New ANNUAL REPORT 2009 - BOOM Logistics · 2019. 5. 28. · (“SLT”) and the roll out of Boom's “Safety Always” approach. Key activities of the SLT are highlighted within the

ANNUAL REPORT 2009

boom_09_layout_12 15/10/09 5:34 PM Page 1

DIRECTORSR. John RobinsonTerrance A HebitonDr. Huw G DaviesTerrence C FrancisBrenden C Mitchell

COMPANY SECRETARYIona MacPherson

REGISTERED OFFICELevel 6, 55 Southbank Boulevard

SOUTHBANK VIC 3006

Telephone (03) 9207 2500

Fax (03) 9207 2400

INTERNET ADDRESSwww.boomlogistics.com.au

LEGAL ADVISERSFreehills

Minter Ellison

AUDITORSKPMG

SHARE REGISTERComputershare Investor Services Pty Limited

452 Johnston Street

Abbotsford, Victoria, 3067

Investor enquiries 1300 850 505

ANNUAL GENERAL MEETINGFriday, 27 November 2009

@ 10.30am

Crown Promenade Conference Centre

8 Whiteman Street, Southbank Victoria

Corporate Directory


1

Corporate Directory IFC

Chairman’s Report 2

Managing Director’s Report 4

Operational Review 8

Occupational Health, Safety, Environment & Quality 11

Our People 12

Corporate Governance 14

Directors’ Report 24

Financials 36

ASX Additional Information 94

Contents


2

The past year presented two contrasting operatingenvironments: The first half through to 31December 2008 was generally buoyant with soliddemand in most sectors of Boom's business. Atthe end of the first half we were able to post anafter tax operating result of $13.8 million, some4.5% ahead of the previous comparable period.This result had been built upon strong improvementin utilisation levels across the Company's crane fleetand the Boom Sherrin access hire business hadstarted to show steady revenue generation. Wewere also able to report the successful completionof a $175 million 3 year revolving credit facility plusa $32 million working capital and generaltransactional banking facility. Early indications of theimpact of the Global Financial Crisis on the realeconomy were, however, becoming evident in thepost September period with lower than expectedsales in both new and used cranes through ourJames Equipment business.

Operating conditions rapidly deteriorated in January2009 and the slowdown in business activitybecame more entrenched as the March Quarterprogressed. This experience was shared across allsectors of the economy, but the industrial basedservice companies like Boom were particularlyimpacted as customers sharply cut back onmaintenance and development activity.Construction projects also stalled as credit markets’concerns deepened and the Company was facedwith the difficult decision of reducing employeenumbers as part of an essential cost cuttingprogram. These challenging conditions erodedgains made during the first half and resulted in adisappointing year end performance.

In August, the Company announced a full yearunderlying operating result of $12 million. This wassubject to a number of one off items andimpairment charges giving rise to a net loss of$27.5 million. The majority of these accountingadjustments were directly related to the impact onBoom of the global economic crisis during thesecond half. Recognising the prevailing financialcircumstances and the Company's relatively highbalance sheet leverage Directors have not declareda final dividend, leaving the full dividend for the yearat 1 cent fully franked.

Chairman’s Report

$M FY09 FY08 % CHANGE

FY09 (TRADING)

Financial PerformanceRevenue 399.5 410.3 (3%) 399.5

EBITDA 65.7 90.0 (27%) 69.3

EBIT (7.7) 47.5 (116%) 33.4

Net Profit After Tax (27.5) 18.6 (248%) 12.0

NPAT % (6.9%) 4.5% 3.0%

John Robinson - Non-Executive Chairman


3

The Company continues to generate solid cashflows and this has allowed net debt to be reducedby $17.7 million during the year to $235.4 million,whilst also investing an additional $38 million in thebusiness; predominantly in the crane division. Therebate of tax payments associated with theprevious years' accounting adjustments haveprovided additional scope to lower borrowings andby 30 September 2009 it is expected that debt willhave been reduced by a further $17 million toapproximately $218 million. Although the Companyis meeting its debt servicing obligations andreducing overall debt levels it has been necessaryto obtain a waiver from the bank syndicate over oneof the four banking covenants. This relates to theEarnings Leverage Ratio covenant which isdetermined on a 12 month rolling basis andconsequently reflects the particularly difficult MarchQuarter. We continue to work positively with thebanks to develop a longer term solution to thisparticular covenant issue.

In the current market those companies withrelatively high balance sheet gearing haveexperienced depressed share prices and althoughBoom is progressively deleveraging its position fromoperating cash flows, it is seen as necessary totake a definitive step to deal with the issue. This hasprompted the strategic review that was announcedto the market in July. A number of opportunities arebeing assessed including the merger proposalreceived from Boom's major shareholder. Directorsexpect to be in a position to present the progressand any outcomes of the strategic review toshareholders at the Annual General Meeting to beheld in November.

In looking ahead, the worst of the economic crisisappears to be behind us although the extent ofgeneral business recovery is expected to begradual and is not yet evident in the market place.Recent announcements of major resource projects,together with infrastructure projects and othergovernment investment initiatives, present ampleopportunities to increase our activity levels when therecovery sets in. Boom is well positioned with itsstrong asset base and national footprint to benefitfrom this prospective uplift in project work, whilstalso continuing to generate growth from itsindustrial services activity.

In closing, I would like to acknowledge thededication and effort of management andemployees in a particularly challenging businessenvironment. Boom continues to be Australia'slargest lifting solutions company and our reputationfor safety and service delivery bears testament tothe Company's people.

John Robinson

Non-Executive Chairman


4

As your Chairman has indicated, the past year hasindeed been a challenging one. Despite this, wehave not lost any focus on our key objective ofbecoming the safest and leading lifting companyequal to the best in the world. This year has seensignificant progress towards Boom's goal of zeroharm to our people, customers and theenvironment. This has been achieved through theintroduction of a dedicated Safety Leadership Team(“SLT”) and the roll out of Boom's “Safety Always”approach. Key activities of the SLT are highlightedwithin the Occupational Health, Safety, Environment& Quality (“OHSE&Q”) section of this report.

Given the priority of safety within our business, as apersonal safety commitment as Managing Directorof Boom Logistics I will:

• actively promote a zero harm culture and ensurethat safety of our employees, customers and theenvironment is at the forefront of the decisions I and the Executive Team make;

• listen to employees, and engage staff andcustomers on how to deliver on zero harm;

• take a personal interest in incidents that impacton our people and our customers;

• promote both personal, team and businessaccountability for operational discipline within the business;

• support and encourage the SLT and leaders atall levels of the business to improve safetyoutcomes;

• ensure the business actively supports thetraining, education and the health & wellbeing ofour people; and

• accept responsibility for the safety outcomes ofthe Boom Logistics business.

Turning to Boom's operational and financialperformance, the 2009 financial year comprisedtwo very different halves in delivering the tradingresult of $12.0 million. There were encouragingresults in the first half of the financial year wheresignificant work by our people improved our runrate and margins from the second half of the 2008financial year. Solid foundations had been laid, withthe completion of a 3 year syndicated bankingfacility and a further strengthening of themanagement team. The full onset of the GlobalFinancial Crisis had a major impact on the secondhalf of the financial year with a significant drop inoverall demand in each of our business segments.

The key factors that impacted the Boom businesswere:

• a downturn in the resources, non-residentialconstruction and industrial services markets inthe second half;

• a slowdown in projects and production levels ofmajor customers;

• some mining and industrial sites going into careand maintenance;

• increased competitive pressures due to loweroverall market demand for lifting services; and

• a depressed capital equipment market.

Managing Director's Report

450

420

390

360

330

300

270

240

210

180

150

120

90

60

30

0

REVENUE ($M)

7.6

83.8

132.5

2002

28.7

2003 2004 2005 2006

253.8

2007 2008

350.0

410.3

2009

399.5

Brenden Mitchell - Managing Director


5

The speed and severity of the slowdown and theassociated contraction in credit markets resulted inan inventory build up and a consequential margindecline in the James Equipment business.

After a pleasing improvement from Boom Sherrin inthe first half of the year, this business was hitparticularly hard in the second half. This was feltpredominantly in access equipment where utilisationrates suffered a decline of 20%. In Queensland,where our market position is the strongest, severecoastal weather conditions also impacted revenue inthe second half.

Our core crane hire business saw strongimprovement in utilisation, margins and return oninvestment rates in the first half. However, thedownturn in the activity of core industrial andresource customers in the second half impactedBoom and a fall in average equipment utilisationlevels of 10% was experienced.

Whilst the Melbourne mobile operations and theBoom Sherrin business had already been subject torestructuring activity, with the depth of the downturnand the impacts of the Global Financial Crisisbecoming clear within the third quarter, furtherrestructure planning commenced. The mostsignificant impact of this restructure activity was130 of our people being made redundant. Duringthe restructuring process, a further 40 cranes wereidentified for sale, predominantly in the low liftingcapacity, low margin sectors. In addition, Executiveand Senior Management salaries were frozen.Restructuring and other initiatives completed duringthe year have resulted in annualised cost reductionsof more than $13 million across the business.

Given the prevailing market conditions, thoroughand detailed asset impairment testing was requiredat year end under accounting standards. As aconsequence of this work an $18.8 million non-cash impairment was made to write off the JamesEquipment goodwill. A $20.9 million non-cashimpairment was made in total to fixed assets,assets held for sale, crane stock and spare parts stock.

The James Equipment goodwill impairment wasrequired given the reduced cash flow generationfrom the James Equipment cranes sales businessoperating in the depressed capital equipmentmarket. This business operates in a cyclical marketsegment and future cash flows based on theprevailing market conditions did not providesignificant certainty to carry the goodwill associatedwith this entity.

Despite the operational and financial impactsexperienced in the second half, there was positiveprogress made in many areas across all facets ofthe business:

• the reinvestment in capital of $38 million was allfocused on the right equipment mix andstrategically aligned to contracts and corecustomer and market requirements;

• despite the second half financial performance,and after taking account of the $38 millioncapital investment noted above, the businessstill delivered a very positive cashflow outcomefor the year. This facilitated a further $17.7million net debt reduction. We have both metand exceeded all debt repayment obligationsduring the year and continue to do so today;

• whilst we experienced a lower financial result,the business continues to demonstrate itsstrong ability to generate cash. This has beendelivered through working capital improvements.Significantly, debtors days reduced from 66 to46 over the course of the year and inventorylevels reduced from their peak of $42 million inFebruary to $25 million by the end of the year;

275.0

250.0

225.0

200.01H08

256.2

2H08 1H09

253.1

246.9

2H09

235.4

NET DEBT ($M)

46.7Capital Expenditure

31.3 20.4 17.6


6

• as noted above, our SLT is in place and wehave appointed a General Manager OHSE&Q tosupport and drive our commitment to a “SafetyAlways” culture;

• our Morwell Branch was awarded the CraneIndustry Council of Australia's Lift of the YearAward for a demonstration of operationalexcellence relating to a major lift for AustralianPaper at their Maryvale Mill in Victoria. Inaddition, this team's demonstration of highlevels of skill and inventiveness also resulted inBoom receiving the People's Choice Award asvoted by our peers and suppliers. OurQueensland business was also recognised andhighly commended in these awards;

• relationships have been formed or furtherdeveloped with key stakeholders in majorindustry sectors including Energy Developmentsuch as the Gorgon Project, Wind Farms,Mining and Infrastructure;

• our core customer interface and operationalsystem has been significantly upgraded and isbeing rolled out nationally with completionscheduled for late October 2009;

• Boom has received $14.7 million plus interest inrespect of amended taxation assessmentssubmitted by Boom for the financial years ended30 June 2005 to 30 June 2008. Additional taxadjustments for the financial years ended 30June 2002 to 30 June 2004 are being preparedto enable Boom to lodge claims for a further$3.9 million tax refund plus interest; and

• key organisational development needs andtraining requirements have been identified, withtraining to be rolled out in the coming year.

Looking to the future, what is very clear is that withthe utilisation capacity within our existing fleet and arelatively high fixed cost component within ourbusiness, we are highly leveraged to a turnaround.We will be ready and well positioned to takeadvantage of an improving economy.

Your Chairman has already touched on the strategicreview which is currently underway. The strategicreview is centred on strengthening Boom's BalanceSheet, whilst ensuring Boom is able to capitalise onthe growth opportunities expected from the manyprojects planned for Australia over the next three tofive years. This focus will enable us to support andgrow with our customers, with all options consideredin the context of maximising shareholder value.

This coming year will continue to offer significantchallenges as the flow through from the GlobalFinancial Crisis is experienced. We will continue tofocus on consolidating our restructuring activity andfurther improving our operational and customerservice performance. We will be working closelywith our customers to position for the economicturnaround, and to ensure we are ready to takeadvantage of the pipeline opportunities identified toensure a positive start to the 2011 financial year.

Whatever this next year brings I know one thingwith certainty: our people are passionate aboutachieving success and will work tirelessly to deliverpositive outcomes to both our customers and ourshareholders. I thank them for their continuingefforts in what has been a very challenging year.

In closing, I would like to reaffirm that a “SafetyAlways” with zero harm approach will always be animportant priority at Boom, together with ourcontinuing commitment to delivering the best valuepossible to all of our stakeholders.

Managing Director's Report

Brenden Mitchell

Managing Director



8

BACKGROUNDBoom’s objective is to provide superior liftingsolutions capability to Australian Industry. Boommaintains a national presence and is Australia'sleading provider of integrated lifting solutions. Boomseeks to be recognised by our customers,employees, communities and shareholders as thesupplier of high value lifting solutions without injury.

BOOM'S GOALS• To be the safest and leading lifting solutions

company in Australia and equal to the best inthe world.

• To be recognised as a top performing companyof high standing and integrity delivering superiorvalue for our customers, people andshareholders.

• To be respected by the communities we are part of.

BOOM'S VALUES• Safety Always - people, community, equipment,

property, environment.

• Our Customers - driving for our customer'ssuccess.

• Our People - our diversity and different skillsmake us strong.

• Teamwork - contributing, listening, looking outfor one another and being accountable asindividuals and as a team.

• Achieving our best so that our business thrives.

BUSINESS PROFILE• Operates nationally from 52 depots.

• National Office is located in Melbourne.

• Employs 1,277 staff.

• Operates 580 cranes ranging from 5 - 500tonne.

• Over 6,000 travel tower, access equipment andgeneral hire assets.

SERVICESBoom provides a range of lifting services &solutions including:

• Managed Lifting Solutions.

• Contractual Maintenance Arrangements.

• Crane Integration for Commercial Construction.

• Engineering Services and Maintenance.

• Equipment Hire.

• Logistics and Transport.

• New and Used Crane Sales.

OPERATING SEGMENT SALES

Operational Review

Mining & Resources

Industrial

Construction (non-residential)

Infrastructure

Utilities

Government

Other

27%

32%

11%

14%1% 1%

14%

Peter O'ShannessyChief Operating Officer

Paul MartinezChief Information Officer

Iona MacPhersonChief Financial Officer& Company Secretary

Brenden MitchellManaging Director &Chief Executive Officer

SENIOR MANAGEMENT


9

OPERATIONAL IMPROVEMENTSDuring the year, Boom successfully completed arange of operational improvements including:

Management

• An enhanced, highly skilled management team,with significant experience in industrial serviceshas been created.

Financial disciplines

• $175 million three year syndicated debt facilityand a $32 million working capital facilityestablished in September 2008.

• Tax refund of $14.7 million achieved with furtherrefunds of $3.9 million expected.

• Strong emphasis on cash managementprocesses with significant improvements in cashcollections.

Operations, business development andorganisational alignment

• Restructuring and other operationalimprovements completed to deliver an expectedannualised EBITDA benefit of over $13 million.

• A new, strategic approach to relationshipmanagement developed.

• Matching skills capabilities with marketopportunities.

• Investment focus on large capacity cranes and equipment.

• Customer interface system overhauled and rollout underway.

• Continued to build on our specialised skill baseacross the business in engineering, projectmanagement and OHSE&Q management.

• Established a dedicated Projects Group withaccess to core operational expertise withinregional businesses.

• Reduced reliance on externally hired equipment.

• Remedied Boom Sherrin/Moorland Hireintegration systems issues with revenue recoveryunderway.

Safety and training

• Heightened safety focus, including therecruitment of a General Manager OHSE&Q andthe establishment of a Safety Leadership Team.

Restructure activity

• With a significant downturn in the Mining,Building and Construction and Infrastructureprojects triggered by the Global Financial Crisis,Boom reduced its workforce by 10% in thefourth quarter of 2009. This was implemented in90 days, without interruption to customerservice or industrial dispute.

Rosanna HammondGeneral Manager - HumanResources

Terese WithingtonGeneral Manager - BoomSherrin

Tony SpassopoulosExecutive General Manager -Sales & Marketing


10

DIVISIONAL OVERVIEWBoom has a national network of operations servingboth regional and capital city markets. A summaryof each region and recent highlights is set outbelow.

Western Australia

The Western Australia business consists of a largecrane services network supported by the BoomSherrin fleet of access and travel tower equipmentand the heavy haulage operations. Depots arelocated at Welshpool, Bunbury, Kwinana (NavalBase), Geraldton, Karratha, O'Connor, Wedgefieldand Port Hedland.

2008/2009 saw a strategic review and restructuringof the Western Australia business resulting in:

• A revised organisational structure to include asecond General Manager in the North Westregion to support growth, enhance customerservice and drive operational discipline.

• The closure of the Kalgoorlie and Leinsterdepots in the Goldfields region in the face of asharp decline in mining activity in the secondhalf.

• The outsourcing of several of the small mobilefleet (<25t capacity) in the Perth Metro marketconsistent with the strategic plan.

• Introduction of new fleet in the Bunbury, NavalBase, Geraldton and Port Hedland depots.

• Implementation of an enhanced access hireequipment operating structure.

The business is positioned well with an improvedfleet and sharper customer focus.

Victoria

Our Victorian operations provide a complete rangeof cranes and access equipment services from theLatrobe Valley, Braeside, Laverton, Altona andGeelong depots. In addition, the tower cranedivision, which services the Victorian building andconstruction industry, and the national crane dryhire division, Aitkin Equipment, are also based atAltona.

The strategic review of the Victorian operations ledto:

• Consolidation of properties with a reduction ofthree properties in the Melbourne Metropolitanarea and one property in Geelong.

• Simplification and flattening of the organisationalstructure eliminating one tier of managementoverhead.

• Consolidation of the mobile crane and towercrane operations under a single managementand supervisory structure.

• Opening of reporting lines of the national Aitkindry hire division into the business developmentand projects group.

Operational Review

QLD

WA

NSW

VIC

SA

TAS

Revenue by Geographical Segmentation

31%

29%

23%

14%2% 1%


11

Queensland

The Queensland business consists of an extensivenetwork of branches at Eagle Farm, Toowoomba,Moranbah, Blackwater, Middlemount, Mackay,Brisbane, Gladstone, Townsville, Ipswich and theGold and Sunshine Coasts, offering a full suite ofBoom services. The James Equipment and BoomSherrin national offices are based in Brisbane.

In 2009 Boom executed a contract renewal withBHP Billiton Mitsubishi Alliance (BMA) to supplycrane and ancillary services to BMA's coal miningfacilities located in the Bowen Basin, Queensland.

Boom and BMA have operated successfully inpartnership since 2005 and this contract renewalconfirms Boom as the markets' major supplier ofcrane services to the region and to the miningindustry.

Boom is proud to be a long term supplier to BMAand will continue to provide the highest level of costeffective services, exceptional safety performance,reliability and availability of equipment.

New South Wales

Boom provide a complete range of servicesincluding cranes, heavy haulage, rigging and accessequipment throughout this region from depotslocated in the Hunter Valley, Newcastle, Sydney andWollongong.

Tasmania

Boom Sherrin operates in Tasmania from depotslocated in Hobart, Burnie and Launceston. Theoperations are focused on the hydro power, powerauthorities, telecommunications and mining sectors.

South Australia

Boom Sherrin services are provided from depotslocated in Adelaide and Whyalla. The Adelaidehigh-rise construction market continues to beserviced by our tower crane division out ofMelbourne. The steady performance in SouthAustralia is expected to continue into next year.

OCCUPATIONAL HEALTH, SAFETY,ENVIRONMENT & QUALITY Significant structural improvements have beenmade over the last year to support Boom's goal ofzero harm. Steps have been taken to achieve theexpressed vision of being recognised by ourcustomers, employees, communities andshareholders as the supplier of high value liftingsolutions without injury.

Specifically, the Safety Leadership Team (“SLT”), areview group of the most senior operationalmanagers within the business, is actively designingthe culture necessary to deliver this vision.

Key activities over the last year are set out below:

• A number of SLT led projects have beenlaunched to standardise best safety systems andpractices across the business. Included in theseis a major focus on our front line supervisorygroup. There has been an immediate emphasiswith regard to “on the job” safety leadershiptraining with a longer term focus on operationalmanagement mentoring and coaching throughthe “Leaders of Tomorrow” developmentprogram. The deliverable from these trainingprogrammes is effective and uncompromisingsafety leadership across the business.

• A project is underway to standardisemaintenance practices across the business.This will provide the opportunity to embed asafety operational discipline around fleetmanagement evolving from operating safely inworkshops to maintaining our equipment safely.

• Certification to AS 4801 (Safety) and ISO 9001(Quality) have been retained during the year.Actively leveraging off these standards providesfor focused and targeted activities and supportsongoing continuous improvement.

• The appointment of a General Manager forOccupational Health, Safety, Environment &Quality to drive and reinforce the culturalelements of safety and flow these through tooperational management practices across thebusiness to deliver a zero harm work place.This critical safety focus will lead to anorganisation-wide operational discipline that willuniquely position Boom in the market place.


12

OUR PEOPLE

Indigenous Program

Critical to the success of our vision is that werecognise and engage indigenous people and theircommunities, commit to the development andimprovement of employment opportunities in thesecommunities, and acknowledge and build on suchculturally significant partnerships.

Boom has initiated a number of projects to supportthe development of our employees, supervisors andmanagers to be safety leaders, to commit to theprinciples of equal opportunity, to be culturallyaware and to support the regions and communitiesthey work in.

We have set a target of 16% indigenousparticipation in the Northwest and will work with ourcustomers and the communities we are part of toachieve this target.

Training & development

To enhance our peoples' capability in the requiredcore skills and competencies of effectiveorganisations, a series of training programs weredeveloped during the year. These programs arescheduled for roll out during the 2010 financial yearand are fundamental in shaping Boom's “can-do”culture. These programs include:

• Effective Leadership.

• Leaders of Today.

• Leaders of Tomorrow.

These initiatives plus our ongoing training anddevelopment in safety, operator training & ticketingand customer service will ensure our employeescontinue to build their skills and Boom grows anempowered “can-do” culture.

Operational Review



14

Corporate Governance

Brenden C Mitchell (50)B.Sc (Chem) B.Bus(Multidiscipline)Managing DirectorAPPOINTED 1 MAY 2008

Dr Huw G Davies (68)BSc (Hons), PhD (Geology)

Non-Executive DirectorAPPOINTED 15 NOVEMBER 2002

Terrence Charles Francis (63)B.E (Civil), MBA, FIE Aust,FAICD, F Fin, MAIMENon-Executive DirectorAPPOINTED 13 JANUARY 2005

Terrance Alexander Hebiton (58)

Non-Executive DirectorAPPOINTED 22 DECEMBER 2000

Rodney John Robinson (65)BSc, MG Sc, F Aus IMM

Non-Executive ChairmanAPPOINTED 15 NOVEMBER 2002

BOARD OF DIRECTORSThe Board adopts the ASX Principles of GoodCorporate Governance and Best PracticeRecommendations. Corporate governancepractices applied by the company are set outbelow:

BOARD COMPOSITIONThe Board currently has five Directors comprisingfour non-executive Directors and the executiveManaging Director. All of the non-executiveDirectors, including the Chairman, are IndependentDirectors in compliance with ASX CorporateGovernance Best Practice guidelines.

Details of the respective Directors' qualifications,directorships of other listed companies, includingthose held at any time in the three yearsimmediately before the end of the financial year,experience and other responsibilities are provided inthe Directors' Report - refer page 24 of this AnnualReport.

In compliance with the Constitution, Mr JohnRobinson being eligible, will stand for re-election atthe Annual General Meeting.

CORPORATE GOVERNANCE

The Board reinforces the requirement foruncompromised corporate behaviour andaccountability. In accordance with the ASXCorporate Governance guidelines and theCompany's commitment to best practice CorporateGovernance:

• The Board operates under a Code of Conductwhich follows the Principles as set out by theAustralian Institute of Company Directors.

• There is a Charter for the Board that defines itsresponsibilities.

• There is a regular assessment of theindependence of each Director.

• Potential conflicts of interest by Directors will bereported to the Board and if necessary,interested Directors will be excluded fromdiscussion of the relevant matter and will notvote on that matter.

• Directors provide the Company with details oftheir shareholdings in the Company and anychanges.

• Directors comply with the Company's policiesfor Continuous Disclosure, Share Trading and itsCode of Conduct.

• Directors have access, where necessary and atthe cost of the Company, to independent,external and professional advice.

• Directors have ready access to the Company'ssenior executives for direct information on theCompany's affairs.

• Directors have the benefit of Directors’ andOfficers’ Insurance.

• Directors have the benefit of an indemnity fromthe Company to the extent permitted by theCorporations Act as well as access to theCompany's Board papers on terms agreedbetween the Company and the Board.

• The Board sets the membership and terms ofreference for each Board Committee.

• Board Committees make recommendations tothe Board, they are not delegated responsibilityexcept as specifically authorised by the Board.


15


16

DIRECTORS' SHAREHOLDINGS IN THE COMPANYThere is no obligation under the Constitution for Directors to hold shares in the Company,although all presently do. Details of Directors'shareholdings are shown in the Directors' Report on page 25.

Directors and senior management of the Companyare restricted to buying or selling shares in theCompany to the six week period commencing onthe second business day after the announcementof the annual and half-yearly results or the AnnualGeneral Meeting in accordance with the Company'sSecurities Trading Policy.

If a market announcement is made outside theseperiods which results in the market having the sameprice sensitive information as the Directors andExecutives, then Directors and Executives may dealin Boom securities during the three week periodcommencing on the second business day after anysuch announcement.

Under the Policy, Directors are required to notify theCompany Secretary or General Counsel fordisclosure to the ASX within 2 days of each trade.

In accordance with the law, Directors are prohibitedfrom buying or selling shares in the Company at anytime when they are in possession of marketsensitive information.

BOARD COMMITTEESThe Board has established three committees toassist in managing its responsibilities. These are anAudit & Risk Committee, a Nomination &Remuneration Committee and an OccupationalHealth, Safety, Environment & Quality Committee.

These committees do not in anyway diminish theoverall responsibility of the Board for thesefunctions.

AUDIT & RISK COMMITTEEThe Committee currently comprises two non-executive Directors. Due to the resignation of MrsJane Harvey during 2009 there is a vacancy on theCommittee for an additional non-executive Director.The external audit partner, Managing Director, ChiefFinancial Officer and other management personnelattend these meetings by invitation.

The current members are:

• Dr Huw Davies

• Mr Terrence Francis

The responsibilities of the Audit & Risk Committeeare contained within its Charter and include:

• Ensuring there are adequate policies in relationto risk management, compliance and internalcontrols.

• Ensuring there is ongoing monitoring andassessment of the risk management,compliance and internal control systems.

• Monitoring the activities and effectiveness of theinternal audit function.

• Overseeing and monitoring integrity of financialreporting.

• Reviewing draft annual and half-yearly financialstatements with management and externalauditors and making recommendations to thefull Board.

• Reviewing and monitoring the Company'scompliance with law and ASX Listing Rules.

• Reviewing performance against the Company'sCode of Conduct.

• Reporting regularly to the Board on its activitiesand findings.

• Assessing and monitoring of enterprise-wide riskto the Company including ensuring systems andprocedures for compliance with riskmanagement policies are in place and operatingeffectively.

• Other responsibilities as required by the Boardor considered appropriate.

• Making recommendations for the appointmentor removal of the external and the internalauditors.

• Monitoring the ongoing independence of theexternal auditor.



17

The company and Audit & Risk Committee policy isto appoint external auditors who clearlydemonstrate quality and independence. Theperformance of the external auditor is reviewedannually and applications for tender for externalaudit services are requested as deemedappropriate, taking into consideration assessmentof performance, existing value and tender costs.

In accordance with a recommendation by the Audit& Risk Committee, the Board sought and receivedshareholder approval to appoint KPMG as theCompany's external auditor at the 2008 AnnualGeneral Meeting. As a result, a new auditengagement partner was introduced for the yearended 30 June 2009.

It is KPMG's policy to rotate audit engagementpartners on listed companies every five years and inaccordance with that policy appoint a new auditengagement partner.

KPMG has declared its independence to the Boardthrough is representations to the Committee andprovision of its Statement of Independence to theBoard, stating that they have maintained theirindependence in accordance with the provisions ofAPES 110 - Code of Ethics for ProfessionalAccountants and the applicable provisions of theCorporations Act 2001.

An analysis of fees paid to the external auditors,including a break-down of fees for non-auditservices, is provided in the Directors' Report and innote 29 to the financial statements.

The external auditor will attend the Annual GeneralMeeting and be available to answer shareholderquestions about auditor independence, accountingpolicies adopted by the Company, the conduct ofthe audit and the preparation and content of theaudit report.

NOMINATION &REMUNERATION COMMITTEEThe committee comprises two non-executiveDirectors. The current members are:

• Mr John Robinson - Chairman

• Dr Huw Davies

The responsibilities of the Nomination andRemuneration Committee include:

• Assessing the necessary competencies ofBoard members.

• Establishing and reviewing the Boardsuccession plans.

• Evaluating the Board's performance.

• Considering and recommending to the fullBoard the appointment and removal ofDirectors.

• Reviewing and recommending the remunerationof non-executive Directors, the Chief ExecutiveOfficer and direct reports.

• Reviewing and recommending remunerationpolicies applicable to Directors, seniorexecutives and Company employees generally.

• The committee has particular responsibility forthe annual review and consideration of the Chief Executive Officer's remuneration structure.

• Reviewing and recommending generalremuneration principles, including incentiveschemes, bonuses, and share plans that rewardindividual team performance.

The Nomination & Remuneration Committee isresponsible for the ongoing evaluation of the Board,its committees and individual directors andexecutives.

The executive management team participates in the Company's performance management anddevelopment process. This is a performancereview program which has been designed toprovide a link between the Company business plan,vision, values, and employee's performance.Executives are evaluated biannually and theirperformance is compared against set standardsand business objectives. The result of thesereviews are utilised when determining executiveremuneration.


18

A process developed by an independent consultingorganisation has been used to evaluate Boardperformance on an annual basis.

As part of its ongoing commitment to continualimprovement, the Nomination & RemunerationCommittee will be conducting periodic formal Boardperformance assessments throughout the year.

In discharging its responsibilities, the committeedraws on advice from external consultants.

When a new Director is to be appointed, theCommittee reviews the range of skills, experienceand expertise on the Board, identifies its needs andprepares a short-list of candidates with appropriateskills and experience.

Where necessary, advice is sought fromindependent search consultants. The full Boardthen appoints the most suitable candidate basedon specified selection and appointment criteria.Newly appointed directors must submit themselvesto shareholders for election at the first AnnualGeneral Meeting following their appointment.

New Directors are provided with a letter ofappointment setting out the Company'sexpectations including involvement with committeework, their responsibilities, remuneration, includingsuperannuation and expenses, requirement todisclose their interests and any matters which affectthe Director's independence. New Directors arealso provided with all relevant policies including theCompany's share trading policy, a copy of theCompany's Constitution, organisational chart anddetails of indemnity and insurance arrangements.

A formal induction program which covers theoperation of the Board and its Committees andfinancial, strategic, operations and risk managementissues is also provided to ensure that Directorshave significant knowledge about the Company andthe industry within which it operates.

New Directors are advised of the time commitmentrequired of them in order to appropriately dischargetheir responsibilities as a Director of the Company.Directors are required to confirm that they havesufficient time to meet this requirement. TheNomination & Remuneration Committee Charter isavailable on the Company's corporate website.

INTEGRITY AND RISK MANAGEMENT PROCESSESThe CEO and CFO have provided a writtendeclaration to the Board that the Company'sfinancial records have been properly maintained,and that the Company's financial statements andnotes give a true and fair view and comply withaccounting standards.

In addition, this declaration also confirms that thefinancial statements are founded on a soundsystem of risk management and internal controlwhich is operating effectively in all material respectsin relation to financial reporting risks.

The Company has implemented a risk managementframework and policy based on AS/NZS4360:2004; Risk Management standard and theASX Corporate Governance Principles andRecommendations. The framework is based aroundthe following risk activities:

• Risk Identification: Identify all significantforeseeable risks associated with businessactivities in a timely and consistent manner;

• Risk Evaluation: Evaluate risks using an agreedrisk assessment criteria;

• Risk Treatment/Mitigation: Develop mitigationplans for risk areas where the residual risk isgreater than tolerable risk levels; and

• Risk Monitoring and Reporting: Report riskmanagement activities and risk specificinformation to appropriate levels of managementin a timely manner.

The Board, through the Audit & Risk Committee,reviews the Risk Management Policy andframework on a regular basis and satisfies itself thatmanagement has in place appropriate systems formanaging risk and maintaining internal controls.

The CEO and senior management team areresponsible for identifying, evaluating andmonitoring risk in accordance with the riskmanagement framework. Senior management areresponsible for the accuracy and validity of riskinformation reported to the Board and also forensuring clear communication of the Board andsenior management's position on risk throughoutthe Company.



19

In particular, at the executive management andbusiness unit senior management meetings heldevery two months throughout the year, the CEOand management team review and identify keybusiness and financial risks which could prevent theCompany from achieving its objectives.

Additionally a formal risk assessment process ispart of each major capital acquisition with postacquisition reviews undertaken of major businessacquisitions, major capital expenditures orsignificant business initiatives.

OCCUPATIONAL HEALTH, SAFETY,ENVIRONMENT & QUALITY (“OHSE&Q”)COMMITTEEThe committee comprises three non-executiveDirectors. The Managing Director, Chief OperatingOfficer and the General Manager Health, Safety,Environment & Quality attend these meetings byinvitation.

The current members are:

• Mr John Robinson - Chairman

• Mr Jack Hebiton

• Mr Terrence Francis

Under its Charter, the OHSE&Q Committee'sresponsibilities include:

• Ensuring comprehensive safety strategies areput in place to eliminate injuries.

• Reviewing the Company's OHSE&Qperformance and ensuring that appropriateaction is taken to remedy any shortcomings.

• Ensuring that systems and procedures forcompliance with policy and legislation are inplace and routinely monitor them.

• Reviewing high-level risks and plans to mitigatethese risks.

• Reviewing incident trends across the Companyand associated action plans and ensureappropriate action if not satisfied.

• Undertaking detailed reviews of supportingdocumentation and draft OHSE&Q proposalsprior to seeking Board approval.

• Benchmarking the Company's performanceagainst industry counterparts and leadingorganisations.

ENVIRONMENTAL REGULATIONThe operations of the Company are subject tovarious environmental regulations under bothCommonwealth and State legislation.

In making this report, the Directors note that theCompany's operations involve the discharge andstorage of potentially hazardous materials such asfuels, oils and paints. Some of these activitiesrequire a licence, consent or approval fromCommonwealth or State regulatory bodies. Thisregulation of the Company's activities is typically ofa general nature, applying to all persons carryingout such activities, and does not in the Directors'view comprise particular and significantenvironmental regulation.

Based upon enquiries within the Company, theDirectors are not aware of any breaches ofparticular and significant environmental regulationaffecting the Company's operations.

The Directors believe the environmentalperformance of the Company is sound and that theCompany has appropriate systems in place for themanagement of its ongoing corporateenvironmental responsibilities.

CODE OF CONDUCT AND COMPANY POLICIESUnder the Code of Conduct:

• The Company will act with fairness, integrity andgood faith in its dealings with its employees,customers, subcontractors, shareholders andother stakeholders.

• The Company will strive for/or drive towards bestpractice in its internal business controls, financialadministration and accounting policies.

• Directors and employees are bound by strict rulesin the trading of Boom shares.

• The Company is committed to continuousimprovement of workplace safety with theultimate objective of no injuries to anyone,anytime.

• The Company will continually develop its clientrelationships to provide outstanding service.

• The Company has, and will keep in place,employment practices and policies that accordwith best practice including those in respect ofoccupational, health and safety, anti-discrimination and conflict of interest.


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• The Company recognises its place in thecommunity and has in place policies andpractices to protect the environment and tosupport selected community activities andprojects in the areas in which it operates.

• The Company will be transparent in its reporting,including in respect of Board and executiveremuneration.

• The Company recognises its obligations toindividuals' rights to privacy in respect ofconfidential information.

• The Company is committed to compliance withthe law in all its operations.

• The Company will enforce and monitorcompliance with the Code of Conduct throughemployment contracts, internal communicationand education as well as by periodic internalaudit.

• Directors, employees, consultants andcontractors engaged by the Company must actto ensure they maintain confidentiality, protectstakeholder rights and have an obligation toreport and investigate unethical behaviour.

TIMELY AND BALANCED DISCLOSUREThe Company adheres to policies and proceduresfor timely disclosure of material informationconcerning the Company. This includes internalreporting procedures to ensure that any materialprice sensitive information is reported to the CEOand CFO (who is also the Company Secretary) in atimely manner.

The CFO has been nominated as the personresponsible for communication with the AustralianSecurities Exchange (ASX). This role includesresponsibility for ensuring compliance with thecontinuous disclosure requirements in the ASXListing Rules and overseeing and co-ordinatinginformation disclosure to the ASX, analysts, brokers,shareholders, the media and the public.

All information disclosed to the ASX is posted onthe Company's corporate website as soon as it isdisclosed to the ASX. When analysts are briefedfollowing half year and full year resultsannouncements, the material used in thepresentations is released to the ASX prior to thecommencement of the briefing.

This information is also posted on the Company'scorporate website. Procedures have also beenestablished for reviewing whether any pricesensitive information has been inadvertentlydisclosed and, if so, this information is alsoimmediately released to the market. The Companyis committed to ensuring that all stakeholders andthe market are provided with relevant and accurateinformation regarding its activities in a timelymanner.

SHAREHOLDER COMMUNICATIONThe Company aims to keep shareholders informedof the Company's performance and all majordevelopments in an ongoing manner andencourages and promotes effective participation ofshareholders at General Meetings. Information iscommunicated to shareholders through:

• the Half-Yearly Report and Full Financial Report,Results Presentations, Operational Updates,Notice of Meetings and explanatory materialswhich are published on the Company'scorporate website and distributed toshareholders where nominated;

• the Annual General Meeting, and any otherformally convened Company meetings; and

• all other information released to the ASX isposted to the Company's corporate website.

The Company further maintains an up-to-datewebsite to complement the official release ofinformation to the market which catalogues allcommunications dating back to official listing in2003.



Boom Logistics LimitedA.B.N. 28 095 466 961

ANNUAL FINANCIAL REPORT FOR THE YEAR ENDED 30 JUNE 2009



Boom Logistics Limited A.B.N.28095466961

23

Table of ContentsNote Description Page

Directors’Report 24

Auditor’sIndependenceDeclaration 35

IncomeStatement 36

BalanceSheet 37

CashFlowStatement 38

StatementofChangesinEquity 39

1 CorporateInformation 40

2 BasisofPreparation 40

3 SummaryofSignificantAccountingPolicies 42

4 FinancialRiskManagement 53

5 RevenueandExpensesfromContinuingOperations 55

6 IncomeTax 56

7 EarningsPerShare 59

8 DividendsPaidandProposed 59

9 CashandCashEquivalents 61

10 TradeandOtherReceivables 61

11 Inventories 62

12 PrepaymentsandOtherCurrentAssets 62

13 AssetsClassifiedasHeldforSale 62

14 Investments 62

15 PlantandEquipment 63

16 IntangibleAssets 66

17 ImpairmentTestingofGoodwill 67

18 TradeandOtherPayables 68

19 InterestBearingLoansandBorrowings 68

20 Provisions 71

21 DerivativeFinancialInstruments 72

22 OtherLiabilities 72

23 ContributedEquity 72

24 RetainedEarnings 73

25 Reserves 73

26 Commitments 74

27 EmployeeBenefits 75

28 EventsAfterBalanceSheetDate 76

29 Auditor’sRemuneration 76

30 KeyManagementPersonnel 77

31 SegmentInformation 79

32 RelatedPartyDisclosure 82

33 DeedofCrossGuarantee 83

34 FinancialInstruments 85

35 Contingencies 90

Directors’Declaration 91

IndependentAuditReporttoMembersofBoomLogisticsLimited 92

ASXAdditionalInformation 94

Boom Logistics LimitedA.B.N.28095466961

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DIRECTORS’ REPORTYourDirectorsofBoomLogisticsLimited(“thecompany”)submittheirreportfortheyearended30June2009.

Directors

Rodney John RobinsonBSc,MGSc,FAusIMM(NonexecutiveChairman)(appointed15November2002)

Mr.RobinsonwasformerlyManagingDirectorandCEOofAshtonMiningLimited.HeiscurrentlyChairmanofGlobalMiningInvestmentsLimited.Duringthepastthreeyears,Mr.RobinsonhasnotheldanyASXlistedpubliccompanydirectorshipsotherthanGlobalMiningInvestmentsLimited(appointed9December2005)andPerseveranceCorporationLimited(from12February2001to26August2007).Mr.RobinsonisChairmanofBoomLogistics’Remuneration&NominationCommitteeandtheOccupationalHealth,Safety,Environment&QualityCommittee.

Brenden Clive MitchellB.Sc(Chem),B.Bus(Multidiscipline)(ManagingDirector)(appointed1May2008)

MrMitchellworkedforovertenyearsleadingmultifacetedandmulti-locationbusinessesforBramblesinAustraliaandtheUK.HehaspreviousexperienceintheFMCGsectoranduponmovingtoBrambles,Mr.Mitchellheldseniorpositionsintheequipmenthireandthehighcompliancewasteindustry.MrMitchell’slastpositionforBrambleswasleadingthecapitalandpeopleintensiveMunicipalbusinessintheUKwithrevenueof$550millionand6000employees.

Terrance Alexander Hebiton(NonexecutiveDirector)(appointed22December2000)

Mr.Hebitoncommencedhiscommercialcareerintheruralsector.In1989,heacquiredvariousbusinessinterestsassociatedwithlandandpropertyrentaldevelopments.Inthelate1990s,Mr.HebitonwasManagingDirectorofHazdonHoldingsPtyLtd.HeiscurrentlyadirectorofanumberofprivatecompaniesandwasaprincipalofAlphaCraneHire,oneofthefoundingentitiesofBoomLogistics.MrHebitonwastheCEOofBoomatitsformationandceasedbeinganexecutivedirectorin2004.

Dr. Huw Geraint DaviesBSc(Hons),PhD(Geology)(NonexecutiveDirector)(appointed15November2002)

Dr.DavieswasaGroupChiefExecutiveandDirectorofBTRNylexuntilhisretirementin1994.Sincethattimehehasbeeninvolvedintherestructuringoftheelectricityandgasindustriesandhasundertakendistribution/tradingprojectassignmentsinAsia.Hehasextensiveexperienceasbothanexecutiveandnonexecutivedirectorofpublic,privateandgovernmentbusinesses.HeiscurrentlyChairoftheGoulburnBrokenCatchmentManagementAuthority,theAdministratoroftheSECVandChairofitsExecutiveCommittee.

Terrence Charles FrancisB.E(Civil),MBA,FIEAust,FAICD,FFin,MAIME(NonexecutiveDirector)(appointed13January2005)

Mr.Francisiscurrentlyanon-executivedirectoroftheEmergencyServicesTelecommunicationsAuthority,theNorthernVictorianIrrigationRenewalProject,ANZSpecialistAssetManagementLimitedandamemberoftheCouncilofRMITUniversity.Mr.Francishasextensiveexperienceinresourcesandinfrastructuredevelopment,andinfinanceasVicePresidentofContinentalIllinoisBank,ExecutiveDirectorofDeutscheBankAustralia,andChiefExecutiveOfficerofBankofAmericainAustralia.Duringthepastthreeyears,Mr.FrancishasnotheldanyASXlistedpubliccompanydirectorshipsotherthanNylexLimited(appointed30October2003,retiredOctober2008).HeisChairoftheBoomLogistics’AuditandRiskCommittee(appointed31March2009).

CompanySecretary

Iona MacPhersonB.A.,C.A.(appointed30June2007)

Ms.MacPhersonwasappointedtothepositionofChiefFinancialOfficerandCompanySecretaryinJune2007.ShepreviouslyheldtheroleofChiefFinancialOfficerandCompanySecretaryofAustralianAirExpressPtyLtdfor4yearsandpriortothatworkedwithKPMGfor13yearsandhasbeenaCharteredAccountantforover15years.


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DIRECTORS’ REPORT (continued)

Directors’InterestsintheSharesandOptionsoftheCompany

Asatthedateofthisreport,theinterestsofthedirectorsinthesharesofBoomLogisticsLimitedwere:

NAME ORDINARY SHARES

R.J.Robinson 300,000

T.A.Hebiton 202,364

H.G.Davies 135,316

T.C.Francis 76,772

B.C.Mitchell 640,000

DirectorsRetirement

Ms.JaneMargaretHarveyresignedasanonexecutivedirectoroftheBoardandAuditandRiskCommitteeon31March2009.

DirectorsMeetings

Thenumberofmeetingsofdirectors(includingmeetingsofcommitteesofdirectors)heldduringtheyearandthenumberofmeetingsattendedbyeachdirectorwereasfollows:

NAME OF DIRECTOR BOARD OF DIRECTORS AUDIT & RISK

COMMITTEE

NOMINATION & REMUNERATION

COMMITTEE

OCCUPATIONAL, HEALTH, SAFETY, ENVIRONMENT & QUALITY COMMITTEE

Held Attended Held Attended Held Attended Held AttendedR.J.Robinson 13 13 - - 1 1 3 3

T.A.Hebiton 13 12 - - - - 3 3

H.G.Davies 13 11 5 5 1 1 - -

T.C.Francis 13 11 5 4 - - 3 2

J.M.Harveya 13 9 5 5 1 1 - -

B.C.Mitchell 13 13 5 5 - - 3 3

aAttendancepriortoresignation

CorporateStructure

BoomLogisticsLimitedisacompanylimitedbysharesthatisincorporatedanddomiciledinAustralia.BoomLogisticsLimitedhaspreparedaconsolidatedfinancialreportincorporatingtheentitiesthatitcontrolledduringthefinancialyear,whicharelistedinnote32ofthefinancialstatements.

IndemnificationandInsuranceofDirectorsandOfficers

ThecompanyhasenteredintoDeedsofAccess,IndemnityandInsurancewitheachofthedirectorsandthecompanysecretary,underwhichthecompanyindemnifies,totheextentnotprecludedbylawfromdoingso,thosepersonsagainstanyliabilitytheyincurinorarisingoutofdischargingtheirduties.

Duringthefinancialyear,thecompanyhaspaidaninsurancepremiumforthebenefitofthedirectorsandofficersofthecompanyinaccordancewithcommoncommercialpractice.Theinsurancepolicyprohibitsdisclosureoftheliabilityinsuredandtheamountofthepremium.

NatureofOperationsandPrincipalActivities

Duringtheyear,theprincipalactivityoftheconsolidatedentitywastheprovisionofliftingsolutionsandsaleofmobilecranes,associatedspareparts,andaftersalesservice.


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DIRECTORS’ REPORT (continued)OperatingandFinancialReview

Theconsolidatedentityincurredanaftertaxlossof$27,486,000forthefinancialyear.

Inlinewiththemarketguidanceon7July2009,anunderlyingfullyearoperatingresultof$12.0millionwasachieved,priortothefollowingoneoffitems:

•JamesEquipmentgoodwillimpairments($18.8m);

•Operatingasset(HeldForSaleandOther)writedown($18.3m);

•Cranestockinventorywritedown($1.5m);

•Partsinventorywritedown($1.1m);

•Oneoffredundancyandrestructurecosts($3.0m);

•Taxbenefitononeoffcharges($7.2m);and

•Closedperiods’(2002-2004)taxcharge($3.9m).

Fulldetailsoftheimpairmentsandoneoffitemsaredisclosedinnotes5and6.

Afterastrongstarttothefinancialyear,theoperatingresultwasimpactedinthesecondhalfbythedeteriorationinthemacroeconomicenvironment,specificallyleadingtothefollowingfactorsthatimpactedtheBoombusiness:

•Adownturnintheresources,non-residentialconstructionandindustrialservicesmarkets;

•Aslowdowninprojectsandproductionlevelsofmajorcustomers;

•Someminingandindustrialsitesgoingintocareandmaintenance;

•Increasedcompetitivepressuresduetoloweroverallmarketdemandforliftingservices;and

•Adepressedcapitalequipmentmarket.

ConsequencesofPerformanceonShareholderWealth

Theseoperatingresultshavehadthefollowingimpactonshareholderwealth:

2009 2008 2007

$’000 $’000 $’000

Net profit attributable to members of Boom Logistics Limited (27,486) 18,643 34,441

Dividends paid 3,422 16,729 18,589

Boomsharepricecontinuestobeimpactedbyhighgearinglevelsandtheprevailingmarketconditionsassociatedwiththeglobaleconomiccrisis.Boom’scurrentreviewofstrategicopportunitiesisfocusedonde-leveragingthebalancesheetandpositioningforthecompanyfuturegrowthwhichshouldresultinare-ratingofBoom’sshareprice.

SignificantChangesintheStateofAffairs

James Equipment

Therehasbeenan$18.8millionimpairmentofgoodwillrelatingtotheJamesEquipmentbusiness.TheimpairmentistheresultofreducedcashflowgenerationfromtheJamesEquipmentcranessalesoperatinginthedepressedcapitalequipmentmarket.Thisbusinessoperatesinacyclicalmarketsegmentandfuturecashflowsbasedontheprevailingmarketconditionsdonotprovidesignificantcertaintytocarrythegoodwillassociatedwiththisentity.

Restructure

Duringthesecondhalfoftheyear,arestructureprogrammewasundertaken.Asat30June2009,aheadcountreductionof118hadbeenachievedatacostof$1.5m.TherestructureprogrammehascontinuedandattheendofJuly2009anadditionalheadcountreductionof11wasachievedatacostof$0.3m.Thetotalannualisedbenefitoftherestructuresareexpectedtobe$12.6m.Therestructurewasundertakeninresponsetothedeclineinoveralloperatingconditionsandhasbeenmanagedtoensurethatallrevenuestreamscanbeadequatelyandsafelysupportedpost-restructure.


27

DIRECTORS’ REPORT (continued)

SignificantEventsAftertheBalanceDate

Dividend

On19August2009,thedirectorsofBoomLogisticsLimiteddeclaredthatnofinaldividendwouldbeissuedforthefinancialyearended30June2009.

Tax claim

On23July2009,thecompanywasadvisedthattheATOwouldgrantitsrequesttoopentheclosedtaxperiodsof2002and2003andsubmitaclaimfora$3.9mrefundbasedonpriorperiodaccountingcorrections.Thisclaimhasbeenlodgedandisexpectedtobefinalisedinthefirsthalfofthe2010financialyear.

LikelyDevelopmentsandExpectedResults

Thedirectorsexpectthatthecompanywillimprovetheprofitabilityofthebusinessduringthenextfinancialyear.

Directorsarecognisantoftherequirementtocontinuouslydisclosematerialmatterstothemarket.Atthistime,otherthanmattersaddressedelsewhereinthisfinancialreporttherearenomatterssufficientlyadvancedoratalevelofcertaintythatwouldrequiredisclosure.

EnvironmentalRegulationandPerformance

TheBoardconfirmsthatthecompanyhasadequatesystemsandprocessesinplacetomanageandcomplywithenvironmentalregulationsastheyapplytothecompany.

CorporateGovernance

Inrecognisingtheneedforthehigheststandardsofcorporatebehaviourandaccountability,thedirectorsofBoomLogisticsLimitedhavefollowedrecommendationssetbytheASXCorporateGovernanceCouncil.ForfurtherinformationoncorporategovernancepoliciesadoptedbyBoomLogisticsLimited,refertoourwebsite:www.boomlogistics.com.au/corporate_governance

RemunerationReport–Audited

ThisreportoutlinestheremunerationarrangementsinplacefordirectorsandexecutivesofBoomLogisticsLimitedandthegroup.

Nomination & Remuneration Committee

ThisCommitteehasresponsibilityforadvisingtheBoardonremunerationpolicyandrelatedmatters,including:

•EvaluatingperformanceoftheCEOagainstannualtargetssetbytheBoard;

•ReviewingremunerationpackagesfortheCEOandseniormanagement;

•Successionplanningamongtheseniormanagementgroup;

•SeekingoutandrecommendingnewappointeestotheBoard;and

•Reviewingdirectors’feesandBoardperformance.

TheCommitteecomprisesonlyIndependentnon-executivedirectorsandischairedbytheChairmanoftheBoard.TheCommitteedrawsuponadviceandmarketsurveydatafromexternalconsultantsindischargingitsresponsibilities.


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DIRECTORS’ REPORT (continued)RemunerationReport–Audited(continued)

Executive remuneration policy

Executiveremunerationisbaseduponthefollowingprinciples:

•Externalcompetitiveness,usingappropriateindependentmarketsurveydatacomparingBoomremunerationlevelsagainstindustrypeersintermsofcomparablejobsizeandresponsibilities;

•Internalequity,ensuringthatexecutiveremunerationacrosstheGroupisbaseduponaclearviewofthescopeofindividualpositionsandtherespectiveresponsibilities,withmotivationforcontinualimprovement;

•Ameaningfulcomponentofexecutiveremunerationis“atrisk”withentitlementdependentuponachievementofGroupandindividualperformancetargetssetbytheBoardandlinkedtoincreasingshareholdervalue;and

•Rewardforperformancerepresentsabalanceofannualandlongertermtargets.

Executive remuneration components

TherearetwoprimaryelementstotheGroup’sremunerationstructure:

Fixed annual reward (FAR)

Thiselementcomprisesbasesalary,anyfringebenefits(e.g.motorvehicleallowance)andemployercontributedsuperannuation.TheindividualFARlevelstobeappliedareestablishedonanannualbasisusingexternalsurveydataprovidedbyindependentexternalconsultants.

ThesurveydataisdrawnfromtheindustrialsectorofASXlistedenterprisesandisprovidedonacomparablebasis,takingaccountofthevariousfactorsthatdetermineindividualjobscopeandresponsibility.TheGrouptargetsthemarketmedianforeachposition,projectedaheadtothemidpointofeachyear.ThefinaldeterminationofFARforeachexecutive,asapercentageofthemarketmedian,takesaccountofindividualperformanceandexperienceintheposition.

ExecutiveshavescopetovarythecomponentsthatmakeuptheirFARandcantailortheirsalarypackagetosuitindividualrequirements.

Variable remuneration

Thiselementofrewardcomprisesashorttermandlongtermcomponent,withbothdeterminedbyfactorsrelatedtoshareholderreturns.Theproportionofthese“atrisk”paymentsinthetotalremunerationstructureisguidedbymarketsurveydataprovidedbyindependentconsultants.InthisregardBoomLogisticstargetstypicalrewardstructuresasrelatedtoindividualjobscopeandresponsibility.

(a) Short term incentive plan

TheshorttermrewardisdeterminedbytheGroup’sShortTermIncentivePlan(STIP).Theobjectivesofthisplanare:

•Tofocusseniorexecutivesonkeyannualbusinessgoalsandreinforcethelinkbetweenperformanceandreward;

•Allowscopetorecogniseexceptionalperformancethroughaslidingscaleofreward;

•Encourageteamworkaswellasindividualperformanceinmeetingannualgoals;and

•Alignrewardwithcompanyvalues.


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TheSTIPisappliedfollowingtheannualauditoftheGroup’sresultsandareviewofindividualperformanceagainstBoardagreedtargetssetatthebeginningofeachfinancialyear.AnypaymentsmadeunderthePlanoccurinSeptemberandtheincentivecostisdeductedfromthefinancialresultsbeforedeterminingtheperformancereward.Nopaymentismadeshouldresultsfallshortofindividualtargets.Individualperformancemeasuresarereseteachyearandaredeterminedbythebusinessdriversappropriatetoeachposition.

(b) Long term incentive plan

TheGroup’sLongTermIncentivePlan(LTIP)wasestablishedtoproviderewardforconsistentperformanceoverarollingthreeyearperiodwithTotalShareholderReturn(TSR)asthetarget.TSRisdeterminedonthebasisofcombineddividendandsharepricegrowth.AswiththeSTIPthelevelofrewardavailableundertheLTIPisdeterminedonthebasisofmarketsurveydataprovidedbyindependentconsultants.BoomLogisticshasadoptedthepolicyofaligningthelevelofLTIPrewardtoaveragemarketpracticeandthequantumisdeterminedbyindividualjobscopeandresponsibilityamongtheseniorexecutivegroup.

TheannualvalueoftherewardisconvertedintoBoomLogisticssharesatapricedeterminedasthevolumeweightedaverageoverthefivebusinessdaysprecedingthegrantdate.ThegrantdateistypicallysettwoweeksafterthereleasetotheASXoftheGroup’sannualresultstoensuretimeforthemarkettoadjusttothereleasedinformation,unlessshareholderapprovalisrequiredinwhichcasegrantdateissetaftertheAGM.ThebenefitdoesnotvestuntilthreeyearsfromgrantdateandvestingrequiresanaverageminimumannualTSRof15%perannumoverthethreeyearperiod,aswellascontinuationoffulltimeemploymentwiththecompanyoverthistime.

Remuneration Review

TheoperationoftheLTIPisconductedthroughanExecutiveShareTrustadministeredbyanindependentthirdparty.

Thereviewofseniorexecutiveandgeneralstaffremunerationisconductedannuallythroughaformalprocess.

SeniorexecutiveremunerationisreviewedbytheNomination&RemunerationCommitteeoftheBoardwithinputfromtheCEOinrespectofexecutivesdirectlyreportingtohim.MarketsurveydataprovidedbyexternalconsultantsiscombinedwithindividualperformanceappraisalstodeterminerecommendationstogototheBoardforapproval.ThisprocessoccursinMay/Juneofeachyearandremunerationadjustmentstakeeffectfromthebeginningofeachfinancialyear.TheCommitteehasdirectresponsibilityforreviewingCEOperformanceagainsttargetssetbytheBoardandrecommendingtotheBoardappropriateadjustmentstohisremunerationpackage.

StaffreviewsaresimilarlyconductedbytherelevantGeneralManagers,withoverviewfromtheCEOandCOO.

Executive Director Remuneration

MrMitchellhasanemploymentcontractthathasnofixedterm.BoththecompanyandMrMitchellareentitledtoterminatetheemploymentcontractonsixmonth’swrittennotice,exceptinthecaseofseriousmisconductorneglectofduty.


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MrMitchell’sremunerationpackagecomprisesthefollowingcomponents:

•Fixedannualreward(“FAR”)of$635,000perannum,inclusiveofsuperannuationcontributionsinlinewiththeSuperannuationGuaranteelegislation.MrMitchell’sFARwillbereviewedannuallyon1Julyeachyeartakingintoaccountcompanyperformance,industryandeconomicconditions,andpersonalperformance;

•Shorttermincentiveplan(“STIP”)equivalentto40%ofhisFARuponachievementofperformanceconditionssetbytheBoardonanannualbasis.ThepaymentofanybonusundertheSTIPwilltakeplaceafterthefinalisationoftheannualaccountseachyear;and

•Longtermincentiveplan(“LTIP”)equivalentto45%ofhisFARallocatedinsharesofthecompanywithathreeyearvestingcondition,butsubjecttoshareholderapprovalatthecompany’sAnnualGeneralMeeting.

Ifhisemploymentisterminatedonthegroundsofredundancyorwhereadiminutioninresponsibilityoccurs,hewillbeentitledtoreceive:

•12monthspaycalculatedinaccordancewithhisfixedannualrewardatthedateofredundancyordiminution;

•Longtermincentivegrantsthathavevestedorqualifywithinannualvestingconditions,buthavenotsatisfiedtheusualthreeyearvestinghurdle;and

•Vestedemployeeentitlements.

TheSTIPprovidesforapro-ratapaymentofbonusonterminationbutsubjecttoBoardapproval.

IntheeventthatMrMitchellissummarilydismissed,hewillbepaidfortheperiodservedpriortodismissalandanyaccruedleaveentitlements.MrMitchellwouldnotbeentitledtothepaymentofanybonusundertheSTIPorLTIPunlessapprovedbytheBoard.

Heissubjecttorestrictivecovenantsuponcessationofhisemploymentwiththecompanyforamaximumperiodofoneyear.

Theremunerationdetailsofexecutivedirectorsandseniorexecutivesaredetailedonthefollowingpages.

Board fees

Non-executivedirectorfeesaredeterminedbyreferencetoexternalsurveydata,takingaccountoftheGroup’srelativesizeandbusinesscomplexity.NoadditionalpaymentsaremadeforservingonBoardCommittees;noequityincentivesareofferedandnoretirementbenefitsarepayabletoanynon-executive.Themaximumaggregatesumfornon-executivedirectorremunerationof$400,000wasapprovedbyshareholdersatthe2004AnnualGeneralMeeting.


31


Other executives (standard contracts)

Allexecutiveshaverollingcontracts.Thecompanymayterminatetheexecutive’semploymentagreementbyproviding1-3monthswrittennoticeorprovidingpaymentinlieuofthenoticeperiod(baseduponthefixedcomponentoftheexecutive’sremuneration).Onterminationofnoticebythecompany,anyLTIPthathavevestedorthatwillvestduringthenoticeperiodwillbereleased.LTIPsharesthathavenotyetvestedwillbeforfeited.Thecompanymayterminatethecontractatanytimewithoutnoticeifseriousmisconducthasoccurred.Whereterminationwithcauseoccurstheexecutiveisonlyentitledtothatproportionofremunerationthatisfixed,andonlyuptothedateoftermination.OnterminationwithcauseanyunvestedLTIPshareswillbeforfeited.

Employee superannuation

Thecompanycurrentlycontributesthe9%superannuationguaranteedamountasrequiredbyexistingsuperannuationlegislationtoallemployeeswiththeexceptionoftheseniorexecutivegroupandgeneralmanagerswhoreceivebetween9%and15%inaccordancewiththeiremploymentcontracts.

Insurance

Amountsdisclosedforremunerationofdirectorsandspecificedexecutivesexcludeinsurancepremiumspaidbythegroupinrespectofdirectors’andofficers’liabilityinsurance.Thepremiumhasnotbeenallocatedtotheindividualscoveredbytheinsurancepolicyas,basedonallavailableinformation,thedirectorsbelievethatnoreasonablebasisforsuchallocationexists.

Compensation of non-executive directors and other key management personnel

Detailsofnon-executivedirectorsandkeymanagementpersonnelremunerationfortheyearended30June2009areasfollows:

SHORT TERM POST EMPLOYMENT LONG TERM TOTAL

Salary & Fees Cash Bonus Non-Monetary

benefits Other Super- annuation

Share based payment

Long service leave Total

Total performance

related

Non-Executive Directors

JohnRobinson

2009 120,000 - - - 10,800 - - 130,800 -

2008 120,000 - - - 10,800 - - 130,800 -

TerranceHebiton

2009 60,000 - - - 5,400 - - 65,400 -

2008 60,000 - - - 5,400 - - 65,400 -

Dr.HuwDavies

2009 60,000 - - - 5,400 - - 65,400 -

2008 60,000 - - - 5,400 - - 65,400 -

TerrenceFrancis

2009 60,000 - - - 5,400 - - 65,400 -

2008 60,000 - - - 5,400 - - 65,400 -

JaneHarvey

2009 45,000 - - - 4,050 - - 49,050 -

2008 60,000 - - - 5,400 - - 65,400 -

Total Remuneration: Non-Executive Directors

2009 345,000 - - - 31,050 - - 376,050 -

2008 360,000 - - - 32,400 - - 392,400 -


32


Compensation of non-executive directors and other key management personnel (continued)

SHORT TERM POST EMPLOYMENT LONG TERM TOTAL

Salary & Fees Cash Bonus a Non-Monetary

benefits Other b Super- annuation

Termination benefits

Share based payment c

Long service leave

Total performance

related

ExecutivesBrendenMitchell(ManagingDirector)2009 614,173 - 11 - 52,432 - 34,095 2,289 703,000 4.8%2008 74,062 - - - 41,000 - - 79 115,141 -

IonaMacPherson(ChiefFinancialOfficerandCompanySecretary)d

2009 308,926 - - - 46,957 - 15,389 3,557 374,829 4.1%2008 254,897 - - - 36,559 - 3,542 812 295,810 1.2%

PeterO’Shannessy(ChiefOperatingOfficer)e 2009 343,358 - - - 38,572 - 12,886 1,413 396,229 3.3%2008 97,958 - 87 - 10,800 - - 71 108,916 -

RosannaHammond(GeneralManager-HumanResource)2009 188,916 - 114 - 16,101 - 4,653 770 210,554 2.2%2008 56,981 - - - 4,649 - - 42 61,672 -

PaulMartinez(ChiefInformationOfficer)f

2009 261,099 - 28 - 22,294 - 10,739 219 294,379 3.6%2008 - - - - - - - - - -

TonySpassopoulos(GeneralManager-Sales&Marketing)g 2009 194,423 - - - 16,991 - 8,949 166 220,529 4.1%2008 - - - - - - - - - -

TereseWithington(GeneralManager-SherrinHirePtyLtd)h

2009 262,658 - - 25,481 32,413 - 7,159 1,154 328,865 2.2%2008 118,965 - 4,800 11,058 13,129 - - 79 148,031 -

JamesCarr(formerGeneralManager-Sales&Marketing)i

2009 35,090 - 2,476 - 3,229 - - - 40,795 -2008 169,721 - 6,839 - 19,200 - 2,370 984 199,114 1.2%

MarkLawrence(formerManagingDirector)j

2008 292,182 13,750 1,524 - 62,833 80,519 - - 450,808 3.1%

BrianPraetz(formerChiefOperatingOfficer)k

2008 114,889 12,500 232 5,000 18,747 - - - 151,368 8.3%

AdamWatson(formerExecutiveGeneralManager-StrategicDevelopment)l

2008 211,982 - 87 - 14,477 87,292 - - 313,838 -

StevenGoulding(formerGeneralManager-SherrinHirePtyLtd)m

2008 125,897 37,720 15,933 - 6,790 13,750 - - 200,090 18.9%

Total Remuneration: Executives2009 2,208,643 - 2,629 25,481 228,989 - 93,870 9,568 2,569,180 -2008 1,517,534 63,970 29,502 16,058 228,184 181,561 5,912 2,067 2,044,788 -

Total Remuneration: Non-Executive Directors and Executives – Group2009 2,553,643 - 2,629 25,481 260,039 - 93,870 9,568 2,945,230 -2008 1,877,534 63,970 29,502 16,058 260,584 181,561 5,912 2,067 2,437,188 -

Total Remuneration: Non-Executive Directors and Executives – Parent2009 2,290,985 - 2,629 - 227,626 - 86,711 8,414 2,616,365 -2008 1,632,672 26,250 8,769 5,000 240,665 167,811 5,912 1,988 2,089,067 -

Refertonote30forfurtherdetails.


33



a CashbonusisdeterminedinaccordancewiththeShortTermIncentivePlanoutlinedonpage28.ThecashbonusisinrelationtotheSTIPinthepreviousfinancialyear.Approvalforanybonusoccursaftertheendofthefinancialyear.AsaresultofGrouptargetsnotbeingmet,noshorttermcashbonuseswereawardedduringthe2009financialyear.

b Otherrepresentsmotorvehicleallowance.

c SharebasedpaymentrepresentsordinarysharesinBoomLogisticsLimitedissuedfornilconsideration.Forthepurposeofthisdisclosure,theordinaryshareshavebeenvaluedatfairvalueatthegrantdatebeing$0.520pershare(2008:$0.780pershare).Thesharebasedpaymentvestsoverarolling3yearperiodfromgrantdate.In2009,onlytheexpenserelatingtothisperiodhasbeenrecognisedinaccordancewithaccountingpolicynote3(r).

d IonaMacPhersonisadirectorofallofBoomLogisticsLtd’ssubsidiaries.

e PeterO’ShannessyisadirectorofallofBoomLogisticsLtd’ssubsidiaries.

f PaulMartinezwasappointedChiefInformationOfficeron1October2008.

g TonySpassopouloswasappointedGeneralManagerofSalesandMarketingon27October2008.

h TereseWithingtonisconsideredakeymanagementpersonnelfortheGroup.

i JamesCarrresignedasGeneralManagerofSalesandMarketingon22August2008.Consequently,allsharebasedpaymentsissuedtoMrCarrincluding11,967ordinarysharesgrantedinAugust2007atafairvalueatthatdateof$0.780persharewereforfeitedasthe3yearvestingconditionwasnotmet.

j MarkLawrenceresignedasManagingDirectoron1February2008.Consequently,allsharebasedpaymentsissuedtoMrLawrenceincluding100,037ordinarysharesgrantedinAugust2007atafairvalueatthatdateof$0.780persharewereforfeitedasthe3yearvestingconditionwasnotmet.

k BrianPraetzresignedasChiefOperatingOfficeron30November2007.Consequently,allsharebasedpaymentsissuedtoMrPraetzincluding25,243ordinarysharesgrantedinAugust2007atafairvalueatthatdateof$0.780persharewereforfeitedasthe3yearvestingconditionwasnotmet.

l AdamWatsoncommencedemploymentwithBoomLogisticsLimitedon23July2007andresignedasExecutiveGeneralManager-StrategicDevelopmenton30April2008.Consequently,allsharebasedpaymentsissuedtoMrWatsonincluding17,886ordinarysharesgrantedinAugust2007atafairvalueatthatdateof$0.780persharewereforfeitedasthe3yearvestingconditionwasnotmet.

m StevenGouldingresignedasGeneralManager-SherrinHirePtyLtdon30October2007.MrGouldingwasconsideredakeymanagementpersonnelfortheGroup.

Otherthanthosenotedabove,noothersharesvestedorwereforfeitedduringtheyear.


34



Shares granted as part of remuneration for the year ended 30 June 2009 (in accordance with the LTIP)

Name Year Grant date

Grant number

Vesting date

Fair value per share at grant date

TSR benchmark % of total remuneration

Brenden Mitchell 2009 27 Oct 08 287,186 27 Oct 11 $0.520 > 15% avg over 3 yrs 21.2%

Iona MacPherson 2009 27 Oct 08 90,452 27 Oct 11 $0.520 > 15% avg over 3 yrs 12.5%

2008 29Aug07 17,886 29Aug10 $0.780 >12%avgover3yrs 4.6%

Peter O’Shannessy 2009 27 Oct 08 108,543 27 Oct 11 $0.520 > 15% avg over 3 yrs 14.2%

Rosanna Hammond 2009 27 Oct 08 39,196 27 Oct 11 $0.520 > 15% avg over 3 yrs 9.7%

Paul Martinez 2009 27 Oct 08 90,452 27 Oct 11 $0.520 > 15% avg over 3 yrs 16.0%

Tony Spassopoulos 2009 27 Oct 08 75,377 27 Oct 11 $0.520 > 15% avg over 3 yrs 17.8%

Terese Withington 2009 27 Oct 08 60,301 27 Oct 11 $0.520 > 15% avg over 3 yrs 9.5%

JamesCarri 2008 29Aug07 11,967 29Aug10 $0.780 >12%avgover3yrs 4.7%

MarkLawrencej 2008 29Aug07 100,037 29Aug10 $0.780 >12%avgover3yrs 17.3%

BrianPraetzk 2008 29Aug07 25,243 29Aug10 $0.780 >12%avgover3yrs 13.0%

AdamWatsonl 2008 29Aug07 17,886 29Aug10 $0.780 >12%avgover3yrs 4.4%

Auditor’sIndependenceDeclarationtotheDirectors

Theauditor’sindependencedeclarationissetoutonpage35andformspartofthedirectors’reportforthefinancialyearended30June2009.

Non-auditservices

Thefollowingnon-auditserviceswereprovidedbyKPMG,theentity’sauditor.Thedirectorsaresatisfiedthattheprovisionofnon-auditservicesiscompatiblewiththegeneralstandardofindependenceforauditorsimposedbytheCorporationsAct.Thenatureandscopeofeachtypeofnon-auditserviceprovidedmeansthatauditorindependencewasnotcompromised.

KPMGreceivedorareduetoreceivethefollowingamountsfortheprovisionofnon-auditservices:

•Taxandduediligenceservices $452,986

Rounding

TheamountscontainedinthisreportandinthefinancialreportarepresentedinAustraliandollarsandhavebeenroundedtothenearest$1,000(whereroundingisapplicable)undertheoptionavailabletothecompanyunderASICClassOrder98/0100.ThecompanyisanentitytowhichtheClassOrderapplies.

Signedinaccordancewitharesolutionofthedirectors.

John Robinson Brenden Mitchell Chairman ManagingDirector

Melbourne,19August2009


35


36

Income StatementYearEnded30June2009

CONSOLIDATED PARENT Note 2009 2008 2009 2008

$’000 $’000 $’000 $’000

REVENUE FROM CONTINUING OPERATIONS 5(a) 399,504 410,267 262,922 222,900

Salariesandemployeebenefitsexpense 5(b) (151,971) (144,686) (112,558) (100,299)

Equipmentserviceandsuppliesexpense (90,671) (83,822) (72,528) (61,491)

Costofsalesassociatedwithcranes 5(b) (41,724) (53,475) - -

Operatingleaseexpense (12,152) (9,720) (7,047) (5,152)

Otherexpenses (31,621) (28,501) (25,955) (18,964)

PROFIT BEFORE RESTRUCTURING ExPENSES, FINANCING ExPENSES, DEPRECIATION AND AMORTISATION, IMPAIRMENT OF ASSETS AND INCOME TAx 71,365 90,063 44,834 36,994

Restructuringexpense (3,042) - (2,730) -

PROFIT BEFORE FINANCING ExPENSES, DEPRECIATION AND AMORTISATION, IMPAIRMENT OF ASSETS AND INCOME TAx 68,323 90,063 42,104 36,994

Depreciationandamortisationexpense 5(b) (36,347) (40,214) (15,080) (18,851)

Impairmentexpense 5(b) (39,721) (2,327) (10,894) -

(LOSS)/PROFIT BEFORE FINANCING ExPENSES AND INCOME TAx (7,745) 47,522 16,130 18,143

Financingexpenses 5(b) (18,172) (19,671) (12,927) (9,613)

(LOSS)/PROFIT BEFORE INCOME TAx (25,917) 27,851 3,203 8,530

Incometaxexpense 6(a) (1,569) (9,208) (4,585) (2,562)

NET (LOSS)/PROFIT ATTRIBUTABLE TO MEMBERS OF BOOM LOGISTICS LIMITED

(27,486) 18,643 (1,382) 5,968

Basicearningspershare(centspershare) 7 (16.1) 10.9

Dilutedearningspershare(centspershare) 7 (16.1) 10.9

Frankeddividendspershare(centspershare) 8 1.0 5.5

TheaccompanyingnotesformanintegralpartofthisIncomeStatement.


37

Balance SheetAsat30June2009


$’000 $’000 $’000 $’000 CURRENT ASSETSCashandcashequivalents 9(a) 10,588 1,801 8,084 590

Tradeandotherreceivables 10 52,015 77,071 118,989 72,882

Inventories 11 24,995 20,566 361 364

Prepaymentsandothercurrentassets 12 5,002 5,243 3,620 3,538

Assetsclassifiedasheldforsale 13 7,798 6,218 7,742 3,308

Incometaxreceivable 8(c) 12,949 - 12,949 -

TOTAL CURRENT ASSETS 113,347 110,899 151,745 80,682

NON CURRENT ASSETSInvestments 14 - - 80,515 80,515

Plantandequipment 15 351,856 378,638 209,464 219,294

Deferredtaxassets 6(c) 4,763 4,013 3,679 3,235

Intangibleassets 16(b) 91,509 112,404 41,850 42,926

TOTAL NON-CURRENT ASSETS 448,128 495,055 335,508 345,970

TOTAL ASSETS 561,475 605,954 487,254 426,652

CURRENT LIABILITIESTradeandotherpayables 18 23,540 44,081 44,097 47,384

Interestbearingloansandborrowings 19 45,569 155,613 22,261 87,347

Provisions 20 13,059 11,871 10,361 8,932

Incometaxpayable - 404 - 404

Derivativefinancialinstruments 21 403 - - -

Otherliabilities 22 6,482 7,340 3,774 6,042

TOTAL CURRENT LIABILITIES 89,054 219,309 80,493 150,109

NON CURRENT LIABILITIESInterestbearingloansandborrowings 19 200,370 99,276 165,018 43,388

Provisions 20 661 518 411 285

Deferredtaxliabilities 6(c) 26,670 11,306 15,513 2,346

TOTAL NON-CURRENT LIABILITIES 227,700 111,100 180,942 46,019

TOTAL LIABILITIES 316,754 330,409 261,435 196,128

NET ASSETS 244,721 275,545 225,819 230,524

EQUITYContributedequity 23(b) 234,476 234,476 234,476 234,476

Retainedearnings 24 9,832 40,740 (9,058) (4,254)

Reserves 25 413 329 401 302

TOTAL EQUITY 244,721 275,545 225,819 230,524

TheaccompanyingnotesformanintegralpartofthisBalanceSheet.


38

Cash Flow StatementYearEnded30June2009


$’000 $’000 $’000 $’000

CASH FLOwS FROM OPERATING ACTIVITIESReceiptsfromcustomers 460,574 445,950 290,741 245,306

Paymentstosuppliersandemployees (376,016) (352,178) (237,456) (191,826)

Interestpaid (17,882) (19,671) (12,637) (9,613)

Interestreceived 1,125 473 1,061 1,278

Incometaxpaid (207) (7,053) (207) (7,053)

NET CASH PROVIDED BY OPERATING ACTIVITIES 9(b) 67,594 67,521 41,502 38,092

CASH FLOwS FROM INVESTING ACTIVITIESPurchaseofplantandequipment (37,964) (28,552) (28,650) (21,214)

Proceedsfromthesaleofplantandequipment 10,804 1,794 8,399 749

NET CASH (USED IN) INVESTING ACTIVITIES (27,160) (26,758) (20,252) (20,465)

CASH FLOwS FROM FINANCING ACTIVITIESProceedsfromborrowings 125,144 - 125,144 16,530

Repaymentofborrowings (153,369) (32,059) (135,478) (21,425)

Paymentofdividends 8(a) (3,422) (16,729) (3,422) (16,729)

NET CASH (USED IN) / PROVIDED BY FINANCING ACTIVITIES (31,647) (48,788) (13,756) (21,624)

Netincrease/(decrease)incashandcashequivalents 8,787 (8,025) 7,494 (3,997)

Cashandcashequivalentsatthebeginningoftheperiod 1,801 9,826 590 4,587

CASH AND CASH EQUIVALENTS AT THE END OF THE PERIOD 9(a) 10,588 1,801 8,084 590

TheaccompanyingnotesformanintegralpartofthisCashFlowStatement.


39

Statement of Changes in EquityYearEnded30June2009

CONSOLIDATED

Note

IssuedCapital

$’000

RetainedEarnings

$’000

Cash flowHedge

Reserve $’000

EmployeeBenefitsReserve $’000

TotalEquity

$’000

AT 1 JULY 2007 234,476 38,827 (976) 293 272,620

Profitfortheyear - 18,643 - - 18,643

Costofsharebasedpayments 25 - - - 21 21

Equitydividends 8(a) - (16,729) - - (16,729)

Gain/(loss)takentoequity 25 - - 991 - 991

AT 30 JUNE 2008 234,476 40,740 15 314 275,545

Lossfortheyear - (27,486) - - (27,486)



Gain/(loss)takentoequity 25 - - (15) - (15)

AT 30 JUNE 2009 234,476 9,832 - 413 244,721

PARENT

AT 1 JULY 2007 234,476 6,507 - 281 241,264

Profitfortheyear - 5,968 - - 5,968



AT 30 JUNE 2008 234,476 (4,254) - 302 230,524

Lossfortheyear - (1,382) - - (1,382)



AT 30 JUNE 2009 234,476 (9,058) - 401 225,819

TheaccompanyingnotesformanintegralpartofthisStatementofChangesinEquity.


40

Notes to the Financial StatementsYearEnded30June2009

1. CORPORATE INFORMATION

ThefinancialreportofBoomLogisticsLimitedfortheyearended30June2009wasauthorisedforissueinaccordancewitharesolutionofthedirectorson19August2009.

BoomLogisticsLimitedisacompanylimitedbysharesincorporatedinAustraliawhosesharesarepubliclytradedontheAustralianStockExchange.

ThenatureoftheoperationsandprincipalactivitiesoftheGrouparedescribedinnote31.

2. BASIS OF PREPARATION

(a) Statement of compliance

ThefinancialreportisageneralpurposefinancialreportwhichhasbeenpreparedinaccordancewithAustralianAccountingStandards(AASBs)(includingAustralianInterpretations)adoptedbytheAustralianAccountingStandardsBoard(AASB)andtheCorporationsAct2001.TheconsolidatedfinancialreportoftheGroupandthefinancialreportofthecompany(“Parent”)complywithInternationalFinancialReportingStandards(IFRSs)andinterpretationsadoptedbytheInternationalStandardsBoard(IASB).

(b) Historical cost convention

ThefinancialreporthasbeenpreparedinaccordancewiththehistoricalcostconventionandinAustraliandollarsroundedtothenearestthousanddollars($’000)inaccordancewithASICClassOrder98/0100unlessotherwisestated.

(c) Critical accounting estimates

Thepreparationoffinancialstatementsrequirestheuseofcertaincriticalaccountingestimates.ItalsorequiresmanagementtoexerciseitsjudgementintheprocessofapplyingtheGroup’saccountingpolicies.Theareasinvolvingahigherdegreeofjudgementorcomplexity,orareaswhereassumptionsandestimatesaresignificanttothefinancialstatements,aredisclosedinthefollowingnotes:

Impairment testing of goodwill

TheGrouptestsannuallywhethergoodwillhassufferedanyimpairment,inaccordancewiththeaccountingpolicystatedinnote3(l).Therecoverableamountsofcash-generatingunitshavebeendeterminedbasedonvalue-in-usecalculations.Thesecalculationsrequiretheuseofassumptions.Refertonote17fordetailsoftheseassumptions.

Useful lives and residual values of plant and equipment

TheGroup’smanagementdeterminestheestimatedusefullivesofassetsandrelateddepreciationchargesforitsplantandequipmentbasedontheaccountingpolicystatedinnote3(j).Theseestimatesarebasedonprojectedcapitalequipmentlifecyclesfortherelatedsegmentforperiodsuptotwentyyearsbasedonusefullifeassumptions.

ResidualvaluesaredeterminedbasedonthevaluetheGroupwouldderiveuponultimatedisposaloftheindividualpieceofplantandequipmentattheendofitsusefullife.Theachievementoftheseresidualvaluesisdependentuponandcouldbeimpactedasaresultoftheindustrialcycle.

Managementwillincreasethedepreciationchargewhereusefullivesarelessthanpreviouslyestimatedlivesorthereisevidencethatresidualvaluescannotbeachieved.

Going concern assumption

Akeyassumptionunderlyingthepreparationoffinancialstatementsisthattheconsolidatedentitywillcontinueasagoingconcern.Anentityisagoingconcernwhenitisconsideredtobeabletopayitsdebtsasandwhentheyaredue,andcontinueinoperationwithoutanyintentionornecessitytoliquidateorotherwisewindupitsoperations.Asignificantamountofjudgementisrequiredinassessingwhethertheconsolidatedentityisagoingconcernassetoutin2(d).

Deferred Tax

Judgementandestimationisrequiredoverthecalculationandrecognitionofdeferredtaxbalances.

Theprincipalaccountingpoliciesadoptedinthepreparationofthefinancialreportaresetoutbelow.Thesepolicieshavebeenconsistentlyappliedtoalltheyearspresented,unlessotherwisestated.Certaincomparativeamountshavebeenreclassifiedtoconformwiththecurrentyear’spresentation.

TheGrouphasnotelectedtoearlyadoptanyaccountingstandardsoramendments(refertonote3(z)).


41


2. BASIS OF PREPARATION (CONTINUED)

(d) Going concern

Asannouncedtothemarketon7July2009,asaconsequenceofthemarketdownturnexperiencedinthesecondhalfofthe2009financialyear,theGroupwouldhavebreacheditsEarningsLeverageRatiocovenantinitsSyndicatedFacilityAgreementasat30June2009.However,priorto30June2009,BoomreceivedanunconditionalwaiverinrelationtothiscovenantfromitsBankingSyndicatefortheperiodended30June2009.

TheGroupwasincompliancewithallotherbankingcovenantsat30June2009.ThesecompriseaBalanceSheetGearingRatio,anAssetLeverageRatioandaDebtServiceCoverRatio.Thesecovenantsareallforecasttobecompliedwithinthefuture.

OfparticularrelevanceistheDebtServiceCoverRatiowhichservesasanindicatorofBoom’sabilitytoserviceallitsdebtobligationsaftertakingaccountofallothercashflowsofthebusiness.Asat19August2009,theGrouphasbothmetandexceededallrequiredpaymentsunderitsSyndicatedFacilityAgreement,allscheduledprincipalandinterestrepaymentsunderitsfinanceleasesandallscheduledpaymentsunderitsoperatingleases.Thepositionisforecasttocontinueinthefuture.

Giventheuncertaintyoverarecoveryinthecurrenteconomicclimateandtheassociatedmarketconditions,managementhavepreparedtheirfinancialforecastsforthe2010financialyearassumingnochangeintheprevailingmarketconditions.

Basedonthisassumptionandtherestructuringinitiativesunderway,andwhilsttheDirectorsareundertakingathoroughreviewofotherstrategicopportunities,thereisuncertaintyovertheGroup’sabilitytomeettheEarningsLeverageRatioduringthe2010financialyear.Asnotedabove,theDirectorshaveahighexpectationthatallothercovenantswillcontinuetobemet.

ShouldtheGroupbeunabletomeetorresolvethisdebtcovenantmatteratafuturedate,theBankingSyndicatewouldhavethediscretiontodeclareaneventofdefault.ShouldtheBankingSyndicatedeclareaneventofdefaultandshouldthemajorityofthesyndicatememberssodirect,theBankingSyndicatewouldhavetheabilitytorequestimmediaterepaymentoftheoutstandingamountofthesyndicateddebt.At30June2009,thesyndicateddebttotalled$156million(refernote19).

Notwithstandingthis,theGroupcontinuestoworkpositivelywithitsbankstoresolvetheEarningsLeverageRatiocovenantmatter.TheDirectorsconsiderthatthereisahighlikelihoodthatarrangementswillbeagreedwiththeBankingSyndicatetoresolvetheEarningsLeverageRatiomatterastheGroupcontinuesitsstrategicreviewofthebusiness.Thisstrategicreviewincludesconsiderationofapossiblemerger,equityraisingandotheropportunities.Itisimportanttonotethatoneobjectiveofthestrategicreviewistodeleveragethebalancesheet.TheDirectors’positionissupportedbytheGroup’scashflowforecastswhichdemonstratetheGroup’sabilitytomeetalldebtrepaymentobligationsasandwhentheyfalldue.TheDirectorsnotethatcashflowshavebeensignificantlystrengthenedduetotherecenttaxrefunds(refernote6).

Consequently,theDirectorshaveahighexpectationthattheGroupwillresolvetheEarningsLeverageRatiomatter.Accordingly,thefinancialstatementshavebeenpreparedonagoingconcernbasis.


42


3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES

(a) Basis of consolidation

Subsidiaries

TheconsolidatedfinancialstatementscomprisethefinancialstatementsofBoomLogisticsLimitedanditssubsidiariesasat30Juneeachyear(“theGroup”).

Thefinancialstatementsofsubsidiariesarepreparedforthesamereportingperiodastheparentcompany,usingconsistentaccountingpolicies.

SubsidiariesareentitiescontrolledbytheGroup.ControlexistswhentheGrouphasthepowertogovernthefinancialandoperatingpoliciesofanentitysoastoobtainbenefitsfromitsactivities.Thefinancialstatementsofsubsidiariesareincludedintheconsolidatedfinancialstatementsfromthedatethatcontrolcommencesuntilthedatethatcontrolceases.TheaccountingpoliciesofsubsidiarieshavebeenchangedwhennecessarytoalignthemwiththepoliciesadoptedbytheGroup.

Intheparentcompanyfinancialstatements,investmentsinsubsidiariesarecarriedatcost.

ThepurchasemethodofaccountingisusedtoaccountfortheacquisitionofsubsidiariesbytheGroup.

Intra-groupbalances,andanyunrealisedincomeandexpensesarisingfromintra-grouptransactions,areeliminatedinpreparingtheconsolidatedfinancialstatements.

(b) Revenue recognition

RevenueisrecognisedtotheextentthatitisprobablethattheeconomicbenefitswillflowtotheGroupandtherevenuecanbereliablymeasured.Thefollowingspecificrecognitioncriteriamustalsobemetbeforerevenueisrecognised:

Rendering of services

Revenuefromthehireoflifting/accessequipmentandservicesprovided,andtherepairsofcranesandotherequipmentisrecognisedwheretherighttobecompensatedfortheservicescanbereliablymeasured.Wherethestageofcompletioncannotbereliablymeasured,revenueisrecognisedonlytotheextentthatcostshavebeenincurred.

Sale of goods

Revenuefromthesaleofcranesismeasuredatthefairvalueoftheconsiderationreceivedorreceivable,netofdiscounts.Revenueisrecognisedwhenthesignificantrisksandrewardsofownershiphavebeentransferredtothebuyer,recoveryoftheconsiderationisprobable,thereisnocontinuingmanagementinvolvementwiththegoods,andtheamountofrevenuecanbemeasuredreliably.Transferoccursuponreceiptofthecranebythecustomer.

Interest revenue

Interestrevenueisrecognisedonatimeproportionatebasisusingtheeffectiveinterestmethod.

(c) Borrowing costs

Borrowingcostsarerecognisedinprofitorlossintheperiodinwhichtheyareincurred.

(d) Leases

Financeleases,whichtransfertotheGroupsubstantiallyalltherisksandbenefitsincidentaltoownershipoftheleaseditem,arecapitalisedattheinceptionoftheleaseatthefairvalueoftheleasedpropertyor,iflower,atthepresentvalueoftheminimumleasepayments.

Leasepaymentsareapportionedbetweenthefinancechargesandreductionoftheleaseliabilitysoastoachieveaconstantrateofinterestontheremainingbalanceoftheliability.Financechargesarerecognisedasanexpenseintheincomestatement.

CapitalisedleasedassetsaredepreciatedovertheshorteroftheestimatedusefullifeoftheassetandtheleasetermifthereisnoreasonablecertaintythattheGroupwillobtainownershipbytheendoftheleaseterm.

Operatingleasepaymentsarerecognisedasanexpenseintheincomestatementonastraightlinebasisovertheleaseterm.

(e) Cash and cash equivalents

Cashonhandandinbanksarestatedatnominalvalue.

Forthepurposesofthecashflowstatement,cashincludescashonhandandinbanksnetofoutstandingbankoverdrafts.


43


3. SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (CONTINUED)

(f) Trade and other receivables

Tradereceivablesarerecognisedinitiallyatfairvalueandsubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod,lessprovisionforimpairment.Tradereceivablesaregenerallydueforsettlementwithin30–60days.

Collectabilityoftradereceivablesisreviewedonanongoingbasis.Debtswhichareknowntobeuncollectiblearewrittenoffbyreducingthecarryingamountdirectly.Anallowanceaccount(provisionforimpairmentoftradereceivables)isusedwhenthereisobjectiveevidencethattheGroupwillnotbeabletocollectallamountsdueaccordingtotheoriginaltermsofthereceivables.

Significantfinancialdifficultiesofthedebtor,probabilitythatthedebtorwillenterbankruptcyorfinancialreorganisation,anddefaultordelinquencyinpayments(morethan30daysoverdue)areconsideredindicatorsthatthetradereceivableisimpaired.Theamountoftheimpairmentallowanceisthedifferencebetweentheasset’scarryingamountandthepresentvalueofestimatedfuturecashflows,discountedattheoriginaleffectiveinterestrate.Cashflowsrelatingtoshort-termreceivablesarenotdiscountediftheeffectofdiscountingisimmaterial.

Theamountoftheimpairmentlossisrecognisedintheincomestatementwithinotherexpenses.Whenatradereceivableforwhichanimpairmentallowancehadbeenrecognisedbecomesuncollectibleinasubsequentperiod,itiswrittenoffagainsttheallowanceaccount.Subsequentrecoveriesofamountspreviouslywrittenoffarecreditedagainstotherexpensesintheincomestatement.

(g) Inventories

Inventoriesarevaluedatthelowerofcostandnetrealisablevalue.

Thecostofinventoriesisbasedonthefirst-infirst-outprincipleandcomprisesdirectmaterials,directlabourandanappropriateproportionofvariableandfixedoverheadexpenditure,thelatterbeingallocatedonthebasisofnormaloperatingcapacity.Theyincludethetransferfromequityofanygains/lossesonqualifyingcashflowhedgesrelatingtopurchasesofinventories.Costsincurredinbringinginventoriestotheirpresentlocationandconditionsareincludedinthecostofinventories.

Netrealisablevalueistheestimatedsellingpriceintheordinarycourseofbusiness,lesstheestimatedcostsofcompletionandtheestimatedcostsnecessarytomakethesale.

(h) Income tax

Currenttaxassetsandliabilitiesforthecurrentandpriorperiodsaremeasuredattheamountexpectedtoberecoveredfromorpaidtothetaxationauthorities.Thetaxratesandtaxlawsusedtocomputetheamountarethosethatareenactedorsubstantivelyenactedbythebalancesheetdate.

Deferredtaxisprovidedonalltemporarydifferencesatthebalancesheetdatebetweenthetaxbasesofassetsandliabilitiesandtheircarryingamountsforfinancialreportingpurposes.

Deferredtaxliabilitiesarerecognisedforalltaxabletemporarydifferencesexceptwherethedeferredtaxliabilityarisesfromtheinitialrecognitionofanassetorliabilityinatransactionthatisnotabusinesscombinationand,atthetimeofthetransaction,affectsneithertheaccountingprofitnortaxableprofitorloss.

Deferredtaxassetsarerecognisedforalldeductibletemporarydifferencesandunusedtaxlosses,totheextentthatitisprobablethattaxableprofitwillbeavailableagainstwhichthedeductibletemporarydifferences,andthecarryforwardofunusedtaxlossescanbeutilisedexceptwherethedeferredtaxassetrelatingtothedeductibletemporarydifferencesarisesfromtheinitialrecognitionofanassetorliabilityinatransactionthatisnotabusinesscombinationand,atthetimeofthetransaction,affectsneithertheaccountingprofitnortaxableprofitorloss.

Thecarryingamountofdeferredtaxassetsisreviewedateachbalancesheetdateandreducedtotheextentthatitisnolongerprobablethatsufficienttaxableprofitwillbeavailabletoallowallorpartofthedeferredtaxassettobeutilised.

Unrecogniseddeferredtaxassetsarereassessedateachbalancesheetdateandarerecognisedtotheextentthatithasbecomeprobablethatfuturetaxableprofitwillallowthedeferredtaxassettoberecovered.

Deferredtaxassetsandliabilitiesaremeasuredatthetaxratesthatareexpectedtoapplytotheyearwhentheassetisrealisedortheliabilityissettled,basedontaxrates(andtaxlaws)thathavebeenenactedorsubstantivelyenactedatthebalancesheetdate.

Incometaxesrelatingtoitemsrecogniseddirectlyinequityarerecognisedinequityandnotintheincomestatement.

Deferredtaxassetsanddeferredtaxliabilitiesareoffsetonlyifalegallyenforceablerightexiststosetoffcurrenttaxassetsagainstcurrenttaxliabilitiesandthedeferredtaxassetsandliabilitiesrelatetothesametaxableentityandthesametaxationauthority.


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(h) Income tax (continued)

Tax consolidation legislation

BoomLogisticsLimitedanditswholly-ownedAustraliancontrolledentitieshaveimplementedthetaxconsolidationlegislation.Theheadentity,BoomLogisticsLimited,andthecontrolledentitiesinthetaxconsolidatedgroupaccountfortheirowncurrentanddeferredtaxamounts.Thesetaxamountsaremeasuredasifeachentityinthetaxconsolidatedgroupcontinuestobeastandalonetaxpayerinitsownright.

Inadditiontoitsowncurrentanddeferredtaxamounts,BoomLogisticsLimitedalsorecognisesthecurrenttaxliabilities(orassets)andthedeferredtaxassetsarisingfromunusedtaxlossesandunusedtaxcreditsassumedfromcontrolledentitiesinthetaxconsolidatedgroup.

AssetsorliabilitiesarisingundertaxfundingagreementswiththetaxconsolidatedentitiesarerecognisedasamountsreceivablefromorpayabletootherentitiesintheGroup.Detailsaboutthetaxfundingagreementaredisclosedinnote6.

(i) Goods and Services Tax (GST)

Revenues,expensesandassetsarerecognisednetoftheamountofGSTexceptwheretheGSTincurredonapurchaseofgoodsandservicesisnotrecoverablefromthetaxationauthority,inwhichcasetheGSTisrecognisedaspartofthecostofacquisitionoftheassetoraspartoftheexpenseitemasapplicable.

ThenetamountofGSTrecoverablefrom,orpayableto,thetaxationauthorityisincludedaspartofreceivablesorpayablesinthebalancesheet.

CashflowsareincludedinthecashflowstatementonagrossbasisandtheGSTcomponentofcashflowsarisingfrominvestingandfinancingactivities,whichisrecoverablefrom,orpayableto,thetaxationauthority,areclassifiedasoperatingcashflows.

CommitmentsandcontingenciesaredisclosednetoftheamountofGSTrecoverablefromorpayabletothetaxationauthority.


45



(j) Plant and equipment

Plantandequipmentismeasuredatcostlessaccumulateddepreciationandanyaccumulatedimpairmentlosses.Costincludesexpenditurethatisdirectlyattributabletotheacquisitionoftheasset.

Whenamajoroverhaulisperformed,thecostisrecognisedinthecarryingamountofplantandequipmentonlyifthemajoroverhaulextendstheexpectedusefullifeoftheassetorifthecontinuingoperationoftheassetisconditionaluponincurringtheexpenditure.Similarly,wheneachmajorinspectionisperformed,itscostisrecognisedinthecarryingamountofplantandequipmentasareplacementonlyifitiseligibleforcapitalisation.Thecostoftheday-to-dayservicingorthereplacementofpartsofplantandequipmentisrecognisedinprofitorlossasincurred.

Depreciationisrecognisedintheincomestatementonastraightlinebasisovertheestimatedusefullifeofeachpartofanitemofplantandequipmentasfollows:

Mobile Cranes > 20T 20 Years

Travel Towers 20 Years

Tower Cranes 20 Years

Tower Sections / Frames 20 Years

Stiffleg Derricks 20 Years

Mobile Cranes < 20T 10 Years

Access Equipment 10 Years

Ancillary Equipment 10 Years

Office Equipment 10 Years

Workshop Equipment 10 Years

Leasehold Improvements Lesser of lease term or 10 Years

Vehicles 5 to 10 Years

Computer Equipment and Software 3 to 5 Years

Depreciationmethods,usefullivesandresidualvaluesarereviewedateachreportingdateandatmoreregularintervalswhenthereisanindicatorofimpairmentorwhendeemedappropriate.

Gainsorlossesonsaleofplantandequipmentareincludedintheincomestatementintheyeartheassetisdisposed.

Assets classified as held for sale

Assetsareclassifiedasheldforsaleiftheircarryingamountwillberecoveredprincipallythroughasaletransactionratherthanthroughcontinuinguse.Thisconditionisregardedasmetonlywhenthesaleishighlyprobableandtheassetisavailableforimmediatesaleinitspresentcondition.Managementmustbecommittedtothesale,whichshouldbeexpectedtoqualifyforrecognitionasacompletedsalewithinoneyearfromthedateofclassification.

Assetsclassifiedasheldforsalearemeasuredattheloweroftheirpreviouscarryingamountandfairvaluelesscoststosell.Nodepreciationisrecognisedwhilstanassetisheldforsale.

Interestandotherexpensesattributabletotheassetsheldforsalecontinuetoberecognised.


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(k) Intangible assets

Intangibleassetsacquiredseparatelyorinabusinesscombinationareinitiallymeasuredatcost.Thecostofanintangibleassetacquiredinabusinesscombinationisitsfairvalueasatthedateofacquisition.Followinginitialrecognition,intangibleassetsarecarriedatcostlessanyaccumulatedamortisationandanyaccumulatedimpairmentlosses.

Theusefullivesofintangibleassetsareassessedtobeeitherfiniteorindefinite.Intangibleassetswithfinitelivesareamortisedovertheusefullifeandassessedforimpairmentwheneverthereisanindicationthattheintangibleassetmaybeimpaired.Theamortisationperiodandtheamortisationmethodforanintangibleassetwithafiniteusefullifeisreviewedatleastateachfinancialyearend.Changesintheexpectedusefullifeortheexpectedpatternofconsumptionoffutureeconomicbenefitsembodiedintheassetareaccountedforbychangingtheamortisationperiodormethod,asappropriate,whichisachangeinaccountingestimate.

Theamortisationexpenseonintangibleassetswithfinitelivesisrecognisedintheincomestatementintheexpensecategoryconsistentwiththefunctionoftheintangibleasset.

Intangibleassetswithindefiniteusefullivesaretestedforimpairmentateachreportingdateeitherindividuallyoratthecashgeneratingunitlevel.Suchintangiblesarenotamortised.Theusefullifeofanintangibleassetwithanindefinitelifeisreviewedateachreportingperiodtodeterminewhetherindefinitelifeassessmentcontinuestobesupportable.Ifnot,thechangeintheusefullifeassessmentfromindefinitetofiniteisaccountedforasachangeinanaccountingestimateandisthusaccountedforonaprospectivebasis.

AsummaryofthepoliciesappliedtotheGroup’sintangibleassetsisasfollows:

CONTRACTUAL RIGHTS TADANO LICENCE

Usefullives Finite Finite

Methodused Lifeofcontract 3years-Straightline

Internallygenerated/Acquired Acquired Acquired

Impairmenttest/Recoverableamounttesting

Amortisationmethodreviewedateachfinancialyearend;Reviewedannually

forindicatorofimpairment.

Amortisationmethodreviewedateachfinancialyearend;Reviewedannually

forindicatorofimpairment.

Gainsorlossesarisingfromderecognitionofanintangibleassetaremeasuredasthedifferencebetweenthenetdisposalproceedsandthecarryingamountoftheassetandarerecognisedintheincomestatementwhentheassetisderecognised.

(l) Goodwill

GoodwillacquiredinabusinesscombinationisinitiallymeasuredatcostbeingtheexcessofthecostofthebusinesscombinationovertheGroup’sinterestinthenetfairvalueoftheacquiree’sidentifiableassets,liabilitiesandcontingentliabilities.

Followinginitialrecognition,goodwillismeasuredatcostlessanyaccumulatedimpairmentlosses.

Goodwillisreviewedforimpairment,annuallyormorefrequentlyifeventsorchangesincircumstancesindicatethatthecarryingvaluemaybeimpaired.

Forthepurposeofimpairmenttesting,goodwillacquiredinabusinesscombinationis,fromtheacquisitiondate,allocatedtoeachoftheGroup’scashgeneratingunits,orgroupsofcashgeneratingunits,thatareexpectedtobenefitfromthesynergiesofthecombination,irrespectiveofwhetherotherassetsorliabilitiesoftheGroupareassignedtothoseunitsorgroupsofunits.EachunitorgroupofunitstowhichthegoodwillissoallocatedrepresentsthelowestlevelwithintheGroupatwhichthegoodwillismonitoredforinternalmanagementpurposes.


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(m) Impairment of assets

Financial assets

Financialassetsareassessedateachreportingdatetodeterminewhetherthereisanyobjectiveevidenceofimpairment.Afinancialassetisconsideredtobeimpairedifobjectiveevidenceindicatesthatoneormoreeventshavehadanegativeeffectontheestimatedfuturecashflowsofthatasset.

Animpairmentlossinrespectofafinancialassetmeasuredatamortisedcostiscalculatedasthedifferencebetweenitscarryingamount,andthepresentvalueoftheestimatedfuturecashflowsdiscountedattheoriginaleffectiveinterestrate.

Individuallysignificantfinancialassetsaretestedforimpairmentonanindividualbasis.Theremainingfinancialassetsareassessedcollectivelyingroupsthatsharesimilarcreditriskcharacteristics.Allimpairmentlossesarerecognisedinprofitorloss.

Animpairmentlossisreversedifthereversalcanberelatedobjectivelytoaneventoccurringaftertheimpairmentlosswasrecognised.Forfinancialassetsmeasuredatamortisedcost,thereversalisrecognisedintheincomestatement.

Non-financial assets

ThecarryingamountsoftheGroup’snon-financialassets,otherthandeferredtaxassetsandinventories,arereviewedateachreportingdatetodeterminewhetherthereisanyindicationofimpairment.Ifanysuchindicationexiststhentheasset’srecoverableamountisestimated.Forgoodwillandintangibleassetsthathaveindefinitelivesorthatarenotyetavailableforuse,recoverableamountisestimatedateachreportingdate.

Therecoverableamountofanassetorcash-generatingunitoragroupofcash-generatingunitsisthegreaterofitsvalueinuseanditsfairvaluelesscoststosell.Inassessingvalueinuse,theestimatedfuturecashflowsarediscountedtotheirpresentvalueusingapre-taxdiscountratethatreflectscurrentmarketassessmentsofthetimevalueofmoneyandtherisksspecifictotheasset.Forthepurposeofimpairmenttesting,assetsaregroupedtogetherintothesmallestgroupofassetsthatgeneratescashinflowsfromcontinuingusethatarelargelyindependentofthecashinflowsofotherassetsorgroupsofassets(the“cash-generatingunit”).Thegoodwillacquiredinabusinesscombination,forthepurposeofimpairmenttesting,isallocatedtocash-generatingunitsoragroupofcash-generatingunitsthatareexpectedtobenefitfromthesynergiesofthecombinationandatthelowestlevelmonitoredbymanagement.

Animpairmentlossisrecognisedifthecarryingamountofanasset,cash-generatingunitoragroupofcash-generatingunitsexceedsitsrecoverableamount.Impairmentlossesarerecognisedintheincomestatement.Impairmentlossesrecognisedinrespectofcash-generatingunitsareallocatedfirsttoreducethecarryingamountofanygoodwillallocatedtotheunitsandthentoreducethecarryingamountoftheotherassetsintheunit(groupofunits)onaproratabasis.Animpairmentlossinrespectofgoodwillisnotreversed.Inrespectofotherassets,impairmentlossesrecognisedinpriorperiodsareassessedateachreportingdateforanyindicationsthatthelosshasdecreasedornolongerexists.Animpairmentlossisreversediftherehasbeenachangeintheestimatesusedtodeterminetherecoverableamount.Animpairmentlossisreversedonlytotheextentthattheasset’scarryingamountdoesnotexceedthecarryingamountthatwouldhavebeendetermined,netofdepreciationoramortisation,ifnoimpairmentlosshadbeenrecognised.

(n) Trade and other payables

TheseamountsrepresentliabilitiesforgoodsandservicesprovidedtotheGrouppriortotheendoffinancialyearwhichareunpaid.Theamountsareunsecuredandareusuallypaidwithin30daysofrecognition.

(o) Interest bearing loans and borrowings

Allloansandborrowingsareinitiallyrecognisedatfairvalueoftheconsiderationreceivedlessdirectlyattributabletransactioncosts.

Afterinitialrecognition,interestbearingloansandborrowingsaresubsequentlymeasuredatamortisedcostusingtheeffectiveinterestmethod.

Gainsandlossesarerecognisedintheincomestatementwhentheliabilitiesarederecognised.


48



(p) Provisions

ProvisionsarerecognisedwhentheGrouphasapresentobligation(legalorconstructive)asaresultofapastevent,itisprobablethatanoutflowofresourcesembodyingeconomicbenefitswillberequiredtosettletheobligationandareliableestimatecanbemadeoftheamountoftheobligation.

WhentheGroupexpectssomeorallofaprovisiontobereimbursed,forexampleunderaninsurancecontract,thereimbursementisrecognisedasaseparateassetbutonlywhenthereimbursementisprobable.Theexpenserelatingtoanyprovisionispresentedintheincomestatementnetofanyreimbursement.

Iftheeffectofthetimevalueofmoneyismaterial,provisionsarediscountedusingacurrentpretaxratethatreflectstherisksspecifictotheliability.

Whendiscountingisused,theincreaseintheprovisionduetothepassageoftimeisrecognisedasafinanceexpense.

AprovisionforrestructuringisrecognisedwhentheGrouphasapprovedadetailedandformalrestructuringplan,andtherestructuringeitherhascommencedorhasbeenannouncedpublicly.Futureoperatingcostsarenotprovidedfor.

(q) Employee benefits

Wages, salaries, annual leave, sick leave and rostered days off

Liabilitiesforwagesandsalaries,includingnonmonetarybenefits,annualleave,accumulatingsickleaveandrostereddaysoffrepresentpresentobligationsfromemployees’servicesprovidedtoreportingdateandarerecognisedinemployeeprovisionsuptothereportingdate.Theyaremeasuredattheamountsexpectedtobepaidwhentheliabilitiesaresettled.Liabilitiesfornonaccumulatingsickleavearerecognisedwhentheleaveistakenandaremeasuredattheratespaidorpayable.

Long service leave

Theliabilityforlongserviceleaveisrecognisedintheprovisionforemployeebenefitsandmeasuredasthepresentvalueofexpectedfuturepaymentstobemadeinrespectofservicesprovidedbyemployeesuptothereportingdate.Considerationisgiventoexpectedfuturewageandsalarylevels,experienceofemployeedepartures,andperiodsofservice.Expectedfuturepaymentsarediscountedusingmarketyieldsatthereportingdateonnationalgovernmentbondswithtermstomaturityandcurrencythatmatch,ascloselyaspossible,theestimatedfuturecashoutflows.

Termination benefits

TerminationbenefitsarerecognisedasanexpensewhentheGroupisdemonstrablycommitted,withoutrealisticpossibilityofwithdrawal,toaformaldetailedplantoeitherterminateemploymentbeforethenormalretirementdate,ortoprovideterminationbenefitsasaresultofanoffermadetoencouragevoluntaryredundancy.TerminationbenefitsforvoluntaryredundanciesarerecognisedasanexpenseiftheGrouphasmadeanofferencouragingvoluntaryredundancy,itisprobablethattheofferwillbeaccepted,andthenumberofacceptancescanbeestimatedreliably.

Defined contribution plans

Adefinedcontributionplanisapost-employmentbenefitplanunderwhichanentitypaysfixedcontributionsintoaseparateentityandwillhavenolegalorconstructiveobligationtopayfurtheramounts.Obligationsforcontributionplansarerecognisedasapersonnelexpenseintheincomestatementwhentheyaredue.Prepaidcontributionsarerecognisedasanassettotheextentthatcashrefundorareductioninfuturepaymentsisavailable.


49



(r) Share-based payments

TheGroupprovidesbenefitstoseniormanagementoftheGroupintheformofsharebasedpayments,wherebyseniormanagementreceivesincentivebasedshareallocationsvestinguponachievementofpresetperformancetargetsoverarollingthreeyearperiod.

Thecostoftheseequitysettledtransactionswithemployeesismeasuredbyreferencetothefairvalueatthedateatwhichtheyaregranted.

Invaluingequitysettledtransactions,noaccountistakenofanyperformanceconditions,otherthanconditionslinkedtothepriceofthesharesofBoomLogisticsLimited(marketconditions)ifapplicable.

Thecostofequitysettledtransactionsisrecognised,togetherwithacorrespondingincreaseinequity,overtheperiodinwhichtheperformanceand/orserviceconditionsarefulfilled,endingonthedateonwhichtherelevantemployeesbecomefullyentitledtotheaward(thevestingperiod).

Thecumulativeexpenserecognisedforequitysettledtransactionsateachreportingdateuntilvestingdatereflects(i)theextenttowhichthevestingperiodhasexpiredand(ii)theGroup’sbestestimateofthenumberofequityinstrumentsthatwillultimatelyvest.Noadjustmentismadeforthelikelihoodofmarketperformanceconditionsbeingmetastheeffectoftheseconditionsisincludedinthedeterminationoffairvalueatgrantdate.Theincomestatementchargeorcreditforaperiodrepresentsthemovementincumulativeexpenserecognisedasatthebeginningandendofthatperiod.

Noexpenseisrecognisedforawardsthatdonotultimatelyvest,exceptforawardswherevestingisonlyconditionaluponamarketcondition.

Ifthetermsofanequitysettledawardaremodified,asaminimumanexpenseisrecognisedasifthetermshadnotbeenmodified.Inaddition,anexpenseisrecognisedforanymodificationthatincreasesthetotalfairvalueofthesharebasedpaymentarrangement,orisotherwisebeneficialtotheemployeeasmeasuredatthedateofmodification.

Ifanequitysettledawardiscancelled,itistreatedasifithadvestedonthedateofcancellation,andanyexpensenotyetrecognisedfortheawardisrecognisedimmediately.However,ifanewawardissubstitutedforthecancelledaward,anddesignatedasareplacementawardonthedatethatitisgranted,thecancelledandnewawardaretreatedasiftheywereamodificationoftheoriginalaward,asdescribedinthepreviousparagraph.

(s) Contributed equity

Issuedandpaidupcapitalisrecognisedatthefairvalueoftheconsiderationreceivedbythecompany.

Anytransactioncostsarisingontheissueofordinarysharesarerecogniseddirectlyinequityasareductionoftheshareproceedsreceived.

(t) Dividends

Aprovisionfordividendsisnotrecognisedasaliabilityunlessthedividendsaredeclared,determinedorpubliclyrecommendedonorbeforethereportingdate.

(u) Earnings per share (EPS)

BasicEPSiscalculatedasnetprofitattributabletomembers,adjustedtoexcludeanycostsofservicingequity(otherthandividends),dividedbytheweightedaveragenumberofordinarysharesoutstandingduringtheyear,adjustedforanybonuselement.

DilutedEPSiscalculatedasnetprofitattributabletomembers,adjustedfor:

•costsofservicingequity(otherthandividends);

•theaftertaxeffectofdividendsandinterestassociatedwithdilutivepotentialordinarysharesthathavebeenrecognisedasexpenses;and

•othernondiscretionarychangesinrevenuesorexpensesduringtheperiodthatwouldresultfromthedilutionofpotentialordinaryshares;dividedbytheweightedaveragenumberofordinarysharesanddilutivepotentialordinaryshares,adjustedforanybonuselement.

(v) Investments

Investmentsincontrolledentitiesthatarenotclassifiedasheldforsaleorincludedinadisposalgroupclassifiedasheldforsaleareaccountedforatcost.


50



(w) Financial instruments

Non-derivativefinancialinstrumentscompriseinvestmentsintradeandotherreceivables,cashandcashequivalents,loansandborrowings,andtradeandotherpayables.

Non-derivativefinancialinstrumentsarerecognisedinitiallyatfairvalueplus,forinstrumentsnotatfairvaluethroughprofitorloss,anydirectlyattributabletransactioncosts.Measurementofeachofthenon-derivativefinancialinstrumentsiscoveredintherespectivepolicynotes–tradeandotherreceivables3(f),cashandcashequivalents3(e),interestbearingloansandborrowings3(o),andtradeandotherpayables3(n).Refertonote34fordetaileddisclosure.

AfinancialinstrumentisrecognisediftheGroupbecomesapartytothecontractualprovisionsoftheinstrument.FinancialassetsarederecognisediftheGroup’scontractualrightstothecashflowsfromthefinancialassetsexpireoriftheGrouptransfersthefinancialassettoanotherpartywithoutretainingcontrolorsubstantiallyallrisksandrewardsoftheasset.

Regularpurchasesandsalesoffinancialassetsareaccountedforattradedate,i.e.,thedatethattheGroupcommitsitselftopurchaseorselltheasset.FinancialliabilitiesarederecognisediftheGroup’sobligationsspecifiedinthecontractexpireoraredischargedorcancelled.

(x) Derivatives and hedging

TheGroupusesderivativefinancialinstrumentssuchasforwardcurrencycontractstohedgeitsrisksassociatedwithforeigncurrencyfluctuations.Derivativesareinitiallyrecognisedatfairvalueonthedateaderivativecontractisenteredintoandaresubsequentlyremeasuredtotheirfairvalueateachreportingdate.Theaccountingforsubsequentchangesinfairvaluedependsonwhetherthederivativeisdesignatedasahedginginstrument,andifso,thenatureoftheitembeinghedged.TheGroupdesignatescertainderivativesaseither:

•Hedgesofthefairvalueofrecognisedassetsorliabilitiesorafirmcommitment(fairvaluehedges);or

•Hedgesofthecashflowsofrecognisedassetsandliabilitiesandhighlyprobableforecasttransactions(cashflowhedges).

TheGroupdocumentsattheinceptionofthehedgingtransactiontherelationshipbetweenhedginginstrumentsandhedgeditems,aswellasitsriskmanagementobjectiveandstrategyforundertakingvarioushedgetransactions.TheGroupalsodocumentsitsassessment,bothathedgeinceptionandonanongoingbasis,ofwhetherthederivativesthatareusedinhedgingtransactionshavebeenandwillcontinuetobehighlyeffectiveinoffsettingchangesinfairvaluesorcashflowsofhedgeditems.

Thefairvaluesofvariousderivativefinancialinstrumentsusedforhedgingpurposesaredisclosedinnote21.Movementsinthehedgingreserveinshareholders’equityareshowninnote25.Thefullfairvalueofahedgingderivativeisclassifiedasanon-currentassetorliabilitywhentheremainingmaturityofthehedgeditemismorethan12months;itisclassifiedasacurrentassetorliabilitywhentheremainingmaturityofthehedgeditemislessthan12months.

Thefairvaluesofforwardcurrencycontractsarecalculatedbyreferencetocurrentforwardexchangeratesforcontractswithsimilarmaturityprofiles.

Anygainsorlossesarisingfromchangesinthefairvalueofderivatives,exceptforthosethatqualifyascashflowhedges,aretakendirectlytoincomestatementfortheyear.

Theeffectiveportionofchangesinthefairvalueofderivativesthataredesignatedandqualifyascashflowhedgesisrecognisedinequityinthehedgingreserve.Thegainorlossrelatingtotheineffectiveportionisrecognisedimmediatelyintheincomestatementwithinotherincomeorotherexpense.

Ahedgeoftheforeigncurrencyriskofahighlyprobablecommitmentisaccountedforasacashflowhedge.Theeffectiveportionofthegainorlossonthehedginginstrumentisrecogniseddirectlyinequity,whiletheineffectiveportionisrecognisedinprofitorloss.

Amountstakentoequityaretransferredtotheincomestatementwhenthehedgedtransactionaffectsprofitorloss,suchaswhenhedgedincomeorexpensesarerecognisedorwhenaforecastsaleorpurchaseoccurs.Whenthehedgeditemisthecostofanonfinancialasset(forexample,inventoryorfixedassets),theamountstakentoequityaretransferredtotheinitialcarryingamountofthenonfinancialassetorliability.

Iftheforecasttransactionisnolongerexpectedtooccur,amountspreviouslyrecognisedinequityaretransferredtotheincomestatement.Ifthehedginginstrumentexpiresorissold,terminatedorexercisedwithoutreplacementorrollover,orifitsdesignationasahedgeisrevoked,amountspreviouslyrecognisedinequityremaininequityuntiltheforecasttransactionoccurs.Iftherelatedtransactionisnotexpectedtooccur,theamountistakentotheincomestatement.


51



(y) Segment reporting

AsegmentisadistinguishablecomponentoftheGroupthatisengagedeitherinprovidingrelatedproductsorservices(businesssegment),orinprovidingproductsorserviceswithinaparticulareconomicenvironment(geographicalsegment),whichissubjecttorisksandreturnsthataredifferentfromthoseofothersegments.SegmentinformationispresentedinrespectoftheGroup’sbusinessandgeographicalsegments.TheGroup’sprimaryformatforsegmentreportingisbasedonbusinesssegments.

(z) New accounting standards and interpretations not yet adopted

Thefollowingstandards,amendmentstostandardsandinterpretationshavebeenidentifiedasthosewhichmayimpacttheentityintheperiodofinitialapplication.Theyareavailableforearlyadoptionat30June2009,buthavenotbeenappliedinpreparingthisfinancialreport.

Revised AASB 3 Business Combinations (2008) incorporatesthefollowingchangesthatarelikelytoberelevanttotheGroup’soperations:

•Thedefinitionofabusinesshasbeenbroadened,whichislikelytoresultinmoreacquisitionsbeingtreatedasbusinesscombinations.

•Contingentconsiderationwillbemeasuredatfairvalue,withsubsequentchangesthereinrecognisedinprofitorloss.

•Transactioncosts,otherthanshareanddebtissuecosts,willbeexpensedasincurred.

•Anypre-existinginterestintheacquireewillbemeasuredatfairvaluewiththegainorlossrecognisedinprofitorloss.

•Anynon-controlling(minority)interestwillbemeasuredateitherfairvalue,oratitsproportionateinterestintheidentifiableassetsandliabilitiesoftheacquiree,onatransactionbytransactionbasis.

RevisedAASB3,whichbecomesmandatoryfortheGroup’s30June2010financialstatements,willbeappliedprospectivelyandtherefore,therewillbenoimpactonpriorperiodsintheGroup’s2010consolidatedfinancialstatement.

Amended AASB 127 Consolidated and Separate Financial Statements (2008)requiresaccountingforchangesinownershipinterestsbytheGroupinasubsidiary,whilemaintainingcontrol,toberecognisedasanequitytransaction.WhentheGrouplosescontrolofasubsidiary,anyinterestretainedintheformersubsidiarywillbemeasuredatfairvaluewiththegainorlossrecognisedinprofitorloss.TheamendmentstoAASB127,whichbecomemandatoryfortheGroup’s30June2010financialstatements,arenotexpectedtohaveasignificantimpactontheconsolidatedfinancialstatements.

AASB 8 Operating Segmentsintroducesthe“managementapproach”tosegmentreporting.AASB8,whichbecomesmandatoryfortheGroup’s30June2010financialstatements,willrequireachangeinthepresentationonanddisclosureofsegmentinformationbasedontheinternalreportsregularlyreviewedbytheGroup’sChiefOperatingDecisionMakerinordertoassesseachsegment’sperformanceandtoallocateresourcestothem.Currentlythegrouppresentssegmentinformationinrespectofitsbusinessandgeographicalsegments(seenote31).TheGrouphasnotyetdeterminedthepotentialeffectofthischange.


52



(z) New accounting standards and interpretations not yet adopted (continued)

Revised AASB 101 Presentation of Financial Statements (2007)introducesthetermtotalcomprehensiveincome,whichrepresentschangesinequityduringaperiodotherthanthosechangesresultingfromtransactionswithownersintheircapacityasowners.Totalcomprehensiveincomemaybepresentedineitherasinglestatementofcomprehensiveincome(effectivelycombiningboththeincomestatementandallnon-ownerchangesinequityinasinglestatement)or,inanincomestatementandaseparatestatementofcomprehensiveincome.RevisedAASB101,whichbecomesmandatoryfortheGroup’s30June2010financialstatements,isexpectedtohaveasignificantimpactonthepresentationoftheconsolidatedfinancialstatements.

Revised AASB 123 Borrowing Costsremovestheoptiontoexpenseborrowingcostsandrequiresthatanentitycapitaliseborrowingcostsdirectlyattributabletotheacquisition,constructionorproductionofaqualifyingassetaspartofthecostofthatasset.TherevisedAASB123willbecomemandatoryfortheGroup’s30June2010financialstatementsandisnotexpectedtohaveamaterialimpactforthegroup.Inaccordancewiththetransitionalprovisions,theGroupwillapplytherevisedAASB123toqualifyingassetsforwhichcapitalisationofborrowingcostscommencesonoraftertheeffectivedate.

AASB 2008-1 Amendments to Australian Accounting Standard - Share-based Payment: Vesting Conditions and Cancellationsclarifiesthedefinitionofvestingconditions,introducestheconceptofnon-vestingconditions,requiresnon-vestingconditionstobereflectedingrantdatefairvalueandprovidestheaccountingtreatmentfornon-vestingconditionsandcancellations.TheamendmentstoAASB2willbemandatoryfortheGroup’s30June2010financialstatements,withretrospectiveapplication.TheGrouphasnotyetdeterminedthepotentialeffectoftheamendment.

AASB 2008-5 Amendments to Australian Accounting Standards arising from the Annual Improvements Process and 2008-6 Further Amendments to Australian Accounting Standards arising from the Annual Improvements ProcessaffectvariousAASBsresultinginminorchangesforpresentation,disclosure,recognitionandmeasurementpurposes.Theamendments,whichbecomemandatoryfortheGroup’s30June2010financialstatements,arenotexpectedtohaveanyimpactonthefinancialstatements.

AASB 2008-7 Amendments to Accounting Standards - Cost of an Investment in a subsidiary, Jointly Controlled Entity or Associatechangestherecognitionandmeasurementofdividendreceiptsasincomeandaddressestheaccountingofanewlyformedparententityintheseparatefinancialstatements.TheamendmentsbecomemandatoryfortheGroup’s30June2010financialstatements.TheGrouphasnotyetdeterminedthepotentialeffectoftheamendments.

AASB 2008-8 Amendments to Australian Accounting Standard - Eligible Hedged Items clarifiestheeffectofusingoptionsashedginginstrumentsandthecircumstancesinwhichinflationriskcanbehedged.TheamendmentsbecomemandatoryfortheGroup’s30June2010financialstatements,withretrospectiveapplication.TheGrouphasnotyetdeterminedthepotentialeffectoftheamendment.

AASB Interpretation 17 Distributions of Non-Cash Assets to Owners providesguidanceinrespectofmeasuringthevalueofdistributionsofnon-cashassetstoowners.AI17willbecomemandatoryfortheGroup’s30June2010financialstatements.TheGrouphasnotyetdeterminedthepotentialeffectoftheinterpretation.

AASB Interpretation 18 Transfers of Assets from Customersprovidesguidanceontheaccountingforcontributionsfromcustomersintheformoftransfersofproperty,plantandequipment(orcashtoacquireorconstructit).AI18willbecomemandatoryfortheGroup’s30June2010financialstatements.TheGrouphasnotyetdeterminedthepotentialeffectoftheinterpretation.


53


4. FINANCIAL RISK MANAGEMENT

TheGrouphasexposuretothefollowingrisksfromitsuseoffinancialinstruments:

•creditrisk;

•liquidityrisk;and

•marketrisk

ThisnotepresentsinformationabouttheGroup’sexposuretoeachoftheaboverisks,itsobjectives,policiesandprocessesformeasuringandmanagingrisk,andthemanagementofcapital.Furtherquantitativedisclosuresareincludedthroughoutthisfinancialreport.

TheBoardofDirectorshasoverallresponsibilityfortheestablishmentandoversightoftheriskmanagementframework.TheBoardhasempoweredseniormanagementfordevelopingandmonitoringriskmanagementguidelinesandpolicies.TheChiefFinancialOfficerreportsregularlytotheBoardofDirectorsonrelevantactivities.

RiskmanagementguidelineshavebeenfurtherdevelopedtoidentifyandanalysetherisksfacedbytheGroup,tosetappropriaterisklimitsandcontrols,andtomonitorrisksandadherencetolimits.RiskmanagementguidelinesareregularlyreviewedtoreflectchangesinmarketconditionsandtheGroup’sactivities.

TheAuditandRiskCommitteeoverseeshowmanagementmonitorscompliancewiththeGroup’sriskmanagementguidelines,policiesandproceduresandreviewstheadequacyoftheriskmanagementframeworkinrelationtotherisksfacedbytheGroup.

Credit risk

CreditriskarisesfromthefinancialassetsoftheGroup,whichcomprisecashandcashequivalents,tradeandotherreceivablesandderivativeinstruments.TheGroup’sexposuretocreditriskarisesfrompotentialdefaultofthecounterparty,withamaximumexposureequaltothecarryingamountoftheseinstruments.Exposureatbalancedateisaddressedineachapplicablenote.

TheGroupdoesnotholdanycreditderivativestooffsetitscreditexposure.

TheGroup’spolicyistotradewithrecognised,creditworthythirdparties.ItistheGroup’spolicythatallcustomerswhowishtotradeoncredittermsaresubjecttocreditverificationprocedures.Inaddition,receivablebalancesaremonitoredonanongoingbasiswiththeresultthattheGroup’sexposuretobaddebtsisnotsignificant.TherearenosignificantconcentrationsofcreditriskwithintheGroup.Refertonote34fordetaileddisclosure.

Liquidity risk

LiquidityriskistheriskthattheGroupwillnotbeabletomeetitsfinancialobligationsastheyfalldue.TheGroup’sapproachtomanagingliquidityistoensure,asfaraspossible,thatitwillalwayshavesufficientliquiditytomeetitsfinancialobligationsastheyfalldueunderbothnormalandstressedconditionswithoutincurringunacceptablelossesordamagetotheGroup’sreputation.InordertomeettheserequirementsmanagementestimatesthecashflowsoftheGrouponaweeklybasis.

TheGroup’sobjectiveistomaintainabalancebetweencontinuityoffundingandflexibilitythroughtheuseofbankoverdrafts,bankloans,financeleasesandhirepurchasecontracts.At30June2009,theGroup’sbalancesheetgearingratiowas50%(2008:48%).Thisratioiscalculatedasgrossdebtdividedbygrossdebtplusequity.Grossdebtiscalculatedastotalinterestbearingloansandborrowings.EquityisasshownontheBalanceSheet.Refertonote34fordetaileddisclosure.


54


4. FINANCIAL RISK MANAGEMENT (CONTINUED)

Market risk

MarketriskistheriskthatchangesinmarketpricesincludingforeignexchangeratesandinterestrateswillaffecttheGroup’sincomeorthevalueofitsholdingsoffinancialinstruments.Refertonote34fordetaileddisclosure.

Currency risk

Foreignexchangeriskariseswhenfuturecommercialtransactionsandrecognisedassetsandliabilitiesaredenominatedinacurrencythatisnottheentity’sfunctionalcurrency.

TheGrouphastransactionalcurrencyexposuresarisingfrompurchasesofinventoryincurrenciesotherthanthefunctionalcurrency.ItistheGroup’spolicytohedge100%ofitsestimatedforeigncurrencypurchases.TheGroup’spolicyisnottoenterintoforwardcurrencycontractsuntilafirmcommitmentisinplaceandtonegotiatethetermsofthehedgederivativestomatchthetermsofthehedgeditemtomaximisehedgeeffectiveness.

Interest rate risk

TheGroupisexposedtointerestrateriskasentitiesintheGroupborrowfundsatbothfixedandfloatinginterestrates.Theleveloffixedandvariableratedebtisdisclosedinnote34.

Capital Management

TheGroup’sobjectiveswhenmanagingcapitalaretosafeguardtheGroup’sabilitytocontinueasagoingconcern,sothatitcancontinuetoprovidereturnsforshareholdersandbenefitsforotherstakeholdersandtomaintainanoptimalcapitalstructuretominimisethecostofcapital.

InordertomaintainoradjustthecapitalstructuretheGroupmayadjusttheamountofdividendspaidtoshareholders,returncapitaltoshareholders,issuenewsharesorsellassetstoreducedebt.

TheGroupentitymonitorscapitalonthebasisofthebalancesheetgearingratio.Thisratioiscalculatedasgrossdebtdividedbygrossdebtplusequity.


55



$’000 $’000 $’000 $’000

5. REVENUE AND ExPENSES FROM CONTINUING OPERATIONS

(a) RevenueRevenuefromservices 347,580 341,131 252,586 221,075

Revenuefromsaleofgoods 49,419 68,609 - -

Interestincomefromotherpersons/corporations 1,668 473 1,604 405

Interestincomefromsubsidiaries - - 2,016 893

Dividendincomefromsubsidiaries - - 7,000 -

Netgains/(loss)ondisposalofplantandequipment 837 54 (284) 527

399,504 410,267 262,922 222,900

(b) ExpensesSalariesandemployeebenefits(netofsuperannuation) 143,639 137,014 106,814 95,306

Definedcontributionplanexpense 8,332 7,672 5,744 4,993

Totalsalariesandemployeebenefitsexpense 151,971 144,686 112,558 100,299

Depreciationofplantandequipment 34,271 38,138 14,004 17,775

Amortisationofintangibles 2,076 2,076 1,076 1,076

Totaldepreciationandamortisationexpense 36,347 40,214 15,080 18,851

Impairmentofintangibles 16 18,819 2,327 - -

Impairmentofplantandequipment 15 16,950 - 9,797 -

Impairmentofassetsclassifiedasheldforsale 15 1,323 - 1,097 -

Impairmentofinventories 11 2,629 - - -

Totalimpairmentexpense 39,721 2,327 10,894 -

Financingexpenses 18,172 19,671 12,927 9,613

CostofcranesalesandservicingthroughtheCraneSalesandServicesegment 41,724 53,475 - -


56



$’000 $’000 $’000 $’000

6. INCOME TAx

Themajorcomponentsofincometaxexpenseare:

(a) Income statementCurrent income tax

Currentincometaxcharge 1,353 7,079 3,087 1,936

Adjustmentsinrespectofcurrentincometaxofpreviousyears (14,405) (400) (11,225) (705)

Deferred income tax

Relatingtooriginationandreversaloftemporarydifferences 14,621 2,529 12,723 1,331

1,569 9,208 4,585 2,562

Areconciliationbetweentaxexpenseandtheaccountingprofitbeforeincometax(multipliedbytheGroup’sapplicableincometaxrate)isasfollows:

Accounting(loss)/profitbeforetax (25,917) 27,851 3,203 8,530

AttheGroup’sstatutoryincometaxrateof30%(2008:30%) (7,775) 8,355 961 2,559

Expenditurenotallowableforincometaxpurposes 188 110 114 15

Goodwillimpairmentnotallowableforincometaxpurposes 5,623 698 - -

Adjustmentsinrespectofcurrentincometaxofpreviousyears 3,836 45 3,813 (12)

Capitalinvestmentallowance (303) - (303) -

Incometaxexpensereportedintheincomestatement 1,569 9,208 4,585 2,562

(b) Amounts charged or credited directly to equityNetgain/(loss)onrevaluationofcashflowhedge - 426 - -

Incometaxexpensereportedinequity - 426 - -


57


BALANCE SHEET INCOME STATEMENT 2009 2008 2009 2008

$’000 $’000 $’000 $’000

6. INCOME TAx (CONTINUED)

(c) Deferred income taxDeferredincometaxat30Junerelatestothefollowing:

Consolidated

Deferred tax assets

–Employeeleaveprovisions 3,579 3,717 138 (667)

–Allowanceforimpairment 603 248 (355) (99)

–Liabilityaccruals 54 48 (6) 862

–Restructuringprovisions 527 - (527) -

Grossdeferredincometaxassets 4,763 4,013

Deferred tax liabilities

–Accelerateddepreciationfortaxpurposes (26,068) (10,308) 15,760 3,063

–Intangibleassets(finitelife) (323) (991) (668) (630)

–Foreigncurrencybalances (279) - 279 -

–Cashflowhedge(throughequity) - (7)

Grossdeferredincometaxliabilities (26,670) (11,306)

Deferredtax(income)/expense 14,621 2,529

Parent

Deferred tax assets

–Employeeleaveprovisions 2,756 2,765 9 (735)

–Allowanceforimpairment 285 132 (153) (86)

–Liabilityaccruals 111 338 227 502

–Restructuringprovisions 527 - (527) -

Grossdeferredincometaxassets 3,679 3,235

Deferred tax liabilities

–Accelerateddepreciationfortaxpurposes (15,201) (1,680) 13,521 1,980

–Intangibleassets(finitelife) (323) (666) (343) (330)

–Foreigncurrencybalances 11 - (11) -

Grossdeferredincometaxliabilities (15,513) (2,346)

Deferredtax(income)/expense 12,723 1,331


58


6. INCOME TAx (CONTINUED)

(d) Unrecognised deferred tax assets

TheGrouphascapitaltaxlossesforwhichnodeferredtaxassetisrecognisedonthebalancesheetof$966,936(2008:$966,936)whichareavailableindefinitelyforoffsetagainstfuturecapitalgainssubjecttocontinuingtomeetrelevantstatutorytest.

(e) Tax consolidation

BoomLogisticsLimitedandits100%ownedAustralianresidentsubsidiarieshaveformedataxconsolidationgroupwitheffectfrom8October2003.BoomLogisticsLimitedistheheadentityofthetaxconsolidationgroup.

Onadoptionofthetaxconsolidationlegislation,theentitiesinthetaxconsolidationgroupenteredintoataxfundingagreementunderwhichthewholly-ownedentitiescompensateBoomLogisticsLimitedforanycurrenttaxpayableassumedandarecompensatedbyBoomLogisticsLimitedforanycurrenttaxreceivableanddeferredtaxassetsrelatingtounusedtaxlossesorunusedtaxcreditsthataretransferredtoBoomLogisticsLimitedunderthetaxconsolidationlegislation.Thefundingamountsaredeterminedbyreferencetotheamountsrecognisedinthewholly-ownedentities’financialstatements.

Theamountsreceivable/payableunderthetaxfundingagreementaredueuponreceiptofthefundingadvicefromtheheadentity,whichisissuedassoonaspracticableaftertheendofeachfinancialyear.Theheadentitymayalsorequirepaymentofinterimfundingamountstoassistwithitsobligationstopaytaxinstalments.Thefundingamountsarerecognisedascurrentintercompanyreceivablesorpayables.

(f) Prior Year Amended Assessments

TheGroupundertookacompanytaxreviewduringtheyear,whichresultedintaxadjustmentsbeingidentified.Asaresultofthisreview,Boomdecidedtoamenditsincometaxreturnforthefinancialyearsended30June2005to30June2008(inclusive).Theincometaxreturnsforthe2005to2008incomeyearswerestillopentoamendwiththeAustralianTaxationOffice(“ATO”).ThequantumofthesetaxationadjustmentsresultedinanamendedassessmentlodgedwiththeATOforacompanytaxrefundof$14.7mplusinterest.

Asatthedateofthisreport,thetotalcompanytaxrefundhasbeenreceivedandsettledbytheATO,ofwhich$9.7mplusinterestwasreceivableasat30June2009.Thisamountwasclassifiedonthebalancesheetasanincometaxreceivable.

Additionalcompanytaxadjustmentsforthefinancialyearsended30June2002to30June2004(“closedperiod”)werealsoidentifiedandquantified.Whilstthisperiodfelloutsidethelimitationperiodtoamend,theGroupmadeaformalrequesttotheATOseekingtheirdiscretiontoallowaclaimfortheclosedperiodtoproceed.

On23July2009,theGroupwasnotifiedthattheATOhasconfirmedtheiracceptanceinprincipleoftheclosedperiodandrequestedsubmissionofanamendedassessmentfortheirconsiderationandapproval.Ifsuccessful,thebenefittotheGroupisexpectedtobe$3.9mplusinterest.Thishasbeentreatedasanon-adjustingsubsequenteventinthe30June2009financialstatements.


59


7. EARNINGS PER SHARE

Basicearningspershareamountsarecalculatedbydividingnetprofitfortheyearattributabletoordinaryequityholdersoftheparentbytheweightedaveragenumberofordinarysharesoutstandingduringtheyear.

Dilutedearningspershareamountsarecalculatedbydividingthenetprofitattributabletoordinaryequityholdersoftheparentbytheweightedaveragenumberofordinarysharesoutstandingduringtheyearplustheweightedaveragenumberofordinarysharesthatwouldbeissuedontheconversionofallthedilutivepotentialordinarysharesintoordinaryshares.

Thefollowingreflectstheincomeandsharedatausedinthecalculationofbasicanddilutedearningspershare:

CONSOLIDATED 2009 2008

$’000 $’000

Net(loss)/profitaftertax (27,486) 18,643

No. of shares

Weightedaveragenumberofordinarysharesusedincalculatingbasicearningspershare 171,152,439 170,774,633

Effect of dilutive securities:–employeeshareawards - -

Adjustedweightedaveragenumberofordinarysharesusedincalculatingdilutedearningspershare 171,152,439 170,774,633

Numberofordinarysharesatfinancialyearend 171,359,202 170,827,735


$’000 $’000 $’000 $’000

8. DIVIDENDS PAID AND PROPOSED

(a) Dividends paid during the year

Current year interim Fullyfrankeddividends(1.0centpershare)(2008:4.5centspershare) 1,714 7,687 1,714 7,687

Current year interim Fullyfrankeddividends(1.0centpershare)(2008:Nilcentspershare) (i) 1,708 - 1,708 -

Previous year final Fullyfrankeddividends(1.0centpershare)(2007:finaldividend5.3centspershare) - 9,042 - 9,042

3,422 16,729 3,422 16,729

(b) Dividends proposed and not recognised as a liability

Fullyfrankeddividends(nilcentspershare)(2008:1.0centpershare) - 1,708 - 1,708

(i)Accountingerrorscorrectedthroughthe2008financialstatementsresultedinanegativeretainedearningsbalanceintheparententityat30June2008.Theconsolidatedentityhadadequateprofitstopayadividend.However,asthedividendspaidfromthesubsidiaryentitiestotheparententitywereeffectedpost30June2008,underCorporationsLaw,afinaldividendcouldnotbepaid.Consequently,Boomdeclaredaninterimdividendin2009inlieuofthefinaldividendfor2008.


60



$’000 $’000 $’000 $’000

8. DIVIDENDS PAID AND PROPOSED (CONTINUED)

(c) Franking credit balance

Theamountoffrankingcreditsavailableforthesubsequentfinancialyearare:

–Frankingaccountbalanceasattheendofthefinancialyearat30%(2008:30%)

10,443 11,607

–Frankingcredits/(deficits)thatwillarisefromthepayment/(receipt)ofincometaxpayable/(receivable)asattheendofthefinancialyear (i) (12,949) 404

–Frankingdebitsthatwillarisefromthepaymentofdividendsasattheendofthefinancialyear - -

(2,506) 12,011

Theamountoffrankingcreditsavailableforfuturereportingperiods:

–Impactonthefrankingaccountofdividendsproposedordeclaredbeforethefinancialreportwasauthorisedforissuebutnotrecognisedasadistributiontoequityholdersduringtheperiod - (732)

(2,506) 11,279

(i)Thisamountrepresentsthepriorperiodamendedcompanytaxassessmentrefundof$9.7m(2008:nil)andtheanticipatedtaxrefundforthe2009taxyearof$3.2m(2008:$404,000taxpayable).Refertonote6forfurtherdetails.

Thetaxrateatwhichpaiddividendshavebeenfrankedis30%(2008:30%).Dividendsproposedin2008werefrankedattherateof30%.

9. CASH AND CASH EQUIVALENTS

(a) Reconciliation of cashCashatbankandinhand 10,588 1,801 8,084 590

Closingcashbalance 10,588 1,801 8,084 590

Cashatbankearnsinterestatfloatingratesbasedondailybankdepositrates.


61



$’000 $’000 $’000 $’000

9. CASH AND CASH EQUIVALENTS (CONTINUED)

(b) Reconciliation of the net (loss)/profit after tax to the net cash flows from operations

Net(loss)/profitaftertax (27,486) 18,643 (1,382) 5,968

Non cash items

Depreciationandamortisationofnoncurrentassets 5(b) 36,347 40,214 15,080 18,851

Impairment 5(b) 39,721 2,327 10,894 -

Net(profit)/lossondisposalofplantandequipment (837) (54) 284 (527)

Sharebasedpayments 25 99 21 99 21

AllowanceforImpairment 1,181 333 510 237

Changes in assets and liabilities

(Increase)/decreaseintradeandotherreceivables 23,875 (11,200) 12,896 (7,297)

(Increase)/decreaseininventories (5,568) 784 3 156

(Increase)/decreaseindeferredtaxassets (750) 96 (444) (57)

(Increase)/decreaseinprepaymentsandotherassets 241 285 (82) 369

(Decrease)/increaseintradeandotherpayables (2,516) 8,703 (2,552) 14,691

(Decrease)/increaseincurrenttaxliability (13,353) (799) (13,353) (537)

(Decrease)/increaseindeferredtaxliabilities 15,364 2,859 13,167 746

(Decrease)/increaseinprovisions 1,331 2,221 1,555 2,450

(Decrease)/increaseinotherliabilities (55) 3,088 4,827 3,021

Netcashflowfromoperatingactivities 67,594 67,521 41,502 38,092

(c) Non-cash financing and investing activitiesAcquisitionofassetsbymeansoffinanceleases - 48,513 - 28,070

10. TRADE AND OTHER RECEIVABLES (CURRENT)

Tradereceivables (i) 49,548 74,160 33,147 46,972

Allowanceforimpairmentloss 34(a) (2,009) (828) (951) (441)

47,539 73,332 32,196 46,531

Otherreceivables 4,476 3,739 4,193 3,264

Amountsfromwhollyownedcontrolledentities - - 82,600 23,087

Totalcurrenttradeandotherreceivables 52,015 77,071 118,989 72,882

(i)Tradereceivablesarenoninterestbearingandaregenerallyon30-60dayterms.Anallowanceforimpairmentismadewhenthereisobjectiveevidencethatatradereceivableisimpaired.


62



$’000 $’000 $’000 $’000

11. INVENTORIES (CURRENT)

Stockonhandatcost 24,257 13,724 - -

Allowanceforimpairment (1,139) - - -

23,118 13,724 - -

Stockintransitatcost 1,428 6,380 - -

Fuelatcost 223 258 138 165

Otherinventoryatnetrealisablevalue 226 204 223 199

Totalcurrentinventories 24,995 20,566 361 364

StockonhandandintransitisrepresentedbycranesandsparepartsforsalewithintheCraneSalesandServicebusinesssegment.Refertonotes31forfurtherdetails.

Inventoriesrecognisedasexpenseduringtheyearended30June2009amountedto$55,674,000(2008:$68,357,000)representing$41,724,000(2008:$53,475,000)costofsalesassociatedwithcranesand$13,950,000(2008:$14,882,000)fuelandtyres.

Duringtheyearended30June2009thewrite-downofinventoriestonetrealisablevalueamountedto$2,629,000(2008:nil)whichisdisclosedinthe“impairmentexpense”lineintheincomestatement.

12. PREPAYMENTS AND OTHER CURRENT ASSETS

Prepayments 4,684 4,988 3,302 3,305

Other 318 255 318 233

Totalprepaymentsandothercurrentassets 5,002 5,243 3,620 3,538

13. ASSETS CLASSIFIED AS HELD FOR SALE

Plantandequipment 7,798 6,218 7,742 3,308

Totalassetsclassifiedasheldforsale 7,798 6,218 7,742 3,308

14. INVESTMENTS

Investmentsincontrolledentitiesatcost 32 - - 80,515 80,515

Totalinvestments - - 80,515 80,515


63


Note Rental

Equipment Motor

Vehicles

Machinery, Furniture, Fittings & Equipment Total

$’000 $’000 $’000 $’000

15. PLANT AND EQUIPMENT

Consolidated

Opening balance at 1 July 2007

Atcost 383,656 37,681 21,074 442,410

Accumulateddepreciation (65,169) (11,856) (8,493) (85,518)

Netcarryingamount 318,487 25,825 12,581 356,892

Year ended 30 June 2008

Carryingamountatbeginningnetofaccumulateddepreciationandimpairment 318,487 25,825 12,581 356,892 Additions 69,355 5,093 2,618 77,066

Disposals/transfers (10,342) (362) (259) (10,963)

Impairment - - - -

Transfertoassetsheldforsale (6,218) - - (6,218)

Depreciationchargefortheyear (32,185) (3,669) (2,284) (38,138)

Carryingamountatendnetofaccumulateddepreciationandimpairment 339,097 26,887 12,655 378,638

Closing balance at 30 June 2008

Atcost 428,595 42,070 23,272 493,937






Impairment (16,317) (539) (94) (16,950)

Transferto/fromassetsheldforsale (8,074) (10) 89 (7,994)




Atcost 438,790 41,032 24,982 504,804




64


Note Rental

Equipment Motor

Vehicles

Machinery, Furniture, Fittings & Equipment Total

$’000 $’000 $’000 $’000

15. PLANT AND EQUIPMENT (CONTINUED)

PARENT

Opening balance at 1 July 2007

Atcost 184,463 22,589 6,741 213,794






Impairment - - - -

Additionsthroughtransferfromsubsidiary 27,035 4,059 431 31,525

Transfertoassetsheldforsale (3,308) - - (3,308)

Depreciationchargefortheyear (13,636) (3,156) (984) (17,775)



Atcost 241,343 31,679 8,872 281,893






Impairment (9,309) (488) - (9,797)

Transfertoassetsheldforsale (10,490) (10) - (10,500)




Atcost 243,045 32,388 10,212 285,645




65


15. PLANT AND EQUIPMENT (CONTINUED)

Thecarryingvalueofplantandequipmentheldunderfinanceleases,hirepurchasecontractsandsecuredbankloansat30June2009is$222,109,960(2008:$227,183,000).Additionsduringtheyearinclude$15,962,067(2008:$48,513,286)ofplantandequipmentheldundersecuredbankloans.

Leasedassetsandassetsunderhirepurchasecontractsarepledgedassecurityfortherelatedfinanceleaseandhirepurchaseliabilities(refertonote19).

Plantandequipmentwithacarryingamountof$351,856,000(2008:$378,638,000)fortheGroupand$209,464,000(2008:$219,294,000)fortheparentarepledgedassecuritiesforcurrentandnoncurrentliabilitiesasdisclosedinnote19.

(i)Disposals/transfersincludeequipmenttransferredtoJamesEquipmentPtyLtdfromparentandothersubsidiaryentitiesforonsaletoexternalthirdpartiesandisreflectedaspartofJamesEquipment’sinventory,operatingresultsandcashflows.

Impairment

Atotalimpairmentlossof$18,273,000wasincurredacrosstheGroup’sentirefleetoffixedassetsavailableforhire(includingassetsheldforsale-$1,323,000)duringtheyearended30June2009.Impairmentshavebeenrecordedagainstindividualassetswherethecarryingamountexceededthehigheroffairvaluelesscoststosellandvalueinuseonanassetbyassetbasis.Impairmentsforassetsheldforsalehavebeenrecordedagainstindividualassetswherethecarryingamountexceededthefairvaluelesscoststosell.

Theimpairmentlosshasbeenrecognisedintheincomestatementlineitem‘Impairmentexpense’andrelatesentirelytotheLiftingSolutionssegment.Theseverecontractionoftheindustrialservices,non-residentialconstructionandcapitalequipmentmarketswithinAustraliahasimpactedtheabilityofthegrouptorecoverthecarryingvalueofcertainindividualassetsthrougheitheruseorsale.Furthernegativeimpactsfromtheeconomicslowdownhaveresultedindecreasesinproductionlevelsandprojectsofmajorcustomersandanincreasednumberofminingandindustrialsitesgoingintocareandmaintenancephases.Thesefactorshavefurtherimpactedresalevaluesforusedcranesandaccessequipmentwhichhasresultedinreductionstofairvalues.


66



$’000 $’000 $’000 $’000

16. INTANGIBLE ASSETS

(a) Opening balance at 1 July

Goodwill 109,169 111,496 40,774 40,026

Contractualrights(netcarryingamount) 2,152 3,228 2,152 3,228

Licence(netcarryingamount) 1,083 2,083 - -

Totalnetcarryingamounts 112,404 116,807 42,926 43,254

(b) Closing balance at 30 June

Goodwill 17 90,433 109,169 40,774 40,774

Contractualrights(netcarryingamount) 1,076 2,152 1,076 2,152

Licence(netcarryingamount) - 1,083 - -

Totalnetcarryingamounts 91,509 112,404 41,850 42,926

(c) Reconciliations

Goodwill

Carryingamountatbeginningnetofimpairment 109,169 111,496 40,774 40,026

Impairment (18,736) (2,327) - -

Additionsthroughtransferfromsubsidiary - - - 748

Carryingamountatendnetofimpairment 90,433 109,169 40,774 40,774

Representedby:

Cost(grosscarryingamount) 111,496 111,496 40,774 40,774

Accumulatedimpairment (21,063) (2,327) - -


Contractual rights

Carryingamountatbeginningnetofaccumulatedamortisationandimpairment 2,152 3,228 2,152 3,228Amortisationchargefortheyear (1,076) (1,076) (1,076) (1,076)

Carryingamountatendnetofaccumulatedamortisationandimpairment 1,076 2,152 1,076 2,152

Representedby:

Cost(grosscarryingamount) 5,380 5,380 5,380 5,380

Accumulatedamortisationandimpairment (4,304) (3,228) (4,304) (3,228)


Contractualrightsareamortisedonastraightlinebasisoverthelifeofthecontract.


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$’000 $’000 $’000 $’000

16. INTANGIBLE ASSETS (CONTINUED)

Licence

Carryingamountatbeginningnetof

accumulatedamortisationandimpairment 1,083 2,083 - -

Amortisationchargefortheyear (1,000) (1,000) - -

Impairment (83) - - -

Carryingamountatendnetofaccumulatedamortisationandimpairment - 1,083 - -

Representedby:

Cost(grosscarryingamount) 3,000 3,000 - -

Accumulatedamortisationandimpairment (3,000) (1,917) - -

Netcarryingamount - 1,083 - -

LicencerepresentstheTadanodistributionlicencegrantedforaminimumof3yearswhichexpiredinJuly2009.

17. IMPAIRMENT TESTING OF GOODwILL

Goodwillacquiredthroughbusinesscombinationshasbeenallocatedtogroupsofcashgeneratingunitsforimpairmenttesting.Therecoverableamountofthegroupshasbeendeterminedbasedonavalueinusecalculationsusingcashflowprojectionspremisedonfinancialprojectionsapprovedbytheboardofdirectorscoveringthenextfinancialyear.Cashflowsbeyondthisperiodareextrapolatedusinganaverage4%growthrateovertheperiodwhichisdeemedtobestreflectareasonableperiodforextrapolatingcashflows(uptoamaximumof10years)ofthegroupofcashgeneratingunitsbeingtested.Thediscountrateappliedtothecashflowprojectionsis13.9%(2008:15.7%)beingtheGroup’spre-taxweightedaveragecostofcapital.AllvariablesimpactingtheWACCcalculationhavebeenupdatedtoreflectthecurrentcompanyandmarketconditions.

Carryingamountofgoodwillallocatedtoeachcashgeneratingunit(CGU)grouping:

•BoomSherrin 41,818 41,818 - -

•CraneHire 47,261 47,261 40,774 40,774

•CraneSales - 18,736 - -

•CraneMaintenance 1,354 1,354 - -

90,433 109,169 40,774 40,774

Key assumptions used in value in use calculations

Thekeyassumptiononwhichmanagementhasbaseditscashflowprojectionswhendeterminingthevalueinuseofthecashgeneratingunitsisthatprojectedmarginsaredeterminedbasedonhistoricalperformances,adjustedforinternal/externalchangesanticipatedintheforecastyear.

Impairment losses recognised

Animpairmentlossof$18,736,000basedonavalueinusecalculationrelatingtogoodwillattributabletotheJamesEquipmentbusinesswasrecognisedduringtheyearended30June2009.

Theimpairmentlosshasbeenrecognisedintheincomestatementlineitem‘Impairmentexpense’andiswithinthereportableCraneSalesandServicesegment.TheimpairmentrelatestotheJamesEquipmentbusiness(Boom’snewandusedcranesalesbusiness)whichhasbeenheavilyimpactedbythecontractionofcapitalequipmentmarketswithinAustraliaandoverseas.MarketuncertaintyhasledtoincreaseddifficultyinsellingcraneswithfluctuationsinforeigncurrencyresultinginthecostofcraneswithinAustraliaincreasingsignificantlyandanumberofcustomersnolongerbeingabletohonourtheircontractualpurchasecommitmentsduetoaninabilitytoaccessfinancing.Thesefactorshaveledtodecreasedsalesvolumesandasaresult,thecurrentandforecastresultsdonotsupportthecarryingvalueofgoodwillpreviouslycarriedinthebalancesheet,whichhasbeenfullyimpaired.


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17. IMPAIRMENT TESTING OF GOODwILL (CONTINUED)

In2008animpairmentlossof$2,327,000wasrecognisedintheCraneMaintenancegroupofCGU’sandnofurtherimpairmenthasbeenrequiredinthecurrentyear.

Allocation of Goodwill

Thegroupallocatesgoodwillacquiredinabusinesscombinationtothegroupsofcashgeneratingunitswhichareexpectedtobenefitfromthesynergiesofthecombination.Thisallocationwasreviewedat30June2009inordertoreflectboththelevelwithintheGroupthatgoodwillismonitoredinternallyandthenatureofthesynergiesobtainedthroughhistoricalbusinesscombinations.


$’000 $’000 $’000 $’000

18. TRADE AND OTHER PAYABLES

Current

Tradepayables (i) 18,621 39,620 10,911 14,000

Otherpayables 4,919 4,461 2,789 2,252

Amountstowhollyownedcontrolledentities - - 30,397 31,132

Totalcurrenttradeandotherpayables 23,540 44,081 44,097 47,384

(i)Tradepayablesarenoninterestbearingandarenormallysettledon30dayterms.

19. INTEREST BEARING LOANS AND BORROwINGS

Debt restructure

On23September2008,theGroupannouncedthatithadsuccessfullycompletedadebtrefinancingfora$175million3yearrevolvingdebtfacility,anda3year$32millionworkingcapitalandgeneraltransactionalbankingfacilitywithnabCapital,BankWest&GECapital.Inaddition,Boomretainedmanyofitsexistingequipmentfinanceleaseandhirepurchasefacilities.Attheinceptionofthenewfundingarrangement,$56millionofleaseswereincorporatedintothe3yearrevolvingdebtfacilitywithapproximately$98millionofleasesretainedwithnon-participatingfinanciers.

Covenant Position

Asat30June2009,theGroupwouldhavebreachedtheearningsleveragecovenantinitsrevolvingdebtfacility.However,priorto30June2009,Boomreceivedanunconditionalwaiver.

Boomisincompliancewithallotherbankingcovenantsat30June2009,includingtheDebtServiceCoverRatio.

Classification of borrowings (2008)

Asnotedinthe30June2008AnnualFinancialStatements,theGroupwasinbreachofitsinterestcoverbankingcovenantasat30June2008withtheNationalAustraliaBank(“NAB”)andtheAustralia&NewZealandBank(“ANZ”).Thecompany’sinterestcoverrequirementcalculatedonEarningsBeforeInterestandTaxbeing3.0timesinterestwas2.41timesat30June2008.Thisresultedinthereclassificationof$72.4millionofnon-currentborrowingswiththeNABandANZintocurrentborrowings.

Asaconsequenceofthecompletionofthedebtrestructure,therehasbeenareallocationofdebtbetweencurrentandnon-currentin2009.

Debt repayment

Fromoperatingcashflows,BoommadeseveraldebtreductionpaymentsfromDecember2008toJune2009withaconsequentdecreaseininterestbearingloansandborrowingsby$9.0m.


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$’000 $’000 $’000 $’000

19. INTEREST BEARING LOAN AND BORROwINGS (CONTINUED)

Current

Obligationsunderfinanceleasesandhirepurchasecontracts 29,169 110,206 19,082 71,851

Securedbankloans 4,049 8,094 - -

Billsofexchange–secured - 26,615 - 12,500

Otherloans–secured 12,351 10,698 3,179 2,996

Totalcurrentinterestbearingliabilities 26(b) 45,569 155,613 22,261 87,347

Non current

Obligationsunderfinanceleasesandhirepurchasecontracts 78,558 71,114 52,958 43,388

Securedbankloans 121,811 25,808 112,060 -

Billsofexchange-secured - 2,354 - -

Totalnoncurrentinterestbearingliabilities 26(b) 200,370 99,276 165,018 43,388

Totalinterestbearingliabilities 34(d) 245,939 254,889 187,279 130,735

CONSOLIDATED 2009 2008

Terms and Debt Repayment Schedule $’000 $’000

CurrencyNominal

interest rateYear of

maturity Carrying amount

Financeleasesandhirepurchasecontracts AUD 7.7% 2009 - 2013 107,727 181,320

Securedbankloan AUD 6.4% 2009 - 2012 125,861 33,902

Billsofexchange AUD - - - 28,969

Otherloans AUD 4.2% 2009 12,351 10,698

Totalinterestbearingliabilities 245,939 254,889

PARENT 2009 2008

$’000 $’000

CurrencyNominal

interest rateYear of

maturity Carrying amount

Financeleasesandhirepurchasecontracts AUD 7.6% 2009 - 2013 72,040 115,239

Securedbankloan AUD 6.3% 2009 - 2011 112,060 -

Billsofexchange AUD - - - 12,500

Otherloans AUD 2.3% 2009 3,179 2,996

Totalinterestbearingliabilities 187,279 130,735

Refertonote34(d)fordisclosureoffairvalueversuscarryingvalue.


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$’000 $’000 $’000 $’000

19. INTEREST BEARING LOANS AND BORROwINGS (CONTINUED)

Financing facilities

Financing facilities available

Atreportingdate,thefollowingfinancingfacilitieshadbeennegotiatedandwereavailable:

Totalfacilities:

–bankoverdraft 1,500 2,000 1,500 1,000

–bankloansandborrowings 275,758 254,889 275,758 236,676

277,258 256,889 277,258 237,676

Facilitiesusedatreportingdate:

–bankoverdraft - - - -

–bankloansandborrowings 245,939 254,889 187,279 130,735

–utilisedbycontrolledentities - - 58,660 105,941

245,939 254,889 245,939 236,676

Facilitiesunusedatreportingdate:

–bankoverdraft 1,500 2,000 1,500 1,000

–bankloansandborrowings 29,819 - 29,819 -

31,319 2,000 31,319 1,000

Assets pledged as security

FixedandfloatingchargesareheldoveralloftheassetsoftheGroupincludingthefollowingfinancialassetsplantandequipment:

Current

–Cashatbankandinhand 10,588 1,801 8,084 590

–Tradeandotherreceivables 52,015 77,071 118,989 72,882

–Assetsclassifiedasheldforsale 5,843 1,925 5,841 1,703

–Assetsclassifiedasheldforsaleunderlease 1,955 4,293 1,901 1,605

Totalcurrentassetspledgedassecurity 70,401 85,090 134,815 76,780

Non current

–Plantandequipment 129,746 151,455 77,784 87,718

–Plantandequipmentunderlease (i) 222,110 227,183 131,680 131,576

Totalnoncurrentassetspledgedassecurity 351,856 378,638 209,464 219,294

Totalvalueofassetspledgedassecurity 422,257 463,728 344,279 296,074

(i)SpecificchargesareheldbyeachfinancieroverindividualassetsunderleasewhichwillfallundertheSyndicatedfixedandfloatingchargeuponextinguishmentoftheleaseliability.


71



$’000 $’000 $’000 $’000

20. PROVISIONS

Employee leave entitlements

At1July 12,389 10,168 9,217 6,767

Arisingduringtheyear 6,138 8,013 5,726 7,031

Utilised (5,756) (5,792) (5,069) (4,581)

At30June 12,771 12,389 9,874 9,217

Current 27 12,110 11,871 9,463 8,932

Noncurrent 27 661 518 411 285

12,771 12,389 9,874 9,217

Restructuring

At1July - - - -

Arisingduringtheyear 949 - 898 -

Utilised - - - -

At30June (i) 949 - 898 -

Current 949 - 898 -

Noncurrent - - - -

949 - 898 -

Total Provisions

Current 13,059 11,871 10,361 8,932

Noncurrent 661 518 411 285

13,720 12,389 10,772 9,217

(i)Duringtheyearended30June2009,theGroupcommittedtoaplantorestructureseveralbusinessunitsduetoadecreaseindemand.Followingtheannouncementoftheplan,theGrouprecognisedaprovisionof$949,000forexpectedrestructuringcosts,includingcontractterminationcosts,consultingfeesandemployeeterminationcosts.Estimatedcostswerebasedonthetermsoftherelevantcontracts.Therestructuringisexpectedtobecompletedby31August2009.


72



$’000 $’000 $’000 $’000

21. DERIVATIVE FINANCIAL INSTRUMENTS

Current liabilities

Forwardforeignexchangecontracts

–cashflowhedges* 403 - - -

403 - - -

*Acurrentassetof$22,000relatingtoforeignexchangecashflowhedgesasat30June2008isincludedwithin‘Other’disclosedinnote12.

Instruments used by the Group

TheGroupispartytoderivativefinancialinstrumentsinthenormalcourseofbusinessinordertohedgeexposuretofluctuationsinforeignexchangeratesinaccordancewiththeGroup’sfinancialriskmanagementpolicies(refertonote4).

Thecranesalesoperationimportsinventoryfromvariousoverseascountries.Inordertoprotectagainstexchangeratemovements,theGrouphasenteredintoforwardexchangecontractstopurchasetheforeigncurrencies.Thesecontractsarehedginghighlyprobableforecastedpurchasesandtheyaretimedtomaturewhenpaymentsarescheduledtobemade.

Theportionofthegainorlossonthehedginginstrumentthatisdeterminedtobeaneffectivehedgeisrecogniseddirectlyinequity.Whenthecashflowsoccur,theGroupadjuststheinitialmeasurementofthecomponentrecognisedinthebalancesheetbytherelatedamountdeferredinequity.

Therewasnohedgeineffectivenessinthecurrentorprioryear.

Risk exposures

InformationabouttheGroup’sandtheparententity’sexposuretocreditrisk,foreignexchangeandinterestrateriskisprovidedinnote4.Themaximumexposuretocreditriskatthereportingdateisthecarryingamountofeachclassofderivativefinancialassetsmentionedabove.

22. OTHER LIABILITIES

Current

PAYGtaxwithheld 742 1,179 567 926

Goodsandservicestax 2,126 2,665 271 2,061

Otheraccruedexpenses 3,614 3,496 2,936 3,055

Totalothercurrentliabilities 6,482 7,340 3,774 6,042

23. CONTRIBUTED EQUITY

(a) Issued and paid up capitalOrdinarysharesfullypaid 234,476 234,476 234,476 234,476

Effective1July1998,theCorporationslegislationinplaceabolishedtheconceptsofauthorisedcapitalandparvalueshares.Accordingly,theParentdoesnothaveauthorisedcapitalnorparvalueinrespectofitsissuedshares.

Fullypaidordinarysharescarryonevotepershareandcarrytherighttodividends.


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CONSOLIDATED PARENT Note 2009 2008

No. of shares $’000 No.ofshares $’000

23. CONTRIBUTED EQUITY (CONTINUED)

(b) Movements in shares on issue

Beginningofthefinancialyear 170,827,735 234,476 170,602,360 234,476

Issuedduringtheyear:

–employeeshareincentiveschemes (i) 531,467 - 225,375 -

Totalissuedduringtheyear 531,467 - 225,375 -

Endofthefinancialyear 171,359,202 234,476 170,827,735 234,476

(i)Thisamountrepresentsthegrantingof531,467(2008:225,375)ordinarysharestoemployeesaspartoftheemployeeshareincentiveschemesfornilconsiderationduringthefinancialyear.Refertonote27forfurtherdetails.

CONSOLIDATED PARENT

Note 2009 2008 2009 2008

24. RETAINED EARNINGS $’000 $’000 $’000 $’000

Balanceatthebeginningofyear 40,740 38,827 (4,254) 6,507

Net(loss)/profitfortheyear (27,486) 18,643 (1,382) 5,968

Totalavailableforappropriation 13,254 57,470 (5,636) 12,475

Dividendspaid 8(a) (3,422) (16,729) (3,422) (16,729)

Balanceatendofyear 9,832 40,740 (9,058) (4,254)

25. RESERVES

Employee equity benefits reserve

Balanceatthebeginningofyear 314 293 302 281

Sharebasedpayments (i) 99 21 99 21

Balanceatendofyear 413 314 401 302

Cash flow hedge reserve

Balanceatthebeginningofyear 15 (976) - -

Netmovementoncashflowhedges (ii) (15) 991 - -

Balanceatendofyear - 15 - -

Totalreserves 413 329 401 302

(i)Theemployeeequitybenefitsreserveisusedtorecordthevalueofsharebasedpaymentstoemployees,includingkeymanagementpersonnel,aspartoftheirremuneration.Refertonote27forfurtherdetailsoftheseplans.

(ii)Thecashflowhedgereserveisusedtorecordtheportionofthegainorlossonahedginginstrumentinacashflowhedgethatisdeterminedtobeaneffectivehedge.Thecumulativedeferredgainorlossonthehedgeisrecognisedinprofitorlosswhenthehedgedtransactionimpactstheprofitorloss,orisincludedasabasisadjustmenttothenon-financialhedgeditem.


74



$’000 $’000 $’000 $’000

26. COMMITMENTS

(a) Operating leases commitments

TheGrouphasenteredintocommercialleasesoncertainplantandequipment,motorvehiclesandproperty.Theseleaseshavetermsrangingfrom1to10years.

Minimumleasepayments

–withinoneyear 13,120 9,728 8,117 5,324

–afteroneyearbutnotmorethanfiveyears 15,332 14,280 11,270 8,736

–morethanfiveyears 1,921 3,488 1,359 2,748

Aggregateoperatingleaseexpenditurecontractedforatreportingdate 30,373 27,496 20,747 16,808

(b) Interest bearing loans and borrowings commitments

TheGrouphasinterestbearingloansandborrowingsforvariousitemsofplantandequipmentforperiodsofbetween1to5years.

–withinoneyear 64,749 99,219 37,998 48,525

–afteroneyearbutnotmorethanfiveyears 215,980 194,334 177,293 102,885

–morethanfiveyears - - - -

Totalminimumpayments 280,729 293,553 215,291 151,410

–futurefinancecharges (34,790) (38,664) (28,012) (20,675)

Netliability 245,939 254,889 187,279 130,735

–currentliability 19 45,569 155,613 22,261 87,347

–noncurrentliability 19 200,370 99,276 165,018 43,388

245,939 254,889 187,279 130,735

Theparententityhasprovidedguaranteesinrespectofinterestbearingloansandborrowingsasdisclosedinnote33.


75



$’000 $’000 $’000 $’000

26. COMMITMENTS (CONTINUED)

(c) Capital commitments

Capitalexpenditurecontractedforatreportingdatebutnotrecognisedasliabilitiesareasfollows:

Plant and equipment

–withinoneyear 11,606 28,845 11,606 23,894

–afteroneyearbutnotmorethanfiveyears 24,508 - 24,508 -

–morethanfiveyears - - - -

36,114 28,845 36,114 23,894

Leadtimesoncranesareupto18months,consequentlythecapitalcommitmentsnotedaboverelatetothe2010and2011financialyears.

27. EMPLOYEE BENEFITS

(a) Employee benefits

Theaggregateemployeebenefitliabilityiscomprisedof:

–accruedsalaries,wagesandoncosts 3,024 4,187 2,709 3,301

–provisions(current) 20 12,110 11,871 9,463 8,932

–provisions(noncurrent) 20 661 518 411 285

15,795 16,576 12,583 12,518

(b) Employee share incentive schemes

TwoemployeeshareincentiveschemeswereestablishedbyBoomLogisticsLimitedtoassistinattracting,retainingandmotivatingkeyemployeesasfollow:

• ExemptSharePlan(ESP);and

• EmployeeShareTrust(EST).

Thetermsandconditionsoftheschemesaresummarisedasfollow:

Exempt share plan (ESP)

Underthisscheme,allpermanentemployees(excludingdirectorsandexecutives)ofBoomLogisticsLimitedwithtwelvemonthscontinuousservicewereoffered1,000ordinarysharesinOctober2003and$1,000worthofordinarysharesinOctober/November2004inBoomLogisticsLimitedfornilconsideration.Theordinarysharesissuedareheldintrustfortherequisitethreeyearsrestrictiveperiodandwillbereleasedearlierintheeventofcessationofemployment.TheordinarysharesissuedrankequallywithandhavethesamerightsasotherfullypaidordinarysharesofBoomLogisticsLimited.Thisschemehassubsequentlybeendiscontinuedwithonlytheordinarysharesissuedinpreviousfinancialyearsremainingintheshareplan.

Employee share trust (EST)

Underthisscheme,certainemployees(excludingnonexecutivedirectors)approvedbytheBoardofDirectorsareofferedordinarysharesinBoomLogisticsLimitedbywayofShareUnitsissuedbytheSharePlanTrustee.TheShareUnitsarefundedbywayofaninterestfreeloanprovidedbytheSharePlanTrustee.TheordinarysharesissuedrankequallywithandhavethesamerightsasotherfullypaidordinarysharesofBoomLogisticsLimited.


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27. EMPLOYEE BENEFITS (CONTINUED)

(b) Employee share incentive schemes (continued)

2009 2008

Number of Shares

NumberofShares

Balanceatbeginningofyear 500,534 612,704

–issuedfornilconsideration 978,868 225,375

–sold/transferredduringtheyear (118,490) (117,533)

–forfeitedduringtheyear (203,137) (220,012)

Balanceatendofyear 1,157,775 500,534

28. EVENTS AFTER THE BALANCE SHEET DATE

Tax claim

Consistentwithinformationpreviouslycommunicatedtothemarket,theGroupundertookataxreviewwhichresultedintaxadjustmentsbeingidentifiedthatwereavailabletobeclaimedforthefinancialyearsended30June2005to30June2008inclusive;beingthetaxreturnperiodsstillopentoamendedassessmentswiththeAustralianTaxationOffice(“ATO”)(refertonote6).

Additionaltaxadjustmentsforthefinancialyearsended30June2002to30June2004werealsoidentifiedandquantified.Whilsttheseperiodswereconsidered“closed”tofurtherclaims,andanyoutcomewaspurelyatthediscretionoftheCommissioner,theGroupmadeaformalrequesttotheCommissioneraskingthatheexercisehisdiscretiontoallowaclaimforthisperiodtoproceed.

On23July2009theGroupwasnotifiedthattheATOhasconfirmedtheiracceptanceinprincipleoftheGroupsobjectionandrequestedsubmissionofanamendedassessmentfortheirconsiderationandapproval.Ifsuccessful,thebenefittothegroupisexpectedtoapproximate$3.9mplusinterest.Thishasbeentreatedasanon-adjustingsubsequenteventinthe30June2009financialstatements.

CONSOLIDATED PARENT 2009 2008 2009 2008

29. AUDITORS’ REMUNERATION $ $ $ $

Amounts received or due and receivable by KPMG* for:

–anauditorreviewofthefinancialreportoftheentityandanyotherentityintheconsolidatedgroup 220,000 - 220,000 -

–taxationservicesinrelationtotheentityandanyotherentityintheconsolidatedgroup 167,986 - 167,986 -

–duediligenceservicesinrelationtotheentityandanyotherentityintheconsolidatedgroup 285,000 - 285,000 -

672,986 - 672,986 -

*PriortoappointmentasauditorKPMGreceived$294,145infeesfortheperiodJulytoSeptember2008.

Amounts received or due and receivable by PKF (previous audit firm) for:

–anauditorreviewofthefinancialreportoftheentityandanyotherentityintheconsolidatedgroup 6,870 158,850 6,870 158,850

–otherservicesinrelationtotheentityandanyotherentityintheconsolidatedgroup 12,000 26,960 12,000 26,960

18,870 185,810 18,870 185,810

Informationwithrespecttothenumberofordinarysharesissuedandallocatedundertheemployeeshareincentiveschemesisasfollows:


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30. KEY MANAGEMENT PERSONNEL

(a) Details of directors

(i) Non-executive directors

RodneyJohnRobinson Chairman(Non-executive)

TerranceAlexanderHebiton Director(Non-executive)

Dr.HuwGeraintDavies Director(Non-executive)

TerrenceCharlesFrancis Director(Non-executive)

JaneMargaretHarvey Director(Non-executive)(resigned31March2009)

(ii) Executive directors

BrendenMitchell ManagingDirector

(b) Details of other key management personnel

Thefollowingpersonshadauthorityandresponsibilityforplanning,directingandcontrollingtheactivitiesoftheGroup,directlyorindirectly,duringthereportingperiod:

IonaMacPherson ChiefFinancialOfficerandCompanySecretary

PeterO’Shannessy ChiefOperatingOfficer

RosannaHammond GeneralManager-HumanResource

PaulMartinez ChiefInformationOfficer(appointed1October2008)

TonySpassopoulos GeneralManager-SalesandMarketing(appointed27October2008)

TereseWithington GeneralManager-SherrinHirePtyLtd(BoomSherrin)

JamesCarr FormerGeneralManager-SalesandMarketing(resigned22August2008)

(c) Summarised compensation of key management personnel

Summaryofkeymanagementpersonnelcompensationinthefollowingcategoriesisasfollows:


$ $ $ $

Short-termemployeebenefits 2,581,753 1,987,064 2,293,614 1,672,691

Postemploymentbenefits 260,039 260,584 227,626 240,665

Otherlongtermbenefits 9,568 2,067 8,414 1,988

Terminationbenefits - 181,561 - 167,811

Sharebasedpayments 93,870 5,912 86,711 5,912

Totalcompensation 2,945,230 2,437,188 2,616,365 2,089,067

RefertotheRemunerationReportintheDirectors’Reportfordetailcompensationdisclosureonkeymanagementpersonnel.TheGrouphastakenadvantageofthereliefprovidedbytheCorporationsRegulation2M.6.04totransferthedetailedcompensationdisclosuresonkeymanagementpersonneltotheDirectors’Report.


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30. KEY MANAGEMENT PERSONNEL (CONTINUED)

(d) Shareholdings of key management personnel

Ordinary shares held in Boom Logistics Limited (number) 30 June 2009

Balance 1 July 08

Granted and vested

Net change other (i)

Balance 30 June 09

Granted but not vested

Non-Executive&ExecutiveDirectors

JohnRobinson 300,000 - - 300,000 -

TerranceHebiton 152,364 - 50,000 202,364 -

Dr.HuwDavies 135,316 - - 135,316 -

TerrenceFrancis 66,772 - 10,000 76,772 -

JaneHarvey(ii) 61,000 - n/a n/a -

BrendenMitchell 300,000 - 340,000 640,000 287,186

Executives

IonaMacPherson 45,950 - 15,590 61,540 90,452

PeterO’Shannessy - - 99,307 99,307 108,543

RosannaHammond - - - - 39,196

PaulMartinez - - - - 90,452

TonySpassopoulos - - - - 75,377

TereseWithington - - - - 60,301

JamesCarr(ii) 40,000 - n/a n/a n/a

Total 1,101,402 - 514,897 1,515,299 751,507

Ordinary shares held in Boom Logistics Limited (number) 30 June 2008

Balance 1 July 07

Granted and vested

Net change other (i)

Balance 30 June 08

Granted but not vested

Non-Executive&ExecutiveDirectors

JohnRobinson 104,272 - 195,728 300,000 -

TerranceHebiton 102,364 - 50,000 152,364 -

Dr.HuwDavies 85,316 - 50,000 135,316 -

TerrenceFrancis 44,272 - 22,500 66,772 -

JaneHarvey 15,800 - 45,200 61,000 -

BrendenMitchell - - 300,000 300,000 -

MarkLawrence(ii) 306,801 23,538 n/a n/a -

Executives

IonaMacPherson - - 45,950 45,950 17,886

PeterO’Shannessy - - - - -

JamesCarr 20,000 - 20,000 40,000 19,473

RosannaHammond - - - - -

TeresaWithington - - - - -

BrianPraetz(ii) 117,181 15,000 n/a n/a -

AdamWatson(ii) n/a - n/a n/a -

StevenGoulding(ii) - - n/a n/a -

Total 796,006 38,538 729,378 1,101,402 37,359


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30. KEY MANAGEMENT PERSONNEL (CONTINUED)

(d) Shareholdings of key management personnel (continued)

(i) These amounts represent ordinary shares purchased or sold directly or indirectly by the directors and executives during the financial year. These transactions have no connection with their roles and responsibilities as employees of the Group.

(ii) These director and executives have either resigned or were not considered key management personnel during the current financial year.

AllequitytransactionswithkeymanagementpersonnelotherthanthosearisingfromtheexerciseofremunerationoptionshavebeenenteredintoundertermsandconditionsnomorefavourablethanthosetheGroupwouldhaveadoptedifdealingatarm’slength.

(e) Other transactions and balances with key management personnel

Noamountswererecognisedatthereportingdateinrelationtoothertransactionswithkeymanagementpersonnel.

31. SEGMENT INFORMATION

TheGroup’sprimarysegmentreportingformatisbusinesssegmentsastheGroup’srisksandratesofreturnareaffectedpredominantlybydifferencesintheproductsandservicesproduced.AstheGroupoperatesinAustraliaonly,thereisnosecondarygeographicalsegmentreported.

TheGroupcomprisesthefollowingmainbusinesssegments:

Lifting Solutions

Hireofliftingequipmenttovariousindustries.

Crane Sales and Service

Saleofmobilecranes,associatedsparepartsandaftersalesservice.ThisbusinesssegmentcommencedupontheassetacquisitionoftheJamesGroupon1August2006andGMBadenon6March2007.

Inter-segmentpricesaredeterminedonanarm’slengthbasis.Segmentrevenue,segmentexpenseandsegmentresultincludetransfersbetweenbusinesssegments.Thosetransfersareeliminatedonconsolidation.


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31. SEGMENT INFORMATION (CONTINUED)

Thefollowingtablespresentrevenueandprofitinformationandcertainassetandliabilityinformationregardingbusinesssegments


Lifting Solutions


Consolidated

$’000 $’000 $’000

Segment revenueTotalexternalrevenue 347,817 50,019 397,836

Inter-segmentrevenue - 17,680 17,680

Totalsegmentrevenue 347,817 67,699 415,516

Inter-segmentelimination (17,680)

Un-allocatedrevenue 1,668

Totalconsolidatedrevenue 399,504

Segment resultSegmentresults 29,587 (18,875) 10,711


Un-allocatedexpenses (18,087)

Financecosts-net (16,504)

Incometaxexpense (1,569)

Netprofitfortheyear (27,486)

Segment assets and liabilitiesSegmentassets 503,682 28,577 532,260

Inter-segmentelimination 24,453

Un-allocatedassets 4,763

Totalassets 561,475

Segmentliabilities 38,333 30,266 68,598


Un-allocatedliabilities 272,609

Totalliabilities 316,754

Other segment informationCapitalexpenditure 37,626 338 37,964

Depreciationandamortisation 35,126 1,221 36,347

Impairmentexpense 18,173 21,548 39,721

Cash flow informationNetcashflowfromoperatingactivities 64,190 3,404 67,594

Netcashflowfrominvestingactivities (26,987) (173) (27,160)

Netcashflowfromfinancingactivities (28,605) (3,042) (31,647)

Yearended:30June2009


81


31. SEGMENT INFORMATION (CONTINUED)Year ended 30 June 2008

Lifting Solutions


Consolidated

$’000 $’000 $’000

Segment revenueTotalexternalrevenue 341,185 68,609 409,794

Inter-segmentrevenue - 6,212 6,212

Totalsegmentrevenue 341,185 74,821 416,006


Un-allocatedrevenue 473

Totalconsolidatedrevenue 410,267

Segment resultSegmentresults 51,358 6,954 58,312


Un-allocatedexpenses (10,211)

Financecosts-net (19,198)

Incometaxexpense (9,208)

Netprofitfortheyear 18,643

Segment assets and liabilitiesSegmentassets 544,424 48,281 592,705

Inter-segmentelimination 9,214

Un-allocatedassets 4,013

Totalassets 605,932

Segmentliabilities 45,059 27,943 73,002


Un-allocatedliabilities 266,599

Totalliabilities 330,387

Other segment informationCapitalexpenditure 76,742 323 77,065

Depreciationandamortisation 39,085 3,456 42,541

Cash flow informationNetcashflowfromoperatingactivities 52,061 15,460 67,521

Netcashflowfrominvestingactivities (26,465) (293) (26,758)

Netcashflowfromfinancingactivities (31,963) (16,825) (48,788)


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32. RELATED PARTY DISCLOSURE

TheconsolidatedfinancialstatementsincludethefinancialstatementsofBoomLogisticsLimitedandthesubsidiarieslistedinthefollowingtable:

NameCountry of

incorporation % Equity interest Investment

2009 2008 2009 2008 % % $’000 $’000

JamesEquipmentPtyLtd Australia 100 100 - -

SherrinHirePtyLtd Australia 100 100 60,598 60,598

BoomLogistics(QLD)PtyLtd Australia 100 100 15,896 15,896

BoomLogistics(VIC)PtyLtd Australia 100 100 4,021 4,021

HilyteAustraliaPtyLtda Australia 100 100 - -

Totalinvestmentinsubsidiaries 80,515 80,515

aInvestmentisheldbyBoomLogistics(QLD)PtyLtd.HilyteAustraliaPtyLtdwaswoundupandderegisteredon19November2008astheentityhasbeenadormantcompanysinceacquisitionin2003.

BoomLogisticsLimitedistheultimateparentcompany.

Detailsrelatingtokeymanagementpersonnel,includingremunerationpaid,areincludedinnote30.

Salestoandpurchasesfromrelatedpartiesaremadeatarm’slengthtransactionsbothatnormalmarketpricesandonnormalcommercialterms.Outstandingbalancesatyearendareunsecured.

Termsandconditionsofthetaxfundingarrangementaresetoutinnote6(e).

Contributionstosuperannuationfundsonbehalfofemployeesaredisclosedinnote5(b).


$ $ $ $

Thefollowingtransactionsoccurredwithrelatedparties:

Sale of services

Hireofliftingequipmenttosubsidiaries - - 1,459,622 3,803,189

Purchase of goods and services

Hireofliftingequipmentfromsubsidiaries/otherrelatedparties - - 4,709,054 4,447,011

Purchaseofcranesandsparepartsfromsubsidiary/otherrelatedparty - - 16,701,478 -

Tax consolidation legislation

Currenttaxpayableassumedfromwholly-ownedtaxconsolidatedentities - - 2,501,083 4,649,775


83


32. RELATED PARTY DISCLOSURE (CONTINUED) CONSOLIDATED PARENT 2009 2008 2009 2008

$ $ $ $Noallowanceforimpairmentofdebtshasbeenraisedinrelationtoanyoutstandingbalances,andnoexpensehasbeenrecognisedinrespectofbadorimpaireddebtsduefromrelatedparties.

Guarantees

Theparententityhasprovidedguaranteesinrespectof:

–Financeleasesandhirepurchasecontracts - - 35,687,702 66,081,000

–Securedbankloans - - 22,972,704 41,604,000

–Billsofexchange - - - 16,469,000

33. DEED OF CROSS GUARANTEE

PursuanttoClassOrder98/1418,thewhollyownedsubsidiarieslistedbelowarerelievedfromtheCorporationsAct2001requirementsforpreparation,auditandlodgementoffinancialreportsanddirectors’report.

ItisaconditionoftheClassOrderthatBoomLogisticsLimitedandeachofthesubsidiariesenterintoaDeedofCrossGuarantee.TheeffectoftheDeedisthatBoomLogisticsLimitedguaranteestoeachcreditorpaymentinfullofanydebtintheeventofwindingupofanyofthesubsidiariesundercertainprovisionsoftheCorporationsAct2001.ThesubsidiarieshavealsogivensimilarguaranteesintheeventthatBoomLogisticsLimitediswoundup.

ThesubsidiariessubjecttotheDeedare:

–SherrinHirePtyLtd(partytotheDeedon6December2005);

–JamesEquipmentPtyLtd(partytotheDeedon3November2006byvirtueofaDeedofAssumption);

–Boom(QLD)PtyLtd(partytotheDeedon23November2007byvirtueofaDeedofAssumption);andtogetherwithBoomLogisticsLimited,representa“ClosedGroup”forthepurposesoftheClassOrder.

Theconsolidatedincomestatementandbalancesheetoftheentitiesthataremembersofthe“ClosedGroup”areasfollows:

CLOSED GROUP 2009 2008

$’000 $’000

Consolidated Income Statement

Profit/(loss)beforeincometax (27,110) 25,537

Incometaxexpense (1,093) (8,450)

Netprofit/(loss)fortheperiod (28,204) 17,087

Retainedearningsatthebeginningoftheperiod 37,547 37,189

Dividendsprovidedfororpaid (3,422) (16,729)

Retainedearningsattheendoftheperiod 5,921 37,547


84


33. DEED OF CROSS GUARANTEE (CONTINUED) CLOSED GROUP 2009 2008

$’000 $’000

Consolidated Balance Sheet

Current assetsCashandcashequivalents 9,981 1,652

Tradeandotherreceivables 50,548 72,564

Inventories 24,979 20,531

Prepaymentsandothercurrentassets 4,940 5,158

Assetsclassifiedasheldforsale 7,798 6,218

Total current assets 98,247 106,123

Non current assetsReceivables 2,163 2,630

Investments 4,021 3,950

Plantandequipment 344,392 372,803

Deferredtaxassets 4,589 3,890

Intangibleassets 87,597 108,512

Totalnoncurrentassets 442,761 491,785

Total assets 541,007 597,908

Current liabilitiesTradeandotherpayables 24,795 43,711

Interestbearingloansandborrowings 44,587 155,613

Provisions 11,569 11,324

Incometaxpayable (13,326) (1)

Othercurrentliabilities 6,029 6,752

Total current liabilities 73,655 217,399

Non current liabilitiesInterestbearingloansandborrowings 199,872 96,500

Provisions 654 508

Deferredtaxliabilities 26,025 11,160

Total non current liabilities 226,552 108,168

Total liabilities 300,207 325,567

Net assets 240,800 272,341

EquityContributedequity 234,465 234,465

Retainedearnings 5,922 37,547

Reserves 413 329

Total equity 240,800 272,341


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34. FINANCIAL INSTRUMENTS CONSOLIDATED PARENT Note 2009 2008 2009 2008

$ $ $ $

(a) Credit risk

Exposure to credit risk

ThecarryingamountoftheGroup’sfinancialassetsrepresentsthemaximumcreditexposure.TheGroup’smaximumexposuretocreditriskatthereportingdatewas:

Cashandcashequivalents

Tradeandotherreceivables

9 10,588 1,801 8,084 590

10 52,015 77,071 118,989 72,882

62,603 78,872 127,073 73,472

TotalGroup’stradereceivablesonlyrelatetoAustraliancustomers.

Thereisnosignificantconcentrationofcreditriskfortradereceivablesatthereportingdate.

Impairment losses

Tradereceivablesarenon-interestbearingandaregenerallyon30-60dayterms.Anallowanceforimpairmentlossisrecognisedwhenthereisobjectiveevidencethatanindividualtradereceivableisimpaired.Anetimpairmentlossof$1,181,000(2008:$333,000)hasbeenrecognisedbytheGroupand$509,000(2008:$286,000)bytheparentinthecurrentyear.TheseamountshavebeenincludedinotherexpensesintheIncomeStatement.

Movementsintheallowanceforimpairmentlosseswereasfollows:

Balanceat1July 828 495 441 155

Impairmentlossrecognised 1,530 1,839 623 1,430

Amountswritten-offand/orwrittenback (349) (1,506) (114) (1,144)

Balanceat30June 10 2,009 828 951 441

At30June,theaginganalysisoftradereceivablesisasfollows:

Total Current 31-60 days 31-60 days +61 days +61 days

$’000 $’000 $’000 $’000 $’000 $’000

PDNI* (i) CI^ PDNI* (i) CI^

2009Consolidated 49,548 32,760 9,020 243 5,507 2,018

Parent 33,148 19,650 9,020 243 3,307 929

2008Consolidated 74,160 44,133 19,227 - 9,972 828

Parent 46,972 29,277 10,868 - 6,386 441

*Pastduenotimpaired(‘PDNI’)^Consideredimpaired(‘CI’)

(i)Baseduponthecredithistoryoftheseclassesoftradereceivables,itisexpectedthattheseamountswillbereceived.

Duetotheshorttermnatureofthesereceivables,theircarryingamountisassumedtoapproximatetheirfairvalue.Themaximumexposuretocreditriskatreportingdateisthecarryingamountofeachclassofreceivablesmentionedabove.Therearenoreceivablesthatwouldotherwisebepastdueorimpairedwhosetermshavebeenrenegotiated.


86


34. FINANCIAL INSTRUMENTS (CONTINUED)

(b) Liquidity risk

ThetablesbelowanalysetheGroup’sandtheParententity’sfinancialliabilitiesandnetandgrosssettledderivativefinancialinstrumentsintorelevantmaturitygroupingsbasedontheremainingperiodatthereportingdatetothecontractualmaturitydate.Theamountsdisclosedarethecontractualundiscountedcashflows.

Consolidated

30 June 2009Carrying amount $’000

Contractual cashflows

$’000

6 mths or less $’000

6-12 mths

$’000

1-2 years

$’000

2-5 years

$’000

More than 5 years $’000

Non-derivative financial liabilities

Tradeandotherpayables* 23,540 (23,540) (23,540) - - - - Financeleasesandhirepurchasecontracts 107,727 (125,805) (19,895) (20,413) (28,937) (56,560) - Securedbankloans 125,861 (142,508) (6,042) (5,984) (17,050) (113,433) -

Otherloans–secured 12,351 (12,416) (12,416) - - - -

Derivative financial liabilities

Forwardexchangecontractsusedforhedgingpurchases 403 (403) (403) - - - -

269,882 (304,672) (62,295) (26,397) (45,987) (169,993) -


Contractual cashflows (i)

$’000


6-12 mths

$’000

1-2 years

$’000

2-5 years

$’000



Tradeandotherpayables* 44,081 (44,081) (44,081) - - - -Financeleasesandhirepurchasecontracts 181,320 (215,047) (26,552) (24,761) (50,782) (112,952) -Securedbankloans 33,902 (38,437) (5,251) (5,251) (11,055) (16,880) -

Billsofexchange–secured 28,969 (29,371) (26,253) (453) (907) (1,758) -

Otherloans–secured 10,698 (10,698) (9,699) (999) - - -

Derivative financial liabilities

Forwardexchangecontractsusedforhedgingpurchases (22) 22 22 - - - -

298,948 (337,612) (111,814) (31,464) (62,744) (131,590) -

*Excludesderivatives(shownseparately).

(i)Thecontractualcashflowsdonotreflectthecurrent/non-currentsplitofinterestbearingliabilitiesdisclosedontheBalanceSheetastheyhavebeenclassifiedtakingintoaccountofthedebtwaiversobtainedfromtheNationalAustraliaBankandtheAustralia&NewZealandBanksubsequentto30June2008.


87



(b) Liquidity risk (continued)

Parent


Contractual cashflows

$’000


6-12 mths

$’000

1-2 years

$’000

2-5 years

$’000



Tradeandotherpayables 44,097 (44,097) (44,097) - - - - Financeleasesandhirepurchasecontracts 72,040 (84,559) (13,378) (14,381) (19,246) (37,554) - Securedbankloans 112,060 (127,553) (3,559) (3,501) (7,060) (113,433) - Otherloans–secured 3,179 (3,179) (3,179) - - - -

231,376 (259,388) (64,213) (17,882) (26,306) (150,987) -


Contractual cashflows (i)

$’000


6-12 mths

$’000

1-2 years

$’000

2-5 years

$’000



Tradeandotherpayables 47,384 (47,385) (16,253) - (31,132) - -Financeleasesandhirepurchasecontracts 115,239 (135,914) (16,916) (16,113) (32,840) (70,045) -Billsofexchange–secured 12,500 (12,500) (12,500) - - - -

Otherloans–secured 2,996 (2,996) (2,996) - - - -

178,119 (198,795) (48,665) (16,113) (63,972) (70,045) -

(i)Thecontractualcashflowsdonotreflectthecurrent/non-currentsplitofinterestbearingliabilitiesdisclosedontheBalanceSheetastheyhavebeenclassifiedtakingintoaccountofthedebtwaiversobtainedfromtheNationalAustraliaBankandtheAustralia&NewZealandBanksubsequentto30June2008.

Thecarryingvaluesofpayablesareassumedtoapproximatetheirfairvaluesduetotheirshort-termnature.ThefairvalueoffinancialliabilitiesfordisclosurepurposesisestimatedbydiscountingthefuturecontractualcashflowsatthecurrentmarketinterestratethatisavailabletotheGroupforsimilarfinancialinstruments.

Thefairvaluesofforwardexchangecontracts(designatedascashflowhedges)aredeterminedusingforwardexchangemarketratesatthereportingdate.


88



(c) Market risk

Foreign exchange risk

Thecranesalesoperationimportsinventoryfromvariousoverseascountries.Inordertoprotectagainstexchangeratemovements,theGrouphasenteredintoforwardexchangecontractstopurchasetheforeigncurrencies.Thesecontractsarehedginghighlyprobableforecastedpurchasesandtheyaretimedtomaturewhenpaymentsarescheduledtobemade.

Theriskismeasuredusingsensitivityanalysisandcashflowforecastingandthecashflowsareexpectedtooccuratvariousdateswithin12monthsfromthebalancedate.

Theforwardforeigncurrencycontractsareconsideredtobefullyeffectivecashflowhedgesastheyarematchedagainstinventorypurchasesandanygainorlossonthecontractsistakendirectlytoequity.Whentheinventoryisdelivered,theamountrecognisedinequityistransferredtotheinventoryaccountinthebalancesheet.Incalculatingtheeffectivenessoftheforwardforeigncurrencycontracts,theforwardexchangerateisadjustedtoexcludetheinterestratedifferentialimplicitintheforwardexchangerate.

TheGroupsexposuretoforeigncurrencyriskatreportingdate,expressedinAustraliandollars,wasasfollows:

30 JUNE 2009 30 JUNE 2008

EUR $’000

SGP $’000

JPY $’000

EUR$’000

SGP$’000

JPY$’000

Receivables 782 - - - - -

Tradepayables (1,131) - (1,152) (7,523) - (4,070)

Forwardexchangecontracts

–buyforeigncurrency(cashflowhedges) 1,207 - 1,429 4,979 166 2,794

Sensitivity analysis for currency risk

A10percent(2008:5percent)strengtheningoftheAustraliandollaragainstthefollowingcurrenciesat30June2009wouldhaveincreased/(decreased)equityandprofitsorlossbytheamountsshownbelow.Thisanalysisassumesthatallothervariables,inparticularinterestrates,remainconstant.

CONSOLIDATED PARENTEquity Profit or Loss Equity Profit or Loss

$’000 $’000 $’000 $’000

30 June 2009JP¥ - - - -

€uro - 71 - -

SGP$ - - - -

- 71 - -

30 June 2008JP¥ 61 67 - -

€uro 27 134 - -

SGP$ 25 - - -

113 201 - -

A10percent(2008:5percent)weakeningoftheAustraliandollaragainsttheabovecurrenciesat30Junewouldhavehadtheequalbutoppositeeffectontheabovecurrenciestotheamountsshownabove,onthebasisthatallothervariablesremainconstant.


89



(d) Interest rate risk

Profile

Atthereportingdate,theinterestrateprofileofthecompanyandtheGroup’sinterestbearingfinancialinstrumentswere:

CONSOLIDATED PARENT

Note Carrying amount Carrying amount

2009 2008 2009 2008

$’000 $’000 $’000 $’000

Fixed rate instruments

Financialliabilities 34(d)(i) (121,528) (215,222) (72,040) (115,239)

(121,528) (215,222) (72,040) (115,239)

Variable rate instruments

Financialassets 9 10,588 1,801 10,588 590

Financialliabilities 34(d)(i) (124,411) (39,667) (115,239) (15,496)

(113,823) (37,866) (104,651) (14,906)

34(d)(i)-Fixedandvariablerateinstrumentsrepresentinterestbearingloansandborrowingsof$245,939,000pernote19.

TheGroup’smaininterestrateriskarisesfromlong-termborrowings.BorrowingsissuedatvariableratesexposetheGrouptocashflowinterestraterisk.TheGroup’sfixedrateborrowingsandreceivablesarecarriedatamortisedcost.TheyarethereforenotsubjecttointerestrateriskasdefinedinAASB7.

ThecompanyandtheGroupareexposedtointerestrateriskwhenfundsareborrowedatfloatinginterestrates.ThisriskismanagedbytakingintoconsiderationtheGroup’scurrentandexpectedfuturedebtprofile,expectationsregardingfutureinterestratemovementsandthepotentialtohedgeagainstnegativeoutcomesbyenteringintointerestrateswaps.

ThecompanyandtheGroup’sexposurestointerestratesonfinancialassetsandfinancialliabilitiesaredetailedintheliquidityriskmanagementsectionofthisnote.

Sensitivity analysis for interest rate risk

TheGroupdoesnotaccountforanyfixedratefinancialassetsandliabilitiesatfairvaluethroughprofitorloss.Thereforeachangeininterestratesatthereportingdatewouldnotaffectprofitandlossinrespectoffixedrateinstruments.Inrespectofvariablerateinstruments,achangeof100basispointsupordownininterestrateswouldhaveincreasedordecreasedtheGroup’sprofitandlossby$1,138,000(2008:$379,000)andthecompany’sprofitandlossby$1,047,000(2008:$149,000).

Fair values

Fair value estimation

Thefairvalueoffinancialassetsandliabilitiesmustbeestimatedforrecognitionandmeasurementorfordisclosurepurposes.

TheGroupholdsnofinancialinstrumentsfortradingpurposes.

Thecarryingvaluelessimpairmentallowanceoftradereceivablesandpayablesareassumedtoapproximatetheirfairvaluesduetotheirshort-termnature.ThefairvalueoffinancialliabilitiesfordisclosurepurposeisestimatedbydiscountingthefuturecontractualcashflowsatthecurrentmarketinterestratethatisavailabletotheGroupforsimilarfinancialinstruments.

Fair values versus carrying amounts

Thefairvalueofborrowingsequalstheircarryingamount,withtheexceptionofsecuredbankloanswhichhaveafairvalueof$128,644,800(2008:$33,902,000)andcarryingvalueof$125,861,000(2008:$33,902,000).Thisamountof$2,783,800(2008:nil)relatestotransactionscostsassociatedwithenteringtheSyndicatedFacilityAgreement.


90


35. CONTINGENCIES

(a) Contingent liabilities

Tax matters

TheAustraliangovernmenthasissueddraftlegislationrelatingtostagesthreeandfouroftheTaxationofFinancialArrangements(TOFA).Thedraftlegislationproposeschangestothetax-timingtreatmentofhedgingtransactions.TheGroupiscurrentlyassessingthepossibleimpact,ifany,thatthesechangeswillhaveontheGroup’staxposition.Noliabilityhasbeenrecognisedinrespectofthismatterat30June2009.

(b) Contingent assets

Nocontingentassetswereidentifiedat30June2009.


91

DIRECTORS’ DECLARATION

1 IntheopinionofthedirectorsofBoomLogisticsLimited:

(a) thefinancialstatementsandnotes,andtheRemunerationReportintheDirectors’Report,setouton pages27to34,areinaccordancewiththeCorporationsAct2001,including:

(i) givingatrueandfairviewoftheCompany’sandtheConsolidatedEntity’sfinancialpositionasat 30June2009andoftheirperformance,fortheyearendedonthatdate;and

(ii) complyingwithAccountingStandards,(includingtheAustralianAccountingInterpretations) andCorporationsRegulations2001;

(b) thefinancialreportalsocomplieswithInternationalFinancialReportingStandardsas disclosedinnote2(a);

(c) therearereasonablegroundstobelievethattheCompanywillbeabletopayitsdebtsas andwhentheybecomedueandpayable;

2 TherearereasonablegroundstobelievethattheCompanyandthegroupentitiesidentifiedinnote33willbe abletomeetanyobligationsorliabilitiestowhichtheyareormaybecomesubjectbyvirtueoftheDeedofCross GuaranteebetweentheCompanyandthosegroupentitiespursuanttoASICClassOrder98/1418.

3 Thedirectorshavebeengiventhedeclarationsrequiredbysection295AoftheCorporationsAct2001 fromthechiefexecutiveofficerandchieffinancialofficerforthefinancialyearended30June2009.

Signedinaccordancewitharesolutionofthedirectors:

John Robinson Brenden Mitchell Chairman ManagingDirector

Melbourne,19August2009


92


93


94

ASX Additional Information

AdditionalinformationrequiredbytheAustralianStockExchangeLtdandnotshownelsewhereinthisreportisasfollows.Theinformationiscurrentasat31July2009.

(a) Distribution of equity securities

Thenumberofshareholders,bysizeofholding,ineachclassofshareare:

ORDINARY SHARESNumber of holders Number of shares

1 - 1,000 1,707 1,113,303

1,001 - 5,000 4,389 12,560,843

5,001 - 10,000 1,852 14,477,982

10,001 - 100,000 1,696 42,083,947

100,001 andover 116 101,123,127

9,760 171,359,202Thenumberofshareholdersholdinglessthanamarketableparcelofsharesare: 2,165 1,682,372

(b) Twenty largest shareholders

Thenamesofthetwentylargestholdersofquotedsharesare:

LISTED ORDINARY SHARES

Number of sharesPercentage of

ordinary shares1 ANZNomineesLimited 21,582,432 12.6

2 NationalNomineesLimited 13,812,801 8.1

3 HSBCCustodyNominees(Australia)Limited 9,758,768 5.7

4 JPMorganNomineesAustraliaLimited 9,614,739 5.6

5 CiticorpNomineesPtyLimited 5,052,229 2.9

6 TarniInvestmentsPtyLtd 2,687,538 1.6

7 ArgoInvestmentsLimited 2,250,000 1.3

8 MrLeslieRaymondHolt 2,175,370 1.3

9 MrsPatriciaGailHolt 2,175,370 1.3

10 TheAustralianNationalUniversityInvestmentSection 1,750,000 1.0

11 MrHughAnthonyMorris 1,682,928 1.0

12 MrRobertJohnBower 1,348,488 0.8

13 BoomLogisticsEmployeeSharePlansPtyLtd 1,315,852 0.8

14 MrThomasJohnMorris 1,151,513 0.7

15 MrCharlesCamilleri&MrsCeciliaCamilleri 1,133,618 0.7

16 BTPortfolioServicesLimited 1,011,063 0.6

17 BondStreetCustodiansLimited 989,347 0.6

18 MrBernardFrancisO’Neill 950,000 0.6

19 PurcellNomineesPtyLtd 680,182 0.4

20 MrAntoninoSalvatoreArto&MrsAndreaMichelleArto 670,000 0.4

Toptwentyshareholders 81,792,238 47.7

Remainder 89,566,964 52.3

Total 171,359,202 100.0


95

ASX Additional Information (continued)

(c) Substantial holders

Substantialholdersinthecompanyaresetoutbelow:

LISTED ORDINARY SHARES

Number of sharesPercentage of

ordinary sharesANZNomineesLimited 21,582,432 12.6

NationalNomineesLimited 13,812,801 8.1

HSBCCustodyNominees(Australia)Limited 9,758,768 5.7

JPMorganNomineesAustraliaLimited 9,614,739 5.6

(d) Voting rights

Allordinaryshares(whetherfullypaidornot)carryonevotepersharewithoutrestriction.


boom_ar_09_cover_ifc_01 30/9/09 1:30 PM Page 4

ANNUAL REPORT 2009

Level 6, 55 Southbank Boulevard

SOUTHBANK VIC 3006

Telephone (03) 9207 2500

Fax (03) 9207 2400

www.boomlogistics.com.au

boom_ar_09_cover_ifc_01 6/10/09 11:17 AM Page 1

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New ANNUAL REPORT 2009 - BOOM Logistics · 2019. 5. 28. · (“SLT”) and the roll out of Boom's “Safety Always” approach. Key activities of the SLT are highlighted within the