� receivables.�The�Group�also�separately�quantifies� receivables�due�from�entities�in�liquidation/default.

The�Group�provides�for�a�loss�allowance�equivalent�to�the� lifetime expected credit losses from initial recognition of those�receivables.�

Losses�are�recognised�in�the�Statement�of�Profit�or�Loss� and�Other�Comprehensive�Income�and�reflected�in�an� allowance�account�against�trade�receivables.�

When�a�subsequent�event�causes�the�amount�of� impairment loss to decrease, the decrease is reversed through�the�statement�of�Profit�or�loss�and�Other� Comprehensive�Income.

(ii) Non-financial assets

The�carrying�amounts�of�the�Group’s�non-financial� assets, other than inventories and deferred tax assets, are�reviewed�at�each�reporting�date�to�determine�whether� there is any indication of impairment, and if any such indication�exists,�then�the�asset’s�recoverable�amount� is estimated.�

For�intangible�assets,�namely�goodwill�that�have� indefinite�useful�lives�or�that�are�not�yet�available�for�use,� the�recoverable�amount�is�estimated�each�year�at�the� same�time.�

An impairment loss is recognised if the carrying amount of�an�asset�or�its�related�cash-generating�unit�(CGU)� exceeds�its�estimated�recoverable�amount.

The�recoverable�amount�of�an�asset�or�CGU�is�the�greater� of�its�value�in�use�and�its�fair�value�less�costs�to�sell.�In� assessing�value�in�use,�the�estimated�future�cash�flows� are�discounted�to�their�present�value�using�a�pre-tax� discount�rate�that�reflects�current�market�assessments� of�the�time�value�of�money�and�the�risks�specific�to� the asset.�

For�the�purpose�of�annual�impairment�testing�applicable� to�goodwill,�such�intangible�assets�that�cannot�be�tested� individually are grouped together into the smallest group of�assets�that�generates�cash�inflows�from�continuing� use�that�are�largely�independent�of�the�cash�inflows�of� other�assets�or�CGU.

Impairment�losses�are�recognised�in�the�statement�of� profit�or�loss.�

Impairment�losses�recognised�in�respect�of�CGUs�are� allocated to reduce the carrying amounts of assets in the CGU�(or�group�of�CGUs)�on�a�pro�rata�basis.�

Impairment�losses�recognised�in�prior�periods�are� assessed at each reporting date for any indications that the�loss�has�decreased�or�no�longer�exists.�

An�impairment�loss�is�reversed�if�there�has�been� a change in the estimates used to determine the recoverable�amount.�An�impairment�loss�is�reversed�only� to�the�extent�that�the�asset’s�carrying�amount�

does�not�exceed�the�carrying�amount�that�would�have� been�determined,�net�of�depreciation�or�amortisation,�if� no�impairment�loss�had�been�recognised.

(h) Employee benefits

(i) Defined contribution plans

A�defined�contribution�plan�is�a�post-employment�benefit� plan�under�which�an�entity�pays�fixed�contributions�into� a�separate�entity�and�will�have�no�legal�or�constructive� obligation�to�pay�further�amounts.�

Obligations�for�contributions�to�defined�contribution� plans�are�recognised�as�an�employee�benefit�expense�in� the�statement�of�profit�or�loss�in�the�periods�during�which� services�are�rendered�by�employees.�

Prepaid�contributions�are�recognised�as�an�asset�to� the extent that a cash refund or a reduction in future payments�is�available.�

Contributions�to�a�defined�contribution�plan�that�are�due� more�than�12�months�after�the�end�of�the�period�in�which� the employees render the service are discounted to their present�value.

(ii) Other long-term employee benefits

The�Group’s�net�obligation�in�respect�of�long-term� employee�benefits�other�than�defined�benefit�plans�is�the� amount�of�future�benefit�that�employees�have�earned�in� return for their service in the current and prior periods plus�related�on-costs.

The�benefit�is�discounted�to�determine�its�present�value,� and�the�fair�value�of�any�related�assets�is�deducted.�

Notes to the Consolidated Financial Statements for the year ending 30 June 2022

3. Significant accounting policies (continued)

The discount rate is the yield at the reporting date on high�quality�corporate�bonds�that�have�maturity�dates� approximating�the�terms�of�the�Group’s�obligations.�

The�calculation�is�performed�using�the�projected�unit� credit�method.

(iii) Termination benefits

Termination�benefits�are�recognised�as�an�expense� when�the�Group�is�demonstrably�committed,�without� realistic�possibility�of�withdrawal,�to�a�formal�detailed� plan�to�either�terminate�employment�before�the� normal retirement date, or to provide termination benefits�as�a�result�of�an�offer�made�to�encourage� voluntary redundancy.�

Termination�benefits�for�voluntary�redundancies�are� recognised as an expense if the Group has made an offer of�voluntary�redundancy,�it�is�probable�that�the�offer�will� be�accepted,�and�the�number�of�acceptances�can�be� estimated�reliably.�

If�termination�benefits�are�payable�more�than�12�months� after�the�reporting�period,�the�termination�benefits�are� discounted�to�their�present�value.

(iv) Short-term benefits

Short-term�employee�benefit�obligations�are�measured� on�an�undiscounted�basis�and�are�expensed�as�the� related�service�is�provided.�

A�liability�is�recognised�for�the�amount�expected�to�be� paid�under�short-term�cash�bonus�or�profit-sharing� plans if the Group has a present legal or constructive obligation�to�pay�this�amount�as�a�result�of�past�service� provided�by�the�employee�and�the�obligation�can�be� estimated reliably.

(v) Share-based payments

The�Group�provides�benefits�to�selected�employees�in� the�form�of�share-based�payment�transactions,�whereby� employees�render�services�in�exchange�for�options�and/ or�performance�rights�over�ordinary�shares.�

The�cost�of�the�share-based�payments�is�measured�by� reference�to�the�fair�value�at�the�date�at�which�they�are� granted�and�amortized�over�the�expected�vesting�period� with�a�corresponding�increase�in�share�capital�reserve.� If�vesting�periods�or�other�vesting�conditions�apply,�the� expense�is�allocated�over�the�vesting�period,�based�on�the� best�available�estimate�of�the�number�of�share�options� expected�to�vest.�

Non-market�vesting�conditions�are�included�in� assumptions�about�the�number�of�options�that�are� expected�to�become�exercisable.�Estimates�are� subsequently�revised�if�there�is�any�indication�that�the�

number�of�share�options�expected�to�vest�differs�from� previous�estimates.�Any�adjustment�to�cumulative� share-based�compensation�resulting�from�a�revision�is� recognised�in�the�current�period.�The�number�of�vested� options�ultimately�exercised�by�holders�does�not�impact� the�expense�recorded�in�any�period.�Upon�exercise� of share options, the proceeds received, net of any directly�attributable�transaction�costs,�are�allocated�to� share capital.

The�fair�value�of�share-based�payments�is�appraised� at�grant�date�in�accordance�with�AASB�2�Share-based� Payments.�These�are�independently�determined�using� a pricing model that considers the exercise price, the terms of the payment, the vesting and performance criteria,�the�impact�of�the�dilution,�the�non-tradeable� nature of the payment, the share price at grant date, the expected price volatility of the underlying share, the comparative�share�market�indices,�the�expected�dividend� yield�and the risk-free�interest�rate�for�the�term�of�the� share-based�payment.�

(i) Provisions

A provision is recognised if, as a result of a past event, the�Group�has�a�present�legal�or�constructive�obligation� that�can�be�estimated�reliably,�and�it�is�probable�that�an� outflow�of�economic�benefits�will�be�required�to�settle� the obligation.�

Provisions�are�determined�by�discounting�the�expected� future�cash�flows�at�a�pre-tax�rate�that�reflects�current� market�assessments�of�the�time�value�of�money�and�the� risks�specific�to�the�liability.�

The�unwinding�of�the�discount�is�recognised�as� finance cost.

(i) Restructuring

A�provision�for�restructuring�is�recognised�when�the� Group has approved a detailed and formal restructuring plan, and the restructuring either has commenced or has been�announced�publicly.�

Future�operating�losses�are�not�provided�for.

(ii) Onerous contracts

A�provision�for�onerous�contracts�is�recognised�when� the�expected�benefits�to�be�derived�by�the�Group�from�a� contract�are�lower�than�the�unavoidable�cost�of�meeting� its�obligations�under�the�contract.�

The provision is measured at the present value of the�lower�of�the�expected�cost�of�terminating�the� contract�and�the�expected�net�cost�of�continuing�with� the contract.�

Before�a�provision�is�established,�the�Group�recognises� any�impairment�loss�on�the�assets�associated�with� that contract.

(iii) Make good

A�provision�for�make�good�is�measured�at�the�present� value of the cost of restoring leased properties to their original�condition,�at�the�conclusion�of�the�lease.

(j) Revenue

Acrow�is�predominately�a�provider�of�falsework,� formwork,�scaffolding�and�screen�equipment�for�hire�or� sale�with�revenue�primarily�generated�via�dry�hire,�project� hire�or�sale.�

The company generates revenue via provision of equipment�hire,�services�and�the�sales�of�product.� Revenue generated from hire of equipment only is referred�to�as�“dry�hire”�revenue.

Project�hire�or�“wet�hire”�revenue�includes�“dry�hire”� revenue�plus�labour�services,�cartage�services,� consumable�sales�and/or�other�services�which�are� recognised�over�time�as�services�can�be�staged� progressively�as�they�are�rendered.�These�forms�of� contracts�may�vary�in�scope;�however,�all�project�hire�has� one�common�performance�obligation,�being�the�provision� of�scaffolding�structures�to�the�customer�which�includes� the�scaffolding�equipment,�the�labour�on�installation� and�dismantling,�cartage�(transport�to�and�from�the� customer)�and�any�ancillary�materials�that�are�required�to� fulfill�the�obligation.

To�determine�whether�to�recognise�revenue,�the�Group� follows�a�5-step�process:

1)��Identifying�the�contract�with�a�customer
2)��Identifying�the�performance�obligations
3)��Determining�the�transaction�price
4)��Allocating�the�transaction�price�to�the� performance obligations
5)��Recognising�revenue�when/as�performance� obligation(s)�are�satisfied.

(i) Hire of equipment

Falsework,�formwork,�scaffolding�and�screen�equipment� are�rented�to�customers�under�operating�leases�with� rental�periods�averaging�six�months�to�less�than�one�year.�

The�rental�can�be�arranged�as�dry�hire�where�only� equipment is provided to the customer and revenue is recognised�at�fixed�rates�over�the�period�of�hire;�or�as�part� of�a�project�hire�where�Acrow�supplies�labour�and�cartage� services�between�warehouse�and�building�sites.�

Revenue recognition on equipment hire commences once�falsework,�formwork,�scaffold�or�screen�equipment�

is�either�collected�by�the�customer,�delivered�to�the� customer�or�once�a�scaffolding�structure�has�been� certified�to�be�safe�and�access�granted�to�customers�or� control�otherwise�passes�to�a�customer.

Revenue�is�recognised�over�straight-line�bases�over�the� life�of�the�hire�agreements�per�AASB�16�Leases.

(ii) Labour and cartage services

Revenue�from�providing�scaffolding�labour�in�installation� and�dismantling,�and�equipment�cartage,�being�transport� to and from the customer, are recognised at one or more points�in�time�as�services�can�be�staged�progressively�as� they�are�rendered.

Revenue�is�recognised�based�on�the�actual�service� provided�to�the�end�of�the�reporting�period�because�the� customer�receives�and�uses�the�benefits�simultaneously.�

Labour�and�cartage�services�revenue�are�recognised� over�time�under�AASB�15�Revenue�from�Contracts� with Customers.

(iii) Consumable sales and other services

Revenue from sales are measured as the transaction price�net�of�returns,�trade�discounts�and�volume�rebates.

Revenue�is�recognised�when�control�of�the�goods�or� services�are�transferred�to�customers�which�is�generally� upon�delivery�to�or�collection�by�the�customer�depending� on�the�contract�with�the�customer.�

Discounts�are�recognised�as�a�reduction�in�revenue�until� management�determine�that�it�is�highly�probable�that�no� significant�reversal�of�revenue�will�occur.�

Revenue�recognition�of�consumable�sales�and�other� services�are�at�a�point�in�time�when�control�passes�which� is typically upon delivery or collection as under AASB 15 Revenue�from�Contracts�with�Customers.

(k) Finance income and finance costs

Finance�income�comprises�interest�income�on�funds� deposited.�Interest�income�is�recognised�as�it�accrues� in�the�statement�of�profit�or�loss,�using�the�effective� interest method.�

Finance�costs�comprise�interest�expenses�on�loans� and�borrowings,�lease�liabilities�and,�where�material,�the� unwinding�of�the�discount�on�provisions.�

Borrowing�costs�that�are�not�directly�attributable�to�the� acquisition, construction or production of a qualifying asset�are�recognised�in�the�statement�of�profit�or�loss� using�the�effective�interest�method.�

(l) Tax

Tax�expense�comprises�current�and�deferred�tax.� Current�and�deferred�tax�are�recognised�in�the� statement�of�profit�or�loss,�except�to�the�extent�that�it�

Notes to the Consolidated Financial Statements for the year ending 30 June 2022

3. Significant accounting policies (continued)

relates to items recognised directly in equity or in other comprehensive income.

Current�tax�is�the�expected�tax�payable�or�receivable�on� the�taxable�income�or�(loss)�for�the�year,�using�tax�rates� enacted�or�substantively�enacted�at�the�reporting�date,� and�any�adjustment�to�tax�payable�in�respect�of�previous� years.�Current�tax�payable�also�includes�any�tax�liability� arising�from�the�declaration�of�dividends.

Deferred�tax�is�recognised�in�respect�of�temporary� differences�between�the�carrying�amounts�of�assets� and�liabilities�for�financial�reporting�purposes�and�the� amounts�used�for�taxation�purposes.�Deferred�tax�is� not recognised for temporary differences on the initial recognition�of�assets�or�liabilities�in�a�transaction�that� is�not�a�business�combination�and�that�affects�neither� accounting�nor�taxable�profit�or�(loss).

Deferred�tax�is�measured�at�the�tax�rates�that�are� expected�to�be�applied�to�temporary�differences�when� they�reverse,�based�on�the�laws�that�have�been�enacted� or�substantively�enacted�by�the�reporting�date.�

Deferred�tax�assets�and�liabilities�are�offset�if�there�is�a� legally�enforceable�right�to�offset�current�tax�liabilities� and�assets,�and�they�relate�to�income�taxes�levied�by� the�same�tax�authority�on�the�same�taxable�entity,�or�on� different�tax�entities,�but�they�intend�to�settle�current�tax� liabilities�and�assets�on�a�net�basis�or�their�tax�assets� and�liabilities�will�be�realised�simultaneously.

A deferred tax asset is recognised for unused tax losses, tax�credits�and�deductible�temporary�differences,�to�the� extent�that�it�is�probable�that�future�taxable�profits�will�be� available�against�which�they�can�be�utilised.�

Deferred�tax�assets�are�reviewed�at�each�reporting�date� and�are�reduced�to�the�extent�that�it�is�no�longer�probable� that�the�related�tax�benefit�will�be�realised.

(m) Exploration and evaluation assets

Exploration�and�evaluation�expenditure�relating�to�an�area� of�interest�is�capitalised�where�exploration�rights�have� been�obtained.�

The�expenditure�is�only�carried�forward�to�the�extent�that� they�are�expected�to�be�recouped�through�successful� development�and�exploitation�or�sale�of�the�area�or�where� the exploration and evaluation activities have not reached a�stage�which�permits�a�reasonable�assessment�of�the� existence�of�economically�recoverable�reserves�and� active�exploration�operations�are�continuing.�

Expenditure�is�not�subject�to�amortisation�but�is� assessed�for�impairment�when�facts�and�circumstances� suggest that the carrying amount may exceed its recoverable�amount.

(n) Goods and services tax

Revenue, expenses and assets are recognised net of the amount�of�goods�and�services�tax�(GST),�except�where� the�amount�of�GST�incurred�is�not�recoverable�from�the� taxation�authority.�In�these�circumstances,�the�GST�is� recognised as part of the cost of acquisition of the asset or�as�part�of�the�expense.

Cash�flows�included�in�the�statement�of�cash�flows�are� on�a�gross�basis.�The�GST�components�of�cash�flows� arising�from�investing�and�financing�activities�which�are� recoverable�from�or�payable�to�the�ATO,�are�classified�as� operating�cash�flows.

(o) Lease accounting

The Group as a lessee

The�Group�makes�the�use�of�leasing�arrangements� principally�for�the�provision�of�the�warehouse/ office�space,�forklift�equipment,�motor�vehicles�and� printers.�The�Group�does�not�enter�into�sale�and� leaseback arrangements.�

All�the�leases�are�negotiated�on�an�individual�basis�and� contain�a�wide�variety�of�different�terms�and�conditions� such�as�purchase�options�and�escalation�clauses.�The� Group�assesses�whether�a�contract�is�or�contains�a� lease�at�inception�of�the�contract.�A�lease�conveys�the� right�to�direct�the�use�and�obtain�substantially�all�of�the� economic�benefits�of�an�identified�asset�for�a�period�of� time�in�exchange�for�consideration.

Only�motor�vehicle�lease�contracts�contain�both� lease�and�non-lease�components.�These�non-lease� components�are�usually�associated�with�servicing�and� repair�contracts.�

Measurement and recognition of leases as a lessee

At lease commencement date, the Group recognises a right-of-use�asset�and�a�lease�liability�in�its�consolidated� statement�of�financial�position.�The�right-of-use�asset� is�measured�at�cost,�which�is�made�up�of�the�initial� measurement�of�the�lease�liability,�any�initial�direct� costs�incurred�by�the�Group,�an�estimate�of�any�costs�to� dismantle and remove the asset at the end of the lease, and any lease payments made in advance of the lease commencement�date�(net�of�any�incentives�received).�

The�Group�depreciates�the�right-of-use�asset�on�a� straight-line�basis�from�the�lease�commencement�date�to� the�earlier�of�the�end�of�the�useful�life�of�the�right-of-use� asset�or�the�end�of�the�lease�term.�

The�Group�also�assesses�the�right-of-use�asset� for�impairment�when�such�indicators�exist.�At�the� commencement date, the Group measures the lease liability�at�the�present�value�of�the�lease�payments�unpaid�

at�that�date,�discounted�using�the�Group’s�incremental� borrowing�rate�because�as�the�lease�contracts�are� negotiated�with�third�parties�it�is�not�possible�to� determine�the�interest�rate�that�is�implicit�in�the�lease.�

The�incremental�borrowing�rate�is�the�estimated�rate�that� the�Group�would�have�to�pay�to�borrow�the�same�amount� over�a�similar�term,�and�with�similar�security�to�obtain�an� asset�of�equivalent�value.�

Lease�payments�included�in�the�measurement�of�the� lease�liability�are�made�up�of�fixed�payments�(including� in�substance�fixed),�variable�payments�based�on�an�index� or�rate,�amounts�expected�to�be�payable�under�a�residual� value guarantee and payments arising from options reasonably�certain�to�be�exercised.�

Subsequent�to�initial�measurement,�the�liability�will�be� reduced�by�lease�payments�that�are�allocated�between� repayments�of�principal�and�finance�costs.�The�finance� cost is the amount that produces a constant periodic rate of�interest�on�the�remaining�balance�of�the�lease�liability.�

The�lease�liability�is�reassessed�when�there�is�a�change� in�the�lease�payments.�Changes�in�lease�payments� arising from a change in the lease term or a change in the assessment of an option to purchase a leased asset.�The�revised�lease�payments�are�discounted�using� the�Group’s�incremental�borrowing�rate�at�the�date�of� reassessment�when�the�rate�implicit�in�the�lease�cannot� be�readily determined.�

The�amount�of�the�remeasurement�of�the�lease�liability�is� reflected�as�an�adjustment�to�the�carrying�amount�of�the� right-of-use�asset.�The�exception�being�when�the�carrying� amount�of�the�right-of-use�asset�has�been�reduced�to� zero�then�any�excess�is�recognised�in�profit�or�loss.�

Payments�under�leases�can�also�change�when�there�is� either�a�change�in�the�amounts�expected�to�be�paid�under� residual�value�guarantees�or�when�future�payments� change through an index or a rate used to determine those�payments,�including�changes�in�market�rental�rates� following�a�market�rent�review.�

The�remeasurement�of�the�lease�liability�is�dealt�with�by�a� reduction�in�the�carrying�amount�of�the�right-of-use�asset� to reflect the full or partial termination of the lease for lease�modifications�that�reduce�the�scope�of�the�lease.� Any gain or loss relating to the partial or full termination of�the�lease�is�recognised�in�profit�or�loss.�

The�right-of-use�asset�is�adjusted�for�all�other�lease� modifications.�The�Group�has�elected�to�account�for�lowvalue�assets�using�the�practical�expedients.�These�leases� relate�to�mobile�IT�devices�such�as�computer�monitors,� laptops�and�mobile�telephones.�Instead�of�recognising� a�right-of-use�asset�and�lease�liability,�the�payments�in� relation�to�these�are�recognised�as�an�expense�in�profit�or� loss�on�a�straight-line�basis�over�the�lease�term.

The Group as a lessor

As�a�lessor�the�Group�classifies�its�leases�as�either� operating�or�finance�leases.�A�lease�is�classified�as�a� finance�lease�if�it�transfers�substantially�all�the�risks�and� rewards�incidental�to�ownership�of�the�underlying�asset� and�classified�as�an�operating�lease�if�it�does�not.

(p) New accounting standards and interpretations not yet adopted

There�were�no�new�accounting�standards,�interpretations� and�amendments�significantly�impacting�the�Group�in�the� financial�year�ended�30�June�2022.�

4. Revenue

4. Revenue
In dollars	2022	2021
Revenue from contracts with customers
Labourservicestransferredovertime	34,449,251	21,881,696
Cartageservicestransferredovertime	5,936,777	5,084,962
Consumablesalesandotherservicestransferredatapointintime	44,597,902	25,433,493
	84,983,930	52,400,151
Revenue from operating leases
Hire of equipment	55,842,988	42,208,736
	140,826,918	94,608,887

Notes to the Consolidated

Financial Statements for the year ending 30 June 2022

5. Other income

In dollars	2022	2021
Disposal of property, plant and equipment
Proceeds	7,518,603	11,134,736
Writtendownvalue	(2,562,816)	(4,582,306)
Net gain on disposal of property, plant and equipment	4,955,787	6,552,430

6. Other expenses

6. Other expenses
In dollars	2022	2021
Restructuring and due diligence expenses	(748,453)	(950,314)
Audit, tax and legal expenses	(837,125)	(730,548)
Doubtfuldebtexpense	(650,000)	(150,466)
Motor vehicle expenses	(347,101)	(390,391)
Plant & equipment operating expenses	(402,058)	(340,170)
Repair & maintenance	(339,708)	(283,715)
Travelling expenses	(419,487)	(267,598)
Utilities	(779,347)	(651,873)
Property costs	(217,698)	(155,347)
Others	(537,135)	(902,011)
	(5,278,112)	(4,822,433)

7. Finance costs

7. Finance costs
In dollars	2022	2021
Finance costs
Unwindinginterestondeferredconsideration	(33,960)	(168,915)
Interestexpenseonfnancialliabilities	(1,833,618)	(1,255,498)
Interestexpenseonleases	(1,509,802)	(1,675,195)
Borrowingcosts	(135,736)	(206,097)
Net fnance costs from continuing operations	(3,513,116)	(3,305,705)

8. Income tax expense

8. Income tax expense
In dollars	2022 2021
Currentincometaxexpense	(1,584,228) 625,040
Deferredincometaxexpense	(360,775) (2,793,780)
Under provision for income tax in prior year	(17,179) (10,415)
Income tax expense attributable to proft	(1,962,182) (2,179,155)

The�prima�facie�tax�on�profit�before�income�tax�is�reconciled�to�the�income�tax�expense�as�follows:

In dollars	2022	2021
Proft before income tax	17,656,350	6,142,153
Incometax(expense)usingtheGroup’sdomestictaxrate(30%)	(5,296,905)	(1,842,647)
Income tax effects of amounts which are not deductible / (taxable) in calculating
taxable income:
Non-deductiblelossesonoverseasentities	(288)	274
Non-deductibleshare-basedpaymentexpense	(349,400)	(673,656)
Non-deductibleacquisitionexpense	(31,644)	46,729
Non-deductibleimpairmentexpense	(17,989)	(15,656)
Othernon-deductibleexpenses	(17,209)	(60,311)
(Under)provisionforincometaxinprioryear	(17,179)	(10,415)
Utilisation of prior year tax losses not previously recognised	3,768,432	376,527
Income tax expense attributable to proft	(1,962,182)	(2,179,155)

9. Cash and cash equivalents

9. Cash and cash equivalents
In dollars	2022	2021
Cashatbank	3,010,433	1,754,622
Bankoverdraft	(3,001,005)	(1,865,938)
	9,428	(111,316)

Notes to the Consolidated

Financial Statements for the year ending 30 June 2022

10. Trade and other receivables

In dollars					2022	2021
Tradereceivables					35,821,806	25,789,926
Expectedcreditlossprovision					(1,458,939)	(1,178,190)
				34,362,867		24,611,736
Movement in the expected credit loss provision:
In dollars					2022	2021
At 1 July
Openingbalance					(1,178,190)	(1,196,940)
Expectedcreditlossrecognisedduringtheyear					(650,000)	150,000
Receivableswrittenoff/(back)duringtheyear					369,251	(131,250)
Balance at 30 June					(1,458,939)	(1,178,190)
		More than	More than	More than
	Current	30 days	60 days	90 days	Default	Total
2022
Expectedcreditlossrate	0.02%	0.30%	4.22%	15.98%	100.00%
Gross carrying amount	17,237,806	11,002,000	2,161,000	4,867,517	553,483	35,821,806
Lifetimeexpectedcreditloss	3,448	33,006	91,194	777,808	553,483	1,458,939
2021
Expectedcreditlossrate	0.07%	1.40%	11.06%	16.82%	–
Gross carrying amount	12,626,926	6,061,000	1,911,000	5,191,000	–	25,789,926
Lifetimeexpectedcreditloss	8,839	84,854	211,357	873,140	–	1,178,190

11. Inventories

In dollars	2022	2021
Finishedgoods	15,146,338	9,025,959
Provisionforslowmovingstock	(274,152)	(67,405)
	14,872,186	8,958,554

12. Contract assets, prepayments and other assets

In dollars	2022 2021
Contractassets	111,927 775,168
	111,927 775,168
Current
Otherreceivables	807,617 608,339
Prepayments	4,268,215 3,010,038
	5,075,832 3,618,377

13. Assets and liabilities held for sale

13. Assets and liabilities held for sale
In dollars	2022	2021
Assetsclassifedasheldforsale	72,579	66,507
Liabilitiesassociatedwithassetsheldforsale	67,063	61,453

Acrow�continues�to�explore�the�divestment�of�Noble�Mineral�Resources�Ghana�Ltd,�which�owns�the�Group’s�exploration� and�evaluation�assets�in�Ghana.�The�business�remains�non-core�to�the�Group,�has�an�immaterial�financial�and�limited� management�impacts.

14. Property, plant and equipment

	Land and	Plant and	Hire
In dollars	buildings	equipment	equipment	Total
Cost
Balanceat1July2020	475,989	11,528,314	82,765,705	94,770,008
Additions	–	1,595,706	15,814,177	17,409,883
Disposals	–	(52,460)	(5,829,158)	(5,881,618)
Balance at 30 June 2021	475,989	13,071,560	92,750,724	106,298,273
Cost
Balanceat1July2021	475,989	13,071,560	92,750,724	106,298,273
Additions	–	1,020,433	21,358,057	22,378,490
Disposals	–	(42,457)	(2,950,875)	(2,993,332)
Balance at 30 June 2022	475,989	14,049,536	111,157,906	125,683,431
Depreciation and impairment losses
Balanceat1July2020	354,558	10,693,801	7,683,156	18,731,515
Depreciationfortheyear	19,206	316,956	5,552,159	5,888,321
Disposals	–	(34,752)	(1,264,561)	(1,299,313)
Hireequipmentlossadjustment	–	–	(31,104)	(31,104)
Balance at 30 June 2021	373,764	10,976,005	11,939,650	23,289,419

Notes to the Consolidated

Financial Statements for the year ending 30 June 2022

14. Property, plant and equipment (continued)

	Land and	Plant and	Hire
In dollars	buildings	equipment	equipment	Total
Balanceat1July2021	373,764	10,976,005	11,939,650	23,289,419
Depreciationfortheyear	17,467	500,611	6,869,271	7,387,349
Disposals	–	(41,319)	(389,197)	(430,516)
Hireequipmentlossadjustment	–	–	(53,257)	(53,257)
Balance at 30 June 2022	391,231	11,435,297	18,366,467	30,192,995
Carrying amounts
At1July2020	121,431	834,513	75,082,549	76,038,493
At 30 June 2021	102,225	2,095,555	80,811,074	83,008,854
At1July2021	102,225	2,095,555	80,811,074	83,008,854
At 30 June 2022	84,758	2,614,239	92,791,439	95,490,436

Property, plant and equipment are at times sold prior to the end of its useful life either at the request of the customers or�due�to�loss.�“Loss�on�Hire”�revenue�are�charged�as�Other�Income�(see�note�5)�where�the�customers�are�liable.�On� acquisition�of�property�plant�and�equipment�there�is�no�intention�to�dispose�through�sale.�

15. Leases

The�Acrow�group�leases�various�properties,�forklifts,�motor�vehicles�and�printers.�Property�lease�terms�are�up�to� 10 years�and�often�include�extension�options,�forklift�lease�terms�are�up�to�7�years,�motor�vehicle�lease�terms�are�from� 1�to�3�years,�whilst�all�printers�are�for�a�5-year�lease�term.�

The�printers�form�one�master�lease�agreement�while�all�other�leases�are�negotiated�on�an�individual�basis�and�contain� a�broad�range�of�terms�and�conditions.�

Lease�agreements�do�not�impose�any�covenants,�but�leased�assets�may�not�be�used�as�security�for� borrowing purposes.�

With�the�exception�of�short-term�leases�and�leases�of�low-value�underlying�assets,�each�lease�is�reflected�in�the� consolidated�statement�of�financial�position�as�a�right-of-use�asset�and�a�lease�liability.

Right-of-use�assets�are�measured�at�cost�and�comprise:�

Any�initial�direct�costs�incurred�by�the�lessee;
An�estimate�of�restoration�or�make�good�costs;�
The�amount�of�the�initial�measurement�of�the�lease�liability;�and
Any�lease�payments�made�at�or�before�the�commencement�date,�less�any�lease�incentives�received.

Extension�options�are�only�included�in�the�lease�term�if�the�lease�is�reasonably�certain�to�be�extended.�The�assessment� is�reviewed�if�a�significant�event�or�change�in�circumstance�occurs�which�affects�this�assessment�and�that�is�within� the�control�of�the�lessee.�

Lease amounts recognised in the Statement of Financial Position:

In dollars	2022 2021
Right-of-use assets
Properties	22,218,881 26,165,469
Forkliftsandoffceequipment	1,860,910 2,145,017
Motor vehicles	398,929 498,450
Total right-of-use assets	24,478,720 28,808,936
Lease liabilities
Current	4,964,215 4,645,552
Non-current	23,285,254 27,396,387
Total lease liabilities	28,249,469 32,041,939

Additions�to�the�right-of-use�assets�during�FY�2022�were�$1,047,654�(FY�2021:�$1,671,900).�

Lease amounts recognised in the Statement of Profit or loss and Other Comprehensive Income:

In dollars	2022	2021
Depreciation charge for right-of-use assets:
Properties	4,765,763	4,843,914
Forkliftsandoffceequipment	646,144	555,296
Motor vehicles	271,098	276,066
Total depreciation charge for right-of-use assets	5,683,005	5,675,276

Lease�payments�include:�

■ Variable�lease�payments�that�are�based�on�an�index�or�rate;

■ Amounts�expected�to�be�payable�by�the�lessee�under�residual�value�guarantees;

■ The�exercise�price�of�a�purchase�option�if�Acrow�is�reasonably�certain�to�exercise�that�option;

■ Fixed�payments�(including�in-substance�fixed�payments),�less�any�lease�incentives�receivable;�and

■ Payment�of�penalties�for�terminating�the�lease,�if�the�lease�term�reflects�Acrow�exercising�that�option.

Lease�payments�are�discounted�using�the�interest�rate�implicit�in�the�lease,�if�determinable�or�at�the�Group’s� incremental�borrowing�rate.

In dollars	2022	2021
Lease amounts included in the Statement of cashfows
Leasepayments	5,145,257	4,198,952
Interestexpense(includedinfnancecosts)	1,509,802	1,675,195
Total amount paid	6,655,059	5,874,147
Expenses relating to low value asset leases	138,788	125,249

Notes to the Consolidated Financial Statements for the year ending 30 June 2022

15. Leases (continued)

Lease payments not recognised as liabilities

The�Group�has�elected�not�to�recognise�a�lease�liability�for�low�value�leases�(where�an�asset�is�valued�at�USD5,000� or�lower�per�AASB�16).�Payments�for�these�are�recognised�on�a�straight-line�basis�as�an�expense�in�the�statement�of� profit�or�loss.�

Low�value�assets�are�predominately�portable�IT�and�telecommunication�equipment.�The�undiscounted�cash�flows�on� the�remaining�lease�term�at�the�reporting�date�are�as�follow:

In dollars 2022	2021
Lessthanoneyear 114,968	129,920
Betweenoneandfveyears 194,961	162,824
309,929	292,744
16. Intangible assets
In dollars 2022	2021
Goodwill 7,428,704	7,428,704
7,428,704	7,428,704

All�business�combinations�are�accounted�for�by�applying�the�acquisition�method.�Goodwill�represents�the�difference� between�the�cost�of�the�acquisition�and�the�fair�value�of�the�net�identifiable�assets�acquired.�

Goodwill�is�stated�at�costs�less�any�accumulated�impairment�losses.

Acrow�annually�tests�goodwill�with�indefinite�useful�lives�for�impairment.�An�asset�that�does�not�generate�independent� cash�flows�is�tested�for�impairment�as�part�of�a�cash�generating�unit�(CGU).�

Where�there�is�an�impairment�loss,�it�is�recognised�in�the�statement�of�profit�or�loss�when�the�carrying�amount�of� an asset�exceeds�its�recoverable�amount.�The�asset’s�recoverable�amount�is�estimated�based�on�the�higher�of�its� value-in-use�and�fair�value�less�costs�to�sell.

The�recoverable�amount�of�a�CGU�is�determined�based�on�a�value-in-use�calculation.�The�calculations�use�cash�flow� projections�based�on�a�one-year�budget�that�has�been�approved�by�the�board�of�directors�and�then�a�four-year�forecast� approved�by�the�management.�Cash�flows�beyond�the�five-year�period*�are�extrapolated�using�the�cash�flows�for�year� 5�and�the�estimated�long-term�growth�rates.�

The�discount�rate�used�is�the�Group’s�weighted�average�cost�of�capital.�The�terminal�growth�rate�reflects�the� management’s�outlook�on�growth.�The�discount�rate�used�is�the�Group’s�weighted�average�cost�of�capital.�The�terminal� growth�rate�reflects�the�management’s�outlook�on�growth.

In dollars 2022	2021
Averagegrowthrate1–5years 57.5%*	5%
Terminalgrowthrate 1%	1%
Post-taxdiscountrate 10.6%	10.7%

*��Increase�in�EBIT�from�2022�to�2023�is�251%�and�between�6.7%�and�12.5%�for�the�following�4�years.�The�large�increase�in�the�2023�year� is�due�to�catchups�on�delays�caused�by�COVID�and�wet�weather�conditions�in�the�east�coasts�in�2022.�Many�of�these�projects�had�either� commenced�late�in�2022�or�will�commence�in�2023,�current�pipelines�prove�to�be�strong�and�will�continue�into�2023.�

In dollars	2022 2021
Openinggoodwillbalance	7,428,704 7,428,704
Additions	– –
Reductions	– –
Closing balance	7,428,704 7,428,704

Allocation to CGU Groups

In dollars	2022 2021
Natform companies	7,301,902 7,301,902
Other	126,802 126,802
	7,428,704 7,428,704

Impairment testing on Natform companies

Goodwill�of�$7,301,902�was�recorded�at�31�August�2018�with�respect�to�the�acquisition�of�Natform�Pty�Ltd�and� Natform�(QLD)�Pty�Ltd.�The�recoverable�amount�of�CGU�was�determined�based�on�value-in-use�calculations�which� require�the�use�of�assumptions.�The�calculations�use�cash�flow�projections�based�on�financial�budgets�approved�by� management�covering�a�five-year�period.

Sensitivity

Management�has�made�judgements�and�estimates�in�respect�of�impairment�testing�of�goodwill.�Should�these� judgements�and�estimates�not�occur,�the�carrying�value�of�goodwill�may�vary.�Any�reasonable�change�in�the�key� assumptions�on�which�the�estimates�and/or�the�discount�rate�are�based�would�not�cause�the�carrying�amount�of�the� CGU�to�exceed�the�recoverable�amount.

17. Trade and other payables

17. Trade and other payables
In dollars	2022 2021
Current Trade payables
Tradepayables	12,344,200 19,562,215
Accrued expenses	9,139,827 5,559,940
	21,484,027 25,122,155
Other payables
Natform deferred consideration	– –
Uni-spandeferredconsideration	– 3,338,025
Uni-spancontingentconsideration	– 148,264
	– 3,486,289

A�final�deferred�payment�of�$3,374,370�(with�present�value�of�$3,338,025�at�June�2021)�and�a�contingent�consideration� of�$148,264�were�paid�in�September�2021�to�the�Uni-span�vendors.�Then�a�further�adjustment�payment�of�$60,022� was�made�in�December�2021�as�a�contribution�to�a�legal�matter�that�Acrow�has�taken�over�since�acquisition.�Total� considerations�paid�amount�to�$3,582,656�for�the�year.

Financial Statements for the year ending 30 June 2022

Notes to the Consolidated

18. Employee benefits

18. Employee benefts
In dollars 2022	2021
Current Annual leave 2,377,838	1,891,263
Longserviceleave 1,913,103	1,639,784
Otheremployeebenefts 1,868,513	1,108,477
6,159,454	4,639,524
Non-current Longserviceleave 444,988	611,541
444,988	611,541

All�employees�have�defined�contribution�plans�for�superannuation�and�the�expense�recognised�during�the�year�was� $3,334,148�(2021:�$2,476,487).

19. Loans and borrowings

19. Loans and borrowings
In dollars 2022	2021
Current 17,001,678	7,898,384
Non-current 15,848,299	14,440,464
32,849,977	22,338,848

Borrowings are represented by the following finance facilities:

In dollars	2022	2021
Securedamortisingbusinessloanof$18,168,000	11,483,000	14,423,000
Equipmentfnancefacility,revolving3-yearlimitof$22.0m,temporarilyreducedto $20.0m(30 Jun 21: $10.0m)with$2.0mtransferredtoTradefnancefacilityforthe periodbetweenJunetoSeptember22.	13,450,245	6,381,357
Headroom	6,549,755	3,618,643
Tradefnancefacility,revolving180-daylimitof$6.0mtemporarilyincreasedto $8.0m(30 Jun 21: $3.0m)with$2.0mtransferredfromEquipmentfnancefacility fortheperiodbetweenJunetoSeptember22.	7,916,732	1,534,491
Headroom	83,268	1,465,509
Workingcapitalfacility,$8.4m(30 Jun 21: $5.0m)including$1.4mbankguarantee (30 Jun 21: $1.4m),and$6.6mbankoverdraft(30 Jun 21: $3.6m)	4,336,853	3,171,866
Headroom	3,663,147	1,828,134
Borrowings utilised*	37,186,830	25,510,714
Headroom	10,296,170	6,912,286
Total accessible borrowing amount	47,483,000	32,423,000

In dollars	2022 2021
Borrowings utilised and committed	37,186,830 25,510,714
Less:Bankoverdraftutilisedexcludedfromloansandborrowingsdisclosed
separatelyontheStatementofFinancialPosition	(3,001,005) (1,865,938)
Less:Bankguaranteeutilisednotdrawn	(1,335,848) (1,305,928)
Total Loans and Borrowings	32,849,977 22,338,848

*FY21�amounts�have�been�recalculated�to�adjust�the�headroom�and�borrowings�utilised�relating�to�the�Group’s�bank�overdraft.

All�borrowings�are�secured�by�interlocking�guarantees�where�each�company�within�the�group�jointly�and�severally� guarantees�the�repayment�of�loans�to�the�lending�institution.�All�loans�are�secured�over�the�assets�and�inventory�of� the Group.

Covenants�are�reviewed�half-yearly�with�the�lender.�The�Group�has�complied�with�all�the�respective�borrowing� covenants�throughout�the�year�ended�30�June�2022.�The�covenant�measures�include�Debt�Service�Cover�ratio,�Equity� ratio�and�Financial�Debt�to�EBITDA�ratio.

Interest�rates�on�secured�amortised�business�loans�are�variable�and�dependent�on�prevailing�market�rates�and� bank margins.�

All�borrowing�costs�incurred�in�the�year�have�been�expensed.

20. Provisions

20. Provisions
In dollars	2022 2021
Makegood	469,274 469,274
	469,274 469,274

A�provision�for�make�good�is�measured�at�the�present�value�of�the�cost�of�restoring�leased�properties�to�their�original� condition,�at�the�conclusion�of�the�lease.�No�long�term�(greater�than�12�months)�new�property�lease�had�been�entered� into�during�the�year�that�require�further�addition.

Financial Statements for the year ending 30 June 2022

Notes to the Consolidated

21. Deferred income tax liability and current income tax liability

21. Deferred income tax liability and current income tax	liability
In dollars	2022	2021
Deferred income tax liability movement during the year:
Openingbalanceat1July	6,596,723	4,727,900
Changestoestimatesfromprioryears	32,919	–
Provisions	(250,978)	(5,613,213)
Accruals	74,124	(139,788)
Property, plant and equipment	537,627	7,333,145
Revenue tax loss	–	288,679
Closing balance at 30 June	6,990,415	6,596,723
Income tax liabilities
Openingbalanceat1July	310,332	556,301
Changestoestimatesfromprioryears	(15,739)	–
Tax paid	(9,790)	(556,301)
Currenttaxliabilities	1,584,228	310,332
Carried forward unpaid tax liabilities	1,869,031	310,332
Unrecognised deferred tax assets
Deferred tax assets not recognised for the following items:
Revenue tax losses	11,200,229	15,475,859
Capitallosses	202,441	202,441
Temporary differences	(5,921,940)	(6,061,604)
	5,480,730	9,616,696

While tax losses and temporary differences do not expire under current tax legislation, deferred tax assets have not been�recognised�in�respect�of�these�items�as�certain�subsidiaries�have�experienced�a�number�of�years�without�taxable� income�and�therefore�recovery�is�not�considered�probable.�The�tax�losses�do�not�expire�under�current�tax�legislation.

The�potential�benefit�of�the�deferred�tax�asset�in�respect�of�tax�losses�carried�forward�will�only�be�obtained�if:

(i)�The�subsidiaries�continue�to�derive�future�assessable�income�of�a�nature�and�an�amount�sufficient�to�enable�the� benefit�to�be�realised;�
(ii)�The�subsidiaries�continue�to�comply�with�the�conditions�for�deductibility�imposed�by�the�law;�
(iii)�No�changes�in�tax�legislation�adversely�affect�the�subsidiaries�in�realising�the�asset;�and
(iv)�The�subsidiaries�pass�the�continuity�of�ownership�test,�or�the�same�business�test�as�outlined�by�the�Australian� Taxation�Office.�

22. Issued capital

22. Issued capital
In dollars	2022 2021
Number of shares
Onissueof1July	219,377,208 216,039,534
IssueofDRPshares(i)	2,138,792 2,183,021
Issueofsharesforcash(ii)	27,631,579 –
Sharesissuedthroughconversionofperformancerights(iii)	3,165,120 –
Exerciseofshareoptions(iv)	280,500 1,154,653
Exerciseofrestrictedrights(v)	359,000 –
	252,952,199 219,377,208

(i)�1,432,611�units�of�ordinary�shares�were�issued�at�$0.4437�per�share�following�the�final�2021�dividend�declaration�on�25�November�2021� pursuant�to�the�Dividend�Reinvestment�Plan�(DRP);�706,181�units�of�ordinary�shares�were�issued�at�$0.4575�per�share�following�the� FY2022�interim�dividend�declaration�on�27�May�2022�also�pursuant�to�the�DRP.

(ii)�27,631,579�units�of�fully�paid�ordinary�shares�were�issued�at�$0.38�per�share�via�capital�raising�on�27�July�2021.

(iii)�3,165,120�units�of�ordinary�shares�were�issued�through�conversion�of�performance�rights�granted�under�Long�Term�Variable�Remuneration� plan�in�July�2019.

(iv)�280,500�units�of�Loan�Funded�Shares�were�exercised�at�$0.20�per�share�with�$42,776�loan�repaid�immediately�after�applying� accumulated dividend.�

(v)�359,000�units�of�Restricted�Rights�were�granted�to�a�number�of�selected�employees�in�September�2021�which�were�exercised�on� 21 December�2021.

The holders of these shares are entitled to receive dividends as declared from time to time and are entitled to one vote per�share�at�general�meetings�of�the�Group.

Dividends

Dividend�distributions�payable�to�equity�shareholders�are�included�in�other�liabilities�when�the�dividends�have�been� approved�prior�to�the�reporting�date.

The�following�dividends�were�declared�and�paid�by�the�Group�during�the�year:

In dollars	2022 2021
Dividends on ordinary shares declared and paid:
FY21:1.15centpershare(FY20:1.05centpershare)
–Paidincash	2,239,483 1,875,228
–PaidviaDRP	635,683 399,287
Interim dividend for the current reporting period:
FY22:0.75centpershare(FY21:0.75)
–Paidincash	2,702,944 1,270,029
–PaidviaDRP	323,078 367,626
	5,901,188 3,912,170

A�fully�franked�dividend�of�$2,875,166�for�the�year�ended�30�June�2021�was�paid�on�25�November�2021�at�1.15�cents� per�share�with�1,432,611�new�shares�issued�as�part�of�the�DRP.

A�20%�franked�interim�dividend�of�$3,026,022�for�FY�2021�was�paid�on�27�May�2022�at�1.20�cents�per�share�with� 706,181�new�shares�issued�as�part�of�the�DRP.

Financial Statements for the year ending 30 June 2022

Notes to the Consolidated

22. Issued capital (continued)

Subsequent�to�balance�date,�the�Directors�declared�a�dividend�of�1.50�cents�per�share�60%�franked�on�23�August�2022,� to�be�paid�on�30�November�2022.

Franking�credit�balance�was�$2,393,015�at�30�June�2022�(2021:�$1,954,882).

Foreign currency translation reserve

The foreign currency translation reserve is used to record exchange differences arising on translation of the Group entities�that�do�not�have�functional�currency�of�AUD�dollars�and�have�been�translated�for�presentation�purpose.�

Share-based payments reserve

The�share-based�payments�reserve�is�used�to�recognize�the�grant�date�fair�value�of�shares�issued�to�employees�and� directors�that�have�not�yet�vested.

23. Capital management

Management�monitors�the�capital�of�the�Group,�in�order�to�maintain�a�good�debt�to�equity�ratio,�provide�the� shareholders�with�adequate�returns�and�ensure�that�the�Group�can�fund�its�operations�and�continue�as�a� going concern.�

The�Group’s�debt�and�capital�includes�ordinary�share�capital�and�borrowings.

There�are�no�externally�imposed�capital�requirements.

Management�effectively�manages�the�Group’s�capital�by�assessing�the�Group’s�financial�risks�and�adjusting�its�capital� structure�in�response�to�changes�in�these�risks�and�in�the�market.�These�responses�include�the�management�of�debt� levels,�distributions�to�shareholders�and�share�issues.

24. Earnings per share

Basic�EPS�is�calculated�by�dividing�profit�for�the�year�attributable�to�ordinary�equity�holders�of�the�Parent�by�the� weighted�average�number�of�ordinary�shares�outstanding�during�the�year.

Diluted�EPS�is�calculated�by�dividing�the�net�profit�attributable�to�ordinary�equity�holders�of�the�Parent�by�the�weighted� average�number�of�ordinary�shares�outstanding�during�the�year�plus�the�weighted�average�number�of�ordinary�shares� that�would�be�issued�on�conversion�of�all�the�dilutive�potential�ordinary�shares�into�ordinary�shares.

The�following�table�reflects�the�income�and�share�data�used�in�the�basic�and�diluted�EPS�computations:

In dollars	2022	2021
Earnings reconciliation Proftexcludingsignifcantitems	17,812,912	8,712,829
Netshare-basedpaymentsandsignifcantitems*	(2,118,744)	(4,749,831)
Net proft after tax	15,694,168	3,962,998

*Significant�items�are�comprised�of�Share-based�payments,�restructuring�and�due�diligence�expenses�as�in�note�6.

In dollars	2022 2021
Number of ordinary shares:
WeightedaveragenumberofordinarysharesusedinthecalculationofbasicEPS	248,515,534 217,558,863
WeightedaveragenumberofordinarysharesusedinthecalculationofdilutedEPS	258,794,953 224,511,742
Cents per share:
BasicEPSexcludingsignifcantitems(centspershare)	7.17 4.00
DilutedEPSexcludingsignifcantitems(centspershare)	6.88 3.88
BasicEPS(centspershare)	6.32 1.82
DilutedEPS(centspershare)	6.06 1.77

25. Capital commitments

25. Capital commitments
In dollars	2022	2021
Capital commitments
Capitalexpenditurecontractedforatthereportingdatebutnotrecognisedas
liabilitiesasfollows:
Plant and equipment	2,382,900	1,885,383

Financial Statements for the year ending 30 June 2022

Notes to the Consolidated

26. Reconciliation of cash flows from operating activities

==> picture [470 x 462] intentionally omitted <==

----- Start of picture text -----

||||
|---|---|---|
|In dollars|2022|2021|
|Cash flows from operating activities|
|Profit|15,694,168|3,962,998|
|Adjustments for:|
|–�Depreciation�and�impairment|�7,387,349�|�5,888,321�|
|–�Depreciation�on�right-of-use�assets|�5,683,003�|�5,675,276�|
|–�Hire�equipment�loss�provision|(53,257)�|(31,104)�|
|–�(Gain)�on�disposal�of�assets|(4,955,787)�|(6,552,430)�|
|–�Share-based�payment|�1,164,668�|�2,245,520�|
|–�Remeasurement�of�shares�issued�on�Uni-span�acquisitions|–�|(350,000)�|
|–|
|–�Contingent�consideration�related�to�Uni-span�acquisition|148,264|
|–�Tax�expense|1,962,182|2,179,155|
|Net changes in working capital:|
|–|
|–�Other�financial�assets|99,411|
|–�Trade�and�other�receivables|(9,751,131)�|(7,597,076)|
|–�Inventories|(5,913,632)�|(3,380,809)|
|–�Contract�assets|�663,241�|(655,701)|
|–�Prepayments�and�other�assets|(1,457,455)�|(1,382,604)|
|–�Assets�held�for�sale|(6,072)�|6,347|
|–�Trade�and�other�payables|(3,918,210)�|8,800,091|
|–�Provisions�and�employee�benefits|1,353,377|525,767|
|–�Liabilities�associated�with�assets�held�for�sale|7,041�|(7,271)|
|–�Current�tax�liabilities|(9,790)|(556,302)|
|Cash generated from operating activities|7,849,695|9,017,853|
|Finance�costs|3,513,116|3,305,705|
|Net cash from operating activities|11,362,811|12,323,558|

----- End of picture text -----

27. Remuneration of auditors

During�the�year�the�following�fees�were�paid�or�payable�for�services�provided�by�Grant�Thornton�Audit�Pty�Ltd�(GT)�as� the�auditor�of�the�parent�entity.

In dollars	2022	2021
Audit and review of fnancial reports
Group and controlled entities	335,315	318,535
Total audit and review of fnancial reports	335,315	318,535
Other assurance services	12,700	31,815
Other services
Tax advisory services	–	23,650
Tax compliance services	111,180	41,850
Total other non-audit services	111,180	65,500
Total services provided by GT	459,195	415,850

28. Key management personnel and related parties

Key�management�personnel�are�those�persons�having�authority�and�responsibility�of�planning,�directing�and�controlling� the�activities�of�the�Group,�directly�or�indirectly,�including�any�director,�whether�executive�or�otherwise,�of�the�Group.

In	dollars	2022 2021
■	Shorttermemploymentbenefts	1,778,441 1,884,959
■	Longtermemploymentbenefts	96,309 183,764
■	Post-employmentbenefts	49,810 62,903
■	Share-basedpayments	23,792 523,237
Total compensation paid to key management personnel		1,948,352 2,654,863

Other related party transactions

The�Group�leases�industrial�and�commercial�properties�from�Margaret�Prokop’s�personal�companies�(MRP�Property� Pty�Ltd�&�MRP�Superannuation�Pty�Ltd)�through�the�Natform�subsidiaries.�

Margaret�Prokop�was�previously�a�director�of�Natform�companies�and�upon�the�sale�of�Natform�to�Acrow,�Margaret� was�appointed�as�a�director�of�the�Group.�Rental�and�related�property�payments�to�her�companies�amounted�to� $1,057,924�(2021:�$852,581).�Lease�terms�are�up�to�8�years.�Balance�outstanding�at�30�June�2022�was�$48,612�(2021:� $6,635).�Margaret�Prokop�retired�from�the�board�on�31�December�2021.

Natform�engaged�Margaret�Prokop’s�brother,�the�proprietor�of�Nat�Pty�Ltd�to�manufacture�and�assemble�screens�for� Natform,�the�amount�incurred�for�the�year�was�$961,079�(2021:�$1,235,128);�balance�outstanding�at�30�June�2022�was� $12,496�(2021:�$132,394).�Agreement�with�Nat�Pty�Ltd�terminated�on�28�May�2022�with�all�manufacturing�functions� sourced�internally�and�managed�by�Natform�employees�going�forward.

All�intercompany�transactions�between�the�parent�entity�and�the�subsidiaries�and�amongst�the�subsidiaries�have�been� eliminated�on�consolidation.

Financial Statements for the year ending 30 June 2022

Notes to the Consolidated

29. Share-based payments

At�30�June�2022�the�Group�had�the�following�share-based� payment�arrangements.

Loan Funded Shares

The�Group�carries�forward�only�Loan�Funded�Shares� issued�in�2018�where�selected�employees�and�directors� of�the�Group�had�been�granted�an�interest-free�loan� to�subscribe�to�shares�of�Acrow�Formwork�and� Construction�Services�Limited.�

These�loans�are�non-recourse�other�than�to�the�shares� held�by�that�employee/director,�and�the�proceeds�of�the� loan�must�be�used�to�buy�shares.�As�the�only�recourse�on� the loans is the shares and there are vesting conditions, the�arrangement�has�been�accounted�for�as�share� options,�as�required�under�accounting�standards.�

These options entitle the holders to receive dividends on ordinary shares of the Group, and these dividends are required�to�be�used�to�repay�the�loans�described�above.�

The�Loan�Funded�Shares�have�the�following�terms:

(i)�Date�of�issue:�27�March�2018
(ii)�Loan�term:�5�years;
(iii)�Interest:�No�interest�is�payable;�and
(iv)�Vesting�hurdles:�subject�to�being�a�continuous� employee or director of the Group for 2 years from the�date�of�issue,�and�the�20-day�(at�any�point�over�

the�vesting�period)�volume�weighted�average�share� price�(“VWAP”)�of�the�Group’s�share�price�exceeding� 40�cents�per�share�(post�the�share�consolidation). The�fair�value�at�grant�date�was�determined�using�an� adjusted�form�of�the�Monte-Carlo�model�that�factors� in�market�conditions.�The�grant�date�fair�value�of� rights�granted�in�the�year�was�$0.1071.

All�vesting�hurdles�had�been�met�at�27�March�2020.�In� July�2021,�280,500�units�of�Loan�Funded�Options�had� been�exercised�at�$0.20�per�share�discounted�by�dividend� accrued�from�$56,100�to�$42,776.�Loan�was�immediately� settled�in�cash�by�the�employee.

The�model�inputs�for�the�in-substance�options�granted� had�included:

a)�Exercise�price�$0.20
b)�Share�price�at�grant�date�$0.20
c)�Expected�price�volatility�75%�–�based�on� comparable companies
d)�Expected�dividend�yield�0%�
e)�Risk-free�interest�rate�2.41%
f)�Expected�life�3�years

Total�number�of�outstanding�loan�funded�shares�at� 30�June�2022�were�2,194,500�units�(30�June�2021:� 2,475,000).

Reconciliation of outstanding loan funded share options:

The�number�and�weighted�average�exercise�prices�of�loan�funded�options�were�as�follows:

	2022	2022	2021	2021
		Weighted average		Weighted average
	Number	exercise price	Number	exercise price
Outstandingat1July	2,475,000	$0.20	2,475,000	$0.20
Granted during the year	–	–	–	–
Exercisedduringtheyear	280,500	$0.20	–	–
Outstanding at 30 June	2,194,500	$0.20	2,475,000	$0.20

Options

No�new�options�have�been�issued�during�the�year.�

In�November�2021,�50,000�units�were�cancelled�due�to�failure�to�meet�vesting�condition�(being�20-day�volume� weighted�average�price�of�60�cents�per�share)�before�expiry�date.

Total�number�of�outstanding�options�at�30�June�2022�were�6,860,000�units�(30�June�2021:�6,910,000).�Balance�of�all� outstanding�options�at�balanced�date�are�as�follow:

		2022		2021
			Number of		Number of
Grant date	Expiry date	Exercise price	options	Exercise price	options
23November2016	23November2021	$0.20	–	$0.20	50,000
13December2017	13December2022	$0.20	200,000	$0.20	200,000
14January2019	14January2024	$0.50	5,100,000	$0.50	5,100,000
4March2019	4March2024	$0.50	360,000	$0.50	360,000
16July2019	16July2024	$0.40	1,200,000	$0.40	1,200,000
Balance at 30 June			6,860,000		6,910,000

Reconciliation of outstanding share options:

	2022	2022	2021	2021
		Weighted average		Weighted average
	Number	exercise price	Number	exercise price
Outstandingat1July	6,910,000	$0.47	9,323,000	$0.40
Granted during the year	–	–	–	–
Exercisedduringtheyear	–	–	(1,663,000)	$0.20
Forfeitedduringtheyear	(50,000)	$0.20	(750,000)	–
Outstanding at 30 June	6,860,000	$0.47	6,910,000	$0.47

Performance Rights

As�of�30�June�2021,�there�were�a�total�of�15,946,950�Performance�Rights�(LTVR�1-4)�outstanding�which�were�granted� based�on�Earning�Per�Share�(EPS)�and�Total�Shareholder�Return�(TSR)�performance�hurdles�over�FY2021�&�FY2022.� There�are�four�tranches�and�their�movements�are�summarized�as�follow:

Long term variable incentives	LTVR 1	LTVR 2	LTVR 3	LTVR 4
Measurement period	FY2022	FY2022	FY2021	FY2021
Hurdle	TSR	EPS	TSR	EPS
Vestingstatusat30June2022	Unvested	Unvested	Lapsed	Vested
Outstandingasof1July	2,027,500	6,082,500	1,959,250	5,877,700
Grants/(cancellations)ofissues	202,905	608,713	–	–
Unvested or forfeiture	–	–	(1,959,250)	(2,351,080)
Vestedandexercisedasordinaryshares	–	–	–	(3,165,120)
Balance outstanding 30 June 2022	2,230,405	6,691,213	–	361,500

With�LTVR�1-2,�a�further�1,175,618�units�have�been�granted�to�eligible�employees�in�September�2021�and�March�2022,� and�364,000�units�have�been�cancelled�on�terminated�employees,�resulting�in�8,921,618�rights�outstanding�at�end�of� June�2022.

With�LTVR�3,�the�Group�failed�to�meet�TSR�conditions�resulting�in�cancellation�of�all�1,959,250�units�issued.

With�LTVR�4,�the�Group�met�the�EPS�performance�conditions�with�60%�vesting�rate�resulting�in�3,526,620�units�vested� and�2,351,080�units�forfeited.�3,165,120�units�that�vested�had�been�exercised�and�converted�to�ordinary�shares,�

Notes to the Consolidated

Financial Statements for the year ending 30 June 2022

29. Share-based payments (continued)

leaving�a�balance�of�361,500�units�unexercised�at�end�of� June 2022.

A�short-term�incentive�issue�of�359,000�rights�were� granted�to�eligible�employees,�vested�and�exercised�as� ordinary�shares�during�the�reporting�period.

On�1�June�2022,�The�Group�granted�7,901,708� performance�rights�(LTVR�5-8)�to�eligible�employees�over� two�plans,�being�3,584,434�for�FY�2023�and�4,317,274�for� FY�2024,�Each�year�is�consisted�of�two�tranches,�one�on� EPS�and�one�on�TSR�performance�vesting�conditions�of� equal�number�of�units.�If�the�vesting�conditions�are�met,� each�Performance�Right�can�be�exercised�into�one�Fully� Paid�Ordinary�Share�at�the�holder’s�discretion�until�the� expiry�date�of�30�June�2037.�The�Performance�Rights� were�issued�to�employees�of�the�Company�under�the� Company’s�Rights�Plan�and�form�part�of�the�Long-Term� Variable�Remuneration�of�the�employees.

The�performance�rights�have�the�following�terms:

(i)�Exercise�price:�nil;
(ii)�Conversion:�upon�vesting,�conversion�to�shares�on�a� 1 for�1�basis;
(iii)�Dividends:�not�entitled�until�performance�rights�are� exercised;
(iv)�Vesting�hurdles:�
a.�50%�of�each�issue�measured�on�Earnings�per� share�(EPS)�criteria�specifically�“Net�profit�after�tax� /�Weighted�average�number�of�shares�on�issue”.�
- i.� �A�threshold�cumulative�return�of�8%�is� required�below�which�no�vesting�will�occur.�
- ii.��A�target�return�of�10%�will�vest�50%�of� performance�rights�and�pro�rata�between� 8% and�10%
- iii.��Above�10%�return�up�to�a�maximum�of� 20% return�the�balance�of�the�performance� rights�will�vest�on�a�pro�rata�basis.
b.�50%�of�each�issue�measured�on�Total�Shareholder� return�(TSR)�criteria.�This�compares�the�share� price and dividends through the measurement period�to�the�ASX�Small�Industrials�Index.�
- i.� �A�threshold�cumulative�return�equal�to�the� market�is�required�below�which�no�vesting� will occur.�
- ii.��A�target�return�of�130%�of�the�index�TSR� will�vest�50%�of�performance�rights�and� pro�rata�between�index�return�and�130%�of� index return.
iii.��Above�130%�of�index�return�up�to�a� maximum of�160%�index�return�the�balance� of the�performance�rights�will�vest�on�a�pro� rata�basis.
c.�The�performance�rights�will�be�measured�between� 1�July�2020�and�30�June�2023�for�the�2023� issue�and�1�July�2021�and�30�June�2024�for�the� 2024 issue.

The model inputs for the performance rights granted included:

a)�Exercise�price:�nil
b)�Share�price�at�grant�date�of�1�June�2022�was�$0.48
c)�Expected�price�volatility�between�14%�and�33%-�based� on�comparable�companies
d)�Expected�dividend�yield�5.1%�
e)�Risk-free�interest�rate�between�2.25%�and�3.6%

Total�number�of�outstanding�performance�rights�on� 30�June�2022�were�17,184,826�units�(30�June�2021:� 15,946,950).

30. Financial risk management Risk management objectives and policies

The�Group’s�activities�expose�it�to�a�variety�of�financial� risks:�market�risk�(including�foreign�exchange�risk,� interest�rate�risk),�credit�risk�and�liquidity�risk.�The� Group’s�overall�risk�management�program�focuses� on�the�unpredictability�of�financial�markets�and�seeks� to�minimise�potential�adverse�effects�on�the�financial� performance�of�the�Group.

The�Group�uses�derivative�financial�instruments�such� as�foreign�exchange�contracts�to�hedge�certain�risk� exposures.�Derivatives�are�exclusively�used�for�economic� hedging purpose and are not used as speculative or trading�instruments.�

The Group uses different methods to measure different types�of�risk�to�which�it�is�exposed.�These�methods� include sensitivity analysis in the case of interest rate, foreign�exchange�and�other�price�risks,�and�aging� analysis�for�credit�risk.�

There�was�no�open�foreign�exchange�contract�at� 30�June�2022�and�30�June�2021.�

Fair value hierarchy

The�fair�value�of�financial�assets�and�financial�liabilities� must�be�estimated�for�recognition�and�measurement�or� for�disclosure�purposes.

Fair�value�inputs�are�summarised�as�follows:

Level 1: �The�fair�value�of�financial�instruments�traded� in�active�markets�(such�as�publicly�traded�derivatives,� and�trading�and�available-for-sale�securities)�is�based�on� quoted�market�prices�at�the�end�of�the�reporting�period.

Level 2: �The�fair�value�of�financial�instruments�that� are�not�traded�in�an�active�market�(for�example,� over-the-counter�derivatives)�is�determined�using� valuation�techniques�which�maximise�the�use�of� observable�market�data�and�rely�as�little�as�possible�on� entity�specific�estimates.�If�all�significant�inputs�required� to�fair�value�an�instrument�are�observable,�the�instrument� is�included�in�Level�2.

Level 3: �If�one�or�more�of�the�significant�inputs�is�not� based�on�observable�market�data,�the�instrument�is� included�in�Level�3.

The�fair�value�hierarchy�was�not�applicable�for�the�year� ended�30�June�2022,�as�the�Group�held�no�financial� assets�or�liabilities�that�required�valuation.�

Fair�value�hierarchy�is�re-assessed�annually�for�any� change in circumstance that may suggest a revised level be�assigned�to�a�type�of�balance�measured�at�fair�value.

The�Group’s�risk�management�is�coordinated�by� management,�in�close�cooperation�with�the�Board�of� Directors,�and�focuses�on�actively�securing�the�Group’s� short�to�medium-term�cash�flows�by�minimising�the� exposure�to�financial�markets.�

The Group does not actively engage in the trading of financial�assets�for�speculative�purposes.�The�most� significant�financial�risks�to�which�the�Group�is�exposed� are�described�below.�

Market risk analysis

The�Group�is�exposed�to�market�risk�through�its�use�of� financial�instruments�and�specifically�to�interest�rate� risk�and�certain�other�price�risks,�which�result�from�its� operating�activities.�

Exposure to currency risk

As�at�30�June�2022�the�Group�held�the�below�AUD�equivalent�of�foreign�currency�risks�in�USD,�EUR�and�HKD:

		30 June 2022		30 June	2021
	USD	EUR	HKD*	USD	EUR
Tradepayables	2,728,137	768,196	191,557	1,059,549	780,755
Purchaseordersat30June	3,479,939	1,695,780	232,824	1,885,383	–
CashatBank	(59,369)	–	–	–	–
Net exposure	6,148,707	2,463,976	424,381	2,944,932	780,755

*The�Group�had�no�exposure�to�HKD�at�30�June�2021.

Foreign currency sensitivity

A�possible�strengthening/(weakening)�of�the�USD,�EUR�or�the�HKD�at�30�June�would�have�affected�profit�or�loss�by�the� amounts�(in�AUD)�shown�below.�This�analysis�assumes�that�all�other�variables�remain�constant�and�ignores�the�impact� of�forecast�purchases.�

	Proft or loss	Proft or loss
In dollars	Strengthening	Weakening
USD(10%movement)	558,973	(683,190)
EUR(10%movement)	223,998	(273,775)
HKD(10%movement)	38,580	(47,153)

Notes to the Consolidated

Financial Statements for the year ending 30 June 2022

30. Financial risk management (continued)

Interest rate risk

Interest�rate�risk�is�the�risk�that�changes�in�interest�rates�impact�the�Group’s�financial�performance�or�the�value�of�its� financial�instruments.�

The�Group’s�interest�rate�risk�arises�from�its�overdrafts,�term�loans�and�when�new�equipment�or�trade�finances�are� drawn.�Draw�down�and�increase�in�overdraft�under�the�current�debt�facility�are�priced�using�a�floating�interest�rate�plus� a�fixed�margin.�

The�Group�does�not�currently�use�interest�rate�hedges.�However,�management�regularly�reviews�its�funding� arrangements to ensure loans are competitively priced and access are maintained to necessary liquidity levels to service�the�Group’s�operational�activities.

At�30�June�2022�the�Group�has�the�following�exposure�to�interest�rates�on�borrowings:

2022	2021
Fixed rate instruments Loansandborrowings 21,366,977	7,915,848
Variable rate instruments Loansandborrowings 11,483,000	14,423,000
Overdraft* 3,001,005	1,865,938

*FY2021�values�have�been�adjusted�to�include�overdraft�balance�of�$1,865,938�at�30�June�2021�for�consistency�and�comparability.

Interest Rate Sensitivity

At�30�June�2022,�the�Group�held�interest�bearing�loans�of� $32,849,977�(2021:�$22,338,848)�and�a�bank�overdraft�of� $3,001,005�(2021:�$1,865,938).

An�increase�of�100�basis�points�in�interest�rates�on� variable�instruments�at�the�reporting�date�would�have� a�negative�impact�of�$155,723�(2021:�$167,644)�on�the� net�profit,�whereas�a�decrease�of�100�basis�points�would� have�a�positive�impact�of�$143,611�(2021:�$155,373)�on� the�net�profit.

Credit risk analysis

Credit�risk�is�the�risk�that�a�counterparty�fails�to� discharge�an�obligation�to�the�Group.�The�Group�is� exposed�to�this�risk�principally�through�receivables� from�customers.�The�Group�leases�hire�equipment�and� provides services to consumers pursuant to policies and procedures that are intended to ensure that there is no concentration�of�credit�risk�with�any�particular�individual,� company�or�other�entity.

The�Group’s�exposure�to�credit�risk�is�influenced�mainly� by�the�individual�characteristics�of�each�customer.� However,�management�also�considers�the�factors�such� as�market�segment,�financial�profile,�default�risk�of�the� industry�sector�and�credit�history�of�the�customers.�To� manage�this�risk,�the�Group�has�a�policy�for�establishing� credit�approvals�and�limits�under�which�each�new� customer�is�analysed�individually�for�creditworthiness�

before�standard�payment�terms�and�limits�are�granted.� Where�available�at�reasonable�cost,�external�credit�ratings� and/or�reports�on�customers�and�other�counterparties� are�obtained�and�used.�The�Group’s�policy�is�to�deal�only� with�creditworthy�counterparties.�The�summary�of�the� Group’s�trade�receivables�is�available�in�note�10.

The Group conducts an ongoing assessment of expected credit�losses�(ECL)�by�analysing�actual�loss�experience� of the Group, arrears, and other inputs such as exposure or�timing.�The�assessment�is�broken�down�into�4 sectors� including�Industrial�Services,�Civil�Infrastructure,� Commercial,�and�Residential.�These�sectors�are�then� analysed in a set of 5 stages ranging from currently due receivables�to�receivables�due�in�over�90�days.�The�Group� also�separately�quantifies�receivables�due�from�entities�in� liquidation/default.�

Macroeconomic Scenarios

Expected�credit�losses�(“ECL”)�are�a�probability-weighted� estimate of credit losses over the expected life of the financial�instrument.�The�Group�has�a�process�for� incorporating�forward�looking�economic�scenarios�and� determining�the�probability�weightings�assigned�to�each� scenario�in�determining�the�overall�ECL.�The�Group� prepares�a�base,�best�and�worst-case�scenarios�based�on� economic�variables.

The�Group�has�incorporated�this�by�use�of�a� management�overlay�or�economic�risk�reserve.

Write-off policy

The�Group�writes�off�financial�assets�in�whole�or�in�part,�when�it�has�exhausted�all�practical�recovery�efforts�and� has�concluded�there�is�no�reasonable�expectation�of�recovery.�Indicators�that�there�is�no�reasonable�expectation�of� recovery�include�(i)�ceasing�enforcement�activity�and�(ii)�where�the�Group’s�recovery�method�is�foreclosing�on�collateral� and�the�value�of�the�collateral�such�that�there�is�no�reasonable�expectation�of�full�recovery.

Liquidity risk analysis

Liquidity�risk�is�the�risk�that�the�Group�might�be�unable�to�meet�its�obligations.�

The�Group�manages�its�liquidity�needs�by�monitoring�scheduled�debt�servicing�payments�for�long-term�financial� liabilities�as�well�as�forecast�cash�inflows�and�outflows�due�in�day-to-day�business.�The�data�used�for�analysing�these� cash�flows�is�consistent�with�that�used�in�the�contractual�maturity�analysis�below.�

Liquidity�needs�are�monitored�in�various�time�bands,�on�a�day-to-day�and�week-to-week�basis,�as�well�as�on�a�rolling� 30-day�projection.�Long-term�liquidity�needs�for�a�180-day�and�a�360-day�lookout�period�are�identified�monthly.�

Net�cash�requirements�are�compared�to�available�borrowing�facilities�to�determine�headroom�or�any�shortfalls.�This� analysis�shows�that�available�borrowing�facilities�are�expected�to�be�sufficient�over�the�lookout�period.�Refer�to�note�19� for�undrawn�borrowing�facilities.

The�Group’s�objective�is�to�maintain�cash�to�meet�its�liquidity�requirements�for�30-day�periods�at�a�minimum.�Funding� for�long-term�liquidity�needs�is�additionally�secured�by�an�adequate�amount�of�committed�credit�facilities.�

The�Group�considers�expected�cash�flows�from�financial�assets�in�assessing�and�managing�liquidity�risk,�notably�its� cash�resources�and�trade�receivables.�

The�following�liquidity�risk�disclosures�reflect�all�contractually�fixed�repayments�and�interest�resulting�from�recognised� financial�liabilities�and�derivatives�as�of�30�June�2022.�The�timing�of�cash�flows�for�liabilities�is�based�on�the� contractual�terms�of�the�underlying�contract.

		Contractual cash fow	Contractual cash fow
	Carrying
	Amount	Total	1 year or less	1 to 5 years	Over 5 years
2022
Non-derivative fnancial liabilities
Tradepayablesandaccrued
expenses	21,484,027	(21,484,027)	(21,484,027)	–	–
Loansandborrowings	32,849,977	(35,302,897)	(18,039,906)	(17,262,991)	–
Leaseliabilities	28,249,469	(33,556,109)	(6,392,739)	(19,481,318)	(7,682,052)
	82,583,473	(90,343,033)	(45,916,672)	(36,744,309)	(7,682,052)
2021
Non-derivative fnancial liabilities
Deferredconsideration	3,486,289	(3,520,248)	(3,520,248)	–	–
Tradepayablesand
accrued expenses	25,122,155	(25,122,155)	(20,694,234)	(4,427,921)	–
Loansandborrowings	22,338,848	(24,289,195)	(8,626,267)	(15,662,928)	–
Leaseliabilities	32,041,939	(38,014,095)	(6,125,388)	(20,899,218)	(10,989,489)
	82,989,231	(90,945,693)	(38,966,137)	(40,990,067)	(10,989,489)

Financial Statements for the year ending 30 June 2022

Notes to the Consolidated

31. Group entities

The�consolidated�financial�statements�include�the�financial�statements�of�the�following�wholly-owned�subsidiaries:

	Place of	% Equity
	incorporation	interest
AcrowHoldingsPtyLimited(a),(b)	NSW	100%
AcrowFormworkandScaffoldingPtyLtd(a),(b)	NSW	100%
NatformPtyLtd(a),(b)	NSW	100%
Natform(QLD)PtyLtd(a),(b)	QLD	100%
Uni-spanGroupPtyLtd(a),(b)	QLD	100%
Uni-spanHeightSafetyPtyLtd(a),(b)	QLD	100%
UnispanAustraliaPtyLtd(a),(b)	QLD	100%
Uni-spanFormworkSolutionsPtyLtd(a),(b)	QLD	100%
AcrowGroupInvestmentsPtyLtd(a),(b)	NSW	100%
NobleMineralResourcesGhanaLimited	Ghana	100%

(a)�These�subsidiaries�have�been�granted�relief�from�the�necessity�to�prepare�financial�reports�under�the�option�available�to�the�Group�under� ASIC�Corporations�(Wholly�Owned�Companies)�Instrument�2016/785.

(b)�These�subsidiaries,�along�with�Acrow�Formwork�and�Construction�Services�Limited�(the�parent�entity�of�the�Group),�form�the�Deed�of�Cross� Guarantee�Group�described�further�from�note�34.

32. Operating segments

The�Group’s�operating�segment�is�based�on�the�internal�reports�that�are�reviewed�and�used�by�the�Board�of�Directors� and�the�executive�management�team�(being�the�Chief�Operating�Decision�Makers�(“CODM”))�in�assessing�the�financial� performance�and�in�determining�the�allocation�of�resources.�The�Group�operates�in�the�building�construction�market,� providing�falsework,�formwork,�scaffolding,�screens�and�related�material�for�hire�and�sales.�There�are�no�operating� segments�for�which�discrete�financial�information�exists.�The�prior�year�segment�disclosure�included�an�additional� segment�being�mining�exploration.�This�segment�was�a�legacy�of�the�Company�prior�to�its�current�operations,� immaterial�and�does�not�get�reported�separately�to�the�CODM�therefore�was�excluded.�

The�information�reported�to�the�CODM,�on�at�least�monthly�basis,�is�the�consolidated�results�as�shown�in�the� statement�of�profit�or�loss�and�other�comprehensive�income�and�statement�of�financial�position.

33. Parent entity disclosures

33. Parent entity disclosures
In dollars	2022 2021
Results of the parent entity
Proftfortheperiod	1,139,571 3,063,463
Total comprehensive income for the period	1,139,571 3,063,463
Financial position of the parent entity at year end
Currentassets	18,455 5,405
Non-currentassets	54,554,925 50,707,007
Total assets	54,573,380 50,712,412
Currentliabilities	201,184 3,615,726
Total liabilities	201,184 3,615,726
Net assets	54,372,196 47,096,686
Total equity of parent entity comprising:
Issuedcapital	58,310,046 46,703,384
Share-basedpaymentsreserve	3,003,682 2,972,126
Accumulated losses	(6,941,532) (2,578,824)
Total equity	54,372,196 47,096,686
Movement to accumulated profts/(losses):
Opening balance at 1 July	(2,578,824) (1,730,117)
DividendpaidandreinvestedthroughDRP	(5,901,188) (3,912,170)
Writebackofcancelledperformancerights	398,909 –
Proftfortheperiod	1,139,571 3,063,463
Closing balance at 30 June	(6,941,532) (2,578,824)

Accounting�policies�of�the�parent�company�Acrow�Formwork�and�Construction�Services�Limited�are�consistent�with� the�group�and�subsidiaries.�

Investments�in�subsidiaries�are�accounted�for�at�cost�in�the�financial�statements�of�the�parent�entity,�these�are� reviewed�annually�for�recoverability�at�the�reporting�date.

34. Deed of cross guarantee

Under�the�terms�of�ASIC�Corporations�(Wholly�owned�Companies)�Instrument�2016/785,�certain�wholly�owned� controlled�entities�have�been�granted�relief�from�the�requirement�to�prepare�audited�financial�reports.�

Acrow�entered�into�an�approved�Deed�of�Indemnity�on�26�June�2018�for�the�cross-guarantee�of�liabilities�with�Acrow� Formwork�and�Scaffolding�Pty�Ltd�and�Acrow�Holdings�Pty�Ltd,�then�on�19�December�2018,�an�Assumption�Deed�was� executed�to�include�newly�formed�entity�Acrow�Group�Investments�Pty�Ltd�and�acquired�companies,�Natform�Pty�Ltd� and�Natform�(QLD)�Pty�Ltd.

A�further�assumption�deed�was�executed�on�3�May�2020�to�include�the�new�acquired�Uni-span�group�of�companies.

The�following�statement�of�profit�or�loss�and�statement�of�financial�position�comprises�Acrow�and�its�controlled� entities�which�are�party�to�the�Deed�of�Cross�Guarantee,�after�eliminating�all�transactions�between�parties�to�the�Deed.

Notes to the Consolidated Financial Statements for the year ending 30 June 2022

34. Deed of cross guarantee (continued)

Statement of Profit or Loss

For the year ended 30 June 2022

In dollars	2022	2021
Continuing operations
Revenue	140,826,918	94,608,887
Other income	4,955,787	6,552,430
Personnel expenses	(51,815,012)	(36,534,129)
Sub-contractlabourcosts	(18,039,520)	(16,646,962)
Inventorypurchased,netofchangesinfnishedgoods	(31,642,371)	(18,276,344)
Depreciation	(13,070,352)	(11,563,598)
ITandtelecommunicationexpenses	(1,641,245)	(1,542,961)
Freightcosts	(1,975,256)	(1,664,296)
Insuranceexpenses	(1,090,449)	(813,198)
Gain on fair value of derivatives	–	350,000
ContingentconsiderationrelatedtoUni-spanacquisition	–	(148,264)
Other expenses	(5,338,074)	(4,874,621)
Proft before net fnance costs and income tax	21,170,426	9,446,944
Financecosts	(3,513,116)	(3,305,705)
Proft before income tax	17,657,310	6,141,239
Incometaxexpense	(1,962,182)	(2,179,155)
Proft from continuing operations	15,695,128	3,962,085

Statement of Financial Position

As at 30 June 2022

In dollars 2022	2021
Current assets Cashandcashequivalents 3,010,318	1,754,516
Tradeandotherreceivables 34,362,867	24,611,736
Inventories 14,872,186	8,958,554
Contractassets 111,927	775,168
Prepayments and other assets 5,075,832	3,618,377
Total current assets 57,433,130	39,718,351

In dollars	2022 2021
Non-current assets
Property, plant and equipment	95,490,436 83,008,854
Right-of-useleaseassets	24,478,720 28,808,936
Intangibleassets	7,428,694 7,428,694
Total non-current assets	127,397,850 119,246,484
Total assets	184,830,980 158,964,835
Current liabilities
Bankoverdraft	3,001,005 1,865,938
Tradepayables	21,484,027 25,122,155
Otherpayables	– 3,486,289
Employeebenefts	6,159,454 4,639,524
Leaseliabilities	4,964,215 4,645,552
Loansandborrowings	17,001,678 7,898,384
Currenttaxliabilities	1,869,031 310,331
Total current liabilities	54,479,410 47,968,173
Non-current liabilities
Employeebenefts	444,988 611,541
Leaseliabilities	23,285,254 27,396,387
Loansandborrowings	15,848,299 14,440,464
Provisions	469,274 469,274
Deferredincometaxliability	6,990,415 6,596,723
Total non-current liabilities	47,038,230 49,514,389
Total liabilities	101,517,640 97,482,562
Net assets	83,313,340 61,482,273
Equity
Issuedcapital	58,310,046 46,703,384
Share-basedpaymentsreserve	3,003,681 2,972,126
Retained earnings	21,999,613 11,806,763
Total equity	83,313,340 61,482,273

Notes to the Consolidated

Financial Statements for the year ending 30 June 2022

35. Subsequent events

Changes�on�loan�facilities�either�effected�or�agreed�after�balance�date:

Equipment�finance�and�Trade�finance�facility�limits�to�revert�on�30�September�2022�from�$20,000,000�to� $22,000,000�and�from�$8,000,000�to�$6,000,000�respectively,�per�agreement�made�on�10�June�2022.�
A�new�loan�agreement�for�capital�purchases.�The�loan�amount�is�$4,125,000,�matures�in�3�years�from� commencement�date�and�repayable�in�full�by�June�2025.�
Bank�guarantee�facility�increased�from�$1,400,000�to�$1,700,000�by�reducing�the�overdraft�facility�from�$6,600,000� to $6,300,000.
Further�Equipment�finance�loans�of�$3,832,596�were�drawn,�repayable�in�full�at�end�of�three�years�and�Trade� finance�loans�of�$1,688,639�were�drawn�and�repayable�in�full�within�180�days.�
An�insurance�premium�finance�loan�of�$1,201,540�was�drawn�on�22�August�2022�repayable�in�full�by�22�July�2023.�

On�23�August�2022�the�Directors�declared�a�60%�franked�dividend�of�1.5�cents�per�share�to�be�paid�on� 30�November�2022.�Dividend�Reinvestment�Plan�is�available�for�election.�The�dividend�has�not�been�provided�for�in�this� financial�report�as�it�was�not�declared�until�after�30�June�2022.

Other�than�the�above�events,�there�has�not�otherwise�arisen�between�30�June�2022�and�the�date�of�this�report�any� item,�transaction�or�event�of�a�material�and�unusual�nature�likely,�in�the�opinion�of�the�directors�of�the�Group,�to�affect� significantly�the�operations�of�the�Group,�the�results�of�those�operations,�or�the�state�of�the�affairs�of�the�Group�in� future�financial�years.

Directors’ Declaration for the year ending 30 June 2022

In�the�opinion�of�the�Directors�of�Acrow�Formwork�and�Construction�Services�Ltd�(the�Group):

(a)�the�consolidated�financial�statements�and�notes�set�out�on�pages�49�to�88�and�the�Remuneration�Report�in�the� Directors’�Report,�set�out�on�pages�23�to�48�are�in�accordance�with�the�Corporations�Act�2001,�including:
(i)�giving�a�true�and�fair�view�of�the�Group’s�financial�position�as�at�30�June�2022�and�of�its�performance,�for�the� financial�year�ended�on�that�date;�and
(ii)�complying�with�Australian�Accounting�Standards,�International�Financial�Report�Standards�and�the� Corporations�Regulations�2001;
(b)�there�are�reasonable�grounds�to�believe�that�the�company�will�be�able�to�pay�its�debts�as�and�when�they�become� due�and�payable.
(c)�There�are�reasonable�grounds�to�believe�that�Acrow�Formwork�and�Construction�Services�Limited�and�its�controlled� entities�identified�in�note�31�will�be�able�to�meet�any�obligations�or�liabilities�to�which�they�are�or�may�become� subject�by�virtue�of�the�Deed�of�Cross�Guarantee�between�Acrow�Formwork�and�Construction�Services�Limited�and� its�controlled�entities�pursuant�to�ASIC�Corporations�(Wholly-owned�Companies)�Instrument�2016/785.
(d)�The�Directors�have�been�given�the�declarations�required�by�section�295A�of�the�Corporations�Act�2001�from�the� Chief�Executive�Officer�and�the�Chief�Financial�Officer�for�the�financial�year�ended�30�June�2022.

Signed�in�accordance�with�a�resolution�of�the�Directors:

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Peter Lancken Chairman

Sydney,�27�September�2022

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Steven Boland Director,�Chief�Executive�Officer

Sydney,�27�September�2022

Independent Auditor’s Report for the year ending 30 June 2022

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Grant Thornton Audit Pty Ltd Level 17 383 Kent Street Sydney NSW 2000 Locked Bag Q800 Queen Victoria Building NSW 1230 T +61 2 8297 2400

Independent Auditor’s Report

To the Members of Acrow Formwork and Construction Services Limited

Report on the audit of the financial report

Opinion

We have audited the financial report of Acrow Formwork and Construction Services Limited (the Company) and its subsidiaries (the Group), which comprises the consolidated statement of financial position as at 30 June 2022, the consolidated statement of profit or loss and other comprehensive income, consolidated statement of changes in equity and consolidated statement of cash flows for the year then ended, and notes to the consolidated financial statements, including a summary of significant accounting policies, and the Directors’ declaration.

In our opinion, the accompanying financial report of the Group is in accordance with the Corporations Act 2001 , including:

a giving a true and fair view of the Group’s financial position as at 30 June 2022 and of its performance for the year ended on that date; and

b complying with Australian Accounting Standards and the Corporations Regulations 2001 .

Basis for opinion

We conducted our audit in accordance with Australian Auditing Standards. Our responsibilities under those standards are further described in the Auditor’s Responsibilities for the Audit of the Financial Report section of our report. We are independent of the Group in accordance with the auditor independence requirements of the Corporations Act 2001 and the ethical requirements of the Accounting Professional and Ethical Standards Board’s APES 110 Code of Ethics for Professional Accountants (including Independence Standards) (the Code) that are relevant to our audit of the financial report in Australia. We have also fulfilled our other ethical responsibilities in accordance with the Code.

We believe that the audit evidence we have obtained is sufficient and appropriate to provide a basis for our opinion.

www.grantthornton.com.au ACN-130 913 594

Key audit matters

Key audit matters are those matters that, in our professional judgement, were of most significance in our audit of the financial report of the current period. These matters were addressed in the context of our audit of the financial report as a whole, and in forming our opinion thereon, and we do not provide a separate opinion on these matters.

matters.
Key audit matter	How our audit addressed the key audit matter
Carrying value of goodwill (Note 16)
As disclosed in Note 16, intangible assets comprise	Our procedures included, amongst others:
goodwill relating to the acquisition of Natform Pty Ltd and Natform (QLD) Pty Ltd which amounts to $7.3 million.	•	Enquiring with management to obtain and document an understanding of the processes and controls related to the assessment of impairment, including
In accordance with AASB 136_Impairment of Assets_,		the calculation of the recoverable amount;
the Group is required to test the carrying value of goodwill annually.	•	Obtaining management’s value-in-use calculations to:
Management has tested goodwill for impairment by comparing the carrying value of the assets related to		−Test the mathematical accuracy;
this cash-generating unit to a valuation model based		−Evaluate management’s ability to perform
on the value in use of these assets.		accurate estimates by comparing historical
We have determined this is a key audit matter as this		forecasting to actual results;
assessment requires the exercise of significant		−Test forecast cash inflows and outflows; and
judgement about forecasting future revenues and expenses, including discount rates applied to cash flows.		−Assess the discount rates applied to forecast future cash flows;
	•	Evaluating the value in use model against the
		requirements of AASB 136, including consultation
		with our internal valuation experts;

Performing sensitivity analysis on the significant inputs and assumptions made by management in preparing the calculation; and
Assessing the adequacy of financial report and accounting policy disclosures.

Expected credit loss (Note 10)

As disclosed in Note 10, the Group’s expected credit loss provision amounts to $1.5 million.

In accordance with AASB 9 Financial Instruments, the Group is required to prepare an estimation of expected credit losses as at 30 June 2022.

We have determined this is a key audit matter due to the inherent subjectivity involved in the Group making forward looking judgements in relation to the recovery of credit risk exposures. We further note there is an increased risk in relation to the recoverability of trade receivables in the current year due to the unstable environment in the construction industry resulting from the impact of the COVID-19 pandemic amongst other factors and the insolvency risk that may impact the Group’s customers.

Our procedures included, amongst others:

Assessing the Group’s expected credit loss model at year end with respect to the requirements of the accounting standard AASB 9;
Reviewing management’s memorandum and assessing the reasonableness of key assumptions used in their expected credit loss model;
• Testing the trade receivables ageing profile prepared by the Group for the purpose of placing reliance on the trade receivables ageing profile for our analysis;
Assessing the Group’s identification of credit impaired trade receivables including the basis adopted by the Group in the identification;
Challenging the identified trade receivables by taking into account past payment trends, industry

Independent Auditor’s Report for the year ending 30 June 2022

data and observable data specific to the relevant customers and to customers that are more than 90 days past due;

Assessing the Group’s disclosures in relation to trade receivables’ credit risk, by comparing these disclosures to the requirements of the accounting standards.

Information other than the financial report and auditor’s report thereon

The Directors are responsible for the other information. The other information comprises the information included in the Group’s annual report for the year ended 30 June 2022 but does not include the financial report and our auditor’s report thereon.

Our opinion on the financial report does not cover the other information and we do not express any form of assurance conclusion thereon.

In connection with our audit of the financial report, our responsibility is to read the other information and, in doing so, consider whether the other information is materially inconsistent with the financial report or our knowledge obtained in the audit or otherwise appears to be materially misstated.

If, based on the work we have performed, we conclude that there is a material misstatement of this other information, we are required to report that fact. We have nothing to report in this regard.

Responsibilities of the Directors for the financial report

The Directors of the Company are responsible for the preparation of the financial report that gives a true and fair view in accordance with Australian Accounting Standards and the Corporations Act 2001 and for such internal control as the Directors determine is necessary to enable the preparation of the financial report that gives a true and fair view and is free from material misstatement, whether due to fraud or error.

In preparing the financial report, the Directors are responsible for assessing the Group’s ability to continue as a going concern, disclosing, as applicable, matters related to going concern and using the going concern basis of accounting unless the Directors either intend to liquidate the Group or to cease operations, or have no realistic alternative but to do so.

Auditor’s responsibilities for the audit of the financial report

Our objectives are to obtain reasonable assurance about whether the financial report as a whole is free from material misstatement, whether due to fraud or error, and to issue an auditor’s report that includes our opinion. Reasonable assurance is a high level of assurance, but is not a guarantee that an audit conducted in accordance with the Australian Auditing Standards will always detect a material misstatement when it exists. Misstatements can arise from fraud or error and are considered material if, individually or in the aggregate, they could reasonably be expected to influence the economic decisions of users taken on the basis of this financial report.

A further description of our responsibilities for the audit of the financial report is located at the Auditing and Assurance Standards Board website at: http://www.auasb.gov.au/auditors_responsibilities/ar1_2020.pdf.This description forms part of our auditor’s report.

Report on the remuneration report

Opinion on the remuneration report

We have audited the Remuneration Report included in pages 23 to 48 of the Directors’ report for the year ended 30 June 2022.

In our opinion, the Remuneration Report of Acrow Formwork and Construction Services Limited, for the year ended 30 June 2022 complies with section 300A of the Corporations Act 2001 .

Responsibilities

The Directors of the Company are responsible for the preparation and presentation of the Remuneration Report in accordance with section 300A of the Corporations Act 2001 . Our responsibility is to express an opinion on the Remuneration Report, based on our audit conducted in accordance with Australian Auditing Standards.

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Grant Thornton Audit Pty Ltd Chartered Accountants

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N P Smietana Partner – Audit & Assurance Sydney, 27 September 2022

Shareholder Information for the year ending 30 June 2022

Additional Information for Listed Entities (Shareholder Information)

The�shareholder�information�set�out�below�was�applicable�as�at�16�September�2022�( Reporting Date ).

Substantial Holders

Substantial Holders
Top Holders	Securities	%
PERENNIALVALUEMANAGEMENTLIMITED	25,172,301	9.90%
KENECOPROPERTYPTYLTD	13,086,667	5.25%

Holding Distribution

Analysis�of�numbers�of�equity�holders�by�size�of�holding:

Ordinary Shares

			% Issued
Holding Ranges	Holders	Total Units	Share Capital
above0uptoandincluding1,000	1,519	10,6554	0.04%
above1,000uptoandincluding5,000	488	1,325,170	0.52%
above5,000uptoandincluding10,000	276	228,1436	0.89%
above10,000uptoandincluding100,000	1,109	43,451,198	17.01%
above100,000	303	208,238,841	81.53%
Totals	3,695	255,403,199	100.00%

Unlisted Options

			% Issued
Holding Ranges	Holders	Total Units	Share Capital
above0uptoandincluding1,000	–	–	–
above1,000uptoandincluding5,000	–	–	–
above5,000uptoandincluding10,000	–	–	–
above10,000uptoandincluding100,000	–	–	–
above100,000	9	6,860,000	100%
Totals	10	6,860,000	100.00%

Performance Rights

			% Issued
Holding Ranges	Holders	Total Units	Share Capital
above0uptoandincluding1,000	–	–	–
above1,000uptoandincluding5,000	–	–	–
above5,000uptoandincluding10,000	–	–	–
above10,000uptoandincluding100,000	11	754,012	4.31%
above100,000	33	16,747,688	95.69%
Totals	44	17,501,700	100.00%

Based�on�a�closing�price�per�security�of�$0.515,�there�are�1,505�holders�with�an�unmarketable�holding�representing�a� total�92,583�shares,�amounting�to�0.04%�of�Issued�Capital.�

Voting Rights

Fully�Paid�Ordinary�Shares�–�on�a�show�of�hands�every�member�present�at�a�meeting�in�person�or�by�proxy�shall�have� one�vote�and�upon�a�poll�each�share�have�one�vote.�

Options�and�Performance�Rights�–�do�not�have�voting�rights.�

Securities subject to Voluntary Escrow

There�are�no�securities�voluntarily�escrowed.�

Unlisted Securities

Unlisted�Securities�include:�6,860,000�unlisted�options�and�17,501,700�performance�rights.�

There�are�no�holders�of�more�than�20%�in�either�the�options�or�performance�right�classes.

On-Market Buy-Back

The�Company�is�not�currently�conducting�an�on-market�buy-back.�

Shareholder Information for the year ending 30 June 2022

Top Holders

Twenty Largest Quoted Equity Security Holders

The�names�of�the�twenty�largest�holders�of�quoted�equity�securities�are�listed�below:

Position	Holder Name	Holding	% IC
1	NATIONALNOMINEESLIMITED	17,775,955	6.96%
2	HSBCCUSTODYNOMINEES(AUSTRALIA)LIMITED	15,381,933	6.02%
3	KENECOPROPERTYPTYLTD	13,086,667	5.12%
4	JPMORGANNOMINEESAUSTRALIAPTYLIMITED	12,610,535	4.94%
5	EVERGREENPARTNERSNO4LP	12,351,252	4.84%
6	CITICORPNOMINEESPTYLIMITED	11,049,866	4.33%
7	BONDSTREETCUSTODIANSLIMITED	9,000,000	3.52%
8	MARGARETANNAPROKOP	7,126,209	2.79%
9	NETWEALTHINVESTMENTSLIMITED	6,148,691	2.41%
10	MRPPROPERTYPTYLTD	4,751,043	1.86%
11	MRANDREWHAROLDKENNARD&MRSPRUDENCEALICEKENNARD	3,039,474	1.19%

12	JOSAMBAPTYLTD	2,500,000	0.98%
13	BONDSTREETCUSTODIANSLIMITED	2,206,192	0.86%
14	MARYVILLEPTYLTD	2,204,326	0.86%
15	WHOOSHKANOMINEESPTYLTD	2,184,976	0.86%
16	DRACKAPTYLTD	2,148,554	0.84%
17	MALCOLM&JUNEROSSINVESTMENTSPTYLTD	2,091,132	0.82%
18	11BELGRAVIAPTYLTD	2,085,256	0.82%
19	MRTIMOTHYJOHNEAKIN	1,469,692	0.58%
20	BRUNDEEINVESTMENTSPTYLTD	1,437,065	0.56%
	Total	130,648,818	51.15%
	Total issued capital	255,403,199	100.00%

Other Information:

There�are�no�issues�of�securities�approved�for�the�purposes�of�item�7�of�section�611�of�the�Corporations�Act�2001�(Cth)� that�have�not�yet�been�completed.

No�securities�were�purchased�on-market�during�the�reporting�period�under�or�for�the�purposes�of�an�employee� incentive scheme or to satisfy the entitlements of the holders of options or other rights to acquire securities granted under�an�employee�incentive�scheme.

Corporate Directory for the year ending 30 June 2022

COMPANY

Acrow�Formwork�and�Construction�Services�Limited

BOARD OF DIRECTORS

Mr Peter Lancken AM �|�Non-Executive�Chairman

Mr Steven Boland �|�Executive�Director

Ms Laurie Lefcourt �|�Non-Executive�Director�(Chair�of�the� Audit�and�Risk�Committee)

Mrs Melanie Allibon �|�Non-Executive�Director�(Chair�of� the�Remuneration�and�Nomination�Committee)

SHARE REGISTRY

Automic Group Level�5,�126�Phillip�Street Sydney NSW 2000

AUDITOR

Grant�Thornton�Audit�Pty�Ltd Level�17,�383�Kent�Street Sydney NSW Australia 2000

ASX CODE

ACF

Mr David Moffat �|�Non-Executive�Director

CHIEF FINANCIAL OFFICER

ACN

124�893�465

Mr�Andrew�Crowther

COMPANY SECRETARY

Mr�Lee�Tamplin

REGISTERED OFFICE

c/-�Automic�Group Level�5,�126�Phillip�Street Sydney NSW 2000

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www.acrow.com.au

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Nelligen Bridge
Replacement, NSW
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AI assistant

ACROW LIMITED — Annual Report 2022

64288_rns_2022-09-26_9fd94794-b170-42db-9d1d-45b13247849d.pdf

27 September 2022

FY22 ANNUAL REPORT RELEASE

About Acrow

For further information, please contact:

At the start of every great project since 1936.

2022 Highlights

Contents

Chairman’s Address

Organic growth drives strong results

Dividend

Board changes

In closing

Managing Director’s Report

Strong new hire contract growth

Formwork

Industrial services

Commercial scaffold

Balance sheet and cash flow

Managing Director’s Report (continued)

An employer of choice

Expansion into jump form market

Outlook

Steven Boland

Case Study: Cross River Rail

Business Overview

FORMWORK

INDUSTRIAL SERVICES

SCREENS

Overview

Overview

Overview

Overview

FY22 Commentary

FY22 Commentary

FY23 Strategy

FY23 Strategy

FY22 Commentary

FY23 Strategy

FY22 Commentary

Case Study: Rozelle Interchange

TECHNOLOGY

LOCATION

LOST TIME INJURY FREQUENCY RATE

Board of Directors

Mr Peter Lancken AM

Non-Executive Chairman

Mr Steven Boland

Executive Director

Mrs Melanie Allibon

Non-Executive Director (Chair of the Remuneration & Nomination Committee)

Mr David Moffat

Non-Executive Director

Ms Laurie Lefcourt

Key Management Team

Steven Boland

Chief Executive Officer

Andrew Crowther

Chief Financial Officer

Matthew Caporella

Chief Operating Officer

Jeffery Stewart

National Sales & Marketing Manager

Robert Parovel

Head of People & Culture

Colin Fisher

General Manager (TAS)

Jan Pienaar

General Manager (QLD)

Bill Goodall

General Manager (SA)

Conan Godrich

Jurie Roetger

National General Manager – Industrial Services

Peter Fehrenbach

General Manager (NSW)

Jason Merjane

Natform Manager (NSW)

ACROW LIMITED Annual Report 2022