Individual Report - Diagnosing the causes of the organisational challenge for AURECON SINGAPORE

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— How to write for effect How you say it matters. An example PESTEL – An example of typical wording I used the PESTEL analysis to determine which are the important elements of the external environment that the organisa=on is required to pay a?en=on to. The PESTEL analysis consists of the following elements: • P = Poli=cal • E = Economic • S = Societal • T = Technological • E = Environmental • L = Legal PESTEL – An example of typical wording An analysis of the PESTEL environmental factors reveal the following: PESTEL FACTOR Impact POLITICAL HIGH ECONOMY MEDIUM SOCIETY/SOCIAL LOW TECHNOLOGY HIGH ENVIRONMENT LOW LEGAL MEDIUM PESTEL – An example of better wording The PESTEL framework helps managers understand which elements of the external environment that they should be paying a?en=on to. Typically, they are expressed in categories such as: Poli=cal, Environmental, Social, Technological, Environmental and Legal. However this categorisa=on of elements only helps the managers to understand what to pay a?en=on to, it doesn’t help them to understand why these elements are important or how to understand changes within these categories. The VUCA framework helps managers understand how forces that are at play in the external environment are dynamic and what may cause change. The VUCA elements are usually expressed as: Vola=lity, Uncertainty; Complexity and Ambiguity. This framework helps managers to understand why there is a change in the external environment but doesn’t help managers to understand what to pay a?en=on to. PESTEL – An example of better wording Combining the PESTEL framework and the VUCA framework assists managers in analysing the external environment by iden=fying the factors within the opera=ng environment that are relevant and it helps managers to understand the causes for poten=al changes in those factors. The process of combining these frameworks is known as u=lising a confronta=on matrix. Further, by applying a numerical weight to the factors within the confronta=on matrix we can iden=fy which are the most cri=cal factors to pay a?en=on to in the external environment and where the risk of change may come from. Once these factors and their associated risks are understood, managers can then begin to think about how they may mobilise resources and capabili=es to reduce the threats (or to take advantage of the opportuni=es) in the external environment. PESTEL – An example of better wording The PESTEL/VUCA confronta=on matrix is provided in Appendix X. From the PESTEL/VUCA analysis we are able to conclude the following: 1. Conclusion 1 2. Conclusion 2 3. Conclusion 3… To understand how these insights can be further used to help management make decisions rela=ng to the opportuni=es and threats present in the external environment, we turn to the SWOT analysis. (Next sec:on – SWOT) Thinking Expertise News Projects News ABOUT AURECON LATEST NEWS A SHIFTING CLIMATE DRIVES AUSTRALIA’S TOP DESIGN AWARD FOR AURECON Share this page: A shifting climate drives Australia’s top design award for Aurecon Aurecon and Cox Architecture won the Good Design Award of the Year 09 June 2017 - As more severe and volatile weather patterns continue to threaten Australia’s crucial infrastructure, Good Design Australia has awarded its ‘Good Design Award of the Year’* – its highest recognition, to global engineering and infrastructure advisory firm Aurecon and architects Cox Architecture for their revolutionary new design of the Brisbane Ferry Terminals. The Terminals – which are now flood-proof – were designed with climate in mind and to withstand the ravages of a flood similar to that of 12 January 2011, when the mighty Brisbane River broke its banks, inundating thousands of homes and livelihoods. “When cyclone Debbie’s violent winds and rain hit Brisbane and Queensland in 2017, roads were cut off and bridges left unusable. Aurecon feared for the safety of its people, while family and friends wondered how their loved ones would make it home. Many related feeling powerless,” says Aurecon’s Global Chief Innovation Officer John McGuire. The cyclone’s damage to Brisbane’s critical infrastructure was immense at $1.5 billion and extending to GDP - with over $2 billion in economic losses to the state. “Following an event of this magnitude, it’s critical that those effected are able to get their lives back on track as soon as possible,” says McGuire. “That imperative is what motivated the design of the Terminals following the 2011 floods. We asked ourselves, ‘Could we achieve the impossible? Could we design infrastructure that would hold up proud in the face of unstoppable forces?’” The Terminal’s bold design concept is a significant shift away from previous design conventions, with respect to aesthetics, flood resilience and accessibility. To stimulate innovation, Aurecon pulled together 15 different skills across the maritime, industrial, mechanical and architectural disciplines and employed a design thinking methodology heavily focused on the human experience of users and the people of Brisbane. According to McGuire, they used teams who don’t usually design ferry terminals, let alone collaborate. “Innovation is not a one-discipline show and tapping into diverse schools of design became key to creating an innovative, world-first solution. “The key included the whole group understanding the problem. They had to forget ‘safe’ and come up with something that challenged the boundaries of what was possible. The team didn’t just solve the problem…they interrogated it, asking ‘Why?’; ‘Why not?’ and ‘What if?’ across every aspect of their design.” “The process for coming up with the design was very much a team effort,” said Aurecon Project Director Arne Nilsen. “We used a lot of paper, a lot of hand sketches. There’s something about the whole process of sketching and thinking. The sketching feeds back on your thoughts and vice versa, and it all comes together,” he said. The Judges commented that the project is: “An excellent example of a multidisciplinary design collaboration that has resulted in a truly innovative and game-changing project. Every detail has been meticulously designed and engineered with the end user in mind. “A truly ground-breaking design-innovation with the potential to be adapted and used all over the world.” Aurecon’s team receives Good Design Australia ‘Award of the Year’ 2017 (Image courtesy of Good Design Australia) Engineers today face multiple, increasingly complex challenges, in addition to designing for increasingly volatile weather patterns associated with climate change. The need for future-proofed infrastructure, such as bespoke public transport accessible to all, the impact of automation, intelligent buildings and new infra-technology to better design, build and manage our infrastructure assets – will all require an extremely high level of innovation “As engineers design for the future, technology and innovative solutions like this will be imperative to meeting tomorrow’s challenges,” comments McGuire. He goes on to say that in future, the role of the engineer will be to interrogate the impossible; to answer “I think we can!” when others have said it’s impossible. Just imagine if we could design all infrastructure to achieve this? What if bridges, power systems and roads were all resilient? “Our work needs to go beyond function and incorporate purpose, form and the human experience at every step. This award is a clear indication that Aurecon is doing just that – and the recognition that our approach is working is incredibly satisfying,” comments McGuire. Background Notes The technology in the Brisbane Ferry Terminals provides resilience in infrastructure that can be applied to any ferry terminal network and, in particular, to those subject to flooding. The unique flood-resilient design features allow a terminal to be returned to operation shortly after significant flood events. The design ushers in a new generation of terminals, which provide resilience and longevity, even in the face of natural disasters. During the 2011 floods, the river reached a level which saw the gangway tether points under water, meaning they were vulnerable to floating debris. This contributed to the failure of a number of wharves during the floods. Following the floods, the Queensland Premier declared a disaster, setting up evacuation centres and a major incident room to coordinate a rescue operation. To protect against the paralysing effect of future floods, Brisbane City Council undertook a significant upgrade programme for the Brisbane Ferry Terminal network. Aurecon and Cox Architecture won an open design competition, which attracted 65 submissions from around the world, to design new ferry terminals that would be resilient to future flood events and accessible to all (including wheelchair and mobility-aid users). The firms challenged each other throughout the process, not only to solve the technical aspects of Brisbane City Council’s brief, but to push the limits of the possibilities across every single component. “A key feature of the solution Aurecon designed is the gangways underneath the flotation chamber, which develops buoyancy as the water rises. As you get to a certain water level ‒ well above the normal high tide operating level ‒ where the abutment is running with about 600 or 700 mm deep water, so no one’s going to be using it, then it releases at the shore end. This enables the gangway to swing behind the pontoon and avoid being hit by debris,” explains Arne Nilsen, Aurecon’s Technical Director, Brisbane Energy and Resources. *The Terminals also won Good Design Award Best Overall for Product Design 2017 and Good Design Award Best in Category for Product Design, Commercial and Industrial. More From Aurecon Aurecon Engineer named ACES Young Consulting Engineer of the Year Aurecon's Kelvin Chen received the Young Consulting Engineer of the Year 2017 award from the Association of Consulting Engineers Singapore. Read full article › Leading architects vote Aurecon among top five best partners globally Aurecon was highly ranked for the third year running in the 2017 annual World Architecture 100 (WA100) survey of the world’s leading architectural practices. Read full article › FIND NEWS Year Please select Month Please select Keyword Find CONTACTS Danielle Bond Head of Marketing & Communications +61 3 9975 3138 Email Danielle LinkedIn LATEST NEWS Ground-breaking Battery Energy Storage System set to transform the Northern Territory’s energy future It’s all about people – Aurecon’s Global Chief People Officer wins ‘Young Executive of the Year’ Large-scale battery storage to transform Australia’s renewable energy future Does the role of the engineer need to be re-imagined? Aurecon named twice in Top 30 ‘most innovative engineers' list The rise of public participation is critical to project success See more Thinking Expertise News Locations Projects Contact us About Aurecon Careers Our Blog: Just Imagine Terms of Use | Privacy Policy | Site feedback Copyright 2017 Aurecon Group Brand (Pte) Ltd. Markets Assessment Task 1: Individual Report - Diagnosing the causes of the organisational challenge. Management in Practice Weight: 20% Length: Maximum of 3000 words Learning Objectives Assessed: This assignment assesses Learning Objectives 1 and 5 Details: Purpose of the assignment: This assignment is designed to get you to identify and analyse the contextual elements that contribute to the challenge that the partner organisation faces. You are to present your work in a business report format. This involves undertaking and external and internal analysis of the organisation and making predictions about the future. Requirements for the assignment: • • • • Examine the data provided by the partner organisation and undertake your own research to find more relevant data. o Have you got all the data you need? What other data would be helpful? Analyse the data you have collected using appropriate management tools and theories o External organisational analysis (PESTEL, p5, VUCA – dynamic capabilities) o Internal organisational analysis (VRIO, SC, weaknesses) o Value chain analysis (activities that Aurecon Singapore does or undertake) Explain how the nature of the challenge is a result of the combination of external and internal factors that you have discovered through your research and subsequently re-define the management challenge as a problem that can be solved through the combination of management theory and practice. (Note: we are not expecting you to provide the solution at this stage - just re-define the problem through a management theory lens) Write a business report describing the nature of the challenge through the particular management lens that you are viewing the problem (we will provide you with a list from which you can choose, or you can choose your own.) EXTRA POINTERS AND QUESTIONS TO THINK ABOUT 1. Based on opportunities and threats what the customer want? 2. What does the company provide? 3. What’s the culture of Aurecon Singapore? • How do you think it impacts on the performance of Aurecon Singapore? • How does it compare with the other Aurecon offices around the world? 4. How do you define success for Aurecon Singapore? • E.g. by market share, profitability, average size, CSR, prestige of projects etc.? 5. How does Aurecon Singapore conduct its strategic planning processes to ensure its competitive relevance in Singapore. • In addition, how does Aurecon train and develop such capabilities in its employees 6. Why do you think some competitors are more successful in certain projects in the Singapore market (beside price)? 7. How does Aurecon Singapore cope with the challenges posed by the time sensitivity of projects? Do you think Aurecon Singapore manage this any differently from its competitors? (strategic capabilities) 8. What are some of the projects that ASG did not win its bids? What do you think are some of the reasons? What has ASG done to address some of these reasons? 9. how does Aurecon Singapore manage and engage its top 3 shareholders? 10. What new initiatives have Aurecon Singapore tried and which have not worked in Singapore (as compared to other countries)? 11. What does Aurecon Singapore do to keep abreast of technological changes? • How does ASG incorporate these into its business, on a day-to-day and on a longerterm basis? • Do you think that your competitors do these differently from you? 12. What is the greatest differentiator of ASG, as compared to its competitors? Value chain of Starbucks – retail business of selling specialty coffee Farmers – middle man - SOURCING – coffee beans – INVENTORY – PROCESSING (ROASTING) / PACKAGING – OUTLETS – MARKETING (e-commerce) – OPS MGMT – R&D HR – INTERIOR DESIGN – CUSTOMER SERVICE/CRM – MAINTENANCE & REPAIR – CSR (FAIR TRADE) – Management Challenge: Aurecon, Singapore. Background: By 2021 Asia is expected to generate approximately 44% of the world’s GDP, and depending on how you choose to measure it, Singapore is one of the wealthiest countries in the world. According to the World Bank, Singapore’s industry added value contributed some $70.87B in 2016 (see graph below). Singapore is also forecast to continue relatively stable economic growth, although that growth will occur more in some areas than in others across the economy. A significant amount of this wealth will generate through the construction and property industries including through the initiation of government sponsored infrastructure projects (also known as ‘Nation Building’ projects). Source: World Bank Data: https://data.worldbank.org/indicator/NV.IND.TOTL.KD?contextual=default&end=2016&locations=SG&start=1960&vie th w=chart Accessed January 9 , 2017. It’s anticipated that although there will be a slowdown in private infrastructure projects coming online in 2018, that there are some significant public expenditure announcements that demonstrate that the Singapore Government is committed to investing in infrastructure to support the ‘Smart Nation’ agenda. Engineering and Construction: There are trends evident in the engineering and construction industries that will have significant implications for the way in which economies are structured. For example, if we look at the trend for engineering and construction projects to be prefabricated offsite and then constructed insitu, there are significant savings to be made in energy costs, labor and time. For example, here’s a timelapse video of a 30-story building being constructed in 15 days. Analysis by PWC is pointing to other pressures on the industry as globalization accelerates: “Competition will grow from E&C players in China, Korea, and India. The third major trend is more global. Firms in rapidly growing economies have spent the past decade focusing on their home markets, steadily building up cash positions and internal expertise. Now, as growth eases in their home markets, they are expanding outward and seeking to compete against established global players. These firms’ expansion efforts could require them to buy assets and build up critical capabilities — and these companies have the financial means to do just that. They will begin to compete more often for large projects in developed markets, adding another layer of competition and pressure for established E&C firms.” As these technologies mature and as competition intensifies, the engineering and construction workforce will change. There may be less need for manual labour and more of a need for people to work alongside technologies such as AI and VR to facilitate progress. Aurecon, as a global engineering and construction firm are right in the middle of these changes and they are currently thinking about how to best position themselves for future growth in a hyper-competitive market. Aurecon would rather differentiate themselves as providers of quality solutions to Singapore’s future infrastructure development needs rather than compete head to head with more traditionally organized (and often very large) E&C firms. The Management Challenge How can Aurecon put in place strategic initiatives now and in the near future that will position themselves as a premium provider of smart solutions to Singapore’s Engineering and Construction sector? How can Aurecon best organize their business to continue to grow profit share? Aurecon know that technology is an enabler of value but that it is in having access to the right people with the right skills at the right time that really drives a value proposition in the E&C space. How can Aurecon ‘raise, train and sustain’ an E&C workforce that positions the firm favourably in Singapore’s notoriously cost-conscious environment? Aurecon management encourage you to take a business level perspective when considering your solutions to this challenge. For example, the ‘creation of an app that does XXX’ is not a solution that is sustainable and will allow Aurecon to grow and differentiate sufficiently. It’s unlikely that there is a single and simple solution to this challenge – you are encourages to think across all the management disciplines that you’ve encountered on your way through the management degree and bring all that knowledge together to create your solution. For example, consider what you learned in Work in Global Society when thinking about the future shape of the external environment that Aurecon compete in. Consider what you learned in organizational analysis when considering how best to deign and manage a business. Consider what you learned in strategic management when thinking through how to best position a firm in the market… Your solutions may include elements of all of these disciplines and others besides e.g. HR, marketing, finance, design… You will be presenting your solutions back to Aurecon executives on April 11th at a specially convened Management Challenge Symposium. You are expected to demonstrate that you have developed the appropriate skills to develop and define a problem; that you can identify and analyse appropriate data and literature to propose a potential solution to that challenge, and that you can apply the management tools, models and frameworks in a creative manner to solve the challenge. Importantly you need to demonstrate that the quality of your work will be of a standard that is expected by industry executives. CONTENTS Error! No text of specif ied sty le in document. Premium Report This report was provided to RMIT Library (2126452465) by IBISWorld on 04 July 2017 in accordance with their licence agreement with IBISWorld IBISWorld Company Report Aurecon Group Pty Ltd Premium Report Balance Date: June 2016 Details ....................................................................................................................................................... 2 Introduction ............................................................................................................................................. 2 History/Background ................................................................................................................................ 3 Brands/Businesses/Products ................................................................................................................. 3 Company Snapshot ................................................................................................................................ 4 Personnel ................................................................................................................................................. 5 Other Directorships ............................................................................................................................... 5 Financials ................................................................................................................................................. 6 Financial Growth .................................................................................................................................... 8 Financial Ratios...................................................................................................................................... 8 Industry Financial Averages ............................................................................................................... 9 Segments ............................................................................................................................................... 10 Operating Divisions............................................................................................................................... 10 Geographic Locations........................................................................................................................... 10 Competitive Environment .................................................................................................................. 11 Shareholders......................................................................................................................................... 13 Subsidiaries........................................................................................................................................... 14 Service Providers................................................................................................................................. 17 www.ibisworld.com.au | 03 9655 3881 | info@ibisworld.com WWW.IBISWORLD.COM.AU Aurecon Group Pty Ltd 2 Details Company Details Major Business Line ACN Number ABN Number ASX Code Incorporated In Incorporation Date Company Type Ownership Type Sector Listed on Stock Exchange? FY Balance Date IBISWorld Rank* M6923 - Engineering Consulting in Australia 133 838 187 12 133 838 187 Victoria 10/22/2008 Public Company Local Non Government No 30-Jun-2016 422 Company Contact Details Company Registered Name Commonly Used Name Aurecon Group Pty Ltd Aurecon Street Address Floor Street City State Post Code Country Level 8 850 Collins Street DOCKLANDS Victoria 3008 Australia Postal Address PO Box Post Office City State Post Code Telephone Number Facsimilie Number Internet Web Address PO Box 23061 DOCKLANDS Victoria 8012 03 9975 3000 03 9975 3444 www.aurecongroup.com Introduction Aurecon Group Pty Ltd an Australian-owned private company that derives revenue from the provision of engineering, management and specialist technical services to governmental and private business sectors. The company employs approximately 6,490 people, operates globally, and is administered from its head office in Docklands, Victoria. Provided to: RMIT Library (2126452465) | 04 July 2017 WWW.IBISWORLD.COM.AU Aurecon Group Pty Ltd 3 History/Background 2016 - June: Aurecon and Santiago Calatrava, an architecture and engineering company, have begun plans to design and engineer a skyscraper in the Dubai Creek Harbour area. The skyscraper will be known as 'The Tower'. As part of Aurecon's strategic plans in Asia, Aurecon has begun plans to establish a business in Manilla, Philippines. May: Through a joint venture with Jacobs, known as AJJV, Aurecon will provide engineering design services for one of Australia's biggest transport projects, the WestConnex New M5. 2015 - October: The company announced that it had expanded its operations to Macau SAR after opening its first office in the country. Also this month, Aurecon and WSP Parsons Brinkerhoff formed a joint venture which was commissioned by Nexus Infrastructure to help deliver the Queensland Governments $1.6 billion Toowoomba Second Range Crossing project. July: Aurecon announced that it had been appointed to project manage the ZAR$1.34 billion equipment replacement project at the South Africa-based Richards Bay Coal Terminal. April: The company announced that Aurecon Jacobs Mott MacDonald, a joint venture of the company, had been appointed as the Technical, Planning and Engagement Advisor for the Melbourne Metro Rail Project. The Melbourne Metro Rail Project is charged with the development of two nine-kilometre rail tunnels, new underground railway stations and other rail and light rail infrastructure developments. 2014 - March: One of Aurecon's subsidiaries, SKM-Aurecon CRR, ceased operating; Another SKMAurecon (Peninsula Link) would cease operations later that year in June. 2012 - June: The company changed its name from Aurecon Australia Group Limited to Aurecon Group Pty Ltd. 2009 - June: Aurecon Australia acquired certain assets and liabilities of QED Australia Pty Ltd, an Australian company specialising in planning, transport planning, urban design and environmental consultancy services. The total cash consideration paid was approximately $36,000. April: Connell International Group Limited changed its name to Aurecon Australia Group Ltd. Also this year, Connell Hatch, a joint venture between Aurecon and Hatch, changed its name to Auricon Hatch. 2008 - Connell International Group Limited was incorporated in Victoria when Connell Wagner (Pty) Ltd, an Australian multi-disciplinary infrastructure consulting company, Africon (Pty) Ltd, a South African infrastructure consultancy, and Ninham Shand (Pty) Ltd, a South African environmental and engineering consultancy, merged. Brands/Businesses/Products Aurecon Group Pty Ltd is a globally operating engineering consultancy firm that categorises its operations into the following competencies: • Aviation - Provides airport engineering consultation including runway and transport solutions. • Construction - Provides construction delivery support and services across a range of different industries and sectors. • Data & Telecommunications - Provides data and telecommunication infrastructure solutions including the design of buildings for hubs, data centres and telephone exchanges. • Defence - Providing technical and support services to the defence industry and major defence agencies. • Energy - Provides design and engineering services, specialising in dams, power generation facilities and power transmission and distribution. • Government - Asset management and optimisation support for national and regional Governments. • Health - Provides healthcare systems engineering consultancy and advisory. • Manufacturing - Engineering solutions, long-term durability and project management services. • Property - Provides property design and consultancy services, specialing in building design, dams, and digital advisory. Provided to: RMIT Library (2126452465) | 04 July 2017 WWW.IBISWORLD.COM.AU • • • Aurecon Group Pty Ltd 4 Resources - Improving reliability, maintenance reduction and design solutions. Transport - Planning, design and delivery of sustainable transportation systems and infrastructure. Water - Provides surface and ground water management and infrastructure services, specialising in bulk water, dams, water and wastewater treatment, and water resources management. Company Snapshot Aurecon Group Pty Ltd is a Public Company that is ranked number 422 out of the top 2000 companies in Australia. The company generates the majority of its income from the Engineering Consulting in Australia industry. In 2016 the company generated total revenue of $999,980,000 including sales and other revenue. In 2016 Aurecon Group Pty Ltd had 6492 employees in Australia including employees from all subsidiaries under the company's control. The Chief Executive of Aurecon Group Pty Ltd is Mr Giam Swiegers whose official title is Global Chief Executive Officer. The Chairman of Aurecon Group Pty Ltd is Mr Teddy Daka whose official title is Chairman. Provided to: RMIT Library (2126452465) | 04 July 2017 WWW.IBISWORLD.COM.AU Aurecon Group Pty Ltd Personnel Salutation Mr Mr Mr Initials T GJ A Full Name Teddy Daka Giam Swiegers Andrew Muller Title Chairman* Global Chief Executive Officer* Chief Financial Officer Mr J James Bennett Managing Director Built Environment Mr J John McGuire Chief Innovation Officer Mr G Geoff Linke Managing Director Infrastructure Mr W William Cox Managing Director Australia & New Zealand Mr CJ Clinton Dines Non-Executive Director* Mr ET Ermis Marques Non-Executive Director* Mr BW Benjamin Coxon Non-Executive Director* Ms LB Louise Adams Mr PJ Ms RV Ms RV Mr Mr Ms M B D Peter Mansell Rosemary Peavey Rosemary Peavey Michael Shirley Brendan Gibbs Danielle Bond Regional Director Victoria & South Australia* Director* Executive Director Director Group Company Secretary Company Secretary General Counsel Legal Officer Managing Director Clients Chief Strategy Officer Head of Marketing & Communications Sales Manager Marketing Manager Marketing Manager Procurement Manager Personnel Manager Computing/IT Manager Audit Committee Not Available Procurement Manager Mr L Liam Hayes Chief People Officer Mr C Carl Duckinson IT Manager Not Available * Appointed to the Board of Directors Position Type Chairman Chief Executive Financial Controller Chief Operating Officer Chief Operating Officer Chief Operating Officer Chief Operating Officer Non-Executive Director Non-Executive Director Non-Executive Director Audit Committee Other Directorships Name Mr Clinton Dines Company Griffith University Position Title Council Member Provided to: RMIT Library (2126452465) | 04 July 2017 5 WWW.IBISWORLD.COM.AU Aurecon Group Pty Ltd 6 Financials Balance Date 30-Jun-2016 30-Jun-2015 30-Jun-2014 30-Jun-2013 30-Jun-2012 Accounting Period Date 12 Months 12 Months 12 Months 12 Months 12 Months Currency Units AUD000 AUD000 AUD000 AUD000 AUD000 PROFIT AND LOSS ACCOUNT REVENUE ITEMS Sales Revenue 993,046 993,689 970,052 762,982 811,735 Other Revenue 6,934 13,922 10,696 8,857 9,777 Total Revenue 999,980 1,007,611 980,748 771,839 821,512 Cost of Goods Sold N/A N/A N/A N/A N/A Depreciation 17,918 20,155 20,604 18,147 22,129 R&D Expenditure N/A N/A N/A N/A N/A INTEREST Interest Received 2,807 3,226 2,926 4,057 3,154 Interest Expense 3,871 4,669 2,986 732 493 PROFIT AND LOSS Share of Profits of Associates 127 144 62 N/A N/A EBITDA 99,223 67,252 94,406 86,571 155,100 Profit Before Tax 80,241 45,654 73,742 71,749 135,632 Income Tax Expense 23,108 15,255 20,292 22,442 40,745 Continuing Operations after 57,133 30,399 53,450 49,307 94,887 Tax Discontinued Operations after N/A N/A N/A N/A N/A Tax Outside Equity Interest 213 0 53 23 0 NPAT 56,920 30,399 53,397 49,284 94,887 Significant Items 0 0 0 0 0 Dividends 31,733 43,026 63,126 87,166 50,460 AUDIT Audit Fees 1,814 1,903 2,054 1,667 1,232 Audit Other 537 610 469 593 570 Total Audit Fees 2,351 2,513 2,523 2,260 1,802 BALANCE SHEET CURRENT ASSETS Cash At Bank 120,473 103,078 116,800 130,786 130,996 Trade Debtors 199,637 217,395 203,768 210,936 133,350 Inventory 91,412 86,949 69,448 78,162 49,666 Other Current Assets 30,820 35,987 25,036 23,297 17,043 Total Current Assets 442,342 443,409 415,052 443,181 331,055 NON-CURRENT ASSETS Receivables 1,239 593 596 1 0 Investments 13,947 11,190 1,159 481 0 Property & Plant Equipment 51,010 55,224 58,788 56,362 28,848 Intangible Assets 9,152 7,542 9,479 13,526 12,640 Provided to: RMIT Library (2126452465) | 04 July 2017 WWW.IBISWORLD.COM.AU Aurecon Group Pty Ltd Other Non-Current Assets Total Non-Current Assets Total Assets CURRENT LIABILITIES Trade Creditors Interest Bearing Debt Provisions Other Current Liabilities Total Current Liabilities NON-CURRENT LIABILITIES Interest Bearing Debt Provisions Other Non-Current Liabilities Total Non-Current Liabilities Total Liabilities SHAREHOLDERS' EQUITY Share Capital Reserves Retained Earnings Other Total Equity OTHER Number of Employees Qualified Audit Report 7 34,871 110,219 552,561 32,444 106,993 550,402 25,530 95,552 510,604 22,448 92,818 535,999 18,294 59,782 390,837 26,094 3,539 94,757 125,523 249,913 34,418 5,905 98,146 120,844 259,313 22,503 5,484 72,523 97,260 197,770 23,151 5,706 68,105 121,449 218,411 25,854 1,243 57,442 69,453 153,992 4,243 11,522 37,426 4,883 8,920 35,764 8,241 15,750 43,238 9,812 13,968 36,023 1,961 11,984 10,080 53,191 49,567 67,229 59,803 24,025 303,104 308,880 264,999 278,214 178,017 114,170 -7,543 141,928 902 249,457 114,170 3,591 123,072 689 241,522 107,268 -5,889 139,705 4,521 245,605 102,685 1,200 149,433 4,467 257,785 24,935 570 187,315 0 212,820 6,492 No 6,798 No 7,200 No 7,188 No 4,276 No * IBISWorld estimate Provided to: RMIT Library (2126452465) | 04 July 2017 WWW.IBISWORLD.COM.AU 8 Aurecon Group Pty Ltd Financial Growth Balance Date Total Revenue Growth (% change) Sales Revenue Growth (% change) EBITDA (% change) NPAT (% change) Shareholders' Funds (% change) Total Assets (% change) Employees (% change) 30-Jun-2016 30-Jun-2015 30-Jun-2014 30-Jun-2013 Ave 2011-16 (%) -0.8 2.7 27.1 -6.1 7.9 -0.1 2.4 27.1 -6.0 7.9 47.5 87.2 -28.8 -43.1 9.1 8.4 -44.2 -48.1 2.2 1.6 3.3 -1.7 -4.7 21.1 8.4 0.4 -4.5 7.8 -5.6 -4.7 0.2 37.1 68.1 13.7 11.0 Financial Ratios Balance Date Return on Revenue (ROR) (%) Return on Shareholders' Funds (ROSF) (%) Return on Assets (ROA) (%) Profit Margin (%) Revenue per Employee ($'000 per person) NPAT per Employee ($'000 per person) Effective Tax Rate (%) Gearing (%) Interest Cover (X) Current Ratio (X) Revenue & NPAT 30-Jun-2016 30-Jun-2015 30-Jun-2014 30-Jun-2013 30-Jun-2012 5.7 3.0 5.4 6.4 11.6 22.8 12.6 21.7 19.1 44.6 10.3 8.1 5.5 4.6 10.5 7.6 9.2 9.4 24.3 16.7 154.0 148.2 136.2 107.4 192.1 8.8 4.5 7.4 6.9 22.2 28.8 54.9 21.7 1.8 33.4 56.1 10.8 1.7 27.5 51.9 25.7 2.1 31.3 51.9 99.0 2.0 30.0 45.6 276.1 2.2 Key Measures (% change) Provided to: RMIT Library (2126452465) | 04 July 2017 WWW.IBISWORLD.COM.AU Aurecon Group Pty Ltd Industry Financial Averages Financial Ratios Return On Shareholders Funds Return On Total Assets Gearing Interest Cover Current Ratio NPAT/Employee Pre-Tax Margin EBITDA Effective Tax Rate Days Stock Held Debtors T/O Creditors T/O Revenue/Employee Net Assets Per Share Dividend Per Share Earnings Per Share Dividend Payout Ratio Asset Turnover Ratio Industry Average* -2.07 -1.27 46.72 1.33 1.46 -4 0.22 25,325 569.71 24.83 49.95 26.05 247 1.21 0.10 -0.04 -229.06 0.87 Aurecon 30-Jun-2016 22.82 10.30 54.85 21.73 1.77 9 8.02 99,223 28.80 N/C 72.87 N/C 154 39.31 5.00 8.97 55.75 1.80 Unit Percent Percent Percent Times Times A$ 000 Percent A$ 000 Percent Days Days Days A$ 000 A$ A$ A$ Percent Times Industry Aurecon Unit Average* 30-Jun-2016 Revenue Growth -5.96 -0.76 Percent NPAT Growth -41.69 87.24 Percent Asset Growth -2.19 0.39 Percent Employees Growth -7.15 -4.50 Percent Dividend Growth Rate -10.30 -26.20 Percent *Companies included in the Industry Averages Calculations operate in the Professional, Scientific and Technical Services (Except Computer System Design and Related Services) in Australia industry. Growth Ratios Provided to: RMIT Library (2126452465) | 04 July 2017 9 WWW.IBISWORLD.COM.AU Aurecon Group Pty Ltd Segments Balance Date: 30 June, 2016 Profit Definition: Profit for the Y ear Operating Divisions Revenue AUD000 999,980 Segment Name Consulting Engineering Profits AUD000 56,920 Assets AUD000 552,561 Operating Divisions - Key Ratios Profit as % of Revenue 5.7% 5.7% Segment Name Consulting Engineering Company Profit as % of Assets 10.3% 10.3% Operating Divisions - Industries by Operating Segment Historical Forecast Growth Rates Growth Rates 2012/13-2016/17 2017/18-2021/22 Consulting Engineering M6922 - Surveying and Mapping Services in Australia M6923 - Engineering Consulting in Australia M6925 - Environmental Science Services in Australia M6962a - Management Consulting in Australia GDP Growth Rate -1.0% 2.9% -2.4% 3.5% -1.9% 3.8% 4.1% 2.6% 2.9% 2.4% Geographic Locations Revenue Profits Assets AUD000 AUD000 AUD000 Segment Name Australia, New Zealand, Asia, Europe, Africa & Middle East Total 999,980 56,920 552,561 999,980 56,920 552,561 Geographic Locations - Ratios Profit as Profit as % of Revenue % of Assets Australia, New Zealand, Asia, Europe, Africa & Middle East Company 5.7 10.3 5.7 10.3 Provided to: RMIT Library (2126452465) | 04 July 2017 10 WWW.IBISWORLD.COM.AU Aurecon Group Pty Ltd Competitive Environment M6922 Surveying and Mapping Services in Australia Industry Statistics Industry Size 2016/2017 $ million Industry Turnover Growth Rate 2016/2017 Industry Concentration Level Number of Enterprises in Industry 3,259 -13.88 Low 3370 Aurecon is not a major player in this industry. M6923 Engineering Consulting in Australia Industry Statistics Industry Size 2016/2017 $ million 43,103 Industry Turnover Growth Rate 2016/2017 -2.61 Industry Concentration Level Low Number of Enterprises in Industry 31504 Aurecon is not a major player in this industry. M6925 Environmental Science Services in Australia Industry Statistics Industry Size 2016/2017 $ million Industry Turnover Growth Rate 2016/2017 Industry Concentration Level Number of Enterprises in Industry 4,350 -1.07 Low 5940 Aurecon is not a major player in this industry. Major Competitors ALS Limited SGS Australia Holdings Pty Limited Bureau Veritas Australia Pty Ltd Market Share 9.90 6.90 5.70 M6962a Management Consulting in Australia Industry Statistics Industry Size 2016/2017 $ million Industry Turnover Growth Rate 2016/2017 Industry Concentration Level Number of Enterprises in Industry 9,567 5.30 Low 12709 Provided to: RMIT Library (2126452465) | 04 July 2017 11 WWW.IBISWORLD.COM.AU Aurecon Group Pty Ltd Aurecon is not a major player in this industry. Major Competitors KPMG Deloitte Touche Tohmatsu PricewaterhouseCoopers Market Share 8.00 7.60 5.00 Provided to: RMIT Library (2126452465) | 04 July 2017 12 WWW.IBISWORLD.COM.AU Aurecon Group Pty Ltd Shareholders Shareholder Name Ultimate Parent Aurecon 37 Limited Largest Shareholders Aurecon 37 Limited Aurecon 25 (Pty) Ltd Percentage Held Country of Incorporation N/A Australia 73.76 % Australia 26.24 % South Africa As at: 6 October, 2016 Provided to: RMIT Library (2126452465) | 04 July 2017 13 WWW.IBISWORLD.COM.AU Aurecon Group Pty Ltd 14 Subsidiaries Subsidiary Name Associated companies Specialised Road Technologies (Pty) Ltd Holding company Aurecon Group Pty Ltd Percentage Held Country of Incorporation 18 % South Africa 100 % Australia Joint ventures AECOM Aurecon Joint Venture ANJV ARUP Aurecon Design JV Asch Shand JV Athlone Water Treatment JV Aurecon AECOM JV Aurecon Beca NAMP Joint Venture Aurecon GHD Joint Venture Aurecon Hatch JV Aurecon Jacobs Joint Venture Aurecon Jacobs Mott Joint Venture Aurecon Parsons Brinkerhoff Joint Venture Aurecon SMEC Joint Venture Aurecon-Hyder JV Berg River Water Treatment JV Bicon Bicon DDS De Hoop Dam Consultants JV F2E HA Joint Venture GCUH Engineering JV Karas JV MCC JV Ninham Shand Semenya Furumele JV SKM-CW JV Vaal Pipeline Consultants JV Subsidiaries Africon Finance Pty Ltd Aurecon (Pte) Ltd Aurecon Advisory Pty Ltd Aurecon Africa (Pty) Ltd Aurecon AMEI Limited Aurecon Angola Limitada Aurecon Asia Pty Ltd Aurecon Australasia Pty Ltd Aurecon Australia International Projects Pty Ltd 50 % 67 % 50 % 50 % 72 % 50 % 50 % 50 % 50 % 50 % 33 % 50 % 50 % 50 % 38 % 60 % 69 % 25 % 50 % 50 % 80 % 33 % 50 % 50 % 33 % 100 100 100 100 100 100 100 100 100 % % % % % % % % % Provided to: RMIT Library (2126452465) | 04 July 2017 Australia South Africa Australia South Africa South Africa Australia Australia Australia Australia Australia Australia Australia Australia Australia South Africa South Africa South Africa South Africa Australia Australia Namibia South Africa South Africa Australia South Africa South Africa Singapore Australia South Africa Mauritius Angola Australia Australia Australia WWW.IBISWORLD.COM.AU Aurecon Group Pty Ltd Aurecon Botswana (Pty) Ltd Aurecon Chile SA Aurecon Consulting (Thailand) Co Ltd Aurecon Consulting Engineers Nigeria Ltd Aurecon Engineering Consultants LLC Aurecon Engineering Consulting (Shanghai) Limited Aurecon Engineering International (Pty) Ltd Aurecon Ghana Limited Aurecon Group Brand (Pte) Ltd Aurecon Holding (Thailand) Co Ltd Aurecon Hong Kong Ltd Aurecon Infrastructure Projects (Pty) Ltd Aurecon International Holdings (Pte) Ltd Aurecon Investments Australia Pty Ltd Aurecon Kenya Limited Aurecon Lesotho (Pty) Ltd Aurecon Macau Limited Aurecon Malaysia Sdn Bhd Aurecon Mozambique Limitada Aurecon Namibia (Pty) Ltd Aurecon New Zealand Ltd Aurecon PNG Limited Aurecon Singapore (Pte) Ltd Aurecon South Africa (Pty) Ltd Aurecon Swaziland (Pty) Ltd Aurecon Uganda Limited Aurecon Vietnam Company Ltd Ce Africon Angola Limitada Connell Wagner Consulting Sdn Bhd Connell Wagner Engineering Sdn Bhd CW-DC Ltd CW-DC Pty Ltd CW-ET Pty Ltd Daniel Chan & Associates Limited Engineering Insurances Pte Ltd IDSS Pty Ltd IMIS Integrated Management Information Systems Pty Ltd Mozafricon Limitada Ninham Shand Africa Ltd Powernet Developments (Pty) Ltd PT Aurecon Indonesia PT IDSS Indonesia South Africa Value Education (Pty) Ltd 100 % 100 % 98 % 100 % 100 % 100 % 100 % 100 % 100 % 49 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 74 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % 100 % Botswana Chile Thailand Nigeria Qatar China South Africa Ghana Singapore Thailand Hong Kong South Africa Singapore Australia Kenya Lesotho Macau Malaysia Mozambique Namibia New Zealand Papua New Guinea Singapore South Africa Swaziland Uganda Vietnam Angola Malaysia Malaysia New Zealand Australia Australia Hong Kong Singapore Australia 100 % Australia 100 % 100 % 65 % 100 % 100 % 100 % Balance Date: 30 June, 2016 Provided to: RMIT Library (2126452465) | 04 July 2017 Mozambique South Africa Lesotho Indonesia Indonesia South Africa 15 WWW.IBISWORLD.COM.AU Aurecon Group Pty Ltd Provided to: RMIT Library (2126452465) | 04 July 2017 16 WWW.IBISWORLD.COM.AU Aurecon Group Pty Ltd 17 Service Providers Service Provider Type Banker External Auditor Insurance Broker Solicitor Telecommunication Service Provider Not available Ernst & Young Not available Not available Not available Balance Date: 30 June, 2016 * IBISWorld's company information covers more than 2,000 of the country's largest businesses, which drive Australia's economy. The companies are ranked based on total revenue earned in the most recently reported financial year. All company types, such as public listed, public non-listed, private companies and more, are listed in our database. The IBISWorld rank is updated daily. Provided to: RMIT Library (2126452465) | 04 July 2017 18 www.ibisworld.com.au | 03 9655 3881 | info@ibisworld.com WWW.IBISWORLD.COM.AU Aurecon Group Pty Ltd IBISWorld's reports are more than just numbers. They combine data and analysis to answer to questions that successful businesses ask. Who is IBISWorld? We are strategists, analysts, researchers and marketers. We provide answers to information-hungry, time-poor businesses. Our goal is to provide real-world answers that matter to your business. When tough strategic, budget, sales and marketing decisions need to be made, our suite of industry, economy and risk reports give you thoroughly researched answers quickly. IBISWorld Membership IBISWorld offers tailored membership packages to meet your needs. Aurecon Group Pty Ltd Disclaimer This product has been supplied by IBISWorld Pty Ltd ('IBISWorld') solely for use by its authorised licences strictly in accordance with their licence agreements with IBISWorld. IBISWorld makes no representation to any person with regard to the completeness or accuracy of the data or information contained herein, and it accepts no responsibility and disclaims all liability (save for liability which cannot be lawfully disclaimed) for loss or damage whatsoever suffered or incurred by any other pers on resulting from the use of, or reliance upon, the data or information contained herein. Copyright in this publication is owned by IBISWorld Pty Ltd. The publication is sold on the basis that the purchaser agrees not to copy the material contained within it for other than the purchasers own purposes. In the event that the purchaser uses or quotes from the material in this publication - in papers, reports, or opinions prepared for any other person - it is agreed that it will be sourced to: IBISWorld Pty Ltd
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