The directors present their report on the consolidated entity consisting of WorleyParsons Limited (Company) and the entities it controlled (Group or consolidated entity) at the end of, or during, the year ended 30 June 2016.

A detailed review of the Group’s operations for the financial year and the results of those operations is contained in the Operating and Financial Review, which is incorporated into, and forms part of, this Directors’ Report. A summary of the consolidated revenue and results in respect of the current financial year and previous financial year are as follows:

Aggregated revenue was $5,892.9 million, a decrease of 18.5% on the prior financial year. Underlying EBIT of $302.7 million, was down 27.6% from the prior financial year result of $418.0 million.

The underlying EBIT margin on aggregated revenue for the Group, decreased to 5.1% compared with 5.8% in 2015. After tax, the members of WorleyParsons Limited earned an underlying net margin, on aggregated revenue of 2.6%, compared to the 2015 net margin of 3.4%.

The underlying effective tax rate 26.6% compared with 28.6% in 2015.

The Group retains a strong cash position of $373.1 million (2015: $381.9 million) with gearing (net debt/net debt plus total equity) at financial year end of 29.2% (2015: 28.0%).

Operating cash inflow for the period was $192.0 million, compared to $251.3 million in 2015. Cash outflow from investing activities was $79.9 million (2015: $188.9 million).